Creative Leadership : Innovation + Job News

An effort to develop a regional entrepreneurship action plan for the Twin Cities continues this week with a pair of information-gathering forums.

JumpStart Community Advisors, a Cleveland-based nonprofit, is coordinating the grant-funded effort, with support from local industry and economic development groups.

Mike Mozenter, the group's president, says they've had an advantage in the Twin Cities because the region had already started work with the Brookings Institute on a metropolitan business plan. JumpStart's program will compliment the Brookings planning and focus on identifying ways to better support entrepreneurs in the region.

The JumpStart process, which kicked off in the fall, is expected to take two years to complete. Currently it's in phase one: research and planning. The team has been interviewing local entrepreneurs, investors, and economic development officials about gaps and opportunities for creating and launching new companies in the region.

A pair of community leader meetings Wednesday and Thursday are aimed at gathering more ideas and information about how the region can better serve innovators and entrepreneurs. Mozenter says they plan to conduct an online survey as well, to help gather the input of as many people as possible. Then they'll help write a business plan aimed at capitalizing on the opportunities.

Phase two consists of a year of fundraising to turn the business plan into reality, and the third phase involves JumpStart supporting the region in getting it operational.

"I think one of the preliminary conclusions is that the region has a lot of opportunity, and people there recognize that," says Mozenter. "It's a matter of putting a vehicle in place that helps bring those together and supports those [opportunities]."

This week's community gatherings are free to attend, however, all seats were already reserved for Thursday's event. RSVP for Wednesday's event here.

Source: Mike Mozenter, JumpStart Community Advisors
Writer:

At The Beauty Room in south Minneapolis, the iPad has become as indispensable to its stylists as a pair of scissors.

The six-year-old salon, which recently moved to a new location at 4300 Chicago Ave. S. in the Longfellow neighborhood, was having an increasingly difficult time coordinating the schedules of its 19 specialists. If a customer needed a perm, a wax, and a manicure, for example, a clerk would have to consult three separate paper calendars to find a window of time when all three specialists would be available.

"It was just a nightmare," says owner Mi Shaun Schmidt-Schwab.

In November, the salon switched to an all-electronic scheduling system that syncs to everybody's personal iPad, iPhone or iPod touch. Now, instead of someone at the front desk spending up to five minutes searching for an open time, any of The Beauty Room's specialists can quickly schedule clients from anywhere using their Apple device.

The same system also allows staff to check-in clients when they arrive, which automatically pings an alert to the stylists' iPad or iPhone. It's eliminated the need for front-desk staff to track down people in the often busy salon to tell them their next customer has arrived.

Schmidt-Schwab says switching to the iPad solution has freed up front-desk staff to focus more on customer service, things like greeting and making customers feel welcome, instead of being tied up on the phone. If a customer wants to book another appointment, the stylist can do that from their station while they're still in their chair.

Several stylists already owned Apple devices. Others have since purchased them. The app that runs the scheduling system costs $4.99. Schmidt-Schwab expects the investment will pay for itself by freeing up time from administrative tasks to focus on its services.

Source: Mi Shaun Schmidt-Schwab, The Beauty Room
Writer:

When it comes to boosting participation in health and wellness programs, employees respond to goals and rewards — especially when the message isn't coming from their employer or health insurer.

That's the conclusion of a national health engagement survey commissioned by Minneapolis-based RedBrick Health.

RedBrick Health is a health technology company that partners with employers on health and wellness programs. Chief Marketing Officer Eric Zimmerman says they commissioned the survey to get a better sense of what employers are doing and what's working when it comes to employee health engagement.

Employers spend significant money on health and wellness programs, which can lower health insurance costs and increase productivity. But many of these initiatives suffer from anemic participation levels, often preaching to the health-conscious choir and reaching only around 10 percent of employees, says Zimmerman.

The survey results show, however, that engagement is not universally low, and patterns emerge among the programs that are seeing higher participation rates. Programs that involved setting goals saw 63 percent higher engagement levels, while programs that rewarded meeting those goals with incentives saw 107 percent greater engagement.

Another characteristic associated with success: having a program administered by a third-party other than the company's health insurance provider. Zimmerman speculated that it could be a trust issue, or it could be a matter of specialization, and that having a company like RedBrick that focuses on engagement can deliver better results because it's all they do.

Another finding in the survey was that many employers plan to increase their spending on health and wellness programs, despite the mixed results. Says Zimmerman:

"There's a terrific sense of urgency to address the cost issue and a terrific appetite for a different approach."

Source: Eric Zimmerman, RedBrick Health
Writer:

A nonprofit whose mission is showing low-income high school students a path to economic self-sufficiency looks to be nearly self-funded in its third year.

Genesys Works is a St. Paul program that offers students in an intensive eight-week IT and professional skills training course before placing them in one-year paid internships.

"We are truly a social enterprise. We operate very much like a for-profit IT staffing company, that just also happens to have a nonprofit mission of helping low-income students of color," says Jeff Tollefson, Genesys Works' director in the Twin Cities.

The organization was founded by a former Compaq executive in Houston. It started a Twin Cities branch in 2008 and launched a Chicago program this year.

Tollefson says about 90 percent of the program's budget this year should be covered by fees collected from its corporate partners, mostly large employers that pay to have students placed at their organizations, much as they would working with an IT staffing agency.

Genesys Works partners with Minneapolis, St. Paul, Richfield, and Robbinsdale school districts to recruit students, who apply for the program in the spring. An eight-week training course begins in June, and the top students are then placed at employers, where they work as IT technicians throughout their senior year of high school.

The program hopes to have a summer class of 150 students next year. It's also going to pilot a finance and accounting program in 2011 with about 30 students.

Tollefson says the response from employers suggests the program is working. Not only is it adding partners, but existing ones are increasing their commitment. Medtronic, the largest employer of Genesys Works students, went from 5 to 11 students this year.

Genesys Works will be recognized with the Innovation Collaboration of the Year Award at the Minnesota High Tech Association's Tekne Awards on Nov. 3.

Source: Jeff Tollefson, Genesys Works
Writer:

A Twin Cities software entrepreneur has announced plans for a new venture called Project Skyway that will aim to connect young entrepreneurs with mentors, resources, and funding.

Cem Erdem, born in Turkey, founded Augusoft in 1994 after reading about the Internet in a magazine on his flight from Turkey to the United States with his new wife.

The company makes online software for education administration. A decade and a half later, Erdem has a management team in place that can run the company without his day-to-day involvement, freeing him up to take on a new challenge.

Erdem says he's decided he wants the next phase of his life to be about helping other entrepreneurs achieve their goals faster, better, and more efficiently than he was able to do.

Project Skyway will be a new-business seed fund and incubator, launching in July 2011. The details are still coming together, Erdem admits, but above all he wants it to be a connector.

Erdem envisions a program that will build connections among ideas, entrepreneurs, investors, and other innovation hubs, and bring them together both online and in physical space.

He believes there are probably would-be entrepreneurs attending community colleges, as he did, who are not being reached out to. He wants to use his education connections to cast a broad net for potential entrepreneurs and bring them into an innovation community.

"Lots of people have e-business ideas, but they are not necessarily the programmers. They don't know how to take a concept to the virtual world, and we can help them with that," says Erdem.

Some of the other values that he's making a priority as he develops the program include a focus on long-term value, ethical practices, and making sure the program is accessible.

Erdem admits it's a "high-level model" right now. He's prepared to spend his own money getting the program off the ground. He's not seeking funding help, but he is seeking ideas.

Erdem says people looking to get involved should contact him at .

Source: Cem Erdem, Augusoft
Writer:

A revolving, low-interest loan program by the city of Minneapolis recently marked its 1,000th loan to a small business in the city.

City officials celebrated the milestone last week with an event at the Blackbird Cafe. The restaurant was the recipient of the 1,000th loan.

"These are the right investments for government to make--and now more than ever, this is the right time to do it," said Minneapolis Mayor R.T. Rybak.

The investments consist of 10-year, 2-percent interest rate loans, which must be matched at least dollar-for-dollar by loans from private lenders. "It's definitely a way to encourage banks to not turn off the spigot, to keep the funds flowing," says Bob Lind, the city's director of business finance.

Since the program started in 1988, it's made 1,000 loans totaling $28 million, and leveraged another $87 million in private investment. The city estimates the program has helped create more than 2,000 jobs and retain another 9,300. The average loan size is $25,000, and more than 97 percent have been fully repaid.

The Blackbird Cafe used a $75,000 loan from the program to relocate after a Feb. 18 fire destroyed its previous home at W. 50th St. and Bryant Ave. S. Owners Gail Mollner and Chris Stevens hosted last week's event at their new location at 3800 Nicollet Ave.

"The whole idea was to get that investment and make sure those commercial corners and commercial nodes continue to  thrive, continue to look good, continue to be occupied," says Lind.

In addition to the mayor, speakers included Robert Stephens, founder of the Geek Squad, which received financing through the program in 1998.

Source: Bob Lind, City of Minneapolis
Writer:

The BioBusiness Alliance of Minnesota supports businesses that are working with materials on the molecular and cellular level.

In other words, stuff that's too small to see with the naked eye.

Last week, the organization unveiled an original artwork it commissioned that it hopes will help Minnesotans visualize the type of work it promotes.

"We wanted to create a symbol that will help to connect the individual to the science, so that people can feel part of it and connected to it," said Dale Wahlstrom, CEO of the Alliance.

"Unfolding the Natural History and Science of Life" is a 3'-by-6' print by multimedia artist Lynn Fellman, who specializes in science-inspired art. Fellman reversed the scale of her subjects; the largest footprint goes to proteins and DNA strands, while animals and plants are pictured smallest.

Wahlstrom said the goal is for the image to become an identifiable symbol for the life-science community the Alliance represents in the state. It also plans to sell notecards and posters to raise funds for its Destination 2025 mission.

The image is hanging in the BioBusiness Alliance's office. (A small version image can be viewed on its website here.)

Source: Dale Wahlstrom, BioBusiness Alliance of Minnesota
Writer:

A pair of recent announcements put Minnesota at the forefront of digital government.

A survey by the Center for Digital Government gave Minnesota's state government a 'B+' grade and said it was "trending up" when it comes to using digital technology to better serve citizens and streamline operations..

Meanwhile, the state's Office of Enterprise Technology announced last week that Minnesota is the first state to move its collaboration and communications software into a cloud computing environment. (That means the applications are stored online rather than in servers owned by the state.)

The Center for Digital Government report highlighted Minnesota's innovation in the areas of finance and administration and energy and transportation. Only four states received a grade higher than Minnesota's.

An example of the state's recent successes, says OEM spokeswoman Cathy de Moll, was consolidating all state agencies into one centralized e-mail system. Innovations like this let the state "put our attention and dollars toward the kinds of applications that are directly related to citizen services," she says.

The announcement came two days after the state announced a first-of-its-kind cloud computing arrangement with Microsoft's Business Productivity Online Suite.

The move means the state no longer has to maintain its own servers and hardware for e-mail, file-sharing and other collaboration and communications programs. Instead, it leases those resources from Microsoft, which keeps the state's data in a private cloud environment.

Source: Cathy de Moll, State of Minnesota
Writer:

If inefficient data storage is the corporate equivalent of searching for your lost car keys, Digitiliti provides valet service. The downtown-St. Paul–based company offers an integrated data management service that files, stores, secures, and backs up company data seamlessly and automatically--functions that are typically spread across half a dozen software platforms.

"The biggest problem is that for data, there's a point solution for every problem," he says. "If you want to store your data, you buy backup software. If you want disaster recovery, you take it offsite. If you want to be able to collaborate, you buy software for that. We've integrated it into one system."

For this nifty achievement, the company picked up a Tech Award Circle gold medal in July and a nomination for a Tekne Award from the Minnesota High Tech Association in September.

The company launched in 2005 with a data protection service, but quickly identified the need for a broader product, explains Ken Peters, executive vice president in sales and marketing. The company's DigiLIBE (Digital Library) product launched two years ago, and has fueled remarkable growth for the tech company right through the recession, doubling the company's workforce to about two dozen.

In growth, Digitiliti has maintained its flexibility. Headquarters are located in St. Paul's artsy Lowertown neighborhood, an environment that "fosters innovation," according to Peters. And rather than bulk up on staff, they've taken a nimble approach to growth: "We have built a flexible workforce, both internal and external," he says. "Our approach is, hire the best talent. It doesn't matter where they're located."

Source: Ken Peters, Digitiliti
Writer: Joe Hart

A new venture in Minneapolis is innovating ways to connect nonprofits with young professionals who want to give their time and skills.

Jim Delaney, a former director with The LEAD Project, started Engine L3C after an experience as a board member at the YMCA.

"I wanted to do more than show up once a quarter and provide my advice and raise a little bit of money in the meantime," says Delaney. "I wanted to use what I thought were my skills and capabilities a little bit more directly to solve the problems that the 'Y' was facing."

So many nonprofit volunteer opportunities consist of one-day opportunities, helping out here and there with events and fundraising, he thought. Meanwhile, he understood that most directors were too busy with day-to-day demands to tackle big-picture challenges.

Delaney's idea: put together small strike teams of young professional volunteers to tackle big-picture projects. He pitched it to the YMCA and recruited 24 volunteers to work on six projects. One team created a guide for social media use. Another created a 140-page best practices handbook after analyzing the best practices at each of the local YMCA's 14 branches and camps.

Delaney recruits and matches volunteers to the project teams that best match their skills. A typical project lasts about six months, after which the volunteers are free to move on or get involved in a different way.

The young volunteers, most of whom are between the ages of 25 and 35, get personal and professional development, as well as a more satisfying volunteer experience. Meanwhile, the nonprofits, which pay $1,000 per month per project, get professional services for a fraction of what they would otherwise cost.

After 10 projects with the YMCA, about a month ago Engine started another project with the Neighborhood Development Center. Next, Delaney hopes to get corporations involved by offering the program to their employees as a professional development tool.

Source: Jim Delaney, Engine L3C
Writer:

If you're familiar with the concept of software-as-a-service, consider this lawyering-as-a-service.

The Glover Law Firm in Minneapolis has launched a new practice aimed at serving tech startups, with a billing model inspired by the flat-rate, tiered pricing associated with many web applications.

"We're trying to build a firm that feels similar to the types of businesses we hope to represent," says owner/founder Sam Glover.

Clients choose from one of four service plans that range from $150 to $1,200 per month and include document preparation, annual reviews, and weekly, monthly or quarterly check-ins.

It sounds simple, and that's what makes it such a departure for the legal industry. Since the 1960s, law firms have almost universally charged clients based on "billable hours." Attorneys tally up every six-minute increment of work they do for a client and add it to their tab.

But that system, says Glover, rewards inefficiency and encourages clients to put off asking questions, even though a quick answer might help prevent bigger problems down the line. Glover's model allows an entrepreneur to call with a question without worrying about a new bill.

"It's great for the clients because they know how much they're going to pay next month," says Glover. "It's great for us because we know the money that's coming in next month."

Glover started his law firm in 2005 focusing on business and consumer protection law. He and business partner Aaron Street started signing up clients for the startup practice last month at startuplawyer.mn.

Source: Sam Glover, The Glover Law Firm, LLC
Writer:

A group of civic and business leaders announced an initiative Tuesday to try put Minneapolis-St. Paul on the map in the areas of creativity and innovation.

The nonprofit 4FRONT is made up of local business, education, arts, and government leaders who want the region to take its "rightful place on the world stage."

Executive director John Foley points to a recent ranking of innovative cities worldwide in which Minneapolis slipped to 45th overall from 33rd the previous year.

"Cities all over the world get it. They're working really hard at innovation and trying to figure out how to attract talent, and we're acting like we're not even in the race," says Foley. "We continue to compare ourselves to the likes of Sioux Falls and Mississippi, literally. It's like we don't get it. We're not there yet. We just don't understand the dimensions of this race, and we're missing the big picture that we're competing with Amsterdam and Paris and San Francisco" and other major cities around the globe.

The plan is for 4FRONT to attract, retain, and nurture talent in the areas of food, health, design, and the arts. The centerpiece will be an international symposium and awards event that they hope will annually attract more than 40,000 people.

The Twin Cities are in a global competition for talent, says Foley, and the hope is that the awards will be a way to identify talent and give them a connection to the region. The goal is for Minneapolis-St. Paul to be recognized as the world's premier center of innovation and creativity by 2015 in health, food, design and the arts.

The group is working toward holding its first major event in the summer of 2012, with an abridged event and awards ceremony to introduce the concept in 2011.

Source: John Foley, 4FRONT
Writer:

One week after launching the state's new angel investor tax credit program, state officials had received 20 applications for certification as of Monday.

All businesses, investors, and angel funds must be certified before applying for a tax credit allocation. Officials have already received one application for credit allocation.

The statute says state officials can only release the names of businesses and investors that have been certified.

Six entities had been certified through Monday. They include:

    --OrthoCor Medical, Inc., a company that makes a device for treating knee pain

    --Investors Donald Schreifels, Sheri Aggarwal, and Charles Floyd

    --and the Twin Cities Angel II, LLC, fund

Spokeswoman Kirsten Morell said more applications are coming in every day.

Source: Kirsten Morell, Department of Employment and Economic Development
Writer:

   
Thanks to a sort of American Idol for ideas, a Twin Cities woman gets $15,000 to implement her concept, and a Minnesota foundation gets an experience that could help change the way local institutions make decisions in the future.

Christine Tubbs of Stillwater was named winner Tuesday of the inaugural Minnesota Idea Open challenge. Her idea was culled from more that 400 submissions in an online contest that asked Minnesotans to submit their best ideas to encourage healthier eating and more active lifestyles.

All submissions were posted on the contest's website, where they could be viewed and comment on by other participants. Judges picked three finalists, which were then put to an Idol-style vote. Tubbs' proposal, to put on a series of youth-led activity field days, was selected as the winner by the nearly 5,000 Minnesotans who cast their votes on the website since early April.

The Minnesota Community Foundation had the web application built through a partnership with Ashoka Changemakers, which organizes similar international contests for social entrepreneurs. Major funding came from the John S. and James L. Knight Foundation.

The two-month contest showed how the Web can be used to get more people involved in public dialogue.

"We have been able to have conversations and get ideas from people from all walks of life, all across the state," said Jennifer Ford Reedy, the foundation's vice president for strategy and knowledge management. "We didn't reach everybody, but we reached people who were not usually a part of the conversation."

The local foundation now owns the web application and plans to make it available for other organizations in the state, as well as to sponsor one or two statewide contests per year.

Up next, though: helping Tubbs turn her idea into reality.

Source: Jennifer Ford Reedy, Minnesota Community Foundation
Author: