Crain's Cleveland Business

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VOL. 37, NO. 31

AUGUST 1 - 7, 2016

Source Lunch

Archer Awards

Stephanie York, crisis management expert She dishes on the media, her law background and much more. Page 40

CLEVELAND BUSINESS

The List

Largest public companies Page 43 SPORTS BUSINESS

Sports bids get big boost from RNC

Pages 15-24 HEALTH CARE

TECHNOLOGY

Ratings are ‘confusing’ exercise Startup ANNUAL RAN KS

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By CHUCK SODER

In the next two weeks, the Greater Cleveland Sports Commission will submit bids to host a series of NCAA championship events.

The sports commission and the Cavaliers have repeatedly reminded the NBA of their interest in bringing the All-Star Game to Cleveland for the first time since 1997, and the sports commission has also worked on bids for an upcoming Major League Baseball All-Star Game and the 2018 or 2019 USA Triathlon National Championships.

Coming off a Republican National Convention that has drawn rave reviews for the city and its host committee, Cleveland’s timing — much like it was for LeBron James’ return two summers ago — couldn’t be any better.

The RNC “strengthened every bid we have out there right now, and every bid we put out there,” said Mike Mulhall, the sports commission’s vice president of business development. “It elevated our reputation, which I think was pretty good already.”

On July 22, the day after the RNC concluded, the four Ohio Democrats in the U.S. House of Representatives sent a letter to NBA commissioner Adam Silver that said Cleveland “would be proud” to host the 2017 All-Star Game. Charlotte lost that star-studded event because of North Carolina’s controversial House Bill 2.

Cleveland, however, is not in the running to host the Feb. 19 All-Star Game, sources told Crain’s. New Orleans, according to reports, is the SEE BIDS, PAGE 7

csoder@crain.com @ChuckSoder

meaningful way,” said Lori August, senior director of quality at St. Vincent Charity Medical Center.

Increasingly, consumers look to the internet for information in making decisions: everything from a new car to a restaurant. And yet, in health care, studies show that the vast information available to patients is not where they first look in deciding where to seek care.

They turn to friends and family, draw from past experiences and rely on the direction of their primary care physician.

The amount of capital raised by local startups hit a four-year low in 2015. But Ray Leach isn’t too worried.

Local startups will probably raise more money this year — and for at least a few years to come, according to the people who run JumpStart, VentureOhio and North Coast Angel Fund.

For one, several investment funds here and throughout the state have new cash to invest.

Plus, a few local funds years ago made bets on startups that are now among Ohio’s fastest-growing tech companies, such as OnShift, CoverMyMeds and Assurex. If any of those companies get acquired or go public, which is by no means guaranteed, their investors could get some sizeable checks. And that could help them raise new funds in the future.

Thus, the future for the most part looks bright for Ohio’s relatively small venture capital community — and for local startups that need venture capital, according to Leach, who is CEO of JumpStart, a Cleveland-based nonprofit that provides assistance and funding to startups.

“I do think the VC numbers are going to be solid over the next five years. … I could not have said that a year ago,” he said.

So what are those numbers? Last year, 94 Northeast Ohio startups

SEE RATINGS, PAGE 42

SEE CAPITAL, PAGE 11

David Kordalski

By LYDIA COUTRÉ lcoutre@crain.com @LydiaCoutre

Throughout the year, government agencies, news organizations, quality groups, nonprofits and for-profit companies scrutinize, squeeze and survey hundreds of metrics concerning hospital performance.

The result? A dizzying array of stars, percent scores, grades, rankings and ratings. Just last week, for example, the Centers for Medicare

Entire contents © 2016 by Crain Communications Inc.

and Medicaid Services released its new Overall Hospital Quality Star Ratings. U.S. News & World Report expects to release its hospital ratings on Tuesday, Aug. 2.

So, what can consumers — or hospitals, for that matter — do with these often-conflicting grades and designations? The answer isn’t quite clear. Some officials say the scores confuse patients, while others say they bring much-needed transparency to the health care system.

“It’s hard to imagine how consumers really can utilize that in a

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z AUGUST 1 - 7, 2016 z CRAIN’S CLEVELAND BUSINESS

Breakthrough’s newest spot will get Head Start

By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com @ramccafferty

On Aug. 16, Breakthrough Schools will officially open the doors on its newest educational option, the E Prep & Village Prep Willard Campus.

It’s not the first new school the charter school network has launched, and it’s not likely to be the last, either.

John Zitzner, president of Friends of Breakthrough Schools, said the operator would like to grow the network to 19 or 20 schools by 2020. It will have 12 schools on 10 campuses after E Prep & Village Prep Willard open.

“What Alan and I have said from the beginning is we’re in this to fundamentally change the face of education in Cleveland. And we think you can’t do that with two or three schools,” Zitzner said. “But maybe with 20 schools, we can make an impact.”

Alan Rosskamm, CEO for Breakthrough Schools, said the network wants to be “part of the solution for Cleveland.” Breakthrough gets asked to start schools in other communities, he said, but it wants to work in the city. The driving force behind the network’s planning process is “need,” he said, whether that’s determined by community demand or by the data, like the Willard school.

But that doesn’t mean opening a new school is old hat for Breakthrough. A lot of work goes into this kind of launch, from revamping the building to hiring the teachers to creating the arrival and dismissal plans.

Zitzner said the first year is the toughest in terms of getting families

Mark Lenart, owner’s representative for Breakthrough Charter Schools, shows off the plans for the E Prep & Village Prep Willard campus. aware of the school.

“It’s a big lift to fill the first few classes and the first few years,” he said.

And E Prep & Village Prep Willard is a bit unique for Breakthrough. The school will share a building with a Head Start program, which Rosskamm said he would like to see as a trend going forward. It has previously shared space with a preschool at one of its Intergenerational Schools, and the Centers for Families and Children will open a preschool at one of its Citizens Academies this fall. Breakthrough has a variety of school models in its portfolio.

Zitzner said Breakthrough intentionally made E Prep & Village Prep Willard smaller so Head Start could stay on the Willard campus. It will offer a strong feeder system to the school, he said, and one that Rosskamm said will be made up of kindergarten-ready students.

Jacklyn A. Chisholm, president and CEO of the Council for Economic Opportunities in Greater Cleveland, which runs the Head Start program, said the group thought pairing with Breakthrough would be a “marriage of strength.” She wants the school to be a model for future PreK-8 programs. The school will start with three kindergarten classes and one first grade class in the fall, each with about 30 students and two teachers, according to an email from vice president of communications Lyman Millard. By the 2019-2020 school year, the Willard campus will house preschool through 8th grade.

Anita Brindza, executive director of community development corporation Cudell Improvement Inc., thinks the new school will be a “great opportunity” for the community. A number of lofts and homes have

The cost of buying and rehabbing the old school will be about $7 million. gone into that area in the past 10 to 12 years, she said, but the Willard building has been underused. She hopes that having a public school option that doesn’t require those families to cross a major street will encourage them to stay in the area.

Here’s an overview of the work Breakthrough has put into E Prep &

Village Prep Willard in the past year:

The building Friends of Breakthrough Schools bought the building at 2220 W. 95th St., in the Cudell neighborhood of Cleveland, in March. The network doesn’t have the funding to build new, so it’s always watching for “old

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CRAIN’S CLEVELAND BUSINESS z AUGUST 1 - 7, 2016 z PAGE 3

The old entrance of Willard School will remain once the rehab is completed.

Interested parents such as Tanay Mattis listened to a presentation about the new school in June.

the details from the original architecture, like the molding and trim.

When the building is complete, Kline said there will be 22 classrooms for Breakthrough and seven for Head Start.

The educators

(Ken Blaze for Crain’s) buildings that would normally be closed,� Zitzner said. Rosskamm said the original building was built in the 1890s as an agricultural school. “Opportunity meets need is the ideal,� Zitzner said.

Zitzner said the price tag for the E Prep & Village Prep Willard building was about $7 million. About

$680,000 of that went toward purchasing the building; the rest was for renovating it.

Millard said in his email that the largest funders for this school were Jimmy and Dee Haslam, as part of a $10 million contribution from the Haslam 3 Foundation toward growth.

He said Breakthrough also received a

five-year, $8.6 million Charter Schools Program grant in 2011 to support the work that goes into opening schools.

Rosskamm said there also is some state funding available for charter schools facilities.

Brandon L. Kline, architect at Cleveland-based GLSD Architects LLC, said the focus was first put on the north building, where school will be held this fall. The south building will be renovated over the winter and then turned over to Head Start. Updates include all-new windows, changes to make the building handicap accessible and an office and reception area. In the classrooms, the school is adding white boards and smart boards, but efforts are being made to maintain some of

Rosskamm said the key to a successful replication of their school models is a capable leader.

Cherrelle Turner, the founding principal for the school, has spent the past year with the Breakthrough system as part of its leadership development program, learning about what it takes to open a new school, filling in for a curriculum and instruction director on maternity leave and working on the sponsorship application for the school.

And that’s not all. Turner began hiring staff in February — as of mid-July, 10 of the 11 teachers Willard would need had been hired, according to Millard’s email — and the Cleveland Metropolitan School District approved the school’s sponsorship in March. The district sponsors many of the network’s schools and works closely with the charters through the Cleveland Education Compact.

Getting sponsorship is a rigorous part of the preparation process, said Megan Johnston, director of network

operations. This year’s sponsorship application included everything from curriculum and community engagement plans to past results to financials.

Once that’s all done, the teachers still have to be trained on the curriculum, security plans and arrival and dismissal routes, as those kinds of routines aren’t in place at a brand new school. That training began Monday, July 18, said director of operations Alyssa Rundle.

Education is a passion for Turner, who spent much of her youth in the Cleveland area. She joined Teach for America and taught in D.C. after graduating from Ohio University.

Before coming back to Cleveland, she earned a master’s in education from George Mason University and a master’s in education leadership from Columbia University, Teachers College, as well as taught in schools in Japan and New Orleans.

When the opportunity at Breakthrough came up, she applied. Right now, the city’s school system is great for some but troublesome for others, she said, and she wants to see the city with a system that offers a level playing field for all students. “Our city’s not where it’s supposed to be,� Turner said. “There’s so much potential here.�

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Two of Cleveland’s largest money managers and investment advisers are joining forces in a deal that positions both to grab additional business, particularly in Northeast Ohio.

HPM Partners, a national wealth management and investment advisory firm based in New York and founded in 2009, has announced plans to acquire Cleveland-based Spero-Smith Investment Advisers, Northeast Ohio’s ninth-largest money manager by assets under management, according to Crain’s research.

Financial terms were not disclosed. The deal is expected to close on or before Oct. 1.

Besides its headquarters, HPM, which currently advises on more than $6 billion in total assets, has offices in Michigan, California, Chicago and an operation in Cleveland that advises on more than $1.3 billion in assets, according to Crain’s research. They also placed 26th on Forbes’ most recent list of the country’s “Top 100 Wealth Managers.”

Spero-Smith currently has about $750 million in assets under management, a number that’s fallen slightly over the years — dropping about 5.6% since 2013, according to Crain’s Book of Lists.

But the company has still performed well and has a strong reputation in Cleveland. The company relocated its headquarters from Beachwood to the Terminal Tower in 2015.

Many observers might’ve expected Spero-Smith, founded in 1972, to be an acquirer, not a seller.

“We certainly weren’t in a mode where we were looking to be ac-

Jeff Malbasa, left, and Bob Smith will lead HPM Partners’ Cleveland office. (Contributed photo) quired,” said Spero chairman and CEO Bob Smith. “But with what we’ve done to position ourselves here, it was a case of both firms getting stronger, especially in the Cleveland market, that got us to say, ‘Let’s keep at this,’ as opposed to being dismissive of it.”

HPM reached out to the firm about six months ago about joining forces.

“We liked Bob (Smith), the work they’ve done civically and think they’d be great partners to build our position in Cleveland, which we find to be a very attractive market,” said HPM president Kurt Miscinski. “Our strength in the Cleveland office was heavily rooted in financial planning and tax, and we wanted to find a firm with depth in individual investment advice.”

Smith and Jeff Malbasa, Spero president and CIO, will become partners and lead the combined firm’s new Cleveland office. All other staff is making the transition.

Spero has a total staff of 14, and HPM has 24 in Cleveland. The goal will be to eventually combine the offices in Terminal Tower — HPM’s office is in the Fifth Third Center.

In terms of culture, Spero, which is a fee-only business, liked that HPM was already a fiduciary itself,

which made them unique from other potential suitors, Malbasa said.

That, along with the opportunity to combine in a private partnership, created potential for a long-term relationship.

And while HPM gets a well-known Cleveland money manager to grow its business here, legacy Spero clients will benefit from the financial planning services and tax expertise HPM offers, in addition to the perks of belonging to a larger company overall with a deeper menu of services.

There’s no intention to change services, either, which is key to retaining clients. Fee structures and minimal investment levels won’t change, Smith said.

Miscinski sees Cleveland as a growing market overall. HPM opened its Cleveland office, which works with at least 100 clients, in 2009.

The density of high-net-worth people and large, lucrative companies spells a lot of opportunity, he said, and the synergistic combination with Spero-Smith, which will bolster HPM’s investment advice capabilities, should help draw additional clients.

HPM itself isn’t on an acquisition tear. This was more of a unique opportunity, Miscinski said. As with most firms, their top focus is organic growth. And the Spero merger builds toward that as the firm looks to attract new clients, particularly large companies in Northeast Ohio.

The name change to HPM will happen around the first of the year.

“Cleveland — broader Ohio — is among the most prolific in the country in terms of business owners, entrepreneurs, and there are just a lot of accomplished and prominent businesses there,” Miscinski said.

“We think it will be a terrific place for a firm like ours to grow.”

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Call it a pivot.

Isn’t that what political candidates do as they turn their attention to a broader audience after their primaries and conventions are over?

Well, Northeast Ohio’s tourist and business attraction groups are pivoting after the recent Republican National Convention in Cleveland.

For Destination Cleveland, the convention and visitors bureau, that means a stepped-up effort to bring business meetings and conventions to Northeast Ohio after months of focusing on convention week.

For Team Northeast Ohio, the regional business attraction nonprofit, it means continuing to build relationships created during the run-up to the convention with 300 members of the national and international media who will be checking in on swing-state Ohio between now and Election Day in November.

Eventually, the warm glow of the 2016 RNC will fade, said David Hertz, a managing partner at the Dix & Eaton public relations firm, which works for both organizations, but the positive perception of Cleveland will remain.

“If we don’t maximize the potential to educate the country and the world about Cleveland, then we’ve lost our opportunity,” he said in an interview during convention week.

“That’s the real long-term payoff for our community.”

Team NEO, said Richard Batyko, senior vice president for marketing, communications and development, used the months leading up to the RNC to expand and build on its circle of national and international business media.

He said the perception of the region is important when Team NEO is marketing the region to businesses as a place to bring a business both for the site selectors who are deciding among several locations and for when a company gets reactions from its workforce about a relocation. And making a good impression in media that business reads is important when outdated images like a burning river persist.

Where in the decade before the convention buildup the organization had been visiting one of three international media centers — New York City, Washington, D.C., and London — every other month, it began taking monthly trips to update media such as The New York Times, The Wall Street Journal, CNBC and The Economist and more on the regional economy.

“What this did was just expose (the Northeastern Ohio economy) to many more outlets and many more reporters from those outlets,” Batyko said. “So, for instance, when we went to The Wall Street Journal two years ago, we typically met with one or two reporters, but once they knew they would be coming to Cleveland for the convention, we’d walk into the room and there were eight or nine.”

Team NEO plans to keep this new, expanded group of journalists wellinformed on the regional economy.

Because Ohio is a swing state, said Hertz, they expect reporters will be returning to take the state’s and the region’s pulse as the election draws near and they plan to be ready to

Northeast Ohio hopes to build on Cleveland’s success as host for the Republican National Convention. (McKinley Wiley for Crain’s)

RNC by the numbers About 50,000 people gathered downtown during convention week.

They taxed cell phone systems and descended on our cultural landmarks. Here’s a taste of what went down: 12,700: The number of people who visited the Rock and Roll Hall of Fame over the four days of the convention. The museum drew 500,000 visitors in total in 2015, or about 5,500 over four typical days.

9.4 million terabytes: The volume of traffic across AT&T’s mobile telephone network in the downtown area over the four days of the convention. AT&T says that’s equal to sending 26.8 million selfies.

2,372: The number of people who downloaded the new Destination Cleveland app, which provides detailed information about the region’s visitor attractions and an event calendar keep the region’s economic strengths part of those stories.

“We anticipate, in the next few months, after Labor Day, to talk to journalists about the economy,” Hertz said.

Batyko knows the number of reporters showing up to those meetings will shrink back after the election, but he believes an improved impression of the region will remain.

He also believes the stories that have run in media that came to town for a political event will have a halo effect that embraces other media.

“I’d like to do more with the trade press,” Batyko said. “I could see us drilling down (with our reports on specific industries) into the trade press.

Team NEO also used convention week to make connections with business decisionmakers who spent time in Cleveland. President Bill Koehler and other organization executives spent time rubbing shoulders with attendees at business-oriented events sponsored that week by the Jones Day law firm and by JobsOhio, the state business attraction nonprofit, and at events that attracted foreign ambassadors and others involved in making foreign direct investments — expanding existing U.S. operations or finding locations for new business units.

For Destination Cleveland, whose staff did double duty as the staff of the

Cleveland 2016 Host Committee Inc., the plan, after spending the last several years fixing the impression of the region on potential leisure visitors, is to focus on the business market.

The meeting biz Hosting 50,000 visitors for a political convention has an impact on future meeting and convention business, said Colette Jones, the group’s vice president of marketing.

“Being able to host a meeting with the scope and size of the Republican National Convention definitely helps,” she said. “It shows what our abilities are from a logistics perspective, from a hospitality perspective, from a marketing perspective — all of those things.”

Jones said that it also helps to have a 55% increase in the number of hotel rooms downtown and a relatively new — 3-year-old — convention center that is now attached to a new convention center hotel.

“We’re really going to allocate more of our resources toward marketing Cleveland as a meetings and conventions city,” she said, noting that Hilton Hotels & Resorts chain brought 300 hotels sales people — who sell hotel rooms to all Hilton properties — to Cleveland for its worldwide sales meeting the week after the convention. “It helps tremendously to have had the positive media that we received for the city.”

Bringing more meetings and conventions to town serves a larger purpose — Team NEO’s purpose — as well.

Jones pointed to a 2013 study that Destination Cleveland participated in that found that the business side of tourism — meetings and conventions — can have a long-term impact on business development.

The study, “Destination Promotion: An Engine of Economic Development,” produced by Oxford Economics, an Oxford, England, economic consulting firm, found that by raising its profile as a destination and then increasing the volume of business meetings and conventions it attracts, a metropolitan area increases its opportunities to attract new businesses.

The study cited the example of Asheville, N.C., which hosted the Outdoor Industry Association’s annual conference in 2010. In 2012, a kayak maker invested in a new plant in the region.

“That study shows that leisure travel and meetings and conventions offer a sample of what a destination might be like to live in or work in,” Jones said.

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BIDS

CONTINUED FROM PAGE 1 front-runner to land the event for the second time since 2014.

The earliest Cleveland could host the NBA All-Star Game is 2019, but Silver, when he announced that the league was moving the 2017 game, said Charlotte will host that year “provided there is an appropriate resolution to this matter.”

Regardless, Northeast Ohio is very much in the running for a future NBA All-Star Game.

During the 2015 NBA playoffs, Silver told Cleveland.com’s Chris Haynes that it was “just a function of when” Cleveland would be awarded an All-Star Game. But the commissioner stressed that the league was waiting for the Cavs “to get the additional work done on the building.”

Since James returned, The Q, which is entering its 23rd season as the home of the Cavs, has undergone $22.13 million in improvements that were or are going to be funded by Cuyahoga County’s tax on alcohol and cigarettes. The list of new features includes the largest scoreboard at any arena in the world, $4.35 million in video production upgrades, a $1.66 million sound system, a $2.6 million security system and a new

roof featuring a 28,800-square-foot LED sign that is being funded by the Cavs.

During its May 25 meeting, the Gateway Economic Development Corporation, the nonprofit that serves as the landlord of The Q and Progressive Field, signed off on $9.09 million in additional repairs to the arena, including a new HVAC system, retractable seating and a scoreboard hoist.

During his May 2015 visit, Silver wouldn’t specify which improvements are needed at The Q, which is the league’s eighth-oldest arena.

Since the commissioner’s interview with Cleveland.com, some of the work has been completed or will be done soon, but other improvements the league is seeking are not yet on the table, Crain’s sources said.

Mulhall said his “understanding” is the earliest Cleveland could host the NBA All-Star Game is 2019. A league spokesperson would only say that, aside from Los Angeles, which was awarded the 2018 game, the NBA hasn’t made any decisions regarding future All-Star sites.

That leaves the Cavs and the sports commission in a wait-andplan mode.

Cleveland’s ‘hot’ streak The other events on Mulhall’s wish list include the return of the

NCAA men’s basketball tournament, the Women’s Final Four and the MLB All-Star Game, plus USA Triathlon’s largest and longest-running event — one that brought 4,000 competitors to Milwaukee in August 2015.

The sports commission worked with the Indians on the MLB All-Star bid. The first available year for baseball’s summer showcase is 2019, but a Tribe source said the team didn’t have “much new to report” on the possibility.

Mulhall sounded much more optimistic about the chances of hosting USA Triathlon’s “Super Bowl.”

“They’re coming in for a site visit (in August),” the sports commission’s VP of business development said of the sport’s national governing body. “They’re in Colorado Springs, but it’s hard not to hear how great things went in Cleveland for a major event. That’s a pretty good backdrop for us.”

The same goes for the next fouryear NCAA bid cycle, which begins with the 2018-19 school year.

The sports commission is bidding on its usual array of big events.

The Q hosted three men’s NCAA tournament games in 2015, and the 2018 Division I wrestling championships will be held at Public Auditorium.

“That’s a huge event,” Mulhall said of wrestling. “But we bid on a lot

of Division II and Division III stuff.

We value all those types of events.”

And Cleveland’s value as a host might be at its peak.

Local congressman Dave Joyce said he heard a frequent refrain from his fellow Republicans during the four-day convention in Cleveland.

“We’re a town where the river caught on fire,” Joyce said. “People, I think, had a negative expectation (for the RNC), and everybody I ran into was like, ‘Hey, this town’s fantastic. This is so much fun.’ ” The sports commission has had its share of successes in landing prime events, but Mulhall believes the group’s chances of getting selected for such biggies as the MLB and NBA All-Star festivities got a significant boost from the RNC. “It’s great when they receive those bids and everybody talking about you is talking positively,” Mulhall said. “Now, you still have to have hotels, venues and all the important stuff they’re looking at.”

Cleveland, thanks in part to all of its RNC prep, can check every key box for a monstrous event — aside from a domed stadium and a guarantee that the weather will be as ideal as it was for the Republican convention (and the NBA Finals, for that matter).

“Get in while we’re hot,” Joyce said. “Success breeds success.”

NBA All-Star hosts If New Orleans is selected as the host city for the 2017 NBA All-Star Game, it will mark the fourth time since 2011 in which the game was held in an arena that opened in 1999. Staples Center, the 2018 host, also opened its doors prior to the 1999-2000 season.

A look at the NBA All-Star host arenas since 2011, along with the year the facility debuted: 2011: Staples Center, L.A. (1999) 2012: Amway Center, Orlando (2010) 2013: Toyota Center, Houston (2003) 2014: Smoothie King Center, New Orleans (1999) 2015: Madison Square Garden, New York (1968) 2016: Air Canada Centre, Toronto (1999) FUTURE SITES 2017: To be determined 2018: Staples Center (1999) ABOUT THE Q …

Aside from the 2010 NBA All-Star Game at Cowboys Stadium in Arlington, Texas, which drew 108,713, the 20,592 fans who watched the 1997 All-Star contest at The Q is the largest crowd for the event in that span.

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z AUGUST 1 - 7, 2016 z CRAIN’S CLEVELAND BUSINESS

Important investors put faith in viperks

By CHUCK SODER csoder@crain.com @ChuckSoder

Viperks has won over some Very Important People.

Like who? For one, the founders of TOA Technologies — two of the most successful tech entrepreneurs in Northeast Ohio — are among the investors who recently pumped $1.2 million into the Moreland Hillsbased startup company, which aims to create the world’s best company store.

There are also some big-name companies among the 100 businesses that offer exclusive deals to their employees through the viperks platform. Companies like Goodyear, Zappos and Parker Hannifin.

And the employees of those 100 companies — the VIPs themselves — are actually buying products through the platform.

Those are just a few reasons why CEO Eric Golubitsky thinks viperks is about to take off.

As if viperks wasn’t already growing. The number of companies using the system has tripled since July 2015, but he aims to put that growth rate to shame over the next 12 months.

“We feel that hockey stick is starting,” he said, using a phrase businesses often use to describe exponential growth.

Fred Binstock is confident in the company’s future, too, which is why he agreed to serve as its part-time chief financial officer. His goal is to help viperks put the people and processes in place that will help it scale up quickly.

He’s played a similar role at other startups, including TOA. He worked

for the Beachwood-based mobile workforce management software company from 2008 to 2012 — two years before Oracle Corp. bought Golubitsky TOA. That acquisition is widely believed to be one of the biggest tech deals in Northeast Ohio’s history.

The odds of any startup getting bought for hundreds of millions of dollars are low. Still, Binstock sees similar potential in viperks. That’s why he introduced Golubitsky to TOA’s founders: Yuval Brisker and Irad Carmi.

“It’s got all the elements … to be one of the next really successful companies to start up in Cleveland,” Binstock said.

Brisker told Crain’s that he and Carmi couldn’t be interviewed because they still work for Oracle. But they clearly are committed to viperks. In addition to investing, they helped the company recruit other investors who had put money into TOA years ago, and they introduced viperks to a few big companies who could become customers.

They’ve also joined the viperks advisory board.

Along the way, the founders of TOA influenced how Golubitsky thinks about his business. Whereas other investors looked at his projections and asked what might stop him from hitting them, Brisker and Carmi asked why he wasn’t thinking bigger.

“We’re going 60 miles an hour.

They’re saying, ‘Why aren’t you going 80 or 90 miles an hour?’ ” he said.

Now Golubitsky is working to

Viperks has deals with 500 consumer brands. (Contributed photo) push the accelerator down further.

For one, viperks is in the process of hiring four employees. Today, it employs 16 people, including four parttimers. That’s up from four or five employees a year ago. It’s also working on several new features, including a few that would let companies give employees store credit to recognize them for a 10-year anniversary or a job well done.

A new partnership also could speed up the company’s growth.

Last week, viperks struck an agreement to work with a Cleveland company called Collaborent, which helps government agencies, industry associations and other organizations get together to buy business-related

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The two companies have agreed to cross-sell each others’ products and share revenue they bring in as a result.

The partnership could open lots of doors for viperks: Collaborent runs a nonprofit called the Sourcing Alliance, which serves about 900 public entities as well as industry associations that reach more than 50,000 businesses.

Viperks obviously has a smaller reach at the moment. So why did Collaborent get in on the partnership? President and CEO David Akers wanted to offer his clients more consumer products that their employees might want to buy. Viperks

had already negotiated deals with more than 500 consumer brands.

And the deals are pretty good, Akers said. Last week, he took his daughter to Six Flags Great America after seeing a deal offered through viperks.

“I get to go to Six Flags for 33% off — are you kidding me?” Akers said.

Plus, he likes the fact that about 20% of employees who register on the viperks platform end up buying products. Most viperks customers immediately register their employees by default, Golubitsky said.

A Russian immigrant, Golubitsky started a custom PC business called Micronix USA shortly after graduating from Beachwood High School.

He later worked with his brother and father to start S.M.I.L.E., which installed custom home theaters and sophisticated security systems.

S.M.I.L.E. closed down after the real estate crisis caused business to dry up. But just as the company was winding down, Golubitsky got a mass email from the National Association of Home Builders. It contained deals on products — but not great deals, in Golubitsky’s view.

He thought he could do better. He founded viperks under a different name, Gtail, in 2012, just before entering the now-defunct LaunchHouse Accelerator program in Shaker Heights. By the time he left that three-month-long program, he had launched an early version of the product and was generating a small amount of revenue.

The company has gained momentum partly because it works to ensure that its prices always beat other deals available online, Golubitsky said.

“It’s got to be the best deal. We’ve got to beat Amazon. Otherwise, it’s not a perk,” he said.

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CRAIN’S CLEVELAND BUSINESS z AUGUST 1 - 7, 2016 z PAGE 9

Wirehouse vets launch independent RIA

By JEREMY NOBILE jnobile@crain.com @JeremyNobile

After devoting most of their careers to large wirehouses, Todd Resnick and some of his closest colleagues yearned to go independent.

So when Resnick, whose business partners laud him for an ambitious entrepreneurial spirit, saw an opportunity to break off from Morgan Stanley, he took his friends with him to open up Cleveland’s newest wealth management advisory firm: We Are One Seven — the name reflects one unified vision for business development shared by seven founders, Resnick said.

Resnick, now president and cofounder of the firm, launched the independent RIA here in Beachwood in July along with an additional small office in Utah. He did so with a team of fellow Morgan Stanley advisers, taking a book of business featuring about 500 clients and $600 million in assets under management.

That, alone, is notable. Industry experts say the move of a practice that size would turn heads in large markets like Chicago or New York. In Cleveland, a move like this is exceedingly rare.

Some industry observers have suggested more advisers will flow away from large wirehouses to go independent as a function of this year’s new fiduciary rule set by the U.S. Department of Labor, which imposes a slew of new regulations on the commodities business that some advisers simply aren’t going to want to deal with.

But Resnick said that wasn’t a direct motivation for him. The timing, he said, just felt right to make the move and go independent. He’d been planning out how to do that

since well before the fiduciary rule was passed.

“As my career personally began to grow, we collectively kept thinking it was the right thing to run more like a business instead of just a collection of clients,” Resnick said, referencing the wirehouse model. “While Morgan Stanley was a great institution, we knew we needed to be on our own and manage how things went on a day-to-day basis, like how we use technology, how we invest money … all those things can really be evaluated when you are independent as opposed to being at a large firm.”

There are some interesting partnerships behind the scenes bringing the firm to fruition.

One Seven’s CEO, for example, is Ron Gross, who also serves as CEO of MGO Investment Advisors Inc. in Beachwood.

“I’d been approached through the years by a number of other advisers about partnering or forming a strategic alliance, but Todd was the first one I met who also shared my entrepreneurial passion,” Gross said. “We know that going independent is complicated and time-consuming but our goal at One Seven is to make that whole process easier for other advisors who want to join our network.”

It’s that easier process One Seven hopes will draw additional advisers yearning to work in an independent model, which will in turn grow the firm itself.

“When you’re in the independent space, you get more freedom and ability to do things that might not be available in the financial advisory setting,” Resnick said Coupled with the benefits of being independent, One Seven plans to grow quickly — but not to such a large size that they start morphing

“We knew we needed to be on our own and manage how things went on a day-to-day basis, like how we use technology, how we invest money.” into a company of the size Resnick and his team left and lose the personal touch they’re looking to create in the business.

Once established, Gross said the goal is to recruit one group per quarter of a similar size to the four-person team that left Morgan Stanley to start up One Seven.

“If we could bring on a group like Todd’s, if we bring in $3 million to $9 million or $12 million a year in a

(Contributed photo)

— Todd Resnick, president and cofounder of One Seven

three to five year period, that’s great,” he said. “If we hit half that goal, that’s still great.”

Resnick said they’re already looking at an additional office in Columbus. Yet, “we don’t want to grow to a point where there’s people losing touch,” he said, underscoring the value of their business model.

“I don’t want to be a loosely knit network of advisers,” he said. “I want to be a brand. And it may be the

brand is local and might mean we are in Columbus, Cincinnati, Detroit, Toledo.”

They also plan to limit the number of advisers in each city, possibly between five to 10 per office.

But the firm is still in its early days and ironing details like that out.

“Once this first transition is done and we can fine tune the way we do things, I think there will be an array of opportunities,” Resnick said.

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20160801-NEWS--10-NAT-CCI-CL_--

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z AUGUST 1 - 7, 2016 z CRAIN’S CLEVELAND BUSINESS

Opinion From the Publisher / Editor

Much to learn from the DNC email hack

Editorial

High road Riding high off the Republican National Convention in Cleveland, the party’s presidential nominee, Donald J. Trump, couldn’t stop himself — shocking, we know — from trashing a handful of highprofile politicos from his party who still refuse to support his candidacy. One, of course, being Ohio Gov. John Kasich.

Trump went as far as floating the idea of creating and funding super-PACs designed to end the political careers of his fellow Republicans, Kasich and Texas Sen. Ted Cruz, should either run for office again. Petty? Absolutely. More importantly, however, is how our governor handled what has become an extremely toxic situation.

Despite the convention being held in Ohio, Kasich respectfully rejected Trump’s fear mongering and demagoguery. He did so without entering the convention hall, choosing instead to remain on the perimeter, speaking to state delegations and others while offering up his vision for America.

Unlike Cruz — who took the stage in primetime but refused to endorse Trump — the governor offered his outlook in a relatively low-key fashion that didn’t appear as an aggressive launch for a 2020 bid for the White House. It would have been easy for Kasich to seize the limelight in Cleveland.

At the Democratic National Convention last week, Pennsylvania officials of all stripes took the stage and touted the Keystone State’s accomplishments. The stage at The Q was practically begging for Kasich to tout himself as one of the “chief architects” of the federal balanced budget.

Kasich was blasted by Trump and other Republicans — including party chairman Reince Priebus — for reneging on his pledge to support the party’s nominee. But what’s more important? Supporting one’s party or standing by one’s ideals?

Given that our federal government has almost become paralyzed because of party division, we’d argue the latter.

Early in his first term as governor, Kasich’s approval ratings plummeted following an aggressive attempt to dismantle the state’s public employee unions. Since then, he’s adopted a more-palatable, consensus-building governing style — a far cry from the hard-charging conservative crusader act we came to know early on. And despite the temptation during the presidential primary, he never took a page from Trump’s playbook.

Contrast that even with Ohio Sen. Rob Portman who offered an endorsement — albeit a tepid one — for Trump. The language coming from the Portman campaign — belittling Ted Strickland as “Retread Ted” and describing the Democrat’s campaign as a “low energy and invisible” — sounds more like a knee-jerk tweet from the Trump campaign than the mild-mannered senator we’ve come to know over the last several years.

In February, we argued that Kasich needed to step out of the presidential race and back someone who had a better shot at derailing the Trump train. Were he to stay in the race, we had hoped he would ditch his “prince of light and hope” routine and embrace his more combative side, at least when it comes to Trump. It turns out the best fighting words he could offer were those unspoken.

Governor, if anything, you’ve proven yourself as an elder statesman, driven neither by a need to blindly support your party or to be a shameless self-promoter. In the current political environment, that might mean you’ll never win another election. But at least you’ll know you’ve done the right thing.

PUBLISHER AND EDITOR: Elizabeth McIntyre (emcintyre@crain.com)

CLEVELAND BUSINESS

MANAGING EDITOR: Scott Suttell (ssuttell@crain.com) SECTIONS EDITOR: Timothy Magaw (tmagaw@crain.com)

We learned a valuable lesson when, days before the Democratic National Convention in Philadelphia, WikiLeaks released nearly 20,000 emails stolen from the Democratic National Committee.

The lesson wasn’t in the obvious fact, revealed in the hacked emails, that the DNC clearly favored Hillary Clinton over rival Bernie Sanders. Cynical as it may sound, that really comes as no surprise. A broader lesson transcends politics — emails are never private.

This is not to excuse any underhanded dealing, nor am I advocating that it’s OK to do bad things as long as you don’t leave a digital trail. But the fact that these emails were hacked provides us an opportunity to rethink our attitudes toward email and who might eventually see what they contain.

The DNC isn’t alone in failing to remember that no email is safe. Sony Pictures executives Elizabeth and employees were humiliated in late 2014 McIntyre when a cyberattack on the entertainment company’s servers revealed private, nasty email conversations about some of the film industry’s top names, including Angelina Jolie and Jennifer Lawrence. Likewise, Democratic nominee Hillary Clinton is reminded constantly on the campaign trail that confidential emails really do not exist.

With the proliferation of social media, where seemingly no thoughts are left unspoken (or, rather, untyped), sharing has led to oversharing. It’s no wonder, then, that the tendency to say more than necessary could extend to your email and then to your work email. We’ve gotten so comfortable with all forms of self-expression that we forget that people are watching, reading and listening. So here’s a bit of advice: When you feel the urge to respond with a flip reply, or when you want to insult a third party, or if you’re talking strategy (the legit kind or otherwise), it’s best that you just step away from the keyboard before you hit send or, better yet, before you even begin to type.

Consider any email you write — especially from your work account — a public document. Imagine that when you reply, you’re actually hitting “reply-all” (which also happens more often than you’d think.) Now imagine one of those emails — maybe that inappropriate joke you sent to your coworker or that sensitive company information you shared with a client — appearing in print or online in the media, for all the world to see. A bit frightening, isn’t it?

I know how cathartic it can be to dash off an angry screed about a boss or a complaining customer. Some say, “Go ahead, get it off your chest. Write that email and just send it to yourself. You’ll feel better.” Not so fast. Sending that email to yourself makes that diatribe just as vulnerable to hack as if you’d sent it to the intended recipient.

Best to put the smartphone down. Close the laptop. And find some other way to vent. Go home and tell your dog if you have to. She can’t be hacked and while she is a sucker for MilkBones, she’ll remain loyal.

Or maybe even work through what caused you to want to send something that might become a public embarrassment.

Maybe you need to have an honest adult conversation with somebody, or you need to work to resolve a problem that’s festering. Maybe you just need to check your own attitude.

Step one, though, is to step away from the computer.

WRITE US: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing letters@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.

SOUND OFF: Send a Personal View for the opinion page to emcintyre@crain.com. Please include a telephone number for verification purposes.

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CRAIN’S CLEVELAND BUSINESS z AUGUST 1 - 7, 2016 z PAGE 11

Stipe Miocic

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Web Talk Re: Renaming the ‘Rust Belt’ A new term instead of “Rust Belt?”

What’s wrong with some older terms, like “The Forest City” or “The North Coast?”

Please don’t bring back the “New York’s a Big Apple but Cleveland’s a Plum” campaign.

If they have to have a new term, I suggest, “the City of Parks,” referring to our great Metropark system and the Cuyahoga National Park. — Bob Fritz

Re: Josh Gordon’s return to the Browns “Rosenhaus, to his credit, said after Gordon was reinstated that the 25year-old’s career is on the line and this likely marks his last chance in the NFL.” And this time we really, really, really mean it. Really.— Lyn Anderson Two words, Dwayne Bowe (as in receivers we had high hopes for but produced next to nothing). Josh has a lot to prove and 3 years is an eternity in pro sports. How often do we see talent sabotaged by stupidity & hard work overcome obstacles? Josh has shown which camp he subscribes too over and over. While I hope he can get on track, I’ll only believe it when I see it. — Joel Crites

Re: Starting lawyers salaries see uptick It’d be nice to also see these firms pay their paralegals a better wage too. Paralegal salaries have been stagnant for many years, yet the cost of living keeps going up.— Blythe

Re: Public Square during RNC I am not sure how Public Square will “function” when Superior is opened and traffic commences but I was on the Square Sunday night and the final Thursday night of RNC and it was a great venue. Diners, police, general public, protestors, TV crews and even a rooster running around the bushes all blended well. Many people were taking pictures of Terminal Tower, Soldiers Sailors Monument and other highlights. — Jim Daniloff There are many voices, independent of each other, urging to close superior Avenue to all traffic. I agree with this but, doing so would (IMO) necessitate the removal of all car traffic that encircles the Square. Removing said traffic would make it much easier to cross from the sidewalk into the Square, which is currently or difficult than it needs to be more difficult / dangerous than it needs to be. — John M. McGovern I just do NOT get the big square building (cafe) that blocks the view of the entire square for anyone coming up out of Tower City. — pjj16

CAPITAL CONTINUED FROM PAGE 1

raised a total of $189 million. Neither number has been that low since 2011: According to reports JumpStart issues each year, local companies raised $212 million in 2012, $264 million in 2013 and $338 million in 2014 (that year, CoverMyMeds, which has an office in Highland Hills, raised what JumpStart has described as one of the largest health care information technology investments in the country).

But 2015 is not the beginning of a downward trend, given all the new capital that investors just raised, Leach said.

Since December, Ohio investors have received a total of $74 million from the Ohio Third Frontier, a tech-focused economic development program. About $36 million was awarded to nine funds in Northeast Ohio: JumpStart (which has three funds), the Cleveland Clinic Bio Validation Fund VII Plus, Launch Den Capital Fund, Mutual Capital Partners Fund III, Valley Growth Ventures, North Coast Angels Fund IIIb and North Coast Venture Fund.

To get that money, however, the investment funds were required to line up matching dollars — another $120 million, in total. With the state’s money, that should equate to $194 million in new capital throughout Ohio, so long as the state finalizes all of the awards.

Because of that funding, “a whole new crop” of young companies in Ohio will be able to raise capital over the next few years, Leach said.

Plus, Columbus-based Drive Capital has raised $202 million for its second fund this past winter, according to a form it filed with the U.S. Securities and Exchange Commission on March 1.

VentureOhio estimates that other startup investment funds throughout the state have raised or are on the verge of closing on another $100 million, roughly, according to Falon Donohue, executive director of the Columbus-based organization.

Even with that money, Ohio still won’t be playing in the same ballpark as states like California, Massachusetts or New York. For instance, startups throughout Ohio raised $373 million last year, which is up 11% from 2014, according to VentureOhio’s 2015 Ohio VentureReport. By comparison, startups in California raised nearly $34 billion last year, according to figures from the PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report. The report, which is based on data from Thomson Reuters, put the Ohio figure at $264 million.

But the Ohio venture community does have momentum, Donohue noted.

That momentum could grow if some of the previously mentioned companies hit it big.

For instance, both JumpStart

Have some fund Nine local investment funds that finance startup companies have received a total of about $36 million from the Ohio Third Frontier program since December.

■ JumpStart Evergreen Fund: $5M

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■ JumpStart NEXT Fund: $2.5M ■ Cleveland Clinic Bio Validation Fund VII Plus: $10M ■ Launch Den Capital Fund: $3M

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■ Mutual Capital Partners Fund III: $2.1M

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■ Valley Growth Ventures: $3M ■ North Coast Angels Fund III: $1.7M ■ North Coast Venture Fund: $3.6M and the Medical Growth Fund, a Cleveland-based investment group, invested in CoverMyMeds.

That company generated roughly $100 million in revenue last year and has 407 employees, most of whom are in Columbus. It released its first product — software that’s used to get insurance approval for prescription drugs — in 2010.

JumpStart and a few other local investment funds also own shares in Cleveland-based OnShift, which just raised another $18 million. The staff scheduling software company now employs 145 people, up from 90 in April 2015.

North Coast Angel Fund is among OnShift’s investors as well, as are Early Stage Partners and Glengary, two local firms that currently have no cash to invest.

North Coast Angel Fund also holds a stake in Assurex. The Cincinnati-area gene testing company employed about 220 people in October 2014. Now that figure is approaching 500, according to Todd Federman, managing director of the fund, a group of local individual “angel” investors.

So with all the new capital and the pipeline of investments that they’ve already made, will Ohio’s venture capital community be able to sustain itself? Even if the Third Frontier never provided them with additional funding?

“That’s certainly the hope,” Leach said.

Federman gave a similar response. But both men suggested that startups throughout the state would be hurt if the Third Frontier came to an end. Leach noted that the program also helps fund the services provided by JumpStart and other organizations that work with entrepreneurs.

Federman added that he’d like to see other institutions in Ohio — foundations, pension systems and even insurance companies — invest in venture capital funds within the state. First, however, those funds have something to prove.

“Our job now is to demonstrate sustained success,” he said.

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Hertz may add North Point to its portfolio

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GOING FOR THE WIN

By STAN BULLARD sbullard@crain.com @CrainRltywriter

Hertz Investment Group of Santa Monica, Calif., is taking steps signaling it wants to make the North Point office complex, 901 Lakeside Ave. its third skyscraper in downtown Cleveland.

Hertz formed three company names July 20 at the Ohio Secretary of State’s office telegraphing its pursuit of the 19-story office tower and adjoining five-floor office building that house Jones Day and other tenants.

The firm names are Hertz Cleveland North Point Manager Inc, and the limited liability companies Hertz Cleveland North Point Mezzanine LLC and Hertz Cleveland North Point LLC. The names are similar to two of the names it used for its 2015 purchase of Fifth Third Center, 600 Superior Ave. If Hertz closes the deal, the owner of downtown skyscrapers across the country would own three of Cleveland’s top-tier office buildings which were also constructed in the 1990s.

Hertz paid $35 million for Skylight Office Tower, Huron Road, in September 2015 after paying $53.8 million for Fifth Third Center in April 2015.

Gary Horwitz, Hertz president and chief operating office, said the company does not comment on potential acquisitions.

However, Hertz’s first two bites of the market may have created a larger appetite for Class A Cleveland buildings. In an email, Horwitz wrote that, “Things are going very well at both Fifth Third and Skylight.

At Fifth Third, we have leased over 85,000 square feet since we acquired the asset a year ago and now are around 88% leased. Similarly at Skylight, we have signed new leases and are over 90% leased. We remain very bullish on Cleveland.�

Hertz is a rarity among buyers of downtown skyscrapers in that it is willing to buy several Class A, or top tier, buildings in the same market rather than diversify its holdings among many cities. Hertz’s current portfolio consists of 54 downtown office buildings that total more than 20 million square feet of space.

For example, its website shows it owns eight properties in downtown Jackson, Miss., which have office space totaling more than 1.6 million square feet.

Hertz taking another bite from SEE HERTZ, PAGE 14

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Despite job losses, other signs suggest economic growth A projected decline of 2,343 jobs in June ended a five-month string of Northeast Ohio job gains, though the loss may only reflect a summertime blip since other indicators suggest job and economic growth, according to data in the latest Ahola Crain’s Employment (ACE) Report.

Also, the month-to-month, 0.02%, drop in seasonally adjusted employment for the seven-county AkronCleveland region, is balanced against a year-over-year gain of 6,249 jobs, a 0.54% increase from June 2015 to June 2016.

“It’s hard to gauge whether or not the expected pullback in payrolls point to a sea change in regional economic activity,” said Jack Kleinhenz, the Cleveland Heights economist who created the ACE model.

“Payroll growth has been choppy. A similar pattern was evident in 2015 as payrolls fell off in the summer but then rebounded in the fall.”

Private-sector employment in the metro area dropped 0.22%, or 2,589 jobs, between June 2015 and July 2015, according to the ACE model, before recovering.

The report projects that service producing firms account for about 2,279 lost jobs, while the goods producing sector shows only a loss of about 64 jobs.

Kleinhenz noted that the stronger dollar “has shown to be a significant speed bump for regional, state and U.S. manufacturing exporters and has created a drag on domestic employment, income and spending.”

He said the research office of the Ohio Development Services Agency estimates that Ohio merchandise exports declined 3%, or $50.7 billion, between 2014 and 2015. But, Kleinhenz reported, other indicators of the economy do point in a positive direction.

“Both the Institute of Supply Management’s manufacturing and nonmanufacturing indexes showed a pickup in the pace of growth in June and registered expansionary readings for survey’s employment component,” he said. “This bodes well for area income and spending.”

The U.S. manufacturing sector showed strong growth in June according to the latest monthly survey conducted by the Institute for Supply Management. Manufacturing supply executives indicated a Purchasing Managers’ Index increase of 1.9% Of the 18 manufacturing sectors tracked by ISM, 13 reported growth in June led by printing, textiles, petroleum and coal products and food, beverage and tobacco products. The three industries reporting contractions are electrical equipment, appliances and components; transportation equipment; and rubber and plastic products. — Jay Miller

CORRECTION Due to incorrect information submitted to Crain’s, the July 18 list of Northeast Ohio’s Top 100 Employers reported an incorrect top local executive for the Shaker Heights City School District. Gregory C. Hutchings Jr. is the superintendent.

The ACE Report AHOLA. CRAIN’S. EMPLOYMENT Crain’s Cleveland Business has partnered with The Ahola Corp., a payroll and human capital management firm in Brecksville, and local economist Jack Kleinhenz to provide monthly data — and clarity — about a key factor in business decisionmaking: the size of Northeast Ohio’s workforce.

Seasonally adjusted employment numbers, Northeast Ohio

“It’s hard to gauge whether or not the expected pull back in payrolls point to a sea change in regional economic activity.”

— Jack Kleinhenz, economist who created the ACE model.

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Hertz Investment Group of Santa Monica, Calif., may have eyes on the North Point office complex on Lakeside Avenue. (David Kordalski)

HERTZ

CONTINUED FROM PAGE 12 Cleveland’s market draws mixed reviews from local real estate agents.

Kevin Piunno, a senior vice president at Cushman & Wakefield Cresco based in Independence, said the volume of downtown office space is declining thanks to conversions to apartments and tenants are expanding in Class A buildings.

“Hertz has a good crystal ball and sees things look promising in the downtown office market,” Piunno said. “In the next 18 months the Class A market will tighten up. North Point has had about the same amount of vacancy for some time.

With the way the market is going, they may be able to take advantage as rents start going up.”

A larger presence downtown will

LEADER. MENTOR. FRIEND. Ann

allow an owner to negotiate with more strength with tenant, he said.

“It isn’t actually a good sign for Cleveland,” Piunno said.

However, Terry Coyne, an NGKF vice chairman, differs.

“It’s a good sign when an out of state owner wants to expand in our market,” Coyne said. “They would not reinvest if they did not believe in our market. It’s a sign our market is healthy.”

The Chicago office of the Eastdil brokerage is marketing North Point for Chicago-based Equity Commonwealth. Steve Livaditis, an Eastdil senior managing director, refused to discuss North Point.

Equity Commonwealth has been shedding properties across the country since famed office building owner and investor Sam Zell set about reorganizing the public company after gaining control of it in 2015. Zell serves as its chairman.

Killian

Vice President, Human Resources (retired)

CONGRATULATIONS ANN, RECIPIENT OF THE ou ar and in the futur

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Crain’s 2016

N

ow in its sixth year, Crain’s Archer Awards program celebrates Northeast Ohio’s human resources professionals who “hit the mark.” These talented professionals are the guardians of one of the most important components of an organization: its culture. Held in partnership with Howard & O’Brien Executive Search, this year’s program aims to highlight those HR professionals who are committed to building a better workforce.

Award recipients of the HR Executive of the Year in the public and private categories, as well as those in the Innovation and Rising Star categories, will be announced at the Aug. 9 event. The independent judges panel that reviewed nominations in the HR Executive of the Year, Rising Star, Talent Management, HR Team and Leadership in Diversity categories consisted of:

Archer Awards

2016 Lifetime Achievement Award Recipient “I don’t think I worked any less hard, but I think that my head wasn’t in work all the time when I wasn’t working. And that was nice.”

Winner

Ann E. Killian Vice president, human resources, retired, Ferro Corp.

A

nn E. Killian sees herself as someone who “likes to get things done.”

Her 40-year career took her around the world, though she was anchored in Northeast Ohio through her work for Cleveland-based diversified industrial and automotive company TRW Inc. and Mayfield Heights-based performance materials company Ferro Corp. for much of it. When Killian retired as vice president of human resources from Ferro in March, she had spent a little more than a decade heading up human resources for the company.

Her HR career began with TRW in 1982, after she graduated with her MBA from Cornell University. She was recruited to take part in the company’s management intern program, which was made up of four, six-month rotational assignments.

Her third assignment took her to a machine tool plant in New Haven, Conn., that was facing contract negotiations. It was there that she learned one of the biggest lessons of her career, which was that she could “be successful in a situation where I really had no experience or reason to believe I would be successful.”

“And in many ways, that gave me a sense of confidence and calm about going into other situations like that in the future,” she said.

The employee relations manager at the plant — and that individual’s replacement — quit before the negotiations, leaving Killian as the chief spokesperson. After negotiating a contract that kept the plant open, she was offered a job.

Deborah Armstrong, chief human resources officer, Materion Thomas Hopkins, senior vice president, human resources, Sherwin-Williams Amy Shannon, president, Pinnacle Leadership Solutions Robert S. Gilmore, partner, KJK Debra Lyons, chief human resources officer, retired, Westfield Group

SEE KILLIAN, PAGE 18

Join Crain’s in celebrating the 2016 Archer Awards

THANKS TO OUR PRESENTING SPONSOR:

Tickets are still available!

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20160801-NEWS--16-NAT-CCI-CL_--

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Crain’s 2016

Archer Awards

Innovation Finalist

Finalist

Tony Prinzo

Peggy Corbin

Talent acquisition manager, National Interstate

Director of human resources, Recovery Resources

Tony Prinzo is always looking to see how he can help you get something done.

From a recruiting standpoint, that means helping a hiring manager find the person they need to fill a specific role. And as Tony Brown — National Interstate’s vice president of human resources — sees it, that sort of dedication is inspiring.

“As his manager, he’s always asking what he can do to help me, or how his team can help me,” Brown said. “That’s encouraging to be around.”

That collegiality is one of Prinzo’s finest qualities, Brown said, and it shows in how he’s been able to build relationships throughout all of National Interstate, a Richfield-based commercial truck insurer.

“He’s always trying to understand what their needs are, but he also has the will and the fortitude to help them fill the positions with the right person,” he said.

Over the past several years, National Interstate has benefited greatly from the efforts of Prinzo’s talent acquisition team. Prior to this team being in place, there was not a designated function, nor were there any metrics in place, to measure the effectiveness of the efforts put forth from a recruitment perspective.

Meanwhile, recruitment volume

has grown 16% yearover-year since 2013, and the team has performed well, while keeping the company’s cost-per-hire under the national average. And while recruitment volume is up, turnover is trending down, which the nomination attributes to Prinzo’s team’s ability to attract and acquire the proper talent.

One of the things Prinzo’s team is most proud of is the employee referral program. The nomination said it resulted in 124 new hires from 2014 through the first quarter of 2016, which “speaks to the team’s ability to engage the employee population and leverage all employees as brand ambassadors.”

Brown said Prinzo also pushed for expanding the company’s use of social media. That effort, according to the nomination, required buy-in from the C-suite to create a process that was not only acceptable to all parties but also impactful. National Interstate’s employer brand messaging and career opportunities can now be found on Twitter, LinkedIn, Facebook and many consumer-facing websites.

Prinzo is also active in the community, having served on the Insurance Studies Advisory Board at Kent State University for over two years. He was also recently invited to join a customer advisory board at Monster.com.

— Timothy Magaw

Early in the nomination written for Peggy Corbin, the question is posed: How many people in their graduate programs deliver a pay-for-performance system to a nonprofit that was widely applauded and is still in use more than a decade later?

Corbin makes at least one, and as a result of her innovation, Recovery Resources in Cleveland rewards people monetarily for what they do and delivers developmental value-add, too. But that system is far from the only innovation Corbin introduced to the nonprofit, which helps people with mental illness and addictions.

She created the People’s Choice Award, wherein associates nominate their peers in a number of categories related to the achievement of business objectives. She built the Managing Successfully program in which all new leaders at Recovery Resources participate.

She designed the “Fit as a Fiddle” campaign, an eight-week program that looked at all aspects of well-

ness for employees.

And she started the Reward and Recognition Group, which meets every other month to address job satisfaction issues.

“Given the pace of the human services organization, people are pulled in many directions,” the nomination said. “Peggy has made it a point for people to slow down and actually listen to one another.”

Corbin drives change in the nonprofit sector, which often lags the private sector, and others who practice human resources have taken notice.

“HR leaders in nonprofit organizations around Cleveland have sought out Peggy’s advice as they try to implement new initiatives to better engage their workforce,” the nomination said.

In addition, many such leaders approach Corbin for her advice on how to best get a handle on their turnover.

“It is very difficult for organizations in the social services sector to

reconcile being a ‘business’ with limited resources to meet the needs of those we serve,” said Recovery Resources President and CEO Pamela Gill. “Peggy has been able to introduce best HR practices to help us manage the business while tending to the needs for our employees and clients — a delicate balance but necessary for the continued success of Recovery Resources.”

Succession planning is another persistent challenge for the nonprofit sector and another area in which Corbin has innovated. She created a new job classification of associate directors, and such individuals are being groomed for higher-level positions and receive individually tailored developmental assignments.

“For those who know Peggy, it would not be a surprise that she began her career as a middle school teacher,” the nomination said. “The excitement and passion for people can be seen in her eyes and she will always be a teacher at the core — a person who teaches employees how to be more productive and engaged as they fulfill Recovery Resources’ important mission.”

— Michelle Park Lazette

Finalist

John Corn Human resources manager for training and development, Northeast Ohio Regional Sewer District Recognizing that retirement loomed in the near term for nearly a third of their organization’s specialized operators, officials with the Northeast Ohio Regional Sewer District doubted they would find locally the number of qualified workers they’d need.

It’s a challenge not isolated to the sewer district. Baby boomers are retiring, CEO Julius Ciaccia explained. Plus, many young prospective employees don’t desire to work long-term in government, and water industry work is predominantly public sector.

So, given the limited, known prospects, the sewer district invested in developing a talent pipeline: In 2014, it hired John Corn to address the anticipated shortage.

Corn overhauled an incumbent training program, and what he built to replace it is now seen as a model for other organizations. Corn’s program, formed by leveraging new partnerships and collaborations, has led others in the water industry to seek him out to help in addressing the industry’s workforce challenge.

“Extensive comprehensive training is necessary to get the operators of today proficient for the skilled jobs in the coming years,” the nomination said. “John has systematically aligned the training with the employment needs of the future.”

The sewer district’s training and development group works in conjunction

with Cuyahoga Community College to provide the latest theorybased instruction to machine repairmen, electricians, and others.

Corn’s training program is rigorous, wellstructured, and futurefocused, Ciaccia said.

“Teams of his trainees have already begun to help us perform some important preventative maintenance work,” he said.

“Within the next couple of months, we expect to see even more contributions, as members of the first cohort of trainees are moved to our Easterly and Westerly plants to continue their on-the-job training.”

In revamping the district’s training program, Corn eliminated major training expenses by hiring qualified trainers as part of his staff. Those trainers not only train those in the trainee program but also are able to perform routine required certification training for workers who already are operators.

In the last year alone, the sewer district has saved more than $100,000 in external training costs.

A military veteran, Corn has worked with the sewer district’s human resources department to recruit other veterans and has helped to transfer military qualifications and experience to civilian work expertise.

He was instrumental in helping to create a Veterans Employee Resource Group for which he serves as chaplain. — Michelle Park Lazette

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Crain’s 2016

Archer Awards

HR Executive of the Year Private Company (finalist)

Private Company (finalist)

Jackie Bovinet

Judy Collister

Senior director of human resources ClinicalRM

Executive vice president of human resources Park Place Technologies

Overseeing a company’s human resources function is no easy task, and that’s especially the case when the company is being acquired. But at ClinicalRM, a Hinckley-based company that recently agreed to be acquired by global drug development firm ICON plc, Jackie Bovinet worked hard to put any of the employees’ concerns about their future to rest. “For her being able to navigate that and keep the leadership team on point with good communication was such an enormous fete for the company,� said Victoria Tifft, ClinicalRM’s CEO. “Without that, we could have had a lot of stress and some difficult times.�

Bovinet joined the company in 2014 with more than 25 years of experience. In her short time with the company, she has “taken our organization to the next level and provided us with the right cultural foundation, processes and talent management programs to expand our staff, support strategic corporate goals and serve new marketplaces,� the nomination said.

For one, she’s implemented leadership development and coaching programs, which the nomination said have resulted in a demonstrable shift in employee engagement.

Most notably, Bovinet delivered recruiting and employment strategies to support the

company through a period of significant growth and global expansion in both the United States and Africa. Meeting these hiring demands and building processes to support complex international programs was driven by a need for ClinicalRM to respond to the 2014-2015 Ebola crisis with clinical trials in Africa.

But even while handling the talent end of ClinicalRM’s expansion during the Ebola crisis.

Bovinet simultaneously executed new programs to support the corporate culture objectives of the company, the nomination said.

Faced with rapid need for domestic and global talent, Bovinet created and implemented a talent acquisition strategy to meet strategic corporate goals. With 370 employees at the start of her career at ClinicalRM, the organization has grown nearly 25% with over 460 scientific, technical, clinical, IT, and administrative personnel today, and an additional three facilities.

Bovinet is also active in the community.

Through 2015, she contributed her time to help launch a new church in the Cleveland area, volunteering more than 20 hours per month. “A faithful biblical tither,� the nomination said, she is committed to financially supporting her church and community. — Timothy Magaw

The company culture and the size of Park Place Technologies has radically transformed in the six years since Judy Collister joined the information technology services firm, and she has had a lot to do with it.

Collister has improved its benefits and wellness programs, implemented meaningful rewards and recognition programs, rolled out performance management, and more since she joined in 2010. The firm has grown 30% year over year, and even with that growth, Park Place boasts a 6-8% reduction in turnover. “We’ve never been in better shape, across all human capital fronts, thanks to Judy and her team,� the nomination said. “She creates a truly ideal work environment.�

For a service business like Park Place, where employees are pivotal in creating and maintaining top-notch service experiences, happy and engaged employees create a work environment that attracts and retains the right talent to consistently deliver value for customers, said chairman and CEO Ed Kenty. “HR leadership can be strategic as well as thoughtful, and Judy’s influence helps the business make good investments in all areas involving people,� he said.

Collister demonstrates an impressive ability

to get management buy-in, always coming to the table with a business case and identifying the benefits of change management, risk mitigation and return on investment. “Judy is the first HR partner that I’ve felt comfortable involving in every aspect of the business,�

Kenty said. “She is a strong thought leader and seasoned coach on even the most thorny or sensitive matters.�

Collister introduced a so-called Employee Value Proposition, which ensures that all employees are trusted and empowered to grow, learn and become successful within the company and respect others around them to create a harmonious work environment.

A sign in Collister’s office reads, “Name Your Own Adventure,� Kenty noted. “Judy’s open door stresses the importance of two-way communication, and is a safe place for employee concerns,� he said. “Employees feel comfortable coming to Judy with new ideas or sometimes to reframe a problem.�

Collister mentors employees through their respective career paths. She does it, too, outside of Park Place: Through North Coast Job Seekers, Collister spends time coaching individuals in their careers by reviewing resumes and advising candidates through application and interview processes. — Michelle Park Lazette

CONGRATULATIONS

Crainâ&#x20AC;&#x2122;s 2016 Archer Awards Winners and Finalists We are Cliffs Natural Resources Inc., a leading iron ore mining company and a member of the Cleveland community for almost 170 years. The company is proud to recognize one of our leaders, Maurice Harapiak, Vice President â&#x20AC;&#x201C; +XPDQ 5HVRXUFHV IRU EHLQJ VHOHFWHG DV DQ $UFKHU $ZDUGV Ă&#x20AC;QDOLVW IRU +5 ([HFXWLYH RI WKH <HDU ² 3XEOLF &RPSDQ\

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Crain’s 2016

Archer Awards

HR Executive of the Year Public Company (finalist)

Public company (finalist)

Barb Astler

Maurice D. Harapiak

Vice president of human resources MedData Inc.

Executive vice president of human resources Cliffs Natural Resources

Barb Astler has helped to oversee a massive influx of employees over the last five years at MedData Inc., a provider of services and technology meant to help hospitals reduce costs and increase productivity.

The company has grown from about 250 employees when Astler joined in 2011, to more than 800 earlier this year, and now more than 2,000 as it integrates the newly acquired Cardon Outreach LLC, a provider of third-party eligibility and other revenue cycle management services for hospitals. (That deal was announced in mid-June.)

That kind of growth, obviously, keeps the human resources department busy. But colleagues say Astler’s professionalism and dedication to employee advancement have kept MedData running smoothly as it expands in a busy field.

Astler “emphasizes being passionate about our work and proud of helping others achieve their goals,” said MedData president Ann Barnes.

Tonya Turner, HR generalist who works closely with Astler at MedData, said that one way the company does that is through a “Career Pathing” program Astler started.

“We look at where (an employee) is and what their next three positions (in MedData) can be,” Turner said. “It’s about helping people find their best fit within the organization.”

In Astler’s nomination, the company said that by opening Career Pathing across the organization, “employees have been given opportunities to experience roles they otherwise would not have seen. Engagement scores have

increased as people have found positions that best fit their knowledge, skills and abilities.”

Turner said that beyond the technical aspects of the job, Astler brings a passion to HR that “is very focused on the individual and encouraging them to get the most out of their ability.”

According to the nomination, Astler has worked with the IT department to help make MedData “largely paperless” and to streamline the onboarding process for new employees while also implementing an online performance management system.

“The time saved by these advances has been directly reinvested into additional HR programs, including coaching sessions, manager check-ins and wellness initiatives,” the nomination stated. Onboarding check-ins “are now completed with 100% of employees before their first 60 days. These check-ins include the manager and the employee, and allow for productivity and engagement to be maximized as quickly as possible, and for problems to be addressed immediately.”

In addition, through a partnership Astler created in 2012 with Cigna Health Insurance, the company’s wellness initiatives “have consistently improved employee health over the years.” By 2015, the nomination stated, the company achieved an 8% reduction in employees with three or more “at-risk” measures, a 15% reduction in at-risk cholesterol levels and a 15% rise in year-over-year biometric screening attendance for three straight years.

— Scott Suttell

Maurice Harapiak is a human resources pro with “a proven track record of building high-performing teams in challenging, competitive situations,” in places including Africa, the Dominican Republic, Russia and South America, according to his nomination.

That kind of background came in handy at Cliffs Natural Resources, the Clevelandbased mining company he joined in 2014, when the company was in a crisis brought about by a major decline in the price of iron ore, from about $200 per ton to a 15-year low in the $30s. (It has since recovered a bit but remains in the range of $50 to $60 per ton.)

Harapiak describes his time at Cliffs as a “fascinating but rocky road,” marked by a leadership turnover with a new CEO, Lourenco Goncalves, and a major corporate restructuring. Among Harapiak’s duties: reducing outside service spending and overseeing a downsizing “from 300 headquartered corporate employees to just over 130,” according to the nomination. His HR department “was the first to get cut significantly.”

This was no run-of-the-mill downsizing, as the nomination noted “corporate executives were also trimmed from a peak of 26 leadership positions down to seven.” The initiatives Harapiak oversaw “resulted in a material reduction in SG&A (selling, general and administrative) budget from $250 million in 2014 to a projected $105 million in 2016,” according to the nomination.

Cuts that deep leave wounds in a corporate culture.

As the head HR executive, Harapiak “had to refocus the business and maintain a positive culture during this time of upheaval and uncertainty,” the company said in the nomination. “He had to demonstrate for the organization that it was possible for all functions to do more with less resources and focus on the core business. …

The fact that Cliffs was able to maintain their majority of (its) key contributors during this restructuring speaks volumes” to the quality of Harapiak’s work.

Things are going better these days at Cliffs, which has seen its stock price rise from around $3 per share last July to more than $7 per share last week. Cliffs has narrowed its focus primarily to U.S. iron ore, and in recent months, it secured two important long-term supply agreements: one with existing customer ArcelorMittal, and the other with a new customer, U.S. Steel Canada.

But challenges remain. Cliffs is still “balancing the check book,” according to the nomination, and managing debt to help prepare for future growth. Harapiak during the tough times “chose to lead by example and make it work with a smaller (HR) team,” the nomination stated.

“Once the company is stabilized, (Harapiak) looks forward to getting back to more robust talent and performance management programs as well as investing time and resources to enhance the learning organization,” the company said. — Scott Suttell

KILLIAN

son, Ferro’s global HRMS manager, said Killian was easy to work with, steady under stress and down to earth.

“I think she never forgot where CONTINUED FROM PAGE 15 she came from,” said Morrison, who Killian stayed in New Haven, worked with Killian at both Ferro where she met her husband, Richard and TRW. Killian said that during her time at D’Alexander, for about three years before moving on to other TRW Ferro, she was more interested in deroles. She was working in California veloping other people than developing herself. She especialwhen she learned she ly enjoyed having a role was pregnant with in developing the inditwins, Sarah and Adam. vidual who succeeded But becoming a mothher as vice president of er didn’t change her cahuman resources, Pepe reer plans. Her husband Tortajada. stayed home with the She raised the bar high, twins, working part-time Tortajada said, and he for a few years, which alwants to continue to offer lowed Killian the flexibil- — Lisa Morrison, Ferro’s golbal HRMS that kind of leadership. ity to travel for work.

Outside of work, Killian Killian said she’s al- manager had served on the boards ways believed in offering employees flexibility when they for the Hunger Network of Greater need it, but having twins taught her Cleveland and the Cleveland Leadership Center. But as she prepares for a a lot about family-work balance.

“I don’t think I worked any less move to Lewiston, N.Y., near her hard, but I think that my head was- hometown of Niagara Falls, N.Y., she n’t in work all the time when I wasn’t has left her role with the Leadership working,” she said. “And that was Center and is in the process of doing the same at the Hunger Network. nice.”

Ultimately, Killian doesn’t buy into Killian ended her career with TRW as the company’s vice president of the idea of having it all — people can’t compensation and benefits. Shortly give 100% to their families and to their after Northrop Grumman Corp. ac- careers, she said. The key is to find a quired TRW in 2002, Killian spent a balance and a strong support system short period of time with a privately at work and home.

“I think that it isn’t realistic to held company before leaving to take a job with Ferro as vice president of think that you can have everything,” she said. “And I don’t think most human resources.

Ferro faced CEO changes, acquisi- people need everything. … But I tions, divestitures and the recession think that you can have a lot.” — while Killian worked there. Lisa Morri- Rachel Abbey McCafferty

“I think she never forgot where she came from.”

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Crain’s 2016

Archer Awards

HR Executive of the Year Public Company (finalist)

Nonprofit (winner)

Ana Rodriguez

Denise Smudla

Senior vice president and chief human resources officer PolyOne Corp.

Director of human resources Jennings Centers for Older Adults

PolyOne, the Avon Lake-based provider of specialized polymer materials and services, is a global business, with 7,000 employees spread across manufacturing and distribution sites in North America, Europe, Asia and South America.

In her two years with the company, Ana Rodriguez has worked to make the ambition and structure of the company’s human resources functions match the global reach of its operations.

Rodriguez joined PolyOne from Molex Inc., a maker of electronic, electrical and fiber optic interconnection systems, where she was the senior vice president for global human resources at the company with $3.5 billion in annual sales.

Tapping into that international background now that she’s at PolyOne, Rodriguez “has succeeded in globalizing the HR department,” according to her Archer Awards nomination.

Human resources at PolyOne, which had revenues of $3.4 billion last year, “used to operate as separate regions, with a focus on U.S. business,” the company said in the nomination. Rodriguez reorganized the department to streamline many HR practices around the world.

“Her globalization efforts mean sharing best practices and sharing them globally,” the nomination stated.

“The entire company now is transparent to employees, who now understand what HR is trying to achieve.”

It added, “Her drive for transparency and clarity have pushed Ana to focus on overall culture change and the future of PolyOne.” In her corporate career, Rodriguez has lived abroad for many years, the nominated stated, and the “intercultural communications skills” she gained from the assignments “have helped immensely” at PolyOne. “This recognition of the unity between all international employees has created a unified workplace for all,” according to the nomination.

Another cultural shift Rodriguez is helping to lead is as a member of a team within PolyOne “that is taking the company from a manufacturing mindset to a science and R&D focus, promoting their connection to chemistry and technology,” the nomination stated.

A key component of that push is to boost recruiting of young Ph.D. students globally. In the past year, the number of such students hired rose to 70 from 40, according to the nomination. — Scott Suttell

During the dozen years that Denise Smudla has worked for Jennings Center for Older Adults, the nonprofit’s turnover rate has improved to 20% from the 50-60% turnover it experienced in the late 1990s. Best practices of recruitment, including behavioral interviewing and onboarding techniques, helped get it there.

Smudla has sought to improve the retention rates and workforce development for more than just Jennings, though.

To address the growing gap between the demand for long-term care staff and the diminishing supply, she conceived and directed a regional long-term care workforce development initiative in which 1,100 workers from Jennings and two other not-for-profit aging services organizations participated, said Allison Q. Salopeck, Jennings’ president and CEO. That initiative — Rewarding Education through Advanced Careers in Health Care, or REACH — was launched in 2008 to help ensure that people are appropriately matched to long-term care positions and given the support and resources needed to advance and sustain employment.

A longitudinal study, based on data collected from those three employer sites during three years, found that the REACH project objectives all showed positive changes throughout that time period, sug-

“The job that Denise is doing for Jennings and has done is most of the time not in the spotlight and yet requires so much of Denise’s energy, enthusiasm, (and) unique talents and she keeps giving more every year.”

— Allison Q. Salopeck, Jennings’ president and CEO

gesting that REACH components were likely to improve outcomes such as staff satisfaction and turnover.

Programs at Jennings have improved, according to the nomination. The professionalism and sophistication of human resources-related practices are raised. One example: Smudla revamped the strategic planning and review process to link staff goals to strategic goals and mission, enhancing accountability and sharpening focus on the “right things.”

Uniquely, Smudla also engages the very residents Jennings serves, creating opportunities for them to use their talents in ways that are helpful to others, for example, in running the gift shop.

“The job that Denise is doing for Jennings and has done is most of the time not in the spotlight and yet requires so much of Denise’s energy, enthusiasm, (and) unique talents and she keeps giving more every year,” Salopeck said in the nomination.

Smudla’s work to improve workforce development extends even beyond Jennings and REACH to Cuyahoga County, for which she’s served on workforce development committees. She also has served on the State Association Human Resource Development Committee of Leading Age Ohio, for which she developed and led a leadership training program geared toward supervisors. — Michelle Park Lazette

Public Company (finalist)

Kim Whiteman Executive vice president, chief human resources officer A. Schulman Over the past seven years, A. Schulman — the Fairlawn-based plastic compound and resin maker — has completed 11 acquisitions.

Those moves dramatically altered the makeup of the company, and an efficient human resources department was needed to ensure all those pieces came together correctly.

That’s where Kim Whiteman comes in. Upon his arrival in 2009, he was tasked with integrating those various cultures acquired through the acquisitions while simultaneously improving A. Schulman’s overall HR function. The former was particularly important to “ensure A. Schulman acts as one workforce with a common set of values and principles,” the nomination said.

Bernard Rzepka, A. Schulman’s president and CEO, said Whiteman is a “firm believer that culture is an outcome of behaviors and has continually challenged our leadership team to fully embrace positive behaviors in order to drive our desired culture.”

“What I like about him is that he’s never short on ideas,” said Rzepka, adding that Whiteman can be very straightforward and forceful, but he can easily lighten the mood with a joke.

Among Whiteman’s accomplish-

ments is the Global Center of Excellence, which he established to align all of the HR subject matter experts to work together around the strategic HR functions of total rewards, leadership development, talent sourcing and HR information systems. He also helped launch a diversity and inclusion council.

Whiteman — who often refers to himself as the chief morale officer — has also been a strong voice for the company’s safety efforts around the globe. The company recognizes its facilities with strong safety records by rewarding workers at those outposts with on-shift meals and other rewards. He’s been known to fly to Sweden to serve lunch to appreciative associates or show up on third shift with pizzas, according to the nomination. Why does safety fall under his purview?

“It has to do with people — the behavior of people,” Rzepka said.

The nomination added, “Kim recognizes that safety may not typically be an HR initiative, but he was willing and able to take on the added responsibility of safety given his passion for associates.” — Timothy Magaw

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Crain’s 2016

Archer Awards

Rising Star Finalist

Finalist

Veronica DeFeo

Ashley Qualls

Human resources manager ExactCare Pharmacy

Human resources manager Embrace Pet Insurance

Veronica DeFeo was one of the first human resources hires for ExactCare Pharmacy, and she has not disappointed her superiors.

DeFeo joined Valley View-based ExactCare Pharmacy two years ago and rose quickly as a trusted adviser to the CEO and a leader for all company stakeholders. She played a strong leadership role during periods of rapid growth at the company, as well as during the difficult downsizing of 40 employees over three months.

DeFeo took a leadership role in launching important company initiatives, including the quarterly newsletter, the company’s first all-hands town hall session and an employee suggestion box.

She is lauded for not only championing company values, but for helping to define and set those values for the young and fast-growing company.

“Her knowledge and expertise have guided the company through stages of exceptionally rapid growth, enabling us to quickly increase and maintain staffing levels to support the business,” said Dale Wollschleger, president and CEO of ExactCare. “Concurrently, she has built the human resources function at ExactCare from the ground up — establishing a solid infrastructure for HR to support the continually evolving needs of the company.”

Wollschleger added that DeFeo is truly invested in cultivating a culture that makes Ex-

actCare a top place to work. She is credited with strengthening the company through strategic alignment, organizational development, total rewards, performance management and talent acquisition.

In the community, DeFeo works to create events that positively impact Greater Cleveland. She organized a company fundraiser for the Kidney Foundation of Ohio, runs food drives and participates in the Corporate Challenge. She also led the drive behind the company’s participation in ADP’s Beyond the Startup video contest, which brought ExactCare a $100,000 national grand prize advertising campaign.

She’s also working toward a master’s degree at Cleveland State University.

ExactCare chief financial officer Marty Butler said DeFeo helps the company navigate the development of a strong human resources function.

“She has done that carefully, thoughtfully and strategically — ensuring we are building a function that not only supports the needs of the business, but also one that considers employee development and company culture,” Butler said. “She brings that perspective to every meeting and every discussion, helping ExactCare strike that important balance to create an engaged and successful workforce.” — Kimberly Bonvissuto

Open work spaces, places for employees to gather during breaks and pets — lots of pets — create a culture that is important to Embrace Pet Insurance in Cleveland. Ashley Qualls is credited with reinforcing that culture in a fun, innovative and flexible environment.

“This is a nontraditional workplace, and Ashley has done her best to keep it that way,” said Michele Ridella, senior management consultant for Chagrin Falls-based PRADCO: Talent Assessment & Management Services, a vendor with Embrace. “With innovative benefit programs, she has elevated the level of service to employees while reducing expenses.”

In her almost two years with the company, Qualls helped Embrace earn recognition as a great place to work. Her focus on the company’s core values has earned her the title of “culture guru.”

Bringing in the right people was a priority for Qualls, who revised the recruitment process to incorporate key aspects of the Embrace culture. She updated the onboarding process as well. Her efforts led to 31 new hires in a year, which is about one-third of the workforce. She also devotes time to understanding why employees leave the company, helping the organization stay ahead of potential concerns and unwanted turnover.

“These changes were not easy for a highly

self-directed leadership team to grasp initially, but through Ashley’s focus on bottom-line impact, she has been able to win the trust and confidence of her colleagues at all levels,” Ridella said in the nomination.

Qualls changed the compensation structure to create a competitive package for the sales team to drive performance and create revenue. She used an employee survey to maintain positive aspects in the workplace and to identify areas that could be improved. She also changed the performance review process by adopting an upward review where employees provide feedback on their managers.

Qualls takes the lead in supporting community service efforts at the company. She converted an unused conference room into a home for local cats being prepared for adoption, offering employees the opportunity to play with the cats on breaks. She also coordinates charity fundraising walks and food drives.

“Giving back to the community is part of the charm and appeal of Embrace,” Ridella said. “It is also a critical element of employee engagement, and Ashley continues to foster this important core value by actively promoting employee interests and advocating for the well-being of animals.” — Kimberly Bonvissuto

Professional Development Award

CONGRATULATIONS

TONY PRINZO

Presented by Corporate College, a division of Cuyahoga Community College

ON YOUR NOMINATION FOR THE CRAINS 2O16 ARCHER AWARDS

Winner

Courtney DiBello Human resources analyst ValMark Securities

An insurance Career Built Around You

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Courtney DiBello didn’t set out to work in human resources. She wasn’t really sure what she wanted to do, but a job early in her career as a recruiter for Vail Resorts set her on a path to the field.

“It was my first experience in truly helping someone; placing them in a job, which then had an immediate impact on their life. It was a wonderful feeling,” DiBello said of her experience at Vail Resorts.

“Slowly, but surely, through the years and working in different environments, I knew that HR was the right place for me.”

Today she is a human resources analyst for ValMark Securities in Akron. DiBello is responsible for human resource information system (HRIS) implementation, testing, maintenance, development and security, among other duties.

One of the biggest projects with which she’s been involved was leading a team implementing a new HRIS system. DiBello worked with many different areas of the compa-

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Crain’s 2016

Archer Awards

Rising Star Finalist

Finalist

George Sample

Katie Talarico

Human resource manager, talent management Northeast Ohio Regional Sewer District

Head, Talent Practices Group KeyBank

George Sample is credited with changing the pulse of the Northeast Ohio Regional Sewer District for years to come thanks to his ability to see the big picture and to implement and assist in the development of operations that address current and future workforce challenges.

Sample is recognized as a “can do” individual who wants to take a deeper dive into his work.

“He’s a consummate networker,” said Constance T. Haqq, the sewer district’s director of administration and external affairs. “He knows how to really work a room. He takes an interest in people, stops and asks people how they are, and really feels getting to know people is important to the work he does in talent acquisition.”

Sample is frequently sought out by the executive team to provide coaching and counsel to the senior staff, according to the nomination.

He helped the CEO increase collaboration among senior staff, he assisted the chief operating officer move into her position and quickly secure buy-in from the broader organization, and he coaches the deputy direct of operations and maintenance on communications and influence.

Sample created a management academy for senior staff based on managerial compe-

tencies. He launched a computer competency program tailored for plant-based employees and significantly increased the amount of coaching and career planning services offered to the organization.

He provided input on the strategic plan, which led to the launch of a new workforce planning approach for the organization. The approach focuses on obtaining an in-depth understanding of the goals for each part of the business over the next three to five years, and the skill sets needed to accomplish these goals.

Sample’s team is helping evaluate how the operations and maintenance division, which is building more than $2.5 billion in assets between now and 2025, should be structured to have the staff needed as new assets come online, the nomination said.

Sample is involved with several area nonprofits, including United Way of Greater Cleveland, United Black Fund of Greater Cleveland, Commission on Economic Inclusion and the Cleveland Society for Human Resources.

He also is active at his alma mater, John Carroll University, where he was named to the university’s athletic hall of fame as well as a recipient of its Young Alumni Award. — Kimberly Bonvissuto

Katie Talarico is lauded for not only getting things done, but getting things done the right way.

Talarico joined KeyBank in 2014 and leads the company’s human resources analyst and intern program. Her precision and insight is reflected in the company’s talent discussions within the department.

“She’s incredibly practical and pragmatic, almost beyond her years of experience,” said Brian Fishel, KeyBank’s senior vice president and chief talent officer. “As she builds things out, she is able to have a point of view, but she can marry her expert point of view with what the clients need or are asking for. That’s unique.”

Talarico also helps lead the bank’s Human Resources Engagement Task Force. She is described in the nomination as tenacious, resilient, resourceful and results-driven. Her capacity for work and overall work ethic is now held up as a model that other rising stars are beginning to emulate.

“She’s solution oriented and takes accountability. She is always finding the answers to problems,” Fishel said. “When things need to be pushed or managed hard, she’s not afraid to do that. Those are great qualities not everybody possesses. She’s all around a great teammate because she delivers every time.”

Talarico established herself as a process and systems expert and was entrusted with the company’s performance management process on an enterprise-wide basis.

She was instrumental in the company’s conversion from a paper and pencil approach to an automated system using Workday software.

She built a web-enabled career developmental portal for employees to assess their strengths and career needs. The program offered significant tools to enable employees to build career-development paths and plans.

And she developed and implemented the enterprise tool in fewer than six months. To date, nearly 2,000 active employees use the system.

In the community, Talarico is a strategic planning team member for Leadership For a New Day, a Northeast Ohio personal and professional development program for emerging leaders.

She also is an active volunteer with the Greater Cleveland Food Bank, St. Christopher Parish and College Now Greater Cleveland.

Talarico is a member of the Cleveland Society for Human Resource Management, Association for Talent Development and Human Capital Institute. — Kimberly Bonvissuto

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“Courtney has a unique ability to balance employee needs with company goals as she works with managers and employees to move from conflict to collaboration.”

— Mark White, ValMark Securities senior vice president ny to implement a robust and technology-savvy system that has the ability to grow with the company and help it meet its business goals.

With the new software in place, she is able to focus on training and development, succession planning, talent acquisition, retention and per-

formance management.

“All of the hard work that went into this implementation was for the sole purpose of making the lives of our managers and employees easier,” DiBello said. “I was able to work with many others in different areas of our business, and it was truly one of the greatest learning experiences I have had to date.”

Mark White, ValMark Securities senior vice president, said DiBello was instrumental in the assessment, selection and implementation of the new human capital management system at the company.

“Courtney has a genuine desire to help people and a unique ability to build strong relationships at all levels of the organization,” White said.

“Courtney has a unique ability to balance employee needs with company goals as she works with managers and employees to move from conflict to collaboration.”

Her personal goal is to obtain her professional in human resources certification in the next year or two, and then work on further designations. She attends numerous human resources training seminars to learn, network and build relationships within the human resources community. — Kimberly Bonvissuto

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Crain’s 2016

Archer Awards HR Team Winner

Medical Mutual of Ohio Medical Mutual of Ohio’s human resources division serves an employee base of 2,400, which includes a large number of long-tenured employees. However, the team has been able to attract a substantial number of younger employees and assist company executives in connecting with the entire workforce.

The HR division is led by Tom Dewey, vice president, and includes Nancy Arthur, Susan Edwards, Patty Hartmann, Susan Oros and Lydia Shinn.

Raymond Mueller, executive vice president and chief financial officer, recruited Dewey in 2012 and said it was apparent early that he had a real affinity for personnel issues.

“Tom has done a wonderful job in hiring a great staff who brings a wealth of experience to bear in our HR department,” Mueller said. “Tom and the team have a really nice focus on what’s good for the company and good for our employees.”

One of the major challenges facing the health insurance industry is an aging workforce and the loss of talent through retirements and attrition. Promoting the industry as an attractive and rewarding field to college graduates and young professionals can be a daunting task, but Medical Mutual’s HR division implemented a number of programs to attract top young talent and stop the so-called “brain drain.”

The team helped Medical Mutual with strategic alignment, organizational development, employee development and diversity.

The team’s College Development Program hires college interns and builds their skills and knowledge in the industry to prepare them to be future candidates for the Career Development Program. That program retains recent college graduates to prepare them for professional-level positions within the company through professional development, networking, team building and department rotations.

“(Tom Dewey) challenges his team to think differently about our work, not just accept the easy or obvious answer.

He is a great leader who understands how to motivate and encourage others to be our best.”

— Susan Edwards, Medical Mutual’s human resources services director Susan Edwards, Medical Mutual’s human resources services director, said Dewey brings a mix of business knowledge, energy and drive to his role.

“He challenges his team to think differently about our work, not just accept the easy or obvious answer,” Edwards said. “He gets to know employees at every level of the organization and takes time to meet with them. He is a great leader who understands how to motivate and encourage others to be our best.”

In the community, Medical Mutual’s HR division helped organize a mentoring initiative, True2You, which sought out volunteers from Cleveland companies to mentor eighth-grade students in the Cleveland Metropolitan School District.

The team also participated in Cleveland Bridge Builders and co-founded the Cleveland Financial Wellness Initiative. — Kimberly Bonvissuto

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Talent Management Winner

Lisa Villao Director of talent development American Greetings Lisa Villao is credited with changing the way American Greetings develops and manages talent.

“Thanks to Lisa, talent development has become less about the paperwork and more about action oriented plans that yield meaningful results,” the nomination said.

“Leaders at American Greetings are focused on providing associates with meaningful experiences and ongoing development feedback in line with the short- and longerterm needs of the company.”

Villao joined the company in 2008.

She improved the succession planning process and led the charge to move from large group discussions to smaller discussions with company leadership. According to the nomination, these changes led to more candid and action-oriented discussions, development and a deeper management bench.

Villao is leading a multi-year talent management philosophy

process that includes identifying leadership roadmaps, crucial experiences and leadership expectations for associates at American Greetings. The group also is tackling issues such as identifying ways to grow careers in a flat organization and new ways to upgrade talent management efforts.

In addition to her role as director of talent development, Villao also is a human resources business partner for the greeting card business unit, where she led the creation of job profiles. The collaborative effort creates well-rounded professionals prepared for a variety of experiences.

“Lisa is a strategic and highly effective HR partner, among the best I’ve seen in my career,” said Steven Laserson, the company’s vice president of greeting cards. “While Lisa’s focus area is talent development, she thinks and works very broadly, which is what makes her so effective.”

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SEE VILLAO, PAGE 24

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20160801-NEWS--24-NAT-CCI-CL_--

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z AUGUST 1 - 7, 2016 z CRAIN’S CLEVELAND BUSINESS

Crain’s 2016

Archer Awards

Leadership in Diversity Team Winner

KeyBank Talent Acquisition Leadership Team

The Northeast Ohio Regional Sewer District wishes to congratulate Crain’s Cleveland Business Archer Award

In 2015, the KeyBank Talent Acquisition Leadership Team launched a diversity recruiting strategy that substantially increased its percentage of minority and female hires across the organization.

The team is led by Brian Fishel, the bank’s senior vice president and chief talent officer, and includes Luci Workman, Dawn Roberts, Mark Novotny and Carole Torres.

KeyBank drives a culture of diversity through its core values — teamwork, respect, accountability, integrity and leadership, according to the nomination. Specifically, the team’s strategy included creating an online diversity recruiting toolkit that provides recommendations on how to have conversations with different stakeholders, includes resources to help source diverse talent and provides best practices on how to engage protected groups. The team also hosts quarterly diversity and inclusion trainings to generate awareness.

The diversity recruiting strategy identified areas of improvement, and the results have paid off. Between January 2013 and January 2016, female hires increased to 60%, and minority hires increased to 30%.

Beth Mooney, chairman and CEO at KeyCorp, calls the Talent Acquisition Leadership Team an “incredibly self-directing team.”

“They interact and collaborate among themselves in ways I wouldn’t have said would have been the case three years ago,” Mooney said.

“The teams represent a much more common, consistent approach and set of messages to what’s important when we hire people into our company. Our recruiters are frontline employees, interacting with internal and external employees. They represent the company and the company’s culture and identify in a consis-

“The teams represent a much more common, consistent approach and set of messages to what’s important when we hire people into our company. They represent the company and the company’s culture and identify in a consistent and common way that is powerful.”

VILLAO

“Lisa is able to connect the dots across all HR disciplines, understanding how recruiting, training, development, compensation and talent development strategies must interact to accomplish business objectives.”

— Beth Mooney, chairman and CEO at KeyCorp tent and common way that is powerful.”

KeyBank received several recognitions for its diversity recruiting strategy, including the GI Jobs Military Friendly Employer designation in November 2015 and landed on Diversity Inc.’s Top 50 Companies for Diversity list in April of this year.

“They netted so much better outcomes, in terms of success of our hiring, the speed at which we hire, the quality of people we hire, the diversity and mix of who we hire,” Mooney said. — Kimberly Bonvissuto

finalists John Corn and George Sample. It is through their efforts—and those of 750 employees throughout Northeast Ohio—that the Sewer District is keeping our Great Lake great.

CONTINUED FROM PAGE 23

neorsd.org/careers

In 2015, Villao partnered with senior level leaders to establish the Broad Talent Initiative, which establishes a talent development vision and strategies for how talent is managed and developed for sales and business unit related roles, according to the nomination. It has since evolved into a company-wide initiative. In addition, she identified the need to build an internal coaching capability to align with internal development efforts.

“Lisa is able to connect the dots across all HR disciplines, understanding how recruiting, training, development, compensation and talent development strategies must interact to accomplish business objectives,” Laserson said. “She built positive and trusting relationships with my staff that have helped her become an integral member of my leadership team.

Lisa is a role model leader for HR professionals.”

Outside of her role at American Greetings, Villao actively supports Junior Achievement and partici-

— Steven Laserson, vice president of greeting cards pated in past talent management forums in Northeast Ohio. She can also be spotted volunteering as a Care Bear in support of the company’s mission of creating happiness, laughter and love. — Kimberly Bonvissuto

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Business of Life

Andrea Esselstein (center) and her fiancé, John Pasley (right), have attended numerous Supper Clubs. At left is Lil Hanrahan. (McKinley Wiley for Crain’s)

Cooking up a cool gathering spot

By LYDIA COUTRE What began as a monthly cooking class to help Ruth Kostadinov and Doug Zimmer launch their new catering company in the midst of the recession in 2009 has become a popular, weekly gathering for people to cook and dine together.

Every Friday evening, Gatherings Kitchen in Lakewood fills with 16 people, who break into teams and each focus on a different part of the meal. After about two hours of cooking, the group gathers around a table to share their meal.

The first time Andrea Esselstein

came to the Supper Club felt a lot like Thanksgiving, she said.

“You cook together for two hours and then you all sit together, so where else do you end up going someplace and sitting at a 16-top, big table?” said Esselstein, as she prepared to make nachos during her fourth Supper Club.

July’s menu was American Gastropub: crab nachos with beer cheese sauce; mini corn dogs with sun dried tomato mostarda; potato crusted walleye with frisee and hops bearnaise vinaigrette; carrot soup with kale garlic chips; Kentucky bourbon stout braised short ribs with corn pud-

ding and Swiss chard; and ice cream sandwiches with chocolate cookies and cherry wheat ice cream.

“We change the theme monthly, which is fun for us,” Kostadinov said.

“It makes it a little bit more interesting, because with catering or any kind of food service business, you do the same kind of food every day. So for us we get to explore different cuisines and techniques.”

Esselstein and her fiancé, John Pasley, have come for the British Invasion, Meatless May and Oktoberfest menus. At the end of the evening, everyone leaves with a booklet of recipes for that theme,

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Ruth Kostadinov addresses the class.

After the class is over, the group shares the meal they prepared.

which have come in handy for the couple.

“We are just learning to cook, and we’re newly engaged,” Esselstein said. “It’s good hands-on help, and then you also just have fun.”

At the next table, Mike Tilenni, examined the recipe he and his girlfriend Liz Hansen would be responsible for: dessert, chosen for Tilenni’s love of ice cream and Hansen’s affinity for baking.

It was Tilenni’s first time at Supper Club, having heard about it from his sister and Hansen.

Every week, the group is a mix of newcomers and repeats — some of whom even come back for the same menu, Kostadinov said.

Katrina and her husband, Rick Homer, first came about five years ago.

She wasn’t sure what to expect, or as Rick puts it: “I think she was just hoping not to burn the place down.”

Katrina agreed, but said she’s

learned a lot in her visits.

“They make it so approachable for all skill levels speaking from the absolute bottom skill level,” she said.

Gatherings Kitchen also offers a private supper club if a group of 16 is interested, which the Homers are trying to get together.

At first, Kostadinov would join the table, but as it grew in popularity, she’s had to give up her seat. The $75 per person slots are almost always sold out far in advance.

The newly minted chefs are people of all ages from all walks of life, but by the end of the night, everyone comes together and it’s hard to believe they were strangers just hours before, she said.

“For one thing, it’s food, and food brings people together, right? Something about it,” Kostadinov said.

“Just actually sharing a meal, eating a meal brings people together, but cooking it is just another level.”

20160801-NEWS--40-NAT-CCI-CL_--

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BUSINESS OF LIFE

Source Lunch When Bruce Hennes hired Stephanie York to open an Akron office for his crisis communications firm, he told her she was “road-tested.”

York worked for 23 years for the city of Akron, several as the director of communications under former mayor Don Plusquellic. During his 28 years in office, the outspoken mayor had his fair share of public tussles with council members, city departments and the media. York was there through much of it, but says she has a lot respect for Plusquellic and, as a then lifelong employee of the city, didn’t realize the pressure of her job until she walked away. When she moved to Akron General in 2015, things were calmer, but York said she realized she works and thinks best when working under pressure. So when she met Hennes, an acquaintance and founder of Cleveland-based Hennes Communications, for lunch one day and half-jokingly asked, “When are you going to open an Akron office?” she was delighted when she saw a spark in his eye. — Sue Walton

Former mayor Don Plusquellic had, at times, a contentious relationship with the media.

What was that like as the city’s director of communications?

Did you find it difficult?

Amid a few public skirmishes, I always tried to maintain a great relationship with the media. I always answered their calls, texts and emails. I always respected their deadlines, and unless restricted by law or policy, I did everything possible to get them what they needed. When things got argumentative, I believe the media knew I was doing my job and protecting my clients, the city and the mayor, and delivering messages in the manner the clients requested. Even when the mayor may not have liked what a reporter wrote or said, the city needed to respect that reporter’s job. As we all know too well, there are many times the city needed a reporter to report good news, so I always tried to be cordial and respectful.

Crisis communications is a high-pressure field. What about it appeals to you?

One thing I’ve learned about myself is that I work best, and am most productive, when I am challenged. In the field of crisis management, every day is different, the work is exciting, and the outcome is extremely important to our clients. I thrive in an environment like this.

What are the plans for the

Hennes Akron office? When and where will it open? How many on the staff?

We’re open now! Our office is on the fourth floor of the AES Building in downtown Akron, 388 S. Main St., Suite 400. Although I’ll be the only senior consultant based in Akron, all of Hennes Communications’ Cleveland senior-level resources are available to me. I’ll be working with my new colleagues at Hennes on a daily basis, either in person or remotely.

What’s the most important aspect of crisis management that companies need to be aware of?

First, that the skill set that got someone into the CEO chair isn’t necessarily the same skill set needed to manage a crisis, and that the middle of a crisis is not the ideal time to start figuring out how you should react, who you should call and what you should say. Just as organizations commonly have emergency-operation plans, they need to have crisis communications plans that outline, in detail, how to communicate when people are demanding answers. And within those crisis communications plans, Hennes has a mantra: Tell the truth. Tell it all. Tell it first.

You have a law degree and also served as Akron’s assistant law director. How does your background in law help inform your work as a communications specialist?

Stephanie York

My law training and extensive experience handling thousands of complex legal issues and cases have helped me develop the skills necessary to quickly and strategically evaluate a developing situation, analyze the consequences of action or inaction, and construct critical messages that speak to the heart of the matter, lending credibility to the person delivering the message. Having dealt with highpressure legal and political matters and the media, I’ve learned what works, and what doesn’t, in the court of public opinion.

How has the evolution of technology and social media changed the job of a communications specialist?

As we all know, communicating a message to hundreds of thousands of people can be done anywhere, by anyone, at any time. … If a situation is developing, it’s developing in real time in front of the world on social media. Every private conversation or occurrence is a matter that can be streamed immediately to the world through the use of a simple smartphone.

Likewise, a communications specialist’s tool box has expanded to include social media, and we no longer rely solely on traditionally slower media to get our clients’ messages out. We are hyperaware of the consequences (good and bad) of social media postings and can help alter the trajectory of a story by advising on if and/or how to post, respond to, or share messages.

CONSULTANT

FOUR THINGS: GOOD READ York loves to read, especially before bed. Some of her recent favorites include “Undress Me in the Temple of Heaven” and “All the Light We Cannot See.”

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The vibe Crave has a modern, elegant look, with low lighting and billowy curtains. Plenty of art adds to the appeal of the interior. But the real star is the menu, which offers creative and bold dishes at reasonable prices.

The bill $27.49 + tip

20160801-NEWS--41-NAT-CCI-CL_--

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20160801-NEWS--42-NAT-CCI-CL_--

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RATINGS CONTINUED FROM PAGE 1

After all, choosing where to get surgery is not the same as weighing which movie to see. Many agree the health care industry and its reviewers haven’t found that sweet spot between oversimplifying the data and overwhelming the patient.

A patient looking up a hospital’s safety rating could see an A score on one website and a C grade on another, for measurements over the exact same time period, said Dr. William Annable, University Hospitals’ chief quality officer and director of the Quality Insti-

tute. It’s all a matter of methodology and how that particular entity defines broad terms like quality.

“I think we’ve done a very good job of confusing them and confusing ourselves,” he said.

Digging deep Many hospitals do monitor the scores, because in the end, they can impact their reputation — and doctors want to know where they can improve.

“We tear them apart because we’re a bunch of anally compulsive, driven, type-A, overachieving perfectionists who absolutely hate making mistakes in the care of other human beings,” said Dr. Erik Steele,

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chief medical officer and senior vice president for Summa Health. Regardless of whether he likes or agrees with the results, he said he looks at it.

He digs into it to find out if there’s something he needs to improve.

The array of rankers and raters publishing scores is indicative in and of itself of people trying to figure out what is meaningful to consumers.

“That population of people that really, truly, deeply understand every measure that goes into all these — that’s a pretty exclusive group,” said Dr. Aaron Hamilton, Cleveland Clinic’s medical director for patient safety and clinical risk.

Many patients don’t want to know the nuanced technical measures, such as hospital-acquired infections or readmission rates, said Ben Harder, chief of health analysis at U.S. News. Rather they want to know quite simply: Is this a good hospital?

For those who do want to dig deeper, they can look at methodology and see underlying quality indicators, Harder said. And while these ratings might not be the driving factor in patients’ decisions, that’s not to say people aren’t looking. Harder said about 3 million people visit U.S. News’ website every month.

By the time hospitals report their measures to CMS, raters extract and parse those data, then publish the analyzed results, it’s often a couple of years old and no longer reflective of where a hospital currently stands.

Most important is year-over-year improvement, so that lag doesn’t accurately inform patients, according to Cynthia Deyling, Cleveland Clinic’s chief quality officer.

Largely, the scores only measure CMS data because there aren’t reliable statistics for the overall population.

“Now there are good scientific ways to analyze the data that produce reliable results even in the absence of some of that very specific information, like say the size of an

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aneurysm or what stage of cancer a patient had,” Harder said. “But nevertheless, we don’t necessarily have all the information and datasets that we would like.”

Many measures don’t consider socioeconomic factors or differentiate between the types of patients that an academic medical center would receive versus a community hospital.

Then there’s what simply cannot be measured. So much of health care comes down to trust and relationships, Hamilton said. Ultimately, if a patient sits down with a physician and they know each other and the patient feels listened to, that’s where they’re going to want to be.

“Whether or not they’re an A or a B or a 3-star or a 4-star hospital, I think that’s really what matters to people,” he said.

Take ‘an active role’ Though the rating systems available today may be imperfect, hospital leaders encourage patients to do that research. When looking, keeping a few things in mind can help ensure patients get an accurate picture of a health care facility. For one, no one rating can stand alone to give an accurate picture, Annable said.

“You can go to any hospital in the country and find a banner hanging from it that tells you that it has great quality, and there are very few hanging that really mean something very, very critical,” he said.

Once choosing a hospital, Steele said, patients and their families should create and carry a checklist of sorts to enhance their chances of a good outcome. Patients should ask their personal physician what they recommend and check with the provider performing a procedure how often they’ve done that, he said.

Monitor that providers are washing hands, double checking a patient’s identity and verifying medications.

“At the end of the day, the consequences primarily fall to patients,”

Steele said. “And so taking an active role and seeing yourself as part of a team and helping your patient, your health care team be safer to me makes all kinds of sense.”

The ratings are for the benefit of the consumer. And with that in mind, some local hospitals, such as MetroHealth and the Clinic, have started publicly posting patient ratings and reviews collected by a thirdparty surveyor.

For example, Dr. Sara Laskey — MetroHealth’s chief experience officer — said that way she can know that the posted information is from patients who actually visited the health system, which is not guaranteed with reviews on Yelp, HealthGrades or ZocDoc. Steele said Summa decided to start putting their quality data online in a substantial way for the first time in order to give patients more information.

“And we know that ours won’t be perfect, either,” he said. “But I think we all have an obligation to try and to stop whining that it’s not perfect and stop saying we’re not going to share anything because it’s not perfect.”

All agree transparency is important — and using more timely measures, comprehensive data that expands beyond Medicare and adding in cost as a factor would be useful.

The next step, Hamilton said, will be adding functional metrics into the mix — not just telling patients their statistical infection or complication risk, but rather sharing with them what often truly matters: How long until I can walk again? Go back to work? Such patient-centered, patient-reported outcomes are hopefully coming.

“What really matters is what the patient tells us matters,” Hamilton said. “We’re starting to learn it. It’s not the most easy thing to extract out of a bunch of data from the electronic health record, but that is not stopping us from looking in that area.”

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The List COMPANY/TICKER SYMBOL THIS HEADQUARTERS YEAR PHONE/WEBSITE

LARGEST OHIO PUBLIC COMPANIES Ranked by market value

MARKET CAP 5-31-2016 BUSINESS (MILLIONS) CATEGORY

TOP EXECUTIVE TITLE

COMPANY/TICKER SYMBOL THIS HEADQUARTERS YEAR PHONE/WEBSITE

MARKET CAP 5-31-2016 BUSINESS (MILLIONS) CATEGORY

TOP EXECUTIVE TITLE

Manufacturer

David S. Taylor chairman, president, CEO

29

Forest City Realty Trust Inc./FCE-A 50 Public Square, Suite 1100, Cleveland 44113 (216) 621-6060/www.forestcity.net

$5,929.5

Real estate

David J. LaRue president, CEO

$34,107.4

Retail

W. Rodney McMullen chairman, CEO

30

Owens Corning/OC One Owens Corning Parkway, Toledo 43659 (419) 248-8000/www.owenscorning.com

$5,898.6

Manufacturer

Michael H. Thaman chairman, CEO

American Electric Power Co./AEP 1 Riverside Plaza, Columbus 43215-2372 (614) 716-1000/www.aep.com

$31,802.7

Utility

Nicholas K. Akins chairman, president, CEO

31

TFS Financial Corp./TFSL 7007 Broadway Ave., Cleveland 44105 (216) 441-6000/www.thirdfederal.com

$5,193.5

Financial services

Marc A. Stefanski chairman, CEO

4

Eaton/ETN 1000 Eaton Blvd., Cleveland 44122 (440) 523-5000/www.eaton.com

$28,226.5

Manufacturer

Craig Arnold chairman, CEO

32

Nordson Corp./NDSN 28601 Clemens Road, Westlake 44145 (440) 892-1580/www.nordson.com

$4,962.3

Manufacturer

Michael F. Hilton president, CEO

5

Sherwin-Williams Co./SHW 101 W. Prospect Ave., Cleveland 44115 (216) 566-2000/www.sherwin.com

$26,924.4

Manufacturer

Christopher M. Connor executive chairman

33

Scotts Miracle-Gro Co./SMG 14111 Scottslawn Road, Marysville 43041 (937) 644-0011/www.scottsmiraclegro.com

$4,255.2

Manufacturer

Jim Hagedorn chairman, CEO

6

Cardinal Health Inc./CAH 7000 Cardinal Place, Dublin 43017 (614) 757-5000/www.cardinalhealth.com

$25,723.5

Health care

George S. Barrett chairman, CEO

34

Lincoln Electric Holdings Inc./LECO 22801 St. Clair Ave., Cleveland 44117 (216) 481-8100/www.lincolnelectric.com

$4,141.0

Manufacturer

Christopher L. Mapes chairman, president, CEO

7

Welltower Inc. (1)/HCN 4500 Dorr St., Toledo 43615-4040 (419) 247-2800/www.hcreit.com

$24,600.5

Real estate investment trust

Thomas J. DeRosa CEO

35

FirstMerit Corp./FMER III Cascade Plaza, Akron 44308 (330) 996-6300/www.firstmerit.com

$3,776.0

Financial services

Paul G. Greig chairman, president, CEO

8

L. Brands Inc./LB Three Limited Parkway, Columbus 43232 (614) 415-7000/www.lb.com

$19,674.1

Retail

Leslie H. Wexner chairman, CEO

36

Teradata Corp./TDC 10000 Innovation Drive, Dayton 45342 (866) 548-8348/www.teradata.com

$3,684.2

Technology

Victor Lund president, CEO

$19,413.9

Insurance

Tricia Griffith president, CEO

37

Cedar Fair LP/FUN One Cedar Point Drive, Sandusky 44870-5259 (419) 627-2233/www.cedarfair.com

$3,365.8

9

Progressive Group of Insurance Companies/PGR 6300 Wilson Mills Road, Mayfield Village 44143 (440) 461-5000/www.progressive.com

Amusement parks

Matthew A. Ouimet president, CEO

10

Energy

Gary R. Heminger chairman, president, CEO

Lancaster Colony Corp./LANC 37 W. Broad St., Columbus 43215 (614) 224-7141/www.lancastercolony.com

Manufacturer

$18,454.1

38

$3,322.9

Marathon Petroleum Corp./MPC 539 S. Main St., Findlay 45840 (419) 422-2121/www.marathonpetroleum.com

John B. Gerlach Jr. chairman, president, CEO

11

Manufacturer

Thomas L. Williams chairman, CEO

PolyOne Corp./POL 33587 Walker Road, Avon Lake 44012 (440) 930-1000/www.polyone.com

Manufacturer

$15,466.8

39

$3,149.1

Parker Hannifin Corp./PH 6035 Parkland Blvd., Cleveland 44124 (216) 896-3000/www.parker.com

Robert M. Patterson chairman, president, CEO

Mark T. Smucker president, CEO

Andres Lopez CEO

12

Manufacturer

Owens-Illinois Inc./OI One Michael Owens Way, Perrysburg 43551 (567) 336-5000/www.o-i.com

Manufacturer

$15,456.7

40

$3,060.3

The J.M. Smucker Co./SJM One Strawberry Lane, Orrville 44667 (330) 682-3000/jmsmucker.com

Greg D. Carmichael president, CEO

Todd A. Penegor president, CEO

13

Financial services

Wendy's Co./WEN One Dave Thomas Blvd., Dublin 43017 (614) 764-3100/www.aboutwendys.com

Restaurants

$14,486.9

41

$2,740.0

Fifth Third Bancorp/FITB 38 Fountain Square Plaza, Cincinnati 45263 (800) 972-3030/www.53.com

Manufacturer

W. Nicholas Howley chairman, CEO

Convergys Corp./CVG 201 E. Fourth St., Cincinnati 45202 (513) 723-7000/www.convergys.com

Customer management solutions

Andrea J. Ayers president, CEO

14

$13,962.2

42

$2,719.8

TransDigm Group Inc./TDG 1301 E. Ninth St., Suite 3000, Cleveland 44114 (216) 706-2939/www.transdigm.com

Charles E. Jones president, CEO

Richard G. Kyle president, CEO

15

Utility

The Timken Co./TKR 4500 Mount Pleasant St. N.W., North Canton 44720 (234) 262-3000/www.timken.com

Manufacturer

$13,934.8

43

$2,634.2

FirstEnergy Corp./FE 76 S. Main St., Akron 44308 (800) 736-3402/www.firstenergycorp.com

$11,478.8

Energy

Gary R. Heminger chairman, CEO

44

Big Lots Inc./BIG 300 Phillipi Road, Columbus 43228 (614) 278-6800/www.biglots.com

$2,598.4

Retail

16

MPLX LP/MPLX 200 E. Hardin St., Findlay 45840 (419) 672-6500/www.mplx.com

David J. Campisi president, CEO

Cincinnati Financial Corp./CINF 6200 S. Gilmore Road, Fairfield 45014-5141 (513) 870-2000/www.cinfin.com

$11,356.8

Insurance

Steven J. Johnston president, CEO

45

Worthington Industries/WOR 200 Old Wilson Bridge Road, Columbus 43085 (614) 438-3210/www.worthingtonindustries.com

$2,333.1

Manufacturer

17

John P. McConnell chairman, CEO

KeyCorp/KEY 127 Public Square, Cleveland 44114 (216) 689-6300/www.key.com

$10,799.2

Financial services

Beth E. Mooney chairman, CEO

46

Chemed Corp./CHE 255 E. Fifth St., Cincinnati 45202-4726 (513) 762-6900/www.chemed.com

$2,159.2

18

Health care; repair and maintenance

Kevin J. McNamara president, CEO

$10,242.0

Retail

Terry J. Lundgren chairman, CEO

47

Greif Inc./GEF 425 Winter Road, Delaware 43015 (740) 549-6000/www.greif.com

$1,952.3

Manufacturer

19

Macy's Inc./M 7 W. Seventh St., Cincinnati 45202 (513) 579-7000/www.macysinc.com

Peter G. Watson president, CEO

$10,143.9

Uniforms; Business services

Scott D. Farmer CEO

48

WP Glimcher Inc./WPG 180 E. Broad St., Columbus 43215 (614) 621-9000/www.wpglimcher.com

$1,893.9

20

Cintas Corp./CTAS 6800 Cintas Blvd., Cincinnati 45262-5737 (513) 459-1200/www.cintas-corp.com

Real estate investment trust

Louis G. Conforti interim CEO

Mettler-Toledo International Inc./MTD 1900 Polaris Parkway, Columbus 43240 (614) 438-4511/www.mt.com

$10,043.6

Manufacturer

Olivier A. Filliol president, CEO

49

Dana Holding Corp./DAN 3939 Technology Drive, Maumee 43537 (419) 887-3000/www.dana.com

$1,777.6

Manufacturer

21

James Kamsickas president, CEO

$8,406.2

Financial services

Charles Drucker president, CEO

50

Cooper Tire & Rubber Co./CTB 701 Lima Ave., Findlay 45840 (419) 423-1321/www.coopertire.com

$1,772.6

Manufacturer

22

Vantiv Inc./VNTV 8500 Governors Hill Drive, Symmes Township 45249 (513) 900-5250/www.vantiv.com

Roy Armes chairman, president, CEO

Distributor

Huntington Bancshares Inc./HBAN 41 S. High St., Columbus 43287 (614) 480-8300/www.huntington.com

$8,348.2

Applied Industrial Technologies Inc./AIT 1 Applied Plaza , Cleveland 44115 (216) 426-4000/www.applied.com

$1,764.0

Neil A. Schrimsher president, CEO

23

51

Retail

Roger L. Rawlins CEO

Goodyear Tire & Rubber Co./GT 200 Innovation Way, Akron 44316 (330) 796-2121/www.goodyear.com

$7,438.5

Manufacturer

Richard J. Kramer chairman, CEO, president

DSW Inc./DSW 810 DSW Drive, Columbus 43219 (614) 237-7100 /www.dsw.com

$1,728.6

24

52

Andreas W. Mattes president, CEO

25

Manufacturer

Frank C. Sullivan chairman, CEO

Diebold Inc./DBD 5995 Mayfair Road, North Canton 44720 (330) 490-4000/www.diebold.com

Manufacturer

$6,667.5

53

$1,684.0

RPM International Inc./RPM 2628 Pearl Road, Medina 44258 (330) 273-5090/www.rpminc.com

David L. Trautman president, CEO

Insurance

Carl H. Lindner III S. Craig Lindner co-CEOs, copresidents, directors

Park National Corp./PRK 50 N. Third St., Newark 43058 (740) 349-8451/www.parknationalcorp.com

Financial services

$6,353.9

54

$1,440.2

American Financial Group Inc./AFG 301 E. Fourth St., Cincinnati 45202 (513) 369-5000/www.afginc.com

55

E. W. Scripps Co./SSP 312 Walnut St., Cincinnati 45202 (513) 977-3000/www.scripps.com

$1,416.6

Media

Richard A. Boehne chairman, president, CEO

27

DDR Corp./DDR 3300 Enterprise Parkway, Beachwood 44122 (216) 755-5500/www.ddr.com

$6,288.9

Real estate investment trust

Thomas F. August president, CEO

56

Abercrombie & Fitch Co./ANF 6301 Fitch Path, New Albany 43054 (614) 283-6500/www.abercrombie.com

$1,344.4

Retail

Arthur C. Martinez executive chairman

28

Steris plc/STE 5960 Heisley Road, Mentor 44060 (440) 354-2600/www.steris.com

$5,970.5

Manufacturer

Walter M. Rosebrough Jr. president, CEO

57

Advanced Drainage Systems Inc./WMS 4640 Trueman Blvd., Hilliard 43026 (614) 658-0050 /www.ads-pipe.com

$1,318.5

Manufacturer

Joe Chlapaty chairman, CEO

1

Procter & Gamble Co./PG One Procter & Gamble Plaza, Cincinnati 45202 (513) 983-1100/www.pg.com

2

The Kroger Co./KR 1014 Vine St., Cincinnati 45202 (513) 762-4000/www.thekrogerco.com

3

26

$215,716.5

Financial services

Stephen D. Steinour chairman, president, CEO

RESEARCHED BY DEBORAH W. HILLYER Numerical information provided by S&P Global Market Intelligence, www.spcapitaliq.com. Market cap as of May 31, 2016. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues.

(1) Formerly Health Care REIT.

20160801-NEWS--44-NAT-CCI-CL_--

7/28/2016

3:28 PM

Page 1

PRESENTED BY

ARCHER AWARDS TIME IS SHORT - GET YOUR TICKETS TODAY! LIFETIME ACHIEVEMENT AWARD RECIPIENT

INNOVATION CATEGORY - Finalists* • Peggy Corbin, Recovery Resources • John Corn, Northeast Ohio Regional Sewer District • Tony Prinzo, National Interstate

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Public Company - Finalists*

• Lisa Villao, American Greetings Corp.

• Barb Astler, MedData • Maurice Harapiak, Cliffs Natural Resources • Ana Rodriguez, PolyOne Corporation • Kim Whiteman, A. Schulman

LEADERSHIP IN DIVERSITY CATEGORY | TEAM - Award Recipient • KeyBank Brian Fishel (team lead), Mark Novotny, Dawn Roberts, Carole Torres, Luci Workman

Private Company - Finalists* • Jackie Bovinet, ClinicalRM • Judy Collister, Park Place Technologies

Nonprofit / Government Organization - Award Recipient • Denise Smudla, Jennings

RISING STAR CATEGORY - Finalists* • Veronica DeFeo Oubayan, ExactCare Pharmacy • Ashley Qualls, Embrace Pet Insurance • George Sample, Northeast Ohio Regional Sewer District • Katie Talarico, KeyBank

HR TEAM CATEGORY - Award Recipient • Medical Mutual of Ohio Tom Dewey (team lead), Nancy Arthur, Susan Edwards, Patty Hartmann, Susan Oros, Lydia Shinn

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