DETROIT BUSINESS MAIN 03-13-06 A 9 CDB 3/10/2006 11:39 AM Page 1
March 13, 2006 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: Downtown needs to be a neighborhood
When I go to New York City, I Association has a 20- of downtown venues. a major study of business and civic about themselves and not about don’t think twice about walking 20 year tradition of At the same time, bars power in Detroit. grooming for the future. blocks. Every block has something monthly “HACK” par- and restaurants might One name missing from the list A friend of mine has a simple new or interesting to look at. ties. Home owners sign consider promoting of movers and shakers is Ed McNa- yardstick to measure the worth of During Super Bowl festivities, up a year in advance to “48226” nights during mara. The retired Wayne County a leader: Who prospers under his host a monthly bring- people rediscovered walking in the week for those liv- executive, who died Feb. 19, had an or her tutelage? Whose career ad- your-own Historic Area downtown Detroit. Now the trick ing in the primary enviable talent for using humor to vances? is to keep people on the street. And Cocktail Klub soiree. downtown ZIP code. blunt our too-sharp regional If you have an example to share in the mix of all the busy civic and They are hugely popu- Being an urban pio- edges. business agendas, someone should lar, help newcomers of an executive with a track record neer may be fun, but be- In the many eulogies for him, we find room to promote a walkable meet new neighbors for developing talent, send me an ing part of a neighbor- downtown and ways to create a and give everybody a heard one theme over and over: e-mail at [email protected]. hood is attractive, too. sense of neighborhood for the sense of belonging. “He saw things in me that I didn’t We’ll profile some of the best. see in myself.” growing number of people who As the weather grows Mary Kramer is publisher of live downtown. warmer, Campus Martius Park Leadership means developing How many people have you en- Crain's Detroit Business. Her weekly John Thompson has the right will promote its outdoor concerts next generation of leaders countered in your own career who take on the latest business news airs idea. Thompson, who owns Honest and films. But nightspots also had that same talent? at 6:40 a.m. Mondays on the Paul W. John’s Bar on Selden Avenue near could promote organized “crawls” Next week, Crain’s will publish Too many “leaders” are all Smith show on WJR AM 760. Orchestra Hall, printed maps of all the restaurants and bars within walking distance of his own. If more people walk from Point A to Point B, and then on to Point C, all the destinations on the map will Advertisement benefit. GLOBAL AUTOMOTIVE CENTER Farther east, the Indian Village AN ERNST & YOUNG GLOBAL AUTOMOTIVE CENTER REPORT LETTERS CONTINUED Sell-Side Due Diligence ■ From Page 8 ture workforce and avoid “mission creep” into questionable uses of Get Your House in Order Before Hitting the Street the public’s money. Charles S. Owens Whether an auto supplier is failing financially or QCalculate the many legacy costs that things that emerge once the process starts. And, Michigan state director National Federation of Independent carving out a non-strategic piece of its business, may remain after the divestiture despite presumably having identified those concerns Business/Michigan many on the sell-side are doing their homework getting rid of what seems to be the whole in advance, the seller has alternatives identified Lansing before actually putting the business up for sale business, and determine if all that cost to address concerns as they are raised by School boards are and, by doing so, maintaining more control of the structure is required. perspective buyers. M&A process and achieving better outcomes. the real problem Q Weigh the post-sale tax position, assessing These auto companies are undertaking presale gain or loss and ways to optimize tax To the Street Editor: due diligence work and presale planning, either on positioning. If the seller has done their homework, the advan- I wanted to thank Crain’s Detroit their own or with the help of external resources. In tage is that they control the process and direction. Business for helping to educate the Q Evaluate pensions and post-retirement addition, more structure and organization are being They’ve anticipated questions and events that are business community on the K-16 obligations, and determine if those should added to the process to be more proactive with the likely to occur and have tentatively gathered solu- Coalition’s Guaranteed Funding stay or go with the business. initiative (“Petition drive fore- divestiture process as opposed to being reactive to tions/resolutions. The seller is prepared to address shadows school-funding fight,” matters that arise during the process. things in a timely fashion, keeping the process Much of this pre-sale planning and analysis is and “Opinion: School proposal under control, which can result in a much faster thinking through all the touch points of a doesn’t fix problem,” Feb. 20). Strategic-Decision Follow-Through closing process. According to the Anderson Eco- business, whether its legal issues, human capital After a company evaluates where they want to be in nomic Group, school revenues in- matters, infrastructure support, or environmental the auto marketplace and what needs to happen to While there is no guarantee that every issue will be creased 54.81 percent since Propo- responsibilities, and making sure all are dealt with get there, certain operations will be identified that identified and potentially resolved with sell-side sition A passed in 1994, while upfront before the business is even taken to market expenses increased 55.14 percent. “fit” and others simply won’t. For those that don’t, due diligence, ideally all the larger issues have been to be sold. Then, on the financial side, what’s being During that same period, the Con- the process begins for assessing exactly what to do addressed. Smaller concerns may arise in any deal, sold needs to be carefully defined, the prospective sumer Price Index (inflation) in- with these business segments and/or product lines. but they’re not likely to cause heartburn on the sales numbers evaluated to see if they really make creased 27.5 percent. The state cur- Assuming the position is divestiture as opposed path to closure. rently spends $13 billion of its $41 sense, and preparation of the proforma financial to liquidation, the choice is not to quickly gather billion budget on education. Fund- information on the business to better reflect to ing is not the problem. financial data, “put a book together,” and try to sell. For more automotive insights visit prospective buyers what it is that’s being sold. ey.com/us/automotive. It’s school boards that are out of These are all processes — commonly called reverse control. Most working adults Instead, sell-side due diligence must include planning due diligence or sell-side due diligence — that an might struggle to recall when they through scenarios of how to divest — sell assets, By Mark Short. Mark is a partner in Ernst & Young’s educated and wise seller is doing before they ever last had “free” benefits. Defined re- sell legal entity (stock), etc. — and, based on what Transaction Advisory Services and the leader of its tirement plans started disappear- take a deal to the street. It’s all about controlling the auto supplier wants to sell, how to properly and North American Automotive Industry practice. ing in the 1980s as companies the divestiture process, not being surprised by Mark can be reached at [email protected]. moved to 401(k) plans, yet boards carefully carve that out of the larger company: still provide them at a cost of 16.8 QCompletely identify all components and percent of payroll. Many private- activities of what’s being divested, such as sector employees contribute $100 to $500 per month for health insur- a plant, staff, capital assets, property, ance, yet many teachers pay more intellectual assets, etc. in union dues than they do for su- Q Identify the infrastructure that supports perior (and often free) health in- the business being divested, and project surance costing districts $12,000 per employee. how a divestiture will affect the retained Health care reportedly repre- infrastructure needs of the business. sents $1,500 of a vehicle’s price. In Conversely, assess the needs of the education, it’s approximately divested business and alternatives for $1,700 per pupil and rising annual- that business, such as a transition ly at 11 percent or more. services arrangement. Approving this legislation with no serious reforms, oversight or accountability won’t help the chil- • • dren or the taxpayers. Audit Tax Transaction Advisory Services Mike Reno Trustee © 2006 ERNST & YOUNG LLP Rochester Community Schools Board of Education DBpageAD.qxd 3/8/2006 11:23 AM Page 1
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Page 12. MacKeigan Michigan State Medical Society health care Future of Michigan Task Force On March 1 the Michigan State Medical Society gathered 40 health care stakeholders together in Lansing and called for a statewide collaboration to achieve universal health care in a report it titled, “The Conquering heroes Future of Medicine.” The 47-point action plan was intended to spur broad-based action to create a high- quality, cost-effective health care “It’s not about cancer,” she system that ensures everyone in the Group uses business said. “It’s about reshaping and WHERE TO GO FOR SUPPORT: state has coverage. renewing your life.” ■ She may be on to something. C-Club for Cancer Conquerors Is the society advocating for a “Survivorship is a huge area Canton, (734) 223-3938 government-sponsored plan for coaching techniques now in cancer,” said Michelle www.thecclub.org universal health care coverage? Riba, medical director of the Uni- This is not about a single-payer ■ American Cancer Society versity of Michigan’s PsychOncolo- government program. This is about to help cancer survivors Southfield, (248) 557-5353 gy Clinic at its Comprehensive finding multiple approaches to get to www.cancer.org universal health care with a small “u” BY MICHELLE MARTINEZ Bernat, program manager at Gil- Cancer Center. ■ and a small “c.” We aren’t about to CRAIN’S DETROIT BUSINESS da’s Club Metro Detroit in Royal “The whole experience affects Gilda’s Club Metro Detroit prescribe how we achieve it. But it’s Oak. people in very individual ways. Royal Oak, (248) 577-0800 probably going to be a combination of esley Delgado’s watershed The C-Club is different, Minin- Most people want to go back to www.gildasclubdetroit.org moment came about a year ni said, because it uses business the way it was, and it just does- responsibilities between employees, ■ employers, the government and the L after her May 2004 breast- coaching approaches to help sur- n’t.” Barbara Ann Karmanos Cancer Institute insurance industry to try and find ways cancer diagnosis. vivors make permanent life and Kristi Schingeck, a C-Club to give all residents access to quality The owner of Southfield-based career changes. member since 2003 and a breast- Patient and Family Support Services health care. Staffpro America Inc. had success- Mininni, a human-resources cancer survivor, said the C-Club We’re bringing the stakeholders back fully endured two lumpectomies, executive-turned-business coach, helped her “press the reset but- Detroit, (313) 576-9280 together next month for starters. One chemotherapy and radiation, and started the C-Club as an offshoot ton.” www.karmanos.org was reviving her business from a group of them will be focused on of her 4-year-old Canton Town- After an intense two-day work- ■ University of Michigan developing a universal benefits midyear slump. But picking up ship consulting company, Exceller- shop and several conversations Comprehensive Cancer Center where she left off before the diag- structure. We’ll be reporting out on ate Associates. That company ad- with Mininni, Schingeck quit her Ann Arbor, (800) 865-1125 the efforts over the next year. nosis was impossible, she said. vises businesses on how to make www.cancer.med.umich.edu “I was looking at what I wanted cultural transitions associated See Survivors, Page 12 How does this effort differ from other to do with my life with new eyes,” coalitions or work groups that have with new corporate philosophies Delgado said. taken on this issue? or mergers and acquisitions. The big change came, Delgado This is the first time in our knowledge said, when she discovered the C- that the society has come out for Club for Cancer Conquerors several universal coverage. It’s not about months after her treatment had incremental change anymore, but about starting to transform how we ended. perceive and deliver health care in a After one-on-one sessions bold fashion. Physicians are beginning with business coach Lisa Minin- to be part and parcel of the solution ni, C-Club founder and lym- and beginning to lead. phoma survivor, she cut back The report was based on a survey of her commitments and hours at health care leaders from multiple work, and spent more time with disciplines across the state that her husband and three children. included leaders in business, health The result, she said, is that her care, government and labor. It’s not a business is growing again and piecemeal approach. It involves her relationship with her family unprecedented collaboration has developed “in a way that’s statewide. almost indescribable.” Life makeovers like that are What other issues did the report why Mininni created the club prioritize? about four years ago, she said. The other categories the stakeholders “I discovered that there was will be working on are community no real program out there to wellness, prevention and screening, help people with this transi- and simplifying administrative tion,” she said. “It’s such a sig- processes to cut costs. nificant event; (survivors) real- About 30 percent of costs within the ly want to re-create what their health system is waste — in some lives look like. They want to cre- instances administrative, in others, ate balance, and not work 80 unnecessary testing because of liability issues or because the patient hours a week and be married to demands them. But it’s also about their jobs.” health status. Michigan has the third- Nonprofit cancer support highest obesity ranking in the nation groups long have provided pa- and health care costs are increasingly tients and their families with about chronic conditions. If we can emotional grounding and practi- improve these things on a long-term cal advice to adjust to life dur- basis, we can finally move the needle ing, and after, cancer. on costs. “We like to call it finding the new normal,” said Kristen If you know someone Lisa Mininni (second from left) interesting you started the C-Club for Cancer would like Conquerors to help survivors Michelle Martinez transition back to their everyday to interview, Call lives. Leslie Delgado, Kristi (313) 446-1622 or Schingeck and Janine Krasicky (left write mlmartinez@ to right) have all participated in the crain.com program. DETROIT BUSINESS MAIN 03-13-06 A 12 CDB 3/10/2006 11:15 AM Page 1 Page 12 CRAIN’S DETROIT BUSINESS March 13, 2006 FOCUS:HEALTH CARE 7ORLDCLASSßORTHOPEDICßCAREßSOßCLOSEß Health coaching cuts YOUßCOULDßALMOSTßWALKßHOME #RITTENTONß(OSPITALß-EDICALß#ENTERß/RTHOPEDICß3URGERYß#ENTER costs for companies BY MICHELLE MARTINEZ business case.” CRAIN’S DETROIT BUSINESS Rochester-based Michigan Insti- tute for Health Enhancement said en- Companies searching for relief rollment in its weight-manage- from growing health care costs are ment program jumped from 53 spurring growth for Southeast patients to 969 patients from Michigan’s health coaches. March 2004 to July 2005. The com- A cross between a motivational pany added two locations in 2004 booster, health assessor and advis- and is looking to add another office er, health coaches work with em- in Southfield in the near future. ployees to help them lose weight, “There’s a big demand,” said One of the best teams of orthopedic surgeons youÕll Þnd anywhere is just around the corner from where stop smoking, monitor chronic ill- Richard Beck, the company’s clini- you liveÑat Crittenton Hospital Medical Center. nesses and take other steps to live cal operations supervisor. “We re- healthier lives. ceive phone calls from as far away Crittenton orthopedic specialists perform thousands of procedures every year Ð along with new and The more personal, intensive as Traverse City asking when advanced procedures like Kyphoplasty Ð a breakthrough procedure that can relieve the pain and service is not new, said Dee Eding- we’re coming out there.” ton, director of the University of debilitating spinal curvature associated with osteoporosis in women. MIHE this year started a dia- Michigan Health Management Re- betes-management program that search Center, but has become Using minimally invasive surgery techniques, CrittentonÕs team of world-renowned orthopedic likely will generate more interest, more popular in the past few years specialists can also minimize the pain of surgery, facilitate faster recovery, and reduce scarring. Beck said. as companies look beyond tradi- Employers are paying attention. CrittentonÕs rehabilitative programs and specialists work with you to have you living and enjoying life tional programs to find health care Pfizer Inc. in June rolled out a new the way it was meant to be. And CrittentonÕs orthopedic program was recently recognized by an savings. independent healthcare rating agency as being in the top 10% nationally for joint replacement surgery. “We’ve been studying (health wellness program and is working coaching) for 25 years, and it’s nev- with Leade, among others, to target Call the Crittenton Hospital Medical Center and Þnd out er been like this. … Companies are employees who don’t have the time just so frustrated with the health or don’t work as well in the class- how close worldclass orthopedic care really is to home. room setting of the other programs Orthopedic Physician Referral Line: 888-904-4325 care system, they’re taking this as the next step.” the company offers, said Sheila Cal- Ann Arbor-based Leade Health houn, associate director of wellness 7ORLDCLASSß(EALTHCAREß#LOSEßTOß(OME www.crittenton.com has been around since 1990, but in- and work life for Pfizer. creased its revenue from $1.5 mil- It’s still too early to calculate lion in 2004 to about $2.5 million cost savings, she said. But she ex- last year, said Michael Mulvihill, pects that giving some employees president. He expects revenue to more individualized attention will double to $5 million this year. help boost results. “What we found is that when we That’s likely true, Edington became more focused on actual said, but warned that not all health (one-on-one) intervention, we had coaching programs are created more success with reducing health equal. care costs. … I think that’s why As the programs grow in popu- coaching is catching on in a more larity, he said, some companies national way,” he said. have replaced personal interaction Mulvihill said the company’s with scripted online conversa- yearlong program helped to keep tions. That misses the point, Ed- Summer at Sacred Heart health care cost increases for a ington said. large manufacturing client to “Eyeball to eyeball is the most JUNE 19 - JULY 28, 2006 around 5 percent when the nation- effective way; telephone and e- al average was trending at about 9 mail can work, too. But the coach- MONTHS OF AGE THROUGH HIGH SCHOOL percent to 10 percent. es absolutely have to establish a 18 “We stick with individuals over relationship,” he said. time; follow up and track the re- Michelle Martinez: (313) 446-1622, sults. It’s really building its own [email protected] ENROLL TODAY! Survivors: Group therapy ■ From Page 11 job as an office manager at a con- many people as possible.” sulting company and moved from The C-Club is trying to attract Detroit to Lansing to be closer to sponsors for individual member- her family. ships, group coaching sessions and “Right now, I’m loving the life retreats, as well as advertisers for that I created,” she said. its newsletters to help cover ex- C-Club membership costs $30 a penses for those who can’t afford year and includes weekly inspira- the membership fee, said Janine tional e-mails, discounts on profes- Krasicky, a thyroid-cancer sur- sional-development seminars and a vivor and a C-Club member. quarterly newsletter with practical Krasicky owns J9 Media, a Fern- tips on how to move beyond cancer. dale-based public-relations compa- But a lengthy list of other offerings ny. Since her treatment, she’s been such as retreats and one-on-one helping spread the word about the Day Camps • Extended Care • Enrichment Classes programs that range from about C-Club and other nonprofits, she $2,800 to $4,000 for up to six months, said. are also available, Mininni said. “I’ve cleared the clutter and re- Visit us on the Web at www.ashmi.org The C-Club isn’t a nonprofit, ally focused on … pursuing things Mininni said, but it’s not a “money that are meaningful to me,” Kra- 1250 Kensington Road • Bloomfield Hills, MI 48304 maker” either, she said. sicky said. “Life is about choices, 248-646-8900 ext. 871 “This is an educational organi- and the C-Club helped me realize zation that needs to be profitable that.” to be in existence,” she said. “But I Michelle Martinez: (313) 446-1622, would love to offer this free to as [email protected] DETROIT BUSINESS MAIN 03-13-06 A 13 CDB 3/9/2006 4:47 PM Page 1 March 13, 2006 CRAIN’S DETROIT BUSINESS Page 13 FOCUS:HEALTH CARE Counties look at ways to offer low-cost health coverage Washtenaw, HOW THE PLANS STACK UP &2%% /.,).% )-!'%3 /&