Above the dairy air

Recent attention from national business media is an endorsement of state’s direction

Far away from the Dairy State in the posh confines of elite East Coast social clubs, the urban gentry sipped their Dalmore scotch and puffed on their Spanish Behike cigars in early May conversing about a rare topic indeed: just what kind of aged cheddar are they eating in Wisconsin to capture so much national and global attention as of late?

Certainly the chaotic protests at its capitol during the month of February solicited the attention of news cameras from across the country and beckoned general audiences around the globe to watch the drama unfold. But when the Wall Street Journal and Barron’s begin to dedicate attention and space to activities in Wisconsin, either the editors at those publications have been drinking pull-top cans of outdated Miller High Life – or there’s actually a movement of innovative, economic-priming exercises occurring in the Frozen Tundra.

While many business professionals in Wisconsin might not have taken notice, the state has been written up in leading national business media as if it were a hit Broadway production. The editorial page of the Wall Street Journal on May 16 took notice of Wisconsin’s steep climb in Chief Executive Magazine’s annual ranking of state business climates, where Wisconsin ascended from 41st place in 2010 to No. 24 this year, the greatest single-year increase of any state and one of the largest in the history of the survey.

The annual survey asks 500 CEOs to grade the states on taxes and regulation, the quality of the work force and living environment, among other categories. In editorializing about the rankings in general, The Wall Street Journal opined: “This suggests that Big Labor’s attempt to make (Gov. Scott) Walker a national political target had the ironic result of making Wisconsin more appealing to business executives.”

Just a week earlier, Barron’s annual ranking of America’s Top Companies recognized Oshkosh Corp. in the No. 1 position – Numero Uno – ahead of better-known companies like J.M. Smucker (No. 2) and Apple (No. 4). The rankings were based upon revenue growth and cash returns during the recent three-year period compared with 2010 financial data. In addition, Bemis Company of Neenah ranked No. 36 on the list, the second highest ranking for a Wisconsin-based firm on the list behind Oshkosh. 

Pundits have already attempted to read into the numbers of the CEO survey rankings and Barron’s financial mathematics to assert the accomplishments aren’t truly as noteworthy as they’re made out. It can be noted the reforms of Wisconsin government in regard to the state’s capital investment climate will take years to demonstrate tangible results.

But if for nothing else, the national attention is an endorsement for the work the new governor’s administration has undertaken in just more than four month’s time, and a salute to the direction Wisconsin’s oft-perceived unfriendly business climate is heading.

Biz plan follow up

I received a good deal of response from my May 2011 column discussing the Northeast Wisconsin Business Pan Competition. Thank you to everyone who took the time to call, write, or stop and talk with me at an event.

Among the responses, six past prize winners of the competition called or emailed to weigh in their thoughts, and among those, five indicated the evaluation process of the competition was underwhelming compared with the level of vetting by venture capitalists or through the Governor’s Business Plan Competition. A few felt the panel of judges evaluating finalists over-represented academia and under-represented real-world experience owning and operating a business.

I did error in my comments regarding the accountability of prize money awarded to winning business plans. Three years ago, organizers for the competition began requiring winners actually implement their business plan and launch their company fulltime before receiving their prize money. I regret any inconvenience this error caused readers.

I also inadvertently shorted the number of business plans recognized during the first three years of the competition, though the success rate remains about the same as reported a month ago. There were 19 business plans in total that were awarded prize money between 2006 and 2008, six of which continue to remain in business.

Among those businesses mentioned in the column last month as still conducting regular operations, I’m remiss not to have mentioned Williams Technology Group of Appleton, Guardian Wireless of Manitowoc and Waterscape Designs of Forestville, all recognized as award winners or finalists during the inaugural competition in 2006. All three continue to forge ahead after five years in business.