Thu, May 30, 2024 11:00 AM – 12:00 PM EDT
Join Julie Christiansen, a registered psychotherapist, executive coach, and President & CEO of Leverage U as she discusses ways to respond to workplace conflict. HR professionals will learn the realities of workplace anger and conflict, signs of anger in the workplace, and reasons why anger occurs at work. Julie will address HR competencies including ethical practice, inclusive and transformational leadership, coaching and motivation, interpersonal skills such as relationship management and communication, and global/cultural effectiveness. The webinar will also speak briefly about issues regarding critical evaluation as it relates to relationship building and maintenance within organizations.
Nomination Deadline June 1st, 2024!
The MVP Awards recognize individuals who have made significant contributions to their businesses, their communities, and the state of Michigan. They are the innovators, the entrepreneurs, and the change-makers who are driving Michigan’s economic growth.
Sports teams and the arts have cheerleaders to inspire them to do good or better. Businesses, educators, labor unions and all people of Michigan should also be cheerleaders and keep a positive and upbeat attitude.
One of the best-selling books of all time was titled, “The Power of Positive Thinking” by Norman Vincent Peale, who was an ordained minister. He celebrated the success of ordinary people to relate his inspirational stories.
But the last few years have been difficult for Michigan businesses. Back in September 2005, a poll released at a Future Forum conference in Traverse City found that 69 percent of executives surveyed thought Michigan’s business climate was going in the wrong direction, and 67 percent thought things in Michigan overall were on the wrong track. Also the same year, a national poll found that Michigan was dead last in the rankings of current business conditions (net negative 2), those who see business conditions improving (net negative 9 percent), those who said sales are good (net 20 percent) and those who reported profits were good (net 4 percent).
During our current trying economic times, we need to be more positive than ever. We should all think more positive, work more positive and not be so negative -all the time - especially during the present struggling economy, and issues like health care, mass transportation, increased gas prices and our educational system.
It seems that many people today prefer to play the Blame Game. People want to blame anybody or everybody for all that is wrong. Admittedly there is a lot of sad or bad news out there, but this is the time for all of us to emphasize the positive to keep our spirits up. Let’s all work together to improve our businesses, our jobs, our educational system, our health and our attitude.
Businesses would be extremely happy to get rid of the unfair surcharge on the Michigan Business Tax so they can make a decent profit and survive, and our entire state would be happy to see alternative energy and fuels developed to help reduce the price of gas, food and other items - and in doing so, perhaps create jobs here.
All of us need to work together like a football team or a symphony orchestra, so we can cheer everyone on to better things and better times. To get the best results we need more cheerleaders.
Kathy and Rick Wagoner with Cristy Miles. Photo by Pat Chapman
The 16-year-old girl in the corporate office seems both at home and out of place. While those around her are wearing business attire, she sports a uniform equally businesslike - a white blouse, striped tie, dark jacket and gray skirt. Her eyes are bright and intelligent. A couple gathers around her for a photo. They are smiling and at ease. The executive is tall and determined-looking, yet friendly. His wife wears a gray jacket with a scarf tied loosely around her neck, and smiles affectionately at the teen.
They are not a family in the traditional sense of the word. In fact, they come from worlds so different that if not for the speech of a Detroit archbishop and a determined group of leaders, they would not be posing together for a magazine photo.
The teen, Cristy Miles, an 11th grader who lives in Detroit, aspires to be a cardiologist, at least to start; at 50 she says, she’ll switch to medical journalism. The couple determined to help make that possible: Rick and Kathy Wagoner, who a decade ago joined the Partner Program at Cornerstone Schools.
What would prompt Rick Wagoner, chairman and CEO of General Motors, and Kathy, a high school counselor at Detroit Country Day School, to connect with someone who might not otherwise visit GM’s executive suite?
Coincidence? A twist of fate? Providence? Whatever the reason, the outcome is powerful, says Cornerstone Schools CEO Clark Durant. “When any person gives, they are bringing the greatest gift - who they are as human beings and what they have been successful at and quite frankly, what they have not been successful at,” says the attorney. “These people make it possible for children to become value added players in the world.”
An Archbishop’s Vision
In October 1990, when newly installed Detroit Archbishop Adam Maida challenged the city “to make all things new” for its children, Durant wasn’t at the Economic Club of Detroit luncheon; he was busy running on the Republican ticket for the Michigan Supreme Court. But not long after the speech, a Detroit News reporter, interviewing Durant, suggested he get a copy of Maida’s remarks.
“When I read the archbishop’s vision for the school that had no name, but would break down barriers -¦my heart leapt and I knew somehow or another I would help him bring that to reality,” recalls Durant, a native of Grosse Pointe and graduate of both Tulane University and Notre Dame.
Durant, invited to a meeting of business, civic and religious leaders, ended up sitting with the late William Cunningham, co-founder of Focus: HOPE. Told it would take three years for the school to become a reality, Durant remembers the reaction. “Father Cunningham banged his fist and said ‘Three years! Kids are dying now!’ I said ‘Father I am with you.'”
Indeed, just 10 months later, Durant and a small group of leaders would turn the archbishop’s vision into reality, with Cornerstone Schools opening its first two schools in August 1991, welcoming some 165 children to a different kind of learning.
Durant, founding chairman for the next 14 years, became CEO in 2004.
Walter Czarnecki, current Cornerstone board chairman and one that has also been with the organization since the beginning, says the motivation has always been the students.
“What keeps me involved are the children,” says Czarnecki, an executive vice president with Penske Corporation who grew up on Detroit’s east side. “I see the way they are prepared academically, spiritually, intellectually and socially. I have to do what I can to help.”
Today, Cornerstone educates over 1,100 children in six schools (four campuses) in both Redford and Detroit; 95 percent of its students will go on to complete high school in a city where the graduation rate is among the lowest in the country.
An alternative to public schools, this ISO-certified institution for pre-kindergartners through the eighth grade, where every third grader learns violin, is open to children on a first-come, first-serve basis. While no child is denied because his family cannot pay full tuition (30 percent of Cornerstone families are at or below the poverty line), all families are required to pay according to their means.
Building a Network of Partners
Cornerstone’s Partner Program - a blend of fundraising, mentoring and relationship building — is the result of a friend advising Durant to “create relationships around these children where people give of themselves for others to have a better life.”
Kathy Wagoner, mother of three sons, admits to requesting a female student at Cornerstones Schools, in this case young Cristy Miles. Photo courtesy of Kathy Wagoner.
The Partner Program creates a relationship between partner and student - one that might last a student’s entire education, as it has with the Wagoners, who partnered in 1998 with first-grader Cristy Miles. Partners join their students at four Partner Mornings during the school year; partners also contribute at least $2,500 annually, important since Cornerstone receives no public financing.
Kathy Wagoner says she remembers her first Partner Morning with Cristy, then 6 years old, like it was yesterday.
“She was just this shining, smiling face. I sat down next to her and she gave me a hug. Just a delightful little girl,” says Wagoner, who has three sons and admits to requesting a match with a female student. “The impression I have of that meeting was that Cristy was well-liked and respected among her classmates and she respected herself.”
It was also a memorable moment for Miles. “I was pretty excited when I met her. Over the years I’ve gotten to love her as a second mom.”
While the Wagoners recently partnered with two first-graders, Cristy is the first CS student they partnered with, the result of a friend’s recommendation.
“A friend mentioned to me that fall (1998) that she thought we would really enjoy this type of volunteer work,” says Kathy, who earned a master’s degree from Oakland University and has been a counselor at Country Day for the last eight years. “It’s a lot more than just writing a check, or organizing a luncheon. It’s actually fostering a relationship, creating a friendship and checking in on someone on a quarterly basis.”
The relationship has grown through the years for Cristy, the first Cornerstone graduate to attend Country Day (others have since followed). “Mrs. Wagoner’s advice, ‘don’t give up’ was big, because during my eighth grade year, I didn’t know if I was going to Country Day or not based on financial difficulties.”
Kathy Wagoner remembers the encouragement. “I knew that Country Day wanted her to come and the financial situation was very tight. Then Clark Durant was able to collect enough support to contribute to her ability to come to Country Day.”
Cornerstone Board Chairman Czarnecki, who along with his wife has partnered with several students over the years, says the Partner Program is a key component of the school. “It’s allowed people to connect with these kids in a positive way.”
Rick Wagoner, too, has seen the results. “As we’ve had a chance to see the progress of the school as it’s grown and a chance to see people like Cristy grow up through the system, it’s been rewarding to see what Cornerstone’s been able to accomplish.”
He’s not alone in his view.
The Wall Street Journal, in an October 12, 2001 editorial called the Partner program “the lifeblood” of the school.
A Centennial, Hybrids and the Future
While the Cornerstone program has been a rewarding one for those who participate, Rick Wagoner still has a job to do, running one of the world’s largest corporations as it prepares to celebrate its 100th birthday on Sept. 16, 2008. As one might expect, there’s a lot on the mind of GM’s chairman and CEO.
Jackie and Ben Lee get a closer look at the Chevrolet Equinox Fuel Cell vehicle in their Burbank, Calif. neighborhood. The couple will take part in GM’s national market test – “Project Driveway” – which provides free use of Equinox Fuel Cell electric vehicle. Photo by Steve Fecht for General Motors.
Speaking about the change in market share (shrinking in the U.S.), Wagoner understands what’s at stake, yet keeps it in perspective. “I think back in 1950, 67 percent of the vehicles sold in the world were sold in the U.S.
Now, not because the U.S. has shrunk, but because the rest of the world has grown, we’ll sell 16 million out of 72 million vehicles in the U.S. So the percentage is going down,” says Wagoner, who began his GM career as an analyst in the treasurer’s office in New York in 1977.
“If we want to be competitive in the future and successful we not only need to keep doing well in this market, which is still the biggest in the world, but we need to do well around the world. Our management team needs to reflect people who understand different cultures and who can work together to take our great resources and brands and expand them most effectively and aggressively in the emerging markets.”
With gas prices soaring, Wagoner also understands the race for alternative methods to power cars and trucks is one that GM wants to win. On whether the development of the lithium-ion battery technology will make it possible for GM to introduce a 2010 model of the Chevy Volt, he is cautiously optimistic.
“We probably watch battery technology development as much as anything that’s going on inside the company today. So it’s got people cheerleading it and a lot of smart people working on it. It’s progressing and we remain optimistic, though we still need a few more breakthroughs on the batteries.”
Battery technology is not the only thing that occupies the attention of General Motors; the bigger question is what the future holds for the entire auto industry.
“I think it’s a little early to call what technology will win,” says Wagoner. “The way we’re looking at today is somewhat like the early days of the auto industry. If you go back to the late 1800s when the auto industry was formed, for a period of a decade or so, it wasn’t really clear which technology would be used to power vehicles. There were a lot of people who thought the steam engine would be the winning technology. A lot of people, including Thomas Edison, thought batteries would win.”
What did win - the internal combustion engine powered by petroleum-based fuels - is one that Wagoner says GM has succeeded at for 100 years.
“But it’s beginning to feel like it’s time for a change. So we’re opening up a range of options, which consist of making internal combustion engines better and more efficient. Hybrids help to do that. Battery-powered vehicles such as the Chevy Volt, or conceivably even fuel cells, also have received a lot of development.”
As far as Wagoner can see, total reliance on petroleum is going to give way to other sources, such as bio-fuels.
GM CEO Rick Wagoner says the auto industry will “see a lot of change over the next 20 years.” Photo by Pat Chapman
Change - something GM has faced frequently in the last 30 years - is still a watchword. “We’re going to see a lot of change over the next 20 years. The high prices of oil simply reflect the fact that demand for oil is going up because the growth of emerging countries like China and Russia has been amazing,” reflects Wagoner. “We need to get out in front of that, so it’s a particularly exciting time. We need a lot of smart people - graduates from places like Cornerstone and Country Day.”
And smart people are trying their best to keep GM at the front of the pack. One of those, Lawrence D. Burns, Ph.D., GM’s vice president of research and development and strategic planning, told the 2008 Annual U.S. Hydrogen Fuel Conference that the industry was at a critical juncture in a journey to realize the full potential of hydrogen fuel cell-electric vehicles. “While we have made impressive progress, we have now reached a point where the energy industry and governments must pick up their pace so we can continue to advance in a timely manner.”
His boss, Rick Wagoner, smiles and nods his head when the quote is read to him. “Part of the reason he was making the appeal was that he had to come to me and get the okay to spend money for refueling stations ourselves. For personal transportation, we’ve got to develop the cars and technologies, but we’ll rely on other parties to develop the infrastructure and the fuels. That’s worked pretty good, obviously with the oil companies and refueling stations that we have now. But there will need to be changes and those have seemed slow to come from our perspective.”
While Burns’ speech was chock full of convincing reasons to support hydrogen as an automotive fuel, perhaps the most compelling evidence came in May 2007, when the Chevrolet Sequel became the world’s first fuel cell vehicle to go 300 miles on a single fill-up of hydrogen.
That success led to Chevrolet’s launch of Project Driveway, the largest-ever market test of fuel cell vehicles. Burns said Project Driveway will field over 100 Chevy Equinox Fuel Cell vehicles equipped with the same fuel cell technology that powered the Sequel. Almost half of the vehicles have been built, with more than 1,500 people having driven them on public roads.
Yet the problem of fueling these vehicles remains.
“You can imagine the challenge of getting people to put in hydrogen refueling systems, which are completely different than today’s gasoline stations,” says Wagoner. “Changing our personal transportation infrastructure here is really going to be a team sport and we need government and regulators and the fuel suppliers to work closely with us.”
Yet while GM looks positively toward the future, there’s no denying that the current economy and global competition are factors. GM’s preliminary sales figures for the first quarter of 2008 showed increases across the globe - except in North America, where sales declined 10 percent compared to last year.
“We’re optimistic for the long term, but the last six months have been pretty difficult with the housing issue,” says Wagoner. “Our expectation is that hopefully the economy will continue to come back as the year progresses. We are seeing a shift away from some of the traditional truck-based products to cars and so-called crossover vehicles. That is something that is both an opportunity and a risk that we need to manage. In the meantime, we are seeing terrific growth in places like South America, Russia, India and China. So what we need to do is take full advantage of that growth to maintain our scale.”
Wagoner is also conscious of the elephant in the room - that being Toyota. While GM’s first quarter sales figures came in at about 2.25 million cars and trucks, Toyota sold 2.41 million vehicles. So how is GM doing at preventing Toyota from leaping ahead?
“It’s probably getting more coverage on the outside than it is on the inside of GM. We are trying to run our business the right way. Last year at this same time, a lot was written because Toyota passed GM in the first quarter and then by the mix of our sales we came back by the end of the year,” says Wagoner. “Our focus really is we want to grow in the emerging markets and fully participate in our traditional markets. We’ve got to do it in a way that we continue to drive profitability based on products and technology rather than just trying to beat somebody in sales. We’ll see how it plays out.”
While the challenges are great for GM and Wagoner, it seems there’s palpable excitement in the air, especially with the automaker’s centennial on the horizon.
“I do think this is a period of massive change in our business. Maybe as much as GM’s early days because of this focus around energy supply, energy security and the important role the auto plays in that.”
Corporate and Personal Benevolence
While most Michiganders know the corporate citizenship of GM - the development of the Detroit Riverfront is one example, along with supporting organizations like the Prostate Cancer Foundation and nonprofit group Autism Speaks - the Wagoners (and others including Edsel Ford II and Bob Lutz) have quietly stepped up to personally support charities like Cornerstone Schools.
“I think they do it for the same reasons we do - because everyone feels a responsibility to give back to a community which has been good to all of us. I think more importantly we are very supportive of what Cornerstone Schools has done. It’s combined the importance of education, the opportunity to give students a chance to do the best they can and it’s a system in which kids work hard and are rewarded for their achievements,” says GM’s CEO. “There are a lot of things that people can, and do, contribute to in Detroit. They’re all important, whether it’s arts or other civic activity, but probably the opportunity to contribute to education is one of the most important ones.”
For Kathy Wagoner, personal involvement with Cornerstone has meant more than just supporting education.
“I’d say that this has given me perspective to develop a relationship with a child that I would never have an opportunity to meet,” she says. “I think whatever Cristy has learned from me, I have probably learned 10 times more from her. This has been a wonderful experience.”
A cornerstone is defined as “a stone at the corner of a building uniting two intersecting walls” or “an indispensable and fundamental basis.” Perhaps there’s a commonality with Cornerstone Schools - uniting people like Rick and Kathy Wagoner and Cristy Miles with the fundamental of building a better generation.
The economy is weak and credit is tight in some sectors. Nonetheless, entrepreneurs continue to start new businesses in Michigan and many existing companies are thriving. Whether they are start-ups or long-standing businesses, they share the need for a helpful financial institution, usually a bank. “A bank is part of your work team,” says Susan Monroe, owner of Three Chairs, a home furnishing company. “Partner with them. They want you to succeed also.” Monroe began her business 12 years ago in Holland, Mich., later expanding to Ann Arbor and Indianapolis. She has used Fifth Third Bank throughout this time and has had only two commercial lending officers-rare in today’s environment of banking mergers and restructuring.
Who’s Your Banker Today?
Staff turnover is a frustration because bankers stress the importance of knowing their commercial customers. Business owners such as Randy Seaman, owner of Seaman’s Heating, Air Conditioning and Refrigeration in Grand Rapids, also want a personal relationship with a bank, but Seaman says he finds it’s “the hardest thing for a bank to do. The turnover of staff is terrible in most cases. One bank today is someone else’s bank tomorrow.” Denise Wilmarth, C.P.A., of Criss Wilmarth & Parr in Belleville, a firm with small business clients, says loan officers are seemingly more temporary in the job. “The managers stay longer.” The lesson? Business owners should get to know both their branch manager and loan officer, in case one leaves.
Large Banks Can Think Small
Staff turnover aside, prospective business owners may be skeptical about whether large banks will be interested in their companies. However, some banks’ marketing materials and Web sites promote special departments and services for small business. As Mary Kay Bean, senior communications manager for Chase Michigan, explains, “Small businesses can grow and the bank wants to grow the relationship.”
One way that banks target small businesses is through participation in the Small Business Administration lending program. SBA loans, guaranteed by the federal government, typically require less money down with longer paybacks than conventional loans.
Providing free or low-cost business expertise is another way that banks reach out to small business. Some lenders, such as Chase, Comerica, Fifth Third and Huntington, offer special online resources for small businesses-information about business management and tools for assessing financial needs. Comerica has been offering “Managing Your Business” workshops, available for a modest fee to customers and non-customers, for almost two decades. Topics range from “Hiring and Retaining Topnotch Talent” to “Cash Flow Analysis and Forecasting.”
While these “add-ons” may have some value, they’re not the reason most business owners choose a bank. Some look for a personal relationship while others focus on the availability of specific services with reasonable fees. Don Criss, C.P.A., a partner in Criss, Wilmarth & Parr, recommends that small business owners use only one bank that is conveniently located to save time. “Get to know the people there. That’s more important than saving on fees and interest rates.” Or maybe not. Retailer Monroe points out that credit card processing fees can not only be very expensive but difficult to compare in advance. She quickly changed banks soon after opening her business because the credit card processing costs were much higher than expected.
Plan Ahead
Wilmarth advises business owners to assess their banking needs and find a bank that can satisfy them, “making sure that they get the right partner if they have expansion plans.” She says that banks will usually consider the owner’s personal credit rating as well as business collateral in making a loan decision. Her partner Criss agrees: “You can’t separate yourself from your business.” Today, Criss says, there are more requirements for loans. “The old days of one phone call and sign here are over,” he says. In his experience, the loan application process is likely to require several months. Banks may give their individual branches some lending authority, but many business loan requests are referred to regional or other loan committees.
Laurel Nicola, owner of Paw Print Inn Pet Resort and Spa in Novi, says she was surprised at “how routine” the SBA process was for her start-up loan last year. The first bank she approached with her business plan rejected her, in part due to lack of previous pet business experience. However, a kennel owner referred her to a Comerica loan officer who was knowledgeable about kennels. In turn she was offered an SBA loan, which she received in about six months. As a result she chose Comerica to be her business bank. “Don’t be afraid to try and get a loan. If you do your research, you can find a bank out there to help,” Nicola says.
Monroe also found it relatively easy to obtain her initial loan. Although she had no retail experience, she had corporate experience, a good business plan and was investing some of her own money. Four of the five banks she approached in Holland were willing to finance her first store. While the first two years were “pretty tough,” she now operates four stores. When Seaman wanted to expand his HVAC business, he looked into the SBA loan program and found bank representatives to be very helpful, although he ultimately obtained a conventional mortgage at another bank. Today, small businesses are responsible for much of the job growth in the U.S. Banks realize that they’re an important part of the economy with good business potential and increasingly treat them with respect.
William and Irene Schumer are octogenarians - 86 and 85 respectively. They are the owners of an iconic Detroit family business, General Linen & Uniform Service (www.general-linen.com). If you live in metro Detroit, you have seen their trucks and eaten at some of the fine establishments that use their linen service. Their modesty prevents me from listing clientele, but they service most of the finest eateries, many restaurant chains, as well as some hotels and casinos.
Bill and Irene still run the business and report for work daily.
Bill is the second generation in his family’s business. The business is rich with history and tradition. The current company headquarters is at 411 Piquette - the site of the early Ford factory.
The General Linen plant is closer to the old Hastings Street (now I -75) where Bill’s Father, Harry Schumer, went up and down the street renting aprons and towels back in 1919. Harry, a Polish immigrant, entered America in 1913 at the age of 15. He had a partner, Leo Gold, who he bought out.
Upon his return from WWII, Bill first used the GI Bill to gain a master’s in economics from Columbia University. He was planning on a career as a diplomat, but getting married to Irene, starting a family and the desire to be near family brought him back to Detroit in 1948 and a career in the family business. Since then, General Linen has done just fine.
With 140 employees, 24/7 service and a strong executive team General Linen is doing better than ever. The Schumers attribute their recent growth in revenues to their management team and management style. They have daily meetings with department managers and have set up an executive committee of top management to handle tactical and strategic issues. The owners of General Linen & Uniform Service seem to have carved out a niche of the who’s who in Detroit’s hospitality industry and the Schumers are enjoying their success. The key is extraordinary customer service.
Bill and Irene aren’t only a successful business team, but they are a good parenting team as well. They have three adult married children who were taught independence early on. The oldest daughter is an educator married to a doctor, the second daughter is an SEC attorney and the youngest son is a physician in private practice in Washington state. They have 10 grandchildren spread out all over the country interested in various careers like science and the arts.
The problem? No one in the family is interested in General Linen.
One of the reasons Bill and Irene have been holding onto the company is the hope that someone in the family - a grandchild, perhaps - will take an interest in their life’s work and continue the family business. At this late point, it doesn’t seem like this is going to happen. The Schumers know more about what they don’t want for General Linen than what they do want. For sure they don’t want to sell to one of the big national competitors - and they have had the offers. They want to maintain a culture of serving the Detroit area. And while they admit that they will “explore all their options,” it would be their desire to have their loyal employees “become the future owners of General Linen.”
Oliver Products Company
In Grand Rapids, another family firm, Oliver Products Company (www.oliverproducts.com), had succession issues as well. This company, founded in 1890, began its modern age with the development of a bread-cutting machine. Today they are not only in food packaging, but also in medical packaging. They are global in both product manufacturing and sales.
Although the family has chosen to remain anonymous, it seems that they too may have run out of interested family to continue the business. There were seven family shareholders and only two were actively in management. The managing family members were in their 50s when they decided that it was time to explore the “sell option.”
A private equity firm from Milwaukee, Mason Wells (www.masonwells.com), wound up purchasing Oliver Products and runs the company very much like the family did before. Interestingly enough, managing director Greg Myers had targeted Oliver Products years prior to the actual purchase. Mason Wells prospects for lower-end, middle-market ($50 to $250 million annual revenues) Midwestern firms in the packaging industry, and Myers had been sending letters to Oliver Products’ ownership inquiring about a possible sale. After the family went to an investment banker to explore the sale option, it was Myers’ earlier letters that kept them in the negotiations and eventually with the purchase. The fit between Oliver Products and Mason Wells seemed to be perfect.
One of the big fears of family firms selling out to private equity firms is that their company will be dissected and sold off like the corporate raiders of old. And that their old loyal employees will be left on the street - unemployed. That’s just not true!
This story has a happy ending. The new Oliver Products organization looks very similar to the old. There is a new president and CEO, Jerry Bennish, who brings a great deal of industry knowledge with him. In fact he knew the previous owners. Bennish, along with two Mason Wells representatives and two outsiders make up a “professional” board of directors. Other than that, the management team and labor pool remains pretty much intact with a minimum of turnover.
Furthermore, with the influx of needed capital, Oliver Products has been able to expand operations overseas and grow at a 10 percent revenue rate. Productivity is also up 20 percent and Myers says, “Investing in the business opened China on the medical side and we are growing in the Netherlands. We are also growing in the U.K. in food service.”
Bennish says data driven decisions have “empowered the management team and left them enthusiastic.” He finds this one of the positive changes that the sale brought to Oliver Products. Yet the new ownership has maintained the same bonus and profit sharing plans as the family previously offered, keeping the transition as seamless as possible.
Everyone seems to be abundantly pleased with the outcome, so much so that Bennish has an occasional lunch with one of the previous owners.
Jerry Bennish, CEO of Oliver Products Company, discusses the company’s success with staff.
Greg Myers of Mason Wells thinks very highly of family owned businesses in general. He points out, “The family dynamic and culture of serving the customer is paramount. They’ll knock down walls to serve their customers and we don’t want to lose that.”
Summary
If your family’s business has decided that succession isn’t in the cards, explore your options. Your options are limited: absentee ownership (keep it in the family), liquidation, or sale (either internal or external). If you are leaning toward an external sale, don’t count out the private equity buyer as they can provide a happy ending for everyone.
Richard Segal is the chair of the Family Business Council, a membership organization of family-owned businesses. He can be reached at [email protected].
Soon after accepting a buyout from one of the world’s largest employers - General Motors Corp. - Lorna Utley stepped up to an invitation to serve as president and CEO of Goodwill Industries of Greater Detroit. Her new crusade is finding jobs for those with the toughest barriers to employment in a tough economy.
We caught up with Utley, 53, as she emceed a going away party for her predecessor, Delois Whittaker Caldwell. Smiles filled the room as the top job was passed from capable hands to capable hands this spring.
Goodwill Industries, a nonprofit training, placement, retail and manufacturing agency now 86 years old, serves almost 14,000 people a year in southeast Michigan, helping those with physical disabilities, mental challenges and uncertain residency find gainful work. Goodwill’s 270 employees in three counties help clients earn an average of $10.68 an hour and a sense of pride.
Corp!: How did you handle the transition from your role as director of the General Motors Foundation to CEO of Goodwill? Utley: I believe strongly in the work we are doing at Goodwill. I was fortunate to have a six-month transition period whereby Delois served as president emeritus. She helped me learn the ropes, coaching and counseling me so we could achieve specific objectives for the agency. I also continue to receive mentorship from Atlanta Goodwill Executive Ray Bishop. I am fortunate enough to work with employees who know Goodwill inside and out. People with great talent.
Corp!: What is the best skill you bring forward? Utley: I listen and take suggestions, modifying as appropriate. I’ve had nonprofit leadership experience as chair of Inforum, helping shift the largest professional women’s organization to a new name and stature from its history as the Women’s Economic Club and I’ve marshaled the resources of GM to help citizens around America after a crisis. Between jobs I started the Grosse Pointe Foundation for Public Education. I believe in the collaborative process for accomplishing change.
Corp!: What is your guiding principle? Utley: The team of Goodwill can accomplish anything they envision for those we serve. We have four sites in Oakland County, two in Wayne and Macomb and a factory/headquarters next to the Motor City Casino in Detroit. We hope to add locations in Washtenaw and Livingston counties.
Corp!: Where do Goodwill clients work? Utley: Likely you’ve seen our people around the streets of downtown Detroit running sweepers for Clean Detroit. Soon we will start cleaning buildings for the Detroit Zoo. Teams of trainees serve up ice cream at Ben and Jerry’s in the Compuware building. Our factory is ISO 9001:2000 and 14001:2004 certified, our employees provide light assembly, packaging, cabling and kitting services.
Corp!: Tell us about your family. Utley: I have two grown children and two Labrador retrievers that insist on a daily walk around our neighborhood. My husband and I love getting outdoors.
Corp!: What do you do for fun? Utley: My husband, Jud, and I are planning a return trip to Napa Valley in fall. We are big wine enthusiasts.
Corp!: Will you bring anything along? Utley: My knitting needles. I’ve found it is a creative way to wind down when I’m stressed. I’ll bring a few historical novels along. Reading is very inspiring.
It takes intelligence and steady guidance to navigate today’s economy and Michigan businesses needs strong leadership now more than ever. Corp! magazine will honor the state’s top executives who continually advocate for doing business in Michigan and act as the state’s best ambassadors, drawing the big business deals, events, talking up Michigan and in general, making things happen.
To be considered for this award, executive nominees must identify activities that promote Michigan business through various means including new investment, jobs creation, public events, advocacy on behalf of Michigan and telling the state’s success story as well as provide specific examples. They must also demonstrate the following criteria:
Nominated individual must hold title of CEO, president, founder or owner of a private or public company based in Michigan. Business ownership is not required, but nominee must be a senior executive.
Nominee must be involved in bringing major business, significant public events, investment, and/or noteworthy positive attention to Michigan.
Winners will be featured in an upcoming issue of Corp!. The nomination deadline is May 25, 2009. To nominate click here.
In this issue we feature some Michigan women who are leaders in our state and nation, and those who hold top positions in the workplace and business.
Some thoughts on leadership. One of my favorite adages: “Lead, follow, or get out of the way.” Another is, “A real leader faces the music even when he or she dislikes the tune.” Still another: “The trouble with being a leader is that you can’t be sure if people are following or chasing you.”
Colin Powell, former Army general and U.S. Secretary of State, once said: “There are no secrets to success. Don’t waste time looking for them. Success is the result of perfection, hard work, learning from failure, loyalty to those for whom you work, and persistence.” Good advice.
Women today have made considerable progress as leaders in all fields.
At its 12th annual “Women and Leadership in the Workplace” conference, the Michigan Business and Professional Association is honoring several women leaders once again. Their names, category and organizations are as follows:
Also in this issue are other women’s organizations that are honoring their leaders. They are the National Association of Women Business Owners Greater Detroit Chapter and The Inner Circle, a program of Inforum.
Congratulations to them and all women leaders. Today, there is more than just a “crack” in the glass ceiling.
Purchasing Services Manager,
Coordinator of Supplier Diversity
Grand Valley State University
Ester Burns has helped distinguish her employer of 30 years (23 of which have been in her current position) by advocating an atmosphere where “doors are open and all voices are heard.” Burns says that’s been done by introducing initiatives where suppliers interested in doing business with the Grand Rapids-area university are actively recruited. “Rather than having vendors call on the various departments in the university or waiting for a referral from an office, we initiate and host networking meetings, where we bring all the interested parties to the table,” says Burns. “It gives the vendors the opportunity to network with people in one setting and it gives the department users the opportunity to ask questions and to better establish their own relationships.” Another initiative for which Burns has been recognized is the establishment of a broader supply base and one that gives departments the freedom to order on their own. She’s also making headway in the university’s diversity spending initiatives, increasing participation by 3 to 5 percent annually, although the passage of Proposition 2, which prohibits public institutions from considering race or sex in public education, employment or contracting, has made that more of a challenge. “It lends credence to our effort to become more diverse,” says Burns. One example: convincing a department to try a local landscaper on a partial project basis. “The vendor did a stellar performance and as a result of awarding that one contract was able to go out and bid on others. Today they’re our prime contractor.”
Dottie Deremo
President and CEO
Hospice of Michigan
Dottie Deremo’s leadership style? “Eclectic,” she quips, laughing even as she answers. “I believe in ‘and’; that you can be tough and caring, mission focused and have the financial stability and sustainability that can run any good company. And you can have high standards and still be approachable and open.” Deremo, who has spent her entire career in health care, starting as a registered nurse, has led Hospice of Michigan for the last 10 years; for 11 years prior to that she was Henry Ford Hospital’s vice president of patient care services and chief nursing officer. A key lesson learned? The need to engage everyone in the organization. “You need not only their head and their hands but their heart as well.” Deremo also acknowledges the “sacred space” between patients and family and clinicians and how important the transactions in that space are. “It’s shaped my leadership,” she says. “As a leader in the clinical business, my first job is to assure that sacred space is kept whole.” Deremo also sees the importance of mentoring, something she embraces wholeheartedly, specifically referencing three members of her executive team who are being mentored. “Mentoring, grooming and succession planning are all key parts of my role in the organization. As fewer young people enter the workforce and leaders retire, there’s a need to have current leaders being groomed for the vacancies that are going to exist in companies going forward. It’s something that I spend a lot of time doing right now.”
Shawne Duperon
Producer/Speaker
ShawneTV.com
Shawne Duperon, a lifelong Detroiter who’s earned degrees in mass media and journalism (and who is now working on a doctorate at Wayne State University - on the topic of gossip), is passionate about the power of giving. “It’s about the basic laws of attraction,” says Duperon. “Giving and receiving is reciprocal. When your heart is open, there’s a cycle that occurs, an exchange of wealth.” Her writing includes an upcoming book (“Changing Your Channels”) that deals with media beliefs. A TV producer for more than 20 years, Duperon has worked at ABC and NBC and has traveled the globe working for others, including World Business Review. She’s interviewed hundreds of celebrities (among them Colin Powell and Morgan Freeman) and has now made a business out of showing people how to maximize their positive exposure in the world of broadcast. Sounds simple? Not necessarily, especially if you haven’t spent a career working in the profession. Some of the “fun stuff” she’s also doing: a series of half-day self-esteem workshops designed to help women, many of whom have lost access to their children. Duperon brings in volunteers who help her make a real difference. “We go in and love them.” And what’s next? One project in the works is a documentary on forgiveness. Duperon regularly speaks to large groups, often helping her audience develop and improve their relationships with the media. “Once you start helping the media - courting the media - miraculous coverage will unfold for you and your business,” Duperon writes on her Web site.
Angerine Jacqueline Gant
Executive Director
Native American Business Alliance
More commonly known as Jackie, Gant is a
member of the Oneida Nation of the Thames, where she grew up just outside London, Ontario, Canada. As head of the Native American Business Alliance, she has numerous opportunities “to guide women, listen to women, give suggestions and share any life experiences I may have had working in the corporate world.” The mentoring role is one she relishes. “I enjoy mentoring others, both men and women, in their business fields.” Gant, who has a degree in alcohol and substance abuse counseling, previously worked in the insurance field, but it’s knowing how to work with people that has helped in her current role (at four years on the job, she’s the longest serving executive director in the organization’s history). Gant is also quick to look around and appreciate how those she serves in the Native American Business Alliance have progressed. “People like Andra Rush [head of Warren-based Rush Trucking] and Sharon Cannarsa [of Systrand Manufacturing] are just two who have pulled it together. I admire these women and I listen to what they have to say. I truly believe the secret to working with someone is when you’re secure within your own self, you’re able to share your life experiences and guide other women unselfishly, truly wanting them to succeed.” Gant says she continues to rely on the strength, motivation and perseverance of her mother (for whom she is named). “She always said ‘don’t give 100 percent, give 150 percent. And always sit in the front row.'”
Linda Girard
CEO and Co-founder,
Pure Visibility
Imagine you’re trying to explain a new idea. And getting nothing but blank stares. For Linda Girard, that idea was Internet marketing; her vision: how she could improve the sales of just about any company that had or wanted to have an online presence. Instead of discouraging her, the blank looks energized Girard and partner, Catherine Juon (president of Pure Visibility) to launch the firm in the spring of 2005. A graduate of Eastern Michigan University (with a double major in telecommunications and psychology), Girard is self-taught, having worked in finance and technology firms before catching the entrepreneurial bug and joining up with Juon. Pure Visibility is Google Adwords Cer-tified as well as being a certified Google Analytics consultant. Starting with just three employees, it’s now 15 strong with growth last year of 250 percent. “We start out by looking at the client, where they stand in the marketplace. Once we know their business goals and their online value proposition, we map their goals to their Internet marketing, closing the loop with their sales cycle.” Still sound complicated? As Girard explains, companies with zero presence online can still get going on the Internet, with Pure Visibility managing their Google Adwords strategy, testing different “landing” pages (where a click-through ad would send a visitor), and finding those that best generate sales. “You only have a few seconds to make an impression, helping people find what they want. If they don’t find what they need, they won’t recommend or come back ever again.”
St. Ignace may be a small town, but Jean Huskey is a giant in this Upper Peninsula stop-off for tourists heading to Mackinac Island. Now the owner of the excavation company she and her husband co-founded (she was widowed 22 years ago), Huskey at first faced the stark reality of paying off debt incurred when they’d bought the business. “There was no life insurance; when I saw what we owed, I had to keep it going.” Huskey has two sons and an older grandson who work with her in the business (a third son was killed in work outside the company). Those who know her will attest that she’s one of the stalwarts in the community, which named her its Citizen of the Year in 1994. “People have been very good to me,” says Huskey, who remembers in the early days of the business that times weren’t very good in St. Ignace. “Since then, it’s been built up and it’s been good for us. I’ve been able to keep our sons here, which is something in a town where people often graduate then leave.” Busy in the summer with clearing, excavating for homes and installing septic systems, Huskey’s winter business is typically plowing (“There’s not much else going on”). At 72, she remains optimistic and as persevering as ever. “There are challenges in everything you do,” she says. “You’re not going to get anything on your own.” For her part, she’s focused on helping an up and coming generation. “I try to pay back everyone that’s ever done something for us.”
Danialle Karmanos
Founder/Executive Director
Danialle Karmanos’ Work it Out
Danialle Karmanos’ Kids and Cancer
A video producer and self-described “news junkie,” Danialle Karmanos decided to do something about what she describes as a preventable epidemic - childhood obesity. “I don’t think the community recognizes the consequences or the long term cost,” says Karmanos, whose “Work It Out” program also targets heart disease, diabetes and cancers (a second program, Danialle Karmanos’ Kids and Cancer, provides resources to help children come to terms with a cancer diagnosis-either theirs or in their family-on a kid’s level and in a kid’s language.) “This is the first generation that’s not going to outlive their parents. And that makes me furious.” Karmanos describes “Work It Out” as “a roll-up-the-sleeves, put-your-money-where-your-mouth is program that delivers valuable health, exercise and nutrition resources to kids and their families through fun, engaging and, most importantly, educational activities.” Before launching the program in 2005, Karmanos made sure she had the groundwork laid, including gathering information and data on what would resonate with the target community. “The response from children has been like fish to water,” she says. Besides being a member of various community organizations in the Metro Detroit area, Karmanos is on the board of directors for Communities in Schools of Wake County, N.C., where husband Peter Karmanos Jr. owns the NHL Carolina Hurricanes. She says being raised by a single mother (who put herself through school earning two master’s degrees and a doctorate) has given her the confidence to work hard while constantly thinking about how she can give back.
Mary Kramer
Vice President and Publisher
Crain’s Detroit Business
A graduate of Grand Valley State University, Mary Kramer had 16 years of reporting and management experience behind her before joining Crain’s Detroit Business nearly 20 years ago. Named associate publisher a year later, she became publisher in 2005. As one of the more influential figures in the region, she still doesn’t think of herself as a woman executive. “I think more often it’s people outside that perceive that as unusual,” she says. “It may be others who have singled people out like me, giving us more visibility than others might have. But I can’t separate that from my job.” She does, however, have some perspective on the issue of women in leadership. “When I came here in 1989, there were some key women in media, but very few women in business. There were few entrepreneurs. Now there are many more with visible positions. But in Chicago and New York, there are more female CEOs of prominent companies than in Detroit.” The goal of Crain’s, says Kramer, has been to identify leaders and potential leaders, “whether they be minority or female.” Kramer says there is evidence of women being vaulted to board leadership positions as a result of being singled out by Crain’s Detroit Business. She’s now seeing more and more women “dropping out of large cultures” to start their own business. And for those who stay, companies are incorporating
programs to make sure they have diversity, although Kramer says management teams are still not as diverse as they could (or should) be.
Denise J. Lewis
Partner
Honigman Miller Schwartz and Cohn LLP
Denise Lewis knows full well the field she chose is one in which there aren’t a huge number of women. Or more particularly, not at the pinnacle of their field, which she most certainly has reached. One of the country’s top real estate lawyers (honored as such by Chambers USA, America’s Leading Lawyers for Business, 2005, 2006 and 2007), this is actually a second career; she once served as personnel director for the city of Detroit. A mother of a young child when she went to law school (at University of Michigan), Lewis chose to specialize in real estate law partly for the ability to make an impact - “to be transformative for the community” - an example being a current project to develop retail space at Woodward and 8 Mile Road. “Frankly, real estate has a positive impact beyond the business world; it helps everybody.” Lewis admits it took a while for her to earn her reputation as a lawyer in what can be a male dominated environment. Now, she says, after being in practice 25 years and being recognized as one of the leading lawyers in the state, it’s a little easier. Her work includes representing and counseling clients in the acquisition and sale of real estate, development agreements, construction, infrastructure, development, leasing, environmental assessment, zoning matters and property management. Lewis says she was able to balance business and personal life, knowing “there were times when you didn’t get that much sleep.” But, she says, candidly: “Women tend to be well organized.”
Barbara Mieras
Senior Vice President, Major Gifts
Davenport University
A former president of Davenport College, which merged with Detroit College of Business and Great Lakes College in 2000, Barbara Mieras is busy building relationships with donors who clearly see the vision of the nonprofit private institution. Part of that is the delivery of Davenport’s mission of providing a high quality educational experience in just three areas: business, technology and the health profession. Some 13,000 students attend classes at Davenport, at campuses in Grand Rapids and throughout Michigan and northern Indiana. While most are working adults, the school plans to increase the number of traditional age students with the building of residential units on the main campus (and a new student center, for which Mieras is working to raise $5 million). Since she took the job in 2001, she’s been involved in an annual campaign that raises $2 million for student scholarships. She’s also “most often” in capital campaign mode, seeking to raise funds for various facilities projects (like the student center). Faced with a challenging economy (and stiff competition for funds), Mieras has taken a page from the books on continuous improvement: responding to feedback and making sure programs and curriculums are constantly upgraded to better meet the needs of students (and donors who generate that feedback). She’s also taking the experience she gained from her time as president of the former Davenport College, a time when she’d often meet with donors (although not leading the fundraising effort). “That experience translated very well into the role I have today.”
Faye Nelson
President and CEO
Detroit Riverfront Conservancy, Inc.
Arguably one of the more visible proponents and social architects behind the Motor City’s revitalization of the Detroit riverfront, Faye Nelson goes out of her way to make sure others share in whatever credit is extended to her. “There are many, many others who have come together to make this amazing accomplishment take place,” says Nelson, who was appointed to her position in September 2003. A former vice president of governmental affairs at Wayne State University, Nelson earlier served as director of government affairs at Kmart. Acknowledging she has had “an extremely blessed life,” Nelson says having a wonderful support system at home and in the workplace has underscored her desire not only to receive, but to give. “I’ve tried throughout my life to give a part of me to make a difference,” she says. “This project, working to revitalize our riverfront, connecting our community to such a beautiful jewel, the Detroit River, is a commitment I’ve made. I have and will continue to work very hard to ensure our public has the opportunity to come and enjoy it, to benefit from all the tremendous gifts it has to offer. I’ll always be dedicated to trying to make a difference.” Nelson serves on the board of directors for Compuware Corporation, the Michigan Economic Growth Authority, the University of Detroit Mercy and TechTown. She is also a member of the American Bar Association, State Bar of Michigan, life member of the Sixth Circuit Judicial Conference, Leadership Detroit XIII, Detroit Athletic Club and Economic Club of Detroit.
Juliette Thorpe Okotie-Eboh
Senior Vice President,
Community Affairs/Administration, MGM Grand Detroit
For most of her career, Juliette Thorpe Okotie-Eboh has been a self-described consensus builder, a role she continues to embrace at MGM Grand Detroit, where she has worked for five years. Prior to that, she was senior vice president and ombudsman at the Detroit Medical Center. “I’ve always been tasked with building stronger relationships with the larger civic community,” she says. “That’s involved interacting with nonprofit groups that help glue this world together, helping with funding and serving with boards.” Her role includes managing issues “that affect the business that I work in and have an impact on the community.” Okotie-Eboh earned her doctorate (in urban and regional planning) from the University of Michigan by the time she was 28. For nearly 20 years she worked at the city of Detroit, where she was chief of research in the planning department. Later she was vice president of policy at New Detroit, Inc. and served as a vice president and civic affairs manager at Comerica. Her resume includes a two-year stint in Nigeria, directing the preparation of master plans for some 11 cities and towns. Okotie-Eboh, who serves on numerous boards, believes in mentoring and predicts an increase in the number of women who will gain positions of influence. “Women are becoming more highly educated and are entering more non-traditional fields,” she says. “There’s a lot yet to be done, but a lot of changes have been made and there are a lot of women ready to step up and lead.”
Francine Parker
CEO, Health Alliance Plan
Oddly enough, some 30 years after starting at Health Alliance Plan, Francine Parker sees change as being the common denominator. “Being in an organization like this for a long period has taught me that you have to be willing to change, to adapt and grow and constantly reevaluate your position in the organization. For me, it’s not a question of whether the organization is relevant but whether what you’re doing is relevant.” But can someone continue to be fresh after three decades with one organization? “They think it means complacent, but it’s harder to stay and reinvent yourself, which is something I’ve been able to do, starting on the ground floor of what has become a great organization.” Parker describes her leadership style with words like honesty, transparency, visibility, approachability. “I really need to be visible, to see the faces, know the people that I’m leading and be able to encourage them.” She’s also embraced mentoring, even before she became HAP’s CEO in March 2004. “I’ve been able to mentor a number of people, inside and outside of health care. It helps to recharge me as a leader.” As far as her being a leader and a woman, the distinction hasn’t escaped her. “I’m keenly aware that few women hold operational leadership positions,” says Parker. “There are still many times that I’m the only woman leader in the room. I have an obligation to hold high standards, not only in my own performance but to serve as a role model and mentor.”
Maria Elena Rodriguez
President,
Mexicantown Community Development Corporation
With her first career as a TV producer for Channel 4, Maria Elena Rodriguez learned the power of communication and how to recognize an opportunity, something she saw in the revitalization of Mexicantown. Ten years ago, she took on the challenge of running the Mexicantown Community Development Corporation, a key opportunity being the creation of the Mexicantown International Welcome Center and Mercado, a marketplace. Rodriguez says one of the motivations in her work has been being able to recreate the essence of what she saw growing up in the area, particularly the hustle and bustle of a thriving Mexicantown area. She is also passionate about the culture, even while acknowledging that she is “a Detroiter, born and bred.” While her parents were born in Mexico, Rodriguez says she grew up in a culture that was highly diverse. “The Southwest Detroit area is a diverse community to begin with and we need to relish that,” she says. An accomplishment she is particularly proud of is the organization’s entrepreneurial training program, which is positioned as being of benefit beyond the Mexicantown area. “This is for everyone, not just for the community,” she notes. “We’re all part of the fabric of Detroit and we should all benefit.” Indeed, the mix of participants in the program is highly diverse, typically consisting of one-third Latino, one-third African American and one-third Anglo, the remaining being “a nice mix of Chinese and African” participants. Rodriguez serves on the Michigan Commission on Spanish Speaking Affairs as well as several other boards.
Elizabeth Schmidt
CEO, Atlas Tool, Inc.
Forty-two years after she and her husband Markus founded Atlas Tools, Elizabeth Schmidt found herself a widow - and sole owner of Atlas, a tool and die and prototype parts shop that serves mainly automotive customers (although it did at one time supply parts for NASA’s Space Shuttle program). While a son, Mark, works at the Roseville-based company as a senior vice president, Elizabeth Schmidt has extended her sense of family to the entire workforce of approximately 200. “We’ve always been very much concerned about the welfare of our employees,” says Schmidt, who had been able to resist any form of downsizing until last year. Atlas has positioned itself as a technological leader in the fields of Computer Aided Drafting/Manufacturing/Engin-eering and is a leader in the application of computers and solid model technology to die design. The company also boasts no long-term debt, a decidedly important factor in tough economic times. “The main concern is to deal with the economic challenges right now,” says Schmidt, who was born in what is now Serbia and lived in Austria before immigrating to the U.S. in 1952. Her husband, an engineer by training, worked as a plant manager for 10 years before the couple founded Atlas. “I was a housewife before that but I took courses in bookkeeping and kept myself interested.” When Markus was alive, the duties were split evenly - he taking the entrepreneurial path and dealing with manufacturing issues; her forte being financial, which continues today.
Nipa Shah
President, Jenesys Group
To call Nipa Shah a global powerhouse wouldn’t be too much of a stretch. A native of India who came to the U.S. in 1985, Shah first worked as a cancer researcher, then earned a Master’s in Information Systems from Lawrence Tech while working as a chemist in an automotive emissions testing lab. In 2004, she launched Jenesys Group, the platform for managing a variety of programming projects for companies around the world, including clients in Europe as well as North America. And while she taps into resources in India, her business is done very much on a global stage. “Cost is not our only criteria,” says Shah. “In most cases. it’s a matter of experience and relationship. One of the key factors in our success is knowing the technology and being able to translate business requirements into technical requirements. Unless you’re using a company with a high level of programming background, you can end up with a project that might work from a creative standpoint but the support won’t be there.” Shah’s company typically works with graphic design firms and Web development companies,
who then market Jenesys’ services to their clients. “We take away the hassle of project management,” she notes. Shah is the founder of the Michigan India Chamber of Commerce, a private business organization she uses to facilitate networking and to provide resources to businesses in Metro Detroit that are owned by those in the Indian community. She has a number of other projects on the go, including a blogging portal (www.thebloogle.com).
Lisa Webb Sharpe
Director
Michigan Department of
Management and Budget
Being head of a large state department with a diverse set of responsibilities (and $18 billion a year to spend) doesn’t mean Lisa Webb Sharpe isn’t connected with what’s going on. Indeed, Webb Sharpe describes herself as a “hands on” leader. “I want to know what’s going in the organization, and that they understand the big picture, not just in their respective lines of business but in how we impact other state departments,” she says. “Once they understand what the expectations are, I trust them to do their job.” Another aspect of her leadership style is developing the monitoring and reporting structures that will ensure ongoing success. “We measure our performance in ways that industry would measure success, monitoring them on a regular basis, making sure the organization is on track. And if there’s a situation where we hit a bump in the road or encounter other challenges, hopefully your team members are there to help you figure it out.” As a woman in a significant leadership position, Webb Sharpe acknowledges there are times when the distinctions are obvious. “When I walk into a room and it’s all men.” “I try to make sure in our organization, when we are engaged in outreach to businesses or involved in discussions about what our organization will look like in the future, that we make sure we’re looking at the best people.” And they don’t always look alike. Her direction to the team: “Expand your horizons, look at what the rest of the world has to offer.”
Donna Zobel
Owner and President
Myron Zucker Inc.
When Donna Zobel’s father died in November 2003, it might have become a business case for how not to do succession planning. “There wasn’t a robust corporate succession plan in place,” notes Zobel, who was employed as a statistician scientist at Pfizer. Taking leave to help her mother sort out the firm’s finances, Zobel at first shared the concern that the business, contract manufacturing and supply of low-voltage power quality products, would simply cease to exist. But Donna Zobel began to see a different picture emerging. Applying some of the lessons she was learning in business school (she graduated from the executive MBA program at the University of Michigan in April 2004), Zobel thought she just might be able to turn things around. One step: folding W.D. Zobel Company into Myron Zucker, which her father had bought in 1987. Another was dramatically reducing the amount of space, from 35,000 square feet to just 8,000, at the same time outsourcing non-core work. In the midst of the turmoil, Zobel was diagnosed with breast cancer, but by June 2006 she was back - “as feisty as ever.” New work from sources such as lumber mills, ski resorts, printing companies, food processing plants and shipping vessels has reduced the dependency on automotive work. The company also won back a core large account and is now profitable. Zobel continues to work to keep costs down and cultivate new business. “We now focus on growth, instead of survival,” she says. “Our business is smaller, faster, cleaner, leaner and happier.”
Every business owner depends on key employees who excel at their jobs, keep things running smoothly and make significant contributions to the success of the company. But business owners also know such employees are hard to come by. A top priority, therefore, should be attracting and retaining the best people.
The best incentive is a compensation package that is competitive with other businesses in your industry. Two options are increased salaries and/or additional group benefits. However, salary increases (with their respective taxes) or enhanced group benefits (which must be offered to all employees) may be cost-prohibitive. The best incentives are those that provide employees with a future benefit, encouraging them to stay with the company to realize a later reward.
Non-qualified plans allow employers to provide benefits for selected key employees on a discriminatory basis. Some benefits can be limited to employees of a given class; others can be limited to specific individuals. A secure financial foundation for executives includes disability insurance, life insurance and retirement plans, often provided through group benefits. These types of standard group benefits actually provide less for top managers than they do for other employees.
Most group benefits have limitations which result in reverse discrimination against the highly compensated, in that the coverage provided is lower percentage wise. As a result, these benefits are often insufficient to meet executives’ needs. For example:
-¢ Disability insurance: Group disability plans have a benefit cap. A plan may replace 60 percent of monthly salary, up to a maximum of $3,000, for example. That means employees earning up to $60,000 per year ($5,000 per month) will have the full 60 percent of their salary covered, while employees earning more than $60,000 will receive a smaller percentage. For example, an executive earning $100,000 will only have 36 percent of salary replaced.
-¢ Life insurance: Technically, there is no limit on the amount of group life insurance that can be offered. However, employees must pay income tax on the “imputed economic benefit” of life insurance in excess of $50,000. This is calculated using the IRS Table I rates, which are quite high, thus defeating the “benefit” of additional group life insurance.
-¢ Retirement plans: Corporate retirement plans (such as pension, profit sharing and 401(k) plans) as well as individual retirement plans (IRAs, Simplified Employee Pension and Keogh plans) have contribution limits which discriminate against highly compensated individuals. For example, in 2008 the maximum allowable contribution to a 401(k) plan is $15,500 (catch-up provisions allow higher limits for employees age 50 and older). This allows an employee earning $60,000 a year to contribute 25 percent of salary, whereas an executive earning $200,000 can contribute only 7.75 percent. There are similar limitations on all qualified retirement plans, though there are qualified plans that permit larger deductions for owners and key executives.
Many of these shortcomings can be addressed with creative plans, including:
-¢ Supplemental disability programs
-¢ Supplemental life insurance
-¢ Long term care programs
-¢ Split-dollar life insurance
-¢ 401(k) “top hat” plans
-¢ Supplemental retirement plans
-¢ Phantom stock option plans
You should have a comprehensive benefits program that’s custom-designed to generate the highest degree of dedication and productivity from all of your employees. And, you’ll want to have it re-evaluated regularly to make sure it remains competitive and cost-effective.
Norman Pappas is president and founder of Pappas Financial and the author of several articles on business and estate planning topics. His book, Passing the Bucks, is a guide to business succession and wealth transfer planning. He can be reached at [email protected].
According to the American Family Business Survey, the number of female CEOs or presidents has doubled every five years since 1997. The most recent survey, done in the summer of 2007, indicates that 24 percent of the businesses surveyed currently have a female CEO or president - up from about 5 percent in 1997. The growth should continue as 31 percent of those surveyed indicated that they may have a female successor.
The trend continues down the organizational chart as nearly 60 percent reported women in top management positions. “On average,” the survey offers, “the family businesses in our sample each employ nearly five family members, of which 60 percent are men and fully 40 percent are women.”
We all realize that there has been a trend of more women in the workforce, and that the glass ceiling is being broken more often. But, it seems that if Mom or Dad are holding the glass, it’s being shattered. Consider that only 2.5 percent of the Forbes 1000 are led by women. Also consider that women are gaining inroads into traditionally all-male positions and industries. Women have become common in the military, construction, bail bondsmen (no pun intended), movers-¦.
I believe that family businesses have led the way for many of these inroads. Take for example Michigan’s own “Two Men and a Truck.” The story was chronicled in the Autumn 2007 issue of Family Business Magazine. In the 1980s, two brothers, Brig and Jon Sorber, while they were in high school, started moving people in Lansing to earn some extra money. When they left for college and the phone kept ringing, their mother, Mary Ellen Sheets, saw an opportunity - and hired a pair of movers and bought a 14-foot-truck for $350. Today, Two Men and a Truck is in 28 states, Canada and Ireland, with 200 franchises and generating $200 million in revenues in 2006. Sheet’s daughter, Melanie Bergeron, was the company’s first franchisee in Atlanta until she moved back to Michigan and became the company president in 1994. In 1996, Bergeron’s brothers came on board as vice presidents. Eight years after her return to Michigan, Bergeron became CEO.
It is a great story of entrepreneurship and ingenuity fostered by a mother and daughter. Stories like this are common and are especially noteworthy when women find a way to break into what was once considered a man’s world.
But that’s not the only way we see women breaking the stereotypes. Institutions of higher education are now claiming larger female student populations than ever with men only accounting for 42 percent of enrollment according to The New York Times (July 9, 2006). Women are getting more degrees than men and getting them with higher honors. As women gain education and enter the workforce looking for careers, they often need to be geographically mobile. If they decide to have children, they need to develop a sensitive balancing act between motherhood and their career. Couple this with the growth of single parenthood and we have a real dilemma.
What better way to solve the career versus motherhood dilemma than to go to work for the family’s business? It is almost impossible to find a career where you can shatter the glass ceiling, find flexible work hours and get a ride to the kids’ sporting events by your CEO. On top of all that, the compensation package is normally hard to beat. It just makes sense that career-minded mothers look very closely at a career in the family business. And it is always great to come home and be with family.
Single parenthood, whether by design, accident or divorce, can force the employment issue toward a family business. Where else can a working single mom find needed support? One client even started a day care center on site when their divorced daughter came to work. It was a great way for Grandpa and Grandma to stop in and see the grandchildren. It also gave Mom great flexibility to do her job without worrying about the kids. (By the way, it opened a needed benefit for the other working moms as well.)
It is amazing how often the perception of “traditional roles” stifles our thinking about the organizational chart. When succession is the issue, primogenitor (rights of the first born son) still seems to be the default. The women in the family are often overlooked completely, regardless of their skills, accomplishments or desires. It is amazing that men looking for human capital can’t see beyond their noses when the solutions are right in front of them.
If you believe there are differences in gender beyond the obvious physical ones, then good managers should be able to capitalize on those differences and gain in performance. There is no doubt that women are better at certain tasks. In my previous life as a mechanical contractor, we were always eager to find women to do building finishes - yes, construction workers. They seemed to pay much more attention to detail and therefore we received a much smaller list of deficiencies -the so-called punch list. Result: money saved.
That’s not all. Some of the stereotypes of women having a stronger “soft” side and being more relationship oriented might offer better management outcomes. While men have a tendency to be bottom line oriented, women might want to know if it felt right. (If you are male and you just rolled your eyes, then hold on a minute.) Profit that “feels right” could well mean that we are on target with our vision/mission, rather than just being happy with the black ink. Being on target usually means we know what we are doing and it leads to growth and stability.
If you have welcomed your women, or if you are a woman involved in or running the family business-¦bravo! Families should encourage all of their members to participate with the level of skills they bring to the table. Regardless of the reason your family’s women might enter your family’s business, they should be viewed as valuable assets who can bring new and innovative thinking to the table - that’s the board room table, not the kitchen table.
Richard Segal is the chair of the Family Business Council, a membership organization of family-owned businesses. He can be reached at [email protected].
Witnessing the Second Wave – Gladys Beckwith Reflects on Progress of Women
By Lynne R. Zacharias
March 1, 2008
In 2005 Governor Jennifer Granholm declared that Gladys Beckwith, executive director of the Michigan Women’s Historical Center and Hall of Fame, single-handedly made sure that the contributions of Michigan women are known to all and that because of her, young women growing up in the state will know that all things are possible in their lifetime.
Corp!: Throughout your life you have seen incredible progress made by women. What do you feel were the most significant for Michigan women? Beckwith: All of the gains from the second wave of the women’s movement. Women being able to obtain credit in their own name has allowed them to start their own businesses. The move toward more educational opportunities for women has been significant. When I started teaching at Michigan State University, very few women where studying veterinary medicine, business, academic administration, or other fields. Now those programs are almost half women.
Corp!: What does the term second wave of the women’s movement mean? Beckwith: The first wave was the 75-year struggle for women to get the vote. The second wave grew out of the civil rights movement. It was a very exciting time in our history and I was glad to be a part of it.
Corp!: The current presidential campaign has been interesting to watch. What are your thoughts about Hillary Clinton’s run for president? Beckwith: I applaud her. Hillary Clinton is an impressive candidate and it is a great step forward for a woman to be running. America is the longest standing democracy in the world and we have not had a woman leader. Look at England and even Pakistan. It seems to be so controversial in the U.S.
Corp!: What is your perspective about Michigan women’s role in our state and government? Beckwith: We have made some progress in that we have Jennifer Granholm as governor. But fewer women seem to be getting involved in the legislative progress. I would like to see more women get involved on school boards or city councils. I am afraid that a lot of gains that have been made with women participating in government are declining.
Corp!: What is your perspective about Mich-igan women’s role in our economy, business and education? Beckwith: The Mich-igan economy is suffering greatly. Women need to take every opportunity to educate themselves in new technology, so that they can participate in the trend toward more technology based businesses and away from manufacturing. A lot of progress has been made with women owning their own businesses, which is a great way for them to showcase their talents.
Corp!: What is the best advice you can offer to others? Beckwith: If you have a vision, set a goal and work toward it and don’t get discouraged if it doesn’t work out right away.
Corp!: What was your first job and what did you learn from it? Beckwith: I sold stockings at Arbaugh’s Department Store and I learned how challenging it was to be a clerk and work the long hours. Being a store clerk was one of a few career paths for women when I grew up.
Corp!: Besides women’s issues, what is your favorite cause? Beckwith: I am an animal lover and would love to someday volunteer with some animal organizations.
Michigan is surrounded by six quadrillion gallons of fresh water, and over 3,000 miles of lake coastline. Because of that, its residents and businesses have been able to build and maintain a diverse state economy of agriculture, tourism, recreation, manufacturing and shipping.
But with severe drought conditions in the southwest and southeastern regions of the country, Michigan lawmakers are keenly aware that the eyes of a thirsty nation are turning towards the Great Lakes as a possible source of fresh water.
Bob McCann, a spokesperson with Michigan’s Department of Environmental Quality, says the bottom line is making sure the water in the Great Lakes is kept in place.
“As soon as state politicians talk about protecting our water, any strain of partisanship blurs,” says McCann. “It isn’t a political issue at that point, but rather, what is best for Michigan.”
Detroit draws water for its drinking supply from Lake St. Clair and the Detroit River. It claims to have some of the cleanest tap water in the country and provides water service to neighboring cities and suburbs as far out as Wixom in Oakland County.
The Frankfort Light sits at the entrance of Frankfort’s harbor on Lake Michigan.
Photo by Joe Bomberski
For the most part, lake experts, scientists, politicians and business owners believe that the current low-level conditions are cyclical and historical - a result of less rainfall, snow and reduced ice cover. Additionally, some say dredging might be the culprit.
Whatever the reason, it’s hard not to notice the effects. Businesses have been hurt and dried up shorelines are leaving unsightly images for property owners.
“Take a look at Saginaw Bay,” McCann suggests. “As the water goes down, exposed bottomland on people’s property consisting of muck and algae wash up on the shoreline making it difficult to enjoy. That’s just one issue among many.”
Record-setting low lake levels were recorded in 1860, 1925, 1930 and the 1960s. It was the 1980s that saw the Great Lakes swell to historic highs.
One family owning four acres of lakefront property on Lake Michigan found an advantage to their receding shoreline.
Patrick O’ Hearn, who sells real estate in Gaylord, says his family purchased the property in 1959. “Right now we have 300 feet of shoreline giving us the chance to clean up submerged logs and sharp rocks that would interfere with swimming when the levels return.”
The Great Lakes holds 20 percent of the world’s, and 95 percent of the U.S., fresh water supply. Michigan, Ohio, Wisconsin, Illinois, Minnesota, New York, Pennsylvania and Indiana draw from them.
Tammy Newcomb, a Lake Huron basin coordinator in the DNR Fisheries Division, says average lake levels for Lake Superior are about 20 inches less than normal. Lake Erie is 71 inches below the record high. Lake Michigan and Huron are 70 inches lower.
Boaters throughout the state have had to deal with the closure of several marinas and unusable docks because of such levels.
“Canadian snowfall dictates how much water comes into the Great Lakes through ground water,” says Newcomb. “It hasn’t been snowing as much in the Canadian areas because of warmer winters, and that means less ice cover and more evaporation.”
The condition of the Great Lakes has become a political rallying point as well. Republican State Senator Patty Birkholz says her priority is protecting Great Lakes water. She chairs the Natural Resources and Environmental Affairs committee, and represents the 24th district for Allegan, Barry and Eaton counties.
“All of the eight Great Lakes states need to adopt the Great Lakes Basin Compact. It’s in committee now and must be unanimously adopted by all regions or it will not become successful. The bill would give a high level of protection against large-scale diversion of our water or withdrawals,” she says.
Along with the auto industry, Birkholz cited Gerber Baby Foods and Similac as examples of Michigan-based businesses needing and using an abundant supply of fresh water in the making of their products.
“Even cherry and apple pie filling have over 50 percent water in those cans, and they use water to wash the fruits beforehand,” says Birkholz, emphasizing the dependency agribusiness has on fresh water.
Republican Congresswoman Candice Miller, who represents Michigan’s 10th district, takes an aggressive stance on protecting the state’s fresh water supply.
“We’ve had very few natural disasters in our state aside from an occasional tornado or major snowstorm, yet we subsidize people to live in areas of the country that are not quite so safe and are not blessed with the abundant resources we have in Michigan,” says Miller.
There are limits to that generosity, she says. “It is drawn on the shores of the Great Lakes. They are our very identity and we will not allow them to be diverted. Not on my watch.”
As a shoreline property owner in Grosse Pointe Shores, Kay Felt became part of a 10-person board for the International Upper Great Lakes Study, and is the U.S. co-chair of the 20-person Public Interest Advisory Group. Each body is equally comprised of U.S. and Canadian residents appointed by the International Joint Commission.
The five-year study will take into consideration a wide range of interests, including ecosystem, environmental and coastal zone concerns; hydropower; municipal, industrial and domestic use; commercial navigation; harbors and marinas, and recreational boating and tourism.
“An interest group from the Georgian Bay region of Canada firmly believes dredging in the St. Clair River has caused a drain hole causing water to drain excessively fast out of the river to Lake Erie. They want some controls put in to slow it down,” Felt says.
The state’s tourism industry has taken hits too, according to Dave Lorenz, manager of public and industry relations for Travel Michigan, part of the Michigan Economic Development Corporation.
“Michigan, to a great degree, is about fresh water and the Great Lakes as well as the wilderness wonderland. If people think they can’t recreate, they will cut short vacations and travel less. This creates an image problem too,” says Lorenz.
Thousands of vacationers ride the ferry from St. Ignace to Mackinac Island. Michigan’s tourism industry provides about 200,000 jobs.
Photo by Eric Maes
“The spending of discretionary dollars on recreational enjoyment has diminished,” he says, also noting the state’s tourism industry provides about 200,000 jobs, $18.8 billion annually and $1 billion in tax revenue.
William Hryb, general manager of Lakehead Shipping Company Ltd. in Thunder Bay, Ontario, understands the impact of low lake levels. Lakehead is a shipping agency representing ocean-going companies around the world.
“Our concern on the negative effects of low water levels started about two years ago,” says Hryb, also a member of the Public Interest Advisory Group and International Upper Great Lakes Study. “There has been a ripple effect. Ships aren’t able to carry the loads they were designed for because dock facilities in some ports cannot manage full loads due to low water levels. Shippers aren’t able to send as much to their customers. Later shipments mean more fuel and labor which is passed on to the final consumer.”
Low water levels in the St. Lawrence Seaway and Lake Michigan have slowed commercial vessels. Hryb says ships coming into ports like Cleveland, Detroit and into Lake Michigan have to lighten their loads before arriving into those regions, taking cargo off before entering the seaway, or taking less cargo from the source.
According to Glen Nekvasil, vice president of corporate communications for Lake Carriers’ Association in Cleveland, Ohio, low lake levels have been creating a dredging crisis.
“Right now it would cost $230 million to dredge the ports and waterways to their proper depth,” he says.
A 1,000-foot-long U.S. -Flag Laker delivers coal to the power plant in Marquette, Mich. Low water levels and lack of adequate dredging have forced vessels to leave behind thousands of tons of coal and other cargos each trip. Photo by Rod Burdick
The amount of cargo left behind is hurting the companies ordering the raw material. “Our largest ships, with a capacity of 70,000 tons, are leaving 8,000 tons of cargo per shipment behind,” explains Nekvasil. “That much coal would produce enough electricity to power greater Detroit for three hours. Eight thousand tons of iron ore would make enough steel to produce 6,000 cars.”
Conversely, David Irish, owner of a boat shop in Harbor Springs, says that up to now, his business hasn’t suffered much from low lake levels.
But if levels continue to fall in the range of one additional foot, Irish believes the damage to his business would increase significantly with extensive dredging required.
“Some docks in our marinas are unusable for deep draft boats, typically sailboats,” he says. “Areas of the marinas that cannot be dredged will be rendered unusable. Use will decline, affecting our boat yard and service business, as well as our new boat and brokerage sales.”
While global warming isn’t a phrase that Doug Martz, chair of Macomb County’s Water Quality Board, cares much for, he says he does recognize a climate change is occurring.
“I live on a canal on Lake St. Clair, and my boat in the backyard has just been sitting there for a couple of years. It’s like somebody pulled the plug, and now there’s no water in the canal.
“I’ve even got 18-foot tall Phragmites growing all over on my receding shoreline. They’re a very hard to get rid of species, and I understand they’ve spread as far north as Houghton Lake.”
Martz, a builder by trade, says he has seen sewage dumps, illegal sewer connections and hundreds of chemical spills in Michigan waterways, angering him enough to remain active in state and local water issues.
“I know that the Great Lakes states and Canada are trying to stop any diversion of water. But what’s alarming is that whatever amount of water is, or might be, diverted won’t be coming back.”
For several years, I have been extolling the importance of small business in Michigan and nationally as well. I have been playing up small business and the important role they have played since 1981 when I was asked to serve on the White House Conference on Small Business during President Jimmy Carter’s tenure.
Our national government and the Small Business Administration (SBA) have long known the importance of small business. The word has never gotten out as it has in recent years. Now, more and more businesses and government people are jumping on the small business bandwagon.
Here are some things you should know about small business in Michigan:
Small businesses make up 98 percent of all Michigan employers.
The 822,000 small businesses in Michigan are located in every community.
Small businesses create more than 50 percent of our nation’s non-farm private domestic product.
Small businesses employ 51.5 percent of Michigan’s non-farm private sector workers.
Michigan saw some 24,642 new small firms with employees start-up in the last year.
The latest figures show that small business creates 65 percent of our nation’s new jobs.
Small firms produce 13 to 14 times more patents per employee than large patenting firms.
These figures from the SBA prove how important small business has become in our nation. Everyone seems to be getting on the bandwagon to appreciate the job small business is doing, as it should be. In the long run, small business is finally getting the respect it deserves.
In 1986 a group of multidisciplinary professionals got together to explore family business. Twenty years later that group has evolved into the Family Firm Institute (FFI), an international organization of service providers to family firms.
The 2007 conference, attended by over 450 participants representing more than 40 countries, was an opportunity for professionals who service family businesses to share their business experiences, all with a goal of finding “best practices” for their clients.
Research Says
John L. Ward, a clinical professor of family enterprises at the Kellogg School of Management, Northwestern University, is a founding member of FFI and one of the icons in family business. Dr. Ward is responsible for some of the early research in the field and continues to lecture around the world at places like IMD Business School (Lausanne, Switzerland), Hong Kong University of Science and Technology, Indian School of Business and IESE (Barcelona, Spain). He has written several well-received books on family business issues.
Some of Dr. Ward’s early research addressed the success or failure rate of family firms. His data has been quoted for years, but currently FFI offers slightly different statistics: More than 30 percent of all family-owned businesses survive into the second generation. Twelve percent will still be viable into the third generation, with 3 percent of all family businesses operating at the fourth-generation level and beyond. (Joseph Astrachan, Ph.D., editor, Family Business Review)
The question is always: Do family firms outperform their non-family counterparts?
Measuring Success
We know that some family businesses become Fortune 500 members - in fact, it has been estimated that about one-third of that elite group qualify as family owned businesses. While that might be one measure of success, certainly another is longevity like the kind of data Drs. Ward and Astrachan have gathered. The issue is how do you compare the longevity of family versus non-family business? I am unaware of any research that directly addresses that question, but perhaps we can use some common sense.
If we consider a generation to be 20 to 25 years, then we might ask some comparative questions. How many businesses last 20 to 25 years? Forty to 50 years? Sixty to 75 years? Or, 80 to 100 years? If your common sense works like mine, you would reach the conclusion that family businesses fare pretty well against their non-family peers. Interestingly enough, Dr. Ward gave a presentation at this year’s FFI Conference where he asked similar questions, looking for the reasons that family firms might outperform their counterparts. He claimed that a study of 100-plus year old family firms offers several insights into the keys to strategic business adaptability.
We will be watching for more results from Dr. Ward’s research and what it tells us about family business success.
American Family Business Survey
The American Family Business Survey, the seventh since 1993, was released to correspond with the FFI Conference. The survey was interpreted by Kennesaw State University and underwritten by Massachusetts Mutual Life Insurance Company (MassMutual) and the Family Firm Institute. The general conclusion: “Family-owned businesses are stable and optimistic, even in uncertain economic times, their business results justify their optimism.”
This conclusion is supported because the survey found that family business owners are:
More optimistic about future growth.
Lacking a sense of urgency around retirement and succession planning.
Selecting women business leaders.
Holding themselves and their employees to a higher ethical standard.
Expanding their use of the traditional management toolkit.
More unified behind common family values.
Placing their trust with family members and key financial advisors.
The survey is the result of 1,000 family businesses contacted in the summer of 2007, making the results timely and relevant. The
report notes: “The performance of these businesses is even more impressive when compared to their primary competitors. Many report growing faster (27.1 percent), and only 15.4 percent report growing slower than their competitors. These figures demonstrate that family businesses have a sustainable competitive advantage.”
For the record, here are a few other key findings of the survey:
Within 10 years, 40.3 percent of business owners expect to retire.
24 percent of the businesses surveyed have a female CEO or president - up from 10 percent in 2002.
36.6 percent have a written strategic plan.
37.4 percent have buy-sell agreements or other arrangements defining who can own stock and how it is transferred.
A spouse is the most trusted advisor - up from fourth in 2002.
Best Practices While it is encouraging to see all the new research in an effort to find out what makes family business tick, nothing to date has changed the three things recognized as “best practices.”
Family Meetings where the family stakeholders can meet as peers and discuss issues of common interest has been a bottom line requirement for family business success. Lines of communication must be established and opened on a regular basis-¦no less than annually. Many families establish a Family Council - a family exec board - to act between family meetings. If the family is to own and manage a business for generations then all stakeholders need a place to be heard as equals-¦individuals need to move from family relationships to business partners.
Advisory Boards bring a challenge and objectivity to business management. Real outsiders as advisors are a requirement for the board to work and a true board of directors is even better. This group can help separate the family from the business issues. They can mediate big issues. They can add vision and wisdom. And, they can make management accountable.
Family Constitutions are nothing more than an assembly of written policies and agreements - both legal and informal. Families that can identify issues, both current and future, and debate their resolution to a consensus, then put it in writing, are highly likely to run a successful business.
As we watch for new insights for family business success, maintaining these three best practices are the most likely strategy for family harmony and business success.
Richard Segal is the chair of the Family Business Council, a membership organization of family-owned businesses. He can be reached at [email protected].
Rising From the Sand – DeVos Children’s Hospital Undergoes Major Expansion
By Lynne R. Zacharias
January 2008
After 15 years as a pediatric surgeon, Dr. Robert H. Connors was appointed president of Helen DeVos Children’s Hospital, a 14-story, 440,000-square-foot facility projected to cost $190 million.
Corp!: The groundbreaking for the hospital took place in 2006; how are things progressing? Dr. Connors: The project is going really well. We have a lot of sand in west Michigan. The project started out as a sand pit and now rising out of the sand is a building. Our opening date is scheduled for the end of 2010.
Corp!: What challenges do you face as president of an institution in its developing stage? Dr. Connors: I actually find it more fun than challenging. We are a very young hospital and we are experiencing rapid growth, adding new people and new programs.
Corp!: What are some of the new programs? Dr. Connors: We have added our first rheumatologist and a neurosurgeon. Our cardiology program has been expanded. We have added a kidney transplant program and an intensive feeding program. Additionally, we have implemented a pet recreation program designed to help normalize the experience of being hospitalized.
Corp!: What differentiates a children’s hospital from a traditional hospital? Dr. Connors: A children’s hospital is for kids. The people who work here love kids. The best analogy I can give is that kindergarten, elementary, high school and college are all schools, but they are very different.
Corp!: What is your most recent success story? Dr. Connors: The design of the children’s hospital. We have had to adjust and change the design throughout the project to meet the growing needs of the community.
Corp!: What words best describe you? Dr. Connors: Calm and steady. I’m a Midwest-ern guy.
Corp!: What is the most important lesson you have learned in business? Dr. Connors: Surround yourself with good people. Attract good people. Let them grow and develop their talents.
Corp!: If you had to start all over again, would you choose the same career? Dr. Connors: Yes. I was a surgeon for most of my career. I get great satisfaction in being able to help children and families. I am late in coming to administration. It has been a great opportunity to broaden my influence and help more children.
Corp!: What was your first job and what did you learn from it? Dr. Connors: I was a stocker and bagger at a local supermarket in South Dakota. I learned that I had to work pretty hard to get a raise from 60 cents to 75 cents an hour. I learned good work ethics.
Corp!: What is your favorite way to spend your free time? Dr. Connors: I like playing golf, listening to music and reading.
Chrysler LLC (the automaker recently unshackled from its former German-based parent) appears to be redoubling its efforts to become even more diverse when it comes to suppliers. The automaker’s strategy now includes not only increasing the number of minority suppliers it has, but the numbers of minority employees who work at those companies. “For us, it’s not just about the ownership of our minority suppliers, but it’s the number of employees that our suppliers use that are minority employees,” said Simon Boag, executive vice president of procurement and supply, speaking at its eighth annual Matchmaker event in September. Chrysler has a strong network of employee resource groups that serve as a platform for networking and mentoring. “We know that diversity isn’t just something mandated from the top,” said Monica Emerson, Chrysler’s executive director of its corporate diversity office. “You have to engage the employees in the process to create a culture of inclusion, where awareness and education continue to grow.” Chrysler has been recognized by numerous organizations, including the Native American Business Alliance, which named it Corporation of the Year, and its naming to the 2007 list of “Top 50 Companies for Diversity” by DiversityInc. magazine. For the last 10 years, Chrysler executives have earned honors in the Black Engineer of the Year awards. Most recently Byron Green, group vice president, truck and activity vehicle assembly, was named one of the Top 100 Blacks in Technology and Richard Owusu, plant manager at Jefferson North Assembly, received the 2007 Professional Achievement in Industry Award.
Comerica
The bank may be getting a bit of a bad rap by moving its headquarters to the Lone Star state, but Comerica is still very much a presence in Michigan and, as its employees attest, one where diversity is more a way of life than a program. With the company’s chief diversity officer, Linda Forte, having a direct reporting relationship to the CEO and diversity included as a Comerica core value, the bank seems determined to build on its strengths in that area, regardless of where its headquarters may be. Comerica’s National Diversity Roundtable sets strategy and addresses key issues and topics related to diversity and sets direction for 11 local diversity roundtables, each of which is charged with promoting diversity within a divisional or geographic area. On a day-to-day basis, Comerica staffers take mandatory training (Diversity 101 for employees; Diversity 201 for managers), courses which focus on building an understanding and boosting skills required in a multicultural environment. Even beyond the initial training, senior level executives have diversity built into their performance plan and company divisions have a “diversity scorecard” that outlines goals and measures progress in meeting them. Comerica has some 14 diversity or market segmentation groups, with staffers charged with developing strategic plans intended to reach out to their constituencies. The goal: demonstrating that Comerica understands the groups and their financial needs. The company was named as a “Top 50 Companies for Diversity in the U.S.” by DiversityInc. and has a host of other awards related to various cultural groups.
Compuware Corporation
Differences. For the management of Compuware, one of the world’s largest independent software vendors, it’s something to celebrate. And like any good software developer, the company Peter Karmanos Jr. built has incorporated a process whereby it’s able to benefit from the differences the people who work there bring to the table. Training at Compuware includes mandatory courses intended to teach managers and employees alike how to create an inclusive environment. And the performance of recruiters is judged on how well (and widely) they’re able to “cast the net” for diverse candidates. In addition, the company has designed a strategy that includes recruiters partnering with community and professional groups, locally and throughout the U.S., who are aligned with potential Compuware employees. Once on board, Employee Resource Groups help provide networking opportunities as well as a connection to the communities they represent, among them African American, Chinese, Indian and Latin American. Compuware supports the network through formal mentoring, a “Voices Diversity Newsletter” and a high school intern program designed to spur interest in technology among women and minority students. The reward: a $2,000 college scholarship and the prospect of returning throughout their schooling, with possible employment on graduation. Contributions and community relations efforts are also linked to the diversity initiative, notably through diverse organizations such as the New Detroit Race Relations Summit (Compuware was a major sponsor) and the NAACP Fight for Freedom Dinner and Freedom Weekend. Compuware also works with minority vendors as a way to build supplier diversity.
Delphi
The automotive supplier has had its challenges, but one area where it remains dedicated is that of diversity, especially in the people that make up the Delphi team. The company believes being more diverse produces tangible benefits, now and in the future. “There is always more than one way to solve a problem,” the company notes. “The more different ways we are able to look at a problem, the more likely we are to discover the solution that is best for our customers. So when you look at Delphi’s global workforce, our supplier base, our educational opportunities, or the communities where we work and serve, you will see there is strength in our diversity.” Delphi seeks to build a culture where individual strengths, combined with teamwork, are a recognized source of mutual success. “Delphi is enriched through the representation of diverse experiences, backgrounds, ethnicities, lifestyles, cultural orientations and beliefs,” says the company. Affiliations include the National Society of Black Engineers, the National Black MBA Association, the Society of Mexican-American Engineers and Scientists, the Society of Women Engineers, and the National Consortium for Graduate Degrees for Minorities in Engineering and Science. “All Delphi’s efforts are directed toward creating a workplace environment that enables every team member to contribute fully,” the company says on its Web site. “That requires complete support of the corporation’s policy on diversity and equal opportunity, along with the necessary efforts that ensure all recruitment, employment, training, promotions and other personnel actions comply with these principles.”
Deloitte
It’s a big world out there. And while Deloitte has been formally working toward being more diverse since 1993, the global consulting company is the first to admit the effort is far from over. As the company says in its annual Diversity and Inclusion Report, Deloitte “is determined to lead, not follow, to push the envelope, be original and take risks.” In doing so, the company has developed work-life balance programs, flexible work arrangements and creative responses to the demands of business travel. Clearly, Deloitte sees its strategy as making good business sense. “Just as we have maintained our strength and increased our market share by diversifying our services, so we must also continue to diversify our workforce and equip our people with the necessary skills to work effectively in this increasingly diverse environment.” Deloitte, which has Michigan offices in Ann Arbor, Detroit, Grand Rapids, Lansing and Midland, has established accountability measures to assess its effectiveness and continues to monitor promotion, turnover and development of minorities and women. “The objective is to lead the way and weave diversity policies into every part of our day-to-day business life.” Deloitte is structuring annual diversity plans and mentoring and networking programs to aid in career development. And for good reason. “Given the changing demographics in the marketplace and projections about the diversity of future labor pools, it’s evident that our success increasingly depends on the full use of the skills, talents and life experiences of all our people,” says Deloitte U.S. Managing Partner Barry Salzberg. “We are committed to fostering a high performance culture and developing our talent so every individual can reach their full potential.”
Detroit Medical Center
One of the key ways the Detroit Medical Center is able to make progress in advancing diversity is through its supplier base. It does so by intentionally cultivating a network of companies that qualify as minority or women-owned businesses. By clearly outlining how companies that qualify should first make contact (and how to continue in the selection process), the DMC has won numerous accolades, including being named five times as Corporation of the Year (health care) by the Michigan Minority Business Development Corporation. The DMC has also been the MMBDC’s Corporate One winner four times and has been named Corporation of the Year by the Michigan Hispanic Chamber of Commerce in its non-automotive category. The DMC’s Office of Ombudsman says diversity at the health care provider takes three parts, as a value, as a cultural norm and as a business strategy. As a value, “difference is welcomed and viewed positively,” according to the DMC Web site. “As a cultural norm, we’ve implemented leadership practices and organizational systems that fully utilize our diverse workforce, and as a business strategy, diversity contributes to our overall business success.” With more than 2,000 licensed beds in its hospitals and more than 3,000 affiliated physicians, the DMC continues to build on its reputation for excellence in care. “DMC facilities employ best practices and conduct business in an atmosphere of respect and professionalism,” states the organization. That theme continues with its attention to being even more diverse. “Our recognition of and attention to diversity in our business operations and health care services is unparalleled.”
Group M
Phil Cowdell, who’s been at the helm of Group M’s Ford Media Services unit less than two years, says getting the right people involved is critical to the organization’s success. “Encouraging team diversity is both a key organizing as well as operating principle,” says the British-born Cowdell. “We are global networks, representing clients from mega-marketers to local niche marketers. To cover this range of market conditions and consumer needs we must ensure that we ourselves are diverse and in tune with the marketplaces in which we operate.” Looking to diversity career fairs is part of the recruitment strategy, but so is a tailored internship program for diversity and minority candidates. And the company has introduced telecommuting and flexible work hours to accommodate workers in different stages of life. Cowdell says change and curiosity are two factors that impact a company like Group M. “We must ensure that our team knows what’s going on ‘out there’ and we believe that curiosity is one of their most vital characteristics. Curious to find a better way; curious about how other teams operate; curious about how other people from different backgrounds/circumstances/markets think and behave. Curiosity plus a learning environment are a powerful combination, and a key driver of change.” Cowdell says he’d like to see Group M go even further when it comes to cultural exchange and cross-training. “In Europe, we used to run ‘job swaps’ between teams in different markets on a common client. The more we share, the more we understand, the better we become.”
Johnson Controls
Becoming more diverse is a journey, says the management of Johnson Controls. For Chairman John Barth, that has meant investing the resources required to become more diverse, attributing some $7 billion in new orders directly to its diversity journey. For Barth, who will retire at the end of 2007, supplier diversity initiatives are a way for Johnson Controls to differentiate itself from the competition. No wonder the company was named Corporation of the Year by the National Minority Supplier Development Council. And the World Diversity Council recognized the company with its Corporate Diversity Innovation Award, in part the result of a supplier diversity joint-venture program and for excellence in collaborating with partners in urban, diverse communities. Johnson Controls will have spent more than $1.5 billion with women and minority-owned firms this year, said to be one of only 13 corporations with results at that level. But supplier diversity is only part of the equation. When it comes to people, the view is determinedly global: Johnson Controls continues to focus on the talent development of gender and diverse candidates and advancement at all levels and in all regions of the world. In January 2006, Johnson Controls added a corporate officer-level executive position-vice president of diversity and public affairs, a post currently held by Charles A. Harvey. Employees at Johnson Controls are active in creating an inclusive workplace through initiatives such as the African American Affinity Network and a Women’s Resource Network, both organized by employees and chartered by the company.
Lear
In a company the size of Lear, with some 90,000 employees at 242 locations in 33 countries, you might think the organization was, by definition, diverse. But remember: the supplier of seating systems, electronic products and electrical distribution systems and other interior products has as its corporate tagline “advance relentlessly.” It began doing just that through a Corporate Diversity Council, one of its first priorities being the training of hiring managers in how to manage a diverse workforce. By 2006, Lear had delivered training to management in procurement, financial and program development. The company’s philosophy is clear: “By diversity, we mean an environment where individuals’ similarities and differences are recognized and respected for their contributions to our vision to be the best.” The efforts to leverage Lear’s buying power go back to 2001, with the establishment of the company’s Office of Supplier Diversity; with short-term goals tied to those of its automaker customers and long-term goals that focus on building a diverse supplier base. But all that must make sense from a business perspective, something Lear management knows and understands. “We believe that focusing on diversity and looking at ways to achieve an inclusive environment makes good business sense. A diverse workforce offers greater productivity and innovation as well as the potential for a competitive edge. Our mission is to recognize and value the multiple perspectives, experiences and capabilities of all of our employees in order to achieve our vision and continue to build on the success we enjoy.”
Mill Steel
As Mill Steel’s Director of People Development explains, the Grand-Rapids based company takes a somewhat different approach to diversity in the workplace. “Our goal is to find people who come from diverse cultures and diverse backgrounds but who already share the values of other Mill Steel employees,” says Tom Stanfield. “Some of the things we look for include trust, the importance of family and community. We’re looking for relational, team players.” Among the places Mill Steel looks is Focus: HOPE, the inner city organization that helps with skills training, and the Wayne State Society of Black Engineers, which has a lab in Mill Steel’s Melvindale facility. The company has also reached into the Bosnian community as a source of staff. “We have people in our organization from 13 different countries and a variety of cultures. Once we get people into employment, we find we don’t have to undo the past history they carry with them.”
NLM
While the logistics conglomerate has achieved recognition for offering innovative services in its industry, NLM management is most proud of the people who work there, a diverse workforce. One that’s becoming more so with a specific recruitment program geared toward military veterans. And that’s in an organization where already more than half the employees are members of a minority, with several holding top leadership positions. NLM and its affiliated companies, including Artisan Associates, Artisan Container Services, NLM Supply Chain Solutions and Top Flite Express, have received numerous honors related to its leadership in issues of diversity. The organization also promotes diversity and inclusion through a two-day “Building Bridges & Making Connections” diversity training course, taught by experts from Schoolcraft College. Employees share a commitment to the company’s inner-city neighborhood, especially through education. NLM supports Detroit’s inner-city schools, educating students about careers in the supply chain by providing logistics curriculum taught by experts as well as participating in computer learning and reading programs. Students are also invited to tour company facilities, educating them in the field of shipment management and logistics. Headquartered in the heart of the city of Detroit since its inception, NLM has employees who work diligently to spearhead and help strengthen a wide range of community organizations including Action on Joy Road, the Adopt-A-School Program Business Initiative at Sherrill School, Cornerstone Schools and Christ Child House. One student, one of the first who participated in the company’s computer training program offered at Sherrill School, later earned a “Most Improved” award from among his classmates.
Pepsi Bottling Group
Yes, Pepsi is ranked very near the top of DiversityInc.’s “Top 50 Companies for Diversity” (No. 2). But getting accolades isn’t the point, says Jennifer Smith, director of multicultural marketing in the company’s Detroit office. “We simply aim to do the right thing by our most prized possessions -¦ our people and our customers.” That means establishing a framework that seeks to build an inclusive culture among employees, then celebrating the diversity that follows. Pepsi works hard to attract, retain, develop and promote the best talent that reflect the demographics of its marketplace. One part of the strategy is partnering with organizations such as the Michigan Food and Beverage Association and supporting events such as the annual Metro Youth Day at Belle Isle Park. Pepsi boasts a strong commitment to diversity at a number of levels, including its board of directors and representation in both its executive ranks and frontline. And the company’s leadership is engaged in the process of strengthening the organization’s diversity, including the diversity of its suppliers. Pepsi’s “We are Involved Neighbors” initiative delivers a combination of matching gifts, individual volunteerism grants, team volunteerism grants and team fundraising grants in the communities in which it operates. The PBG WINS program is funded by the PBG Foundation, which in 2006 paid out more than $2 million in grants. The company also contributed more than $16 million in product and corporate contributions in its market communities last year.
SeDA Consulting
When Sharon Davis would go to conferences focused on IT, one of the first things she noticed was how she stood out, one of the few women and African Americans in a sea of professionals. “I’d ask myself, ‘where is everyone else?’,” says Davis, who leads SeDA Consulting, a Farmington Hills, Mich., firm that has gone beyond IT consulting to focus on what it calls “transformational leadership.” With Davis at the helm, SeDA provides strategies, tools and techniques for leaders, human resource professionals and work teams, the objective being to remove barriers to productivity related to diversity and inclusion. Davis believes having a strong emotional quotient and investing in human capital matter more than IQ. “Our clients rely upon transformational strategies and skills to grow their capacity in diversity/inclusion and conflict resolution to build and retain stronger teams and organizations,” says Davis. “It takes new training approaches and a solid skill set to succeed in leading and managing today’s diverse workforce.” Before SeDA was founded, Davis served as one of nine founding members of the Institutes for Healing Racism. “It was more interesting to see what you could do on the people side of the business.” At SeDA Consulting, Davis is able to combine her know-how of processes related to human resources and IT. “We help companies resolve and get ahead of people issues before they become a problem,” she says. “In doing so, we pay a lot of attention to high touch as well as high tech.”
TAC Automotive
When the automotive unit of TAC Worldwide hears from its customers, among them Ford and Chrysler, that becoming more diverse is an increasingly important business goal, it responds with worldwide resources. TAC’s Supplier Diversity Plan includes goals to award a substantial percentage of total third-party supplier contracts to companies that help meet its clients’ goals in the area of supplier diversity. While providing minority and women-owned businesses the opportunity to do business with more companies, TAC clients are also given the assurance that their stringent operating procedures will be followed. Clearly a win-win for everyone involved, the TAC Automotive staffing process ensures that world-class contracting processes are followed while giving a variety of diverse organizations, including businesses owned and controlled by socially and economically disadvantaged individuals, veteran-owned small business, service-disabled veteran-owned small business and HubZone business concerns, the maximum opportunity to compete. The goal: to boost and build the capabilities of Minority-Owned Business Enterprises and/or Women-Owned Business Enterprises to world-class levels, enabling them to meet even the most demanding workforce staffing requests. TAC’s Diversity Alliance Program provides mentoring and support services, enabling companies to participate in large scale programs; deliver indirect purchasing services; and provide customers with a team of qualified individuals who will contribute to the success of its clients. In turn, companies looking to honor their commitment to support diversity can now meet this critical objective while obtaining access to state-of-the-art staffing services that larger firms are capable of providing.
Walbridge Aldinger
As an active participant in the Michigan Minority Business Development Council, Walbridge Aldinger puts its philosophy for diversity into action. Add to that the role of management on the corporate advisory board for the Detroit Black Chamber of Commerce (formerly known as the African-American Association of Businesses & Contractors) and it’s clear that the company is one where results count. Walbridge Aldinger is also an active corporate member of the Michigan Hispanic Chamber of Commerce and New Detroit. Even with this involvement, the company seeks practical ways to advance the cause of diversity, notably in its forging of a mentoring relationship that began in 1994. Devon Contracting is now a 51 percent partner in Devon Industrial Group, giving Walbridge customers a minority construction organization with the resources, commitment and proven processes to serve its customers. It’s also a platform for spreading the net of diversity supply, which Walbridge Aldinger does with Ford, Toyota, Chrysler and General Motors. Plus the company is involved in minority development programs for non-industrial customer markets, including education and aviation as well as governments at the federal, state and local level. But does the effort produce results? Walbridge has an outstanding track record for meeting or exceeding its annual corporate Minority Business Enterprise goals, achieving its goal of 10 percent business in 2006, or more than $60 million in construction work to Minority Business Enterprises. This year, Walbridge Aldinger has been nominated Corporation of the Year-Construction by the MMBDC, a repeat from last year.
Williams Acosta PLLC
When Ruben Acosta and Avery Williams connected in 1992, the result was the first African-American Hispanic law firm partnership in the Metro Detroit area. Today, Williams Acosta PLLC, founded on the principles of diversity, advocacy and professionalism, continues to serve with distinction. It does so as an extension of the partners’ belief: that Hispanic and African-American lawyers have greater opportunities for advancement by empowering themselves through independence and self-reliance. While relatively small in size (there are nine attorneys on staff), the cases they handle have allowed minority lawyers to gain the skill, expertise and experience necessary for greater career advancement. Acosta and Williams work with numerous minority businesses to promote economic opportunities for minority business people. Acosta and his team have worked extensively at the local, state and national level on Hispanic issues ranging from immigration reform to business development, with initiatives that have included financing and building new housing developments in Southwest Detroit and renovating old, dilapidated buildings that were a magnet for drug dealers. Williams is a nationally recognized expert in the area of eminent domain litigation and has authored numerous briefs on the subject. Williams Acosta has an internship program targeted toward minority high school and college students where they work in the firm for a semester, shadowing lawyers and gaining valuable insight and experience in the law profession. Practice areas include commercial litigation, real estate and development, environmental law and regulation, municipal law and eminent domain, corporate and commercial transaction, and employment and labor law.
Diversity Business Leaders
Ismael Ahmed
Director, Michigan Department
of Human Services
To call Ismael Ahmed an activist would be too simplistic. The longtime community organizer who headed the Arab Community Center for Economic and Social Services, and who now serves as director of the Michigan Department of Human Services, is the penultimate people person. And he intends to make a difference, as he has done for so many years already. In a newspaper interview after accepting the appointment, Ahmed made it clear that results are what counts. “If I can leave and say that I made some difference in the lives of people, then I’ll feel good about it.” Ahmed, who played a key role in the creation of the Arab American National Museum that opened in 2005, has been an autoworker, broadcaster and band manager. He is also a veteran of the U.S. Army. Ahmed is a graduate of Henry Ford Community College and the University of Michigan, where he earned a bachelor’s degree in secondary education.
John Akouri
Lebanese American Chamber of Commerce
A lifelong Michigan resident, John Akouri has been involved with politics nearly all his life, one notable role being the press secretary for Michigan Congressman Joe Knollenberg. Back at home, Akouri is making his own mark now as a member of the city council in Farmington Hills, Mich., and continues his role as an influential leader in the American Lebanese community. A member of numerous organizations related to his Lebanese heritage, Akouri, at the request of prominent national Lebanese American business leaders, is heading the formation of the Lebanese American Chamber of Commerce, a national business organization based in Michigan, but with offices in Washington, D.C., Houston, New York and Chicago. The Chamber will serve to actively develop, promote and advance Lebanese American business and to enhance the economic, social, educational, trade and cultural interests by providing leadership, legislative advocacy and the exchange of business and information.
Dennis Archer
Chairman, Dickinson Wright
His name is nearly synonymous with the city of Detroit, Dennis Archer having served as mayor of the city from 1994 to 2001. But Archer is no mere politician. He is acknowledged as having one of the finest legal minds in the nation (in April 1990, when he was associate judge of the Michigan Supreme Court, Michigan Lawyers Weekly named him the “Most Respected Judge in Michigan”) and was elected by his peers as president of the American Bar Association (2003-2004). Archer served as board chair of the Detroit Regional Chamber (2006-2007). Even as he has advanced in his profession, Archer has done much to help train a new generation of attorneys, including stints as an associate professor at Detroit College of Law and adjunct professor at Wayne State University Law School. Today, Archer remains at the top of his game, as chairman of Dickinson Wright, a blue chip law firm in downtown Detroit.
Sarah J. Bates
President/CEO, New Technology Steel
Strong as steel? Few would argue that Sarah Bates, whose mission was to build a world class minority-owned enterprise, doesn’t fit the bill. Having purchased the assets of a failed company in 2000, Bates has since acquired two additional facilities, but she’s also reaching out with a supplier diversity program designed to increase business growth initiatives for women, minorities and small business owners, all while building mutually beneficial relationships for New Technology Steel and its customers. Bates found her success by rebuilding the original company’s physical structure and replacing or repairing malfunctioning or obsolete equipment. But the people part of the equation is just as important; Bates worked hard in improving the attitudes and work ethics of those around her, regaining the confidence of existing customers while developing new ones. Her now-legendary mantra to coworkers is catching on: “Just do it right and make it happen.”
Sharon Cannarsa
CEO, Systrand Manufacturing
Since she launched Systrand in 1982, Sharon Cannarsa has made it the mission of the Native American and woman-owned minority business to become a dependable supplier of parts to a growing list of customers. She’s doing just that, growing out of the original 3,800-square-foot facility to the current 220,000-square-foot, state of the art complex in Brownstown, Mich. Under her leadership, subsidiaries and joint ventures in South Korea and Danville, Ill., have underscored that reputation. Producing components for engine, chassis and transmissions on both a short term emergency and long term production basis, Systrand serves clients such as Chrysler, Ford Motor Company, General Motors, Volkswagen, ZF Industries, Freudenberg-NOK, along with other Tier I suppliers. Cannarsa believes there is an obligation to grow not only personally, but to support the growth of the community and others in the business community. She is widely recognized for her involvement in various organizations that help achieve those goals.
Thomas Clarkson
Field Vice President,
Allstate Insurance Company
As a career employee at Allstate Insurance (he began in 1978 as a management trainee), Thomas Clarkson knows and understands what it takes to succeed: persistence, commitment and consistency being among the most desirable traits. Over a career that has taken Clarkson to a number of communities throughout Michigan, Indiana and Ohio (his area of responsibility), investing in education and raising awareness of African-American history have been recurring themes. He did so as a board member for the Cleveland chapter of Facing History and Ourselves, a nonprofit educational organization that promotes tolerance. Clarkson’s commitment to diversity awareness is well known, notably at a recent luncheon for the National Conference of the NAACP (where he was a guest speaker). At Allstate, Clarkson has spearheaded the recruitment of exclusive agents and exclusive financial representatives, with a particular attention to raising the level of diversity in the organization.
Paula D. Cunningham
President, Capitol National Bank
Paula Cunningham is the first woman and African American to be president of Capitol National Bank, which was founded some 25 years ago. She came to the post in 2006, after having served in various positions at Lansing Community College (LCC), including vice president of planning and college relations, executive director of marketing, community, and board relations; director of professional development; and associate professor in the management and marketing department, and finally, as president when she joined Capitol National Bank. At the bank, she oversees all operations, including business development, human resources and training. Before working at LCC, she owned and managed the Mason Hills Golf Course. She has served as a keynote speaker, panel member and facilitator for a variety of local and national organizations and hosted a weekly talk radio program for more than six years. Cunningham earned a master’s degree and a bachelor’s degree from Michigan State University.
Tarik Daoud
Automotive dealer
Now a Detroit business leader and one of Michigan’s most active philanthropists, Tarik Daoud is a testament to what a new immigrant to the country can accomplish. The owner of both Al Long Ford and Clinton Tecumseh Ford Lincoln-Mercury came to America from his native Iraq in 1956, attending the former Detroit Institute of technology (now part of Lawrence Tech). Since arriving and not only learning the language, but the culture of his adopted home, Daoud and his wife Helen have made advancing education one of their causes, initiating scholarships and endowment funds totaling more than $1 million. Daoud has been justifiably honored for his contributions, including having received the Ellis Island Medal of Honor, authorized by the U. S. Congress to recognize achievements of this nation’s foreign-born citizens. Daoud continues to make a difference in improving the quality of life in the state, helping to raise $50 million each for Madonna University and the Ray and Joan Kroc Corps Community Center on Detroit’s east side.
William Davidson
President and CEO, Guardian Industries
The majority owner of the NBA Pistons, WNBA Shock and NHL Tampa Bay Lightning may not care for the publicity, but Bill Davidson is, in fact, one of the most recognized figures when it comes to philanthropic causes, many of them related to his Jewish heritage. A graduate of the University of Michigan business school, he earned a law degree (from Wayne State University), then transformed a failing windshield business. Today, privately held Guardian Industries is a leader in architectural and automotive glass, with 19,000 employees in 21 countries. Davidson chooses to share his wealth in a number of causes, including religious education (among them the William Davidson Graduate School of Jewish Education at New York’s Jewish Theological Seminary of America and the Wexner Foundation, which gives grants to post-undergrad students of Jewish studies). He has also made generous donations to excavations at the southern wall of the temple mount in Jerusalem.
Deborah Dolman
President, Midwest Catalyst Group, Inc.
Deborah Dolman’s reputation as a Lansing-based entrepreneur is growing - and for good reason. Her first career was as a court reporter (she launched her company in 1979); 12 years later she was developing technology to help attorneys and those in the legal system capture video and audio testimony. The Greater Lansing Business Monthly recognized her as its “Entrepreneur of the Year,” but even selling the company didn’t slow Dolman down. She put her skills in relationship building and collaboration to work at Lansing Community College, helping with several projects involving technology development. Today she’s applying her relationship-building skills in an entirely different direction, as vice president of business development and co-owner (with her daughter Cerese Dolman) of Cerese D Jewelry, Inc., which makes items sold in upscale boutiques and marketed directly nationwide. Deborah Dolman has been profiled in publications such as Entrepreneur magazine, Nation’s Business and Black Enterprise.
Frederick Feliciano
Hispanic Business Alliance
It might be easier to describe what Frederick Feliciano hasn’t done when it comes to helping advance the stature and health of the Hispanic community in metro Detroit. Born in southwest Detroit and raised in a strong family atmosphere, Feliciano went to work for the Catholic Youth Organization, where he saw creation of the Youth Athletic Enrichment Program, the Southwest Detroit Recreation League and the Annual Hispanic Youth Leadership Conference. He has served as manager of community relations for the Detroit Tigers, implementing the team’s first strategic plan to penetrate the Hispanic market (which led to a similar plan for the Arab American market). And for four years, Feliciano served as multicultural liaison to the mayor of Detroit. Feliciano is president of the Hispanic Business Alliance, which has seen a 300 percent growth in membership in his tenure, and was the driving force behind the annual Hispanic Business Expo and Economic Summit.
Joel I. Ferguson
President, Ferguson Development L.L.C.
Joel Ferguson must be used to hearing the word “first.” In 1967, he was the first African American elected to Lansing City Council (and the youngest) and was the first African American elected to the Ingham County Board. Ferguson served on the Democratic National Committee and helped Jesse Jackson’s 1988 victory in Michigan. In 1995, President Clinton appointed him to the board of the Federal Home Loan Mortgage Corporation. But politics is not the only thing that keeps Ferguson energized; he founded two television stations and was instrumental in the startup of Capitol National Bank. Ferguson also co-founded F&S Development Company, which owns and develops major commercial buildings, including the Michigan House of Representatives building and residential complexes in 16 cities. He chairs the Michigan State University board of trustees and is vice chair of the Blue Cross Blue Shield Foundation. In 2007, Ferguson received the NAACP Freedom and Justice Award.
V. Diane Freeman
GM Senior Manager,
Supplier Diversity Program
General Motors is one big place. But when it comes to supplier diversity with an emphasis on women, few would argue that Diane Freeman has been one of the most influential individuals in transforming the automaker as a place where opportunities abound for women business owners. Freeman has done so in many ways, including having one-on-one conversations with executives and hosting facilitated workshops that help share best practices in supplier diversity. Freeman mentors women business owners as well, partly through her membership on numerous boards (among them, the National Minority Supplier Development Council, Michigan Minority Business Development Council, Michigan Hispanic Chamber of Commerce, Native American Business Alliance and the Michigan Women’s Business Council). She is also on the board of the Center for Empowerment and Economic Development. She says a key to building supplier diversity is performance. “We want to make sure we are building strong performing minority suppliers that are positioned for growth.”
Jane C. Garcia
Chair, Latin Americans for
Social and Economic Development
Formed in 1965 as a means to better meet the needs of the Hispanic community in southwest Detroit, Latin Americans for Social and Economic Development, chaired by Jane Garcia, was the first Latino agency in the city. Today it serves seniors and youth as well as offering continued information and referral services in an area where some 45 percent of the population is Hispanic (and where continued growth has helped to balance the declining population in other areas of the city). In its early days, a key purpose of the agency was to help immigrants with language and cultural barriers receive needed services. LASED, a United Way agency, now has a meals program and helps organize chore services for seniors, the intention being to help the elderly stay in their homes as long as possible. LASED also networks with other agencies and schools, encouraging educators to become role models for a future generation.[PAGE[
Yousif Ghafari
CEO, GHAFARI, Inc.
Born in southern Lebanon, Yousif Ghafari became a U.S. citizen in 1978, four years after earning the first of several degrees, three of them from Wayne State University. A licensed professional engineer, Ghafari heads the architectural, engineering and staffing firm that bears his name, an organization he founded based on responsive customer service and the latest in technology. But Ghafari, a Lebanese Christian who immigrated to the U.S. in the mid 1970s, is passionate about more than designing great buildings (although the firm has received numerous awards for doing so). He has a well-deserved reputation as one of the area’s leading philanthropists and is a member of the Institute of Metropolitan Detroit’s “Hall of Fame.” Ghafari is a board member for several organizations, including the College for Creative Studies, Oakwood Healthcare, Inc., the Automobile Club of Michigan, Dura Automotive Systems, Inc., the Economic Club of Detroit and the Wayne State University Foundation.
William Hardiman
Michigan State Senator
The list of organizations to which Republican State Senator Bill Hardiman has contributed his leadership skills is a long one. But that doesn’t mean the Michigan State Senator isn’t focused. Indeed, the recurring theme for the long-time resident of Kentwood (where he served as mayor from 1992-2002) is bettering the human condition. Hardiman, who according to his Web site is “exceptionally active” in his church, gained national attention as one of the founders and current chairman of Healthy Marriages Grand Rapids, formerly known as the Greater Grand Rapids Community Marriage Policy, a broad-based program to promote strong marriages and family life. Hardiman was elected in November 2002 to represent the 29th State Senate district, which includes the cities of Grand Rapids, Kentwood and Lowell and the townships of Cascade, Lowell, Vergennes and Grattan.
Darryl Hart
Commodity Sourcing Group
Growing up in the state of Washington and earning a degree in business administration from the University of Washington, Darryl Hart first went into the banking industry before taking a sharp right turn - as owner of an Adventures in Advertising franchise, which he developed over five years to become a successful enterprise. Selling the company in 1999, today he is smoothing the road for health care clients. As co-founder of Commodity Sourcing Group, Hart is providing commodity sourcing, commodity integration and supply chain management services. He’s also a firm believer in the power of minority owned businesses and how they can effect change in society. “We have written into our policies and procedures, explicitly, our desire and intention to engage in all areas of socially responsible behavior including proactively engaging in diversity programs with an emphasis on minority reciprocity within our own community.” Hart and his wife Lori have two children and are active in their community.
Gregory Jackson
Jackson Automotive Management
One might think running the first black-owned dealership to surpass $1 billion in sales would be enough achievement for one person. But they wouldn’t know Gregory Jackson, whose Prestige Automotive now includes six dealerships representing Pontiac, Saturn, Lincoln, Mercedes, Ford, GMC, Buick and Mercury. Jackson, who two years ago served as president of the GM Minority Dealers Association, was also named Dealer of the Year by Black Enterprise magazine. In an industry where competition is clearly keen, Jackson continues to hold a leadership role, something that Rick Wagoner, the head of GM, would attest: “Greg Jackson is the advantage that Prestige Automotive has over other dealerships. Greg recognizes that an integral part of running a successful business requires a commitment to his customers and their complete satisfaction, and being an active member of the community in which the dealership operates.” Today, Jackson Automotive Management is considering several non-automotive ventures as part of a growth strategy.
Vinnie Johnson
Chairman, Piston Group
When he was playing for the NBA Detroit Pistons (from 1981-1994), Vinnie Johnson was known as the Microwave - for his ability to instantly heat up the offense. Thirteen years later, Johnson is in a different game altogether, this one the highly competitive auto supply business. The arena is an area of the city that’s seen to have its own set of challenges, but Johnson is no quitter; he’s attracted training grants to improve the productivity of employees (absenteeism and turnover were early problems) and brought together a team he expects will not only survive, but excel in the future. Diversity is part of the equation, reflected in the company’s values: “Piston Group will create an atmosphere that attracts and retains top talent by embracing, encouraging and respecting our differences.” The company, located in Detroit’s Empowerment Zone, is working on growing its business and has established joint ventures with other suppliers including Lear, Continental Teves and others.
Joyce Keller
Executive Director, JARC
Joyce Keller is executive director of JARC, a nonprofit whose mission it is to provide residential and independent-living services to people with developmental disabilities. A former teacher, Keller was introduced to JARC and knew right away that it was what she was looking for. “It just felt right,” Keller once told a writer from the Chronicle of Philanthropy. “You know how some people have a theme in their dreams? For my whole life, the theme has been houses: redesigning them, knocking down walls, going street to street, looking for houses.” She finds the work at JARC immensely rewarding. “Taking people with mental retardation and developmental disabilities out of the shadows, out of the closet, and helping them be part of this community just like you and I are. That they’re not ashamed, that they have names and faces, that’s the greatest legacy we leave.”
Daniel Oglesby
Senior Vice President, HR, Spectrum Health
For the last six years, Daniel Oglesby has provided leadership for the human resources function at Spectrum Health. But Oglesby is no newcomer to the field; he previously worked as director of performance, compensation and development for Alticor Corporation (formerly known as Amway), where he redesigned the human resources department, managed the HR business products group and initiated major human capital change programs. Oglesby has also worked at Corporate Express, as VP of human resources for the delivery systems division, consolidating the company’s HR functions, defining a compensation structure for employee job groups, and introducing standard policies and procedures. Oglesby was also director of human resources and labor relations for Dow Chemical Company’s operating engineers and prior to that, diversity development director at Dow’s corporate headquarters. He earned a bachelor’s degree in health science from Grand Valley State University and a master’s degree in public administration from Western Michigan University.
Nikki S. Olyai
President, Innovision Technologies, Inc.
A pioneer, not only in her profession (Innovision focuses on advanced sciences, engineering and information technology) but in furthering the role of women as entrepreneurs, Nikki Olyai was quick to recognize the value of obtaining Women’s Business Enterprise certification. Just six years after its founding in 1993, Innovision was named one of Fortune magazine’s fastest-growing privately held companies. The recognition was quickly followed by others: Innovision was one of 11 companies in a 2000 Salute to Women’s Business Enterprises and Olyai has been recognized by a Congressional Committee for outstanding leadership. She has also been recognized with an Outstanding Women Entrepreneur Award. Olyai earned a bachelor of science degree and a master of science degree in computer science from Oregon State University. She continues to be active in groups promoting the growth of women-owned businesses and serving as a role model for others, believing that supplier diversity is a smart business imperative.
Dominic Pangborn
Founder, President,
CEO, Pangborn Design, Ltd.
Born in war-torn Korea, at the age of 10, Dominic Pangborn found himself adopted into an American family in Jackson, Mich. After his adopted father recommended a career in art, Pangborn studied at the Chicago Academy of Fine Arts, eventually returning to Michigan to found his namesake design firm. And while business ventures are forefront, so is a keen sense of giving back to the community, especially through initiatives that embrace inclusion. While his design awards now number in the hundreds, the passion he exhibits is seemingly limitless: Pangborn’s business endeavors range from information technologies and securities to building materials and custom digital media networks. He’s also a passionate supporter of causes and events such as Ebony Fashion Fair, Museum of African American History’s African World Festival and the United Negro College Fund Annual Mayor’s Ball. Pangborn has also given his time to a number of well known organizations, among them the Detroit Science Center, the Children’s Center of Michigan and the Michigan Humanities Council.
David H. Segura
CEO, Vision IT
A decade after envisioning a reliable and reputable information technology firm, David Segura’s Vision IT is one of the largest diversity-owned IT staffing, outsourcing and vendor management firms in the nation. Acknowledged by Inc. magazine as one of the fastest growing privately held companies in North America, it is also one of the fastest growing and largest Hispanic businesses in the United States. Segura is not only committed to growth in the business, but in the community in which he lives and serves. It was his involvement in the Society of Hispanic Professional Engineers that the idea for Vision IT was born and Segura continues to give back, having created a Vision IT summer internship program in partnership with Wayne State University, providing Detroit high school students with valuable exposure to the growing information technology field. A college-level student scholarship and interning program, Second Step, provides students with additional opportunities.
Salman Sesi
Attorney, Sesi & Sesi
As a young man, Salman Sesi understood what it was like to be a minority, having been raised in Iraq as a Chaldean Christian. Already a lawyer in Baghdad in 1948, he immigrated to the U.S. in 1950 and went back to school to earn a law degree at Wayne State University. In the early days of living in the Detroit area, Sesi says being a part of a very small minority (fewer than 65 families) meant having to work together with other minorities. And while the numbers have grown (there are some 160,000 Chaldeans in the area), Salman Sesi has made it a point to stay connected with a growing Arab and Chaldean community, including serving as chair of the Iraqi American Association of Michigan. At the same time, he has distinguished himself as an advocate for small business (a specialty of his law firm) and serves on the advisory board of the Michigan Food and Beverage Association.
Ron Shahani
Acro Service Corp.
Growing up in northern India, Ravinder “Ron” Shahani recalls seeing Neil Armstrong walk on the moon, an event that he says had him first dreaming of a life in the United States. Completing a degree in finance in India, he came to the U.S. in 1975, first earning a Master’s in Business Administration before joining Ford Motor Company. It was in 1982 that he saw the need for a professional staffing firm and launched Acro Service as a result. “I immediately perceived an opportunity as initiatives for outsourcing engineering and design projects became the key concept to eliminate high-end costs and yet remain competitive.” Part of Shahani’s strategy was to recognize the financial lure of joining a staffing company like Acro. In doing so, he offered engineers more than they could make elsewhere. He has since diversified into other industries and now automotive accounts for just 30 percent of Acro’s business.
Herb Strather
Strather Developments
Herb Strather emerged from an economically deprived southwest Detroit community to become one of the nation’s leading African American entrepreneurs. But all great things have small beginnings and Strather’s came with the purchase of a single property, the result of a decision he made after attending his first class at Wayne County Community College to become a real estate investor. Since then, communities that were once challenged and seemingly beyond their prime have blossomed, the result of Strather’s vision of creating safe and welcoming places where families and small businesses could grow and prosper. He was an early investor in the Motor City Casino, one of three gaming sites in Detroit. Strather’s personal passion for education and community building led to his support for the work of Optimist International. He has personally donated more than $1 million to the organization and is responsible for founding some 115 chapters of Optimist International.
Jeff Styers
Arrow Strategies, LLC
In the five years since Jeff Styers, a Native American, founded staffing company Arrow Strategies LLC, the staffing firm has earned a reputation for excellence, first exemplified by its selection a year later as one of “Metropolitan Detroit’s Best and Brightest Places to Work For.” A series of acquisitions quickly positioned Arrow Strategies as a force to be reckoned with in the staffing industry. The company has been a repeat “101” winner in subsequent years and in 2005 was nominated as “Minority Supplier of the Year” by the Michigan Minority Business Development Council. Styers, who also owns a specialty staffing service - Computer and Engineering Services - is very much a “people person” as evidenced by one of his hard and fast rules, one which not all staffing companies adhere to. “We are adamant about meeting our candidates. I don’t know how you can compete without knowing your product and our product is our people.”
Denise Yee
Executive Director, Asian Pacific
American Chamber of Commerce
The Asian Pacific American Chamber of Commerce, formed in 2000 to provide a structured environment facilitating cooperation, support and mentoring among all Asian Pacific American businesses and professionals, is headed by Denise Yee, whose entrepreneurial spirit helps when it comes to interacting with businesses, building networks and enhancing communications. Yee’s years of experience in both private and public sectors and her skills in public relations, community relations, event planning, marketing and fundraising are all part of what makes APACC such a vibrant organization. Yee’s experience includes working for the Birmingham Bloomfield Chamber, Michigan Department of Career Development and Michigan Jobs Commission. She also served as director of the Office of the First Lady when Michelle Engler held that post. Yee’s enthusiasm and unwavering spirit are well known, as are her core strengths and capabilities, all of which demonstrate a desire to take a leadership role to advance the causes of APACC. Yee earned a degree in organizational leadership and management from Regent University.
Diversity Champions
Arab-American and Chaldean Council
Founded in 1979 as a one-person office (head-quartered in the Inter-national Institute in Detroit), the Arab-American and Chaldean Council served just 421 clients; a decade later it had opened 12 outreach centers and was reaching more than 5,000, a growth in stature and predominance due to the simple desire to serve. The organization remains central to the fabric of culture for thousands and a fulcrum for development in one of the city of Detroit’s more challenging areas, the 7 Mile Neighborhood. It’s there where a revitalization effort that began in 1995 has since become part of the city of Detroit’s Community and Neighborhood Development Initiative. Today, the ACC - how it refers to itself - continues to support the community, serving more than 78,000 clients a year.
Band of Angels
After Cynthia Kidder’s son Jordan was born with Down Syndrome in 1989, she was told how “different” he would be. Instead, Kidder began to realize that Jordan was more the same than different. In 1994, she formed Band of Angels to share that realization with others, her intention being to bring this inspiring and hopeful message to other families. Private donations and publishing revenue account for more than half the organization’s budget; an annual Starry Night Gala and other grants and donations also help support families of children with Down syndrome with accurate information, advocacy and educational scholarships. Kidder worked with Joseph Rubenstein of Aurum jewelers in Rochester, Mich., to create an international symbol for Down syndrome, available as a sterling silver charm at www.bandofangels.com.
Center for Empowerment
and Economic Development
An organization dedicated to producing results for women entrepreneurs for nearly 20 years, the Center for Empowerment and Economic Development (CEED) is by nature a leader. “Our guiding principle-¦has always been to be first in the market,” says Michelle Richards, executive director of CEED. “If we cannot be leaders and provide the program or service then we do not provide it. We do not want to compete with other assistance-oriented organizations; instead we wish to cost-effectively complement what the others provide.” Richards’ focus for CEED is to provide emerging and established women business owners with counseling, training, financing, loan packaging, certification and procurement assistance. It accomplishes the mission primarily through two annual events - an October “Women in Procurement” conference and its “Breakthrough” breakfast, held every April. CEED boasts more than 500 paid members, making it the largest such organization in the state. Clearly, the future is bright for women entrepreneurs.
The Children’s Center
While the Wayne County organization works with children and families in addressing a wide range of areas that impact their quality of life, the issue of diversity is never far from the focus. Indeed, CEO Debora Matthews, an accountant by profession who returned to the Children’s Center in 2005 (she once served as finance director), has been clear in spreading the diversity message. Her “Leading Diversity from the Inside Out” presentation made to the Council of Accreditation last year and a conscious promotion of staff training and education continues to resound as a theme for promoting diversity as a driving force. A Diversity Inclusion Art Show (scheduled for October 2007) showcased local area youth efforts, with a particular emphasis on diversity concepts.
Focus: HOPE
Intelligent and practical action. Those words were in the original mission statement co-written by Eleanor Josaitis and Father William Cunningham when Focus: HOPE was launched in 1968, a year after the infamous Detroit riots had left the area sharply divided among racial lines. Josaitis remains committed to the effort (Father Cunningham died in 1997) and Focus: HOPE has received national and international recognition for its efforts. While one of its first initiatives was providing evidence of inner-city residents (principally black and poor) paying more for food and prescription drugs than those in the suburbs, Focus: HOPE has gone on to provide tangible means to provide skills development, notably through its successful Machinist Training Institute (founded in 1981). Success is measured one individual at a time.
Inforum
Originally called the Women’s Economic Club, Inforum is one of the largest and most prestigious business forums in the nation, with more than 2,200 members from a broad cross-section of Michigan’s business community. Its mission - to strengthen the business environment by creating opportunities for women to lead and succeed - is achieved through the forging of alliances, discussion of vital civic and business issues and establishing connections that help accelerate careers. The organization’s leadership training program (offered through the Inforum Center for Leadership) is a well-respected initiative that continues to grow in stature. Monthly events in southeast, central and west parts of the state are important ways for Inforum members to network. The 2007 version of its Michigan Women’s Leadership Index was released in October.
Jewish Federation of Metro Detroit
Positioning itself as the major instrument of Jewish philanthropy and volunteerism in the Detroit area, the Jewish Federation of Metro Detroit sees as its mission the promotion of health, education, spiritual and cultural identity of the Jewish people worldwide. The organization teams up with others for raising and allocating funds to provide life-saving and life-enhancing humanitarian assistance, translating Jewish values into social action on behalf of the nearly 100,000 Jews in the Detroit area. Locally, a family of 19 social service agencies and schools are instrumental in meeting that need. Worldwide, funding impacts the lives of thousands of Jews throughout Israel, in the former Soviet Union, and in 60 countries around the world. Numerous initiatives include the Alliance for Jewish Education and ElderLink, a network of services for older adults.
Mexicantown Community Development Corporation
Founded in 1989, the nonprofit organization seeks to foster economic development in the Hispanic community of southwest Detroit. The job includes helping to eliminate blight, creating skilled positions for residents and providing opportunities for small business development by local entrepreneurs. Mexicantown Developments promotes the area’s restaurant, shopping and cultural district to audiences across southeastern Michigan and cultural programs and activities that educate and enrich the lives of residents of the neighborhood and the southeast Michigan region. It also provides entrepreneurial training and incubation to increase the economic self-sufficiency of neighborhood residents and advocates for physical improvements and maintenance in the Mexicantown district, including parks and streetscapes. It has also spearheaded the use of vacant land, notably with the Mexicantown International Welcome Center and an area for specialist merchants–Mexicantown Mercado. Its Mexicantown Hubbard Communities has been designated a district by Detroit’s Office of Neighborhood Commercial Revitalization Re$tore Detroit! Program.
New Horizons Rehabilitation
Services, Inc.
Persons with disabilities come from a broad spectrum of ethnicities, something of which New Horizons is keenly aware. An active Diversity Team is part of the strategy to more effectively serve different cultures. Last year New Horizons hosted a successful National Association of Multicultural Rehabilitation Concerns Conference, joining several hundred rehabilitation professionals in celebrating diversity while collaborating to achieve professional excellence. The organization boasts a 98 percent satisfaction rate, an 80 percent placement rate for people referred to New Horizons for employment and a 10 percent increase in the number of persons served. Of those who began a vocational evaluation, 93 percent completed the program. CEO Stan Gramke received the 2006 Management Excellence Award from the National Industries for the Severely Handicapped.
On Wheels Incorporated
Since launching its African Americans On Wheels magazine in 1995, the organization has had a leadership role in promoting diversity within the automotive industry. It’s an effort that has produced real fruit, including the development of diversity councils at such brand name multinationals as Jaguar and Land Rover. The organization, led by Randi Payton, also lays claim to having spurred the creation of diversity advertising departments at many of the nation’s largest automakers. Only after On Wheels publications (among them Asians On Wheels and Latinos On Wheels) targeted the audience did others begin to follow suit. On Wheels’ annual Urban Wheel Awards program, held in conjunction with the North American International Auto Show, showcases those who embrace the tenets of diversity in their business practices.
Presbyterian Villages of Michigan
Its name aside, Presbyterian Villages of Michigan sees its role as serving older adults of all faiths. Further, the organization, founded in 1945, seeks to “create new possibilities for quality senior living.” It does so primarily through a network that includes apartments (some of which are subsidized), assisted living centers, nursing homes, continuing care and Savior’s Grace home care services, among others. Services provided by the organization’s foundation include assisting those whose financial resources may be depleted. One of Presbyterian Villages of Michigan’s “behavioral values” is being inclusive, demonstrated by its welcoming of all residents-¦without discrimination. The organization continues to expand both the scope and depth of its mission by working with various partners and affiliates, including health care providers and organizations that advocate for seniors.
Nothing is more critical to both the short and long term success of a family business than the transition between the first (G1) and second (G2) generation. Fewer than half of family companies make it from the first to the second generation. One might think that this generational transition would be easier than successive transfers, but that couldn’t be further from the truth. The first transfer is the toughest, and yet, if done well, it will become the cornerstone for generations to come.
Entrepreneurial founders are typically “type A” personalities. They are strong leaders with high intelligence. They are driven to success - so driven that they often neglect their family during the early years, causing future baggage. They treat their business as their “baby,” giving it equal status with their other children and being just as concerned with its well-being and future. Mind you, as the business goes through this growth phase, these matriarchs and patriarchs believe that what is good for the business is good for the family and vice versa. They frequently express - formally or not - that value to the family and value to the business are one in the same. As success and wealth accumulate, the founders begin the soul searching of what’s next for both the family and the business.
Enter the next generation. They enter the business for a variety of reasons: to remain close to their parents, financial security, fast-track careers, future ownership, family legacy, sibling togetherness or just because it is expected. Regardless of the reasons for entry, once employed, future ownership is assumed, as is ascent to management control. These topics are rarely discussed and even less frequently planned. Parents remain in control until they either willingly give up part of the kingdom or events (like death or disability) require change. Let’s face it: death or disability is less likely than a more normal sequence of events. Consequently, the path of succession becomes a long and winding road.
As time passes, the children are more firmly entrenched in the management of the business and the seniors are semi-retired. Semi-retirement lacks any real definition - it seems to mean less work, but not less compensation or less control. This phase is very confusing to everyone. Parents don’t understand why their children don’t accept that they have made this all possible and they will control the purse strings for as long as they like. Middle-aged children have been waiting for a chance to really take over and prove themselves without parental oversight. Employees wonder: who is the boss? Outsiders try to define who makes what decisions only to find that it changes routinely. It is very confusing - and still no one wants to come to the table to establish a plan.
The problem is that the stars aren’t aligned and no one is even looking through the telescope. Parents want financial security and what is best for the family. They see that as being accomplished through their life’s work - the business. They usually want to remain in control until they feel confident that their goals will be met-¦financial security, family harmony and family legacy. All three are important and the potential failure of any one is just cause to remain in control.
The children don’t necessarily see it that way. They can buy into financial security for Mom and Dad, but not necessarily for the inactive siblings, or to the extent that wealth bypasses them and passes to the grandchildren. Since Cain and Abel, sibling rivalry has existed in most families with more than one child and the children aren’t always as committed as Mom and Dad to family harmony. As for the family legacy, frequently the children find working under the boardroom portrait of Dad is demeaning. That is not to say that they mean any disrespect, only that family legacy to the children is a broader definition than it is to Mom and Dad and goes beyond “honor your mother and father.”
How do you align the stars?
Try focusing the telescope. Some families do this by developing a Vision/Mission Statement whereby the vision is the long range goal and the mission is how to get there. Then they apply decisions to the Vision/Mission Statement to be sure of the fit-¦if it doesn’t fit, they refocus the telescope.
One caveat to this approach is that everyone must buy into the Vision/Mission Statement or the telescope can’t be focused. For example - if the real vision is family wealth accumulation, then selling the business might be a better focus than succession. The current CEO (G2) might see that as failure under his or her watch, even though it best meets the vision. Family harmony would suffer and the family legacy would need to find a direction outside of the business. All these issues are exaggerated in a G1 to G2 succession, compared to future transitions where decisions are much more objective because family issues have become diluted.
Even when the stars are aligned there is a control issue. Semi-retired founders seldom give up control over their baby easily or willingly. While they have a great deal to offer, they struggle with how to offer it without being seen as overbearing control freaks. Even if financial security is an issue of the past, founders find it almost impossible to let go of their baby.
Try the following to make the transition easier:
Draft a clear Vision/Mission Statement and gain buy-in from all stakeholders, then focus decision-making on meeting the criteria set forth.
Address family financial security, family harmony and family legacy directly and transparently and include all stakeholders.
Develop retirement activities outside of the business so that the business does not become the retirement activity.
Empower business decision makers with real control and formally evaluate the results.
Separate the importance of family from the value of the business asset.
Businesses should be considered assets that can be bought and sold. They should not be the continental divide between families. The business should be seen as an instrument to help provide family financial security, family harmony and a family legacy.
Richard Segal is the chair of the Family Business Council, a membership organization of family-owned businesses. He can be reached at [email protected].
W. J. Beal joined the Detroit Institute of Arts as director, president and CEO in 1999, attracted by the prospect of leading the museum during a major renovation and expansion. Since then, the native of Great Britain has overseen two major capital campaigns and the redesign of the museum. Now the collection is being reinstalled with new tools to help visitors better understand the art and its cultural context. The museum will reopen at 10 a.m., Friday, Nov. 23 with a 32-hour grand opening celebration.
Corp!: What was the catalyst for the building renovation? Beal: It started as a kind of retrofit. The original building was constructed in 1927 with additions in 1966 and 1971. The infrastructure was getting old, including the 70-year-old air handling system. Moisture was getting in and metal pinions which fastened pieces of granite, were coming out. Along with the renovation, we had the opportunity to make it easier for people to get around-to provide sensible way-finding through a series of galleries arranged along a spine or main street on the first and second floors.
Corp!: How did you develop internal and external support for the project?
Beal: Certain work absolutely had to be done and the only question was how to afford it. In 1998, a standalone 501(c)3 was established so we could raise money.
Corp!: Many museums have been expanding and changing their focus. How do you describe the DIA’s mission today?
Beal: The museum used to take the visitor on the “Grand Tour.” We no longer teach the history of art. We want the DIA to provide a visitor-centered experience where people can make personal connections with art and understand the human purpose of the art. We are focused on the general visitor.
Corp!: What did you learn from the focus groups? Beal: We learned what creates or destroys a museum experience in great detail. It was transformational for me. When we started, we went to other museums such as the Victoria and Albert in London. The reinstallation ideas came from the whole DIA staff. Now other museums are coming here.
Corp!: What can a visitor expect to see after the November grand re-opening?
Beal: I hope they will see a vibrant and engaging institution where art is treated with respect but where a much more relaxed form of behavior is acceptable.
Corp!: What percentage of the museum’s collection will be displayed at any one time?
Beal: About 5,000 works-10 percent of the entire collection. Some works are light-sensitive and can only be on view for a short time. Other pieces are loaned out.
Corp!: As the renovation and reinstallation projects near completion, what have you learned?
Beal: The only really big blow was discovering that there was asbestos in places which we didn’t know about. That slowed the demolition work and cost $40 million to remove.
Corp!: What do you like to do in your free time?
Beal: I enjoy reading and listening to music. I used to do a fair amount of cooking. I usually read three books at a time-a literary work, a history and a murder mystery. I listen mainly to classical music, including contemporary classical music, although I do like blues and I was in a rock band.
We live in a fast-paced society. Most people are in a hurry to get somewhere before the other guy. In many cases it’s a me-first mentality and the heck with the other person. How long will this go on? Where is our sensitivity or courtesy for others?
There are many reasons for the speed to nowhere: computers, television, Internet, cell phones, iPod, BlackBerry, e-mails, movies and game consoles to name just a few.
If you are speeding there are many things you will miss en route to your destination. If you slow down a little, you will have time to “Stop and Smell the Roses,” as Mac Davis says in his song. Or as singer Kenny Chesney says, “Don’t Blink.” He says the secret of life is don’t blink. Before you know it you’re 6 years old. Take a nap and you’re 25 when you awaken. “Trust me friend, a hundred years goes faster than you think. So don’t blink.”
Things you can do today: help a fellow employee; go over and say hello to a neighbor you haven’t seen for a long time; visit a hospital and bring some cheer; go shopping for an older person who is unable to or does not have a car; read a story to a child; buy a bouquet of flowers for your spouse; give a helping hand to your favorite charity; give your son or daughter a hug. The list goes on and on.
Fast or slow. Which road should you take? The one with the path, or the one with no path? “Two roads diverged in a wood, and I/I took the one less traveled by,/and that has made all the difference.” So wrote Robert Frost in “The Road Not Taken.”
The problem today is that we are all working hard and trying to get somewhere, anywhere, fast. Is it worth it? As Davis says in the lyrics of his song: “You’ve got to count your many blessings everyday. There’s a whole lot more to life than work and worry.”
In today’s business world, the existing rules of competition no longer apply.
Today, businesses must compete with more than just the guy or gal down the street. They must compete on the Internet, e-mail, eBay, Google, Yahoo and various companies in their industry.
Former Secretary of State Colin Powell once said, “There are no secrets to success: Don’t waste time looking for them. Success is the result of perfection, hard work, learning from failure, loyalty to those for whom you work and persistence.”
But the most important thing is to know your competition.
Who are they? What makes them successful? What do they have that you don’t have? Are their employees pleasant? How does their service rate? Do they carry a full line of merchandise? What perks, compensation and benefits do they offer employees that you don’t have?
To what extent are you or your competition committed to improving the local community? Do you encourage people of differing human qualities (diversity and multiculturalism)? Do you reward your employees for a job well done, or through an awards program? Are you marketing, merchandising and advertising your products and services to best attract and keep customers?
Over the years, we’ve seen various technologies emerge, including the telephone, the telegraph, the mimeograph machine, the photocopy machine, the fax machine, the calculator, the computer, cell phones, the BlackBerry and teleconferencing, etc.
But what will bring customers back more than anything is to have the best personal service unmatched by your competitors along with quality products. Remember, business success is a long-term thing, not short-term.
Sports teams and the arts have cheerleaders to inspire them to do good or better. Businesses, educators, labor unions and all people of Michigan should also be cheerleaders and keep a positive and upbeat attitude.
Soon after accepting a buyout from one of the world’s largest employers - General Motors Corp. - Lorna Utley stepped up to an invitation to serve as president and CEO of Goodwill Industries of Greater Detroit. Her new crusade is finding jobs for those with the toughest barriers to employment in a tough economy.
In 2005 Governor Jennifer Granholm declared that Gladys Beckwith, executive director of the Michigan Women’s Historical Center and Hall of Fame, single-handedly made sure that the contributions of Michigan women are known to all and that because of her, young women growing up in the state will know that all things are possible in their lifetime. 
After 15 years as a pediatric surgeon, Dr. Robert H. Connors was appointed president of Helen DeVos Children’s Hospital, a 14-story, 440,000-square-foot facility projected to cost $190 million. 
Ismael Ahmed
John Akouri
Dennis Archer
Sarah J. Bates
Sharon Cannarsa
Thomas Clarkson
Paula D. Cunningham
Tarik Daoud
William Davidson
Deborah Dolman
Frederick Feliciano
Joel I. Ferguson
V. Diane Freeman
Jane C. Garcia
Yousif Ghafari
William Hardiman
Darryl Hart
Gregory Jackson
Vinnie Johnson
Joyce Keller
Daniel Oglesby
Nikki S. Olyai
Dominic Pangborn
David H. Segura
Salman Sesi
Ron Shahani
Herb Strather
Jeff Styers
Denise Yee
