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Changing times for campus leadership Local university president departures reflect U.S. trends By TIMOTHY MAGAW tmagaw@crain.com
Luis Proenza’s bombshell announcement last week that he
would step down from the helm of the University of Akron next summer after 15 years on the job was the latest in a series of presidential shakeups that have the potential to
dramatically alter higher education in the state of Ohio, particularly in the northeastern part of the state. Last spring, for instance, Kent State’s Lester Lefton announced he
INSIDE: A look at the exit dates for six prominent university presidents in Ohio. Page 17 would step down next summer after seven years on the job. Youngstown State’s Cynthia Anderson this summer vacated the top post at the fi-
nancially hard-pressed university after three years at the helm. Moreover, longtime Cuyahoga Community College president Jerry Sue Thornton, a fixture in the Ohio higher education landscape for the last two decades, stepped See TIME Page 17
‘Reset’ by PD is puzzling to many Top executives say newspaper isn’t abandoning print with digital focus By JAY MILLER jmiller@crain.com
he conversation began on May 30, 22 days after Kevin Griffin was hired as the Cleveland Browns’ vice president of fan experience and marketing, a position created by the team’s new regime to fill a void much larger than any hole forged by All-Pro left tackle Joe Thomas — the franchise’s disconnect with its rabid fans. Mr. Griffin, whose position is a rare one in professional sports, received a tweet in late May from @NotSCCleveland, a “SportsCenter” parody account.
The first installment in an extensive investigation by two Plain Dealer reporters on the failure of Cleveland police to follow up on medical evidence gathered from rape victims over two decades rolled out last Monday, Aug. 5. But not in The Plain Dealer, which for decades has been the dominant daily news medium in Northeast Ohio. Instead, it appeared on Cleveland.com, the website owned, like The Plain Dealer, by Advance Publications Inc. The newspaper’s print home delivery subscribers didn’t even receive a home-delivered paper that day. Printonly readers were unaware until they received their Sunday, Aug. 11, newspaper that Leila Atassi, Rachel Dissell and 16 others in the news organization had invested months of work creating a multimedia package called “Reinvestigating Rape.”
See ENGAGED Page 7
See PD Page 9
JOHN REID
Browns vice president of fan experience and marketing Kevin Griffin, left, speaks with “Cleveland Browns Daily” co-host Vic Carucci on the field prior to the team’s preseason opener Thursday, Aug. 8 at FirstEnergy Stadium.
ENGAGED, T AT LAST
By KEVIN KLEPS kkleps@crain.com
32
New hire Kevin Griffin is giving the Browns’ rabid fans their say
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SMALL BUSINESS Crowdfunding is challenging, but can give entrepreneurs a needed boost ■ Pages 11-15 PLUS: ADVISER ■ TAX TIPS ■ SUMMER FESTIVALS ■ & MORE
Entire contents © 2013 by Crain Communications Inc. Vol. 34, No. 32
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SOCIALLY AWKWARD
COMING NEXT WEEK Let’s make a deal A number of local attorneys and judges have set up shop as mediators in recent years to meet a growing demand in the field. In next week’s Legal Affairs section, Crain’s will look at that trend and much more, including nurses with law credentials.
REGULAR FEATURES Classified ....................21 Editorial ........................8 From the Publisher ........8 Going Places ...............10
AUGUST 12 - 18, 2013
Letter............................8 Milestone ....................22 Reporters’ Notebook....22 The Week ....................22
Know what U.S. CEOs really don’t like? Social media. A new study from CEO.com and business software firm Domo finds that 68% of Fortune 500 CEOs have no presence at all on any of the four major social networks — Facebook, Google+, LinkedIn or Twitter. There is some growth in usage among the CEOs in three of the four platforms, with only Facebook declining in popularity in 2013 from 2012. Here’s a breakdown of the numbers, which includes CEOs on multiple social networks:
Social network Fortune 500 CEO users, 2013
Fortune 500 CEO users, 2012
Change
35
38
-7.9%
Google+
5
4
+25%
140
129
+8.5%
28
18
+55.6%
■ Source: CEO.com
700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com Publisher/editorial director: Brian D. Tucker (btucker@crain.com) Associate publisher/editorial: John Campanelli (jcampanelli@crain.com) Editor: Mark Dodosh (mdodosh@crain.com) Managing editor: Scott Suttell (ssuttell@crain.com) Sections editor: Amy Ann Stoessel (astoessel@crain.com) Assistant editor: Kevin Kleps (kkleps@crain.com) Sports Senior reporter: Stan Bullard (sbullard@crain.com) Real estate and construction Reporters: Jay Miller (jmiller@crain.com) Government Chuck Soder (csoder@crain.com) Technology Dan Shingler (dshingler@crain.com) Energy, steel and automotive Tim Magaw (tmagaw@crain.com) Health care and education Michelle Park (mpark@crain.com) Finance Rachel Abbey McCafferty (rmccafferty@crain.com) Manufacturing and energy Research editor: Deborah W. Hillyer (dhillyer@crain.com) Cartoonist/illustrator: Rich Williams Marketing director: Lori Yannucci Grim (lgrim@crain.com) Events Manager/Operations & Logistics: Christian Hendricks (chendricks@crain.com) Events Manager/Promotions & Sponsor Relations: Jessica Snyder (jdsnyder@crain.com) Advertising director: Nicole Mastrangelo (nmastrangelo@crain.com) Senior account executive: Adam Mandell (amandell@crain.com) Account executives: Dawn Donegan (ddonegan@crain.com) Andy Hollander (ahollander@crain.com) Lindsie Bowman (lbowman@crain.com) John Banks (jbanks@crain.com) Sales and marketing assistant: Michelle Sustar (msustar@crain.com) Office coordinator: Denise Donaldson (ddonaldson@crain.com) Digital strategy and development manager: Stephen Herron (sherron@crain.com) Web/Print production director: Craig L. Mackey (cmackey@crain.com) Production assistant/video editor: Steven Bennett (sbennett@crain.com) Graphic designer: Lauren M. Rafferty (lrafferty@crain.com) Billing: Susan Jaranowski, 313-446-6024 (sjaranowski@crain.com) Credit: Todd Masura, 313-446-6097 (tmasura@crain.com)
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CRAIN’S CLEVELAND BUSINESS
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3
INSIGHT
Bold CEO isn’t afraid to fail Boutros has set lofty goals for struggling MetroHealth and is inspiring his staff By TIMOTHY MAGAW tmagaw@crain.com
Although he was MetroHealth’s second choice to become its next president and CEO, the gregarious and blunt Dr. Akram Boutros has taken the reins of the hard-pressed public health system as if he was destined for the job. For instance, when asked what he thought so far of Dr. Boutros’ performance, Thomas McDonald, chair of the health system’s board of trustees, told Crain’s, “I couldn’t be happier, and I’m glad we missed out on Brennan,” referring to Dr. John Brennan, the CEO of Newark Beth Israel Medical Center in New Jersey who unexpectedly reneged on his commitment after accepting the post last November.
MAN WITH A PLAN A look at a few of MetroHealth president and CEO Dr. Akram Boutros’ aggressive goals for 2013: ■ Finishing the year with a $15 million profit. ■ Increasing patient satisfaction rates from the 15th to the 45th percentile. ■ Achieving the top performance on every quality measure. ■ Being certified as an accountable care organization by the Centers for Medicare and Medicaid Services. And while he’s only been on the job for just more than two months, Dr. Boutros’ fingerprints are all over the organization, having steered a process to retool MetroHealth’s mission and values statements — a process which, if executed properly, Dr. Boutros believes could position MetroHealth as the most admired public health system in the nation. See BOLD Page 21
THE WEEK IN QUOTES “If you look nationally over the last several years, there has been more change. The tenure of university presidents has been shorter. It’s a high-stress environment.” — Bruce Johnson, president, Inter-University Council of Ohio. Page One
“Everyone just wants to let the community know they exist.” — Annette Phelps, Broadview Heights secretary to the mayor and city clerk. Page 11
“It isn’t an either-or strategy. But if the focus is not on the digital, you run the risk of not developing it as well as and as rapidly as you need to.” — Terry Egger, chairman, Plain Dealer Publishing Co. Page One STAN BULLARD
“You’re engaging a group of people who want to help you. If you’re just asking them for money, then I think you have the wrong goal.” — Ethan Mollick, assistant professor of management, Wharton School of the University of Pennsylvania. Page 11
Heinen’s Fine Foods is considering the idea of adding a grocery store in the Ameritrust skyscraper on East 9th Street.
SHOPPING FOR A HOME E
By STAN BULLARD sbullard@crain.com
Downtown Cleveland is aiming to land a major grocery store
fforts are under way to bag a full-fledged grocery store to advance downtown Cleveland’s residential redevelopment, with Heinen’s Fine Foods acknowledging it is considering the idea. Jeff Heinen, a third-generation See GROCER Page 20
TMW is on the move to Eastpoint I Provider of software to trucking companies soon will shift headquarters to Mayfield Hts. By STAN BULLARD sbullard@crain.com
TMW Systems Inc., a provider of software that allows trucking companies to track locations of their fleets, is setting a course for a new office in Mayfield Heights that will consolidate its two Beachwood offices in a single building.
TMW, part of Sunnyvale, Calif.-based Trimble Navigation Ltd., has leased 58,000 square feet on the second and third floors of the nearly empty Eastpoint I building at 6085 Parkland Blvd. The firm is committed to the space through 2024, according to a prepared statement by Atlanta-based Piedmont Office Realty Trust Inc. Piedmont owns both Eastpoint I and the neighboring
Eastpoint II, which were built in 2000. For its part, TMW was mum on the new office it will occupy this fall. Monica Truelsch, TMW director of marketing, declined comment on the transaction and the company’s workplace plans. The move will combine more than 500 employees of TMW from about 18,000 square feet at 25800 Science Park Dr., where it has had headquarters and research units since early 2012 and 32,000 square feet from a building at 21111 Chagrin Blvd., an early home of the company See TMW Page 21
LAUREN RAFFERTY
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AUGUST 12 - 18, 2013
Crain’s publisher Tucker is set to retire after 28 years Hudson native Campanelli will assume top leadership role for newspaper in ’14 Brian Tucker, publisher and editorial director of Crain’s Cleveland Business, announced he will retire in the coming months after 28 years with the business newspaper and website. At the same time, John Campanelli, the editor of Waste & Recycling News, has joined Crain’s Cleveland Business as associate publisher/editorial. He will become publisher upon Mr. Tucker’s retirement. Waste & Recycling News, like Crain’s Cleveland Business, is published by Detroit-based Crain Communications Inc. No specific timetable has been set for Mr. Tucker’s retirement, but he said the transition will occur sometime early in 2014. Mr. Tucker announced his plan to his staff on Monday, Aug. 5, a day after his 62nd birthday. “I’ll just look to see what my next adventure will be,� he said. “I have a lot of emotion and intellectual energy invested in Cleveland and Greater Cleveland, and I want to figure out the best way to use that for an organization or a company.� Mr. Tucker came to Crain’s Cleveland Business in March 1985, as editor of the weekly business newspaper, which was not quite five years old at the time. “I remember writing a column for that first anniversary section, and not being entirely certain about my message, since I’d been at the
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Tucker
Campanelli
paper a whopping three weeks,� Mr. Tucker recalled. “But I knew of the Crain family’s reputation for great journalism, and I was certain we’d build something special here.� And the staff did just that, building a reputation for first-rate business journalism and commentary that became a “must-read� for Northeast Ohio business owners and executives. Crain’s Cleveland Business has been named best weekly in Ohio a number of times and has won a wide range of regional and national awards. Just this year, it was named a winner in the 59th annual Jesse H. Neal Awards, a national competition that each year honors the best work in business media, and in the 35th annual Azbee Awards, conducted by the American Society of Business Press editors, for a multimedia package that examined the remaking of West 25th Street. He said it all starts with great journalism. “It’s the very elemental nature of a newspaper, even though now our information is conveyed in both print and digital formats,� said Mr. Tucker, who became publisher and editorial director in late 1988. “It might be more demanding with the non-stop nature of digital delivery of our news, but at its core it’s the same as when G.D. Crain Jr. started our company. Find a great idea for a news product, hire talented folks to produce and sell it, and advertisers will want their message seen by its readers. “He felt it was imperative to serve the market by putting the reader first. It’s no different today, except
the reader sees our words, photos and graphics in a wide choice of print and digital forms.� Mary Kramer, group publisher for Crain’s regional business publications in Cleveland and Detroit, said, “We’re delighted to continue the tradition of ensuring that an executive with deep news experience and judgment will continue to oversee Crain’s Cleveland Business, including its business operations. Brian Tucker is known in the business community as much as a journalist as he is a publisher and civic leader. John Campanelli has a passion for Cleveland and will continue in that tradition.�
‘The best place for business people’ Mr. Campanelli, a graduate of Ohio State University, joined Waste & Recycling News in April 2011 after more than 13 years as a reporter and sports copy editor at The Plain Dealer. He oversaw the June 2011 move of Waste & Recycling News to Detroit from Akron and its transition last week to an online-only publication. It is Mr. Campanelli’s second tour with Crain Communications. He was a reporter for Rubber & Plastics News in 1997. Mr. Campanelli, 43, is eager to take on the new challenge. Of Crain’s Cleveland Business, he said, “I see a brand and a publication that is the best place for business people to get their news in Northeast Ohio.â€? He said he believes that Crain’s Cleveland Business and its website, CrainsCleveland.com, can be especially valuable to business people as The Plain Dealer is refocusing efforts away from its print publication. “I think that if there wasn’t already a news vacuum, people who are doing business, all different kinds of people, are going to need information and someone is going to have to step up,â€? he said. A Hudson native, Mr. Campanelli started his journalism career in 1994 at The Morning Journal in Lorain, where he was assistant city editor and assistant managing editor. â–
College Now Greater Cleveland lands $150K grant
â–
The Bull Symbol, Merrill Lynch Wealth Management and The Power of the Right Advisor are trademarks or registered trademarks of Bank of America Corporation. CRPS LV D UHJLVWHUHG VHUYLFH PDUN RI ĹˆH &ROOHJH IRU )LQDQFLDO 3ODQQLQJ 0HUULOO /\QFK :HDOWK 0DQDJHPHQW PDNHV DYDLODEOH SURGXFWV DQG VHUYLFHV RIIHUHG E\ 0HUULOO /\QFK 3LHUFH )HQQHU 6PLWK ,QFRUSRUDWHG D UHJLVWHUHG EURNHU GHDOHU DQG PHPEHU 6,3& DQG RWKHU VXEVLGLDULHV RI Bank of America Corporation. Š 2013 Bank of America Corporation. All rights reserved. $' $ $5 30
College Now ON THE WEB Story from include more than Greater Cleveland has www.crainscleveland.com 500 mentor and secured a three-year, mentee pairings. $150,000 grant to support the According to College Now, the growth of its burgeoning mentoring funding will help cover existing staff program. costs that will allow the organization The grant from TG, a Texas-based to leverage other resources to grow nonprofit organization that provides the mentoring staff, support inresources to help students plan and creased mentor screening, cover prepare for college, will help fund the training costs and boost the budget mentoring program's infrastructure. for events and marketing. The mentoring program was “The TG funding came at a critical launched as a pilot in 2011 to help time for the Mentoring Program,� bolster college completion rates College Now CEO Lee Friedman said among the organization's scholarin a statement. — Tim Magaw ship recipients. It has since grown to
Volume 34, Number 32 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of December and fifth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright Š 2013 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136
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Vadxx Energy scraps its plans for Cleveland plant Alternative recycler has shifted its focus to Akron and has its sights set on the purchase of 5.1 acres of city-owned land
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Vadxx Energy LLC, a Clevelandbased alternative recycler that turns polyolefin waste into fuel, is abandoning its plans for a much-debated Cleveland plant and instead setting its sights on Akron. The city of Akron plans to enter into a development agreement with Vadxx, a move that Russell Cooper, vice president of business development, said shows its “enthusiastic support” for the company. In turn, he said Vadxx is giving its full attention to the new location and doing away with plans to put a site in Cleveland. Akron’s planning commission is scheduled to discuss the sale of 5.1 acres of city-owned land at 1200 E. Waterloo Road at its next regular meeting, at 9 a.m. this Friday, Aug. 16. Mr. Cooper said Vadxx already has been changing its permits and redoing the design for the new space. Brad Beckert, development engineering manager for Akron, said the city is working on a development agreement with Vadxx. Terms of the agreement are not yet finalized, but they likely will address the use of the land in question and the number of jobs the company needs to create. According to the planning commission agenda, the purchase price would be $150,000, and the estimated construction costs for an 18,000-square-foot plant would be $2 million. At least 15 jobs would be created or transferred to the site
“Save 10 times the cost of the class in reduction of scrap, downtime, returns, and rework.”
when it opens, with a goal of another five jobs being created within three years. The agenda also mentions that the company would make efforts to move the research and development center to the site in the next three years. The agreement has to go before Akron City Council before it becomes final. Mr. Beckert said the city is excited about the agreement and that it fought to keep Vadxx in Akron. The company started in the city’s incubator, the Akron Global Business Accelerator, and will now move to production while still in the city, creating jobs for Akron. No one from Cleveland’s economic development department was available to comment last Friday, Aug. 9. Vadxx also is working to get partners for other sites financially committed by the end of the year. These developers would build their own sites and use local waste streams, taking Vadxx’s technology to create usable fuel. Mr. Cooper said Vadxx is talking to potential partners in Wisconsin, Tennessee, California and Toronto. Potential developers from across the globe visited Vadxx’s research and development center in Akron during the week of July 15 to learn more about the technology. Vadxx has been running a scaled-down version of its future commercial units at its Akron center for about three and a half years, Mr. Cooper said. Mr. Cooper said that when the equipment is commercially scaled, it will be about 5,000 square feet, in-
ON THE AGENDA According to the Akron planning commission agenda, Vadxx Energy LLC’s purchase of the space at 1200 E. Waterloo Rd. would include the following details: ■ Purchase price: $150,000 ■ Square feet of plant: 18,000 ■ Construction costs: $2 million ■ Jobs created or transferred to the site: At least 15, with a goal of another five created in the next three years. cluding a 50-foot extruder and a 60foot rotary kiln. Each will need about 16 operators to run the machine 24 hours a day, and those jobs will likely come with salaries in the $40,000 to $50,000 range, he said. Mr. Cooper said the company is working through the financial details, and the new plant should start to run trials in about a year. It would take another three to six months to get completely to scale. Once the plant is at full production, it can process about 20,000 tons of waste a year, producing about 80,000 barrels of fuel. The device heats waste polyolefin products — certain kinds of plastics — in a controlled way, without using catalysts. “That is a big breakthrough,” Mr. Cooper said. The heat slowly melts the products and condenses them, turning them back into carbon and hydrogen products. The majority of the plastics waste — about 75% to 80% — gets turned into hydrocarbon liquid, which can be used to make products like diesel fuel, Mr. Cooper said. Another 5% becomes a non-hazardous byproduct called char, and the rest becomes gas that is used to heat the equipment. Vadxx already has one buyer lined up in Houston for the liquid products. ■
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Engaged: Griffin brings in ‘secret shopper’ for fans’ perspective continued from PAGE 1
“Please, please tell us all that the game experience will be much different this year,” the message read. Mr. Griffin responded by asking Browns fans for suggestions and telling them to “Be nice!” The ideas have ranged from the music played at FirstEnergy Stadium (it will be new and improved this season), to new uniforms (it’s a future possibility), improved cell phone service (it’s a reality), telling security to allow fans to stand up and cheer (it’s been done) and more locations at which to buy nachos during a game (it’s probably much lower on the Browns’ list of priorities). Mr. Griffin has listened to the feedback, and he responds to almost every question — though he left the nacho fan hanging. “Our relationship is a two-way street,” said Mr. Griffin, a four-year letterman in football at Ohio State (1995-98) and a nephew of two-time Heisman Trophy winner Archie Griffin. “We, the Browns, have asked a lot of our fans the last 25, 30 years, and this is a way for us to give back to them, to show them that we appreciate who they are and that we’re listening.” In a seven-day span from July 29 to Aug. 4, Mr. Griffin replied to the ideas of almost 60 Browns fans on Twitter. He told one to call the team’s office and ask for him, gave his email address to another and made at least two arrangements to meet fans on the practice field during training camp. “I think what fans ultimately want to know is that we care about this team and this community as much as they do,” Mr. Griffin said. “And the truth of the matter is we do. We might not have been here long, but we really, really do. We
know that (interacting with the fans) is reflective and a representation of who we are as a community. So we want to put the best product out there as possible, and part of that is listening to their needs and desires.”
Former Cowboy targets Buckeye While Mr. Griffin’s title is a rare one in professional sports, his approach is far from revolutionary. For years, the Browns have only had to look a few blocks across town to see the Cavaliers’ and Indians’ use of social media for clever methods of interacting with fans. The Browns, in the minds of many of their faithful, didn’t adopt similar philosophies, even as the 5-11 seasons mounted and the team plunged to 25th (2009 and 2010), 26th (2011) and 24th (2012) in the NFL in stadium capacity (the percentage of the stands that are filled on game day). “If you look at what (Browns CEO) Joe Banner has done and what they’re doing now, they’ve taken a different approach to re-engage the fan base and do something a little bit different,” said Michael Rapkoch, president of Sports Value Consulting, an Addison, Texasbased company that provides advice to pro leagues and teams on franchise values, assets, banking and other services. “I think that’s a positive,” Mr. Rapkoch continued. “You have new ownership coming in and saying, ‘I realize what’s been done in the past. Let’s step it up to a new level.’ ” For the Browns, the increased interaction gained steam when Mr. Banner hired Alec Scheiner as team president last Dec. 18. Mr. Scheiner — who says he was involved in “every aspect of the stadium” during his eight-year tenure as an executive with the Dallas
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Cowboys and played a vital role in fan experience at the state-of-theart Cowboys Stadium (just renamed AT&T Stadium) that opened in 2009 — interviewed about 30 people for the job that eventually went to Mr. Griffin. “We created a role I didn’t know of with any NFL team — VP of fan experience,” Mr. Scheiner said. “The idea behind the role was we wanted someone who was responsible for how we engage our fans as an organization. Once we created that role, we went out and searched nationwide for it. The problem is no one had ever done this, so we had to look at different areas.”
Shopping for success One team — two, actually — had a similar position, and it was manned by Kevin Griffin. Mr. Griffin spent more than eight years with the Seattle Seahawks and six with Seattle Sounders FC as director of fan development and community relations. The Sounders, a Major League Soccer franchise, averaged 43,144 fans per game in 2012 — more than 20,000 ahead of the second-place club in attendance (the Los Angeles Galaxy) and almost 23,500 greater than the average crowd for an Indi-
ans game in 2013. Mr. Griffin had such off-the-wall ideas in the Pacific Northwest as annual weiner dog races (“It was huge,” he says of the event’s popularity), and he’s a big believer that an improved game presentation — player introductions, video presentations, music, halftime shows, instadium disc jockeys and countless other elements that seem much more suited for a frantic NBA arena — are crucial in building a strong home-field advantage. In Cleveland, he even hired a “secret shopper.” “One guy kept emailing me and kept sending me tweets,” Mr. Griffin said. “I said, ‘I appreciate all this, so I’m going to give you an assignment.’ I said, ‘I want you to be my secret shopper. Only you and I are going to know who this is.’ ” The mystery fan’s assignment: On the day after each regular-season game, he or she will send Mr. Griffin an email with 10 “bullet points” — ideas, suggestions, feedback from other fans, etc. “Ask people around you and keep telling us how we’re doing,” Mr. Griffin said of his message. “We can’t be everywhere, and we want people to be able to do that. People appreciate that, and appreciate
having their voices heard.” Mr. Griffin is also thankful that Mr. Banner and Mr. Scheiner have been open to his ideas. (The weiner dog race will debut at halftime of the Browns’ preseason game Thursday, Aug. 15 in what Mr. Scheiner has labeled a test run.) On July 30, two months after Mr. Griffin’s Twitter request, Mr. Scheiner held a press conference at the Browns’ training facility in Berea to introduce the team’s “fan experience” improvements for 2013. A few minutes later, a smiling Mr. Griffin spoke to a reporter and showed a flash from his footballplaying past. Only now, much of his passion is directed away from the field of play — at those brown-andorange-clad onlookers who have had few reasons to cheer since the days of Bernie Kosar, The Drive, The Fumble and The Move. “If the fans want to be involved, I believe this to my core: We will have the best home-field advantage in all of the NFL,” Mr. Griffin said. “No one should be able to come here to FirstEnergy Stadium and beat us. That’s not just for the players. That’s also for us as fans, us as administrators — to make sure we build this thing so no one wants to come here and play.” ■
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PUBLISHER/EDITORIAL DIRECTOR:
Brian D. Tucker (btucker@crain.com) ASSOCIATE PUBLISHER/EDITORIAL:
John Campanelli jcampanelli@crain.com) EDITOR:
Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:
Scott Suttell (ssuttell@crain.com)
OPINION
Changes
S
earch committees at the University of Akron and the Federal Reserve Bank of Cleveland have critical jobs ahead of them as they seek to replace the leaders — Luis M. Proenza and Sandra Pianalto, respectively — who have been transformative figures at those institutions for more than a decade. Both Dr. Proenza, 68, and Ms. Pianalto, 59, announced they will retire next year as leaders of their institutions. Neither will be easy to replace. Dr. Proenza has led the University of Akron since 1999, and anyone who has visited the school’s downtown campus knows the transformation is simply stunning. What was once a largely nondescript commuter school has become a far livelier, larger and more energetic institution, with the growth on campus — a $640 million capital construction campaign led to 22 new buildings and 34 acres of new green space — helping fuel ancillary development in Akron. For instance, the exciting University Park district in Akron is a 50-block neighborhood in the center of education, medicine, technology and culture venues. Its emergence is inconceivable without the vitality brought by a university that has seen its enrollment grow from 18,000 to nearly 30,000 on Dr. Proenza’s watch. The university is in the midst of implementing a plan called Vision 2020 that aims to make further improvements in the university’s graduation rates, research expenditures and other key measurements. Dr. Proenza originally planned to stay on to the end of that plan, but he told Crain’s last week, “It’s time for new leadership.” We trust the university, after 15 years of Dr. Proenza’s strong leadership, knows what it takes to keep the momentum going. Ms. Pianalto, one of only two women heading a regional Fed bank (there are 12), has been been president and CEO of the Cleveland Fed since 2003. But her history with the Cleveland bank dates much further back, to 1983, when she joined the Fed as an economist in its research department. True to her roots, Ms. Pianalto has made sure the Cleveland Fed is a powerhouse research institution. The bank is an influential source of data on inflation and has developed a widely used tool to track inflation’s impact on the economy. In addition, the Cleveland Fed has produced illuminating — and highly accessible — research related to the economic collapse and the housing bust. (All the bank’s research is available at ClevelandFed.org.) Replacing Ms. Pianalto has national implications, as The Wall Street Journal noted she “has positioned herself as a centrist within the Fed system” who “often represents the emerging consensus on decisions regarding interest rates and bond purchases.” Her departure will come at a critical time for the Fed, which in 2014 is expected to begin winding down its $85 billion-a-month bond-buying program. The Cleveland Fed president in 2014 holds one of four voting slots on the Federal Open Market Committee — making it all the more critical to find a thoughtful leader in the mold of Ms. Pianalto.
FROM THE PUBLISHER
Medina school stories strike chord Who knows how that will end, but I hat with all the changes roilfound interesting that Tom Cahalan, an ing around last week at our interim board member now running for region’s largest daily newsa full term, has suggested that paper, it struck me the board move the starting that two stories in a couple of BRIAN time for its meetings back to the smallest were among those TUCKER 6:30 p.m. so that folks coming that captured my attention. from Cleveland can attend and On the front page one day of not miss anything. The (Medina) Gazette was a stoThe board is considering ry about some school board adding more public comment members urging that their orgaperiods in the meetings, and nization try new and better wants to videotape its working means of communicating to committees so the public has parents and taxpayers in the even more access to its decidistrict. Sound less than excitsion-making process. These are exactly ing? Perhaps, but not in context. the kind of changes this school board — You might recall that it was the Medina and so many other public bodies — schools, once seen as exemplary among should undertake if they want to overOhio’s high performers, that have suffered come the general malaise and distrust through waves of cuts in personnel and that voters have about their work. services as voters continued to reject As for the other story, that came from levies. Then, astonishingly, it got worse. the Medina Sun, and it dealt with a proThe same newspaper broke the story vision in the recently approved state that the school board (some members budget bill that deals with homehave since been replaced) had entered schooled children and their right to parinto a sweetheart deal with the previous ticipate in extra-curricular activities at superintendent, agreeing to pay all his their public school. student loans, back to his undergraduate I found the story interesting on a varidays. That superintendent has been reety of levels, not the least of which was placed by an interim boss and is suing the fact that it was included in a budget the district in federal court.
W
Both of these stories I found because I was paging through the physical newspapers. Would I have found them on the web? Nope. bill. I know that after all these years as a journalist, I shouldn’t be surprised by the fact that lawmakers stick so much non-budget stuff into a big and important piece of legislation. But they do, because there’s no real price to be paid, other than the occasional squawking from folks like me. But I also find it interesting because it offers home-schooled kids that missing piece of classmate interaction so vital to our school years. Also, since they inevitably would have to pay an activity fee, it would help the schools just a little as they struggle to retain the activities that are being cut everywhere. Both of these stories I found because I was paging through the physical newspapers. Would I have found them on the web? Nope. But that’s a topic for another day, and another column. ■
LETTER
LaTourette’s criticism rings hollow
T
hanks to Brian Tucker for confirming, in his July 22 commentary “LaTourette takes a club to the club,” that former U.S. Rep. Steve LaTourette is continuing his verbal assault on the conservative wing of the Republican Party. This comes after fleeing the House for what he referred to as “partisan gridlock.” As described by Mr. Tucker, this soft-spoken, but effective, moderate can finally take off the gloves and give those nasty right wingers the beatdown they deserve. After all, Mr. LaTourette was all about compromise. Just ask him … or ask Brian Tucker. While Mr. LaTourette, now head of a
WRITE TO US Send your letters to: Mark Dodosh, editor, Crain’s Cleveland Business, 700 W. St. Clair Ave., Suite 310, Cleveland, OH 441131230; Email: editor@crainscleveland.com
lobbying operation in Washington, and other liberal Republicans were seeking that path, across the political isle Nancy Pelosi and the left were beating their brains out. Obamacare and the federal stimulus package, two huge power grabs, were jammed down our throats on Mr. LaTourette’s watch. Where was the compromise from the left, Mr. Congressman? The Democrats are ready, willing and able to go to war with Republicans every
day of the week. As President Obama famously stated, his goal was “to fundamentally transform” the United States of America. Steve LaTourette and his moderate Republican buddies helped enable this leftist dream. When Mr. LaTourette entered Congress, our country’s debt was about $7 trillion. When he left 10 years later, it was about $17 trillion. Well done, sir! This country is in a downhill spiral that needs to be stopped. Your brand of politics is not the answer, and the party will be better off without you. It will be better off not hearing from you as well. Jeff Longo North Royalton
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Cleveland has become the second-largest American city, after Detroit, to lose daily home delivery of a newspaper. Advance Publications is using a strategy that has much of the rest of the newspaper industry scratching its head. More quickly than other news organizations, it is replacing its print newspapers as the flagships bolster their local operations with their websites. Even more controversial within the industry is Advance’s decision not to begin charging a fee for its online content. Instead, it plans to continue to give it away for free. Terry Egger, chairman of Plain Dealer Publishing Co., calls it “a reset of the business model in order to sustain and be a viable business going forward.” Importantly, Mr. Egger and his executive team believe they can outperform an industry that is struggling to find a financially sound path to the future. In a 50-minute interview in a fourth-floor conference room atop the Plain Dealer Building on Superior Avenue, Mr. Egger and three top executives of the new Northeast Ohio Media Group — president Andrea Hogben; Mike Maleski, vice president of sales and marketing; and Chris Quinn, vice president of content — laid out and defended a strategy that is shaking up the news and marketing landscape of Northeast Ohio and has drawn considerable skepticism in the broader world of media and publishing. “You’ve got to go where the puck is moving to, not where it is now,” Mr. Egger said, using a hockey analogy. “The rise in digital consumption of information and marketing on digital platforms is absolutely going to be a bigger part of the future, and as a company, we wanted to get there fast.” All four executives argued that the company isn’t abandoning print and the thousands of subscribers who have developed an ingrained habit for ink-on-paper news. “It isn’t an either-or strategy,” Mr. Egger said. “But if the focus is not on the digital you run the risk of not developing it as well as and as rapidly as you need to.” Ms. Hogben argued that the strategy can succeed, despite the industry skepticism. While she acknowledged that digital advertising revenue industrywide is growing very slowly while print ad dollars flee rapidly, she said Advance is proving it can do better than the rest of the industry. “I will tell you that early metrics at some of our sister markets that have gone through this change are quadrupling the industry average,” she said. “That is what needs to happen so that that irreversible print decline somehow very soon intersects with the growth (in digital ad revenue).” Among the sister markets Ms. Hogben referred to are Advance Publications operations in New Orleans, Syracuse, N.Y., and Birmingham, Ala. Those organizations are as much as a year ahead of Cleveland.
Downward trajectory After hinting at changes last September, on April 4 the news organization formally announced it was turning its operations upside down. Its primary distribution channel would be digital — the
cleveland.com website. A newspaper would still be published seven days a week but it would be home delivered on only Wednesday, Friday, Saturday and Sunday. About 62% of the paper’s 216,122 circulation has been home delivered. In addition, the organization has been split into two businesses — the existing Plain Dealer Publishing, where the newspaper will continue to be printed, and the Northeast Ohio Media Group, a new entity that will operate cleveland.com and guide the newsgathering going forward. Much of the focus in recent weeks has been on the layoff of employees. At the end of July, the company announced that 50 journalists would be laid off from Plain Dealer Publishing, leaving it with an editorial staff of about 110. In June, about 60 business-side employees were laid off. Looking more broadly, the local company reported 1,600 employees in 2003. Today, Ms. Hogben said, the total is 800, though NEOMG is beginning to hire. As abrupt and disruptive as the transition in Cleveland may appear, the seismic shift in the news industry — away from print — is inescapable. In the last decade, the circulation of The Plain Dealer has declined rapidly, from 332,894 daily in 2003 to 216,122 in the last audited tally in March of this year. That is typical of daily newspapers across the country. The decline in advertising — the main source of revenue for newspapers — is even more dramatic. As a private company, Advance and its newspapers do not disclose financial information, but its newspapers are not believed to be surviving the transformation better than those at other media companies. According to the an annual survey of news media by the Pew Research Center’s Project for Excellence in Journalism, U.S. newspapers have suffered a staggering loss of advertising revenue, from a record $49.5 billion in 2005 to $22.3 billion in 2012, a loss of 55% of ad revenue.
CAN NEWSPAPERS NARROW THE DIGITAL DIVIDE? A look at the newspapers with the highest circulation in the country as of March 31 (percent change is compared to March 31, 2012): Rank, newspaper Print Digital Total circulation Pct. change 1. Wall Street Journal 1,480,725 898,102 2,378,827 12.3% 2. New York Times 731,395 1,133,923 1,865,318 17.6% 3. USA Today 1,424,406 249,900 1,674,306 -7.9% 432,873 177,720 610,593 6.0% 4. Los Angeles Times 5. N.Y. Daily News 360,459 155,706 516,165 -11.0% 6. N.Y. Post 299,950 200,571 500,521 -9.9% 7. Washington Post 431,149 42,313 473,462 -6.5% 184,801 77,660 470,548 11.6% 8. Chicago Sun-Times 9. Denver Post 213,830 192,805 416,676 3.9% 10. Chicago Tribune 368,145 46,785 414,930 0.1% 11. Dall. Morning News 190,613 65,912 409,265 1.0% 265,782 111,962 377,744 -5.1% 12. Newsday 17. The Plain Dealer 216,122 95,483 311,605 8.8% ■ Note: Some newspapers’ circulation figures include combined digital and print subscriptions. The papers and the combined print and digital subscriptions are as follows: L.A. Times, 43,275; Washington Post, 1,305; Chicago Sun-Times, 208,087; Denver Post, 10,041; Dallas Morning News, 152,740. ■ Source: Alliance for Audited Media. View the report at tinyurl.com/d4afusr delivery,” he wrote about the Advance strategy in June on his blog, Newsonomics. “That way, you’ve established a new, higher price — and the monetary value of digital. “Instead, Advance maintains what now seems like a nonsensical approach to paid print and free digital, and that bodes ill for holding on to current print subscribers, much less convincing many people
to pay much for all-access (print and digital) down the road,” wrote Mr. Doctor.
True believers The local Advance executives are unswayed in their belief they are on the right path. In addition to believing their financial model can work, they believe they have another key asset
that will keep readers and attract advertisers — the quality and exclusivity of the news its editorial operations gather. They believe that, despite the layoffs, the organization is a strong news operation. “It’s fundamental in the sales and marketing message that the entire foundation around which we can sell and where we can sustain the business model is rooted in having quality journalism,” Ms. Hogben said. Mr. Quinn believes the digital first “Reimagining Rape” series, with its videos and interactive maps in addition to traditional text and photography, demonstrates that strength. “It was designed as an online series because that is where people are getting their news by and large,” he said. “It was designed for that audience and we wanted to show people what we can do with those digital tools.” He added, though, that print readers will get similar treatment. “We’ll do a significant splash with that series,” he said. “We want to hit the biggest audience possible and the biggest audience in print will be on Sunday.” ■
Mr. Doctor, give us the news The entire industry believes the future of news is online, though no one in the industry has found a secure path forward and few are following the fast pace of Advance’s changes. Most industry observers believe Advance is taking a big risk by moving away from print so decisively and by adopting a strategy of delivering news for free online. They estimate news companies are gaining only $1 of digital ad revenue for every $13 to $19 of print revenue they are losing, a pace that is not picking up quickly. The staff layoffs, they believe, are critical for the Advance newspapers. Only through cost-cutting can they survive in the short term until online revenue becomes more robust. Industry analyst Ken Doctor has called the Advance strategy “shock therapy” because of its risky financial model. Mr. Doctor is a media analyst with Outsell Inc., a Burlingame, Calif.- based consulting firm. “Much better to improve the seven-day print product, add usable mobile apps, and then price up, even if you have a mind to cut home
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GOING PLACES JOB CHANGES ARCHITECTURE C.C.HODGSON ARCHITECTURAL GROUP: Bob Seaman to senior project manager/technical services; J. Ryan McNutt to project manager. THENDESIGN ARCHITECTURE: Steve Bell to project manager.
Seaman
McNutt
Bell
Martineau
Grasso
Grajewski
chair, Department of Ophthalmology and Visual Sciences.
DISTRIBUTION KAPPUS CO.: John Martineau to national accounts manager.
INSURANCE
EDUCATION CLEVELAND INSTITUTE OF ART: Jennifer Grasso to senior development writer.
Hastings
Brown
Stokes
WALTHALL, DRAKE & WALLACE: Paul Weisinger and Judith Mondry to partners.
FINANCE FIRST FEDERAL LAKEWOOD: Jeffrey S. Bechtel to senior vice president and commercial banking senior lender.
GOVERNMENT MEDINA COUNTY AUDITOR: Lauren Amalong to community information manager.
FINANCIAL SERVICE
HEALTH CARE
212 CAPITAL GROUP/NEW ENGLAND FINANCIAL: Brett G. Ketvertis to financial adviser.
CASE WESTERN RESERVE UNIVERSITY SCHOOL OF MEDICINE AND UNIVERSITY HOSPITALS CASE MEDICAL CENTER: Douglas Rhee, M.D., to
MERCER: Tracy Stough Grajewski to partner and senior client manager, Pittsburgh and Cleveland markets.
GALLAGHER BENEFIT SERVICES INC.: Rick Foster to area vice president; Danielle Hochschild to account manager; Rachel Barski to wellness coordinator.
LEGAL BENESCH: Risto Pribisich to partner, Innovations, Information Technology & Intellectual Property Practice Group. MAZANEC, RASKIN & RYDER CO. LPA: George V. Pilat to partner. SPANGENBERG SHIBLEY & LIBER LLP: Barbara Andelman to chief operating officer.
MANUFACTURING EYE LIGHTING INTERNATIONAL: Suzanne Beatrice to director,
Weisinger
Rhee
Pribisich
human resources.
MARKETING GALLO: Matthew Spronz to senior project manager.
NONPROFIT ADOPTION NETWORK CLEVELAND: Richard Pratt to director of finance and operations; Sarah K. Hastings to volunteer and communications associate. CASE ALUMNI ASSOCIATION: Anne Cunningham to senior director, development. CLEVELAND BOTANICAL GARDEN: Renata Fossen Brown to vice president, education. COMMUNITY HEALTH CENTER: Robert Stokes to CEO. CYSTIC FIBROSIS FOUNDATION: Kelly Hendricks to event logistics specialist. GORDON SQUARE ARTS DISTRICT: Theresa Schneider to development manager. LEGAL AID SOCIETY OF CLEVELAND: Ellen Schur Brown to associate director, development. ONCAMPUS RESEARCH: Liz Riddle to director.
REAL ESTATE CUTLER REAL ESTATE: Ali Whitley to career development coordinator.
Pilat
Andelman
Spronz
RETAIL STERLING JEWELERS INC.: Bo Shim to vice president, IT technology strategy and services; Kristine Land to vice president, marketing, outlet division and international tourism; Ann Marie Patton to divisional vice president, Jared The Galleria of Jewelry and repair shops.
SERVICE CENTER FOR MARKETING AND OPINION RESEARCH: Kelsey Begle to human resources and employee engagement manager; Doug Granger to project manager.
STAFFING NESCO RESOURCE: Andrew Deutsch to executive vice president, Central U.S.A. Division and risk management.
BOARDS CLEVELAND BOTANICAL GARDEN: Victoria U. Broer to chairman. INTERNATIONAL ASSOCIATION OF ADMINISTRATIVE PROFESSIONALS DOWNTOWN CLEVELAND CHAPTER: Cheree M. Fuqua to president; Daniele M. Lester to treasurer; Renee Bell to secretary.
Send information for Going Places to dhillyer@crain.com.
Farewell to a legal legend, colleague, and friend
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The legal community lost one of its shining stars on July 23, 2013. John D. “Jack� Liber had a sterling legal career that spanned 50 years. Spangenberg Shibley & Liber was privileged to have Jack at our firm for the past 40 of those years. In each and every endeavor he pursued, Jack achieved preeminent status. A formidable courtroom adversary, Jack also was an impeccable gentleman. He was a John D. Liber man of elegance and grace, kind and considerate to 1938 - 2013 everyone. Jack was a great mentor to younger lawyers, and a wise and patient counselor to us all. Deeply committed to serving the legal community, Jack was a Past President of the Greater Cleveland Bar Association, the Cleveland Bar Foundation, and the Ohio Academy of Trial Lawyers (now OAJ). He was a Fellow of the American College of Trial Lawyers and was a Fellow and Past President of the International Society of Barristers, an honorary legal organization. Jack’s extraordinary skills as a trial attorney are legendary. Just this year he was named as Cleveland’s Lawyer of the Year in the field of Arbitration by Best Lawyers in America. He was honored by his peers and colleagues by his selection in every issue of Best Lawyers in America since 1989, as well as being named in Ohio Super Lawyers both as a trial lawyer and a mediator. In 1985, Jack was one of a select group of trial lawyers nationwide named by Town and Country magazine as the "Best Lawyers in the United States." He will be greatly missed by all of us at Spangenberg Shibley & Liber. Our firm has been overwhelmed with messages of condolence from lawyers and clients across the country whose lives were enriched in important ways by Jack. He has left an enduring legacy of excellence in advocacy as well as exemplary citizenship and friendship. Our thoughts and prayers are with his wife, Nancy, and their children John, Craig, and Shannon, their eight grandchildren, and the entire Liber family.
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INSIDE
15 TAX TIPS: MEDICARE TAX IS COMPLICATED ISSUE.
11
SMALL BUSINESS Feeling festive is good for business Occupying a booth at summer fairs can be a boon for name recognition, contacts By LAURA STRAUB clbintern@crain.com
O
forms. What is constant, beyond visibility, is financial access when avenues, like the bank, are not available. Mrs. Mehling said roughly 75% of her backers were complete unknowns; the remainder were friends and clients — only a handful family. “I found it easier to have a platform to present to people what I do and see if I could raise the capital that way,” she said. “I didn’t want to go directly to a friend and say, ‘Would you give me $5?’ ” More than $5: support for her project averaged $57 per backer. Adept crowdfunding campaigners can leverage the campaign’s reach, through online posting and re-posting by friends, friends of friends, families, friends of family, clients, colleagues and eventually total strangers.
n any given summer week, local businesses exchange their residences in strip malls and storefronts for plywood booths, parade routes and stages housed under tents. Whether manning an informational booth, walking in a parade, performing onstage or sponsoring an event, business owners find city festivals and fairs a popular way to interact with the communities they serve. “The exposure is good for them. Where else are they going to have 20,000 people walking past their booth?” said Annette Phelps, Broadview Heights secretary to the mayor and city clerk. She also is the point person for Broadview Heights Home Days on the Green, which took place July 12-15. Prescription Fitness, a fitness center at 300 Ken Mar Industrial Parkway in Broadview Heights, participated this year in its third Home Days. Owner Joe Butler said the face-to-face marketing common at festivals is a large part of his company’s marketing strategy. “We needed to meet the community,” Mr. Butler said. “That’s initially why we got involved.” He maintains that most small business owners don’t network enough; they just throw money at newspaper and radio advertisements. Thanks to his booth at Home Days, Mr. Butler collected contact information for about 70 people by raffling off complimentary personal training. After the fair, he contacted all 70 to invite them to see the fitness center, with about a 5% to 10% success rate. “Since we keep our customers for a while, it’s usually worth our time,” he said. Dr. Anthony Biondillo, owner of Balanced Bodywork Clinic at 203 E. Royalton Road in Broadview Heights, said the jury still is out on the success of his booth at Home Days on the Green. This was Dr. Biondillo’s first foray into summer festivals. Although the nighttime crowd of teens wasn’t his ideal prospect, on Saturday afternoon Dr. Biondillo connected with families potentially interested in his chiropractic services.
See CROWD Page 14
See FESTIVE Page 12
SHARON SCHNALL PHOTOS
Christine Zadnik Mehling’s crowdfunding campaign helped her move her Better Bit of Butter Cookies baking business to a shared space in South Euclid.
CROWD GETS TO PARTAKE Funding campaigns often give company owners a boost, but challenges follow contributions By SHARON SCHNALL clbfreelancer@crain.com
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crowdfunding campaign helped Christine Zadnik Mehling move her 7-year-old homebased designer and artisan baking business, Better Bit of Butter Cookies, from Cleveland Heights, to a shared retail and work space in INSIDE: A crowdfunding South Euclid. campaign can require Her online camsome extra effort from the paign, through Kickentrepreneur. Page 14 starter, complete with a polished video pitch, raised just more than $11,000 in 30 days. By mid-July 2012, 195 backers pledged toward her relocation project, exceeding the stated goal of $9,800. “I wanted to show the conditions I was working under at home and how my product was doing,” she said. “I was very saleable, and I needed to move and grow.” Kickstarter, Indiegogo and other online crowdfunding platforms enable campaigning entrepreneurs, like Mrs. Mehling, to potentially connect worldwide with donors. In exchange for financial backing, supporters are typically promised a reward, often their business’s product; and a delivery date is identified. Eligibility, fees and campaign lengths vary among plat-
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Festive: Festival exposure could lead to long-term customers continued from PAGE 11
“Getting our name out there was really a goal,” he said. He did so by passing out fliers and gift certificates for free consultations. Although fliers were a main component of Dr. Biondillo’s plan of attack, not all summer festivals allow businesses to hand out literature to passersby. “It usually ends up on the ground and then we have to pick it up,” said Tom Burichin, a Strongsville Chamber of Commerce member and Strongsville Homecoming chairman. Although businesses could not buy a booth at the 71st Strongsville Homecoming, a festival on the city commons that ran July 17-20, they were welcome to join the approximately 100 parade participants and sponsors. As a member of the Strongsville Chamber of Commerce, Janet Yurcik, co-owner of The Cute Little Cake Shop on 15131 Pearl Road in Strongsville, participated in the parade free of charge. The store, which opened in December 2011, has driven the Euclid Beach rocket ship in the parade the past two years. “It’s a fun way to see our customers out there,” Ms. Yurcik said.
“Everyone just wants to let the community know they exist.” – Annette Phelps, secretary to the mayor and city clerk, Broadview Heights, on summer fairs
CONTRIBUTED PHOTO
Businesses that set up booths at Broadview Heights Home Days on the Green last month had a chance to show off their products to thousands of visitors. Employees donned in pink pack the rocket ship and head down the parade route. A parade appearance can be something little that sticks in people’s minds, Ms. Yurcik said. A bride can come in a year later with her wedding book, saying she saw her business in the parade, Ms.
Yurcik said.
If you can’t take the heat … Although it may be tempting for food retailers to sell their products at festivals, doing so can be difficult. Lumpy’s Shake Shop opened in May at 15800 Snow Road in Brook Park. Co-owner Melissa Wensing
decided to try her hand at selling Lumpy’s ice cream at Brook Park Community Days, which took place July 12-14. Battling heat in the high 90s, staffing both the store and the tent and ordering just the right amount of product were challenges Ms. Wensing faced. She ended up ordering 35 threegallon tubs of ice cream for Community Days, and went through just about all of it by Sunday. “Sunday was unbelievable,” Ms. Wensing said. Lumpy’s satisfied a steady line of people at the fair, but fairgoers also began trickling into the store on Snow Road. Even with the boost of business, though, Ms. Wensing estimates she just broke even after costs for tent rental, freezers, banners and menus. Now that she is past those initial investments, she is eager to sell at more festivals. Though few local food retailers sell their fare at the festivals because of logistical challenges and competition from carnival vendors, certain types of companies always seem to be in high supply at these summertime events. Dance studios, music schools and martial arts academies use summer festivals as a means to give their students extra practice and to show off their skills to the community. “It’s pretty much a given that we participate,” said Diana Horvath, owner and director of Strongsville
Dance Co. at 20884 Royalton Road in Strongsville. Dancers of all ages from the studio marched in the Strongsville Homecoming parade, which was recorded and re-aired on local public access television. Ms. Horvath’s students also performed on Kids’ Day in the entertainment tent. Exposure in performances such as these brings a number of dancers in, and those dancers often stay with the program for five to 10 years, Ms. Horvath said.
Giving business a kick Master Ray Kimble, of Ray’s International Tae Kwon Do, at 3301 East Royalton Road, likes to be around for the performances of his students at the summer fairs to answer any questions so parents know exactly what services he offers. Mr. Kimble said his students began performing at summertime events in Broadview Heights, Brecksville and North Royalton about five years ago when he noticed a decline in summer attendance at his business. The appearances help supplement his student base, without costing large sums of money for print advertising. This year at Home Days on the Green, Mr. Kimble collected information from 65 people. He expects about half will come in and 10% to 15% will sign up for classes. Mr. Kimble thinks his success at community festivals is because they give him the opportunity to make direct contact with parents of potential students. Ms. Phelps agrees that the personal touch is an important part of the festival. “Everyone just wants to let the community know they exist,” she said. ■
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E.C. Kitzel is on the cutting edge for growth Cleveland firm’s annual sales have nearly doubled in the last five years, and it has increased its work force by 30% since ’08 By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com
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he focus of E.C. Kitzel & Sons Inc. may be on so-called “superabrasives,” but the path to growth of the maker of diamond cutting tools has been a smooth one in recent years. E.C. Kitzel in the past five years nearly has doubled its annual sales, said general manager Tom Schumann. The family-owned company in Cleveland generates $5 million to $10 million in revenues annually, though Mr. Schumann would not be more specific. There are about 30 employees now, up about 30% from 2008. Superabrasives — hard substances including natural and synthetic diamonds — have been used in cutting and grinding tools for decades, but new materials and an increased desire for productivity have led to growth in the business in recent years, said Mike Mustin, president of the Industrial Diamond Association of America Inc. E.C. Kitzel, which primarily uses synthetic diamonds in its tooling, specializes in short-run products of one to 100 units and makes a couple thousand tools a week. That adds up to nearly 100,000 new, repaired and reprocessed tools a year. About 80% of the tools are new, Mr. Schumann said. During the recession, Mr. Mustin said, the overall market for superabrasives experienced a decline, in part because of the big drop in the automotive industry output. But Mr. Schumann said E.C. Kitzel saw only a small decline in 2008 — about 3% or 4% — and almost has doubled its sales since then. Mr. Schumann attributes that level in business in part to E.C. Kitzel’s diverse customer base, which ranges from suppliers to the oil and gas industry to makers of fractional horsepower motors for appliances. Its customers in the automotive industry make up about 30% of its base. Mr. Schumann said business has softened a bit recently, though he couldn’t say whether that was going to be a trend or just a summer slowdown. The most lucrative market in recent years has been the oil and gas industry, Mr. Schumann said. Kitzel’s products serve pump and seal manufacturers, not companies involved in shale gas. But polymer, plastics and aerospace companies, which Kitzel also serves, also have been doing well. “There’s growth everywhere,” Mr. Schumann said. There are two big reasons superabrasives have been doing well in recent years, said Mr. Mustin, who also is national sales manager for American Superabrasives Corp. in Shrewsbury, N.J. American Superabrasives supplies E.C. Kitzel with some of the diamonds it uses to make its tools, Mr. Mustin said. As new, tougher materials, such as some titanium alloys, are devel-
oped for industries such as aerospace, manufacturers need a hard material to cut them. Also, a superabrasive tool can last far longer than a traditional carbide tool in many applications, Mr. Mustin said. In an industry with high production runs such as automotive, the cost of a superabrasive tool may be more expensive up front, but there’s a benefit in not swapping out the
“Whenever we need something, they will be here.” – Bassam Alfellah Tramontina USA Inc. inventory control and purchasing employee, on E.C. Kitzel & Sons Inc. tooling as often. A standard tool might last 100 parts, while a tool with a superabrasive application might last 100,000 parts, he said. Brian Miller, assembly team leader and purchasing manager for Arobotech Systems Inc. of Madison Heights, Mich., said the steady rest manufacturer uses
polycrystalline diamond wear pads from E.C. Kitzel in its automatic steady rest tools for the automotive industry. The steady rest is used in camshaft and crankshaft grinding to center the piece, Mr. Miller said, and the wear pads are the part of the tool keeping the part being grinded in place. The difference between conventional tools and diamond tools is in durability. The diamond tools are “long-lasting,” he said, and can work for years without needing to be replaced. Mr. Miller also praised E.C. Kitzel’s service and said the company reacts rapidly if
Arobotech has an “urgent need” and is quick to correct any problems without question. That personalized attention is why Tramontina USA Inc., a maker of pots and pans in Sugar Land, Texas, likes using E.C. Kitzel, said Bassam Alfellah, who works in inventory control and purchasing for the company. The tools are designed just for Tramontina, Mr. Alfellah said, and Kitzel often will send a representative to the company when it has a new product and needs a new tool. “Whenever we need something, they will be here,” Mr. Alfellah said. ■
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SIGNIFICANT STEPS TO A SUCCESSFUL CROWDFUNDING CAMPAIGN Ron Young enjoys perusing online crowdfunding websites. In the past, he pledged support for two small business ventures on Kickstarter. As a reward for or fulfillment of his support, the campaigning entrepreneurs respectively promised him an iPhone holding device and iPhone magnetic backing. “I am interested in new and interesting programs. I like following the entrepreneurial spirit,” said the Rev. Young, who is senior pastor at St. Paul Lutheran Church of Westlake. Most recently, that crowdfunding curiosity led to his discovery and financial support of Better Bit of Butter Cookies of South Euclid; in turn, owner Christine Zadnik Mehling promised a cookie-decorating class and company tote bag. Mrs. Mehling’s Kickstarter campaign sought supporters for her business’s relocation. The Rev. Young enjoyed finding a local business and planned to use the class reward as a birthday gift for his wife Jeri Young. The decorated cookies brought home by his wife and two guests were delicious, he said. Previously, the Youngs attended the business’s open house; Mrs. Mehling invited her Kickstarter supporters. Although there was some delay in reward fulfillment and a desire for more communication, the Rev. Young said he was pleased with his latest Kickstarter experience. As for previous experiences, the magnetic phone backing arrived a few weeks late, but was built as promised. Not so with the iPhone holder: after 18 months and no reward, he asked for and received a nearly full refund. “Any consumer thinking about contributing to a crowdfunding campaign should research the company seeking money as well as the crowdfunding platform,” said Bob Cohen, CEO of the Braintree Business Development Center of Mansfield. “Red flags include poorly produced video pitches, a product that has not yet been prototyped, vagueness about what the money will be used for and lack of clarity about what the contributor will receive in return for the contribution,” Dr. Cohen added. As for entrepreneurs who have a successful crowdfunding campaign, steps can be taken to proactively manage backer relations. ■ Offer rewards that can be handled, ones that can be easily manufactured and/or ordered and shipped. “Good business practices translate into good crowdfunding practices — have turnaround procedures in place
to process orders sooner than later,” Dr. Cohen said. ■ Evaluate if the campaign can sustain rewards, particularly the reward shipping costs. “Make sure the reward isn’t going to eat away at the money that is being raised,” said Valerie Mayen, owner of YellowcakeShop, a contemporary garment shop in Gordon Square, showcasing Ms. Mayen’s original designs for women and children. “Sometimes you cannot reward the client, when the business is in a state where it needs to be built up; you have to be smart about giveaways,” said Ms. Mayen, whose latest campaign was not reward-based. ■ Owner communication builds customer relationships. “We encourage people to be transparent and open with their backers,” said Justin Kazmark, a Kickstarter spokesperson. “It’s not just transactional activity; it’s emotional…Backers find it compelling.” ■ Regular communication conveys that supporters are important. Give backers behind-the-scenes access; acknowledge the business demands, describe how campaign goals are being reached — even if progress is incremental. “Frequency is important; stay on their radar, but don’t annoy them … Multiple postings per day are a turnoff,” said Rachel Kacenjar owner of Re/Dress of Old Brooklyn, an online plus-size modern and vintage clothing store. “People want new information. They don’t want the same thing over and over.” ■ Take customer service seriously: Be responsive when supporters post or email complaints. “Everybody says, ‘The customer is always right’ — the customer is not always right, but you do have to be your kindest in resolving a problem,” Ms. Mayen said. “Where you can bend — bend; where you can’t, be kind.” ■ Be in this for the long haul: Maintain the supporter connection. “There are benefits to crowdfunding beyond cash … being able to reach out to them (supporters) forever,” said Rose Levy, a spokeswoman for Indiegogo, another online crowdfunding site. “You have this customer base of people who voted for you; use them as your evangelists.” ■ Confirm with the crowdfunding supporter that it’s OK to move their contact information into the business’s general customer database. Keep them flagged as crowdfunding supporters, though, for the next crowdfunding campaign. — Sharon Schnall
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Crowd: Input is expected continued from PAGE 11
Post-fundraising challenges “For some people it’s the right technique; for some people it’s a disastrous technique … for the (entrepreneur) there are a lot of challenges,” said Ethan Mollick, assistant professor of management at the Wharton School of the University of Pennsylvania. Even when campaigning entrepreneurs meet or exceed financial goals, there are other challenges: having a large or greater-than-expected supporter following; supporter connectivity to the entrepreneur; and supporter expectation regarding timely reward fulfillment. Simply put, the supporter is drawn to the campaign, intrigued by the product and willing to support the effort, but expects timely reward delivery. Ongoing communication about the business is desired — not just about reward fulfillment. “(Supporters are) special customers,” said Ken Burns, electrical engineer and owner of TinyCircuits of Akron. “They’re between an investor and a customer.” Campaign supporters are not angel investors or venture capitalists; they do not have equity stakes in the business, Mr. Burns said. Still, they need to be brought into the process, receiving explanations of where the owner is in meeting campaign goals, he added. “You’re engaging a group of people who want to help you. If you’re just asking them for money, then I think you have the wrong goal,” said Dr. Mollick, who studies innovation and entrepreneurship and is the author of a soon to-bepublished paper called “The Dynamics of Crowdfunding: Determinants of Success and Failure.” Like Mrs. Mehling and her bakery, Mr. Burns met industry criteria of successful crowdfunding: his 30day Kickstarter campaign, to turn electronic prototypes into manufactured products, in fall 2012, realized $109,700 from 1,186 backers, surging almost $100,000 beyond a $10,000 goal. His TinyDuino products, offered to Kickstarter supporters of a certain level, were highly miniaturized circuit boards that could be used for building customized products like robots or wearable sensors, for example, when embedded into a designated computer framework. Although 75% of Mr. Burns’ backers were familiar with the products’ technical capabilities, “well under 1%” were people that he knew; approximately 50%, he said, were from Canada and overseas. But, buyer and campaigner beware: good-intentioned campaigners and quality products may not translate to timely reward fulfillment and frequent communication.
Delivering the goods Kickstarter generates the largest volume of crowdfunding activity both in successful campaigns and associated monies; Indiegogo is its closest competitor in terms of activity, said Justin Kazmark, a spokesman for the New York Citybased Kickstarter. “Over 96% (of Kickstarter campaigns) actually deliver what they said, but not on time … less than 25% do (deliver) on time,” said Dr. Mollick, who studied 48,526 Kickstarter projects representing $237 million in funding pledged. Mr. Burns and Mrs. Mehling each described a predominantly sup-
portive and congratulatory funder base; they also experienced delays in reward fulfillment — not surprisingly, funder rancor followed. “You get instant feedback from Internet customers,” Mr. Burns said. “Let’s just say people can be harsh on the Internet — they can be quite frank.” In Mrs. Mehling’s case, her professional priorities were divided among serving an existing customer base, renovating and opening a new retail space and serving the new campaign contingent. Similarly, Mr. Burns juggled the demands of a then full-time job elsewhere, opening his new business space, staff training and new product manufacturing. “One of the problems: There is volume,” said Bob Cohen, CEO of the Braintree Business Development Center of Mansfield. “Additionally, things can happen so quickly in crowdfunding … (the campaigners are) not geared to meet that demand.” Braintree serves technology entrepreneurs within a 21-county Northeast Ohio region. A business technology incubator, it is part of the JumpStart Entrepreneurial Network. Dr. Cohen likens sudden crowdfunding success to that of a small farmer, approaching a grocery store buyer about selling produce at the local store, only to be offered a contract for all store locations and being unprepared to meet that demand. “People wanting working capital for a product, they don’t know how long this (reward fulfillment) is going to take,” said Dr. Cohen, who works with small business owners seeking to launch crowdfunding campaigns. “Everything takes longer than people expect; everything ends up taking longer because there are so many pieces, so many components.”
The power of communication Ultimately, crowdfunding supporters want to see the business owner succeed, said Rachel Kacenjar, owner of Re/Dress, an online plus-size modern and vintage clothing store, currently operating out of Ms. Kacenjar’s Old Brooklyn home. This past March, Ms. Kacenjar raised $27,110 through 609 funders, using another online platform, Indiegogo of San Francisco; in 22 days, she exceeded a $25,000 goal. She sought support to: reopen the formerly New York City-based online business, one that she had purchased and previously been employed with as vice president of ecommerce. Other campaign goals were to increase product offerings and open a brick-and-mortar location. To date, the first two goals have been met; a Tremont retail location opens this fall, she said. Ms. Kacenjar, previously an independent professional fundraiser for nonprofits, was familiar with customer dynamics. She had some fulfillment difficulties, but managed reaction, for the most part proactively, with ongoing communication through personal and professional Facebook accounts, Twitter and her Indiegogo site, and one-on-one communication when needed. The result, she said, “was a tight-knit donor relationship.” But, communicating takes time; time when the crowdfunding entrepreneur is too exhausted to consider blogging to campaign followers. “You are not going to have free time because of the work involved with a crowdfunding campaign,” Ms. Kacenjar said. “I felt like I was going to have to put in the work — the campaign was my job.” ■
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Make your customers’ business your business
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hen was the last time you talked to a customer about their business, not yours? Can’t recall? Here are three reasons why these calls are great for your business and four easy steps to get started. Why should you make the call? ■Reason No. 1: Turn a transaction into a relationship. A lot of us aren’t very good at listening. Just stop and observe. You’ll hear lots of people talking about themselves and their situations. It’s refreshing
LAURASHERIDAN
ADVISER to have someone engage in a conversation about you and your needs. Think about your vendors and
Medicare change is taxing issue for many
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ith a new Medicare tax taking effect this year, business owners should take a fresh look at their business interests and assure they are not segregated in a way that will lead to an unnecessary burden. Even among tax matters, this issue is particularly complicated. However, it is an important issue for business owners to consider if they are invested in multiple different business interests. The Medicare tax arises from the Health Care and Education Reconciliation Act passed in 2010 to respond to concerns about future unfunded Medicare obligations. The law imposes a 3.8% tax on net investment income when it surpasses a specific threshold amount for individuals. For purposes of this tax provision, investment income includes income from a trade or a business, typically operated under an S corporation, partnership or limited liability company structure, where an investor or a shareholder is not an active participant in the business. That includes cases, for example, where family members are shareholders in a business but are not actively working in the business on a regular basis. That’s a broader definition of investment income than is found elsewhere in tax policy, where investment income usually consists of interest, dividends, annuities, rents, royalties and portfolio gains. Usually income arising from a trade or a business is not considered to be investment income. That means the Medicare tax could nick a much larger swath of income than some business owners are envisioning. This is especially true for those who are passive investors in potentially a number of different business entities. By holding a passive interest in such businesses, those investors may be subject to a 3.8% tax on their earnings from the business in 2013 and beyond. For an investor with passive investment income of $200,000 a year, the additional tax liability can amount to $7,600. There’s good news, however, for taxpayers who find themselves in such a situation. Under the Tax Reform Act of 1986, taxpayers are permitted to structure and conduct their business activities in a way that enables them to benefit from the passive activity loss rules. Those rules were developed to reduce the use of abusive tax shelters that were meant to allow passive
PETERDEMARCO
suppliers. How many times last week did one call just to check in and ask about your priorities and their service? How would you react if one did? Do you think it’s an effective approach to differentiate them? A short call reminds people you exist and why you’re different and special. If people don’t remember you, they’re not going to remember to call you when they need you. We’re not suggesting that you make a call without a purpose. Rather the goal is to listen and hear what’s on your client’s mind. These calls can be short. Ten minutes is often plenty to show you really care about their business and that you’re interested in helping them. IMPORTANT NOTE: This isn’t a task for your customer service team. It’s a priority for you! ■Reason No. 2: Spur innovation. A second benefit of calling clients to listen — and not sell — relates to innovation. Scientists have discovered our brains give us the best ideas when we’re relaxed and openminded. Let yourself think about your client’s business and its challenges. These calls can be fun. Allow yourself to be exposed to stimuli that can help trigger creativity. Calls to clients in which you listen to them describe their challenges
can be that trigger. Successful new products are ones that solve problems. These calls are a great way for you to learn about your client’s challenges and thus provide the spark you need to come up with solutions. Make enough of these calls and you’ll hang up from one and say to yourself, “It wouldn’t be hard for me to create a product or service to solve that problem.� ■Reason No. 3: Assess your customer service. A third benefit is getting firsthand feedback on how well your staff is serving your client. Sure you can read reports, customer satisfaction survey data and talk to your VP of sales, but nothing beats the personal commentary and details you can hear directly from a client. The input might come up naturally in the conversation or you can fish for it. At the end of the call, you’ll have a better sense for how your team is servicing that client. Convinced it’s worth calling your clients? Then how do you do it? ■Step No. 1: Prioritize whom to call. You have many options for whom to call, for example: Your largest clients; clients who have decreased their business with you; clients with huge growth potential; clients you don’t know well; or new clients. Whatever you decide,
prioritize the calls based on your goals. This is not a random task. ■Step No. 2: Set a goal and measure. You’re more likely to be successful if you attach a numeric target to this effort. Start by calling one client a week, then two, then three. What’s key is that you create a realistic goal with a timeframe and then do it. Just like you monitor financial results, track your calls. ■Step No. 3: Make the calls. These calls don’t have to be long. You’re busy and the person you’re calling is busy. ■Step No. 4: Document it. Record your efforts. Use Excel or your CRM (customer relationship management) system. Keep track of your hard work and share the information you collect with your staff. These calls could be the most fun item on your “to do� list. There’s no pressure on you and there’s no pressure on the person you’re calling since your purpose isn’t to ask for the sale. Rather, you’re calling to connect or reconnect with someone who’s important to your business. So, whom are you going to call first? ■Laura Sheridan is president of Viva La Brand, a Cleveland marketing strategy and ad agency search firm.
TAX TIPS investors to recognize generated losses, which those investors could use to offset other gains. The rules have other consequences, however. They allow investors to group business activities so they can potentially be treated as a single activity for tax purposes. The effect, when combining minimal activity associated with numerous business interests, is to cause the investor to look more active than passive. And if the grouped investments can be regarded as active rather than passive investments, the new 3.8% Medicare tax will not apply. To be treated as an active rather than a passive investor in a business, a taxpayer must satisfy at least one of several different tests. The IRS tackles the question from various angles to determine whether a given taxpayer is an active participant in the business based on how many hours they spent working in the business, how many hours others spent, and how active the taxpayer has been with the business in the past. When a few or several business interests are grouped together, the activity level can be looked at on an aggregated basis as well. That makes it easier for the taxpayer to meet the standard for being regarded as active. The IRS also provides some tests for determining what kinds of businesses may be grouped so they can be regarded as a single activity, such as how similar or dissimilar the businesses are, how they are controlled, how they are owned, where they are located, and how interdependent they are. It can become a complex formula for determining where otherwise passive business investments may be eligible for grouping, but the exercise is well worth the effort if the business owner might otherwise face an onerous new tax. â– Peter A. DeMarco is vice president and director of tax services for the regional accounting and business consulting firm of Meaden & Moore, headquartered in Cleveland.
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CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
AUGUST 12 - 18, 2013
LARGEST ADVERTISING AGENCIES RANKED BY NUMBER OF FULL-TIME EMPLOYEES(1)
Name of firm Address Rank Phone/Website
Full-time local Year employees founded Representative clients
Top local executive Title Creative director
Specialties
Jennifer Deutsch executive vice president, general manager Randy Belcher
1
Doner 1100 Superior Ave. East, 10th floor, Cleveland 44114 (216) 687-8521/www.doner.com
105
1937
ADT, DuPont, Arby's, Sherwin-Williams, The UPS Store, Owens Corning, Things Remembered, Geisinger, Tuffy, OhioHealth, Purell, Owens Illinois
2
Stern Advertising Inc. 29125 Chagrin Blvd., Suite 300, Pepper Pike 44122 (216) 464-4850/www.sternadvertising.com
96
1954
Kay Jewelers, McDonald's Restaurants, Jared the Galleria of Advertising, media planning, buying, strategic Jewelry, Third Federal, Southwest General, Collection Auto Group, Cleveland Museum of Art, Live Nation, Feld Entertainment planning, public relations, digital
3
Hitchcock Fleming & Associates Inc. 500 Wolf Ledges Parkway, Akron 44311 (330) 376-2111/www.teamhfa.com
85
1940
Jack DeLeo Goodyear Tire and Rubber Co., KraftMaid Cabinetry, Tremco, LP Integrated marketing: strategic planning, research, president, CEO Building Products, Akron General Health System, Liquid Nails, branding, media, digital, PR Milissa Shrake Simonton Windows, Glidden Paint, Medical Mutual, Zimmer Greg Pfiffner
4
Innis Maggiore Group, Inc. 4715 Whipple Ave. NW, Canton 44718 (800) 460-4111/www.innismaggiore.com
32
1974
Alside, Aultman Hospital, Bank of America, GOJO, Goodyear, Guidestone Financial, Nickles Bakery, Republic Steel, RTI International Metals
Strategic brand positioning and execution
Dick Maggiore president, CEO Jeff Monter
5
Arras Keathley 1151 N. Marginal Road, Cleveland 44113 (216) 621-1601/www.arraskeathley.com
21
1991
NA
Insight generation, strategic planning, brand planning, fully integrated Mar/Comm programs
Jim Hickey president Tom Keathely
5
ST&P Marketing Communications Inc. 320 Springside Drive, Suite 150, Fairlawn 44333 (330) 668-1932/www.stpinc.com
21
1992
NA
Sales promotions, consumer, sales incentives, merchandising, fulfillment, advertising, media
Richard Kenney COO Russ Kern
7
AMG Marketing Resources Inc. 2530 Superior Ave. East, Suite 601, Cleveland 44114 (216) 621-1835/www.amgmarketingresources.com
20
1973
Bendix, Parker, Nestle, SES, Sherwin-Williams, West Development Group, Lubrizol, Quaker Steak & Lube, OEConnection
Strategic marketing planning, branding, creative development, interactive marketing, public relations, social media
Anthony M. Fatica president Anthony M. Fatica
7
Melamed Riley 1375 Euclid Ave., Suite 410, Cleveland 44115 (216) 241-2141/www.mradvertising.com
20
2004
The MetroHealth System, FMC Corp., Our Pet's, Arizona Tile, CMI, Ohio University, Marketplace Events, Shoes & Clothes for Kids
Branding, research, strategic planning, creative, production, media planning and buying, interactive solutions
Sarah Melamed president Rick Riley
9
WRL Advertising 4470 Dressler Road N.W, Canton 44718 (330) 493-8866/www.wrladv.com
19
1954
Best of Ohio's Amish Country, Mercy Medical Center, Quickdraft, Website design and programming, multimedia, Roca Tile, Stark County District Library, Stark State College of broadcast, print, branding, traditional/Internet Technology, The Canton Ballet, Windsor Laurelwood marketing, PR
C. Todd Locke president Bob Isenberg
10
flourish Inc. 1001 Huron Road E., Suite 102, Cleveland 44115 (216) 696-9116/www.flourishagency.com
17
1998
NA
Marketing, creative, photography
Henry B. Frey president Steve Shuman
11
The Marshfield Group 11241 Exmoor Drive, Concord Township 44077 (440) 974-8448/www.marshfield.com
15
1979
Holz Rubber, Holmbury Inc., John Palmers Bistro 44, Dyson, MEACO, Tecmark, Concord-Painesville JEDD, Concord Township, Preston-Eastin, The Czack Law Firm
B-to-B marketing: advertising, brand development, crisis communications, direct mail, website development SEO, SEM
Thomas A. Mitchell president, CEO
12
Rosenberg Advertising 12613 Detroit Ave., Lakewood 44107 (216) 529-7910/www.rosenbergadv.com
13
1981
Discount Drug Mart, Friedman Domiano & Smith, Leikin Mercedes/Volvo, Husqvarna Viking Sewing, Standby Screw Products, Morgan Services, Professional Travel, Feldmar Watch
Strategic thinking, fresh ideas, integrated marketing solutions gives your business the personality and brand that helps you grow
David Rosenberg president, CEO Melissa Sattler
12
Triad Communications Inc./Next Level Interactive 2006 Fourth St., Cuyahoga Falls 44221 (330) 237-3531/www.triadadv.com
13
1994
Smithers-Oasis, Soprema, Summa Foundation, Valmark Securities, Omnova Solutions, Omnova Solutions Foundation, Burton D. Morgan Foundation, GAR Foundation, Cohen & Co.
Traditional and interactive design and marketing, social media, PR, search engine marketing
Rick Krochka president
14
Razor Ltd. LLC 13 Waterford Lane, Beachwood 44122 (330) 562-9635/www.razor-marketing.com
12
2003
Montrose Auto Group, GBS Corp., Citizens for Better Cities, Viadamo Fashions, Adesso Fashions for Men, Interstate Lift Trucks, Redidoc.com
Business development, corporate strategy and communications, brand building and extension
C. Peter Cimoroni chairman, CEO Valerie A. Cimoroni
15
Twist Creative Inc. 1985 W. 28th St., Cleveland 44113 (216) 631-5411/www.twistcreative.com
10
1999
Sisters of Charity Health System, Voss Aerospace, FaberAdvertising, brand strategy, media relations, copy Castell/Creativity for Kids, Storm Power Components, Cuyahoga writing, consumer products, interactive design, Community College, Select Restaurants corporate identity
Michael Ozan president, chief creative officer Joel Miller
15
Zig 4401 Rockside Road, Suite 214, Independence 44131 (216) 328-6301/www.zigmarketing.com
10
2001
UnitedHealthcare, Dutch Boy, Krylon, Pratt & Lambert, Purdy Brush, Moen, Therma-Tru, Simonton Windows, OEConnection
Digital media, social and mobile media, marketing automation
Howard Zoss president Mike Smith
17
Kleidon & Assoc. 320 Springside Drive, Akron 44333 (330) 666-5984/www.kleidon.com
8
1975
Holmes County Chamber, MasterBrand Cabinets, JDM Structures, Greater Akron Chamber, Landmark Plastic, Foundation for Excellence in Mental Health Care
Marketing communications, public relations for manufacturing, professional services, travel and leisure, building industry
Dennis A. Kleidon president, CEO Tim Klinger
18
Covey-Odell Advertising Ltd. 330 Schneider St. SE, North Canton 44720 (330) 499-3441/www.covey-odell.com
6
1967
Fred Olivieri Construction, Stark Development Board, Neurology & Neuroscience Associates, Omni Orthopaedics, North Canton Economic Development, C&M Conveyor, Iron Eagle
Manufacturing, health care, distribution, construction, oil and gas
Rod A. Covey president David W. Lear
18
Cunningham Baron LLC 1900 Superior Ave., Suite 304, Cleveland 44114 (216) 579-6100/www.cunninghambaron.com
6
2006
NA
Business-to-business advertising, public relations, website design, marketing communications
Eric Baron Ann Marie Cunningham members Eric Baron
18
Linear Creative 4681 Hinckley Industrial Parkway, Cleveland 44109 (216) 741-1533/www.linearcreative.com
6
2003
Travelers Insurance, Providence House, Jeffrey Paul Salon, Wigs Print, TV, radio advertising, video design and for Kids, Cleveland Police Patrolmen's Assoc., Dempsey production, web design and marketing, public Surveying Co., The Legacy Group, North Coast Men's Chorus relations, SEO, emarketing
Raymond W. Jasinski owner, creative director
21
Little Jacket 2026 Murray Hill Road, Suite 103A, Cleveland 44106 (216) 373-6979/www.little-jacket.com
5
2004
American Greetings, Center for Families and Children, City of Shaker Heights, Dealer Tire, DecisionDesk, Diacarta, MetroHealth, Open Doors Academy, University Hospital
Advertising, branding, copywriting, design, web design, multimedia content, mobile design
Roger S. Frank Kenneth W. Hejduk partners Roger S. Frank
22
Clayman Marketing Communications Inc. 1245 S. Cleveland-Massillon Road, Suite 226, Copley 44321 (330) 865-5559/www.claymarcom.com
4
1954
NA
Manufacturing, medical, machine tool, sanitary supply
Larry Clayman, president Marjorie Clayman vice president
23
bCreative Graphic Design and Web Boutique 4140 Erie St., Willoughby 44094 (440) 510-8515/www.bcreativenow.net
3
2006
Coldwell Banker, Meritage Homes, Health Mor Inc., Dun & Bradstreet-Harris Info Division, Re/Max, Joe Brand-Houston, Outback Steakhouse-Houston
Graphic design, web, print, social media, radio, outdoor, email marketing, programming
Rebecca Marich principal
Strategic planning, branding retail activation, integrated creative, social media
Source: Information is supplied by the companies unless footnoted. 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. Business lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Numbers as of June 30, 2013
William J. Stern president, CEO Steve Romanenghi
RESEARCHED BY Deborah W. Hillyer
20130812-NEWS--17-NAT-CCI-CL_--
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AUGUST 12 - 18, 2013
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
17
Time: School trustees seeking versatile candidates for top posts continued from PAGE 1
down this summer. On the private school front, Hiram College president Thomas Chema said he would step down after the conclusion of the coming academic year after more than a decade leading the small liberal arts college. And beyond Northeast Ohio, with perhaps the biggest blockbuster of all, Ohio State’s E. Gordon Gee — the quirky, bowtie-clad character many saw as the face of higher education in Ohio — swiftly retired this summer after a series of recorded verbal gaffes surfaced in which he mocked Catholics and other rival schools. Of course, each presidency carries its own set of circumstances, and not all came to a halt amid scandal like Dr. Gee’s. As Cleveland State president Ron Berkman, who has served in his role since 2009, characterized it, “I don’t think there’s anything in the water.” However, some higher education leaders and observers suggest the sweeping leadership changes could be emblematic of the evolving nature of the college presidency, a job that has shifted dramatically from that of a top academic into a role more suited for a corporate, CEOlike individual. “If you look nationally over the last several years, there has been more change,” said Bruce Johnson, president of the Inter-University Council of Ohio, an advocacy group representing the state’s 14 public universities. “The tenure of university presidents has been shorter. It’s a high-stress environment.”
cohesively as a system, rather than a tribe of competitors scattered across the state. Gov. John Kasich, meanwhile, continued that thread of collaboration when he asked the state’s higher education leaders to work together to submit a single wish list for campus construction dollars as well as collaborating to hash out a new funding formula. “I don’t expect that (dynamic) to change wildly,” Dr. Hodge said. “Of course, Gordon Gee was of particular importance because of his special relationship with the governor and Ohio State, but I don’t expect that overall dynamic to change. I hope the new people coming on
quickly grasp that.”
Seeking ‘a different approach’ Trustees at the state’s universities moving forward with presidential searches are cognizant of the importance of selecting versatile individuals who can take charge of their respective institutions at a pivotal time in higher education. The state’s public institutions, for one, are grappling with a new funding formula that ties half of universities’ state dollars to graduation rates — a dramatic shift from the previous formula whereby colleges and universities were paid, for the most part, based on how many students they enrolled.
At the same time, universities locally and across the country are grappling with the infusion of online learning and questioning how it might disrupt how they’ve educated students for the last century. Colleges and universities are, more than ever, under pressure to rein in spending as the student debt crisis continues to grip the country. These challenges wouldn’t even cross the desk of a college president 15 or 20 years ago. “You have to be on top of the fact that the industry is changing so dramatically from something traditional to something that is so tech savvy,” Mr. Johnson said. “That requires a different approach.” ■
THEY’RE ON THE GO Six notable universities in Ohio recently announced changes at the top. A look at the departure dates for the six school presidents: ■ Luis Proenza, Akron, June 30, 2014 ■ Lester Lefton, Kent State, July 1, 2014 ■ Cynthia Anderson, Youngstown State, June 30, 2013 ■ Jerry Sue Thornton, Cuyahoga Community College, June 30, 2013 ■ Thomas Chema, Hiram, June 30, 2014 ■ E. Gordon Gee, Ohio State, July 1, 2013
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Under pressure The multifaceted, high-pressure job into which the college presidency has evolved is one of the reasons observers say the average length of a college presidency has inched downward in recent years. In 2006, the average tenure of a college president hovered at about 8.5 years, but that figure has since fallen to about seven, according to a 2012 report from the American Council on Education. “The demands are much higher. It’s a harder job,” said Miami University president David Hodge, who has served in his role since 2006. “We live in a much more contentious world and in a proverbial fish bowl. Everything is more visible. It’s incredibly more challenging to work in such an overtly public arena.” Still, Ohio, and particularly Northeast Ohio, has been graced with a handful of long-serving individuals such as Drs. Proenza and Thornton, though that might not be the case going forward should the trend of a shrinking presidency continue. But with a bevy of leadership changes on the horizon, the state’s collective higher education community is poised to lose some of its most vocal and experienced advocates. “I think it’ll bring new voices, new perspectives,” Dr. Proenza said. “With all of that, it takes a little bit of time for those voices to get their grounding and to begin to understand the context of how their voices need to be expressed. But I think it’ll be positive.” In recent years, the state’s public colleges and universities have started to work more collaboratively than in the past — a shift that was fueled during former Gov. Ted Strickland’s administration when he and the former chancellor of the Ohio Board of Regents, Eric Fingerhut, implored the state’s public institutions to work
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CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
AUGUST 12 - 18, 2013
LARGEST MARKETING FIRMS RANKED BY NUMBER OF FULL-TIME EMPLOYEES(1)
Name of firm Address Rank Phone/Website
Full-time local employees
Representative clients
Specialties
Top local executive Title
1998
Lenovo, Cisco, Microsoft, OfficeMax, Valvoline, hhgregg, Allergan, Bristol-Myers Squibb, Pirelli, Jo-Ann, UPS
Commerce, connected devices, segmentation, optimization, consumer products and retail, technology, health care, financial services, B2B
Mark Taylor COO
145
1989
Local and national brands
Research, advertising, social influence, content strategies, web and app development, email marketing, PPC, videos
Joe Kubic CEO
Fathom 8200 Sweet Valley Drive, Suite 100, Valley View 44125 (216) 369-2220/www.fathomdelivers.com
145
1997
Key Bank, American Greetings, Eaton, LifeLine Screening, Mead, Cleveland Clinic, Bissell, UsedCars.com
Full-service online marketing: B2B & B2C, health care, IT/software, education, manufacturing, government
Scot Lowry president, CEO
4
Marcus Thomas LLC 4781 Richmond Road, Cleveland 44128 (216) 292-4700/www.marcusthomasllc.com
120
1937
Akron Children's, Bendix, Diebold, FirstEnergy, GE, Goo Gone, MTD, Nestle, Swagelok, Ohio Lottery, Ohio Tourism, Sherwin-Williams, Westfield
Idea generation, brand planning, digital strategy and James B. Nash execution, experiential and social media marketing managing partner and analytics
5
Level Seven 4807 Rockside Road, Independence 44131 (216) 524-9055/www.lvlsvn.com
77
1979
Safeguard Properties, Steve Madden, Dix Communications, Lippert Industries, Detroit Diesel, OnHold Technologies, Icon Sports Management
Consulting-centric marketing and technology agency
6
Akhia 85 Executive Parkway, Suite 300, Hudson 44236 (330) 463-5650/www.akhia.com
54
1996
Quanex Building Products, Diebold, Lubrizol, GE Strategic marketing, lead generation, content Lighting, GE Appliances, Matco Tools, AmTrust Financial development, national and global public relations, Services, BabyBjorn, Akron Children's Hospital brand strategy, social media and digital strategy
Janice S. Gusich president
7
Brokaw Inc. 425 W. Lakeside Ave., Cleveland 44113 (216) 241-8003/www.brokaw.com
53
1992
Hotels.com, Samsung, Smokey Bones Bar & Fire Grill, Fazoli's, Wonka, Neuro Drinks, University Hospitals, FirstMerit Bank, Great Lakes Brewing, Dealer Tire, RTA
Brand strategy, digital and social media strategy/ execution, in-house production/video/animation, PR/events, local marketing
Tim Brokaw Gregg Brokaw co-CEOs
8
WhiteSpace Creative 24 N. High St., Suite 200, Akron 44308 (330) 762-9320/www.whitespace-creative.com
42
1994
American Greetings, Cleveland Marathon, Smiths Dairy, Kichler Lighting, Davey Tree, Akron Zoo, Parker Hannifin, OEConnection, Kent State
Marketing communications, public relations, website/interactive, content, market research, strategic planning, social media
Keeven White president, CEO
9
thunder::tech 3635 Perkins Ave., Studio 5, Cleveland 44114 (216) 391-2255/www.thundertech.com
38
1999
Munchkin Inc., Cliffs Natural Resources, Prestolite Performance, Grecian Delight, Lube Stop, DDR Corp., COSE, AC Milan, Baldwin Wallace University
Integrated marketing agency servicing local and national brands with advertising, communications, digital and design services
Jason Therrien president
10
HMT Associates Inc. 151 Orchardview Road, Seven Hills 44131 (216) 369-0109/www.hmtassociates.com
36
2002
Kraft Foods, Mondelez, Gallo Wines, Promoworks, Easter Seals, Hillshire Farms
Shopper marketing, consumer promotions, event marketing
Patti Conti president, CEO
11
Home Team Marketing 812 Huron Road, Suite 205, Cleveland 44115 (216) 566-8326/www.hometeammarketing.com
27
2001
Shurtech, AT&T Wireless, Wal-Mart, Marathon Oil, Farmers Insurance, American Family Insurance, Hellmann's, Burger King, National Guard
Integrated marketing and multimedia solutions for corporate partners and revenue generating opportunities for high schools, high school assoc.
Peter Fitzpatrick president, cofounder
11
OuterBox 325 S. Main St., Akron 44308 (866) 647-9218/www.outerboxdesign.com
27
2004
Oneida, Anchor Hocking, Ace Hardware, Jelmar, ABB, Groupe SEB, Waxman, Van Dorn Demag, Matco Tools, Orlando Baking, ATC
Full-service web development and ecommerce web design firm specializing in SEO, branding, custom development and online marketing
Justin Smith CEO
13
Point to Point Inc. 23240 Chagrin Blvd., Suite 200, Cleveland 44122 (216) 831-4421/www.pointtopoint.com
20
1982
Sherwin-Williams, Fauquier Health, United Way, FlavorSeal, Schindler Elevator, Avery Dennison
B to B digital marketing agency
Mark Goren president
14
Caler & Co. 66 E. Cuyahoga Falls Ave., Akron 44310 (330) 535-8053/www.caler.com
19
1984
ACRT Inc., Akron Area YMCA, AMHA, Bonnot Co., Brand development and management, selling L. Caler Buckeye Corrugated Inc., Edison Innovation Foundation, strategies, marketing planning and positioning, web Steven CEO Ferry Industries, Wrayco, Winer + Bevilacqua development, social media strategies, advertising
15
Insivia 5000 Euclid Ave., Cleveland 44103 (216) 373-1080/www.insivia.com
18
2003
Arnold Palmer, Positively Cleveland, Microsoft, Cleveland Clinic, Cresco, Calfee, Lilly Tremont
Integrated strategic marketing. Web, search, video, Andrew Halko social, print, software, usability, mobile, animation CEO and apps
15
Knox Marketing Inc. 1730 Akron Peninsula Road, Suite 201, Akron 44313 (330) 929-7700/www.knoxmarketing.com
18
1998
Summa Health System, Humility of Mary Health Partners, Citizens Bank, Parker Hannifin, EMH Healthcare, Premier Physician Services
Marketing and brand advertising, corporate identity, Rollin K. Godding III media planning/buying, interactive/web, TV and president radio, in-house editing, health care
15
Linkmedia 360 4700 Rockside Road, Suite 310, Independence 44131 (216) 447-9400/www.linkmedia360.com
18
2004
Fortune 1000 companies and regional companies
Online and mobile marketing, search engine optimization and marketing, content marketing, social media management
Dave Wolf managing partner
18
DigitalDay 41 E. Steels Corners Road, Cuyahoga Falls 44224 (330) 940-2565/www.digital-day.com
17
2001
Stanley Steemer, Parker Hannifin, Reynolds Packaging Group, RalCorp, Backyard Discovery, Schwebel's Baking Co., Hygenic
Full-service online marketing agency: website and promotions strategy and design, email through Silverpop, Sitecore CMS Certified
Mark Vitullo marketing director, owner
18
Proximity Marketing 2947 Interstate Parkway, Brunswick 44212 (330) 220-6100/www.proximitymarketing.com
17
1994
Underwriters Laboratories, Cleveland Clinic, Akzo Nobel, Web marketing agency specializing in email McGraw Hill Construction, Society of Manufacturing marketing, website design, content marketing, Engineers, Bliss Direct Media social media and mobile marketing
Mark Priebe president
20
Grabowski & Co. 10689 Cleveland Ave., Uniontown 44685 (330) 498-0753/www.grabowskiandco.com
16
1997
The Timken Co., Diebold, Absolute Health, Veyance Technologies, Akron Children's Hospital, Malone University, DeHoff Realtors & Development
Honing messages, writing compelling content, building strategic communications plans, designing award-winning campaigns
Sue Grabowski president
20
The Image Group 5405 Valley Belt Road, Suite B , Cleveland 44131 (216) 661-1011/www.theimagegroup.net
16
1981
American Greetings, Cleveland Clinic, Lincoln Electric, LifeBanc, Jim Beam, DDR
Brand management, trade show promotions, dimensional direct mail, apparel screen print and embroidery, promotional products, promotional kits
Brian Kingsmore, general mgr.; Bruce Felber, dir., marketing and sales support
22
Studiothink 1301 E. Ninth St., Suite 608, Cleveland 44114 (216) 574-9533/www.studiothink.net
15
2004
NA
Full-service, internal and external brand management and strategic communication planning, design and execution
Christine A. Lobas founder, CEO
23
Prodigal Media Co. 42 McClurg Road, Boardman 44512 (330) 707-2088/www.prodigalmedia.com
14
1994
V & M Star, Farmers National Bank, GBS, Cohen & Co., Branding, market research, interactive Sheely's Furniture and Appliance, Benesch, Youngstown development, creative services Business Incubator, Patriot Water
Jeff Hedrich president, CEO
24
Goldstein Group Communications Inc. 30500 Solon Industrial Parkway, Solon 44139 (440) 914-4700/www.ggcomm.com
11
1992
Keithley, Littelfuse, Harting, HeartSine, Weatherchem, Bud Industries, Radisphere, Abanaki, LJ Star, AT&F, Parker, HBM, Alliance Staffing, TEGAM
Technology, branding, lead generation, marketing automation, social media, public relations
Joel Goldstein president
24
Radius Marketing, Advertising & Public Relations 10883 Pearl Road, Suite 100, Strongsville 44136 (440) 638-3800/www.radiuscleveland.com
11
2002
The B'laster Co., J-B Weld, Mercy Hospital, Root Candles, Checkmate Marine, Lorain National Bank, Bike Brite
Digital media, brand marketing, web design, public relations, social media, audio and broadcast production, promotions
Randy Pindor president
26
BMA Media Group 4091 Erie St., Willoughby 44094 (440) 975-4262/www.bmamedia.com
10
1991
NA
Marketing, special events, TV and video production, Jerrod T. Borkey web, interactive and social media, promotional president merchandise
26
BTZ Brand 2019 Center St., Suite 104, Cleveland 44113 (216) 861-1500/www.btzbrand.com
10
1993
NA
Brand development, integrated marketing, design and PR, health care, nonprofit, education, B2B and B2C
Darcy L. Zehe managing partner
26
Spark Your Brand Inc. 15 Pleasant Lane, Chagrin Falls 44022 (440) 247-1555 /www.sparkyourbrand.net
10
2010
NA
Purposeful development and execution of POP, Plan-O-Gram's, merchandising, packaging, display's, WEB, loyalty/promotional
Randy L. Golenberg CEO
1
Rosetta Marketing Group LLC 629 Euclid Ave., 15th Floor, Cleveland 44114 (216) 896-8900/www.rosetta.com
401
2
Adcom Communications Inc. 1370 W. Sixth St., 3rd floor, Cleveland 44113 (216) 574-9100/www.adcom1.com
2
Year founded
David Sutula creative director
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Name of firm Address Rank Phone/Website
CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Full-time local employees
Year founded
Representative clients
Specialties
Top local executive Title
19
29
R solutions LLC 33730 Bainbridge Road, 2nd Floor, Solon 44139 (440) 735-9280/www.rsolutions.us
9
2002
Moen, Steris, Baskin-Robbins, Sherwin-Williams, LensCrafters, Pearle Vision, Dots, Tempur-Pedic, Standard Parking, Oatey, Waxman Consumer Products
Merchandising, packaging, sales promotions, incentive and loyalty programs, local store marketing, brand awareness
Rob Adelstein founder, principal
29
Sonnhalter 633 W. Bagley Road, Suite 4, Berea 44017 (440) 234-1812/www.sonnhalter.com
9
1976
Viega, Nissan Forklift (by UniCarriers), Osborn, Gerber, Molex, Brennan Industries, Buyers Products, Knipex
A communications firm marketing to the professional tradesman in the construction, industrial and MRO markets
Matt Sonnhalter vision architect
29
Studio Graphique Inc. 13110 Shaker Square, Suite 101, Cleveland 44120 (216) 921-0750/www.designwithdirection.com
9
1997
University Circle Inc., Kent State University, Tri-C, CSU, Heinen's, BrownFlynn, City of Kent, South Euclid, Gateway District, Nature Center at Shaker Lakes
Brand strategy and design, signage and wayfinding consulting and design, specializing in connecting people to place
Rachel Downey founder, president
32
Company 119 119 Main St., Chardon 44024 (877) 285-5280/www.company119.com
8
2004
Local and national brands
Digital marketing agency that utilizes new-media Klein channels and calculated strategies to achieve client Christian CEO goals
32
Pumphrey Marketing Inc. 4853 Galaxy Parkway, Suite A, Cleveland 44128 (216) 464-9687/www.pumphreymktg.com
8
1975
Buchi, CLBO, DealerPro, Drake, Garryson, Gleason, Industrial, full-service, project basis. Develop, Hautau, LTS, ODS, Pines, Romi, Stauff, Stellram Cutting implement integrated strategic marketing Tool Systems, Tru-Cut Saw programs. CatInteractive.
David C. Pumphrey president, creative director
32
Sampson/Carnegie Co. 1419 E. 40th St., Cleveland 44103 (216) 881-2556/www.smarterthinking.com
8
1992
Busch Funeral & Crematory Services, Baseball Heritage Museum, Burger Fresh, Ebys Evergreen Plantation, Serious brand strategies Don's Pomeroy House, Don's Lighthouse
Peter R. Sampson creative director, president
32
Skoda Minotti Marketing LLC 6685 Beta Drive, Cleveland 44143 (440) 449-6800/www.skodaminottimarketing.com
8
2011
Benefits Resource Group, Cincinnati Bell Technology Solutions, CLS Facility Services, Diskcopy, JET, Knowbase, Pension Advisors, Rockwell Automation
Jonathan Ebenstein managing director, partner
36
Benghiat Marketing & Communications 23240 Chagrin Blvd., Suite 445, Beachwood 44122 (216) 831-8580/www.benghiat.com
7
1983
AJ Antunes, Athens Foods, Eagle Group, Gendron, Integrated strategy and campaigns, branding, Hampton Farms, Medicus Surgical, Meherrin Agricultural websites, digital and print advertising, PR and & Chemical Co., North American/NVISION packaging
36
BFL Marketing Communications/GRA Group 1399 Lear Industrial Parkway, Avon 44011 (216) 875-8860/www.bflcom.com
7
1955
NA
36
Keynote Media Group LLC 201 E. Commerce St., Suite 199, Youngstown 44503 (330) 480-9881/www.keynotemediagroup.com
7
1977
Exal, Brilex Industries, HMHP, Cirque du Soleil, DSV marketing, design, video, consulting, Builders, Portage Co. Educational Service Center, YMCA Branding, communications, web design of Youngstown
39
Intrapromote LLC 591 Boston Mills Road, Suite 550, Hudson 44236 (866) 570-1785/www.intrapromote.com
5
1999
Four Seasons Hotels, Cleveland Clinic, Honda, Matco, Behr, Penske, Kraft Recipes
Organic SEO, social media marketing, content marketing, local marketing, online reputation management, community management
Angela Moore, vp, client operations; Brent Sharp, vp, finance
39
RH Blake Inc. 26600 Renaissance Pkwy., Cleveland 44128 (216) 595-2400/www.rhblake.com
5
1986
NA
Industrial products sold through distribution, power generation and air pollution control, products sold to pharmaceutical manufacturers
Bruce R. Blake president
41
Marketing Resources & Results Inc. 1521 Georgetown Road, Suite 103, Hudson 44236 (330) 656-9793/www.resources-results.com
4
1998
Professional service firms, contract manufacturers and consumer products companies
Marketing strategy and tactics serving business-tobusiness manufacturers and professional service providers
Christine Brown president
42
Maddox Marketing Group Inc. 964 Gavington Place, Akron 44313 (330) 945-6232/www.maddoxmarketing.com
3
1991
marketing/branding, optimized website Delta-Energy, Hometown Ohio, Hygenic, Massillon Cable Internet development, search engine marketing/SEO, TV, OSIA, Perfectly Expressed, REM Ohio, SIGO content creation, social media marketing
Rob Maddox managing director
43
Felber PR & Marketing 8963 Darrow Road, Twinsburg 44087 (330) 963-3664/www.felberpr.com
2
1993
Commercial Asset Preservation, Evergreen Resources, IT Support Specialists, JALEX Medical, TPC Wire & Cable, Makuta, Thogus, rp+m, SSP, AFV
Robert Felber president
Connecting brands to customers: branding, creative design, market research, SEO, strategic planning, visual marketing, websites
Russell Benghiat president
New product and brand launch specialists for Dennis J. Pavan home, outdoor and business products and services. president, CEO, Strategic brand marketing, web design BFL Marketing Richard M. Hahn president
Business-to-business manufacturers; public relations, design, collateral, social media and trade show coordination
Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. (1) Numbers as of June 30, 2013.
RESEARCHED BY Deborah W. Hillyer
LARGEST PUBLIC RELATIONS FIRMS RANKED BY NUMBER OF FULL-TIME LOCAL EMPLOYEES(1)
Name of firm Address Rank Phone/Website
Full-time local employees
1
Falls Communications Terminal Tower, 50 Public Square, Fl 25, Cleveland 44113 (216) 696-0229/www.fallscommunications.com
56
2
Dix & Eaton 200 Public Square, Suite 1400, Cleveland 44114 (216) 241-0405/www.dix-eaton.com
3
Year founded Representative clients
Specialties
Top local executive
1994
BioEnterprise, Calfee, DCA, Gunlocke, Huntington, Lincoln Media relations, marketing communications, Electric, Moen, Northwood, Sherwin-Williams, ShurTech, Tarkett, digital, crisis, creative services, IR, branding, Things Remembered, Vitamix, Walter & Haverfield senior counseling
Rob Falls president, CEO
50
1952
A.Schulman, Cleveland +, Diebold, Eaton, Forest City, Juniper Investor relations, crisis communications, Networks, LEEDco, Lincoln Electric, Lubrizol, PPG, Southwest marketing communications, media relations, Airlines, Swagelok, Sherwin-Williams, Veyance, United Healthcare digital communications, branding, design
Scott Chaikin chairman, CEO
Landau Public Relations 1370 W. Sixth St., 3rd floor, Cleveland 44113 (216) 574-9100/www.theadcomgroup.com
22
1983
communications, media and MeadWestvaco, Daimler Trucks North America LLC, Giant Eagle, Corporate community relations, social influence, product Kichler Lighting, RIDGID, Fund For Our Economic Future marketing support, crisis management
Hallie Fisher vice president of social influence
4
Stevens Strategic Communications Inc. 1991 Crocker Road, Suite 500, Westlake 44145 (440) 617-0100/www.stevensstrategic.com
19
1976
Eriez, GMi., Cleveland Vibrator, Ross Environmental, AmTrust, GlobalX, Ingenuity Fest, MMO, Materion, King Nut, Vorti-SIV, Pepple & Waggoner
Marketing and crisis communications, media training, social media, website development, video production
Edward M. Stevens chairman, CEO
5
Fahlgren Mortine 1100 Superior Ave, Suite 1600, Cleveland 44114 (216) 298-4646/www.fahlgrenmortine.com
14
1962
Associated Estates, Chart, Cliffs, Kent State University, Kidde, Materion, McDonald's Nottingham Spirk, Parma Community General Hospital, Sherwin-Williams, TransDigm
Advertising, branding, design, digital, investor Christy Bykowski relations, marketing communications, media vice president, planning/buying, media relations, social media managing director
6
PR 20/20 812 Huron Road, Suite 780, Cleveland 44115 (800) 920-1623/www.pr2020.com
12
2005
Hy-Tech Products, Jones Lang LaSalle, LivePerson, Mongoose Metrics, Security Self Storage, StreamLink Software, Westfield Insurance
Content marketing, social media, public relations, email marketing, marketing analytics, marketing automation
Paul Roetzer CEO
7
Sweeney 19106 Old Detroit Road, Suite 200, Cleveland 44116 (440) 333-0001/www.sweeneypr.com
10
1986
Acuity Brands, Chef's Planet, Cleveland APL, Diabetic Care Services, Insurance Board, Jo-Ann Fabrics, KSU, Lithonia Lighting, Westfield Shoppingtowns
Consumer, retail, commercial, industrial and institutional traditional, digital and social marketing and public relations
James B. Sweeney CEO
8
Roop & Co. 3800 Terminal Tower, 50 Public Square, Cleveland 44113 (216) 902-3800/www.roopco.com
8
1996
KeyBank, Fisher & Phillips, Ohio Aerospace Institute, Jacobs Real Estate Services, O'Neill Foundation, Grace Hospital, RPM International Inc.
Marketing communication, public relations, financial communication, graphic design
James J. Roop president
9
The Fairmount Group LLC 12434 Cedar Road, Suite 10, Cleveland Heights 44106 (216) 229-5220/www.thefairmountgroup.com
5
2006
communications strategy, branding, Dawn Hanson Preformed Lined Products, Pierre's Ice Cream Company, Energy Marketing online marketing, crisis communications, Avenue, Gay Games 9, Visiting Nurse Association of Ohio president functional excellence, social media
9
Hennes Paynter Communications 50 Public Square, Suite 3200, Cleveland 44113 (216) 321-7774/www.crisiscommunications.com
5
1989
Carpenter Technology, KSU, Lake Health, Lubrizol, MetroHealth, Crisis communications, media training and NEOMED, Riverside Co., Saint Ignatius, Interlake Steamship, Tri- litigation communications C, Westfield Insurance
11
LiefKarson Public Relations Ltd. 23533 Mercantile Road, Suite 118, Beachwood 44122 (216) 831-3767/www.liefkarson.com
4
1993
NA
12
Pecchia Communications LLC 6725 Pheasant Run Drive, Canfield 44406 (330) 720-6912/www.pecchiacomm.com
3
2005
relations, internal communications, American Greetings, BP America, Whirlpool, Harrington Hoppe & Media change management communications, Mitchell, Ankle & Foot Care Centers, Aim NationaLease communications strategy and materials
Dan J. Pecchia president, CEO
13
The Oppidan Group Inc. P.O. Box 24399, Cleveland 44124 (216) 771-9988/www.oppidangroup.com
2
1988
NewBridge Cleveland Center for Arts & Technology, Nicola, Media and communication counsel, publicity Gudbranson & Cooper LLC, The Raymond John Wean Foundation creation and management, public affairs
Tom Andrzejewski president
Professional public relations and marketing communications counsel for restaurant, hospitality, interior design, furniture and retail
Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. Business lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Numbers as of June 30, 2013.
Bruce Hennes, managing partner; Barbara Paynter, partner Crickett Karson owner
RESEARCHED BY Deborah W. Hillyer
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Grocer: Heinen says potential deal is â&#x20AC;&#x2DC;long way from being doneâ&#x20AC;&#x2122; continued from PAGE 3
owner of the Warrensville Heightsbased grocery chain, said he has discussed a location at the â&#x20AC;&#x153;M on 9th,â&#x20AC;? the redevelopment by Geis Cos. of the Ameritrust skyscraper and associated buildings as apartments, a hotel, retail and a new Cuyahoga County government building. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s certainly something they are looking at and we are looking at,â&#x20AC;? Mr. Heinen said in an interview with Crainâ&#x20AC;&#x2122;s Cleveland Business last week. But he cautioned, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a long way from being done.â&#x20AC;? The family-owned grocery has looked in the past as well at the present for a downtown presence. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve spoken to developers over
â&#x20AC;&#x153;From the 5,000-foot view, itâ&#x20AC;&#x2122;s the next logical place for development. There are lots of parking lots and other sites that could be more heavily utilized.â&#x20AC;? â&#x20AC;&#x201C; Allen Wiant, vice president of strategic development, PlayhouseSquareâ&#x20AC;&#x2122;s real estate unit the years,â&#x20AC;? Mr. Heinen said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve looked in the past and we are looking at it now. Weâ&#x20AC;&#x2122;re not even close.â&#x20AC;? Geis Cos. has mentioned a generic â&#x20AC;&#x153;food useâ&#x20AC;? as part of the first floor of the skyscraper and the
attached historic banking room on the southeast corner of East 9th Street and Euclid Avenue. In an email about talks with Heinenâ&#x20AC;&#x2122;s, Greg Geis, one of two brothers who own the Streetsborobased construction and real estate development concern, said no deals are signed with any users for the site. â&#x20AC;&#x153;We are currently working through complicated financing and have made no deals yet,â&#x20AC;? Mr. Geis wrote. â&#x20AC;&#x153;We hope we will complete our financial package in the coming weeks and at that time will be able to discuss project details.â&#x20AC;? Mr. Heinen spoke bluntly of the challenges in downtown, despite the high occupancy rate of down-
town apartment and the plethora of proposed loft conversions and the Flats East Bank Neighborhood apartment building. â&#x20AC;&#x153;We have some experience with smaller stores and none with urban stores,â&#x20AC;? Mr. Heinen said. â&#x20AC;&#x153;We have a 40,000-square-foot store in Chicago that is smaller than our typical store of 42,000 or 43,000 square feet,â&#x20AC;? he said. â&#x20AC;&#x153;We need a combination of things for it: the right location, financial numbers and population. Occupancy is virtually full and units are on line that will clearly add people, but projects start and stop. Will (the city) need to continue to do more? Yes. Do the ones slated have to actually happen? Yes.â&#x20AC;?
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Heinenâ&#x20AC;&#x2122;s is getting help in sizing up its prospects. Downtown Cleveland Alliance, the nonprofit that maintains, promotes and markets the city to new residents and businesses, recently conducted a focus group on a downtown grocery, according to tweets by people who attended the session. The meeting was attended by 23 people, according to DCA spokeswoman Gina Morris. Ms. Morris declined to comment on the content of the session but referred Crainâ&#x20AC;&#x2122;s Cleveland Business to DCAâ&#x20AC;&#x2122;s â&#x20AC;&#x153;client,â&#x20AC;? the phone number for Heinenâ&#x20AC;&#x2122;s marketing unit. Another part of the downtown neighborhood, christened the cityâ&#x20AC;&#x2122;s Nine12 District, is pursuing a grocery concept to give downtown residents a supermarket within walking distance. Concepts for a downtown grocery also are on the wish list for the area on the northern side of Chester Avenue east of East 13th Street, perhaps incorporating the historic, art deco Greyhound Station at 1465 Chester. Allen Wiant, vice president of strategic development for PlayhouseSquareâ&#x20AC;&#x2122;s real estate unit, said that area is a natural next step for aiding redevelopment of the cityâ&#x20AC;&#x2122;s Theater District. â&#x20AC;&#x153;From the 5,000-foot view, itâ&#x20AC;&#x2122;s the next logical place for development,â&#x20AC;? Mr. Wiant said. â&#x20AC;&#x153;There are a lot of parking lots and other sites that could be more heavily utilized.â&#x20AC;? A grocery store could be accommodated at Greyhound and the city parking lot next door, and Mr. Wiant noted that the cavernous interior of the busy bus station is â&#x20AC;&#x153;great for a grocery store.â&#x20AC;? The area may also lend itself to a mixed use development as it is near existing and proposed apartments. PlayhouseSquare owns no land on the block but hopes to play a role in promoting redevelopment. It has approached Greyhound with an idea if it is interested in moving, which was neither embraced nor rejected. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re planting the seed,â&#x20AC;? Mr. Wiant said. Greyhound did not return an email and phone call last week.
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A source familiar with the situation, who did not want to be identified because he is not authorized to discuss it, said the push is on to get a Whole Foods Market or similar small, upscale grocer in that area or downtown. Whole Foods is widely rumored as a candidate for a downtown Cleveland location, and Mr. Wiant said the upscale Whole Foods grocery chain often is thought of as a viable prospect. â&#x20AC;&#x153;You have to find someone who has an urban model or a desire to create it,â&#x20AC;? he said. He said PlayhouseSquare talked to Heinenâ&#x20AC;&#x2122;s several years ago. If the grocer commits to the Geis project, he said, â&#x20AC;&#x153;That would be a game changer. Weâ&#x20AC;&#x2122;d welcome them.â&#x20AC;? Whole Foods, which is preparing to add a Rocky River store this year in addition to its University Heights and Woodmere Village locations, also has a store in downtown Detroit. Whole Foods also did not respond to an email and a call last week. â&#x2013; (Kathy Carr, who writes Crainâ&#x20AC;&#x2122;s â&#x20AC;&#x153;Whatâ&#x20AC;&#x2122;s Cookingâ&#x20AC;? blog, contributed to this story.)
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Bold: Dr. Boutros admits aiming for TMW: Move will be another 2013 profit of $15 million is a stretch business hit for Beachwood continued from PAGE 3 continued from PAGE 3
He also has laid out a series of aggressive goals he believes the health system can meet in 2013, including finishing the year with a $15 million profit despite ending the first quarter about $6 million in the hole. Dr. Boutros and the board also hashed out a new performancebased incentive plan for MetroHealth executives, a move that comes just a few months after the health system was chided by Cuyahoga County Executive Ed FitzGerald, who questioned a horde of hefty bonuses awarded to the health system’s top brass despite the organization’s money-losing operations. Dr. Boutros wouldn’t share specifics of the new plan, as he wanted to brief county officials first, but he said the new system would reward the system’s executives based on the institution’s overall performance. The common thread in all these actions, according to Dr. Boutros, is his desire to position MetroHealth in a way that it receives the respect it deserves. “Most public health systems in the nation are severely criticized for their bureaucracy, their clinical outcomes, their poor service and are usually financially weak,” Dr. Boutros said during a recent interview with Crain’s. “What are we going to be known for? Just the opposite.”
Boutros’ aggressive vision Dr. Boutros is aware that many of the goals he’s eyeing could be tough to reach. For one, he said finishing 2013 with $15 million in net operating income is a stretch, although the health system’s finances have rebounded slightly as it was $2.7 million in the black in the month of July thanks to a surge in outpatient visits and the launch of the Medicaid waiver program, which expanded insurance coverage to thousands of uninsured in Cuyahoga County. Other goals include increasing patient satisfaction rates — as measured by the HCAHPS survey — from the 15th to the 45th percentile, achieving the top performance on every quality measure and being certified as an accountable care organization by the Centers for
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MetroHealth president and CEO Dr. Akram Boutros has taken “complete and total responsibility of what is going on here,” according to the president of the hospital’s employee union. Medicare and Medicaid Services. Asked whether it was wise to display publicly such aggressive performance metrics, Dr. Boutros countered by saying it was “absolutely the right thing to do for us to state them and not meet them.” “How motivating is it for the team when you’re all working on something and you don’t make it?” Dr. Boutros said. “The greatest athletes have only performed extraordinary feats after failures.” Touting such clearly stated goals is a different — and welcome — way of doing business at MetroHealth, said Julie Albers, president of the MetroHealth employee union. Ms. Albers, for one, said she was shocked Dr. Boutros has asked for her input on a number of occasions since his arrival. “He takes complete and total responsibility of what is going on here,” Ms. Albers said. “If we don’t set the goals, we’re not going to try to attain them.” “He’s really a fantastic individual,” Ms. Albers added. “For the first time, we have hope moving
Denise Donaldson (216) 522-1383 (216) 694-4264 DDonaldson@crain.com
forward that we’ll actually be OK.”
A renewed main campus Although he has a substantial list of immediate goals he’d like to tackle, Dr. Boutros’ biggest task over the next several years will be reshaping the health system’s aging main campus off West 25th Street in Cleveland. Before Dr. Boutros came on board, MetroHealth officials pegged the overhaul as potentially costing as much as $650 million by 2017 and insisted the project would involve tearing down the hospital’s iconic patient towers. While Dr. Boutros said the health system still plans to build a new state-of-the-art inpatient facility, he wasn’t so sure it would involve tearing down the towers. He said he is evaluating whether they could be repurposed for outpatient use, although at least one of the towers is likely to be torn down. “If at all possible, I’d like to preserve them,” Dr. Boutros said. “They really are iconic. They are MetroHealth.” ■
since 2000, when it employed just 100 nationally. The move follows a regularly repeated scenario: big publicly traded corporation buys local company and soon upgrades to newer, more corporate offices. Trimble, which produces wireless technology to manage field and mobile workers more efficiently, bought TMW in fall 2012. Today, TMW describes itself as a developer of enterprise software for transportation service companies and logistics operations. The company has offices in seven cities in the United States and Canada, and it has more than 2,000 customers, which operate fleets ranging from beverage trucks to municipalities. However, the gain for Mayfield Heights brings a loss for Beachwood. Jim Doutt, Beachwood’s director of economic development, said the eastern suburb’s focus will be on what’s next. “We’ll make our best efforts to work with the (Beachwood property owners),” Mr. Doutt said. “Beachwood is a great place to do business. We’re working on intriguing opportunities. We’ll have some good headlines.”
Changing times Steve Egar, owner of a Beachwood-based commercial realty brokerage, said the TMW move is related to an alarming trend for the suburb long known as the region’s strongest office submarket. TMW is staying on the East Side, but former Beachwood companies such as BrandMuscle Inc. and Rosetta migrated downtown, and several East Side firms have landed in the Rockside Road office market the last few years. “There was a time when people in Beachwood and on the East Side stayed on the East Side,” he said. “That no longer seems to be the case.” Moreover, he noted that although the Chagrin Boulevard office market shrank with the demolition last year of the Commerce Park I, II and III office buildings for an apartment project, there are about a halfdozen large empty offices on or near Chagrin that are more than
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“We’ll make our best efforts to work with the (Beachwood property owners). Beachwood is a great place to do business. We’re working on intriguing opportunities. We’ll have some good headlines.” – Jim Doutt, director of economic development, Beachwood 20,000 square feet in size. Filling empty space at the TMW Chagrin property will require a competitive rent, he said. The Science Park space is less problematic: many east suburban users seek high end offices of about that size. Mr. Egar, who played no role in the TMW lease, said the Chagrin Boulevard building has the advantage for a company needing public transportation of being near the Greater Cleveland Regional Transit Authority train station and shopping center at Van Aken Boulevard and Warrensville Center Road. News of the impending addition of TMW came as a surprise to Mayfield Heights Mayor Anthony DiCicco. “I hope it’s true,” the mayor said in a phone interview last Thursday, Aug. 8. “Our building department has not had contact with them. We haven’t gotten an application for (municipal) incentives. Ironically, the Mayfield Heights City Council passed and the mayor in June signed legislation creating a job creation and incentive program that allows a company to receive a payment from city fees that will reduce the sting of municipal income taxes in the suburb. Mayor DiCicco said the city created the incentive after a different company than TMW had approached the city anonymously to seek the incentive common among Northeast Ohio cities. That company is no longer conducting a search, he said. Mary Izant, a vice president in CBRE Group Inc.’s Cleveland office group, acknowledged she represents Eastpoint I, but declined comment on the TMW transaction. ■
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THEINSIDER
THEWEEK AUGUST 5 - 11 The big story: American Greetings Corp. returned to its roots and is again a family-owned business, following the Aug. 9 completion of the acquisition of the company by the Weiss family. Following shareholder approval of the transaction on Aug. 7, the Weiss family purchased the Brooklyn-based greeting card maker for $19 per share in cash. The company’s Class A common shares were delisted from the New York Stock Exchange. The deal close comes nearly a year after the offer was first made by the Weiss family in late September 2012, and the price the family paid is 10% higher than the first price it offered — $17.18 per share. Big shoes to fill: The leaders of two major Northeast Ohio institutions announced they would retire next year. Sandra Pianalto will retire from her post as president and CEO of the Federal Reserve Bank of Cleveland in early 2014, capping a career with the Fed that has spanned three decades. Meanwhile, University of Akron president Luis Proenza said he would retire as president on June 30, 2014. See editorial, Page 8. End of an era: Sammy’s, one of Cleveland’s best known restaurants-turned-caterers, is gone. A note on the company’s website stated: “On August 5, 2013, City Life Inc. d/b/a Sammy’s announced it has made the decision to close its facilities. We are currently in negotiations with a local caterer to transition our existing clients.” The original restaurant at 1400 W. 10th Street closed as a restaurant years ago. In recent years, the company controlled catering at more than 10 locations, including the Metro Club atop the Huntington Building and at Severance Hall. Strongly motivated: BioMotiv, a drug de-
REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
In digital world, reporters sometimes work without net
■ When they launched a new small-mid cap strategy almost a year ago, executives with
Ancora Advisors LLC in Beachwood expected it to take two to three years to attract $100 million to the strategy. It will take less than one, according to Dan Hyland, director of institutional sales for the registered investment adviser. “That (two to three years) would be a more normalized ramp, even for somebody with a successful track record,” Mr. Hyland said. “The reception to the (pitch) really has been better than what we had even hoped.” The dollars Ancora is investing in small and mid cap stocks both through a mutual fund that was launched Jan. 2 and through separately managed accounts will exceed $100 million “shortly,” Mr. Hyland said. He attributes that quick success to Dan Thelen and the track record he boasts. Mr. Thelen joined Ancora in September 2012 to launch the firm’s small-mid cap strategy. He most recently worked for Boston-based invest- Thelen ment firm Loomis Sayles & Co. “At that level ($100 million), we become more attractive to institutional investors,” Mr. Hyland said. “Being accepted in the institutional arena would be the equivalent of playing in the Major League. The pinnacle of investing is being able to stand up to the scrutiny and then perform to the institutional investor.” Endowment funds and pension plans are examples of institutional investors. The growth means Ancora’s one-man of-
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■ Feelings in the Plain Dealer newsroom have been raw for months, since the Plain Dealer Publishing Co. announced job cuts and a reduction, to four from seven, in the number of days the newspaper will be home-delivered. The loss of jobs created the most angst, of course. But a change in the way news flows to readers at Cleveland.com, which is replacing the print edition as the company’s flagship, also is worrying to many of the newspaper’s journalists. The website is a part of a new sister company, the Northeast Ohio Media Group, or NEOMG. Production of the newspaper, and many business and administrative functions, will remain with the Plain Dealer Publishing Co. As part of the transition to what the industry calls digital first news, readers will see some stories even before they are edited — “Breaking news stories are written and posted immediately,” stated a recent job posting for a suburban crime reporter. Although reporters often squabble with editors, they also see a second, and even a third, set of eyes on a story as safeguarding the accuracy and integrity of what they report. Thus, some have taken to calling NEOMG, “No Editing, Oh My God.” — Jay Miller
Ancora’s pitch was a hit with investors
velopment accelerator that aims to license dozens of pharmaceutical technologies from research institutions all over the world, raised $25 million in new capital from investors. The company added Nationwide Mutual Insurance Co. and “several individual investors” to its founding investors, University Hospitals of Cleveland and the Harrington family. The $25 million in new investments bring BioMotiv’s total capital from investors to $46 million.
In the money: Invacare Corp., a maker of home and long-term medical care products in Elyria, sold medical recliner maker Champion Manufacturing Inc. to a California private equity firm for about $45 million. Invacare expects to receive about $43 million in net profits from the sale, which it will use to reduce its debt. The buyer was Levine Leichtman Capital Partners of Los Angeles.
Common goals: The Cleveland Clinic and ProMedica, a Toledo-based health system that operates 11 hospitals and more than 310 facilities, signed a memorandum of understanding to develop what the two systems characterized as an affiliation that will better position both organizations to navigate the evolving health care landscape. As part of the relationship, the Clinic and ProMedica said they will work together to create a clinically aligned network that will provide quality, low-cost care. Here’s an idea: The John S. and James L. Knight Foundation provided a $600,000 grant that will raise the profile of The Civic Commons, a civic engagement consultancy, by making it a program of public radio and television broadcaster ideastream. Civic Commons will move to the Idea Center at PlayhouseSquare, home of ideastream. Mike Shafarenko, who developed the concept for Civic Commons and who has been leading the program since February 2011, will continue to do so as director of Civic Commons at ideastream.
Excerpts from recent blog entries on CrainsCleveland.com.
Yes, they still have books, too
COMPANY: Cleveland Chemical Pest Control Inc. OCCASION: Its 110th anniversary Originally formed in 1903 as a service branch of the Chamberlain-Haber Chemical Co. that specialized in installing ant and roach insecticide, Cleveland Chemical Pest Control has been owned and operated by the Kirchner family since 1929. “When the stock market crashed in 1929 the original owner decided to sell,” said Bill Kirchner, a fourth-generation owner of the company, in a statement. “My great-grandparents bought the company for $2,500 to be paid in $100 installments. Not a bad deal.” The company’s services range from commercial fly-proofing systems to exterior power spraying techniques. “We’ve been around a long time, and we wouldn’t have been able to do it if our company wasn’t willing to adapt and identify new ways that we can meet the needs of our customers,” Mr. Kirchner said. Several generations of Kirchners have worked at Cleveland Chemical Pest Control, with some playing an active role in local, state and national trade organizations, he said. “Four of us have been president of the Cleveland Pest Control Association; three of us have been president of the Ohio Pest Management Association; and two of us have been directors of the national trade organization,” Mr. Kirchner noted. “We keep ourselves active on issues on the national, state and local levels.” For information, visit: www.ClevelandChemical.com.
■ Libraries are eager to “maintain their digital street cred” as the world shifts away from analog technology, The Washington Post reported, and the Cleveland Public Library is among the leaders in one particular subset of the effort: making 3-D printers available to patrons. Nicholas Kerelchuck, manager of the Digital Commons at the Martin Luther King Jr. Memorial Library in Washington, D.C., told The Post that the 3-D printer there is the “rock star” of the space. Because the technology is so new, Mr. Kerelchuck said, staff members have figured out a lot of it on their own. “They also relied on the experiences of other public libraries to determine the best way to roll out the printers to the public, including visiting the Cleveland Public Library to see how patrons interacted with the unit there,” The Post reported. Cleveland and D.C., The Post reported, are at the vanguard of “an expanding club of public libraries making 3-D printers available to patrons, often as part of a ‘maker lab’ type environment.” It said libraries in suburban Kansas City; Westport, Conn.; and Sauk City, Wis., are joining the trend.
You’re making us blush ■ Up for a little Cleveland boosterism from the national press? You’ll find it in New York magazine, which said Cleveland “is transforming into a thriving art hub thanks to two stunning new museum openings and a growing number of galleries.” The magazine loves MOCA Cleveland’s gorgeous new building, as everyone does, and also gives a big thumbs-up to the new Transformer Station, the contemporary art
fice in Birmingham, Mich., a Detroit suburb, needs to grow, too: Mr. Hyland expects to add an analyst by the end of the year to assist Mr. Thelen, and possibly one or two people next year in Beachwood in business development roles. Most of the $100 million Ancora has attracted to its new strategy is in 17 separately managed accounts for institutional and high-net-worth individuals; roughly $33 million is in the mutual fund itself, Mr. Hyland said. — Michelle Park
Cleveland’s O-M takes detour into Berlin ■ Call it another sign of the globalization of Northeast Ohio real estate practices. Typically, brokerages’ exclusive leasing assignments are close to home, but OstendorfMorris Co.’s corporate services unit recently landed one at Building Berlin in Germany. The Berlin structure combines a contemporary glass-walled building with another building constructed in 1877 as the headquarters for the Imperial Telegraph office. Diana Golob, senior vice president in OM’s corporate services unit, said the company undertook the assignment because its German-based realty partner, Corpus Sireo, sought a broad marketing approach for the structure, partially owned and occupied by client Deutsche Telekom. “We took it on because it’s a fabulous building,” she said. To place it in geography and history, Ms. Golob notes it is near the Brandenburg Gate and survived aerial bombing in World War II’s Battle of Berlin. — Stan Bullard
space that opened in February. “Formerly an electricity-converter building, the structure now houses selections from the photography collection of Fred and Laura Ruth Bidwell, two former advertising executives, as well as temporary exhibitions curated by the Cleveland Museum of Art,” New York noted. “The original brickwork and chains contrast with a new addition made of dark-gray polished concrete, providing an industrial-chic setting for shows like ‘Excerpts From Silver Meadows,’ a dark, jarring photo essay by Todd Hido.”
The beautiful people ■ TheHill.com, which covers Capitol Hill, every year goofs off a bit and publishes a list of the 50 most beautiful people in D.C. At No. 9 on this year’s list is Julie Goldfarb of Chagrin Falls, a legisla- Goldfarb tive aide for Rep. Andy Harris, a Republican from Maryland. Ms. Goldfarb, 27, is the daughter of Gary and Kathleen Bliss Goldfarb and a 2004 graduate of Kenston High School. She graduated summa cum laude from East Carolina University in 2008 and earned her law degree from Elon University. TheHill.com said she first arrived in Washington as a fellow for former U.S. Sen. George Voinovich and returned to D.C. after finishing law school. A self-proclaimed “museum nerd” and “foodie,” Ms. Goldfarb told TheHill.com that she has found the perfect place to enjoy those things while staying in shape in Washington. “D.C. is just a healthy place in general,” she said. “It encourages you to walk. There are a ton of restaurants that do all-natural, organic food. It is an easy city to be healthy in.”
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JUST HOW MUCH LUXURY WERE YOU THINKING? Mercedes-Benz of North Olmsted
569
$
Porsche of North Olmsted
Everything around you seems better when everything around you is better. Lease for $599/month.
All-New 2014 Mercedes-Benz E350 4MATIC®All-Wheel Drive
Per month lease for 36 months. $4,414 due at signing. ($3,050 down payment, $795 acquisition fee, $569 first payment)
599 24
$
$54,400 MSRP, 7-Speed Automatic Transmission, Premium 1 Package: Rear View Camera, mbrace2™, COMAND® w/Navigation and Voice Control, iPod®/MP3 Media Interface, SiriusXM® Radio w/ 6 Mos. Service, Power Rear-Window Sunshade, 18” AMG® Wheels, Sport Package, harman/kardon® Logic 7® Surround Sound System, Heated Front Seats
/ MONTH MTHS
$1,494 due at signing Excludes tax, title and doc fee. No security deposit required.*
Porsche of North Olmsted A Part of Collection Auto Group 28400 Lorain Road, North Olmsted, Ohio 44070
Mercedes-Benz of North Olmsted
855-218-1288 Open 24/7 at: www.clevelandporsche.com #1 PORSCHE DEALER IN OHIO
28450 Lorain Road . 888-450-8064 . www.mbohio.com *Financing or leasing through Mercedes-Benz Financial is subject to tier one credit approval. 2014 E350 – 36 months, 10,000 miles per year. 25¢ per mile thereafter. $4,414 due at signing. Doc fee, tax and title additional. No security deposit. In-stock units only or while supplies last. Lease offers expire 8/31/13. Available to qualified customers only. © Mercedes-Benz USA, LLC.
Airport Infiniti
Maserati of Cleveland Come Celebrate the Grand Opening of our New Showroom and Service Center!
THE ALL-NEW MASERATI QUATTROPORTE S Q4 WITH INTELLIGENT ALL-WHEEL DRIVE.
•
Infiniti of Beachwood
Infiniti’s Best Ever Sports Sedan is Now Available!
$399 2014 Q50 THE ALL-NEW
2014 Quattroporte S Q4 STARTING AT
$599 per month for 24 months at 5,000 miles per year, .30¢ per mile after 10,000 miles, $1,494 due at signing (First payment $599, acq. fee $895 and $0 cash down). Tax, title and doc fee additional. Payment or upfront fees do not include sales or county tax. Financing is subject to credit approval. Stock# PD114092. MSRP $58,010. Security deposit waived. Offer good through 8/31/13. ©2013 Porsche Cars North America, Inc. Porsche recommends seat belt usage and observance of all traffic laws at all times. Vehicle shown includes optional equipment available at additional cost.
$102,500
AWD PREMIUM SEDAN
*Per month lease for 39 months, now ONLY $4,130 due at signing. Airport Infiniti 855-778-7732 Infiniti of Beachwood 855-409-9544 Infiniti of Akron (Coming Soon)
Maserati of Cleveland 28300 Lorain Road, North Olmsted 888-918-7931 www.maseraticleveland.com
Cleveland
clevelandinfiniti.com
*Tax, $250 documentary fee, and license plates fees additional. 10,000 allowable miles per year, $0.25 thereafter. No security deposit required, MSRP $42,455. With approved credit thru IFS. In-stock units only or while supplies last. Disposition fee due at term. of lease. See participating retailer for details. Offer ends 8/31/13. ‡ Subject to tier 1 credit score of 700 or higher.
WHERE ABOVE AND BE YOND COMES STANDARD.
www.theCAG.com
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THE ALL-NEW 2013 320i xDRIVE Well-equipped including features such as Automatic Transmission, Bluetooth, Moonroof, Comfort Access keyless entry, Power front seats with driver seat memory, Satellite radio, with 1 year subscription, Auto-dimming interior and exterior mirrors, Storage package, Universal garagedoor, opener, Lumbar support. Lease From:
$
/ 36 mo. * 289 mo.
BMW Cleveland
6135 Kruse Dr. • Solon • 1-866-210-6710 www.BMWCleveland.com
BMW Cleveland
* Due at delivery $289 First payment, $3,015 Down payment, $725 Acquisition fee, $0 Security Deposit and *$500 Loyalty Cash. Based on MSRP of $39,725.00. Vehicle may need to be ordered. Total Lease payments are $10,404.00. Excludes tax, title, license and registration fees. Program available to qualifi ed customers and not everyone will qualify. Subject to credit approval. 30K total miles allowed. Contact BMW Cleveland for details. Dealer contribution may affect terms. *$500 Loyalty Cash available for returning BMW customers only. 1Which ever comes fi rst. For complete details on BMW Ultimate Service ® visit bmwusa.com/ultimateservice. © 2013 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks. Expires August 31, 2013.
BMWCleveland.com 440-542-0600
The Ultimate Driving Machine®
RANGE ROVER EVOQUE
120 AWARDS AND COUNTING. A JOURNEY 65 YEARS IN THE MAKING.
2014 F-TYPE V6
*
Lease for $799 x 39 months with $3,995 down plus bank, doc and license fees and local taxes at delivery. 6137 KRUSE DR., SOLON (440) 542-0601 www.jaguarcleveland.com
$399 PER MONTH FOR 36 MONTH LEASE $2,995 DOWN, BANK FEE, DOC FEE, PLATES. $4,455 DUE AT DELIVERY PLUS TAX
LAND ROVER SOLON CLEVELAND
6137 KRUSE DR., SOLON • 1-866-210-6707 www.landroversolon.net
* 39 month lease/10,000 miles per year. $3,995 cap reduction plus first payment, bank fee, doc and plates. $5,854 total due at delivery cash or trade plus tax. With tier 1 credit thru Jaguar Financial Services. Good until 8/30/13.
* Lease rates shown for 2013 Range Rover Evoque to qualified buyers through US Bank. $2,995 down plus bank fee, doc fee, license fees and tax. Total due at delivery $4,455 plus local taxes. Actual rates and terms may vary. All amounts shown are estimates, retailer sets actual amounts. Lessee responsible for insurance, maintenance, excess wear and excess mileage over 40,000 miles at $0.30 /mile. Based on MSRP of $42,040 (including destination and delivery). Lessee has the option to purchase vehicle at lease end at price negotiated with retailer at signing. For special lease terms, take new vehicle delivery from retailer stock by 8/30/13. Termination fee may apply. See your Land Rover Retailer or call 1-800-FIND-4WD for qualifications and complete details. ©2013 Jaguar Land Rover North America, LLC.
6135 Kruse Dr. • Solon • (440) 542-0600 • www.DavisAutomotive.com