City Brings Admissions Tax to the Web Cleveland Is Getting 8% of the Profits from Sales on Flash Seats, Which Could Mean a Windfall with Lebron James Back in Town

20141020-NEW--1-NAT-CCI-CL_-- 10/17/2014 1:49 PM Page 1

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City brings admissions tax to the web Cleveland is getting 8% of the profits from sales on Flash Seats, which could mean a windfall with LeBron James back in town

By KEVIN KLEPS ated by Cleveland Cavaliers owner into play when a buyer pays more itous, since Cavs home games eas- home games) and $291 (the Hous- [email protected] Dan Gilbert’s Veritix. than face value for a ticket on Flash ily are fetching the highest prices in ton Rockets’ 2014-15 average). At the city’s urging, Flash Seats Seats, since an admissions tax is the NBA on the secondary market. Will Flaherty, director of com- Cleveland’s admissions tax is be- began collecting admissions taxes applied at the original point of pur- Vivid Seats, a Chicago-based sec- munications for SeatGeek, said the ing applied in a new venue — cy- on for-profit sales for a Lady Gaga chase. ondary-ticket marketplace, said New York ticket search engine esti- berspace. concert that was held at Quicken The tax is especially significant Cavaliers games at The Q are pro- mates that Flash Seats could pro- In a move that might be the only Loans Arena on May 18 — two days now, with the Oct. 30 tipoff of the ducing median and average sales duce $20 million in sales for Cavs one of its kind in the United States, before the Cavs won the NBA lot- 2014-15 Cavs season approaching. prices of $216 and $385, respective- tickets in 2014-15. Flaherty said the 8% tax is being deducted on a tery and almost two months prior And while the rare application of ly. The second-largest figures in the 30% of that total, $6 million, could secondary market — Flash Seats, to LeBron James announcing his the admissions tax was years in the two categories are $165 (the medi- be the result of profits because of the digital ticketing company oper- return. The 8% charge only comes making, the city’s timing was fortu- an norm for Los Angeles Lakers See TAX, page 9 HUNT FOR TECH TALENT IS ‘CRAZY’ And employees of other Northeast Ohio businesses often are targets of search

By CHUCK SODER [email protected]

The fight for tech talent is getting rough. Sure, Silicon Valley’s tech titans have long practiced the art of poaching — recruiting employees from other companies, even when they’re not actively looking for jobs. But nowadays, a growing number of Northeast Ohio companies are MORE INSIDE doing the same thing, according ■ Local tech salaries to several people who spoke are comparable to with Crain’s. national norms. They say it’s necessary to go after other com- ■ Amazon subsidiary panies’ employees sets sights on talent given how hard it here. Page 33 has become to fill a growing demand for technical talent — especially software developers. And the rise of LinkedIn has made it much easier to study potential job candidates and get in touch with them. For instance, Paragon Consulting just hired a full-time recruiter tasked with hunting for developers with experience using Microsoft’s .Net framework. That often means looking in other cities or other companies, because few local people with .Net experience are looking for jobs, said John Ours, director of technology at the web development firm in Mayfield Heights. “I used to run an ad and get applications from the same chronically unemployed people that I usually get. I don’t even get ROBERT NEUBECKER See HUNT, page 33 42

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CONTRIBUTED PHOTO Ed FitzGerald, shown on the campaign trail, is trailing Gov. John Kasich by 22 points in the latest poll. ANALYSIS Attn: Manufacturers & Warehouses LAST CHANCE For FitzGerald, it’s been to capture rebate for upgrading your lighting! No more FirstEnergy rebate for 2015 or 2016 an exercise in frustration • Brighter Lighting By JAY MILLER daunting 17 months ago when he spent most of the hourlong in- • 50% Energy Savings [email protected] FitzGerald announced his candida- terview recounting the achieve- cy. He was the state party choice af- ments of his term as county execu- • Fast Payback It’s not hard to look at Ed ter former state secretary of state tive. FitzGerald’s battle for the governor- Jennifer Brunner, former state at- “My critique of Gov. Kasich boils • FirstEnergy Rebate ship as a portrait in frustration. torney general Richard Cordray and down to this,” he said. “His perfor- Even he sketches it that way. former congresswoman and state mance stands in contrast to what • Replace HID high bays “It’s been a frustrating environ- representative Betty Sutton chose we’ve done in the county. The • Upgrade T-12 fixtures ment to have a substantive discus- to stay on the sidelines. county has been pragmatic and sion of anything in,” he said in a re- FitzGerald believed that despite pro-business, but at the same time cent interview with Crain’s editorial being an unknown outside of it made necessary investment in CALL TODAY before it’s too late! board. “It’s a challenging cam- Northeast Ohio he could run suc- things like (early childhood) educa- paign.” cessfully against Kasich, in part be- tion and college affordability.” 330-931-3905 But it might be more accurate to cause as recently as August 2013 [email protected] • www.ROI-Energy.com call it an overreach by an ambitious voters weren’t enthralled with Ka- candidate in a Democratic Party sich’s leadership of the state. Failing to gain traction TURN-KEY LIGHTING PROJECT - NO INTERRUPTION whose strongest candidates chose Kasich was hurt by his support of He said Kasich’s central philoso- early on to stay away. SB 5, a bill he signed early in his phy that cutting taxes would bring And then it turned into a disaster term as governor that would have job growth to a sagging economy — when news organizations uncov- limited the right of public employ- wasn’t working. ered a late-night misadventure and ees to unionize. The unions mount- “When it comes to job growth, FitzGerald’s failure to have a valid, ed a ballot issue to overturn SB 5 we are underperforming the rest of up-to-date driver’s license for most and handed Kasich a 62%-38% de- the county,” he said. “We are of a decade. That episode turned feat in November 2011. ranked as being 41st out of 50 states even FitzGerald loyalists and the FitzGerald has said he would veto in recovering from the recession.” party faithful incredulous. any future attempt at right-to-work FitzGerald was referring to the “I was in the middle of a cam- legislation and would push to raise respected Job Growth USA tracking paign for office and I realized my the minimum wage. He also done by the W.P. Carey School of driver’s license was about to ex- pledged to restore cuts in education Business at Arizona State Universi- pire,” said one Cuyahoga County and local government funding. ty, which ranked Ohio 41st earlier Democrat privately. “I took the Beyond those issues, most of this year in the percentage of job time and went and got my license FitzGerald’s policy statements crit- growth in 2014 over 2013. More re- renewed.” icized the direction of Kasich’s ef- cently, the state has moved up to Some Democrats have even gone forts without offering specific state- 37th place, showing an increase of public with their scorn. Sen. Sher- level solutions. Instead, he cited his 46,600 jobs in 2014 over 2013. rod Brown last week described achievements in county govern- Kasich has not had to spend FitzGerald to a Columbus television ment. much time countering that charge station as a “stumbling governor FitzGerald believed his transfor- and others lobbed by FitzGerald. candidate.” mation of a county government But when asked about the job cre- As a result, FitzGerald was trail- mired in corruption into an innovation numbers earlier this month, ing Gov. John Kasich 57% to 35%, ative leader could overcome the he used his campaign’s preferred according to a late-September poll fact that, early on, polls showed job creation numbers of total pri- by Quinnipiac University. Ohioans didn’t know him well vate-sector only jobs since he The numbers didn’t look quite so enough to have an opinion. Indeed, See FITZGERALD, page 7

Volume 35, Number 42 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, ex- Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 cept for combined issues on the fourth week of December and fifth week of December at 700 West year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2014 by Crain Communications change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207- $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation De- 9911, or email to [email protected], or call 877- partment, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. 824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other loca- REPRINT INFORMATION: 212-210-0750 tions), or fax 313-446-6777. 20141020-NEW--5-NAT-CCI-CL_-- 10/17/2014 2:00 PM Page 1

OCTOBER 20 - 26, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 5 Overseas purchase has added benefits The tax perks are obvious, but Steris believes it can ‘truly’ become a global biz

By CHUCK SODER [email protected]

Steris Corp. wants to become an international company — and not just for the tax benefits. Sure, the medical sterilization company’s real headquarters will remain in Mentor, even after it becomes a British company through a so-called inversion. But make no mistake: Steris’ international footprint will grow by several shoe sizes if it succeeds in buying Synergy Health PLC in a $1.9 billion cash-and-stock deal. Steris has never bought a company that big. Or a company that does so much business overseas. Today, just 11% of Steris’ revenue comes from foreign countries. That figure will jump to 28% once it buys the sterilization services company. At that point, Steris will be- MCKINLEY WILEY PHOTOS come “truly a global business,” ABOVE: Led by executive chef Brad Cecchi, left, and general manager Troy Christian, Urban Farmer has averaged about $450,000 in monthly sales in its first according to spokesman Stephen five months. BELOW: Cecchi cuts pork from New Creation Farms in Geauga County. Norton. For instance, the deal will immediately double the size of Steris’ most profitable business unit — its Isomedix division. Isomedix helps manufacturers sterilize medical devices and oth- STEAKHOUSE SERVING UP er products. Synergy Health has a similar business unit called Ad- vanced Sterilization Technolo- gies. The biggest difference between the two? They operate in BUSINESS TO LOCAL FARMS different parts of the world. In other words, the deal will By KATHY AMES CARR give Isomedix a much broader [email protected] reach. And broader is better: A lot HAVE A COW of the medical device companies In just one month, Urban Farmer What does Urban Farmer that pay Isomedix to sterilize Cleveland fields five whole pigs, two partition from a whole cow? their products are global. So now whole cows, 50 cases of chicken, 60 The cuts include: Steris will be better equipped to cases of eggs, 200 pounds of mush- serve them, according to Matt rooms, 120 pounds of tomatoes and 12 tomahawk steaks Mishan, an equity research ana- other bounty harvested from 20 New York strip steaks lyst at KeyBanc Capital Markets Northeast Ohio farmland. 16 tenderloins in New York. “We’re getting some special 10 coulotte steaks “The medical device compa- acorn-fed Berkshire pigs from Mill- nies are everywhere. They manu- gate Farm (in Jefferson),” which in- A pig, meanwhile, yields facture everywhere and distrib- tensify the meat’s rich and nutty various quantities of pork ute everywhere,” he said. flavor, said executive chef Brad chops, charcuterie, sausages Mishan expects Steris’ stock to Cecchi. “We’ll use the majority of it and bacon. hit $64 per share over the next in our charcuterie program.” From a financial standpoint, In the five months since it has whole-animal utilization yields a See STERIS, page 34 meet the steakhouse’s demand. Farmer account represented 36% of opened, the restaurant that is at- cost-savings of between 5% and “We had been thinking of ex- its total restaurant sales during tached to the downtown Cleveland 8% versus purchasing parceled panding, but getting the Urban peak growing season of May Westin has cemented relationships cuts. Farmer account solidified our through July. with about 20 small local produc- “Farmers don’t want to sell plans,” said Floyd Davis of Red Bas- Urban Farmer averages one or- CORRECTION ers, including Chardon-based New parts. They want to sell the ket Farm. “We just added an 8,000- der per month with Miller Livestock Creation Farm, Ohio City Farm, animal whole so they don’t have An Oct. 6, page 26 profile of square-foot greenhouse to grow Co. — each time a 300-pound beef Kent-based Lucky Penny and Kill- to pay to process and package David Edelman, president of the spinach and other greens for half and two lambs. That Kinsman buck Valley Mushrooms in Bur- it,” said executive chef Brad Hebrew Free Loan Association, bank. them.” farm raises and sells 150 pigs, 80 Cecchi. “Many restaurants don’t incorrectly described its new About half of Urban Farmer’s The $30,000 investment nearly sheep and 80 cattle each year, so want to buy the whole animal, partnership with the Hispanic monthly food purchasing — or doubles the Kinsman farm’s green- the new restaurant account doesn’t but maybe just a loin because Business Center of Cleveland. about $100,000 — has been allocat- house growing capacity, from squeeze the midsized farm’s inven- that’s all they’ll use.” The program is open to people and ed toward local producers. 12,000 square feet to 20,000 square tory. But the eatery’s involvement businesses without regard to Some of those operations have feet. Red Basket supplies 11 North- with local farms has prompted — Kathy Ames Carr ethnicity or religion. had to scale up production just to east Ohio restaurants. The Urban See STEAKHOUSE, page 14 20141020-NEW--6-NAT-CCI-CL_-- 10/17/2014 2:50 PM Page 1

6 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 20 - 26, 2014 Frantz Ward will move seventy-fifth 75 anniversary to 200 Public Square

By STAN BULLARD will occupy 46,000 square feet of of- global commercial real estate services [email protected] fice space, compared with the 48,000 square feet the firm occupies on the The Frantz Ward LLP law firm has 25th and 26th floors of the 57-story Key Coming Together in 2015 leased two floors for new offices at Tower, according to CoStar, an on- 200 Public Square and plans to relo- line realty data service. cate next April from Key Tower, at Keim said the new, built-to-suit 127 Public Square. space will be more efficient for the The 29th and 30th floors of the for- firm’s operation than its current one, mer BP Tower offered the firm an office it occupied in 2005 that was something it has never had before, previously renovated by Deloitte & said Christopher G. Keim, a partner Touche. When Frantz Ward set its and member of the management move to Key in 2004, it had 52 attor- committee who chaired Frantz neys; it now has 65. Frantz Ward was Ward’s search. launched by 15 attorneys in 2000 “This is the first time in our histo- who took space in the 55 Public ry that we are building brand new Square office building before mov- space that accurately reflects our ing to Key. identity as a professional, innovative At 200 Public Square, the firm will STAN BULLARD and family-oriented firm,” Keim have more conference rooms and a Beginning in April 2015, the Frantz said. He said the 48-story 200 Public café for employees to emphasize col- Ward LLP law firm will lease the 29th Square “provides us an opportunity laboration, and it will boast a design to and 30th floors at 200 Public Square. to build space focused on collabora- aid the recruiting efforts, Keim said. tion, which is important to our Many, though not all, of its part- citing, especially when leasing a pre- IT’S NO TRICK ... ALL OF OUR clients and our people.” ners will occupy offices the same size mier office building like 200 Public The move also affords the law firm as those of associates, Keim said. Square.” E-NEWSLETTERS ARE FREE! a chance to expand its footprint, as it Partner offices at Key are somewhat Frantz Ward went through an ex- secured options to grow that are im- larger than those of associates. haustive search for new space and www.CrainsCleveland.com/Email portant to its future, Keim said. “Everyone agreed what’s most im- reviewed its options with Key Tower Frantz Ward’s 120-person staff portant is what’s most efficient for before switching trophy towers on the firm,” Keim said. Public Square, Keim said. It even saw The move is a second big win this proposals for two new office build- year for 200 Public Square’s Norfolk, ings and space in a retrofitted build- Va.-based owner, Harbor Group, ing before settling on 200 Public and its Colliers International leasing Square, although Keim declined to team. Last spring, the building discuss the plans in any detail. Open for snagged the Vorys, Sater, Seymour None of the parties would disclose and Pease LLP law firm from One the rent that Frantz Ward will pay. Cleveland Center. However, Converse said, “They got a Frantz Ward was represented by great deal and a great build out (or Business Chandler Converse, a CBRE manag- decorating) allowance.” ing director. Jim Vallos, managing director of Bill Stevens, a CBRE broker, said Harbor Group, said in a news release with Choices that Work. the building’s amenities and central announcing the transaction that it is location are helping it win tenants. “honored to welcome Frantz Ward.” “It’s great for employees to be able Harbor Group principals also to stay in the building during Cleve- worked hard on the deal, with both BUSINESS SOLUTIONS PLATINUM land’s cold winters,” Stevens said. Vallos and Jordan Slone, Harbor Brian Hurtuk, Colliers managing Group chairman and CEO, traveling MONEY MARKET CHECKING director here, said, “This burgeoning to Cleveland to meet with Frantz office market is challenging and ex- Ward’s team. % % SPECIAL DELIVERY To sign up for Stan Bullard’s Real Estate Report, a weekly newsletter that hits 1.04 0.75 1 your inbox on Monday mornings, go to: APY www.CrainsCleveland.com/register 6-month Introductory Interest Rate1 Minimum to open is $5,000 Ask about our other business products and services! Business Edition® Remote Deposit Merchant Visa® Cards2 Capture3 Service Solutions4

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OCTOBER 20 - 26, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 7 FITZGERALD Farmers puts its money into online banking continued from page 4 became governor. By JEREMY NOBILE How much that “large” invest- the app was released in 2012. Since to-deposit ratios, adding they are He told The Columbus Dispatch, [email protected] ment is, the bank declined to dis- then, Wallace said Farmers has comfortable with those levels cur- “You spend too much time reading close. However, Amber Wallace, seen online banking use rise more rently. some weird group of people’s statis- Farmers National Bank of Can- Farmers’ chief retail and marketing than 66%, while use of the app has Last year, the bank closed two tics. We were down 350,000 jobs (un- field has launched a variety of Web- officer, said it’s “very significant,” increased more than 400%. branches — in Warren and Leeto- der Gov. Ted Strickland) and now based banking services in an effort noting technology driven services “These are a lot of high-tech fea- nia — in an “efficiency initiative,” we’re up 240,000. What is there to ar- to not only meet demands of its are “the way of the future.” tures for a midsize community Wallace said, that was not a func- gue about?” own customers, but to compete The services launched by Farm- bank that we’re really proud to of- tion of customers necessarily flock- What started out as an uphill bat- with larger banks, officials say. ers include Popmoney (a service fer,” Wallace said. ing to online banking options over tle to challenge the policies of a “We have made a large technolo- that allows send or request directly Farmers has about $1 billion in-person services. The bank has 21 shrewd but prickly incumbent, cap- gy investment to provide our cus- to or from another person), an on- each in banking and trust assets. total locations, including branches sized in a series of missteps. The first tomers with the financial tools and line “finance manager” tool and According to its mid-year SEC and operations centers in North- was his naming and then dumping services they desire through digital app services like remote deposit, filing, Farmers’ assets grew about east Ohio. state Sen. Eric Kearney as his run- channels,” said Farmers president and picture pay, in which a cus- a half-million dollars compared Wallace said the bank is not ning mate last December after re- and CEO Kevin Helmick in a news tomer can take a picture of a bill with the like period of 2013, but planning any other downsizing ef- ports that the Cincinnati native, his release. “We are focused on provid- and automatically pay it. deposits fell nearly $8 million. forts. Rather, she said Farmers is in wife and a publishing company they ing the most innovative solutions Their first online banking ser- Wallace said it’s a “strategic focus” progress of finalizing plans to grow owned had liens outstanding against available on the market.” vices were launched in 2011, and of the bank to “right-size” its loan- into other markets within Ohio. them for hundreds of thousands of dollars of unpaid debts. Then came reporting in August by The Plain Dealer of an incident two years ago when Westlake police found FitzGerald and a woman, an Irish economic development representative, in his car in the parking lot of a factory, talking at 4:30 a.m. on Oct. 12, 2012. That was quickly followed by Dispatch reports that he had not had a valid driver’s license for at least five years prior to the Westlake incident. For all that notoriety, FitzGerald noted, even getting noticed has been difficult. The Quinnipiac poll found that 48% of likely votes still did not know enough about FitzGerald to like or dislike him. And he trailed Kasich by more than 20 percentage points. With that double whammy, campaign staff jumped ship and what little campaign war chest that had been amassed was shifted by the party to other races.

‘Worth the attempt’ Until announcing his decision to run against Kasich, the 46-year-old Indianapolis native had led a mostly successful political life. He served nine years on Lakewood City Coun- cil before winning the job as the western suburb’s mayor in 2007. His only political loss was a 2002 Demo- cratic primary for Ohio House of Representatives. That relative success blinded FitzGerald to the realities of Ohio politics. It doesn’t help that in many pock- ets of the state, Cleveland and Akron are almost foreign countries, ignored when not outright scorned. Not only that he had never held or even run for state office before. The last two governors from the Cleveland area, George Voinovich and Richard Ce- leste, were first state legislators and then held downticket statewide offices before winning the top job. Another problem, he said, is that while the state has 12 media markets, and 12 metropolitan popula- CLEVELAND. OUR HAPPINESS. OUR HOPE. tion centers, only in Columbus is OUR HOME FOR 150 YEARS. All of us at St. Vincent Charity state government well covered. “Ohio with 11 million people and Medical Center are proud to have been a part of Cleveland for 150 years. all these media markets, people don’t focus on state government,” he And we’re thankful Cleveland has taken care of us just as we have taken said. “The challenge we have is we care of its people. Learn about our anniversary events at www.stv150.org. had trouble, and we still do, getting people to talk about the big issues and the Kasich campaign did a good job of just not engaging on them.” We are all caregivers. Still, he chose to stay in the campaign. “I ran because I believed in the issues I was talking about,” he said. “I knew it was going to be difficult, but I thought it was worth the attempt. I still do.” 20141020-NEW--8-NAT-CCI-CL_-- 10/16/2014 2:14 PM Page 1

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OCTOBER 20 - 26, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 9

ty, is because the secondary market Williams said fans who are upset Look at the Cavs’ preseason games. operators often are based in differ- about paying admissions taxes on If I lose X amount of dollars on TAX ent municipalities than any city their Flash Seats profits “have rights those three (preseason home) continued from page 1 the city’s Division of Assessments that would attempt to collect such to dispute it,” but they would “have games and make X amount on the the exorbitant demand produced by and Licenses. a tax. to provide evidence that there was first three regular-season games, I the Cavs’ wild offseason. Stephens said he isn’t “aware of an- “This dynamic is why the sec- wrongdoing.” have to a pay a tax on profits, but I Using $6 million as the profit es- other city actively involved with col- ondary market in the U.S. is in prac- Jim Juliano, a member of the can’t take off what I lost.” timate for Cavs sales on Flash Seats, lecting admissions taxes on a sec- tice barely regulated, despite the management committee at Cleve- The Cavs are just doing what they the city would collect $480,000 in ondary market,” a claim that’s backed existence of many state and local land law firm Nicola, Gudbranson have been asked by the city, said admissions taxes. Factor in an ex- up by conversations Crain’s had with laws that would seem to place legal & Cooper, LLC, has an extensive Tad Carper, the team’s vice presi- limitations — and in some cases, background in sports law. dent of communications. tended postseason run, and Cleve- a few national ticket brokers. outright bans — on secondary mar- “If the city says the admissions “We are cooperating, as a good land could rake in more than Glenn Lehrman, head of commu- ket sales,” Flaherty said. tax needs to be levied on the sec- partner would,” Carper said. $500,000, SeatGeek estimates. nications at StubHub, the nation’s ondary market, then it makes sense Klang, with his lawsuit not re- largest ticket reseller, said he’s “nev- Cavs are being ‘good partners’ to me that the Flash Seats venue solved, hasn’t been forced to pay Where it all began er” heard of a city collecting admis- should be charged an admissions admissions taxes. sions taxes from an online broker. Since Flash Seats is headquar- tax for people who use the service,” The same can’t be said for entre- In March 2011, the city subpoe- Lehrman alerted Crain’s to a case tered in Cleveland, it “makes it far he said. preneurial fans who were lucky naed three ticket brokers — Amaz- StubHub won against Chicago in easier for the city to strong-arm the That’s the tricky part: Does it enough to secure a ticket to the ing Tickets Inc. of Mayfield Village, which the city had insisted that the two parties (the Cavs and Flash make sense for the city to go after Cavs’ home opener. Twinsburg’s Affordable Ticket broker collect an 8% amusement tax. Seats) into agreeing to collect the fans who make a profit on Flash As of Thursday afternoon, Oct. Agency Inc. and Denver Ticket Co. A federal trial court dismissed tax,” Flaherty said. Seats? 16, Flash Seats sellers were asking — in an effort to collect 8% of their Chicago’s 2008 lawsuit against Dan Williams, the city’s media A couple Cavaliers season-ticket between $180 and $20,000 for seats revenues from the 2009-10 Cavs StubHub, and the state’s Supreme relations director, acknowledged holders who reached out to Crain’s to the Oct. 30 game against the New campaign, the season before James Court upheld the verdict. In its 2011 that because the Browns and Indi- were upset with the policy, saying, York Knicks. All of the tickets that left for the Miami Heat in free ruling, the Illinois Supreme Court ans don’t own a secondary market, as Amazing Tickets owner Mark were priced at $200 or lower were agency. The three brokers coun- unanimously ruled that the state, Cleveland wasn’t collecting taxes Klang has stated about his lawsuit for upper-level seats that season- tered with a lawsuit in April 2012 not its municipalities, could impose from above-face-value sales of with Cleveland, that the city was se- ticket holders could have pur- that stated the city was selectively a taxing obligation on online auc- games involving the other two ma- lectively enforcing the tax. They chased for between $15 and $27 in enforcing the admissions tax, tioneers. jor professional sports teams in don’t have to pay admissions taxes early July. Crain’s reported at the time. “The city has overstepped its town. if they make a profit by selling a Pairs of tickets for the home More than 2½ years later, the home rule authority,” the court said But since the Cavs own a sec- Browns ticket on the NFL’s official opener in sections 204, 228 and 229, case is still unresolved. But at the at the time. ondary market, and “since some- ticket exchange, they argued, so all valued under $30 each, were re- time the city was going after a trio of SeatGeek’s Flaherty said he doesn’t one else is gaining” from a for-prof- why should they if they can find a cently sold for $200 apiece. The ticket brokers, it also filed a motion know of another city collecting an ad- it sale on Flash Seats, Williams said willing buyer for a Cavs game? $1,200 haul should mean more against Flash Seats. In October missions tax from a secondary mar- the city is simply enforcing a rule “No. 1, none of the other online than $1,000 in combined profits for 2011, Cleveland Municipal Court ket, which he attributes to it being that has been in place since 1995, sites are doing it,” Klang said in ref- the sellers. dismissed the motion. “extremely hard to apply local laws to when City Council approved a 2% erence to his case with the city. “No. The city gets 8% of that cut. A lot “That’s when things started,” said e-commerce ticket transactions.” increase to an admissions tax that 2, I’ve never seen a tax imposed more cash will follow in the next Dedrick Stephens, commissioner of The reason, according to Flaher- was implemented in 1976. where you can’t offset your losses. eight months. MetroHealth casts Avoiding the Runaway Train wider net west, adds How to Effectively Manage Your to Westlake presence Company’s Litigation Costs A FREE WEBINAR By STAN BULLARD [email protected] “It will be good news if they are going to invest in the November 4 | Noon - 1:00 PM By purchasing two parcels to assemble an 11-acre site in Westlake, city of Westlake and expansion-minded MetroHealth expand here.” has planted its flag for an addition- – Dennis Clough The new economy is forcing companies to do more with less. al presence in the suburb, although Westlake mayor, after being told of it has not yet detailed its intentions MetroHealth’s land purchases for the property. In this webinar, learn: In two transactions that closed lion-plus building that houses pri- How to work with outside counsel to control litigation costs Oct. 8, according to Cuyahoga mary and specialty care physicians County land records, the board of and imaging services in 57,000 How to ensure that your litigation expenses reflect your business goals the county hospital system bought square feet. However, the property a 4.5-acre parcel at 29579 Center that MetroHealth acquired in How other companies are attaining certainty in dealing with litigation costs Ridge Road from Crocker Realty Brecksville is twice the size of the LLC and an adjoining 6.7-acre par- Westlake site. cel almost 200 feet south of Center The Westlake location lacks high- Ridge fronting on Stearns from way visibility, which health systems Coriell Realty Trust. The combined have craved as they planted subur- sites surround another parcel at the ban locations throughout the re- southeast corner of the Center gion. However, the MetroHealth Ridge, Crocker and Stearns Road in- site connects directly to I-90’s tersection. Crocker Road interchange and, Asked about its plans, Metro- through Stearns Road south of Cen- Health spokeswoman Tina Shaer- ter Ridge, connects to I-480 in North ban Arundel confirmed the Crocker Olmsted. Realty LLC acquisition and said in The parcel is half a mile from the an email: “We currently serve west St. John Medical Center, the only side residents by having Metro- hospital in the suburb’s boundaries, Health physicians at two separate and two miles south of Crocker Christopher C. Koehler Michael E. Smith locations in Westlake. We are fully Park. Partner, Frantz Ward LLP Partner, Frantz Ward LLP committed to improving access to The county-owned health system medical care to residents in western has not yet shared its plans with communities.” Westlake Mayor Dennis Clough. He Shaerban Arundel said the hospi- learned of the purchases from Register Now: CrainsCleveland.com/Webinars tal paid $1.5 million for the Crocker Crain’s Cleveland Business. Realty LLC site. She did not return “We have been told in the past an email and phone call about the they want to expand services in Hosted by: Presented by: Coriell Realty site. Westlake,” Clough said. “Until we Although MetroHealth would get a plan, we can’t assess it. I’m not amplify its plans, the property sure it would be an appropriate lo- is as large as the site of its year-old cation. It will be good news if they Middleburg Heights November are going to invest in the city of Family Health Center, a $20 mil- Westlake and expand here.” 20141020-NEW--10-NAT-CCI-CL_-- 10/16/2014 4:28 PM Page 1

10 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 20 - 26, 2014

PUBLISHER: John Campanelli ([email protected]) EDITOR: Elizabeth McIntyre ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Kasich, again In 2010, we endorsed Republican John Kasich for governor and stressed the importance of balancing the state’s budget. It’s that simple, we said then. Ka- sich would be better at balancing the budget than incumbent Gov. Ted Strickland. Kasich beat Strickland by 2 percentage points that November. His reward? He inherited a state in bad fiscal shape. Ohio was on the ropes from the nation’s FROM THE PUBLISHER economic collapse that began in 2007. The state had lost 350,000 jobs. Unemployment was above 10%. And the budget? It was saddled with an $8 billion deficit. Full disclosure begins with us Fast forward four years, and Kasich has tallied an Crain’s Cleveland Business isn’t a large this information won’t appear for cal business. And nothing can bring lo- impressive list of accomplishments, chief among media operation. We have only 30 peo- months. cal business to a full boil better than a them moving the state’s budget from red to black ple who devote all or part of their work- It’s important to point out that provid- community where every ZIP code is and still managing to create a $1.5 billion rainy-day day to us, not including the support we ing the information will be optional, and more engaged, more employed and get from Crain Communica- we at Crain’s Cleveland Busi- more prosperous. fund. Under Kasich’s guidance, more than 245,000 tions corporate headquarters ness will make no judgment And as the talent squeeze tightens, jobs have been created in Ohio. Unemployment is at in Detroit (human resources, on the numbers (just as we ask businesses need to cast the widest net 5.7%. Tax breaks for citizens and businesses have to- IT, customer service, etc.). you to make no judgment of possible for job candidates. That’s just Our team breaks down like our breakdown). smart business. taled about $3 billion. And the state’s business cli- this: 15 women and 15 men. Which brings us to the sec- Capturing the racial and gender data mate has been improved, with a retooled economic Twenty-eight of us are white, ond reason we’re doing this: also does something else. It allows the development effort in JobsOhio. one is African-American and to establish a baseline. rest of us to become better aware of Kasich has also shown a willingness to cross party one is Hispanic. Where we have been, either those companies and institutions that Why in the world am I dis- here at Crain’s or you at your understand the benefits of inclusion and lines to accomplish what’s best for the state and its closing this? company, is not nearly as im- that have been able to build a strong, di- residents. He expanded Medicaid coverage for low- A few reasons. The first is JOHN portant as where we are going. verse workforce that better represents income Ohioans despite strong opposition from because we have begun asking Today, 28 out of our 30 em- their community and customers. some of you to disclose your CAMPANELLI ployees are white. That’s the To build our lists, we often rely on conservative members of his party. He worked close- breakdowns. It’s only fair for axis of our new graph. companies volunteering to supply us ly with Cleveland’s Democratic Mayor Frank Jackson us to do it, too. As we grow our business, we will ac- with data — the number of employees, to gain legislative support for the plan to transform As you likely know, in virtually every tively try to recruit, hire, train and retain revenue, etc. The fear is that by asking Cleveland’s schools. print issue of Crain’s there is a list. This team members from the largest talent for racial and gender breakdowns, we week, on page 32, we’ve ranked the high- pool possible. will discover that many will simply stop It’s not been all smooth sailing. Early in Kasich’s est-paid CFOs. This isn’t about quotas or to get our participating rather than revealing num- tenure, voters rebuffed his efforts to cut collective As we compile data for future lists that numbers to match up perfectly with the bers that some may view as lacking. bargaining rights of public employees. He’s been rank companies or institutions — largest population percentages in the area. This My hope is that we will see more paris about getting great workers who bring ticipation, from companies that want to criticized for being more of a tax shifter than a tax hospitals, largest employers, largest law firms, etc. — we will begin asking for the different life experiences to our office, reveal their successes or from others that cutter. Case in point, the state’s budget was balanced racial and gender breakdowns of the our coverage and our reporting. That will want to set their baseline (whatever it in part by transferring state funding of programs to workforce. make us better. may be) — and then challenge them- local governments and schools. But we believe the This is new, so the first lists to include Part of our mission is to empower lo- selves to improve it. decisions he has made, tough decisions that aren’t universally supported, were made with the good of Ohioans in mind. TALK ON THE WEB Based on Kasich’s record as governor, he’s made a strong case for a second term regardless of his oppo- Re: Steris’ big inversion deal the U.S. shareholders and the U.S. citi- Re: Indians, dynamic pricing nent. The lack of legitimate Democratic opposition, zens that are Steris upper management, and attendance I’m sure Sen. Sherrod Brown, D- who will reap the benefits. However, however, makes the decision even easier. Cleveland, is unhappy. since they all believe that the UK is such For a family of four, the $40 seats, 2-4 Going into the race, Cuyahoga County executive Why the tax rates that his party es- a great place, they should become UK beers, 2 Cokes, 4 hotdogs, popcorn, pouses — those being the HIGHEST cor- Ed FitzGerald faced an uphill battle against an effec- citizens as well, and even think about peanuts, parking = $250. We’re in the up- porate tax rates in the western industrial moving there. per 8%, but how many times can we tive governor. His puny campaign war chest made world — would ever make a company A real problem in this country is exem- qualify going? the trek even more daunting. FitzGerald’s self-in- move abroad (de facto) is probably con- plified by this and other inversions and — Scott Vranic flected wounds — from a questionable selection of a fusing to someone who never worked for multinational shenanigans. Companies a company or had to actually produce Scott, if you’re spending $250 for a running mate early on to revelations this August that and executives are more than happy to anything. Ever. be protected by our country and govern- family of four to go to a game, you’re do- he drove for a decade without a valid driver’s license No, our role is just to sit back and take ment, but they don’t want to pay for it. It ing it wrong. — have created an insurmountable obstacle. it, right, Sherrod (and all Democrats)? appears that paying taxes and protecting A family of four can see a baseball Just be good boys and pay up. John Kasich has earned a second term as governor US companies is the job of the “rest of us game at Progressive Field for under $100, Sorry it doesn’t work that way. You are taxpayers.” easily. Hell, can be done for around $60- of Ohio. He is a sound fiscal officer focused on bal- reaping the results of the tax code that I would bet if any one of the Steris up- $70. ancing the budget and creating jobs for Ohioans. He you have foisted on us. per management was in trouble in say, — Matt deserves to be re-elected. — WinstonChurchill101 Russia or Columbia, they would not be calling 10 Downing Street or their House The Indians’ attendance woes have I think that this is a great idea for all of Commons representatives. — agnon nothing to do with the pricing or weather. 20141020-NEW--11-NAT-CCI-CL_-- 10/16/2014 10:35 AM Page 1

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CHRIS METCALF/GETTY IMAGES The Indians' average attendance dropped 6.3% to a norm of 18,428 per game in 2014. TALK ON THE WEB (CONTINUED)

In the mid-90s to the mid-2000s, games, perhaps the investment to in the country and buy the same there was a sellout every game. remove those empty seats would’ve seats/concessions/parking you do in Why? Because the team produced been better served to just have them Cleveland. You will be spending 35% offense and there was excitement more affordable to buy. more, easily. throughout the game. — Remember Vic Power Yes, they had great pitching this Do a little research instead of year, but waiting until the ninth in- The entertainment for the casual whining because you’re lazy. Pre- ning or longer to win 2-1 or 3-2 fan, besides the game, is lacking. purchased tickets are cheaper. Park- games gets very frustrating for fans The action on the field is great, ing is $10 for a five-minute walk. who want to see action, as in runs but in between innings it’s the same Park farther away for less and catch produced. games and bits for five years. They a free bus line or RTA. PROUD SUPPORTER OF THE CLEVELAND BROWNS Add a couple of 100 RBI guys to still play “Deal or No Deal,” and I It’s really sad how we are so the lineup and the attendance will don’t think there are still a lot of spoiled here with a winning team be fine. — Hexman fans of that show. A “Price is Right” and can’t muster up a few bucks to game using other prices from catch a live baseball game. GREAT TEAM Some ideas: around the league would be more — Karsten Treu The $1 hotdogs are awful. Maybe interesting- a hot dog, a program, GREAT FANS increase food quality a little bit? and a soda at Fenway and you guess Re: Future of Cliffs Even the suite food tastes worse how much. Natural Resources than McDonald’s. Trivia could be like “The $10,000 GO BROWNS! Build a couple hot tubs/covered Pyramid.” What about a Wiffle ball I think if Wall Street is patient, the heated pool suites! homerun contest somewhere in the new CEO, Lourenco Goncalves, will Free trolley service from a free park during a half inning? Or try to pull Cliffs out of its current mess. 1.800.ELK.OHIO | elkandelk.com parking lot somewhere. — Bob strike out your friend? — Zach — Patriot

Frankly, the Indians’ fan experi- This is beyond silly. ence just isn’t fun to get people off Prices are NOT an excuse. It’s the the couch, win or lose. sluggishness/laziness of fair-weath- Back in the day of old Municipal er fans. You don’t want to plan Stadium, at least the promotions ahead, so you complain about the were entertaining. Management prices when they aren’t as cheap as ANATURALSETTINGFORSUCCESS even brought in the San Diego you had heard because you go buy Chicken mascot for several years a ticket on gameday during a warm, with surprisingly large crowds. big-time weekend series. In this era of high-tech distrac- I’m 26 and paying student debt, tion for consumer attention, good and I marvel at how cheap the luck with the stadium renovations. prices of both tickets and conces- With an inventory of 81 home sions are. Go to ANY OTHER PARK

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MALONE UNIVERSITY: Timothy A. JOB CHANGES Bryan to vice president, communication and marketing. CONSULTING NORTHEAST OHIO MEDICAL FIVE LAKES PROFESSIONAL UNIVERSITY: Andre Burton to SERVICES: Mel Bogo, Lisa Brown executive director, Office of Diversity, and Casey Morse to account Equity and Inclusion. representatives. ENGINEERING Bryan Burton Stropkay O’Donnell Marusiak Eberlein EDUCATION MIDDOUGH INC.: Carl Wendell to AGNON SCHOOL: Laura Leventhal executive vice president, chief WESTFIELD BANK: Lenora Morse to director of institutional advancement. operating officer. to vice president, commercial lender. CASE WESTERN RESERVE UNIVERSITY: Stephen D. Fening to FINANCE FINANCIAL SERVICE director, Case Coulter Translational FIRST FEDERAL LAKEWOOD: Mary BOBER MARKEY FEDOROVICH: Research Partnership, Department of Ann Stropkay to senior vice Jon O’Donnell to senior manager, Biomedical Engineering. president, residential lending. taxation services; Stefanie Marusiak to director, administrative services; Iyer Kerr Gervasi Ambrose Jessica Tepus, Nicole Hughes, Shawn Carlson and Mathew Stewart to managers; Olga Lozovyy and Michael Bigler to supervisors; WHAT IGNITES YOU? Amy Glomski, Nate Lieb, Claire Schwab, Jennifer Martin and TJ EDUCATING PHYSICIANS, PHARMACISTS Hon to seniors. AND HEALTH CARE RESEARCHERS FIFTH THIRD SECURITIES: Jeremy Eberlein to vice president, managing director, investment banking. McMahon Sutherland Mrosko Coyne STEINKE VERTAL LANGDON & DRUM INC.: Bill Stasuk and Don HOSPITALITY alumni engagement. Jacobson to partners and owners; RITZ-CARLTON CLEVELAND: EVI-BASE COMMUNITY CARE: Sarah Patrick to staff accountant. Hollie Ksiezyk to business travel Helen M. Dumski to vice president; sales manager. Stacey Rokoff to chief program HEALTH CARE officer. UNIVERSITY HOSPITALS BEDFORD LEGAL AND RICHMOND MEDICAL REAL ESTATE DRIGGS, HOGG, DAUGHTERY CENTERS: Indiresha R. Iyer, M.D., REDWOOD LIVING: Jill Silloway to & DEL ZOPPO CO. LPA: Robert A. to cardiologist and electrophysiologist. executive vice president, finance. Jefferis to associate. VISITING NURSE ASSOCIATION OF SERVICE OHIO: Michelle Kerr to director of MANUFACTURING clinical operations; Lynne Gervasi to EVI-BASE: Patricia Emser to vice director of quality; Linda LUBRIZOL CORP.: J. Mark president, operations. Ambrose to director of hospice; Sutherland to director, public affairs Jeanne McMahon to manager, and president, The Lubrizol neomed.edu community relations and special Foundation. BOARDS events. MARKETING INDEPENDENT COLLEGE ADVANCEMENT ASSOCIATES: THINK MEDIA STUDIOS: Mary John Coyne (Hiram College) to Hipp to vice president, sales and president. marketing; Chelsie Corso to junior editor. AWARDS

NONPROFIT AMERICAN COLLEGE OF BOND CASE ALUMNI ASSOCIATION: COUNSEL: Bruce Gabriel (Squire INDEPENDENCE BEGINS WITH A CAPITAL “G”. Terri Mrosko to senior director of Patton Boggs) was named a Fellow. Since our founding by the Pew Family in 1956, we’ve remained client-focused, ﬁnancially Send information for Going Places to [email protected] sound, and proudly independent. As a privately-held trust company with $25 billion under management, we’re in a position of strength and we never struggle with competing priorities. Instead, our team of experts crafts a long-term view of your ﬁnancial future and measures success solely by how well we manage wealth, from one generation to the next.

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14 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 20 - 26, 2014 STEAKHOUSE continued from page 5 uate their operations and establish cal squash, pumpkin, sweet pota- izing next year’s menus. Farmer Cleveland’s dependence on owners Melissa and Aaron Miller to relationships. New partnerships toes, broccoli and cabbage as we “The second year will focus on local farmers, not only because it po- work with smaller Northeast Ohio also have unfolded as a result of Ur- can,” Cecchi said. “And we’re busy developing these relationships and sitions itself as such, but also because farms that can augment Urban ban Farmer kitchen staff having with pickling projects so we can guaranteeing they can meet our de- it’s laying a roadmap for those future Farmer’s need. connections with local farms preserve the local food.” mand,” Cecchi said. steakhouse siblings. “This relationship and the in- through previous employment at Local sourcing has its limitations, General manager Troy Christian other local restaurants. though, as partner farms don’t pro- is pleased with the eatery’s five- creasing demand from other local Against the grain restaurants has helped shaped The Cleveland location opened duce enough to sustain demand. month new market foray. Monthly some of our thoughts about help- in May with a Portland-esque While Miller Livestock provides Urban Farmer Cleveland is not a sales have been averaging $450,000, ing other local farms grow,” Melis- menu, then deviated from it after some of the whole animal grass-fed homegrown concept. An offshoot which is about 10% above initial sa Miller said. one month, crafting its own version beef, most of Urban Farmer’s prod- of the Portland namesake, the 216 projections. around Ohio ingredients like uct originates from Georgia. iteration is a vision of Denver- “We’re looking carefully at how ramps, walleye and chanterelle The ability to replace imported based Sage Restaurant Group, this restaurant translates into the Gaining ground mushrooms. Now in its third sea- product with more locally raised which aims to transplant the chef- Midwest. It’s a great example for in- About a year prior to Urban sonal menu change, the focus has beef is among the opportunities the driven farm-to-table steakhouse vestors and for Sage,” Christian Farmer’s opening, upper manage- turned toward winter. chef will be studying over the next into other U.S. markets. said. “So far, I’d say this concept ment toured various farms to eval- “We’re trying to get as much lo- couple months, while conceptual- Particular focus surrounds Urban has legs.”

HOW BAD IS THAT LEAK? 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383, Fax: (216) 694-4264, www.crainscleveland.com

Publisher: John Campanelli Events manager: Jessica Rasmussen Billing: Michele Ulman, 313-446-0353 ([email protected]) ([email protected]) ([email protected]) Editor: Elizabeth McIntyre ([email protected]) Special events coordinator: Kim Hill Credit: Todd Masura, 313-446-6097 ([email protected]) ([email protected]) Managing editor: Scott Suttell ([email protected]) Marketing strategist : Michelle Sustar Customer service/subscriptions: Sections editor: Amy Ann Stoessel ([email protected]) 877-824-9373 ([email protected]) Assistant editor: Kevin Kleps Advertising director: Nicole Mastrangelo Crain Communications Inc. ([email protected]) Sports ([email protected]) Senior reporter: Stan Bullard Account executives: Keith E. Crain: Chairman ([email protected]) Real estate and construction Dawn Donegan ([email protected]) Rance Crain: President Andy Hollander ([email protected]) Merrilee Crain: Secretary Reporters: Lindsie Bowman ([email protected]) Mary Kay Crain: Treasurer Keep your assets safe by taking the time to ensure that problems Jay Miller ([email protected]) Government John Banks ([email protected]) William A. Morrow: Executive vice Chuck Soder ([email protected]) Technology Laura Kulber Mintz ([email protected]) president/operations at the top of your building are not damaging your bottom line. Dan Shingler ([email protected]) Office coordinator: Denise Donaldson Chris Crain: Executive Vice President, Energy, steel and automotive ([email protected]) Director of Strategic Operations Tim Magaw ([email protected]) Web Editor: Damon Sims KC Crain: Executive Vice President, Carey Roofing Corp. has eliminated asset damage due Health care and education ([email protected]) Director of Corporate Operations Dave Kamis: Vice president/production Rachel McCafferty ([email protected]) Digital strategy director: Nancy Hanus & manufacturing to a leaking roof with practical solutions since 1946. Manufacturing and energy ([email protected]) Jeremy Nobile ([email protected]) Finance Anthony DiPonio: Audience development director: Chief Information Officer Research editor: Deborah W. Hillyer Eric Cedo ([email protected]) ([email protected]) Thomas Stevens : Chief financial Officer 216 • 881 • 1999 MEMBER: Web/Print production director: Mary Kramer: Group publisher CAREY Art director: Rebecca R. Markovitz Craig L. Mackey ([email protected]) www.careyroofing.com National Roofing ([email protected]) Roofing Corp. Contractors Association Production assistant/video editor: G.D. Crain Jr. Founder (1885-1973) founded in 1946 Cartoonist/illustrator: Rich Williams Steven Bennett ([email protected]) Mrs. G.D. Crain Jr. Chairman (1911-1996)

Nowacki Asset Management LLC

Nowacki Asset Growth of $1 S&P 500 Total Growth of $1 Period Management (NET) Million Return Million May 2011 - Year End -7.46% $925,400 -6.37% $936,300 2012 29.99% $1,202,927 16.00% $1,086,108 2013 51.76% $1,825,563 32.39% $1,437,898 8/31/2014 21.27% $2,213,931 9.88% $1,519,283

Note: Returns are shown in U.S. dollars after fees. Date of inception for Nowacki Asset Management is May 2nd, 2011.

Nowacki Asset Management (NAM) is a registered investment advisory firm specializing in value-oriented investment management. All client assets are included in one composite and invested using a value-oriented strategy. NAM claims compliance with the Global Investment Performance Standards (GIPS®). Results as of 8/31/2014 are still subject to final verification by an independent third-party. NAM only uses short-term margin or leverage to buy securities after a client commits to deposit funds and the funds are in the process of being transferred, but the money has not yet completed the transfer process. To receive a list of composite descriptions of NAM and/or a presentation that complies with the GIPS standards, contact Michael T. Nowacki at (440) 488-6936 or write Nowacki Asset Management, 29525 Chagrin Blvd. Suite 301, Pepper Pike, Ohio 44122, or [email protected]. www.nowackiassetmgmt.com 20141020-NEW--15-NAT-CCI-CL_-- 10/15/2014 9:48 AM Page 1

WHAT DID THEY FIND WHEN THEY ARRIVED? Crain’s Detroit Business invited 160 prominent Detroit-area “expats” to reconnect with their hometown, see rst-hand the reinvention taking place, and discover opportunities to reinvest in Detroit. Maybe The Detroit Homecoming was historic. But we know it was just a beginning. The “expat” Detroiters are now on a mission to make a difference in their hometown. You can read about it — and see the video — at detroithomecoming.com.

“We’re ready to buy a business here tomorrow,” Warren Buffett, chairman and CEO, Berkshire Hathaway

“If Detroit was a stock, I’d be a buyer,” “Detroit is big enough to matter in the world, Dan Doctoroff, president and CEO, Bloomberg LLP but small enough that you can matter in it,” Sara Sefcovic, vice president, Sloane & Co.

“I hang around a lot of cool crowds and this was the “Detroit needs to be about continuous coolest ever. The genuine connection of Detroiters improvement, multi-tasking the challenges and the careful selection and recruiting you did of today while continuing to build a culture created a magical grouping,” of success and optimism,” Jules Pieri, co-founder and CEO, The Grommet Mike Jbara, president, Alternative Distribution Alliance

ATTENDEES INCLUDED Eric Lefkofsky, CEO, Groupon | Don Green & Michael Budman, co-founders, Roots | Eric Ryan, co-founder, method | Bob Shaye, founder, New Line Cinema | Nicole Curtis, host, Rehab Addict | George “Iceman” Gervin, NBA Hall of Famer | Mike Posner, multi-platinum record- ing artist | Eli Broad, founder, KB Home & Sun America | Dan Doctoroff, CEO, Bloomberg | Jalen Rose, NBA star | Rebecca Blumenstein, deputy editor in chief, The Wall Street Journal | Quintin Primo III, founder, Capri Capital Partners | Braylon Edwards, NFL star | Mike Jbara, president, ADA Worldwide, Warner Music Group | Daniel Levin, chairman & founder, The Habitat Company | Ilan Zechory, co-founder, RapGenius.com

Find out what happened and keep up with future plans as they unfold at detroithomecoming.com 20141020-NEW--16-NAT-CCI-CL_-- 10/15/2014 9:56 AM Page 1

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OCTOBER 20 - 26, 2014 CRAIN’S CLEVELAND BUSINESS 17 SMALL BUSINESS Putting faith in the business Local companies that incorporate religion into the workplace believe it gives them a sense of balance during hectic times

By RACHEL ABBEY McCAFFERTY [email protected]

Truline Industries Inc. didn’t always place faith at the center of the family-owned company’s mission. In fact, CEO Court Durkalski said his father once ruled the company with a bit of an iron fist. Durkalski said his father had been fighting against a union campaign in the 1980s when he came to the real- ization that he was the source of employee complaints. He began using his recently strengthened religious faith as a guide for his behavior in the workplace. Today, the Chesterland-based maker of fuel pump components uses Biblical principles to guide the way it treats employees and customers. “It was a big change,” said president Stuart Watson of the transition. Adam R. Kaufman of advisory and investment firm FO Advisors LLC of Canton said he thinks there are more company leaders incorporating faith into the workplace than the public might realize. Kaufman organized an elective morning Bible study for the annual Entrepreneurs’ Organization conference, held this year in Cleveland. The theme of the session centered See FAITH, page 20

MORE INSIDE ■ Faith-based jobs program adds another layer to preparations ■ Companies are encouraged to be inclusive when bringing faith to the office. JANET CENTURY Page 20 Truline Industries Inc. president Stuart Watson, left, holds a lightweight fuel pump bearing the Chesterland company manufactures. CEO Court Durkalski displays a photo he took from the business’ mission work at a school in Nairobi, Kenya. Point To Point adjusts, has a more analytical view

By CHUCK SODER keting now has a more analytical ple today, up from 16 at the end of or service, according to a 2012 board. Spira now is a shareholder [email protected] focus. 2012, and many of the new hires are study produced by CEB, an adviso- of Point To Point, though Goren Point To Point now spends more executives. ry services firm that helps member wouldn’t say whether he made an Mark Goren used to be in the time helping its clients learn as Point To Point needed to expand companies share best practices. investment. typesetting business. So he knows much as possible about the cus- and shift its focus to ensure its Goren said those customers are Spira, who turns 72 this week, what it’s like to watch a new trend tomers they want but don’t have. long-term survival, according to like sharks that can’t be seen until said he serves as “an actively in- tear a healthy business to shreds. And then the firm helps them come Goren, the company’s CEO. their fins emerge. If you want to volved coach” who attends man- That’s why he spent the last two up with formal strategies designed “The role of a small agency does catch them, you have to figure out agement meetings and occasional- years rebuilding his ad agency, to lure those customers. not match up to the business reali- what those customers are thinking ly works with Point To Point’s preparing it for what he calls the In the process, Point To Point ty I am seeing,” he said. before they make themselves clients services teams. “B2B Buyer Revolution.” shed some old clients who just So what has changed? known, he said. Spira was keen to work with Today, he doesn’t even describe wanted marketing materials. But Today, people who make pur- And if you don’t? Goren — they hit it off two years Point To Point as an ad agency. the 32-year-old company also chasing decisions at businesses can “You’ll lose the sale — and ago, after Point To Point built Spi- The Beachwood company now gained new clients, who tend to be find lots of information online. So maybe your arm,” he said. ra’s personal website. But he also has a much larger management large businesses that sell products they’re becoming more like car wanted another chance to help to other businesses. Thus, Goren’s buyers who do most of their re- guide a company through a period team — which includes Jim Spira, a Opportunity knocks change management expert who new “B2B customer engagement search before showing up at the of change. spent a few years as president of agency” has been increasing its rev- dealership, Goren said. That CEB statistic, and others He’s done it before: As the American Greetings — and a much enue by roughly 40% annually He cited this statistic: Businesses like it, pushed Goren to start mak- founder of Cleveland Consulting bigger staff. since 2012. typically do 57% of their due dili- ing big changes. Associates — which was sold to But what was once an agency fo- However, it spends more money, gence before telling anyone that One of his first moves was to ap- Computer Associates in 1989 — he cused on the creative side of mar- too. Point To Point employs 27 peo- they’re in the market for a product point Spira as chairman of the See POINT, page 18 20141020-NEW--18-NAT-CCI-CL_-- 10/15/2014 3:14 PM Page 1

18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 20 - 26, 2014 POINT TAX TIPS CARL GRASSI continued from page 17 spent much of the late 1970s help- ‘Material participation’ ing companies respond to rising oil prices and the deregulation of the transportation industry. Then, in can be tough to prove 1995, he became a managing partner at Diamond Technology Part- Planning to transition the owner- ners, a Chicago company formed to help companies take advantage of ship and management of a business the Internet. from the retiring “boomer” genera- Spira also helped guide American tion to the next generation presents Greetings into the Internet age, first challenging business, tax and other as a consultant and then as presi- legal issues. dent and chief operating officer in One issue in structuring this tran- the early 2000s. sition is how a retiring business “Being in a marketplace under- owner can “materially participate,” going truly revolutionary change and therefore be considered active creates opportunity for the enter- in the business for tax purposes, af- prise,” he said. Goren Spira ter he has transitioned the business to his children. new employees focused on search setting Services Inc. with two part- A taxpayer who is active in a busi- Room for more engine optimization, project man- ners in 1965. That business was do- ness can take advantage of several Point To Point has hired six oth- agement and client services. Some ing just fine until the personal com- tax planning techniques, such as re- er executives this year, including of them replaced others who puter came along and decimated the ducing the Net Investment Income four in new positions. They give the weren’t the right fit for Point To almost-ancient typesetting industry. (“NII”) tax on S corporation profits. agency more expertise in areas such Point’s new direction, Goren said. Most of the company’s business But, can a taxpayer who has Grassi is president of McDonald as customer behavior analytics, so- “We needed to change the talent dried up within a few years, though moved to Florida remain active in Hopkins LLC. cial media, public relations and dig- mix in our company,” he said. it managed to survive until 1997. an Ohio manufacturing operation? ital marketing. The company con- Making drastic changes can be So Goren isn’t about to let A tax court case recently explored tinues to hire employees beneath tough, but years ago Goren learned changes in businesses’ buying this issue. In this case, however, the tax them, Goren said, noting that Point the hard way that companies have habits catch him flatfooted. You may recall that the NII tax is court focused on another test — the To Point has four open positions. to adapt to new trends quickly. “I believe that we’re at that in- a 3.8% tax on investment income to “regular and continuous” test, The company already has hired His father, Marty, founded Type- flection point right now,” he said. the extent that the taxpayer’s ad- where the taxpayer participates in justed gross income (with some the activity on a regular, continuous modifications) exceeds $250,000 and substantial basis during the (for married couples filing jointly). year, for at least 100 hours. CRAIN’S BLOGS “Investment income” for purpos- The difficulty in meeting this test es of the NII tax includes allocations in most cases is that “management GET THE LATEST FROM OUR EDITORS AND REPORTERS, INCLUDING: of business income from S corpora- activities” do not count toward the 100-hour threshold if the business is EDITOR’S CHOICE: Managing editor Scott Suttell HEALTH CARE: Reporter Timothy Magaw breaks tions, but only if the owner is not active in the business. being managed by someone else. rounds up news and views about business, and down the latest news about the region’s hospitals. In this case, although his son stories of interest in Northeast Ohio. Weekdays Tuesdays Historically, taxpayers have tried to qualify as active in their business- was managing the businesses, the SPORTS BIZ: Assistant editor Kevin Kleps writes WHAT’S COOKING: Twice per month, freelance es to avoid the limitations on offset- father’s activities were geared about the Browns, Cavaliers, Indians and much more. reporter Kathy Ames Carr has morsels on the local ting other types of income with more toward product development Weekdays restaurant scene. losses allocated from their busi- and securing financing, allowing nesses. him to argue that he met the 100- CRAINSCLEVELAND.COM/SECTION/BLOGS The imposition of the NII tax now hour test. makes it important to qualify as ac- It is understandable that the IRS tive even when the company is equated a move to Florida with the profitable. absence of active participation. In the tax court case, a father The tax court disagreed, and found transitioned management of two S that the father’s efforts were “regu- corporations (in which he and his lar and continuous,” and that he did wife continued to own a significant spend more than 100 hours partici- interest) to his son. pating in the companies’ activities He continued to periodically vis- during the year. it the facilities and call on cus- Even though actual management tomers, even though he had moved of the companies had been turned to Florida. over to his son, this fact did not pre- The companies began struggling clude the father from meeting the on account of a variety of factors. material participation test based on The father therefore made addition- his non-management activities. al trips to the facilities to boost em- There is nothing in the tax court’s ployee morale, secured additional opinion to suggest that a semi-re- financing and increased his tired business owner needs to save research and development activity, a financially struggling company or ultimately developing a new invent new products in order to product. meet this material participation He asserted that this level of ac- test. tivity met the “material participa- Rather, material participation is tion” standard, and that he should measured by more than 100 hours be able to deduct over $3 million in of regular, continuous non-man- losses allocated to him from the agement activities. business. This case illustrates that it is pos- There are a number of tests that sible to step down from having pri- taxpayers can use to satisfy the mary responsibility for running a “material participation” standard. business but still be considered ac- The most common test that many tive in that business for tax purpos- are familiar with is where the taxes, even after “retiring” to Florida. payer participates in the activity for It also illustrates that the ques- more than 500 hours during the tion of “material participation” de- year. pends on the facts and circum- Normally a “retired” business stances of a particular case. owner would expect (as did the fa- If material participation will be a ther) to spend less time than that in key issue in determining whether the business. an owner will be able to exempt Other tests for meeting the mate- business income from the NII tax, rial participation test typically can- business activities should be care- not be satisfied if the business is run fully planned and documented in a by someone else on a full-time way that is consistent with the ma- basis. terial participation rules. 20141020-NEW--19-NAT-CCI-CL_-- 10/15/2014 3:11 PM Page 1

OCTOBER 20 - 26, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 19

ADVISER TONY DICK Out of sight, but not necessarily out of mind

In the wake of the firestorm sur- discharging one of its drivers who cluding Arizona and Rhode Island, ■ Social media activity: As many rounding the NFL’s fumbling of the was convicted of driving under the have enacted laws restricting em- employers have learned the hard Ray Rice matter, the league has influence during non-working ployers’ rights to terminate or oth- way, the National Labor Relations pledged to crack down on domestic hours. erwise take adverse employment Act applies to the private sector and violence and other off-the-field After all, a failure to take remedi- actions against registered medical may restrict an employer’s ability to conduct. al action could lead to a claim for marijuana users. terminate an employee for posting It has followed through on this negligent hiring or negligent reten- ■ Tobacco: In recent years, more disparaging comments on social promise in certain respects with the tion against the employer down the and more employers have enacted media. indefinite suspensions of Adrian Pe- road. policies forbidding smoking on or An employer also may violate the terson and Greg Hardy for their re- However, if the facts are modi- off company property in an effort to NLRA by maintaining an overbroad cent run-ins with the law. fied a bit and the employee convict- control health care costs and other social media policy if it could be Of course, Cleveland has not ed of driving under the influence is expenses. construed by employees to prevent been immune from its own off-the- a dispatcher at the taxi company There is nothing under federal them from discussing their wages field issues this season, as Josh Gor- who has no driving responsibilities, law that limits employers’ abilities or other conditions of employment. don continues to sit following his vi- it becomes much less clear whether to ban smoking both at work and olation of the NFL’s terminating the employee would away from the job site. ■ The bottom line: As with all busi- substance-abuse policy. pass scrutiny. But in many regions of the coun- ness decisions, careful considera- In light of the current NFL news try, company policies that refuse to tion is required before attempting cycle, it would seem many employ- Dick is an attorney with the Cleveland ■ Marijuana: Though several states hire smokers are expressly prohib- to regulate the off-duty conduct of ers would benefit from a quick office of Fisher & Phillips LLP. He and local municipalities have eased ited. For example, Connecticut, employees and prospective em- primer on what is and is not permis- specializes in labor and employment restrictions on marijuana, it is still Washington, D.C., Indiana, Ken- ployees. sible in enforcing employment poli- litigation; employment discrimination illegal at the federal level. tucky, Louisiana, Maine, Mississip- What may be legal in one juris- cies outside the workplace. and harassment; retaliation and As a result, employers are gener- pi, Missouri, New Hampshire, New diction may not pass muster in an- wrongful termination; and hospitality ally able to refuse to hire or may dis- Mexico, South Carolina, South other. ■ At-will employment: The NFL is law. cipline employees for marijuana Dakota, Tennessee, Virginia, West A wise employer seeks wise unique in that player conduct and use when the decision is job-relat- Virginia and Wyoming, among oth- counsel to avoid the many possible disciplinary matters are guided by a employer’s control while away from ed and consistent with business ne- ers, all have statutes protecting the legal pitfalls that exist when at- collective bargaining agreement. work, and to engage in conduct that cessity. rights of employees to smoke away tempting to enforce employment Most employees are employed may have no impact on his or her However, a couple of states, in- from company premises. policies outside of the workplace. at-will — meaning they can be ter- work performance. minated at any time, for any reason, On the other hand, there is the as long as the reason is lawful. Al- employer’s desire to enforce its though the doctrine of at-will em- policies in order to minimize liabil- ployment gives employers relative- ity, protect its reputation and mainly wide latitude to carry out their tain employee productivity. policies, employers’ rights are more limited when it comes to monitor- ■ Illegal off-duty conduct: Al- ing and disciplining off-duty con- though employers are often justi- > PERSONALIZED SERVICE duct. fied in terminating or failing to hire In large part, this is due to the fact an employee convicted of engaging for you. that many states and the federal in illegal off-duty conduct, the gen- government have enacted various eral rule is that the employer must laws and regulations in an attempt demonstrate that its decision is job- > COMMERCIAL BANKING to address the several competing in- related and consistent with busi- for your bottom line. terests at play. ness necessity. On one hand, there is the em- For instance, a taxi company ployee’s right to be free from the would likely have a valid interest in

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We believe that banking is about more than expert ﬁnancial guidance and proven banking products. Discounts! It’s also about collaboration, individualized service, Selection! and fostering economic growth in our community. HUGE We’re committed to it. And nearly 80 years of community banking expertise supports it.

LET OUR TEAM HELP YOURS THRIVE. Contact Kurt Raicevich at (216) 239-5908. We Buy & Sell EVERYTHING! www.hgrinc.com HGR Industrial Surplus, 20001 Euclid Ave., Euclid (216) 200-4110 20141020-NEW--20-NAT-CCI-CL_-- 10/15/2014 4:07 PM Page 1

20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 20 - 26, 2014

FAITH READINESS PROGRAM IS DOING JOB continued from page 17 where we believe God owns the includes offering unlimited sick The idea of looking at a job as more on the concept of servant leader- business,” Durkalski said. time to its 68 full-time employees than just a paycheck is a theme that runs ship. Kaufman, who was serving as When Durkalski returned to the and donating 8% to 10% of gross through the Jobs Partnership of Greater the conference chairman, said he company in 1991, following his revenue toward relief for social is- Cleveland’s programming. was expecting five to 15 attendees brother’s death, he had to work sues, such as child hunger. The faith-based job readiness program out of 350 registrants, but received hard to regain the trust he had lost Operating a business by Biblical includes the typical training components, closer to 25. with employees while struggling principles can be a challenge when such as how to do an interview, but it also One of the attendees was Antho- with alcohol and drug addiction. working in a culture that doesn’t al- includes sessions on the Biblical founda- Though it was a “really difficult ny John Miranda, president and ways share the same values, Beck- tion of work, said certified financial plan- transition,” Durkalski, who had chief operating officer of Cleveland- ett said, giving an example of a time ner and former General Electric manager based engineering services firm Al- turned to faith after a failed rela- the company essentially was asked and engineer Mike Shinn. phaport Inc. Miranda said he’s tionship, eventually won them over to make a bribe in a deal in an Asian The program is run through the Mt. “constantly taking a pause” and re- by being humble and consistent in country. Though the company Zion Congregational Church and is an off- flecting on Bible verses when it gets his actions. could have lost the deal if it turned shoot of the church’s volunteer-run, eco- hectic at work. He even dedicates it down, Beckett said they declined an hour each morning to prayer nomic development-focused Christian “It’s an approach to — and the agent who had asked Business League, of which Shinn is the and Scripture. His faith helps him Shinn business that leaves said it wasn’t a problem, after all. chairman. be a more thoughtful leader, he The important thing is to foster a said, one who is accountable to While there’s no specific group membership, about 90 people attend its people feeling whole company culture in which the deci- more than just the government. quarterly Faith and Finance breakfasts, Shinn said. instead of used.” sions made in the margin are the The free, 10-week job training program is open to anyone looking for em- – John D. Beckett right ones, not the easy ones. Beck- ployment, Shinn said. Each session includes the more typical job readiness The Golden Rule chairman, R.W. Beckett Corp. ett said it’s important to be inten- training, as well as a conversation on what God says about what makes tional with the implementation of Incorporating faith into the work important. workplace allows company leaders Joe Trunkely, who retired from such a culture, walking employees Participants don’t have to be members of the church. In the eight or nine to bring their worlds together, said Truline earlier this year after 36 through situations as they arise. years the program has been in Cleveland, about 80% of participants have John D. Beckett, chairman of heat- years, said the company treated its Beckett has about 700 to 800 em- gotten a job, Shinn said. ing and energy equipment maker employees “extremely well.” It was ployees in its family of businesses. “This program works,” he said. R.W. Beckett Corp. in North a gradual change when the leader- Beckett came to his business ap- Ridgeville and author of “Loving ship started guiding the company proach after turning more fully to Monday: Succeeding in Business by faith, but a big one. There was a his faith after the death of his father, Without Selling Your Soul” and rule book, he said, but everyone which left him at the helm of the FAITH AT WORK “Mastering Monday: A Guide to In- was treated individually. company at 26, and a fire that near- Rebecca J. Bennett, a shareholder at Ogletree, Deakins, Nash, Smoak & tegrating Faith and Work.” It also The concept of grace in leader- ly destroyed the business shortly Stewart P.C. in Cleveland, encourages her clients to be inclusive when encourages the idea of respecting ship can be difficult, Durkalski said. thereafter. His strengthened faith they’re looking to integrate faith-based principles into their mission. all employees, as man is created in It’s easy to have a set policy in posed a dilemma at first, because Inclusive employers, those who hire employees with a variety of different the likeness of God. which someone who’s late three he didn’t have a model for people faith traditions, don’t want to run the risk of mandating what people do in who were serious about their faith “It’s an approach to business that times gets fired; it’s more difficult to their personal lives. A company can have employees support its mission work to understand why they’re late in the business world. leaves people feeling whole instead through the course of their work, Bennett said, but cautioned against trying and see if there’s a way to help. Instead of formally communicat- of used,” Beckett said. to legislate the religion or issues the employees support outside of the job. Durkalski said employees are en- ing his new approach with his em- While the Bible doesn’t include Susan DiMickele, a partner in Squire Patton Boggs’ Columbus office, said specific business instructions, it couraged to talk about their prob- ployees, Beckett decided to apply it’s important to note that employers can’t discriminate on the basis of reli- does require individuals to love lems and seek help if they need it. Biblical concepts to situations as gion, especially in terms of hiring or conditions of employment. others as they do themselves, said “We want the best for them and they arose. He said he’s glad he let There are exceptions to that rule, such as for churches or faith-based or- Durkalski, who also has written a their families and their life,” his actions speak for themselves, ganizations. If a company wants to require a specific religious background book on the topic. That means you Durkalski said. because people aren’t concerned in a job candidate, management can apply for a bona fide occupational have to trust people as you would with what someone says. qualification from the Ohio Civil Rights Commission. trust yourself, an admittedly diffi- “They’re more interested in how Putting it to work — Rachel Abbey McCafferty cult task, he said. it affects your conduct and your “We truly do operate in a way Under the Truline approach, that life,” Beckett said.

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EMPLOYEE AD VA NCEMENT Align talent with company goals LEADERSHIP Avoid a hope-based strategy HIRING Using brand to attract talent

HEALTH & WELLNESS The often overlooked behavioral component

Crain’s Cleveland Business Custom Publishing HR Leadership Group of Northeast Ohio S2 October 20, 2014 HR Resources Growth Performance ADVERTISEMENT

PRESIDENT’S LETTER LE OF Taking HR to the next level TAB e are grateful to Crain’s Cleveland will be. This leads to better profitability consultants and academia. Our CONTENTS Business for recommending that and better business results. common focus is to address leading Wa special supplement be dedicated to The key factors to engagement are edge thinking in human resources human resource topics. The HR world communicating a vision and devel- to remain effective and aligned with and its priorities have evolved from oping people. Vital business strategy. EMPLOYMENT the days of “personnel departments” to HR programs such as We invite all senior business ADVANCEMENT addressing strategic imperatives such succession planning, executives to attend our events held as employee engagement, productivity, leadership develop- bi-monthly at 8 a.m. at the Embassy Developing talent for future leadership roles talent acquisition and development. ment and commu- Suites hotel off Rockside Road in is essential to taking your company to the A top CEO priority is having the nity involvement help Independence. This year’s topics 4-6 next level. right leaders and staff deployed achieve this. include: appropriately with a great corporate The HR Leadership Broadbent November 13: Appreciative Inquiry culture. These are at the heart of our Group of NE Ohio has prepared by David Cooperrider of Case Western profession and your business. More the articles featured in this special Reserve’s Weatherhead School of recently employee engagement has section to help you address business Management. LEADERSHIP become a focus. The more engaged priorities. Our organization’s members your workforce is, the more productive, are HR professionals such as HR June 15: Truly Human Leadership Great leaders make for great companies. directed and positive your employees vice presidents and directors, leading by Bob Chapman, CEO of Barry- Cultivating a stronger leadership culture Wehmiller Companies. 6-8 will set your company on the right course. March 5: Private Health Exchange: Case Study from an Early Adopter by Marty Guastella of the Oswald Group. May 14: Prepare Now for the 2020 Workplace with award-winning author HIRING Jeanne Meister of Future Workplace. Stay ahead of the curve as a new breed As HR leaders, we recognize that of employees seek to move quicker managing people can be a complex part 8-9 when deciding where to work. of the leadership role. HRLG offers an open forum for your HR leaders to stay on the cutting edge of topics, solutions and best practices through learning from industry experts and networking H EALTH & WELLNESS with local leaders. Best Regards, Corporate programs are evolving to address all aspects of wellness — physical, Brian Broadbent 10-11 President of the HR Leadership Group behavioral and ﬁnancial.

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EMPLOYMENT ADVANCEMENT CREATING CONSTRUCTIVE PERFORMANCE REVIEWS By TOM AULT n Organizations benefit by communicating n Performance management is a shared priorities and providing feedback in order responsibility. The employee, manager n today's team and collaborative to help employees improve. and company all own a piece of it to be environment, having a performance successful. Ireview with employees is a great n Managers benefit by having capable n communication and evaluation tool. people in their orga- Employees “own” their development. However, with most companies nizations that achieve It is up to each employee to decide what conducting some type of performance results. to develop and be motivated to do so. n There should be no surprises. review, a 2009 Reuters poll reported 4 Standout companies Regular conversations should be open out of 5 U.S. workers are dissatisfied typically have a perfor- and two-way. with their review. So how can you mance management cy- n All employees have strengths and conduct a review that will be beneficial, cle that starts with per- Ault it comes down to how comfortable should be done and measure how well to both you and the employee? improvement opportunities. formance planning. This continues with a manager is in conducting a review. the process is being implemented. This When done well, these benefits of n regular checkpoints where performance is Goals and objectives can be adjusted Some are good at it and others are ensures continual improvement in the performance reviews are established: discussed and ends with a formal throughout the year. not. It certainly helps when there is a process. Build trust between yourself n Employees benefit from regular performance summary of the review There is a range of how companies process, methodology and a culture and the employee, and you are on track to being a standout company. discussions about performance with period. This cycle can include for- handle performance reviews — from that allows for open feedback. validation that they are doing the right mal reviews, informal coaching and the non-existent to the regular formal Companies that provide training and Tom Ault is director of technical training thing and receive coaching when they feedback sessions. Standout companies and informal coaching that standout coaching on conducting performance and a trainer at ERC. Contact him at are not. usually follow these principles: organizations provide. Many times, reviews set the expectation of what (440) 947-1290 or [email protected].

Align talent development with organizational goals By AMY LANE As with any initiative, it requires organization-wide objectives. To plan or individual contributor programs. coaching sessions, action plans, project vigilant planning, sound execution and the right training, the organization The two should review the objectives assignments and/or report-outs, among t is well recognized that the people should take a holistic approach: of the training, set expectations of how other activities. Managers should expect in any organization generate its disciplined follow-through. n the employee will Icompetitive edge. How do you assure It is not uncommon for a manager to Find out from the organization’s follow-up work that applies the learning apply the learning, that an investment you make in your observe an employee’s behavior and leadership the top strategic initiatives to the employee’s job responsibilities. decide on what action employees’ development ties to the decide that training is in order. Vigilant in the coming one to two years. Disciplined follow-through requires the employee will corporate strategy and provides a return planning assures that the training aligns n Gain insight into the challenges skills practice so that the organization take as a result of the on investment for the organization? with the employee, departmental and facing the organization and what skills can be sure that the training has the and competencies employees will need training and discuss expected impact. to address the strategic priorities. how to overcome Sustained growth comes from potential challenges. Lane n Review performance evaluations and an organization’s investment in its Sound execution requires more than ADDRESS THE SKILLS GAP IN YOUR BUSINESS look for recurring themes in a broad employees’ learning and development. just the employee’s attendance at the Build a Winning Team range of employee development plans. Well-planned, carefully executed training training event; the employee and his/her with deliberate follow-through will build Research proves that a manager’s manager must engage before and after the necessary employee skills to drive the training for real, sustained results. engagement with an employee’s learning your organization’s strategic goals. experience prior to and after the learning For any talent development investment event is the most critical component for to provide a return, the employee must Amy L. Lane is associate vice president for the transfer of learning to the workplace. be held accountable for applying what corporate and professional development Experts in the Science of Employee Selection and Development This is true for executive leadership he/she learned in a training program to at Kent State University. Contact her at Innovative technology to map key positions using MaXXattain development, mid-management training the workplace. This may take the form of (330) 672-5828 or [email protected]. Assessment Technologies Group (800) 737.5622 What can employers do to address the skills gap? By DIANA L. CLARKE, Ph.D. One program with much success was the person. funded by the Rite Board Foundation. n olumes have been written in the Identify employees who have gaps that A process of work profiling and past few years on the dearth of can be bridged through training. MaXXattain were Vskilled applicants for various positions. n Hire and train, use collaboration with used to analyze the We all have known the demographics Workforce Development (WIOA) if HR’s ad agency. gap. It was a joint are shifting as the workforce ages and available. effort between several the Baby Boomers leave the workforce, groups and has been The skills gap is a major issue today albeit later than anticipated. Knowing and can be bridged with effort. We this will happen and addressing the recognized as a model program for the U.S. need to attract the young to the various gap are two different issues. Some Clarke The focus was on the positions with the greatest needs and be employers and business sectors are able to know where each person fits best. feeling the pain of the “skills gap” more computer science area, yet the process can be used for any role. There are As we articulate the gaps clearly in the dramatically than others. This has led to “in demand” positions and plan on-the- consortiums and workforce initiatives several things employers can do: job and classroom training to address to address the gap for small groups n Identify the positions with the the gaps, we will achieve success. Now of employers. The Manufacturing greatest need. is the time to start clarifying what the Consortium in Medina County and the n Use work profiling to clearing articulate gap means in your company. Make It in America grant are examples. the KSAs (Knowledge, Skills & Abilities) What can the employer do to address Diana L. Clarke, Ph.D., is principal with and personal characteristics for success. these issues in their own company today, Silverwood Associates and a senior davidgroup.com rather than wait for large programs to be n Test the potential candidates with a consultant at Assessment Technologies piloted (or federal initiatives to move system that maps to the work profile. Group. Contact her at (330) 239-1646 or Recruitment and Retention Advertising and Communications through the government mire)? n Identify the gaps between the job and [email protected]. ADVERTISEMENT HR Resources Growth Performance October 20, 2014 S5

EMPLOYMENT ADVANCEMENT Developing leaders should be a priority By AMY B. SHANNON assignments, mentoring, training and The development of leaders is not a Amy B. Shannon is president at Pinnacle Leadership Solutions, LLC, and partner in volunteer activities. Technological “one size fits all” approach. Rather, it trategically, leadership development Your Partner in HR. She has specialized in executive coaching, leadership training advancements reduce geographic should be a priority of the organization and organizational development for over 20 years. She is vice president and a board necessitates a multi-faceted limitations, which provides expansive with senior management support to member of the HR Leadership Group Association and is chairperson of the Faces Sapproach. Effective organizations grasp access to coaching, mentoring, and customize strategies to meet the needs of Hope campaign for Volunteers of America. Contact her at ashannon@ the concept of cohesiveness: alignment participation on project teams. of all levels of the organization. pinnacle-leadership-solutions.com. of business strategy, goals and objectives with talent development. Now more than ever, workplace culture is being “Employees of all ages and levels believe that effective leaders transformed by four (and soon to be five) generations in the workforce at one are humane-oriented, participative, team-oriented, and charismatic.” time. Why is this important? The future demographics of the U.S. workforce will Center for Creative Leadership’s 2014 World Leadership Survey shape the future talent pool. As business leaders, it is imperative to plan for the future transformation of the workforce. Inevitably, over the next six years a significant number of Baby Boomers will exit the workforce, taking their HRLeadershipGroup.com knowledge, skills and abilities with them. Fundamentally, can you identify the key drivers of success now and in the future? Identifying these drivers will result in your organization's Shannon ability to establish a sustainable talent pipeline, create attractive retention strategies that appeal to multiple generations in the workplace, and continually develop internal leaders and “high potentials.” Tomorrow's leaders are catalysts to future organizational success and profitability. Does your current culture, leadership Leading resources. lineup, processes and systems support the direction of your organization? Enhancing the talent acquisition process requires creation of talent profiles that incorporate core competencies necessary Greater performance. for current and future requirements to support a sustainable pipeline. Critical success factors for organizations include: n Leveraging non-traditional social channels and resources into sourcing strategy. Give your HR leaders help to excel. n Keeping abreast of shifts in technological advancements. n Maintaining organizational reputation EMPLOYEES, OWNERS AND JOB SEEKERS MEMBER BENEFITS within the community. n Conducting assessments of internal TURN TO YOUR HR EXECUTIVE EVERY DAY. Our programs and networking events deliver the latest in: talent pool to identify individuals with BUT, WHO DOES HR TURN TO? sStrategy and planning leadership potential. The HR Leadership Group of Northeast Ohio provides sLeadership development n Supporting leaders that will establish professional networks thereby further HR leaders the support they need. We are an unmatched sOrganizational effectiveness enriching the organization’s reputation in the community. group of practitioners, consultants and academics who sTalent management According to the Center for Creative focus on creating organizational impact by developing Leadership’s 2014 World Leadership human capital, while enhancing the professional growth Refer your HR leaders to us so they can enhance the Survey, “Employees of all ages and levels believe that effective leaders of our members. performance of your organization. are humane-oriented, participative, team-oriented, and charismatic.” Therefore, it is highly plausible for an organization to cultivate a singular strategy for leadership development and retention. Employee engagement is a key driver of retention. There are several ways to motivate employees MEMBERSHIP through advancement opportunities, dynamic culture, meaningful work, For membership information and recognition, responsibility and support. upcoming program listings, visit Organizations must determine critical HRLeadershipGroup.com core leadership competencies and then provide opportunities to enhance skill sets through executive coaching, job rotation programs, special S6 October 20, 2014 HR Resources Growth Performance ADVERTISEMENT

EMPLOYMENT ADVANCEMENT Motivate Your Employees: Be Their Coach! By JENNIFER COHEN 21% higher business results. The communication, collaboration, trust conversations, achieve potential, retain motivating employees to achieve goals, research also revealed organizations and commitment to results. and engage top talent and shift the struggles with poor or low employee reating a culture where that effectively prepare managers to The role of the “coaching manager” culture of the organization overall. performance and/or engagement, or employees are inspired and coach are 130% more likely to realize at every level is needs to develop all leaders and high Cmotivated to exceed performance goals Taking steps to create and sustain stronger business results and are 33% proving to be critical. potentials to drive organizational is a critical opportunity for business a coaching culture builds upon the better at engaging employees. Training all levels strengths of all employees and supports performance, creating a coaching leaders. Recent research supports the Organizations are focusing their of leadership to be a more strategic level of function. After culture may be the right solution. significant role of coaching in creating efforts on building a coaching culture effective coaches for all, it’s about enabling and facilitating this culture of engagement and high that extends beyond any one manager their employees puts Jennifer Cohen is senior vice president performance. Bersin & Associates and is dedicated to helping employees vital skills into their growth and excellence in performance. and director of the leadership recently reported organizations whose develop fully; that accelerates the hands that immediately Cohen If your organization needs to create development practice at Ratliff senior leaders “very frequently” capability of high potentials more impacts their ability to inspire a culture that embraces development & Taylor. Contact her at (216) 901-6000 make an effort to coach others have quickly; and that supports effective excellence in others, initiate impactful and support of others, is sluggish in or [email protected].

LEADERSHIP LEADERSHIP. I S IT REALLY THAT SIMPLE? By DIANE F. McNALLY a musician, scholar, family man, simply said, “If you get the leadership strengths and your limitations. Don’t benefit of a great coach, my Dad. I also engineer, sportsman; a true renaissance be afraid to admit mistakes or to say have seen the positive impact that great admit it. I’ve adjusted my email filters thing right, the rest will follow.” It took man. He was my Dad. you don’t know something. And have to tighten down on the numerous some prodding, but I got him to elaborate coaching has had on colleagues and I recall many days walking through a sense of humor. Isolicitations that I receive about “HR on what I felt was his clients. We all need a trusted network of Dad’s manufacturing plant and listening support and expertise to help us leverage stuff.” It took me a long time. I thought oversimplified theory. Be earnest: Listen intentionally. to his conversations with his team our strengths, work on our weaknesses I might miss something; whatever the Dad believed that Engage people in conversations that of 300 employees. Rarely did these and help us navigate our lives as leaders. newest thing may be. More recently, I’ve leadership is the linchpin matter to them. Work hard on things exchanges involve the technicalities in a company’s success. that matter most. It is definitely not a journey to go alone. noticed the proliferation of information of work. Rather, Dad asked his team “Bad leaders make for Be active: Engage at all levels of the If you agree with my Dad that a about leadership. Not a day goes by about family, their bowling scores or bad companies,” he great leader is the linchpin to a great that I am not bombarded with incoming golf game, or just exchanged a joke. McNally company. Inspire people to contribute said. “It’s as simple as organization, who better to invest in messages about the latest theory, practice, He always asked their opinions about and to be accountable. Show your that.” He went on to say: “Great leaders and support? Leaders matter, don’t workshop or book about leadership. I issues and concerns. He truly wanted appreciation for their efforts and help are genuine, they are earnest and they are forget to invest in them, too. have to ask, is it really that complicated? to know. He listened intently and made them see that their work and their ideas always working on behalf of the company It’s that simple. Early in my career, I worked with sure to follow up with each employee to really matter. someone whom I still regard as one of thank them for their input. and the employees; not themselves.” It may seem like a simple equation; Diane F. McNally, Ph.D., owns Diane the best leaders I have ever known. He I once asked my Dad what he thought Could it really be that simple? however, it can be challenging for McNally Consulting. Contact her at (440) was a business owner, a civic leader, made for a successful company. He Be genuine: Know yourself, your leaders to make it all happen. I had the 227-4766 or [email protected]. “Great leaders are genuine, they are earnest and they are always working on behalf of the company and the employees; not themselves.”

Effective leaders possess opposing management styles By RICHARD BOYATZIS client had an explosion in their plant. No their electronic controls and suggested years have not known that these two and action skills (how to focus and be and TONY JACK one was hurt but production stopped.” contacting their attorney. Barbara, vice styles rest in two different neural open) provides hope. president of marketing, asked, “David, networks. We use the Task Positive David wanted a personal touch, to avid smiled, walking into his David called an emergency meeting of have you talked to the Network to make office. The weekend was fun. his vice presidents and asked for ideas. show concern but not to imply that their president of the client? decisions and solve DEven his teenagers were not sulky. Frank, vice president of finance, controls were at fault. This was consistent The plant is only 45 problems. But when His assistant ambushed him: “A major talked about the potential liability of with their long-term relationship. He minutes away. How we are open to a new chose Barbara´s approach. By the way, about driving over and idea, other people or the explosion had nothing to do with the see what happened?” moral concerns, we company’s controls. Frank interrupted her: use the Default Mode “That could be read as Boyatzis Jack Network. Not only do Richard E. Boyatzis, Ph.D., is a distin- an admission of culpability.” Barbara these two networks have little overlap, guished university professor at Case replied: “Frank, get serious. We don´t they suppress each other. Western Reserve University, the H.R. have to say it was our controls but In leadership, we see this difference Horvitz professor of family business merely show concern. They are a key as the task leader and the relational and a professor in organizational client and this is a shock.” leader. It was thought to be a behavior at the Weatherhead School A LEGENDARY David was hearing two styles typical function of a person’s experiences or of Management. in management. Frank immediately personality. Now we know it is a result went on the defensive. Barbara thought of repeatedly using one of these neural Anthony Jack, Ph.D., is director of WORKPLACE research at the Inamori International Horseshoe Cleveland is proud to hire locally, support our hometown about the client and how to collect networks. Effective leaders need both community and contribute to our thriving downtown neighborhood. more information. She worried about neural networks. They cycle back Center for Ethics and Excellence; doing the right thing with an important and forth in under a second and are principal investigator of the Brain, client. These are two different styles of sensitive to which network is needed Mind and Consciousness laboratory; management. One style is more task- when. Sadly, we have been mostly and associate professor of cognitive

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LEADERSHIP The pitfalls pertaining Succession planning for the to a hope-based strategy next generation of leaders By STEVE HARRIS will diminish and your organization’s performance will suffer. Requires focus on business strategy and incorporating coaching irst of all, what is a hope-based The second is that resources are strategy? Many would say that it By JEAN TRINER development include: of revenue growth, market share, F likely being directed somewhere other profitability and customer satisfaction. means you do not have a plan. While trategies for success that incorporate n Aligning the succession plan with the than to their highest and best use. The Coaching, as part of succession that’s partially true, the issue runs coaching as a cornerstone of current and future business strategy. primary purpose of a strategy is to planning, may have a positive impact deeper than this snarky explanation. Ssuccession planning have taken hold in n Determining key aspects of the assist with the allocation of all types of on productivity. An independent A hope-based strat- Northeast Ohio. Many East and West organization’s culture as resources and focus the organization. study by PriceWaterhouseCoopers egy may mean that Coast companies have used leadership a basis for designing a In the absence of a realistic strategy, found 70% who received professional you have a plan but it coaching to groom talent for succession succession process that resources will flow to the loudest need coaching improved work performance. is not realistic because purposes for more than two decades. “fits” and is streamlined in the short term. This is often not best Even when promotional opportunities of the timeline, a lack A few years ago, two innovative enough to be effective for the organization. are limited, coaches work with the of resources to ex- top executives in a major Cleveland and sustainable. Recommendations organization to develop strategies to ecute the plan or that organization engaged an executive n Having strong top- Harris When it comes to strategy, the first Triner keep leaders engaged and productive. you have a plan that coach for their strategic succession level ownership of and recommendation is to have a clearly The expense of succession planning does nothing more than collect dust. planning and leadership development involvement in the succession planning articulated one. Test drive its clarity and coaching is minimal compared to the In any case, it means that there is process. The succession plan revealed a and leadership development process. by sharing it with others before you cost of executives underutilizing their full no visible evidence that intentional critical gap between the organization’s n Providing coaching for talented call it final. leadership potential and the loss of strong activities are being performed to strategy for growth and the number and successful executives deemed cause the desired outcome. You are The second recommendation leadership when a top executive retires of leaders needed to support it. The promotable or who are just starting to doing what you do, hoping that it is to ensure that the right people or leaves for an attractive opportunity executive coach strategically worked “derail.” If these leaders are resistant ends the way you want it. are involved in its formulation. in another organization. One highly one-on-one with three talented leaders to coaching or have already derailed, Assemble a diverse group of people respected, large Northeast Ohio company Issues to build on their strengths and help spend the time and money on others in to build it, and then cover the who unexpectedly lost its CEO and did The obvious issue with a hope- them become more competent in areas the organization. spectrum of perspectives to achieve not have a leader prepared to succeed him based strategy is that it is unlikely critical to the organization’s continued n Engaging the stakeholders, people the necessary support for success. is now a faint memory in our community. to work; but there are other pitfalls success, such as impact and influence invested in the organization’s success, Having a clear strategy may take Leadership coaching has become a that are less noticeable but just as and results management. as an essential aspect of the coaching some work upfront but it will be well best practice in conjunction with strategic dangerous. The first relates to how After honing their skills with process to support the successors in an worth it in the end. succession planning. These strategies others in the organization view the support of the coach and key organization. n result in an integrated, sustainable a hope-based strategy. It erodes Steve Harris is founder and president stakeholders, two were promoted into Linking the succession planning system with outcomes that contribute to credibility. And if you are attached at The People Advantage. Contact him higher-level positions and a third was process with key organizational measures the profitability and ongoing viability of to it, then it erodes your credibility. at (216) 536-0499 or steveharris@ identified as the next likely candidate for and with leadership selection, retention the organization. If you lead people, their trust in you thepeopleadvantage.com. an elevated role in the succession plan. and development. Proven strategies used by coaches There are strategic market performance Jean Triner is president at Triner when engaging with executive teams benefits of succession planning and Associates, Inc. Contact her at (216) on succession planning and leadership leadership development in the areas 646-1982 or [email protected]. ENGAGING YOUR TEAM IN CORPORATE SOCIAL RESPONSIBILITY By KAREN KAMINSKI employees to participate in and support community events as a s the list of work-related tasks corporate team gives the company a grows longer each day, it’s easy greater presence in the community. Ato forget issues of personal importance Businesses and local residents will to employees, such as volunteering view the company as a good partner in the community that cares about the community in to make their city a which it lives. The organization may better place to live, also gain new customers who value work and play. firms that demonstrate a high level of However, enabling social responsibility. employees and their families to become n Team Building: Participating engaged in their Kaminski in community events with their Together, we can leverage our diverse talents to inspire and community has numerous benefits colleagues often brings employees for the company as a whole. closer to one another, and allows pursue ideas for a better future. them to get to know each other n A Caring Culture starts with as individuals. As a result, those Our employees make a positive impact on the world, and in turn, we strive to an Engaged Team: Employees often find their jobs more fulfilling employees find new, more efficient make a positive impact on the lives of our employees. We do this by establishing if they are permitted to insert a ways to interact and work together. engaging and supportive work environments; investing in the health and wellness bit of their own personality into Companies of all sizes should of our employees and their families; encouraging continued education and skill the work day. That could mean set aside time and resources for development; and offering exceptional advancement opportunities. chairing an effort to collect school employees to merge their home supplies for underprivileged children and work lives so that all involved Parker’s thriving and fulﬁlled workforce is empowered by a culture that reﬂects the or volunteering at a local food may benefit. Support employees’ shared values of all of our employees. For more, visit us at www.parker.com. pantry. Whether companies allow efforts and commend them for a job employees to do this work on well done and it will reap rewards the clock or recognize them for in engagement, which equates to extracurricular activities outside productivity and success. the work day, employees are more Karen Kaminski, JD and MBA, is the likely to view their employer as an vice president of human resources organization with a caring culture, at Horseshoe Casino Cleveland and and will go the extra mile at work. ThistleDown Racino. Contact her at n Enhanced Visibility: Allowing [email protected]. S8 October 20, 2014 HR Resources Growth Performance ADVERTISEMENT

LEADERSHIP IS IT TIME FOR HR TO HAV E A SE AT AT THE BOARDROOM TABLE? By LEE ANN HOWARD 6. Technology Proponent t doesn’t matter if all the chairs are The board-ready HR executive will full; it matters that you have the see the broader organizational impact Iright people in them. Human resources beyond having all of the “(employee) professionals have known this for years. seats filled to knowing that the right With the ever-increasing awareness of the people are in the right seats who are importance of talent management, boards engaged and developing additional of directors are beginning to heed this skills for future opportunities.” This philosophy and give HR professionals a inevitably leads to reduced employee seat at the boardroom table. turnover and improved bottom line Boards have long been charged with results. These are outcomes that make corporate governance, that system of boards happy and investors elated. rules, practices, and processes by which Utilizing these competencies are a company is directed a way to develop deep industry and controlled. With knowledge that is necessary for HR a mix of independent executives to be effective board members and members. “Become a master of your company insiders, profession and a student of your boards must work business,” Kroeger challenges. “Be cohesively to oversee the voice in the room that speaks with Howard strategic planning, authority on talent and compensation financial issues, succession planning, issues. But you also need to be a voice regulatory compliance, operations, and in the room who can credibly weigh in risk management — all heady issues of on business and strategy.” enormous consequence. In addition, the Many boards find the addition of a HR interests of its shareholders, management, professional to be a logical next step as customers, suppliers, financiers, their stakeholders look more and more government, and the community must for accountability and transparency. also be addressed, leaving every board HR professionals are also experts at with a tremendous responsibility for the directing knotty issues like reward well-being of the corporation. more than the “corporate cop,” it is a not months in advance of management expert.” This provides an anchor of strategy, corporate culture management Over time, the human resources strategic partner with the other company changes, but years in advance.” experience for the entire board. and succession planning. They bring a function has evolved from one of executives and the board. The responsibilities of most There are certain skills human level of comfort and expertise that make administrative support to that of a Tom Kroeger, who serves on CHROs dovetail nicely with these resources executives should embrace them a natural leader in these areas, business partner and change agent, the board of ACCO Brands, is an newer concerns of today’s boards, in order to become a strategic business but HR executives with board-room capable of achieving strategic and executive recruiter with Howard & including issues like corporate social partner to a board as well as the aspirations need to understand that operational objectives. The 2001 O’Brien and was previously the chief responsibility and ethics. For example, potential to become a board member. the board room is a place for business Enron scandal highlighted the need human resource officer (CHRO) for compensation — always a hallmark of In his 2012 Human Resources generalists — not functional specialists. for increased oversight from corporate Sherwin-Williams, Invacare, and the human resources department — is Competency Study, Dave Ulrich (the The world of the corporate board boards and the 2002 Sarbanes-Oxley Office Depot. He believes that a HR one area in which Kroeger feels the “Guru of HR” from the University of is one of increasing demands from (SOX) Act heralded a more all-inclusive executive comes to the boardroom CHRO is invaluable to boards. “HR stakeholders, corporations, customers, approach to corporate governance. with a “unique perspective on the and compensation committees are Michigan) outlines six “must-have” competencies for HR success: and regulatory agencies. Seating As a result, the HR function gained a intersection of people and strategy. becoming the new audit committee,” business-minded HR executives at the 1. Strategic Positioner stronger voice in the boardroom. Human More companies are recognizing he says. “It’s a dreaded assignment boardroom table is a next logical step resources puts in place processes and that. We make sure management is because of the time commitment and 2. Credible Activist for progressive boards. procedures around rewards, training developing an entire leadership team the scrutiny of outside agencies. The 3. Capability Builder and development, and recruiting capable of executing the corporate CHRO, however, is well-versed in Lee Ann Howard is CEO at Howard & and retention to meet the company’s strategy. With HR on the board, that compensation issues and comfortable 4. Change Champion O’Brien Executive Search. Contact her at immediate and long-term needs. HR is type of discussion is being raised — in the role of being a compensation 5. HR Innovator and Integrator (216) 514-8980 or [email protected]

HIRING Look within your own company to identify high-potential talent

By JAMES LUNDQUIST, M.A. approach can help your organization do a Step 2: Evaluate employees objectively your talent pool. Also, if people improve Most agree that identifying and better job of identifying and developing and often. When looking at current from year to year, someone who falls developing existing talent is a great way rganizations continue to struggle high-potential talent. employees, consider not only their short one year may rise to the occasion to build bench strength and develop a to identify the elusive high- abilities but also the next year. high-quality workforce. Creating an Opotential talent. While many companies Step 1: Determine the behaviors and qualities that lead to success in your their motivation. Do Step 3: Create development plans equal playing field for all employees to have high-potential programs in place, organization. Establish a benchmark people really want for people at all levels. Focusing be evaluated and focusing on the right internal candidates are typically drawn for selecting people for high-potential advancement? Are they on behaviors and creating tangible behaviors will create strong loyalty from a narrow pool of employees programs by evaluating those who have willing to move? If they action plans will keep the focus to the organization and commitment in highly visible positions. Often been successful and by identifying the succeed as an individual on improvement and on noticeable from employees for years to come. overlooked are front-line and entry-level qualities necessary to succeed in the contributor, will they be behavior change. Managers will also Lundquist workers that have the skills and values future. These benchmarks will ensure as successful working benefit from reviewing these plans James Lundquist, M.A., is director to match the culture of the organization, that future leaders have the right through others? Casting a wider net and with employees at least quarterly to of talent development at PRADCO. but are pigeonholed into a specific field qualities needed for success in the evaluating people at lower levels of the ensure that the development trajectory Contact him at [email protected] or career track. Following this three-step unique culture of your organization. organization can improve the caliber of is maintaining positive momentum. or (440) 337-4649. ADVERTISEMENT HR Resources Growth Performance October 20, 2014 S9

HIRING Stay in front of the pack in today’s hiring process

By CHRIS NASH being involved in the process. These companies trust that their decision- he current market landscape makers understand who can be has shifted over the past successful in their organization. They T18 months. Today we find an also understand that candidates have employment market that is candidate- options and there is great importance driven. What does that mean to in prompt decision-making. Would local companies you want to go to work for a company that are trying to that doesn’t know what they want in a land top talent? future employee? It means that the The talent acquisition process is game has changed firmly tied to company culture. I find and companies that the same companies that know that act swiftly and and understand how to hire great decisively are able Nash people also have an excellent idea of to hire great people. The longer it their company culture. Are technical takes to manage a talent pipeline skill sets and proficiencies important? and move people toward an offer, Absolutely, but a candidate that the greater the chances that the doesn’t fit the culture will ultimately candidate loses interest or is hired end up leaving sooner rather than by another company. later. As a leader and hiring manager Strong company brand can So, how should Cleveland’s do you understand your company’s most progressive companies hire? culture? Do you understand the types The simple, one-word answer of candidates that will fit into your keep employees engaged is “proactively.” Companies are team and group? If you can answer shortening the hiring process to By N. ROBERT JOHNSON they’re selling” and, even worse, we’ll as an employer is showcased and the these questions affirmatively then tell others about the poor experience. attributes of employment are clearly less than two weeks. These types s the economy continues to managing the process shouldn’t be Companies with strong employer communicated. By communicating of companies also value single- improve, HR’s mission is focusing difficult and hiring top talent is right brands, however, are a strong employer brand, employees source recruiting relationships with Amore and more on the organization’s most around the corner. able to connect with become engaged in their work while talent acquisition agencies. High important asset, its people. But, there is a current and future candidates are inspired to join. trajectory growth companies are Chris Nash is vice president/managing storm forming that will make it harder for talent in ways that If your company is being challenged to setting up one-day interviews and partner at the Rogers Group. Contact HR to find and keep the talent it needs. him at (440) 865-2025 or email reinforce the promise find, attract and keep talent then it may making hiring decisions after the first The perfect storm impacting [email protected]. and positive attributes be time to think about strengthening your interview. Leadership and peers are recruitment, engagement and retention of their employment employer brand to engage and connect. performance is the collision of experience. Employer Johnson employees who are less connected to N. Robert Johnson, APR, is the practice branding connects with employees, and their companies and a new world of leader at The David Group’s candidates, just as consumer branding experience-based communications. workforce communications practice. connects with customers: by telling and This presents a challenge for HR’s need The David Group, known as HR’s ad showing a compelling and engaging story. to find, attract, engage and retain talent. agency, specializes in recruitment, What is a strong employer brand? retention and engagement communica- Fortunately, a strong employer brand In short, a strong employer brand is tions. Contact him at (216) 685-4486 addresses this challenge. one in which a company’s identity or [email protected]. There’s little doubt that workers are less connected than ever with their companies. Recent engagement studies show that only one out of three workers is engaged with their companies. Other signs of a lost connection with talent are readily available. n “Actively looking” and “browsing” employees make up 77% of employed workers, according to the job board site Monster; n Monster also found that 90% of employed workers plan to explore new opportunities as the job market improves; and n LinkedIn found through its talent survey that only 15% of employed workers are so happy at work that they won’t even consider another position. To make matters worse, we are now entering an age of communication where it’s all about personal experience. Our connections to those things that are important to us — work, community, Automation Plastics Corporation personal interests — are being shaped Automation Plastics Corporation (APC) is a custom thermoplastic injection by the experiences we encounter. molding company that specializes in producing highly engineered parts for various We connect with great experiences. customers. In order to fully serve our customers APC also provides services to build We want to become a part of what’s and maintain tooling as well as post mold machining and assembly. going on. If the experience is great then we become advocates and fans, Since its founding in 1979, APC has maintained long relationships with customers, quickly liking, posting and tweeting small and large, working within many industries. These long relationships are our positive impressions. Conversely, PDLQWDLQHGDQGFRQWLQXHWRJURZGXHWRFRQ¿GHQFHLQ$3&¶VDELOLW\WRSURYLGHTXDOLW\ we’ll instantly disconnect from a service, creativity, and dedication to meet their needs. bad experience. We won’t “buy what S10 October 20, 2014 HR Resources Growth Performance ADVERTISEMENT

HEALTH & WELLNESS BRIDGING THE WELLNESS GAP Don’t overlook the importance of the behavioral component By VALERIE S. CLAUSE, SPHR their employees’ psychological and emo- gram. “What happened? Obviously this tional well-being – organizations can help person understands physically what they nsurance premiums continue to employees develop need to do to lose or maintain a healthy rise and organizations continue to accountability for their weight; the disconnect comes at the Istruggle to reduce costs for both the health and learn lasting behavioral or psychological level. This company and the individual. The path healthy habits. is where the next level of wellness pro- to keeping costs down is clear: the “Almost everyone gramming is needed — bridging the gap healthier the individual, the less need knows someone who between temporary and lasting change.” for medical interventions. has lost weight, im- While most organizations host health Clause Leaders who want to lower insurance proved their blood pres- fairs and offer biometric screening oppor- costs and improve the well-being and sure, lowered their risk of diabetes, and tunities to their employees, very little is productivity of their workforce need to seemed to be on the path to wellness only done to help employees take the next step implement wellness programs that in- to see those gains reversed due to falling to improved wellness once they know tegrate measurement with behavioral back into old habits,” said Janet Schia- their numbers. A progressive organization change. By focusing on the whole per- voni, director of ease@work, a Northeast will engage an integrated health manage- son – not just biometric numbers, but also Ohio regional employee assistance pro- ment partner to help mitigate risk, create solutions and position the organization for success in wellness initiatives. An integrated health management part- GREAT LEADERS. ner may use assessments as a starting GREAT ORGANIZATIONS. point — traditional biometrics, fitness and occupational assessments when indicated — but then go beyond by providing well- Diane McNally Consulting works with leaders who connect outstanding ness coaching; teaching techniques such organizational practices with business success. Through Executive and as decisional balance and emotional read- Team Coaching, Innovations in Organization Design and Creative iness; providing nutritional, fitness, stress Talent Management Strategies, we can help you create, engage and lead and lifestyle management coaching; edu- an exceptional organization. cating on critical health topics, such as As an experienced human resources executive and business owner, Diane emotional eating, creating a fitness vision, for a bandage to treat the symptoms once regional employee assistance program. McNally brings her real-world insights and professional credentials to deliver diabetes management and more; and pro- solutions that suit the unique needs of your organization. they occur? Or do we want a healthier Contact her at [email protected]. viding increased pharmaceutical aware- workforce that does not rely on treatments ease@work offers a multi-faceted Build Visit our website to arrange a complimentary consultation to learn ness through access to programs such as after the fact but sustainable change that Your Own wellness program, BeingWell@ how your organization can thrive in today’s dynamic environment. medication therapy management. leads to prevention to begin with? Work, designed to integrate the physical It’s time to take a critical look at what components of wellness with the behavioral www.dmcnallyconsulting.com/crains-consult organizations want employee wellness Valerie Clause is manager of organizational and psychological to lower costs, enhance programs to accomplish. Are we looking services at ease@work, a Northeast Ohio productivity and increase motivation.

Broad range of ﬁnancial health The Center for programs for employees is integral Corporate and to a complete wellness approach Professional Development By PHILIP J. AMOS be enabled as they approach retirement. 1. It is important to offer meetings t is no secret that a growing number of to a target audience. As part of the We’re your employee development resource. employees are approaching retirement education strategy, include classes for Iin the next five to 10 years. Financial You are in good company when you Kent State’s Center for Corporate people in different stages of their career. stress adversely affects performance choose Kent State for your employee and Professional Development works For instance, invite people approaching in what should be employees’ most development and training. We work with you to develop and deliver onsite the “retirement red zone” to a class that productive season. A complete wellness with top employers in our region, training programs such as Lean Six addresses financial pitfalls for those in plan emphasizes and offers resources from University Hospitals Sigma, supervisory skills and project their late 50s and 60s. Or hold classes to prepare for their and Saint-Gobain to The management. We also consult with for those just getting started in their financial future. Sherwin-Williams Co., Lubrizol you on organizational performance career and offer education on how to Corporation and NASA. through a variety of services such Statistics are glaring build a solid financial foundation. as strategic process improvement when it comes to 2. It is key to have education consulting. how many people specialists that are financial planners are ill-prepared for and offer participants the chance to sit their retirement. The “ ... Kent State’s programs are incredibly adaptable ... they design training to address and talk about their overall financial government has taken Amos picture one-on-one. Financial planners your organization’s speciﬁc problems ... I highly recommend Kent State.” steps to put pressure on corporate should be trained to help participants fiduciaries to make sure expenses are John Ruth, President understand not just the proper in line and investment options are up BDI allocation of their retirement plan, but to standards within their retirement also help individuals and families set plans. However, the rubber meets the financial goals to set them on track road on how well we communicate and toward a successful retirement. effectively implement those tools with Consider Kent State as Strategic wellness plans can be the participants. Traditional wellness your talent development partner. successful, particularly if they focus plans offer tools and programs to help Call 330-672-5828 or visit not only on your employees’ health but www.kent.edu/YourTrainingPartner. employees set and achieve goals related also on their financial wellness. e Center for Corporate and to their physical health. The inclusion Professional Development of financial wellness subjects gives Philip Amos is president at Chapman and Kent State University, Kent State and KSU are registered trademarks and employees the ability to set and achieve Chapman Inc. Contact him at (440) 934-4102 may not be used without permission. 14-1669 personal financial goals allowing them to or [email protected]. ADVERTISEMENT HR Resources Growth Performance October 20, 2014 S11

HEALTH & WELLNESS CASE STUDY: Parker Hannifin pioneers use of integrative medicine practices wellness to the Win Strategy, the core Unique wellness program goes above and beyond traditional corporate benefits package business strategy implemented by Parker since 2001, further reflects Parker’s By DANIEL S. SERBIN medicine practitioners to support the several years, so any effort to reduce company is critically connected to the commitment to providing the widest program and uses NGS Coresource to those costs is of significant importance. health of its employees, Parker globalized o overcome the challenge of selection of education and treatment administer claims. Currently, therapies Although it is still too early to accu- the wellness program to support a healthy rising health care costs and options to its employees. Parker is and services utilized through Parker’s rately account for savings, Parker has lifestyle for its 57,500 employees in 50 expand employee choices for establishing a standard roadmap to program include: therapies to remove observed a decline in countries around the world. Tmanaging their health, Parker Hannifin, achieve the company’s vision of healthy heavy metals, hormone optimization, pharmacy utilization To serve as a “best practice” model the Cleveland-based global leader and productive employees, which will be integrative cancer treatments, for those participating for other locations, wellness model in motion and control technologies, implemented locally at global facilities. chelation therapy, immune system in integrative medicine sites have been established at 19 has established a global wellness and While recognizing the importance of optimization, massage therapy and treatments and at cer- Parker facilities: 13 in North America, preventive medicine program that covers traditional medicine, the Parker program acupuncture for treatment of muscle tain sites, where a more four in Asia, and one each in Europe employees for both traditional care and is making a paradigm shift in how or skeletal disorders and pain relief. comprehensive ap- and Latin America. Each has at least integrative medicine. While parts of companies should think about managing While Parker views the program as proach has been imple- Serbin 100 employees, and they collectively the program resemble other corporate their employees’ health and aligning an investment in the well-being of its mented, Parker has seen a steady decline represent all of Parker’s business groups. wellness initiatives, many aspects benefits programs to affect change. workforce and the primary benefit is to in per-employee healthcare costs. Parker is also utilizing its “High are truly novel, such as self-funding allow employees to maintain their health The wellness program was launched Performance Team” model to facilitate Daniel S. Serbin is executive vice for integrative medicine treatments, and productivity, it is also believed that, in Cleveland in 2003 and gradually the rollout of the program, empowering president, Human Resources and coverage for nutritional supplements and over time, the new integrative treatment expanded throughout North America, small groups of employees to develop external affairs at Parker Hannifin the establishment of its own network of options may reduce overall health care with modifications made based on solutions that address specific areas of Corporation, the world’s leading practitioners. Benefits of the program costs. Parker’s healthcare costs exceed employee feedback and analysis of the health risk identified among employees diversified manufacturer of motion will take time to prove but early evidence 10% of sales and have been increasing impact of various program elements. at their facility. and control technologies and systems, suggests this may be a great success. at a double digit rate during the past Recognizing that the health of the The recent addition of health and headquartered in Cleveland, Ohio. Integrative medicine is evidence- based Complementary and Alternative Medicine (CAM), a group of diverse healthcare systems, practices and products that are not presently considered part of conventional modern medicine. The program essentially levels the playing field Chapman and Chapman for these treatments by paying 80% *OHWTHUHUK*OHWTHUPZHÄM[ONLULYH[PVUMHTPS`VÛLKHK]PZVY`WYHJ[PJL of the costs and offers a broad range MVJ\ZLK PU[OLLTWSV`LL ILULÄ [ZHUKÄUHUJPHSZLY]PJLZ PUK\Z[YPLZ(Z H of treatment options aimed at getting TLTILYVM5-7)LULÄ [Z7HY[ULYZHUH[PVUHSJVYWVYH[LILULÄ [ZVYNHUPaH[PVU VMTVYL [OHU VѝJLZHJYVZZ [OL JV\U[Y`^L OH]LHJJLZZ [VNYLH[LY to the root cause of symptoms for ZVS\[PVUZNYLH[LYPUZPNO[HUKNYLH[LYZ\WWVY[4VZ[YLJLU[S`5-7^HZYHURLK certain conditions, which are generally I`)\ZPULZZ0UZ\YHUJLHZ[OLÄM[OSHYNLZ[ILULÄ[ZIYVRLYI`NSVIHSYL]LU\L less toxic and invasive than standard Hire Talent. To learn more please visit: www.chapmanandchapman.com medicine. Parker’s global wellness program supports a holistic approach to health, and offers employees choice Develop Leaders. Cleveland - East Cleveland - West and empowerment over how and where 2307 East Aurora Road 36711 American Way they receive care. Suite B-13 Suite 2F Key elements of the wellness and Achieve Results. Twinsburg, OH 44087 Avon, OH 44011 preventive medicine program, which 440.287.7600 440.934.4102 are currently offered to employees at the company’s headquarters and are ™ in the process of being made available Collaborate. Innovate. Elevate. throughout their U.S. and international www.pradco.com :LJ\YP[PLZHUK0U]LZ[TLU[(K]PZVY`:LY]PJLZVќLYLK[OYV\NO5-7(K]PZVY:LY]PJLZ33*5-7(:TLTILY-059( :07**OHWTHU *OHWTHUPZHTLTILYVM)LULÄ[Z7HY[ULYZHWSH[MVYTVM5-70UZ\YHUJL:LY]PJLZ0UJ5-70:0 facilities, include: ÔPJOPZHUHѝSPH[LVM5-7(:*OHWTHU *OHWTHUPZUV[HѝSPH[LK^P[O5-7(:VY5-70:0 *VW`YPNO[*OHWTHUHUK*OHWTHU0UJ(SSYPNO[ZYLZLY]LK n Programs coach employees on proper 440.337.4700 diet and nutrition and help motivate them to pursue a healthy lifestyle, including weight management and smoking cessation groups. Parker employs a corporate nutritionist. 2014-2015 PROGRAM SCHEDULE n An on-site preventive medicine clinic offers alternative treatments such as acupuncture and massage therapy. NOVEMBER 13 JANUARY 15 MARCH 5 MAY 14 n Disease management and clinical Appreciative Inquiry Workshop Truly Human Leadership: Private Health Prepare Now for the programs help employees and spouses NEW FORMAT! 8:30 am — 11:30 am A Culture of Care, Compassion Exchange: Case Study 2020 Workplace! with chronic diseases like diabetes, and Human Connection from an Early Adopter asthma or congestive heart failure. DR. DAVID COOPERRIDER JEANNE MEISTER Professor of Social Entrepreneur-ship at BOB CHAPMAN MARTY GUASTELLA Founding Partner, Future Workplace n A robust educational program, the Weatherhead School of Management, Chairman & CEO, Barry-Wehmiller Vice President, Human Re- including lunchtime sessions, is In partnership with Entrepreneurs Edge Case Western Reserve University sources, Oswald Companies focused on health and wellness. In partnership with Entrepreneurs Edge SPONSORED BY SPONSORED BY SPONSORED BY n A state-of-the-art fitness facility is SPONSORED BY Kent State University Case Western Reserve University The David Group available to employees and spouses, Corporate College & Alexander Mann Solutions with quality equipment and classes ABOUT US: HR Leadership Group is the premier organization for human resources leadership professionals in Northeast Ohio. We are a diverse group of practitioners, offered throughout the day. consultants, and academics who focus on high-level, human resources strategy and workforce development. We provide our members with high quality n An on-site farmer’s market offers fresh programming in order to provide exposure to innovative HR solutions, resources, and knowledge. We also provide an locally grown produce, and a cafeteria exclusive peer community where HR leaders can engage in strategic conversations and collaborations that help to drive FOR MORE INFORMATION: organizational performance. promotes a healthy, balanced diet. HRLeadershipGroup.com All programs take place at Embassy Suites, 5800 Rockside Woods Boulevard, Independence, Ohio 44131 216-533-3661 Parker has established a growing beginning at 7:30 am for networking and 8:30 am for the program. [email protected]. network of credentialed integrative 20141020-NEW--32-NAT-CCI-CL_-- 10/16/2014 10:30 AM Page 1

32 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 20 - 26, 2014 HIGHEST PAID CFOS-PUBLIC COS. D=C/<D

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OCTOBER 20 - 26, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 33

ment. During the recession, some tent management software — regu- tech employees who wanted to leave larly hosts social gatherings for peo- HUNT their jobs stayed put because no one ple who use Microsoft’s SQL Server MONEY IS ALWAYS A GOOD START continued from page 1 wants to be the first one on the chop- data platform and the JavaScript Having trouble finding good soft- been going up more steadily. ping block when a company decides programming language. them anymore,” Ours said. ware developers? Data from Modis, a tech staffing to make cuts, according to Whitlock, “We really just want to build that Granted, the local fight for talent One solution: Offer more money. firm, paints a slightly brighter a Northeast Ohio account manager relationship first, rather than reach- doesn’t appear to be as vicious as But that may not be the most picture. for Modis, an IT staffing firm based ing out blindly,” Latessa said. the war going on in Silicon Valley. popular solution. Salaries for five of the six titles in Jacksonville, Fla. But by now News stories regularly describe the many of those people have already More than money The available data is inconsistent, analyzed by Crain’s went up sky-high salaries that good coders but it doesn’t suggest that local significantly this past year. But found new jobs, he said. LeanDog also builds its network can command in the San Francisco Salaries here aren’t rising like by hosting conferences and gather- companies are in a bidding war for some increases just made up for Bay Area these days. they are in Silicon Valley, but local ings for tech enthusiasts at its office tech talent. past decreases. The local salary data that’s avail- demand for IT talent is “probably as — a renovated barge that floats on Data from the Employers Re- And it’s unclear how many em- able is inconsistent, but it suggests high as I’ve ever seen it,” he said, Lake Erie. If the software develop- source Council in Highland Heights ployees are counted in the figures, that most Cleveland-area coders adding that there’s “super crazy de- ment firm meets someone they like, suggests that the average local which Modis gathered from Ca- aren’t getting enormous raises. mand” for .Net developers. that person gets added to the “depth software developer makes nearly reerBliss.com, a site where employ- Still, local demand for talent is only Nationally, the unemployment chart” — a list of friends and associ- $76,000 a year — a figure that ees provide anonymous getting tighter, by all accounts. For rate for tech employees fell to 2.7% in ates that the company will call when hasn’t gone up much lately. But only information about their employers. instance, roughly a dozen recruiters the first quarter of 2014 — a figure it’s ready to hire more people, ac- seven companies (representing 14 Local tech pros do OK overall: recently joined the NEO IT Think that hovered in the 3.5% to 3.9% cording to Nadia Gordon, director of developers) responded to that ques- They make about as much as their Tank, a LinkedIn group for local in- range throughout 2013, according to talent development at LeanDog. tion during this year’s survey. peers across the country, formation technology executives. a report from the tech job website The “vast majority” of the people And there’s only one reason why: The average web developer according to Modis. The top earn- Dice.com. The report cited data from the software development firm hires They want to hire people, according makes less — more than $62,000 ers — in San Francisco — make the U.S. Bureau of Labor Statistics. are not looking for jobs, Gordon said. to Chuck Mackey, who hasn’t seen so a year — but their wages have 28% more money. The unemployment rate for all in- The company is able to get their at- many recruiters interested in joining dustries stood at 5.9% in September. tention partly because it has an of- the group since he started it in 2009. fice on a boat — with access to Mackey added that other compa- Relationship builders kayaks and paddle boards just out- nies have tried to recruit his col- side. It’s one way that LeanDog has AMAZON’S AUDIBLE IS MAKING NOISE HERE leagues at Avantia Inc., a Valley View- Using LinkedIn to recruit people worked to build its brand in the local based IT services firm that does a lot who aren’t looking for a job isn’t new, Local companies aren’t the only in Independence — has family in the tech community, she said. of custom software development. but Amy French of OEConnection ones that want to steal your best area. And he figured that the higher “And that brand attracts a lot of “It’s happening, and we see it hap- said it’s been harder to snag so-called tech talent,” she said. software developers. cost of living on the West Coast pening to our people,” said Mackey, “passive” job candidates lately, given Companies that want to attract Recruiters from a subsidiary of would eat up any raise he might senior managing director at Avantia. the demand for good IT people. and keep tech talent need to go be- Amazon came to town in January in get. The best ones now sometimes ex- an effort to hire people like Marko But other people could have Market is ‘super crazy’ pect to get offers from other compa- yond offering competitive benefits packages, according to Marty Mor- Iskander. made the move: Iskander said the And tech companies aren’t the nies without actively looking, accord- darski, director of research and The local tech consultant said he Audible recruiter told him that the only ones poaching tech talent. ing to French, vice president and membership at the Employers Re- was among those who visited the company aimed to hire at least Two of the four technology execu- chief administrative officer at the source Council in Highland Heights. Cleveland Airport Marriott to sit three people who had already come tives who spoke during the first pan- Richfield company, which makes People want to do meaningful work, down with recruiters from Audible, in for interviews. el discussion at last month’s CIO software that lets auto dealers sell and they want opportunities to grow an Amazon subsidiary that distrib- Plus, Iskander said he knows of Symposium noted that they regular- original equipment parts via the Web. professionally, Mordarski said. utes digital audiobooks. two other local software developers ly try to hire IT employees who are Rising demand has pushed OE- Plus, they want a life outside of work. And a few days later Audible of- recently recruited to Seattle: One happily employed in other jobs. Connection to re-evaluate its com- That can be a problem, especially at fered him a job, either in Seattle was hired by Microsoft in May, and Rachel Johnson got laughs from pensation structure for tech em- tech companies and other fast-grow- the audience when she told them ployees more frequently to make (home to Amazon) or at its head- another was hired by Amazon just ing businesses that sometimes take on that her company, NRP Group, is sure the company keeps up with quarters in Newark, N.J. last month. more work than their employees can probably “cold-calling your compa- what other businesses offer. He thought about the Seattle job “Unfortunately, that talent’s leav- handle, especially if they’re having a nies right now.” Plus, OEConnection has been able but ended up turning it down. Why? ing. But I’m hoping they come back hard time finding people to hire. NRP Group, which develops and to look for talent in the Columbus Iskander — a subcontractor for at some point and bring back what “If those folks who are burned out manages apartment complexes, area since opening an office there in LevelSeven, a marketing and tech- they’ve learned,” he said. seek greener pastures somewhere doesn’t have much choice, accord- 2011. For instance, it recently added nology consulting company based — Chuck Soder else, now you’ve compounded the ing to Johnson, who is chief infor- Ohio State University to the list of col- problem,” he said. mation officer for the Garfield leges it taps for interns. Heights-based company. OEConnection also has tried to be- “Most people that are very suc- come more active in the technology cessful and ‘A’ players are probably community and has increased the in a great job somewhere else. They amount of money it offers to employ- are not on the street looking for a ees who recommend someone who NATIONAL ESTATE PLANNING job,” she said. gets hired. These days, it is more so- Companies have had to get more cially acceptable to reach out to po- resourceful to find IT employees, ac- tential job candidates through social cording to Brad Nellis, president of the media, but Hyland Software prefers AWARENESS WEEK Northeast Ohio Software Association, to meet passive candidates through which hosted the CIO Symposium. networking, according to Lindsay The economy has improved to the Latessa, team lead for the Westlake October 20-26, 2014 point where tech workers are “en- company’s recruiting group. trenched and happy,” Nellis said. For instance, the company — Bill Whitlock echoed that state- which makes OnBase-brand con- VOLUNTEERS FROM The Estate Planning Council of Cleveland will be offering a free consumer advice phone bank from WKYC, Channel 3 Wednesday, October 22, 2014 4:00 pm - 7:30 pm WHO IS LOOKING OVER YOUR DEAL? Are you working with a lender that will Phone in to have your basic estate planning actually close on the original terms? questions answered AGGRESSIVE FINANCING UP TO $10M! UP TO 10 YEAR TERMS JonathanJ Mokri LOW FIXED RATES 440.526.8700 For more information on the phone bank, 20-25 YEAR AMORTIZATION [email protected] Estate Planning Council of Cleveland, and NEPAW: www.cbscuso.com www.epccleveland.org

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34 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 20 - 26, 2014 STERIS continued from page 5 More Synergy synergies Cost vs. revenue 10% cut would equal $30 million if previously accused Burger King of year, which would easily beat pre- Mishan’s predictions are accurate: being un-American after the fast At least one customer is almost It’s easier to calculate how much vious records. The deal pushed him Before the Synergy deal, he had ex- food chain announced plans to in- certain to use more Steris products: money Steris will save: The compa- to raise his estimate from $61. pected Steris to earn about $300 corporate in Canada through the Synergy helps hospitals sterilize ny expects to reduce its costs by $30 Most other investors aren’t as ex- million — before interest, taxes, de- acquisition of Tim Hortons. their used medical devices. Steris million per year once the two com- cited about the deal. The compa- preciation and amortization — But Brown, who also has re- happens to sell equipment used to ny’s stock — which stood at about panies are fully integrated, and that during the fiscal year that begins on ceived $8,000 from Steris’ PAC sterilize such products. Steris has $55 per share on Friday morning, doesn’t count savings from lower April 1, 2015. since 2013, didn’t criticize the com- noticed this, according to Norton, Oct. 17 — dropped slightly after the taxes. About $25 million would On that day, the United King- pany in a statement his office sent the company’s spokesman. deal was announced. It’s still hov- come from cuts related to “corpo- dom’s corporate tax rate will fall to to Crain’s. Rather, he said the inver- “They’ll start using our washers ering near record territory, howev- rate & back-office” functions, ac- 20%. U.S. companies that fall into sion is “yet another reason that we and sterilizers and disinfectants er, and lots of shares are changing cording to the document on Steris’ the highest income bracket are re- need legislation to address the cor- and consumables,” he said. hands. website. quired to pay a 35% rate, a figure porate tax code.” He favors lower- Steris also could help Synergy The Synergy deal didn’t push El- Does that mean Steris will elimi- that excludes state and local taxes. ing the corporate tax rate and speed up the growth of its Hospital liott Schlang to change his $58 price nate local jobs? Steris would only Some companies pay less because changing the law to prevent com- Sterilization Services business. The target. But he does think it presents say that “it does not expect the of tax breaks and accounting ma- panies from housing profits in for- division just got started in the Unit- a growth opportunity for Steris. transaction to have any negative neuvers, but the standard rate is one eign tax havens, like Bermuda. ed States, but it is expanding quick- Yes, the deal should help the impact on its people.” Mishan be- of the highest rates in the world. The U.S. Treasury already has company cut redundant costs and ly. It recently won two huge U.S. lieves the company will want to changed a few rules in an effort to lower its tax bill by incorporating in customers: Johnson & Johnson’s keep as many functions as possible prevent some inversions, but Mis- the United Kingdom. But the rev- SterilMed business, which fixes and centralized in Mentor, given that its Don’t tax me, bro han thinks they shouldn’t stop the enue opportunities are even bigger, resells medical devices, and North management team is there. That rate drove another North- Steris deal — which would give according to Schlang, managing di- Shore-Long Island Jewish Health He speculates that “most of east Ohio company, Eaton Corp., to Synergy’s shareholders a 30% stake rector at Great Lakes Review, an in- System, which operates 16 hospi- those (cuts) would come out of incorporate in Ireland after it in the combined company plus vestment research firm in Shaker tals in New York state. Synergy.” That company employs bought another manufacturer called 4.39 pounds ($7.06) for each Syner- Heights. Those contracts should “pave the about 6,000 people, while Steris Cooper Industries two years ago. gy share they own. Buying Synergy will give Steris way for future development of the employs 8,000. Politicians have railed against But Schlang says it’s not a done immediate access to lots of new U.S. outsourcing market,” according Mishan estimates that Steris these so-called inversions. For in- deal. Given the negative attitude to- markets that might have otherwise to a document on Steris’ website. would save another $30 million on stance, Michael Wager, a Democrat ward inversions, he thinks the feder- taken years to penetrate, he said. There’s a ton of room for that taxes each year by incorporating in running for the Congressional seat al government still could take more Say that a Synergy salesman has a market to grow: Here, hospitals the United Kingdom. Today, the that includes Steris’ Mentor head- steps to prevent inversions before the good relationship with a hospital in tend to sterilize their own equip- company usually sets aside rough- quarters, has said that he’s giving to deal closes. The companies are work- Paris. Now that salesman can sell ment, whereas their European ly 35% of its pre-tax earnings to charity the $1,000 he received from ing on a March 31 deadline. them Steris products, too, Schlang peers often hire companies like cover what it expects to pay in tax- the company’s political action “Whether that (the rules) will be said. Synergy to do it for them. Mishan es around the world. Steris esti- committee. changed again between now and “Steris can ride its coattails,” he thinks that Wall Street is under- mates that the figure will drop to Another local Democrat, U.S. the anticipated closing, time will said. valuing that opportunity. 25% for the combined company. A Sen. Sherrod Brown of Cleveland, tell,” he said.

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OCTOBER 20 - 26, 2014 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 35 REPORTERS’ NOTEBOOK THE WEEK BEHIND THE NEWS WITH CRAIN’S WRITERS Alcoa forges ahead with funded real estate projects costing less than in New Orleans. OCTOBER 13 - 19 $15 million. Chesler, whose outfit got its start saving troop-safety breakthrough The fund is dubbed “The MainStreet old MidTown Cleveland mansions by con- New York-based Alcoa Inc. has made a America Fund.” Chesler said it’s set up to be verting them to offices, added, “As a devel- The big story: Ebola virus concerns landed in breakthrough that could be big in military developer-friendly and low-cost, because oper of close to 30 historic projects. I real- Northeast Ohio after it was disclosed that a Dal- troop safety, and its Cleveland plant played most financial and investment types who ized that we could drastically increase our las nurse, Amber Joy Vinson, who subsequently a crucial role. seek benefits of historic tax credits know tax capacity to restore historic buildings by in- tested positive for the virus, had flown Oct. 13 Last Monday, Oct. 13, the company an- law but not the development process. vesting as a partner.” from Cleveland Hopkins International Airport nounced that it had made the “world’s Moreover, he said, his experience doing — Stan Bullard aboard a Frontier Airlines flight. Vinson, 29, is a largest single-piece forged aluminum hull projects in small towns such as Chillicothe Kent State University graduate who visited for combat vehicles.” The hull was made as and Warren has shown him that small pro- Since that last big Northeast Ohio as part of wedding planning. part of an initiative launched in 2013 by Al- jects have the hardest time finding investors development went well … Thirteen nurses from Northeast Ohio were coa and the U.S. Army. but yield the most impact for communities. aboard the flight to attend a nursing convention The two demonstrator forgings were Ironically, Chesler Group said it already As Bill Wills, morning in Texas; they were subsequently put on paid made using the 50,000-ton forging press at has the hard part of doing a fund covered: host on WTAM 1100, leave by their employers. Similar actions were Alcoa’s plant in Cleveland. The product getting the money. served as emcee at the taken at Kent State and FirstEnergy Corp., while took about 12 months to make, instead of The fund has a partnership with a pub- Oct. 17 luncheon that Solon schools temporarily closed two buildings the 18 months originally scheduled, the licly traded company that neither Chesler Downtown Cleveland as precautions because employees were on the company said in an email, citing local ex- nor Daniel Budish, managing director of the Alliance puts on to issue same flight as Vinson. pertise and decades of forging experience. fund, would identify by name, headquarters its annual Ruth Ratner Now, the program is in its testing phase. or industry. They said that company has Miller Award and recog- According to the release, the single-piece agreed to invest about $10 million in such nize recent projects, he Geis British inversion: Steris Corp. will technical- structure could provide up to two times the investments over the next five years to a to- put real estate develop- ly become a British company after it acquires protection against blasts from explosives, tal of $50 million. er Fred Geis on the spot in front of 500 peo- Synergy Health PLC in a $1.9 billion deal — the mainly by getting rid of welded seams. The The fund may invest in projects Chesler ple. biggest purchase Steris has ever made. However, hulls also can be made lighter and quicker, plans to continue to undertake, Chesler After reading off one of two awards the medical equipment maker’s Mentor office making them less costly to make. said. However, he emphasized the objective Streetsboro-based Geis Cos. received for its will continue to serve as the company’s opera- — Rachel Abbey McCafferty is to help other real estate developers pony Cuyahoga County headquarters building tional headquarters after Steris and Synergy be- up equity to make projects go. and The 9 mixed-use project in the former come one company, and its management team “We’re not soliciting funds. We’re not Ameritrust Co. skyscraper, Wills said Geis is will remain in Mentor. But the company being Chesler and partner brokers,” Chesler said. “We seek invest- expected to do more deals downtown, end- formed to house the combined business, which have a sense of history ments, in projects, the developer who is teed ing with, “Correct?” is being called New Steris, will be based in the Historic rehabilitation-oriented develop- up but is missing that last 10% or 20% of eq- At a front-row table, Geis slowly nodded United Kingdom, a move intended to lower er Michael Chesler and his Novelty-based uity.” in the affirmative. Steris’ corporate tax rate. See related story, Chesler Group are branching into a new Budish said the projects may be in Asked after the luncheon what’s next, page 5. business associated with their roots: operat- Northeast Ohio, but the fund will be run na- Geis said, “Sure. We want to cash in on our ing a real estate investment fund to con- tionally. investment.” Alloy ally: Beachwood-based Aleris Interna- tribute equity to federal historic tax credit- They plan soon to inspect a potential deal — Stan Bullard tional Inc. will sell its North American and Euro- pean Recycling and Specification Alloys businesses to an affiliate of Signature Group Holdings Inc. for more than half a billion dollars. The decision comes after a strategic review an- WHAT’S NEW BEST OF THE BLOGS nounced in April and will allow Aleris to further invest in areas of growth. Signature will pay a to- Excerpts from recent blog entries the ninth-lowest vacancy rate, at 2.7%, tal of $525 million for the businesses, the vast on CrainsCleveland.com. tied with the rate in New York City. With majority of it in cash. The planned sale includes a scant 2.1% vacancy rate, New Haven, 18 North American production facilities and six Conn., had the tightest rental market in European locations providing metal recycling On top of the world the country during the third quarter. services and specification alloy products. Cleveland is home to two of the best- Overall, the story noted, only 13 mar- performing CEOs in the world. kets have vacancy lower than 3%. There Charge it: Cliffs Natural Resources Inc. ex- So said Harvard Business Review, were 16 markets below that threshold in pects to record a third-quarter charge of about $6 which ranked the top 100 corporate chief the second quarter. billion to write down the value of its seaborne executives. In its report, Reis said rents “are pro- jected to continue to grow in all of our iron ore and coal assets. The non-cash account- Chris Connor of Sherwin-Williams Co. primary markets, indicating that it will ing charge “will not impact the company’s cash came in at No. 29 in the rankings, while largely remain a landlord’s market.” flows from operations or any future operations,” COMPANY: Animal Oralectrics, Eaton Corp.’s Alexander Cutler was No. 34. The CEO has to have the company the Cleveland-based mining company said. The Cleveland functioning at a high level to make it onto charge “is substantially driven by the company’s Look over here this list. revised outlook for long-term pricing trends and PRODUCT: Zumby The top consideration was the increase Cleveland Browns the particularly adverse market conditions for in total shareholder return and market quarterback Brian seaborne iron ore and metallurgical coal in con- Animal Oralectrics, a biotech startup, says it has invented a medical device that fights oral capitalization. HBR also focused on long- Hoyer is a hit on the trast to its more stable U.S. iron ore business,” bacteria linked to bad breath and gum disease in term — or at least longish-term — results. field this season, so Cliffs said. It will report third-quarter results on dogs — a health problem that it claims affects The rankings consider the performance TV cameras are fol- Oct. 27. 80% of dogs by the age of three. of active CEOs over their entire stints, lowing him on the The device, called Zumby, “is disguised as a and they included only those who have sidelines, too. Program’s going wheel: Just five weeks af- dog toy and uses a very small, safe and unde- been in their jobs for at least two years. The Wall Street ter its rollout, a bike-sharing program in Cleve- tectable amount of electrical stimulation, (The median term for all the CEOs stud- Journal watched two Hoyer land is expanding to three more city neighbor- known as micro-current technology, to elimi- ied was seven years.) full games from the hoods. Zagster, the Cambridge, Mass.-based nate harmful oral bacteria,” according to a news HBR said the top 50, on average, have 2014 season for all 32 teams and tallied company that provides the bike-sharing service, release from Animal Oralectrics. delivered total shareholder returns of the number of times the broadcast cut to announced that “due to high demand for its ex- The company says that in lab testing at Case 1,350%, adjusted for exchange-rate the head coach and QB, regardless of du- isting service as well as funding from new spon- Western Reserve University, “micro-current movements, during their time on the job. ration. technology eliminated 70-99% of harmful oral sors,” it is expanding bike-sharing to downtown, That translates to an annual return of Hoyer ranked No. 8 among quarter- bacteria.” Tremont and University Circle. The service 26.2%. Adjusting for industry effects, av- backs, with an average of 17 sideline Micro-current technology “has … been used launched Sept. 10 in Ohio City. Zagster said the erage total shareholder returns for the shots per game, just behind Aaron for generations in humans to accelerate bone expansion “represents a doubling of station Rodgers of Green Bay but ahead of big- growth, rehab muscles after injury and treat top 50 are 1,161%, and for country effects, count and brings the total number of bikes to 50” name QBs including Eli Manning of the Temporomandibular Joint Dysfunction,” ac- 1,087%. — an increase of nearly 50%. No. 1 on the list was Amazon founder New York Giants and Russell Wilson of cording to Animal Oralectrics. (With Zumby, Seattle. (The data look only at starting though, the electrical stimulation is much lower Jeff Bezos. Honorees represent 22 nation- QBs, so there are no numbers for Johnny King of Kia: LeBron James signed on with Kia and is not detectable.) alities. Manziel.) No. 1 among QBs, to no one’s Motors America as its first luxury ambassador. As Stimulation is activated when Zumby comes surprise, was Peyton Manning, at 31 side- part of the multiyear partnership with the Kore- in contact with the dog’s saliva, the company Keeping things tight line shots per game. an automaker, James will make exclusive appear- says. To be effective, the dog needs to play with Cleveland is one of the strongest rental Among coaches, Mike Pettine was No. ances, and Kia will feature him in TV advertise- the device two to three times a week for 10 to 20 housing markets in the country, accord- 20 with 24.5 shots per game. ments for the Kia K900. James’ first on-air spot minutes per session. ing to a story from MultiFamilyExecu- Being maniacal counts when it comes will be part of the “Fit For A King” campaign, Animal Oralectrics has developed a prototype tive.com, based on third-quarter data to coaches; San Francisco’s Jim Har- which will premiere later this month as the bas- and expects to be on the market in spring 2015. from New York real estate research firm baugh was shown a total of 91 times in ketball season gets underway. The company now is taking preorders as part of an Indiegogo crowdfunding campaign at Reis. two games, giving him a 45.5 average that go.myzumby.com. Among large markets, Cleveland had was tops in the league. 20141020-NEW--36-NAT-CCI-CL_-- 10/16/2014 4:24 PM Page 1

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