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PUBLISHER/EDITORIAL DIRECTOR: Brian D.Tucker ([email protected]) EDITOR: Mark Dodosh ([email protected]) MANAGING EDITOR: Scott Suttell ([email protected]) OPINION Sorry GM o, we don’t mean “Sorry, GM,” although we suppose General Motors Corp. is in need of condolences after losing the title of “world’s largest automaker” last week to NToyota Motor Co. We mean GM is a sorry company, and not just because Toyota sold more vehicles worldwide during this year’s first quarter than its Detroit rival, which had held the distinction of the auto industry’s big dog for 76 years. According to an e-mail message obtained by The COMMENTARY Associated Press, GM chairman and CEO Rick Wagoner vowed to company officials in the face of last week’s news that the automaker would “fight hard for every sale” going forward, “all the while An award with an honorable name staying focused on our long-term goals as a global, growing company.” But for way too long, GM has t hardly seems possible that it’s been engineer many of the projects that lifted nomic Issues at the Weatherhead School of tried to preserve its own future by jeopardizing the five years since Northeast Ohio lost this city out of its doldrums in the 1980s Management. There he continued to futures of its many suppliers with its outlandish one of its most brilliant points of light, and ’90s, namely the new stadiums and create programs and projects that helped demands year after year that they either freeze or the analyst-turned-civic leader who our two lakefront museums, all of which advance our region. Ishied from the spotlight while working injected new life into downtown. Richard, And while the life of this devoted reduce their prices if they want to do business with tirelessly to make things better for us all. who was the executive director of Cleve- father and husband was cut short by a the auto giant. Richard Shatten was at McKinsey & Co. land Tomorrow beginning in 1984, was brain tumor, the legacy of his work lives It isn’t that GM shouldn’t be concerned with sales, when he was assigned to a study of how to always in the wings, helping the deals to on, and will be remembered May 16, at both in this country and abroad. However, racking make Cleveland a better-functioning city. happen. the first-ever awards program aimed at up more sales doesn’t do much good if the company His work led to the now-famous All the while, his was the recognizing the value that our medium- is losing money on many of those sales because of a public-private partnership that BRIAN intellectual force behind the size companies make to Northeast Ohio. failure to bring its labor costs under control. engaged many of the area’s busi- TUCKER endeavors and his meticulous That night, at the University of Akron, We’ve chided GM on this point before, and we nesses and their executives in an follow-up was a key to their the Leading EDGE (Economic Develop- likely will do so again once contract talks get into gear effort to turn around a declining success. I recall fondly our ment through Growth and Entrepre- city and region. regular breakfast and lunch neurship) awards will be bestowed on this summer with the United Auto Workers union. His work helped create Cleve- meetings because of the rapid- some 200 companies for their contribu- The current contract expires in September, and land Tomorrow, an organization fire workings of his mind and tions to our regional economy. UAW president Ron Gettelfinger vowed during an of more than 40 chief executives the dry wit that was sprinkled in That night, I’ll be proud to take part in address to union officials in late March that he of the area’s largest companies. every conversation. Richard the presentation of the Shatten Civic wouldn’t knuckle under easily to company demands Richard was smart enough to was a brilliant thinker who also Distinction Award. There will be many for reductions in health care and pension benefits. design the organization so that just happened to be funny as words about Richard’s contributions, Indeed, he even held out the threat of a strike. the CEO, not some other company exec, hell. I never left those meetings without but somewhere I imagine he’ll be smil- “Our union does not want to strike, but when had to be at the table for the meetings. He three or four ideas about stories and oth- ing that wry smile, ignoring the plaudits employers act as if collective bargaining is a one- knew that if the CEO was there and said his er features our newspaper should tackle. about him and pleased just to know that or her company would do something, In 1993, Richard left Cleveland Tomor- the efforts to rebuild and re-engineer our way street and not a two-way street, then we will do there was little chance it wouldn’t happen. row to head Case Western Reserve Univer- economy goes on in the spirit he did so what we have to do — make no mistake about it,” Cleveland Tomorrow did indeed help sity’s Center for the Study of Regional Eco- much to create. ■ Mr. Gettelfinger said. To which GM may need to say, “Go ahead. Make my day.” THE BIG ISSUE Goodyear Tire & Rubber Co. suffered through a three-month strike at the end of last year that How far will the Cavaliers go in the playoffs? decimated its fourth-quarter results. However, the contract that emerged from the wrenching process has made its labor costs more manageable and should yield appreciable benefits to the tiremaker’s bottom line for years to come. GM needs to shake up the status quo if it’s to regain solid financial footing. If No. 1 automaker status comes with that effort, so much the better. Go Cavs WILLIE SHAW JR. LESLIE SMITH LUIS PEREZ NAPOLEON BUNTON e hope the promising start of last week’s Cleveland Richmond Heights Cleveland Cleveland playoffs will translate into good things All the way. I think they can I think they probably will go all All the way. They’ll get I hope they go all the way. If ahead for the Cleveland Cavaliers. take it home this year. the way. I hope so, anyway. through the first and they make their foul shots, Owner Dan Gilbert has lived up to his They’re playing good ball second rounds and they have a chance. promiseW to put the money and people behind his right now. probably play the Pistons effort to make the city’s NBA franchise a champi- again. onship-caliber team. It isn’t an easy mountain to climb, but we wish the Cavs the best. ➤➤ Let us know what you think. Vote in our online poll at www.CrainsCleveland.com CCLB 04-30-07 A 11 CCLB 4/26/2007 2:41 PM Page 1
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build the agency’s account services group. Mr. Cutcher, now a managing partner along with Brokaw Polar opposites veteran Greg Thomas, said any agency must have accounts it Oddball reputation has ad industry talking about believes in, that let it do great work and that generate revenue. Brokaw, helps firm land high-profile accounts “We had some accounts that really weren’t serving our needs, and I mean By JOHN BOOTH kind of wakes you up,” Mr. Szeklyi that selfishly,” he said. “We knew we [email protected] said. “That could have all been had to transition the client roster.” flash, but in their case, it was not.” Last year, at a three-day ad industry When an ad agency sends out Mr. Szekelyi said Horton already gathering in New York that Mr. self-promotional material, you knows that hunting is a polarizing Cutcher described as “speed dating” expect chestnuts like “things are subject, but Brokaw encouraged the between agencies and prospects, different here” and “we’re good at company to embrace it in a print Brokaw met with 35 potential clients. innovating media.” But the use of campaign. One ad reads, “Some About half those meetings were “suckiness,” multiple poop refer- fathers apply sunscreen to their requested at the last minute by ences and “let’s go back to my place kids. Others, deer urine.” Another: people attracted by Brokaw’s offbeat and tongue wrestle?” “Sometimes the best way to clear blurb in the forum directory. (“Hope- That’s what Cleveland ad agency your head is to bring one back to MARC GOLUB fully, you’ll consider giving us an Brokaw sent out to 250 prospective mount on the wall.” Brokaw Advertising founder and chief executive Bill Brokaw said the agency has assignment,” the profile read in part. clients last fall. Since the campaign began, its “shown a substantial increase in profits” during the past three years. “No matter how ugly. We’ll take it.”) “It’s definitely a litmus test,” reception has spurred Horton to The agency’s quest for more agency founder and chief executive put the slogans, five in all, on the creation of the “Ray Jay Johnson” After all, there was a time not so long national and regional business gath- Bill Brokaw said. “If that doesn’t T-shirts for customers, employees commercials for Natural Light, was ago when its creative staff literally ered steam thereafter. scare them away, it’s a good barom- and sales reps. fired from an agency position. went door-to-door through the But doesn’t handling bigger clients eter for whether this (relationship) “Those sayings (in the ads) elicit “They told me the reason was that Warehouse District offering their mean getting, you know, stodgy? is going to work or not.” such strong feelings, pro and con,” I didn’t relate well with account services just to have work to do. “Any self-respecting creative Mr. Brokaw’s agency turned 15 Mr. Szekelyi said. “That’s OK that we services people — and I did have a “How to Brokaw” was born in the agency is always worried about that on April 1, and while it long has had get strong reactions on both sides.” chip on my shoulder,” he admitted. agency’s post-Addys era, said creative as they grow,” Mr. Thomas said. a reputation as an oddball creative When, a few years later, he began director Pat Pujolas. Chipping away “Part of what we’ve done to make boutique for small accounts, the working solo out of his own house, “We asked, do we want to stay a sure our work doesn’t suffer is that last few years have seen a new Although Brokaw does not dis- Mr. Brokaw recalled, “It was so creative boutique, or do we want to be we spend a great deal of time looking emphasis on account services and close its annual revenues or billings, humbling, because I had to be an a regional competitor?” he said. “‘How at our own (brand) positioning.” the addition to its stable of accounts Mr. Brokaw notes that the agency account services person.” to Brokaw’ came out of that crucial That’s why Mr. Thomas claims to such as Bruegger’s Bagels, White has won 24 new accounts and Brokaw’s creative capability has transition. It led to some very positive applaud the prospective client who Castle and crossbow company Hor- “shown a substantial increase in rarely been in question: The agency meetings afterward because people says, “You guys are fun, you do great ton Manufacturing in Tallmadge. profits” during the past three years. won seven consecutive Best in Show kind of knew what to expect.” work, and you’re a riot, but you’re “How to Brokaw,” along with other awards in the Cleveland Advertising Brokaw also is hiring again and has ‘Aspire to polarize people’ not a good culture fit for us.” collateral from the ad shop, caught 35 employees, up from the post-Sept. Association’s annual Addy contest “Our work should aspire to polar- the attention of Horton CEO Rick 11, 2001, cutbacks that dropped its before ceasing entries in late 2004. Three years ago, Brokaw hired ize people,” he said. “There’s noth- Szekelyi during the company’s search roster to 25 employees from 60. But its image remained one of a Ralph Cutcher, a longtime client- ing wrong with someone looking at for an agency. In the mid-1980s, Mr. Brokaw, niche shop more ideally suited for side guy with stints at Sherwin- an ad and going, ‘I don’t like this “They showed something that whose 30-plus-year career includes nonprofit work and one-shot deals. Williams Co. and Rubbermaid, to brand, I’d never buy it.’” ■
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of money for them.” Mr. Stuebi said the oil companies the operation have a good handle CHOICE BITS Even so, Ms. McClenney drew the “are increasingly coming to the on what they’re doing, based on the line at courses like Tri-C’s “Game view that reduced oil demand is latest team valuation rankings from Excerpts from recent Editor’s Choice blog entries on Show Fun.” unavoidable in the future — not just Forbes magazine. CrainsCleveland.com. “There are places where you have for environmental reasons, but Forbes’ often-controversial calcu- to exercise judgment. We shouldn’t simply because supplies will be lations value the Indians at $364 When there’s little to “If the community wants adult offer classes in ‘How to Bet on Horse challenging to obtain.” million, or 18th among 30 Major education, most community colleges Races,’ but I know a community The contrast between the three of League Baseball teams. If that study, it takes little time say, ‘We’ll do that.’ If the community college that did,” she said. them and the major U.S. automakers, number is right, the Dolan family, ■ Cuyahoga Community College wants cooking courses, they say, GM and Ford, is stark. which bought the team in 2000 for came in for a little ‘We’ll do that,’” Michael W. Kirst, an U.S. oil companies head “The auto companies are stuck $323 million and thus has seen the criticism in an emeritus professor of education at with tenuous competitive positions team value rise less than 13% in April 22 New York Stanford and director of the Bridge into a brave new world due in large part to their strategies seven years, has done only OK on its Times story about Project, a nonprofit organization ■ Cleveland Foundation energy for focusing on high profit gas investment. schools offering seeking to get more low-income and expert Richard Stuebi, writing April guzzlers (e.g., SUVs and perfor- But a closer look at the numbers classes of dubious minority students to college, told the 23 at the influential Cleantech Blog, mance cars), and as a result they shows some serious business acu- value under the newspaper. sees signs that oil giants Cono- are fighting Federal pressures to men. guise of “lifelong “Before long they get to the point coPhillips, Exxon and Chevron are tighten auto fuel efficiency stan- For instance, Forbes says while the learning.” where they now do almost anything “beginning to plan what they will dards,” Mr. Stuebi wrote. “In gen- Indians rank 17th in revenue, at $158 The piece began by noting that and everything a community wants, look like as companies in a post-oil eral, they don’t want to hear about million for 2006, the team’s operating Joliet Junior College in Illinois is but none of it very well,” he said. world.” climate change.” income of $24.9 million was fourth- offering classes in “Hip-Hop But what Mr. Kirst called “mission Mr. Stuebi, the BP Fellow for best in all of baseball, trailing only the Dancing” and “Advanced Salsa.” At creep,” Kay McClenney, of the Com- Energy and Environmental Advance- Florida Marlins, the Los Angeles Tri-C, The Times noted, “students munity College Survey of Student ment at the foundation and the Dodgers and the Pittsburgh Pirates. play simulated versions of classic Engagement, called “comprehensive founder and president of NextWave (Guess there’s a pattern here — you game shows in ‘Game Show Fun’ or mission.” Energy Inc., said ConocoPhillips, in don’t have to be all that good to make learn to ‘connect’ in ‘Conversations Continuing ed can be a profit particular, “seems to be striving to take money in baseball.) That Matter.’ One flight down from center that supports items short- the lead among U.S. oil companies.” Baseball team officials consis- the Salsa dance class in Joliet, “six changed in public financing, like the In just the last few weeks, he tently criticize the Forbes numbers women attempt to master the art of library or gym. It’s good community noted, the company has unveiled a — though, conveniently, they decorating cookies; a few doors politics, too, she told The Times. partnership with Tyson Foods to never provide figures they would away a chef teaches other adult “Therefore, you will find commu- produce biodiesel from animal fats consider more accurate. students how to make hors d’oeu- nity colleges operating wineries and and has joined the U.S. Climate In an Associated Press story, vres,” according to The Times. golf courses and doing a whole Action Partnership, “thereby becom- Marlins president David Samson RUGGERO FATICA Critics said such courses divert lot of contractual training for ing the first U.S. oil company to Larry Dolan and the Indians’ owner- said, “As usual, the franchise valua- institutional energy and attention employers,” she said. declare its support for federal limita- ship is thought of highly in Forbes tions and operating income away from the college’s essential “They end up offering wine-tast- tions on greenhouse gas emissions magazine’s latest annual rankings. numbers are pure fantasy and missions. ing classes and charging a boatload to combat climate change.” based on no correct information. To comment on such irresponsible In front office, Indians journalism would only give it more credit than it deserves.” have the look of a winner Mr. Samson’s team, which topped ■ The Cleveland Indians some- the Forbes operating income list at times look a little lost on the field, $43.3 million, was given the lowest 4HE INVESTMENT OF A LIFETIME but the folks on the business side of value, $244 million.
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