Old School Politics And The New Economy

Posted March 19, 2015 by meisen
Categories: Development, Politics, TheDailyPage.com/Isthmus, Tech

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The disconnection between Wisconsin’s growing tech sector and the state’s governing political dynamic has never been greater. This Isthmus story discusses how the Legislature’s decision to enact union-breaking “right to work” legislation left Madison area tech leaders puzzled and dismayed.

“As an employer, I can tell you this has zero bearing on my decision to stay in Wisconsin or to hire more people,” Dan Wilson, a founder of Moxe Health, told me. Other leaders had similar comments.

I write:.

It’s tempting to dismiss the comments of the techie execs as inconsequential because they represent startups and boutique businesses with small workforces. They are midgets compared to the titans of Wisconsin industry who have promoted right-to-work through their powerful lobbying arm, Wisconsin Manufacturers & Commerce.

But ignoring the new kids is a big mistake.

“In every single state, in every single metro area, young firms create the most jobs. That’s true everywhere,” says Dane Stangler, vice president of research and policy at the Ewing Marion Kauffman Foundation, which advocates for startup businesses.

The tech component has certainly paid off in Dane County.

It’s fueled, of course, by homegrown Epic and its rise as the dominant electronic health records vendor in the country. The workforce tops 8,000. Revenue in 2014 reportedly hit $1.8 billion. And because founder Judith Faulkner insists on running the entire operation through its fairyland campus in Verona, the region has boomed economically. Epic alone accounted for 27% of all the new jobs created here from 2001 to 2012, according to Kennelly.

The city staffer’s presentation on the Madison area’s economic dynamics makes a persuasive case that the Dane County metro area is impressively outperforming the rest of the state. With 10% of the state’s population, Dane County accounts for 12% of the state’s jobs, 15% of its economic output and 16% of the businesses created since 2000 and 73% of the net new jobs created in Wisconsin between 2004 and 2014.

The Milwaukee Journal Sentineldiced the numbers in a different fashion and came to the same conclusion: Dane County led the state in job creation between 2003 and 2013, with nearly 20,000 new jobs. That’s three times as many as second-place Waukesha County. Milwaukee County lost 19,000 jobs in the same period.

For anyone who still sees Madison as a cossetted government town — well, they need to think again. Kennelly’s report shows that the private sector is driving job and wealth creation in Dane County. “Our government workforce is effectively flat,” he says.

Even better, the growing industries here support good-paying jobs, namely in the biomedical/biotechnical and information technology business clusters.

“The Madison area is really an economic engine for Wisconsin,” Kennelly says. “State policymakers sometimes like to pick on Madison. A more constructive approach would be to say: ‘What are they doing right, and how can we replicate it in other parts of the state?'”

To read more, please go here.

Good News For Health IT?

Posted March 19, 2015 by meisen
Categories: Development, Tech, TheDailyPage.com/Isthmus

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If Madison and Dane County ever rise to a top ten metro area for technology, the driver will almost certainly be the growth of health-related technology companies led by former employees of  Epic Systems, the  Verona-headquartered leader in electronic health records.

It’s a good bet that Madison-area software writers, many of them bright Epic expats, jumped up pumping their fists when they read that Epic would shortly launch the “App Exchange” and “open the floodgates” to developers, as pioneer Madison tech entrepreneur Mark Bakken told the Wisconsin State Journal.

Bakken compared the App Exchange to Apple’s wildly successful App Store.

This was huge news. For all the good Epic has done for the Dane County community, it has shown steely indifference to the local health IT industry. The company’s intense focus on serving its worldwide 315 customers has never included playing Big Sister to expats dreaming of devising health software to piggyback onto the company’s proprietary system.

Bakken begged off from further commenting on the App Exchange, emailing, “My hands are tied on anything related to this and Epic in general right now.” Epic spokesman Shawn Kiesau also declined to comment.

But Bakken may have been overly exuberant in his prediction. A local tech leader, who asked for anonymity for business reasons, says Epic insiders say it’s a misnomer to compare Epic’s soon-to-launch App Exchange with Apple’s App Store.

To read more,  please go here.

This longer related story appeared in the same issue of Isthmus.

Favorite Concerts of 2014…And Related Matters

Posted January 2, 2015 by meisen
Categories: Music, TheDailyPage.com/Isthmus

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I see a lot of live music. This is the ninth year I’ve summed up my reactions to my favorite concerts for Isthmus’ website.  Here’s the longish introduction:

Maybe it was happenstance. Maybe it was the surge line of a big trend. Either way, 2014 was the Year of the Woman for the more than 60 concerts I saw.

That was no surprise with solo singers — a traditional strong suit for women. I saw great ones: Cassandra Wilson at the Dakota in Minneapolis (May 19), Roseanne Cash at the Stoughton Opera House (Nov. 21), Mavis Staples at Orchestra Hall in Chicago (April 18), Ruthie Foster at the Dakota (Oct. 21), Alexandra LoBianco in Madison Opera’s Fidelio at Overture Hall (Nov. 23), and two more who are aspiring to greatness: Gretchen Parlato and Lizz Wright at Shannon Hall (Nov. 8).

But it was the chicks in the band who stood out. Historically, women sidemen (yup, that’s the word) were treated as novelties, save for the classical world. Today, they can be the brains and the brawn in the band.

Drummer Lisa Pankratz powered the reunion of roots rockers Dave and Phil Alvin at the High Noon Saloon (July 25). The brilliant Israeli clarinetist Anat Cohen led the Newport Jazz Festival All Stars at the Capitol Theatre (Mar. 28). Esperanza Spalding looked ecstatic playing bass with jazz giants Jack DeJohnette and Joe Lovano at Orchestra Hall in Chicago (Feb. 15). Hill Country bluesman Luther Dickinson was backed by drummer Sharde Thomas and bassist Amy LaVere at the High Noon (Oct. 20). The oh-so-subtle Samantha Banks drummed for Ruthie Foster. Lap steel wizard Cindy Cashdollar backed up slide guitar legend Sonny Landreth at the Stoughton Opera House (Dec. 5). And the women-led Mosaic Project at Shannon Hall (Nov. 8) featured the formidable drummer Terri Lyne Carrington and the rising alto sax player Tia Fuller, who may tour with Beyoncé but plays like Charlie Parker is whispering in her ear.

The boys in the band are increasingly girls. That’s good news. I have to think it’s changing band dynamics to the better in the same way that women managers in the workplace change the valence of team chemistry.

America’s unhealed racial wounds were also on display in 2014. I felt such despair over the Ferguson debacle that I avoided most discussions of it. It all seems so hopeless. Musically, it was another story.

Some of the best music I heard on stage in 2014 was the product of artists burrowing deep into the American cultural core to reinterpret our common history. More often than not, they find white and black sounds coupled together to create a shared national music.

Jazz violinist Regina Carter explored the Library of Congress folklore collection to find the music that her Mississippi grandfather listened to, performing at Orchestra Hall in Chicago (April 18). Roseanne Cash’s extraordinary recent work has highlighted the music of her dad Johnny’s youth. Cassandra Wilson, whose parents were Mississippi educators, has made her own deep dives into regional culture. Luther Dickinson, co-founder of the North Mississippi Allstars, keeps digging deeper and deeper into the racially intertwined world of Hill Country Blues. Alt favorite Ruthie Foster’s connection to the great gospel tradition is self-evident. Country artist Marty Stuart’s loving ties to the Staples Singers is character-defining; when Pops, the family patriarch, died, daughters Mavis and Yvonne gave Stuart his guitar to keep and to play, as he did at the Stoughton Opera House (Feb. 1).

“It was like being handed an instrument of light,” Stuart told the Christian Broadcasting Network.

My touchstone for this comingling is one of the most fascinating records in American history: Jimmie Rodgers’ “Blue Yodel #9,” recorded in 1930 by the father of country music. But this isn’t just country music, folks. This is standout classic blues, also known as “Standing On The Corner,” and features a bouncy New Orleans trumpet solo by Louie Armstrong and a two-fisted piano accompaniment by Louie’s wife, Lil Hardin.

This song is mind-blowing — and not just for Rodgers’ yodeling solo. A few years earlier he had played and sang in the foundational recordings of country music (the Bristol sessions), just as and Armstrong and Hardin played on the foundational recordings of jazz (the Hot Fives). Yet here they are — white and black musicians — recording together at a time of punitive Jim Crow laws and a music industry that followed a strict apartheid approach to marketing records (“hillbilly” was sold to poor whites and “race” music sold to blacks).

What did they talk about in the studio? How did they navigate the racial and gender chasms? Those answers are lost to history.

What we do know is that is the in the intimacy of the studio, in the moment of creation, the music was all freakin’ one. This was the real America. We find the promise of social unity in our art even when our racialized politics exacerbates social disunity.

To read about my favorite 15 concerts,  please go here.

One more thing…here are my previous roundups: 20132012201120102009200820072006.

Epic’s Long Reach

Posted December 5, 2014 by meisen
Categories: Development, Tech, TheDailyPage.com/Isthmus

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Writing about software giant Epic Systems in its hometown is always interesting and always a challenge. The company is famously reclusive, and its former employees, who are at the heart of the Madison area’s emerging health IT industry, are afraid to say anything that might offend the powerful tech company.

In this story for Isthmus, I tease out the controversy over Epic’s noncompete policy for those expats.

The Huron Consulting Group’s announcement in April that it was buying Vonlay, a 130-person Epic-specialty consulting company, set off alarms locally when it became known than Epic had successfully intervened at the 11th hour to insist that Huron not hire Epic employees within two years of them leaving the company.

The one-year separation that Vonlay leaders observed in their hiring would be doubled for the acquiring firm. It also seemingly meant that former Epic employees who had signed an employment contract with a one-year noncompete clause when they had started at Epic would now be subject to a two-year stipulation they hadn’t agreed to.

Huron and Vonlay officials did not respond to queries, but Epic spokesman Brian Spranger confirmed that Huron had agreed to a two-year noncompete term. And then the shocker: “This is being reverted to a one-year term.” Spranger offered no explanation in his email for the reversal. “We’d rather not comment on the policy as a whole.”

There is no shortage of speculation. Most of it circles around Epic fearing it might be treading on federal antitrust laws and being accused of anti-competitive business practices.

To read more, please go here.

Epic’s New Focus

Posted November 5, 2014 by meisen
Categories: Development, Tech, TheDailyPage.com/Isthmus

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Epic Systems, the electronic medical records pioneer, has put Dane County on the map. I sketch out four strategic moves by the reclusive giant in this Isthmus story.

Epic is the big winner in the federally subsidized effort to shift American medical care from paper to electronic records. As part of President Obama’s economic stimulus plan, Congress approved a $27 billion incentive program in 2009 that touched off a mad scramble to modernize health systems in the name of improved efficiency and better care.

These health systems, which involve hospital and physician networks, can be complicated contraptions, and no company was better situated to harmonize its knotty internal operations than the well-seasoned Epic, which was founded in 1979 in the shadow of UW-Madison by the charismatic computer wizard Judith Faulkner.

Epic cleaned up in that gold rush. Today, one out of two Americans have their medical records on Epic software, and revenues at the fast-growing privately held company hit $1.7 billion in 2013.

Famously insular and only occasionally open to nosey reporters, Epic declined to provide an executive to be interviewed about its recent strategic moves. But local Epic watchers, a few on the record and more speaking not for attribution (they’re reticent because Epic is feared as well as respected), see a new strategy taking hold.

To read about those moves, please go here.

Lots of other Epic stories can be found by using the search engine at the right

We Need A Generational Change In Leadership

Posted September 23, 2014 by meisen
Categories: Development, Labor, Tech, TheDailyPage.com/Isthmus

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I spent a lot of time in early 2014 researching and pondering how Wisconsin’s economy stagnated after rising to pre-eminence in the 1970s. Among other things, I found Wisconsin’s leadership was resolutely stuck in the past while the national economy had moved on.

[T]hose old fights define Wisconsin, economically and politically. It’s as though our leaders are historical reenactors at Old World Wisconsin. They fire their muskets and shout the old-time shibboleths. Most of this is just spectacle — not really connected to resolving Wisconsin’s precarious economic position in the 21st century. But old habits don’t easily die.

Looking back at old glories, Democrats embrace the unions. Indeed, nothing rallies the base like a pledge to repeal the union-gutting Act 10. But unions are a declining force and face a questionable future in an era when worker-filled assembly lines are disappearing. Nationally, only one in nine workers is a member. In Wisconsin, union membership plunged from 33.5% of the non-farm workforce in 1965 to 12.4% in 2013, according to the economists at the Unionstats.com website.

The future is not bright. The expanding IT field, with its mix of collaborative teams, creative work and 1099 workers, seems particularly ill-suited to old-school unionism.

Republicans, meanwhile, embrace big business, especially traditional manufacturing, and have decisively tilted the state’s tax, regulatory and development initiatives to its benefit. That’s a king-size problem. Manufacturing jobs may have led Wisconsin’s modest recovery from the Great Recession. And Wisconsin does rank with Indiana as one of the top two industrial states in the nation. But Wisconsin’s glory days of manufacturing have decisively passed.

In 1979, manufacturing and its high-paying unionized work accounted for 33% of the jobs in Wisconsin. By 2012, it was 18%, according to the Center on Wisconsin Strategy (COWS).

Reality is that Wisconsin never recovered economically from the crushing recession of 1981-82. The bloody harbinger of Rust Belt de-industrialization, it laid waste to the huge manufacturing base in the eastern half of the state that runs from the Fox River Valley through Milwaukee, Racine and Kenosha and out to Janesville and Beloit.

I make the case that we sorely need of a generational change in leadership. Both the techies and the Millennials are the sort of pragmatic idealists Wisconsin needs.  You can read a lot more here. Also, posted below is a related piece that ran in the same issue of Isthmus.

Who Speaks For Tech?

Posted September 23, 2014 by meisen
Categories: Development, Politics, Tech, TheDailyPage.com/Isthmus

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So if Wisconsin is trapped in yesteryear politics and economics, as I argue in the story posted above, the business group Wisconsin Manufacturers & Commerce is the exemplar of this thinking.  Here’s how I began this related piece, also in Isthmus:

This is a problem.

The state’s most powerful business voice has conspicuously little contact with Wisconsin’s rising technology industry.

Wisconsin Manufacturing & Commerce, which claims more than 3,500 businesses as members, brags that “the success of the WMC government relations team in projecting and accomplishing a proactive business agenda has been second to none.”

Well, yeah. On the surface, WMC has never been stronger. The support WMC has thrown to small-government, pro-business Republicans has paid off big time, to say the obvious.

Wisconsin has a Republican governor, a Republican Assembly, a Republican Senate, a Republican-favoring Supreme Court and a Republican-dominated congressional delegation.

But critics say that WMC’s success is mostly in pursuing a savvy political agenda — not a savvy growth agenda. And the group’s legislative wish list tilts heavily to helping Wisconsin’s legacy manufacturers. The problem: These venerable corporate citizens usually burnish their bottom lines by adopting strategies that emphasize tax avoidance, lessened regulatory costs and dampened labor costs.

Do they add new jobs to the payroll? Not so much.

To read more, including how the Greater Madison Chamber of Commerce has embraced the tech industry, please go here.


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