BUSINESS M A G A Z I N E Manufacturer & Business Association
The ‘Hometown Bank’ Brings the ‘Hometown Touch’ to Business Banking / Page 12
VOLUME XXV, NUMBER 4
APRIL 2012
New Newfor for2012 2012 •• Addition Additionofofsecond secondtrain train • •Modernization ModernizationofofComet CometCoaster Coasterwith withmagnetic magnetic braking brakingsystem, system,allowing allowingforforaddition additionofofsecond second coaster coastertrain train • •New New“Happy “HappySwing” Swing”children’s children’sride rideforforthe the whole wholefamily family •• Addition Additionofofsecond secondloading loadingarea areaforforthe thepopular popular Whacky WhackyShack Shack • •New Newarcade, arcade,midway midwaygames, games,and andfree freelive live musical musicalshows shows
Why Whyaapicnic picnicatatWaldameer? Waldameer? • •Excellent Excellentopportunity opportunitytotoget gettotoknow knowyour your employees employeesand andtheir theirfamilies familiesand andforfor them themtotoget gettotoknow knowyou. you. • •Great Greatway waytotocelebrate celebrateyour yourcompany’s company’s anniversary anniversaryororother othermilestones. milestones. • •Makes Makesa agreat greatreward/incentive: reward/incentive: production productiongoals, goals,safety, safety,etc. etc.
12
April 2012
Blue Ocean Strategy Center
EDITORIAL >
FEATURES >
Why investing in workplace wellness certification is a valuable tool for your organization.
Scott Hanaway, president of Meadville, Pennsylvania-based Tech Molded Plastics, Inc., addresses the recent expansion and major investments of this ISO 9001:2008 certified injection molded plastics company.
7 / Health Matters
3 / Spotlight
ROSE GANTNER, Ed.D.
9 / Legal Brief
How changes to the first-to-file standard will impact U.S. patent applications. JON WOODARD
11 / Blue Ocean Strategy
Discover the three characteristics that are critical to testing your blue ocean strategy before implementing it. ANGIE ANGUS
Events
Training Graduates 2012 Spring a series & Business Association recently held The Manufacturer than 100 graduates of its of luncheons to recognize the more training programs. professional development and computer coverage. Visit www.mbabizmag.com for complete
Blue Ocean Strategy Center
– Erie Access Application Specialist Melissa Lasky, Millcreek
From left: Kathy Zurinsky and Erie Insurance Township School District; Tom Laskowski, Computer Training Group; and Amy Pontillo, Association
Lean-Six Sigma – Erie Branden King, Corry From left: Ken Bunting, AmSafe; Ray Davis. Manufacturing Company; and Instructor
HR Essential Certification Series Erie Michele Belle, From left; Marc Johnston, Channellock; Association Mercyhurst University; and Robyn Hopper, HR specialist.
– HR Essential Certification Series Erie Jennifer Chase, Medical From left: Kelli Kaliszewski and Association HR Associates of Erie; and Robyn Hopper, specialist.
manager. Insurance Group; Not pictured: Tammy Altsman, Erie Health; Betsy Janice DiLuzio, Stairways Behavioral Center; Brett Dziurzynski, Erie Veterans Affairs Medical Lopez, CMI-EPTI LLC; Ketler, Webco Industries, Inc.; Holly Center; Bonnie Michael Post, Erie Veterans Affairs Medical and Margie Unick, Steffey, Perry Mill Supply Company; Gannon University.
Front row, from left: Robyn Lake City. Manor; and Heather Evans, AirBorn Eileen Meadville Area Federal Credit Union; Back row, from left: Samantha Christian, Ohmer, Sight Center of NWPA. Reynolds, Accuride Erie; and Penny Erie Aviation. Not pictured: Garrett Lindahl, Bridport
Front row, from left: Dave Murphy Marlene Connie McLaughlin, Debra Ehrhart, Second row, from left: Michael Young, Stacy Maher, Matric. Haupt, John Tippel, Renee Hoovler and Hook, Travis Shawn Whitehair, Donnie Cussins, A.J. Back row, from left: Josh Andres, Matric. Graham, Kim Wentling and Ed Goethe,
Series – Meadville Ainsworth Pet Certified Supervisory Skills Advanced Cast Inc.; Kevin Malliard, – Butler Leadership for Team Leaders and Valerie Deb Pfabe and Rene Ball, II-VI, Inc.; – Erie HR Essential CertificationHRSeries specialist; Tammy Sparber, C&J Industries;
From left: Robyn Hopper, Association and Lori Hospital; Sheila Payne, Zurn Industries; Crystal Simmons, Millcreek Community Ann Tate, Presque Isle Downs & Casino.
2012 22 < www.mbabizmag.com < April
Not pictured: Excel Application Specialists LLC; Betsy Dziurzynski, Curtze Co.; Jon Bivens; MVS Saegertown Gacka, General Electric Paul Erie Veterans Affairs Medical Center; Inc.; DeVona Henderson, Company; George Godsave, Channellock Mike Kennedy, Eastern P.C.; Schaffner, Knight, Minnaugh & Co., Veterans Affairs Medical Resevoir Services, Inc.; Joan Klein, Erie and Associates LLP; Margie Center; Suzan Taylor, McGill Power Bell Zeiss-Pesch, Advanced Unick, Gannon University; and Melanie Specialist Senad Rakovic; and Placement Services; Word Application Holly Lopez, CMI-EPTI, LLC. Excel and Word Application Specialist
Marquette’s executive management team shares how the “The Hometown Bank with the Hometown Touch” has grown strategically while helping to better serve the banking needs of businesses in Erie and Crawford counties.
18 / Election 2012
5
This year, Pennsylvanians will elect a U.S. senator who will represent the entire state along with Republican Senator Pat Toomey. Hear from the Republican candidates about their bid for this key Senate seat.
From left: Robyn Hopper, Association Snyder, Presque Isle Downs & Casino.
Series – Seneca Certified Supervisory Skills and Chris Heffernan, Matric.
Front row, from left: Robyn Alternatives of Oil City Inc. Slippery for Community Resources; Phyllis Smeltzer, Back row, from left: Lori Nash, Center Community Deist Industries Inc.; Cindy Woloszyn, Rock Municipal Authority; Tami Clark, Uber, Ellwood City Forge. Services of Venango Co. Inc.; and Tricia
From left: Randy Galbraith, Berry Association Computer Training manager. Tracy Bemis, C.A.
– HR Essential Certification Series Erie HR specialist; and Jill
Series – Erie HR Essential Certification Donor, Pleasant Ridge Hopper, Association HR specialist; Brad
Series – Grove City McBride, Youth HR Essential Certification Cindy Hopper, Association HR specialist; and
Excel and Word Application Specialist – Erie Plastics, and Amy Pontillo,
12 / Marquette Savings Bank
3
Front row, from left: Justin Burrell, Bicker, Farmers and Merchants Bank. Inc.; and Steve Napoletan and Megan Bloom-II-VI, Second row, from left: Tim Brady, Farmers and Merchants Bank. Peggy Bowser and Cindy Milanak, Flanders, and Josh Hulsander, II-VI, Inc.; Melissa Back row, from left: Doug Locke Dayton Dudas, Drug Plastics, Inc. Farmers and Merchants Bank; and
Front row, from left: Scott Wasson, and Phil County Drug & Alcohol Commission; Nutrition; Christine L. Wilson, Lawrence Sickle, Ainsworth Pet Nutrition. Wheaton, Ron Zuccaro and Steve Van Williams, Deist Community Care Connections; Terry Back row, from left: Roxanne Stickney, Ben Vrablik, Marquette Industries; Keith Bailey, Bucks Fabricating; and Bethany Pet Nutrition; Cora Mozina, Dawn Fronce Savings Bank; Joe Heme, Ainsworth and Ken Onesky, Ainsworth Pet Nutrition. Van Sickle, Marquette Savings Bank;
Certified Supervisory Skills Series
– Erie
Michael Front row, from left: Mikron Valve; Marylee Butler, Erie Illusion; Mike Teixeira, PSB Industries; Tom Brooks, Great Lakes Home Healthcare. Gardner, Snap-tite; and Anthony Santor, Back row, from left: Heidi Patterson, Mikron Valve; Josh Meyer, UPMC Hamot; Steve Shields, Snap-tite; Mike Miczo, Industries. Erie Water Works; and Joshua Britt, PSB St. Mary’s Home of Erie - East; Dick Imler,
Series – Erie Certified Supervisory Skills Erie Superior Tire & Rubber; Charlene Reeger,
Front row, from left: Ken Owens, Eriez Magnetics. Home Healthcare; and Don Holmes, Insurance; Jeremy Laurin, Great Lakes Probation; Accuride; Jeff Shaw, Erie County Adult Back row, from left: Terry L. Barrett, & Rubber; Relations; Brian Bennett, Superior Tire Juvenile Mark Causgrove, Erie County Domestic - Erie; and Robert J. Blakely, Erie County Dale Cubitt, Shriners Hospitals for Children Probation Department.
SPECIAL SECTION >
> 23 April 2012 > www.mbabizmag.com
25 / Central PA Link
Jerry Wertz, chairman of the Association’s Central Pennsylvania Division Advisory Board, unveils the MBA’s educational initiatives in central Pennsylvania as well as plans for the May 15 Annual Event in Williamsport.
22 / Spring 2012 Training Graduates See photos of the more than 100 training graduates who recently completed any one of the Association’s HR Essential Certification Series, Certified Supervisory Skills Series, Leadership for Team Leaders Series, Lean-Six Sigma or Computer Training courses.
DEPARTMENTS > 5 / Business Buzz 16 / HR Connection
20 / Legal Q&A 24 / People Buzz
Read on the Go! For the most current Business Magazine updates, visit our new website, www.mbabizmag.com, fan us on Facebook and follow us on Twitter! April 2012 > www.mbabizmag.com > 1
The key to our completed expansion?
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SPOTLIGHT > by Karen Torres Tech Molded Plastics, Inc., an ISO 9001:2008 certified injection molded plastics company, recently expanded its Meadville, Pennsylvania-based facility and infused it with major investments in plasticizing technology, computerized monitoring of plastics processes, and training. President Scott Hanaway spoke to the Business Magazine about these additions and the future of this family owned and operated company.
This past year, Tech Molded Plastics acquired a facility formerly owned by Trojan, Inc. DIC Tool Division, which almost doubled Tech’s total footprint in the Meadville area to more than 92,000 square feet. Why was this expansion necessary? We had added seven new molding machines over the past two years in a temporary arrangement in our warehouse facility across the road. This led to a significant amount of duplication of efforts and wasted time; however, it was extremely beneficial in meeting customer demand, which has risen significantly since the downturn in ’08/’09. The DIC facility, adjacent to our main molding area, has provided all production and personnel with a seamless operation under one roof. This allowed us to add, back in November, a new 440-ton molding cell (our largest), bringing the total injection machines to 32, with space for additional molding capacity. How has this expansion impacted your production and staffing? When the economy tanked at the end of 2008, we cut back to approximately 60 people, and still operated at some levels 24/7, with 22 molding machines. We gained a fair amount of business in 2009, much due to increased business with existing customers and also the misfortunes of others. This put us at approximately 120 people today, with several high level positions ready to fill. Tech also has invested heavily in technology and training. What can you tell us about these investments and how they have benefited your operation? Reinvesting in our people and equipment has been part of our mission and values since Tech's existence, and includes all of the operations, facility as well as the retirement planning of all our employees. The past year, Tech invested significantly in Scientific Molding technology to help improve our processing of very complex, precision molds with highly engineered plastic materials. We are applying more automation and process control technology to improve part management and consistent quality. In addition, Tech has always had a 401(k)/profit-sharing plan, and, as of January 2012, is making matching contributions to all eligible and participating employees. You also recently added custom painted warehouse racking purchased from North East, Pennsylvania-based Ridg-U-Rak, Inc. Please explain the reasons for this addition. Consistency and standardization in the workplace with a clean, bright, organized environment is a constant journey of improvement. When we acquired the DIC building, I wanted it to be world class, representing the service we provide our customers, as well as providing an environment for the people who spend many long hours of their lives here serving those customers. The custom racking from the family owned Pellegrino family in North East only made sense with the red, white and blue color scheme in the newly renovated facility. We believe strongly and support “Made in America.” Low debt, strong financials and a commitment to reinvestment have been the founding principle of Tech Molded since its inception in 1973. What can other business leaders learn from this example? As second-generation brothers growing up in the “startup” family business, we were fortunate to have lived in times when saving some of the money you worked hard for was a priority. Our parents would continually remind us, “Save your pennies for there will be a rainy day!” We were taught to live within our means and, when we needed to fund a purchase, we had a plan to pay it off as quickly as possible. We still talk about the Golden Goose fable we read about as kids, and relating that to our top responsibility of keeping Tech healthy. There have been many of those “rainy days” over the past several decades, and I think we have made some of our biggest reinvestments during or shortly after those times. Is there anything you would like to add? During the most recent nearly $2 million expansion project, we utilized more than a dozen — mainly small — local contractors and helped a couple new startup contractors in the electrical and excavating fields. Brother Doug oversaw the project as we completely gutted and refurbished, painting basically everything top to bottom. We were able to self-fund a good portion of the project, and used a friendly local bank to finance the building mortgage. We are firm believers in contributing to our community, participating in industry associations, like the MBA, and many youth team sports activities.
VOL. X X V, NO. 4 APRIL 2012 Manufacturer & Business Association Board of Governors
Editor in Chief Executive Editor Managing Editor & Senior Writer Communications Specialist Contributing Writers
Yvonne Atkinson-Mishrell John Cline Dale Deist Bill Hilbert Jr. Donald Hester Timothy Hunter J. Gordon Naughton John B. Pellegrino Sr., P.E. Dennis Prischak Lorenzo Simonelli Sue Sutto Jerry Wertz Ralph Pontillo rpontillo@mbausa.org John Krahe jkrahe@mbausa.org Karen Torres ktorres@mbausa.org Jessica Crocker jcrocker@mbausa.org Angie Angus Rose Gantner, Ed.D. Jon Woodward
Feature Photography Rob Frank R.Frank Photography 4320 Miller Avenue Erie, PA 16509 814/520-3985 www.rfrankphotography.com Advertising Sales
Design, Production & Printing
Patty Welther 814/833-3200 or 800/815-2660 pwelther@mbausa.org Printing Concepts Inc. printcon@erie.net
ON THE COVER: Michael Edwards, senior executive vice president and chief executive officer, explains the strategic growth of Marquette Savings Banking, including its Business Banking Division. For full story, see page 12.
Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2012 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.
April 2012 > www.mbabizmag.com > 3
MBAAd_Layout 1 3/9/12 12:08 PM Page 2
The Austin Difference
HEALTHCARE • EDUCATION • INSTITUTIONAL • RETAIL & HOSPITALITY • INDUSTRIAL • CONCRETE
Contractors & Construction Managers Since 1906 Erie, Pennsylvania • Jamestown, New York www.eeaustin.com
4 < www.mbabizmag.com < April 2012
Every day E.E. Austin lays its tradition of construction excellence on the line. Our extensive list of satisfied clients is testimony to Austin keeping its longstanding promise: “Do the right thing... all the time”. It’s a promise we’ve kept with pride for more than a century... and it’s our promise to you. It’s the Austin Difference.
Business Buzz MATRIC CERTIFIED TO ISO 13485 MEDICAL DEVICE STANDARD
Matric, a full-service electronics manufacturing services provider in Seneca, Pennsylvania, has certified to the ISO 13485 Medical Device standard by SARA Registrar. ISO 13485 is an internationally recognized management system standard developed by the International Organization for Standardization (ISO), specific to the manufacturing of medical devices.
assembly, electromechanical assembly and a variety of wireless products. Founded in 1971,
DEPARTMENTS > Contact: Jessica Crocker
Matric employs more than 300 associates. For more information, visit www.matric.com.
AMERICAN TURNED PRODUCTS ANNOUNCES MAJOR INVESTMENT IN MANUFACTURING TECHNOLOGY AT FAIRVIEW HEADQUARTERS Contract machining specialist American Turned Products (ATP) unveiled its latest technology in precision machining, a $1.3-million Buffoli Transfer Machine, during an open house at the company’s Fairview headquarters, 7626 Klier Drive.
“Our 41 years of electronics manufacturing experience coupled with our ISO 9001, AS 9100 and now the ISO 13485 certified quality management system, confirms our commitment to excellence and customer satisfaction in every aspect of the business,” says Tracy D. Sandell, director of Quality at Matric, in a company release.
The Buffoli Transfer Machine is a trunnion-style machine, taking non-rotating steel bars and drills, mills, threads, and turns with CNC accuracy, reliability and speed. It is the only machine of its kind in the United States.
“Having the ISO 13485 certification will make us eligible to build medical device products for customers that require their suppliers to meet this standard,” Sandell adds.
See photos from the open house at www.mbabizmag.com or visit www.atpteam.com for more information.
Matric provides electronics manufacturing services, electronics engineering design services, aftermarket services and repair, cable
American Turned Products’ Chief Operating Officer Harry Eighmy, Chief Executive Officer Scott Eighmy and President Gerald B. Eighmy showcase the new Buffoli Transfer Machine at the company’s Fairview headquarters.
ATP produces high-volume contract precision machining and assembly for several industries with the majority of the volume representing the automotive market. The components produced by the Buffoli machine will be used in airbags.
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Health Matters
EDITORIAL > by Rose Gantner, Ed.D.
Workplace Wellness Certification is a Valuable Tool for Employers With employee health and wellness assuming increasing importance in the workplace, the need for more qualified wellness leaders grows. Employers need to know their investment in wellness can produce leaders who are current with the latest advances and emerging trends. They need to know their investment is being used efficiently and effectively to design comprehensive integrated programs, attractive incentive plans, and measurable results. In response to this need, there has been a rise in the number of workplace wellness certification programs and the emergence of certified wellness leaders. These leaders become health “champions,” helping create a much-needed culture of health in the workplace. A Healthy Workplace A healthy workplace has numerous benefits for employers and wellness certification programs are designed to help a workplace capture those benefits. When a wellness program is certified, employers can feel confident about the professionalism of the persons involved in running the company’s wellness program, and, consequently, in the effectiveness of the program. Certification is one way an employer can identify a true expert in the workplace wellness field. Certification programs also provide employers with the metrics that are absolutely essential to support wellness and health productivity programs. Studies have shown that when companies support wellness with measurable outcomes, they will have greater financial success. Through wellness certification programs, participants can learn about return-oninvestment calculations that can provide employers with the best information
and the application of the right interventions.
evaluate and provide reports to program stakeholders.
A Culture of Wellness A wellness culture is fundamental to any successful workplace wellness program. It is based on trust, psychological safety in the environment, shared norms, and a genuine feeling that employers care about their employees. You can’t change behaviors without having this positive culture of health in the workplace, supported by committed senior leadership willing to serve as role models.
There is a difference between having employees participate in wellness programs as opposed to their being truly engaged in these programs, and being actively involved in long-term and meaningful changes in behavior. When that happens, it’s a win-win for employees and for employers. Establishing that kind of engagement can be learned in a wellness certification program.
Changing the culture isn’t just holding a weight race, for example; it’s making the weight race the thing to do to reach a healthy weight. It’s not just encouraging healthy eating; it’s making healthy choices the easiest choices to make in lunchrooms and cafeterias. It’s taking the stairs versus the elevator just what we do. The most important ingredient needed to accomplish this is to have people who understand the importance of peer and social support necessary to affect meaningful changes in behavior in the workplace. Employees who value their health and the health of others can best gain this knowledge and skill through wellness certification programs. What You Can Learn in a Wellness Certification Program The fundamentals necessary to build sustainable cultures of health can be learned in wellness certification programs. You also can learn about new research on positive psychology components to maximize engagement strategies. You can become confident in your knowledge and ability to implement self-care programs, design and manage program calendars, integrate chronic disease management programs and employee assistance, and
What is important is finding the right program to fit a company’s needs and demographics. Successful corporate wellness programs must engage the employees from the top down and the bottom up. The strategy should be multi-dimensional and use tools that leverage technology and the power of social support. To learn more about wellness certification programs, visit www.upmchealthplan.com. To get a copy of Rose Gantner’s new book, Workplace Wellness: Performance With a Purpose, contact her at gantnerrk@ upmc.edu. Rose Gantner, Ed.D., is the senior director of Consumer Education, Training and Innovation for UPMC WorkPartners, which is part of the integrated partner companies of the UPMC Insurance Services Division. These include UPMC Health Plan, LifeSolutions, UPMC for You (Medical Assistance), Askesis Development Group, Community Care Behavioral Health and E-Benefits – and which offer a full range of programs and products.
April 2012 > www.mbabizmag.com > 7
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Legal Brief
EDITORIAL > by Jon Woodard
U.S. Patent Law Adopts the International First-to-File Standard, But with Catches One nearly universal rule in International Patent Law is that patent rights to an invention go to the first applicant to file a patent application. For decades, the United States has been the most notorious holdout against this first-to-file standard. Currently, the United States is the last major industrial country in the world to retain a first-to-invent rule, under which patent rights are granted to the first inventor or group of inventors that actually invent an invention, regardless of who files first. This will soon change. On September 16, 2011, President Obama signed the LeahySmith America Invents Act (the “A.I.A.”), which includes a highly anticipated change to a first-to-file standard for U.S. patent applications. A.I.A. Overview The A.I.A. addresses many far-reaching and often unrelated aspects of U.S. Patent Law. The A.I.A.’s first-to-file rule comes into effect on March 13, 2013. Although a major A.I.A. objective is to harmonize U.S. Patent Law with international standards, the A.I.A. can actually create traps for applicants seeking patent protection in multiple countries. The A.I.A. also is riddled with exceptions, details and ambiguities that potentially affect most patent applicants. Failure to comply with any of the A.I.A.’s requirements or failure to recognize resulting ramifications can have dire consequences to any business relying on patents to protect valuable technology. Comparison: First-to-File vs. First-to-Invent Consider Inventor A who invents a device on March 1, 2014. Inventor A works diligently to refine the invention and files a patent application on November 1, 2014. Inventor B also independently invents the same device on May 1, 2014 but manages to file a patent application on August 1, 2014. Under the pre-A.I.A.
first-to-invent rule, Inventor A would have superior patent rights since Inventor A’s date of invention is before that of Inventor B. But under the A.I.A.’s new first-to-file rule, wouldn’t Inventor B have superior rights because Inventor B filed a patent application first? Well, maybe, but possibly not. The A.I.A. includes a one-year grace period for filing a patent application after a public disclosure, provided the disclosure is made by the inventor or by a third party that learned of the invention from the inventor. Under the A.I.A., the date of such disclosure also establishes a domestic priority right to the invention. If Inventor A keeps the invention secret until after the patent application is filed, Inventor B would have superior patent rights due to Inventor B’s earlier filing date. However, if Inventor A publicly discloses the invention in March 2014, the disclosure would make Inventor A’s patent rights superior to those of Inventor B in the United States even though Inventor B filed an application first. Unfortunately, such early public disclosure of an invention can destroy the right to extend protection to other countries. Most foreign patent systems impose a strict novelty rule on applicants, prohibiting any pre-filing public disclosure in any country. While the A.I.A. would encourage Inventor A to immediately disclose the invention publicly to secure U.S. rights, such disclosure also would block both Inventors A and B from pursuing additional patent protection abroad.
be filed under the existing first-to-invent rule or delayed until after the A.I.A.’s firstto-file rule takes effect. But how does one make this decision? A good rule of thumb is to follow an invention’s natural development. An inventor with an invention ready for disclosure today would be well advised to file a patent application as soon as possible and before March 13, 2013. Doing so would grandfather the invention under the first-to-invent rule, giving the applicant the benefit of the earliest invention date. Applicants filing patent applications on or after March 13, 2013 would be bound by the first-to-file rule, but would benefit from improved familiarity of the new system building in the legal and technical communities. This decision, which should always be made with the assistance of a patent attorney, ultimately depends on the specific circumstances of each applicant, including the applicant’s business objectives in the United States and abroad. For more information about patents and the America Invents Act, please contact Jon Woodard at MacDonald, Illig, Jones & Britton, LLP at 814/870-7664 or jwoodard@mijb.com. Jon Woodard is a partner with the law firm of MacDonald, Illig, Jones & Britton, LLP. A registered patent attorney, Woodard focuses his practice on various areas of U.S. and international intellectual property law.
The A.I.A. and Your Business Such comparisons represent just one example of why careful planning under the A.I.A. is critical. During the transition period from now until March 13, 2013, many businesses will need to consider whether new patent applications should April 2012 > www.mbabizmag.com > 9
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EDITORIAL > by Angie Angus
Every Good Strategy Has Three Key Characteristics Angie Angus is the manager of BOS Programs and Support Services.
This article is part of a series that features excerpts from the international best-selling book, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, by authors W. Chan Kim and Renée Mauborgne. Once a company develops a potential strategy, how do you test it prior to implementation? Many good ideas may emerge during the BOS process but not all of them may be “blue ocean” ideas or even viable. Testing the waters prior to implementing the strategy will minimize the risks. Blue Ocean Strategy states, “An effective blue ocean strategy has three complementary qualities: focus, divergence, and a compelling tagline. Without these qualities, a company’s strategy will likely be muddled, undifferentiated, and hard to communicate with a high cost structure. The four actions of creating a new value curve should be well guided toward building a company’s strategic profile with these characteristics. These three characteristics serve as an initial litmus test of the commercial viability of blue ocean ideas.”
and create new ones. This will differentiate your strategy profile from your competition.
Focus, Divergence, and a Compelling Tagline A good strategy needs to have focus, and the value curve on your strategy canvas should clearly communicate that focus. If you are trying to be everything to everyone, you will master mediocrity while driving costs up. If the value curve indicates that you are competing on too many factors, your strategy may need revising. You likely are competing in a red ocean and are not divergent from your competition.
Southwest Airlines differentiated itself from other airlines by eliminating the use of hubs. Instead, the company chose to utilize a point-to-point method of travel, which focuses on short journeys. This enabled the airline to offer frequent departures and reduce the price of tickets. Another difference was that Southwest reduced or eliminated meals, lounges, hub connections and seating choices. Many of these items saved the company time and money.
Southwest Airlines had a focused strategy that targeted car travelers. It offered these travelers affordable, fast transport between short-haul destinations. It also offered frequent departures and friendly service. Many of these travelers were compelled to fly instead of drive due to the affordability and the speed of getting to their destination. In fact, Southwest eliminated or reduced services, which drove down costs. The graph (above right) illustrates Southwest’s divergence from other airlines in addition to car transport.
Finally, you need a compelling tagline. The tagline needs to be easy to understand and deliver a compelling message. To develop an effective tagline, you must first know your vision, core values, products/services, and your main objectives. Areas where your strategy canvas shows divergence may be areas that you want to emphasize in your tagline.
Divergence is the second criteria to a successful strategy. When you look at your business compared to your competition on the strategy canvas, your value curve should look very different from your competitors. If your value curve looks similar, then you probably are competing head-to-head for the same group of customers. The ERRC (eliminate, reduce, raise and create) grid can be revisited to decide where you need to eliminate and reduce your offerings, as well as raise
At that time, Southwest Airlines’ use of the tagline, “the speed of a plane at the price of a car — whenever you need it,” sent a compelling message. Southwest was able to tap into a large market of noncustomers (car travelers) and frequent flyers. By offering a strategy with focus, divergence and a compelling tagline, the airline was able to offer exceptional value to the market while keeping its costs down. If you are interested in learning more about how your company can explore blue oceans of opportunity, please visit mbausa.blueoceanstrategy.com or contact me at aangus@mbausa.org. April 2012 > www.mbabizmag.com > 11
Marquette Savings Bank’s executive management team includes: Julie Wilson, executive vice president and chief financial officer; Michael Edwards, senior executive vice president and chief executive officer; Kelly Montefiori, executive vice president and chief information/compliance officer; Louis Natalie, executive vice president and chief credit officer; and David Carll, executive vice president and chief retail banking officer.
The ‘Hometown Bank’ Brings the ‘Hometown Touch’ to Business Banking
In business, you want to surround yourself with the right people to support your operation. When choosing a bank, you want a trusted firm that is looking out for you and your company’s long-term financial goals. So, when Erie natives and brothers Drs. Jonathon and Harry Izbicki of Izbicki Family Medicine, PC decided to turn to Marquette Savings Bank for their business banking needs and new office at 3424 Peach Street, they found a bank that was willing to work with them and build a business relationship for the future. “Partnering with Marquette’s team just made perfect sense to us because we are a hometown name with hometown values,” states Dr. Jonathon Izbicki, D.O. “We recognized a need in the Erie community for quality relationshipbased medical care, where people are not just a number. Marquette is a hometown bank with hometown values, and they recognized the value of the relationship for the Erie community. ”
Michael Edwards, who joined Marquette in 1988 and was named chief executive officer in April 2002, says that what distinguishes Marquette from other banks is its longevity and commitment to excellent customer service. It’s one of the reasons that Marquette’s slogan, “The Hometown Bank with the Hometown Touch,” has stood the test of time.
Since its founding in 1908, Marquette has been the bank of choice for many in the area — helping residents get the finances they need to get the home of their dreams or save for their children’s education. In 2009, Marquette established its Business Banking Division to replicate the same level of service that its retail customers have come to know and trust.
Bank executives say Marquette’s “conservative” and “prudent” approach to banking has been instrumental to its financial performance.
“Marquette is different than some other banks because they are attentive and are truly concerned,” explains Erie Industrial Supply Company President Dena Zambrzycki. “It’s just like banking with family.”
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“After 100 years in the community,” Edwards says, “our customers trust us and know we have their best interest in mind.”
Strategic Growth
With 121 employees in 12 locations in Erie and Crawford counties, and assets of approximately $759 million, Marquette is independently strong. For 94 consecutive quarters, or 23.5 years, the bank has earned BauerFinancial’s five-star superior rating, the highest available, for safety and soundness. This distinction places Marquette in the top 10 percent of all banks nationally. Marquette also has been named to the prestigious 2010 Seifried & Brew Top 15th percentile of banks that have achieved the optimum balance of risk and reward. Banks that make this list include community banks with assets between $100 million and $5 billion. Equally impressive, Marquette has experienced a 39-percent increase in total assets since 2009, and its capital position is 13.89 percent. The FDIC capital requirement for a well-capitalized bank is 5 percent.
“I think the key here is that our underwriting standards have been consistent in both good and challenging economic times,” states Edwards. “Those banks that loosened and relaxed their standards are the ones who experienced heavy charge-offs and losses. Throughout the recent economic crisis, Marquette’s earnings ratio has consistently been in the 90th percentile of our peer group.”
As a result of this stability and capitalization, Marquette has been able to experience controlled growth that has taken it from a small community bank, specializing in home loans and savings programs, to one of the area’s most financially strong, full-service financial institutions. The most noticeable signs of this growth have been the investments to its infrastructure, including renovations at the bank’s Liberty Street and Albion branches and the construction of several new offices. These offices include state-of the-art banking centers on the east side of Erie; West 38th Street and Sterrettania, and West 12th Street in Millcreek Township; and a drive-thru branch on Park Avenue in Meadville. Marquette also acquired three former National City Bank offices in Crawford County in 2009. Renovation of its Erie headquarters at 920 Peach Street is set for 2012.
Business Banking
Founded: 1908 Headquartered: 920 Peach Street in Erie, Pennsylvania Products and service: Marquette specializes in residential, business and agricultural loans and lines of credit; personal and business checking and saving accounts, including business sweep accounts; electronic banking services, including online banking, bill payment, eStatements and mobile banking; safe deposit box; lockbox services; cash management services, including ACH origination, wire transfer and positive pay; and remote deposit capture. Chief Executive Officer: Michael Edwards Board of Trustees: Chairman of the Board and President Stephen Danch; Vice Chairman Donald Fessler; Trustees Leo Brugger Jr., Max Holt, Roger Schlosser, Donald Sieber, Robert Wagner Jr., Herman Weber Jr., and Douglas Ziegler; and Trustees Emeritus Richard McCormick and Harry West
Yet even more dynamic than these bricks and mortar investments is the creation of Marquette’s Business Banking Division. In 2008, the bank conducted a study of local business owners to gauge their reaction and interest to Marquette entering the business market. The results showed an expressed desire for a bank with timely, local decision-making and an ongoing commitment to customer service — everything that Marquette represents and delivers.
Locations: 12 offices in Erie and Crawford counties. Erie County offices – 920 Peach Street, 3801 Sterrettania Road, 3404 Liberty Street, 2320 West 12th Street and 1775 East 38th Street in Erie; 209 West Plum Street in Edinboro; and 14 North Main Street in Albion. Crawford County offices – 953 South Main Street, 1073 Park Avenue, 349 North Street and 16086 Conneaut Lake Road in Meadville; and 210 Water Street in Conneaut Lake.
“The reaction we had was overwhelmingly positive,” says Edwards. “Strategically, the entrance into business banking provided another avenue of growth for the bank in addition to diversifying our concentration in 1-4 family residential lending.”
Size: Approximately $759 million in assets
Spearheading this effort is Senior Vice President of Business Banking David Slomski, a veteran banker with nearly 40 years of overall banking experience. “A lot of banks say they are relationship based, but that is where Marquette has succeeded on the consumer side,” says Slomski, “and that is where we will succeed on the business side.”
Charitable Donations: From 2000 to 2011, Marquette contributed more than $2.7 million to local organizations and charities.
Due to the consolidation and quick growth, many larger banks utilize centralized underwriting in their lending practices. In these transactions, a customer typically sits down with a branch manager generalist or sales person who uses a checklist to determine a loan request based on what the borrower thinks they need. That information is then sent to an out-oftown office, which is often reviewing the request for the first time. At Marquette, however, customers can expect to meet with a trained, experienced banker that is either the direct decision maker or, if it is Senior Vice President & Business Banking Manager David Slomski (center) meets with Drs. Harry and Jonathon Izbicki, D.O., of Izbicki Family Medicine, PC in Erie. The Izbickis chose Marquette for their business banking needs because of the bank’s hometown values and longstanding commitment to the Erie community.
Recognitions: Marquette received the 2009 Celebration of Excellence Award from the Erie Regional Chamber and Growth Partnership for its longterm excellence and commitment to the local area.
Phone: 814/455-4481 or 1-866-MSB-ERIE Email: Main.office@marquettesavings.com Website: www.marquettesavings.com
an extremely large transaction, the person having input on the lending decision. They are familiar with the customer’s financial picture and future needs. “If you are dealing with experienced business bankers, you get more of that consultant or advisory type of service,” says Slomski. “You may think you need a $200,000 or $300,000 term loan to handle your financing needs, but your sales are growing, so have you thought about if you need a commercial line of credit or things of that nature?” Although it may require more resources for such relationship banking, Marquette is committed to that level of service. “Our growth so far has proven that a bank’s establishing relationships with its clients is beneficial to everyone — customer and bank.” Because of this relationship focus, Marquette’s competitive advantage is its flexibility to be able to work with borrowers in all industries — manufacturing, retail, contractors, medical, nonprofit, for example — and loans as small as $10,000 and as high as $1.8 million or more. “Size doesn’t scare us,” Slomski says. “We are equipped and interested in both ends of the spectrum as well as everything in between.” At Marquette, being a part of the community in which it operates also means being willing to partner with local economic development authorities, state programs and even other banks on community based projects. “When it makes sense to our client, we are open to all partnerships,” Slomski adds. With such a customer-driven model in place, Marquette’s Business Banking Division is positively positioned to grow. “As far as where we >
April 2012 > www.mbabizmag.com > 13
Marquette’s Business Banking Division was created in 2009 to better serve the banking needs of area businesses. Shown here are, front row, from left: Administrative Assistant Beverly Schneider and Senior Vice President & Business Banking Manager David Slomski. Back row, from left: Vice President & Senior Business Banker Eugene Cirka, Assistant Vice President & Credit Analyst Sherry Waller and Assistant Secretary & Business Banker James Jackson.
continues to bank with Marquette — even though there are no Marquette branches nearby. “She does not feel valued at other banking locations, and we have provided her with outstanding customer service,” explains Edwards. “That’s an example of the ‘hometown touch’ at work.”
Trusted and Experienced Lenders
A reputation for service is one of the many reasons that customers turn to Marquette for their lending needs. Today, the bank services more than $500 million in loans in properties located in Erie and Crawford counties.
are in the development, it is ahead of projections,” explains Slomski. “But we have even more potential.”
Customized Products, New Technology
Marquette’s Executive Vice President and Chief Information Officer Kelly Montefiori has been in banking for 29 years, including 22 years in IT, Operations and Compliance. She says it is an exciting time to be a business customer of Marquette’s because of the bank’s ability to identify and structure products to meet their needs, including merchant deposit capture, lockbox services, and cash management services, such as ACH (automated clearing house) transactions and wire transfers. Marquette also is able to customize its online banking platform to each individual company, so they can determine how they have access, who has access and what security levels they want. Montefiori expects upcoming enhancements to the bank’s online banking system in 2012 will upgrade security not only for Marquette, but filter down to customers, using a secure tunnel environment. “Technology is very much a driving force at Marquette and it is creating efficiencies for both the bank and the customer,” she says. “We can cost justify technology like we have never done before, and that is translating itself into a better customer experience.” That means moving from one-channel banking to a multi-level banking experience. “Now you are talking about online, mobile, electronic bill pay, and direct access from imaging with remote deposit capture,” says Montefiori. “This is exciting stuff and then to have that information at your fingertips for recall and research, that is a valuable tool for a business.” Mobile Marquette, for example, allows both business and retail customers to utilize the latest mobile banking technology to access their accounts 24/7 through SMS (short message service) text banking, mobile web, or a mobile banking app. “Image technology is where the future lies,” explains Montefiori. “We certainly are seeing that there is a group of people who are anxious to use the technology and understand the efficiency and convenience that it brings them.” Bank executives say the use of online banking services — especially ACH payroll processing for business customers — continues to rise along with branch traffic. Yet Marquette has responded by continuing to deliver the same level of service, whether it is someone walking into a branch or doing online banking out of town. Just recently, a customer living in Virginia emailed the local office to thank them for a quick response regarding her account. The woman
14 < www.mbabizmag.com < April 2012
Executive Vice President and Chief Credit Officer Louis J. Natalie has been with Marquette for 34 years, beginning as a management trainee and working in all aspects of lending and retail banking. His focus is lending because he felt that could make a positive impact on his clients’ lives, “by making one of the largest purchases of their life a good experience.” Branch managers and assistant managers are also loan officers who handle clients’ needs throughout the mortgage process. At Marquette, that includes experienced bankers, many with more than 30 years of experience. “Our lenders, both on the personal and business side form relationships with our clients from the initial contact,” says Natalie. “We recognize that buying your home or business is one of the largest decisions people will make and by working with them as a team, we earn their trust.” The approach distinguishes Marquette and its loan officers from other institutions, placing emphasis on the value of the customer, not a “transaction.” “In this difficult economy, it is nice to know that the person you are relying on to help you with such an important decision is a true professional who has seen most every twist that may come up,” says Natalie. “They have the knowledge to answer their clients’ questions and help make this process a good one.” This relationship-driven banking experience is why the “Hometown Bank with the Hometown Touch” continues to be the bank of choice — on the retail and business banking side — for so many in the region. “Marquette has been the local community bank for more than 100 years,” states Natalie. “Our decisions are made locally with the Erie and Crawford county communities in mind.”
Vice Presidents & Branch Managers Rita Wood and Grace Ewanick have been with Marquette for a combined 75 years. At Marquette, branch managers are also loan officers, many with decades of banking experience.
From left to right: Scott Gezymalla, Andrew Lincoln and Jeremy Lincoln
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HR Connection SURVEY: WORKPLACE COMMUNICATION WILL FAVOR REAL-TIME TOOLS Email may soon become the new snail mail, according to a new survey. Fifity four percent, or more than half of the chief information officers (CIOs) interviewed, said real-time workplace communication tools â&#x20AC;&#x201D; for example, Instant Messaging, SharePoint, Yammer, etc. â&#x20AC;&#x201D; will surpass traditional email in popularity within the next five years. The survey was developed by Robert Half Technology, a leading resource for information technology (IT) professionals. It was conducted by an independent research firm and is based on telephone interviews with more than 1,400 CIOs from companies across the United States with 100 or more employees. Researchers say the transition to realtime tools could have on the workplace, including speed, convenience and colla-
boration of ideas and sharing of best practices within a company. â&#x20AC;&#x153;Although email remains an important communication tool, the increased use of real-time technologies affects the IT environment,â&#x20AC;? said John Reed, executive director of Robert Half Technology. â&#x20AC;&#x153;Employers are looking for the right people to deploy these tools in new ways to increase efficiency. IT professionals should consider the importance of keeping current with real-time technologies in order to stay competitive in the job market.â&#x20AC;? CHIEF MARKETING OFFICERS SEE BUSINESS STRATEGY, DIGITAL MARKETING AS TOP PRIORITIES Chief marketing officers (CMOs) want to have greater influence in setting business strategy, and they feel an increasing need to raise their technology IQ, according to a global CMO survey by Heidrick & Struggles and Forrester Research, Inc. According to The Evolved CMO 2012
survey, nearly 80 percent of senior marketers said they wanted their influence to grow as business strategy and development leaders. They see improving their relationship with the senior executive team as a critical way to get there. But, in a world powered by a technologyempowered customer, the No. 1 skill to improve on is digital: 40 percent of CMOs say increasing their technology savvy is their top self-improvement goal, a dramatic increase from the previous survey in 2008. â&#x20AC;&#x153;For CMOs to prove the value of their role and justify the marketing investment, they must clearly illustrate the ROI (return on investments) of marketing plans, influence the understanding of their brand strategy across other functional areas of the company, and engage technology and sales peers to create a consolidated vision of how to succeed with customers,â&#x20AC;? said David M. Cooperstein, Forrester vice president.
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DEPARTMENTS > Contact: Stacey Bruce
Motivate Your Team by Talking With Them Here’s a simple tip for you executives out there that is guaranteed to positively impact your staff and motivate them beyond your wildest dreams: Talk with them. Notice that I said talk with them, not to them. We talk to them all of the time, but rarely with them. Below are three ways to change the manner in which you communicate with your staff that are bound to result in a motivated team. 1. Manage by walking around. Get out of your office and take a quick stroll through your facility and engage your staff in small talk. Keep it short but show interest and listen. You would be surprised the things you can learn in a threeminute conversation. Plus, if you are never out there, they think you don’t care about them. Not a great message to send.
2. Brown bag it. Grab a chair in the lunchroom, talk about the game or the weather — not work — and watch the natural communication barriers start to tumble down. Being approachable can pay big dividends. You need your staff to feel comfortable around you if you want them to share information. 3. Be interactive. When you have formal meetings, get everyone involved. Ask questions. Praise responses. Ask people what they really think about the direction of the discussion. Use people’s names. Above all, listen. Like so many concepts in business, effective communication is not rocket science. It just takes effort, consistency and a desire to do it right.
With more than 15,000 participants trained, the Manufacturer & Business Association is the leading resource for professional development and computer training in the area. For more information, please contact me at 814/833-3200, 800/815-2660 or dmonaghan@mbausa.org. I also encourage you to visit the Association’s website, www.mbausa.org, to learn more about our upcoming offerings.
Dan Monaghan is the director of Training at the Manufacturer & Business Association.
April 2012 > www.mbabizmag.com > 17
OntheHill A Guide to Pennsylvania's 2012 Primary Election for U.S. Senate
This year, Pennsylvanians will elect a U.S. senator who will represent the entire state along with Republican Senator Pat Toomey. The open seat is currently held by Robert P. Casey, Jr., a Democrat, and is classified as a Class 1 Senate seat, meaning it was the first grouping of senators to face reelection. One-third, or 33, of the 100 U.S. senators are elected every six years, except for Class 3 Senate seats, which is a group of 34 senators. Senate terms are six years in length and are not bound by term limits. Casey is the 32nd senator to hold the office, and was first elected in 2006 when he defeated Republican Senator Rick Santorum. Nationally, nine Senators have announced retirement: six Democrats, one Independent and two Republicans. Democrats control the Senate by a 53-to-47 margin. There are five Republicans and one Democrat, Joseph Vodvarka, vying to unseat Senator Casey. We asked the Republican candidates three important questions, to which only four responded. Republican voters also will see David Christian’s name on the ballot. Please consider their responses when choosing your candidate.
18 < www.mbabizmag.com < April 2012
Sam Rohrer – R Profession: Former Pennsylvania Representative www.rohrerforsenate.org
Marc Scaringi – R Profession: Attorney and owner of the law firm Scaringi & Scaringi, P.C. www.scaringiforsenate2012.com
How would you spur economic growth?
On the federal level, I would champion a four-fold approach: 1) reduce the size and scope of the federal government, 2) reduce oppressive regulations; oppose restrictive new laws; reduce the influence of the Environmental Protection Agency; 3) pursue energy independence — drill, deregulate and develop; and 4) reduce the corporate income tax by 50 percent and eliminate the tax penalty for corporate profits earned overseas. In the end, economic prosperity and job creation will occur when government gets out of the way.
The government is the greatest impediment to economic growth. Government does not create jobs, wealth or economic growth – free individuals living and working in the free-market do. To spur economic growth, I will reverse the fiscal, monetary and regulatory policies of recent years by lowering taxes, reducing regulations, cutting spending, balancing our budget and stopping the printing of money and monetization of debt.
In your opinion, what is the role of government?
The role of a representative government is limited. It is to do only that which cannot be accomplished by self-government and state government. In simplest terms, the federal government’s constitutional role is to: 1) maintain a sound currency; 2) provide for a level playing field in interstate commerce; and 3) maintain a strong national defense.
Unlike what many politicians and candidates believe, the role of government is not to take care of us or make us safe, the role of government is to protect our individual God-given rights and freedoms so that we can take care of and defend ourselves. We free individuals have been endowed by our Creator with certain unalienable rights. We come together and form a government to protect and defend those rights from being violated by others.
Why would you like to be elected to the U.S. Senate?
Being the only candidate with both business experience and a proven conservative voting record, stretching over 18 years, I believe that I am best positioned to bring both real world and legislative experience to Washington. Having championed many economic, educational and constitutional issues, and having firmly stood on principle and conviction in the legislature, I feel qualified to seek the nomination for U.S. Senate.
Through my work in the U.S. Senate, as an aide to Senator Rick Santorum during the first Republican Revolution, to my experience as an aide to Attorney General Mike Fisher, and my experience founding and building my own law practice and small business, I have the inside experience and outside perspective, together with a strong independence, to help turn this country around.
DEPARTMENTS > Contact: Lori Joint 2012 PRESIDENTIAL CANDIDATES
Tom Smith – R Profession: Former coal company owner www.tomsmithforsenate.com
Steve Welch – R Profession: Co-founder of DreamIt Ventures and founder of KinderTown www.welchforpa.com
The Obama-Casey agenda has taxed, spent and borrowed our economy to the brink of disaster. If we are to restore economic prosperity and create jobs, we need to get government out of the way. I believe that by cutting spending, reducing the deficit, simplifying the tax code, and rolling back oppressive regulations that the free market will prosper and get our economy back on track.
America is the most productive and innovative country in the world; however, we have a government that is pricing us out of the global market through the hidden tax of regulation. We need to do the following to ensure we make America competitive in the global market: 1) throw the tax away and start over with a flatter and simplified version; 2) return to a commonsense regulator environment – this includes repealing Obamacare; and 3) allow American entrepreneurs to harness the energy that is underneath our feet. This will reduce the energy costs of every American company and make us more competitive in the global economy.
The role of the federal government should be limited to the powers enumerated in the Constitution by the founding fathers, such as providing for our national defense. While we need to promote the general welfare, providing a limited social safety net, that net has become a web. Our government has grown ever more expansive, expensive and intrusive. I will work to restore the limited government constitutional principles that our nation was founded upon.
The purpose of the federal government is to: 1) adhere to the Constitution; 2) protect the safety and security of its citizen; and 3) ensure free markets.
As the proud father of seven … and grandfather of eight, this country has blessed me with opportunity to live the American Dream. I believe the current direction this country is headed has placed that opportunity at great risk, and I am running to preserve the American Dream for all future generations. I cannot and will not idly stand by while our children and grandchildren are saddled with endless debt because our generation wouldn’t demonstrate the courage to make the tough decisions necessary.
I am an engineer by training and have actually been referred to as the “nerdiest” of candidates in this race; however, I think the cool kids have been in charge of Washington for too long and they have screwed it up. It is time we send entrepreneurs and small business owners to Washington. We have a unique set of experiences that are desperately needed in Washington now more than ever.
President Barack Obama, a Democrat, was elected to his first term in 2008 after President George W. Bush finished his second term. The Office of the President is the only federal office bound by term limits, two four-year terms. Presidents are elected by the Electoral College, which is stipulated by Article 2, Section 1 of the U.S. Constitution, which states, “Each state shall appoint, in such a manner as the legislature thereof may direct a number of electors, equal to the whole number of senators and Representatives to which the state may be entitled in the Congress.” There are a total of 538 Electoral College votes. The candidate must receive 270 votes to win in the General Election. The vice presidential candidate is chosen by the Party nominee after the primary election, and the president and vice president are elected as a ticket. Pennsylvania will have 20 Electoral College votes, which is one less than the 2008 election. This was due to the 2010 Census and subsequent reapportionment of the 435 members of the U.S. House of Representatives. Pennsylvania now has 18 seats in Congress and two senators. Four Republican challengers have successfully filed petitions in the Commonwealth for the Republican primary. The following chart shows the total number of delegates won by each of the four candidates as of March 21, 2012.
Mitt Romney Pledged: 528 Unpledged RNC: 34 Total: 562
Rick Santorum Pledged: 247 Unpledged RNC: 2 Total: 249
Won: Arizona, Florida, Illinois, Massachusetts, Michigan, New Hampshire, Ohio, Puerto Rico, Vermont and Virginia (Primaries); American Samoa, Alaska, Guam, Hawaii, Maine, Nevada, Northern Marianas, Idaho, Washington and Wyoming (Caucuses)
Won: Alabama, Mississippi, Missouri, Oklahoma and Tennessee (Primaries); Colorado, Iowa, Minnesota, North Dakota and Kansas (Caucuses)
Newt Gingrich
Ron Paul
Pledged: 134 Unpledged RNC: 3 Total: 137
Pledged: 71 Unpledged RNC: 0 Total: 71
Won: Georgia and South Carolina (Primaries)
Won: None as of March 21, 2012
Delegates Needed to Win: 1,144 Source: http://www.cnn.com/election/2012/primaries/scorecard/statebystate/r
April 2012 > www.mbabizmag.com > 19
LEGAL Q&A WHAT IS THE BEST WAY TO GET COMPANY INFORMATION TO ALL OF OUR EMPLOYEES? Getting the right messages to employees can be accomplished through a variety of communication methods and tools. Examples include: newsletters, intranet, email, memos, a company handbook and staff meetings. The possibilities are endless and are often influenced by your companyâ&#x20AC;&#x2122;s culture and technological capabilities. WHY DO WE NEED A COMPANY HANDBOOK? Your company handbook is your â&#x20AC;&#x153;officialâ&#x20AC;? publication to your employees. It effectively communicates the information they need to know on your policies, procedures and work rules. When you update your handbook or make changes to a policy, it is a good idea to also make a note of it in a newsletter or special memo to
draw the employeesâ&#x20AC;&#x2122; attention to the update. WHAT CAN BE ACCOMPLISHED BY CONDUCTING AN EMPLOYEE OPINION SURVEY? An employee opinion survey is a tool that allows you to obtain information on issues of concern to the company. It helps you to gauge how your employees think and feel about specific elements regarding their job or the company. Surveys can elicit information about employee morale, job satisfaction and commitment. A passive approach, such as a suggestion box, may not be enough. Some employees wonâ&#x20AC;&#x2122;t voice their concerns (or ideas for improvements) unless you ask them and provide assurance that their comments are valued. Based on the survey responses, you can create an action
plan to address any issues of concern. If you are interested in conducting an employee opinion survey, please call the Associationâ&#x20AC;&#x2122;s HR Services Division at 814/833-3200 or 800/815-2660 to see how we can assist you. HAVE A QUESTION? GET ANSWERS FROM THE ASSOCIATION'S FREE HR/LEGAL HOTLINE. The Manufacturer & Business Association knows that issues can arise on a momentâ&#x20AC;&#x2122;s notice in the workplace. As an Association member, you have free, unlimited access to our certified HR specialists and employment law attorneys for advice on a variety of workplace-related issues. Call today at 814/833-3200 or 800/815-2660.
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DEPARTMENTS > Contact: Tammy Lamary
Supreme Court Issues First Significant Employment Law Decision of the Year On January 11, 2012, the U.S. Supreme Court issued a unanimous decision (Hosana-Tabor v. EEOC) for religious employers. This decision confirmed that a “ministerial exception” bars employment discrimination suits brought by employees who fall within this exception against religious employers. The “ministerial exception” allows religious entities to give “preference in employment to individuals of a particular religion” and to “require that all applicants and employees conform to the religious tenants of such organization.” In reaching its decision, the Court rejected the Equal Employment Opportunity Commission’s (EEOC) position, which sought to limit the “ministerial exception” to employees who perform “exclusively religious functions.” While
the Court was “reluctant to adopt a strict method for deciding when an employee qualifies as a minister,” it did provide a multi-factor analysis that looks at “all the circumstances.” The factors the Court found relevant include whether the employee: 1) is “held out as a minister,” 2) underwent significant training, 3) was formally commissioned, and 4) performs “important religious functions.” In addition, the Court stated that the exception could possibly apply to an employee even if the majority of their duties are non-religious. The Court also noted that the term “minister” was misleading because the exception applies to religions that do not include “ministers.”
employer is a church or other religious organization it cannot be sued by a minister for employment discrimination. Just keep in mind that such determinations, such as whether an employee can be categorized as a minister, will have to be made on a case-by-case basis. For more information on this decision, please contact me at 814/833-3200, 800/815-2660 or tlamary@ mbausa.org.
Tammy Lamary is Labor & Employment Counsel for the Manufacturer & Business Association’s Legal Services Division.
The takeaway from this case is that if an
ENJOY. Listening • Understanding • Effective Design 4500 West Ridge Road • Erie PA 16506 • (814) 835-8050 • weissearley.com
April 2012 > www.mbabizmag.com > 21
Events
HR Essential Certification Series Erie
From left; Marc Johnston, Channellock; Michele Belle, Mercyhurst University; and Robyn Hopper, Association HR specialist.
2012 Spring Training Graduates The Manufacturer & Business Association recently held a series of luncheons to recognize the more than 100 graduates of its professional development and computer training programs. Visit www.mbabizmag.com for complete coverage.
HR Essential Certification Series – Erie
From left: Kelli Kaliszewski and Jennifer Chase, Medical Associates of Erie; and Robyn Hopper, Association HR specialist.
Blue Ocean Strategy Center
HR Essential Certification Series – Erie
From left: Robyn Hopper, Association HR specialist; and Jill Snyder, Presque Isle Downs & Casino.
HR Essential Certification Series – Erie
Front row, from left: Robyn Hopper, Association HR specialist; Brad Donor, Pleasant Ridge Manor; and Heather Evans, AirBorn Lake City.
HR Essential Certification Series – Grove City
Front row, from left: Robyn Hopper, Association HR specialist; and Cindy McBride, Youth Alternatives of Oil City Inc.
Back row, from left: Samantha Christian, Meadville Area Federal Credit Union; Eileen Reynolds, Accuride Erie; and Penny Ohmer, Sight Center of NWPA. Not pictured: Garrett Lindahl, Bridport Erie Aviation.
Back row, from left: Lori Nash, Center for Community Resources; Phyllis Smeltzer, Slippery Rock Municipal Authority; Tami Clark, Deist Industries Inc.; Cindy Woloszyn, Community Services of Venango Co. Inc.; and Tricia Uber, Ellwood City Forge.
Leadership for Team Leaders – Butler HR Essential Certification Series – Erie
From left: Robyn Hopper, Association HR specialist; Tammy Sparber, C&J Industries; Crystal Simmons, Millcreek Community Hospital; Sheila Payne, Zurn Industries; and Lori Ann Tate, Presque Isle Downs & Casino.
22 < www.mbabizmag.com < April 2012
Front row, from left: Justin Burrell, Deb Pfabe and Rene Ball, II-VI, Inc.; and Valerie Bicker, Farmers and Merchants Bank. Second row, from left: Tim Brady, Steve Napoletan and Megan Bloom-II-VI, Inc.; and Peggy Bowser and Cindy Milanak, Farmers and Merchants Bank. Back row, from left: Doug Locke and Josh Hulsander, II-VI, Inc.; Melissa Flanders, Farmers and Merchants Bank; and Dayton Dudas, Drug Plastics, Inc.
Access Application Specialist – Erie
Lean-Six Sigma – Erie
From left: Ken Bunting, AmSafe; Branden King, Corry Manufacturing Company; and Instructor Ray Davis.
From left: Kathy Zurinsky and Melissa Lasky, Millcreek Township School District; Tom Laskowski, Erie Insurance Group; and Amy Pontillo, Association Computer Training manager. Not pictured: Tammy Altsman, Erie Insurance Group; Janice DiLuzio, Stairways Behavioral Health; Betsy Dziurzynski, Erie Veterans Affairs Medical Center; Brett Ketler, Webco Industries, Inc.; Holly Lopez, CMI-EPTI LLC; Michael Post, Erie Veterans Affairs Medical Center; Bonnie Steffey, Perry Mill Supply Company; and Margie Unick, Gannon University.
Certified Supervisory Skills Series – Seneca Front row, from left: Dave Murphy and Chris Heffernan, Matric.
Second row, from left: Michael Young, Connie McLaughlin, Debra Ehrhart, Marlene Haupt, John Tippel, Renee Hoovler and Stacy Maher, Matric. Back row, from left: Josh Andres, Shawn Whitehair, Donnie Cussins, A.J. Hook, Travis Graham, Kim Wentling and Ed Goethe, Matric.
Certified Supervisory Skills Series – Meadville
Excel and Word Application Specialist – Erie
From left: Randy Galbraith, Berry Plastics, and Amy Pontillo, Association Computer Training manager.
Not pictured: Excel Application Specialists Tracy Bemis, C.A. Curtze Co.; Jon Bivens; MVS Saegertown LLC; Betsy Dziurzynski, Erie Veterans Affairs Medical Center; Paul Gacka, General Electric Company; George Godsave, Channellock Inc.; DeVona Henderson, Schaffner, Knight, Minnaugh & Co., P.C.; Mike Kennedy, Eastern Resevoir Services, Inc.; Joan Klein, Erie Veterans Affairs Medical Center; Suzan Taylor, McGill Power Bell and Associates LLP; Margie Unick, Gannon University; and Melanie Zeiss-Pesch, Advanced Placement Services; Word Application Specialist Senad Rakovic; and Excel and Word Application Specialist Holly Lopez, CMI-EPTI, LLC.
Certified Supervisory Skills Series – Erie
Front row, from left: Mike Teixeira, PSB Industries; Tom Brooks, Mikron Valve; Marylee Butler, Erie Illusion; Michael Gardner, Snap-tite; and Anthony Santor, Great Lakes Home Healthcare. Back row, from left: Steve Shields, Snap-tite; Mike Miczo, Mikron Valve; Josh Meyer, UPMC Hamot; Heidi Patterson, St. Mary’s Home of Erie - East; Dick Imler, Erie Water Works; and Joshua Britt, PSB Industries.
Front row, from left: Scott Wasson, Advanced Cast Inc.; Kevin Malliard, Ainsworth Pet Nutrition; Christine L. Wilson, Lawrence County Drug & Alcohol Commission; and Phil Wheaton, Ron Zuccaro and Steve Van Sickle, Ainsworth Pet Nutrition.
Certified Supervisory Skills Series – Erie
Back row, from left: Roxanne Stickney, Community Care Connections; Terry Williams, Deist Industries; Keith Bailey, Bucks Fabricating; Ben Vrablik, Marquette Savings Bank; Joe Heme, Ainsworth Pet Nutrition; Cora Mozina, Dawn Fronce and Bethany Van Sickle, Marquette Savings Bank; and Ken Onesky, Ainsworth Pet Nutrition.
Back row, from left: Terry L. Barrett, Accuride; Jeff Shaw, Erie County Adult Probation; Mark Causgrove, Erie County Domestic Relations; Brian Bennett, Superior Tire & Rubber; Dale Cubitt, Shriners Hospitals for Children - Erie; and Robert J. Blakely, Erie County Juvenile Probation Department.
Front row, from left: Ken Owens, Superior Tire & Rubber; Charlene Reeger, Erie Insurance; Jeremy Laurin, Great Lakes Home Healthcare; and Don Holmes, Eriez Magnetics.
April 2012 > www.mbabizmag.com > 23
People Buzz Sieber has been president of McCarty Printing in Erie since 1995 and is also general partner of Siebro Partnership. He is a graduate of Penn State Erie, The Behrend College.
MARQUETTE ANNOUNCES NEW BOARD APPOINTMENTS Marquette Savings Bank, with offices in Erie and Crawford counties, has announced the addition of two board of trustee members â&#x20AC;&#x201D; Max Holt and Donald Sieber â&#x20AC;&#x201D; to its all local board. One seat replaces that of Richard T. McCormick, now an emeritus trustee, who had been on the board for 20 years. Holt, of Meadville, is the owner of Marketing for Manufacturing, Inc., which specializes in packaging products and filling operations for raw materials and bulk food products. He is a graduate of Geneva College and past chairperson of the Pittsburgh Chemical Society.
VIKING INTRODUCES DIRECTOR OF SALES AND MARKETING Bob Holbrook has joined Viking Plastics in Corry, Pennsylvania, in the newly created position of director of Sales and Marketing. Holbrook brings more than 30 years of plastics industry sales and marketing experience to Viking, and has an expertise in the selection of materials for applications and its relation to product design and pricing. Viking Plastics is a global supplier of engineered, injection-molded and assembled sealing solutions and plastic fasteners.
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DEPARTMENTS > Contact: Karen Torres
STAIRWAYS BEHAVIORAL HEALTH WELCOMES NEW OPERATIONS MANAGER Erie, Pennsylvania-based Stairways Behavioral Health, a private nonprofit organization that assists people with their mental healthcare needs, has named SoĂąa Hernandez as the new operations manager for Center City Arts, the health-care organizationâ&#x20AC;&#x2122;s arts and wellness program. In this role, she will manage daily operations of Center City Arts classes and events, while helping to strategize the growth and integration of holistic programs for creativity and wellness into the broader community. Hernandez holds degrees in nutrition and business management, previously working for more than a decade in preventative health.
CentralPA Link
DEPARTMENTS > Contact: Karen Torres
Association Unveils New Educational Initiative On behalf of the Manufacturer & Business Association, I am excited to announce the commencement of our new â&#x20AC;&#x153;educational initiativeâ&#x20AC;? in central Pennsylvania. Employers in this region will work with area high schools to provide connecting activities for technical students, including: â&#x20AC;˘ Classroom presentations; â&#x20AC;˘ Job shadowing; â&#x20AC;˘ Plant tours; â&#x20AC;˘ Mentoring; â&#x20AC;˘ Resume, application and cover letter composition; and â&#x20AC;˘ Interviewing techniques. In addition, the Association plans to present its prestigious Patrick R. Locco Scholarship Award to a high school senior in central Pennsylvania who will be attending a technical college. Until now, the program was only available to students in Erie, Crawford and Mercer counties. Named in honor of Association Vice President Patrick R. Locco, a strong advocate of vocational education, the Association created this award in 1972 to recognize outstanding high school students who distinguish themselves in pursuit of technical and academic excellence. Students must apply and
New Member Spotlight
be nominated by a teacher to be considered. Each school narrows the nominees to their top five candidates who are interviewed by local businesspeople who choose the winners. Award winners each receive a $1,000 scholarship to apply toward their advanced education and their names are permanently inscribed on a plaque prominently displayed at their respective schools. We believe that these connecting activities will bring awareness to our employees of the future and let them know that we have many good and important manufacturing jobs right here in our area, and we will need employees who are prepared to fill them. Jerry Wertz is the chairman of the Manufacturer & Business Associationâ&#x20AC;&#x2122;s Central Pennsylvania Division Advisory Board. He also is the president and CEO of Data Papers, Inc., a printing and marketing services provider based in Muncy, Pennsylvania.
Youâ&#x20AC;&#x2122;re Invited to the MBA Central Divisionâ&#x20AC;&#x2122;s May 15 Annual Event in Williamsport The Manufacturer & Business Association (MBA) recently announced that American political analyst and FOX News commentator Dick Morris will be the guest speaker at the MBA Central Divisionâ&#x20AC;&#x2122;s Annual Event at 6 p.m. Tuesday, May 15, at the Genetti Hotel in Williamsport, Pennsylvania.
The Manufacturer & Business Association is pleased to welcome SilcoTek Corporation as its newest member in the central Pennsylvania region. Formed in 2009 as a successful spin-out of Restek in Bellefonte, Pennsylvania, SilcoTek Corporation is today the worldâ&#x20AC;&#x2122;s largest provider of silicon CVD (chemical vapor deposition) treatment services. The company, located at 112 Benner Circle in Bellefonte, offers custom, highperformance silicon coatings targeting the analytical, process instrumentation, oil, gas and semiconductor industries.
To learn more about SilcoTek, visit www.SilcoTek.com or call 814/353-1778.
One of Americaâ&#x20AC;&#x2122;s most notable political consultants, Morris makes more than 400 appearances each year and is well known for his hard-hitting, nonpartisan commentary about the U.S. political scene. He is the author of several best-selling books, including Condi vs. Hillary, Rewriting History, and Behind the Oval Office: Winning the Presidency in the Nineties. Additionally, Morris writes a weekly column for the New York Post, The Hill, and The DWH WKH ' 6DYH National Post. â&#x20AC;&#x153;In an election year, it can be difficult to keep up with all the goings on in Washington and on the campaign trail,â&#x20AC;? says Jerry Wertz, the chairman of the Associationâ&#x20AC;&#x2122;s Central Pennsylvania Division Advisory Board and president of Data Papers, Inc., a major sponsor of the event. â&#x20AC;&#x153;A great way to sort it all out is to spend an evening with Dick Morris, who has his finger on the pulse of American politics.â&#x20AC;? For table reservations or to learn more, see the digital edition of this monthâ&#x20AC;&#x2122;s magazine at www.mbabizmag.com, visit the Associationâ&#x20AC;&#x2122;s website, www.mbausa.org, or call 570/322-9840 or 800/815-2660.
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PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199
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