prairie business january 2011

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PRAIRIEBUSINESSMAGAZINEPOBOX6008GRANDFORKS,ND58206-6008

CHANGESERVICEREQUESTED

HEALTH CAREStreamlining efficiencies with EHRs pg. 30

January 2011

Telecommuting, initiativesgrowing Fergus Falls pg. 34

BUSINESS ADVISE10 Business tips pg. 16

TOURISMRegional Impact pg. 48

Information Securityis a real issue pg. 18

pg. 40

4 Prairie Business January 2011

Volume 12 No. 1CONTENTS

18

243034

6 From the Editor’s Desk

8 Women in Business

10 Prairie News

14 Prairie People

16 10 tips for businessesThe New Year is a good time for owners to take stock of

their businesses to see where improvements can be made to

ensure success for the future.

Company Profile:Secure Banking SolutionsInformation Security is a real issue and increasing

legislation is creating some unique opportunities for

Secure Banking Solutions.

21 Matthew Mohr

22 Family Business tipsFamily businesses play a crucial role in our economy and

most grow from an entrepreneurial passion.

Cover Story (Energy)Clean Energy technology helps drive economy.

Cover Story (Healthcare)Creating efficiency with electronic health records

Community Profile:Fergus Falls, MNTelecommuting, initiatives growing western Minnesota

community

48 Tourism impacting regionRegion seeing signs of increased tourism

50 Viewpoint

51 Programs starting because ofemployer need

54 By the Numbers

40Preparing the Energy future

44Legislation crafted to encourage energyinnovation and investment

46Main challenge for South Dakota is wind

Next MonthIn February, Prairie Business magazine will discuss the keyindicators and trends pushing commercial investment for startup businesses, as well as expanding businesses, explore howexporting activities drive economic development in our region,and focus on if there is a need for a biotech industry cluster inthe region.

On the airJoin Prairie Business magazine Editor Alan Van Ormer and hostMerrill Piepkorn on Tuesday, Jan. 11 at 3 p.m. on any PrairiePublic radio station to hear more about the January cover story.To listen to Prairie Public, visitww.prairiepublic.org/radio/hear-it-now.

NORTH DAKOTAis our classroom.ENERGY EDUCATIONis our mission.

The School of Engineering and Mines at the University of North Dakotacontinues to be a world leader in energy-related education and research.

THREE NEW DEGREES ...• the Bachelor of Science in Petroleum Engineering,• the Master of Science in Energy Engineering, and• a customizable Ph.D. in Chemical Engineering

... join our Ph.D. in Engineering with an energy track to create a strong academic focus on energy. Infact, the Master of Science in Energy Engineering is the nation’s first graduate degree in sustainableenergy engineering. The UND School of Engineering and Mines is responding to the needs of the stateby providing education and research to support development in the Bakken Formation in western NorthDakota, as well as in other traditional and alternative forms of energy.

The UND Petroleum Research, Education and Entrepreneurship CenterHosted by the School of Engineering and Mines, the Center seeks to:

• Improve our understanding of the petroleum geology, geophysics and engineering of theWillistonBasin;

• Develop enhanced recovery techniques for the Bakken Formation;• Develop techniques for carbon dioxide sequestration in theWilliston Basin;• Develop engineering-enhanced geothermal systems using oil field waters to generate electricalpower;

• Address environmental and policy issues of petroleum production; and• Help entrepreneurs develop new businesses and industry.

The Center’s educational mission will be to train UND students and industry professionals to meet thechallenges of these focus areas and in the special techniques for extracting oil from the Bakken Formation.

Creative. Innovative. Entrepreneurial. Spirited.

www.und.edu / www.engineering.und.edu / 701-777-3411AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION INSTITUTION


Mike Jacobs, PublisherAlan Van Ormer, EditorScott Deutsch, Sales ManagerTina Chisholm, Production ManagerBeth Bohlman, Circulation ManagerKris Wolff, Layout Design, Ad Design

NNAATTIIOONNAALL AACCCCOOUUNNTT SSAALLEESS//SSAALLEESS MMAANNAAGGEERR::Scott Deutsch 701.232.8893

Grand Forks/Fargo/Moorhead/northwestern MNSSAALLEESS::

Brad Boyd 800.641.0683Bismarck-Mandan/ west central ND/north central SD

John Fetsch 701.232.8893Fargo/Moorhead/eastern ND/western MN

Jeff Hanson 605.212.6852Sioux Falls/southern SD/southern MN

EEDDIITTOORR::Alan Van Ormer 701.232.8893

[email protected] AAddvviissoorrss::Ann Reich, North Dakota Bankers Association, Bismarck; Hiram Drache,Historian-In-Residence, Concordia College - Moorhead; James Ferragut, -Fargo,ND; Tom Shorma, President, WCCO Belting - Wahpeton; KarenFroelich, Professor, College of Business Administration, NDSU -Fargo; Bruce Gjovig, Director, Center for Innovation, UND - Grand Forks;Steve Rendahl, Associate Professor, UND School of Communication -Grand Forks; Matthew Mohr, president/CEO, Dacotah Paper Company -Fargo; Julie Fedorchak, Communications Manager, North DakotaDepartment of Commerce - Bismarck, ND; Mary Batcheller - GreaterFargo Moorhead Economic Development Corporation, Fargo, ND;MeganOlson, President/CEO, Watertown (SD) Area Chamber of Commerce

Prairie Business magazine is published monthly by the Grand ForksHerald and Forum Communications Company with offices at 8083rd Ave. S., Ste. 400, Fargo, ND 58103. Qualifying subscriptionsare available free of charge. Back issue quantities are limited andsubject to availability ($2/copy prepaid). The opinions of writersfeatured in Prairie Business are their own. Unsolicited manuscripts,photographs, artwork are encouraged but will not be returnedwithout a self-addressed, stamped envelope.

Subscription requests:Free subscriptions are available online to qualified requestorsat www.prairiebizmag.com.

Address corrections:Prairie Business magazine PO Box 6008 Grand Forks, ND 58206-6008 [email protected]

Online: www.prairiebizmag.com

An SBA Award Winning Publication

From the editor’s desk

Change is on the horizon for Prairie Business magazine.Over the next few months, we will be slowly integrating different

ideas that include a new logo, shorter stories, monthly discussion ondifferent topics like economic development, leadership, and technology,as well as focusing in on a new layout and design strategy that webelieve will make the magazine more appealing to our readers.

What we will not do is change the quality of stories that you havebecome accustomed to over the past 10 years, which includes our coverstory series, as well as Prairie People, Prairie News, Women in Business,and Viewpoint.

We hope you will enjoy the fresh approach to the region’s premierbusiness magazine.

In fact, in the last two months you might have noticed a change inthe cover. In December, our 40-under-40 cover had much more whitespace than in past issues. In this issue, you will see a change in our logo,as well as a start to our layout and design strategy.

In a way, the two cover stories are talking about issues that are alsoin a change mode. For example, experts are predicting that clean energytechnology could be a boon for jobs in 2011 and beyond. This is a bitdifferent than the types of jobs that we have known throughout ourlives. In addition, electronic health records, although having startedimplementation a few years ago, healthcare facilities are quickly makingefforts to get online to help with more efficiency for patients. That isquite different than having to go in and fill out paperwork when seeinga doctor or getting your eyes checked.

You will also notice in this month’s issue informational stories thatfocus on helping businesses, business managers and employees improvethe way that business is done in this region. For instance, Eric Giltner’sTen Business Tips to Start the New Year provides tips for smallbusinesses to consider in the New Year. Also, the Prairie Family BusinessAssociation understands the importance of family business in thisregion and has provided a piece on Top Concerns Family Businessesface in 2011.

These stories are just a taste of what there is to come in 2011.

Magazine moving into the future

We hope you will enjoy the fresh approach to the region’spremier business magazine.

For daily business newsvisit prairiebizmag.com


Being the vice president of ClearwaterCommunications in Bismarck, ND, is a time-consuming job in itself. But when you add on

managing the Information Technology Council of NorthDakota, Deana Wiese has had to learn to focus on a fewitems at a time and doing them well.

“When working with membership organizations withlimited resources, I have learned the importance offocusing on a few items and doing them very well versusspreading your resources too thin and not being effectiveat anything,” she says. “I have also learned the value indeveloping and implementing long-term strategic plansand annual work plans, which ensure boards, membersand staff are all on the same page moving forward.”

ITCND’s mission is to actively encourage the use,growth, and development of information technology inNorth Dakota. This is accomplished through six areas ofwork: promotion and communication, knowledge sharingand networking, talent development, businessdevelopment and entrepreneurship, advocacy andlobbying, and infrastructure development.

“Information technology is an integral component inthe operations of virtually every business around the globefrom the service industry and trucking companies tomanufacturing specialists and health care professionalsand from large companies to small sole proprietorbusinesses,” Wiese explains.

The technology council has identified convergence,virtualization, and software as a service (SaaS) as threeemerging state trends that will impact businesses. Inaddition, virtualization and smart phones were identifiedas national trends with the greatest potential to impactbusiness.

ITCND impacts the state by bringing togetherindustry, education and government leaders to advance

one of the state’s target industries. It seems to be working.In the past six years, job growth in North Dakota’s ITsubsectors has tripled that of the nation. Currently thestate’s IT subsectors employ 16,500 people at more than2,400 IT-related businesses. These businesses contribute$617 million to the state’s gross domestic product, whichis an increase of 65 percent over a 10-year period. Inaddition, total employee compensation contributed to thestate’s economy in 2009 by the 16,500 jobs in the ITsubsectors was approximately $757 million - an increase of56 percent since 2003.

And Wiese has been a part of this technologytransformation in the state. As a vice president of anassociation management and public relations firm, she hasused her mentors to help build knowledge and skills toeffectively manage organizations. Prior to becomingITCND’s executive director in 2007, she served as theassistant executive director for four years.

She admits that the best part of serving as the executivedirector of ITCND is working with North Dakota’sindustry, government, and education leaders who arepassionate about the advancement of North Dakota’s ITindustry. The most challenging aspect is ensuring the ITindustry has the workforce needed to continue its growthinto the future.

“Over the next decade, replacement and new positionswill equal nearly 40 percent of the current IT employeesacross all of the state’s industries. These are jobs paying 59percent higher than the state average,” Wiese states.“Through ITCND’s IT Career Awareness Program, we areinforming students, parents, and educators of theseopportunities with the goal of increasing the number ofstudents pursing IT career paths.” Alan VanOrmer - [email protected]

Women in businessOne in five firms with revenue of $1million or more is woman-owned.www.womensbusinessresearchcenter.org

Focus is a lesson learned

PB

Hiring Outlook

Manpower Inc., an innovative workforce solutions company, recently released the quarterly Manpower Employment Outlook Survey to

measure employers’ intentions to increase or decrease the number of employees in the first quarter of 2011. The results are based on interviews

with 18,000 employers located in the 50 states, the District of Columbia, and Puerto Rico. Here is what are region is expected to look like:

PERCENTAGE OF COMPANIESEXPECTED TO HIRE MORE EMPLOYEES:

Minnesota UnitedStates

14%14%

15% 18% NorthDakota

SouthDakota

PERCENTAGE OF COMPANIESMAINTAINING CURRENT STAFF LEVELS:

NET EMPLOYMENT OUTLOOK(seasonally adjusted)

UnitedStates

Minnesota

5%9%

10%

7%NorthDakota

SouthDakota

Minnesota 73%

North Dakota 70%

South Dakota 80%

United States 73%

Currently the state’sIT subsectorsemploy

16,500people atmore than

2,400IT relatedbusinesses.

These businessescontribute

$617million

To the state’s grossdomestic product,which is anincrease of

65%over a tenyear period.


Prairie NewsPress releases and photos about business news and events inNorth Dakota, South Dakota and western Minnesota can be e-mailed to [email protected] for consideration

EAPC ARCHITECTS ENGINEERS FINALIST INCONCEPTUAL DESIGN COMPETITION

EAPC Architects Engineers was recognized as a finalistin the international conceptual design competition“Downtown Fargo: an urban-infill competition” put onby Kilbourne Group, a Fargo development companycommitted to supporting the redevelopment ofDowntown Fargo. The competition garnered 160entrants from 23 countries.

The public was invited to vote for the People’s ChoiceAward. EAPC’s entry was among three who receivedrecognition. EAPC associate Sean Sugden said he is verypleased with the recognition. “To be one of the top nineout of 160 is an incredible honor,” said Sugden. “To beone of the top three chosen by the popular vote is atestament to how our staff and company are cutting edge,yet sensitive to the region’s definition of excellent design.”

Via the international conceptual design competition,Kilbourne Group challenged designers to envision amulti-use urban solution to address retail, office,residential, parking, and plaza space needs for the U.S.Bank Plaza and surface parking lot located alongBroadway in Downtown Fargo.

NEW SOCIAL SITE CREATES LINK FORHEALTHCARE STAKEHOLDERS

Central Minnesota Area Health Education Center(AHEC) has launched a versatile social hub athttp://cmnahec.com/. The site links students, health careprofessionals, and other stakeholders to the latest events,news and information pertaining to Central MN AHECand their mission.

Central Minnesota AHEC is one of six regional officesin the Minnesota AHEC Network that promotes ruralhealth educational opportunities and addresses healthworkforce challenges. The office serves a 15-county regionof central Minnesota connecting students to careers,professionals to communities, and communities to betterhealth.

NORTH DAKOTA ECONOMIC DEVELOPMENTLEADERS HONORED WITH GOVERNOR’SCHOICE AWARDS

Twenty-four North Dakota economic developmentleaders and projects were recognized at the 2010Governor’s Choice Awards for Economic DevelopmentBanquet in Bismarck. The six winners are: DorindaAnderson of West Fargo for Outstanding ProfessionalDeveloper; Becky Leonard of St. John for OutstandingVolunteer Developer; Charlie Bullinger of Bismarck forOutstanding Innovator; Iain Watt of New York City forOutstanding Ambassador; National Information SolutionsCooperative of Mandan for Outstanding Project; andShane Goettle, Commerce Commissioner, was presentedthe Visionary Award.

SANFORD HEMATOLOGY AND ONCOLOGYRECEIVES RECOGNITION FOR CANCER CARE

Sanford Hematology and Oncology in Sioux Falls hasbecome one of the first oncology practices in the nationto be recognized by the Quality Oncology PracticeInitiative (QOPI®) Certification Program, an affiliate ofthe American Society of Clinical Oncology (ASCO). TheQOPI® Certification Program is a new initiative to certifyoncology practices that meet rigorous standards for high-quality cancer care.

Sanford Hematology and Oncology is one of only 42that have currently received the inaugural certification in2010.

QOPI analyzes individual practice data and comparesthese to more than 80 evidence-based and consensusquality measures. The information is then provided inreports to participating practices. Individual practices arealso able to compare their performance to data from otherpractices across the country. Based on this feedback,doctors and practices can identify areas forimprovement.

NEW ASSOCIATION PROVIDING UNIFIEDVOICE FOR MOORHEAD BUSINESSES

The Moorhead Businesses Association (MBA) is astart-up non-profit entity geared to retain and increasethe visibility of existing businesses in Moorhead, MN byproviding advocacy and networking opportunities. Indoing so, the MBA hopes to reinforce the vitality ofMoorhead business and create a more inviting landscapefor potential new businesses. The MBA offers members anavenue to pursue changes to policies directly affectingbusinesses and organizations in Moorhead.

“To be one of the topthree chosen by thepopular vote is atestament to how ourstaff and companyare cutting edge, yetsensitive to the

region’s definition ofexcellent design.”

- EAPC Architects EngineersAssociate Sean Sugden

South Dakota andMinnesota made upthe vast majority ofSouth Dakota’s

GOED leads in 2009– 58.4 percent.

Source: South Dakota2009 EconomicDevelopment Annual Report

DYKHOUSE STUDENT-ATHLETE CENTER RECEIVES LEED CERTIFICATION The Dykhouse Student-Athlete Center at South Dakota State University has achieved

LEED gold, green-building certification. LEED stands for Leadership in Energy andEnvironmental Design.

The award was given by the U.S. Green Building Council, the nation’s pre-eminentprogram for the design, construction and operation of high performance green buildings.

The Dykhouse Center achieved LEED certification for energy use, lighting, water andmaterial use as well as incorporating a variety of other sustainable strategies. By using lessenergy and water, LEED-certified buildings save money for schools and taxpayers; reducegreenhouse gas emissions; and contribute to a healthier environment for residents,workers and the larger community.

Koch Hazard Architects designed the building, and Sunkota Construction built theDykhouse Student-Athlete Center. Both companies operate out of Sioux Falls.

prairiebizmag.com 11

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BANK OF NORTH DAKOTA EXPANDSCOLLEGE SAVE

College SAVE is now open to financial advisors.Bank of North Dakota recently announced

expansion of North Dakota’s 529 college savings plan,will offer families who work with financial advisors aflexible, smart way to move one step closer to the goalof saving for a higher education.

North Dakota residents and their financial advisorswill benefit from: • Federal and state tax-deferred growth and tax-freequalified withdrawals• A state tax deduction for North Dakota taxpayers ofup to $10,000 if married and filing jointly, and up to$5,000 if single (per year in both cases)• An opportunity to qualify for a matching grant of upto $300 from Bank of North Dakota• Flexible investment options and control over theaccount

More than 160 advisors reside in cities that includeBismarck, Minot, Fargo, Grand Forks, Kenmare,Lamoure, Jamestown, Beulah, Bottineau, Bowman,Devils Lake, and Williston.

SERVICES EXPANDED INTO WILLISTONNorth Dakota Guaranty and Title Company, the

state’s leading provider of land title information andrelated services, has acquired the land title records ofNorthwest Abstract and Title, Inc, and is now an officialabstractor for Williams County.

The new office in Williston will provide professionaltitle information services including abstracting, titleinsurance, loan closings, 1031 exchange services, andoil, gas and mineral title searches and reports.

NDGT continues to expand in the energy sectorcounties of central and western North Dakota and nowprovides complete land title information services inBismarck, Mandan, Minot, Dickinson, Watford City,Killdeer, Mohall, and Williston.

SUPERIOR HOMES TO EXPAND OPERATIONTO MADISON

Superior Homes of Watertown, SD, is expandingits operations into Madison, SD, in order to serve theready-to-move, one-piece new home constructionmarket.

Superior Homes will utilize a factory previouslyestablished for home building of this type.

Superior Homes Watertown facility constructsmodular homes and commercial buildings in a factoryenvironment for an eight-state region and threeCanadian Provinces. With over 55 years of experience inthe housing industry, Superior Homes has a capacity tobuild projects ranging from entry level to executive levelhomes plus a wide array of other building projects thatutilize a factory-setting approach to construction.

LABOR DEPARTMENT AWARDED $617,000FOR JOB TRAINING

The South Dakota Department of Labor (DOL) hasbeen awarded $617,040 in federal funds for an on-the-job training program. The National Emergency Grant isfunded by the American Recovery and ReinvestmentAct of 2009.

Businesses creating on-the-job trainingopportunities can be reimbursed 50 percent to 90percent of the wage rate, depending on the size of thebusinesses. The reimbursement is to assist with thecosts of the training.

Private for-profit and non-profit businesses canparticipate. Businesses are responsible for providingadequate and appropriate short-term training. Theymust also strongly consider hiring the workers full timewhen their training is complete.

INSIGHT TECHNOLOGIES GARNERS ELITEAWARD

Insight Technologies has been named an MSP ElitePartner by N-able Technologies®, the global leader inremote network and systems software for ITdepartments and managed service providers.

N-able’s MSP Elite Partners represent the company’stop-performing partners worldwide and many are alsorecognized as the IT industry’s fastest growing and mostsuccessful MSPs.

NEW CENTER ASSISTING COMMUNITIESThe Great Plains Center for Community Research

and Service has been established at Minot StateUniversity in Minot, ND.

The center will support public and nonprofitagencies within the region through focused researchassistance, program assessment and evaluation, surveydevelopment and analysis, and collaborative problem-solving activities. There are two major components ofthe center: research focused on issues and problemsassociated with the Northern Great Plains anddevelopment of programs to disseminate informationand engage students in community research.

SIMLAT OPENS OFFICE IN GRAND FORKSSimlat, Ltd., an Israeli-based company and a leading

provider of next generation mission-training solutionsfor unmanned vehicle systems (UAS) and forIntelligence, Surveillance, and Reconnaissance (ISR) hasopened an office in the Center for Innovation in GrandForks, ND.

The company was expected to begin full operationsin Grand Forks in December with plans to continuegrowth and expansion of its turnkey UAS trainingsolutions in Grand Forks. Simlat also expects to hire upto five employees in the near future.

Prairie NewsPress releases and photos about business news and events inNorth Dakota, South Dakota and western Minnesota can be e-mailed to [email protected] for consideration

The output ofmedical suppliesproduced in theUnited States is

expected to grow atan annual rate of 4percent between2009 and 2014.

- Source: South Dakota2009 EconomicDevelopment Annual Report

Businesses areresponsible forproviding

adequate andappropriate short-term training. Theymust also stronglyconsider hiring theworkers full time

when their training iscomplete.

Labor Department Award

In 2009, 44.2percent ofMinnesota’s

employment was in10 major industries.By 2019, thisconcentration is

projected to stand at47.2 percent.

Source: MinnesotaEconomic Trends September2010

KOLBECK CHOSEN TO LEAD PUCCommissioner Steve Kolbeck will chair

the South Dakota Public UtilitiesCommission for the next two years.Kolbeck replaces Dusty Johnson, who hasbeen named Chief of Staff for incomingGov. Dennis Daugaard.

Kolbeck, who has served as PUC vicechair since 2008, is beginning his fifth yearon the commission. He is a member of theNational Association of Regulatory UtilityCommissioners, serving on the association’sCommittee on Telecommunications. Heholds appointed positions through NARUCto the Federal CommunicationsCommission’s InterstateTelecommunications Relay Services FundAdvisory Council and the Federal-StateJoint Board on Jurisdictional Separationswhere he is the state chairman. Kolbeck isalso the president of the Mid-AmericaRegulatory Conference and the RegionalOversight Committee.

SCHWARTZ IS CERTIFIEDRAINMAKER

Denys Schwartz is a Certified Rainmakerfor RAIN Source® Capital.

She will be responsible for identifyingand organizing accredited investors intocommunity-based angel investor groups tosupport local entrepreneurs who are leadingearly-stage private companies. Schwartz isresponsible for organizing funds in theBismarck area and surroundingcommunities.

RAIN Source® Capital is the nation’sleader in organizing angel investors intofunds with 24 funds and counting in sixstates including North Dakota; RAINSource® Capital’s management teamprovides professional management servicesto its network of funds.

Schwartz’s experience is extensive andexpansive across a variety of industries aswell as having served under both GovernorsSchafer and Hoeven. Most recently, she hasspent the past four years as the GeneralManager for Northern Plains Investments,LLC, North Dakota’s first angel investmentgroup.

VANHOFWEGEN NAMEDMANAGING DIRECTOR FORDAKOTAS AMERICA

Lin VanHofwegen, vice president ofoperations for South Dakota RuralEnterprise, has been named ManagingDirector for Dakotas America LLC.

Dakotas America, a communitydevelopment entity (CDE) with $130million under management, was formedthrough collaboration between NorthDakota Rural Development FinanceCorporation and South Dakota RuralEnterprise, Inc., which serves as themanaging entity of Dakotas America.

VanHofwegen has wide-rangingexperience with economic development onthe Great Plains.

VanHofwegen worked extensively on therecent project by the SD Wheat Growers,whose investment in three Dakota townswill have a total economic impact of $170million, thanks to the availability of aDakotas America LLC New Markets TaxCredit (NMTC) allocation.

TWO JOIN BISMARCK WEBDEVELOPMENT TEAM

Matthew Gieser and Matt Ferderer havejoined the KK Bold web development team.

Gieser comes to KK BOLD with morethan five years of web developmentexperience specializing in media and sitedesign. He has a degree from BismarckState College. Gieser is originally fromMandan. Ferderer holds a graphiccommunications degree from MinnesotaState University Moorhead. Originally fromLinton, ND, Ferderer has been developingWeb sites since he was in high school. KK BOLD (formerly Kranzler KingsleyAdvertising, Marketing and PublicRelations) is dedicated to helping clientsbuild more effective brands by integratingbrand strategy and brand identity. Clientshave a wide range of challenges that shareone common objective: build a moreeffective brand by managing consumers’expectations for their company’scompetitive advantage. KK BOLD providesservices in advertising, branding,interactive, media, public relations, politicalconsulting and casino marketing for clientsacross the upper Midwest and throughoutthe United States.


Prairie People

Please e-mail photos and press release announcements of hirings, promotions, awardsand distinctions received by business leaders in North Dakota, South Dakota andwestern Minnesota to [email protected] for consideration.

STEVEKOLBECK

DENYS SCHWARTZ

LINVANHOFWEGEN

MATTHEWGIESER

MATTFERDERER

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9

10

1

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Business Advice

Ten Business Tips to Start the New Year

Think Proactive. Experts contend the cost of acquiring a new customer

is five times that of servicing an existing one. Anunderlying concept of “Relationship Marketing” is tointegrate your product/service offering into the demandsystem of your best customers. The customer receivesyour offering on-time without the hassles of ordering andwaiting for delivery. Think of how your business can beproactive by offering solutions to problems your bestcustomers haven’t even yet discovered.

Add Social Media to Your Networking. While it is still important to network through

traditional methods, a business cannot ignore the fact thata whole generation of customers is using social networkingto meet their needs.

Business Process Management (BPM). Every business has beginning-to-end flow processes

involving three valuable assets: information, materials, andcash. The use of technology to optimize the most efficientmeans of controlling these assets in order to meetcustomer needs is at the heart of BPM. This technologyallows decisions to be made “along the process flow” ratherthan resorting to the slower and more traditionalhierarchical management approach. If better decisions aremade at a faster rate, then customer needs will be metmore efficiently and effectively.

Green Isn’t Going Away. Integrating green measures into your business facilities

and operations will save money through reduced energycosts. There are government grant programs to help offsetto costs of energy related building improvements (seeUSDA’s Rural Development Department for moreinformation).

Subcontracting. Many businesses are realizing they can’t do it all and

effectively compete in today’s economy. By focusing onwhat they do best, businesses can position themselves tobetter meet the needs of their target market than thecompetition. The subcontracting of secondary operationsreduces payroll costs and eliminates inefficiencies.

Embrace Employee Empowered Customer Service.Many firms are dumping the old mantra of “the

customer is always right” with an approach aimed atproviding training to employees in procedures allowing fora “shared” approach in solving customer issues.

Data Mining. Businesses knowingly and unknowingly amass a

tremendous amount of information related to theircustomer’s needs, behaviors, and activities. Yet very few ofthem know how to use this information to benefit theirbottom line. Using this data to extract an informationaladvantage regarding patterns and trends is what datamining is all about.

Personal Touch. Today’s technology allows us to send messages to others

from any place at any time. What often gets lost in thesetext and e-mail missives is the personal touch. Add apersonal touch to your business retinue this year by gettingout and visiting your customers. Send hand written noteswhen appropriate – not only will they be greatlyappreciated but they are much more likely to be read bythe intended recipient than an electronic message.

Invest in Your Employees. Successful firms all have one thing in common – they

invest in their employees in a variety of ways. Training isprovided to keep workers engaged and fully prepared to dotheir jobs. Productive workers are rewarded withrecognition and spot awards. Investments in technologyallow for employees to have the proper equipment to dothe job right. Profit sharing programs are implemented togive each and every employee an incentive to keep an eyeon profitability measures.

Take Time to Have Fun. Studies have shown that productivity is increased and

absenteeism reduced in organizations that inject a littlefun into the workplace. Taking time to have fun is a greatway to improve employee morale and reduce somebusiness stress.

Small business owners will be ushering in the 2011 New Year with the customary well wishes for their customers,suppliers, and employees. As no one really knows what is around the bend in the economic future (how many of ussaw the subprime market collapse coming five years ago?), this is also a good time for those owners to take stock oftheir businesses to see where improvements can be made to ensure success for the future. Here are ten business tipsto consider in the new year.

ERIC [email protected]

PB

RECRUITMENT•RETENTION ~RESULTSDIV I S ION OF VOCAT IONAL REHABI L I TAT ION

Recruitment & Retention ADA Resources Assistive Technology Rural Services

DISABILITY

for more information visit

nd.gov/dhs/dvr/or call us at

1(800)755-2745a partner

in

reliability.

In times of low unemployment, business cannot afford to lose keypersonnel. Should a highly-skilled, productive employee incur a disability,business owners and employers need to know that they have resources attheir disposal to help keep that person on the job. What DVR can bring to

the table for business can have a positive impact on the bottom line.Our featured services are not just employment driven, they can

help businesses access a growing market segment.”

~ Harley D. Engelman, DVR Business Relations/Marketing Director

“We are seeing financial institutions under increasingregulatory pressure” states Jeff Haase, Chief OperatingOfficer for SBS, headquartered in Madison, SD. “Thechallenge for smaller institutions is that they don’t havethe resources to meet the requirements. Financial

institutions are expected to understand more and moreregulations and that becomes burdensome for them.”

This is a familiar statement that SBS hears from otherindustries, like healthcare, insurance, title companies,attorneys, and accountants.

“We hear all the time, ‘I do not understand what I haveto do,” Haase explains.

That is where SBS steps in and partners with theorganization to help the staff understand and workthrough the process.

Secure Banking Solutions began as a company thatprovided information security consulting services tofinancial institutions in 2004. Today, SBS has expanded itsinformation security consulting services to includepenetration test, vulnerability scans, IT audits, socialengineering, business continuity planning and testing,incident response planning and testing, identity theft red

flags, security awareness training, and regulatory crisismanagement. While the core market is financial servicesindustry, the company is seeing a lot of interest from otherindustries like insurance, accountants, attorneys, andhealth care.

SBS has employees in Madison SD, Madison WI,Kansas City MO, Des Moines IA, and Philadelphia PA,with customers in 38 states across the nation. SBS haspartnered with eight financial institution associations,including associations in North Dakota, South Dakota,and Minnesota, to assist in the distribution of its productsand services.

SBS developed a formalized approach to informationsecurity to comply with federal and state regulations. Thisintuitive manual process is very useful to financialinstitutions as SBS partners with the financial institutionto become their security expert. As SBS expanded tolarger financial institutions it became clear that theseorganizations had the personnel resources to execute thismanual process. So in 2006, SBS began working on asoftware program to help financial institutions automatethe then manual task of assessing risk associated with the

Information Security is company’s niche

Company Profile

Information Security is a real issue and increasing legislation is creating some unique opportunitiesfor Secure Banking Solutions (SBS) to become more than just an information security company forthe financial services industry.

Secure Banking Solutions

?“We hear all the time, ‘I do not understand what I have to do,” Haase explains.

18 Prairie Business January 2011(continued on page 20)


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use of technology and creating information securitypolicies. This software called TRAC ™, has since becomeindustry-leading information security software that canexecute information security risk assessment in a fractionof the time.

Today TRAC™ can execute information security riskassessment, develop policy, perform due diligence on thirdparty vendors, execute project management programs,specialized risk assessment processes, and perform internalaudit. This will yield an efficient, effective and ease of usesoftware program to manage information security.

SBS is the recipient of a USDA grant to research andformalize an information security program for Main StreetAmerica. Main Street America businesses are insurancecompanies, title companies, attorneys, and tax preparers,health care providers, anywhere that private andconfidential information is stored or transmitted. TheUSDA grant focuses on alleviating security issues for MainStreet America, by researching a documented,standardized, and formalized approach to assist MainStreet businesses to understand and implement goodinformation security. The USDA project will create newjobs tied to the protection of information security forMain Street America.

“This is a real issue and SBS is excited to partner withthe USDA to develop a program that will make a

difference to a real threat in rural America,” Haase says. The most significant change for the company has been the

expansion of its products and services to help those businesseson Main Street to understand information security.

“Most consulting companies are service oriented,”Haase states. “We take the process and develop an easy touse automated solution to help businesses protect theirsensitive information.

“With the USDA grant, we have the ability to researchrural America, 13% of small businesses involved in fraudlost more than $25,000” Haase explains. “There is a realissue out here in rural America. Hackers are getting intosystems and funneling money out of small businessaccounts. There is a lack of understanding of whatindividuals and companies need to do. SBS is working toformalize a program that will assist Main Street America.”

SBS is committed to the rural community financialservices industry, however, in the future; Haase sees thedevelopment of a formalized approach into Main StreetAmerica to assist with compliance. “With all the electronictransactions and records, becoming the norm, you have toinstitute security measures that protect that information,”he explains. “We have to make sure that informationsecurity is part of the culture, not bolted on afterward.”Alan VanOrmer - [email protected]

Company Profile

Secure Banking Solutions

There are 30employees with salesoffices in MadisonSD, Madison WI,Kansas City MO,Des Moines IA, andPhiladelphia PAgenerating morethan $1.5 million inannual revenue.

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DESCRIPTION

(continued from page 18)

PB


Call 1-800-908-BANK or visit Bremer.com.

Member FDIC. ©2011 Bremer Financial Corporation. All rights reserved.

You don’t have to be big to think big. Combine your positive

outlook with our financial expertise and you have the right ingredients

for success. Let us show you how to take your business to the next

level. Let’s take action. Your business. Our bank.

Let’s think big, and see howmuch your business can grow.

During the last quarter I was able to attendpresentations by two different prominenteconomists. Uncharacteristically, both

economists shared a similar message in regards toour improving national business climate.

Most local business owners feel a change inbusiness conditions immediately, but few see theimpact of changes in our global economy untilthe change is well under way so interpretingnational or international economic data is achallenge. Business owners must stay up to dateon global economic conditions, but for the mostpart, local or regional conditions have much moreimpact than the global economy does on mostbusinesses. Solid business connections or anetwork of friends in business will keep a businessowner much better informed than the nationalmedia and international forecasters.

Many enterprises in our region have grownfrom local to international in scope, and as thesebusinesses matured to the international arena,paying attention to world economic conditionsbecame very important. Arctic Cat Enterprises,Daktronics, Melroe-Bobcat, and Steiger Tractorare four familiar regional power houses whichdeveloped exceptional products and enjoyedbusiness success in North America, then turnedinternational. Each experienced tremendousproduct acceptance internationally and, as aconsequence, felt the impact of changes in amultitude of different economic marketsworldwide. All four of these enterprises couldhave focused regionally and remained verysuccessful. Taking on the challenge of becomingan international business came with risks andrewards. Each developed their own tools to assesstheir business prospects in each market area theyserved. Leadership had to adjust to a world viewrather than a purely local perspective. Fewentrepreneurs have the talent to grow into amultinational planning and business leadershipperspective, but there is no doubt our region haspeople with the talent to succeed.

Business plans are best developed based onhow well the particular market the enterpriseservices is expected to perform over time, takinginto account global conditions only how they mayimpact where you sell. Failure to pay attention toworld events can be a costly mistake. Paying toomuch attention to the media (especially thenegative news stories which are so prevalent) canlead to poor decisions as well. The best techniqueis to pick a plan, stick with your plan, and makeadjustments only as necessary based on thechanges in the market you serve.

MATTHEW D. [email protected].

?Local or global look

PB

Most family businesses grow from anentrepreneurial passion; they are led by founderswith confidence and courage to put their money

where their mouth is. Most are over-achievers, they seeopportunities, work incredibly long hours, are positive,and possess the resourcefulness to overcome all sorts ofhurdles. Beth Adamson, Director of the Prairie FamilyBusiness Association, finds that many of these foundersfind it difficult to step aside and allow their children totake the reins.

“It is also typical that family businesses lack managementsystems that executives in big corporations can summon totheir aid. They face difficult decisions regarding familymembers, how to develop an internal structure, and they areso busy with day to day demands that don’t look at the bigpicture,” Adamson states. “Management and ownershiptransition should be a process that families continue to workon from one generation to the next. If transition becomesan event, the family business often finds itself in a verydifficult situation.”

One of the most critical decisions forbusiness owning families is succession fromone generation to the next. For many, it is notonly an emotionally charged issue; it can alsoput the financial integrity of the business atrisk. Consideration must be given to balancethe capabilities of the business with the needsof the individuals who own and operate it.There are three constituents in the successionprocess: the senior generation, the successorgeneration, and the business and itsstakeholders.

A recent survey of members of thePrairie Family Business Association showsthe top five issues they will face in 2011.Those issues are:

1Estate Planning. Concerns includedtransitions to the next generation,bringing employees into ownership,

deciding to sell the family business, andproviding adequate financial resources to thesenior generation while maintaining capitalneeded to grow the business. “Some familiesfind themselves in a situation where there isno more interest from family members tocontinue to operate the business, or are inneed of capital infusion and consider ESOP’sas an alternate form of ownership. Manystruggle with defining how the business canmeet the financial needs of the retiringgeneration while maintaining capital for thenext generation to grow the business,” added


Family BusinessFor information on family business contact Beth Adamson,Director of the Prairie Family Business Association, [email protected] or Rise Jongeling at [email protected].

Top Concerns Family Businessesface in 2011

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Family firms play a crucial role in our economy. Research indicates that 95% of business enterprisesare family owned; they provide 40-45% of the Gross National Product, and they provide 60% of thenational employment and 72% of the new jobs created.

Adamson.

2Government Regulations and Taxes.Uncertainty of government policiesincluding health care and tax laws; too

much government interference in the privatesector, and the concern of higher health carecost for employees and employers wereexpressed as part of this category.

3The Economy. Inflation, profits andexpenses, and international competitionwere all mentioned as family businesses

in the region feel the effects of the nation’ssluggish economy. While many havemanaged to avoid the most devastatingeconomic challenges, fears of lendingrestrictions and customer bankruptciesremain high.

4Employment Issues. Unemploymentremains lower in the Midwest than inmost parts of the country. Members

indicated that finding qualified employees,keeping good employees, and findinginnovative ways to reward employees were ofconcern.

5Professionalizing the Family Business:Issues relating to management structure,non-family leadership, and governance

were part of this category. Two educational events are schedule to

address the #1 concern of family businesses.On February 17th, the Prairie Family BusinessAssociation will present a Webinar, featuringexperts from Berenstein Financial, focusingon transition issues and the current researchsurrounding transition decisions. GlennAyres, family business consultant from DoudHousner will lead the 19th Annual PrairieFamily Business Conference on March 31 andApril 1. Mr. Ayres will share an economicmodel and consulting tool for promoting abusiness-driven dialogue focused onbalancing the corporation’s ability to pay withthe needs of the individuals who own andoperate the business.Beth Adamson - [email protected]


95% ofbusinesses arefamily owned.

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Energy is critical to the entire infrastructure of notonly the United States, but also around the world.Energy, in particular clean energy technology, is also

becoming a strong driver of the world’s economy.

Peter Ekberg, partner and co-chair of the EmergingCompanies Practice at Faegre & Benson, LLP, believes thatclean energy and the jobs that these businesses create willleave a positive economic footprint on the world’seconomies as they continue to see the importance ofshifting to self sustaining energy methods.

“We have already seen a significant positive impact thatthese businesses have, particularly on many ruralcommunities in America’s heartland, which had in recentyears seen general declines in the populations,” saysEkberg, who recently discussed five key trends that willdefine clean-energy markets through 2011 and beyond atthe E3 2010 Economic and Environmental Conference inSt. Paul, MN.

Ekberg adds that while global growth rate in cleantechnology investments has declined over the past severalyears, clean technology investment remain at historicallevels, with total investments in new clean energy

generation capacity now outpacing those for conventionalfossil fuels for the past two years.

“With 12.7 percent of all U. S. stimulus dollars ($100billion) earmarked for clean technology investments andactivities, I see continued strong growth in jobs in theclean technology area,” he says. “The types of jobs beingcreated as well fall into a broad range, and arepredominantly focused on higher end and higher payingjobs than entry-level service type positions.”

Clean Edge, Inc., founded in 2000, is the world’s firstresearch and publishing firm devoted to the cleantechnology industry. The company publishes the annualClean Energy Trends and Clean Tech Job Trends.

According to the company’s research for the Clean

Clean energy technologyhelping drive economy

COVER STORYCLEAN ENERGY

EERC Research Scientist, Nikhil Patel, works on a biomass gasifier technology, which produces both heat and power from a wide range of biomass resources. (Photo courtesy of EERC)

“There is a strong drive toward renewable energy technology and smaller, moredistributed energy technology in some applications to meet the driving legislation andsocial desires,” states Thomas Erickson, Associate Director for Research at Energy &Environmental Research Center in Grand Forks, ND.

(continued on page 26)


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Energy Trends 2010, biofuels reached $44.9 billion in 2009and is projected to grow to $112.5 billion by 2019. Windpower is expected to expand from $63.5 billion in 2009 to$114.5 billion in 2019. Solar photovoltaics, includingmodules, system components, and installation, will growfrom $36.1 billion in 2009 to $116.5 billion in 2019.

In addition, analysis shows that solar photovoltaics andwind power industries currently account for 830,000 jobs.The projections for 2019 are more than 3.3 million jobs inthose two sectors.

In its Clean Tech Job Trends report for 2010, theauthors suggest five national policies and initiatives tohelp create clean technology jobs. They include deployingaggressive renewable portfolio standards with ‘teeth,’supporting green infrastructure development,implementing and enforcing efficiency, fuel, and emissionsrules and standards, establishing green banks, bonds, andfunds, and implementing carbon taxes.

Ekberg adds that over the next two to five years threekey trends will define clean energy technology markets.One is that clean energy technologies are becoming andwill continue to become cheaper. In addition, marketsdealing with clean energy technology technologies arebecoming and will continue to mature. “We should expectconsolidation and internationalization of clean technologybusinesses, with multinationals and the strongestcompanies acquiring smaller competitors,” he states.

Finally, there will be commoditization. “Markets havenow realized, and clean technology businesses mustrecognize and adapt their businesses to the commoditynature of inputs and outputs from clean technologies (like

feedstocks, corn, water, wind,)” he adds.Erickson comments that in this region the greatest

opportunity in renewable energy is wind and jobs that areassociated with the wind sector including installation ofwind turbines, manufacturing of blades, as well asmaintenance of the turbines.

“The region also has an opportunity in distributedbiomass power,” he adds. “North Dakota has a significantamount of agricultural production, which producesbiomass that can be used to generate power. Thosesystems aren’t quite ready for commercial deployment yet,but are being developed and I believe we will seesignificant growth in that area in the future.”

ENERGY DYNAMICS INCREASINGGEOTHERMAL BUSINESS

In Carthage, SD, Energy Dynamics, Inc. is seeing anincrease in the geothermal business with the help of federaltax incentives. “While the tax incentives are a plus,geothermal has seen steady growth, over the last decadebecause of the considerably lower operating costs and theenvironmental advantages of a truly clean energy source,”states Colin Wunder, Director of Technical Services, for thecompany. “We see these factors as driving our business.”

Energy Dynamics is a distributor for both Hydron andGeoComfort equipment, with nearly 200 dealers in sixstates. They hold the largest geothermal inventories in theregion, providing training and technical support, as well.

Even in a down economy, the company has seen steadygrowth. “I believe we will see increased jobs in the cleanenergy field,” says Wunder. “It somewhat depends on whathappens with other fuels. As their costs increase,geothermal looks even better. When installing geothermalsystems, customers are seeing quicker pay-backs and betterreturns on their investment.”

ROAD MAP DIRECTING MINNESOTA Minnesota created a Clean Energy Technology

Roadmap to identify promising research and developmentopportunities to achieve the state’s clean energy goals.

During the 2007 legislative session, provisions werepassed outlining Minnesota’s energy goals. They include:reducing per capita use of fossil fuel as an energy input by15 percent by 2015; deriving 25 percent of the total energyused in the state from renewable energy resources by 2025;reducing Utility Conservation Improvement Programelectricity and natural gas consumption by 1.5 percent peryear; reducing greenhouse gases by 15 percent below 2005emission levels by 2015, 30 percent by 2025, and 80percent by 2050; and establishing a Renewable EnergyStandard for electric utilities, totaling 27 percent by 2025.

Ekberg believes the roadmap fits in well with what’shappening on a global basis. “The focus is really aworldwide green initiative,” he states. “Different globalregions or even areas of the United States may prioritizetheir green initiatives differently, especially if they havedirection similar to Minnesota’s Clean Energy TechnologyRoad Map, but clearly the trend is for all of us to be moreenergy efficient.”Alan VanOrmer - [email protected]


ENERGY TRANSPORTATION

WATER MATERIALS

Renewable Energy (e.g., Solar, Wind)

Energy Storage

Energy Conservation and Efficiency

Smart Grid Devices and Networks

Electric Transmission and Grid Infrastructure

Biomass and Sustainable Biofuels

Energy-Efficient Desalination

UV and Reverse-Osmosis Filtration

Membranes

Drip & Smart Irrigation Systems

Automated Metering and Controls

Water Recovery and Capture

Hybrid-Eletric Vehicles

All-Electric Vehicles

Electric Rail

Hydrogen Fuel Cells for Transport

Advanced Transportation Infrastructure

Advanced Batteries for Vehicles

Biomimicry

Bio-Based Materials

Reuse and Tecycling

Green Building Materials

Cradle-to-Cradle Systems

Green Chemistry

TOP CLEAN-TECH JOB SECTIONS


PB


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According to Clean Edge's assessment and ranking of more than 80 different state-level indicators, the top three states in the nation are California, Oregon,and Massachusetts. Washington, Colorado, New York, Illinois, Connecticut, Minnesota, and New Jersey round out the top 10. Indicators include suchmetrics as total electricity produced by clean-energy sources, hybrid vehicles on the road, and clean-energy venture and patent activity.

U.S. CLEAN ENERGY LEADERSHIP INDEX TOP 10 STATES

Rank State Score1 Calfornia 91.62 Oregon 68.63 Massachusetts 67.64 Washington 61.85 Colorado 59.9

Rank State Score6 New York 58.67 Illinois 57.98 Conneticut 55.29 Minnesota 53.410 New Jersey 52.4

Top 5 Sectors for Clean-Tech

Job Activity (U.S.)

Rank

1

2

3

4

5

Sectors

Solar Power

Biofuels &Biomaterials

Smart Grid & Energy Efficiency

Wind Power

AdvancedTransportation/Vehicles

Source: Clean Edge, Inc. 2010

*Sector rankings are based on Clean Edgeresearch of job placements, job postings, andpublic and private investments

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Creating efficiency withelectronic health records

COVER STORYHEALTH CARE

Ken Gilles, Chief Information Officer for Essentia Health,with facilities located in Minnesota and North Dakota, saysall the healthcare organizations in the region are upgrading

and expanding their use of electronic health records.“There is a heightened interest in collaboration to exchange

data between ERH’s to improve patient care and reduce cost,” heexplains.

Horizon Health Care, based in Howard and serving 10locations across South Dakota, went live on May 1 with acomprehensive system that is eliminating paper charts. Nurses arechecking patients in with wireless tablets and adding additionalrecords at the point of check in.

Scott Weatherill, Chief Information Officer for Horizon HealthCare, says one benefit is less paper work. “The ease of looking uppatient information is going to be improved greatly,” he explains.

NATION’S HOSPITALS WORKING TO CATCH UPAccording to South Dakota’s Regional Extension Center

healthPOINT Web site, only 1.5 percent of the nation’s hospitalshave a comprehensive electronic records system. An additional 7.6percent have a basic system. Only 17 percent of hospitals haveimplemented computerized provider-order entry for medications. In 2010, The Regional Extension Assistance Center for HealthInformation Technology (REACH) received almost $1.5 million infederal funding to help health care providers in clinics and smallhospitals in North Dakota and Minnesota implement andeffectively use electronic health records.

Also, the Community HealthCare Association of the Dakotasrecently received a Health Center Controlled Network grant tocreate a health information technology infrastructure that benefitsrural communities.

According to the U. S. Bureau of Labor Statistics, an estimated1 million IT jobs will be added between 2004 and 2014. Theproblem is that the country may not have the people to fill thesejobs.

And that bodes well for Dakota State University, who isinvolved in a program that hopes to provide high quality health ITeducation that allows students to successfully support theadoption of electronic health record systems in South Dakota.

The Madison, SD-based university is participating in aCommunity College Consortia to Educate Health IT Professionalsin Health Care Programs. Lake Region College in Devil’s Lake, NDis also a member of the Region A consortium.

“A trained health IT workforce is needed for these programs tobe successful,” says Jamie Husher, HIT Educational Specialist at theuniversity.

DSU’s Health IT Workforce Development Training Programoffers three health IT non-credit certificates in implementationand support, management, and training. DSU is partnering with

As a way to streamlineefficiencies in healthcare,electronic health recordscontinue to be installed inclinic and hospital systemsthroughout the region.

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Mitchell Technical Institute and WesternDakota Technical Institute in SouthDakota and the University of Alaska-Anchorage to provide health IT trainingin South Dakota and Alaska, respectively.

Healthcare networks are looking forworkers. For example, Sanford Health ishoping to hire at least 130 new employeesto develop its medical records system inthe Fargo-Moorhead area, as well asanother 10 new employees in its systemaround Sioux Falls.

John Miller, Chief Information officerfor Medcenter One, believes there will bea neutral number of jobs associated withelectronic health records. He feels therewill be less clerks moving paper, butmore people needed to help keep thesystems operational.

There will be different types of jobs,”he explains. “There is a huge demand forpeople in healthcare.”

REAL-TIME LOCATION ANDCONDITION SENSINGSOLUTIONS

Intelligent InSites, headquarter inFargo, ND, provides real-time locationand condition sensing solutions that canenhance the use of electronic healthrecords in healthcare facilities. Thecompany provides applications to helpincrease revenue by enabling a greaternumber of patients go through a facility,tighten patient safety, reduce errors, andimprove compliance.

“We tie the whole hospital operationstogether and make it more efficient,” saysMark Rheault, President & CEO ofIntelligent InSites. “Part of that is dataexchange with the electronic healthrecords, but we go beyond that. We aretrying to improve the patient experienceand patient care.”

Intelligent InSites does this byproviding a single platform that deliversthe ability for patient or residentmonitoring, wireless nurse calls, wandermanagement, security and access control,


temperature monitoring, workflow and task management,hand hygiene and infection control, asset management,just to name a few.

This technology decreases patient wait times, helpsdoctors and nurses become more efficient, as well asprovides the tools to make medical recording moreefficient.

IMPLEMENTING EHR’S OVER THE NEXT FEWYEARS

Essentia’s plan is to implement its electronic healthrecords throughout the system over the next two years.

Gilles’ hope is that the organization maximizes the useby EHR technology to continue to improve the quality ofpatient care, reduce the cost of care, and improve thepatient experience. “By providing a single patient medicalrecord throughout the entire organization, we cancollaborate and share expertise related to best practices ofcare and draw upon the expertise of physicians in otherareas of our organization,” he says. “Also, we can continueto work with our patients and families to truly have thembe a part of their care and the decision-making process.”

Medcenter One in Bismarck, ND, started installingelectronic healthcare records throughout its clinic systemsin 2000 and had the program up and running by 2005. Inany new program there can be difficulties in changing aculture, but the Medcenter One system is working wellnow.

“There were some growing pains,” Miller admits.“Dealing with changes is not any easier in healthcare thanany other business.”

With the clinic system completed, changing thehospital to electronic health records is now underway, inpart because the federal government is requiring the

system be installed for stimulus dollars or face penalties.While many systems are spending as much as $30-$50million to install electronic health records, the MedcenterOne project is expected to cost about $8 million becausethe healthcare system has a lot of the system in place. Thesystem must be in place by 2015.

“We’re trying to address the law that has been passedright now. That doesn’t mean it can’t be changed, but thatis what we are dealing with,” Miller explains. “To get fullbenefit of stimulus dollars we’re targeting that. We’reexpecting 100 percent of stimulus dollars to pay for that.”

Patients and families are sharing the vision to usetechnology, such as electronic health records, to providebetter care and a better patient experience, Gilles states.

“In some sense, it is becoming an expectation of ourpatients and we are very proud to move along this journeywith them,” Gilles says. Alan VanOrmer - [email protected]

COVER STORYHEALTH CARE

John Miller, ChiefInformation Officer,

Medcenter One

When all patient information is in one place, physicians canmake well-informed treatment decisions quickly and safely:

� 97 percent reported that EHRs contributed to timelyaccess to medical records and 82 percent reported thatEHRs positively affected the quality of clinical decisions.

� 80 percent reported that EHRs averted a known drugallergic reaction, and 71 percent avoided a potentiallydangerous interaction.

� By increasing adherence to guidelines- or protocol-basedcare, delivery improvements ranged from absolute increasesof 5 to 66 percentage points, with most clustering in therange of 12 to 20 percentage points.

Source: healthPOINT (South Dakota’s Regional Extension Center)

The American Academy of Family Physicians,an advocacy group representing about63,000 family physicians nationally, said thata 2009 survey of its members showed thatjust 6 percent of them had done a Web-based consultation -- but that number wasmore than double the 2.6 percent who haddone so in 2008.

Web-based consultationsBetter-informed clinical decisions

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Telecommuting is a change from how people areused to working,” he states. “Telecommuting offersone way for businesses to be competitive in hiring

employees.”Fiber to curb is one initiative that distinguishes Fergus

Falls from other communities of its size. The micropolitanhas 14,000 people and 1,000 of those people work inmanufacturing jobs. In addition, the community locatedalong I-94, 55 miles east of Fargo-Moorhead has aneconomy based on manufacturing, health care, agriculture,utilities, retail, and government.

Having different economic drivers’ means more jobs,Mayor Hal Leland says. “It is another reason for people tocome here and stay here,” he explains. “It is easier torecruit people to our community if we can show them avast array of activities and services. It just helps us becomemore viable all the way around.”

TELECOMMUTING HELPS BUSINESS GROWTHMouritsen explains that Fergus Falls is being

progressive in marketing the community as being tele-work ready, adding that Park Region Mutual Telephoneand Otter Tail Telecom have built a robust network andare able to provide customers with great voice quality andtremendous data speeds.”

“It is not the norm to have fiber to curb or fiber to thehome in a community the size of Fergus Falls,” states DaveBickett, who is the CEO of both Otter Tail Telcom andPark Region Mutual Telephone Company, the companiesthat installed the service. “It lowers operating costs for acompany, adds flexibility for the employee, expands thebase of talented employees, and also provides the employerwith comfort for master recovery because all employeesare not in one location.”

Mouritsen adds that telecommuting is growing in theworkplace. “Working from home, even only one or twodays a week is becoming the norm for a number ofbusinesses,” he explains. “Having fiber to the curb providesthe technology backbone for supporting the bandwidthneeds of the community.”

INITIATIVES PUSH FERGUS FALLS INTO THEFUTURE

The community has developed several initiatives todrive the community into the future.

Some of the initiatives include creating and supporting100 jobs or more each year for the next five years,marketing Fergus Falls as a telecommuting-readycommunity, orchestrating a $1 million Angel Fund by2012, and establishing an Orthopedic Center of Excellence.

Telecommunication setsFergus Falls apart

Community Profile

Steve Mouritsen, working out of his home in Fergus Falls, MN, leads a team of software developers for WellsFargo working with business users to design and develop technology solutions to solve business needs.

Fergus Falls

“

Fergus Falls MayorHal Leland


Visit Fergus Falls...

City of Fergus Fallswww.ci.fergus-falls.mn.us

218-332-5400

Convention & Visitors Bureauwww.VisitFergusFalls.com

800-726-8959

Economic Improvement Commissionwww.FFEIC.org218-332-5428

Chamber of Commercewww.FergusFalls.com

218-736-6951February 23 , 1-5 p.m.Bigwood Event Center

BUSINESS EXPO

OO JOBZ communityOO Prime commercial and

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Stay for a day...or a lifetime!

“New leaders are emerging through this newprocess,” states Jerry Ness, Fergus Falls Public SchoolsSuperintendent. “Leadership is spreading and it isexpected.”

One initiative that is stirring excitement in thecommunity is developing two bio-related businesses inthe next five years. This initiative focuses on bio and lifescience projects involving renewable energy from cropsand biomass, renewable materials from crops and cropresidues, pharma/biologics, and the food industry. Ashovel-ready program is in place to accommodateindustrial development.

The community is focusing on technical jobs andskill sets that require science and math backgrounds. Todate, the community has built a regional relationshipwith various partners to begin innovative work in therenewable material sectors. The Minnesota Business Bio-alliance Agricultural Utilization Institute and severallocal companies are examining new renewable materialsto make existing products greener.

Fergus Falls is also working at building aninfrastructure for bio and life sciences.

“The tools include an industrial park suitable to theindustry, access to bio infrastructure grants as theybecome available, workforce training that ensurescompanies have the trained employees they will need,and access to capital for emerging and start-upcompanies,” says Harold Stanislawski, Fergus FallsEconomic improvement Commission Executive Director.

DEALING WITH CHALLENGINGENVIRONMENT

The future is challenging. There are budget cuts,finding ways to retain assets and young talent, retail, anddevelopment of the River Area.

Lisa Workman, Executive Director of the Fergus FallsArea Chamber of Commerce, feels one way to deal withthe retail challenge is to continue to send positivemessages outlining the importance of buying locally andhow it impacts the community in a positive way.

Fergus Falls is also marketed as a destination forthose who love the outdoors. Dunham’s Sports recentlymoved in. The community also has a Walmart SuperCenter, Fleet Farm, Home Depot, Radio Shack, just toname a few, as well as unique, full-service specialty storeslike The Market, Victor Lundeens, and Cullens HomeCenter that keep people shopping in Fergus Falls andalso brings others to the community.

Many believe that the river area is an overlookedasset that will take time to develop. “We need to promoteit more and make people more aware,” Workmanexplains. “I think it will draw people to the area whendone. We need to redevelop it. “

CONSTRUCTION AND MORECONSTRUCTION

Fergus Falls continues adding to its infrastructure inthe tune of more than $200 million plus projects overthe last few years that include manufacturingexpansions, an equine facility, and three banks.

In 2006, a $32.5 million bond referendum was passedto remodel one of the elementary schools and switch themiddle school into a secondary school. The old highschool then became an education center. In addition, theschool district was reorganized to make it more efficient.

“We’re an educated population,” says Ness, addingthat 83 percent of the school’s graduates go on to post-secondary education. “We operate a very robustcurriculum. Technology is a high priority for us.”

Another major project involves PioneerCare. A new,$23 million, 105-bed skilled care center is being designedto replace the current facility. It is set to open in April. Itallows PioneerCare to provide resident-centered care ina more home-like setting.

Construction is primarily funded by a unique andvery attractive financing package through the USDA.The community also is nearing successful completion ofa $2.3 million capital campaign towards the project.

“I think adding to the diversity of health care andaging services is huge,” states Steve Guttormson,Marketing Director of PioneerCare. “We are movingfrom shared rooms to more private rooms andexpanding our short-term care as Pioneer evolves.”

In January 2010, a $10.2 million, 34,000 square footCancer Center opened with the help of a fund drive inthe community to build the facility.


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Community Profile

Fergus Falls(continued from page 34)



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“It speaks to the community to come together whenthere is a need,” says Larry Schulz, CEO, Lake RegionHealthcare Center.

There are 46 people receiving services, many ofwhom would have had to travel. Cancer Center includeseight chemotherapy chairs, nine patient exam rooms,one state-of-the-art linear accelerator for radiationtherapy treatments, one image boutique for patients, andone healing garden.

WHAT MAKES FERGUS FALLS CLICK?The region has 1,000 lakes, along with agricultural,

utilities and regional medical opportunities. Then there iseducation that includes the school system, as well asMinnesota State Fergus Falls, a two year community andtechnical college campus and the Prairie Wetlands LearningCenter and College. The community and technical collegeis a key to developing workforce to the region.

Explore Minnesota Tourism has selected thecommunity as a legacy destination in October 2011 forits arts, culture, and natural environment. Anotherexample is that the Center for the Arts plus the coffeeshops, wine bars, art galleries, and studios provide adestination for artists and their followers.

The CVB’s slogan is “Find us, lose yourself,” which inessence provides families a chance to enjoy some peaceand quiet, as well as rejuvenate their minds and bodies.“We’re confident there is a market out there,” says JeanBowman says, Executive Director, Fergus FallsConvention & Visitors Bureau. “We have done a goodjob of finding people and them finding us.”Alan VanOrmer - [email protected]


FERGUS FALLS TIDBITS:County . . . . . . . . . . . . . . . Otter TailRegion . . . . . . . . . . . . West CentralDistance from Minneapolis . . . . . . . . . . 175 milesDistance from Fargo-Moorhead . . . . . . . . 56 milesEstimated Population . . . . . . 14,000Web site. . www.ci.fergus-falls.mn.us

MAJOR EMPLOYERS:Lake Region Healthcare . . . . . . 811 Otter Tail Power Company . . . . 400 Otter Tail County . . . . . . . . . . . 359 Fergus Falls Public Schools . . . . 302 PioneerCare . . . . . . . . . . . . . . 272 Broen Memorial Home . . . . . . . 216 Northern Contours . . . . . . . . . . 207 Veterans Home . . . . . . . . . . . . 140 City of Fergus Falls. . . . . . . . . . 138 Minnesota State Community and Technical College . . . . . . . 134

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Jean Bowman, ExecutiveDirector, Fergus FallsConvention & Visitors Bureau

Steve Guttormson, MarketingDirector of PioneerCare

Jerry Ness, Fergus Falls PublicSchools Superintendent

Larry Schulz, CEO, LakeRegion Healthcare Center

Harold Stanislawski, FergusFalls Economic ImprovementCommission Executive Director

Lisa Workman, ExecutiveDirector of the Fergus FallsArea Chamber of Commerce


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Dave Rozenboom Regional PresidentSioux Falls, SD 605-339-8639

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Pat Burchill Regional PresidentRapid City, SD 605-394-2021

Ron Robson Regional President

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40 Prairie Business Energy January 2011

In North Dakota, energy growth is playing a role in thestate’s overall economic strength. The growth has beenled, in part, by Empower ND, a comprehensive state

energy policy that was crafted with the leadership ofindustry. Empower ND calls for significant investments ininfrastructure, as well as incentives to continue growth inrenewable, wind, biofuels as well as traditional energy suchas oil, gas and coal.

“Western oil and gas is going to be a big topic in thesession,” states Shane Goettle, former North DakotaDirector of Commerce, who is now the State Director forSen. John Hoeven. “It is front and center in the Governor’sbudget.”

New North Dakota Gov. Jack Dalrymple is proposingan Energy Division in the Department of Commerce topromote the development of all energy resources tointerface with communities on infrastructure needs and toadminister energy programs.

It will be a busy session involving possible energylegislation in the state. There is a possibility that a bill willbe introduced to make sales and use tax exemptions forwind facilities permanent. In addition, a bill could beintroduced to expand the oil and gas research council toapproach innovative research and development.

In South Dakota, energy development, in particularwind development, is becoming a large business oncemore.

“In the past, several efforts have been successful inreducing property taxes that wind farms pay,” explainsHunter Roberts, Energy Policy Director for the State ofSouth Dakota. “Also our contractor’s excise tax and salestax rebate program is expanded for wind farms and otherlarge products.”

Roberts does see a bill being introduced that wouldreform meteorologist towers that survey wind resources.In the 2010 session, aerial pilots introduced a bill thatwould add costs to the towers. Roberts says he sees thepilots’ point, but also says in talking to the wind industrythe bill seems one sided and they would like to see itscaled back to help them.

“I haven’t seen a draft bill yet, but I expect it will becoming,” he says.

Another topic expected to be discussed is the

contractor’s excise and sales tax rebate that is scheduled tosunset in 2012. “Large energy projects are very capitalintensive and have a lot of tax liability,” Roberts states.“The program allows a large rebate on that tax. There hasbeen a large concern in the past about its complexprocess.”

As the new legislative session starts, the MinnesotaOffice of Energy Security has developed a menu ofinitiatives, but the new governor will decide which ones tomove forward on, states Bill Glahn, who in December wasthe current Director of the Office of Energy Security.

One issue that could be discussed involves the ban onbuilding more nuclear power plants, something Glahn sayshas come up each of the past several years and could bepart of the energy discussion once more.

Then there are issues around coal power, as well asworking with the state’s renewable energy standard. Thestate has regulations that say utilities must provide 25percent of renewable energy by 2025.

“There are concerns about utility rates increasing,”Glahn says. “The next legislature might want to look atthat law to see if any adjustments need to be made.”

Each state has developed a comprehensive energyprogram. North Dakota has Empower ND and in SouthDakota, the focus is on expanding gross domestic productthrough energy development and wide use of the state’sresources. South Dakota produces 1 billion gallons ofethanol, but uses less than 250 million gallons oftransportation gas annually. The state also has 2,100megawatts of wind energy, but again does not use a lot ofthe wind product.

“Wind power is an export resource for small states likeSouth Dakota,” Roberts explains. “In the past, wind hasbeen an enemy of South Dakota. Now it is becoming afriend.”

In Minnesota, the Office of Energy Security works withthe federal government to provide energy assistanceprograms, as well as partner with the United StatesDepartment of Energy on energy efficiency and renewableenergy projects. In the last 18 months, the state ofMinnesota has received $200 million to distribute for stateprojects and programs.

Transmission continues to be the largest obstacle for

Preparing the energy futureHeading into the 2011 Legislative sessions across the three-state region, legislation is being crafted

that balances the regulatory aspects with business development to spur economic growth in

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South Dakota

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the states’ energy programs to flourish in the future.In South Dakota, Roberts states that it is frustrating

because transmission problems are not something thestate can fix moving forward. “When you get totransmission a sticking point that has been gettingheadway is who pays?” he says.

In addition, 80-90 percent of the incentives for energyprojects come from the federal government. Roberts sayswith the economy, the state will see a slowdown inprojects. He expects that to pick up again in 2015, but thatwill be tied to the economy and transmission issues at thesame time.

In the future, Glahn states that the costs of energymoving forward will be important to help keep Minnesotacompetitive in the energy industry. In addition,transmission is a large issue. Minnesota is working tobuild 700 miles of new high voltage transmission lines to

link with South Dakota, North Dakota, and Wisconsin.“We think we need these projects to maintain a high levelof reliability in the state,” Glahn says.

North Dakota sees excitement in traditional fossil fueldevelopment and renewable energy.

“We just have it all,” Goettle explains. “Our strategy isto grow. We want to maintain a positive climate for energydevelopment. There is tremendous opportunity to growthis important sector. We want to continue thatmomentum.”

The key is to provide other initiatives connected withenergy. In addition, Goettle feels a national energy policy

is needed to help grow the energy sector in the state.“There is uncertainty for investment,” he adds. “Having afederal policy established that everyone knows what therules are very important for investment.”Alan VanOrmer - [email protected]

The state (Minnesota) has regulations that say utilities must provide 25percent of renewable energy by 2025.

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Legislation crafted to encourageenergy innovation and investment

It’s a good first step. That’s the sentiment from energyindustry leaders as they give their support to a new billintroduced by Senators Kent Conrad (D-ND) and

Orrin Hatch (R-Utah).In an effort to move the nation toward energy

independence, the senators have crafted legislation toencourage innovation and investment in energy fromclean coal sources.

The Coal Energy Bridge Act of 2010 provides a 30percent investment tax credit for coal facilities that utilizeadvanced technologies to capture and reduce carbon dioxideemissions at their facilities. It also gives $5 billion for clean

coal bonds for use by rural electric cooperatives and publicpower systems that choose to capture carbon dioxide.

Dakota Gasification Company, a for-profit subsidiaryof Basin Electric Power Cooperative is very familiar withthe capabilities of carbon dioxide. Their Great PlainsSynfuels Plant near Beulah, ND sends its carbon dioxideemissions to Saskatchewan for use in oil fields. It hasboosted oil production there from 10,000 barrels a day to30,000 barrels.

When the 205-mile pipeline from Beulah to Canada wasconstructed, it was installed with additional taps in caseopportunities arose to utilize it in North Dakota’s oil fields.

With expanding oil production in NorthDakota, the potential for utilizing carbondioxide capture is appealing, but those withinthe industry realize it doesn’t come cheap.

“If there are incentives, of course we’llconsider those. Especially with newtechnology, the costs will be even higher,”explains Daryl Hill, Media RelationsSupervisor at Basic Electric PowerCooperative. “Oil companies will look at itfrom the standpoint of price and then ask, ‘Isit a value to me? What benefit does it provideif I can afford it?’”

Carbon dioxide is used to increase oilproduction by lowering the viscosity of oil –essentially decreasing oil evaporation,grabbing the oil trapped in microscopic poreswithin a formation, and increasing the timeoil can be stored without covering it.

But having the technology to do it is oneof the biggest obstacles. “There are advancedtechnologies out there, but they’re all at thelab scale,” states Wade Boeshans, GeneralManager of BNI Coal. “The cost of these is

such that it’s likely going to take tax incentivesand grants to get it.”

Conrad says the nation’s tough budgetenvironment doesn’t lend itself to grants, butbelieves the bill is a good first step in theprocess. He points out that the bill providesaccelerated depreciation for installation ofadvanced technologies allowing companies torecover the cost over seven years instead oftypically 20 years.

“Our first goal is to put incentives in placeto get those involved to put in newtechnology. Delivery systems will follow,” headds. “Progress is being made.”

That progress can be found at BasinElectric’s Antelope Valley Station where theyare developing a carbon capture pilot project.Currently, they’re conducting a Front EndEngineering and Design (FEED) Study. Itprovides detailed reports of how carboncapture can be installed at Antelope ValleyStation including where taps and equipmentneed to be, where it could provide power, andthe related costs.

The Energy & Environmental ResearchCenter at the University of North Dakota isactively working on the carbon dioxidechallenges. “They’re at the forefront ofsequestering carbon dioxide to re-pressure oilfields and deal with CO2 challenges,” Conradsays.

Steve Van Dyke, Vice President ofCommunications for the Lignite EnergyCouncil says his agency is in support of

Conrad’s efforts because “it puts lignite onequal footing with other coals that are minedin the United States.” He also admits thecapture technology for electric power plants isnot currently commercially viable at areasonable cost, but he’s optimistic.

There is “off-the-shelf” technology tocapture up to 65 percent of carbon dioxidefrom a power plant, according to Lynn Helms,Director of the ND Department of MineralResources. He says this potential legislationwould be a positive step for the oil and gasindustry. “It would be more beneficial foradvanced oil recovery,” Helms explains. “Rightnow in North Dakota, our supply is limited inregards to that. There are oil reservoirs whereit would work and a lot of interest in it.” Headds that with all of the current supply tied upin Canadian projects, it would be a good thingif this bill resulted in an increased supply.

Technology and supply are not the onlyhurdles to overcome. Curt Johnson, CEO ofDenali Energy, co-developer of one of thenation’s largest wind farms located northwest

of Minot says North Dakota needs to expandtheir reach beyond the region, but they lackthe transmission facilities to do it.

“The only remedy is to expand themarketplace for all of North Dakota’s energyresources,” Johnson states. “This would go agreat distance to help the nation’s economyturn around.” He would like Conrad’s bill toinclude advancing the interests of allresources. He cites the recent StrategicMidwest Area Renewable Transmission Studyconducted by Quanta Technology thatevaluated transmission alternatives for newdevelopment in the Upper Midwest. It wasdesigned to integrate local wind generation toenable the transfer of wind energy from statesthat have high wind generation capacity tothose with lower wind generation.

“Let’s move forward with the Act,”Johnson adds. “But while we’re at it, let’sextend the 1603 program of production taxcredits and loan guarantees and keep a levelplaying field.”

The Section 1603 program, so namedbecause it was codified in Section 1603 of theAmerican Recovery and Reinvestment Act of2009, enables qualifying renewable powerprojects that are eligible for either the federalproduction tax credit or investment tax creditto instead elect a 30 percent cash grantadministered by the U.S. Department of theTreasury.Maxine Herr - [email protected]


The Coal Energy Bridge Act’s tax credits are limited to facilities that use coal and

biomass to produce electricity, synthetic natural gas, or liquid fuels. The credits

are available to the first 20 newly constructed and 20 retrofitted projects.

PB


What are the responsibilities of the PublicUtilities Commission?

The South Dakota Public Utilities Commissionregulates electric and natural gas utilities, telecomcompanies, and grain warehouses and dealers. Ourprimary mission is to ensure that our utilities provideadequate and reliable service at just and reasonable rates,with ratemaking authority over investor-owned electricand gas utilities and telecom companies for non-competitive services. We play a more limited regulatoryrole with coop and municipal utilities, independent andwireless telecom companies and grain warehouses anddealers. We help resolve disputes between customers andutilities; adjudicate consumer complaints and inter-utilitydisputes including territory disputes; hear “siting” permitapplications for energy facilities including pipelines,generators, transmission facilities, and large wind farms;operate the state’s pipeline safety program and Do NotCall Registry; administer the state’s One Call notificationcenter; license and inspect grain warehouses and buyers;and oversee renewable energy credit certification andutility reporting related to the state’s renewable energyobjective and utility avoided cost rates. Finally, weadvocate for sound energy and telecom policy at the stateand federal levels and work hard to educate consumersabout ways to save energy and money.

What is the state’s energy program and whatare you hoping to accomplish?

State government has instituted a number of measuresto promote energy objectives for the state, including theEnergy Infrastructure Authority and Energy Policy Office,a renewable, recycled and conserved energy objective toachieve 10 percent of all retail sales from such sources by2015, active participation in the Midwest RenewableEnergy Tracking System (MRETS), authorization forexpedited recovery of environmental and transmission

costs through stand-alone tracker tariffs, and a number oftax incentives for investments in renewable and otherenergy projects. South Dakota is ranked fourth in windgeneration potential, and a primary development objectiveis to turn this potential into economic reality. A key PUCinitiative has been South Dakota Energy Smart to focusboth utilities and consumers on energy efficiency,conservation and demand response.

Where are you at? Where do you want to be? We have seen significant success over the past few years

in wind energy development in South Dakota. Severalmajor projects have been completed or are underconstruction currently, including Iberdrola’s 210 MWBuffalo Ridge II project, Basin Electric’s 162 MW CrowLake Project, and NextEra Energy’s 99 MW Day CountyWind Project. A number of other significant windgeneration projects are in operation or in the offing. Wehave also seen progress on the transmission and ancillaryservices front with Xcel Energy’s completion of theBrookings-Yankee and Split Rock-Lakefield Junction linesand Basin Electric’s construction of its 300 MW DeerfieldStation combined cycle natural gas plant. We expect CapX2020 to file its transmission siting application within thenext week or so. With our Utility Energy EfficiencyWorkshop on June 23, 2010, we kicked off an initiative tobring our energy efficiency efforts into sharper focus andencourage more aggressive utility participation through acollaborative approach designed to achieve a morepredictable, standardized regulatory environment for theseprograms.

What are some challenges? How have youresponded to each of these challenges?

In terms of wind energy development, the biggestchallenge remains transmission. Like all the upper GreatPlains states, our wind generation potential far exceedswhat the load in this state can consume, and the potential

Over the past three months, Prairie Business magazine has talked to a Public ServiceCommissioner from Minnesota, North Dakota, and South Dakota to get their thoughtson the energy sector. South Dakota Public Utilities Commissioner Steve Kolbeck discusseswhat is happening in his state.

Main wind challenge is transmission

can only be achieved through access to population centers. Thismeans addressing the difficult cost allocation and interstate sitingissues that have the potential to grind future development to a halt ifnot resolved. Not unexpectedly, parochial state interests areincreasingly rearing their heads as renewable energy transitions fromlofty ideal to economic reality. The SD PUC has actively participatedin the five-state UMTDI transmission planning process, the OMSCARP process, the MISO RGOS study process, and now, and perhapsmost significantly, the 39 state, 8 Canadian province EISPCtransmission planning and cost allocation process. Besidestransmission, low natural gas prices and reduced demand arechallenges to wind development. On the traditional energy front, theSD PUC was a leader nationally in bringing to the attention of boththe public and our elected representatives in Washington the verysubstantial economic impacts that measures such as cap and tradewould have on our businesses and citizens.

What does the future hold for energy? We still see tremendous potential for large scale development of

the wind resource here in South Dakota. The current state of theeconomy and natural gas prices may temporarily slow suchdevelopment, but we think the longer term trend remains favorableprovided acceptable solutions to the transmission challenge arefound. It also appears to us that common sense is beginning to workits way back into the discourse on issues such as carbon emissionsand climate change, nuclear power, and the appropriate balancebetween environmental protection and the economic costs of suchmeasures. With persistence and a can-do attitude, the energy futurehere in South Dakota is a bright one.


800.632.2277 www.barr.com 701.255.5460

Barr’s 500 engineers, scientists, and technicalspecialists provide engineering andenvironmental consulting services to clientsin industries such as power, mining, refining,and manufacturing, as well as with governmentagencies, attorneys, and natural-resource-management organizations.

North DakotaMinnesotaMichiganMissouriAlberta

resourceful. naturally.

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Tourism impacting region

Tourism

For dates and information about areaconferences visit prairiebizmag.com

Tourism is having an impact in the three-stateregion, which is not necessarily the case throughoutthe nation.

For example, in 2009, South Dakota visitationincreased 1.2 percent, while total United States visitationfell 7.1 percent for the year. In the third quarter of 2010 inNorth Dakota, Canadian border crossings were up 21percent, major attractions were up nine percent, airlineboardings were up 11 percent, and cumulative lodging taxwas up 12 percent. In Minnesota, tourism is an $11 billionindustry that employs almost 250,000 people.

Minnesota uses leisure and hospitality, includinglodging, entertainment, recreation, and restaurants fortracking purposes. “We’re looking at a modest recovery intravel and hoping to sustain paralleling the recovery of theeconomy,” says Pat Simmons, Research Analyst for ExploreMinnesota Tourism. “We’re seeing a recovery in the hotelindustry in increased occupant travel, along withconsumer spending. It has a lot to do with consumerconfidence. If consumers are confident they are going totravel more. We’re seeing consumer confidence relativelylow and we’re seeing signs that they are to starting toimprove.”

A large highlight in South Dakota in 2010 was a SouthDakota float in the Macy’s Day Parade. “Participation inthe parade allows us to literally reach every market in theUnited States,” explains Melissa Miller, Director for theSouth Dakota Office of Tourism. “This is the perfectopportunity for South Dakota to get its largest visitorattraction in front of potential travelers.”

Last year, total tourism employment made up 10.2percent of the total state private employment in SouthDakota. In addition, core tourism made up three percentof the GSP. Core tourism, as defined and measured byGlobal Insight, includes industries that touch the visitor

including hotels, restaurants, and museums. Since 2003,South Dakota has averaged 6.5 percent annual growth invisitor spending.

“We have been seeing our visitor numbers increase, butretail sales have been slow,” Miller says. “Over the pastcouple of years our camping number has been continuingto grow. This is a trend that I feel we will continue to see.”

North Dakota State University conducts researchannually to distinguish tourism’s contribution to thestate’s economy. In 2008, $4.13 billion was spent byvisitors to North Dakota, placing it as the third largestindustry behind agriculture and oil.

Like South Dakota and Minnesota, people are stillvacationing. “They just travel closer to home, and that’sbeen good for us as it aligns with what we know about ourvisitors and allows us to further leverage that strength,”says Sara Otte Coleman, Tourism Director for the state.

In addition, Coleman feels that North Dakota’songoing affordable, close-to-home marketing message hasmade the state even more attractive to visitors fromMinnesota, Wisconsin, South Dakota, and Montana. Also,state tourism expects Canadian traffic to continue to bestrong thanks to the strength of their dollar and theconsistent marketing North Dakota has done in Manitobaand Saskatchewan.

In the future, Coleman believes there will be furtherdevelopment in rural and agri-tourism and she also seesthe state investing more in infrastructure that supports thetourism industry.

“We know that the economy will continue to play arole in the choices people make about travel,” she says.“People will continue to plan vacations that are lessextravagant and more about connecting and enjoyingactivities together.”

Tourism Conference ScheduleSouth Dakota

Tourism ConferenceExplore Minnesota Tourism Conference

North Dakota Tourism Conference

Jan. 19-20, 2011

Best Western Ramkota Hotel &Conference Center

Pierre, SD

[email protected]

Jan. 25-27, 2011

Grandview Lodge

Nisswa, MN

www.industry.exploreminnesota.com

April 19-20, 2011

Holiday Inn

Fargo, ND

http://ndtourism.com


Last year, totaltourism

employmentmade up 10.2percent of the

total state privateemployment inSouth Dakota.

PB

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It’s easy to throw around a word like integrity, but itsimportance to businesses cannot be measured.Integrity is priceless, and it can’t be bought; it must be

earned. It’s what every business strives for – or shouldstrive for – and something the businesses that stand thetest of time all share in common. Still, it’s true thatsuccess and integrity do not always go hand in hand. Inrecent years we’ve witnessed instances of seemingly solidcompanies in our area, who were perceived as beingfinancially and ethically sound, fall victim tomismanagement or unethical business practices – or both,ultimately failing their clients, their employees, theirshareholders, and their communities.

The lesson we can all take from this is that integrity

matters, and a company cannot have long-term successwithout it. Though it can be tempting to cut corners, thereis real value in digging in and making that commitment tointegrity. In our almost 100 years of experience, we knowthere are far more exemplary companies than there areproblem companies.

Still, just as it is with each of us in life, it’s easy forbusinesses to do the right thing when someone iswatching. The challenge is doing the right thing when noone is looking. The companies who meet this challenge arethe ones customers will want to continue to do businesswith over time. These are the companies who can truly saythey operate with integrity.

Integrity MattersEvery year, we hold our Better Business Bureau Integrity Awards. The awards are open to any for-profit business inMinnesota and North Dakota. Taking the time to recognize and celebrate premier companies in our region is one ofour core goals at the BBB, and doing so always reminds us of the importance of integrity.

Research tells us that public perceptions about“rural” range from “lack of money, lack ofopportunities, decline of the family farm, limited

basic services and residents who are less well-educated”counterbalanced with “hardworking, strong sense offamily, commitment to their communities, deeply heldreligious beliefs and self-sufficiency.”

This is what we believe about “rural”:

1-Every place is different"If you've seen one small town, you've seen one smalltown." Each small town, region and rural system has

unique issues that can sidetrack its best efforts of buildinga stronger future. Ideas that work one place might notwork in another.

2- The wisdom and talent is hereThe talent and wisdom any community needs alreadylives there. Nobody 'out there' can make change

happen without local, hands-on change agents backed byownership and support from the entire community.

3- Slow changeTurning rural decline around is tough work; itdoesn't produce results overnight. Solving tough

problems takes a different approach. Rural understands it’sgoing to require commitment to the long haul.

4- AccountabilityRural people take responsibility for their ownactions. They understand their history and expect to

personally witness the product of their work.

6- Partners Rural recognizes that the work can’t be accomplishedby only a few – it will take the combined resources of

their rural place to make it happen.

7-Special leaders Effective rural leadership is a different kind ofleadership. This is work that involves the heart of the

people committed to their rural home - engaging,challenging, inspiring, listening to and supporting thewhole community.

8- It's all connected Rural places understand the inter-connectionsbetween natural systems and man-made systems and

work to balance these for the long haul.

9- Shared learning Rural leaders understand that we’re all in thistogether so they share their learning and their

thinking because the very best ideas are what are neededin our rural places.

What is rural?Three common statements about rural places: "We love this place", "This place is really changing," and "We don'tknow how to give our community life again."

DANA BADGEROW

President/CEO

Better Business Bureau

of Minnesota and

North Dakota

RANDY PARRY

President,

Rural Learning Center

Howard, SD

PB

PB

Minnesota manufacturers concerned about entrylevel employees not having the technologyexperience approached the Minnesota State

Community and Technical College to help them preparestudents for entry level jobs. In North Dakota, WillistonState College started several programs to meet workforceneeds. Down south, a South Dakota university receivedfunds to create a Mining Center of Excellence.

“Our whole idea is to respond to manufacturersrequests to provide basic manufacturing skills so thatstudents can choose to go on with degrees or walk into theworkforce and has a leg up on anyone coming in,” statesPat Wilber, Vice President of Advancement/Dean ofCustomized Training for Minnesota State Community &Technical College.

M-State put together a grant to develop a 16-creditcertificate program for industry that would help studentsunderstand electricity, power systems, designs, andtechnology mass to hopefully get an entry level job in themanufacturing field. The courses were offered to highschool students to earn high school or college credits.

For more than 20 years, Williston State College has nothad a welding technology program, but that changedrecently after Bruce Dannar was hired to instruct studentsin the newly-restarted program in western North Dakota.Another program started because of demand was aresidential carpentry technology. High school students willlearn how to construct homes. They will be able to startthe program and then if they choose to finish it they canat Williston State College. The college has purchased ahome that will be remodeled in the spring and then sold.

“The people from the industry are very excited andvery supportive,” says Wanda Meyer, Vice President forInstruction at Williston State College . “I think it will havea significant impact.”

In Rapid City, SD, the South Dakota School of Minesand Technology received $1.25 million from four majormining companies in an effort to create the Mining Centerof Excellence. The program is designed to enhance thedepartment’s curriculum and the overall educationalexperience for students.Alan VanOrmer - [email protected]


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EMPLOYMENT (NOT SEASONALLY ADJUSTED)

UNEMPLOYMENT RATE EMPLOYMENT

Oct. 2010 Oct. 2009 Oct. 2010 Oct. 2009North Dakota 2.8% 3.4% 356500 356205Fargo MSA 3.2 3.7 115471 115966Bismarck MSA 2.7 2.9 60369 59976Grand Forks MSA 3.2 3.6 54059 53374Minot MiSA 2.4 3.0 33662 32674Dickinson MiSA 1.9 2.9 14557 14262Williston MiSA 1.7 2.4 13644 14117Jamestown MiSA 2.7 2.9 12463 11680Wahpeton MiSA 3.4 4.2 11688 11476South Dakota 4.1 4.3 425470 427335Sioux Falls MSA 4.2 4.2 122440 124025 Rapid City MSA 4.5 4.5 63940 64365Aberdeen MiSA 3.1 3.1 22725 22745 Brookings MiSA 3.4 3.5 18490 18615 Watertown MiSA 3.7 4.9 18155 18165 Spearfish MiSA 3.7 3.8 13140 13165 Mitchell MiSA 3.4 3.5 12650 12745Pierre MiSA 2.8 2.6 12185 12085 Yankton MiSA 4.0 4.5 11215 11395 Huron MiSA 3.2 3.2 9365 9520 Vermillion MiSA 3.4 3.6 7420 7600 Minnesota 6.4 7.1 2763243 2753559 Minneapolis-St. Paul MSA 6.5 7.3 1725965 1721774Duluth-Superior MSA 6.9 7.7 135941 134985St. Cloud MSA 6.1 6.8 101916 101722Rochester MSA 5.3 6.2 100353 99605Mankato-N. Mankato MSA 5.4 6.2 54691 54302Brainerd MiSA 7.9 8.1 43373 44358Fairbault-Northfield MiSA 7.0 7.9 31239 30976 Winona MiSA 6.1 7.0 26721 27239Fergus Falls MiSA 5.8 6.6 28400 27749 Red Wing MiSA 6.1 6.8 24216 24083Willmar MiSA 5.3 5.9 22606 22360Austin MiSA 5.4 5.5 19834 20438Bemidji MiSA 7.0 7.2 20939 20339Alexandria MiSA 5.3 5.7 19603 19943Hutchinson MiSA 8.0 9.0 18581 18256Owatonna MiSA 6.4 7.7 19858 19944Albert Lea MiSA 7.0 7.7 15378 15281Marshall MiSA 4.7 5.2 14169 14149New Ulm MiSA 5.4 5.9 14048 13835Worthington MiSA 4.7 4.6 11139 11440Fairmont MiSA 6.1 7.2 10841 10575MSA — Metropolitan Statistical AreaMiSA — Micropolitan Statistical AreaSources: U.S. Bureau of Labor Statistics, Minnesota Department of Employment and EconomicDevelopment, Job Service North Dakota, South Dakota Department of Labor

CANADIAN EXCHANGE RATE

NORTH DAKOTA OIL ACTIVITY

Sweet Crude ProductionPrice/BBL Oil-BBL/day

Sept 2010 $67.95 341,384*June 2010 $71.26 284,300April 2010 $67.58 261,000Feb 2010 $63.96 241,500

Gas-MCF/ day 340,384*

Drilling Producing Rig Permits Wells Count

Source: NDIC

AIRLINE BOARDINGS

Minneapolis-St. Paul 2760354 10.0 %Fargo 28154 - 5.8Sioux Falls 33101 16.8 Rapid City 23662 - 0.5 Bismarck 16881 3.5 Duluth 13238 1.0Grand Forks 10152 34.4 Minot 9531 66.1

Source: Bank of Canada Data provided by Kingsbury Applied Economics

11/18/09 10/18/10 11 /18/10

U.S. to Canadian Dollar- $1.050 or $0.9524 $1.0149 or $0.9853 $1.017 or $0.9829

U.S. to Euro $0.6672 or $1.4989 $0.7154 or $1.3978 $0.7344 or $1.3617

U.S. to Chinese Yuan $6.8270 or $0.1465 $6.6464 or $0.1505 $6.6323 or $0.1508

U.S. to Japanese Yen $89.362 or $0.0112 $81.920 or $0.0123 $83.668 or $0.0120

U.S. to Mexican Peso $12.977 or $0.0771 $12.422 or $0.0805 $12.296 or $0.0813

AUGUST 2010 % CHANGE/AUGUST 2009

By the numbers

Sept 2010 167 5.197* 143June 2010 106 4,810 107April 2010 94 4,655 93Feb 2010 99 4,623 74

11/12 Rig Count 156*

*Record for Gas. Rig record was 158 on 11/11/2010.September oil is record production.

OCT % CHANGE OCT % CHANGE 2010 /OCT 2009 2010 /OCT 2009

CANADIAN BORDER CROSSINGS

Source: US Customs and Border Protection

AUTOMOBILES TRUCKS

MINNESOTAGrand Portage 23845 33.23 1565 47.92Baudette 17374 24.40 549 -23.96 Warroad 11236 31.28 1092 8.01 Roseau 3760 20.94 673 37.63

NORTH DAKOTAPembina 30335 19.12 17187 8.02Portal 8548 13.79 6067 - 3.73 Neche 4250 7.19 1119 50.61 Dunseith 5226 30.88 2038 26.58Walhalla 3868 49.75 1332 0.68Noonan 2830 7.93 309 -55.15

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