Strong Local Economy : Innovation + Job News

With rising healthcare costs and growing interest in wellness and options, StayWell Health Management has become a compelling option for many companies.
 
The St. Paul-based firm specializes in providing programs that help to improve employee health. Although that sometimes takes the form of weight loss contests or blood pressure screening, StayWell goes far beyond those occasional events, says Lesley Lesch, the company's director of account management.
 
"We offer a full spectrum of health management services," she says. "What sets us apart is that we do research and use that to design very effective programs."
 
The company evaluates aspects of a client's overall health and wellness environment, including senior management buy-in, prevention delivery models, and follow-up programs, in order to gauge what approaches are needed. A major focus is keeping employees motivated, Lesch says, and that involves staying involved in wellness all year, not just at a one-time health fair.
 
"At this point, employers have seen these programs work," she says. "That's driving growth for us, and helping us to lead the industry."
 
StayWell has about 400 employees, but anticipates a surge of hiring in the year ahead, thanks to the success of its programs. The company will seek a range of professionals, from nurses and dieticians to health educators who can provide individual counseling to employees by phone.
 
"With healthcare reform and more use of incentives by employers, this is a really exciting time for us," Lesch notes.
 
Source: Lesley Lesch, StayWell Health Management
Writer: Elizabeth Millard

In the past year, the economy didn't rebound with as much bounce as anyone would have liked, but a few fascinating things are happening on the way to recovery: the Twin Cities business community seems to be getting closer, more creative, and in some ways, more relaxed. The past year has seemed less like a slog and more like a fresh start.
 
In covering the innovation and jobs beat for The Line, I've spoken to dozens of entrepreneurs, some CEOs of large firms, and quite a few non-profit folks, and the trends are the same across every sector. The recession delivered a blow, certainly, but rather than going right back to business-as-usual, many companies here are seeing success through different measures. They brag about flex time for employees, community-based projects, and buying locally. It's as if the economic storms brought many enterprises under the same roof, and now they've learned that rather than survive independently, they're better off thriving together.

An Incubator Boomlet
 
For example, look toward the business incubator boomlet, and the wealth of services for entrepreneurs, like CoCo, WorkAround, MOJO Minnesota, the Economic Gardening Network, Homegrown Business Development Center, Minnesota High Tech Association, and so many others. The University of Minnesota, in particular, is a powerhouse of advice and skill building. Even the engineering school is teaching its students how to play well together in a business setting. 
 
This level of closeness to each other has created a business community that supports new endeavors so enthusiastically. Look at our recent feature on Kindred Kitchen, an effort in North Minneapolis that supports food entrepreneurs, for just one example, but there are many others. A sampling of companies that got their start this year include Sophia, DogWonderful, BuyerCurious, Pashen, and CRAM.
 
Through strategic hiring and expansion of services and products, many companies are showing a sense of starting anew, even if they've been around for years. For instance, just look at Bulk Reef Supply, an aquarium supplies service that has done such tremendous growth through increased product offerings that it landed on the Inc. 5000 list.

Companies Chillaxin'
 
Finally, there's the relaxation factor. Business can always be a bit of a meat grinder at times, but as companies learned to operate lean and get creative, they started to identify different measures of success, like happiness. As Chris Trifilio, co-founder of Primordial Soup noted, "We don't want to be a 50-person firm. We want to keep going down the path we're on, because it's fun and we love it." That's a sentiment that I heard often this year, leading me to believe that if a company didn't start fresh in terms of operations, then maybe they did in terms of attitude.
 
In the year ahead, I predict that these trends will keep rolling strong, because they contribute to the health of the business community, and make the Twin Cities a strong and vital area. Happy, satisfied entrepreneurs and business owners are creating a business climate that's sweeping away the economic clouds of the recent past with something awfully close to a sunny outlook.

Elizabeth Millard, Innovation and Jobs Editor

With a central koi pond, free lunches for employees (yes, there is such a thing, apparently), and ample space in its new world headquarters, Infinite Campus might seem like a dreamy visit back to the dot-com boom days.
 
But the Blaine-based company is looking toward the future instead. More specifically, the firm focuses on creating cutting-edge technology for the education market, and it's being rewarded with an increasing number of contracts.
 
Recently, Jersey City Public Schools, Chandler Unified School District, and others chose Infinite Campus for better data management capability. Infinite Campus is also keeping ahead of technology, by releasing a mobile portal that will be the first of many mobile learning tools.
 
The company had its start in 1996, when a principal at Centennial High School in Circle Pines challenged his son-in-law, Charlie Kratsch, to do something meaningful for humanity. Working out of the Centennial band room, Kratsch drew on his experience with web-based medical systems to create technology that could help K-12 school districts become more streamlined, cost-efficient, and productive.
 
"Most of our competitors work to give districts what they want," says Karl Beach, the company's evangelist and interim marketing manager. "They gather requirements, and build the tools from there. We're different, because we build what they need. That puts them ahead on the invention curve, and it may be assertive, but it also works."
 
Infinite Campus has about 300 employees in its headquarters, but is doing steady hiring to fill out its space and advance its technology. The company is expanding into tools for school finance and HR departments, and plans to focus on more mobile technology as well.
 
"As we keep moving forward, growth is inevitable," says Beach.
 
Source: Karl Beach, Infinite Campus
Writer: Elizabeth Millard

Central Minnesota just got a little more connected.
 
Minneapolis-based Vaultas, a data center, colocation and business continuity provider, is expanding into the St. Cloud market, following completion of the company's newest data center facility in Alexandria.
 
The decision to build in the area was driven by demand, notes Vaultas president John Unger: "Outstate Minnesota really didn't have a colocation environment that local businesses could use, outside of the metropolitan area. There was one in St. Cloud, but that's somewhat private."
 
During the recent tough economic times, many companies throughout the state increased their use of managed services, making data center usage more popular. Rather than pay for power and cooling, as well as technology licensing, on their own, companies have been turning to data centers like those run by Vaultas to manage their data and drive down costs.
 
Although these types of arrangements can be utilized from anywhere—a company in Duluth could outsource to a data center in Denver, for example—there are advantages to having a data center close by, Unger believes.
 
"Not everyone is so eager to put data into a cloud computing environment," he says. "For some companies, it can be a high risk environment." Also, he adds, having a provider so far away doesn't give an entrepreneur or executive the ability to walk through the data center's doors and check on operations.
 
Factors like these are driving growth for Vaultas, which has been hiring more sales professionals and contractors in the past year, Unger says. More hiring could come in the future as well, if the provider stays on track with its goals. Unger is considering putting more data centers between Minnesota and Utah, taking advantage of the region's chilly weather to reduce overall cooling costs.
 
"Absolutely, we're on a growth track," he says. "We're looking forward to seeing what's ahead."
 
Source: John Unger, Vaultas
Writer: Elizabeth Millard

Eagan isn't yet known as a telecommunications hub, but that may change in the near future, when the city builds a major new data center.
 
Known as The Connexion, the colocation facility will be open to all telecom and Internet service providers, as well as local and regional companies that need offsite data storage and disaster recovery.
 
The facility will be developed and owned by Five 9s Digital, a North Carolina firm that's well versed in the complexities of building and running these types of specialized data centers.
 
"This is an effort to protect technology jobs and attract new jobs," says Tom Garrison, the city's communications director and the liaison to the Eagan Technology Working Group, which has been studying the city's broadband needs for the past five years.
 
"The Connexion isn't jobs-intensive on its own, but it will provide the infrastructure for technology companies, and that could bring them to the area," Garrison says. "We think this will go a long way toward establishing Eagan as a top technology location."
 
The Connexion will provide high-connectivity private data suites, route redundancy, and environmental efficiencies. Private investment in the project is estimated at between $75 million and $100 million. The new facility will provide Tier III space, which is important, given the high demand for space at that classification.
 
Look for the facility to get kickstarted soon, with a projected completion of mid-2012.
 
Source: Tom Garrison, City of Eagan
Writer: Elizabeth Millard

Accounting, tax, and consulting firm McGladrey is clearing plenty of desk space for the months ahead, anticipating an increase of at least 25 more people before January.
 
The hiring push isn't surprising, considering that the firm has been bringing on new employees at a steady clip over the past six months, adding about 100 employees since the beginning of May. Currently, the Minneapolis office has about 325 people, with most of them getting ready for the busy tax season ahead.
 
Growth has also come from an increase in business consulting, notes Christine Mack, Northern Plains Assurance Leader and Partner at McGladrey. She says that for the past few years, many companies have been delaying the use of consulting in areas like risk advisory and technology services, but that the demand is increasing again.
 
She says, "There's a subtle shift in the economy. What was put on the back burner is now coming to the front, as people recognize they need advisory services to keep their businesses growing."
 
Expanding the firm's employee number comes at the same time as another major effort at McGladrey: implementing a paperless tax process.
 
The move toward a paperless strategy was sparked by a desire to create more efficiency in the tax process, says Mike Nelson, Managing Director of Tax Services. By going paperless, McGladrey employees can be more mobile and work electronically, allowing them to access files from a client office, for example. It's an innovative approach that's already making McGladrey unique among competitors.
 
"It just makes sense," says Nelson. "We can be mobile, it helps the environment, and our employees appreciate the flexibility. Everybody wins."
 
Source: Mike Nelson and Christine Mack, McGladrey
Writer: Elizabeth Millard

Consumers are switching to credit unions and community banks in record numbers, and this past weekend, "Bank Transfer Day" had some financial institutions jammed full of new customers.
 
For Affinity Plus Federal Credit Union, that means plenty of hiring to keep up with demand.
 
President and CEO Kyle Markland notes that the credit union has been adding about 2,000 members per month, which is double the amount they saw a year ago. About 80 percent of those members have been referred by existing members, but they're also seeing an uptick in interest thanks to their "ditch your bank" campaign.
 
"We've been very public about letting the general population know that there's an alternative to large banks," he says. "Our members see the value in the type of service that we provide, and I think more and more people are looking for that level of service."
 
Affinity currently has 356 employees, but that number is likely to increase as the credit union sees an increase in transaction volume, Markland notes. He says that in the last five years, members have been depending on the credit union for more of their banking needs, such as loans.
 
Because of the growth rate, Affinity is likely to add another 100 employees over the next 12 to 18 months. Just in the past two weeks, they've brought on almost 20.
 
That level of hiring is likely to be tricky, Markland says, because the credit union is very particular about who joins their team. Employees have to be motivated by an environment where they're empowered to make decisions, he says, and can fit in with Affinity's service-oriented culture.
 
"It all comes down to finding good people who want to work with other good people," says Markland.
 
Source: Kyle Markland, Affinity Plus Federal Credit Union
Writer: Elizabeth Millard

First Tuesday
 
November 8
University of Minnesota
Carlson School of Management
McNamara Alumni Center
$28, includes lunch
 
Held for nearly 20 years on the first Tuesday of every month at the McNamara Alumni Center, the First Tuesday Speaker Series has showcased top executives and their insights about business and leadership. This month's round features John Stumpf, the Chairman, President, and CEO of Wells Fargo.
 
 
Best Practices in Leadership Effectiveness & Employee Engagement
 
November 10
Embassy Suites Minneapolis Airport
Bloomington
Main conference: $200 members, $300 for members of partners, $400 non-members
 
Put on by the Minnesota Council for Quality, this two-day event features a main conference on Nov. 10 and post-conference workshops the following day. Organizations such as Toro, US Bank, and Allina Hospitals & Clinics will share best practices in succession planning, communication, employee engagement, and other topics.
 
CityCamp Minnesota
 
November 12
University of Minnesota
Humphrey Center
free
 
Touting itself as an "unconference," CityCamp Minnesota aims to bring together community organizations, technology startups, social media experts, software developers, open government advocates and "everyday citizens" for a discussion about how to strengthen local communities. Although there will be breakout sessions and at least 25 different interactive discussions, the conference organizers note that the "coffee break becomes the conference."
 

Robotics Alley
 
November 17
University of Minnesota
Carlson School of Management
$145
 
ReconRobotics (see our previous coverage here) teams up with the Minnesota High Tech Association to host a gathering of 250 leaders in the global robotics industry. Featuring a keynote address by renowned robotics expert Peter Singer, the program also includes a series of open-format talks on the business of robotics from experts in the financial, legal, policy, and academic sectors.

A new group is hoping to bring more jobs and investment to the Twin Cities, and is amping up its marketing campaign to achieve its ambitious goals.
 
Called Greater MSP Partnership and based in St. Paul, the organization has developed a website that contains resources for local companies that want to grow their businesses, information for firms that are considering relocation, and tools for finding commercial and industrial properties.
 
A news feed features upbeat items, such as recent profit increases for St. Jude Medical and Supervalu. For companies looking at the Twin Cities from other parts of the nation, Greater MSP includes information on what makes the region so noteworthy, highlighting areas like our high rate of volunteerism, the arts and culture scene, and healthy lifestyle factors.
 
Covering the 13-county area around the Twin Cities, Greater MSP is a public-private partnership funded by charitable donations. The partnership works with dozens of partners and intends to set a strategic vision for regional economic development, among other aims.
 
Helming the effort is Michael Langley, who ran an economic development consulting practice on the East Coast before coming to Greater MSP. Recently, Langley noted that there are already at least 40 projects in the works, and the hope is that the number will expand to 150 to 200 over the next year.
 
Source: Greater MSP
Writer: Elizabeth Millard

In the seventh annual Minnesota Cup competition, the top winner of $50,000 in seed capital was AUM Cardiovascular, a Northfield-based startup that developed a handheld device that can detect coronary artery disease.
 
The company's founder and CEO, Dr. Marie Johnson, started the firm after her husband died suddenly at age 41 while she was still a Ph.D. candidate the University of Minnesota.
 
Although he'd seemed to be in perfect health, Johnson's husband had suffered a heart attack, and it moved her to focus on creating a system that could identify symptoms of coronary artery disease.
 
Johnson estimates that she'll need about $3 million to accomplish the goal of preparing her device for market, and she believes that the award's seed money, combined with the presentation skills she learned through the award process, will help her to reach a new level of entrepreneurship.
 
Launched in 2005, the Minnesota Cup has become a high-profile and competitive event among entrepreneurs. Companies compete in six divisions, including biosciences, clean technology, high tech, and social entrepreneurship. There's also a student division.
 
This year, more than 1,000 participated, and in addition to AUM's win, several semi-finalists also received seed funding to grow their businesses. Other winners are Energy Max Panel, Naiku, Anser Innovation, Tesgen, and HOURCAR.
 
According to the Minnesota Cup, past participants have many notable success stories to tell. For example, the 2009 grand prize winner, 8th Bridge, raised $5 million in series A funding soon after the competition, and another $10 million in series B in 2011.
 
Other winners have been acquired, secured new capital, or garnered major distribution agreements as a result of their awards.
 
So, for entrepreneurs looking to fatten up their funding: start thinking ahead, because Minnesota Cup 2012 is likely to be even livelier.
 
Source: Minnesota Cup
Writer: Elizabeth Millard

 

Hennepin and Carver counties are rife with community garden efforts, but the counties are now embarking on a whole new kind of growth initiative. They're hoping to sow the seeds of business expansion, and they're currently looking for savvy CEOs to benefit from the process.

The Economic Gardening Network is an idea that came out of a project in Colorado, according to Hennepin County senior planning analyst Ron White. He notes that a large defense contractor there began struggling and was forced into layoffs, but the community came together in order to prevent widespread unemployment. They pooled their money to support local businesses in their second stage of growth.

In a similar move, the Economic Gardening Network is now looking for businesses with between 10 and 99 employees, with current revenues between $1 million and $50 million. "Statistics show that companies at this level have the most potential for job growth," says White. "They have a good chance for steady growth, and that's what we want to focus on."

Other eligibility criteria include: having maintained a business presence in Minnesota for at least the last two years, and growth in employment or revenue in two of the past five years.

The counties will be selecting 15 companies for a pilot program that includes technical assistance from a strategic research team, market research, project management, and other resources. It's an all-around education program meant to spark growth, White says.

Already, there's been a very encouraging response, he adds. The counties reached out to economic developers in various cities, then broadened their search from there. White is confident that they'll fill the pilot program, and hopefully keep gardening in the future, too.

Source: Ron White, Hennepin County
Writer: Elizabeth Millard

Those looking for green jobs have a powerful resource in RENEW (Renewable Energy Networks Empowering Workers), a program that trains Minneapolis and St. Paul residents for green jobs and places them in living-wage positions.

Kicked off in April 2010, the program has already had nearly 600 participants, with 350 of them earning credentials in green-related fields, and 240 gaining employment as a result of the training.

The success of RENEW led Minneapolis Mayor R. T. Rybak and Saint Paul Council Member Lee Helgen to highlight the program at a recent hiring fair, held at the Dunwoody College of Technology.

Funded by a $4 million grant from the U.S. Department of Labor, RENEW is a unique program, thanks to its strong focus on green-economy skills, notes Cathy Polasky, Director of Economic Development for the City of Minneapolis.

"Having these type of credentials is important, because it allows employers to have a tangible measure of what a prospective employee knows," she says. Even some employers that are not usually recognized as green companies have been eager to talk to program participants, Polasky says. For example, Doubletree Hotels is very interested in those who have learned environmentally-friendly tactics for housekeeping and maintenance, which allow the hotel chain to cut down on water use and streamline its operations.

Seventy different training tracks are offered through RENEW, with 12 training entities partnering with the program. Community-based service providers are also part of the effort, helping to inform low-income workers of the opportunities provided by the program.

Although the program's funding was a one-time award, Polasky and others are hoping that the Feds will come out with "a sequel" to keep the training rolling along.

"There's been such remarkable success with this, that we're really hoping to keep it going," she says.

Source: Cathy Polasky, City of Minneapolis
Writer: Elizabeth Millard

Trade association LifeScience Alley is looking to boost its legislative activity, with the creation of a new role: vice president of government and affiliate relations.

The group has hired Shaye Mandle, an expert on policy and coalition-building to take the post. Mandle most recently served as the executive director of the FedEx Institute of Technology at the University of Memphis, where he helmed economic development and industry engagement.

In the private sector, Mandle managed government affairs, university relations, and business strategy for the Science Applications International Corporation, a firm with extensive R&D operations in Arlington, Virginia.

At LifeScience Alley, Mandle will work to develop a public-policy strategy, and be responsible for working with key state and national groups, including federal agencies, other industry associations, and legislators.

The group is hoping to improve the regulatory and economic climate for life-science innovation, and more involvement in legislation and policy is an important next step in that effort.

"The mission of the organization isn't changing," says Mandle. "Part of our core competency is to be a voice for the industry. So, we'll be lobbying on a day-to-day basis around existing legislation, and also looking for other ways to play in the policy arena."

Mandle's first steps will be connecting with the association's membership, to determine levels of need, and what they'd like to see happening in terms of policy action.

"If you look at the evolution of our government relations, you'll see that it's been mainly reactive," says Ryan Baird, director of marketing and communications at the organization. "We've finally gotten to the point where we can take a more proactive approach, and Shaye is a big part of that."

Source: Shaye Mandle and Ryan Baird, LifeScience Alley
Writer: Elizabeth Millard

Minnesota companies account for one-fourth of the start-ups that will advance from the North-Central region and hope to compete on the national stage in this year's Cleantech Open.

The 20 semi-finalists from the 10-state North-Central region include five Minnesota companies in three of the six categories. A Cleantech Open news release describes the companies:

Green Building category
Supreme Energy Products of Lakeville--Seamless building envelope systems to enable 50-70 percent greater energy savings

Renewable Energy category
Atmosphere Recovery of Eden Prairie--Dramatic energy output increases from gas or liquid-based renewable energy processes
INVELOX of Chaska--Technology for safe, silent, low-cost and high-efficiency wind power generation

Transportation category
CleanTrack of Plymouth--Fleet fuel consumption and hydrocarbon emissions reduction system.
RoutePerfect of Minneapolis--A new fuel optimization technology for the transportation industry

In October, finalists will be chosen from the regions to compete nationally for up to $250,000 in investment and services and an opportunity to present in front of 2,000 attendees at The Cleantech Open's Global Forum in November.

Perhaps more important is the advice, education, and access to investors that each semifinalist company will receive in the coming months, including coaching from a network of business mentors, one-on-one consulting with specialists, an intensive "boot camp," and other local supporting events and training.

Win or lose, it's an opportunity to develop or perfect business plans and showcase ideas in search of capital to get a start-up off the ground

This year marks the second year of participation for the North-Central region in the competition, which began nationally in 2006. Illinois, new to the region this year, also sends five companies into the semi-final round.

In total, 163 start-ups made the semifinal round nationwide.

Source: Cleantech Open
Writer: Jeremy Stratton