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VOL. 37, NO. 20
MAY 16 - 22, 2016
Crain’s 2016
Women of Note
We profile 15 of Greater Cleveland’s most remarkable women | Pages 13-26 TECHNOLOGY: RNC prep Cell systems will be strong as ever. P. 4
REAL ESTATE: Overload? Apartments are rising rapidly. P. 6
Business of Life
CLEVELAND BUSINESS
Holy smokes!
Cigar biz stays hot. P. 27
TECHNOLOGY
MANUFACTURING: On guard Cyber security efforts increase. P. 8
HEALTH CARE
Xellia lays out plan to revive Ben Venue complex Drug maker aims to use newer buildings once it satisfies FDA’s safety standards By CHUCK SODER csoder@crain.com @ChuckSoder
For now, Xellia Pharmaceuticals is producing one thing at the former Ben Venue Laboratories complex: Paper. Lots and lots of paper. Of course, the Denmark-based company eventually plans to use the enormous complex for its originally intended purpose: Drug manufacturing. First, however, Xellia must prove that it can meet the U.S Food and Drug Administration’s safety standards — standards that Ben Venue failed to meet. That means Xellia will have to document nearly every step it takes between now and the end of 2017, when it plans to start making injectable antibiotics at the Bedford site, which closed at the end of 2013. For instance, as Xellia designs its manufacturing processes, the company will have to write down exactly how each of those processes is supposed to be performed — and it will have to record the steps it will take to ensure that those processes are followed.
But Niels Lynge Agerbæk says that the Xellia Cleveland team has what it takes to navigate the process and bring a portion of the complex back to life. Roughly 80 employees and contractors are working on the so-called Xellia Life project from two rooms on the second floor of Building 24 — one of the buildings that they plan to revive. They are doing meticulous work, according to Agerbæk, who moved to the Chagrin Falls area from Denmark to become the site’s general manager a few months ago. While walking past 10 whiteboards lined up on a wall, he pointed out all kinds of charts and schedules detailing what has been done and what still needs to be done. In short, more people need to be hired, more tests need to be run and more documents need to be produced — thousands more. “We are not going to take any shortcuts,” he said. Right now, Xellia can’t conduct any commercial activity at the site. The FDA put the complex under a consent decree in January 2013, when it was owned by Ben Venue.
Entire contents © 2016 by Crain Communications Inc.
SEE XELLIA, PAGE 9
UH: 150 years and counting The operating room at the old Lakeside Hospital, circa 1908. (Contributed photos)
Growth, donations keep University Hospitals healthier than ever BY LYDIA COUTRÉ lcoutre@crain.com @LydiaCoutre
For much of its 150-year history, University Hospitals remained a quiet health system nestled on Cleveland’s East Side. But over the last decade and the last two years in particular, the health system has grown into a dominant force in Northeast Ohio with big ambitions. And as UH celebrates its 150th anniversary, the system isn’t just reflecting on its last century and a half of service, but rather looking toward the future. With both Broadview Heights and North Ridgeville health centers and freestanding emergency departments set to come online in roughly the next year — and the construction of a new women’s and children’s facility in urban Cleveland — UH continues to evolve. Much like hospitals across the
Young patients on the porch of Rainbow cottage, 1891. country, the UH system looks vastly different than a decade ago. And much of that is due to the vision of UH president and CEO Tom Zenty, who arrived in 2003 from CedarsSinai Health System in Los Angeles and envisioned building a truly regional health care system.
“What’s the same is our commitment to the highest quality patient care, our commitment to the communities that we serve,” Zenty said in a recent interview with Crain’s. “We were built on a commitment to support the community. … (That) remains an important part of who we are today.” UH acquired five hospitals in 2014 and 2015, which broadened its reach all the way south to Ashland, helping strengthen UH’s status as a regional system. The five hospital acquisitions helped UH significantly grow its market share from 20% in 2010 to 32% by the end of 2015. Over that same period, the system’s total operating revenue ballooned from about $2 billion to $3.29 billion, or almost half the size of the rivaling Cleveland Clinic. However, Zenty is quick to note, “We are not expanding for the sake of growth.” Despite the major investments, the system has maintained a healthy SEE UH 150, PAGE 30
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z MAY 16 - 22, 2016 z CRAIN’S CLEVELAND BUSINESS
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When Donald Trump approaches the podium to give his acceptance speech at the Republican National Convention in July, thousands of delegates, alternate delegates and guests will be on their cell phones sending out selfies with Trump in the background or tweeting their reactions to friends around the world. As that moment arrives, executives and technicians from the major telecommunications companies will have their fingers crossed that all of those messages can make it out quickly. The upcoming Republican National Convention — and the Democratic convention in Philadelphia a week after it — are right up there, maybe even above Super Bowls, as tests of the capacity of the networks of major telecommunications companies like AT&T, Sprint and T-Mobile and other major telecom companies. According to executives of those three companies, they are as ready as they can be. Adam Grzybicki, president of AT&T Ohio, suggested that his company was benchmarking its demand forecast based on an analysis of its experience in Tampa at the 2012 Republican convention. “In 2012, when we were in Tampa, our team wanted to use the largest domestic event up until that point in terms of network traffic (for comparison), so they made projections off the previous year’s Super Bowl, which
was in New Orleans” to gauge the peak capacity need, Grzybicki said. “By the end of the Tampa 2012 experience, the capacity necessary to perform well was 10 times the capacity of the previous year’s Super Bowl.” Grzybicki also pointed out how demand has grown nationwide, not just due to the explosion of smartphones being used to send photos and videos, but because other devices are connected and transmitting data. “In the last six years, usage of our network is up 100,000%,” he said. Given the growing demand, the telecommunications companies that will be in Cleveland transmitting the messages of the 50,000 visitors will have spent months beefing up their systems to handle that load, anticipating that convention week will set records in cell phone traffic. And maybe as important for the city of Cleveland, a large part of the fiber-optic cable and hardware brought in to handle the convention’s telecommunications load will remain, meaning the city will have a telecommunications infrastructure that is more up-to-date and has more capacity than it would have without the convention.
‘Cell on Wheels’ Carrying the heaviest load is AT&T Inc. The Dallas company is the official provider of communications and video technology to the convention and will have responsibility for outfitting Quicken Loans Arena, the convention site, and the Huntington Convention Center of Cleveland, the
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media headquarters, with their telecommunications networks. As part of the upgrading of its data and voice handling capacity, AT&T is adding nearly 70,000 feet of underground fiber-optic cable, which will stay after the convention, giving the city a voice and data communications capacity higher than it would have had without the convention for several years. “To have this kind of network build, these types of resources, is phenomenal,” Grzybicki said. In addition to the prime convention sites, AT&T is tripling its prime, 4G, cell phone capacity and will deploy temporary, street-level equipment placed strategically to handle the capacity. “Say you expect there’s going to be 10,000 people within a certain radius, and all of them will have a cell phone and they’re all going to be on them, what is it that you need to address the demand?” said Christy Moore, AT&T area manager for network process and quality who is overseeing work at the convention sites and around downtown. Moore said that in addition to upgrading the capacity at the convention sites, AT&T is adding or upgrading a total of 165 cell sites in the downtown area. In addition, it will be using 12 street level cell receivers — called Cell on Wheels, or COWs, and outdoor distributed antenna systems, or DASs — to handle the increased cell phone load around downtown and in University Circle the week of the convention. Moore said AT&T will have more than 200 workers drawn from Ohio and other markets in Cleveland convention week, keeping cell and data traffic flowing. Grzybicki couldn’t put a dollar figure on the investment the company is making in beefing up its network for the convention, but he said the company has spent about $400 million in upgrading its voice and data capacity in the region in the last few years. “We’re going to have a network here in Cleveland that is unlike anywhere else in the state of Ohio,” he said, adding that the company will be promoting its upgraded fiber network to businesses in the region. Two other major cell phone providers also are beefing up their systems. (Another giant, Verizon, didn’t respond to requests for comment.) SEE AT&T, PAGE 8
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Reprints: 212-210-0750 Krista Bora kbora@crain.com, Customer service and subscriptions 877-824-9373 Volume 37, Number 20 Crain’s s Cleveland Bus sines ss (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 441131230. Copyright © 2016 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s s Cleveland Bus sines ss, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 212-2 210-0 0750 Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to customerservice@crainscleveland.com, or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777.
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z MAY 16 - 22, 2016 z CRAIN’S CLEVELAND BUSINESS
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Marcie Gilmore, the leasing consultant at Schofield Residences in downtown Cleveland, says April “was an insane month.” The 52-suite project, which shares the building at 2000 E. Ninth St. with a Kimpton Hotel, has just four apartments left to rent. That is far ahead of the plan at its March opening, which called for lease-up by June. “We are very pleased with the average rental rate as well, as we are making projections well over the $2 per square foot mark,” Gilmore said. But can other projects keep up that pace, and at that price point? That’s the issue in downtown Cleveland and University Circle as a bevy of new apartment buildings and rehabs of former offices to dwellings have come online, and more are on the way. Consider the last six weeks of insanity: Developers have rolled out more than 1,500 suites, including more than 600 at Nautica in the Flats and as many as 300 at Terminal Tower, in a region where 200 units was the norm until the apartment boom began and pushed the figure to 750 suites a year since 2014, according to Marcus & Millichap statistics. Moreover, in projects that are further along, at least that many suites will hit the market by 2018. Just one, Flats at East Bank, has been built from the ground up in the last 10 years. The questions politicos, civic leaders, lenders, real estate developers and others ask are, “When will the market soften?” and “Which project will get stuck with more suites than it can sell?” Rob Vogt, managing member of Columbus-based Vogt Strategic Insights, and his staff of 40 struggle with such questions nationally as consultants in real estate research and appraisals. “I don’t think anyone knows where the ceiling of the market (in Cleveland and nationally) is,” Vogt said. “It’s amazing how this millen-
nial demographic is turning out to live in an urban environment. When will they marry, have kids and move back to the suburbs? It’s been a debate for 10 years.” Finding the answers will take time as that generation makes its way. “Millennials are the largest demographic in the U.S.,” Vogt said. “They saw what happened to their parents in the (owned) housing market. They have tremendous student debt. Their fundamental thinking is that they want to live close to friends, work and entertainment.”
Look ahead When Richey Piiparinen, senior research associate in the Center for Population Dynamics at Cleveland State University’s Maxine Goodman Levin College of Urban Affairs, discusses the role of generational change in real estate in town, he mourns the caution lenders and even property developers must exercise. “Finance and real estate follows demographics by five years,” Piiparinen said. “I wish they could be more forward-looking when it comes to when we believe (Cleveland) will be overbuilt.” The profusion of downtown housing projects the past decade has also helped hike rents to $1.61 a square foot late last year from $1.10 in late 2010 — an increase of 47% while rents in Cleveland and Cuyahoga County remained flat. Some projects such as the Schofield, The 9 and the Flats at East Bank have surpassed $2 a square foot, the level developers believe they need to make a go of construction in addition to the continued conversion of old office space to swanky apartments. Piiparinen’s analysis also destroys the idea that downtown Cleveland and University Circle, where apartment development is booming, serve different markets. CSU estimates 21% of downtown residents work in health care. However, in analyzing the composition of jobs downtown, CSU says health care is too small to merit its own category, which means large numbers of health
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It adds up Construction of apartments and mixed-use buildings is ramping up with projects that have been announced in the past two years. ■ One University Circle, a 20-story tower with 280 units, will begin construction at 10730 Euclid Ave. the week of May 16. Mitchell Schneider, CEO of Lyndhurst-based First Interstate Properties, said work is a few weeks later than earlier forecast. “It’s a complicated project. Sometimes these things take a little longer than expected,” said Schneider, who is undertaking the tower in a joint venture with home builder Sam Petros. Suites will be ready from April to June 2018. ■ nuCLEus, a mixed-use tower now planned for 48 stories instead of 51, proposed by Stark Enterprises of Cleveland and J-Dek Investments of Solon, will begin by year-end and is forecast for completion by 2018. It includes 500 apartments and six floors of build-to-suit condos. Look for suites to hit the market in 2018. ■ 515 Euclid, construction of apartments atop the parking garage at that address, also by Stark and J-Dek, includes 200 units that are set for a spring 2018 delivery, according to Lisa Schwan, Stark’s spokeswoman. ■ The Edison, a 306-unit apartment project, is going up at West 65th Street and Breakwater Avenue in Cleveland’s Detroit Shoreway Neighborhood. The project led by Garfield Heights-based NRP Group will deliver suites the middle of next year. ■ Centric, a project by a joint venture including Midwest Real Estate Development Partners and the Coral Co., both of Cleveland, and builder Tony Panzica of Mayfield Heightsbased Panzica Cos., may start in August. Steve Rubin, managing member of Midwest, said the seven-floor unit will open in spring 2018. It will add 269 suites. ■ Weston Inc., a Warrensville Heights-based industrial real estate firm moving into the housing space, and Citymark Capital, a Clevelandbased apartment investment firm headed by Daniel Walsh, are close to clearing city approvals for a new zoning overlay district for the block from West Third and West Sixth streets, between Superior and St. Clair avenues, called the Superblock. Walsh said construction of the first 23-story building with 352 suites was delayed from early spring while the plans for the block were fine tuned to make things go smoother with the city when it comes to building another 900 suites on the block. And that list does not include smaller, but still multimillion-dollar, rental projects rising or percolating near downtown and University Circle, nor additional conversions of spectacular old buildings the last 20 years from low-rent office space to apartments that created a downtown Cleveland residential neighborhood. All those figures surpass a key indicator of the market: 1,800 people are on waiting lists for apartments downtown as occupancy hovers at 97% as of March 30, according to Downtown Cleveland Alliance. “That is truly people looking for apartments that do not exist now,” Walsh said. “New apartments tap into that. There are similar developments in other cities around us nationally.”
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CRAIN’S CLEVELAND BUSINESS z MAY 16 - 22, 2016 z PAGE 7
Home Savings is ‘a turnaround story’ BY JEREMY NOBILE jnobile@crain.com @JeremyNobile
The personality of the Home Savings and Loan Co. of Youngstown feels much different than the bank that was devastated by and struggled through the last recession. Behind a growing balance sheet, there are new lenders migrating from other well-known Cleveland banks. There’s also new leadership in president and CEO Gary Small, who took the reins two years ago. Loans are growing at an annual rate of about 15%, a minimum pace Small intends to maintain at least the next couple years as the bank punches above its weight class as it competes with some of Cleveland’s largest banks for deals. The business, overall, is more diversified. The bank’s portfolio is seeing balance between commercial and mortgage lending that didn’t exist a few years ago. The company also broke into the insurance business recently — a strategy many community banks are pursuing to bolster income as low interest rates hang over bankers’ heads — with its acquisition of James & Sons Insurance that predicates the formation of The Home Savings Insurance Group. “Our growth is not dependent on macro market growth,” Small said. “We are small enough that we are growing by taking on some deals from competitors. We go elbow-to-elbow with midsize and larger banks in the marketplace where we see opportunity.” Home Savings, the banking subsidiary of United Community Financial Corp., is looking to the Cleveland market to play a major role in its growth strategy, which could include acquisitions. Business wasn’t always this strong at the $2 billion-asset bank. Back when the recession hit, Home Savings felt a particularly sharp sting from a lending portfolio heavily skewed toward residential real estate. Investors weren’t happy. The bank’s stock, which peaked in 2006 at $12.72, lost 96% of its value in the downturn, plunging to 51 cents in 2009. Today, the stock is trading near $6. While some of the efforts that put the bank back on track happened prior to Small’s arrival — including a recapitalization in 2013 that provided the funds for lending that all but stopped during the bank’s survival years — it’s the new CEO who has helped establish the bank’s current trajectory. One of Small’s first initiatives, which continues today, was building out a lending team across its footprint to start making commercial deals. Those teams, which now include local leadership by senior vice president Thomas Poe, market president of Northeast Ohio commercial banking, started making deals here the company simply couldn’t pursue before. Home Savings is partnering with various groups to make deals larger than $15 million come together, including complex M&A transactions for local manufacturers. Those partners include private equity firms like EdgePoint Capital Advisors of Beachwood. “We would’ve otherwise struggled on some of those deals,” said Poe, a former longtime executive at National City Corp. who joined Home Savings in January, transitioning from a
role with First National Bank of Orrville (which has since merged with Farmers National Bank). “And now we have people knocking on our door to buy a piece of those.” The reputation of bankers like Poe undoubtedly made a difference, Small asserts. “If you went back even a year ago, we probably weren’t enjoying that (commercial) space,” Small said. “We wouldn’t have been doing deals of that sophistication level.” Home Savings a decade ago was an almost wholly mortgage-based outfit. While mortgages are still the “bread and butter” of a community institution like theirs, said Small, he sees their identity as balancing that with a
strong commercial bank. That’s quite an identity shift. “In many ways, it’s a reimagining of the strategy to make them a much broader commercial bank than what historically has been a thrift-heavy balance sheet,” said Scott Siefers, a bank analyst with Sandler O’Neill + Partners. “Gary has delivered on pretty much everything he said they would,” he said. “It’s very much a turnaround story.” Home Savings is in the midst of its three-year plan to continue balance sheet growth by maintaining its real estate lending and pushing an aggressive focus on commercial lending, particularly in the Cleveland market,
where Poe said 90% of commercial and industrial loans were completed in the first quarter. The market is “slogging” along, but not “robust,” Small said. That means creative dealmaking will remain a strategy to continue drawing commercial clients into the bank as Home Savings is challenged not only by its peers, but in competition with significantly larger counterparts. That includes other regions across Ohio and other markets like Pittsburgh and Morgantown, W.Va., where commercial lending teams are also being beefed up. The bank has some branches in Cleveland’s outer rings, but new brick-and-mortar locations won’t be as significant as maintaining that
15% annual growth in the lending portfolio. Ultimately, Small wants the bank to achieve additional size somewhere between $3 billion to $5 billion in assets. A strategy like that will likely require acquiring a fellow bank in this market. “We still have a lot of capacity in terms of ways to fund balance sheet expansion over the next three years — we can control our own destiny with having to find a new source of deposits,” Small said. “But beyond three years, to keep up the growth we’re looking for, that’s when finding another community bank will be a perfect opportunity for us, if we could find a good fit.”
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z MAY 16 - 22, 2016 z CRAIN’S CLEVELAND BUSINESS
Manufacturers beef up cyber security By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com @ramccafferty
One thing that helps modern manufacturers stand out in the marketplace — their intellectual property — also makes them an attractive target for hackers. Take United States Steel Corp., for example. The steelmaker last month filed a formal complaint with the U.S. International Trade Commission, asking the organization to investigate China’s biggest steel producers for unfair trade practices. One that stands out? The allegation that China hacked into U.S. Steel’s systems and stole information on how to make advanced, high-strength steel. In other industries, hackers tend to be after customer information, said Greg Krabacher, senior counsel in law firm Bricker & Eckler LLP’s Columbus office. But in manufacturing, “the target is really your own information,” he said. Industrial espionage is nothing new, but he thinks the frequency and scope of these kinds of attacks is rising. A recent report from IBM found that manufacturing was the secondmost targeted industry in terms of cy-
AT&T
CONTINUED FROM PAGE 4 “To ensure our customers have a reliable wireless experience inside and outside the convention venues, we’re deploying various solutions to increase our network capacity and performance,” said Sprint regional vice president Mark Walker in an
ber attacks in 2015. In 2014, it had been the third-most common target. Albert Green, CEO of Kent Displays Inc., said he found eye-opening a recent talk on cybersecurity hosted by the members of the Manufacturing Council, an advisory group to the U.S. secretary of commerce of which he is part. It’s important for manufacturers to be vigilant and aware of the risks, Green said. Some that he’s keeping an eye on include ransomware, which can allow someone to demand pay to regain access to their data, and cyber espionage, a particular concern for a company making tech-driven products like Kent Display’s Boogie Board e-writers. And since everything is online now, the risk of someone getting into a company’s machinery and shutting it down is also a concern for Green. Much of Kent Displays’ cybersecurity plan is “blocking and tackling,” Green said — making sure that firewalls are updated and deep packet inspections are conducted. There are a few different targets for cyber attacks on manufacturers. The advent of the Internet of Things means that more equipment and appliances are connected to the internet than ever before, so manu-
facturers, developers and engineers give manufacturers an advantage have privacy concerns to consider, when crafting a cybersecurity plan, said Brad Lutgen, partner, security Lutgen said. Since there is no indusand compliance, in the Milwaukee try standard to adhere to, they can office of professional services firm Sitake a risk-based approach that’s kich LLP. And, of course, specific to their company. there’s the valuable intelHe said manufacturers lectual property to proalso should run regular tect. vulnerability scans and Jim Giszczak, a Michipenetration testing, which gan-based member of Portion of cyber tests for whether someone Cleveland law firm Mc- attacks in 2015 due can get into a company’s Donald Hopkins LLC, to company systems. A recent report said the market is seeing insiders, according from Sikich found that an increase in this kind of to an IBM report. only one-third of responactivity, including at dents were performing small and midsize manufacturers these annual penetration tests. that don’t have an extensive budget Social engineering, or phishing, for IT. Industries like retail, health also is a big threat. A lot of these care and finance have spent money types of attacks are now quite tarto protect themselves in this realm, geted and well-researched, Lutgen he said, so hackers have broadened said. their nets. Giszczak said it’s important for Cybersecurity traditionally has companies to consider people when been driven by compliance, so indusmaking cybersecurity plans and to tries like health care and finance that take a holistic approach. are required to keep data secure have “It’s not just an IT issue,” he said. upped their security much sooner That’s something TimkenSteel than manufacturing, Lutgen said. Corp. in Canton is well aware of. The Plus, the major breaches weren’t in company views training people as manufacturing. an important part of its cyber safety “They haven’t seen a lot of themplan. selves in the news,” Lutgen said. “In addition to web filtering, deBut that lack of regulation may vice encryption and perimeter pro-
tection, we routinely provide training for our employees on security threats, such as phishing scams or installing software from unapproved sources,” said Bill Bryan, executive vice president of supply chain and information technology at TimkenSteel, in an emailed statement. “While there’s a great deal of focus in manufacturing on the technical solutions to IT security challenges, it’s just as important to educate your employees about their role in securing our information based assets,” he said. The IBM report found that 60% of all attacks in 2015 were due to company insiders who had acted maliciously or who had accidentally given hackers access to information. Small to midsize companies in all industries are usually aware of cybersecurity risks, but may not be sure how to address them, Bricker & Eckler’s Krabacher said. He said that while larger manufacturers have more intellectual property for hackers to steal, small companies can also be indirect targets, which means it’s important for companies to check for security when doing business with others. “I’m not sure there’s any safe corner,” Krabacher said.
email, talking about the company’s work both in Cleveland and Philadelphia. “Most of these upgrades are permanent and will continue to benefit our customers long after the conventions convene.” Walker said the company is upgrading hundreds of cell sites in Cleveland with the addition of what he called “carrier aggregation technology that doubles speed and capacity” to devices. Sprint also is deploying a new
outdoor wireless system slated to be on-air prior to the convention and, like AT&T, it will bring in COWs, the temporary cell sites. T-Mobile also has been continuously adding capacity to its systems. Scott Goldberg, a senior communications manager, said in an email that T-Mobile’s Wideband LTE service, which increased network speed by 50%, was brought to Cleveland last year as was an extended range
Hilton Cleveland Downtown and Ritz-Carlton hotels. Will all this planning pay off with a smoothly running systems through convention week? All AT&T’s Christy Moore would say was: “It’s like planning an outdoor wedding.” And what was her biggest crisis during the Tampa convention? “Quite honestly, it was feeding my people,” she said.
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XELLIA
“What we judge on is of course not where you’ve been working but who you are.”
CONTINUED FROM PAGE 1
Two years earlier, the FDA and foreign regulators had discovered dozens of quality control problems at the site. For instance, the FDA said Ben Venue had failed both to figure out why metal particles had previously ended up in several batches of drugs and to fix the problem. Several customers had complained about the particles. After spending $350 million to fix the issues, Ben Venue closed the complex at the end of 2013, laying off the last of its 1,100 employees. At the time, the 75-year-old company said it faced “systemic manufacturing challenges” and stood to lose another $700 million over the next five years. Xellia, however, is a different company, and it’s in a different position than Ben Venue was back then.
Foundation for the future For one, it’s only working to revive a portion of the complex — the newer buildings on the north end. Plus, whereas Ben Venue had to fix preexisting manufacturing and quality control systems, Xellia can start from scratch, Agerbæk said. He equated it to building the foundation of a house. “Basically, we have time to do the
— Niels Lynge Agerbæk, general manager of Xellia Cleveland
Denmark-based Xellia took over the Ben Venue complex in Bedford, which closed in 2013. (Contributed photo) right stuff, to make sure that the foundation is strong. If you have a house, it’s difficult to make the foundation strong if you’re living in it at the same time,” he said. Although Xellia is implementing its own quality control system, it is trying to learn from Ben Venue’s mistakes, he said, without going into detail about those mistakes. Agerbæk added that Xellia has hired “quite a few” former Ben Venue employees, who are working alongside longtime Xellia employees and people recruited from other drug companies. “What we judge on is of course not where you’ve been working but who you are,” he said.
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In November, Xellia bought the site from Hikma Pharmaceuticals, a London-based company that had acquired the property and Ben Venue’s generic drug development business in 2014. Hikma still owns one building on the site, the socalled Quality and Development Center. In April, Xellia and the FDA reached an agreement on how to modify the consent decree. To summarize, it says the company will need to have an outside expert conduct an inspection to ensure that its manufacturing processes and quality control systems are up to the FDA’s standards. The FDA also
might conduct its own inspection before giving Xellia the go-ahead to begin selling drugs made at the newer buildings on the site. But Xellia should be able to start using the facility for packaging and distribution purposes before the end of 2016, according to Agerbæk. The company won’t have to hire an outside expert to inspect that process, but the FDA could choose to conduct its own inspection, according to the modified consent decree. Thus, Xellia has already started testing a highly automated packaging and labeling machine at the complex.
Eating the elephant What about the older buildings on the southern side of the property? Xellia would have to jump much higher hurdles to begin using them, judging from the consent decree. (It
dedicates five pages to the newer facilities and nearly 14 pages to the older ones.) As a result, Xellia has no plans for them at the moment, Agerbæk said, noting that they would require substantial investments related to room design and ventilation systems. Given that the complex is so big, Xellia is trying to “eat the elephant” one piece at a time, he said. Xellia was interested in the site because it wanted more manufacturing capacity, Agerbæk said. It already produces sterile, injectable drugs at plants in Copenhagen and Raleigh, N.C., but it’s maxed out, he said. The Bedford complex should help Xellia meet future demand for injectable, antibiotic drugs — including some that are in short supply, according to a statement that CEO Carl-Åke Carlsson made in the company’s 2015 Corporate Report. “This will also support the ongoing expansion of our pipeline and prepares us well to take advantage of future opportunities for growth,” he said. The company can afford to take the long view, Agerbæk added: The vast majority of its shares are owned by Novo A/S, an investment vehicle owned by a nonprofit, the Novo Nordisk Foundation. “We are in this business to actually do something about infections,” Agerbæk said.
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Opinion From the Publisher / Editor
Gender pay gap isn’t as simple as it seems
Editorial
UH at 150 Over the last 150 years, University Hospitals has saved thousands of lives, forged new frontiers in medicine and done incredible work in the community through its philanthropic endeavors. To all that, we say cheers. It hasn’t been an easy journey, as Crain’s reporter Lydia Coutré detailed in this week’s cover story. For years, the hospital struggled in the shadow of its much-larger rival — the Cleveland Clinic — and posted losses in the tens of millions of dollars each year. Today, it’s a much different story. Since Tom Zenty arrived as CEO in 2003, the hospital system has undergone an impressive turnaround and expansion. In particular, over the last decade, UH has evolved from an East Side-centric system into a truly regional health care enterprise and a formidable competitor to the Clinic. UH has invested millions in new facilities — namely the impressive Ahuja Medical Center, Seidman Cancer Center and other community facilities — and acquired a handful of the region’s remaining independent hospitals. So, can this growth continue? UH officials seem to think so. As UH looks toward its next 150 years, it would be wise not to get caught up in the local medical arms race and try to surpass the Clinic in terms of size or try to emulate its worldwide ambitions. Instead, UH should continue its focus in Northeast Ohio and not be tempted by deals beyond the region. In many cases, UH has come across as the kinder, gentler alternative to the Clinic. The Clinic, for one, has faced criticism in recent years for its ambitious moves in the market and (maybe unfairly so) for its decision to close Huron and Lakewood hospitals. UH, however, came off as especially aggressive when it announced almost exactly a year ago that it planned to pit its primary hospital, UH Case Medical Center, alongside Metro-
Health Medical Center as the region’s second Level I trauma center. The move was characterized by many — and perhaps rightfully so — as a volume play. UH’s trauma center went live late last year, and as reported recently by The Plain Dealer, MetroHealth’s trauma volume has taken a hit. UH officials have said its top-tier trauma center fills a void, especially on Cleveland’s East Side. Critics claimed a competing trauma system could compromise the quality of trauma care in the region by diluting volumes at its existing trauma centers. However, it’s still too early to say how UH’s trauma center has impacted patient outcomes. Cuyahoga County is fortunate in that it boasts three impressive health care institutions — UH, the Clinic and, of course, MetroHealth. Northeast Ohioans, for the most part, are deeply loyal to their hospitals, but that hasn’t tempered the fierce competition between the three health care giants. As UH reflects on its history and plans for its future, we hope it’s not only driven by a “bigger is always better” philosophy.
Hats off The University of Akron’s leadership turmoil has dominated the headlines, but not far up the road in Kent, an impressive leader is emerging. In her two-year tenure, Kent State’s president Beverly Warren has proven to be an inspiration to the community. Most importantly, she’s connected with students in ways her predecessor couldn’t. Last week, Kent State’s board extended Warren’s employment agreement through 2020. That couldn’t be better news for the university community and Northeast Ohio as a whole.
PUBLISHER AND EDITOR: Elizabeth McIntyre (emcintyre@crain.com)
CLEVELAND BUSINESS
MANAGING EDITOR: Scott Suttell (ssuttell@crain.com) SECTIONS EDITOR: Timothy Magaw (tmagaw@crain.com)
Back in the early ‘90s, when newsrooms were much more generously staffed, Sunday nights could be a bit of a slog. The normally slow news day meant stories were few and far between, and by the time 10 p.m. rolled around, the dozen or so journalists would look for ways to pass the final hours of their shifts. One of my favorite pastimes was gently lobbing an inflammatory topic to ideological opposites to watch them engage in rhetorical warfare for the next half-hour. It made for great theater as John and Jeff staked out and defended their predictable positions. Today, the red meat topic that would prompt inflammatory debate on Sunday night would be the gender pay gap. That’s the issue getting folks going these days, and for good reason. Inequity is wrong. Period. But, of course, it’s more complicated than an ideologue slugfest. Elizabeth It’s been a hard topic to miss the past McIntyre month or so, especially after five members of the U.S. women’s national soccer team filed a wage-discrimination complaint against the U.S. Soccer Federation, arguing the women’s team earned close to one-fourth of what the U.S. men’s team made, despite generating more revenue. The lawsuit came several weeks before Equal Pay Day, which fell on April 12 this year. The day symbolically marks how far into the new year women need to work to earn what men made the previous year. Here’s the statistic that sends ideologues on each side to their opposite corners: Women make 79 cents for every dollar a man makes. One side holds tight to that number, while the other insists it’s a myth. I learned long ago watching those Sunday night fights in the newsroom that neither side is absolutely right or wrong. The truth, with all it complexities, usually lies somewhere in the middle. That’s exactly where I find the gender wage gap issue these days. Strip away the rhetoric and here’s what remains: Yes, there is a gender pay gap. Women aren’t paid the same as men. Is it 21 or 22 cents less, per dollar, than what men make? Probably not, economists say. It’s likely somewhere under 10 cents. Often, the gap exists because of choices: education, occupations, number of hours worked, time off for caregiving, and so on. Many of these choices are ones men don’t face. When a woman decides to step off the career track or reduce her work hours to raise children or care for an elderly parent, she pays a price — and one she often continues paying well into her retirement years. Any gap is a problem, especially when it’s truly an apples-toapples comparison. If a woman and a man hold the same position, at the same company, with the same level of experience and education, and he makes more than she does, that’s wrong. And yes, pay discrimination like this still does exist in workplaces. The wage equality problem is complex, and getting to solutions will not be easy. We as a society, though, must begin working toward finding answers. That won’t happen with the kind of rhetoric that used to keep us busy on a slow Sunday night or arguments that have no intention of finding a solution. It’s going to require an honest look at who we are, what we value, and how to get there.
WRITE US: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing letters@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.
SOUND OFF: Send a Personal View for the opinion page to emcintyre@crain.com. Please include a telephone number for verification purposes.
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Stockbroker fraud? Bad investment advice?
Personal View
Putting the ‘lake’ in Lake County BY PETER K. ZAHIRSKY Most people in Ohio’s lakefront counties would agree that Lake Erie is one of our most important regional assets. From the necessity of having clean drinking water to the luxury of lake-based recreation, the lake provides for all of us, and the importance of its protection cannot be overstated. As a tourism attraction and an economic development tool, Lake Erie is important to Lake County. Crain’s recent special section that described development on the shores of Lake Erie (“It’s a Water Town”) could well have been titled “It’s a Lake County.” In Lake County, we have more than 31 miles of shoreline stretching from Willowick in the west to Madison in the east, with more than two dozen public access points in between. Understanding that quality of life is an important population attraction and retention factor, we as a county have undertaken a comprehensive approach to making our shoreline a destination for a multitude of tourist and recreational interests, while maintaining an active commercial port in Fairport Harbor and Grand River that handles 2 million tons of aggregates annually. In 2005, the Lake County Coastal Development Plan was created after several years’ worth of public input and collaboration between county stakeholders. The initiative was driven in part by the realization that a public that regularly accesses the lake will also advocate passionately for its protection. The plan focused on seven of the most frequented public access points and what could be done to enhance their quality and protect them in the long term. This was followed a year later by the Landside Communities Plan, which proposed various recreational, residential and mixed-use developments that would tie in to the lake. While the economic downturn of 2008 hampered implementation of the plans, the Lake County Board of Commissioners directed the Lake County Ohio Port and Economic Development Authority (LCOPEDA) to implement the initiative in 2013. To ensure the plans received their proper focus, LCOPEDA was able to win a grant from the Lake Geauga Fund of the Cleveland Foundation to create a position specifically tasked with driving the process, which I am privileged to hold. The first project completed as part of the effort, the development of the Fairport Harbor
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Bikeway, will have its ribbon-cutting ceremony on May 21. These plans were developed in the context of existing assets like Mentor Headlands State Park Beach, which is Ohio’s largest beach and draws more than 3 million visitors each year. But they also generated momentum that has led to the addition of new amenities that were not even on the horizon when the plans were created. In 2014, Lake Metroparks opened Lake Erie Bluffs Park, a 600-acre lakefront preserve featuring one of the longest stretches of wild, undeveloped beach on Lake Erie. The park is well-positioned along the migration routes of many bird species and has quickly become a hotspot for birders. The addition of a 50foot-tall lakefront observation tower will only enhance its status as landmark on the southern Lake Erie shore. But, of course, it’s not the only Lake County option for birders, as Mentor Marsh and Mentor Lagoons to the west are also popular destinations on the Lake Erie Birding Trail. Recognizing the importance of tourism to the county’s economy, LCOPEDA partnered with the Lake County Visitors Bureau to commission a hospitality feasibility study to evaluate new sites for potential hotel development. While lake-related tourism is a significant component of Lake County’s economy, the focus on lakefront development has another strategic goal as well. Modern economic development embraces quality of life as an important factor in facilitating a robust economy, and this idea has been validated by the millennial generation. While their predecessors looked for the job first and a place to live next, millennials are doing the reverse. They tend to select where they want to be first and then find a job in that location. Greenspace and outdoor recreation opportunities are critical for millennials, and they favor communities with strong connectivity to the two. Lake County is well-positioned to offer these amenities to the millennials as they reach the point when they start families. Just as Cuyahoga County is now recognizing the value of Lake Erie, so, too, is Lake County. We hope you will come out and enjoy a day on the beaches of Lake County this summer. Zahirsky is director of coastal development for the Lake County Ohio Port and Economic Development Authority.
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Metroparks deal doubles as MTD showcase BY JAY MILLER
with products under development that cater to the specific needs of the park district, said Brendan McHugh, the park district’s corporate sponsorship associate. “Partnering with Cleveland Metroparks supports MTD’s mission to be active in the communities where we live and work,” said Robert Moll, MTD’s CEO, in a statement. “Our employees and their families benefit from the parks, trails and facilities managed by the Metroparks, and we’re proud to do our part in keeping Northeast Ohio a wonderful place to live and raise a family.” A display with an interactive chalkboard will show off MTD equipment — its Cub Cadet, MTD and Troy-Bilt lines — at the West
jmiller@crain.com @millerjh
MTD Products is partnering with Cleveland Metroparks in a deal that gives the park district a first look at the next new thing in outdoor equipment, and provides the Valley City company a new testing ground and showcase for its products. The two also will team up on a series of videos featuring tips and advice on yard work. The Cleveland Metroparks Zoo is creating the videos in-house, but MTD is committing $85,000 to support the project, a zoo spokesman said. MTD will supply the Metroparks
Side zoo, which sees more than 1.1 million visitors annually. “The Metroparks are giving us a great opportunity,” said Heidi Ketvertis, MTD’s senior director of brand marketing. “We are committed to being close to our customers, especially in park development. We’ll get feedback on new products early in the (development cycle).” MTD has been making major commitments to the professional outdoor power equipment market in recent years, a market that includes landscaping firms, golf courses, parks and government. Demand for commercial power lawn and garden equipment is growing faster than the residential segment of the $7 billion outdoor power equip-
ment market, according to a 2015 study by Packaged Facts, a Rockville, Md.-based market research firm. The Packaged Facts report described MTD and the Swedish Husqvarna Group as the leaders in the outdoor power equipment market. A very private privately held company, MTD does not disclose its financial information. In 2015, MTD bought CORE Outdoor Power, a Polson, Mont.-based company that developed more efficient electric motors and Precise Path Robotics of Indianapolis, which is developing an autonomous greens mower for golf course putting greens. Last week, the company announced a new line of cordless, elec-
tric products — a string trimmer, a leaf blower and a hedge trimmer — powered by the CORE motors. Ketvertis would not discuss exactly what equipment will be made available to the Metroparks. “The focus with this aspect of the partnership was to showcase MTD products for professional use,” McHugh said. “This is a part of MTD’s ongoing commitment to getting closer to their customers through real-world testing. It will be one or two pieces at a time, depending on the season.” Metroparks maintenance staff mows, trims, tills and gathers leaves at 18 parks, eight golf courses and the zoo, a total of more than 23,000 acres in Northeast Ohio.
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Crain’s 2016
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Anne C. Goodman President and CEO, Saint Luke’s Foundation
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hen Crain’s last checked in on Anne C. Goodman almost two years ago, she had left the Greater Cleveland Food Bank to be president and CEO of Saint Luke’s Foundation. The shift of seats at the table saw her go from someone who continually sought operating money to the person who granted funds to nonprofits. Did the switch alter her management style, which was described by one person as “delightful, humorous, sometimes profane, inclusive and collaborative?” Not a chance. “I’m me wherever I go,” said Goodman, while sitting at a different kind of table in the lunch room of the foundation office in the old Saint Luke’s Hospital. And she wants people representing agencies hoping to partner with the foundation to be the same. “I’m much more casual than many people. I have slippers under my desk. I get cold a lot,” Goodman said. “Putting people at ease is important. I’ve tried to create a warm environment, where people feel safe and there is humor, so people can behave like themselves.” It is no different with her staff of 10, a number far lower than the 125 she led as CEO at the food bank. She does not want her people to prepare presentations for staff meetings. “Just talk,” she tells them. Douglas Wang was the foundation board chair when Goodman was lured from the food bank. He knew about the organization. Saint Luke’s was the food bank’s biggest funder. He had some convincing to do though. She balked at first. “She was happy at the food bank.
Sometimes the person you hire isn’t particularly the person who wants the job,” Wang said. “We had a long discussion, and I guess it worked.” Wang went at it from two directions. He told Goodman the board wanted someone from the grantee side to better understand what grantees go through. And he told Goodman that she would influence more people and touch more organizations as the head of a major foundation — in this case the third-largest in Cuyahoga County, with assets of around $175 million.
Wang’s points still resonate with Goodman. “I feel strongly that somebody is not coming in just to ask for money. They believe in their mission. It is crucial to them. We have to respect their passion and expertise. It’s humbling for me,” Goodman said. “The work of a foundation is so much more than writing checks. It’s a real way to be deeply integrated into a community. The greatest impact is community involvement and input,” she said.
“I feel strongly that somebody is not coming in just to ask for money. They believe in their mission.” Three years ago, the foundation’s board refined its mission. Members said grantmaking should focus on getting people healthier, building stronger communities and helping families become more resilient. Targeted communities are largely the Mount Pleasant, Woodland Hills and Buckeye neighborhoods of Cleveland that surround the former hospital on Shaker Boulevard. Goodman said she and her staff often are in the field talking to and observing agencies the foundation funds or may eventually help. The 18-year-old foundation passed out $11 million in grants last year. “I want to know about the challenges in the neighborhoods. We value learning with them,” Goodman said. On this day, Goodman is now in a brightly lit foundation conference room — called the fishbowl for its setting in the middle of cubicles and its design of largely glass walls. She listens as officials from Youth Opportunities Unlimited talk of how the nonJason Miller/Pixelate Photography
profit is expanding its reach. The agency has counseled and helped find work for youth, ages 14-19. It aims to stretch the higher end to 24 years. With her eyeglasses tucked atop her head, Goodman looks intently at the speakers and only twice talks during the formal part of the meeting. But both of her observations purposefully tilt the discussion. Carol Rivchun, president of Youth Opportunities, said it is great that someone with Goodman’s background heads a foundation. “She knows how tough it can be,” Rivchun said. “She will have more empathy for when things aren’t happening as fast as they could be, and if outcomes are not as high as somebody expected.” Rivchun said Goodman can be tough. “Anne has a clarity of vision and clarity of thought and tends to just call it like it is. She is very direct, very real and very down to earth. It is refreshing,” she said. Under Goodman’s watch, the food bank built a $10 million distribution center off the East Shoreway and got food into the stomachs of the needy. The contributions of a foundation are harder to measure. But Goodman is at work here, too. “An organization must stay nimble. If we don’t reflect, how do we know if we are staying on track,” she said. She has hired a staffer to measure the foundation’s effectiveness. Goodman lives in Shaker Heights with her husband, Larry, who is head of school at Andrews Osborne Academy in Willoughby. They have two children, Abby, 17, and Andrew, 14. — Ron Rutti
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Women of Note
Rita N. Singh Founder and CFO, S&A Consulting Group; Founder and CEO, Elite Women Around the World
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ita N. Singh has one requirement for anyone joining her organization, Elite Women Around the World: You must mentor another woman. “I feel if you are in it for yourself, don’t join,” said Singh, who together with her two daughters started the group 10 years ago. “I make sure the member understands how important it is to give back.” Singh said she attended a number of seminars before she came to a realization that contributed to the founding of Elite Women. “I felt something was missing,” she said. “Everybody was there for themselves. If we mentor other women, if we help them, women will go a long way toward building a better society.” Women should welcome being mentored, she said. “They have to understand you cannot do it alone. If you think you can, you are going to stumble. You need that partnership. You need that buddy,” she said. Singh came to the United States from India in 1979. That same year she married Nipendra “Nip” Singh. Ten years later they formed S&A Consulting Group in Cleveland, with specialties in engineering and management. Rita, a CPA, did accounting work for clients. Within a year she found the job too confining. “I realized early on that I am not here to do the traditional accounting and taxes,” she said. Singh began giving tips to her small business clients on refining or even drawing up business plans. In time, she formally supplied financial management and marketing consul-
tations through S&A. By the late 1990s, Singh added something very different to her resume. She formed Miraj International, a business that stages elaborate gatherings, from weddings to corporate events. “I only do a few a year,” she said. Then came Elite Women — an organization that has become her passion. “I know I am a good consultant, a good CPA, a good entrepreneur. But I felt I have a purpose in life to give back,” Singh said. She thanks her husband for help in starting the group. “Without him, there would be no Elite Women Around the World. He gave the courage, the financial, the emotional and spiritual support. It has taken me more time than he ever thought,” Singh said. Elite Women generally has a duespaying membership of between 200300 women. Singh is not deterred by the number. She points to the hundreds of people (including men) who attend periodic Elite Women programs on subjects such as leadership and building alliances. “I am not about quantity. If I was, I would be just like everybody else,” she said. “All you need is a handful of people whose mission is to help. I measure success by what they say about us.” “Rita is all about making a difference in this world and empowering other woman to do the same,” said Elaine Connelly, an Elite Women member for two years. “She brings together groups of women to continue to seek their purpose, their vision,
their way, their success.” Connelly, a nurse who works in energy medicine, agrees with Singh that numbers are unimportant to the organization. “I consider it a network,” she said. “It is matching up people who are drawn to each other and paying attention to people that cross your path.” Singh also coaches executives for S&A. She especially enjoys nurturing people she identifies as emerging leaders. “You see the signs in them,” she said. “They are willing to take risks. They are passionate. Most are people persons. They have team-building skills and are good communicators.” Singh displays a wall full of awards she has received in the basement of her Pepper Pike home. She probably enjoys handing out honors at Elite Women activities as much as when she receives hardware. “I want to give them to real people. I think it inspires people. You are not only being awarded for something you have done, you are inspiring people to walk on that path you walked,” she said. — Ron Rutti
Elizabeth Evans Executive vice president, general counsel and secretary, Republic Steel
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lizabeth Evans was working at Benesch Friedlander Coplan & Aronoff LLP when Cantonbased Republic Steel offered her an opportunity she just couldn’t pass up: the chance to become the steelmaker’s first general counsel and to get a legal department started.
“It feels like you’re part of a long-term legacy.”
“It feels like you’re making a difference,” she said. “You know, I’m part of a team that’s trying to turn around and grow a U.S. steel manufacturer company.” The company’s Lorain plant, though it has been run under different owners, has special meaning to Evans. It’s where her great-grandfather worked when he came to the country from Ireland. Her grandparents worked there, as did uncles and cousins and, briefly, her father. “It feels like you’re part of a longterm legacy,” she said. “And you’re really part of this larger, family community throughout Ohio, being involved in this company.” The steel industry is at a low point in its cycle now, because of low oil and gas prices and an influx of imports, but Evans is hopeful the need for U.S.-made steel will increase “exponentially.” Although Evans said she wouldn’t have guessed she’d end up at a steelmaker, she knew she wanted to be in law from a young age, given her love of negotiating and analytical thinking. Evans went to what’s now known as Baldwin Wallace University for her undergraduate degree in SEE EVANS, PAGE 22
Empowered. Engaged. Essential. We are proud to join our clients in recognizing their Women of Note: Patricia A. Motta, American Greetings Corp. Geri M. Presti, Forest City Realty Trust Inc. Carolyn E. Cheverine, Eaton Anne C. Goodman, Saint Luke’s Foundation Debra A. Green, Medical Mutual of Ohio Ramona Hood, FedEx Truckload Brokerage, FedEx Custom Critical Loretta J. Mester, Federal Reserve Bank of Cleveland and congratulations to all of the 2016 Crain’s Women of Note Award honorees.
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“I know I am a good consultant, a good CPA, a good entrepreneur. But I felt I have a purpose in life to give back.”
Jason Miller Pixelate Photography
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Women of Note
Karen Gahl-Mills CEO, executive director, Cuyahoga Arts and Culture
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aren Gahl-Mills set aside her own artistic career in music, as a cellist, to support the careers of other artists. Well, maybe it would be more accurate to say her greatest talents lay outside performing. “I had a medium level of musical talent, but not really enough to make a living,” she said she realized while a music major at DePaul University in Chicago. “You go to music school, and you learn that pretty early.” Instead, she has played a major role in making Cleveland and Cuyahoga County the envy of arts communities across the country. GahlMills, a graduate of Westlake High School and its marching band, leads Cuyahoga Arts and Culture (CAC), the Cuyahoga County agency that financially supports several hundred artists and programs a year, a level of public support exceeded by few communities. A 2014 study by the Cultural Policy Center at the University of Chicago that compared Chicago with a group of peer cities, put Cleveland at the top of the 13 metropolitan areas studied in the amount of public money per capita used to support the arts — $15.8 million of $18 million in public money spent in Cuyahoga came from CAC in 2012. At meetings of the United States
Urban Arts Federation, a group of 60 arts executives, Gahl-Mills hears that “everybody’s looking for the kinds of resources we have.” CAC was created with the 2006 passage by voters of a small tax on cigarettes to support arts and cultural efforts. The tax was renewed in 2015, by a 75%-25% margin, in part because of Gahl-Mills’ efforts to make sure CAC-sponsored programs touched as many county residents as possible. Under Gahl-Mills, CAC has funded everything from the Cleveland Orchestra to the Foluké Cultural Arts Center on Cleveland’s East Side, which trains at-risk children and youth in dance, drama and voice and mounts performances by its students. Sari Feldman, executive director of the Cuyahoga County Public Library, was on the CAC board that hired Gahl-Mills and the two toured the county together on Gahl-Mills’ first interview visit. “I could see right away the perspective she had on how to make (CAC) have an impact on the community,” Feldman said. “She sees it as really being about both what it means to the individual as well as to the larger community. It’s great to talk about things like what it contributes to the local economy but it is also about what it contributes to the life of a child or a senior citizen
or people who are geographically isolated from the great arts and cultural institutions in the city center.” After deciding a career as a musician or a music educator wasn’t for her, Gahl-Mills quit school and landed in Los Angeles, where she found work with a television advertising production company working with directors, cinematographers and then a company that did original music for television. She realized after a while that, though she believed she and the companies she worked for were doing quality work, the for-profit world wasn’t where she belonged. “I needed to feel that I, personally, was making a difference and it’s hard to feel sometimes that you’re making a difference when you’re making an ad that’s selling something, even if it’s a beautiful ad or it’s a wonderful piece of music behind the ad,” she said. “So chapter two was nonprofit management.” For that, she returned to Chicago. Belatedly, she finished her bachelor’s degree in music from DePaul in 1999 and then earned an MBA from the University of Chicago. As she was rounding out her MBA class schedule she thought, “I can’t take another accounting course,” so she
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“I needed to feel that I, personally, was making a difference.”
strayed from the straight-and-narrow MBA curriculum to take a course called the Introduction to Cultural Policy. “It perked up my ears to what is cultural policy in this country and how do we think about it,” she recalled. During that time, she also worked at the Ravinia Festival, the summer home of the Chicago Symphony Orchestra. After graduation, with the Ravinia Festival on her resume, she was hired to be executive director of the Westchester Philharmonic in suburban New York City and then it was on to the Syracuse Symphony Orchestra. At that point, Gahl-Mills, and her Chicago-born husband Laurence Mills-Gahl, a software developer, had no plans to return to Cleveland. But then, in 2009, someone at a cocktail party mentioned a job opening at the Cuyahoga County public agency that had begun funding arts and cultural programs. So she took a look and found that, “something interesting was happening there; it married together all the things I had been thinking about.” — Jay Miller
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Women of Note
Patricia A. Motta Executive director, assistant general counsel and chief intel lectual property officer, American Greetings Corp.
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or several months, Strawberry Shortcake was a major source of stress for Patricia A. Motta. Don’t be fooled: Underneath that giant, strawberry-shaped hat is a very complex cartoon character — if you happen to be the chief intellectual property lawyer at American Greetings. The Brooklyn-based company sold Strawberry Shortcake to Iconix Brand Group of New York for $105 million in March 2015. To get to that point, however, Motta and her colleagues had to untangle hundreds of licensing agreements with companies from all over the world. Motta learned a lot in the process, but “it was really, really a ton of work.” “It was probably one of the most stressful times of my career. … The teeter-totter was way, way off balance,” she said. However, Motta made it clear that she doesn’t let the teeter-totter remain off balance for too long. Sure, early in her career, she spent a few years with her nose to the proverbial grindstone. And Motta — who also serves as executive director and assistant general counsel at American Greetings — still encourages other women to push for leadership positions. But she’s not the type to sacrifice everything for work. Motta, who has three kids, takes her philosophy on
In r
“I felt that I could do that job. I could be a lawyer.” the work-life balance issues from a popular TED Talk given by AnneMarie Slaughter, who left a high-level position in the U.S. State Department when her son started having problems in school. In the talk, Slaughter argues that people need to put equal value on both breadwinning and caregiving, since both are necessary for human survival. Thus, even when Motta was dealing with Strawberry Shortcake, she knew that she had to get back to her normal routine as soon as possible. “I kept telling (my kids), “There’s a light at the end of the tunnel. Mom’s not going to work every night for a year,’” she said. Motta said her father encouraged her to be ambitious: He often told her that she could be president of the United States, if she wanted to. For a while, the Orville High School graduate liked the idea
of getting into politics. By the time she got to Miami University, however, she realized that politicians have to spend too much time in the spotlight for her tastes. However, she still liked the idea of being a diplomat to another country or something, so she majored in politics and international relations. She didn’t consider law until she met her roommate’s father, who talked to her about his legal practice. “I felt that I could do that job. I could be a lawyer,” she said. After earning her law degree from Marquette University Law School in 1999, she spent five years working as an IP attorney for Michael Best & Friedrich LLP. There, she honed her expertise in trademark and copyright law. One of her clients was American Greetings, which recruited her to the company in 2004. Motta was a rare find, according to Cathy Kilbane, who served as the company’s general counsel until 2013, when she became general counsel at Sherwin-Williams. Not only does Motta have a deep understanding of legal Jason Miller/Pixelate Photography
issues, but she also understands the needs of the business, Kilbane said. For instance, when American Greetings started getting into topical humor cards, Motta came up with a way to speed up the legal review process, Kilbane said: Cards could skip a formal legal review so long as they didn’t commit any of the “seven deadly sins” — which involved touching on topics like religion and politics. Motta also stood out in another way, Kilbane added. “She raised the fashion bar for the legal department,” she said. Yes, Motta does enjoy shopping, getting her nails done and going to the spa with her sisters. She also likes cooking, exercising and going anywhere with her family. She and her husband, Craig Nard, an IP professor at Case Western Reserve University, have three kids: Gabriel and Victor, both 12, and Elsa, who’s about to turn 9. She also serves on the board at Esperanza Inc., a nonprofit that helps local Hispanic students achieve their academic goals. Motta makes room for everything in her life with support from her husband and a part-time nanny. She also arranges her day to ensure she can eat with her family on most nights. “I don’t let other people manage my calendar,” she said. — Chuck Soder
emarkable achievement.
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Women of Note
Nancy Tinsley President, UH Parma Medical Center, University Hospitals
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ust out of college and working as a staff nurse on the cardiology floor of St. Luke’s Medical Center, Nancy Tinsley implemented her first improvement initiative to advance the care of heart failure patients. “I was always the staff nurse redesigning care, looking at building efficiencies in delivering care and thinking across disciplines,” said Tinsley, now president of UH Parma Medical Center. “I had the improvement bug. I had the how do we reengineer bug.” Her colleagues took note. A manager position opened up in the heart unit after she had switched to another department. One by one, or sometimes in groups, nurses came to her new floor to tell her they wanted her as their manager. It came as a surprise to Tinsley, who assumed her constant pleas for them to help her with a project “drove them crazy.” “I was very humbled by their desire to have me be their partner as a leader, because a leader is always a partner,” Tinsley said. “I don’t believe in the true hierarchy of work, but I believe in the partnership of teams to get work done.” She became their manager, and her new team did “all kinds of fun things,” like driving improvement and interdisciplinary collaboration. By the time St. Luke’s closed in 1999, she had advanced to director of quality, case management and risk management. She was always looking for her next step, she said. Through her time at St. Luke’s, she also studied and received her master’s in business and health care
administration. “I was always looking to learn,” Tinsley said. “I believe if you’re going to succeed in life — not just in your own career — you’ve got to be a continuous learner.” Chris Loyke, chief medical officer at UH Parma, said Tinsley is a fast learner and smart leader. She “pretty much embodies everything you would want in a leader,” Loyke said. Like all good leaders, Tinsley leads by example, he said. She has the temperament and patience to set a good example. “And probably the thing I find most notable is she has this unbelievable amount of energy,” Loyke said. “I’m a marathoner, I’m younger than she is, and she puts me to shame with the amount of energy she has.” Tinsley taught at Case Western Reserve University for 16 years — something she said every year she didn’t have time for, but she did it anyway. As part of the university’s clinical faculty, she said she saw value in teaching the next generation of medical professionals because it helped her understand how to best partner with them and ultimately improve the way she leads. Everyone is the leader of their own work, Tinsley said — they know best how to improve and advance it. Unfortunately, she said, “it’s a permission-driven world,” and people need to be empowered to take risks and understand that if it doesn’t work, that’s OK, but if it does that’s phenomenal.
“I do believe that women may take less risks in doing that because of the different perspectives others have of female leaders,” she said. “I think both men and women need to be cognizant of the way that the genders lead differently and evaluate each other’s leadership.” Other than recognizing those differences, Tinsley said she focuses less on gender issues and more on encouraging people to develop their distinct leadership style and brand. “You can tell that she loves what she does, she believes in what she does and she makes the right decisions for the right reasons,” Loyke said. Once Tinsley retires — though she emphasizes she is nowhere near that time — she’d love to buy an ice cream shop and teach high school students how to run a business. But for now, her goal is to continue to be part of developing the next generation of health care delivery in partnership with all leaders and caregivers. “We are at a point in health care where this is the biggest disruption that I’ve seen as far as demands and expectations, none of which are unreasonable,” Tinsley said. “It’s just that we’re not designed to deliver what it is everybody wants. And it’s really exciting to be part of that redesign.” — Lydia Coutré
“I believe if you’re going to succeed in life — not just in your own career — you’ve got to be a continuous learner.”
Jason Miller/Pixelate Photography
Ramona Hood Managing director, FedEx Truckload Brokerage, FedEx Custom Critical
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pparently, one way to bust through the so-called glass ceiling is to use a really big truck — or a fleet of them. It seems to have worked for Ramona Hood, who has risen through the ranks at one the nation’s biggest and most admired companies — FedEx — to become a regional manager for one of its major business lines. She likes to tell people she started as a receptionist — when she was 12. That’s only half true, but Hood can be forgiven. “I really was not 12, I was 19,” Hood said. “But I did start as a receptionist.” That was 24 years ago, when Hood first began working with another trucking company, Roberts Express, which was eventually acquired by FedEx. She wasn’t looking to break new ground in the trucking industry as an African American woman — she just needed a job. “When I applied, it was Roberts Express, and I really didn’t even know what they did,” she said today with a laugh. Today, she oversees a team of more than 150 people, who manage and coordinate trucks that handle shipments of raw materials and finished goods, primarily for manufacturing clients and their customers across North America.
She succeeded, according to her peers, because she has a head for business, as well as logistics — and sets very high standards for herself, her team and anything put under her charge. “One of the things that makes Ramona very successful is she has a high bar — she has high expectations for herself and everyone around here and that’s very clear,” said Kevin McClel-
“I’m pretty candid with the leadership group and with my team members.” lan, managing director for FedEx Custom Critical, which includes Hood’s Truckload Brokerage unit. Hood’s pretty direct — just ask her, she’ll tell you. “I’m pretty candid with the leadership group and with my team members,” she said. You’ll hear similar praise from higher up, too. Virginia Albanese, president and CEO of FedEx Custom Critical, nominated Hood for this year’s Women of Note program. She credits Hood with increasing revenue in the company’s truckload business by 30% while improving margins by 20%.
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Women of Note
Geri Presti Executive vice president, secretary and general counsel, Forest City Realty Trust Inc. intricately involved. However, reaching fruition with the last of 4,000 documents was exhilarating. “After it was over,” Presti said, “we were almost sad.” But it was also on to the next task for the legal staff of 30 at the real estate company. Its work includes legal work associated with buying, selling, financing or building projects as well lease administration. The goal is to use outside counsel for work that is not an everyday practice for the company or major litigation. Orchestrating such business and legal transactions is very different from Presti’s first goal in life. She practiced piano for years to become a concert pianist. She became a music therapist at Ohio University because she was interested in the role that music could play in helping people. She worked at Bellefaire and spent four years at The Music Settlement, very different work experiences to take to Forest City. Her career change developed, she said, because of her love of learning and desire to make a contribution to society beyond what she could as a therapist. To that end, she completed the Case Western Reserve University dual program in social work and law that led to her legal career. All this while, Presti juggled the roles of mother — she and husband Dr. John Sedor have two grown sons — and nonprofit boards ranging from The Music Settlement to the Sisters of Charity and Business Volunteers Unlimited. She was a founder of the Women’s Leadership
“Ramona has taken charge of her career, while also listening to advice from leaders, coaches, and family,” Albanese said. “She has navigated her way up the ladder, learning the ropes of leadership, strategy, financial reporting and salesmanship.” Albanese said Hood has succeeded, at least in part, because she’s been unafraid to leave her comfort zone on numerous occasions. She excelled in operations, but was still willing to take on a role in sales — and when she excelled there, she was willing to change again to go into executive leadership. Hood might be as successful as Albanese — another Northeast Ohio female executive who has risen through the ranks at FedEx to run an important business unit. Or she could rise even higher, in the company’s corporate executive suite. None of that would surprise McClellan. “I’m a big fan. She’s a great executive and I expect one day she’ll have what it takes to run a FedEx business unit,” he said. In the meantime, Hood will keep on doing what she does best — improving the sales and profitability of her business unit, mentoring her own associates. And squeezing in some volunteer work and family time in between. Hood lives in Copley with her daughters, Mariah and Kayla. — Dan Shingler
“I grew in my career on those corporate boards. It’s not just networking. You learn leadership skills.” Council of United Way of Greater Cleveland and serves as a national board member of the Society of Corporate Secretaries. Presti also helps assist women making their way in business. Robyn Minter Smyers, partner-in-charge of Thompson Hine’s Cleveland office, said in her nomination of Presti, “Geri is the definition of a servant leader. Amazingly, she also finds the time to mentor and support women in the community, including sending personal notes of encouragement at the right moments. She is a role model and source of inspiration.” For her part, Presti said, “I grew in my career on those corporate boards. It’s not just networking. You learn leadership skills.” To relax, Presti belongs to a book club and she and her husband are season ticket holders at the Cleveland Orchestra. Her Spotify account delivers classical music and jazz as she drives. She also enjoys participating in the Court of Nisi Prius, which produces the Grand Assize, an annual show that skewers local and national politicians and events in skits and songs. — Stan Bullard
Photographs by Jason Miller Pixelate Photography
W
hen Geri Presti joined the law department of Forest City Enterprises Inc., now Forest City Realty Trust, on a temporary basis in 1989 to fill in for another lawyer on maternity leave, she was told she would be there for eight weeks and then be gone. Despite her lack of law firm experience before joining the real estate company, she never left. Thirteen years later she became its general counsel. Fast forward to today and she also serves as an executive vice president — the first female at that level in the company — and corporate secretary of the publicly traded national real estate firm’s board. Moreover, when Forest City became a real estate investment trust in January 2016, it was a moment Presti called “the highlight of my entire career.” David LaRue, Forest City CEO, said it was less than a year earlier that Presti had met with the company’s outside advisers and legal team to map a strategy for converting the company to a REIT. The complex plan required getting Securities & Exchange Commission approval, support from the firm’s banks and investors, including a vote by Forest City’s shareholders and a myriad of steps. “Other companies on average take 18 months to get everything done to convert to a REIT,” LaRue said. “It’s nothing short of amazing.” For her part, Presti called the job, “The best team experience of my life.” Some 300 people worked on the conversion process from within and outside the company; 75 were
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Women of Note
Carolyn Cheverine Senior vice president and chief counsel, industrial sector, Eaton
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arolyn Cheverine enjoys working as an in-house attorney because she likes to feel like she’s “helping the business.” If the company is looking to finish a contract with a client, she likes rolling up her sleeves and getting to work. “I have no qualms about working with them and staying and getting it done, because it’s sort of a win-win for everybody,” she said. “I think one of the reasons I went into transactional law versus litigation is, to me, in litigation, there’s no winners.” She continued, “Because even if you win the lawsuit, you still have to pay the legal bills, and usually, you’re not happy because of that. Whereas in (the) transactional world, usually both parties, someone wants to sell something and someone wants to buy something, and usually, you can walk away pretty happy. You might not be ecstatic, but it’s more of a win-win. So, I’m a glass-half-full person.” Cheverine earned her bachelor’s degree at the Wharton School at the University of Pennsylvania and her law degree at University of Virginia’s School of Law. She started her career at a firm in Seattle, but moved to the Cleveland area in 1994 to be near the hometown of her husband, Vince. She agreed, as long as she could get an in-house position, which she found with KeyCorp.
For raising a family, Cleveland is great, Cheverine said. It’s a “small big town,” and she’s been fortunate to find a series of good jobs. After KeyCorp., she went on to work for a number of local industrial companies (Noveon Inc., Lubrizol Corp. and Cliffs Natural Resources Inc.), before joining Eaton in 2014. The manufacturer is based in Dublin but has substantial operations in Beachwood. One thing that’s always been important to Cheverine — and something she’s advocated for at Eaton — is diversity and inclusion. She saw that there were only a few women in her business and accounting classes in college (she even joined a sorority, Kappa Delta, as a way to make more female friends), and saw a similar pattern again as a young attorney. And as the mother of two daughters, Caitlin and Beth, she said she doesn’t want to see her daughters go through the struggles her generation did. Eaton formally launched a women’s employee resource group the month Cheverine started, and she immediately reached out to get involved, as she had been involved in similar groups at other companies. She quickly ended up chairing the brand management committee. That work recently
“Women, I think more than men, want to see whether it’s an inclusive environment.” led to Eaton’s perfect score on the Human Rights Campaign’s Corporate Equality Index, which assesses LGBT inclusion in the corporate world. “Women look at best-of lists,” Cheverine said. “It doesn’t matter that it’s not, you know, working mothers magazine. Women, I think more than men, want to see whether it’s an inclusive environment.” And inclusion should be important to companies as the gender split in the workforce draws closer to 50-50, Cheverine said. Customers and clients are going to increasingly be women, and it’s helpful
to gain an understanding of how the genders may speak or understand things differently, she said. And diversity of all kinds can help a company improve its business, “because people look at things in different ways,” she said. Richard Goldfarb is a partner at Stoel Rives LLP in Seattle, where Cheverine started her legal career. Cheverine is someone with the ability to walk into a room and get to know people almost immediately, he said. She sticks to her morals and has a “spark to her,” he said. “She’s someone I have the highest regard for,” Goldfarb said. If she wasn’t working full-time, Cheverine said her husband jokes she’d be a “professional volunteer.” Currently, she’s involved in an organization focusing on a cure for Alzheimer’s, as well as Cleveland Play House. Outside of that, she stays active, particularly by playing tennis. Cheverine said she would like to be a general counsel someday, but it’s not the “end-all, be-all” of her career. She said she’s had the opportunity before, but she’d rather be at a company about which she feels passionate. “For me, it’s like, I want to make a difference,” she said. “I mean, that’s the bottom line.” — Rachel Abbey McCafferty Jason Miller/Pixelate Photography
Congratulations, Lisa Rose Our friend, colleague and favorite Woman of Note
w w w.dix- eaton .com
Strategic Business Communications
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Crain’s 2016
Women of Note
Debra Green Vice president, social responsibility and chief diversity officer, Medical Mutual of Ohio
D
espite giving hundreds of speeches and representing Medical Mutual of Ohio in the community, Debra Green still considers herself an introvert. “I’m OK with being behind the scenes,” Green said. “I’m very quiet. I’m more of a listener.” Asked 20 years ago, Green never would have expected to be an executive. In 1999, she shifted from human resources to the communications role when Jared Chaney, now Medical Mutual’s executive vice president and chief communications officer, “saw something in me that I didn’t see in myself,” Green said. Chaney joined Medical Mutual to help rebuild the company’s image after its departure from Blue Cross Blue Shield Association. Green was “perfect” to help him with that. “She has a pretty good empathy for things. She relates well,” he said. “She’s had some medical issues that she’s willing to talk about, and people can feel her compassion.” Green was diagnosed with breast cancer in the mid-1990s and organically became the informal go-to in the office for others diagnosed with the disease or those with loved ones battling the illness. “The cancer diagnosis and getting through that proved to me that God had a plan for my life,” said Green,
“One of those gifts that I have is that I connect, that I listen and that I care. Some people think that ain’t no big deal, but for the hurting, for the lonely, it is.”
who celebrated 20 years being cancer-free last year. “And my plan would be to be a walking testimony that cancer doesn’t have to be a death sentence.” Her role in community outreach has given her a chance for that. Even though she knows she represents Medical Mutual, she said she also offers a personal testimony about the importance of giving back and being there for others. “People can tell that she’s honest and sincere,” Chaney said. Green speaks on behalf of the insurance company at events and is responsible for all corporate contributions or grants to the community, nonprofits and other charitable organizations. She’s always thinking about how to be a good corporate citizen and whether people are glad Medical Mutual is in the community. “We need to be intentional about who we’re giving to, who we support, what organizations are important to us, what causes are important, but then also the diversity and inclusion piece,” Green said. She continued in communications and community outreach for Medical Mutual for more than a decade before leaving in February 2011 when she thought her husband’s job would move her
Jason Miller Pixelate Photography
out of the state. They ended up back in Cleveland, but not before her role was filled. Green worked for the Cleveland Clinic for about a yearand-a-half before Medical Mutual scooped her back up. “She left because she thought she needed to, but when things changed to the point where we could have her back, I didn’t look for anybody else,” Chaney said. “I knew who we wanted to have back.” When she got the call, Green was ecstatic. She longed to return, but didn’t believe it would happen. Since she rejoined the company, she’s continued to advance in community outreach. She became a vice president in January. In general, and for women in particular, Green said, it’s very easy to compare yourself to others. “I try not to. I try to just be happy — and I think that’s come with some growth,” she said. “I need to just focus on Deb … and being the best Deb I can be.” Still today, people stop by her office to talk. There’s something about her office, they tell her, and they just love talking to her. “I think that one of those gifts that I have is that I connect, that I listen and that I care,” Green said. “Some people think that ain’t no big deal, but for the hurting, for the lonely, it is.” — Lydia Coutré
INSPIRING TOMORROW
Forest City salutes the 2016 Women of Note honorees including our very own Geri Presti. Thank you for everything you do to make a positive impact in our community.
At Forest City, we’re dedicated to creating exceptional places where people live, work and shop. For more information, visit www.forestcity.net.
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Crain’s 2016
Women of Note
Robyn N. Gordon Director, center operations, NASA Glenn Research Center
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obyn N. Gordon says she is not one of the stars at NASA Glenn Research Center. But she does do a lot to make those stars shine. Gordon is director of center operations at NASA Glenn Research Center. That means she’s in charge of a lot of the things you might not normally associate with space exploration. Stuff like security, logistics, communications and even NASA Glenn’s education programs. That’s fine by her. Gordon never wanted to be an astronaut. She was always more interested in somehow serving the public in an administrative role. So she’s glad to play a support role for NASA Glenn researchers trying to create new technologies. Gordon still thinks it’s cool to meet people who’ve come up with breakthroughs that are actually impacting people’s lives. For instance, every now and then she runs into Robert Romanofsky, who helped develop an inflatable antenna system that’s used to provide communications during natural disasters such as the earthquake that rocked Haiti in 2010.
“You get to work with people who have big ideas and actually get to foster those big ideas into reality.” “You get to work with people who have big ideas and actually get to foster those big ideas into reality. … I just can’t think of a better place to work,” she said. Gordon didn’t always imagine she’d find her dream job at NASA. She got interested in human resources after taking an introductory labor law class at Cleveland State University in the early 1990s. She went on to earn a bachelor’s in human resources management and an MBA from Cleveland State. She worked for the Cuyahoga County Public Library and the city of Cleveland before becoming NASA Glenn’s human resources director in the early 2000s. Gordon was a city labor relations officer focusing on Cleveland Hop-
Celebrating Women’s Boundless Potential Thompson Hine LLP is pleased to congratulate the
2016 Crain’s Cleveland Business Women of Note honorees. We are inspired by the women leaders in our community, whose accomplishments encourage all of us to push past limits and achieve our dreams.
kins International Airport when someone forwarded her the NASA job opening. She wasn’t interested — at first. “They said, “Hey, this is the job of a lifetime. You should at least apply.’ So I did,’” she said. That decision opened some big doors for Gordon. For one, she ended up getting a string of promotions — she also served as diversity director and deputy director of center operations before taking her current position. Plus, NASA put Gordon through its leadership training program. She spent half of the 18-month-long program working as an executive officer under Shana Dale, who at the time was second-in-command at NASA headquarters. It was an “unparalleled experience,” Gordon said. Not only did she learn a ton about NASA, but Dale taught her a lot about learning to face her fears — a useful skill, when issues from throughout the agency are being funneled to you. “You’re challenged in a way you never thought you would be. Because people expect you to know, or if you don’t know, to figure it out. There’s not a lot of question-asking at that lev-
EVANS
CONTINUED FROM PAGE 15 business and to Cleveland State University for her law degree and MBA. After graduation, she went on to work in Calfee, Halter & Griswold LLP’s securities group and then the corporate group at Benesch, where she focused on mergers and acquisitions in a variety of industries. A few months after Republic became a client of Benesch’s, she received the offer to become its general counsel. Now, she’s been with Republic for nearly four years. As executive vice president, general counsel and secretary, Evans’
el. … You have to become smart about a lot of things very quickly,” she said. Former NASA Glenn director Woodrow Whitlow helped Gordon get into the leadership program, and later he ended up selecting her to become director of center operations after advertising the job. Gordon is “extremely knowledgeable about her position” and has a strong work ethic, Whitlow said. She also tells it like it is, no matter who she’s speaking to: Whitlow described how she used to push him to get his security clearance paperwork filed on time. It didn’t matter that he was center director. “It doesn’t matter who you are, what your position is or what your rank is. She’s going to always tell you the truth,” he said. Gordon loves reading, gardening, traveling and hanging out with friends. And she still works to serve the public, even in her off hours. For instance, as a board member with the Sisters of Charity Foundation, she has recently worked on projects designed to help inner city Cleveland residents gain access to fresh, healthy food. “We have a rich medical community here, but we don’t have the best legacy of health for people in Cleveland,” she said. — Chuck Soder
days are never the same. She has to be versatile in order to balance the different parts of her job at Republic Steel. She’s part of the company’s executive team, making decisions that affect its strategy. And her role has expanded beyond legal counsel since she joined the company. In 2012, she started overseeing labor relations initiatives. And throughout 2013, she received responsibility for the areas of human resources and environmental, health and safety. That means she’s in charge of overseeing everything from the implementation of a new, electronic legal database to efforts to decrease injury rates to the introduction of a wellness program for salaried employees. It seems like a good fit for
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Micki Byrnes President and general manager, WKYC Media
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icki Byrnes entered the University of Maine as a college freshman ready to become a forest ranger. Three first-semester science classes gave her a different perspective on that prospective career: “Hell no.” A different class — Introduction to Broadcasting — helped her see the forest for the trees and launched Byrnes into a 40-year career in television that has taken her all over the country, eventually settling into the top job at WKYC overseeing more than 175 employees. She fondly recalls her early days in the business as part of the production crew at a small station in Worcester, Mass. — “They called me swish-pan Byrnes,” she said, of her then less-than-polished technical style — and later as the only woman on a 12-person sports crew covering events like Holy Cross basketball and snowmobile races. “I wouldn’t call it hazing, but there was testing,” she said of the crew members, who ultimately “were really nice. I learned a lot.” TV’s a good fit for the gregarious and energetic Byrnes, who became president and general of WKYC in December 2014 after 17 years with the station, owned by Gannett
Broadcasting. (WKYC now is part of a Gannett spinoff, Tegna Inc.) Before coming to Cleveland in 1997 as WKYC’s director of marketing and promotion, she held management jobs in Orlando, Fla., San Francisco, Atlanta and Boston. The Atlanta job, in particular, was a turning point, since she was recruited to it by Brooke Spectorsky, a longtime television executive who became a mentor to Byrnes and, eventually, her husband. It was when Spectorsky was recruited to a San Francisco station that he asked her to marry him — and Byrnes worried, “I might not be able to work in local TV again.” The San Francisco station’s owner was willing to have them work together, and since then, “we’ve moved as a package deal,” Byrnes said. (It was Spectorsky she succeeded at WKYC in 2014.) Spectorsky, now retired, said Byrnes has succeeded in a tough industry because she adapts well to change — and television, like most of the media world, is in a period of rapid transformation — and has the empathy required “to understand people’s needs and to work well with creative people.”
Evans, who said one of the things that drives her is the idea of getting to improve the company. “I’m excited to come to work every day because I’m constantly learning and making improvements here that I can see,” she said. “And it feels like I’m making a difference, which is always enlightening.” Outside of work, Evans and her husband, Zak Schweda, love to travel in and out of the United States. Her favorite trip was their honeymoon in Africa. They went on a safari, and Evans said it was amazing to see the animals up close in their natural habitats. Education also is one of her priorities. She serves on City Year Cleve-
land’s board of directors, and one of her goals is to help the organization increase its funding to further raise awareness of the program. She also serves on ACG Cleveland’s board and said she was part of the group that helped start Young ACG Cleveland. Evans is “engaged,” “committed” and always looking for opportunities to grow, said Manny Viadero, executive vice president for finance and IT for Republic. She makes sure Republic Steel’s policies match its culture and values, he said, and is a pleasure to work with. “She’s going to be a huge benefit to anybody who has the privilege of working with her,” Viadero said. — Rachel Abbey McCafferty
“These are the kind of times you live for in the news business.”
“She’s more flexible than I’ve ever been, and that’s just critical now,” he said. Atypically for the TV station business, Byrnes is from the marketing side of the operation rather than the sales side. Byrnes said her background in marketing gave her a sense “of how all elements of an organization work” and ultimately sharpened her ability to run a station. Television “isn’t going away in my lifetime,” Byrnes said, but station heads responsible for producing quality local news programming have to be mindful of how consumers’ preferences for consuming information are changing. That means, for instance, that many stories only begin when they’re broadcast on one of WKYC’s news programs; they need constant updating on the web, and much more news is streamed live on the station’s website than ever was available in traditional broadcast formats. She sees the role of WKYC’s
news team as being “stewards of smart stories and information” — a job made easier by the presence of veteran anchor Russ Mitchell, managing editor of the station’s evening newscasts, and other talented people in front of and behind the camera. An election year is always big in the TV news business, but Byrnes notes 2016 is particularly busy for WKYC, with the summer Olympics on NBC and the Republican National Convention coming to town. “These are the kind of times you live for in the news business,” Byrnes said. She said she’s proud that the TV business she entered with virtually no women in position of authority has improved markedly in that regard. At WKYC, she said, there are more women than men as department heads, and within Tegna, where she reports to a woman, there now are 10 women GMs at 46 stations. “I think things have significantly changed for the better,” she said. Byrnes and Spectorsky have two grown children, Kate and Alex, and live in Chagrin Falls. — Scott Suttell
Anne C. Goodman President and CEO Saint Luke’s Foundation
2016
Woman of Note She is passionate, courageous and dedicated to real change in the Cleveland area. From improving and transforming the health and well-being of individuals, families and communities, Saint Luke’s Foundation President and CEO Anne C. Goodman embodies the vitality and spirit of Cleveland. We enthusiastically congratulate Anne for being a 2016 Woman of Note!
To learn more about Saint Luke’s Foundation and our grantmaking, call us at (216) 431-8010 or visit saintlukesfoundation.org.
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www.ClevelandFoundation.org/Purpose
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Turning Passion Into Purpose W I T H T H E C L E V E L A N D F O U N D AT I O N WOMEN OF NOTE LEGACY AWARD
Jacqueline F. Woods As a trailblazer, role model and philanthropic leader, retired A
Ohio
president is recognized for turning passion into purpose for generations of women. After starting out as a customer service instructor, moving 14 times, living in three different cities apart from Cleveland and becoming the first female president of a major public utility company, Jacqueline F. Woods has learned a thing or two about business. But that’s just the beginning of the story. Her philanthropy, community involvement and impact on other professionals are what make her the inaugural recipient of the Cleveland Foundation’s 2016 Women of Note Legacy Award, an honor designated for outstanding Greater Cleveland women who have given their time, talent and treasure to meet community needs and who have supported the next generation of female leaders in Cleveland.
organization’s governance and its strategic direction, even more than a decade after her term. “She was a magnificent board member,� Richard said. “She really could write a book on how to get to ‘yes,’ how to negotiate, just with her personal magnetism and style.�
In addition to the foundation, Woods has served on more than 20 civic and NONPROlT BOARDS INCLUDING +ENT 3TATE University, the Greater Cleveland Chapter of the American Red Cross, Playhouse Square and the Great Lakes Science Center. She is presently a trustee with University Hospitals Case Medical Center and the Cleveland Bluecoats Inc. as well as the Ronn Richard A s s o c i a t i o n PRESIDENT AND CEO of Governing CLEVELAND FOUNDATION “She really Boards and loves to mentor Muskingum people,� said University, where she received her Ronn Richard, president and CEO undergraduate degree in psychology of the Cleveland Foundation. and communications. She later “She’s a very a warm person. Her earned an executive masters degree in interpersonal skills are second to BUSINESS FROM THE +ELLOGG 3CHOOL AT none. She’s just an amazing person Northwestern University. at reading people, understanding In the corporate sector, Jackie PEOPLE AND INmUENCING PEOPLE v currently serves as a director of The Richard also notes Jackie’s considerable Timken Company, The Andersons, influence on the community while Inc. and was formerly on the chair of the Cleveland Foundation boards of School Specialty, Inc. and /FlCE -AX Board of Directors, including the
Her interpersonal skills are second to none. She’s just an amazing person at reading people, understanding people BOE JOnVFODJOH QFPple.�
During her tenure with AT&T, she HELD POSITIONS IN lNANCE OPERATIONS marketing, sales and government affairs and oversaw the transformation from a regulated utility to a consumer driven competitive communication company. It’s no coincidence that in 2000, the same year she retired, Jackie and her husband, John “Jack� Woods, established a donor-advised fund with the Cleveland Foundation. “Jackie approached philanthropy as an encore to her career of managing and measuring impact as a company PRESIDENT v SAID +AYE 2IDOLl SENIOR vice president of advancement with the Cleveland Foundation. “She and Jack have been incredibly thoughtful and strategic in their giving.� The couple has seen the fund grow through their own contributions and THE FOUNDATION S lNANCIAL INVESTMENTS and they have experienced the joy of extending grants to a variety of charitable causes along the way. Their focus is often on healthcare and education, which Jackie notes are cornerstones of personal and professional wellness. “When I first started learning and working with the Cleveland Foundation, I was just so impressed,� Jackie said. “I really believe it is the finest nonprofit organization, probably nationally, but absolutely in Northeast Ohio. And that is because they have the talent and the resources to work in multiple areas at the same time and produce big impacts.� Today, the Woods’ philanthropy is in its third generation. Jack and Jackie raised two daughters, Stephanie Dorsey and Nicole Gray, who are successful local business women in their own right, and they have four grandchildren. “I was initially trained as a teacher,� Jackie said. “So now I have the opportunity, in a very personal way, to help teach philanthropy to our family. My daughters already know it. Their husbands already know it, but we have these young grandchildren. And so we sit, and we talk about as a
Jacqueline F. Woods served on the Cleveland Foundation Board of Directors for a decade, including a term as Board Chair from 2006-2008. She was instrumental in advancing the foundation’s work in economic development, globalization and alternative energy. family, why would we want to give to this organization or that organization? What do they do that matters? And to have a six year old say back to you ‘They help feed people,’ or ‘They
And that’s passion in perpetuity.
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Establish a routine and stick with it - don’t cut into your own sleep, nutrition or exercise. Get your family on a schedule too! “Part of my life, I lived on chocolate and four hours sleep. That’s not really the best thing to do.�
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Say “I got it, boss!â€? to opportunities for increased responsibility and leadership, and have conďŹ dence in your abilities. “One of the things that I’ve learned I should have done dierently was moved at a faster pace.â€?
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Allow yourself to compartmentalize your thinking and focus on obligations one at a time. Make an eort to be fully present and in the moment.
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Choose volunteer opportunities and board appointments that you are interested in and passionate about, that align with your corporate mission and that allow your family to be involved - particularly with evening and weekend events and other commitments.
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Laugh every day! “Really build a plan for yourself that incorporates the things that make you successful and make you happy.�
To learn more about giving through the Cleveland Foundation, please call 877-554-5054.
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teach people to read’ or ‘They make life better for somebody’ is a very powerful message that they will carry with them the rest of their lives.�
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Crain’s 2016
Women of Note
Loretta Mester President and CEO, Federal Reserve Bank of Cleveland
T
hroughout Loretta Mester’s life, friends and mentors have always seen a special quality in the humble mathematician turned central bank leader. Mester was encouraged to study economics by a duo of Princeton University professors when heading through grad school. After college, she was drawn to the Federal Reserve Bank of Philadelphia, where she helped transform its research department. And it was a search committee in Ohio that recruited her to lead the Cleveland Fed as president and CEO in 2014. That’s a notable achievement in itself. As a regular voting member of the Federal Open Market Committee, Mester helps determine public and monetary policies designed to keep the United States economy running smoothly for some 320 million Americans — something the Baltimore, Md., native takes to heart. “I really care about the public service aspect of monetary policy,” Mester said. “And when I think of the caliber of people I’ve met in the Federal Reserve system, they’re caring about public policy because it affects real people. That’s what impressed me and continues to impress me. “I was honored to be invited to be president at one of these institutions. It just seemed like the right thing to do for me.” The Fed president is in good com-
“You have to simply be willing to be there, to volunteer for things, to be open minded and willing to learn.”
pany with other female leaders of the bank, which oversees 950 employees in Cleveland, Cincinnati and Pittsburgh. She’s the third woman to lead the institution, following her predecessor Sandra Pianalto (who served from 2003 to 2014) and Karen Horn (1982 to 1987). But it was her “magical touch” that drew the search committee to her, said Chris Connor, executive chairman of Sherwin-Williams and also board chair for the Cleveland Fed who led the group that recruited Mester to Cleveland. “She’s not only a phenomenal economist with a stellar reputation in the field; she’s also an outstanding communicator and a remarkable leader able to motivate some 1,000 employees at the Cleveland Fed,” Connor said. “She has the touch to be warm and engaging, but also brings all that incredible intellectual horsepower to the table.” When Mester talks, people listen, Connor added — that’s a pretty helpful quality considering the president’s rigorous public speaking schedule. “Loretta is a rock star,” he said. As far as how Mester established a reputation for herself among a crowded field of sharp, illustrious economists, she believes there’s really no secret. “Working hard is a lot of it,” she said. “You have to simply be willing to be there, to volunteer for things, to be open minded and willing to learn. “But you also have to set high standards, not only for yourself, but for the people around you.” Mester, a generally open and outspoken member of the FOMC, often does that herself with every speech she gives, attempting to “raise the bar” each time. She said she appreciates the significance of those events because it’s her opportunity to keep the bank accountable in the public eye, shedding light on the thought processes behind the central bank’s decision making. Ever-committed to transparency, she’ll sometimes quip that she’s doing something right when her audiences run out of questions to ask her following a speech. That might also stem from her affection for academia. She remains an adjunct professor of finance at the Wharton School of the University of Pennsylvania and is a fellow at the Wharton Financial Institutions Center. If not working as an influential economist today, Mester said she’d probably be a mathematics professor. In fact, her advice to both men and women, whether aspiring to a similar role as herself or just pushing for success in their own lives, is quite simple: study math. But as far as being a good leader goes, it all comes down to being in tune with others and fostering an atmosphere for people to succeed. “It’s creating an environment so that people can perform at their highest level,” she said. “You have to give the encouragement and tools and everything so they’re able to do that. That’s what a good leader will do.” — Jeremy Nobile Jason Miller/Pixelate Photography
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35th Anniversary
PROMOTE.
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CLEVELAND BUSINESS VOL. 36, NO. 47
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ALLYSON O’KEEFE, 37 Partner; Porter Wright
35th Anniversary
CLEVELAND BUSINESS
VOL. 36, NO. 47
NOVEMBER 23 - NOVEMBER 29, 2015 Allyson O’Keefe started her legal career at Porter Wright in 2004 after completing a summer internship there as a Case Western Reserve University law student. Since then, she has worked on many significant deals across Cleveland, including Flats East Bank, The Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been promoted to real estateALLYSON partner. O’KEEFE, 37 “Young professionals who live downtown are so excited about the city,” said O’Keefe, a Partner; Porter Columbus native who lived downtown forWright 10 years before moving to Rocky River. “The ones who aren’t from here are often more excited about it. When you move here from somewhere else, you don’t for granted.” VOL. 36, NO. take 47 it Allyson NOVEMBER 23 - NOVEMBER 29, 2015 O’Keefe started her legal career at Porter Wright in 2004 after completing a sumWhen O’Keefe is not working or spending time with her husband and two children, she can mer internship there as a Case Western Reserve University law student. Since then, she has be found volunteering on the boards of nonprofit organizations and watching college football. worked on many significant deals across Cleveland, including Flats East Bank, The Metropolitan at the 9, Uptown in University Circle and Steelyard Commons, and has been proWHAT INSPIRES YOU ABOUT YOUR WORK? moted to real estateALLYSON partner. O’KEEFE, Just seeing what Cleveland has gone through in the time that I’ve 37 been here, there’s obvious“Young professionals who live downtown are so excited about the city,” said O’Keefe, a ly a lot of excitement around real estatePartner; development. I started in 2004 when we were crazy Porter Columbus native who lived downtown for Wright 10 years before moving to Rocky River. “The ones busy with development. That was sort of the boom from ’04 through ’08. I saw it go through who aren’t from here are often more excited about it. When you move here from somewhere the downturn, then I saw it rise again, even stronger than before locally. else, you don’t take it for granted.” Allyson O’Keefe started her legal career at Porter Wright in 2004 after completing a sumWhen O’Keefe is not working or spending time with her husband and two children, she can mer internship as a Case Western Reserve University law student. Since then, she has WORKED ON there ARE MIXED-USE URBAN PROJECTS. IS MANY OF THE PROJECTS YOU be found volunteering on the boards of nonprofit organizations and watching college football. worked on many significant deals across Cleveland, including Flats East Bank, The THAT AN AREA OF EXPERTISE? Metropolitan at the 9, Uptown in every University and Steelyard Commons, and has been proYes, definitely. Real estate is extremely interesting because deal Circle is differWHAT INSPIRES YOU ABOUT YOUR WORK? moted to real estate ent. You can never get bored because there’s so partner. much variety there, from tax Just seeing what Cleveland has gone through in the time that I’ve been here, there’s obvious“Young who live downtown so excited about the city,” said O’Keefe, a credits to historic renovations, from professionals ground-up development to rehab, are from ly a lot of excitement around real estate development. I started in 2004 when we were crazy mixed-use to residential. Columbus native who lived downtown for 10 years before moving to Rocky River. “The ones busy with development. That was sort of the boom from ’04 through ’08. I saw it go through who aren’t from here are often more excited about it. When you move here from somewhere the downturn, then I saw it rise again, even stronger than before locally. else, you LEADERSHIP don’t take it for granted.” HOW WOULD YOU DESCRIBE YOUR STYLE?
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O’KeefeI expect is not working or spending timeI work, with her husband and two children, she can I definitely believe in leadingWhen by example. the people with whom MANY OF THE PROJECTS YOU WORKED ON ARE MIXED-USE URBAN PROJECTS. IS be found volunteering on the very boards of nonprofit and watching college football. my associates, to work hard, and they see me working hard. For me, it’sorganizations all THAT AN AREA OF EXPERTISE? about working hard and doing good work. Yes, definitely. Real estate is extremely interesting because every deal is differWHAT INSPIRES YOU ABOUT YOUR WORK? ent. You can never get bored because there’s so much variety there, from tax Just WHAT seeingWAS whatITCleveland has gone the time that I’ve been here, there’s obviousWHAT OTHERS ARE SAYING: LIKE TO WORK WITHthrough O’KEEFEinON credits to historic renovations, from ground-up development to rehab, from ly a lot of excitement around real estate development. I started in 2004 when we were crazy THE FLATS EAST BANK PROJECT? mixed-use to residential. busy with development. of the boom from ’04 through ’08. I saw it go through “Allyson is extremely bright and quick witted, butThat whatwas trulysort distinguishes her the downturn, then I saw itpeople rise again, even from most successful attorneys is her exceptional skills. Shestronger has an than before locally. HOW WOULD YOU DESCRIBE YOUR LEADERSHIP STYLE? uncanny ability to encourage the ‘adversaries’ in her negotiations to work in I definitely believe in leading by example. I expect the people with whom I work, OF THE PROJECTS YOU WORKED concert with her to achieve win/win MANY solutions to difficult problems,” said ON ARE MIXED-USE UR my associates, to work hard, and they see me working very hard. For me, it’s all THAT AN AREA EXPERTISE?of the Scott Wolstein, CEO of Starwood Retail Partners andOF co-developer about working hard and doing good work. Yes, definitely. Real estate is extremely interesting because every deal is differFlats East Bank project. ent. You can never get bored because there’s so much variety there, from tax — Lee Chilcote WHAT OTHERS ARE SAYING: WHAT WAS IT LIKE TO WORK WITH O’KEEFE ON credits to historic renovations, from ground-up development to rehab, from THE FLATS EAST BANK PROJECT? mixed-use to residential. “Allyson is extremely bright and quick witted, but what truly distinguishes her successfulInc. attorneys is reserved. her exceptional people skills. She has an Reprinted with permission from the Crain's Cleveland Business. © 2015from Crainmost Communications All Rights YOU DESCRIBE YOUR LEADERSHIP STYLE? HOW WOULD ability to encourage the ‘adversaries’ in her negotiations to work in Further duplication without permission is prohibited. Visituncanny www.crainscleveland.com. #CC15040
I definitely believe in leading by example. I expect the people with whom I work, concert with her to achieve win/win solutions to difficult problems,” said my associates, to work hard, and they see me working very hard. For me, it’s all Scott Wolstein, CEO of Starwood Retail Partners and co-developer of the about working hard and doing good work. Flats East Bank project.
— Lee Chilcote WHAT OTHERS ARE SAYING: WHAT WAS IT LIKE TO WORK W THE FLATS EAST BANK PROJECT? “Allyson is extremely bright and quick witted, but what truly distinguishes her successfulInc. attorneys her exceptional people skills. She has an Reprinted with permission from the Crain's Cleveland Business. © 2015from Crainmost Communications All Rightsisreserved. ability to encourage the ‘adversaries’ in her negotiations to work in Further duplication without permission is prohibited. Visituncanny www.crainscleveland.com. #CC15040 concert with her to achieve win/win solutions to difficult problems,” said Scott Wolstein, CEO of Starwood Retail Partners and co-developer of the Flats East Bank project.
Reprinted with permission from the Crain's Cleveland Business. © 2015 Crain Communications Inc. All Rights reserved. Further duplication without permission is prohibited. Visit www.crainscleveland.com. #CC15040
THE CITY OF SHAKER HEIGHTS congratulates its
WOMEN OF NOTE
HONOREES Building the region’s future through inspired leadership today.
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Crain’s 2016
Women of Note
Michele Connell
Lisa Rose
Managing partner, Cleveland, Squire Patton Boggs
President, Dix & Eaton
I
n what remains one of the country’s least diverse and still male-dominated industries, Michele Connell is blazing a trail — not only for herself and her firm, though, but for all women in the legal field. Connell, a partner in Squire Patton Boggs’ global corporate practice, became managing partner this year of the firm’s Cleveland office where the legacy Squire Sanders Dempsey was founded in 1890. That was a landmark day in itself. Connell is not only the firm’s first woman to serve as an office managing partner in the United States, she’s also believed to be the youngest partner to take on the role at the global firm in this country. Although Connell never really concerned herself with any proverbial glass ceiling as a young attorney, she humbly acknowledges the path she’s setting today. “For one, you can’t be discouraged by the numbers,” she said, regarding advice she shares with other women. “There are many people working Jason Miller Pixelate Photography
“It’s important to see women in a position of leadership, and I like to represent that positive message.”
on this issue and around this you may see or you may not, but that doesn’t mean it’s not happening.” Ultimately, the problems with diversity are very much solvable ones, she said — but that doesn’t diminish their significance. “This is not specifically a women’s issue. It’s not a legal community issue. It’s an issue that percolates through the country,” she said. “We’ve made some advances in our profession, but there’s still room to grow. “It’s important to see women in a position of leadership, and I like to represent that positive message.” It’s really no surprise Connell rose to the top of her firm, said David Goodman, the Cleveland office managing partner who preceded Connell and pushed for her to take the position. Her reputation as a lawyer coupled with her uncanny ability to connect with others made her a natural fit, he said. Prior to law school, after all, Connell, a Pennsylvania native, served as a foreign service officer for the U.S. Department of State. She worked at American embassies in Warsaw, Poland, and Tegucigalpa, Honduras. SEE CONNELL, PAGE 29
W
hen Lisa Rose was hired by Dix & Eaton in 1996, she thought she’d move on to another job before the end of the decade. In January, Rose was promoted to president, just a couple months shy of her 20th anniversary at the Cleveland communications and public relations firm. “It was supposed to be a two-year stint,” Rose said of her Dix & Eaton tenure. “It was going to launch my career. I never expected that I would be hanging out this long.” Rose started her post-collegiate life as a financial analyst, then worked as an investor relations manager for a year. But it wasn’t until she joined Dix & Eaton that she truly felt like she found a career fit. “When I started at Dix & Eaton, I didn’t start out to be president,” she said. “I just was always kind of an overachiever and always wanted to grow. Each time I’ve been promoted, there’s always been fear. “OK, I gotta take on this new role.’” The roles have varied — from account executive, to vice president, to managing director, to president. Along the way, Rose has taken great pride in helping others advance at the firm.
“Each time I’ve been promoted, there’s always been fear. ‘OK, I gotta take on this new role.’ ”
She has established educational and development programs for women at Dix & Eaton, and the company said Rose maintains an “informal group” of women she’s met via networking. For them, she serves as a mentor and sounding board. “She’s that rare person who wants to share those experiences and help grow the skills of others,” Dix & Eaton CEO Chas Withers said. “Within Dix & Eaton, she’s a role model on how to comport yourself as a professional.” Rose said she was never a vocal leader. What she’s always been, she said, is an interested and informed observer. “I had to learn in my role to step out,” Rose said. “What I had going for me was I knew how to listen. That’s something that I think is underrated, but it’s something I think that’s really helped me in my career. It’s so important to really deeply listen and learn.” As president of the firm, Rose partners with Withers on client service, practice and talent development, and professional partnerships. Her SEE ROSE, PAGE 29
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Business of Life
Area cigar sales still glow red hot BY DAN SHINGLER E-cigarettes might be the hottest thing among young nicotine heads or former cigarette addicts, but for the true tobacco connoisseur, a cigar remains the preferred way to make a cloud. And that has kept some longtime Cleveland-area cigar shops rolling, long after the cigar craze of the 1990s has faded into memory and into the era of Internet shopping — and outlasting more than a few anti-tobacco campaigns. “The industry is doing well, and so are we,” said Nick Sciarabba, who for the last 16 years has owned, managed and run Port Royal Cigars in Solon, affectionately known to many long-time customers as PR Cigars, or simply PR’s. The store sells exclusively high-end cigars, and it’s one of the largest U.S. sellers today of the famous Nicaraguan Perdomo cigars, Sciarabba said. Business is just about to pick up, Sciarabba said, because as the weather gets nicer, more of his customers will be lighting up on golf courses, at backyard cookouts and other outdoor events. “No one smokes in their house anymore. … I don’t even smoke in my house,” Sciarabba said. Cousin’s Cigar on St. Clair Avenue in downtown Cleveland is doing similarly well, said longtime manager Sam Cheyfitz. The store had to move in 2013, when Cleveland State University bought its old building on Superior Avenue and enforced the school’s no-smoking policy, evicting Cousin’s in the process. The new store is a bit smaller, but it’s just as busy selling Fuente, Ashton and Punch cigars, among dozens of other brands. It even began producing its own brand of cigars, YO, in Nicaragua earlier this year. “We have no complaints. It’s been a nice move for us,” Cheyfitz said. “We sell a lot of imported cigars and imported pipe tobaccos.” The cigars carried by Port Royal and Cousin’s are not the kind the owners say are likely to attract many teen smokers, or to be bought just so that someone can remove their outer layer to roll a marijuana “blunt.” Sciarabba said his average cigars sell for between $7 and $9, with some approaching $20. And the e-cigarette craze appears to be affecting a different audience as well, as Sciarabba said he has noticed “no effect at all” from that trend. But the business does have its challenges. The Internet is the biggest competitor to local cigars and a chief complaint of store owners like Sciarabba. “I’m all for competition, but I’m for fair competition,” he said. “And it’s not fair that when someone buys cigars online, they don’t pay the Ohio tobacco tax.” That tax, he said, amounts to 17% of the cost of his product. For a box of 20 or 25 cigars, it adds up.
Port Royal Cigars in Solon is one of the largest U.S. sellers of Nicaraguan Perdomo cigars. (Dan Shingler photos)
Thousands of cigars are kept at 70% humidity in PR’s humidor.
Owner Nick Sciarabba of Port Royal Cigars expects business to pick up as the weather warms.
Still, offering regular customers a consistent supply at fair prices, and a place to light up when they want to, keeps local shops open and busy, according to their owners. True, the shops are not nearly as crowded as they were about 15 years ago. But that’s not necessarily a bad thing, vendors say. Between about 1993 and 2000, they say, the industry was too hot. Cigar makers could not keep up with demand and, as a result, too many inferior cigars made it to market. “It takes three to five years to make a really good cigar,” Sciarabba said. “It’s not good to sell people green bananas. … Now, the quality is consistent.”
So what’s next for the industry that is as old as the nation itself? For one thing, Cuba. After more than 50 years, the island nation appears like it may soon be able to sell its famous cigars in the United States again. But it might be too late. Countries like the Dominican Republic and Nicaragua have caught up with Cuba in terms of the quality of their tobacco, many now believe. Also, many of Cuba’s best cigar rollers have left to take up their trade in these nations. “Eventually, we’ll have Cuban cigars,” Cheyfitz said. “But to me — and this is just my opinion — the cigars we have today are even better than the Cuban cigars.”
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BUSINESS OF LIFE
Source Lunch Ivan Schwarz came to Cleveland in 2006 as vice president of the Greater Cleveland Film Commission. He took over as president a year later, replacing Chris Carmody after a career of nearly 20 years behind the camera in the movie and television industry. At the time, he was location manager for the HBO series “Entourage.” Before that, he was co-producer with Tom Hanks and Steven Spielberg on the HBO miniseries “Band of Brothers.” Most of his film industry career was traveling the world looking for movie locations. Schwarz got some good news in April when Cleveland State University announced it would establish the state’s first film school, thanks to $7.5 million from the state’s capital budget. He’s still waiting, though, for something just as important — the passage of House Bill 475, which would make it easier to convince filmmakers to shoot all or part of their movies or TV shows in Ohio.
Ivan Schwarz
As much as he is a film industry promoter, though, he is a Cleveland booster. — Jay Miller
What is it you like about Cleveland? I’ve said from the day I got here, we’re an untapped resource. We have assets here that are spectacular. I loved the sense of community I saw here at first, and it’s still what draws me here. How did you get in the movie business? I was 26 and I was working at a bar (in Los Angeles) and I knew somebody who knew somebody in the film industry, and his name was Anthony. And I was talking to Anthony every day and one day he said, “Can you be on the set at 6:15 tomorrow morning? I have a job as a PA (production assistant) for a year.” The movie was “CHUD II.” The day I walked on the set and they started shooting, I couldn’t imagine being anyplace else. It’s funny, you don’t know what you want to do with your life until you know. I just remember going, ‘This is it,’ even though I didn’t know what everybody did. And after that? When the movie ended, I got a job as a production assistant for the movie’s production company in the office. Then the company needed a warehouse for a movie location and they didn’t want to hire a location manager, and I said, “What’s a location manager?” And I never looked back.
So then you flew around looking for places to shoot movies? It’s taken me all over the world. I spent five years in London working on “Band of Brothers.” The work has taken me to India, Thailand, all over Europe. I got to see the world and meet amazing people. Then, I ended up back in L.A. When was your first visit to Cleveland? I scouted Camp Perry (the former Army base near Port Clinton) as a possible location for “Band of Brothers” (in 1999) and I met Chris Carmody. Cleveland really resonated with me. How did you get the job here? I was working on “Entourage,” (another HBO series that first aired in 2004) and I had lunch with Carmody, who was looking for his replacement. We’d had our first child and we knew we didn’t want to raise a child in L.A., we knew that. So I decided to give it a shot. We kept our house in L.A., but if we didn’t like Cleveland, we were going to move to London (his wife Katia’s hometown). What does the region have that is attractive to filmmakers? We have such a diversity of
locations in architecture, in topographical diversity that people can shoot anything here. We have a producer coming here at the end of summer; it’s his sixth movie here. The fact that you can do six movies here is great. H.B. 475 would increase the amount of state tax credits available from $20 million a year to $75 million a year and film companies can use the tax credit to reduce the cost of production. Why is that increase important? Let’s say you’re a film producer and you call me and I have to say, “We’re tapped out. We’ve spent our limit for the year.” We’ve had to say it and it kills me. I know of movies that would have shot here if we had more tax credits available. There’s a movie, “Mother’s Day,” with Julia Roberts and Jennifer Aniston. They weren’t looking anywhere else. Then their budget went up to $35 million and we didn’t have enough credit money and they went to Georgia. They went to Georgia, literally in a day. It was ours to lose. What’s an example of the economic impact of movie production in Northeast Ohio? It’s like a big political convention every year — 70,000 hotel room nights.
FILM INDUSTRY
FOUR THINGS: ON-SCREEN FAVORITES Schwarz’s all-time favorite movies are “The Godfather” and “Godfather Part II.” His all-time favorite television series is HBO’s “The Wire.”
BEST MOVIE LOCATIONS “We didn’t shoot in India, but India was spectacular; Thailand was spectacular; Zell am See, Austria; those are probably the three best.”
LIVING IN LONDON “I loved living in London because of its proximity to the rest of Europe — not that I loved London but that I loved going to Prague for the weekend, or to Budapest for a weekend.”
LUNCH SPOT Map of Thailand 3710 Payne Ave. Cleveland
The meal Green curry with chicken for one, and chicken pad Thai for the other
MOVIES WRITTEN WITH CLEVELAND IN MIND AND SHOT HERE
The vibe
“Fun Size,” Draft Day” and “Jenny’s Wedding”
The bill
Sleek and modern in an old industrial neighborhood
$18.40, plus tip
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That experience translated incredibly well to her work as an attorney. Her reputation quickly began to precede her. Even as a junior lawyer, clients began asking specifically whether Michele was involved in certain, high-level, often international mergers and acquisitions. “Corporate colleagues are always impressed and amazed that she not only keeps her calm in the midst of transactions with a number of moving parts,” Goodman said, “but also how she’s able to give clients difficult advice — advice she knows they may not want to hear.” Connell is uniquely diplomatic in that sense and carries herself with a “quiet confidence,” he said. Goodman referenced a difficult decision made during a particular transaction that made a client leery. They specifically asked if Connell was involved. After learning she was, they gave the firm the benefit of the
“It can be scary, but so very much worth it, especially when you’ve got the right support around you. If you don’t play the game, you can’t win.” — Michelle Connell, on leadership opportunities for women
doubt, satisfied Connell had their best interests in mind. “He was impressed with her and was looking for some assurance,” Goodman said. “To have that level of confidence … that’s something of significance. Earning that level of trust and confidence is something all of us aspire to in whatever kind of law we practice.” Beyond being a stellar lawyer also
advocating for women in her profession, Connell is constantly involved civically in Cleveland. She has chaired women’s leadership conferences for the Case Western Reserve University School of Law and championed for the school’s inclusion in the Squire Patton Boggs Foundation Fellowship Program that pairs students with public interest work during the summer both nationally and internationally. She’s also a member of United Way of Greater Cleveland’s Women’s Leadership Council and serves in leadership of DirectWomen, a national nonprofit that advocates for the representation of women lawyers on corporate boards — among a variety of other efforts. As far as wisdom for women aspiring to similar leadership roles, she said the key is simply to work hard and take professional risks. “It can be scary, but so very much worth it, especially when you’ve got the right support around you,” she said. “If you don’t play the game, you can’t win.” — Jeremy Nobile
ROSE
CONTINUED FROM PAGE 26 colleague said one of Rose’s greatest attributes is the respect and admiration she is able to garner from her peers. “She’s completely authentic,” Withers said. “Lisa is genuinely caring, exceedingly smart and utterly honest. You take those things, and she is one of those people who builds and instills trust better than anyone I’ve ever met.” In 2014, the firm transitioned from being owned by several outside investors, plus about half of its staff, into an employee-owned company. Rose said one of her goals in her new position is to help every employee feel like an owner. “When their ESOP (employee stock ownership plan) accounts start showing a balance, it’s like, ‘Oh, this is real,’” she said. Rose and her husband, Tim, went to grade school together in Cleveland Heights. She said they
went on one date in high school, but she “didn’t like him.” More than 30 years later (at age 50 for both), they were married. It’s been eight great years since, Rose said. The couple spends a lot of time with their large families (Rose is from a family of eight; her husband has five siblings). Rose said she also loves bicycling, and she’s even competed in two 10-person, 24hour races — endurance runs through Canada that are as scenic as they are grueling. It’s all part of a strong desire to overcome any challenge in her path. “One of the things that’s always been in my nature is when somebody tells me I can’t do something, that motivates me to do it, to prove them wrong,” Rose said. “One of the things I did to overcome my fear of heights was bungee-jumped. I went down to the I-X Center and jumped off a cherry picker, so it was somewhat controlled. But for me it was amazing.” — Kevin Kleps
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Rob Turk
Executive Director
President
AIA Cleveland
Professional Travel, Inc.
AIA Cleveland is delighted to introduce our new Executive Director, Patty Lampert. Patty most recently launched an award-winning destination marketing organization through start-up, tactical planning, budget analysis, sales implementation, public relations, and brand awareness for the Beachwood Convention & Visitors Bureau. She has a strong background in consultative sales, strategic planning and organizational leadership. For more information, please visit aiacleveland.com.
Professional Travel, Inc. is pleased to announce the promotion of Rob Turk to President. Turk is one of the most respected members of the travel industry in the Midwest region and has been with the company for 24 years. He is a recognized leader of all operational units of the company and will continue to be focused on business process execution excellence, overall sales and revenue growth. To learn more, visit protrav.com.
Law Office of Stanley M. Dub is pleased to announce that Mr. Dub has been appointed Adjunct Professor of Law at CWRU Law School, and will teach a course on Franchise Law this Fall. This is believed to be the first course on Franchise Law ever offered by an Ohio law school. Mr. Dub is a 1975 graduate of CWRU Law, and has practiced as in-house attorney for major corporations, in private practice with medium to large law firms, and since 2006 at his own practice focusing on Franchise Law.
HOSPITALITY & TOURISM
Professional Travel, Inc. Professional Travel, Inc. is pleased to announce the promotion of Karlyn Reale to Executive Director of Operations. Karlyn brings 34 years of corporate travel experience and has been with Professional Travel since 1990. Karlyn has been instrumental in partnering with numerous industry vendors to provide best in class service in every aspect of the reservation process. She will continue to be a great asset to the company in the area of operations and reservations.
Senior Vice President, Sales & Marketing Professional Travel, Inc.
Senior Vice President, Technology Solutions
Professional Travel, Inc. is pleased to announce the promotion of John Sturm to Senior Vice President, Sales & Marketing. Sturm spent many years managing sales with Fortune 500 companies, including Playtex, Revlon, and The Walt Disney Company. He joined Professional Travel in 2007 and in his new position, will continue to refine sales, marketing, and client solutions throughout the organization, accelerating growth and improving overall efficiency. To learn more, visit protrav.com.
Professional Travel, Inc. is pleased to announce the promotion of Todd Stoneman to Senior Vice President, Technology Solutions. Stoneman has been with Professional Travel since 1996 and has served to keep customer solutions and reporting capabilities on the cutting edge. He will continue to lead the vitally important information solutions unit. To learn more, visit protrav.com.
Lumitex, Inc. Lumitex, Inc. of Strongsville is proud to announce Mark Darby as Vice President of Sales for its Electronics Business. Mark joins Lumitex with 30 years' experience in technical sales from Avery Dennison and SaintGobain. Lumitex engineers light in electronics and medical applications; Mark will focus on strategic growth initiatives in aerospace, automotive and other markets. Learn more about Lumitex at www.lumitex.com.
John Sturm
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Professional Travel, Inc.
MANUFACTURING
PROFESSIONAL SERVICES Dale Bradford, Esq. Principal Skoda Minotti Skoda Minotti is pleased to announce the addition of Dale Bradford, Esq., to its Real Estate and Construction group. In his role, Dale will provide consultative services for acquisition, development, financing and construction of commercial projects. Bradford has 33 years of combined legal, development and construction expertise in the real estate and construction industry. He has represented all interested parties in all facets of real estate transactions.
For more information or questions regarding advertising in this section, please call Lynn Calcaterra at 216-771-5276 or email: lcalcaterra@crain.com
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7,000
UH 150 CONTINUED FROM PAGE 1
UH donor base in 2003, averaging $13.8 million in yearly donations between 1993 and 2003.
profit — no small feat in today’s challenging health care environment. In 2015, UH posted operating income of $93.6 million on operating revenues of $3.29 billion — a margin of about 2.84%, which is in line with 2014’s operating margin of 2.88%. UH is currently not in the middle of any transactions to integrate more hospitals. Also, with the exception of Lake Health, the immediate market is fully consolidated. “Where there are opportunities, we’ll pursue them,” Zenty said. “But we’ll do it with the same vigilance as we did in the past several years.”
Market-driven pace The system added UH Parma Medical Center and UH Elyria Medical Center to its portfolio in January 2014. Completing two transactions in parallel in one year was “fairly stunning,” said Paul Tait, UH’s chief strategic planning officer said. But the pace continued, driven in large part by the market, as is the case across the nation, Tait said. As smaller hospitals face more and more challenges and financial pressures in the current environment, they’re looking to join systems to find efficiencies or to have a partner to help them respond to the mounting requirements of health care reform. Shortly after Parma and Elyria, UH announced plans to take over Robinson Memorial Hospital in Portage County. Now known as UH Portage Medical Center, the community hospital was integrated into the UH network in June 2015. Then in November, UH added UH Samaritan Medical Center in Ashland and assumed full ownership of UH St. John Medical Center, which it had co-owned with the Sisters of Charity Health System since 1999.
70,000 UH donor base in 2015, with $133.5 million in total annual donations.
Maternity Hospital’s nursery, circa 1930. (Contributed photo) Photo gallery online: To see a slideshow of additional images of UH through the years, go to crainscleveland.com “We said no to a couple other situations in the last two years also, which again, shows you what the pace is in the market,” Tait said. This market-driven push stands in contrast with the last major string of hospitals UH integrated into its system a couple of decades ago, said Richard W. Pogue, who retired from the UH board of directors this month after 41 years as a member. In the 1990s, a large national hospital group began buying several hospitals in Northeast Ohio, setting off a chain reaction in the market, Pogue said. Though that national group withdrew from the market a few years later, the wave of merger activity it stimulated remained. “Today, it’s a national phenomenon basically caused by Obamacare and rising costs,” said Pogue, who has now been appointed as a lifetime director for the board, but no longer
a voting member. “Every year the government reimbursement seems to go down and the costs keep going up, so it’s just very, very difficult for a small hospital to survive.” This wave of hospital integration was much more deliberate and, in Pogue’s view, “a tremendous, positive trend.” “From my perspective, it’s an expansion of what used to be purely an academic medical center into a regional system,” he said.
‘Super-regional system’ Bill Ryan, president and CEO of the Center for Health Affairs, which advocates for Northeast Ohio hospitals, assumed the role in the early 2000s within a year of Zenty beginning his tenure. “UH, when I first got here, was primarily an academic medical center focused at University Circle,” Ryan said. “They had some affiliation relationships, smaller community hospitals, particularly in the more rural counties, Geauga and Ashtabula, but they were really fo-
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cused on that main campus. … Over time, I think part of what Tom saw was the need to have a way to access patients, serve patients across the whole of the region.” In creating a strategy to be a “super-regional system,” Zenty said the goal was both integrating hospitals as well as expanding services and strengthening the continuum of care. Though the focus of transactions is often on acquiring a hospital, UH also gained the network of physicians, services and outpatient centers associated with each hospital. “So you’re building scale, which is important to reduce cost,” Tait said. “Quite often with transactions, you’re adding new outpatient sites, new physician offices, and it does support where health care’s going in terms of more outpatient care.”
All-around growth Though 2014 and 2015 growth came at a historic pace, the past decade overall has brought many new services and facilities to UH. The UH Avon Rehabilitation Hospital opened in January. Its Beachwood rehab hospital opened in 2013. The UH Seidman Cancer Center, the Center for Emergency Medicine and the Breen Breast Health Pavilion at UH Case Medical Center all opened in 2011, the same year UH opened its
$298 million Ahuja Medical Center. And in years prior, the Medina, Sharon, Concord, Geneva, Twinsburg and Chesterland health centers have all opened since Zenty came to UH. UH’s growth, of course, reaches beyond facilities. Last year alone, UH hired almost 300 doctors, many of whom will work in the newly acquired hospitals, help create new programs and serve those communities. UH has passed the $1.4 billion mark on its $1.5 billion capital campaign and aims to meet that goal by the end of the calendar year. Fundraising has grown tenfold in about a decade — both in dollars raised and in donors contributing. The UH donor base was about 7,000 in 2003. By the end of 2015, that number was more than 70,000. Last year, the system raised $133.5 million in donations, up dramatically from an average of $13.8 million a year between 1993 and 2003. “We think it’s a testament to the fact that the care that we provide to all of our patients is so widely recognized and appreciated that we have seen our donor base expand dramatically,” Zenty said. Though UH’s service is firmly focused on Northeast Ohio, its research stretches across the country and globe. Since launching in 2012, the Harrington Discovery Institute at UH has funded 60 programs, supporting physician-scientists in the United States and the United Kingdom. UH’s model for health is community-centric, yet it has a worldview from the standpoint of discovery, said Dr. Jonathan Stamler, director of the Harrington Discovery Institute. “From the standpoint of discovery, (UH) can’t do that locally. That’s just a reality,” Stamler said. “So it can’t change standard of care through support solely of discovery in its community. That is not meaningful, unlike CONTINUES ON PAGE 31
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Going forward
the delivery aspect.” The acquisitions that have enabled UH to provide care to a broader community also supports a strong, sustainable financial base, without which the discoveries and research the Harrington Discovery Institute supports wouldn’t be possible, Stamler said. Institutions tend to only put resources into discoveries that they alone contribute to, he said. “UH is looking at this differently. It’s saying that it wants to contribute in a meaningful way to the treatment of disease for the betterment of mankind,” Stamler said. “And so its patients, ultimately in the long run, and its community will benefit by virtue of a national global platform.”
UH has identified and filled a number of the needs and gaps of the newly integrated hospitals, so from a clinical standpoint, the integration is for the most part completed. The challenge for the next three to four years is the non-clinical side of integration and focusing on administrative functions like supply chain management, contracting services, human resources and common accounting practices. And in particular, information technology, which is a “rather expensive and complicated” piece of the puzzle, Zenty said. “All the elements that go along now with making our system as efficient and as effective as we can possibly be will require a lot of our at-
tention in the next year or two,” Zenty said. But also looming in the near future are numerous significant cost increases across the health care industry: annual pharmaceutical cost increases are in the double-digits; supply costs are up 4% or 5%; and wages and salaries increasing at 3% to 3.5%, Zenty said. “So is a 3% margin enough? Well, as you begin to examine what is the rest of the industry passing onto us in terms of increased costs, you begin to see that there’s an emerging pattern that we have to really focus on our efficiency and our effectiveness and as well as our level of profitability,” he said. “We’re very mindful of how we’re seeing increases accelerating rather dramatically across the country.”
A volunteer reads to patients in the early 1960s. (Contributed photo)
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