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All Posts by Steve Jagler

Can Wandell steer Harley back to Hog heaven?

I have never played poker with Harley-Davidson Inc. chief executive officer Keith Wandell. But if I did, and he went "all in" with his chips on a crucial hand, I'd look him in the eyes. And then I'd probably fold.

Wandell is "all in" with Harley. The stakes are high, and he's playing his hand accordingly.
As they say, drastic times call for drastic measures. Harley's core customers - people willing to plop down $40,000 or so for a new motorcycle - have been steadily dwindling. And even if they are willing to fork over that kind of coin, good luck obtaining the financing.

Harley's earnings have fallen for nine consecutive quarters.

Wandell, who built a track record of squeezing efficiencies out of operations in his years as an executive at Johnson Controls Inc., was brought in last year to do the nasty, painful hatcheting at Harley.

So far, he's been up to the task.

Wandell is laying off thousands of people and closing plants. He recently ended the Buell Motorcycle line.

Wandell is divesting Harley's MV Agusta venture in Varese, Italy.

He's threatening to close Harley's plant in York, Pa., unless the company receives the right concessions from the employees there and the right incentives from the local governments there. That decision will come in December.

With all of that chaos and all of that carnage, you might think Wall Street would be skeptical about Milwaukee Iron. You would be wrong.

Stock analyst Craig Kennison of Robert W. Baird & Co. Inc., is downright bullish on Harley, raising his outlook for the company to "outperform." Kennison is predicting a "cyclical rebound and turnaround story" for Harley.

"We expect shipments to bottom in 2009 following efforts to slash dealer inventory. Meanwhile, we see a dynamic turnaround story led by a bold CEO driving better performance. We see an opportunity to earn $2.25-$2.50 per share at modest production levels as Harley exits unprofitable brands, renegotiates York, and expands internationally. At 11-12x that expectation, we consider Harley the best value in our recreation space," Kennison wrote.

"Operations meet expectations. Harley reported a noisy quarter, reminiscent of bar-time at a Harley rally. Beyond the noise, however, key operating metrics met our expectations … Focus on post-restructuring earnings power. We see the potential to earn $2.25-$2.50 per share on a modest improvement in shipments (250K bikes) as the restructuring plan unfolds. New CEO Keith Wandell is taking bold action to refocus the business and build around the Harley-Davidson brand," Kennison stated.

Kennison is predicting that much of Harley's new growth will come from overseas, as the company plans to add 100 to 150 international dealers to drive shipments to 40 percent of bikes sold by 2014.

So, Wandell's legacy at the Harley helm awaits him. He could go down as a cruel butcher who cut the life out of one of America's proudest brands. Or he could follow in the footsteps of predecessor Richard Teerlink as a corporate savior and a turnaround genius who pulled Harley out of the scrap heap.

Either way, it will be a painful, bumpy ride.

 

Steve Jagler is executive editor of BizTimes Milwaukee.

'We are micromanaging our employees to death'

A natural reaction for many companies in the Great Recession has been to tighten managerial controls on everything from office supplies and cold-call sales schedules to travel expenses.

To be sure, frugality, accountability and efficiency have their places in the first aid box of successful business strategies - to a point.

It's when micromanagement goes too far, however, that it costs American companies up to $300 billion a year, according to Brian Carney and Isaac Getz, authors of "Freedom, Inc," a new business book subtitled, "Free Your Employees and Let Them Lead Your Business to Higher Productivity, Profits, and Growth."

The authors challenge the mindset of micromanaging "how companies" that establish a strong corporate hierarchy, where creativity and out-of-the-box thinking are discouraged, "where ideas die on the long journey through the corporate committee maze."

Instead, the authors celebrate "why companies" that empower their employees with an understanding of why they're doing what they do and the power to make decisions based on that knowledge.

The book, which is published by The Crown Publishing Group in New York, chronicles the success of "superstar why companies," two of which are based in southeastern Wisconsin.

Sussex-based Quad/Graphics Inc. founders Harry and Tom Quadracci are cited in the book for being years ahead of their time when they created QuadTech, a division to sell the company's innovative equipment, even to the firm's competitors.

The Quadraccis empowered Karl Fritchen to start QuadTech's own local sales and distribution network in Japan, rather than partner with just one Japanese company.

"OK, sounds like a good idea," Harry Quadracci told Fritchen. "I want you to stay in Japan, find office space, hire staff and then when you're all done, come back to the board and explain why we did this."

Fritchen recalled, "He (Harry Quadracci) didn't say, 'Put together a plan, present it to the board, get approval, then go back and do this.' My previous employer was so radically different that I just fell in love with this place immediately when I walked in."

Fritchen went on to become the chief executive officer of the highly profitable QuadTech.

"The feeling you get as an employee to have that happen to you, you want all your employees to have that same type of feeling and commitment to your organization," Fritchen said.

The book also chronicles how former CEO Richard Teerlink transformed Milwaukee-based Harley-Davidson Inc. from being a stodgy, old-line manufacturer into a dynamic, celebrated, publicly traded iconic brand. The throttle of the company's turnaround was accelerated by Teerlink's "liberating" leadership style that created a culture of devotion and ownership among its workforce, according to the book.

Teerlink's successor, Jim Ziemer, who started his career at Harley as a union worker, said he inherited a leadership culture that he grew to understand and appreciate. "It is like a religion, it is spiritual. You've got to believe in it and act like it's a religion … Sometimes, maybe, command and control is great, but … if you don't have the same leader, then it does not sustain itself. If it is a religion, it can sustain itself."

The authors contend, "We are micromanaging our employees to death … Freedom works because we don't know what we do not know, and because some of what we think we know is wrong – or soon will be. If we can harness the additional knowledge of more of our peers, we can move much faster than the bureaucracy. And the only way to harness that knowledge is to allow those who possess it to act on it when necessary, right away – NOW – without waiting for some boss to approve it."

 

Steve Jagler is executive editor of BizTimes Milwaukee.

Barrett not likely to run for governor

Democratic insiders believe Milwaukee Mayor Tom Barrett will decide not to launch a campaign to be Wisconsin's next governor, and some say Gov. Jim Doyle is "shopping" for another candidate to challenge Barbara Lawton for the party's nomination.

Lawton, who is Wisconsin's lieutenant governor, picked up her most impressive endorsement yet Monday, when former Democratic Party of Wisconsin state chair and congressional candidate Matt Flynn announced he will support her bid for governor.

"The next governor of Wisconsin needs to be someone focused on creating new jobs. Barbara Lawton will be that governor. She is a strong leader who will fight for the economic security of our families and focus on keeping people on the job," Flynn said.

Barrett has not yet declared publicly whether or not he will run for governor.

When asked if he had contacted Barrett to inquire about his intentions, Flynn replied, "No, but I have been in contact with a member of his staff. And I left him a message."

Flynn added, "I think very highly of Tom Barrett. He's a great mayor and would be a great governor, but I don't think he's running."

Winning the endorsement of a big hitter such as Flynn, who is an attorney and a partner at Quarles & Brady in Milwaukee, is a major coup for Lawton.

Flynn's endorsement adds to a growing roster of key Lawton supporters from Barrett's backyard, including: Milwaukee County Democratic Party chair Martha Love, state Sen. Jim Sullivan (D-Wauwatosa), and Milwaukee County Supervisors Peggy West and Marina Dimitrijevic.

"I'm honored to have the support of former Democratic Party of Wisconsin chair Matt Flynn," Lawton said. "From his service in the Navy to his work as chair of the Democratic Party of Wisconsin, Matt Flynn is deeply patriotic and has built and reinforced his life-long commitment to D/democratic ideals. I am proud to have the endorsement of such an influential leader in our state's Democratic Party."

 

Lawton's credentials

Like most lieutenant governors before her, Lawton, 58 has served the past seven years in virtual anonymity.

The liberal Capital Times in Madison calls Lawton "Wisconsin's green leader." She has been the chair of the Wisconsin Arts Board of the National Lieutenant Governors Association.

Lawton was the founder of the Greater Green Bay Area Community Foundation and the Multicultural Center, and she has served as an advisor to Entrepreneurs of Color and on various boards, including that of the Northeast Wisconsin Technical College Foundation. She also has served as a consultant to Wisconsin businesses expanding internationally.

Lawton, a graduate of Waterford High School, and husband Charles "Cal" Lawton have two grown children and four grandchildren. The Lawton family lived in Green Bay for more than 30 years. Their permanent home now is near Algoma.

She took office as Wisconsin's 43rd lieutenant governor on Jan. 3, 2003, and was re-elected in 2006.

 

Will a challenger emerge?

Although Lawton's relationship with outgoing Democratic Gov. Jim Doyle has been icy, at best, Flynn does not foresee any significant challengers in the primary.

"I think she'll be unopposed. I've been impressed that she's been excited about running right from the beginning," Flynn said. "There just simply is nobody else that I've heard of that is thinking of running."
However, longtime Milwaukee Democratic supporter Evan Zeppos expects another candidate will emerge to challenge Lawton. That challenger could come from the private sector, Zeppos said.

"I'd be surprised if it isn't a contested primary. I think it could be anyone who could raise money and anyone that could bring a fresh perspective to the Democratic primary. I think it could be someone who is not an elected official," said Zeppos, who operates a public relations firm in Milwaukee. "But it won't surprise me if someone who is an elected official or a former elected official, thinks, 'I could run.' Barbara Lawton hasn't raised a great deal of money yet. I just don't think it will end up being that she's the only Democratic candidate."

A private sector candidate could run on a pro-jobs plank without the political baggage that would be carried by a Madison-based Democratic insider, such as Lawton or Dane County Executive Kathleen Falk.

The Wisconsin gubernatorial race will be a top priority for both national parties and could likely attract a record $6 million to $8 million in political resources. The Obama administration is playing an interactive, if not interventional role, in the key Democratic primary races for 2010.

One Wisconsin Democratic insider, who asked not to be identified for this report, asked, "Will the White House settle for Barbara Lawton?"

Another Democratic insider said, "Doyle is shopping for another candidate. He does not think Lawton can win. I know he is. I'm aware that the governor is out there recruiting candidates."

 

Contested primaries are best

The traditional political wisdom is that contested primaries are beneficial to candidates because the process vets out the candidates and keeps them in the news cycle longer and more often.

Case in point: the presidential race of 2008. Democrats Hillary Clinton and Barack Obama beat each other's brains out in a long contested primary, keeping themselves in the headlines every day. Republican John McCain, who had sewn up his nomination relatively early, struggled to stay in the public's eye.

Campaign donors also can become complacent in an uncontested primary.

The Republicans in Wisconsin can be assured of a hotly contested primary, featuring rivals Milwaukee County Scott Walker and former Congressman Mark Neumann of Janesville.


Steve Jagler is executive editor of BizTimes Milwaukee.

Turbulent times require bold leadership

In the best of times, effective leadership is critical to the success of most companies. Now, you toss in the worst recession since the Great Depression, and strong leadership becomes a do-or-die proposition for most organizations.

The question is: are effective leaders born, or can they be taught? In reality, that need not be an either/or supposition.

There's no doubt that some people are simply blessed (or cursed?) with natural abilities to lead others. Call them the alpha dogs, call them generals, call them what you will. They possess some degree of charisma, charm, persuasion or intimidation that inspires other people to follow their lead.

However, many people in corporate American can learn to become better leaders by emulating and adopting the best practices of other successful leaders.

Tempo Waukesha, an organization of professional women, will present an opportunity to learn from some of the best leaders in Wisconsin at its Pulse luncheon on Tuesday, Oct. 27.

The event will include a panel discussion featuring:

  • George Dalton, entrepreneur and founder of Fiserv Inc. and Novo 1 Inc.
  • JoAnne Brandes, founder and senior fellow of the Carroll University Center for Leadership Excellence and former executive vice president of JohnsonDiversey Inc.
  • Bill Henricks, chief operations officer for Rogers Partners in Behavioral Health in Oconomowoc.

I will have the honor and the privilege of moderating the discussion, and I can't wait to hear what these leaders have to say about "remaining positive in turbulent times."

 

I could listen to George Dalton talk for hours. In fact, I have. He has a track record of bold, fearless leadership. He co-founded Fiserv in 1984, at the onset of the savings and loan crisis - a precarious time to start a company whose customers are banks. As the chief executive officer of Novo 1, George is on the cutting edge of strategies for customer interaction. His is a lifetime of continuous learning, and he has much wisdom to share.

JoAnne is a highly sought-after speaker who has served on the boards of directors at Anderson Windows Corp., Bemis Manufacturing Corp., Metrix Inc. and Highlights for Children Inc. Wherever she goes, she is asked to lead. That's why she also has served as a trustee at Carroll University, a regent at the University of Wisconsin System Board of Regents and a director at St. Luke's Medical Center in Milwaukee. She was the recipient of the University of Wisconsin-Eau Claire Lifetime Excellence Award earlier this year. JoAnne says leadership is important, not only at the top of an organization, but at every level.

Bill has been working in the mental health field for nearly 25 years as a psychologist and health care administrator. Over the years, he has developed numerous behavioral health programs that help people recover from mental illness and/or substance abuse and live more balanced and productive lives. Bill will discuss what leaders can do to increase their own personal resiliency and how they can foster more resilient employees.

The luncheon will take place at the Country Springs Hotel in Pewaukee. You are invited to learn more about fearless leadership in turbulent times. For additional information, click here.

 

Steve Jagler is executive editor at BizTimes Milwaukee.

Twitter is no place for twits

When do your employees stop becoming representatives of your company and start becoming private citizens? When are they officially off the clock? When they walk out the door at the end of the work day, are they private citizens who are no longer held to the same standards of behavior? When they get home, are they no longer considered to be on the job?

The process of establishing the answers to those questions is becoming murkier by the moment in this emerging age of social media.

Case in point: Nick Barnett. While rehabilitating from a nasty knee injury and operation this year, the Green Bay Packers linebacker became a Twitter sensation, attracting more than 17,000 followers.
Most of his "Tweets" were innocuous references to the tedium of everyday life, such as what he was having for dinner or what he was watching on television. He ended many of them with the phrase LOL (laugh out loud).

Then came the second game of the season, a disappointing Packer loss to the Cincinnati Bengals. Barnett did not have a good game. After he finally made a tackle late in the second half, he celebrated with some sort of childish Samurai sword dance.

His Twitter followers immediately mocked him. Shortly after the game, Barnett retaliated with the following Tweets:

  • "Oh yea for everyone that had something to say after I celebrated for making a takle for lost KISS MY (expletive deleted) ..."
  • "I was trying to get defense fired up... And so what if I missed the takle before am I suppose to stay in a funk about it!?? Get a life."

A few hours later, Barnett apologized for letting his emotions get the best of him. By the next morning, he announced that he will no longer Tweet this season. He wrote an extended Tweet (unedited): "Hey everyone.. I done somethinking and I have decided to stay off Twitter unroll next offseason.. I am a emotional person and sometimes With this Twitter thing I forget that everything is public.. Sometimes I feel I am talking to my freinds and just talk.. So I am going To pull myself away from that.. Thanks to all the people who supported me thru my rehab and tough times and for the haters well god loves u."

 

At what point did Nick Barnett stop becoming a Green Bay Packer and start becoming a private citizen with his own identity in the world? Should the Packers have held him accountable for how he treated … their customers?

What about your company? If your people go home, and they write something offensive on Twitter, or Facebook or LinkedIn, will they be held accountable by your company? Should they be?

I don't have all of the answers to those questions, even though BizTimes Media is on the cutting edge of this social media revolution. Thanks to reporters Alysha Schertz and Eric Decker and managing editor Andrew Weiland, we are way out in front of most media outlets.

Like many of you, we're not sure where this all goes, but we want to be along for the ride.

I have told our people that I do not have the time nor the inclination to police every single entry they post on social media sites. However, I also told them I will reserve the right to hold them accountable. So, they should write with the presumption that I may see their content.

In many ways, that's regretful. But the reality is that in a sense, none of us is ever really off the clock anymore. Because of advancements in technology, the line of distinction between our professional and personal lives has been blurred. We use our cell phones and laptops to make dental appointments for our children one moment and communicate with a business client or a co-worker the next.

So, I guess we all best be careful when we LOL.


Steve Jagler is executive editor of BizTimes Milwaukee.

Chicago's loss was America's loss

Chicago's failed bid to be the host of the 2016 Summer Olympics was a terrible loss for:
(A) Chicago
(B) Milwaukee
(C) The Midwest
(D) President Barack Obama
(E) America
(F) All of the above

The correct answer is (F). Make no mistake and accept no spin, the Obama administration suffered a substantial wound on this one. As I wrote last week, the president was making a serious political miscalculation by going to Copenhagen, Denmark, to accompany his wife and make a personal pitch to the International Olympic Committee on behalf of Chicago's bid to host the 2016 games - unless his administration had a strong premonition that his appearance would seal the deal.

By going to Denmark, Obama put his signature on the whole thing, win or lose.

As he prepared to fly to Denmark, Obama's critics pounced on him, saying he was taking his focus off of more serious things such as the economy, health care reform, the Middle East and Afghanistan. The critics implied that Chicago's Olympic pitch was not worthy of the president's time.

They were wrong. It was. And that's what makes the snub even more painful for … America.

Some of the shrillest critics rejoiced in Obama's failure. One giddy local talk show host even put a headline on his blog that read, "Barack, Michelle, and Oprah, Oh My!" For some, it has become more important that Obama fail than for their country to succeed.

And make no mistake, the Olympic fiasco is a failure for America, Obama and, to some degree, Milwaukee.

Don't think so? As the clock ticked down on the IOC's decision, I put out a call seeking comments from Milwaukee's business and civic leaders, some of whom lean politically to the left and others no doubt lean to the right. Every one of them was preparing to celebrate Chicago's selection to host the 2016 games.

They had no doubt whatsoever that the new development and infrastructure improvements of an Olympics in Chicago would spill over into southeastern Wisconsin. I asked them to share with us their thoughts if Chicago won the games and their thoughts if Chicago lost the games.

Of course, we posted their comments about Chicago's defeat on our web site.

Now, I'd like to share with you some of the comments they prepared for the moment had Chicago been successful in its bid. Taken in sum, they dramatically illustrate what could have been:

"Milwaukee will shine in the glow of the international spotlight placed on Chicago, and we will work to use that light to our economic development advantage. If it speeds up rail connections, all the better. Be the first time I rooted for a Chicago sports win!"
Tim Sheehy, president, Metropolitan Milwaukee Association of Commerce

"For too long, we've been unable to come to a decision on whether to expand our transit options, invest in our facilities, parks and public infrastructure. Well, in 2016, the world is coming to dinner and it is time for us to start to set our table. We can certainly host events and training facilities, athletes and visitors all in wonderful venues across our region. And we can also show the world that we can 'just do it' in Milwaukee and regain our place as a city on the move."
Julia Taylor, president, Greater Milwaukee Committee

"The games will be the most significant impact on our local economy in recent history as investments in Chicago will undoubtedly spill over on to infrastructure and amenities north of the state line."
Jim Villa, president and CEO, Commercial Association of Realtors Wisconsin

"The world's eyes are now squarely focused on Chicago and the larger region. There is no question that we now have a great opportunity at our doorstep to tell our story to the world."
Dean Amhaus, president, Spirit of Milwaukee

"Hopefully by 2016, we'll have a rebuilt I-94 corridor and additional rail options between Milwaukee and Chicago. Together with Mitchell International Airport serving as another gateway, we should be positioned to capture some of the Olympic excitement in the form of additional economic impact for the region."
David Fantle, vice president, Visit Milwaukee

"The Olympics will put metro Milwaukee and our Midwest region in the global limelight as a major destination and an economic contender. That visibility will translate into jobs and economic growth ... if we are prepared to capitalize on it."
Kerry Thomas, executive director of Transit Now

"We couldn't be more pleased by Chicago's win today. We've been supportive of Chicago's bid from the outset and now we look forward to working with the organizers, Mayor Daley and their entire team to see what supporting role Milwaukee can play in the games."
Milwaukee Mayor Tom Barrett

"Mitchell International Airport has already been called Chicago's third airport so we fully expect to bring thousands of Olympic visitors through the Milwaukee gateway And with Wauwatosa native Pat Ryan heading the Olympic effort for Chicago, Milwaukee has a great friend in the games who will look for opportunities for our community to get involved."
Milwaukee County Supervisor Scott Walker

"This Olympic decision is great news for Milwaukee County. I am pleased that President Barack Obama led our nation's final push to secure these games for Chicago. The total economic impact from the games is expected to be $22.5 billion. If we can capture just one percent of that impact, that's still a $225 million boost to the economy in Milwaukee County. Ten percent is $2.25 billion. The positive effect this will have on our economy and sales tax collections should not be underestimated.
Milwaukee County Executive Lee Holloway

"Commuter rail will allow our city to demonstrate to the world the assets and opportunities in Racine. Our chances of bringing Olympics tourists and Olympics spill off into Racine diminishes tenfold if we do not have commuter rail."
Racine Mayor John Dickert

"This economic impact will probably be bigger than a Super Bowl that the Packers play in. It's a unique situation. The Metra comes right into Kenosha, and (Olympic athletes') families may look to have their residences here and take the train right into the Olympic areas."
Kenosha County Executive Jim Kreuser

 

Ouch. The Midwest has never hosted the Olympics. And that's a shame.

Steve Jagler is executive editor of BizTimes Milwaukee.

In search of the real heroes

Out of all the public programs I get wrangled into emceeing or moderating during the course of the year, the BizTimes Health Care Heroes Awards program is undoubtedly my favorite. That's because the winners of the awards tend to be real people - make that real humble people - who are just doing the right things that make this world a better place.

Do you know someone who is making a positive difference on the front lines of health care? BizTimes Milwaukee is accepting nominations for the 2009 Health Care Heroes Awards, honoring companies, individuals and organizations for their contributions to improving health care in southeastern Wisconsin.

Health Care Heroes Awards honor those who epitomize the spirit embodied in the word "hero" in the delivery of health care to the community. The goals of the program are to recognize excellence, promote innovation, encourage emulation of successful programs, educate the general public, contribute to the enhancement of the value and quality of health care and, ultimately, give recognition to those deserving.

Entries are judged on accomplishments in the following categories:

  • Corporate Achievement in Health Care - Honors a company that has successfully implemented an innovative health benefits plan or a company that has solved an acknowledged problem in health care administration. Judges will consider the uniqueness of a benefits plan, its popularity among enrollees, its cost-effectiveness, the complexity of the problem solved and the effectiveness of the solution or solutions.
  • Advancements in Health Care - Honors a company, organization or individual primarily responsible for a scientific discovery or for development of a new procedure, device or service that can save lives or improve quality of life. Judges will consider the potential impact of the innovation.
  • Community Service - Honors an individual or organization for leadership in focusing on solving a particular health care issue.
  • Physician - Honors a physician whose performance on the job is considered exemplary by patients and peers. Judges will consider evidence of positive clinical outcomes, patient satisfaction and testimonials from peers and administrators.
  • Nurse - Honors an individual from the nursing field whose performance on the job is considered exemplary by patients, peers and physicians.
  • Health Care Staff - Honors an individual who works in the health care field and is committed to providing quality comfort and care. Winners could include therapists, technical support staff, specialists, certified nursing assistants, activity assistants, caregivers, etc.
  • Volunteer - Honors an individual who has done volunteer work for the good of one or more people or the entire community. Involvement can be past and/or present.

Nominees must perform their service in Milwaukee, Waukesha, Kenosha, Racine, Walworth, Ozaukee, Washington or Sheboygan counties.

 

Recipients of the Health Care Heroes Awards will be profiled in a special section of an upcoming issue of BizTimes Milwaukee and will be honored at a breakfast on Thursday, Dec. 10, at the Crowne Plaza Milwaukee Hotel in Wauwatosa.

To nominate a person or an organization for a Health Care Heroes Award, visit www.biztimes.com/hero.

 

Steve Jagler is executive editor of BizTimes Milwaukee.

Chicago can't squander Olympic opportunity

It turns out that the city of big shoulders may have some feet made of clay.

You perhaps might think that having an opportunity to host the 2016 Summer Olympics would be a unifying call to action for the city of Chicago.

But apparently not so.

Nearly as many Chicago residents oppose Mayor Richard Daley's Olympic plans (45 percent) as support them (47 percent), according to the latest poll by the Chicago Tribune.

And Chicago residents increasingly and overwhelmingly oppose using tax dollars to cover any financial shortfalls for the Games, with 84 percent disapproving of the use of public money.
The opposition even crystallized into an organized group, No Games Chicago, which plans to demonstrate against the bid when the International Olympic Committee meets in Copenhagen, Denmark, on Friday to decide which city will host the 2016 Games.

Chicago is one of the finalists in the selection process, along with Rio de Janeiro, Madrid and Tokyo.

Despite the ruckus, a private group, Chicago 2016, has raised more than $40 million in private dollars to support the bid, and the city of Chicago has pledged the customary $500 million in insurance and its full financial liability and legislative support to secure investment in the Games. Daley has promised his constituents that they will not be left holding the bag for the Olympics.

Before it squanders this once-in-a-century opportunity to attract the eyes of the world, perhaps Chicago should look to the South for some guidance.

Atlanta's $1.7 billion private-funded investment in hosting the 1996 Summer Olympics helped revitalize its downtown and poured $5 billion into that metropolitan area's economy during the next decade, according to the Metro Atlanta Chamber of Commerce.

Atlanta's cost was less than half of the $4.8 billion Chicago has estimated it will need to raise if the city is awarded the 2016 Olympic Games.

"Atlanta benefited more than any other city in the history of the Olympics," A.D. Frazier, the chief operating officer for the Atlanta Committee for the Olympic Games, told the Chicago Tribune. "Afterward, we had no debt and we left behind a legacy of privately funded structures the city would not have seen otherwise."

Billy Payne, the Atlanta businessman who spearheaded the city's bid, told the Tribune that the greatest gift of the 1996 Games was not the economic benefits but the civic pride that still lingers from having hosted the Olympics.

"Winning the games is the most uplifting, prideful, beat-on-your-chest moment Atlantans ever experienced," Payne told the newspaper. "If you win a Super Bowl and a World Series and multiply it by 100, that is the passion and pride you feel about the opportunity to welcome the world to your community."

Most of Atlanta's downtown growth was directly related to Centennial Park, the anchor for more than $1.8 billion in hotels, office buildings and high-rise apartments built since the Olympics, the chamber said.

Public polls aside, Daley is accustomed to getting his way in the town he inherited from his father. He'll even have Oprah Winfrey at his side this week to help him make the case to the IOC.
Furthermore, President Barack and Michelle Obama will make personal appearances on behalf of the Chicago bid.

Obama does so at risk of great political peril. He will become the first sitting U.S. president to make such a pitch. Imagine the embarrassment he would face around the world if he makes the best case for Chicago, and the IOC turns it down. I mean, here's the leader of the free world, and he can't even persuade the Olympics to come to his hometown? How would that affect his credibility for health care reform, the war in Afghanistan, peace in the Middle East, trade relations with China or sanctions against Iran?

Obama already is being criticized by some for pausing to lobby on behalf of the Olympics for his hometown. Here's a news flash: Presidents can multi-task.

With so much at stake, it makes me think that Obama has some pretty good insider assurances that if he makes the case, Chicago will get the nod. If not, he is making a terrible political miscalculation that will damage his presidency.

Meanwhile, us Wisconsinites can hold our collective breath and see if we can ride Chicago's coattails all the way to 2016. Having the world down the street, or Interstate, will certainly have a significant spillover effect that might even be the final catalyst for modern regional mass transit in southeastern Wisconsin.

If Chicago lands the gig, the Milwaukee-area business community should immediately coalesce to develop a cohesive strategy to get a piece of that pie. There will be Olympic buildings, hotels and restaurants to design and construct, there will be infrastructure improvements to be made and there will be services to be provided in the Windy City. It would be nice if some of our companies land some of those contracts.

And isn't it amusing that Madison would then be the host city of the cycling competition? I mean, the events would go to Madison because they could not find enough hills in Illinois

Gotta love those Flatlanders.

 

Steve Jagler is executive editor of BizTimes Milwaukee.

Empowerment is key to servant leadership

A few years ago, when I was first promoted into a management position – without any prior training or experience in that field - I asked my father for advice.

The conversation was very brief. It went something like this:
"Hey Dad, I've never been in management. How am I going to do it? What's the secret to being a good leader?" I asked.
His answer came quickly. "The key to management is very simple, actually. You surround yourself with the best people, and you do everything you can to help them fly."

I was reminded of that conversation this week when I received an advance copy of a book in the making. The book, titled, "Leadership: The Art of Empowering," provides insights and inspirations for "Attitudes and Skills for Transformative Leadership."

The book was co-written by Keith Clark, a Roman Catholic priest and a member of the Capuchin-Franciscan religious order at the Monte Alverno Retreat & Spirituality Center in Appleton, and Mike Panther, a retired executive from South Carolina.

Full disclosure here: I helped Keith - as best I could – with some of the original concepts for the book. He is a friend, and I am thrilled to see that he was able to complete his tome.

The book is filled with wisdom, the kind that only someone like Keith can provide.

The essence of the book is that a servant leader empowers people to do the right things at the right time consistently. The servant leader serves the subordinates and helps them achieve, rather than being served by the subordinates.

Here are a couple of nuggets of wisdom from the book:

  • "Integrity is an even more valuable commodity than reputation. Integrity is wholeness, incorruptibility. It is established by being true to oneself; it is an interior reality. Integrity is lost by choosing behavior which violates one's moral and ethical codes (whether or not other people know about it)."
  • "A leader takes responsibility, not only for his or her happiness, but also for his or her influence on the happiness of others in the environment."
  • "Anyone wishing to exercise leadership in a group needs not only to avoid the care-less word, but must seek the opportunity to speak the care-full word. By doing so, one can help set a positive tone for the environment in which everyone lives and works."
  • "A leader recognizes, respects and moderates differences of opinion … A leader does not pretend that everyone is in agreement when the evidence suggests otherwise."
  • "Punishment looks to the past. It doesn't change the past, but it focuses on what cannot be undone or redone. Empowerment looks to the future in the hope that it can be shaped by more desirable behavior."
  • * "A leader helps colleagues see the light before the heat is applied."
  • * "An assertive person can demonstrate affection and friendship, can admit fear and anxiety, express agreement and support, and generally be spontaneous."
  • * "Real servant leadership provides the atmosphere where everyone knows that help from the leader is available when needed, but at the same time everyone in the organization is expected to perform and deliver results."

Dad was right all along.

(Editor's note: The book featured in this column has not yet been published, but it should be. If you know of a publisher in need of a solid book on servant leadership, send them my way.)

Steve Jagler is executive editor of BizTimes Milwaukee.

Can private sector ideas fix MPS?

Imagine the corporate governance of a company in which the employees usually controlled who was named to the firm's board of directors, and the board members then selected the CEO.

Every few years or so, some outside investors would gain majority control of the board, and they'd throw out the last regime's CEO and put a new person into office. And then a couple years later, the employees would regain control of the board and reinstall their best candidate for CEO.

Along the way, each CEO would have a couple years to try some new ideas, priorities and programs that might or might not be in the best interests of the company's customers. But when the new CEO steps in, those ideas, priorities and programs are thrown out, and the cycle starts all over again.

And again.

Is that any way to run a railroad? Or a school district, for that matter?

Milwaukee Mayor Tom Barrett is attempting to gain control of the oversight of Milwaukee Public Schools (MPS).
Should the mayor be allowed to take over MPS? If so, what would the impact be? How have mayoral takeovers of public schools worked in other cities? What kinds of new ideas from the private sector could be replicated to help MPS improve its results?

The answers to those questions will be among the topics addressed in the Milwaukee Press Club's next Newsmaker Luncheon, headlined, "New Ideas for MPS."

The featured Newsmakers on the panel will include:

  • Susan Marshall, a consultant and founder of Executive Advisor LLC in Oconomowoc. She also is the author of "How to Grow a Backbone." Marshall was contracted by New York Mayor Michael Bloomberg to help implement his takeover of the public schools in New York City. She was on the front lines of the process and will share her insights about lessons learned for Milwaukee.
  • Cory Nettles, founder and managing director of Generation Growth Capital Inc. in Milwaukee. An attorney of counsel at Quarles & Brady, Nettles is the former secretary of commerce for the State of Wisconsin. One of the co-founders of the Milwaukee Quality Education Initiative, Nettles has been active behind the scenes in implementing new ideas for MPS.
  • Paul Sweeney, founding partner at PS Capital Partners LLC in Milwaukee. Sweeney is the president of the Council of Small Business Executives (COSBE) of the Metropolitan Milwaukee Association of Commerce (MMAC). He is a member of MPS Innovation and Improvement Advisory Council, as appointed by Milwaukee Mayor Tom Barrett, Wisconsin Gov. Jim Doyle and State Superintendent of Public Instruction Elizabeth Burmaster. Sweeney has been exploring new ideas and directions for MPS.

The Newsmakers will answer questions poised by a panel of professional journalists at the luncheon.

 

The luncheon will take place on Wednesday, Sept. 30, from 11:45 to 1:30 p.m. at the Newsroom Pub in downtown Milwaukee at 137 E. Wells St. Pre-registration is required. To register or gain additional information, visit www.milwaukeepressclub.org or call (262) 894-2224.


Steve Jagler is executive editor of BizTimes Milwaukee.

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