Crain's Cleveland Business

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MOCA SETS SCENE FOR WOMEN OF NOTE

JASON MILLER

Ingrid Angel, director of El Barrio, poses outside the Museum of Contemporary Art last month.

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Crain’s Cleveland Business again honors some of Northeast Ohio’s many impressive female business leaders with our annual Women of Note section.

This year’s honorees were filmed and photographed at the Museum of Contemporary Art in Cleveland.

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PRODUCT DESIGN

NEW IDEAS Nottingham Spirk keeps innovating. Just ask the folks at Zippo. ■ Page 3

Entire contents © 2013

by Crain Communications Inc. Vol. 34, No. 27

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$2.00/JULY 8 - 14, 2013

Land back in demand

MOCA SETS SCENE FOR WOMEN OF NOTE

Housing market rebound has led builders to seek development sites

By STAN BULLARD sbullard@crain.com

Talk about a turnaround.

During the economic slump, some builders went bust as they choked on payments for unsold home sites. Now Matt Garland, owner of Garland Homes in Westlake, counts himself lucky to have bought and developed land before the rebound hit.

Garland recently opened a 32lot development on Bradley Road in Westlake and already has contracts with buyers for a dozen of the lots, which cost upwards of $130,000 apiece. Grand Oaks, a development in Avon, also is tak-

STAN BULLARD

Garland Homes has sold dozens of lots on Bradley Road in Westlake. ing off for Garland; its lots cost $75,000 apiece.

“Without them (the lots), I would have had to lay off people this year as we ran out of land,” Mr. Garland said of the 14-person firm that builds and sells more than 40 homes annually.

See LAND Page 24

ANALYSIS

Taxes axed even as budget bulges State spending continues to climb under Gov. Kasich in latest 2-yr. plan

By JAY MILLER jmiller@crain.com JASON MILLER

Ingrid Angel, director of El Barrio, poses outside the Museum of Contemporary Art last month.

This year’s honorees were filmed and photographed at the Museum of Contemporary Art in Cleveland.

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PRODUCT DESIGN

TECHNOLOGY

NEW IDEAS

BLASTOFF

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NEWSPAPER

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27

Crain’s Cleveland Business again honors some of Northeast Ohio’s many impressive female business leaders with our annual Women of Note section.

When he was running for governor, John Kasich said he would make government more efficient, which many assumed meant he would cut state spending. Also, he signed a pledge that he would not raise taxes.

He’s governed a little differently.

Nottingham Spirk keeps innovating. Just ask the folks at Zippo. ■ Page 3

Entire contents © 2013

by Crain Communications Inc. Vol. 34, No. 27

Alphaport is developing a nonprofit featuring NASA’s input. ■ Page 3

The $62-billion, two-year budget he signed June 30 raised the state sales tax to 5.75% from 5.5%, though that increase Kasich was more than offset by cuts in the income tax.

In addition, the governor proposed a 4% tax on oil and wet gas from shale wells and a 1% tax on dry gas wells. That so-called severance tax on oil and gas producers didn’t survive the General Assembly’s budget sausage-making process.

See BUDGET Page 24

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CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

HEALTH CARE LEADS THE WAY

COMING NEXT WEEK

Cleveland is one of the 20 U.S. cities in which health care has contributed the most to post-recession employment growth, according to an analysis by the Brookings Institution. The Washington, D.C., think tank found nearly one in four jobs added in the Cleveland-Elyria-Mentor MSA (Metropolitan Statistical Area) from the trough of the recession through the first quarter of 2013 was in health care, ranking 13th among all U.S. metro areas. Here’s data for the top five metros, plus Cleveland.

Keep your eyes on them Crain’s will highlight some of the best and brightest from Northeast Ohio’s legal sector in our Who to Watch in Law section next week. There will be profiles of the honorees, plus experts will give their input on the attributes needed for future leaders in law and challenges that are facing the profession.

Rank

Presented by:

Health care share of employment recovery

1. Albuquerque, N.M.

REGULAR FEATURES Big Issue .......................4 Classified ....................24 Editorial ........................4

JULY 8 - 14, 2013

From the Publisher ........4 Going Places ...............10 Reporters’ Notebook....25

x-Net change in health care jobs

x-Net change in all jobs

376%

+496

+132

2. Augusta, Ga.

41%

+1,472

+3,590

3. Virginia Beach, Va.

38%

+6,150

+16,353

4. Syracuse, N.Y.

36%

+1,571

+4,379

5. Fresno, Calif.

35%

+2,247

+6,493

13. Cleveland

24%

+8,039

+32,847

■ Source: Brookings Institution, www.brookings.edu ■ Key: x-Through the first quarter of 2013.

2013 Class Saluting the best of Northeast Ohio’s HR executives

Premier Sponsor:

Susie Barragate, Human Resources Director, Vocational Guidance Services Cyndi Beattie, Human Resources Manager, University Hospitals Judy Collister, Vice President Human Resources, Park Place Technologies Carla Fitzpatrick, Human Resources and Administrative Manager, The Pattie Group

Co-Presented by:

Sherman Gandee, Director, Human Resources, Steere Enterprises Diane Giorgi, Director of Human Resources, Reminger Co. LPA Tom Greene, Vice President of Human Resources, Medical Mutual of Ohio Harold Harrison, Chief Human Resources Officer, Cleveland MetroParks Nicolette Kynkor, Organization Development Specialist, FedEx Custom Critical

Networking g Sponsor: p

Kate Lawrence, Associate Director, Employee Health and Wellness, The MetroHealth System Sam Maniar, Manager, Leadership Development, Jo-Ann Fabric and Craft Stores Tom Maxwell, Senior Vice President, Fifth-Third Bank

Video Sponsor:

Judi McMullen, Vice President, Chief Human Resources Officer, Cuyahoga Community College Michelle Pearson-Casey, Director of Human Resources, Olympic Steel

Panel Sponsors:

Jeanette Saunders, Chief of Administration and Performance Management, Cleveland Airport System LaToya Smith, AVP Talent Acquisition Consultant Team Lead, Fifth-Third Bank Joseph S. Vitale, Jr., Director, Talent Management, Kent State University Shana Zollar, Vice President Human Resources, Dwellworks

In partnership with:

For full event and honoree information: CrainsCleveland.com/HRLeaders

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CRAIN’S CLEVELAND BUSINESS

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INSIGHT

Nonprofit is near liftoff Alphaport is aiming to use technologies developed at NASA to create startups

By CHUCK SODER csoder@crain.com

Ryan Loftus thought he had signed up for a typical chemical engineering co-op, but officials at Alphaport Inc. had bigger plans for him.

A few of the Cleveland company’s leaders are in the process of forming a nonprofit that would work to commercialize a steady stream of technologies developed at NASA Glenn Research Center, which during the last few years has been trying to turn more of its inventions into products.

The nonprofit would recruit students tasked with finding profitable ways to use NASA Glenn technologies on Earth, according to executives at Alphaport, a provider of training and engineering services

that is a contractor at NASA Glenn.

The students, from local colleges and perhaps even high schools, would work alongside current and retired technical experts at NASA Glenn.

The Alphaport executives — Anthony Miranda, Jennifer Baumeister and Aimee Crane — eventually plan to form a for-profit business that would create spinoff companies to license those technologies from NASA and bring them to market.

Mr. Loftus is the first student going through the process. As he heads into his junior year at the University of Akron, he’s working with Bruce Banks, who works at NASA Glenn on a contract basis, to conduct research on atomic oxygen — and to figure out how to create a product based on the highly corrosive element. NASA already has used atomic oxygen, which can be brutal on spacecraft, to clean damaged paintings.

Though it wasn’t the co-op he expected, Mr. Loftus gladly agreed to take on the challenge of commercializing the technology.

See LIFTOFF Page 6

Property inspections are safe, and instant Safeguard produces mobile application that files results almost immediately

By MICHELLE PARK mpark@crain.com

In the business of property preservation, a single-day lag between a property inspection and a report of the findings can leave an abandoned home vulnerable to vandalism, animals, insects, and frozen — and burst — pipes.

Using technology it says it has spent millions of dollars to develop, Safeguard Properties in Valley View has ramped up its real-time report-

ing of property conditions.

More than 70% of the more than 1 million inspections Safeguard contractors perform in any given Mehok month now are reported within minutes of the inspections via a mobile app the company has developed; that’s up from roughly 5% of reports submitted via the app this time last year, said George Mehok, Safeguard’s chief information officer.

Safeguard employs contractors across the county to inspect and maintain defaulted and foreclosed properties for lenders, mortgage servicers and other financial institutions.

JANET CENTURY

John Spirk, left, and John Nottingham are co-presidents of Nottingham Spirk. Evan Spirk, center, is product design manager.

SPARKING INNOVATION Nottingham Spirk adjusts to times, remains ‘relevant’

By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com

I

t’s obvious John Nottingham, co-president of Cleveland product design firm Nottingham Spirk, views innovation as a necessity in today’s economy.

See INNOVATION Page 8

See INSPECTIONS Page 23

THE WEEK IN QUOTES “If we go on like this, without more lots, we’ll have a crisis, but the industry is about ready to take care of that with new developments.”

— George Davis, president of the Home Builders Association of Greater Cleveland and president of ProBuilt Inc. in Mentor. Page One

“Despite the stress that came with worrying about making payroll, securing clients and hiring all the right people, there was something great about not having to be kept to a specific schedule of meetings.”

— Jacqueline Forestall, president, Alego Health. Page W-2

“You have to have the push from the women themselves, but the pull from the high level to ensure there’s an opportunity. I think that’s where you’ll see continued change.”

— Susan V. Juris, president, University Hospitals Ahuja Medical Center. Page W-5

“Moving from health care delivery to taking this more upstream approach broadened my vision to looking at all of those things that contribute to health. Today, health doesn’t happen in a hospital — it happens in the community.”

— Denise San Antonio Zeman, president and CEO, Saint Luke’s Foundation. Page W-11

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CRAIN’S CLEVELAND BUSINESS

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JULY 8 - 14, 2013

PUBLISHER/EDITORIAL DIRECTOR:

Brian D. Tucker (btucker@crain.com) EDITOR:

Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:

Scott Suttell (ssuttell@crain.com)

OPINION

Our guv

T

he next presidential election is still more than three years away, yet the name of John Kasich has been popping up in national media as a possible Republican candidate for the White House. We find the notion puzzling.

After all, how can a governor who can’t keep his party in line at the state level be expected to steer the party’s agenda at the national level?

The two-year state budget bill the Republicancontrolled Legislature passed and Gov. Kasich signed at the end of June is a prime exhibit of Gov. Kasich’s struggle to lead his party effectively. The evidence is in what the bill contains, and what it does not.

Gov. Kasich failed to convince his colleagues to include an increase in the state severance tax, which is the tax paid by producers of oil and natural gas on their output. The governor hoped to tap into a small portion of the wealth that stands to be gained by drillers who are doing all the fracking in Ohio’s Utica Shale region. The hike he was seeking in the tax wasn’t excessive. Yet rather than heed the governor’s call, lawmakers did the bidding of energy industry lobbyists who issued idle threats about taking their rigs elsewhere.

Republican legislators also turned a deaf ear to Gov. Kasich’s pleas that the state accept hundreds of millions of dollars in federal money so that more Ohioans would be eligible for Medicaid assistance.

They didn’t just thumb their noses at the governor when he issued his call for compassion; they also poked him in the eye by including in the budget bill a provision that would have barred the state from expanding Medicaid. Gov. Kasich used his good eye and his line-item veto power to delete that provision, but he’s unlikely to find a welcome mat in the Legislature if he takes another shot at Medicaid expansion.

The governor got about half a loaf in the way of reductions he sought in income taxes on individuals and small businesses. But instead of cutting the state sales tax by a half percentage point and applying it to most service businesses that now are exempt, as Gov. Kasich recommended, the Legislature raised the regressive tax by a quarter-point.

The latest poll by Quinnipiac University of Ohio’s political temperature shows Gov. Kasich with a personal-best job approval rating of 54%. The poll also shows the incumbent with a comfortable doubledigit lead over his only declared Democratic challenger, Cuyahoga County Executive Ed FitzGerald, in next year’s race for governor.

But there are 16 months before November 2014, and a lot can happen between now and then to change the fortunes of candidates. Republican lawmakers already have handed Mr. FitzGerald or whoever else may run for governor from among the Democrats a couple weapons with the Medicaid expansion roadblock and the unchanged severance tax.

Gov. Kasich didn’t take media questions after the ceremony where he signed the budget bill. It won’t be as easy during the coming campaign to duck queries about why members of his party pull against the reins of his authority.

FROM THE PUBLISHER

Baggage cluttered budget bill process American law, through the normal ast week’s passage, after months process of jurisprudence that ended at of haggling, of the state biennial the Supreme Court, settled this budget was frustrating issue, yet we continue to allow to watch, mainly be- BRIAN it to drive us further apart when cause of how we have allowed TUCKER extremists insist on injecting it politics to denigrate our lawinto so many political issues. making process.

Any wonder why we’re so diLegislators tried to attach all vided in this country? sorts of things to the bill that nev***** er belonged in a budget bill, but The state’s turnpike commisperhaps the most aggravating sion is expected to begin issuwas the anti-abortion limitaing bonds soon that will fund tions. Abortion might be the transportation improvements most politically charged issue in across the state, including Cleveland’s this country, with ardent supporters on long-sought improvements to the West both sides, and I wish our citizens could Shoreway and the construction of the soleave it out of the political process because called “Opportunity Corridor,” an extenof the emotions and divisiveness it spurs. sion of Interstate 490 that would connect Imagine, if you will, trying to run for to University Circle. president, and you’re expected to be That corridor project has been critiknowledgeable about foreign policy, cized by some as nothing more than an economic theory, the legislative process expensive shortcut, but it also will help and myriad other things that confront improve the neighborhoods through our chief executive hour by hour, seven which it passes, making those areas betdays a week. Why do we insist on making ter locations for new businesses. abortion an important factor in choosing The improvements to the West Shoreour president, or for that matter any poway, which would make it more of a litical representative?

L

street that can be navigated safely by pedestrians and bicyclists as well as drivers, will be an important step toward reclaiming Cleveland’s access to its precious lakeshore. For far too long, in the modern history of our city, we have viewed our river banks and lakefront as little more than convenient places for shipping-based businesses. The new Flats East Bank project leverages a location near the confluence of the lake and river, and should go far toward ramping up long-stalled redevelopment further south along Old River Road, and the nearby lakefront.

This big bond issue also will start the process of replacing the concrete base of the turnpike, an immense undertaking but an investment that must be made for the economic future of generations to come.

If only our federal efforts at combating the Great Recession would have done the natural thing — namely rebuilding our decaying bridges, sewers and roads — rather than fund now-failed solar companies. That would have given us a much-needed start on rebuilding America in its third century.

■

THE BIG ISSUE With the announcements that University Hospitals plans to take over Parma Community General Hospital and EMH Healthcare in Elyria, it appears independent hospitals are headed for extinction. Do you think this is good or bad news for patients?

CRAIG KELLING

JANICE TURBER

CRYSTAL BRYANT

TONY PRUSAK

Brunswick

Cleveland

Cleveland

Tremont

Well, I think it’s probably a good thing that they do merge because it’s a gathering of more funds, knowledge, doctors and support under one umbrella.

So I can’t see why it wouldn’t be good.

I think it’s bad for everyone involved, as far as employees — doctors, nurses — and people, the patients themselves. They need quick access, quick access, to a good hospital, and we need choices.

I think it’s a bad thing that they’re taking over these smaller hospitals. The consumers lose the option to have multiple options for health care. I don’t believe that health care should be a monopoly.

I think with health care reform, the consolidation of hospital systems is much needed. In order to give the proper service to patients, you need to control costs and swing that pendulum down.

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CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

5

WhiteSpace increases its PR presence with Highland acquisition

By SCOTT SUTTELL ssuttell@crain.com

Keeven White said he had “some gaps” in service — mostly related to public relations — to close at his Akron business, integrated marketing firm WhiteSpace Creative. Not far away, Robert Zajac, president of Highland Public Relations on Akron’s West Side, was turning 60, and his thoughts were turning to leadership transition.

Their respective visions for the companies began to come together about two months ago, when Mr. White contacted Mr. Zajac, invited him to lunch and started a process that culminated last Monday, July 1, with WhiteSpace acquiring Highland.

Mr. White, 46, said his initial invitation to Mr. Zajac “stemmed from looking to solidify our position as an integrated marketing leader, and PR is a big part of that.” By adding Highland, he said, “We now have strategic expertise … in every market-related discipline.”

Terms of the deal were not disclosed. It’s the second acquisition in less than a year for WhiteSpace, which in August 2012 bought SmileyHanchulak Marketing Communications of Fairlawn.

WhiteSpace was founded by Mr. White in 1994. It had about 35 employees before the Highland deal, making it the largest marketing firm in Akron, according to Crain’s most recent list of firms in that industry.

All seven Highland employees are becoming part of WhiteSpace.

Mr. Zajac, who founded Highland in 1993, will become WhiteSpace’s executive vice president.

The deal brings the firms together, but in two difference spaces.

WhiteSpace will retain Highland’s office at 935 W Market St. The four Highland employees whose primary focus is public relations will remain there, and they’ll be joined by two WhiteSpace employees who also have been dedicated to PR functions.

Mr. White said the newly combined firm is looking to add at least one more PR professional. Highland executive Leigh Greenfelder will oversee the PR practice of the combined firm.

Meanwhile, the rest of the firm’s staff will work from the existing WhiteSpace offices at 24 N High St. Mr. White said it “wasn’t feasible” to bring all the staff together in one location immediately, though such a consolidation is likely in the future.

As it is, the two offices are only about five minutes apart, Mr. White noted — if physical distance even matters in the Internet age.

Mr. Zajac said as clients look to marketing firms to help them navigate communications in a digital

Volume 34, Number 27 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of December and fifth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2013 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00.

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world, they’re increasingly seeking comprehensive expertise in PR, social media, advertising, content development, design and other disciplines. He said Highland’s clients “are very excited” about the combination, since WhiteSpace “has a tremendous reputation as a design firm” and in other areas.

“Nobody loses anything; they just gain capabilities,” Mr. Zajac said of clients’ perceptions of the WhiteSpace/Highland combination.

■

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Liftoff: Group says the concept has received much support from region continued from PAGE 3

“I thought it was innovative — a great opportunity to set yourself apart from other students, too,” he said.

Help is on the way Today, Mr. Loftus is employed by Alphaport, but by end of the year the executives involved with the commercialization effort aim to have raised money for the new nonprofit so it can employ more students doing similar work, as well as a few administrators.

They are confident they can raise the money from foundations or the federal government, based on the outpouring of support the concept has received from local organizations, said Ms. Baumeister, system safety engineer and knowledge management specialist at Alphaport.

Manufacturing advocacy group WIRE-Net of Cleveland for the moment is serving as an adviser and fiscal agent for the effort while Alphaport’s leaders wait to receive 501(c)(3) status for the nonprofit, which will be called E4T (Effective

“We believe we’ll change the way people talk about technology development and engineering.”

– Anthony Miranda, president, Alphaport Entrepreneurship Education & Economic Development for Technology).

Other groups offering to help include JumpStart Inc. and BioEnteprise Corp., two Cleveland nonprofits that work with local startups. NASA Glenn officials have provided positive feedback about the effort, as have colleges that would help E4T find entrepreneurial students, Ms. Baumeister said.

“A lot of people have happily and voluntarily made phone calls for us to get to the next step, to the next step, to the next step,” she said. “We don’t have to keep asking people.

We go, we talk, and the offers to help are overwhelming.”

The goal of the effort is to help create companies and jobs in Northeast Ohio while also helping students gain expertise related to technology and entrepreneurship, said Mr. Miranda, Alphaport’s president.

“We believe we’ll change the way people talk about technology development and engineering,” he said.

Voices of experience Should the project succeed in producing startups, those fledgling companies could work out of an extra 5,000 square feet at Alphaport’s office on Cleveland Parkway Drive, near NASA Glenn.

The nonprofit should have no problem building mentor-mentee relationships between the students and the technical experts, Mr. Miranda said. Alphaport specializes in helping employees with years of experience pass that knowledge along to their colleagues so that it isn’t lost when they leave or retire. Most of Alphaport’s customers are government agencies.

Alphaport has existing relationships with a long list of current and

retired technical experts at NASA Glenn, about a dozen of whom have committed to working with E4T, Ms. Baumeister said. The effort eventually could expand to serve other federal labs where Alphaport does business, Mr. Miranda said.

Access to Alphaport’s connections and experience will come in handy as E4T works to commercialize new technologies, said Matt Moran, a NASA Glenn employee tasked with helping companies find ways to use NASA technologies related to energy and materials.

NASA Glenn isn’t allowed to favor any particular organization over another when licensing its technologies, but the research center will do what it can to help the E4T project succeed, Mr. Moran said.

After all, NASA Glenn wants to license more technologies, and it still has a long way to go in its effort to become a prolific creator of new products, said Mr. Moran, whose position was created less than a year ago.

Northeast Ohio stands to benefit from the E4T project as well, Mr. Moran said.

“What they’re trying to do is very good for our area,” he said.

Now comes the hard part Wire-Net is helping Alphaport for two reasons, according to John Colm, president of the manufacturing advocacy group.

For one, the effort will provide great educational experiences for students recruited to turn NASA technologies into products, Mr. Colm said. Plus, the many manufacturing companies that belong to Wire-Net could help new startups make their products, he added.

However, raising cash to launch E4T will be a challenge for Alphaport, especially given recent cuts to the federal budget, which has made the competition for foundation money more intense, Mr. Colm said.

“I hope they can get it off the ground,” he said. “It’s not going to be easy.”

■

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Innovation: Zippo unveils steel wallet continued from PAGE 3

“I don’t think there’s anyone that can rest on their laurels anymore,� he said.

Take Zippo Manufacturing Co., the maker of lighters in Bradford, Pa. As tobacco-related laws become more stringent and people kick the habit, the 80-year-old company’s main product becomes a bit outdated. President and CEO Gregory W. Booth doesn’t think lighters ever will go completely out of style — after all, people have uses for lighters that don’t involve smoking — but if the company wants to continue to grow, it must evolve. “You have to be relevant,� Mr. Booth said.

So Zippo invited Nottingham Spirk to visit its plant, take a look at what its core competencies are and help it figure out what else it could make.

The stainless steel wallet the team ended up developing for Zippo is just one among thousands of consumer, medical and businessto-business projects Nottingham Spirk has worked on in its more than 40 years.

Nottingham Spirk quickly is approaching 1,000 international and U.S. patents, Mr. Nottingham said, and many have resulted in recognizable products in the marketplace. The firm has been the brains behind ubiquitous products such as the SpinBrush toothbrush, the Swiffer SweeperVac and some Little Tikes toys, spreading its team’s ideas far beyond the borders of Cleveland.

Mr. Nottingham and co-president John Spirk, hall mates from their first year at the Cleveland Institute of Art, started the company right out of design school, and their enthusiasm for their work still shows.

The company prides itself on being an “innovation firm� and working on game-changing products, Mr. Nottingham said. Companies must be focused on the day-to-day, he said. Nottingham Spirk’s designers have the liberty to look to the future and offer companies a fresh point of view.

In the case of Zippo, creating a product using existing machinery was certainly a “creative challenge� for the team, said product design manager Evan Spirk, the son of John Spirk.

Nottingham Spirk presented a host of ideas to Zippo, from camping supplies to lights, but the wallet made the most sense. It’s metal, so it helps protect against electronic scanners that can lead to identify theft, but it’s still slim. Zippo wanted to be introduced to a new generation, and everyone has a wallet, Evan Spirk said.

Mr. Booth, Zippo’s CEO, said the wallet is made overseas but eventually could reach a volume of sales where it would make sense to produce it at the Bradford plant. Part of the reason Mr. Booth wanted the company to innovate was so that the factory, which employs about 600, could continue to operate at capacity, even as tobacco products’ popularity declines.

Choosing to work with Nottingham Spirk on its new product was simple, Mr. Booth said — the company already had created Zippo’s Blu lighter, a butane lighter with a flint wheel. According to Mr. Booth, industry experts had maintained that butane couldn’t be lit with a

flint wheel, but Nottingham Spirk engineers found a way. “They did something that everyone else said they couldn’t do,� he said.

More than a vendor That engineering expertise is one of the reasons Infusion Brands, a consumer products company in Clearwater, Fla., reached out to Nottingham Spirk. Infusion Brands wanted help designing a better reciprocating saw, one that would reduce vibrations and kickback for the user.

Allen Clary, Infusion Brands’ chief operating officer, said his company possesses strong marketing skills, but couldn’t match the engineering skills Nottingham Spirk brought to the table. With the design firm’s help, Infusion Brands will be releasing a new, dual-blade reciprocating saw to the market by the 2013 holiday season.

While Infusion Brands already had a dual-blade circular saw, Mr. Clary said, it now is moving to create a whole line of power tools with dual components, called Dual Tools, thanks to the push from Nottingham Spirk.It really is a partnership with Nottingham Spirk, Mr. Clary said, jokingly calling the Cleveland firm “Infusion Brands North.� “It’s not a customer-vendor relationship. It’s not even close,� Mr. Clary said.

Mr. Nottingham said there are two cost models by which the firm makes its money: a straight fee or a shared success model, where Nottingham Spirk lowers its fees for a share of future profits. It just works with one company in a particular field at a time, and will turn down competitors, Mr. Nottingham said.

At any given time, it is working with 30 to 40 different companies, and it can see how advances in one industry can help another.

Companies such as Clevelandbased Sherwin-Williams Co. value Nottingham Spirk’s outside perspective, said Bryan Draga, director of marketing for the paint maker’s automotive finishes division.

There’s “tremendous value� in bringing in someone who is local and familiar with the brand, but who also has a fresh point of view, Mr. Draga said. The two companies

have worked together a few times, most notably on the design of the Twist-n-Pour paint can, which makes opening and resealing easier than traditional paint cans. Mr. Draga was not part of that project, but he praised Nottingham Spirk’s packaging expertise.

Still amazed Mr. Nottingham said he believes a resurgence of business innovation is underway, and he credits the recession with pushing business owners to create products to drive revenue, rather than relying on the economy. “It shocked everybody,� he said. “I don’t care what business you’re in.�

Mr. Nottingham declined to share its annual revenue, but there are signs Nottingham Spirk is growing. The company has about 70 employees, six or seven of whom were hired in the last year. And the firm is looking to hire more.

There are plenty of different jobs within Nottingham Spirk’s walls.

Employees start by talking to customers in focus groups on site and across the globe, learning about their needs and finding out what they’re willing to pay. Nottingham Spirk starts with a selling price and then works backward.

The firm takes care of all the steps of the creative process, from design to prototyping to supply chain management, in-house. The approach is called its vertical innovation process.

About half its building at 2200 Overlook Road, which was a Christian Science church at one time, is devoted to engineering and prototyping, John Spirk said. That means that Nottingham Spirk’s design work isn’t limited to sketches on paper.

There’s room in the building for welding, painting and injection molding. The lack of silos helps speed up the design process, Mr. Spirk said.

The team’s ability “to think up something that has never been done beforeâ€? and to take an idea from a brainstorming session and turn it into reality is what keeps him inspired, Mr. Spirk said. “The process of doing that never ceases to amaze me,â€? he said. â–

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CRAIN’S CLEVELAND BUSINESS

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OSBORN ENGINEERING AND OSPORTS: Sean Johnson to director, production; David Chouinard to director, health care; Jack Krebs to director, sports engineering, OSports; Aaron Lobas, Bryan Lundgren and Mark A. Wutz to associate directors; Michael Turner to associate director, OSports; Christopher K. Wilson to project manager.

BE WELL SOLUTIONS: Beth Baskin to assistant program coordinator.

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FINANCIAL SERVICE BELLMARK PARTNERS LLC: Kevin Artista to vice president; Alex Hildebrandt to associate.

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BLACK MCCUSKEY SOUERS & ARBAUGH LPA: James C. Scott and Larry B. Donovan to partners.

MANUFACTURING AMERICHEM INC.: Brian Kady to market manager, North American transportation market.

FABER-CASTELL USA: Delanie West to vice president, Creativity Center.

MARKETING HOME TEAM MARKETING: Clare Davis to account manager.

NONPROFIT CLEVELAND HILLEL FOUNDATION: Barbara S. Rosenthal to development director.

LINKING EMPLOYMENT, ABILITIES AND POTENTIAL: Jay Bagdasarian to controller.

Send information for Going Places to dhillyer@crain.com.

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Ingrid Angel Director El Barrio

I

ngrid Angel scouted five U.S. cities during a return to her homeland before deciding to settle in Cleveland. She could feel the city was on the cusp of rejuvenation and exuded a similar energy that preceded the revitalization of her former hometown of Medellin, Colombia.

The single parent was armed with legal and human resources experience upon her arrival a decade ago, but the skills she had developed were more difficult to transplant than she originally thought.

“It was a huge challenge to find a job here despite my skills,” she said. “I hit the streets the hard way.”

Ms. Angel settled in Beachwood and worked for a financial adviser but left after a few months due to what she says was a hostile work environment.

“I needed to put food on the table, and a friend introduced me to public assistance,” she said. “I saw other men and women like me who really needed the help.”

Reliance on government aid was shortlived, but the experience of depending on others for reinforcement lived on.

She became a career coach in 2004 for El Barrio, a Cleveland nonprofit that provides case management and work force development services; she then ascended the ranks before assuming in 2007 her current role as director. The nonprofit since then has evolved beyond serving the Hispanic popu-

Ingrid Angel began working for El Barrio as a career coach in 2004. lation to providing employment services for any individual in need, regardless of race.

Under her stewardship, Ms. Angel has fostered new relationships with corporate partners and has expanded the organization’s financing channels, leading El Barrio to become a stronger player in Cleveland’s work force development.

Last year alone, the nonprofit matched 280 graduates of its one-month training program with jobs in the health care, retail,

E

banking and hospitality sectors.

“We used to be very focused on the clients we serve, but we weren’t recognizing a very important customer — the corporate community,” Ms. Angel said. “Now we’re very corporate-focused and are creating training programs to fit their needs.”

The National Council of La Raza, a Hispanic advocacy organization, has recognized El Barrio’s customer service training program as a best practice model. The

ach summer, Crain’s honors some of the countless, brilliant female business leaders in Northeast Ohio. We then photograph and film them in one of the region’s many attractions.

Enjoy this year’s group and the surroundings of

council named El Barrio as its 2012 Midwest Affiliate of the Year.

Ms. Angel has grown the organization’s operating budget from $600,000 in 2007 to $1.1 million in 2013, in part by moving away from a heavy reliance on foundations to a variety of sources that include state support, corporate donations and an annual fundraising event. The nonprofit’s merger in 2011 with the Center for Families and Children and West Side Ecumenical Ministry helped bolster its reach.

Deborah Vesy, president and CEO of Deaconess Community Foundation, which issues annual grants to support El Barrio, said Ms. Angel’s passion has transformed the nonprofit’s position.

“We have watched El Barrio grow from a grassroots organization serving the Hispanic community to one with a strong work force development presence here,” Ms. Vesy said.

Ms. Angel earned her law degree from Universidad Pontificia Bolivariana, then worked as a prosecutor before transitioning into human resources for both the city of Medellin and Columbus School in Colombia.

Her philanthropic contributions include serving as chairwoman of work force and economic development for Convencion Hispana and as advisory board member for Global Cleveland.

She lives in Moreland Hills with her husband, Bob Eidnier. Her daughter, Melisa, attends Miami University, and son, Tomas, is an Ohio State University student.

“Life couldn’t be better,” Ms. Angel said.

“I love Cleveland and all it had to offer us.”

— Kathy Ames Carr

the Museum of Contemporary Art in Cleveland.

Watch video interviews with each honoree and hear their answers on the characteristics every female leader should possess, their advice to young professionals and much more at: www.CrainsCleveland.com/WON

Photography by Jason Miller Colleen Arthur Director, integrated defense technologies and site general manager, Lockheed Martin Akron

C

olleen Arthur loves a challenge. As a child, her mother would encourage her to see if she could fix broken things around the house. She was good at math and science and always was taking things apart.

As an engineer who worked mainly in hardware systems at one of Lockheed Martin’s New Jersey plants, she took a job in Akron in 2006, packing up her family and home, so that she could learn more about the software side of information technology.

And in February 2011, she made another change, becoming both general site manager for Lockheed Martin’s Akron plant and director of integrated defense technologies.

Why? “I wanted to continue to grow,” Ms. Arthur said.

She said she wasn’t sure if she could handle it all, but she has thrived. As general site manager, she oversees about 700 employees, interacts with the Akron community and makes sure the physical aspects of the large building are up and running. The Akron site creates a number of products for the integrated defense technologies division, which produces systems for weapons, lasers and sensors.

As director of integrated defense technologies, which spans locations in Akron, Baltimore, Bothell, Wash., and Moorestown, N.J., Ms. Arthur oversees the division’s strategy, employees, sales and customer relations.

The diversity of the products and the unique needs of each client is a challenge, Ms. Arthur said, but it’s also what she likes most about her job.

“Every day is an adventure,” Ms. Arthur said.

John Leonhardt, director and chief engineer for the integrated defense technologies division, said he thinks Ms. Arthur is an effective leader because she started as an engineer and worked her way up. She understands what the engineers’ jobs entail, he said.

“She keeps work fun,” Mr. Leonhardt said.

Ms. Arthur became an engineer at the urging of a high school math teacher, who turned her away from stopping at a twoyear, technical degree. She would earn her bachelor degree in electrical engineering at Drexel University.

Today, Ms. Arthur enjoys giving back and encouraging students to follow in her footsteps. She’s involved with the University of Akron’s Women in Engineering advisory council, which focuses on encouraging women to enter the field. She said she gets excited talking to students about the STEM fields — science, technology, engineering and math. Sometimes, she said, students just need to hear someone say they can do it.

Ms. Arthur said the employees and the products they create are what keep her inspired. She said she’s amazed at the solutions her team devises.

Colleen Arthur moved from New Jersey to Ohio in 2006.

“That, to me, drives my every day because they’re going to come up with the next something that solves that customer’s problem,” Ms. Arthur said.

Those “somethings” are hard to pin down at Lockheed Martin, especially in the sensitive integrated defense arena, but Ms. Arthur did highlight the Persistent Threat Detection System. The tethered aerostat system serves as soldiers’ eyes when they are serving overseas, allowing them to better watch their surroundings. Knowing that one of their products is helping to keep the men and women in the military safe is all that matters, Ms. Arthur said.

Ms. Arthur said she’d like to stay with Lockheed Martin, where she essentially has spent her entire career, which included a stint with a company Lockheed Martin acquired. Ms. Arthur said she and family — she lives in Medina with her husband, their two sons and her mother — like the Akron area, and she’d be OK with both staying where she is or trying out another position in the company in the future.

She has never been one for a five-year plan; as long as she’s learning and helping the company to grow, she’s satisfied.

“I love my job,” Ms. Arthur said. “I really do.” — Rachel Abbey McCafferty

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WOMEN OF NOTE

CRAIN’S CLEVELAND BUSINESS

JULY 8 - 14, 2013

Jacqueline Forestall President Alego Health

W

Rebecca Bagley has been the president and CEO of NorTech for the past four years.

Rebecca Bagley President and CEO NorTech

I

f Rebecca Bagley has her way, Northeast Ohio’s roads one day will be jammed up with “L.A.-style traffic.”

It’s a good thing, she insists.

“That would mean that we have a robust economy with lots of people in it,” she said.

Ms. Bagley has spent the past four years doing what she can to turn that counterintuitive dream into a reality as president and CEO of NorTech, which aims to help a few budding local industry sectors — flexible electronics, advanced energy and water technology — become big and successful. So much so that other players in those sectors start setting up shop here, too.

To achieve that goal, NorTech works to connect young companies in those clusters with researchers, potential customers, investors or anyone else who can take them to the next level. The organization also lobbies for federal

and state legislation that could help high-tech industries in Northeast Ohio and tries to spread the word about the region’s strengths.

It’s a big job, so much of Ms. Bagley’s time is spent trying to harness the power of others, be they NorTech’s 16 employees or people from other organizations.

At NorTech, Ms. Bagley views her position as “CEO and chief talent officer” because she spends so much time focused on making sure the Cleveland-based nonprofit hires the right people and that those people have the leeway and resources to do their jobs.

“If you’re trying to accomplish something, the resources of the organization are behind you,” Ms. Bagley said.

But Ms. Bagley spends much of her time in meetings with people from other organizations. People she has no authority over. So the only way to get anything done is to build relationships and trust.

“It’s having that respect for people, and when you’re sitting down with them, focusing on them,” she said. “That just creates a bigger impact, whether it’s about how they feel about your organization,

how they feel about that meeting, how they feel about where you’re going with your goals.”

The Alliance, Ohio, native, who spent most of her childhood near Harrisburg, Pa., attended Harrisburg Area Community College for two years before heading to the University of Colorado, paying for most of her college education on her own.

Though she earned a bachelor’s in marketing, during college she found a mentor who worked in investment banking. Realizing she had a talent for finance, she took a job at his firm and went on to work for investment banks in New York and Harrisburg before joining the Pennsylvania Department of Community and Economic Development.

There, she served as director of venture capital investment, managing the deployment of $320 million that the state invested in venture capital firms, which in turn would invest the money in startup companies. A year later she filled her boss’s position, becoming deputy secretary of technology investment, overseeing Pennsylvania’s technology-based economic development programs.

So why leave such a high-level position for NorTech? Ms. Bagley said she sensed Northeast Ohio’s high-tech industries were at a tipping point where a lot of growth could occur. Plus, she wanted to work more closely with the businesses and philanthropic groups doing so much to support economic development in the region.

“I think there is more commitment by business and philanthropy here than anywhere in the country,” she said.

Dave Abbott chairs one of those philanthropic groups, the Fund for Our Economic Future, which provides money to NorTech. He described Ms. Bagley as a knowledgeable, personable, effective leader who isn’t concerned about maintaining the status quo.

“She’s not frightened by what change might entail; she’s excited by it,” he said.

Ms. Bagley lives in Oberlin with her husband, John, her 9-year-old daughter, Deryn, and her 6-yearold son, Evan. She’s an avid runner and a fan of the Oberlin Conservatory of Music. — Chuck Soder

ith her entire professional career spent in the human resources space of the region’s evolving health care scene, it’s no surprise Jacqueline Forestall has managed to develop a set of skills centered on her ability to handle circumstances from which others might shy away.

For instance, she’s thrived in situation where she’s had to sort out sticky union issues. She’s melded work forces — those of competitors, no less — in an era of increased consolidation in health care. And when the economy went south and threatened the viability of her own business, Alego Health, Ms. Forestall had finesse and foresight to mold the company into a thriving enterprise.

However, she still considers herself in the people business, and that’s why she finds her work in human resources — a field dominated by men when she took on her first professional role at the Cleveland Clinic in the 1970s — so rewarding.

“There’s a certain satisfaction in being able to talk to someone and realize you can often see the role in which they’ll be successful and thereby change their lives,” Ms. Forestall said.

After years of serving in high profile gigs at several of the region’s hospitals and dabbling in the consulting world, Ms. Forestall in 2004 decided to launch her own venture. Alego Health was conceived initially as a health care staffing company.

“At that time, medical staffing was something I was very comfortable with,” Ms. Forestall said. “I felt like I had hired every medical professional in the world.”

However, the company nearly closed for good in 2009 when the need for temporary nurses dried up as many part-time nurses, for example, returned to the work force full time to make extra money during the recession. Hospitals also had less of a need for tempo-

rary staff given that the number of elective surgeries being performed plummeted as people lost their health insurance.

Still, she didn’t want to give up hope.

“Despite the stress that came with worrying about making payroll, securing clients and hiring all the right people, there was something great about not having to be kept to a specific schedule of meetings,” she said. “I was sort of making my own calendar for the first time, and I really liked that and never wanted to give that up.”

Alego hit its stride when it seized on the health tech boom and started to place IT professionals at hospitals as many health care providers began installing electronic medical record systems and needed back-end support to customize and help launch the software.

Since then, Alego’s revenues have climbed steadily. The firm also became the first founding partner of the HIMSS Innovation Center, which will be housed on the fourth floor of the Global Center for Health Innovation, the downtown Cleveland building formerly known as the medical mart.

Jonathan Levoy, Alego’s vice president of business development and technology, described Ms. Forestall’s leadership style as that of a teacher and an observer. He said she’s comfortable letting her employees make mistakes to ensure that they grow professionally.

Mr. Levoy went so far as characterizing her as the matriarch of the company — an easy comparison given that she’s also his mother.

“She’s so positive and cares about all our employees,” he said.

“She is the mom.”

While Ms. Forestall said it’s been a privilege to see her company thrive, putting people to work, particularly women, is her greatest joy.

“One of the things I feel good about is I’ve worked with so many great women over the years and had the opportunity to give other women opportunities, and I hope to continue to do that,” she said.

— Timothy Magaw

Jacqueline Forestall launched Alego Health in 2004.

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WOMEN OF NOTE

JULY 8 - 14, 2013

Marcia Fudge U.S. Representative 11th District

A

s chairwoman of the Congressional Black Caucus, U.S. Rep. Marcia Fudge, D-Warrensville Heights, frequently is called upon to comment on issues that affect African-Americans.

But she is proud that she has been equally active in pressing for women’s rights. In particular, she has pressed hard to achieve equal pay for women in the work force.

“We can’t continue to have more than 51% of the people who live in this country, as well as 54% of the people who vote in this country, continue to be underpaid,” she said in an interview in her district office. “So at some point, we’re going to win this battle.”

Rep. Fudge repeatedly has been a co-sponsor of the Paycheck Fairness Act, which would expand the scope of the Equal Pay Act of 1963 and would help reduce the pay disparity between men and women. The bill has failed to pass Congress several times over the last several years.

Rep. Fudge, 60, is in her third full term. She was elected after the August 2008 death of Rep. Stephanie Tubbs Jones.

The Congressional Black Caucus elected her its chair in November 2012.

Her two passions even as a young person were in competitive arenas — sports and politics. A graduate of Shaker Heights High School, she played several sports, including basketball, field hockey and soccer. She was voted outstanding female athlete of her graduating class.

As a youth, she campaigned for Carl Stokes in his run to be mayor of Cleveland.

But she doesn’t see her competitiveness as a quest to be on the top of the heap.

“I’m a competitive person, but a team sports person,” she said. In team sports, the congresswoman notes, “you’re not competing against the people around you, you’re competing with the people around you.”

Former Cleveland Mayor Jane Campbell was a high school classmate of Rep. Fudge.

“She wanted everyone to have playing time,” Ms. Campbell said.

“There was never anything that was a showoff about her. It was all about moving along and playing the game.”

Rep. Fudge is a graduate of Ohio State University and Cleveland-Marshall Law School.

She served as Rep. Tubbs Jones’

CRAIN’S CLEVELAND BUSINESS

“We can’t continue to have more than 51% of the people who live in this country, as well as 54% of the people who vote in this country, continue to be underpaid. So at some point, we’re going to win this battle.”

– Marcia Fudge U.S. Representative, on women in the work force

U.S. Rep. Marcia Fudge, D-Warrensville Heights, was elected chair of the Congressional Black Caucus in November 2012.

chief of staff before being elected the first African-American and first woman mayor of Warrensville Heights from 2000 to her election to Congress in 2008.

— Jay Miller

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SPECIAL THANKS Crain’s Cleveland Business would like to extend a thank you to the Museum of Contemporary Art and its staff, especially Tom Poole, the director of marketing and design, and Jill Snyder, executive director, for their help in facilitating the 2013 Women of Note photo shoot.

Fifteen of this year’s honorees were photographed and filmed at MOCA in early June.

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Marcie Goodman

Sharon Sobol Jordan

Executive director Cleveland International Film Festival

President and CEO The Centers for Families and Children

T

T

he audience jumped to its feet and roared during a sustained standing ovation at the conclusion of the documentary on Anita Hill. Moviegoers were thrilled when the civil rights champion unexpectedly came strolling down the Tower City auditorium aisle hand in hand with Oscar-winning filmmaker Freida Mock after the segment aired this past April during the 37th Cleveland International Film Festival.

“The audience went insane for two or three minutes,” festival executive director Marcie Goodman said. “Everyone there will never forget that moment.

It’s why we do this — we’re making memories for people.”

Ms. Goodman’s efforts deserve applause as well, as the film festival’s programming has upped the ante in quality and scope during her tenure.

This year’s record attendance of 93,235 is a 133% increase over the approximately 40,000 patrons the festival drew in 2001, when Ms. Goodman became executive director. She now manages a full-time staff of seven, with 175 seasonal staff members and 750 volunteers during the film festival.

Its current operating budget of $2.1 million has followed a similar trajectory as attendance; it has increased 180% from $750,000 in 2001.

The film festival relies heavily on contributing income from foundations and government entities, and in recent years has added new corporate sponsors such as Horseshoe Casino Cleveland and Akron-Canton Airport.

This year, 165 community partners aligned with promoting the film festival.

“The audience has embraced these community partners,” said Ms. Goodman, noting that each partner delivers a 60-second “elevator speech” prior to a screening to familiarize the audience with its mission.

“This festival belongs to the community.”

This past festival marks the first time in 20 years Ms. Goodman tacked on an extra day to the event, which this year was 12 days. Ten of the 11 Tower City Cinemas theaters showed 180 features and 164 short subjects from 65 countries.

“We’re so focused on how to make it better, not bigger, but the two seem to go hand in hand,” she said.

Indeed, the film festival in 2007 became eligible to

Under the guidance of Marcie Goodman, the Cleveland International Film Festival set an attendance record in 2013. submit live-action short films and animated short films for Academy Award consideration.

Several have nabbed Oscars since, including this year’s “Curfew,” the story of a depressed man asked to care for his niece, which won the Oscar for live-action short film.

“Marcie keeps the festival laser-focused on delivering the best independent films from all over the world to Cleveland,” said Mark Smith, board president. “She is the heart and soul of our leadership.”

Ms. Goodman has spent the bulk of her career with the film festival, which she served from 1987 to 1994 as associate director. She rejoined the organization as managing director in 1998 following an interim stint at MOCA Cleveland, formerly Cleveland Center for Contemporary Art. See GOODMAN Page W-7

Porter Wright is among WKH ÀUVW $&& 9DOXH &KDPSLRQV LQ WKH ZRUOG KRQRUHG E\ WKH $VVRFLDWLRQ RI &RUSRUDWH &RXQVHO

he Centers for Families and Children has come a long way in a short amount of time, president and CEO Sharon Sobol Jordan says.

She attributes the nonprofit’s growth over the past few years to innovation, attentive client service and strategic partnerships, but those initiatives are in large part due to her own mission of bringing about broader change.

The human services organization during the seven years Ms. Jordan has served as its first woman president and CEO has doubled in size and reach, to the point where it now employs 500 and serves about 20,000 individuals a year. The annual budget during the same period more than doubled, to $42 million from $20 million.

“I believe The Centers can be a beacon for innovation and impact in social services, helping people and communities achieve lasting, positive change,” Ms. Jordan said.

“We must have the courage to be disruptive, and every day I must do my best to encourage innovation from inside.”

She has looked outside her organization, too, in determining that one of the most effective ways to strengthen its impact was to merge in 2011 with El Barrio and West Side Ecumenical Ministry. The affiliation enables The Centers to incorporate work force development and food distribution into its menu of human services, which include health care and education.

Change isn’t always easy, said Judy Peters, executive vice president of The Centers and former president of West Side Ecumenical Ministry. Ms. Jordan, however, negotiated the merger with her organization by paying careful attention to the partner entities’ expectations.

“I’ve been through (mergers) before and hardly anything fools me,” Ms. Peters said. “I was pleasantly surprised. She was genuine, responsive and inclusive. She doesn’t get run over and doesn’t run over you.”

Ms. Jordan also has beefed up the operation’s sources of financing by establishing an employee assistance program that in 2012 generated more than $1.5 million in revenue.

Her career has spanned the private and public sectors. She entered the professional services field by way of Cleveland law firm Schneider, Smeltz, Ranney and LaFond, where she ascended from associate to partner.

An eight-year career as law director and special counsel to former Mayor Michael White followed. Between 1992 and 2000, she played a key role in critical issues, including efforts to keep the Cleveland Browns from leaving town and protecting the community from impacts of the acquisition of Conrail by Norfolk Southern and CSX railroads.

“I loved every minute of it,” she said. “(Mayor White) had a clear vision for the city of Cleveland … and an intense sense of urgency about doing all that we could to improve the lives of the people we served.”

She served as chief operating officer of The Centers under Lee Fisher, the organization’s president and CEO between 1999 and 2006 and former lieutenant governor of Ohio.

Ms. Jordan is a board member for several organizations, including the MetroHealth System, Cleveland Transformation Alliance and Ohio Legal Assistance Foundation. Her community involvement extends to the Fund for Our Economic Future, Mental Health Advocacy Coalition and United Way of Greater Cleveland. She is a member of In Counsel with Women and a Leadership Cleveland 2003 class member.

Ms. Jordan earned her bachelor’s degree in public administration from Indiana University and her law degree from Ohio State University.

She resides in Chagrin Falls with her husband, David Wallace. She has three children: Anne, 19; Grace, 22; and David, 24.

— Kathy Ames Carr

Innovative legal project management concepts and alternative fee arrangements were critical to being honored as a 2012 ACC Value Champion.

The Centers for Families and Children has doubled in size and reach during Sharon Sobol Jordan’s seven years as its president and CEO.

WOMEN OF NOTE LUNCHEON

We earn our stripes. porterwright.com Cincinnati

|

Cleveland

|

Columbus

|

Dayton

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Naples

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Washington D.C.

This year’s Women of Note class will be honored at a luncheon on Thursday, July 18, at LaCentre in Westlake.

The luncheon runs from 11 a.m. to 1:30 p.m.

To register, go to www.crainscle-

veland.com/WON or call Denise Donaldson at 216-771-5159. Ms. Donaldson also can be reached at ddonaldson@crain.com.

The deadline to purchase tickets for the Women of Note event is this Friday, July 12.

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Susan V. Juris President University Hospitals Ahuja Medical Center

W

hile the architectural splendor of University Hospitals’ new, $298 million Ahuja Medical Center in Beachwood is a great marketing tool, strong leadership from Ahuja’s president, Susan V. Juris, is one of the paramount reasons the medical center has established itself quickly as a force in Cleveland’s eastern suburbs.

The leader of a new hospital is more than a number-cruncher or top-down manager. He or she must become a fixture in the community and focused on drumming up support (and business) for the new facility — a role for which Ms. Juris appears to have been a perfect fit given her strong business background.

“From a market perspective, it’s the best challenge you can have — taking this brand new, state-ofthe-art facility in a great community and positioning it,” said Ms. Juris, who has spent a considerable amount of time over the last year meeting with area mayors to understand the specific health needs of the community.

“I can’t think of a better way to position a brand new medical center as not just the place you go when you’re really sick, but a place that really cares about you and your family,” she said.

Ms. Juris was lured to Cleveland in 1999 thanks to a persistent head hunter who saw something special in her background. Unlike most hospital executives, Ms. Juris started her career in the mid-1980s working for large, publicly traded

companies in the Philadelphia area, including food service and uniform company Aramark, or ARA as it was known at the time.

But when UH — and thus the notfor-profit health care realm — came calling, she was intrigued.

“I had never been in that world before, and I thought I could bring a different skill set, much more of a business set, marketing expertise, program development and aggressive growth,” Ms. Juris said.

Ms. Juris joined UH as vice president of its home care services division and was promoted to lead the unit in 2003. During her tenure, the home care division was restructured, its service line expanded and the division sustained record levels of growth and profitability. While at UH, she also has led the system’s extended care campus in Chardon and served as vice president for patient access for UH Physician Services.

“It’s been a very successful fit for both of us, and now I’m sitting here with my dream job,” she said.

While women are prominent in clinical roles and middle-management in the health care industry, high-level managers at hospitals and health systems are predominantly men. Conscious of her responsibility as a top-tier female executive, Ms. Juris encourages women to seek out those leadership opportunities.

After all, she attributes her own success to being firm in her beliefs and being able to sell her own ideas. She remembers one particular instance of standing tall

Susan V. Juris joined University Hospitals in 1999 and is now in charge of its new $298 million Ahuja Medical Center. during a board meeting dominated by men in the late 1980s — when, she said, the glass ceiling was much lower and thicker — to ensure her voice was heard.

“Women have to go for it, and they have to compete,” she said.

“You have to have the push from the women themselves, but the pull from the high level to ensure there’s an opportunity,” Ms. Juris added. “I think that’s where you’ll see continued change.”

Richard Hanson, president of University Hospitals’ community hospitals and ambulatory network, said the firm leadership style Ms. Juris exhibits is what has made her such an effective leader for the rapidly growing medical center.

“She’s easy to get along with, yet when she has to be demanding, she is,” Mr. Hanson said. “She’s not afraid to voice her opinion.

“She has that ‘can do’ attitude,” he added. “She rolls up her sleeves and is always 15 steps ahead of me.” — Timothy Magaw

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2013

Woman of Note Passionate. Courageous.

Dedicated to real change in the Cleveland area.

From blazing trails in philanthropy, to improving and transforming the health and well-being of individuals, families and communities, Saint Luke’s Foundation President and CEO Denise San Antonio Zeman embodies the vitality and spirit of Cleveland, her hometown.

We enthusiastically congratulate Denise for being a 2013 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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SueAnn Naso

ONLINE FEATURES This year’s Women of Note were filmed answering questions about their respective rises up the corporate ladder and other issues facing women in the workplace. The videos will be available at www.CrainsCleveland.com on July 18, the date of the Women of Note luncheon.

The questions asked and answered included: ■ What is one characteristic that you believe every female leader should possess?

■ What advice would you give to a young professional woman just starting out in her career?

■ Who has been your greatest influence and why?

■ Why did you choose your career?

■ When things get tough, how do you keep yourself going? What motivates you?

■ If you were stranded on a desert island, what three things would you want with you?

■ Who is your favorite artist and/or piece of art?

President Staffing Solutions

W

SueAnn Naso has guided Staffing Solutions’ work-life balance program, which has been recognized nationally for its results.

hen SueAnn Naso had her second child in 1995, her life went out of balance. Like most women who want to start families, she was pulled in two directions, with a bigger commitment at home combined with a full-time career at Staffing Solutions Enterprises. Something had to give.

Ms. Naso approached her boss, CEO Carmella Calta, with her problem. She wanted to give 100% to her family and her career, but she was prepared to shift gears if Staffing Solutions wasn’t able to

JULY 8 - 14, 2013

“We did it because it was the right thing to do, but it also helped us retain our talent. When she had her son, we created an alternative schedule to ensure that we kep her in our ranks. She enjoyed that, and she benefited from it.”

– Carmella Calta CEO, Staffing Solutions, on allowing SueAnn Naso to reduce her hours after Ms. Naso had her second child in 1995 give her more flexibility.

Ms. Calta would not let her go.

Instead, they worked on a plan that would reduce Ms. Naso’s hours in the office and give her more time to raise her family.

“I was nervous,” said Ms. Naso, who now is president of Staffing Solutions, which is located in Mayfield Heights. “I didn’t want to leave, but if they didn’t support this recommendation I would have had to go out and see if I could find a part-time job or something else.”

That move launched Staffing Solutions’ flexible work-life balance program, and last year — under Ms. Naso’s guidance — it was recognized nationally with the Alfred P. Sloan Award, a research-based initiative that highlights how flexible workplaces can yield results.

“We did it because it was the right thing to do, but it also helped us retain our talent,” Ms. Calta said. “When she had her son, we created an alternative schedule to ensure that we kept her in our ranks. She enjoyed that, and she benefited from it. As she became promoted into leadership roles, she really always supported that.”

All 24 full-time staff members at Staffing Solutions are female. According to Ms. Calta, there are many years during which Staffing Solutions retains all its employees, like last year. This year it’s only lost two employees. Staffing Solutions has a number of employees who have been with the company for at least 15 years while others, like Ms. Naso, have been with Staffing Solutions for more than 20.

“If we do have turnover, it’s for the reason that the individuals have grown beyond what we can currently offer them and a lot of times they work for one of our client companies,” Ms. Calta said.

“It’s a very low percentage, way below industry averages.”

Pioneering for work-life balance isn’t the only way Ms. Naso influenced women’s development in the human resources field. She and Ms. Calta in 2006 co-founded the Executive HR Women’s Network.

“There were so many women in the HR field,” Ms. Naso said. “We had so many clients who were at a VP level of HR or director level of HR who really didn’t know each other or have resources to bounce ideas off of. So there was a real need there to create a group, kind of like a safe environment for women at the executive level.”

Over the last few years, the network has expanded its approach to include all women leaders in management, not just those at the executive level. It has created mentoring opportunities for those just starting their careers and offers workshops focused on development. — Chris Sweeney

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Jeanette Preston President and lead auditor Smithers Quality Assessments

J

eanette Preston is truly a people person. When asked about the best part of her job as president and lead auditor at Akron-based Smithers Quality Assessments, Ms. Preston quickly cites the people: the people whose businesses she audits, the people she’s met while traveling and the people she works with every day.

It’s obvious Ms. Preston likes to help people improve, whether she’s talking about helping a business operator identify ways to lower costs safely or working with her team to identify and overcome their shortcomings.

“To see them be successful and to learn more and to grow personally and professionally is extremely rewarding,” she said of her team at Smithers Quality Assessments, which audits the performance of companies against quality, safety and environmental standards.

It’s a good trait for someone in her position. Auditing is all about working with people, from the maintenance employees on the floor to the executives in the board room. Ms. Preston and her team help connect the dots between employees and CEOs at all kinds of companies, from small machine shops to large conglomerates.

The work has its challenges. The hours are long — a manufacturer that runs 24 hours a day needs to have each and every shift checked — and auditing can be mentally draining, Ms. Preston said. Plus, the clients occasionally can be rude.

“No one likes to be audited,” Ms. Preston said.

But most see the benefit and ultimately want to improve, she said.

Smithers Quality Assessment is a global company that’s “definitely in a growth mode,” Ms. Preston said. The company just opened an office in China and is looking to open another location in Europe.

She enjoys traveling to meet with the company’s global clients, getting to learn about how companies operate in different countries and about the religions, histories and food of those various cultures.

Ms. Preston was promoted to president from vice president in March. She came to Smithers about five years ago from the company now known as QMI-SAI Global, which does auditing and training for companies.

“To see them be successful and to learn more and to grow personally and professionally is extremely rewarding.”

– Jeanette Preston president and lead auditor, on her team at Smithers Quality Assessments She has spent most of her career in quality, but it wasn’t her original plan. When she was going to school, it wasn’t something people could major in, she said.

She went to Cleveland State University and graduated with a bachelor’s degree in psychology, which she said has helped her understand how to work with different types of people over the years. Her first post-collegiate job was in the accounts payable department at Bearings Inc., an industrial parts distributor today known as Applied Industrial Technologies. When the company started a quality department, she took a job there and never looked back.

She left that company after about 10 years in 1995 to be with her son; after a few months, she returned to the industry and took a job with AGA Quality, which later became QMI. She spent nearly 12 years there.Ms. Preston’s children have grown up with her constant traveling, and they’ve gotten used to it, she said. Her youngest son graduated from St. Ignatius High School this year, another is a student at Cleveland State, and her stepson and stepdaughter are both married with families of their own.

Ms. Preston said she appreciates Smithers’ commitment to ethics, saying the company takes responsibility for its decisions and, when necessary, its mistakes. It can be difficult, she said, but the company will walk away from a client before doing something unethical.

“We want our certificate to mean something,” Ms. Preston said.

She likes where she is now, and she said she intends to retire from Smithers — in a way. She said she’d like to continue to audit on a contract basis even after she officially steps down. She works 80 hours a week or more, but she doesn’t mind. She loves what she does. It’s all about “self-pride and self-motivation,” she said.

Ms. Preston is “very results-fo-

Goodman continued from PAGE W-4

Ms. Goodman’s foray into the nonprofit world began at the former Federation for Community Planning, now Center for Community Solutions, after graduating from Case Western Reserve University.

The Cleveland Heights resident is a fellow of the executive program for nonprofit leaders at Stanford University School of Business.

She received in 2011 the Robert P. Bergman Prize and in 2008 was

presented with the Governor’s Award for the Arts in Ohio. One year later, the film festival became the first local arts organization to receive the Mandel Center’s Organization Innovation Award.

“Although I happen to be executive director, this is not about me.

My staff and board are so phenomenal,” Ms. Goodman said. “I feel like all I ever do is stand back and watch in awe and amazement at what others do.”

— Kathy Ames Carr

Jeanette Preston, president and lead auditor of Smithers Quality Assessments, is “very results-focused,” according to Michael Polovick, vice president of human resources for The Smithers Group. cused,” said Michael Polovick, vice president of human resources for The Smithers Group, the parent company of Smithers Quality Assessments. She is a transparent

leader who gives clear objectives and follows up to make sure the work gets done, he said.

She has good interpersonal skills, and she knows her team

well.

“You can just bank on her getting her results,” Mr. Polovick said.

— Rachel Abbey McCafferty

Ursuline College congratulates alumna Denise San Antonio Zeman ’74 and all of the 2013 Women of Note recipients. ursuline.edu 888 URSULINE

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Bethany Pugh Managing director The PFM Group

T

here was a time when Bethany Pugh wouldn’t have revealed the housing instability she experienced as a child, including the year she spent alternating with her mother, one of them sleeping on couch cushions on the floor while the other slept on the cushion-less couch.

But on a recent mid-May afternoon, just as willingly as she shared her life’s peaks — among them, a Harvard University education and the leadership she commands in the complex public financial advisory world — she emotionally recounted the sacrifices her single mother made and the adversity she faced.

Indeed, she starts her story there.

The divorce of Ms. Pugh’s parents when she was 9 changed the economic reality for her mother, Revella, and her. They moved from a middle-class St. Louis house to an apartment, and later found themselves living on and off with friends and family. Their car doubled as their bedroom a couple times.

Yet, the year her mother and she alternated sleeping on the couch, Ms. Pugh achieved the highest grade point average of the girls in her sophomore class. It goes to show you, she said: People don’t have to let their circumstances limit them.

“For the longest time, I was very ashamed about that part of my growing up,” said Ms. Pugh, who turns 37 on July 15. “But I realized that sharing that experience could help encourage and inspire other people.

“One of the things it truly instilled in me was a desire to be successful and a desire to be financially independent,” Ms. Pugh said.

As managing director of The PFM Group’s Ohio office, Bethany Pugh oversees a staff of five that last year handled 28 transactions with a total principal amount of $1.6 billion.

Today, she is managing director in charge of the Ohio office for The PFM Group, a Philadelphia-based firm that provides financial advice to local, state and regional government, plus nonprofit clients.

Working out of her Middleburg Heights office, Ms. Pugh oversees a staff of five that last year handled 28 transactions with a principal amount of $1.6 billion. She and her team advise clients, including the city of Toledo, the University of Akron and the Cleveland Orchestra, on the structuring of

financing, such as bond issues, for projects.

“I like solving problems and solving problems that are actually meaningful,” Ms. Pugh said. “Helping somebody raise capital to rebuild their water treatment plant … a new school building, it’s very incredible.”

Ted Ricci, whom Ms. Pugh succeeded and who retires formally at the end of this year, remembers one of the first assignments he gave her more than a decade ago. After issuing a request for proposal, the state of Ohio

received more than 30 investment banking proposals from investment banks, and Mr. Ricci tasked Ms. Pugh with drafting a comprehensive summary comparing them.

“It was an enormous version of what she had been trained to do,” Mr. Ricci said. “I thought it was going to take the better part of two weeks to do, and in three days, I had (it), highly developed and error-free. The output product was two inches thick and packed with substance.

“I was stunned,” Mr. Ricci added. “At that point, I said, ‘We have a potential superstar.’”

And superstar she has been, he said, in a profession that long has been “very, very male-dominated.”

“The firm gave her more and more responsibility, and every time, it was a home run,” Mr. Ricci said.

Ms. Pugh joined the company in 1998 as an entry-level consultant. The job presented an attractive opportunity, she said: working for the public sector in the private sector.

She moved to Cleveland shortly after the firm opened its Ohio office in July 1999.

Ms. Pugh credits the support and guidance she received in prep school — where she enrolled after someone suggested that her mother look into generous aid packages offered by the school — for paving her path to Harvard, where she studied economics and worked 20 hours a week through work-study.

Ms. Pugh recently moved to Highland Heights. Bitten a long time ago by a love of film, she played a brief role several years ago in the movie “And the Winner Is,” which starred Jerry Springer and told the story of a small town using a beauty pageant-style contest to elect a new mayor.

A former Sunday school teacher, Ms. Pugh enjoys classical movies and African-American fiction and history.

— Michelle Park

In recognition of your

remarkable achievement.

University Hospitals congratulates Susan V. Juris as a Women of Note honoree.

Susan V. Juris President University Hospitals Ahuja Medical Center

© 2013 University Hospitals

COM 00255

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Diana Richards Founder, owner and CEO Vacuum Systems International, Inc.

I

f Dale Carnegie needs a new spokesperson, Diana Richards might be the perfect candidate. She says she’s been using Mr. Carnegie’s sage advice not only to win friends and influence people, but also to build a sizable business.

Ms. Richards sells and repairs vacuum cleaners at her company, Vacuum Systems International in Cleveland. And not just a few of them, either — the company serves more than 72,000 retail stores in 15 countries. It has more than 100,000 pieces of equipment that it maintains, sometimes by helping a client’s employees fix them over the phone and sometimes rebuilding whole machines.

“Over 500,000 pieces of equipment have come through this facility, right here in Cleveland,” Ms. Richards said.

It’s a business Ms. Richards got into by accident, but one that she has grown with purpose.

It started when she was living near her home town, New Castle, Pa., in the early 1980s. Ms. Richards was suffering from Crohn’s disease and had been given some Dale Carnegie tapes. After

hearing them, Ms. Richards said she was inspired not to be constrained by her disease and began forcing herself to take walks, lose weight and generally get out of the house.

Her walks routinely took her to a strip mall less than a mile from her home, where she soon met a former schoolmate who was running a Kirby vacuum cleaner store there. When her friend quit the business shortly thereafter, Ms. Richards took her place.

“I ended up owning the Kirby store,” she said.

That soon led to Ms. Richards opening her own, larger store nearby.

“I ran a little VC (vacuum cleaner) store that did maybe $200,000 a year,” she recalls.

Then, she got divorced and left the store that she owned with her then husband, taking a job in Cleveland at another vacuum shop. She was relatively happy, but both Mr. Carnegie and her friend Kristen Paulus, who worked for a large clothing retailer in Columbus, convinced her to aim higher.

Ms. Paulus had been looking for

Jan Roller is a past president of The City Club of Cleveland.

Jan Roller Partner Davis & Young

W

hen Jan Roller’s name circulated this year as a potential candidate for Cuyahoga County Executive, she had a rare combination of attributes going for her, but high name recognition among members of the public was not one of them. However, she was well known among the Democratic Party faithful and had the benefit of a recent appointment to a board seat on the Cleveland Cuyahoga County Port Authority.

She also had a deep resume of campaigning for candidates and causes.

Her first campaign was in 1976, when she hit the trail in New Hampshire for Fred Harris, an Oklahoma senator who ran for president as a populist. A picture of Ms. Roller and President Barack Obama reflects her most recent choice for the nation’s top job; she served as a delegate for the president at the 2008 Democratic National Convention.

Angela Shuckahosee, executive director of the Cleveland Tenants

Organization, said she strongly urged Ms. Roller, a friend and neighbor in Cleveland’s Edgewater neighborhood, to run for the county job for a simple reason.

“I thought she’d be great,” Ms. Shuckahosee said. “In her political work, civil work and neighborhood activity, she routinely navigates murky waters with ease. She leads through intelligence, depth of character and wisdom.”

Ms. Shuckahosee said Ms. Roller is well-known among politicos countywide and enjoys support from young women who often turn to her as a mentor to weather “male-dominated corporate antics.”

Ms. Roller said the county job tempted her because she believes more women need to be represented at the table. However, she did not pursue it because she did not want to devote the next two years to campaigning and is more passionate about her long list of nonprofit and charitable activities.

She is a past president of The City Club of Cleveland — the community’s citadel of free speech — and now is working on tasks ranging from Near West Theatre’s fundraising for a permanent home in Cleveland to serving on Planned Parenthood’s new statewide board.

See JAN ROLLER Page W-11

a shop to keep vacuums operating at her company’s stores. When she found none, she told Ms. Richards that there was an unserved niche she should explore: Every retailer has vacuum cleaners, and every one of them needs to be fixed or replaced eventually.

So, in 1994, with Ms. Paulus’ company as a first client and some capital put up by an acquaintance, Ms. Richards took the plunge and opened Vacuum Systems International.

It was just her at first; she even slept in the place to avoid paying apartment rent. But her sales skills proved worthy of keeping the place afloat, and VSI did almost $500,000 in its first 12 months.

Within three months, Ms. Richards had hired her first employee, and in its second year, the business had revenues of about $1 million.

Since then, the growth steadily has continued, and VSI did approximately $5 million in sales in 2012, Ms. Richards said.

She isn’t done yet, though. Now Ms. Richards says her goal is to penetrate the hospitality and cruise ship businesses. She believes her company still can at least double in size. And why wouldn’t she?

“I still listen to those (Carnegie) tapes every single day,” she says with a chuckle. — Dan Shingler

CRAIN’S CLEVELAND BUSINESS

W-9

Diana Richards’ company serves more than 72,000 retail stores in 15 countries.

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7/3/2013

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WOMEN OF NOTE

CRAIN’S CLEVELAND BUSINESS

Sharon Toerek Partner Licata & Toerek

S

Joy Roller, above, attended law school at the suggestion of her twin sister, Jan. The latter also is a Women of Note honoree. (See Page W-9.)

Joy Roller President Global Cleveland

T

he terrorist attacks of Sept.

11, 2001, and ensuing recession led Joy Roller to her current role running Global Cleveland, a nonprofit focused on increasing the region’s population with initiatives that attract and retain newcomers.

There were big steps in between, however. The downturn after the attacks was tough on the television industry. With a resume that includes documentaries and shows for television, Ms. Roller’s job as a producer ended when the company she worked for closed in 2003. She did independent work, but after she was told a third time as a job-hunter how she was too experienced — a euphemism for being too old for youth-oriented TV — she decided she needed a new plan.

Her twin sister, Jan Roller, a partner at the Davis & Young law firm here, suggested she try law school. She took the advice. “I decided to get off the TV merry-go-round and live a more

authentic life,� Joy Roller said. “I saw law school as a bridge to that.�

Attending the Cleveland-Marshall College of Law at Cleveland State University, she said, taught her a more focused way of approaching issues, which she had expected from discussions with her sister during Jan Roller’s law school days. Joy Roller took a different path, though, also earning a master’s degree in political theology at Harvard University. That taught her how to consider questions of life broadly.

Both kinds of thinking guide her work today. Before joining Global Cleveland in January, she spent six years as executive director of the Gordon Square Arts District, which created a new brand for the area at West 65th Street and Detroit Avenue.

Although the arts district now is regarded as a success, the idea initially elicited surprised, blank stares. But she knew how to tell a story from her TV days, and at the district she learned now to run a nonprofit.

Now Joy Roller is putting her skills to work at Global Cleveland, which has a staff of six including her, to create a perception of Cleveland as a world-class city, a welcoming place that offers diversity, opportunity and a rich cultur-

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al life.

Over time, Global Cleveland had been seen as primarily focused on aiding emigrants, but her task is to broaden its scope because the region needs to attract talent as well as retain talent leaving the region; as she notes, “emigration will not fill the whole bill� for the region’s people needs. “This is the culmination of everything I’ve done,� Joy Roller said. “I’ve created something from nothing as a TV producer. I know how to build a nonprofit.�

How does Global Cleveland define success? The real benchmark, she acknowledges, will be the outcome of the next U.S. Census in 2020 after decades of population decline in the city. More immediately, she believes it will be measured by a changed perception of Cleveland outside the region to one of vitality and diversity.

Another item in Ms. Roller’s toolbox is an insider’s view of politics. Before launching her television career here as a producer at WJW-TV, Channel 8, in 1984, she had worked as a paid staffer for political campaigns.

After living in many cities, Joy Roller enjoys living in Cleveland. “It’s like living in a resort,� she said, compared to other, bigger cities she has lived in from coast to coast. She lives in the Coventry neighborhood of Cleveland Heights and enjoys traveling. One thing happens often here, however. On an almost daily basis she and her sister get confused with each other.

Jan Roller and Joy Roller regard each other as BFFs and brush aside the mistaken identities. Joy Roller helped them develop their identities as children. When their parents dressed the young girls in identical outfits, “Joy put an end that,� Jan Roller said.

Although Joy Roller is broadening the perception of Global Cleveland’s mission, Radhika Reddy, a partner in Cleveland-based Ariel Ventures economic development financing consultancy, said she also is continuing to reach out to the region’s many ethnic communities. “She’s taking a grass-roots approach,� said Ms. Reddy, who serves on a Global Cleveland advisory committee. “She’s helping to project a progressive view in the region on the immigration debate.

She’s very hard-working and focused.� — Stan Bullard

haron Toerek loves small business. It started when she decided to forgo job hunting after law school at Cleveland-Marshall College of Law and open her own solo practice, handling whatever work came in the door.

Even now, after narrowing her practice — first to business law, then to specializing in advertising and marketing clients and now, finally, focusing her work on the intellectual property issues — her clients are almost all small businesses.

Not only that, the partner in the Independence law firm of Licata & Toerek is the chairwoman this year of the Council of Smaller Enterprises, the 14,000-member small business advocacy organization. “I think I just got frustrated at the prospect of someone else telling me what I could and could not do with my education,� she said of the conclusion she reached after working her way through law school as a paralegal. “If I was ambitious enough that I could get a law degree while working full time, I figured I could manage a small business,� Ms. Toerek said.

So with the concurrence of her husband, Ed, Ms. Toerek opened a small office in Mayfield Heights.

Over the next few years, she practiced with a partner or two as she narrowed her practice to where it is today. “The intersection of independently owned small or midsize advertising and marketing communications businesses was not being served,� she said. “It’s a great opportunity for me to be a resource

JULY 8 - 14, 2013

“If you’re open to it and you make getting involved (in professional organizations) a priority, they really add value to your life in so many ways.� – Sharon Toerek partner, Licata & Toerek for them.�

She credits her involvement with business and professional organizations for helping to build her practice.

Ms. Toerek said she first joined and then played an active role in the local chapter of the National Association of Woman Business Owners. Next, she got involved with the Cleveland Advertising Club, now the American Advertising Federation/Cleveland, before rising to the top of COSE, which carries with it a spot on the board of the home of big business, the Greater Cleveland Partnership, the region’s chamber of commerce.

That appreciation of the value in those relationships is reciprocated. “She took on a leadership role in GCP with confidence,� said Robert Smith, a board member, a past chairman of COSE and GCP, and president and CEO of Spero-Smith Investment Advisors in Beachwood. “She’s a great problem solver. She isn’t threatened by controversy.�

Now, she’s looking to build her practice nationally, getting involved with more far-flung organizations as a speaker and a trainer. “If you’re open to it and you make getting involved (in professional organizations) a priority, they really add value to your life in so many ways,� she said. “Not just in business life but by building your confidence to be a success as a professional.� — Jay Miller

Sharon Toerek also is chairwoman of the Council of Smaller Enterprises.

20130708-NEWS--21-NAT-CCI-CL_--

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WOMEN OF NOTE

JULY 8 - 14, 2013

CRAIN’S CLEVELAND BUSINESS

W-11

Denise San Antonio Zeman President and CEO Saint Luke’s Foundation

A

s the president and CEO of Saint Luke’s Foundation, Denise San Antonio Zeman is responsible for making sure that assets historically used to cure the sick are now used in ways that keep people healthy.

Through grants, the private hospital conversion foundation attempts to advance three goals: healthy people, strong communities and resilient families.

“We really approach grant making as a partnership with the organizations we support,” Mrs. Zeman said. “I always refer to us as a work in progress. We use what we learn to make better decisions and to find those organizations best positioned to advance those strategies.”

This year, Saint Luke’s Foundation will hit the $100 million mark in grant awards, which range in size from $5,000 to $10 million and vary in duration. The organization recently defined its strategies more precisely and intends to make larger, longer-term grants to a smaller number of organizations.

“We think the best way to support the organizations we fund is to really develop their potential to achieve their outcomes,” Mrs. Zeman said. “Today, grant making is all about outcomes — making grants that achieve an intended purpose.”

Douglas Wang, chairman of the board, called Mrs. Zeman a “visionary leader” who has helped the original hospital foundation morph into an organization that remains faithful to its roots while tackling challenges that did not exist 15 years ago.

“We evolved from just a grantmaking organization to one where we try to convene and create collaboration among nonprofits in an effort to move the needle,” Mr.

Wang said.

Mrs. Zeman spent most of her career in the nonprofit health care arena before coming to Saint Luke’s in 2000. She said the move was an opportunity to take what she learned on the provider side of health care and apply it to grant making and affecting health outcomes in the community.

“Moving from health care delivery to taking this more upstream approach broadened my vision to looking at all of those things that contribute to health,” she said.

“Today, health doesn’t happen in a hospital — it happens in the community.

“In the disadvantaged communities we target, life is a challenge,” Mrs. Zeman added. “If we can address the social detriments of health — those that contribute to health status — we will have been successful.”

Mrs. Zeman said she is happiest when she is serving and nurturing, an attitude she attributes to her parents. She grew up in a multigenerational household where everyone took care of each other.

Her father, especially, taught her to be open to giving. That nurturing influence was cemented by the nuns of Ursuline College, where Mrs. Zeman saw “these strong and powerful women doing really heroic work in the community.”

Great mentors throughout Mrs. Zeman’s career have instilled in her confidence, influencing her to become a mentor to the next generation of professionals. She also volunteers with numerous community, civic and educational organizations.

“When I have the opportunity to meet bright young people, I get great energy from that. I learn from that,” she said. “It keeps me current, honest and excited about

Jan Roller continued from PAGE W-9

All those things are apart from how Ms. Roller is best known: as a take-no-prisoners defense lawyer, the first woman to become a partner at the Davis & Young law firm, which dates from 1922. She joined the firm when she returned to Cleveland in 1983 from trial-intensive jobs as an assistant county prosecutor in Massachusetts while her husband, David Abbott, attended Harvard Law School.

“In Massachusetts, I was in the courtroom daily,” she recalled, and when she was invited to join Davis & Young, it needed a litigator who could hit the ground running. She added, “Between November 1983 and November 1984, I had seven common pleas jury trials.”

Today, Ms. Roller’s peers describe her as a respected, hardworking trial lawyer and able advocate. Roger Synenberg, a litigator who once served as chairman of the Cuyahoga County Republican Party, describes Ms. Roller’s advantage in the courtroom succinctly: “Experience, experience, experience.”

For her part, Ms. Roller said she finds trial work exciting and likens going into a trial to putting on a

theatrical production.

Liberal leanings and defense clients typically do not go together.

Asked how she balances the two, Ms. Roller said she sees the law as an avenue to fairness and justice.

She said she often tells juries if they award a judgment, to award what is fair and no more. Plaintiffs and their lawyers typically seek more than that, she said.

Ms. Roller said she might have become a teacher, but Mr. Abbott suggested she might enjoy the law.

The two met in high school in Fremont, Ohio. They attended Denison University together on their way to becoming a Cleveland power couple; Mr. Abbott is executive director of the Gund Foundation.

They have three grown sons, between ages 23 and 27, all working or attending school outside Northeast Ohio.

Known as a mentor to younger women in finding work-life balance, Ms. Roller credits her ability to pursue her career and interests to shared values with Mr. Abbott and the help of their nanny. She also has a new goal in her legal career: She wants to serve as a mediator on an increasing basis.

— Stan Bullard

Denise San Antonio Zeman has helped Saint Luke’s Foundation reach $100 million in grant awards in 2013. She has been with the foundation since 2000. doing work that makes a difference to those who can make it better for the next generation.”

Mrs. Zeman said she and Saint Luke’s Foundation take the

responsibility of being stewards of community assets seriously and work toward funding decisions that make the greatest positive impact on the community.

“I consider what I do a great privilege, and with that privilege comes a tremendous responsibility to the community,” she said.

— Kimberly Bonvissuto

The Cleveland International Film Festival Board of Directors congratulates

Marcie Goodman for being honored as a

WOMAN OF NOTE!

clevelandfilm.org

20130708-NEWS--22-NAT-CCI-CL_--

22

7/2/2013

1:34 PM

Page 1

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

JULY 8 - 14, 2013

LARGEST NURSING HOMES RANKED BY NUMBER OF CERTIFIED BEDS(1)

Name Address Rank Phone/website

Certified beds

Medicare provider number

Assets ($)

Net patient revenue ($)

Net income/ (loss) $

# of FTE employees

Cost report date

Type of ownership

Administrator Steven Raichilson

1

Menorah Park Center for Senior Living 27100 Cedar Road, Beachwood 44122 (216) 831-6500/www.menorahpark.org

360

365094

11,614,354

47,606,222

(1,302,509)

464

June 30, 2012

voluntary nonprofit, church

2

Park East Care and Rehabilitation 3800 Park East Drive, Beachwood 44122 (216) 831-4303/www.genesishcc.com

274

365810

5,398,663

21,612,871

(422,921)

218

Dec. 31, 2011

proprietary, corporation

Jason Cicchillo

3

Montefiore One David N. Myers Parkway, Beachwood 44122 (216) 360-9080/www.montefiorecare.org

268

365046

33,131,419

24,644,741

(3,066,560)

347

June 30, 2012

voluntary nonprofit

Lauren B. Rock

4

West Bay Care and Rehabilitation 27601 Westchester Parkway, Westlake 44145 (440) 871-5900/www.genesishcc.com

259

365451

4,751,893

15,354,606

(1,203,939)

163

Dec. 31, 2011

proprietary, corporation

Mark Grippi

5

St. Augustine Manor 7801 Detroit Ave., Cleveland 44102 (216) 634-7400/http://staugministries.org

248

365883

7,362,392

19,303,935

588,118

278

Dec. 31, 2011

proprietary, corporation

James J. Taylor

6

Broadview Multi-care Center 5520 Broadview Road, Cleveland 44134 (216) 749-4010/www.broadviewmulticare.com

218

365757

2,424,572

18,173,810

1,059,789

206

Dec. 31, 2011

proprietary, corporation

Isaac Lifschutz

7

Pleasant Lake Villa 7260 Ridge Road, Parma 44129 (440) 842-2273/www.lhshealth.com

209

365706

3,374,071

19,672,431

1,669,337

222

Dec. 31, 2011

proprietary, corporation

Debbie Farris

7

Willow Park Skilled Nursing & Rehab.Center 18810 Harvard Ave., Cleveland 44122 (216) 752-3600/www.atriumlivingcenters.com

209

365828

2,811,677

10,607,254

(634,644)

148

Dec. 31, 2011

proprietary, other

Chad Strong

9

University Manor 2186 Ambleside Road, Cleveland 44106 (216) 721-1400/www.saberhealth.com

208

365832

3,537,984

8,399,062

(763,274)

133

Dec. 31, 2011

proprietary, corporation

Matthew Johnson

10

Carington Park 2217 West Ave., Ashtabula 44004 (440) 964-8446/www.carington.com

207

365286

3,036,775

12,339,957

1,804,848

162

Dec. 31, 2011

proprietary, corporation

Kelly Johnson

11

Franklin Plaza 3600 Franklin Blvd., Cleveland 44113 (216) 651-1600/www.lhshealth.com

203

365388

6,144,685

11,234,321

257,888

176

Dec. 31, 2011

proprietary, corporation

Julie Thomas

12

St. Luke Lutheran Community-North Canton 220 Applegrove St. NE, North Canton 44720 (330) 499-8341/www.stlukelutherancommunity.org

202

365521

16,088,431

15,308,722

1,161,136

235

Dec. 31, 2011

voluntary nonprofit, church

Evelyn Moore

13

Hanover House Nursing and Rehabilitation Center 435 Avis Ave. NW, Massillon 44646 (330) 837-1741/www.communicarehealth.com

200

365292

1,977,704

11,948,118

(587,359)

151

Aug. 31, 2012

proprietary, corporation

Jason French

13

Omni Manor 3245 Vestal Road, Youngstown 44509 (330) 793-5648/www.windsorhouseinc.com

200

365433

13,427,552

10,912,365

26,563

195

Dec. 31, 2011

proprietary, corporation

Paul Fabian

SOUND SOLUTIONS FOR NURSING HOMES Contact Mike Mullee + mmullee@maloneynovotny.com + 216.363.0100

15

Crandall Medical Center 800 S. 15th St., Sebring 44672 (330) 938-6126/www.copelandoaks.com

198

365574

4,940,057

14,969,659

221,978

224

Dec. 31, 2011

voluntary nonprofit

Robert Cameron

15

Golden Living Center at Western Reserve 9685 Chillicothe Road, Kirtland 44094 (440) 256-8100/www.goldenlivingcenters.com

198

365290

1,945,632

11,487,567

370,351

83

Dec. 31, 2011

proprietary, corporation

Amanda Eberhart

17

Greenbrier Senior Living Community 6455 Pearl Road, Parma Heights 44130 (440) 888-5900/www.communicarehealth.com

194

365192

4,657,925

11,913,104

(857,694)

139

March 31, 2012

proprietary, corporation

Jill Burke

18

Lutheran Home Inc. 2116 Dover Center Road, Westlake 44145 (440) 871-0090/www.concordreserve.com

192

365020

40,316,057

18,385,094

275,967

215

Dec. 31, 2011

proprietary, corporation

Janet M. Harst

19

Kindred Transitional Care and Rehabilitation-The Greens 1575 Brainard Road, Lyndhurst 44124 (440) 460-1000/www.kindredhealthcare.com

190

366114

15,206,039

16,443,645

(1,341,332)

159

June 30, 2012

proprietary, corporation

Elizabeth Ribar

20

Lake Pointe Health Center 3364 Kolbe Road, Lorain 44053 (440) 282-2244/www.communicarehealth.com

182

365623

1,942,365

11,277,262

(683,432)

146

May 31, 2012

proprietary, corporation

Doug McDermott

21

Andover Village Retirement Community 486 S. Main St., Andover 44003 (440) 293-5416

181

365411

2,225,518

9,651,987

(346,418)

129

Dec. 31, 2011

proprietary, partnership

Cynthia Donatone

22

Suburban Pavilion 20265 Emery Road, North Randall 44128 (216) 475-8880/www.communicarehealth.com

180

365215

3,536,704

13,175,476

(441,206)

151

Aug. 31, 2012

proprietary, corporation

Cynthia BrewerKnight

22

Vista Center at the Ridge(2) 3379 Main St., Mineral Ridge 44440 (330) 652-9901/http://vistacarecenters.com

180

365823

13,844,784

11,558,060

1,160,553

142

Dec. 31, 2011

proprietary, partnership

Stacey Bettura

22

Wyant Woods Care Center 200 Wyant Road, Akron 44313 (330) 836-7953/www.communicarehealth.com

180

365779

1,798,446

12,303,897

(100,861)

152

March 31, 2012

proprietary, corporation

Eric Hutchins

25

Pleasantview Care Center 7377 Ridge Road, Parma 44129 (440) 845-0200/www.lhshealth.com

179

365084

473,398

15,520,077

(97,312)

181

Dec. 31, 2011

proprietary, corporation

David Farkas

26

ManorCare North Olmsted 23225 Lorain Road, North Olmsted 44070 (440) 779-6900/www.hcr-manorcare.com

178

365310

11,982,167

13,503,567

1,028,047

167

May 31, 2012

proprietary, other

Candace Himes

27

Ashtabula County Nursing Home 5740 Dibble Road, Kingsville 44048 (440) 224-2161/www.co.ashtabula.oh.us

177

365741

7,651,674

10,622,041

(197,227)

146

Dec. 31, 2011

Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Information compiled by Howard, Wershbale & Co. from CMS cost report database. Additional research by Crain's. (2) Formerly Briarfield at the Ridge.

governmental, Marylou Clutterbuck county

RESEARCHED BY Deborah W. Hillyer

20130708-NEWS--23-NAT-CCI-CL_--

7/3/2013

4:19 PM

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JULY 8 - 14, 2013

CRAIN’S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

23

Inspections: App gets information in real time as contractor makes report continued from PAGE 3

Introduced after two years of development in late 2011 and modified since then, the mobile app replaces for those contractors who use it the filing of reports on a laptop in the field, or by desktop computer at the end of the day.

Instead, they are tapping the touch screen of their smart phones to file reports as they go.

The app also eliminates the need to carry a camera and later connect it to a computer, because it prompts contractors to take images with their smart phones and attaches the images to their reports.

The app, which is compatible with Apple and Android operating systems, requests information realtime as a contractor reports that certain conditions at a property exist. As a result, it helps eliminate the frequency with which contractors might file a report only to realize they need to return to a property because they neglected to inspect or photograph something.

“We have a mobile work force, so this is perfect,” Mr. Mehok said. “A lot of the business is timing.”

The app means inspection results, in most cases, reach clients 24 hours faster than they might have before, Mr. Mehok said, which should translate into betterpreserved properties. And it has proven compelling enough to one mortgage servicer that, in the last month, the company started paying to use the app. (A Safeguard spokeswoman wouldn’t identify the company.)

Unlike third-party mobile apps with similar functions, Safeguard’s app is tailored specifically to the property preservation business — some are focused on insurance, for example — and integrates with Safeguard’s internal systems, Mr. Mehok said.

“I’m not aware of another field service company that has its own,” he said.

The move to mobile Neither is Eric S. Miller.

The use of mobile apps is growing in the property preservation business, but Safeguard — in developing its own app in-house — is on the “front edge” of the trend, said Mr. Miller, executive director of the National Association of Mortgage Field Services Inc., based in Stow.

Most companies, Mr. Miller noted, are using mobile apps developed by third-party providers, or they’re encouraging contractors in the field to sign into their websites using their smart phones.

“I think the ability to get the data in quicker, more real-time … those timeframes will continue to be pressured,” Mr. Miller said. “Better work, faster work, cheaper work, those are your three options. You’re

AIR CHARTER SERVICE AIRCRAFT MANAGEMENT

Safeguard bulking up its IT staff Given all the technology Safeguard Properties has been rolling out, it isn’t shocking that its IT team has grown. Over the past 18 months, it has increased by roughly 70 people, according to George Mehok, Safeguard’s chief information officer.

Altogether, the company as of June 1 employed 1,624 people, up 538, or 50%, from the 1,086 it employed as of June 1, 2012.

Roughly 70% of that growth can be attributed to Safeguard’s acquisition last September of the field services division of Bank of America.

Safeguard — which moved its headquarters to Valley View from Brooklyn Heights in May 2009, leaving its previous home vacant — now has re-leased its former Brooklyn Heights space. It also opened a Mentor office roughly 18 months ago, and it picked up through the Bank of America deal 200 employees who now work out of Richardson, Texas. going to see a concerted effort by the industry and by a lot of people to get some type of simplistic webbased service, or you’re going to see them go mobile.”

The nonprofit association itself is developing a mobile app that its member companies, which include Safeguard, can use to stay aware of problem properties, Mr. Miller said.

Safeguard does not yet ask its contractors, which include momand-pop businesses and regional companies, to use its mobile app, but the time will come, a spokeswoman said. At present, not every contractor is jumping aboard because many are accustomed to the way they’ve done business, said Jennifer Jozity, assistant vice president of inspections operations.

But those that do use the app should find it to be a more profitable, efficient way of doing business, Mr. Mehok said, and that should ring even truer as the company puts GPS capabilities to work for contractors.

Safeguard’s information technology team is working to set up proximity routing using Google Maps, wherein a contractor would be sent on assignments in an order that’s most efficient to avoid zigzagging around town. It also in recent months started leveraging GPS information, specifically longitude

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A screenshot of Safeguard Properties’ mobile app and latitude, so it can better identify when a contractor actually is reporting from — and inspecting — the wrong property.

Tapping the data mine Safeguard’s IT team has rolled out more than the mobile app.

Using a data warehouse it implemented over the last 12 months, Safeguard is mining its data so it can share with clients when an area has more incidences of a certain type, such as mold or vandalism, and also what the probability of properties becoming vacant is in certain neighborhoods.

“We collect a lot of information that we then give back to our clients,” Mr. Mehok said, citing the 300 million data points collected about properties in any given month.

The data mining also will help Safeguard identify regions where the company needs to improve the quality of its work, executives say.

Quality “heat maps” show the company where there may be need for training, corrective action or hiring more contractors, perhaps because deadlines aren’t being met or return visits to properties are more frequent.

The company also rolled out enhancements last month to its order processing system to automate work flow and improve management of its orders. The enhanced system will report to Safeguard’s vice president of operations how long employees spend processing orders, something Safeguard executives say is not intended to be used punitively, but to identify the more productive employees who could train others, Mr. Mehok said.

“Greater efficiencies will allow us to remain a market leader, better serve existing clients and attract new clients, recruit strong and talented employees, and better protect properties in our care,” Safeguard CEO Alan Jaffa said. ■

Team NEO names chairman: PNC regional president Paul Clark Business attraction ness acumen, and ON THE WEB Story from decades of passionate group Team NEO said www.crainscleveland.com civic leadership will be its board has elected Paul Clark, regional president for PNC a tremendous asset to us and our Bank in Cleveland, as its chairman. mission to accelerate business and Mr. Clark succeeds Timken Co. economic growth in Northeast Ohio,” chairman Ward J. “Tim” Timken Jr., Tom Waltermire, CEO of Team NEO, Team NEO’s chair since 2011. said in a news release. “He brings “Paul’s renowned financial and busiunique perspectives to the regional

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efforts that are already in progress as well as insightful new ideas for moving forward.”

Mr. Clark said he is “committed to carrying on Tim’s legacy of inspiring leadership and encouraging the regional collaboration that is vital to Northeast Ohio’s economic prosperity.”

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CRAIN’S CLEVELAND BUSINESS

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Land: New developments aid ‘crisis’ Budget: Kasich’s backers say state is more efficient

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Mr. Garland said his company already is seeking approvals to launch another 45-site development in Avon, and notes that he and his competitors are out looking for land.

Such are the effects of the rebound in the move-up market in Northeast Ohio. As existing home sales took off last year, buyers for new homes reappeared and now find pickings slim in high-demand areas with good schools near employment centers.

George Davis, president of the Home Builders Association of Greater Cleveland, said some innerring suburbs are out of home-ready sites with streets, sidewalks and infrastructure, while outlying areas such as Lake County south of Willoughby and Medina County continue to have an abundance of lots.

“If we go on like this, without more lots, we’ll have a crisis, but the industry is about ready to take care of that with new developments,” said Mr. Davis, who also is president of ProBuilt Inc. in Mentor.

Websites of various builders tell the tale. Several new-home communities of national builders are down to one or two move-in ready homes or sites in existing subdivisions.

Tony Barbee, president of Pulte Homes’ Cleveland and Indianapolis division, said the big builder expects to finish selling and building up to 60% of its existing communities in Northeast Ohio this year, and has fewer than four sites left in each of its Bainbridge, Copley, Hudson and Strongsville developments.

“Obviously, the market has taken off a little bit and is stronger than we expected,” Mr. Barbee said.

“Sales were up more than 35% more than we expected. It’s good news that the market is stronger.”

The seven-year itch Pulte and other builders generally have used up distressed sites acquired from lenders or builders who gave up the fight during the downturn. This fall, Pulte will open a so-far unnamed community near Pearl Road in Strongsville with 85 lots. Mr. Barbee said it is the first Pulte-developed subdivision from the ground up in seven years in the Cleveland area.

Pulte also is about to start a new development in Copley and has at least five locations totaling several hundred acres that it is waiting for its headquarters in Bloomfield Hills, Mich., to approve for development. The publicly traded homebuilder already has boosted its staff

Contact: Phone: Fax: E-mail:

STAN BULLARD

The Garland Griffin subdivision off Bradley Road in Westlake has lots available for upwards of $130,000 apiece.

“Obviously, the market has taken off a little bit and is stronger than we expected. Sales were up more than 35% more than we expected.”

– Tony Barbee, president, Pulte Homes’ Cleveland and Indianapolis division here to 31 from 25 to handle the rise in business.

Richard Bancroft, a partner in the Bancroft-Miller Development LLC land consultancy in Strongsville, said the undersupply of lots in closer-in suburbs is such that areas with high inventory, such as Brimfield Township in Portage County, are starting to see activity. He estimates 80% of the new homes sold are below $290,000 in price, which makes it hard to develop land and compete with leftover lots in outlying areas that cost as little as $20,000 apiece.Over the last few years, Dino Palmieri, president of the Dino Palmieri Salon & Spa chain and a custom home builder, has pursued land development because so many people were exiting the business.

Not only is it tough to find land in some areas at reasonable prices, Mr. Palmieri said, but the local government approval process for developing home sites is more rigorous than it was in the mid-2000s and takes 18 months compared to a year. Materials prices also have climbed, he said, while lot prices languished until recently.

Mind if we drop in?

In contrast to the boom years before the market peaked in 2004, a back-to-basics movement is occurring, according to Robert Beaugrand, a vice president and princi-

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Still, the new budget is an increase of $6 billion over the $56 billion, two-year budget Gov. Kasich signed two years. That’s up, too, from the $50.5 billion budget Gov. Ted Strickland signed for the 20102011 biennium, though that budget passed as the recession continued to require belt-tightening.

In other words, Gov. Kasich, who characterized himself during the campaign as a cost cutter, has signed off on two increased budgets.

“That surprised a lot of people,” said Greg Lawson, policy analyst with the Buckeye Institute, a conservative think tank in Columbus.

“I’ve talked to a lot of Tea Party people and there are a lot of heads being scratched.”

Mr. Lawson said spending increases in Medicaid and education were inevitable, though his group would have preferred to have seen a deeper income tax cut and a corresponding cut in spending.

Paul Beck, an emeritus professor of political science at Ohio State University, had a different view.

“I’m not at all surprised by that,” he said.

Dr. Beck recalled that candidate Kasich signed the no-tax increase pledge of Grover Norquist’s Americans for Tax Reform and in his campaign speeches promised to erase a state budget deficit in the range of $4 billion to $8 billion through spending reductions. Dr. Beck said the governor erased the deficit by keeping in the state treasury money that used to go to local governments.

“My guess is, if you looked at local government spending you would get a different story,” Dr. Beck said. “Kasich has not taken the hard medicine himself.”

Dr. Beck was referring to the substantial cut, about $1 billion, in local government support that was made in the 2012-2013 budget and the decision to curtail the property tax rollback. In flusher times, the state offered to pay on property owner’s behalf 12.5% of local tax levies. No longer. The state will not rebate to local communities any portion of new tax issues voters pass.

Those changes have kept money that would have gone to local governments and school districts in the state treasury instead, allowing the governor to cut income taxes without cutting spending in state government.

Budget director Tim Keen and Rob Nichols, the governor’s spokesman, defended their boss’s status as a fiscal conservative. Mr. Nichols deflected comments about campaigning as a cost-cutter by contending the governor never said he would cut the budget — confirmed by a search of campaign clippings — but instead used phrases that suggested he would make government more efficient.

Mr. Keen maintains that state government is running more efficiently. He said state employment is down, but that state spending for education and Medicaid — the latter of which is the largest segment of state spending — account for the growth, As for the pledge not to raise taxes, Mr. Nichols said the answer to that should come from Joshua Culling, director of state affairs for Americans for Tax Reform, an advocacy group that asks politicians to sign a no-tax-increase pledge.

Mr. Culling said the budget increase and the boost in the state sales tax won’t cost Gov. Kasich his good standing with Mr. Norquist, the group’s founder and president.

“I don’t think he broke his pledge,” Mr. Culling said. “But I would have done things a little differently.

“I would have liked to seen him reduce the size of state government a little bit,” he said. “Maybe that’s the next bite of the apple.”

Oddly on this point, Gov. Kasich’s traditional opponents on the left have been a little more sympathetic, though they haven’t exactly become supporters.

“The needs in the state have grown,” said Wendy Patton, a senior policy director for Clevelandbased Policy Matters Ohio, a unionbacked advocacy group. “We’ve seen increasing need for medical support.”

But Ms. Patton dinged the governor’s decision to cut the property tax rollback and his earlier reduction in the Local Government Fund.

“The cuts at the local level have been terrible,” she said. “Local governments have really taken it on the chin.”

Conservative economist Richard Vedder, based at Ohio University, would have liked deeper cuts in the income tax but, overall, he’s satisfied that the Kasich administration is still in the conservative camp.

“This group of politicians, not without sin, is not as bad as sinners I’ve seen in the past,” he said.

■

CLASSIFIED

BUSINESS OPPORTUNITY Global Building And Loans Industrial • Commercial

pal of Atwell LLC, which performs engineering work for land development.

Mr. Beaugrand said builders are focused on single-family lots and 20- to 30-acre parcels in contrast to the 100-acre developments with single-family homes, townhouses and condos before the downturn.

He said he has seen Atwell’s builder clients only recently begin to order engineering work for raw land after they worked through the inventory of distressed and half-developed subdivisions the last two years.

Prospective owners of new homes are finding themselves on waiting lists for new lots or going to secondary locations, said Scott Phillips Jr., president of the Cleveland-based New Homes Group of the Keller Williams real estate brokerage. So, buyers who might have built in Strongsville are migrating to Columbia Township or Hinckley again.

Mr. Phillips even has seen people looking for homes on Cleveland’s East Side take the unusual step of looking to the West Side.

At Battery Park, a townhousestyle development in Cleveland’s Detroit Shoreway neighborhood, there were two doctors a year ago, Mr. Phillips said. Within the last year, five more doctors bought and moved in.

“There was nothing 10 or 15 minutes from Cleveland Clinic and University Hospital, so they decided to go west,” Mr. Phillips said.

Demand for the newest homes even is rebounding in a way that does not benefit builders. In Schneider’s Reserve, a Strongsville subdivision where Pulte has built the last few years, Mr. Barbee said he has heard of prospective buyers knocking on doors of people who bought new homes two or three years ago to see if they would consider selling.

■

continued from PAGE 1

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CRAIN’S CLEVELAND BUSINESS

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25

THEINSIDER

THEWEEK JULY 1 - 7 The big story: Parma Community General Hospital could become part of the University Hospitals health system by the end of 2013. Officials of both organizations said they have signed a letter of intent to explore adding the Parma hospital to the UH network. This is the second such announcement from University Hospitals in less than two weeks. In late June, UH announced plans to explore a combination with EMH Healthcare in Lorain County. Agreements with both EMH and Parma Community are expected to be finalized by the end of the year.

Not to be outdone …: The Cleveland Clinic will expand operations at its family health center in Avon to include a new inpatient hospital. The Clinic said it was in the process of securing more land to allow for the construction of the new inpatient facility near its Richard E. Jacobs Health Center in Avon. The Clinic opened the 190,000-square-foot, $93 million health center in late 2011 and just last year added a 15,000square-foot emergency department to the site.

While short on details regarding the cost and breadth of the construction project, the Clinic said the design of the facility “will be unlike traditional inpatient hospitals to accommodate the way care is delivered in the future.”

Breaking news!: A huge acquisition in the world of local television stations included Cleveland’s Fox affiliate, WJW-TV, Channel 8. Tribune Co. of Chicago reached a deal with Newport, Ky.based Local TV Holdings LLC to buy all of Local TV’s 19 television stations in 16 markets for $2.725 billion in cash. The deal needs Federal Communications Commission approval and is expected to close by the end of the year. WJW-TV is the only Ohio station owned by Local TV. Cleveland is the second-largest market among stations included in the deal, behind only Denver. Local TV has owned WJW-TV since 2008.

REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS

Endangered species in the hospital realm ■ Fueled by a string of planned mergers by University Hospitals and the continued dominance of the Cleveland Clinic, independent hospitals are becoming an even rarer commodity in Northeast Ohio.

Health care observers agree that Akron General Health System could be the next to become an arm of a larger health system.

For years, the organization had rebuffed offers to become part of a larger health system but softened its rhetoric over the last year in the face of financial stresses brought on by reimbursement cuts and rampant consolidation in the marketplace.

In addition, Akron General’s much-larger competitor, Summa Health System, agreed to sell roughly one-third of its enterprise to Cincinnati-based Catholic Health Partners, the state’s largest health system.

Lake Health, another of the region’s independent enterprises, said it isn’t looking to link with another health care behemoth anytime soon. Julie Strogin, a spokeswoman for the health system, said Lake Health is not involved in any merger or acquisition discussions, nor has the system been approached by another enterprise to have such talks.

Although it still has a contractual relationship with University Hospitals, Southwest General in Middleburg Heights also sees no reason why it would become a piece of a larger enterprise. Unlike EMH Healthcare in Elyria and Parma Community General, both of which UH said it plans to roll into its sys-

MILESTONE

Power to the Peoples: In the latest example of an out-of-market institution entering Northeast Ohio, Peoples Bank NA of Marietta agreed to acquire Beachwood-based Ohio Commerce Bank in a deal valued at $16.5 million. The bank agreed to pay $13.75 in cash for each share of Ohio Commerce, which as of March 31 had $107 million in total assets. The transaction is anticipated to be completed in the fourth quarter of 2013. Ohio Commerce’s single branch is to become a branch of Peoples Bank.

Just rewards: The National Credit Union Administration liquidated PEF Federal Credit Union of Highland Heights, and immediately, Best Reward Credit Union of Brook Park assumed most of PEF’s members, shares, assets and liabilities. The NCUA placed PEF into conservatorship on June 21 to protect the institution’s financial stability and operations. The subsequent liquidation was commenced after determining the credit union had no prospect for restoring viable operations.

An experiment in downtown dining ■ Hungry downtown workers no longer need to cross the street to get lunch.

Instead, they can just visit EatWarehouseDistrict.com.

There they can order from 13 Warehouse District restaurants. Almost all of them offer free delivery if you spend at least $10.

The website was created by Onosys, a Clevelandbased subsidiary of LivingSocial.com.

The company, which works out of an office on West Sixth Street, sells software that allows restaurants to take orders via the Internet.

For now, the website is a “fun experiment,” according to Stan Garber, director of sales for the company.

But the site, which is branded with the LivingSocial logo, is getting a little bit of traffic, Mr. Garber said on June 25, noting that it took about 20 orders the previous day.

Take your (generic) medicine!

COMPANY: Great Lakes Towing Co. and Great Lakes Shipyard OCCASION: Their 115th anniversary The towing company was founded on July 7, 1899, by a pretty big name in the business world: John D. Rockefeller.

It’s celebrating the 115th anniversary with the delivery of two new tugs, Aura and Atlas.

Great Lakes Towing says the tugs, designed

by Jensen Maritime Consultant of Seattle, “are built to the highest standards” of the American Bureau of Shipping, the U.S. vessel classification society. The tugs were launched using Great Lakes Shipyard’s 770ton Travelift.

Great Lakes Shipyard is a full-service shipyard specializing in marine construction, fabrications, conversions, refits and repairs for all types of commercial and government vessels, tugs, supply boats, ferries, barges, excursion vessels, dinner boats, research vessels and large yachts.

Great Lakes Towing, of which the shipyard is a part, is a full-service transportation company that provides tugboat and towing services, ship assistance, logistics and cargo transportation, ice breaking and emergency assistance in 40 U.S. Great Lakes ports on all five Great Lakes.

The company’s tugboat services cover more than 8,300 miles of shoreline and a water surface area of roughly 100,000 square miles.

For information, visit: www.thegreatlakesgroup.com.

The bicycle courier service working with the restaurants will deliver to anyone within a mile of the Warehouse District, said Brittany Gonzalez, marketing manager for Onosys. The site could be particularly valuable to people who are hosting meetings or anyone too busy to take a lunch break, she said.

“It’s just for fun,” Mr. Garber said. “We’re seeing how it goes.”

If the site proves successful over time, the concept could grow. Onosys already has reserved the website EatGatewayDistrict.com, but you can’t yet order food through the site.

— Chuck Soder

‘Food Network Star’ stars will align here ■ Are you a fan of this season’s “Food Network Star,” featuring as a contestant local chef Chris Hodgson?

Then you won’t want to miss a special “Food Network Star” collaborative dinner from 6 to 11 p.m. this Saturday, July 13, at Hodge’s Cleveland, 668 Euclid Ave. The dinner will feature Mr. Hodgson and “Food Network Star” cohorts Damaris Phillips, Rodney Henry, Stacey-Poon Vinney and Viet Pham.

Tickets are $100 for the event that benefits Milan-based Veggie U, a nonprofit that focuses on educating children about healthy food.

Call Hodge’s at 216-771-4000 for details.

— Kathy Ames Carr

BEST OF THE BLOGS Excerpts from recent blog entries on CrainsCleveland.com.

Premium pricing: Months after a definitive agreement was reached for the Weiss family to acquire American Greetings Corp., the family is prepared to increase the price it would pay after a special committee of the board of directors asked the family to reconsider the price “in light of recent developments.” In a July 1 letter, the Weisses said they would pay $19 a share, up from the $18.20 a share they agreed to pay under the definitive agreement and almost two dollars a share higher than the family’s original offer of $17.18 made last Sept. 25. They provide no clarification of the “recent developments” in the letter. The offer represents a premium of 32.5% to the closing price of Class A shares last Sept. 25.

tem, Southwest has seen steadily increasing patient volumes.

“Although our partnering agreement with UH allows us to seek a merger, the success that Southwest General has accomplished does not make a merger necessary,” Southwest General CEO Thomas Selden said in a statement to Crain’s. — Timothy Magaw

■ $261 million.

That’s how much Ohioans would save annually if they did a better job adhering to doctors’ guidance about medicine they should take, according to a CVS Caremark analysis highlighted in a story from Forbes.com.

In total, the U.S. health system would save $6.5 billion “if patients who were prescribed medicines actually picked them up 80% of the time,” the website noted.

(The savings would come from avoiding health costs that are incurred when people get sick because they didn’t take their meds.)

Forbes.com says even more money — $13.4 billion — “would be saved if patients on expensive brands like Crestor, for high cholesterol, or Nexium, for heartburn, switched to similar medicines that are available in cheap generic forms, like atorvastatin or pantoprazole.”

The CVS Caremark data estimate Ohioans could save $545 million annually by making better use of generics.

Here’s to a long life ■ Research conducted at Case Western Reserve University was cited in a Consumer Reports story about ways in people get better with age.

One case in point: Satisfaction with social relationships grows. The story noted seniors “typically have a smaller but closer circle of friends than younger adults, research shows. That’s because older people tend to focus on close friends and family members who are important for their emotional bonds.”

Social connectedness also helps seniors stay healthy.

“A new study suggests that seniors who volunteer — whether lending a hand to friends and neighbors or doing community work — also reap cognitive health benefits,” Consumer Reports said. “A three-year study led by researchers at Case Western Reserve looked at the health and the altruistic attitudes and deeds of 1,000 people age 72 or older at a Florida retirement community.

They found that volunteering was the most consistent predictor of cognitive well-being.”

Calling all brainiacs ■ Sick of those national rankings that tell you Cleveland is miserable, filled with crime, etc.? Then check out a new data set from TheAtlanticCities.com.

The website looked at America’s “brainiest” metros, using new measurements and rankings developed

by Lumos Labs via an online brainperformance program, Lumosity.

The analysis was based on data from 2.4 million users. The rankings “cover five key cognitive areas: memory, processing speed, flexibility, attention, and problem solving,” according to TheAtlanticCities.com.

The data were normalized into a basic brain performance index controlling for age and gender. Location data comes from the players’ IP addresses, and scores were aggregated to the city and metro level.

The brainiest metros, not surprisingly, are college towns, such as Ithaca, N.Y. (Cornell University), State College, Pa. (Penn State) and Lafayette-West Lafayette, Ind. (Purdue University).

But among large metros (1 million people or more), Cleveland cracks the top 20, at No. 16. Ohio is an exceptionally sharp state by this measure, as Cincinnati is No. 9 and Columbus is No. 17.

The five brainiest big cities are Milwaukee, Minneapolis/St. Paul, Boston, Pittsburgh and Indianapolis.

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