Crain's Cleveland Business

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MetroHealth’s ambitious main campus makeover may be the push the area needs By JAY MILLER jmiller@crain.com

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The decision to make over MetroHealth Medical Center on Cleveland’s West Side may just be the spur that gets the neighborhood surrounding the public hospital to take off. The neighborhood, with West 25th Street as its spine, has been treading water for years. Although it has a sturdy housing stock comprised of homes built in the decades before the recession, the miseries that have beset so many parts of Cleveland — a decline in the public schools, the lure of newer suburban housing and, early on, freeways that chopped up neighborhoods — cost the neighborhood its vitality and led to a fleeing middle class. Now, though, nearby city neighborhoods have rebounded, and city leaders and planners think this area has a chance to be the next Ohio City or Tremont. And, unlike in the past, MetroHealth is turning outward to embrace the neighborhood as it remakes its campus, instead of turning its back, as it had done in the past. In May, MetroHealth CEO Dr. Akram Boutros said the countyowned hospital would embark on a redevelopment of its main campus, which is bounded by Interstate 71 on the east and south and West 25th on the west. He envisions the replacement or refurbishing of most of the hospital’s buildings and he described a cam-

BY KEVIN KLEPS he statistics Dominic Antenucci reads about the Tcompiled golf industry are uglier than most of the scorecards by time-crunched weekend hackers. Just last week, PGA PerformanceTrak, which tracks golf facility revenue and other key numbers for every state, released a report that showed rounds played at Northeast Ohio courses from January to June this year are down 8.3% from the like period of 2013. On July 22, a day after the PGA report hit inboxes, Dick’s Sporting Goods fired more than 500 golf pros — 18 of whom were employed at its stores in northern Ohio. The job cuts occurred two months after Dick’s CEO Ed Stack said the company missed its See GOLF, page 25

See OVERHAUL, page 8

7

ALSO INSIDE NEWSPAPER

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pus and a hospital community that was more a part of the neighborhood that surrounds it. The hospital also plans to encourage the use of neighborhood contractors and vendors for hospital goods and services. The MetroHealth redevelopment plan likely will take more than five years to complete. But community leaders are stepping up with plans now to ready the neighborhood for a closer relationship with the hospital across the street. Currently, the West 25th Street commercial strip lacks vitality. At its north end is a gem: the newly expanded operation of Nestle S.A.’s L.J. Minor culinary products plant. But moving south, it’s mostly a gap-toothed hodge-podge of vacant lots and rundown buildings, with only a few strong commercial operations and little attractive retailing. The corner of West 25th and Clark Avenue, though, is home to several Hispanic organizations and retailers serving a robust Latino community. At the southern end is Cleveland Metroparks Zoo, which attracts more than 1 million visitors annually. The West 25th Street corridor is one of the busiest public transit routes in the region. So the neighborhood has assets but it hasn’t been able to unite them. “The perception of West 25th Street right now is not very attractive,” said Jeff Ramsey, who is

IS THE SUN SETTING ON OHIO’S GOLF INDUSTRY?

FOTOLIA

High hopes for W25th overhaul

MORE MEETINGS Landing the Republican National Convention spurs additional event bookings at Cleveland Convention Center ■ Page 5

Entire contents © 2014 by Crain Communications Inc. Vol. 35, No. 31

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Jimmy Zeilinger delights in creating crafty sweets from the whimsical (cupcakes shaped like boxes of popcorn) to the slightly disturbing (cupcakes crawling with zombies) for his Bedford Heights-based specialty food company, Brand Castle LLC. Brand Castle is the company behind humorous holiday baking kits like the Ninjabread Cookie, which helps bakers make karate-kicking cookie figures, and Brains! Cupcakes, a kit designed for zombie and confection fans alike. The company wins when it has a “sense of humor� with its kits, Zeilinger said, citing the company’s Ugly Sweater and Ninjabread cookie kits as examples. And Brand Castle is looking to grow. In July, it acquired for an undisclosed amount the assets of Aspen Mulling Co., an Aspen, Colo.-based maker of mulling spice blends. Zeilinger said the acquisition, its first, gives the company a more constant seller compared with Brand Castle’s holiday-focused offerings and puts it further into the beverage and produce markets. Aspen’s products, which will retain its branding, typically are sold to independent gourmet stores, Zeilinger said; Brand Castle plans to pitch some of its products, like chocolate espresso cookies, to those customers. Zeilinger said he liked that the acquisition was complementary not duplicative, and that it was a product with which the company was familiar. “There’s a lot of synergy with what we do,� Zeilinger said. Brand Castle has been growing organically in recent years. While Zeilinger declined to share the private company’s annual revenue, he said sales have grown 15% to 20% in each of the past two years, and that they doubled the year prior to that. Zeilinger said Aspen is about onequarter of the size of Brand Castle in terms of sales.

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When Zeilinger set out to start a company, he drew on a variety of experiences — the lessons he learned from his entrepreneur father, Alan Zeilinger, who was president of the company that created Goo Gone; the skills he gained as a film writer and director; and his experiences as the father of two girls. Zeilinger said he had learned “so many wonderful memories are made in the kitchen and made with a shared activity.� His wife, Andrea, loved to cook and bake, and Zeilinger considered himself a “crafty kind of guy.� He realized there was a lack of youth-oriented, crafty kitchen products and set out to make a simple kit. But it hasn’t been easy. Brand

CONTRIBUTED PHOTOS

Above, product shots of the baking kits Brand Castle sells. At right, cupcakes made from one of their Halloween kits.

Castle’s first product — the Crayola Crafty Cooking Kits — sold in 2005, and the first year was a “real lesson� for Zeilinger. The company started to embrace seasonality by 2006, after learning parents didn’t want to buy a new kit every month, and became profitable within five years. When the company started, there were three full-time employees, including Zeilinger. His wife, who Zeilinger said is now in charge of recipe development, worked there part-time. Today, Brand Castle has about 25 full-time employees in its office and up to another 50 temporary employees in its warehouse, depending on where the company is in its seasonal rush. Brand Castle also has a small sourcing and quality assurance office in China with 10 employees, which Zeilinger said helps the company stay “nimble.� The company assembles many of its baking kits at its headquarters at 5111 Richmond Road in Bedford Heights, using food products made to its specifications by vendors in Ohio and Illinois. The building — with its in-house kitchen, mock-up area for customer samples and aptly named sprinkle room — also is where the products are designed and created. “It’s a fun environment,� Zeilinger said.

It pays to be gross The kits are sold under the company’s “Crafty Cooking Kits� and “In the Mix� labels, and the company makes some private label products for customers ranging from large specialty retailers to dollar stores, Zeilinger said. It’s gotten more creative in its product offerings, incorporating everything from

gingerbread houses with lights to licensed products featuring Hello Kitty and Disney princesses. The success of the Brains! Halloween-themed cupcakes made the company realize it could get a little silly and even “grossâ€? with its ideas, Zeilinger said. Today, Brand Castle has about 300 products, from the above-mentioned kits for sweet treats to creative housewares and paper products. Brand Castle’s “Festivalâ€? line features baking dĂŠcor products like sprinkles. And to Brand Castle, it’s not just what’s inside the kit that’s important. Packaging is a big part of what the company does, whether it’s in a paper box, a tin or an oven mitt. “We need to separate ourselves from the shelf,â€? Zeilinger said. He said the company has grown every year, either by adding employees or machinery to help automate the kit-assembly process. This year, it added machinery and opened a second warehouse on site. Zeilinger said the company plans to continue to grow, and while he doesn’t want to bring everything in-house, he would like to build a bakery to make ready-toeat-cookies in the future. And he said he’s already in talks with another company regarding an acquisition. Brand Castle has really “explodedâ€? in recent years, said Ken Seiter, chief marketing officer for the New York City-based Specialty Food Association, of which Brand Castle is a member. Seiter said the company was one of the first to offer interactive baking products for adults and children, which gives them an interesting product and service. “I think they’re on to something really hot, and it’s not going to go away,â€? Seiter said.

X Allison M. Boersma, &KÍ• KK ZĹ?ĚĚĞůů

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Spicing things up on farm Spice Kitchen + Bar owner has big plans after assuming lease on 13-acre property in Brecksville By KATHY AMES CARR clbfreelancer@crain.com

Ben Bebenroth negotiates overgrown arugula as tall as corn stalks in a greenhouse on his recently acquired Spice Acres farm. “We’ll either use this greenhouse for vegetable production or fig trees if we can install heated floors,” says the chef and owner of Spice Kitchen + Bar and Spice of Life Catering Co. He surveys the 13-acre Brecksville farmstead, its fallow land ripe with potential. Bebenroth motions to an adjacent structure, its future intention an indoor fishery. “We’ll raise tilapia through aquaponics,” which grows greens and fish through a symbiotic production process, he said. The visions are among several agricultural projects Bebenroth will undertake after assuming on Aug. 1 a 48-year lease on the property through Cuyahoga Valley Countryside Initiative. The serendipitous transaction dovetails with the chef’s long view of scaling up food production for his businesses and further engaging consumers with sustainable agriculture. When fully operational, the farm will produce about 50 varieties of vegetables, freshly cut flowers, hops, and eggs from pasture-raised chickens. The property will function as a community space for educational events and alfresco dining, including Spice’s sold-out Plated Landscapes events. “The farm is a natural trajectory for us,” Bebenroth said. “We could’ve opened another restaurant, which would’ve been seen by the dining public as a natural path for us. But from a philosophical standpoint, this makes more holistic sense. Farming represents truth in action. Creating positive social change is a high priority, along with the bottom line.” The initiative is a considerable undertaking, as the farm is 21 miles from Bebenroth’s Detroit Shoreway eatery. When the chef isn’t in the kitchen, he’s likely catering, all limbs moving at a pace akin to that of his earlier Marine days. But the move allows Bebenroth, an authority on responsibly raised foods, to take his operation to the next level. “The larger mission is exposure,” he says. “It’s about how many people can we get out here and what

5

All Pro Freight is carrying more weight in Elyria By STAN BULLARD sbullard@crain.com

ABOUT THE COUNTRYSIDE INITIATIVE The Countryside Initiative’s mission is to preserve the rural character of the Cuyahoga Valley. The nonprofit Countryside Conservancy was established in 1999 to assist the Cuyahoga Valley National Park in creating the program, which rehabilitates farms and farmland within the park. Private farmers lease, farm and care for the land. There are a total of 11 farms, many of which operate farmers markets and community-supported agriculture programs. JANET CENTURY PHOTO

See FARM, page 26

Avon-based All Pro Freight Systems Inc. has turned the lights back on after leasing the former Accutech Films Inc. plant in Elyria. Chris Haas, president and CEO of All Pro, said the trucking and warehousing firm needed additional space and will serve as many as 15 clients at the former manufacturing building, 41740 Schadden Road, which it will use as a warehouse. He said All Pro has placed seven of its employees at the plant. The twobuilding complex has more than 100,000 square feet and sits on 10 acres. Haas said All Pro needed the added space to respond to increased warehousing needs of his customers. The company owns about 500,000 square feet of warehouse space in Lorain County. “With increased activity at the Ford Motor Co. plant in Avon Lake, our customers are looking for more space to meet increased production,” Haas said. “We’re also seeing increased business from an improving economy in Lorain County.” The transaction is the largest industrial real estate deal All Pro has consummated since 2009, Haas said. Newmark Grubb Knight Frank brokers Terry Coyne and Mike Petrigan brokered the lease. The Accutech plant in Elyria was closed last November by Hartsville, S.C.-based Hilex Poly Co. LLC, according to a closing notice filed with the Ohio Department of Job and Family Services. Hilex acquired the Accutech facility from Amsterdambased Clondalkin Group in April 2013. Coyne, executive managing director at Newmark Grubb Knight Frank’s Cleveland office, said Haas’s move to lease the space was strategic because large volumes of space such as that All Pro leased are becoming scarce, even in Lorain County. “When space is getting tight in Elyria, it’s getting tight everywhere,” Coyne said.

RNC boosting convention center bookings By JAY MILLER jmiller@crain.com

SMG, the manager of the Cleveland Convention Center and the Global Center for Health Innovation, is staffing up in anticipation of a boost in booking business now that the Republican Party has said it will bring its 2016 presidential nominating convention to Cleveland. The Republican National Com-

mittee commitment capped a busy seven months for SMG. The West Conshohocken, Pa.-based firm took over management of the center last December, after Cuyahoga County, which owns the building, grew concerned that sales were lagging under MMPI, which had never previously managed a convention center. As of Aug. 1, 2013, one month after the center opened, MMPI had 52 events booked for 2014 and beyond. Now, SMG, which manages 68 other convention centers around

the country, has 335 events booked. Things are picking up to the point where Dave Johnson, director of sales, marketing, and public relations for SMG, said he plans to add to a sales staff of six. “We’re moving from a startup, and (with the Republican announcement) we’re re-introducing ourselves to the marketplace,” Johnson said. The booking of the political convention got the phones ringing back in the sales office. “Certainly, mega events raise the

profile of a destination as well as the host city,” said Adam Jones, a consultant in the sports and

tourism sector of the PwC consulting firm. “It can have a positive See BOOKINGS, page 8

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Some Ford Motor Co. plants might be having problems in terms of employment, but the company’s Brook Park engine plant continues to hum as its motors power their way into more popular vehicles. The plant expects to produce about 500,000 engines this year and will be pumping out about 1 million engines annually beginning around 2016, said Mark Payne, president of United Auto Workers Local 1250 in Brook Park, which represents about 1,200 workers at the plant. At a rate of 1 million engines per year, the plant will be producing more than 2,700 engines per day, or more than 100 per hour, running 24/7. Ford announced last Wednesday, July 30, that its new 2015 Transit Van will use the popular 3.5-liter EcoBoost engine, which is manufactured only in Brook Park. That’s a big deal, because the van will replace Ford’s popular “E-Series� van, which has been a top seller with fleet operators such as schools, prisons, hospitals and churches. “It’s going to be 20% of our total annual output, so of the 500,000 or so (EcoBoost engines) in the mix, the Transit Van will be about 100,000 units,� Payne said. According to Ford spokeswoman Nicole Bauers, the E-Series van was

the best-selling vehicle in Ford’s commercial segment for 35 of its 58 years of production, and it accounted for half of the full-sized vans sold in the United States. Overall, it is still Ford’s sixth most-popular vehicle, in terms of sales, Bauers said in an email. The company sold more than 66,000 of the E-Series vans in the first six months of this year, she added. Payne says the engine plant currently has enough people to keep up with the increased production. But the engine will give them more job security, while other developments at Brook Park will allow the plant to absorb employees from other Ford plants. That includes the company’s Walton Hills stamping plant, which is being shuttered, and its Avon Lake assembly plant that had been making the E-Series vans. The Avon Lake plant will remain open and producing other vehicles, but about 200 layoffs are expected there. The Transit Van will be assembled in Kansas City, Mo., while the Avon Lake plant begins making additional models of Ford’s heavyduty pickup trucks. Many of those laid off workers likely will become employees at Brook Park, Payne said. The plant also is going to start producing Ford’s new four-cylinder EcoBoost in December, which will require adding about 250 people, and

Payne said all of his new members will likely come from other Ford plants. The same goes for another round of hiring in 2016, when the plant expects to add roughly another 250 workers, he said. It might not end there, either — and won’t, if Payne has his way. While all of this work will be done at Ford’s “Engine Plant 1� in Brook Park, the site still has its former “Engine Plant 2� standing, open and able to return to production. Payne is hoping to get more engine work for that plant, possibly producing a three-cylinder version of the EcoBoost that already is proving popular in Europe. “Can you imagine if Cleveland produced the three-cylinder, the four-cylinder and the six-cylinder engine?� Payne mused. “I’m working toward that.� Unfortunately, all of the activity likely won’t increase Ford’s overall employment in the area, though it will increase the number of jobs in Brook Park.Payne said he doubts he’ll have a chance to hire new autoworkers, at least this year and next. During that time, he’ll likely get all the help he needs by hiring laid off workers from other plants, who will get the first shot at new jobs in Brook Park. “Other locations aren’t doing as well as we are right now, and we have to absorb them,� Payne said.

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More Northeast Ohio companies taking a stand An increasing number of businesses are promoting wellness by giving employees a desk at which they don’t need to sit By STAN BULLARD sbullard@crain.com

Standing desks, once strictly the domain of office workers with doctor’s excuses, increasingly are being found by visitors to Northeast Ohio offices, along with sit-to-stand desks and standing tables. One fan is Sam McNulty, a principal in Bier Markt and four other associated beer ventures on West 25th Street, who works at a standing desk built into a corner of his office overlooking the parking lot of the West Side Market. He said he enjoys being able to stretch and move around while working at a standing desk, something he discovered at an airport in Europe. “It was relaxing to be able to stretch your legs after being on the plane,” he said. “I thought, ‘This could be good all the time.’ I see it as a life hack, something you can do to make your life better.” While McNulty is more of a free spirit than the typical office type, he’s getting more company at work spaces in the region. The biggest wave in standing desk adoption came last year when Eaton Corp. opened its Beachwood campus. The global power management company added 1,000 electrically powered sit-to-stand desks — effectively one for each work station for its direct employees. Ann Marie Halal, an Eaton spokeswoman, said the company added the desks for ergonomic and wellness reasons. They are used regularly by employees, but the

company has not specifically studied usage. However, other companies are starting to add them. At CBRE Group’s just-opened Fairlawn office, the layout includes four standing desks, according to David Browning, managing director of its Cleveland and Akron offices. Browning said he and his associates felt the desks would create too dense of an environment for the office the firm opened last year at Ernst & Young Tower in the Flats, but the Fairlawn office provided an opportunity to try something different. Both offices emphasize shared work stations as part of a company policy to promote worker mobility. And he gave one a try himself recently. He said he worked standing up for a few hours recently and found he had to sit down. “I don’t know about using one on a permanent basis,” Browning said.

Now about that price … Office furniture suppliers are seeing the numbers of standing desks, sit-to-stand-desks and related products on the increase. “Last year we sold a handful. Now we’ve sold a couple hundred,” said Sean Regan, vice president of sales at APG Office Interior’s Cleveland office. He noted there are six stand-up desks at his firm’s just updated offices at Tyler Village near downtown Cleveland. Fred Chaney, president of Fairlawn-based Environments 4 Busi-

ness which has a showroom in downtown Cleveland, said, “I can’t say people are buying them in droves. It’s more than a one-sie, two-sie thing, but not significant enough to put a number on it.” However, he said he is hearing more talk about them than ever and sees their use expanding, in part because the items generally cost about 40% less than when first introduced five years ago. Added cost makes the desks an issue for many businesses in the region. Scott Ashley, senior workplace strategist at the Cleveland-based Vocon architectural firm, said he’s seeing more standing desks and associated products come into use in the region, but on a far-fromwholesale basis. He said standing desks and associated furnishings are bigger in the discussion stage than in final utilization. “They are the first thing that gets value-engineered out,” Ashley said. Sit-to-stand desks tend to run $1,500 to $2,800 and may add as much as 30% in cost to a work station, he said. Often designers find other, less-costly ways to accommodate the desire through tall tables and similar measures. Chaney said equity concerns create much of the problem in adding standing desks and similar items across the work place. “Upper-level management is giving them more attention than in the past,” Chaney said, “but if you are buying for a whole organization and just a few people get it, you get a backlash: ‘Why didn’t I get one?’

You either do it for everyone or for no one.” He said law firms are becoming early adopters thanks to their hierarchy. Partners at law firms, since they bring in billings, can get them if they want them.

“I see it as a life hack, something you can do to make your life better.” – Sam McNulty principal, Bier Markt and four other beer ventures on West 25th Street, on the standing desk in his office

Get moving Oswald Cos., the Clevelandbased insurance brokerage, fielded multiple requests for standing desks last year before it moved to its new offices at 1100 Superior Ave. Due to the cost, the firm substituted other furnishings for standing desks, such as countertops atop three lateral files or extending out from lateral files to allow people to work standing up. Tables in three cafes or dining areas in the office were also put in at bar height. “What happens if someone has to move and they have a standing desk?” said Eileen McCarthy, Oswald director of administration. “Then it becomes a question of moving furniture as well as a computer.” She said Oswald does not regret the decision; her sense is that the standing work areas are not moved

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as much as she would have expected based on requests at the planning stage. Even rarer in Northeast Ohio than the standing desk is the next step up from a standing desk: a treadmill desk. However, Judy Rosman, president of Beachwood-based RosmanSearch, tried working at an improvised standing desk to deal with an agonizing back problem. So she decided to buy a treadmill desk at a cost of $2,500 last year and liked it so much this year she bought one for her home. “Standing helped but didn’t fix the problem,” Rosman said, so she went for the treadmill desk because everyone can benefit from more exercise. Within a few weeks, her back pain eased. She would have bought standing or treadmill desks for each of her 13 employees, she said, if there were a way to keep down the noise. She said standing workers often are above the walls of their cubicles, but still need privacy for conversations at the firm that limits its physician recruiting practice to neurosurgery and neurology. Rosman notes that as a business owner with a private office, she could do as she wishes. However, she feels such furnishings are worth the investment in health and, in her case, fit her schedule, which physical therapy did not. There is one disappointment however. She said she has not lost “one pound” thanks to the treadmill desk, but she knows where to put the blame: a love for chocolate.

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leading development efforts in the neighborhood. “Our job, really, is to connect with MetroHealth and help foster its relationship with the community and to connect the hospital to economic development opportunities.” Ramsey is executive director of the Detroit-Shoreway Community Development Organization. That nonprofit is credited with re-energizing the neighborhood radiating from West 65th Street and Detroit Avenue, in part by renovating and reopening that neighborhood’s Capitol Theatre. He’s on a leave of sorts to manage the Stockyard Clark-Fulton Brooklyn Center Community Development Office, or SCFBC, a nonprofit now affiliated with the Detroit-Shoreway group. Both are part of a network of community development groups that have successfully guided development in Ohio City, Tremont and other neighborhoods across the city.

Putting people first Cleveland City Councilman Brian Cummins, who represents the neighborhood, said plans to revive the neighborhood have moved “in fits and starts” for three or four years. But he believes the experience Ramsey brings, and now the plans of MetroHealth, can light a fire in a neighborhood that has struggled. “We could barely coordinate putting banners up along West 25th Street, let alone do development projects,” he said. The plan likely will begin with a focus on residential property and attracting residents. Ramsey said the neighborhood is a good value, since in the adjacent neighborhoods to the

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A view of Ohio City, which MetroHealth CEO Dr. Akram Boutros has shown as a possible look for the area by the hospital’s overhauled main campus. north — Detroit-Shoreway, Ohio City and Tremont — housing prices have risen significantly in recent years, and rental markets are tight. Cleveland’s neighborhood development organizations have become skilled at helping developers find financing tools like historic tax credits and community development loans that make fixing up homes and apartment buildings more attractive to developers. The neighborhood immediately west of MetroHealth in 2012 became the Jones Home Historic District. That made renovations projects on more than 500 homes in a variety of styles eligible for historic tax credits. Also, Dr. Boutros said the hospital will help stimulate housing development by offering employees who move into and stay in the neighborhood forgivable down payment loans.

As Cummins noted, the West 25th Street area had been trying to get its act together before the MetroHealth announcement. In early 2012, Kent

State University’s Urban Design Collaborative was commissioned to create a redevelopment plan for the entire five-miles of West 25th Street in the city of Cleveland. Its report, sponsored by Cleveland’s planning department and a handful of other planning organizations, identified a variety of land use plans, infrastructure improvements and even branding ideas to use to bring West 25th Street back to life. That plan had the backing of Cleveland Neighborhood Progress, a nonprofit backed by local foundations and banks that helps fund neighborhood redevelopment efforts. Joel Ratner, Cleveland Neighborhood Progress’ president, said his group sees the redevelopment potential in the area around MetroHealth and expects that it and its lending affiliate, Village Capital Corp., will play a financing role. “Dr. Boutros is really thinking broadly about MetroHealth and its impact on the community,” Ratner said. “We’re very excited about the potential for that neighborhood.”

sponsor the two, three, or four-day conventions typically commit to destinations three to five years out and may be slow to bring a new destination into what may be a handful of convention cities that are in regular rotation. Johnson said he’s not yet sure how many people he will add to his sixperson sales staff, but, he said, “We’re certainly expanding.” Positively Cleveland does not have records of bookings at the old Cleveland Convention Center, which closed to make way for the new center. But in January 2006 The Plain Dealer reported that the city-run center had no bookings for February and July of that year and only one event scheduled for August, October and December. When MMPI won the contract to operate the tradeshow complex, it agreed that continuing the longterm contract would be contingent on meeting certain benchmarks; SMG has assumed that contract. The operator’s contract can be terminated if, by the seventh year of operation (2020), the center is hosting fewer than 43 exhibit hall events and 72 meetings or banquets that bring in 214,500 attendees who buy 33,000 hotel room nights. Currently, for 2015, Johnson has 37 exhibit hall events and 74 total events scheduled. Those events are expected to bring 167,697 attendees

who would book 69,209 hotel rooms. Jones said it typically takes a new convention center three to six years to reach an operating plateau. He said the competition for tradeshows is very high as more new and rehabilitated centers are competing for the business after a recessionary slump. “Meetings and conventions activity has restabilized and shown positive signs of growth reversing the downward trend that materialized following the recession period,” Jones said. “But competition remains a key challenge facing convention facilities. Destinations invested heavily in meeting and convention space over the last 15 years.” Although the Republican convention will be held in Quicken Loans Arena, the convention center likely will be the operations and broadcast center for the four-day event in the summer of 2016. Indeed, Johnson said he’s holding out the entire convention center building for 66 days that summer. The Republican Party, broadcasters and other party convention contractors and suppliers could occupy the center for all or a large chunk of that time. Having the convention center booked for more than two months solid would send the building’s occupancy rate for 2016 out the roof, above the benchmark set by the county. “That’s why we went out to dinner the night of the announcement,” Johnson said.

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benefit to the market and facility, particularly if the executive is good.” Positively Cleveland, the convention and visitors bureau, which assists meeting planners in booking events at hotels and other venues besides the convention center, is seeing a similar positive bump from the new convention center and the RNC event. “The new convention center puts Cleveland in the game when competing for conventions,” said Mike Burns, senior vice president of convention sales and services. “We’re now able to strategically go after business on a larger scale in order to attract associations and organizations that previously did not consider our destination.”

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Getting into the rotation Although he calls his operation a startup, Johnson is pleased with the Cleveland center’s booking success. About 200 of the 335 total events on the books have taken place or will come off in 2014, and another 74 are set for 2015. These are generally quick hits — luncheons or one-day events. PwC’s Jones said spaces like ballrooms book faster than exhibit halls because of the wider spectrum of events that can be programmed in that space. Trade associations that

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New acquisition gives Universal Polymer wider focus By MIKE McNULTY Rubber & Plastics News

Universal Polymer & Rubber Ltd. of Middlefield is growing again and adding to its capabilities, this time via another acquisition and a plant expansion. A custom manufacturer of molded rubber parts, extruded rubber components and extruded plastic products, Universal Polymer on July 14 acquired Universal Rubber and Plastics Corp. from Bobbie Tilton and Dave Pape, who have owned URP since 1990. Universal Polymer intends to broaden the company’s product line and add a die-cut operation to its growing business, according to Joe Colebank Jr., president and CEO of the company. Universal Polymer also completed an expansion recently at its Middlefield plant, adding 36,000 square feet to increase the size of the facility to about 125,000 square feet, Colebank said. In addition, it added a salt bath line, consisting of an extruder with a 15-inch-wide salt bath for large or wide profile extrusions. The expansion gives the company additional warehouse space that

can store more than 2,500 pallets; a new, 3,000-square-foot climatecontrolled storage room for raw material with sensitive shelf life; and a 2,000-square-foot die shop to house the firm’s wire EDM machine used in-house to produce extrusion dies. Financial details were not disclosed. Eleven employees have been added to the firm’s work force because of the expansion. With the expansion and the acquisition of Universal Rubber, “we have almost 150,000 square feet under roof to produce compression, transfer and injected molded products along with salt bath extrusions, microwave extrusions, plastic extrusions and die-cut products,” Colebank said.

Third acquisition Universal Polymer’s newest acquisition, its third in the last six years, is a custom rubber products extruder that produces products for the industrial, energy, commercial and other markets. Universal Rubber makes gaskets, bumpers, seals, bushings and shock mounts from natural rubber, silicone, nitrile, polyurethane, butyl,

Raymond — and Universal Rubber excel at their own specific but complementary areas of expertise, and both facilities are staffed by skilled veterans who will share information and best practices with one another, according to Universal Polymer, which is an operating company of private investment firm Cypress Companies in Akron. Cypress bought the company in 2002, eight years after Polymer Raymond was merged with another company, and its name was changed to Universal Polymer.

neoprene and other elastomers. It primarily serves the automotive, construction and general industrial sectors. Formed in 1980 and based in Tallmadge, Universal Rubber focuses on microwave-cured rubber extrusion and secondary operations, Colebank said, and has a large die-cut business that will broaden Universal Polymer’s product line and significantly increase the firm’s capacity. Adding those capabilities to Universal Polymer’s strengths in extrusion, molding, secondary operations and overseas sourcing will benefit customers from both companies, he said, pointing out that merging the companies also will lead to improved service. Other than Tilton and Pape, who have left the business, Universal Rubber’s estimated work force of 22 will retain their jobs, giving the company a staff of about 100, according to Colebank. He said the company’s 38,000square-foot production plant in Tallmadge will continue operating and provide additional resources to all customers of the two operations. Universal Polymer — launched in 1970 under the name Polymer

Prime benefits There are other benefits resulting from the merger of the businesses, Universal Polymer said: ■ Both locations complement each other, and each historically has specialized in fast turnaround, highmix, low-volume production, and they create a level of security for each other that did not exist before. ■ The two facilities include a variety of rubber extrusion, die-cutting and conversion equipment along with secondary machinery, creating the ability to direct production to the most efficient location, providing agility and flexibility in re-

sponding to shifts, and meeting the growth in customer demand. The acquisition of Universal Rubber fits into the Universal Polymer’s growth plan, Colebank said. The company is intent on growing organically and via acquisitions, he said. In July 2012, the company bought Dybrook Products Inc., a custom molder and extruder of rubber or plastic bumpers, gaskets, seals and other products. Dybrook has been merged into Universal Polymer’s facility in Middlefield, Colebank said. The purchase and the decision to move Dybrook to Middlefield led to the firm’s decision to expand the plant. Universal Polymer also moved production of its Silverline and Silverline Elete Tarp Strap lines from China back to Middlefield, Colebank said. He said the company will continue to travel the acquisition trail as a way to expand its operation but did not say if another purchase was imminent. McNulty is a senior reporter with Rubber & Plastics News, a sister publication of Crain’s Cleveland Business.

Westlake office building is sold for $4.6 million

600 Superior Ave. East Suite 1600 Cleveland, Ohio 44114

By STAN BULLARD sbullard@crain.com

Phone: 216.830.6830 Fax: 216.830.6807

The Atrium of Westlake office building will become the destination for new offices of two technology-oriented companies following the multitenant office building’s purchase by an investor group led by Joe Whang, a venture capitalist and software company executive. Through BR Properties Atrium LLC, Whang’s group on July 10 paid $4.6 million for the four-story building at 30400 Detroit Ave., according to Cuyahoga County land records. County documents show BR assumed a loan the seller had on the structure. The seller of the 61,000square-foot office building dating from 1979 was a Miami Beachbased investor group, Westlake Atrium LLC, which had owned it since 2007. Online county records do not disclose what Westlake Atrium paid for the property. Cuyahoga County assigns the building a market value of $4 million for property tax purposes. In a phone interview, Whang said he plans to move Matrix Software, where he is a co-founder and CEO, and Mobile Defense, where he is executive chairman, to about 15,000 square feet of vacant space in the building from Middleburg Heights. He said the companies had hired personnel over the past year and needed room to expand. However, he declined to disclose the size of their staffs or specifically when they might move. “We’re very private,” Whang said. Matrix makes case management software for county prosecutors. Mobile Defense produces software to protect the security of operators of smart phones and associated mobile devices.

STAN BULLARD

The Atrium of Westlake was sold for $4.6 million on July 10. David Browning, managing director of CBRE Group’s Cleveland office, said the brokerage, which handled leasing and management of Atrium, represented both the buyer and seller in the transaction. Whang said CBRE will continue to manage and oversee leasing of the structure. While Whang had been seeking space for some time and Atrium previously had been offered for sale unsuccessfully, Browning said the recovering office market and even Hurricane Sandy helped bring the deal to conclusion. Atrium suffered rain and water damage from Hurricane Sandy, Browning said, and the insurance claim resulting from the 2012 storm allowed the Florida-based seller led by investor Isaac Orzechowitz to replace the roof and make other improvements that readied the building for resale. “Is it a huge deal for Westlake? No,” Browning said. However, he said the deal adds two more successful technology companies to the suburb. Atrium was one of the first commercial buildings to exploit the interchange at Crocker Road after Interstate 90 opened in the west suburbs in the 1970s.

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OPINION

Who’s the boss? Who is responsible for the employees of a franchise? The corporation that sells the franchise? The small business owner who buys into the franchise? Both? A recent ruling by the top lawyer at the National Labor Relations Board has thrown into question long-standing standards that govern the franchise model used by corporations and small business owners. On July 29, NLRB General Counsel Richard Griffin announced that McDonald’s was a joint employer, making it equally liable for any alleged labor or wage violations by its franchisees. Setting aside the specific accusation of labor violations from McDonald’s workers, which are determined separately, the ruling carries implications for 8.5 million Americans who work for franchised businesses. The franchise model isn’t limited to fast-food restaurants. It extends throughout many service industries, including retailers, dry cleaners, car dealerships, subcontractors, temp agencies and others. Whatever the issues employees of these companies have, the issues are with the franchisees who hire and employ them and who set policy. Expanding that liability to franchisors could have a chilling effect beyond the abiding franchise model. Could this set precedent for contractor/contractee liability? Would corporations one day be liable for the labor practices of vendors? There is a long-established practice for dealing with legitimate employee rights violations in this country. And there is a long-established model for franchises. Leave them both intact.

It’s about time Imagine your credit card was overcharged for a purchase you made. Now imagine the company responsible for the overcharge admitted it made a mistake and still refused to refund your money. In Ohio, 270,000 employers have no problem picturing that scenario. For seven years, they’ve been awaiting repayment from the Ohio Bureau of Workers Compensation for being overcharged for insurance premiums. On July 23, the companies, many of them small businesses, learned they will finally get their refunds. In a settlement approved by Cuyahoga County Common Pleas Judge Richard McMonagle, the state’s insurance fund for injured workers agreed to pay $420 million to companies directly impacted by an illegal rating system that, in some cases, rewarded employers that did not file claims and punished those that did. In accepting the settlement, BWC administrator Steve Buehrer acknowledged the discounts were wrong but stressed significant changes have been made to the workers’ compensation system. The BWC can reinforce that it’s a new era by quickly and efficiently repaying the wronged companies so they can get back to business as usual.

FROM THE PUBLISHER

Grass can be greener, if we plan In the final scene of the 1987 movie was welcomed as a bold move by many “The Untouchables,” a breathless rebig media types, despite the fact that porter approaches Eliot Ness, who’s just 58% of Americans already think pot locked up gangster and bootshould be legal, according to a legger Al Capone, and says, Gallup poll from last October. “They say they’re going to reThe nation’s quickly changpeal Prohibition. What will ing opinion toward legalizayou do then?” tion is astonishing. (Twenty Ness, played by Kevin Costyears ago, Americans opposed ner, pauses, cracks a tiny smile legal weed 3-to-1. Just 10 years and answers. “I think I’ll have ago, it was still 2-to-1 against.) a drink.” The line on the graph looks Maybe 50 years from now, like an ocean wave. some screenwriter will come With momentum like that, up with a remake. The film will JOHN it’s just a matter of time. Marend with a blogger running up CAMPANELLI ijuana is going to be legal, to the nation’s drug czar after everywhere. some large drug bust and saying, “They This year, voters in Oregon, Alaska and say they’re going to legalize marijuana. the District of Columbia will likely agree What will you do then?” to join Colorado and Washington in full The stoic face of veteran lawman will legalization. Florida voters are expected pause, crack a smile and answer. to join the two-dozen-or-so states that “I think I’ll roll a fatty.” have some sort of legalized medical mar(There’s a reason I’m not a screenijuana. writer.) Expect a ballot measure — or even two Legalization of pot has been in the — in Ohio in 2015, 2016 at the latest. news for months. Last week, The New At the moment, we have a choice: ReYork Times ceremoniously editorialized peat the decades of sanctimony we for an end to marijuana prohibition. It showed toward casino gambling and

leave hundreds of millions on the table — and then get pushed into it by a ballot measure. Or begrudgingly acknowledge the inevitable and make the best of it. I’d prefer it if our representatives in Columbus chose option two, recognizing the unavoidable and quickly crafting legalization legislation that maximized revenue, protected kids, destroyed the black market, created in-state jobs, overhauled drug laws and funded expanded addiction programs. But that’s a pipe dream. Lawmakers, no matter the party, hide their courage at home, probably not too far from their own pipes and stash. Instead, we’ll end up with ballot measure written by folks who won’t likely have Ohio citizens and jobs in the front of their minds. It all sounds so familiar. When it passes and we’re stuck with a less-than-ideal situation, maybe one of my reporter pals will run up to me with a question. “So they legalized marijuana. What are you going to do now?” I’ll pause, sigh and smile. “I’m going to go home and watch ‘The Untouchables.’”

TALK ON THE WEB Re: Indians’ attendance Why are they spending all that money on “analytics” when it comes down to one thing: dynamic pricing? Dynamic pricing might work in some markets, even in some small markets, but it doesn’t work here in Cleveland. Note that the July 28 article, “Indians are forecasting, studying park attendance,” says that walk-up traffic is down. (I wonder by what percent). I haven’t been to a game since that policy went into place. I’m a casual game-goer who used to take my grandkids and only had to plan last minute. Now I have to pay a penalty to make that decision? NOT! — Observationist

Re: New University of Akron president I pay to go to this school. It already lacks in a lot of areas (not all) compared with other schools, and the administration wants to make reductions? There is a reason why almost everyone transfers from UA to another school — Lemon

Re: Women in the pages of Crain’s Publisher John Campanelli’s July 20 commentary, “ ‘She change’ needs to happen here,” parrots recent Plain Dealer propaganda. He writes: “Fortune 500 companies

with more women on their boards and in senior leadership do better financially than those with fewer women. Female executives, in general, bring a moreevolved culture to their teams. They’re more collaborative, more communicative. They value diversity more. And they bring a unique voice and dialogue. They are changing business and business culture for the better.” Except for examples like Mary Barra at GM … The commentary is just more unsupported, gratuitous pandering. — luvdoowop Thanks for posting from 1974, luvdoowop. — HeyYouKidsGetOffMyLawn

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Communication key in hard cases By BRUCE HENNES

Put aside for the moment IF the band director of Ohio State University’s storied marching band should have been fired. Certainly, one can make the argument that under university policy, the university administration had a strict and legal “duty to act.� And under the Civil Rights Act, provisions in Title IX prohibiting sex discrimination in education compelled OSU to take “prompt and effective steps to respond to sexual harassment.� On the other hand, the argument can also be made that OSU did not have to actually fire the band director. While the conduct of the students was odious, boorish, misogynistic and morally reprehensible, the students are, after all, legally adults. So while their behavior is difficult to defend under the best of circumstances, these were hardly capital offenses. Regardless of your position on this issue, the deed has been done. The band director has been fired and the university president has appointed a former state attorney

TALK ON THE WEB (CONT.) Re: UH’s growth Since when has Crain’s become such a hyperactive shill for University Hospitals? First you feature a cover story in the July 28 print edition comparing UH to Superman, of all things. Now, in a July 29 web story about Northeast Ohio’s largest employers, you purposely distort their “gobble up� business model by calling them a “star performer in terms of adding workers.� UH added workers by buying other hospitals, not by any successful growth strategy. And how many of those “acquired� workers — particularly on the administrative level — will still be there a year from now? Let me answer that question with a prediction. Your 2015 list will have UH leading the pack in “who’s down.� — killdeer5

Hennes is managing partner of Hennes Paynter Communications, a crisis and reputation management firm in Cleveland. general to spearhead a wider investigation. The question for business, nonprofit and government executives is this: Was the firing done the right way? I contend the answer is yes. The mantra of effective crisis communications is simple: Tell the truth, tell it all and tell it first. And that’s exactly what Ohio State University President Michael Drake did on July 24 when the announcement of the band director’s firing was made. Here’s what I saw: An email went out to students and parents. The email included a written statement and a video by Drake. In those communications, Drake was direct, forward and forthright about what happened, the actions he took and the reasons for those actions. The president’s communications included a link to what appears to be a very professional and thorough investigation by OSU’s Office of University Compliance and Integri-

ty, exemplifying the very essence of transparency, while technically complying with privacy issues related to the Family Educational Rights and Privacy Act. The appointment of a task force comprised of nationally recognized experts reporting directly to Drake and the chairman of the Board of Trustees, to review this matter in its entirety. Another mantra of effective crisis communications: It’s not what you say — it’s what you do that really counts (or to put it another way, you’ll more often be judged not by what happened, but what you did after you found out it happened). Again, Ohio State University gets high marks for this, especially given the fact its new president has been in office just a scant few weeks. Regardless of your position on this firing, it should be clear that Ohio State University set the standard for acting expeditiously in the face of controversy, and then communicating its actions quickly and decisively. While his comment predates the situation at Ohio State, Warren Buffett perhaps said it best: Get it right. Get it fast. Get it out. Get it over.

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Crain’s Cleveland Business is again this year honoring the region’s human resources professionals. In addition to the Lifetime Achievement Award (see below), 17 professionals have been selected as finalists in the categories of HR Executive of the Year; Innovation; Leadership in Diversity; and Rising Star.

LIFETIME ACHIEVEMENT AWARD Daniel S. Serbin Executive vice president, corporate human resources Parker Hannifin Corp. Parker Hannifin Corp., which makes motion and control technologies for huge swaths of the mobile, industrial and aerospace markets, has about 58,000 employees in 49 countries around the world. It’s Daniel Serbin’s job to make sure they have “the resources, skills and talent to succeed.” That’s how Parker chairman, president and CEO Donald Washkewicz described Serbin’s role in a letter supporting Serbin’s nomination for a 2012 Archer Award. And a massive role it is, since Parker, which posted 2013 sales of more than $13 billion, has more than doubled in size since Serbin joined the company in June 1980, when he became the assistant personnel manager for the company’s Hydraulic Valve Division in Elyria. Over the years, according to information provided by Parker, Serbin has held various positions of increasing responsibility within the company’s human resource operations. His experience spans several groups within Parker, including Motion & Control, Seal, Fil-

tration, Hydraulics and Fluid Connectors. Serbin has been Parker’s lead HR executive since 2007 and has been “instrumental in driving a culture of employee empowerment,” Washkewicz wrote. Among Serbin’s accomplishments at the company, Parker said, are deploying models “to help the company develop its highpotential talent as well as talent acquisition and retention strategies” in growth markets such as China and India. Serbin also spearheaded the establishment of a “culture of wellness” with Parker’s Wellness and Preventive Medicine program, the company said. Tom Tomasula Jr., global human resources partner with Lubrizol Advanced Materials and one of the judges for this year’s Archer Awards, said Serbin stood out as “a very good role model within and outside of Parker about what HR excellence can be … and how it influences the culture of an organization.” He said Serbin “has been innovative in his career” in driving change within Parker and in supporting the company’s growth plans. Tomasula noted that Serbin “is a person who has been able to drive results that impact the organization.” Washkewicz said in his letter that Serbin “truly understands and actively advocates for the value that employees have in the

success of our growing organization, and the foundation they provide for our future success. Every day, Dan exhibits the personal traits that we look for in our employees.” Serbin brings a diverse educational background to the job. He earned a bachelor’s degree in psychology from Ohio State University in 1975. He stayed in Columbus and, two years later, earned a master’s degree in public administration from the state’s largest school. A decade later, in 1988, Serbin earned a doctorate in law from Cleveland Marshall College of Law. Serbin has been a member of the Ohio Bar Association since 1989. Other professional affiliations include the CHRO/Board Academy; the HR Policy Association; the Corporate Executive Board; the Society for Human Resource Management and the Northeast Ohio Human Resource Planning Society. He chairs the Human Resource Council for the Manufacturers Alliance for Productivity & Innovation and is a board member for Junior Achievement — where he has taught business and ethics classes — and the YMCA, where he headed the capital contribution campaign for the downtown Y. Serbin lives in Avon Lake with his wife, — Scott Suttell Kathe.

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RISING STAR Lindsay Raduka Human resources director TTI Floor Care North America In two years as its director, Lindsay Raduka has “transformed” the human resources department at TTI Floor Care North America, said Americas president Dan Gregory. Raduka joined the Glenwillow-based maker of Hoover and Dirt Devil vacuum cleaners in 2009 and was promoted to her current role in June 2012. She has since implemented an “HR Focus Five,” which, according to the nomination, incorporates performance management, recruitment, training and development, rewards, and recognition and engagement to help drive business. “Not only does the Focus Five guide

the strategies we use to focus on the right things, it reinforces the overall HR objective, which is to be a catalyst for business results,” Gregory said. “This has allowed the HR team to remain relevant and engaged, and viewed as a critical driver of our organizational success.” Gregory called Raduka “a tireless team player with an immense capacity

to do great things.” The nomination credits Raduka with coaching leaders “at all levels” of the company “through a number of positive organizational restructures and realignments to drive business efficiencies and cost savings.” The effort has resulted in a double-digit growth in EBIT (earnings before interest and taxes) in the last year. Raduka led the recruitment of more than 130 hires in a 12-month span, the nomination said. She also implemented a new training and development plan, and in 2014, “secured the first training budget in company history.” Gregory said Raduka and her team have started a comprehensive fourpart program in which new employees learn about the company, are taught by senior leaders and introduced to new parts of the building in order to adapt more easily to their jobs and be flexible enough to serve in various

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roles throughout the organization. The nomination said Raduka also has worked with senior management to reward and retain top performers, and “led her business unit in consolidating health care plans and implementing a new 401(k) record-keeper to deliver significant savings to participants.” “She’s a phenomenal young talent,” Gregory said. Raduka, an avid reader, is involved with the Cleveland Society for Human Resource Management and serves as the liaison to Cleveland State University’s student chapter for SHRM. Her husband, Marko, is a well-respected youth soccer coach in Cleveland. Marko Raduka, who is also a volunteer coach for the Notre Dame College men’s soccer team, led the Cleveland United Girls Soccer Club’s U17 team to the 2013 U.S. Youth Soccer national championship. — Kevin Kleps

Parker Proudly Congratulates

Dan Serbin Achievements in Human Resources

Daniel S. Serbin Executive Vice President, Human Resources Parker Hannifin Corporation

Recipient of the Prestigious Archer Lifetime Achievement Award This well deserved Archer Lifetime Achievement Award reflects the impact of Dan’s contributions to the human resources community and as a strategic leader throughout his distinguished career with Parker Hannifin. Dan is a committed employee advocate and has long maintained his focus on creating a culture of empowerment, health and employee wellness, and serving the best interests of Parker people throughout the world. Congratulations, Dan.

LEADERSHIP IN DIVERSITY Renita Jefferson Director, diversity and inclusion/leadership development American Greetings Ten years ago, American Greetings didn’t have a comprehensive, systematic way of training the company’s future leaders. Then it promoted Renita Jefferson from the information technology department to the corporate human resources department. Jefferson, who had managed the IT department’s employee development program, “led the charge” to develop a more cohesive leadership program for American Greetings, according to Brian McGrath, senior vice president of human resources for the greeting card company. Jefferson, who reports to McGrath, has shown “a willingness to take on big challenges,” he said. Her efforts to build the company’s leadership training program led to another assignment: About four years ago, Jefferson was tapped to develop a more formal diversity and inclusion program for American Greetings. The company gave the task to her “because we knew she could turn ideas into programs,” McGrath said. Jefferson didn’t take the assignment lightly, according to the nomination. She learned about what good diversity programs look like by talking to diversity consultants and executives who run similar programs at other companies, both in the Cleveland area and throughout the country. She also gathered input from employees “at all levels, and from all divisions in the company,” the nomination stated. Jefferson recently made an effort to get more senior-level executives involved in the program: She reconstituted the Diversity & Inclusion Council, recruiting executives because of “their genuine interest and passion” for diversity and inclusion. Jefferson worked with the council to define the company’s goals, based on the needs of American Greetings and its employees. The group came up with several initiatives designed to achieve those goals — and put individual executives in charge of each one. She also played a key role in creating the first companywide employee engagement survey conducted in more than 10 years. She “helped customize the survey, organize the action planning sessions … and coordinated employee focus groups,” the nomination said. The Kenexa survey had a 92% completion rate. McGrath described Jefferson as “a great communicator and a great inspiration to other people she’s working with,” regardless of how junior or senior they might be, he said. “She has a lot of respect from a lot of people in the organization, again, at all levels,” he said. — Chuck Soder

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HR EXECUTIVE OF THE YEAR Susie Barragate Vice president, human resources; Vocational Guidance Services Back in the day, the main function of the human resources department at Vocational Guidance Services was to provide payroll support. Then, 18 years ago, Susie Barragate joined the organization, which helps find jobs for people with barriers to employment, such as former prisoners and people with disabilities. Since then she has transformed the human resources department, pushing it to take on much more responsibility, according to the nomination. Today, the department is “part of the team that helps the organization strategize, plan and reach its goals,” according to Robert Comben Jr., president and CEO of Vocational Guidance Services. Barragate has helped the organization manage explosive growth: On a daily basis, Vocational Guidance Services employs more than 1,000 people with barriers to employment. In 1999, the organization typically only employed about 330 people on any given day, Comben said. And she manages that many people with a staff of just four, he said. “She’s helped us grow tremendously,” he added. She’s one of a few individuals being groomed to lead the organization over the long term, which is why she also was put in charge of the group’s Lorain County Rehabilitation Services unit.

Comben described her as a “creative individual” who “follows through” when she takes on an assignment. So it should be no surprise that he picked Barragate to create a program designed to ensure that Vocational Guidance Services provides the best customer support possible. The result was a program called P.R.I.D.E., which stands for Personal Responsibility in Delivering Excellence. When designing the program, she gathered input from other employees and stakeholders outside the organization. The program started in 2011, with 13 training sessions led by Barragate.

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Those sessions helped Vocational Guidance Services produce a list of five “customer service commandments.” “The employees are now fully engaged in the program and have taken ownership of providing service that exceeds the expectations of our customers,” the nomination stated. Plus, last April, she organized an “Innovation Day,” an event during which employees offered up ideas to improve Vocational Guidance Services. Barragate contributed ideas inspired by a speech given by Simon Sinek, who wrote a book called “Start with Why.” At Innovation Day, she began an effort to encourage employees to learn more about why Vocational Guidance Services exists. The goal of the effort is to inspire employees and make them feel more committed to the organization, based on Sinek’s notion that “people don’t buy what you do, they buy why you do it.” Barragate is active outside the organization as well. She was a founding member of Under the Wing. Through this organization, which started at Vocational Guidance Services, people with barriers to employment provide animal rescue services. Plus, as a member of the 2013 Bridge Builders class, she helped create a curriculum for Minds Matter Cleveland, a group that helps “students from low-income families achieve academic success,” the nomination said. Barragate also encourages her employees to have lives outside of work. “She believes this balance makes her a better employee, so she leads by example, stressing the importance of balance and family presence to all employees at VGS,” the nomination said. — Chuck Soder

INNOVATION Debbi Perkul Senior workforce development professional University Hospitals Debbi Perkul’s known for seeing potential in people others might not. One of those is Roxana Shelton, who had been a University Hospitals environmental services worker for four years. She found inspiration in UH’s Bridge to Your Future initiative — a program Perkul designed. The literacy and life skills course is a bridge-to-college program for employees who want to advance their careers. The program taught Shelton math and reading skills that got her promoted to a patient-care assistant. “I can say she believed in me, she gave me a bridge and I crossed it, and she was my voice when I didn’t know what to say,” Shelton said in a testimonial included with Perkul’s nomination. According to the nomination, Perkul has devoted almost a decade to providing personal and professional development opportunities to lower-skilled individuals, which has helped them secure better, higher paying jobs. “Her inquisitive and analytical mind gives her a level of comfort to ask the right questions and state her perspective in a non-threatening and unassuming way,” the nomination said. “She is known for her wisdom, compassion, strategic capabilities and intelligence.” The Bridge to Your Future program, for instance, has an 85% completion rate and many of the participants go on to college and new jobs with higher wages. More than 200 people have graduated from the program over three years. She also helped launch GED and computer literacy classes. “She influences leaders on every level to support these programs,” said Valentina Shimizu, an organization de-

velopment professional at UH.“It’s created a movement here and impacted the community.” Perkul also developed UH’s Pathway to PCA (patient care assistant) program, which helps entry-level employees at the health system who want to move into nursing assistant positions. The program provides five weeks of intensive training and moves these individuals to patient floors to be nursing assistants. After six months, they receive further training and some are promoted to clinical technical assistants. In addition to helping their careers, employees who have taken part in these programs report increased confidence in their abilities to learn and also to help their children and grandchildren with school work, the nomination said. “They are more engaged in their work and are more optimistic about their future,” the nomination said. “With help from our partners, employees are resolving issues with defaulted loans, foreclosure and eviction, and better able to support family members who are in the legal system. “With resolution of these problems, our employees are better able to maintain focus on their work, making them more engaged employees and students, which makes their futures brighter.” — Timothy Magaw

Congratulations Christine Higham Deputy Director, Human Resources County of Summit

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HR EXECUTIVE OF THE YEAR Dennis Armstrong Chief human resources officer Vitamix During a time of rapid growth for Olmsted Township-based blender manufacturer Vitamix Corp., chief human resources officer Dennis Armstrong has had an important role. “He’s been able to make sure our culture continues to get stronger,” said president and CEO Jodi Berg. Vitamix has nearly tripled its number of employees and opened a new plant in Strongsville since Armstrong came on board in September 2011, Berg said. Armstrong brought the systems and processes the company needed to do that successfully. “Dennis quickly conducted a thorough organization assessment to determine what was working, what was not and what we needed to do to support the company,” the nomination said. “The assessment included working on our manufacturing line and other key areas of our organization, reviewing prior financial results and employee survey results, and conducting more than 60 interviews with senior leadership, managers and employees across all areas of the business. Dennis then created the HR strategy to support the business strategy and presented it to our leadership team and the Board of Directors in less than six weeks from his arrival. The plan has provided the foundation and road map for HR initiatives to support our business strategy and drive results.” The nomination said Armstrong has implement-

ed or led a host of programs and processes since joining Vitamix less than three years ago, including creating an HR organization structure that grew the team from four to 22, implementing structured interview training and on-boarding and exit surveys, and improving upon the company’s engagement survey. He also brought a “culture shaping” process to the company, which Berg described as an “engaging and inspiring” hands-on learning experience. The process helps employees discover who they are and how they fit into the Vitamix culture, Berg said. It gives everyone a common language. “This process enabled us to keep and improve our culture despite extraordinary growth over the

last few years,” the nomination said. “Our survey results indicate that over 90 percent of our employees believe that our company operates based on strong values and over 92 percent believe that they understand our vision, mission and values.” Berg also praised Armstrong’s communication skills and his strong sense of empathy. The nomination said he “brings a unique blend of interpersonal, strategic and analytical skills that enable him to quickly develop strong credibility and strong working relationships with a broad variety of people.” He has a Ph.D. in industrial and organizational psychology. Outside of his responsibilities at Vitamix, the nomination said he supports the fundraising efforts of the World of Children Award and the Columbus School for Girls. He also leads the Board of Governors meetings for the World of Children Award and has been involved in the Children’s Hunger Alliance in Columbus. He is a member of the Society for Human Resource Management and was previously a member of the American Psychological Association and the Society of Industrial and Organizational Psychologists. “Dennis demonstrates successful leadership by actively living our values and guiding principles and holding himself and others at all levels of the business accountable for adhering to our values and guiding principles,” the nomination said. “Dennis has developed strong relationships with employees at all levels of the organization by spending time with them, listening to their issues and concerns and addressing all issues in a fair and balanced fashion.” — Rachel Abbey McCafferty

THE JUDGES TOM TOMASULA JR. Global partner, human resources, Lubrizol Advanced Materials division The Lubrizol Corp. THOMAS E. HOPKINS Senior vice president, human resources Sherwin-Williams Co. AMY B. SHANNON President Pinnacle Leadership Solutions TOM MAXWELL Senior vice president Fifth Third Bank KATHY STECKY Principal Stecky HR Consulting

HR EXECUTIVE OF THE YEAR

AKRON GENERAL CONGRATULATES Crains’ 2014 Archer Award finalist

Rising Star Recipient

DON CORPORA

AMANDA VOWLES

Executive Vice President *OPLM /9 6MÄJLY

Director Training & Organizational Development

Rising Star recipient

Their contributions are recognized as talented HR professionals who consistently “hit the mark” by building Akron General with a combination of the best people, talent, development and culture in the Northeast Ohio region.

akrongeneral.org

Judi McMullen Vice president, chief human resources officer Cuyahoga Community College Remember what your college professors were like? Remember what it was like to try to keep two, three or four of them happy at the same time? Then imagine what life must be like for Judi McMullen, who has to keep nearly 1,400 professors, teachers and other administrators and employees of Cuyahoga Community College happy, informed and engaged. Fortunately for both McMullen and Tri-C’s employees, she brings 25 years of experience to the job — because this is not HR 101. Sure, there are the smaller, but still important assignments, such as creating cross-functional teams that engage employees more broadly in the organization, or implementing and tracking a program that allows employees to recognize one another’s efforts with “thank you” e-cards. Then there are the major tests, such as when McMullen chaired the search committee that found a new president for Tri-C’s Western Campus, or when she worked with other executives to update the administration and finance division’s strategic plan. There’s even outside work for extra credit, such as chairing the HR board for the Ohio Association of Community Colleges, which includes not just Tri-C, but 22 other community colleges across the state. And, of course, McMullen must be able to organize her own work. “Judi’s ability to engage staff, faculty and others in the college community environment has allowed her to restructure the human resource department, making it more efficient, effective and a vital resource for the college,” wrote Tri-C president Alex Johnson in a letter accompanying the nomination. “Judi has shifted the college’s perception of HR from a depart-

ment of last resort to one of trusted consultants and advisers.” At the same time, McMullen still has to do what some might term basic labor relations. She is actively involved in negotiations with the college’s three labor unions to finalize collective bargaining agreements. That means she has to work toward agreements that meet the needs of college employees, while allowing the college to maintain a balanced budget through controlling costs and improving efficiencies. Last, and certainly not least, there is one more group that McMullen must serve in her job — the students. A college is only as successful as its students, in the long run, and Johnson wrote as part of the nomination that McMullen knows that better than anyone. “Judi keeps student success a priority for her team and understands how her department directly contributes to students’ achievement of their educational goals,” the letter said. “Her work, which led to the establishment of the Sustained Dialogue Campus Network program, is but one example of her efforts to help students succeed. Tri-C is the first community college to participate in this program, with partners from Harvard, Yale, Princeton, etc. This program allows our students the unique opportunity to learn about diversity issues, receive mediation training, and work closely with campus leaders.” — Dan Shingler

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RISING STAR

INNOVATION

Amanda Vowles Director of training and organizational development Akron General Health System

Jennifer Compton Human resources manager Automation Tool & Die

Amanda Vowles’ favorite phrase is: “What if we …,” according to her nomination. Vowles, director of training and organizational development at the Akron General Health System, has spent her entire HR career with the organization, earning the respect of her superiors and co-workers along the way. “She has certainly earned my trust,” said Don Corpora, executive vice president and chief human resources officer, who has known Vowles for about eight years. “She sees the organization from a 30,000-foot level.” In fact, according to the nomination, Vowles was so highly regarded by senior leadership that she was chosen to lead Akron General’s 2nd Century Leadership program, which is intended to raise leadership skills for highly experienced executives as well as up-andcoming managers and supervisors. She also is one of Akron General’s Tony Gorant Leadership Akron participants, which is a group of individuals committed to public service along with their Akron General duties. In that capacity, Vowles already has risen to become a board member for Project Learn. According to Corpora, Vowles — who has two direct reports — also has worked to change new employee orientation as well as the performance evaluation program. Additionally, she is working on ways to make Akron General’s tuition assistance program more valuable.

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According to the nomination, Vowles “personally helped accelerate accomplishment of our strategic initiatives by doing something novel here — she facilitated an initiative to make sure every single employee knows what the plan is, understands how they can help, and has three personal goals tied to their performance review that supports the strategy.” As part of that initiative, Amanda included a video on the Akron General strategy that is part of every employee’s mandatory annual training. Additionally, she manages the online Learning Management System, where Akron General’s 7,000 employees have access to some 100 on-demand webinars for professional development. “Amanda has shown resiliency during one of the toughest seasons for health care — when the importance of talent decisions have never been greater,” the nomination said. Throughout her duties, Corpora described Vowles as someone who is just overall “collaborative.” “She’s someone who finds a way to get to ‘yes,’” Corpora said. “She’s just generally a nice, honest person who has a lot of integrity, who just lets her work speak for itself.” — Amy Ann Stoessel

Jennifer Compton understands the need for a balance between profitability and people, said Randy Bennett, vice president of Automation Tool & Die in Brunswick. “Her focus is on the greater good,” Bennett said. Bennett said Compton is skilled at looking to the future and planning for where the company is headed. He noted that she’s helped change the perception of estate and succession planning at the company. Before, the company had some plans, but there were fears and misperceptions about the process. Bennett said Compton has a “light and breezy” style that lightens even the tensest of situations. The nomination highlights a troubled customer relationship that Compton worked on shortly after joining the company in 2011. It said she “bridged gaps in communication” and helped the parties discuss the issues and countermeasures. The relationship is still difficult, the nomination said, but progress is being made to improve it. “Those efforts have helped our

team become more united facing difficulty and working through it together,” the nomination said. Since Compton joined the metal stamping and tool and die company in 2011, it has grown from 32 employees to 78. Work force development to address the skills gap is part of the company’s regular activities, the nomination said. The company has also gotten more involved in Lean processes in recent years, Bennett said. One of those approaches is a value stream map, which the nomination said Compton has used in situations like fighting fraudulent Ohio Bureau of

Workers’ Compensation claims. The map allowed Compton to “provide a visual timeline of the claim, the process and costly gaps within it.” The nomination said it looked like those may be cleared, though it’s all still in process. The nomination said Compton has helped the company in a number of ways, including moving toward more effective, objective staff and ownership meetings and hosting events aimed at engaging young people with manufacturing. Those efforts include open houses for parents and students, showings of “The American Made Movie” and working with local high schools and continuing education facilities. Compton also is involved in activities for the organizations Women in Manufacturing and the Society for Human Resource Management. “She helped each of us discover more about ourselves, who we really are and what we really wanted,” the nomination said. “We outlined individual, departmental and company objectives. We recognized strengths and weaknesses without ever feeling observed or judged, identified interactions and actions essential to accountability and desired results, developed simple and effective tools that are nothing short of an innovative adaptation to the specific situation.” — Rachel Abbey McCafferty

Congratulations Judi McMullen Vice President, Chief Human Resources Officer, Cuyahoga Community College

LEADERSHIP IN DIVERSITY Vanessa Sowell Human resources lead UH Ahuja Medical Center Several years ago, Vanessa Sowell had the overwhelming task of making sure the UH Ahuja Medical Center had the work force it needed. Since then, Sowell not only has continued that activity, but she’s focused on other efforts as well, including an emphasis on diversity. “Vanessa is a very discerning individual,” said Susan V. Juris, president of UH Ahuja Medical Center. “She’s been an incredible advocate in involving employees.” For one, she is the HR lead and adviser for the diversity committee, which is a group of employees who come up with ideas and policy suggestions that educate and promote diversity within the hospital and the health system. She’s worked with the Warrensville and Beachwood school districts to allow students to see different functions and professionals within the hospital and to witness the diverse work force employed at UH Ahuja, and she attends multiple community-run diversity events representing the hospital. Juris said Sowell has worked within the community in an effort to break down barriers to employment, working to spread information on positions available and the ways to go about applying. Sowell also serves as a coach and mentor, advising all employees ranging from entry level to senior leadership.

Tri-C® applauds Judi for being named a finalist for Crain’s Cleveland Business 2014 Archer Awards program, HR Executive of the Year. According to the nomination, she has partnered with the UH organizational development and learning team to bring in programs that support employees: Bridge To Your Future, a program that helps those interested in college who only have a high school diploma or GED gain the skills to go to school; programs on how to fill out the FAFSA (Free Application for Federal Student Aid); getting student loan forgiveness; and Pathways to PCA, a program to help employees who want to work in patient care gain the skills to do so. “Vanessa has a gift to look at a situation and advise managers and employees to the right and fair conclusion,” the nomination said. “Her no-nonsense, down to earth approach to any situation has helped to create an environment of equity and inclusion at Ahuja Medical Center.” When asked to describe Sowell in a few words, Juris referred to her as both fair and reliable, and then added, “actually, she has great sense of humor.” “She has great integrity,” Juris said. “Her heart, her actions and her thoughts are all in alignment. She walks the talk.” — Amy Ann Stoessel

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Where futures beginSM

Tri-C celebrates all the honorees of the Crain’s Archer Awards program. At Tri-C, our students and employees represent the community in which we live, work and educate. We are devoted to having a culture of well represented lifestyles, backgrounds and beliefs, as well as developing the expansion of appreciation due to diversity of thought. We have an inclusive environment by which everyone is a valued representative of a vibrant atmosphere that allows us to stay in the forefront of higher education and support those who meet and serve the needs of current and future students.

www.tri-c.edu 14-4254

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HR EXECUTIVE OF THE YEAR

CRAIN’S BLOGS GET THE LATEST FROM OUR EDITORS AND REPORTERS, INCLUDING: EDITOR’S CHOICE: Managing editor Scott Suttell rounds up news and views about business, and stories of interest in Northeast Ohio. Weekdays SPORTS BIZ: Assistant editor Kevin Kleps writes about the Browns, Cavaliers, Indians and much more. Weekdays HEALTH CARE: Reporter Timothy Magaw breaks down the latest news about the region’s hospitals. Tuesdays WHAT’S COOKING: Twice per month, freelance reporter Kathy Ames Carr has morsels on the local restaurant scene. CRAINSCLEVELAND.COM/ SECTION/BLOGS

Elizabeth Ahmed Vice president, human resources Equity Trust Co. Elizabeth Ahmed joined Equity Trust Co. two years ago, a time when the financial services company offered just about every challenge a human resources professional could face. “Our company at the time of her hiring was going through a ‘low point’ in terms of employee engagement, high employee turnover and overall unacceptable employee culture,” said John Cameron, chief operating officer of Westlakebased Equity Trust, in Ahmed’s nomination. “At the time of her hiring, I made it very clear to her that in order to take the next steps required to be viewed as ‘world class’ by our customers, it was essential we go to work on the overall morale and culture of our company,” Cameron said. Two years later, thanks in part to the work of Ahmed, “I am proud to say that we have made tremendous gains in our employee culture,” he said. Turnover at Equity Trust, a provider of self-directed IRAs and 401(k) plans, has been reduced by 80% during Ahmed’s tenure as a result of “effective sourcing and selection and a committed, genuine effort of active engagement,” as well as the implementation of a new human resource information system, according to the nomination. One of the major benefits of that HRIS system,

according to the nomination, “has been the reduction of time spent on transactional work, which allows for the HR team to spend more time with clients.” Ahmed also led a thorough compensation review, evaluated company benefit programs (ultimately providing more options to employees), rebuilt training programs and improved “career-pathing and leadership programs for front-line supervisors,” the nomination stated. In 2013, Equity Trust decided to close a location in Waco, Texas, and replicate that business in Ohio. Ahmed was “instrumental in building a strategy for bringing resources from Texas to Ohio,” ac-

cording to the nomination. She “established a very specific timeline for when the 100 people working out of Texas would be able to leave their positions without jeopardizing the business.” The transition was completed successfully within three months. Equity Trust occupies a striking office building in Westlake for which Ahmed conducted employee focus groups and surveys to “comprehensively understand what they would like to have in their new workplace,” according to the nomination. Among the suggestions that became reality: “an abundance of natural light, an open space conducive to movement and connecting with people, new chairs, a cafeteria and exercise equipment on site.” Ahmed “has a hand in all elements of the project, from determining the capacity and layout of the space to picking paint colors and artwork.” Under Ahmed’s leadership, Equity Trust has partnered with a local catering company to provide farm-to-table organic meals through its own branded cafeteria, Sprout, the nomination stated. An on-site wellness center, Thrive, enables employees to practice yoga, Zumba and strength training. Employees also receive 12 free treatments per year at Thrive for services including massage, reflexology and paraffin wax treatments. Janet Rohlik, director of sales and marketing at PRADCO, a Chagrin Falls firm that advises companies — including Equity Trust — on the evaluation, selection and development of employees, said Ahmed is a “direct, no-nonsense leader. You don’t have to guess what she’s thinking. She’s clear about strategic direction.” — Scott Suttell

INNOVATION Marty Guastella Vice president, human resources; Oswald Cos.

Our people make the difference. Congratulations Carl Scruggs on your Archer Awards nomination

Ask Sherwin-Williams.™ | ©2014 The Sherwin-Williams Company

When vice president of human resources Marty Guastella in 2012 joined the Oswald Cos., a Clevelandbased insurance brokerage with almost 300 employees, his work was cut out for him. The position he took had been vacant for four years, so he was tasked with updating multiple areas within the department. The tasks he faced required him to innovate to provide sustainable improvements in the company’s employee policies and also drew on his deep experience in the field. Prior to joining Oswald, he had 30 years of experience in human resources, including serving as a vice president of human resources for a manufacturer and as managing partner of a human resource consulting practice, and working in executive recruitment. Joe DuBois, Oswald’s chief financial officer, said in the nomination that the modernization tasks were challenging because they required Guastella to engage in activities he had not been directly involved in for years, and at the same time undertake new initiatives with strong technological components. “Our HR function under (Guastella’s) leadership has an eye on efficiency and in providing innovative solutions in supporting our business units in the effective execution of their strategic objectives,” DuBois wrote in the nomination. “And they find new and better ways of doing things, focused on delivering solutions to all four generations of associates encompassing our work force.” At the most basic level, Guastella’s team clarified various positions and the hierarchy for them at Oswald. The result was a standardized online template for documenting job descriptions so Oswald’s employee-owners now know the career paths ahead of them. The company also took its payroll processing in-house. A practice of having employees pursue continuing education required for

professional certifications also went from a helter-skelter pursuit of training led by employees and was replaced by a system that provides easy access to maintain licensing requirements in an efficient and cost-effective manner. Oswald’s HR department also implemented an online training solution that allows associates to pursue training classes in areas ranging from Word and Excel to leadership training for first-time supervisors. Guastella’s own education includes a bachelor of business administration degree in finance and an MBA in human resource management and labor relations, both from Cleveland State University. He also holds the professional designation of senior professional in human resources. Guastella also has led an initiative to be more inclusive at Oswald. The program includes advanced diversity training for all first-line supervisors and managers and promoting programs to encourage more women to pursue leadership positions. The effort also includes increasing the firm’s efforts to diversify its recruiting program for college graduates. Although many of the initiatives at Oswald of late have had a technological component, according to the nomination, Guastella’s success comes from a philosophy of putting the individual first and aligning his or her goals with those of the company. Oswald employees are required to identify one educational goal yearly to facilitate a culture of continuous learning. The company has found the strategy is not only popular with employees but has helped increase productivity. — Stan Bullard

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RISING STAR Bob Patyk Director of human resources Bearing Distributors Inc.

LEADERSHIP IN DIVERSITY Carl Scruggs Senior director, diversity and inclusion; Sherwin-Williams Co. When Sherwin-Williams started an inclusion and diversity initiative in its Paint Stores Group eight years ago, Carl Scruggs was a logical choice to lead the effort. Scruggs, according to the nomination, has worked “with nearly all of the senior management team” during his 40-year career with the Cleveland-based business giant, and he has “enormous personal and professional credibility with those leaders.” The initiative was “key to building talent attraction, retention and development” within the company’s largest business unit, and it reflected the “changing demographics of the customer base,” the nomination said. The plan has generated “outstanding results and support,” the nomination said. According to the nomination, the number of women in store management roles increased 267% from 2005 to 2013, jumping from 575 in 2005 to 1,534 in ’13. The number of “multiethnic” men and women, which Sherwin-Williams defines as “non-Caucasian,” in store management roles increased 246% — from 636 in 2005 to 1,566 in ’13. In addition, the number of women and minorities in Sherwin-Williams’ management trainee program increased significantly in that span. In 2013, 41.3% of those in the management trainee program were women, and 33.7% were minorities — up from 2005 levels of 13.3% and 12.5%, respectively. Another impressive statistic cited in the nomination: The percentage of women and minority employees in “middle management” roles has increased 289% since Scruggs began leading the diversity initiative. “Sherwin-Williams company is delighted but not surprised that Carl has been selected as a diversity leader of the year,” CEO Christopher Connor said. “Frankly, Carl could have been selected as diversity leader of the decade. Throughout his career, Carl has demonstrated outstanding leadership in developing and leading human capital across a broad spectrum.” Scruggs’ inclusion and development concepts have been used “across the entire Paint Stores Group organization, resulting in much improved employee engagement across all employee groups,” the nomination said. Scruggs and his wife, Elaine, have two adult daughters. He is very active in the Northeast Ohio African-American community, as well as with his church, Mount Hermon Baptist in Cleveland. Scruggs also is a well-known speaker in local circles on such subjects as diversity, training and development. “Far beyond increasing SherwinWilliams’ diversity numbers, Carl has masterfully taught the organization what it means to create a culture of inclusion where all types of people can thrive and flourish,” the nomination — Kevin Kleps said.

When Bob Patyk took over human resources at Bearing Distributors Inc., he centralized the recruiting process and almost immediately restructured the new employee orientation process. At the same time he created something called the “stay” interview, to understand what employees needed to remain motivated and engaged in their jobs so that he could avoid having to do too many exit interviews. Patyk knows the value of staying. He started at Cleveland-based Bearing Distributors in the warehouse in 1996. After he graduated from John Carroll University five years later he

became a human resource specialist. Then, in January of this year, he became director of human resources at the worldwide distributor of bearings, power transmission and other industrial products. The company has 1,344 employees at 192 global branch operations in the United States, Canada, Mexico, Europe and Asia, including 150 in North-

CRAIN’S CLEVELAND BUSINESS east Ohio. According to Lawrence Borodkin, vice president of PRADCO, a Chagrin Falls firm that advises companies on the evaluation, selection and development of employees, Patyk’s biggest leadership challenge is understanding the key motivators for BDI’s personnel. With the baby boomer generation retiring, Patyk has been working to make the company more attractive to millenials, including by making it possible for them to become more independent in their responsibilities sooner than typical in the industry, the nomination said. Patyk also has created a mentoring program for millenials and others with potential to rise in the company, and has created a coaching program for top-level employees. He is upgrading the company’s HR technology, perfecting cloud-based

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payroll services and allowing employees easier access to many HR functions — employees can even, from their cell phones, request time off. Patyk also has championed changes in BDI’s retirement plan, with the goal of helping employees save more for retirement, with more options. He’s made financial advisers available at all U.S. locations to help educate employees on retirement investing. That’s led to greater participation and increasing retirement savings. Outside the office, Patyk serves on the advisory board of the Center for Corporate and Professional Development at Kent State University and is active in the Power Transmission Distributors Association. He has raised money for the Susan G. Komen Foundation and for multiple sclerosis and Slovenian charities. — Jay Miller

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HR EXECUTIVE OF THE YEAR Don Corpora Executive vice president and chief human resources officer Akron General Health System

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“Don walks the talk of true servant leadership with a caring and humility that is rare in administrative corridors today,” the nomination said. In collaboration with Leadership Akron, Corpora also established the Tony Gorant Community Leadership Institute — a formal community leadership program named after a late former Akron General executive. More than 80 Akron General leaders graduated from the program. Corpora also volunteers his time with organizations such as United Way of Summit County and Access Inc., which provides emergency shelter and transitional housing for homeless women and their children. He also serves on the board of Community Health Ventures, the parent organization for Akron General Visiting Nurse Service and Affiliates. “When you look at leaders we have here, he stands out as far what he does in the community,” Stover said. It’s often assumed that human resources professionals are the ones who work quietly behind the scenes, only emerging from the darkness when something bad happens. That’s not the case with Corpora, Stover added. “If you met him and didn’t know what he did, HR is the last thing you’d guess,” he said. — Timothy Magaw

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Don Corpora is dead honest. He doesn’t sugarcoat things, and that’s just the way Akron General president and CEO Dr. Thomas “Tim” Stover likes it. That’s why he named Corpora one of his executive vice presidents upon taking on the chief executive post in 2012. “There’s no gray area with him,” Stover said. “What he really is best at is being honest and direct.” That attribute in Corpora paid off during Akron General’s negotiations with its two unions. It’s one thing to reach a contract, Stover said, but it’s another to do it early, as Corpora did. The nomination described Corpora as an “executive who embodies the Akron General corporate philosophy of hard work, meeting the needs of all and treating everyone with kindness and compassion.” He’s been a champion for the health system’s wellness initiatives. In 2013, he also designed and implemented benefits plan changes that reduced employee medical claims by almost 20% — an effort that saved almost $3.2 million. He also established a metrics-driven staffing plan that aligns the health system’s work force to current patient volumes, which the nomination said has boosted efficiency and patient satisfaction. Also, despite the economic challenges facing the health care industry, employee satisfaction rates at Akron General have improved markedly over the last five years under Corpora’s watch.

HR EXECUTIVE OF THE YEAR Heather Milicevic Vice president, chief human resources officer; Western Reserve Health System Western Reserve Health System takes care of a lot of people — and Heather Milicevic takes care of the caretakers. As vice president and chief human resources officer for the Cuyahoga Falls-based company and its hospital, Milicevic has to ensure that more than 850 doctors and other employees, along with more than 100 volunteers, are not only kept informed, but recognized, organized and working together toward common goals of patient service and organizational success. As Milicevic herself has been known to say at work: “It is important to give a voice to silent workers who otherwise may have been somewhat neglected, even though they show great dedication to the organization.” Toward that end, she has emphasized not only a focus on customer service, but also on serving her fellow employees. Two of her significant initiatives at the organization have been the formation of a “commitment to service excellence” as well as a “commitment to co-workers” program. Like any executive, she also has a commitment to her CEO, of course. In Milicevic’s case, however, it’s an especially strong commitment, and she and WRHS CEO Dr. Robert Kent work closely on a wide range of issues. She often is a sounding board for new ideas and even works with Kent on succession planning. “Heather plays a critical role in Western Reserve Health System’s employee

management process, as she and her team are more often than not the first encounter potential new staff has with our organization,” Kent said. “Additionally, Heather’s work with our existing staff is just as vital; as she understands the importance of developing and executing innovative programs that continue to keep our employees engaged. On top of this, add her team’s focused work toward departmental reorganizations, employee recognition, utilization and implementation of new technologies and paperless processes and managing our 100-plus member volunteer department.” At a health care organization, the chief assets and drivers of success are the people who touch patients’ lives. That means the role of human resources officer is particularly important, and valued by CEOs like Kent. “She manages these varied tasks with professionalism and compassion, understanding the impact our employees’ overall satisfaction has on the entire organization,” Kent said. “Heather has repeatedly been able to not only find, but place and keep the right person in the right job, and the hundreds of staff whose careers have flourished throughout all levels of our organization are a testament to her success.” — Dan Shingler

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RISING STAR

INNOVATION

Andrew Crawford Associate director, human resources; Ben Venue Laboratories

Christine Higham Deputy director, human resources Summit County

When Ben Venue Laboratories cut back on production at its Bedford pharmaceutical center last fall, Andrew Crawford captained its plan to assist the 1,200 employees the move left jobless. Crawford crafted and launched its “Employee Transitional Care Program.” The program consisted of planning and coordinating two career fairs with more than 40 Northeast Ohio employers, including several from the pharmaceutical industry. More than 700 employees attended and several even landed new jobs. The transition program also provides current and former employees with ongoing postings from other companies and services for outplacement, resume writing, counseling and other services. Ben Venue’s parent, Germany-based Boehringer Ingelheim Group, has recognized the effort as a best practice for the global concern. Crawford remains at work at Ben Venue as Boehringer works through a recently announced plan to sell the Bedford facilities to Londonbased Hikma Pharmaceuticals PLC. Although the employee transition plan may be a crowning achievement, it is not the only one Crawford produced in five years at Ben Venue. He also led a plan to work with other personnel to redesign the site to improve efficiency and trim its footprint. He also defined the jobs for two new human resources positions at Ben Venue and selected candidates to fill them; one has since been promoted. Stamy Paul, executive director of Ben Venue human resources, wrote in the nomination that, “What separates (Crawford) from other HR professionals is his relentless focus on learning the business, understanding the core mechanics

Summit County Executive Russell Pry credits Christine Higham with a key role in the county’s ability to reduce county employment without layoffs. “Christine has shown tremendous leadership over the years, especially during the recession which impacted all local governmental entities,” the nomination from Pry said. “Through attrition, an employee voluntary separation program and providing steadfast expertise on staffing levels, Christine helped the county overcome several staffing challenges when money was extremely tight.” In 2007, Summit County budgeted for 3,690 employees; for 2014, that number was down to 2,939. Her cost-cutting know-how is bringing a new human resource information system that is expected to save thousands of taxpayer dollars when fully implemented, by reducing wasted time and redundancies in HR processes. She now is looking for funding to develop a program that will further reduce waste and streamline services to county residents. “Christine is at her best when dealing with processes that will bring about efficiency and improvement,” the nomination said. In addition, the nomination credits Higham with moving the county from a reactive to a proactive approach to technology, collaboration and engagement. In particular, she was able to remove silos from county government, standardizing various office processes. She also has brought her skills to improving the Development Finance Authority of Summit County and the Summit County Veterans Service Commission. Higham joined Summit County government in 2006 as director of administration in the clerk of

and technical know-how that is required of the business in order to be competitive and successful in the marketplace.” Crawford also continues to develop his management skills. He went through a company leadership development program for emerging professionals. He clearly added management coaching tools to his skills and continues to exercise extreme passion for his role as a people manager. He volunteers for tasks, forms alliances to undertake them and takes ownership for helping complete them. Crawford is a member of the Cleveland Society for Human Resource Management and holds certification as a senior professional in human resources. Prior to joining Ben Venue, Crawford worked for five years at Beachwood-based Eaton Corp. Outside the office, Crawford is on the board of directors for Graffiti Heart, a nonprofit that promotes arts education for youth by channeling their creativity into authorized graffiti art. He also serves as head of operations and finance for Comfy Cradle LLC, which produces a pillow to aid nursing mothers that was designed by his wife, Carrie Crawford. — Stan Bullard

courts office. Prior to that, she served for two years as executive director of the Summit County Democratic Party. Before that, she spent nearly 10 years with Oriana House Inc., a chemical dependency treatment agency. There, she rose in a series of jobs from intake receptionist to program administrator. During her time at Oriana House, she earned a bachelor’s degree in criminal justice from Kent State University and an MBA from Tiffin University. Higham is on the board of Project Learn of Summit County, an organization focused on improving adult literacy. She recently joined the Workforce Readiness Committee of the Akron Area Society of Human Resources Management. The committee works to help under-employed or in-transition people advance in the work force. A recent project is to solicit gently used, “professional, interview-appropriate clothing” for job seekers. A native and current resident of Tallmadge, Higham serves on the Tallmadge Civil Service Commission, is president of the Rotary Club of Akron and a supporter of the East Akron Board of Trade Council. She also is a graduate of the Community Leadership Institute of the Leader— Jay Miller ship Akron.

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20140804-NEWS--23-NAT-CCI-CL_--

8/1/2014

12:10 PM

Page 1

AUGUST 4 - 10, 2014

CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS

WWW.CRAINSCLEVELAND.COM

GOING PLACES

WHAT IGNITES YOU?

JOB CHANGES DISTRIBUTION SEA-LAND CHEMICAL CO.: Kirsten Varouh to administrative assistant.

EDUCATION

Kruczek

Herron

Price

Patel

NOTRE DAME COLLEGE: Thomas G. Kruczek to president.

ENGINEERING MANNIK & SMITH GROUP INC.: Kayla Herron to civil engineer.

FINANCE FARMERS NATIONAL BANK: Elizabeth Schneider and Mary Kerzan to mortgage loan consultants.

Fast

Ditz

Witczak

Zweig

FINANCIAL SERVICE CANDLEWOOD PARTNERS: Marissa Price to office/executive assistant. PWC US: Ken Couls to assurance partner, private company services; Verne Klunzinger to assurance partner, risk assurance; Rohan Patel to advisory principal, IT strategy; Matt Wallace to tax partner, international tax. WALTHALL CPAS: Matthew J. Jones and Brittany R. Kinney to senior staff accountants; Brian J. Ditz and Charles S. Fast II to supervisors; Jennifer B. Witczak to manager.

NORTHEAST OHIO MEDICAL UNIVERSITYChanging Lives, Expanding Knowledge For more than 40 years, Northeast Ohio Medical University has been changing the lives of individuals in the region through the innovative teaching of tomorrowâ&#x20AC;&#x2122;s physicians, SKDUPDFLVWV SXEOLF KHDOWK RIÂż FLDOV and health care researchers. Dedicated to its mission of education, research and service, Northeast Ohio Medical University continues to improve the quality of health care and make a strong economic impact in Northeast Ohio and beyond.

n e o m e d . e d u

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Wimms

Brofman

Karlen

Wiesner

Federman

Potter

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Becker

Moore

Achmoody

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WESTERN RESERVE VALUATION SERVICES LLC: Derek L. Zweig to analyst; Stefan J. Schaefer to associate.

HEALTH CARE VISITING NURSE ASSOCIATION OF OHIO: Lisa Kristosik to chief operating officer; Terri Wimms to chief administrative officer; Roberta Brofman to chief strategy officer; Gene Karlen to executive director, human resources; Amber Wiesner to director, Home Assist.

Kevin Potter to business development consultant.

LEGAL

TECHNOLOGY

HAHN LOESER & PARKS LLP: R. Eric Gaum and Arland T. Stein to co-chairs, intellectual property practice.

ASHTON TECHNOLOGY SOLUTIONS: Jim Abbott to sales and marketing manager.

WELTMAN, WEINBERG & REIS CO. LPA: Jennifer Monty Rieker to managing partner, litigation and defense group.

MANUFACTURING EATON: Tobi Gibbons to director, corporate HR.

MARKETING POINT TO POINT: Megan Kacvinsky to executive vice president, account and media services.

NONPROFIT CENTER FOR COMMUNITY SOLUTIONS: Melissa Federman to Treuhaft Chair for Health Planning.

SERVICE LIFE SAFETY ENTERPRISES INC.:

BOARDS CLEVELAND HEARING & SPEECHCENTER: Thomas Weber (Ernst & Young) to president; Iona Dettelbach to vice president; Mark Quarm to treasurer; Jean Sarlson to secretary; David Abood to immediate past president. CLEVELAND SOCIETY FOR HUMAN RESOURCE MANAGEMENT: Lauren Rudman (Erico International Corp.) to president; Steve Ligus to president elect; Robin Doerschuk, Beth Warholy, Paula Calmer, Shirley Hunter, Michael Hoffman, Tamara Hagerty and Todd Costello to vice presidents. NORTHEAST OHIO REGIONAL SEWER DISTRICT: Darnell Brown (City of Cleveland) to president;

Ronald D. Sulik to vice president; Walter Oâ&#x20AC;&#x2122;Malley to secretary. OHIO OSTEOPATHIC ASSOCIATION: Paul T. Scheatzle, D.O., (Akron General Edwin Shaw Rehabilitation Institute) to president.

AWARDS EY: Scott Becker (Chromaflo Technologies Corp.) received the 2014 Entrepreneur of the Year Award, Distribution and Manufacturing category, NE Ohio. FIRE EQUIPMENT MANUFACTURERSâ&#x20AC;&#x2122; ASSOCIATION: Sean DeCrane (Cleveland Fire Training Academy) received the Fire and Life Safety Advocate of the Year Award. LOVE AKRON NETWORK: Judge Carla Moore (Ninth District Court of Appeals) received the Unruh Servant Award; Dottie Achmoody (Open M) and Perry Clark (Truly Reaching You Ministries) received the Fowler-Larson Allies Award. SOCIETY FOR TECHNICAL COMMUNICATION: Tricia Spayer (Pressco Technology Inc.) was named an associate fellow.

Send information for Going Places to dhillyer@crain.com

YOU CAN WATCH US, TOO Look for Crainâ&#x20AC;&#x2122;s new Weekly Report webcast, which will hit your inbox on Sunday. To sign up, go to: crainscleveland.com/register.

We Solve Problems. Effectively. Efficiently. Consistently. 36 South Fr anklin Street Chagrin Falls 440-571-7777 We are a different kind of business law firm. Learn about us at www.gertsburglaw.com, or call us to discuss your legal matter.

23

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CRAIN’S CLEVELAND BUSINESS

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GOLF continued from page 1

first-quarter target for golf sales by $34 million. One day after the Dick’s firings, Golf World, the oldest golf magazine in the United States, announced it no longer would publish a print edition, moving to a digital-only model that is becoming all-too-common in media circles. And don’t get the local golf courses started about the weather, which has been brutal even by Northeast Ohio standards. Ohio’s golf industry followed a first quarter that was the fourth coldest in 120 years of tracking by the National Climate Data Center with a second quarter that was among the 11 wettest on record. Still, Antenucci, the executive director of the Northern Ohio PGA, remains steadfast in his belief that the industry isn’t sinking — it’s just being bombarded by rain and cold. “I’m not saying that they’re not true,” Antenucci said of the PGA statistics, “but I don’t see it. I’m at golf courses every day, and it’s not what I see.” Joe Salemi, who operates one of Northeast Ohio’s best public courses, knows the numbers, and his bigpicture view is even darker than the portrait that is being painted nationally. “It’s been a terrible year,” said Salemi, owner of Boulder Creek Golf Club in Streetsboro. “Every year continues to decline.” The 59-year-old Salemi is a real estate developer by trade; he developed the houses that line his picturesque course. He has heard all the reasons given for the game’s decline — the weather, the economy, the glut of courses, the amount of time it takes to play 18 holes — but he believes it’s as simple as a younger generation that isn’t interested in playing. “I think golf is on the decline for good,” Salemi said. “You can’t ignore facts.” Salemi said baby boomers “grew up playing golf,” but today’s youth “want instant gratification. You aren’t going to master this game. Nobody does. The younger kids don’t want that.”

Can courses ‘crack the code’? Paul Metzler Sr., director of marketing and industry relations for The PGA of America, said golf courses “need more aggressive programs to reach the kids.” One his organization has developed is PGA Junior League Golf — “it’s like Little League Baseball for golf,” Metzler said — which targets the 11- to 16-year-old demographic. With parents “spread thin” by work and home demands, Metzler believes “somebody has to crack the code” on programs geared toward youth — whether it’s three holes, followed by a meal, or a greater emphasis on such outside-the-box ideas as increasing the size of the holes and foot golf (basically, kicking a soccer ball into a cup). “Get them in and out in 90 minutes,” Metzler said. Chase Pinchot, general manager at Bunker Hill Golf Course, said the Medina facility has a junior league that drew more than 100 kids every week “for more than 30 years.” Since the recession, that figure has dwindled to 35 to 40 per week. “Both parents are working now,”

Pinchot said. “It is taking away from juniors’ ability to play. But the game is growing in some other areas, which is good. I think the future of golf is undecided now because of the amount of juniors playing the game.” The National Golf Foundation’s annual surveys coincide with Pinchot’s experience. The number of golfers age 6 and up dropped 400,000 to 25.3 million in 2012 — down 4.7 million from its peak in 2005, according to the foundation. The report said 200,000 players under age 35 gave up the game in one year. Antenucci, the Northern Ohio PGA executive director, runs five junior tournaments per year. He said his group has 460 junior members who have played about 2,200 rounds of golf this year, and the numbers continue to rise. “The kids are playing golf,” Antenucci said. “That’s what baffles me when I see the numbers.”

Time crunch In Antenucci’s mind, the reported decline is as simple as weather and a society that is constantly on the move. “Families have so much to do,” he said. “They’re pressed for time.” Tom Scheetz, general manager of The Tanglewood Club in Chagrin Falls, which recently completed $1 million in renovations, said dedicating the time to play 18 holes is increasingly more difficult. “This is sad to say because I work at a golf course, but I never play golf,” Scheetz said. “I have 10- and 13-year-old boys. Between work, their activities, home life — where is the time for golf?” The PGA’s Metzler — a Florida resident who told a story about recently taking his young son to his first Miami Marlins game, then watching him “check out” after three innings — agrees that Mother Nature and hectic lifestyles are formidable foes for the sport. But he isn’t buying all the doomand-gloom scenarios. “There is this, for lack of a better word, spin about the golf industry being down,” he said. “Nationally, people aren’t so much giving up on the game. What it really boils down to is the weather. We had extremely poor weather in 2013 that cut down on the number of days facilities were open for play.” PGA PerformanceTrak’s most recent report showed that the coldthen-rainy first half of 2014 resulted in a 4.3% drop in days Northeast Ohio golf courses were open for play. And those numbers are in comparison to a first half of 2013 that wasn’t exactly picturesque. Pinchot, Bunker Hill’s GM, said when the temperature has been in the “70s and sunny, business has been extremely good. Anything worse than that, we can’t get people in the door.” Tanglewood, according to Scheetz, has been busy on playable days. But “when it rains, people don’t come to play golf,” he said.

Investing in ‘scary’ times The particularly bitter Northeast Ohio winter wreaked havoc on Jimmy Hanlin’s Little Mountain Country Club. The Concord course lost eight greens, closed four and has

used temporary greens for two months, resulting in the facility that annually is recognized as one of the best courses in the area experiencing the biggest drop in rounds played in its 14-year history. The troubles made Hanlin “see the light,” and by mid-August, an extensive renovation will begin. The course will remain open during the redesign, and when the work is finished by the end of the year, the course (with a 50% reduction in bunker space) will play faster and meet its owner’s high standards. “There was a lot of hesitation, a lot of talk — absolutely,” Hanlin

said about making a large investment during uncertain times. “But on the other side of that, if we wanted to be there another 15 years, 20 years, it was the only option.” As the operator of three courses — Little Mountain, StoneWater Golf Club in Highland Heights and Cumberland Trail Golf Club in Pataskala, 20 miles east of Columbus — and an ubiquitous television and radio personality, Hanlin knows all about the “scary” statistics. But he says he sees more juniors and women playing the game now than in prior years.

“It’s a hard thing to wrap your hands around when what you see isn’t matching (the numbers that are reported),” Hanlin said. Salemi, who debuted Boulder Creek in 1998 and opened it to the public in 2002, said his course “is beautiful” and meticulously maintained. But he says what he sees does mirror the national numbers, and he’s not nearly as optimistic as some of his peers. “There’s no light at the end of the tunnel,” Salemi said. “You just have to look at the stats. They are telling you the business is going to decline.”

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FARM continued from page 5

decisions will they make about the food they eat based on their experience.” Bebenroth last fall had been scouting a renovated industrial building in Tremont as a potential expansion site. While wrapping up his Goldman Sachs 10,000 Small Businesses program through Cuyahoga Community College, the capstone of which was his business expansion blueprint, his plans made an about-face. A lease on the former Spring Hill Farm, one of 11 farms within the Countryside Conservancy Initiative, opened up. “It’s the first time a lease was forfeited,” Bebenroth says. Spice Acres’ business proposal aligned with the park’s land management goal. “We believe in Ben’s passion for sustainable farming and protecting the nature of the valley,” said Tracy Emrick, core partnership manager for the Countryside Conservancy. As part of the lease conditions, Bebenroth and his wife, Jackie, will rent the property’s historic home, where they’ll live with their two children, for its fair-market value of $785 a month. The Cuyahoga Valley Na-

Contact: Phone: Fax: E-mail:

tional Park collects the rent and 10% of the farm’s annual revenue after production costs. It could be years before the farm is fully producing. “My vision in the beginning was pretty grandiose, but we’ve lengthened the timeline and narrowed the focus to make the strategy more realistic,” Bebenroth admitted. “There’s going to be a lot of perennial investment in the first two years.” He plans to tackle the nine acres of agricultural production in quadrants. He’ll recruit cows, pigs and chickens to feed off of and enrich the soil in preparation for crops and hops. “The first two years are going to be about munching and crapping,” he said. Four acres of vegetables should exponentially grow Spice’s homegrown bounty. Bebenroth’s former suburban home garden and the restaurant’s hoop house supply about 5% of their operation’s food, with small family farms providing the rest. “We want to blow that out of the water. I’m hoping the farm’s protein and produce account for half of our purchasing,” said Bebenroth, noting his restaurant will buy the farm’s harvest at wholesale price, while its

Denise Donaldson (216) 522-1383 (216) 694-4264 DDonaldson@crain.com

JANET CENTURY

Chef Ben Bebenroth will tackle the former Spring Hill Farm’s nine acres of argricultural production in quadrants. Countryside Farmers Market stand will sell overflow. A signature Spice beer is in the works, once the farm’s two acres of hops mature. Bebenroth foresees an annual fall harvest, with pick-your-own hops, craft beer and a hog roast, to publicly commemorate the hops’ yield. “I’m also talking to some area brewers right now about growing specialty hops,” he said. “The harvest would be an awesome way to raise awareness for what we’re all doing.”

On the opposite side of hops acreage, a street-facing field of wildflowers will augment the revenue-generating portion of the farm. “A family could come here during Easter and buy their flowers and ham instead of going to some generic grocery store,” Bebenroth said. “It’s not about making a couple grand on some hams and lilies. It’s about families building this experience into an annual tradition.” Those customs are at the core of Spice Acres’ purpose. Onsite educa-

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tional programming, particularly geared toward children, is a key focus that underlines the farm’s mission. “Children’s behavior is more easily modified than adults,” Bebenroth said. “As adults, we prescribe to local foods after watching a motivating movie or getting sick. But we want to make lasting impression in kids through environmental stewardship, health and wellness. “Plus, I’d love to see this as a catalyst to put the fast-food companies out of business,” Bebenroth added.

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THE WEEK JULY 28 - AUGUST 3 The big story: TOA Technologies, a Beachwood-based provider of software for managing mobile work forces, agreed to be acquired by computer technology giant Oracle Corp. Redwood Shores, Calif.-based Oracle didn’t disclose terms. Oracle described TOA as “the leading provider of cloud-based field service solutions that optimize the last mile of customer service for enterprises by coordinating and managing activities between dispatchers, mobile employees and their customers.” In July 2013, TOA raised $66 million from Technology Crossover Ventures of Palo Alto, Calif. It has about 500 employees worldwide.

Deal’s a reality: Simbionix, a Cleveland company that makes virtual reality-style equipment used to train surgeons and medical students, entered into an agreement with a publicly traded 3D printing company from South Carolina to be acquired for $120 million in cash. Rock Hill, S.C.-based 3D Systems said the transaction is expected to be completed within 30 days, subject to customary closing conditions. 3D Systems said it plans to operate Simbionix under the continued leadership of CEO Gary Zamler, who will become vice president and general manager, Simbionix Products, for 3D Systems. Maybe not: Summit County officials scrapped a plan that would have steered funds from a proposed sales tax increase toward building an $80 million arena in downtown Akron. The arena would have served as the home court for University of Akron basketball teams and a venue for other sporting and entertainment events. The Summit County Council adopted resolutions in June that would have placed on the November ballot a measure boosting the sales tax to 7% from 6.75% to fund public safety and capital needs as well as the new arena. Instead, officials now will seek resolutions that strip the arena project from the ballot initiative and limit the length of the tax to 10 years. The winner is …: While the management at Cliffs Natural Resources Inc. opted not to announce the preliminary results of the proxy contest for its board of directors at the July 29 annual meeting, activist shareholder Casablanca Capital LP declared victory shortly after the meeting’s conclusion. Casablanca, which owns about 5.2% of Cliffs’ shares, said all six of its candidates had been elected to the 11-member board, according to “preliminary estimates by its proxy solicitor.”

Nice look:

The Cleveland Museum of Art reported that total attendance for the fiscal year ending June 30, 2014, was 597,715, the “highest in over a decade” and a 19% increase from 501,314 visitors the previous fiscal year. Museum membership increased 18% to 23,094, including more than 3,300 new introductory-level members. The 2013-14 fiscal year was a milestone for the museum, which completed its $320 million renovation and expansion project that included the 39,000square-foot Ames Family Atrium and the interactive Gallery One.

Ringing their bell: Bellwether Enterprise Real Estate Capital LLC, a Cleveland-based commercial and multifamily mortgage banking company, will add offices in Minneapolis and Detroit through a merger agreement with the Towle Financial Services mortgage banking firm. Towle, founded in 1909 in Minneapolis, brings about $400 million in annual loan volume and $1.4 billion in servicing, which Bellwether Enterprise said will take its total annual loan volume to about $2.5 billion and $8 billion in servicing.

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REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS

Think hard about hardware, LaunchHouse says The LaunchHouse in Shaker Heights always has focused on the most cutting-edge technologies. Now, it’s looking to get in touch with the region’s manufacturing roots. “Our focus is changing,” said CEO Todd Goldstein. Earlier this summer, LaunchHouse announced that it had broadened its accelerator program to concentrate on hardware products, rather than software. Ten companies will be chosen for the 16-week program and will receive $20,000. Goldstein said that while there are more than 300 software accelerators in the country, there are fewer than 10 for hardware. And the manufacturing focus fits well with the skill set in the region. Goldstein said that while the application process is open to anyone with an idea, LaunchHouse is hoping the process attracts people with industry experience. Rather than appealing to an 18-year-old in a dorm room, like software accelerators, the LaunchHouse is hoping the hardware accelerator will attract some members of the 50-plus crowd looking to reinvent them-

The LaunchHouse co-founders Todd Goldstein, left, and Dar Caldwell

selves after a career at a company like Eaton or Parker Hannifin Corp., Goldstein said. If this applies to you, move quickly. The application deadline for the program listed online is Monday, Aug. 4. — Rachel Abbey McCafferty

For CSU students, a little incentive goes a long way Cleveland State University expects it will spend roughly $1.5 million on an initiative it launched last year that promised tuition rebates and bookstore credits to students who maintained at least a 2.0 grade point average and completed 30 credit hours of coursework. The university expects between 3,500 and 4,000 students will earn the rebates. This fall, qualifying students will receive 2% off their tuition bills, totaling about $200 for the 2014-2015 academic year, and up to $100 per semester in bookstore credits. Qualifying graduating seniors will be allowed to apply those credits toward graduate school tuition. Cleveland State spokesman Kevin Ziegler said in an email that the program appears to be influencing class registration. Last year, the university saw a 14% increase in the number of students who attempted 30 or more credit hours. “This is helpful in supporting students stay on pace to graduate within four years,” he said. This is just one of several initiatives Cleveland State launched over the last few years to boost retention and encourage students to finish their degrees in a timely manner. The state recently moved to a funding formula that pays colleges based on how many

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

Imagine that An increasing number of the nation’s biggest lenders, including Cleveland-based KeyCorp, are devising low-fee banking products for customers with troubled finances. The New York Times said the products, including bare-bones bank accounts and prepaid debit cards, “are hardly big money makers — in some cases, the banks barely break even.” But for the banks working to overhaul their public images in the aftermath of the financial crisis, “the products offer a different and potentially far bigger payout: good will from regulators and a chance to woo more customers who might just become profitable in the long run.” Mike Mayo, a banking analyst at the brokerage firm CLSA, told the paper, “Banking still ranks among the worst industries in the public’s opinion. This is good for the customers and good for the banks’ images.” The Times said KeyBank “hopes to sell products like a line of credit and auto loans to customers who use its basic low-fee bank account.” The products will have to succeed on their own merits, though. Bruce Murphy, the bank’s head of corporate responsibility, told the paper, “Being the right thing to do has a short shelf life. Unless you really have an underpinning of the economics, it will not survive.”

Hedging their bets Public pensions from California to Ohio “are backing away from hedge funds because of concerns about high fees and lackluster returns,” The Wall Street Journal reported. “Those having second thoughts include officials at the largest public pension fund in the U.S., the California Public Employees’

students they graduate rather than how many students enroll. — Timothy Magaw

Diebold wants to be on ActivEdge of ATM security Diebold Inc. has been working hard to improve security at ATMs. The company announced plans to form an industry association to improve ATM security with another company at the start of July, and in June it agreed to acquire a company with expertise in PIN pad-related security called Cryptera A/S. Last week, Diebold revealed a new product for automated teller machines called an ActivEdge card reader. The product, which asks customers to turn their bank cards 90 degrees to insert it in the machine, supposedly stops all currently known forms of ATM “skimming.” Diebold called skimming the most prevalent form of ATM-related crime and said that by scanning the cards lengthwise, skimmers can’t read the full magnetic strip. Spokeswoman Kelly Piero said increased security measures are always an ongoing effort at Diebold and called the most recent product announced a “step forward” for the company. That’s no surprise to those who have been watching Diebold’s transformation in the past year. When Diebold’s president and CEO Andy Mattes came on board last June, he expressed an interest in moving the company away from straightforward hardware and putting more of a focus on software. And board member Rick Crandall told Crain’s at that time that software and security services would be “front and center” of the company’s future. — Rachel Abbey McCafferty

WHAT’S NEW Retirement System, or Calpers,” the newspaper said. “Its hedge-fund investment is expected to drop this year by 40%, to $3 billion, amid a review of that part of the portfolio, said a person familiar with the changes. A spokesman declined to comment on the size of the reduction but said the fund is taking more of a ‘back-to-basics approach’ with its holdings.” The retreat “comes after many pension funds poured money into hedge funds in recent years in hopes of making up huge shortfalls,” according to the story. Other states have made reductions as well. For instance, The Journal said the School Employees Retirement System of Ohio “decided to lower its hedge-fund allocation to 10% by fiscal 2015 as compared with roughly 15% in fiscal 2013 after investment gains were lower than expected, according to a spokesman.”

Going to the cats If there are two kinds of people in the world — dog people or cat people — Ohio definitely sides with the felines. The Washington Post crunched some numbers and found Ohio is a top-10 state for cat lovers, with a 1.39:1 cat-to-dog ratio. The most cat-loving state is Massachusetts, with a 1.87:1 ratio. Generally, cat-loving states are in the Northeast, upper Midwest or states with large urban populations. Dog lovers, meanwhile, are more likely to be in the South or West. The top dog state is Arkansas, with a 1.35:1 dog-to-cat ratio. In the United States, The Post noted that “slightly more households own dogs than own cats.” Around the world, though, there are far more pronounced dog/cat divides. “In India, for instance, pet dogs outnumber cats 10-to-1,” The Post said. “Dogs enjoy a 2.5-to-1 advantage in China. On the other hand, cats outnumber dogs 3-to-1 in Switzerland, Austria and Turkey.”

COMPANY: Garland Co., Cleveland PRODUCT: Energizer BK Garland, a maker of roofing and building envelope products for the commercial, industrial and institutional markets, says its cold-applied waterproof coating provides “natural resistance to moisture, chemicals, UV and aging” while improving the longterm performance of new and existing coal tar pitch and asphalt roofing systems. Energizer BK is specially formulated with an asphalt coal tar blend to provide “excellent water resistance in addition to superior strength and flexibility,” according to the company. Garland says Energizer BK is designed to be used as a flood coat over “new and existing asphalt and coal tar roof systems or as a premium restoration material.” The coldapplied nature of Energizer BK “eliminates many of the harmful emissions of a conventional hot-applied coal tar system while providing the same performance benefits,” the company says. Energizer BK also is fiber-reinforced to provide sag resistance, increased tensile strength, crack resistance and improved weathering resistance, according to Garland. For information, visit: www.garlandco.com. Send information about new products to managing editor Scott Suttell at ssuttell@crain.com.

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