Steve M. Scheel CEO SCHEELS
HOW TO BUILD A BUSINESS THAT WILL LAST
SCHEELS The Chamberâ€™s Big Get (Literally)
5 Reasons You Should Care About Ag
Fred Bevill: Fargo Funny Man
// AUGUST 2017
The SCHEELS Way If you're one of SCHEELS' more than 6,000 employees, you're not likely to forget the sporting-goods giant's core values (they all start with "p," after all). Straight from the mouth of team members, learn more about "The SCHEELS Way" and the role the company's values have played in its 115-year run of success.
30 10 Editor's Note 11 Editorial Advisory Board 23 Faces of Fargo Business Kari Bucholz - Haley's Hope Nukhet Hendricks - She Leads Fearlessly Fred Bevill - Stand-up Comic
58 48 Taking the Fear Out of Succession Planning
How General Equipment Gained Some Traction
Name That Office
Paying for College Paul Jarvis
Office Vibes: Protosthetics
How Does the Magic Happen?
Michael Raum & F. John Williams III
55 Minnesota Legislative Recap Craig Whitney
58 Healthy Office Living w/ Nokken Chiropractic
30 5 Reasons You Should Care About Agriculture w/ Bell Bank's Lynn Paulson
60 It Wasn't Always Like This: Katherine Kilbourne Burgum Center for Creativity
August Business Events Calendar
Visit FargoInc.com for extended content covering Fargo-Moorhead's business community and articles from past editions of Fargo INC!
AUGUST 2017 | FARGOINC.COM
It's described many different ways, depending on the context. In sports, it's often referred to as the "X factor." In show business, you'll hear people ask whether a performer has "it." The higher brow among you may be more familiar with the term "je ne sais quoi." However you choose to refer to "it," there's a certain indescribable, positive feeling you get about some people, places and brands. And after a lifetime of shopping at SCHEELS and now the last month working with them on this story, I'm comfortable saying that they belong safely in this category. In some ways, it's a slight. To explain away the company's massive success
AUGUST 2017 | FARGOINC.COM
through some kind of hard-to-define connection you feel toward them conveniently glosses over the past 115 years they've spent perfecting and, in many ways, revolutionizing their craft. Whether you're walking in the front or the back of a SCHEELS, though, it's just simply true that it feels different than most other places. I think it can mostly be boiled down to the fact that "The SCHEELS Way" is not some clever marketing slogan or dusty set of values on a wall in an office somewhere, it's a systemâ€”literally a way of life. And each and every one of the company's 6,000-plus team members either get with the program, or . . . well, there is no "or." When we were at one of the shoots for the article, I saw something that so perfectly personified the "The SCHEELS Way," it was almost too good to be true. As we set up a shot of SCHEELS CEO Steve M. Scheel in the Ferris wheel at the company's Fargo location, Mr. Scheel had about 20-25 minutes to kill. It was early, and it would have been easy to pull out his phone and thumb through emails, but instead, he struck up a conversation with the Ferris-wheel operator.
I'm sure neither party thought anything of it, but I know I did. It was a show of respect and egalitarianism that I don't know you'd see at many companies the size of SCHEELS. Mr. Scheels echoed as much in the article when he said: "Far too often in today's world, leadership is seen as some CEO who is the charismatic face of a company who sets the direction and proclaims it from some pedestal. I would tell you that the best leaders, in my opinion . . . focus on developing people, and they get more satisfaction from watching those they work with have success than they do from being in the spotlight themselves." That, to me, is what "The SCHEELS Way" is all about.
Nate Mickelberg Editor Fargo INC!
Photo by Paul Flessland
Before I get into this month's note, I'd like to start by extending a sincere "thank you" to everyone at SCHEELS who helped us out with this month's cover story, especially Digital Advertising Manager Shaun Harrison. This will probably come as a surprise to no one, but they have a top-notch communications and PR team over there, and we would not have been able to pull off the article without an assist (understatement) from them at every step of the process. We hope that you enjoy it as much as we did, getting to pull back the curtain a bit on one of the most successful companies this region has ever produced.
EDITORIAL ADVISORY BOARD We at Fargo INC! want to make sure our content is unbiased, accurate, and reflects the views and opinions of the FM business community. That's why we meet regularly with our six-member editorial board to discuss area business issues and trends and ensure that we are living up to our stated values.
President & CEO FMWF Chamber of Commerce
Executive Director & Cofounder Emerging Prairie
SVP, Finance & Entrepreneurial Development Greater Fargo/Moorhead Economic Development Corporation (GFMEDC)
Moorhead Business Association Liaison
President & CEO Dakota Medical Foundation (DMF)
Executive Director Moorhead Economic Development Authority (EDA)
Special Adviser GWEN HOBERG
Chair, Communications Committee Moorhead Business Assocation (MBA)
August 2017 Volume 2 Issue 8
Fargo INC! is published 12 times a year and is available at area businesses and online at FargoInc.com
Publisher Mike Dragosavich
Editorial Director Andrew Jason Editor Nate Mickelberg Editorial Intern Kara Jeffers Graphic Designers Sarah Geiger, Matt Anderson Photography J. Alan Paul Photography, Hillary Ehlen, Paul Flessland
Contributors Craig Whitney, Marisa Jackels, Paul Jarvis,
Steve Dusek, FMWF Chamber of Commerce
Copy Editors Erica Rapp, Andrew Jason Social Media Kara Jeffers Web Editor Samantha Stark Web/Digital Coordinator Huong Tran
Sales Manager Layne Hanson
Marketing & Sales Paul Hoefer, Jenny Johnson, Scott Rorvig Client Relations Manager Jenny Johnson Sales Administrative Assistant Pam Mjoness Business Operations Manager Heather Hemingway Administrative Tatiana Hasbargen Sales & Operations Interns Nick Hackl, Kyle Gliva, Ruth Olson, Anushree Kesurvala
Delivery Hal Ecker, Nolan Kaml, Tom Wegner, Kent Hagen, Thomas White, Mitch Rapp
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Outdoor Paradises Curb appeal has the power to transform not just one house but an entire neighborhood. Here in the FM area, we only have a few warm months each year so why not make the most of them by surrounding ourselves with beautiful greenery and colorful blooms? This month, explore three exquisitely landscaped properties, catch glimpses of a charming garden and stop to sip sweet tea on a few front porches that will infuse you with the desire to create a serene scene in your own outdoor space.
What's Next For Carson Wentz If it wasn't for another rookie quarterback in the division, Carson Wentz's first year in the NFL would have been put national pundits in hysteria. Locally, Fargo, NDSU alums and North Dakotans proudly gloated the success of one of their own at the professional level. So what's next for NDSU's crown jewel? ESPN senior correspondent Sal Paolantonio answers that question for us in the August Bison Illustrated.
The Yesteryears Fargo-Moorhead packs an incredible amount of fascinating history since its beginning in 1871. This month, Fargo Monthly consulted historians, experts and veteran locals to uncover tales from Fargo-Moorhead's past. Whether you're a native to the area or a recent arrival, these memories will spark some nostalgia or show you that some of this history is still right in front of our eyes.
FARGO BUSINESS We like to think of the Fargo business community as a giant puzzle and the people who comprise it as the different but equally essential pieces. Take one person, one company, or one industry away, and the picture becomes incomplete. Faces of Fargo Business is our chance to piece that puzzle together each month and celebrate the countless people who make this such a great place to work. Photography by J. Alan Paul Photography & Hillary Ehlen
also "craving a new and more fulfilling way of leading." That's how She Leads Fearlessly was born.
NUKHET HENDRICKS Founder & CEO She Leads Fearlessly Executive Director Homeward Animal Shelter
lthough I'm not a native of North Dakota, having lived here for nearly 30 years and having survived multiple floods, I feel like I've earned the right to call myself an (almost) native North Dakotan." Nukhet Hendricks, originally from Turkey, has called the U.S. home as a naturalized citizen, since the late '80s. She has a master's in public and human service administration and has been a nonprofit executive for more than 20 years in various leadership roles. "My leadership journey has
been a challenging one," Hendricks says. "At one point during the journey, I had to pause to re-define and reframe my leadership style. I created one that is uniquely mine and works for me, allowing me to lead from the heart, a place of authenticity, and be fully present to create the impact I desire as a leader and influence the organization I work for." The work Hendricks did to create a brand of leadership that works best for her led her to participate in training from CoachU so that she could help other women who are
She Leads Fearlessly SheLeadsFearlessly.com
AUGUST 2017 | FARGOINC.COM
"I wear two hats," Hendricks says. "I'm a woman leadership coach assisting clients who want to be the best leader they can be and be part of the new generation of woman leaders. I'm also the executive director of the Homeward Animal Shelter. I know for a fact that these roles feed off each other, making me even more successful in what I do in both roles. But most importantly, having the opportunity to do both fulfills me deeply. "I continue to work at the Homeward Animal Shelter because I want to be a part of giving a voice to the animals who cannot speak for themselves," she says. "And I love being a women’s leadership coach because empowering women is what my heart longs for. I want every girl and woman to feel their most powerful and actualize their dreams, and being a part of this defines my leadership. I'm a leader who wants to help create other leaders. "Because I am fiercely independent and a spiritual rebel with an unquenchable gypsy soul—always yearning for new frontiers—I am creating a group coaching program for woman leaders. This group coaching program, starting in late September, is for woman leaders who are longing to play bigger in their own lives and take their leadership to the next level."
Homeward Animal Shelter HomewardOnline.org
FRED BEVILL Stand-up Comic
ntertainers are always going to need that special hug they can only get from a stranger," says Fargo-based stand-up comic Fred Bevill, not making it entirely clear if the hug he's referring to is a literal or metaphorical one. "Perhaps there’s a whole psychological thesis that can be done on that, but it's true." Performance art—whether it's acting, comedy or music—is a pursuit of passion, to be sure, but it can be easy to overlook the fact that it's also a career for many people, even in our own backyard. One of those people is Bevill, who's been a full-time touring comic for more than 25 years. A native of Lake Tahoe, California, Bevill's an alum of the American Academy of Dramatic Arts in Los Angeles, which is also where he got his start as a stand-up two and a half decades ago. "At that time, like most young comedians starting out, I performed not only in comedy clubs but also laundromats, Chinese restaurants, parks, anywhere there was an audience," says Bevill, who's toured with Jerry Seinfeld, Damon Wayans, Louis Anderson, Jeff Dunham, and Daniel Tosh, among many others. "And it didn't really
AUGUST 2017 | FARGOINC.COM
matter if they were listening or not." After grinding out one-nighter gigs in the Pacific Northwest for five years, he eventually graduated into comedy clubs (including the worldfamous Comedy Store in West Hollywood, California), then into the headliner
spot, and eventually into the corporate market, which is where he spends most of his time nowâ€”he's currently working a "one week on, one week off" schedule on a cruise ship off the coast of Alaska. If you're wondering how a California boy ended up on the prairie, that's a whole 'nother story fit for a Hollywood romcom. The short version is that about 15 years ago, during a stop at Courtney's Comedy Club in Moorhead, Bevill met "the girl of his dreams" and future wife, Kris, and it wasn't long after that he was trading in his shorts for snow pants. For those thinking about getting into the industry themselves, Bevill has one pretty simple piece of advice. "No one should ever get into show business because they want to be rich or famous," he says, sounding eerily similar to a startup founder or small-business owner. "If your motivation is money and fame, you're probably going to have a miserable life because only one percent of people, if that, reach that level of success. "The motivation to being a professional entertainer has to be that there's nothing else in this world that makes you happier. The ones who put in the work are the ones who will do this the rest of their lives. The ones who just party will eventually wash out."
FredBevill.com Facebook.com/ FredBevillComedian
KARI BUCHOLZ Founder & Executive Director
magin if ths iz what yu saa wen yu trid to reed a sentins.
(Imagine if this is what you saw when you tried to read a sentence.) For those with dyslexia, which affects one's ability to read or interpret words, letters, and symbols, it's a daily reality. And It's a reality that Kari Bucholz didn't fully understand until her own son was diagnosed as dyslexic a little more than a decade ago. "Haley was struggling in school both academically and emotionally," says the interior designer-turned-founder of Haley's Hope, a West Fargo-based nonprofit that provides dyslexia screening and consulting in a community where such resources are lacking. "I consulted teachers and doctors, hired a private tutor, and had Haleyâ€™s hearing and vision testedâ€”along with a full neuropsychiatric evaluation. There were no answers to guide me forward."
AUGUST 2017 | FARGOINC.COM
So Bucholz started to research dyslexia and began her search to find someone who could tell her whether or not the learning difference was the reason education was so difficult for her son.
Bucholz says her goal with the organization is to create a hyper-awareness locally about dyslexia and, perhaps more importantly, a support system that wasn't there when her own son was diagnosed.
"Education should have a positive impact on the lives of children," Bucholz says. "It should give knowledge, build confidence and help them to discover their passions in life. Imagine, then, an experience where kids are unable to learn and their confidence and passion are extinguished. This is what dyslexia does.
"I have a vision that all children in Fargo, Moorhead and West Fargo—and surrounding communities in the region— could be screened for dyslexia in kindergarten or first grade in order to start researchedbased services to the statistical one-in-five who have it," says Bucholz, who adds that her eventual goal is to extend Haley's Hope's resources to adult populations and the area business community as well. "This could be done by Haley’s Hope, or, with adequate resources, the organization could train others to become proficient in screening.
"By the time Haley was a mere 6 years old, I had lost so much of the happy, outgoing, gregarious boy I had prior to preschool, and I knew I had to figure out how to get him back." She eventually had Haley tested and diagnosed in the Twin Cities, subsequently driving there weekly for six months so that he could attend literacy tutoring. She also attended special training in both California and Massachusetts in order to deepen her understanding of the disorder. "It started as a makeshift office across from my interiordesign studio," says Bucholz, referring to Haley's Hope, which is headquartered in West Fargo and has additional offices in Fargo, Detroit Lakes, Minnesota, and Mahnomen, Minnesota. "Now, it houses more than 20 tutors."
"This journey is not, and never has been, about me. Haley’s Hope has always and will always be about the students and adults with dyslexia who finally have a place that understands the way they learn. Coming to understand how Haley learns and the changes I saw in him in such a short amount of time, it completely changed his life’s direction. Why would I—or we as a family—not do what we could to give that simple gift to others?"
Haley's Hope HaleysHope.org
A Cl ser Look
5 Reasons You Should Care About
AGRICULTURE (Even if You' re Not a Farmer)
Lynn Paulson SVP & Director of Agribusiness Development Bell Bank
Kara Jeffers Fargo INC!
AUGUST 2017 | FARGOINC.COM
How local agriculture affects Fargo-Moorhead's . . .
"Farming is the art of losing money while working 400 hours a month feeding people that think you're trying to kill them." - Cam Houle, dairy farmer Farmers are in a business that affectsâ€”even if we don't realize itâ€”the entire population in some way, shape, or form. Yet, there's a disconnect growing larger by the day between rural and urban communities and businesses. Lynn Paulson, senior vice president and director of agribusiness development at Bell Bank, believes both the Fargo-Moorhead area and the local farmers and ranchers benefit from knowing and connecting with each other. "We all need to adapt a little bit to help each other understand," he says. "There is a tremendous opportunity for everyone in this community space to be involved, including those who live in the metro and those who live outside it." Paulson sat down with Fargo INC! to discuss areas where agriculture can make a difference and why the urban dwellers and business owners of the Fargo-Moorhead area should care.
BY Kara Jeffers PHOTOS BY J. Alan Paul Photography
LP: "When farmers and ranchers make money, they spend it. They don't hoard cash. They go out and spend it. They are buying new pickups, lake homes, trading the farm over to their kids, moving to Fargo and building a house, or their kids are coming to Fargo, and they helped them with a down payment for a house, put up rent for an apartment, maybe sent them through college. They are doing things that help the community's economy. "Fargo also has a lot of agricultural, farm-equipment manufacturers, and there's a lot of people who are tied to
agriculture who may not even know it. Fargo stands pretty well on its own, but at the end of the day, Fargo's economy and North Dakota's economy as a whole are still highly influenced by profitability and what goes on on the farm. There are people in Fargo who have inherited farm land and have benefited by either higher land prices or much higher cash rents for their land. The dollars flowed into Fargo. Families came to town and spent a lot of money in local stores. They come and go to restaurants, to the mall, they buy retail and, as we all know, retail is struggling a little bit. There's nothing like a strong farm economy to give that a boost."
LP: "First of all, I think one of the mistakes that farmers, ranchers and consumers alike make is they've taken each other for granted. I think one of the mistakes the farmer, rancher or producer has made is that they've underestimated the impact of the Millennials. If the farmers/ranchers don't take who their consumers are seriously, then they are really missing the boat. "Then you've got the issues consumers worry about, for example, GMO/non-GMO, animal welfare, organic and traceability. People want to know where their food came from, what's in it, what's not in it and how it was treated. There is an embedded opportunity for farmers and
ranchers to take advantage of that. Trends are changing, and the consumers are obviously driving that behavior. "In different parts of the country, they do a banquet in the fields, connecting the farmers and the consumers. We need more of that. It's unbelievable the number of urban people who come out to the farms, and they are just in awe of not just the equipment but how livestock is raised and those type of things. Consumers generally trust farmers and ranchers, but they want to hear the message from them, and having a banquet in a field is a great way to get the message across and bring a community together, even potentially giving opportunities to partner with local people and businesses."
LP: "Farmers have become phenomenal stewards of the land. If there is anybody who has invested interest in taking care of the land, it's the farmer. I had one farmer tell me that the only thing more valuable to them than their soil and taking care of their land is their family. "I think the interests of farmers and urban-living people are much closer aligned than we think. We just need to get together and have a conversation. Who leads that? I don't know, but one of my goals is to speak to both farm groups and non-farm groups and help them to understand we are closer than we think. "What I always come back to: Is farming a privilege or a right? I think it's a little of both. I'm a landowne so I'm big on landowner rights, but I also have a responsibility to take care of the land. I think it's a little bit of a balancing act. Are there producers out there who abuse things? Absolutely, but you'll find that in any economic segment."
Culture LP: "I'm a fourth-generation farmer so I grew up on a farm, and my biggest regret is that my kids didn't. They didn't learn all the life lessons. They didn't learn about animals giving birth or dying. They didn't learn the work ethic. The life lessons that were taught out there, how you replicate those in the urban setting, I don't know. "The reality is that North Dakota has become a very urban state. We think we're a rural state, but we're not. The population centers are Fargo, Grand Forks, Bismarck and Minot. That's where all the people are. That's where the business community is growing, creating jobs and other opportunities. I live in a great community full of 30-somethings in West Fargo. I love it, but when you talk to them about agricultural issues, they have such a limited understanding and knowledge. A mile away is a soybean field, and they don't know anything about it. They couldn't tell me if it was a soybean field, a sugar beet field or a sunflower field. How we change that, how we change people's views, how we bridge that is both a challenge and an opportunity. "There is a barrier between the farming community and the non-farming community, and it's a knife that cuts both ways. But at the end of the day, if you can bridge the distance, I think farmers and ranchers would find great opportunities to meet what the people in Fargo-Moorhead, or the urban dwellers, would like to see. Don't fight misinformation. Get the facts both ways, and if that happens, everybody does better."
Future LP: "The technology and what we'll be able to do with genetics, yields and equipment is a large part of the future of agriculture. Farms are going to continue to get larger, and the equipment capabilities will follow that. Technology has made life different on the farm. Maybe not less stressful, but the productivity is off the charts and will continue to increase. What we've seen in the past 10 years is phenomenal, but I don't think we've seen anything yet, technology-wise. What's coming in the next 10 years is going to blow us away, especially with how quickly technology is coming out. I also think technology is going to allow people to get more of the type of foods they want, especially with what they are going to end up doing genetically with produce. "I think the well-managed farms, even if this is a depressed economy, are going to continue to do well. We live in a phenomenal productivity environment in the Red River Valley. The glaciers blessed this place when they went through and left the soil here, creating opportunities galore. If there are any concerns, it's going to be that some of these operations are fairly large. They're buying more and bypassing the retail. You'll see smaller input-supply businesses struggling a little bit because it'll be hard for them to compete. "We're probably going to have to re-do our thinking in terms of the supply chain, who it benefits, and who can make a profit while still providing value to consumers, but I see a great future for agriculture in the FargoMoorhead area. That future can only be made stronger through local business and community support."
AUGUST 2017 | FARGOINC.COM
Senior Vice President & Director of Agribusiness Development Bell Bank Paulson speaks to financial, commodity and other farm groups on agricultural lending and finance, the global economy and the ag economy. He discusses issues like the difficulties farmers, lenders and others now face in the aftermath of super-cycle prosperity. He has financed farm operations and businesses for more than 30 years while owning and operating a family farm in Benson County, North Dakota. These experiences have given Paulson a unique perspective on the agricultural sector's challenges and opportunities. He also works with and assists a number of correspondent banking partners and agricultural operations and businesses across several Midwestern states. TAKE
Lynn Paulson LPaulson@BellBanks.com 701-298-7138
BY Nate Mickelberg PORTRAITS BY J. Alan Paul Photography and photos courtesy of SCHEELS SPECIAL THANKS TO Shaun Harrison, Kara Jeffers & Hillary Ehlen 34
AUGUST 2017 | FARGOINC.COM
How to Build a Business That Will Last Five SCHEELS team members give their take on what makes the 115-year-old sporting-goods giant such a special place to shop and work.
"The best leaders focus on developing people, and they get more satisfaction from watching those they work with have success than they do from being in the spotlight themselves."
P urpose NAME Steve M. Scheel TITLE CEO
DEPARTMENT Corporate Office JOINED TEAM 1989
Four Generations of Scheels: (L to R) Fred B., Fred M., Steve M. and Steve D.(1970s) 36
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HOMETOWN Colorado Springs, CO
1902 â€¢ Fred opens first SCHEELS store, SCHEELS Hardware/General Store. Sabin, Minnesota
Q: Many companies figure out their “what” and “how," but few ever really figure out their “why.” What is SCHEELS’ “why?" Why do you do what you do? A: We do what we do at SCHEELS to help our customers—as well as our associates who share their passions—get the most out of what they enjoy. Simply put, it feels good to help others. Whether we make a person's day with a smile, teach them more about their sport or passion, develop a career associate within our company or support a need in our community, we put others needs before our own, and that feels good. Q: What advice would you give to other companies trying to figure out their “why”? A: To me, it's like the person who chooses to live a healthy lifestyle. We all know why we should chose a healthy lifestyle, and there are many resources to help us do it, but it's up to the individual to make the commitment. In the same manner, we all know a company should figure out their "why," but unless they are willing to make the commitment to what they figure out, it's just a work project and will not make any meaningful change. Our leadership team is a constant example of "why" at SCHEELS in everything they do for our customers and associates. Q: What’s a non-starter for SCHEELS when it comes to hiring a team member? A: You have to have the right attitude toward life. Our process digs deep into an applicant's character to determine if they have what it takes to be successful in a company that moves quickly, will challenge you mentally and physically and require you to put others' needs
before your own and do this all with a smile and great service. No matter the position you're interested in, if you don't have a great attitude that will fit with our culture, you probably aren't going to make the cut. We can train most people on the skills they need, but it's nearly impossible to train someone's attitude toward life. Q: What’s an example of something you could see a SCHEELS employee doing that would give you the most pride and satisfaction as CEO of the company? A: I love hearing when a member of our team goes way beyond anything in their listed job responsibilities to take care of a customer. The other day on Facebook, I just read about an example at one of our stores. This is the type of thing that makes me proud of the people I get to work with every day. From Facebook: "So we're at the SCHEELS bike counter, and there's a kid who was in the vicinity that took a digger and wrecked his bike. Not only are the guys fixing the bike, they're patching up the kid, too. I should add that they're doing this all free of charge since, well, you know, he's like 12 and doesn't have any money. Well done, Sioux Falls SCHEELS." Q: What’s the biggest misconception about effective leadership? A: I think that far too often in today's world, leadership is seen as some CEO who is the charismatic face of a company who sets the direction of the company and proclaims it from some pedestal. I would tell you that the best leaders, in my opinion—and those whom I admire most both at SCHEELS and elsewhere—
are those who we seldom read about in the news. The best leaders focus on developing people, and they get more satisfaction from watching those they work with have success than they do from being in the spotlight themselves. Great leaders surround themselves with great people and they empower and lift them up to their fullest potential. Q: What role does employee ownership play in SCHEELS’ continued success? A: This makes a huge difference in our success. Our associates take more ownership in what they see, hear and do on a daily basis. They know that their decisions and actions not only affect their paycheck, but also affect our company success and ultimately their retirement. I firmly believe that this ownership helps our people have more pride in what they do. With pride comes a deep passion for your work, stability and low turnover, especially in a retail business. Our associates are at the core of our current and future success. Q: How does SCHEELS' roots as a small hardware store in Sabin, Minnesota, still permeate the company today? A: I think there are two important parts of our roots that still permeate today: 1) Customer service - I am pretty sure my great, great grandfather knew his customers by name and took care of them as best he could. While the scale has certainly changed since those first days, the attention to our customers is still something we believe sets us apart. 2) Employee ownership - This is still a part of our company as it was then. When you're an owner, you tend to take more pride in what you do every day, and this is a big part of who we are at SCHEELS.
• Long-time SCHEELS employee Lloyd Paulson begins working at the 212 Broadway Fargo location.
• Fred B. and Charles Scheel begin expansion with the help of their father, purchasing EricksonHellickson-Vye Hardware in Wheaton, Minnesota. Charles moves there to manage it. • The same year, they also open stores in Jamestown, North Dakota, and Breckenridge, Minnesota.
Q: Taking pride in your job isn’t just about doing the "big" things. In fact, it’s probably more about the little things. What are some lesser-seen aspects of your role that you take pride in doing every day? A: I really take pride in connecting with our crew on a daily basis. A simple smile and "hello" every day goes a long way. And it's not always about their shop and area or personal sales. It's about genuinely building relationships with them over the long run.
Did You Know?
In 1991, former SCHEELS leaders Chuck and Fred Scheel initiated the ESOP (employee stock onwership plan), thus beginning the company's retirement plan. SCHEELS is now the 22nd-largest ESOP in the United States.
A: Appearance sets the tone for the entire experience and assists in the longevity of a business. It's only the beginning, however. From there, you have to have a sound business model, great customer service and stand behind what you sell or offer if you want to be successful. Then, you perfect the most minute of details. Q: How does being an employeeowner affect how you approach your job?
Q: What does it mean to work for a company that helps its customers take pride in themselves and their chosen pursuit(s)? A: It means looking within the pursuit. How will my recommendations elevate their experience? I take great pride in sharing my adventures with our customers in order to help them enhance theirs while providing the appropriate gear for all levels of their sport. Q: From the dress code to floor displays to the restrooms, anyone who’s ever been to a SCHEELS store knows the amount of pride the company takes in appearances. What role do appearances play in operating a successful business?
A: It affects how I approach all aspects of my position because I'm vested, I have a stake in our company and I'm fully committed. SCHEELS has invested in my growth and development, and so I feel a drive to give back to SCHEELS. I wear my name tag with pride every single day. Q: What are you most proud of as a SCHEELS employee? A: The fact that the company I work for is a proud member of so many great communities and is held to such a high standard. We give back. We're involved. We take care of our customers. We are "the" place to shop. We have a Ferris wheel. We have great products and brands. We are conservative. We are unique. We smile. We work hard. We learn from mistakes. We have fun. I get to be a part of "we." We are SCHEELS!
• Charles opens a store in Billings, Montana. Lloyd Paulson moves to Wheaton, Minnesota, to manage that store.
• Moorhead store relocates and doubles in size. • Broadway store in Downtown Fargo moves. • South Fargo store opens.
AUGUST 2017 | FARGOINC.COM
"You have to have a sound business model, great customer service and stand behind what you sell or offer . . . Then, you perfect the most minute of details."
P ride NAME Ryan LaBarge
TITLE Assistant Store Leader Store Leader Candidate JOINED TEAM 2004 HOMETOWN Rapid City, SD
• Arrowhead Store opens in Bismarck, North Dakota. • St. Cloud store opens in Waite Park, Minnesota. • First mall store opens in Crossroads Mall in Waterloo, Iowa.
• Holiday Village Mall store opens in Great Falls, Montana.
Downtown Moorhead (1968) FARGOINC.COM
"The customer becomes a part of the SCHEELS family."
P assion NAME Justin Gehrke
TITLE Specialty Shop Manager DEPARTMENT Sport & Game JOINED TEAM 1996
HOMETOWN Hillsboro, ND
1969 â€¢ River Hills Mall store opens in Mankato, Minnesota.
SCHEELS Rimrock Store in Billings, Montana (1972)
Q: Why is the word “passion” featured so prominently in SCHEELS branding?
to-face “coaching” takes place, how do you keep passion a part of the customer experience in-store?
A: We at SCHEELS are very passionate about the sports and activities we like to participate in. We want the customer to be able to have that passion and enjoyment with the product and make their experience with the product the best it can be.
A: You treat each customer better than you want to be treated. We make the customer's experience more enjoyable and give them expert advice to enjoy their sport.
Q: Why is it important that customers interact with department experts who are as passionate as they are? A: When a customer interacts with an expert who is as passionate as they are, they can really relate to each other when picking out the product—making it a fun experience for both. Q: As retail continues its shift toward e-commerce and less face-
The customer becomes a part of the SCHEELS family and wants to purchase at the store instead of online. Q: What’s the most satisfying part of helping a customer discover or pursue their passion? A: The most satisfying part is seeing the joy a customer gets when they get the product they need or want to continue the passion of playing their favorite activity. Then, returning to the store to let me know how much fun they had and putting smiles on kids' faces.
• West Acres Mall store opens in Fargo. • 24th Street store opens in Billings, Montana.
• Dakota Square Mall opens in Minot, North Dakota.
• Northside store opens in Fargo.
Colorado Johnstown* Illinois Springfield Iowa Cedar Falls Coralville (Iowa City) West Des Moines (Des Moines) Sioux City
Minnesota Moorhead Waite Park (St. Cloud) Eden Prairie*** Mankato Rochester
Nebraska Omaha Lincoln**
South Dakota Sioux Falls Rapid City
Nevada Sparks (Reno)
Texas The Colony (Dallas)****
Montana Great Falls Billings
North Dakota Minot Bismarck Grand Forks Fargo
Kansas Overland Park
Wisconsin Eau Claire Appleton
* Opening 2017, ** Opening 2018, *** Opening 2019, **** Opening 2020
• Empire Square Mall store opens in Sioux Falls, South Dakota. • Blackhawk Mall store opens in Cedar Falls, Iowa.
• Downtown Minot, North Dakota, store moves to Dakota Square Mall.
• Sioux City, Iowa, opens in the Market Place Shopping Center.
AUGUST 2017 | FARGOINC.COM
"We build friendships and can all learn something from each other."
P ersonality NAME Rachel Phillips
TITLE Specialty Shop Manager DEPARTMENT Men's Sportswear JOINED TEAM 1993
HOMETOWN Jamestown, ND
• Great Falls, Montana, remodels and reopens as a SCHEELS All Sports store.
• Kirkwood Mall store remodels and expands in Bismarck, North Dakota.
AUGUST 2017 | FARGOINC.COM
SCHEELS: A Short History Three acres of potatoes were the seed for the first SCHEELS store in 1902. Frederick A. Scheel, a German immigrant, used the $300 he earned from that first harvest of potatoes as the down payment on the first SCHEELS, a small hardware and general merchandise store in Sabin, Minnesota. Over the years, SCHEELS opened in surrounding communities, including Fargo, where the company's corporate office is now located. Firmly planted in the hardware business, SCHEELS started adding a small selection of sporting goods to their stores in the mid-1950s. Customer interest grew, and more and more sports lines were added, with athletic shoes and clothing being introduced to the product mix in the early '70s
Q: Is there one personality trait that every SCHEELS employee shares? What is it? A: There are many personalities that make up the faces of SCHEELS, but many associates have a friendly and competitive nature. Many are goal-oriented in their personal and professional lives, which helps SCHEELS in its strides to be better at what we do as company. Q: What’s the significance of doing something as simple as greeting a customer when they walk into the store or saying “thank you” after completing a transaction?
would not be here if we didn't have customers, and we like to show our gratitude and appreciation by greeting our customers and thanking them for coming into our stores. Q: Why does SCHEELS encourage their team members’ individual personalities to shine through when interacting with customers? A: Many of our associates truly love to participate in and talk about the sports and activities we sell equipment and clothing for. It's fun talking with customers who share the same passions or who are thinking about getting involved in a sport or activity. We build friendships and can all learn something from each other.
A: Greeting someone is a common courtesy and a show of respect. SCHEELS
SCHEELS' first All Sports Superstore opened in Grand Forks, North Dakota, in 1989, and its RenoSparks, Nevada, location, which opened in 2008, is the world's largest all-sports store. Today, SCHEELS is a 26-store operation with locations in 11 states. Today, Steve D. Scheel, the great grandson of one of the SCHEELS cofounders, is the company's chairman of the board and his son, Steve M. Scheel, serves as CEO. Bill Nelson serves as president and oversees SCHEELS’ daily operations and more than 6,000 associates. SCHEELS is an employee-owned, privately held business that owes its consistent success to its empowered associates, leaders, and partners who think and make decisions for their individual stores and the entire company.
• 40,000 square-foot store opens in Sioux Falls, South Dakota.
• Mankato, Minnesota, store relocates to River Hills Mall.
• All SCHEELS stores are converted to sporting good stores, with the exception of SCHEELS Hardware on University Drive in Fargo. • Appleton, Wisconsin, store opens. • North Fargo location closes.
Q: Do you feel a sense of pressure (in a good way) to not only perform for yourself but for the company? A: I feel a sense of pride more than pressure to perform at a high level both for myself and the company. There is a deep satisfaction that comes from the achievements of the associates whom I get to work with closely at SCHEELS. Q: What does it mean to know you’re representing the SCHEELS brand? A: Representing the SCHEELS brand is a huge responsibility. The brand encompasses what our customers have come to expect in terms of service and selection. Representing the SCHEELS brand is a promise to our customers that they will get consistency in our stores as we strive to make their experience memorable. Q: Anyone can perform occasionally. As a SCHEELS team member, why is it important for you to perform day in and day out?
A: Taking the time to prepare a daily routine is key. Preparation and routine create the performance roadmap for the team to succeed. When we take that
roadmap, new benchmarks can be set and achieved. Author John C. Maxwell said it best about performance, "Small disciplines repeated with consistency every day lead to great achievements gained slowly over time." Q: SCHEELS team members are held to the highest of standards. How would you describe that standard to someone outside the organization? A: Until you are fully immersed in the culture of SCHEELS, it would be hard, if not impossible, to describe that standard to someone outside the organization. Q: Why is it important that customers associate the SCHEELS name with improving their own performance? A: When you walk into a SCHEELS store, you're walking into a store filled with associates who participate and aspire to evolve in the same sports and passions that inspire you. Every day, I'm surrounded by amazing associates who inspire me and who bring the best out of me. SCHEELS is a community helping to bring the best out of our customers, offering value and connection beyond mere products in this digital age.
• Eau Claire, Wisconsin, store opens at 50,000 square feet.
• The first 100,000-square-foot, two-level SCHEELS store opens in Coralville, Iowa.
"Until you are fully immersed in the culture of SCHEELS, it would be hard, if not impossible, to describe that standard to someone outside the organization."
P erformance NAME Brian Wagner
TITLE Assistant Store Leader JOINED TEAM 1989 HOMETOWN Fargo, ND
• 24th Street store in Billings, Montana, relocates to Rimrock Mall and expands to 40,000 square feet. • Cedar Falls, Iowa, store relocates to College Square Mall.
• SCHEELS opens a new 190,000-square-foot store on 45th Street in Fargo. The location houses North Dakota's largest selection of sports, sportswear and footwear under one roof.
SCHEELS Scheels.com FARGOINC.COM
Taking the Fear Factor Out of
Succession Planning Questions to Consider to Keep Your Company Strong After You Leave
or many business owners, selling or passing on a business to heirs can be as challenging as starting their beloved business was many years ago. After investing years or even decades of blood, sweat, and tears into a business, for many business owners, their work becomes a part of their DNA and as dear as a child.
on Selling Your Business to a Third Party
By F. John Williams III & Michael Raum Photos courtesy of Fredrikson & Byron
We recently sat down with two local attorneys from Fredrikson & Byron law firm, Michael Raum and F. John Williams III, and got answers to a few questions they say a business owner should be considering as they prepare a continuation plan for their company. 48
AUGUST 2017 | FARGOINC.COM
HOW DO I IDENTIFY A SUCCESSOR? Michael Raum: When selling a business, you don't always have the luxury of choosing your opportunity because a potential buyer may approach you at the time that makes sense for them.
Bios Michael Raum is an attorney and shareholder with Fredrikson & Byron law firm in Fargo. His practice is focused on commercial law, with a specific emphasis on tax matters. He works with publicly and privately held companies on business transactions, including structuring, financing and advising on general corporate matters.
F. John Williams III is an attorney and shareholder with Fredrikson & Byron law firm in Fargo. He focuses on sophisticated estate planning, business succession, and trust and probate administration solutions for business owners, farmers, ranchers, executives and professionals.
Assuming that hasn't happened, you should begin by identifying possible candidates. Those might include strategic targets such as others in the industry who would benefit from acquiring your company, including competitors. Other candidates include current management or employees. If there are no clear targets or if you want to make sure you maximize your return, you may wish to retain a brokerage or other investment banking firm to help you identify targets and begin a process to obtain the best price. WHEN IS THE RIGHT TIME TO START TRANSITIONING MY BUSINESS? Raum: While some deals go quickly, it's not unusual to take several years to identify a good target, negotiate and close a transaction. As a result, I recommend beginning the process several years before you would like to be finished. There are always exceptions such as a situation where there's an obvious inhouse candidate to purchase. Those cases notwithstanding, however, it makes sense to give yourself enough time to do this right. WHAT ARE SOME BUSINESSSUCCESSION TECHNIQUES? Raum: The most common technique for transitioning to a third party is simply to sell the businessâ€”either with payments over time or all of the money up front. Whether you sell equity in
AUGUST 2017 | FARGOINC.COM
While some deals go quickly, it's not unusual to take several years to identify a good target, negotiate and close a transaction." the business or its assets is determined on a deal-by-deal basis, depending on factors outside the scope of this particular article. There are also some more specialized strategies for transitioning a business such as forming an employee stock ownership plan (ESOP), which can make sense for some businesses. All of these items need to be negotiated and determined as part of your process. WHAT ISSUES WILL I NEED TO ADDRESS IN MY BUSINESS SUCCESSION PLAN? Raum: In addition to all the issues outlined above, one major issue is for an owner to think about what they intend to do after the sale. Most buyers will insist that you not compete with them after the sale and will almost certainly require you to enter into a non-competition agreement. Therefore, you should only sell if you are prepared to get out of the business for the immediate
future. In addition, some buyers may want you to stay on to help transition the business, and so you should be prepared to consider whether that's acceptable to you as part of a transaction. WHAT IF I JUST DIE AND LET MY FAMILY HANDLE THE BUSINESS SUCCESSION? Raum: The point of a succession plan is to think these things through as far in advance as possible and seek to maximize the price you can obtain. Unfortunately, your family will not be in as good a position to maximize value as you are prior to your death. After you die, your family may not know how to keep the business running, and they may struggle to understand its value. Also, there will not be any ability to offer ongoing services to the buyer to help maximize the price. As a result, you can reasonably expect the company to be sold for less after your death than you would be able to obtain prior to it.
F. John Williams III
on Successfully Transitioning Your Business to a Family Member
successful transition. However, when it comes to transitioning a family business, it's always best to start slowly. You never want to give up ownership or control only to find two years later that you want it back—because chances are you won’t get it back.
HOW DO I IDENTIFY A SUCCESSOR?
WHAT ARE SOME BUSINESSSUCCESSION TECHNIQUES?
F. John Williams III: When looking to transition a business to a family member(s), the field of candidates is often smaller and not as difficult to identify as selling to a third party.
Williams III: In a business succession to family members, there are generally two categories of techniques:
Generally speaking, the candidate you are looking to transition the business to is already working for the business while you own it. If the person you wish to transition the business to isn’t working in the business, it is a good idea to ask the candidate to start to see if they like the business and can handle all of the challenges of ownership. If multiple family members are appropriate candidates, it will be important to see how they work together in the business before they own it together. WHEN IS THE RIGHT TIME TO START TRANSITIONING MY BUSINESS? Williams III: Like selling to a third party, the process is almost always more successful the more time that you give yourself. Often, the gift tax or incometax effect of a transaction that unfolds over a number of years is more beneficial to the client than a single transition event. Therefore, my clients who are planning at least three years into the future provide me with more opportunity to help them with a
1) Sale 2) Gift Often, my clients will use a combination of these two categories. In order to accomplish either a gift or sale, I will often start by making sure the capital structure of my client’s business contains voting interests and non-voting interests. Dividing the ownership into voting and nonvoting allows my client to transition at a pace they're comfortable with but also maintain the controlling interest until that final moment when they are ready to let go. If the business succession involves a sale, there are trusts we can utilize to minimize the income-tax gain on the sale, and if the business succession involves a gift, we often utilize the annual gift-tax exclusion to limit the gift and estate-tax effect to the client. The annual gift-tax exclusion is the amount of gifts a donor can make to another person without causing a gift tax, and for 2017, that amount is $14,000 per recipient per year.
It's Worth Thinking About According to CNBC, in 2016, U.S. Trust, a division of Bank of America, released the results of its Wealth and Worth Survey, which sampled a group of millionaire business owners with at least $3 million in investable assets. It found that two-thirds of business owners don’t have a succession plan, 16 percent plan to pass their companies on to their families and nearly 65 percent over the age of 50 have no plan. Whether they're too busy, want to avoid the expense, or just don’t want to think about it, most business owners are smart enough to know that, without a clear succession plan, their precious business may very well fail to thrive if they are disabled and when they die.
WHAT ISSUES WILL I NEED TO ADDRESS IN MY BUSINESS-SUCCESSION PLAN? Williams III: For a business succession to a family member, you need to consider legal, tax and family issues. What I mean is that you will need to put your plan into writing, outline the terms of the plan and make sure you enforce the terms of your plan. You will also need to talk to your attorney or tax-preparer to make sure the income or gift-tax effect of your business succession plan is one that you can handle. And finally, you need to think about how the transition to one or more family members is going to affect the current status of your family dynamic and also the future status of the family dynamic. Unfortunately, I’ve had clients who succeeded on the legal and tax issues of a transition but wound up creating more family-dynamic issues. WHAT IF I JUST DIE AND LET MY FAMILY HANDLE THE BUSINESS SUCCESSION? Williams III: This is a terrible idea. If you have any desire to provide stability and wealth for
If multiple family members are appropriate candidates, it will be important to see how they work together in the business before they own it together." your family, then not having a plan in place is most certainly going to devalue the business and cause family strife. Also, if your immediate family is not involved in the business, the stress caused by operating a business in which they have no expertise is significant. Not to mention that it opens the door for others to take advantage of them because of their lack of knowledge and understanding. If you run a successful business, you put contingency plans in place for much of what you do. Even if you aren’t planning on transitioning your business in the near future, putting a contingency plan in place will pay off in the long run.
If you have questions about succession planning or are interested in creating one for your business, Michael Raum and F. John Williams III can be reached at: Michael Raum MRaum@FredLaw.com F. John Williams III FJWilliams@FredLaw.com
Fredrikson & Byron FredLaw.com 51 Broadway N, Fargo 701-237-8200
"That's the thing you're really trying to find when you're doing professional hiring. You can train skills all day long, but if you get someone in there who isn't a culture fit, it's going to be friction forever." MATT HELANDER SRG Managing Director & Professional Recruiter, Express Employment Professionals
AUGUST 2017 | FARGOINC.COM
Sanford Health General Counsel Beverley Adams (far left) looks on as Minnesota legislators share their take on the state’s session. (L to R: Sen. Kent Eken, Rep. Paul Marquart and Rep. Ben Lien)
Minnesota’s Legislative Session By Craig Whitney
& Why You Should Check out an Eggs & Issues Event
ere at the Chamber, we host many events, ranging from workplace training to inspirational keynotes to networking functions and more. One of our monthly series, Eggs & Issues, is among my favorites, though.
Craig Whitney is the president and CEO of the Fargo-Moorhead-West Fargo Chamber of Commerce. Portrait by J. Alan Paul Photography Photos courtesy of FMWF Chamber of Commerce
It’s a forum that gathers community leaders and elected officials who speak to the Chamber membership about the timeliest topics affecting our region. We’ve had several highly attended and informative events covering a range of topics, including community crime and the
drug crisis, immigration, the oil and rail industries, workforce and more. As a chamber, it’s a priority for us to help our community stay educated on the issues that affect them and make exposure to such topics and speakers easy. In June, we hosted the second of our legislative wrap-ups, focusing on the recent session in Minnesota. Bill Blazer of the Minnesota Chamber of Commerce opened the event, and Sen. Kent Eken, Rep. Paul Marquart and Rep. Ben Lien also took the stage to share what they saw in the legislature.
© 2017 Fredrikson & Byron P.A. All Rights Reserved.
SKILLED LAWYERS STRATEGIC ADVICE • Estate Planning and Business Succession • Corporate and Business Matters Call F. John Williams or Mike Raum at 701.237.8200
What we learned was that while it was a divided session—with nearly 25 new legislators in the House and more than 20 in the Senate—they were able to come together for a successful conclusion for all Minnesota residents. Blazer shared with us the state Chamber’s four main priorities: 1) Business-tax relief 2) Creating healthcare options 3) Stopping new workplace mandates 4) Transportation investments All areas saw success with the exception of their hope of passing the Uniform State Labor Standards Act. Minnesota did pass Real ID, which means the state’s driver’s licenses will become compliant at federal checkpoints by 2020. One issue we’re watching locally that was on the state chamber’s radar was affordable childcare and housing—an area that still has much work left. “Our one-word summary for the 2017 session was that it was successful,” Blazer said. “The legislature made substantial progress toward the development and growth of the state’s economy.”
Moving on to the legislators, Sen. Eken expressed concern for higher education, stating that while there was more money provided, it wasn’t enough to maintain the level of quality and an affordable price for our students. One other area he wished got more funding was long-term care. “We are facing demographic changes, the likes of which we’ve never seen in world history,” Sen. Eken said. “This is a major challenge and a daunting task, but we need to shine the spotlight on it.” Marquart then noted the difference a year makes, comparing last year’s absence of a tax bill and bonding bill. He did mention that we saw our first-ever student-loan credit but acknowledged the teacher shortage, stating that we need to correct teacher licensure, especially for Northwest Minnesota. Lien noted a $3 million appropriations tax bill, which will continue the BorderCities Enterprise Zone Program to provide business tax credits to qualifying businesses on the Minnesota-North Dakota border. One of his concerns was student-loan forgiveness, which he says is important because student debt is a real crisis that is slowing economic growth.
One major win for our community was achieving funding for the Moorhead railroad underpass. This will allow for better traffic flow and quicker response times for emergency vehicles at 21st Street and Main Avenue. It also served as a great example of teamwork from our lawmakers and our community members. If you haven’t been to an Eggs & Issues before, I encourage you to join us. It’s important that our member businesses and individuals take time to learn more about political, social, and economic issues, and this event series helps them do just that. Plus, it’s a great time to network over a delicious breakfast. We hold these the first Tuesday of every month from 7:30 - 9 a.m. at the Courtyard by Marriott in Moorhead. We hope to see you soon!
FMWF Chamber of Commerce FMWFChamber.com
HE A LTHY OFFICE L I V I NG
Lateral neck bend
How: With your right hand, grab your left wrist behind your back. Pull wrist toward the right, across your low back. Tilt your head to the right. Gently rotate your head so you are looking down. Repeat on opposite side.
w/ Beth Nokken
Why: "We tend to bring our shoulders up to our ears, causing tension in our neck and shoulders. This stretches the muscles on the side of the neck and down into the shoulder, relieving the tension."
pper body pain is a common complaint from those who work in an office, and it's not a surprise. People who sit at a desk are especially prone to back, neck and shoulder pain due to the heightened opportunity to be internally rotatedâ€”meaning our shoulders round forward, the chest falls and we stay there for almost the entire eighthour work day.
Taking a few minutes every hour or so to stretch can do wonders for your posture and overall comfortability as you sit at your desk. We spoke with local chiropractor Dr. Beth Nokken to ask which stretches she recommends doing to help relieve the muscles that become overused or tight, causing the pain. Here are five stretches to do in the office, with explanations from Nokken on how and why.
AUGUST 2017 | FARGOINC.COM
How: Take the palms of your hands and push down toward the floor and back while tipping your chin gently up. Why: "This lengthens the muscles in the front of your neck, chest and arms."
Doorframe stretch Dr. Beth Nokken "I started seeing a chiropractor when I was 10 years old for injuries sustained in gymnastics. I went with my mom, and she asked if he ever worked on kids. And the next thing I knew, I was on the table getting adjusted. When I left, I remember thinking, 'That was really cool.' It was the first time I went to the doctor and felt better without having to get a shot or take medicine. From that point on, my mom said I started saying I wanted to be a chiropractor." Nokken graduated from Northwestern College of Chiropractic, now known as Northwestern Health Sciences University, in 1994. She is originally from and currently resides in Moorhead.
How: Place your hands on each side of a door frame, or mimic the doorframe as the example shows. Lunge through. Repeat with the other leg. Why: "Sitting all day, we tend to round our shoulders forward and those muscles become contracted during the day. This stretch counteracts that and relieves tension in your chest and upper arms."
Shoulder blade stretch
Nokken Chiropractic and Massage NokkenChiropractic.com 1220 2nd Ave. S Moorhead 218-233-1188
How: Push the top of your head to the ceiling and tuck your chin straight back. How: Put your hands together and push straight out in front of you. As you push forward, round your back out. Why: "This stretches the small muscles at the base of your skull, which can be common culprits of headaches."
Why: "This stretches the shoulder blades, giving you another way to loosen them up and give them a break."
Katherine Kilbourne Burgum
CENTER FOR CREATIVITY
f you're new to Fargo, there's something you should know: It wasn't always like this. We take for granted the bustling city center that Downtown has become—filled with trendy restaurants, farmers markets and charming buildings—but not all that long ago, the landscape was quite different. Marisa Jackels is the lead storyteller at Tellwell, a social-media agency in Fargo. BY Marisa Jackels PHOTOS COURTESY OF Plains Art Museum
In partnership with our friends at Tellwell and Kilbourne Group, we'll be telling the story of Downtown's transformation in a series focused on the pivotal projects and historic renovations that paved the way for what the area has now become.
Glance through the tall windows of the brick building at 717 1st Ave. N, and you might see kids sculpting hamburgers out of clay. Or adults painting with watercolor. Or, if it’s after-school hours, one of the artists-inresidence creating a new masterpiece. This is the Katherine Kilbourne Burgum Center for Creativity, a community studio space designed for learning, discussion and display of creative work. Thousands of students of all ages create art within these walls every year, but it wasn’t always this way. The vision for the center began at the intersection of two needs in the community with one common goal: creating a space for hands-on art.
AUGUST 2017 | FARGOINC.COM
The first need was from Fargo Public Schools, which, at the time, had a thriving program called Creative Arts Studio. The intention of the program was to give elementary students a more robust, hands-on art experience through working with professional artists, and it was a huge success—so much so that they were outgrowing their basement space and needed somewhere to grow. At the same time, the Plains Art Museum in Downtown Fargo was also facing challenges with their campaign to expand. Their original dream was to own all of the property surrounding the museum, with each portion serving a different purpose, including affordable housing for local artists. However, it soon became clear that, with the resources
Kathrine Kilbourne Burgum Center for Creativity
available, they would need to re-imagine that vision. “We had to think about what the most important part was," says Michael Olsen, board chair of Plains Art Museum at the time. "What was the center of this dream? We believed the most important thing was to fulfill the promise to our community, a promise of helping our youth become part of an arts movement.”
"We believed the most important thing was to fulfill the promise to our community, a promise of helping youth become part of an arts movement."
A conversation started between the two organizations, and they quickly realized they were at similar crossroads. “We were looking for a new home for our
vision at the same time the Plains Art Museum had a vision for a similar program,” says Rick Buresh, former superintendent of Fargo Public Schools. A new dream was born: a vision to create a local center for creativity where kids and adults could have interactive, artistic experiences. Together, they would be able to provide a place for kids to get hands-on art education while also allowing the community to be more involved with the Plains Art Museum.
“It was a no-brainer when the proposal for the Center for Creativity came up,” Olsen says. “It was a way to grow art and art supporters within our community.”
"She saw beauty in the world and thought, 'How can we have more of that?'" Kathrine Kilbourne Burgum
spirit. As a place built on a vision to infuse the community with arts and education, the Center for Creativity seemed to have her name all over it. “And now it literally does have her name all over it,” Olsen says."
The Plains Art Museum was already raising money for a campaign to expand their presence in the art community, but to bring it to the next level, the Center for Creativity would need a community effort.
The family of current North Dakota Gov. Doug Burgum had recently established a fund in honor of their mother, Katherine. Katherine Burgum, or “K” as friends and family knew her, was a long-time advocate for the arts community. “She was someone who had a love for beauty,” says K's grandson, James Burgum. “She saw beauty in the world and thought, 'How can we have more of that?'” At the time, the Burgums were looking to invest in a place that would be true to her
AUGUST 2017 | FARGOINC.COM
Together, combined with funds already raised, they were able to meet the more than $6 million goal to finish construction, free of debt. The project involved rehabilitating more than 25,000 square feet of space adjacent to the Plains Art Museum and turning it into an interactive studio space. The center is connected to the Plains Art Museum via the 50-foot-long Bradley J. Burgum Skybridge bridge, the late son and brother of K and Gov. Burgum, respectively. Bradley was also a strong art advocate and a true “bridge-builder” throughout his career, according to his son, James. The bridge is now home to different art exhibits that vary throughout the year.
"In my opinion, the biggest impact is made when women who are in a field talk to younger women. Just going to high schools and doing that outreach is so impactful." TAJAE VIAENE Lead Flight Instructor, Fargo Jet Center
In her honor, the Katherine Kilbourne Burgum Trust contributed $300,000 toward the project, with an additional $200,000 challenge grant from the Burgum family. The community met the challenge and matched with nearly $230,000, donated from community members, businesses and foundations.
Artist-in-residence Olivia Bain reads to a group of children at the Katherine Kilbourne Burgum Center for Creativity in Downtown Fargo.
Throughout the fundraising process, the Burgum family and community were focused on results. What would this place become? How will it impact the community? Olsen and the team at Plains Art Museum painted a vision of hundreds of kids coming, learning about art and artists-in-residence pursuing their trade, all leading to a whole new generation of arts advocates. And that dream was realized. Today, they are proud to say that more than 10,000 kids come through the Center for Creativity each year, a number that Olsen says far exceeds their initial projections for the space. In addition, the Center is home to different artists-in-residence who are able to teach students and create art using the resources of the studio. “I love the natural light in here,” says Olivia Bain, a current artist-in-residence who specializes in sculpting. “It’s just a beautiful space to work.” Bain teaches students about the artwork in the museum, also leading a hands-on project where students create their own art. Her favorite part of her job is watching these new, young artists bring their families to the museum and share what they have learned. “It gives students a sense of ownership of the museum,” she said. “They get to be the tour guide, and it’s their special place to show their family.” Having a gallery connected to an interactive studio makes the Plains Art Museum a
trailblazer in the museum realm, according to Andy Maus, museum director and CEO of the Plains Art Museum. “As a museum person, I’ve basically dedicated my life to understanding museums,” he says. “So for me, this is actually transformative in the sense of transforming what a museum can be. Now, it's not just a looking-andlearning space, it’s a making space.” For Maus, having a makerspace like the Center for Creativity is not just a luxury, it’s crucial to a healthy city. Artistic experiences lead to creative minds, he says, which leads to stronger leaders and a stronger community. Today, when he sees students hard at work sculpting hamburgers or painting in watercolor, he sees it as a testament to the flourishing growth of Fargo-Moorhead. “The success of the arts is the success of this community,” Maus says. “This is going to be so important to Fargo’s future.” TAKE
Read past installments from the "It Wasn't Always Like This" series at KilbourneGroup. com/News
w/ General Equipment & Supplies
“Traction: Get a Grip on Your Business” is a book originally published in 2007 by Gino Wickman that asks the question, “Do you have a grip on your business, or does your business have a grip on you?” It’s a piece of the EOS, or Entrepreneurial Operating System, puzzle. The EOS is a method that helps business owners simply and efficiently get their businesses where they envision. Implementing Traction means adding focus, discipline, and accountability to a company and making sure every employee is on the same page so as to achieve the same vision. “If every company meeting could be like that, the business world would be a much happier place.” Those were my thoughts as I exited General Equipment & Supplies’ conference room. It was 8:30 on a Monday morning, and I had been in a meeting for the last hour and a half. You're probably thinking "BORING," right? Wrong. I was invited to be a part of their weekly executive meeting to observe what implementing Traction can do for the productivity of a meeting, and, in turn, the company as a whole, and I wasn’t disappointed.
BY Kara Jeffers PHOTOS BY J. Alan Paul Photography 64
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General Equipment's journey with Traction all started in the fall of 2015 with Don Shilling,
the then-president of the company, and the local CEO group to which he was a member. After reading the book, Shilling introduced it to his son, Jon Shilling, who at the time was the incoming president. Jon read through the book and determined it had quality information, choosing portions he wanted to use in an upcoming strategy meeting, beginning the early steps of implementing Traction at General Equipment. But the journey had just begun. We sat down with both Don and Jon Shilling, as well as team members Don Kern and Ann Pollert, to discuss why a business should take on Traction and the steps to get your company where you want it to be.
Jon Shilling President
Don Shilling Chairman Former President
What's Your Favorite Part About Traction? General Equipment & Supplies President Jon Shillings' favorite part about Traction is the Level 10 meetings.
WHY DID YOU DECIDE TO USE TRACTION? Jon Shilling: In April 2016, with a couple weeks of Traction under our belts, we recognized we had a downturn in the economy and reviewed some critical business decisions that needed to be made. As a team, we initiated several business action steps and executed those steps but quickly realized that the process could have gone better if we had been using Traction longer. In May, we had a meeting in Minneapolis, where we met Justin Cox, a professional Traction facilitator. He basically presented and said, “I’m not trying to sell you on this, but I just want you to understand the idea of Traction and the process.” After sitting through that meeting, we could clearly see having a facilitator was a crucial part of implementing Traction successfully. I knew I didn't want to look back two years from now and say, "What was that Traction thing we were trying to do again?" I thought we should invest in the two-year process. The investment would be worth it to get us doing it correctly and ingrained so that we didn’t fall away or only use pieces from it. Even if you’re not going to use a facilitator, it should be followed as closely as possible for the best results. Each part is a piece of the puzzle put in the process for a reason. Don Shilling: Over the course of my career, I’ve read a lot of business books. Typically, you read the books, glean out of them what you want, get your group together, and, on a white board, launch into it and what you’re
A Level 10 meeting agenda looks like this:
• Segue (5 min)
Each person attending the meeting shares his or her personal and business "best," creating an atmosphere of community. • Scorecard (5 min) On a weekly basis, the scorecard is reviewed to make sure the company is on track. It includes anything that can be measured and is a handful of numbers that can tell you at a glance how your business is doing. If there is an issue, it drops down to the IDS portion of the meeting and isn't discussed until then. • Rock Review (5 min) Rocks are short-term goals that contribute to achieving the company's vision. Meeting attendees go around the table and let the group know if they are "on" or "off" their rock. Again, if there is an issue, drop it down to IDS. • Customer/Employee Headlines(5 min) These are quick one- or twosentence “headlines” of what is
going on with different customers and employees in the company. Issues drop down to IDS. • To Do List (5 min) These five minutes are to review the previous week's to-dos to make sure they all got done. • IDS (60 min) This stands for identify, discuss and solve. This is the issue solving portion of the meeting. Choose the top three issues and tackle those first. Start with the No. 1-rated issue, and identify the problem, discuss the solutions and solve the issue. If all three get solved, pick the next top three issues and so on. • Conclude (5 min) No matter where the meeting is at, always conclude with five minutes left. The issues list will still be there next week to tackle again. Recap the to-do list, share any messages that need to get out to the rest of the company, and lastly, go around the table and each attendee should rate the meeting one to 10. If the meeting is below an eight, the team member needs to give a reason why.
"More specifically, I like the organization of the Level 10 meeting," Jon says. "The issues list and going through it and talking about certain things at certain times—f there’s something more to talk about, it goes down into the issues list, and we don’t talk about it until we get to that area. And then we rate it based on how important the topic is. "If we have a major issue up there, we may talk about it for the entire 60 minutes of the issue-solving part of the process. We may not get to any of the other ones. They’ll just stay on that list, and we go back to them next week. That was initially my favorite part, just the structure, how organized it makes you and how focused it keeps you on the topic at hand." FARGOINC.COM
going to do. Traction is a lot more formal of a process, and I think you need to commit to the process 100 percent, and when you do, I think you get the rewards from it. WHAT WAS THE NEXT STEP? JS: One aspect of Traction is to have a company speech where you talk about your core values, why you are instilling them, why you believe in them and why everybody else who works in the office should have the same core values. It's about finding the right people and putting them in the right seats. We believe everybody who works here fits in with our core values, and now, when we hire people, we basically try to find out if they meet with all our core values as well. That just creates a company culture of people who are not the same but are like-minded, enjoy the same things, have a passion for what they are doing, care about the customers and care about the company they work for. It's been nine months or so that we've been doing this, and we've found a big change in people's attitudes toward our values. NOW THAT YOU KNOW THE BASICS, HOW DO YOU CONTINUE TO IMPLEMENT TRACTION? JS: Now it's time to really hone in on it. One
thing I’m currently implementing is putting out a quarterly video for the employees to get out in front of everyone with our core values. One of the ideas often talked about in Traction is that people don’t hear what you say to them until they’ve heard it seven times. If you don’t tell them seven times, they never heard it the first time. So we try to put things quarterly now in front of our employees so they see what we are talking about, see our core values and see other employees exemplifying those core values. DS: I think what's going to change about the management style with Traction is you're setting goals, and then you try to attain the goals. Too much in the past, we were relying on financial information that was basically historic. For example, you would say, "Our goal was to get to so many dollars of sales by the end of June," and then by the end of June when you weren't there, you didn't know what happened. With Traction, when you're looking at a goal that you've set, but you're reviewing it each week. Then, you're looking at the cause and effect of that goal. You start managing to the future rather than looking at the historic numbers of the past.
JS: That's our scorecard part of our Level 10. We set quarterly rocks, or goals, and run through those and the scorecard every week to determine if we are on target. In our scorecard, we are looking at those numbers and seeing trends. If we're seeing down trends toward certain revenue numbers we're trying, we can try to fix it now versus waiting until the end of the quarter and seeing that we didn't hit our goal. I think it allows us a better picture. It also forces us to look at the numbers every single week. Whereas, in your day-to-day, we might think, "Well, I'm too busy to look at the numbers," so you don't see any trends. We are also in the process of setting up rocks for our next level down management group, too. Everybody at some point or time should be in a Level 10 meeting of some sort, even if it's our technicians out in the shop. They may not have an hour-and-a-half Level 10 like we do. It might instead be a 15-minute tool box discussion at the start of each week so their foreman can say, "This is what I see upcoming for the week, here is what you're plan is, these are the customer's machines you're going to be working on and here is what I need to see from you."
General Equipment & Supplies
Each team member responded differently to General Equipment & Supplies implementing Traction. "There was a fair amount of resistance, and Traction talked about that so it wasn't a surprise," Jon Shilling says. "They say that over the two-year period you can have up to 30 percent turnover. It doesn't happen immediately, but over time, people realize they don't fit with the company culture and leave, which is better for both them and the company in the long run." These are the views of two team members, one with concerns and the other on board from the get-go, and how their opinions have changed or solidified over time.
MISSION Their mission is to provide their customers the highest quality construction and aggregate equipment available and to protect their investment in them by employing the best people, expertise and technology in the industry.
CORE VALUES DO THE RIGHT THING With all team members, business partners, customers, vendors and communities HAVE PASSION Always, in everything we do BE INNOVATIVE Bring ideas, challenge the status quo and think creatively WORK HARD Put in the time required to get their work done, on time and right
Q Don Kern Vice President of Aggregate Equipment Sales for the U.S. and Canada
VIEW OF TRACTION Initial reaction Against implementing Traction Current thoughts "I decided it would be good for me because it would help me hold myself accountable to get tasks done."
WHAT WERE YOUR INITIAL RESERVATIONS? Don Kern: When you have a manager tell you what they think is best for you, coming up with some new idea, saying, "Okay, we're going to do this now," but then never following through, it's very frustrating. You're told to do it, but there is nothing concrete to go by. Traction first came across that way to me. WHAT CHANGED YOUR MIND? Kern: Once I started learning and reading about it, my opinion changed. I read the book after the initial meeting we had, and
Don Kern (cont'd)
then we had our first meeting with Justin Cox, a Traction facilitator. After that meeting, I started understanding it. That's when I decided for myself that it would be good for me because it would help me hold myself accountable to get tasks done. It's fairly simple and easy to grasp so it makes it easier to buy into. WHAT ARE SOME BENEFITS AND DIFFICULTIES OF TRACTION? Kern: If you're going to do something, then follow through with it. It's difficult at first because you need to look hard and critically within yourself and your organization. A major benefit is that every week is the same during our meetings. Nothing is a surprise, which is something that's always bothered me. Every week we come to the meetings and start off with our personal and business best from the previous week. It gets everybody feeling more relaxed and opens up the line of communication between people in the organization. We never really knew how to efficiently share ideas before, and now we have a method for doing that. It also has helped us redefine our existing core values. We've always had the values we've had, but they were embedded within "wordy" language. Now, they are easy to understand. HOW DO YOU THINK THE WORK ATMOSPHERE HAS CHANGED? Kern: When you're running a business of this size, it's difficult because you can't be the one person who's doing everything and calling all of the shots. You have to empower people to take ownership of their positions, making the best calls they can and taking care of the customers. With Traction, employees are given the freedom to make decisions based on our core values. If this is happening, no one is going to come down hard on you because you are doing what is best for the company and the customer. I think people feel more comfortable in their day-today and are able to take ownership of the business themselves.
Justin Cox is a third-generation entrepreneur. Growing up, the family business was often a topic at the dinner table, and he knew from an early age that he wanted to be an entrepreneur. Cox has been fortunate to spend more than 10 years starting and building companies in the Twin Cities. HOW HAS GENERAL EQUIPMENT DONE WITH IMPLEMENTING TRACTION, AND WHY DOES IT BRING VALUE TO THE COMPANY? Cox: When I first met the team at General Equipment, I was excited about the potential that Traction could have on their business. They had a proven track record of success, but the leadership team believed the business was capable of accomplishing more. They were committed to putting in the hard work to take the business to the next level. What makes Traction and the Entrepreneurial Operation System (EOS) unique is a simple, common-sense approach to help leadership teams at privately held companies accomplish three things: vision, traction and healthy. • Vision: Getting everyone in the organization on the same page and rowing in the same direction. • Traction: Creating a culture of discipline and accountability where everyone is clear on how they contribute to making the vision a reality • Healthy: Developing a cohesive, functional team in an environment where everyone genuinely enjoys coming to work every day As I reflect on my time working with the team, one thing they recognized early on was that the best way to achieve the vision they had for the company was with the help of the great people throughout the organization. EOS puts a lot of emphasis on culture and the core values of employees, and that clicked with the team early in the process. The
AUGUST 2017 | FARGOINC.COM
best strategies, plans and processes aren't worth the paper they are written on without a great team to implement them. The leadership team at General Equipment is dedicated to building a world-class team from top to bottom in the organization, and I think that shows in their success. HIS ROLE WITH GENERAL EQUIPMENT: "Justin lays out the typical Traction layout and helps us set our goal because there is a different process you walk through during each quarterly meeting," General Equipment & Supplies President Jon Shilling says. "He sits back and lets us determine what those issues are, and then we attack those issues with him acting as a third party to say, 'You're getting off task.' "Justin always says it's a two-year process, and his job is to work himself out of a job. He is preparing us to be able to run this and do this Traction process all on our own and continue to have the quarterly meetings like we have with him but with our management group. "I'm a little nervous for when that day comes, but I'm also excited to see what two years down the road looks like for us. How good have we gotten? Are we confident? Do we run it just as well without him there to tell us how? I'm excited to be at that point where we all as a management group understand how all of the Traction processes run and we can do it all on our own. "Justin's talked about how two years down the road, your company culture and core values will really be exemplified and people within the company will all be the same. I'm excited to see what that will look like, and I thank Justin for helping us get there."
"As a founder, don't get whiplash from too much advice. Pick the thing that works for you and your situation, and go with that." WADE FOSTER Cofounder & CEO, Zapier
Justin Cox General Equipment & Supplies' Traction Facilitator
Q Ann Pollert Technician & Career Developer
VIEW OF TRACTION Initial reaction For implementing Traction Current thoughts "I think Traction helps us to efficiently transition our ways of communicating, engaging and involving all of the employees."
WHAT WAS YOUR EXPERIENCE BEFORE TRACTION? Ann Pollert: My experience was a little disorganized and lacking communication, especially going down from the top to the bottom levels, getting to all of the individuals who should be aware of the information. WHAT ABOUT TRACTION MADE YOU EXCITED TO JUMP IN? Pollert: I was excited because of the accountability. You're following a process and have something that everybody is doing. I think General Equipment is a phenomenal company, but you get set in your ways. They did things the way they had always done them instead of realizing changes in the culture and the workforce. I think Traction helps us to efficiently transition our ways of communicating, engaging and involving all of the employees. WHAT DO YOU LIKE MOST ABOUT TRACTION? Pollert: I have noticed a change in communication. Everyone is getting together and having meetings. I'm included in a Level 10 meeting, and I get so much out of it. Everything is saved until that Monday meeting, and it's a more efficient way of communicating. HOW DO YOU THINK THE ATMOSPHERE HAS CHANGED? Pollert: I think it's more positive. When you know what's going on, when you hear things, you have more confidence in your role. You know how decisions are made and you are involved in the discussion. You're able to come forward if you have issues or points of discussion.
Attending the Level 10 meeting at General Equipment completely changed my view of how a company can run effectively and practically. Strong communication was constant, tangents weren't a part of the conversation and the team members in attendance seemed closer than ever, getting down to business but also saying, "congratulations" or "good job" when applicable. Soon after the meeting, I even read the book and now have a different perception of every past management style I've ever worked under. Maybe you don't think Traction is worth the time, but what if it is? My experience tells me it's worth a shot! TAKE
General Equipment & Supplies GenEquip.com
Entrepreneurial Operating System for Small Businesses EOSWorldWide.com
SHAQ FACTS A "Voices of Vision" Primer
ast month, we announced some big news. In case you haven’t heard, it’s that our 2017 Voices of Vision speaker is Shaquille O’Neal.
If you're not familiar, Voices of Vision is an annual Chamber event that brings nationally known thought leaders to the community. It brings together people of all walks of life to hear from others with incredible stories. Previous speakers have included: • Lt. Col. Oliver North • Famed Watergate journalist Bob Woodward • Former NFL quarterback Joe Theismann • Former Florida Governor and presidential candidate Jeb Bush • NFL Hall of Famer Terry Bradshaw • Former New York City Mayor Rudy Giuliani Last year, we featured Robert O’Neill, a SEAL Team Six leader responsible for taking out Osama bin Laden. These are some big shoes to fill, but we’re pretty sure Shaq’s size 23 feet can do just that. Of course, you know Shaq mostly for his accomplishments in the NBA. He’s a four-time NBA Champion, 15-time All Star and three-time Finals MVP. He played for 20 years with six teams and was named one of the most influential athletes by Forbes. When we started learning more about his business accomplishments, though, that’s when we were really impressed.
By FMWF Chamber of Commerce Photos courtesy of FMWF Chamber of Commerce
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And that’s the reason Shaq is headlining our event. It’s not just because he’s an accomplished sports star. His list of achievements as an entrepreneur, philanthropist, investor and family man are truly impressive. In fact, there are so many that we could take up pages of this magazine sharing everything. For now, though, here are a few things you might not know.
1 After a nearly 20-year career as an NBA player, Shaq is now an analyst for TNT’s Inside the NBA. 2 Today, he's worth more than $350 million and with all his investments, stands to make more than he did playing in the NBA. 3 Shaq owns more than 150 Five Guys franchises. That’s more than 10 percent of all locations! He also owns more than 15 Auntie Anne’s pretzel stands across the country as well. 4 Many of Shaq’s $20 million in endorsement deals revolve around his favorite foods: Fruity Pebbles, Muscle Milk, Vitamin Water and Arizona Cream Soda are just a few companies and products with which he's signed. 5 He also invests in fitness ventures. Shaq owns 40 24-Hour Fitness locations. 6 Shaq invested in Google before the company even went public.
An honorary U.S. Deputy Marshal and a reserve police officer with several states’ departments, Shaq is an honorary sheriff’s deputy in Clayton County, Georgia, and is even rumored to be considering a run for sheriff by 2020. 7
"His list of achievements as an entrepreneur, philanthropist, investor and family man are truly impressive." 8 Shaq dabbles in real estate, too. In 2006, he created The O’Neal Group, where his first investment was The Met Miami high rise. He also is part owner of several nightclubs in Las Vegas. 9 You've probably seen Shaq’s commercials for The General auto insurance, but it’s because he actually insured his Ford Bronco through The General in his college days. He was a happy customer, then, and still is today. 10 Not only can you get car insurance with Shaq’s seal of approval, but you can get that same car washed! Shaq owns 150 car washes, too.
15 Shaq says his grandmother, Odessa, was his role model. Years later, he gives back by partnering with the Boys & Girls Club, and he advocates for mentoring and encourages kids to stay in school. 16 Recently, he announced a new company called Shaquille O’Meals to invest in food franchises. 17 Shaq recently bought a Krispy Kreme location and has been named a spokesperson for the brand, but he says he’d like to expand his ownership to 100 of the popular doughnut chains. 18 In a move he considers one of the great financial mistakes of his life, Shaq reportedly turned down an offer from Howard Schultz to partner with Starbucks simply because he believed that "black people don’t drink coffee.” His investment philosophy is simple, though: He partners with brands he personally likes and uses.
FMWF Chamber of Commerce President & CEO Craig Whitney with a life-size cardboard cutout of Shaq
11 While in the NBA, Shaq went back to school to complete his bachelor’s degree, followed by his MBA and finally his doctorate.
Shaq wrote his own autobiography titled "Shaq Talks Back." 12
13 Off the court, Shaq is a media personality. He’s starred in movies, TV shows, has several rap albums and a video game, and hosts a podcast.
Shaq is social-media savvy. He was the first celebrity to have a verified Twitter account! He also announced his NBA retirement via Tout, a social media app that allows users to tape 15-second video statuses. 14
19 After joining the NBA at age 20, Shaq spent his first $1 million in less than an hour. After receiving advice to not become another broke player after retirement, he began taking his money more seriously, which has led to his savvy business skills now. 20 I have no doubt that Shaq will wow our crowd. I hope you’ll join me in hearing his message at Voices of Vision. Floor seats are already sold out, but we still have arena seating available. Don’t drop the ball!
To register, visit FMWFChamber.com or call 218-233-1100
"Consider what your current behavior says about your thoughts on leadership and development when you're trying to develop another." KELLY CHARBONNEAU Leadership & Succession Specialist, Sanford Health FARGOINC.COM
Name That #2
AUGUST 2017 | FARGOINC.COM
Can you recognize the specifi c features of these FM offices?
#7 #7 Hjemkomst Center 202 1st Ave. N, Moorhead #6 Multiband Tower 2000 44th St. S, Fargo #5 Meadowlark Building 503 7th St. N, Fargo #4 Loretta Building 210 Broadway N, Fargo #3 Office Sign Company 310 NP Ave. N, Fargo #2 F-M Visitors Center 2001 44th St. S, Fargo #1 Black Building 118 Broadway N, Fargo ANSWERS
Unique office spaces fill the Fargo-Moorhead area, giving the community a mix of renovated and modern structures, stirring up conversation among residents and visitors alike, and inviting people through the doors of many loc al businesses.
Managing Director United Capital of Fargo
How to Get High Marks When Financing a Higher Education By Paul Jarvis Portrait by Paul Flessland
AUGUST 2017 | FARGOINC.COM
tudents and families around the country are celebrating but also in planning mode as collegeacceptance letters continue to roll in. And for good reason. A higher education is one of the most important credentials in obtaining employment in todayâ€™s labor market. As the average cost of a college education has swelled over the last decade, though, there's a natural anxiety that accompanies the steep price tag. Paying for it has even
As the average cost of a college education has swelled over the last decade, though, there's a natural anxiety that accompanies the steep price tag. • Colleges and Universities Many
become a family affair. A Consumer Financial Protection Bureau (CFPB) report released earlier this year revealed that it's actually older Americans who account for the fastest-growing segment of studentloan borrowers. A student’s education choice will be one of the most important choices in his or her life—not only for a career but also in terms of how much debt will be required to finance that schooling. Parents and students need to give clear thought to future job choices and how that job translates into income to pay off student loans. Here are some tips to help you make the grade when affording a college education.
• Federal- and State-government
Options The federal Department of Education awards about $150 billion a year to more than 15 million students in the form of federal grants, student loans and work-study programs. And your home state offers various types of financial aid. You might be eligible, even if you’re not eligible for federal aid.
colleges and universities provide financial aid and scholarships from their own endowment funds. There may be opportunities for a particular field of study so be sure to check in with the various institutions where your child has been accepted.
• Financial Aid You've probably completed a FAFSA (Free Application for Federal Student Aid), but just in case you haven't done so, get cracking. According to NextGenVest.com, a company that helps students manage the college-selection and financial-aid processes, more than $2.5 billion in federal aid is left unclaimed by students who don’t fill out the FAFSA.
• Scholarships Individual colleges, as well as private funders, award scholarships in recognition of academic performance, athletic excellence, a commitment to community service and other unique talents.
• Savings 529 (qualified tuition) plans,
Coverdell Education Savings Accounts, UTMA (Uniform Transfer to Minors Act)/ UGMA (Uniform Gift to Minors), savings bonds, investment accounts, the list goes on and on. If you were fortunate enough to be able to sock away money for your child or grandchild, it’s time to milk the cow.
• Loan-repayment and Loan-
forgiveness Programs A great opportunity exists with programs such as the Public Service Loan Forgiveness (PSLF) program, but do your research. President Trump’s budget proposal targets loan-forgiveness programs such as this one so if you go down the path of utilizing the PSLF program, also establish a contingency fund. The contingency fund is money set aside and invested for growth to allow you to have backup funds to aid in paying off your loans in the event that the forgiveness program is eliminated.
The bottom line is that there are many ways to fund higher education without taking on enormous financial burdens. To determine the best way to finance a college education, consult a Certified Financial Planner who can help you tailor a plan specific to your needs and budget. TAKE
United Capital Fargo UnitedCp.com/ND1
OFFICE VIB E S
One of Fargo's Hottest Startups Moves Downtown $100,000. Cooper Bierscheid couldn't believe what he was hearing when one of his professors told him what it was going to cost to outfit his grand nephewâ€”who was born missing both arms above the elbowâ€”for a pair of prosthetic arms. Bierscheid, who was an undergraduate in the NDSU College of Engineering at the time and looking for a senior design project, knew he could do better. So in 2015, after turning down a dream job at 3M in the Twin Cities, he founded Protosthetics, a Fargo-based company that uses 3D printing to create ultra-durable, low-cost prosthetics and orthotics. He later enlisted serial entrepreneur Josh Teigen to help take the company to the next level, and after a year and a half in Barnesville, Minnesota, in May of this year, Protosthetics moved into a new space on Fourth Street in Downtown Fargo. Teigen gave us a tour of their new(ish) digs.
PHOTOS BY Paul Flessland & Hillary Ehlen and courtesy of Protosthetics 78
AUGUST 2017 | FARGOINC.COM
President, Chief Visionary & CFO Protosthetics TAKE
Protosthetics Protosthetics.com 617 4th St. N, Fargo
The building, which sits kittycorner to Sanford Medical Center in Downtown Fargo, is owned by commercial developer Kilbourne Group and is slated to be demolished in a couple years time. If that happens, Protosthetics will be looking for a new home sooner than later, but Teigen's okay with it. "It's a medium-term solution for us," he says. "Hopefully we can stay longer, but we'll see."
The space used to house Welu Dental Laboratory, a leading manufacturer of dental crowns and gold teeth. The company stored a large amount of gold on site, which was housed in a two-stage vault that held a variety of precious metals. "We actually cracked the safe," Teigen says. "Now we say it's the intern office."
When you think of a high-tech startup that creates artificial limbs with 3D printers, you probably don't picture their headquarters in a small, rural town. That's exactly where they got their start, though, initially leasing a space in Barnesville, Minnesota. "There are only so many facilities in Barnesville," Teigen says. "So when we were looking for more space, we came and toured a couple different spots in Fargo. Being here is ideal for recruiting talent and finding workers. "After we toured this building, we said, you know, we don't really need a super high-end space. We're a manufacturing company, don't have a lot of foot traffic and don't really have any visitors. We toured this, and it had plenty of space and was kind of perfect for us from a layout standpoint."
Early on, when Protosthetics was trying to figure out exactly which segment of the market to focus on, they went around and talked to doctors to find out what they were seeing the greatest need for.
As if you needed another reason to get involved in the entrepreneurial ecosystem in Fargo, Teigen and Bierscheid were actually introduced to one another by John Machacek, the senior vice president of finance and entrepreneurial development at the Greater Fargo Moorhead Economic Development Corporation and an active member of the area startup community.
"When we talked to them, they told us that they see one upperextremity patient per year," recalls Teigen, who adds that Protosthetics was initially focused on an upper-extremity product. "They told us that the No. 1 request they get is actually for a leg that patients can wear in the shower or a pool or just water wherever. With traditional prosthetics, you can't wear your primary leg anywhere that can get wet or dirty." What they came up with was their flagship product, the Amphibian, which is a below-knee device that works for both daily and recreational activities. They've even built custom versions for a professional snowmobiler and a scuba diver.
Entrepreneur of the Year
In May of this year, Teigen was awarded the FMWF Chamber of Commerce's "Entrepreneur of the Year" award for his work not only with Protosthetics but numerous other businesses he's founded. Teigen is also active with the Chamber's Young Entrepreneurs Academy (YEA!) as an advisor.
While no one's ever going to confuse it for the Ritz-Carlton, Teigen says they've made huge strides with the space since they took it over a few months ago.
"Showing up and being present each and every day at work will get you further in the workplace than anything else." NATALIE MURCH HR Manager, First State Bank of North Dakota FARGOINC.COM
What's the BHAG (Big Hairy Audacious Goal)?
"I would love to build a world-class company here in Fargo," says Teigen, adding that he hopes this is the last job he ever has. "We have some investors so we obviously have a duty to them to deliver shareholder value, but I think that can be done in multiple different ways, whether it's an acquisition someday or whether it's just building a big-growth company. But the goal is to always be headquartered here in Fargo."
Instead of purchasing and using existing machines, Protosthetics custom-builds their own 3D printers to the exact specifications and functions they need. "If you think about one of our sockets, with the machines you buy off the shelf, there’s no way it would fit," Teigen says. "Also, this pair of foot orthotics printing right now is probably 10 times faster, has a bigger build volume and the parts that come off it are probably 10 times stronger. "The ability to design and build them ourselves allows us to design and build them specifically to the needs and requirements of orthotics and prosthetics. A lot of the machines you can buy off the shelf are really good for a lot of different purposes. Our machines are way better for our specific use."
These big, blue boxes are essentially houses for 3D printers. "They allow us to regulate humidity, temperature and a bunch of different things," Teigen says. "It helps from a quality standpoint and gives us a little more control over the environment, which is nice." The eventual goal, he says, is to create a same-day turnaround for prosthetics and orthotics patients. "Right now, with other suppliers, the turnaround is weeks," Teigen explains. "Right now, you have patients coming from out of town—Valley City (North Dakota), for example—driving here for an appointment and then driving back. What we could do is: They'd come in the morning, we would build the prosthetic throughout the day and they'd come pick it up at the end of the day. That's a huge value-add for the clinic, the patient, everyone." There are only a handful right now, but there will eventually be a "printer farm" of 32 "Tallboys" that will fill much of the office's main space.
What a Same-day Prosthetic Process Would Look Like • • •
AUGUST 2017 | FARGOINC.COM
Scan: 15 minutes File clean-up: 15-20 minutes 3D printing: 5-6 hours
What They Make • • • • • •
Casting socks Foam impression boxes Plaster casts Print molds for casting custom liners Definitive sockets Check sockets
"Before I forget, there's a story behind why we have a giant, fourfoot rabbit in the office," Teigen says. "We play ping-pong and foosball and have power rankings. The way it works is that you can challenge the person above you, and you can only challenge one above you. "To challenge, you set this giant rabbit on their desk, and they have 15 minutes to accept the challenge. You get one challenge per week in ping pong and one in foosball. You work your way up."
By the Numbers
9 current size of Protosthetics staff
9,000 approximate squarefootage of building
90% Teigen says that when he goes to trade shows, he'll take the sockets and stand on them, sometimes even jumping up and down. "It's how we show off the durability of them," he says. 84
AUGUST 2017 | FARGOINC.COM
amputations that come from vascular disease or diabetes, as opposed to trauma or missing limbs from birth
"This is something that can only be done using 3D printing," Teigen explains. "You can visually see different areas of pressure in the socket by how much skin is poking through. And the reason we use the diamond shape is that printers can print to a 45-degree angle without any support materials. Per clinic, we do probably one of these per week."
32 total number of "Tallboy" enclosures they'll eventually build
7 ft. Height of "Tallboys"
$20,000 $100,000 Typical cost range of lower-extremity prosthetics
15 the number of minutes team members have to accept a ping-pong or foosball challenge
The Amphibian uses the Boa system, which is more or less a dial-based, ultra-durable shoelace system. "You can kind of just clamp the leg in for more of an adjustable fit," Teigen explains. "So when youâ€™re in the shower and need to rinse the residual limb, you just pop the button, pop it out of the socket and then just pop your leg back in. It's kind of like infinite adjustability." FARGOINC.COM
Intentionality Sometimes, the best ideas happen by chance.
How Does the
Hint: It's Collaboration
By Steve Dusek • Portrait By Paul Flessland
AUGUST 2017 | FARGOINC.COM
Have you ever had a discussion with a customer that gave you an idea for a marketing or sales campaign? Have you ever received a suggestion from your employees regarding improving a process or procedure that saved the company money? These are all examples of happenstance encounters. What if you were more intentional about creating these opportunities, though? In our world, collaboration happens daily. How do we help a small business secure the financing they need to be successful? Who are the key players needed to pull the deal together? What additional resources does the business need to accomplish their goal? These are questions we're always asking ourselves and our partners.
hey say two heads are better than one. When multiple minds come together with a willingness to contribute, are actively engaged, and share a common purpose, amazing things happen. Nowadays, we like to call it "collaboration." In my last column, we talked about the relationships that are critical to the success of your business. Individually, these relationships comprise a plethora of information and experience, but what happens when you bring them together in an effort to make something better, solve a problem or create something new?
Have you ever had a chance encounter with a stranger that spurred an idea for a new product or service?
President & CEO Dakota Certified Development Corporation (Dakota CDC)
When we hear that something "can't be done," that’s when we really dig in and try to find a different way. Rather than “it can’t,” we explore how it can. And collaboration is the magic word that makes the impossible possible.
"With trust, an open mind, and strong communication, the power of collaboration is undeniable." Trust the Process Unfortunately, we can’t just wave a magic wand and expect everyone to work together and thrive. Collaboration can't be forced. It takes a great amount of voluntary effort to get a group of individuals—usually cross-functional—to come together, but the rewards that stem from it are far greater than any extra work that's put into it. With everyone on board, you'll see that the relationships formed complement each other in a unique way and create an easier and better understanding of how a dream can turn into reality—while forming a strong network along the way. They say a magician never reveals his tricks, but luckily, the keys to collaboration have already been unlocked. By demonstrating the tools necessary for fostering collaboration—trust, open-mindedness and
communication—you'll be able to see direct results throughout the process. Imagine the possibilities that could stem from a team that works together with each member pulling their own weight. By trusting each other, not only will you build a strong support system, but you can rely on the strengths of each member to better the result. In addition, listening with an open mind that's flexible and ready to adapt to each member's perspective and ideas, you'll be able to come up with a more effective and efficient method of getting the job done. Part of "making the magic happen" involves realizing that everyone brings a different set of unique talents and ideas to the table and remembering that just because they may do things differently does not mean they're doing them incorrectly. By embracing these differences instead, you
leave room for creativity and show a deeper sense of trust. Collaboration is all about how you look at things, and you never know the tricks someone else may have up their sleeve. Communication is the most important key to working as a team, and it can allow for greater mobility between all the members. With this as a priority, you'll be able to better understand your customers, the task at hand and the best way to accomplish your goal. A team of individuals working harmoniously toward a shared common goal simply can’t be stopped. When you are trying to create something new, bigger, or better or are trying to solve a challenge, remember that magic word: collaboration. With trust, an open mind, and strong communication, the power of collaboration is undeniable. Collaboration is how the magic happens. I dare you to give it a try!
Dakota Certified Development Corporation (Dakota CDC) DakotaCDC.com
EVERY WEDNESDAY 1 Million Cups
Every Wednesday, 9:15 - 10:15 a.m.
Join the vibrant entrepreneurial community of FargoMoorhead and Emerging Prairie by participating in an event filled with guest speakers, tons of coffee, ideas and excellent networking opportunities. Event is free. 1MillionCups.com/Fargo The Stage at Island Park 333 4th St. S, Fargo
AUGUST 9 Preparing for the Active Shooter
Wednesday, August 9, 11:30 a.m. - 1 p.m.
The thought of an active shooter in our business or on our campus strikes fear. What motivates the shooter? How do we respond? Moorhead Police Department Lt. Chris Carey will deliver a presentation on the history of active shooters and the lessons we've learned from past events. What should you expect as a response from the police? Knowing the five stages of an active shooter can assist in prevention. Is your business or campus attentive to employee behavior and doing everything they can to prevent being a target? Do you know how to “harden a target"? Knowing when to run, hide or
AUGUST 2017 | FARGOINC.COM
AUGUST 1 & 10 fight should be a part of every employer’s plan. This training qualifies for two CPE credits for the ND CPA Society.
Meet & Greet Your City Leaders Tuesday, August 1, 7 p.m. Thursday, August 10, 3 p.m.
Registration (includes lunch) • $27 Chamber members, in advance • $32 Chamber members, at the door • $40 Non-members, in advance • $45 Non-members, at the door
Get to know the people who are part of the City of Fargo. The city is hosting four meet-and-greet events to showcase some of the city’s departments and upcoming projects. These sessions will be informal, and light refreshments will be served.
FMWFChamber.com Courtyard by Marriott Fargo-Moorhead 1080 28th Ave. S, Moorhead
FargoND.gov/News-Events/Calendar Fargo Public Library 102 3rd St. N, Fargo
AUGUST 16 #StateofTech17
The State of Technology Wednesday, August 16, 1 - 5 p.m.
Join us for another exciting event highlighting the amazing innovations coming from our community and state. The State of Technology will expose attendees to talks from the brightest individuals and some of the advancements that you haven’t even heard about yet. The FMWF Chamber is thrilled to once again partner with U.S. Sen. John Hoeven to bring you an event you won’t want to miss. Event Emcee • Sandi Piatz Microsoft Fargo Campus Site Leader & Director
Registration • $35 Chamber members • $50 Non-members FMWFChamber.com Sanctuary Events Center 670 4th Ave. N, Fargo
U.S. Sen. John Hoeven
Presenters • Doug Burgum North Dakota Governor • Betty Gronneberg uCodeGirl Founder & Executive Director • Brian Kalk Energy & Environmental Research Center Energy Systems Development Director—speaking on the Allam Cycle and Project Tundra • CoSchedule Fastest-growing startup in North Dakota • Dr. Kelly Rusch NDSU VP for Research & Creative Activity • Seth Arndorfer Dakota Carrier Network CEO, who will have an exciting announcement • NDSU Innovation Challenge winners
AUGUST 16 The100 presents Flow Crisis: Don't Become a Statistic
Wednesday, August 16, 11:30 a.m. - 1:30 p.m.
Monthly leadership seminars and workshops hosted by the members of the100, a North Dakota nonprofit business initiative focused on business solutions, shared experiences, executive ideas and community support.
Expert Panel • Neil Blanchard President - Profit Pros • Steve Dusek CEO - Dakota Certified Development Corporation (Dakota CDC) • Judy Gartner C.L.U., Ch.F.C. - Gartner Financial Network The100.work Avalon Events Center 2525 9th Ave. S, Fargo
AUGUST 17 Business After Hours
Thursday, August 17, 4:30 - 6:30 p.m.
Business After Hours continues to set records as the region’s largest networking event. Booth space is often sold out, and attendees can connect with their peers and exhibitors ranging from cell phone companies to financial institutions and more. Join the FMWF Chamber for a great time over apps, networking and fun! See who is currently exhibiting. Interested in having a booth? See booth form. For additional questions, please contact Bobbi Jo Rehder at 218-359-0525 or BRehder@FMWFChamber.com Be the Social Superstar! Bring your top Twitter, Instagram and Facebook games because they'll be on the lookout for their favorite post from the event. Just post using #FMWFBAH at the event to be in the running for Social Superstar. The chosen post will be featured in The Bridge and online and gets exclusive bragging rights. Registration (includes appetizers and two drink tickets) Business After Hours is a members-only event, and participants must be 21 years of age or older to attend. • $25 If you register prior to midnight the Wednesday before the event • $35 All registrations received after that time and at the door FMWFChamber.com Holiday Inn Fargo 3803 13th Ave. S, Fargo
DOWN THE ROAD
Co.Starters Fall Class
United Way School Supply Drive Distribution
September 20 - November 15
Prairie Den 122 1/2 N. Broadway Drive, Fargo Folkways.co/Costarters
Distribution #1: Saturday, August 5, 8 a.m. - 11:30 p.m. Distribution #2: Tuesday, August 8, 4 - 7 p.m.
In need of supplies? United Way can help. Registration forms will be available in the summer and as well as at the FARGODOME on distribution days.
Location TBD CartSummit.com
United Way Day of Caring Thursday, October 12
Each child must have a completed registration form and a form of ID to receive a backpack & supplies.
A form of ID can be any of the following: • Social Security card • Passport • Report card with child's name from 201718 school year • Birth certificate • School ID
MONTHLY BUSINESS MEETUPS* • Bitcoin Meetup • Cass-Clay Subcontractor Sales
Fargodome.com/event-calendar FargoDome 1800 N. University Drive, Fargo
AUGUST 22 Serving with Confidence: Making an Impact on a Board or in Public Service Tuesday, August 22, 3:30 - 5 p.m.
Gender diversity is good for all, especially when it comes to leadership positions for women in corporate America. Whether on a board of directors or in a public service role, women bring value to the table and to their companies and communities. But how can women add substantial value and not just be the token woman for a checklist? Here, panelists will discuss how you can step up and serve confidently. They'll discuss how to find opportunities in our own community, how to break into these roles and how to effect positive change once you’re there.
& Marketing Meetup
The expert panel is composed of local women who have served on boards and who will share their stories and offer attendees a look inside their roles. The panel will be moderated by American Crystal Sugar VP of Administration Lisa Borgen. Please consider bringing books to donate to the Jeremiah Program. Registration • $25 Chamber members, in advance • $30 Chamber members, at the door • $35 Non-members, in advance • $40 Non-members, at the door FMWFChamber.com Sanctuary Events Center 670 4th Ave. N, Fargo
• Geek Meet FM • Girl Develop It • Fargo 3D Printing Meetup • Fargo Cashflow Game Night • Fargo Entrepreneurship Meetup • Fargo Virtual Reality Meetup • Fargo-Moorhead Content Strategy
• The Fargo-Moorhead Real Estate Investing Meetup
• Master Networks – Fargo Business Referral Group
• Mobile Meetup Fargo • Moorhead Entrepreneurship Meetup
• Prairie Dawg Drupal • Red River Valley Big Data –
Midwest Big Data Hub Meetup
• YMCA Brighter Futures *All meetups above (except Bitcoin Meetup) can be found at Meetup.com/Cities/US/58102. If interested in the Bitcoin Meetup, please contact ALarson@MyriadMobile.com
If you're one of SCHEELS' more than 6,000 employees, you're not likely to forget the sporting-goods giant's core values—they all begin with...
Published on Jul 31, 2017
If you're one of SCHEELS' more than 6,000 employees, you're not likely to forget the sporting-goods giant's core values—they all begin with...