DOCUMENT RESUME

ED 076 772 P VT 020 107

TITLE Chartering an Experience Bank: A Guide to Forming aLocal Association of Independent Businessmen.

INSTITUTION Center for Venture Management, Milwaukee, Wis.PUB DATE 70NOTE 37p.

EDRS'1,4ICE MF-$0.65 HC-$3.29DESCRIPTORS Administrative Personnel; *BLisiness Administration;

*Continuous Learning; Group Experience; *Management;Organization; Organizations (Groups); Peer Groups;Policy Formation; *ProfessiOnal Associations; *Work

/ExperienceIDENTIFIERS' *Entrepreneurs; Self Employment

ABSTRACTThis monograph briefly expldres the nature o,,

independent business apd the entrepreneur turned business maniaand presOnts the concept of a Council _of Independent Businessmen orthe adyapcement-of independent business managers. A variety ofexperiences contribute to- learning of any kind. Theentrepreneur-manager shculd develop some, means to continue to learnin areas useful to his business, This document discusses theformatiOn of.an organization of owners - managers,, for learningpurpose, not as a trade associ.ation. General rules for prodeduresand activities for such a learning organization are presented. The,document states that membership in an organization of independentoperators provides an experience bank, a storehouse of businessacumen to be deposited and withdrawn with A' high dividend yield.Included are yearly and special program outlines for such-anorganization. UM

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PERMISSION TO REPRODUCE THIS COPY.RIGHTED MATERIAL H BEEN GRANTEDBY

TO ERIC AND GRGANIZATIONS 0 ERATINGUNDER AGREEMENTS WITH THE U S OFFICEOF EDUCATION FURTHER REPRODUCTIONOUTSIDE THE ERIC SYSTEM REQUIRES

PERMISSIONOT THE COPYRIGHT OWNER

.CHARTERING AN EXPERIENCE BANK

U S DEPARTMENT OF HEALTHEDUCATION & WELFAREOFFICE DF EDUCATION

THIS DOCUMENT HAS BEEN REPRO'DUCE° EXACTLY AS RECEIVED FPOMTHE PERSON OR ORGANIZATION onicINATING IT POINTS OF VIEW OR OPIN,IONS STATED 00 NOT NECESSARILY'REPRESENT OFFICIAL OFFICE OF EDUCATION P "SITION OR POLICY

A GUIDE TO FORMING

A LOCAL ASSOCIATION':

OF INDEPENDENT

BUsINESSMEN.

irtypyrtglit By The Center For Venture Manage{ imii

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PREFACE

The-purpose of this document is to present an ideawhich-may be general educational help to small .business and sp cifically helpful to organizationswhl,ch have, as their purpose, to aid and nurturethe\entrepreneur and the independent business_seg-ment,9f society.

The Cekser for Venture Management is pleased to beable to publish this document"with the hope thatmany communkies throughout the United States willform a-Council of Independent Businessmen for themutual exdhange of information and on-the-spothelp. We have witnessed several such organiza-tions now in existence and can attest to theirusefulnest. This document is dedicated to the ,ex-pensions of this tuccessful idea. ,/,

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The .monograph, "Charter "ing -an Experience Bank;"bridAty explores the nature of .independent busi-ness and the entrepreneur turned business manager.With this introduction of the nature of the audi-ence and participant, the notion of a'Council ofIndependent B6sinessmen who ''form such a group fortheir own educational and awarehess advancement is ,then discussed in some depth. ----___

Of course, if you, the reader, would wit to visitsuch a group or wish to explore related ideas witha member or with The Center, for Venture Management,The Center will be pleased to arrange 'such an op-portunity.

The Center hopes, too, that educators may utilizethe idea contained herein to'foster such '.a groupin their own community.

INTRODUCTION

Pedagogy is a strange science. Mankind has at-tempted throughout its 8,000 yeairs of recordedhistory to educate its lineage and yet, there is nosecure*nowledge asito how people learn.' We doPfeel fairly comfortable with the notion that.a va-riety of experiences, planned and unplanned, seemto be important.,

The entrepreneur turned manager of his businessfirm does continue to learn ll) how to assess thebusiness and competitive environment, (2) newtechniques as to improving his. Managerial ability,and (3) to upgrade his human inter-relationshipsthrough a variety of means. But unless he - theentrepreneur turned manager - develops some delib-erate means to do so, his learning slows to thepoint of merely reacting to the forces of changeimpose.1 upon him.

Often men learn,in the on-the-;o6 situation, byaiscussing matters of business with-fellow men.The bustness meeting; the conference, riding to-gether in the plane-or in the pool ride, havingrunch or other convivial activities are all pratesWe learn of new events, new analyses, new tech-niques, new rerationShips.

The entreprenear7ffianager has a rather difficUlttime in utilizingNtheseobvious but uncataloguedactivities and techniquek. In the first place,because of the.felt'constraints of the man-bossrelationship .he Ls-loath to open delicate matterswiith any subordinate. Outside counselors and evenboards of directors may not be useful, or handy,or knowledgeable enough about the company or itsintimate details to seem to be helpful; Further-more, unless 'this entrepreneur-manager has a strongego, heAs unwilling to explore delicate or failurematters in. front of anybody. .In this respect, theowriermanager is a verylonely, person :n a lonelyposition.

For some, the trade association has become a meet-ing place for owner-managers of.siRiilar firms ofsimilar= size anaopf varying experiences in probleMsolving. Under certain and Tare circumstances,these meetings can become opportunities for mutualexploration management and bui.iness prob'eMs waybeyond the scope of :the trade association. Most .often, too, as the trade-associatrich becomes suc-cessfdl,,it changes in character. A- professionalsecretary is hired to further, the cause of the mem-bership. Lobbying activities take .on greater and-4reater rmportance. The organization has grown andsubcommittees are formed. As new members are ad-mitted,'they form cliques of newer members becausethey dont seem to have anything in common with theolder members who originally- built the organization

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as well as their own companies - "bck in the dayswhen times were really tough". Th4S, the sharingof experiences with. an intimite group, in an inti-

, mate 5ztt ing becomes a thing of the past.

Mankind seems to enjoy and learn/well under infor-mal conditions when they feel free to discuss mat-ters near to their hearts. intimacy can only beachieved when men have met together for some timeand have had a chance to forma group in a socio-psychological sense. In these circumstances, goodlearning experiences take place.

This article is designed to discuss the,formationof such an organization cA owner-managers forlearning purposes, not for trade protection orother purpose!. it points out the distinct learn-ing and improvement advantages derived from such anundertaking.

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INTRODUCING THE INDEPENDENT BUSINESSMAN

'A man who owns and operates his own business is,by necessity, a doer. More than that, he is a do-it-yourselfel-. Perhaps he .inherited a family busi-ness or bought an existing operation. A moreplucky entrepreneur may have built his businesshimself out of. faith and borrowed capital.. No mat-ter how he began, he remains. the pivot on which hisenterprise thrives or fails.'

Personal.drive and resourcefulness are admirablequalities and essential for success in business.The self-made man is a folk hero in America wherethe "rags-to-riches" tradition reached its peak,but self-reliance can be carried too far. Cooper-ation with others is also necessary, 'not only for a-prosperous business but for an orderly society aswell. The ability to recognize and recruLt-talentis every bit as.important as an executive's own ad-ministrative ability. Ultimately his business willdepend on the associates he chooses - and he is ad-vised to select them-as he would a wife:

Like all. generalizations, the stereotype of thebusiness leader is misleading. Dozens of exagger-ated Hollywood films have pigeon-holed him as arugged individual, ruthlessly squelching competi-tion with one hand while pulling off million dol-lar deals with the other. Ltickily, such tycoonsoperate chiefly out of Hollywood. Off-screen,business executives are as diverse arid unpredict-able as the kinds of ventures they direct. ,

Nevertheless, there is a shred af truth in the"loner" image, particularly in the small or medium-

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sized segment of the business world. *A man - orwoman - who puts his own money and reputation onthe line almost every time he makes a business de-cision is obviouslY more, ndependent than his coun

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terport in a multi-structured corporation. If hebuilt hip business himself, he may take,an addedpride in his selfrsufficiency. Even though herelies on his-colleagues within the firm, he isprobably basically not a team player.,

ATTITUDES TOWARD SMALL BUSINESS

While part of us on the part of inde-,pendent businessmen may bevo-l-untary, another part

4 stems from a chronic neglect of the smal-l_or medi-um business sector. Even defining this veryarea of the-economy is difficult. One arbitraryyardstick classified small businesses as those em-ploying less than 1,000 peopleand having an annu-al sales volume of under,$5,000,090.

the word "small" itself puts some businessmen onthe defensive. As one reasoned, "IF you thinkabout being 'small' too_much, that's what you'llalways be." But the term is merely a handy measur-ing device, -not a qualitative judjment. There isno need to be apologetic about small businesswhich remains the backbont,of the Ameriean economy,serving as the chief ,distributor And supplier ofgoods, .parts and services: Such small firms actu-ally employ, more workers than their big corporatebrothers.

Despite its importance, small.business-i's not al-ways given separate attention by government andindustry which tends to lump it with giant corpor-ations under the general biusiness umbrella.' Ironi-cally, the government sends expeifts to under-deVel-oped countries to help set up the same type ofsmall business ventures it often ignores at home.Such neglect arises from an unawareness of theunique nature of the independently owned enter-prise.

In terms of current environmental concern, soundbusiness ecology depends on the well-being of bothlarge and small operations.' A society

n iwhich fo-

cuses-o one while ignoring the other is tamperingwith is economic health. It is as if one dis-gruntledexecutive has pointed but, we classifiedhummingbirds on the basis of our knowledge of ele-phants. The two do have much in common, sharingcertain biological functionsoand a. mutui3.1 useful-ness for man. The elephant (big busineS) is asource of food and power, while the',huMmingbird(small busTness) perfOrms- an even more valuable:service by pollinating flowers, thus triggeringthe reproductive cycle of plants,on,which all ani-mal life depends. /

The analogy concludes: "A great deal is knownabb-ut the elephant, but knowledge of the humming-bird is skimpy. It would seem obvious that any-one concerned-with the care of hummingbirds wouldnot limit'himself solely to the similarities-be-tween elephants and hummTrigbirds. Yet we arequite confident that the scientific diet developedfor the care and feeding of corporate elephantsis,-also, suitable for independent small businessmanagemeht."*

,THE MANY HATS OF THE iNDEPENDENT.OPERATOWT--

What are!;tome of the factors that distinguish theindependent owner-manager" from officials of largecorporations? PerhapS the Most apparent-differ-.,i-ance, after the -disparity in sqze,and assets, isthat;the-corOoration leader has a Large staff ofspecialists-to consult, while the independerft man-ager must rely chiefly on.himself, Both must begeneralists, concerned witWall phases of theirOperations. Yet-the prOpiletor'of a smaller'un-dertaking must be something, of a specialist) asswell, in sudh%fields as engineering; hpbor dela-tions, legal affairs, Marketrng, sales' and adver--tising. With so -much to learn - and so much atstake - it Is often harder to-manage a small busi-ness'competently than to administer 'a. largelndUS-'try-which has all thiskapecialited help "built in ".,

Another bis!.difference between the tgotyp:es ofbusiness lief in the amount of risk involved. Thecorporate chrf mayAlaveinvestecrheaVtby. in hiscompany, but it isuniTkely that beAamblev hisown wealth and jtvelihOodon, a regular.basjs. In-dependent Madager.Sia not ha-ye tenure, seniority'or the progrdMmed security of tar§0 enteeptises.Moreciver, '-thescO-00 of their plant (504 prevents.theirs from planning beyOnd the imMetirate:Juttire,andthey work at ,a tempO more intense; thiethe

*"The First Five Yeets,Of the:Couocil 'Of irldepen-dent Managers, by Kart A. BoStram, 1965 .

sometimes remote transactions of the giant organ-izatlons or the specialized activity of middle=managers, Unlike the latter, their roles are notclearly defined, and, they necessarily invent theirown procedures as they go along.

A sympathetic observer has remarked: "One way toget true empathy for the independent would be totake all your savings, mortgage-your home to thehitt and borrow from friends, and place all of iton one glamour or groWth stock. You might be luckybut the hazards would be akin to the game played bythe independent\When he stakes his all on a newproduct, challenges his union in a collective bar-gaining session or goes.to tne bank or some financecompany, hat-in-hand, for money during a temporaryperiod of losses".

The problems') and outright frustraticAs- outlinedabove,make i,Ctear why only. highly, motlivated andres urceful Odtple succeed aS, independent managers:-No extbook Can teach an entrepreneur how-to builda s ccessful business, and there has been littlegui alme-from goveritient, education, fotindationsand industry'.

WHY INDEPENDENTS ORGANIZE,

What =is prbbably the best source of help is oftenignored brthe self-reliant executive who tends tothink ofhis, own situation as unicipe. He may notrealliethat.:hit:neighbor in a nearby estabtishment may not ,Onty-haVe the same prOblemt.but mayhave.tolved Oem. :Amon whO prides himself on hiseffrciency,maybe.WaSting.tiMe over quesiions al-ready answered. It makeS.Sense-for hiM-fajorn an ,assoCtatt,On-Cf hLs%Peert in order to swap commonexperiences aridcOinpare notes on mutualcproblems.

Thee busy Operator who must his work sched-ule. With many -6TVid, fraterna_Al,. family and socialAemaniWimay.ufandably balk at taking on stillanother sOliatOtiOn. :1461r60ably already belongs tosomeHtradel* prOfeSsIonal- societies geared, to ini-.proving-the-gener0-buSineSS Climate/ and he may

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assume that the proposed organization of fellowindependents will duplicate the work of theseexisting groups.

But instead of providing "more of the same," anorganization of independent operators would focusspecifically on the day-to-day activities of indi-vidual enterprises.' Participation should resultin improved performance and higher profits, aswell as a greater understanding of business ingeneral and small business in particular. Al-though side effects would have a wider impact, thechief aim of such a group.would be the self-im-provement of local business.

SOME DIVIDNDS.FOR MEMBERS.

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Response from members of one active group ihrdi-ctes that participation does indeed pay off. Afew cited higher profits'and increased.produCtiv-iey as a direct resultiof joining. Mott listedless tangtble benefits such as the .opportunity to-learn from each other-1.s experiences and to airproblems before a congenial sounding boded. Othersnoted that ascussionsIstimulated intellectualgl\ow0, making them more open to new ideas,andphilosophies and more aware of community responsi-brlity. Another by-prOduct was higher morale; formany it was-reassuring=to learn that others facedidenti\caPproblems which seemed so overwhelmingwhen encountered alone.' Just being able to 'raiseissues pne could not discuss with employees was amajor factor for a large number who.previouslyfelt, as one said, thalt they .were "carrying theentire world on our shbulders."

The head of one firm wrote: "As president of afamily-owned business, I have many diversified re-sponsibilies. It is' impossible for me to becomean expert itn ali of these jobs; in fact, in someof----them I have-little or no knowledge at all. Thegroup has given me the ability to, meet executiveswho face many of the same problems I do. No onein the orgathzation is in my'ine Of buSiness, andyet we ail have so many of the same management

problems. Most of us tackled the same difficult?problems differently, and with varying results,

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and if we try and learn not only from our own mistMakes but, also; from the mistakes of others. itcan be very beneficial indeed."

TYPES OF BUSINESSMEN'S COUNCILS

There are no set rules for organizations ofpendent managers which should be structured accord-ing to the needs of those joining. The industrialclimate-endsize of the communities iln which thegroups are'Loca%ed are'other determi6ing fat.tors.In a smallertown, an organization Mighthave moreflexible admission standards than its equivalent ina Larger city which has a broader economic base andmore kinds of industr1et.

A good example of a highly specialized associationis the Commercial Laundry Group in the Greater Chi-cago area. Some 14 laundry operators in the largemetropolitan region cooperate in this venture whichis so sophisticated that'it conducts management-training programs and has worked out a mutual buy-and-sell agreement for its own members.

Two groUps of a more diversified nature are theManagement Assistance Council in San Francisco andthe Smaller Manufacturers Association in Pitts-burgh. One of the more successful groups of en-trepreneur-operatOrs it.; the Council of Inde$endentManagers in Milwauk (C1M). This group, noW num-bering,45 members, wa formed in 1958. It laterjoined with he Society for the Advancement ofManagement (S M) with the intention that a nation-Wide affiliation would help expand and hold themembership.

As defined in its by-laws, the purpose of CUM is:"Through, research, discussion, publication andother appropriate means: to conduct and promotestudy of ,the principles governing. organized effortin privately -owned business enterprites Un whichthe owner is a bona fide executive, and to impartto the public informatitin concerning said

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pninciples, and theii;,,var407.4 applications for thegeneral betterment cif free and open society",

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COMMON' GROUND IS ESSENTIAL

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While'individual'groups present varied patterns, acomionality of .interest-is a vital factor. Size

. in6volume of an operation are mire important thanthe kind of business involved. For example,.a man

-who employs 50 workers in his printing firm will.have more in common with the owner of A medium-

.''sized bakery than with the head, of a "lar=ge ?-ing chain: By limiting membership to owners witha certain number of employees (say fforii 15 to 500)and maintaining a specified annual sales volqme

rlperhaps from $300,000 to $5,000,000) a commongroundof experience is assured.

A typical group would require each member to havean ownership stake in his business; make routine',policy decisions and \have twolevels of malagement&thus ruling out the one-man shop-and the self -em-ployed businessman. A dAfinite product or, ,serviceshould also,be required, eliminitftg such expertsas, doctors, lawyers and accountants who Imiqhtotherwise qualify for membership (and, who could betapped as guest speakers and panelists). Fran-.chised, ventures should excluded, and a membercompar* should not be a division of another firmor dependent,on a single,supplier or customer.

Generally, groups will consist primarily of ownersof inanufacturing firms, with a smaller proportionof wholesalers, retailers and officials of servicefirms, Thus, while one group, such-as the Chicagolaundry unit noted-above, will drawl its membershipfrom a single industry, another might includo-manu-facturers of clothing., ice cream, plastics,'"Stmps,or.paint,as well as wire and metal fabricators, drycleapilo operators, piumbitig contractors and.elec-trical suppliers. Such a-cross -section has obviousdrawbacks but it also opens doors to experiences,(Ideas angfriendship which might otherwise neverbe expiored.--,

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:s' FORMING A GROUP OF INDEPENDENT OPERATORS

The rules for forming an organization of indepeilld-'eRt managers are as flexible as its membership.Entrepreneurs are invariably "self-starters" whowill add their'dwn creative touches as 'the groupdevelops. The first step in fdrming such ab asso-ciation is stimply to "selluthe concept to one orSeveral able:managers willing to serve as primemovers. If .the initial months are successful, theventure will;attradt other qualified operators and)5ecome serf-sustaining. Each grou will writ itsPown,constitut4On, draw up_a format and. decide onsuch points 4* officers; boards of directors/and6es. If they consider membership profitable, mem-bers are usually willing to pay quite substantialfives (which are deductible as a business expense).

What might be termed the "entrepreneur-al syndrome"must be taken into account when planning programs.By nature, the independent businessman is an ag.:gressive crekture who prefers- participation tosive involvemen,t. A steady diet of programmed let-tymi or discaSsions :s not for him. Instead; 'hewarPts to havelmmediatt company problems bra-in-

'stormed wrth_hijil by a, fcrum of his peers. ,

Nor is it advisable to lean too heavily oh special-' ists as speakers and pailelists., in this/respect,

the organization will differ from more/conventionalgroups in which specialists confer with other spe-cialists. Of course, outsideexperts should notbe ignored as a'source of valuable advice or ob-servations. But ,a group of entrepreneurs willprobably gain more from an exchange of ideas with-in the group itself than from routine appearancesby such specialists...

"In a sense, the members of our group are native :hunters who have powwows an exchange experiences,"one man explained, "We most.certainly listen tosome of he chiefs from the big tribes, but too

dioften th ; se chiefs are fellows who are specialists,equippe, with all kinds of specialized tools whichare too /expensive for us or require too long a:traiping period or cover far too mui-ti territory -for the kind of smaller game we are .looking for."

One way to-stimulate interchange is to-involve mem- -,,hers- in the, planning and execution of programs.

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The program-chairman should submit the proposedagenda for the following year to the membershipbefore .the summer vacation period. Members canthen comment on the choice of topics and guestexperts) and sign4up as panelists or chairmen forparticular meetings. (Some-groups will remain inoperation all summer, but it is still wise tajineup speakers and book facilities before vacationschedules interfere.)

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,MAX1MIZING THE MONTHLY MEETING'

Formats will differ from group to group-, but the'monthly meeting will almost always be the-key-tosuccess - or failure. Care in Planning cannot bec'verstated, and officers should avoid wasting timeover trivial details. Since an occasional., changeof atmosphere may prove stimulating, meetog-placescan be altered.

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After tryihg the,cotiventional"dihner4eeting-with-speaker appro-aaWafie council.found ik more prof-stable to divide members .into groups of six oreight per table ancl'assign e-act uri-lt a topic re-lated to the evening'ks theme. For instance, ifthe meeting's overall subject was the- sale of stockto employees, one group might discuss the advan-,.-tages of selling stock, another might list the'disadvantages, while:a third might consider, thesteps to be taken in such an exchange.

Fortified by a Preliminary cocktail hour, dinerssat down to eat and diScuss their given topics,with one participant at each table serving as sec-retary. After the Meal, each secretary reportedon his groui's discussion, a panel of memberselaboratedion the 'subject, and a, guest expertadded some'professiohar:observationt. With sucha format,' each meeting became a workshop, withthose attending receiving a short course in busi-ness adMinistration in less than three hours'tithe.

There should be no difficulty in finding suitablethemes for meetings, as managets are always eager

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to learn more aBout,common concerfi's. A list oftypical topics might -include: labor relations,taxes, insurance, sales3 advertisingmarketing,public relAtions, data processing, investing,acquisiti-ons-and mergers, money management, pen-Sions And profit sharing; When wives are. invitedto a special meeting, their tastes should be con-sidered; the evening might be devoted to a disCus-sion of business ethics or psychology or to therole of the businessman in-the community. (SeeAppendix No. 1 for a roster of typical meeting.-themes.)

SOME RECOMMENDED ACTIVITIES .

If 'meetings are the classrooms for members of theOrganization, their commercial operations are tkelaboratories. By visiting one abother's-plantgs-and facilities, members can gain further insightsinto small busifiess economics and proCedurss.Such visits may be hard to-fit into executiveschedules-since-managers have to-manufacture.therown free time. One group solved this probleffi byarrariOng,1>reakfast tours. After an early morningmeal At the host plant or a nearby restaurant,*theowner conducted his guestS on a.;'tour of his bui-ness. Not only did the visitors encounter newtechniques they might apply to their own operations, but they acted as consultants to the owner.(Anothe'r benefit was the thorough housecleaning.the plant .undoubtedly underwent before Ole arrivalof the guests. )

An exceptionally active council mOht sponsor lec-tures, workshops, seminars and ogler events opento members and- their guests. If the public is in-vited; such affairs can also augment the group'sbank account, not to mention its,prestige. Annualsymposiums at comfortable resOset4motels can bepleasant working vacations for Yn operator and his

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Liaisons with nearby colleges, /universities andvocational and technical schOolriare also recom-mended. One faculty member fTOill each-institution

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might be admitted as an advisory member; in turn,members of the group could-volunteer to spek be-fore student groups. The organization could alsomaintain a speakers' bureau, with. members avail--able for various civic and professional events.

-Once the'organization has gained momentum, itshould be easy to maintain a stable membership.Before that point is reached, members must serveas recruiters, bringing guests to meetings andasking bankers, educators, trade groups and others

:with business contacts td point out potent.ial members. A promotional packet and the regular news-letter might be sent to likely prospects for mem-bership, followed'up by a written or telephonedInvitation to join the group or t6 participate insome group sponsored event. NeWpembers should beencouraged to take part in activities immediatelywithout an apprenticeship interval.

DIRECT EFFECTS AND BY.-PRODUCTS

Members of independent businessmen's council's.:often observe that the informal .exchange withinthe e-group is as valuable as more formally struc-tured activities. Once members are well acquainted,it is easy to pick up the phone to call neighbor-ing colleague for advice on a perplexing plantproblem. Cocktail hour chatter, luncheon datesand other social contacts outside regular groupaffairs keep members up to date on points of com-mon interest.

A library of filmstrips, books, pamphlets and perr-odicals may be advisable, and the editor of the

'organization's newsletter might direct readers'attention, to pertinent articles, college courses,television shows, films, Lectures and community

.,-1 events. The news letter can also interpret currentevents of special interest to members, perhapseven editorializing on them. Although outrightJlobbying may be outlawed by some groups, othersmay encourage members to pressure legislators forlaws favoring small business. M ely by becominga vital force in the business sph re, a group

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cannot fail to have some impact on local civi'c andcommercial life.

In a group of this type, a certain number of busi-ness transactions will be carried out between mem-bers. It is interesting.to note that members in-variably regard such business deals as bonuses,never as reasons for joining the council. Anotherdividend is.the list of specialists who haveappeared as guest experts and can be tapped foradvice when the need arises.

Stated bluntly, the chief aim of such a group isto improve the business efficiency of'meMbers.

-But there will be :broader side effects. A health-ier,business climate will create ripples in theentire community, fgrtilizing the local economy.A spirit of community service should be anotherby-product.'., Simply by meeting with his peers, abusinesSManimay be led to reassess his'responsibil-ity ih such matters as.pollution control, minorityhiring or job training. A certain number of meet-.ings each year might be set aside to discuss civicissues; the group could even undertake a communityproject such as the sponsorship of a Black entre-preneur.

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PITF*LS AND COMPLAINTS

A common,gripe of a typical businessman's councilis that meeting topics are irrelevant. Admittedly,it is difficult tofind themes that will pleaseall t she people in such a diversekgroup. Sometimesa topic of interest to a recent ,enrollee is merelya rehash of a tired theme for those with more ten,ure in the group. Probramrchairmen must be alert,trying to select topics that will spur maximun in-volvement andmaintain grouPLvitality.

Speakers are often sing lied out for adverse com-ments. Some pare criticized as full, others as tootechnical, still others as too general or inclinedto "lobby" for their particular line of work. Itis often hard fqxa.guest specialist to speak fromthe point of vieW of his hearers who may sometimes

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demand too much of speakers. As one manager con-fessed, "The disadvantage; naturally, lies in thedifficulty in maintaining participation and a highlevel of interest on the part of the entrepreneurwhose attention span is very short when not

A directed at himself!"4

Another complaint is that most members are toobusy to'do a thorough job planning and coordi-nating programs. If finances permit, a full orpart time executive secretary may be the solution.He could ,perform routine chores, edit the news-letter, maintain the library and arrange specialevents. He might also coordiRate the informationexchange center, referring members to the appro-priate colleague or specialist-for advice in solv-ing specific problems.

Size is also, frequently listed as drawback. Ifa group is too smai1_ 4 it tends to pow stunted andto lOs'e vigor. If too large, members may remainstrangei-s and hesitate to express themselves inthe easy give-and-take that is so essential to suc-cess. A larger group may solve this dilemma bysubdividing according to size or type of operationof the members involved.

There is also the poSsibility that members m4' 6ut-grow the group as their operations expand. in hisnew circumstances, a manaiser may have less, in com-mon with the others in the group, than formerly, orhe may no longer be eligible for membership. Thisis a healthy sign, as a member's success reflectsfavorably on the organization as well. If enoughparticipants "graduate" in this manner, spin-offgroups of .a more advanced nature may be forniedsuch at the Executive Committee in;Milwaukee).

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CREATING AN EPERIENGE BANK

. ,Every good businessman knows the value of money inthe bank or - better still - circulating throughhis business. -Membership in a group of independ-ent operators provides another kind of capital. Agood organization is PR experience bank, a

13

storehouse of vast business acumen deposited free-ly, to be withdrawn at will and yielding the high-est dividends! '

APPENDIX NO. 1-

a. Monthly y-Progradi

b. Spr!ng Weekend*Programs

c. Fall One-day Program.

d. Plant Tours

gto

I

PROGRAM - FIRST FULL YEAR

1960

DateProgramSpeaker

Date-Program,Speakers

DateProgram.

pateProgram,

Speakers

'1

- February 4 ,Design and Marketing Problems of a new Product

- C. C. Vander Mall, Vice President of Manufacturl'ing, Ansul Chemical Co.

- March 3Overcoming Fihancial,Problems for Small BusinessFrank Norris, Bank of Commerce

. Frank Quinn, Civic Finance Corporation.

April 7How Do YQU Select Your Management Team?Round Table Discussion

- May 5- How Does. Small Business Develop Employee Satis-

faction, and a Healthy Group;Feel-i.ng?'Jerome Stanke, Preii'dent-Generai Manager, StankeTool Corp.

C. .Griffith, Secretary-Treasurer, All StateEngineerqng Co.Dr. Mungo Miller, Psychologist

Date - June 2Program . Communjcations in, Your OrganizationSpeakers - Daniel Nettesheith, Schwaab Stamp and Seal

Ed WiSnewsky, Gleasor CorporationDr. Melvin Miller, University of Wisconsin-Milwaukee,

Date - September 8Program - How Ignorant are Small BuSiness Executives?Speaker Karl Bostrom, Chairman of the Board, Bostrom

Corporation, Discussion .Leader

Date - October 13Program - Implications of the November Election on Small

BusinessModerator - Dr. Clarke Hagensick, University of Wisconsin

Extension DivisionSpeakers Attorney General Reynolds

Attorney Glenn Pommerening

1

4

Date November 10Program Opportunities and RiSk Faking in the Owner-

Managed BusinessSpeaker Ed WisnewskyDiscussionLeader Karl Bostrom

Date - December 8Program Evaluating Administrative Management Problems of

Small BusinessSpeaker Brother Leo Ryan, Marquette University

ti

1961,

Date -Prograd",- -

Speaker

Date -Program -Speaker -

Date -Program

Speakers

DateProgramSpeaker

DateProgramSpeaker!

2

;

January 12Profi-ts, Return on Investment, Objectives ofOwner-OperatorsLewi's Kranick, President, Wisconsin Hydraulics,Inc., DiScussion Leader

February 20Sales Promotion icn the Small Business FirmJames Gibbons, President, J. J. Gibbons:Company

March 20Do We Go to Automation and Reduce the Number ofEmployees? .What Do Employees Want? Are HigherSalaries the Answer?E. F.'Brewe,r, President, Brewer Mfg.Sam Boehringer, Boehringer EngineeringR. Tjensvold,'Industrial -Relations Director,Inland Sfeel

- April 17- Do You Know How to Control Your Own Company?Jim,C, Hall, President, Heath Corporation

May 15- Improved Reading Will-Improve Management- Dr. 10 ice Richardson, University of Wisconsin-

Milwaukee

1

PROGRAM AFTER THREE YEARS

1964

Date - April 20Place Milwaukee Athletic ClubProgram Growth in Relation to Capital - With the Empha-

sis on CapitalPanel L. C. Griffith, Herman Williams, Herb Geiger

Date May 18Place - Milwaukee Athletic Club

Date - June-15Place Alioto's (Annual Wives Nght)Program - A Glimpse at "New" MilwaukeeSpeaker *- Mr. Rudolph Schoenecker, The Greater Milwaukee

Committee

Date i - September 21Place - Milwaukee Athletic aubProgram - What Do You Look for 'between the Sheets?Panel - "Exchange" session

Date - October 8PLace , Engineers and Scientists of Milwaukee, Inc.Program - Motivation and MoneyChairman - Herb HentzenPanel -.Kari Bostrom, George Raithel, Paul Bringe

Date November 16Place Milwaukee Athletic ClubProgram - How to Prepare a Simple Cash BudgetSpeaker Don NettesheimPanel - John Roethle, Martin Kraninger, Herb Thatcher

Date - Dedember 14Place Mi4waukee Athletic CubProgram - Ho to Keep Your Banker in a Jolly,Frame of

tyridPanel - Hary Rutishauser, Les Dlouhy, Dick Stevens

3

PROGRAM AFTER SIX YEARS

1,966

DatePlacePrkogramPepe]

Da ePI ce-ProPanT1

DatePlacaProg amSpea e r

Panel

DatePlaceProgra

ExpertPanel

January 17- Milwaukee Athletic Club

How. Do You Find and K*- Key EmployeesPaul Birkle, Martin Kraninger; Richard

February 21Milwaukee Athletic Club '

- What Should Your Return on .investment Be?James Wright, Vitas Thomas, 'Roger Hill

March 21 ,kx- Milyaukee AthleiicpUlo.Pqchological Testeng -.What is its Value? .

- Dr. Gerald Fort, partner, Humber, Mundie &McClary, IndustMal PsychologistsAllen Everett, Everett Hat CompanyPerc Ekholm, Employers ASsociation of MilwaukeeRobert Onan, Waukee Engrneering

Malone

April 18- Milwaukee Athletic Club- Board of Directors - How to Seland Utilize for MaximUm EffectiMr. Gordon Kenngott, The Heath

- Eugene Bass, Herbert Thatcher,Jr.

Date - June 30Place ,Milwaukee Athletic ClubProgram kt - Plan for 1966-67

1 Annual Open Board Meeting

Date October 17Place Milwaukee Athletic ClubProgram Information Explosion - How DoExpert k Mr. Gregg Hedden, Director of

1 Services Act4 King Harte, Roger Gettys Hill,

\

November 21Milwaukee Athletic ClubAutomatic Data Processing - Rapidly Becoming aSmall Business Tool6r. Fredr1.1.,Lutter, Lutter & Halstrom, Inc.,ghicago Consultants' to Management in EDP

- Ei gene Bass, Frank Brewer, HermanWilliams

Panel

DatePlaceProgram

Expert

Panel

ect, CompensatevenessCorporationCharles I. Wesley,

You Keep. Lip?theState Technical

Herb Thatcher

I

I f -

------..._

DateProgram

December- Auditing Your Business - Executive Controls

.I .

1

I

I

I

I

1

I

I

4.

.E.

i", a,

t,

PROGRAM - AFTER EIGHT YEARS

1262

'Date - January 16Program - Discarding Hats (Preventing Magerial Obsotes-

. cence) - -The Growth of the Executive

-Date - February 20).

-Place- - Milwaukee Athletic ClubPrograth - .improved Labor Relations - Everyone's ProblemExpert - Patrick Brlgden, Attorney, Lamfrom, Peck,

Ferebee & Brisden ,v.:-Panel JaMes.Wright, Bruge,Walthers Frank J. Pieva

Date - March 9Place - Milwaukee innProgram - Goals and Their EvaluationExpert - Mr. Earl 'Lundgren, University of Wisconsin-

Milwaukee fPanel - Kar, Bostrom, Aden EverYtt, Herb Hentzen, Jr.,

Marty Kraninger

Date - April -17Place Milwaukee Athletic ClubProgram - Useof Outwide Directors .and ConsultantsExpert - Charles grieve, Attorney, Prieve, Gerlach &

MeyerPanel - 'Percy Ekholm, Ken Palmer, Roland Sprenger

Date - September 1,8Place - Milwaukee Athletic .ClubProgram - Escalating Indirect CostsExpert - H.-K. von Kass, P.E.Panel - Jerry Dziodzic, Jim Grebe, Eckhardt Grohmann

Date October 16 .Program - Can Your Company,Survive You.?Expert - Arlen R. Korbel, At en R. Korbel &

Company, Inc

Date - November 20Mice - Milwaukee Athletic ClubProgram - Expansion - Where Does the Money ComeFrom?Panel - Paul Birkiel Peter Albrecht,Corpor4tion

Lewis KranIckl.Dexter-Kranick and associatesJohn D. Roethle, Anderson/Roethle and Associ-ates, Ind. .

I

ti

(late - December 18Place --Milwaukee Inn .Program - Are You and Your Management Team Becoming Out-

dated?Expert - Mr. William Breese, Milwaukee Vocational SchoolPanel - Roland Biersach, Biersach & Niedermexer Company

.. . Gunther Greis, Metal Processing Company.... Vitas Thomas, Tomco, Inc.

7

41,

I

PROGRAM - TEN YEARS LATER

1968

DatePlaceProgram

Expert

Panel

DatePlaceProgram

Panel

DatePlaceProgramModerator

Panel

January 15Milwaukee InnTraining - Control - Motivation and Remunerationof Sales Personnel

- Mr. Gerald Mintz, Vice President-Sales, WilliamsSteel & Supply CompanyFrank Brewer, E. F. Brewer Mfg. CompanyRichard Malone, Dietz Electric CompanyRoland Sprenger, Allis Top) & Machine Corporation

.

- February 19- Milwaukee Inn -- When Must You Sacrifice the Individual's Right to

the. Organization?Herbert D. Hentzen, Jr., Bruce Walthers, two Mem-bers - to be announced

March 18- Milwaukee Inn- Ethics in Business - Can It Exist?

Mr. Ray Schroggins, Sr., Vice President, AmericanCity Bank & Trust Company'Eugerie.Bass, Blankstein Enterpriss, Inc.Carl Boelter, Frank W. Boelter, -Ind.Allen D., Everitt, Everitt Hat Company

Date - April 15Place . Milwaukee Athletic ClubProgram - Do You Manage by Intuition or Objectives?Panel Richard Gebhardt, Monarch Corporation

Herman Williams, Williams Steel & Supply

- September 16- Milwaukee Athletic Club- Mergers and Acquisitions - What Are the Probilems

and Advantages?Mr. Vincent Peterson, Vice President of Finance,Koehring Company

- Lew Kranick, Dan Nettesheim, Herb-'Thatcher

- October 21- Milwaukee Athletic-Club- Do You Want to Grow - Expand?

DatePlaceProgram

bg.ert

Panel

DatePlaceProgram

Date ,- December 16_Place r' Milwaukee Athletic ClubProgram --Pension and Profit-Sharing Programs

1

)

1969

Date - January 9Place - Milwaukee Athletic ClubProgram - Employee Turnover

Date - February 17Place - Milwaukee Athletic ClubProgram - What about Employee (White Collar) Incentive

Programs?

Date *- March 17 -Place Milwaukee Athletic ClubProgram - How Do You Manage "Time" - or Does "Time" Man-

age You?

Date - April 21Place -- Milwaukee Athletic ClubProgram - As a Small Business Operator, What Thought Have

Yoii Given to Your Estate Planning?

1

SPRING WEEKEND PROGRAM(Friday, Saturday and Sunday)

1966,

Dates --May 20) 21, 22Place The.Abbey, Lake Geneva, WisconsinTheme - The Human Relations ElementSpeaker - Mr. Grant Spong, Vice President, Industrial &

Public Relations,-Quaker Industries, Antioch,illinois

Theme - An Analysis of the'Product Oriented vs. Organi-zation Oriented President of the Smaller Firms

Speaker - Dr. John L. Komives, Dtrector, Business & indus-trial Management Center, Kalamazoo College,KalaMazoo, Michigan

1-967

Dates - May 19, 20, 21Place The Pioneer Inn and Marina, Ki Ni Island,

Oshkosh, Wisconsin.

,Theme - Selecting an Executive Case StudiesSpeaker - Mr. M. L. KranningerTheme - A Simulated Business Environment, Testing Busi-.

Ness Acumen; Executive Development, and Self-Discipline

Speaker - Dr. Earl Planty, Professor of Management, Col-lege of Commerce & Business Administration,

,-. UniversityEof Illinois

1968 '

Dates - May 24, 25, 26Place Lake Lawn, Lake Delavan, WisconsinTheme - MotivationSpeaker - Dr. Wm. Humber, Humber, Mundie & McClary, indus-

trial PsychologistsTheme - Motivation ,t

Dr. George Gentry, Associate, Humber, Mundie &McClary

10

FALL ONE-DAY PROGRAM

1966

Date - October 20Place Milwaukee InnTheme - Objectives AASpeaker Mr. Fred H. Lutter,*-President, Lutter &-Helstrom,

Inc., Data Systems Management Services Firm,Chicago, Illinois

Theme - Basi,c Data Processing functionsSpeaker - Mr..Ray Grammer, Controller, Chief Laundry, Inc.,

Chicagd,Theme The Feasibility StudySpeaker - Mr. Stan Weiss, Director, "Englewood Electrical

Suppry. Company, Data Processing, Chicago,.Illinois,

Theme - Case Study of a Computer, Installation --Prob-Prob-lems of Personnel SelectiOn and Training

-Speaker Mr. Ray GrammerTheme - Personnel Requirements, Selection and TrainingPanel of SpeakersWorkshop Sessions

1967<

Date November 1 .Place - Milwaukee InnTheme - Our Experience with Formalized PlanliingPanel Pre-sentation - Mr. Karl A. Bostrom, formexly Chairman of the

Board, Bostrom Corporation; Mr. Herb Hentzen,President, Hentzen Chemical CoatingsitMr. DanNettesheim, President, Schwaab Stamp & SealCompany

Theme - Survival PlanningPanel Pre-sentation Pfrofessor John Smith, Business AdmUnistration,

University of Wisconsin-Milwaukee; Dr. 'GeraldPort, Consulting Psychologist, Partner ofHumber, Mundre & McCi3ry, Milwaukee, Wisconsin;Mr. Cl4fford F. Messinger, Consultant; John D. ,-

Roethfe, Specialist

4.,

1968

Date - November 4Place Milwaukee InnChairman Dr. Bernard J. LaLonde, Professor, Graduate

School of Business Administration, Department ofMarketing & Transportation Administration,Michigan State University, East Lansing,Michigan

Theme : - Improving Your Sales Program and Efforts

PLANT TOURS

1963

.1.Date - October 31Host --Irruce Walthers-Place - Wm. K. Walthers, Inc.

Date DeCember 5Host Frank BrewerPi ace E. F. Brewer Companx.

1964

Date - Janua'ry 30Host - Henry AlfreyPlace Erie Mfg. Company.Time - Noon.- Luncheon at Alexander's

Date - February 27Host - Lou KranickPlace - Sunlite Plastics, Inc.Time - 7:30 a:m. - Breakfast

- - -

. Date - March 26Host - James WrightPlace Wright Metal PrdcessorsTime_:.:!-7i30 a.m. -.Breakfast

Date - April 30Host Herman WilliamsMice - Williams Steel & Supply Company

Date - May 28Host - Jerry.StanekPlace - Stanek Tool Corporation

Date - October 29Host - Don NettesheimPlace - Schwaab Stamp & SealTime - 8:00 a.m. - Breakfast

Date - November 19Hosts - Mr. Wongeline and Mr. BreesePlace-- Milwaukee Institute of TechnologyTime - 8:00 a.m. - Breakfast

=Date - December 29Hosts - Herb and Bill HentzenPlace - Wisconsin Paint Mfg. CompanyTime - 7:30 a.m. - Breakfast

13

/

Date - JanuaryHost - Henry AlfreyPlace - Erie Mfg. Company

Date - March. 26Host Jim WrightPlace - Wright-Metal Processors

Date - April 30Host -; Herm WilliamsPlace - Williams,Steel & Supply Company

Date - October. 28Place - Northwestern Executive Services, Inc.Time - 7:30 a.m. - Breakfast

Date - December 2Host - Frank BrewerPlace - E. F. BrOger Company (Mfgr. of Hospital Supplies)

1966

Date - January 26Host - Mr. WolfPlace - Wolf Dry'CleanersTime - 7:30 a.m. - Breakfast

Date - February 24Host - Roland BeirsachPlace - Beirsach & Niedermeyer

Date - March 31Host - Ev HokansonPlace - Wire & Metal Specialties, Inc.Time - 7:30 a.m. - Breakfast

Date - April 28Host. - Herb HentzenPlace - Wisconsin Paint Mfg. Co.Time - :30 a.m. -*Continental breakfast

'Date - October 27Host - Di-ck MalonePlace = Dietz-Electric-Co., Inc.Time - 7:30 a.m. - Continental breakfast

1968

late - January 25Hatt - Jim GrebePI-ace Grebe''s Bakeries, Inc.Time - 7:30 a.m. - Continental breakfast

Date. - February 29Hot - Carl WamserPlace - Everbrite Electric Signs, Inc.'Time - 7:30 a.m. - Continental breakfast

Date - March 21Host - Bill BreesePlace - ,Milwaukee Technical CollegeTime - 7:55 a.m.

Date - Apri1.25Hosts - Chuck and Herb ;"GeigerPlace - Holiday Cups, Inc.Time - 7:30 a.m. - Continental breakfast

Date - September 26/Host - Carl KitzingerPlace - Kitzinger Cooperage Corp.'Time - 7:30'a.m. -/Continental brea Fast

Date - - October 24Host - Dr. John L. KomivesPlace - The Center for Venture MariagementTithe 7:30 a.m. - Continental breakfast

Date - November 21Host 7 Alien EverittPlace - Everitt Hat Company-Time - 7:30 a.m.. - Continental brcakfast

1949

Date - January 23Host - James WrightPlace - Wright Metal Processors

Date - February 27Host - Dap NettesheimPlace - Schwaab Stamp & Seal Company

Date - March 27Host - Sam Hope

1Place Griffith-Hope Company

15

Date - April 24Host - Fred YahrPlace West Bend Concrete Products

1

APPENDIX NO. 2

HISTORICAL NOTE

The following item appeared in a catalogue entitled BusinessManuscripts in Baker Library (Harvard University), page 230,under "Voluntary Associations ".

1226 1922-1932 Manufacturers' Research AssociationBoston, Massachusetts2 cases; 2 boxes (2 ft. )

Selected'files of an association of a dozen or moreMassacHusetts firms in different industries, organ-ized to excharciTinformaTEROrmUTU3TTairest. ABoston office was maintained under TEi direction ofR. L. Tweedy. Firms represented at various timeswere: American Optical, Brown & Sharpe, Dennison,Eastern Mfg., Ginn (7,. Co., Graton & Knight, HelburnThompson, Hood Rubber, Kendall Mills, Lewis Mfg.,,Nashua Mfg., Norton, Strathmore Paper, UniversalWinding, Walworth,'and Whitin; the Harvard BusinessSchool was also represented.Deposited by Hood Rubber Co., 1932.