September 2012 Business Magazine

BUSINESS M A G A Z I N E Manufacturer & Business Association

VOLUME XXV, NUMBER 9

Scott Bonnell, Owner

AUTO GROUP Where Customers Deserve the Very Best / Page 12

SEPTEMBER 2012

BUILDING YOUR BUSINESS TAKES THE RIGHT TOOLS TO MANAGE THE OUTFLOW OF CASH. With Cash Flow Options from PNC, we can help you take advantage of everyday untapped opportunities. Like improving your payment practices. So you have more control over the timing of cash outflow, and save time and money getting cash to where it needs to go. For uncovering opportunities to help improve your cash flow, visit pnc.com/cfo, stop by a branch or call 1-855-PNC-CFO5.

SM

for the achiever in you

ACCELERATE RECEIVABLES IMPROVE PAYMENT PRACTICES INVEST EXCESS CASH LEVERAGE ONLINE TECHNOLOGY ENSURE ACCESS TO CREDIT

SM

All loans are subject to credit approval and may require automatic payment deduction from a PNC Bank Business Checking account. Origination and/or other fees may apply. PNC is a registered mark of The PNC Financial Services Group, Inc. (“PNC”). Cash Flow Options is a service mark of The PNC Financial Services Group, Inc. © 2012 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC

12

September 2012

EDITORIAL >

FEATURES >

Why patient education is key to medication safety.

Association President Ralph Pontillo responds to President Obama’s suggestion that business owners owe their success to government investment in infrastructure and other projects, saying, “if you’ve got a business, you didn’t build that.”

9 / Health Matters

3 / For What It’s Worth

CHRONIS MANOLIS

11 / Legal Brief

Should your business maintain a social media policy?

5 / Spotlight

DAN MILLER

Association Chairman Dale Deist, founder of Deist Industries, discusses the continued demand for technical careers and the growing skills gap in the region.

18 / Blue Ocean Strategy How strategic pricing can help attract the mass market of buyers.

ANGIE ANGUS

12 / Bonnell’s Auto Group Great White

Events Blue Ocean Strategy

Center

rocked the Main

Stage on Thursday

ERIE, PA 2012 BIKE RALLY JULY 19, 20 & 21 Manufacturer presented by the bike rally was Off-Road Express avidson of Erie, business Roar on the Shore® area The sixth annual ion, major sponsors Harley-D more than 20 the 2013 City of Erie and upcoming information on & Business Associat as well as the e or the and Rocket 101, e photo coverag arontheshore.com. complet For s. www.ro sponsor 18, 19 & 20, visit rally set for Juy

Each night, thousands

took part in 40 women bikers An estimated Off-Road Express. sponsored by

Friday’s headline

Tammy, welcome and his wife, to “Vanilla Ice,” Frank Polanski Roar Chairman better known as performer Rob Van Winkle, the 2012 rally.

left), P.E., Sr. (fifth from John B. Pellegrino of Ridg-U-Rak, Inc. and er CEO president and chairman of the Manufactur immediate past , with biker comedian Jr.’s Comedy & Business Association and guests at Wild Willy Parson Club in Erie.

Crowds cheered

as the bike parade

Learn how Scott Bonnell has spent the past 26 years building his auto body operation into one of northwest Pennsylvania’s largest and fastest-growing auto business empires, including Bonnell’s Collision Center, Auto Sales, Auto Glass, and Rod Shop.

night.

of rally goers

the first Ladies

filled The Hub

in Perry Square.

Only Ride,

act Slaughter.

Ride, Isle: The Mayor’s Erie, has of Thunder on the Harley-Davidson bikers sponsored by tradition with become an annual around Presque Isle ride taking a scenic

Vines, rider Trevor thrilled Yamaha freestyle Off-Road Express, sponsored by stunt show. his crowds with was crowned Shannon Dodds Shore 2012-2013. the Miss Roar on

State Park.

24

Hub. rolled into The

19 / On The Hill

Isle the Presque bikers packed the pre-bike Thousands of parking lot for Downs & Casino parade gathering.

Shore Roar on the Dale Deist and MBA Chairman joined representatives from flag Board members to make a specialJarrid L. Honor and Remember of Corporal to the family in 2011. presentation killed in Afghanistan King, who was

7

of and Joe Askins of Strokers Dallas Vineyards ride.

Rick Fairless Roar to the Bike Builder at the annual Off-Road Express

rode in the 3,000 bikers the annual An estimated Roar Bike Parade, Bringin’ in the by celebrity grand marshal led rally kickoff, Vanilla Ice.

a Key Sinnott presented Ralph Erie Mayor Joe Association President to the City to Association’s tireless work Pontillo for the on the rally each

75,000 to an estimated rally.

Organizers say attended the 80,000 people

this year’s bike New York won Lapping of of Lakewood, Cecile Elfman sponsored by Kelly and Susan raffle drawing, of Erie.

Harley-Davidson

highended with a The 2012 rally on Saturday night with energy concert headliner KIX.

September 2012

> www.mbabizmag.com

year.

September 2012 izmag.com < 22 < www.mbab

> SPECIAL EVENTS / 22

> 23

On November 6, Pennsylvania voters will decide who will serve as the state’s next U.S. senator — incumbent Democrat Bob Casey Jr. or Republican challenger Tom Smith. Read the candidates’ positions on three critical issues.

See photos from the Association’s sixth annual Roar on the Shore® bike rally and 2012 Golf Classic Tour.

DEPARTMENTS > 7 / Business Buzz 16 / HR Connection

20 / Legal Q&A 25 / 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!

September 2012 > www.mbabizmag.com > 1

Too much fat in your manufacturing process .

?

Numbers donâ&#x20AC;&#x2122;t lie. If your costs are growing instead of your bottom line, LEAN manufacturing may be the solution. Our experts will conduct an on-site briefing to show you how value stream mapping and continuous improvement programs can help rid your business of unwanted costs due to: s Overproduction s Transportation delays s Underutilized employees s Excess inventory s Product defects s Wasted time and motion s Scrap The Northwest Industrial Resource Center also offers LEAN education and in-plant implementations to help keep your business in top shape.

We manufacture success.

www.nwirc.org For more information, contact: Erin Heath, 814-590-1219 s Cameron, Clarion, Clearfield, Elk, Jefferson, McKean and Potter Counties Susan Hileman, 814-572-2077 s Crawford, Forest, Mercer and Venango Counties Gerry Schneggenberger, 814-898-6891 s Erie and Warren Counties

For What It’s Worth

EDITORIAL > by Ralph Pontillo

Yes, Mr. President, We Did Build That Ralph Pontillo is the president of the Manufacturer & Business Association.

Over the years I have been blessed and honored to work for and with some very remarkable businesspeople. Men and women who have built their businesses from nothing to multimilliondollar enterprises that provide jobs and opportunities to thousands of families in our region. I would like to share a story with you about one such businessman — a person I have known for more than 30 years. I am not even sure that he knows I know this story. What I do know is that it is true. I learned about it from someone who was there.

This businessman was sitting at his desk writing out his payroll checks (remember this was 25plus years ago). As he continued to write the checks and log in the amounts in his ledger, he discovered that there were not sufficient funds in his deposits to cover his payroll. His business wasn’t in trouble but, as any businessperson will tell you, cash flow can be a problem.

Without saying a word, he walked to his car and drove it to a dealership. Within one hour he made a cash deal that would cover his payroll — everyone, that is, except himself. He walked from the car dealership

to his bank and deposited the funds. He then walked back to work and continued to write checks to cover his payroll. In his mind, those workers and their families were counting on those paychecks and not meeting payroll was not an option. I am sure that gave him some solace as he walked home that night.

I hadn’t thought of that story until recently when I was listening to a speech from President Barack Obama who said, “If you got a business, you didn’t build that. Somebody else made that happen.”

My question to President Obama is this, who exactly was that “somebody else” who made that payroll on that day?

This is only one of thousands of stories about the courage and sacrifices of entrepreneurs within our region and throughout our great nation. Men and women who risked everything they own to build their business and ultimately achieve the American dream.

It is difficult to believe that a sitting president of the United States does not understand that

this great nation wasn’t built by politicians or the government.

This great nation was built by the people. We are not the result of government; government is the result of us. Government doesn’t provide jobs, opportunities, wealth creation, innovation or anything else for that matter.

Government prosperity is the result of the people’s prosperity.

Mr. President, what came first — airports or the Wright Brothers, national highway systems or Henry Ford, Congress or the people who risked everything for individual freedom against the greed of government?

TELL US YOUR STORY! Starting this fall, the Business Magazine will publish a new series, “Risking It All,” to highlight the entrepreneurs who took risks and made sacrifices to build their businesses in our region. If you know of an Association member who should be profiled, please contact Karen Torres at ktorres@ mbausa.org or 814/833-3200.

September 2012 > www.mbabizmag.com > 3

Tired of getting the runaround when it comes to business loans?

At Marquette, we take the call. We make the call.

If automated answering, credit decisions from people who donâ&#x20AC;&#x2122;t even know you, and out-of-town delays have you down, pick up a phone and call Marquette. At Marquette, decisions are made quickly because true hometown business banking means all lending decisions are made locally.

Dave Slomski Vice President of Business Banking (814) 455-4481

James Jackson Business Banker (814) 455-4481

Louis Natalie Chief Credit Officer (814) 455-4481

Eugene Cirka Business Banker/ Crawford County (814) 337-7929

The Hometown Bank with the Hometown Touch

SPOTLIGHT > by Karen Torres As an employers’ organization representing more than 4,500 members throughout northwest and central Pennsylvania, the Manufacturer & Business Association (MBA) provides employers with education and support on manufacturing and business issues, and works with local organizations to promote technical training opportunities for employees. Dale Deist, chairman of the MBA Board of Governors and founder of Deist Industries in Hadley, Pennsylvania, spoke with the Business Magazine about the continued demand for technical careers and the growing skills gap in the region.

You recently addressed the Governor’s Advisory Commission on Postsecondary Education about the understanding of career needs and opportunities for those in the technical trades. What overall message did you want to send?

There are tremendous career needs and opportunities right in the local area. Forty six percent of the careers are in a technical skill area and our manufacturing companies cannot find skilled applicants, even though we have 7.5- to 8-percent unemployment.

You note that manufacturing technical careers, such as welders and machinists, comprise 10 percent of the total careers nationally, and in this region they are double that, about 20 percent of total area careers. What skill sets must our youth acquire in order to meet this demand?

They need basic eighth grade math and communication skills. They need to know how to interact with teams, build interpersonal relationships, and they must have a work ethic where they come to work every day and on time. Likewise, they need to understand that these are drug-free workplaces and that is a requirement. For welding, in particular, they need about 300 hours of welding training and AWS basic certification. In the case of machining, that requires, in addition to eighth grade math, some algebra and possibly some trig, and about 1,000 hours of training in the machining area.

Professional industrial careers cover a wide array of categories, such as design engineers, HR specialists, business managers, etc., and represent 30 percent of careers nationally. What needs to be done to attract more interest in these positions?

First of all, it needs to be communicated that good, family sustaining careers exist in manufacturing. So, that means all of us need to talk — neighbors, school superintendents, teachers, guidance counselors, parents, and students. Once we have that, then I think we need to understand what it is like to work in these workplaces.

We need to ask our manufacturers and our businesses to offer plant tours; we need to ask those businesses and manufacturers to provide technical speakers to the high schools and advisers to the vocational career centers. And I think we need to ask those businesses to consider the wisdom of providing internships to high school students who are in these training positions. If there is a mismatch, they find that out early and then pursue the career path that is better suited for them.

How can high schools help better prepare the next generation of workers?

If every high school graduate was required to have 300 hours of a basic skill, they would have some practical knowledge as well as some theoretical knowledge to extend their education, which could springboard into the same career or something different — carpentry, basic nursing, marketing, CAD (computer aided design), robotics, or even culinary arts. If every student had this, and there is no longer the stigma that, ’Hey, if you aren’t in college prep, you are going to get a second class education in the vocational schools,’ we would all have a vocational background as a springboard for our lives.

Why is it necessary to address these issues at this time?

It has been miscommunicated by our president and by our politicians to our citizenry that you have to go to college if you want to have a successful career.

Nothing could be further from the truth. All careers are important and, obviously, the professional careers that require college are important, but that is only 30 percent of total careers. The 46 percent of technical skill careers is a larger segment, and it is completely missed.

When I speak to eighth grade students about careers, would you believe that 90 percent of them think you have to go to college? These poor kids don’t realize that you can work with your hands, find a career and stay in the local area because we can’t find skilled applicants.

VOL. X X V, NO. 9 SEPTEMBER 2012 Manufacturer & Business Association Board of Governors

Editor in Chief Executive Editor Managing Editor & Senior Writer Communications Specialist

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 McMathis jmcmathis@mbausa.org

Contributing Writers

Angie Angus Scott Lee Chronis Manolis Dan Miller

Feature Photography

Ron Stephens La Mirage Studio 814/835-1041

Photography

Jessica McMathis Casey Naylon Karen Torres

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: Scott Bonnell, a veteran sprint car driver and longtime auto enthusiast, has built one of northwest Pennsylvania’s largest and fastest-growing auto business empires.

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.

September 2012 > www.mbabizmag.com > 5

PRINTING CONCEPTS PRESENTS VARIABLE DATA PRINTING FOR A MORE Personalized RESPONSE Hello Chris,

TION YOUR INSPEC STOP IN FOR RD ON YOUR FO ICE RV SE D AN NOW SUPER DUTY

Personalize your message and images

ur Ford Super We see that yo and an inspection r fo e du is Duty e to e. We would lik Hello Paul, service in Jun s of the advantage remind you of enue IN FOR YOUR INSPECTION rtified 10th Av STOP using Ford Ce 1st toSERVICES ON YOUR FORD e Jun re fo be AND by op St Garage. back on ditional $100 HYPRID NOW ad an e eiv rec le. du he sc ce your next servi We see that your Fusion Hybrid is due for an inspection and service in August. We would like to l? of de remind you of the advantagesHell another mo o Janet, ur Interested in yo t fi t tha using Ford Certified 10th Avenue tions op me so are Here 1st Garage. Stop by before August ur needs!

STOP IN FOR YOUR INSPECTION budget and yo back to receive an additional $100 AND SERVICE ON YOUR FORD on your next service schedule.

EXPEDITION NOW!

ty is running t your Super Du to ensure tha important w ho ow We want you kn We n be for work. make an the best it ca ur job. Call to ke sure pacity is for yo r team will ma the towing ca Ou . by p sto today or appointment y. atl gre g nin your truck is run F150 00 to sign in 3,5 .COM/CHRIS Starting att $2 SERVICING RD We likew.that you are doing your part of the environmen FO no VISIT WWW. te da rvice by driving a Fusion Hybrid, and we want to make sure you se ur yo le du and sche keep on the road. Call to make an appointment today or stop by. Our team can make sure you are getting the best gas mileage out of your Hybrid.

We see that your Expedition is due for an inspection and service in July. We would like to remind Here are some options that fit your you of the advantages of using budget and your needs!

Ford Certified 10th Avenue Garage. Stop by before July 1st to receive an additional $100 back on your next service schedule.

Super Duty

55 rting at $29,4 Sta in another model?

Interested

VISIT WWW.FORDSERVICING.COM/PAUL to sign in and Fiesta schedule your service date now.

Starting at $13,200 We want you to participate in the best family memories by helping you get to your destination as easily as possible.

Call to make an appointment today or stop by. Our team will make sure you and your family is happily satisfied.

VISIT WWW.FORDSERVICING.COM/ JANET to sign in and schedule your service date now.

Use integrated marketing campaigns to capture success

Focus

Starting at $16,200

Interested in another model?

Here are some options that fit your budget and your needs!

Flex

Starting at $30,885

Explorer

Starting at $28,870

Promote products and services based on individual interests

At Printing Concepts, we embrace new ways to offer direct mail solutions. Through Variable Data Printing (VDP), you can customize full- color direct mail campaigns to ensure a better response and increased return on investments. When you focus on individual customers, you will find that more people respond positively to your product and brand. t #FUUFS 3FTQPOTF 3BUFT With variable data printing, lift your brand to new levels by targeting individuals and their needs. t 1FSTPOBMJ[F UIF .FTTBHF Enhance a personalized message for each recipient through personalized direct mail and online outlets. People are more likely to respond to direct communication. t $BQUVSF 7JTJUPS 3FTQPOTFT Gain background information that will help you tailor your next campaign more efficiently. t (FOFSBUF .PSF $VTUPNFST Advertising campaigns that work on multiple levels are more likely to convert more people to your product. Get people interested by speaking to them directly.

Eg^ci^c\ 8dcXZeih! >cX# 4982 Pacific Avenue Erie, PA 16506 tf 800-540-7805 / p 814-833-8080 f 814-833-4208 printcon@erie.net www.printingconceptsonline.com

Business Buzz NORTHWEST CELEBRATES THIRD J.D. POWER AWARD More than 700 employees of Northwest Savings Bank attended a company celebration and parade at the bank’s headquarters in Warren, Pennsylvania, in honor of the 2012 J.D. Power and Associates trophy for Highest Customer Satisfaction with Retail Banking in the Mid-Atlantic region. This is the third consecutive year that Northwest Savings Bank has received the award.

The crowd was the largest single gathering of Northwest Savings Bank employees in the company’s 116-year history.

The J.D. Power and Associates 2012 Retail Banking Customer Satisfaction Study, conducted in January and February, analyzed overall customer satisfaction with their retail banking experience based on six factors: account activities, account information, facility, fees, problem resolution and product offering.

Northwest received the highest customer satisfaction score in the Mid-Atlantic Region, which includes Pennsylvania, New York, New Jersey, Delaware, Maryland, Virginia and Washington, D.C. Headquartered in Warren, Northwest is a full-service community bank that operates 168 offices in Pennsylvania, New York, Ohio and Maryland.

For more information, visit www.northwestsavingsbank.com.

SMITH’S PROVISION NAMED ’BEST OF THE ’BURGH’ Smith Provision Co. was recently named “Best of the ’Burgh” by readers of Pittsburgh Magazine.

Smith’s was featured in the July issue in the Best of the ’Burgh 2012 food and drink category. According to the magazine, “During the dog days of summer, there’s nothing like hot dogs to grill up at a picnic. Our reader writein winners are made by the familyowned, Erie-based Smith Provision Co.

DEPARTMENTS > Contact: Jessica McMathis

ERIE HOSTS 10TH ANNUAL ECONOMIC CONFERENCE

The Economic Research An estimated 200 people attended this year’s economic conference at Penn State Erie, the Institute of Erie (ERIE) held its Behrend College.

10th annual Economic Conference in July at the Penn State Erie, Behrend Campus in an effort to address the growing “skills mismatch problem,” with businesses unable to find qualified candidates despite Erie County’s high unemployment rate.

The conference drew approximately 200 participants, including economists, educators, and area business and community leaders.

Featured speakers included Dr. Julia Lane, senior managing economist for the American Institutes of Research in Washington, D.C.; a panel discussion with Penn State Behrend Chancellor Dr. Don Birx, Manufacturer & Business Association Board of Governors Chairman Dale Deist, Pennsylvania State Senator Jane Earll, and Dr. Aldo Jackson, director of the Erie County Technical School; among others. The conference’s keynote speaker Sandra Pianalto, president of the Cleveland Federal Reserve Bank, addressed the U.S. economic recovery, explaining, “If the expansion were to continue to lose momentum, and inflation threatened to run persistently below 2 percent, additional policy action could be warranted.”

To see coverage from the ERIE Conference, visit www.mbabizmag.com.

They’re also the official hot dogs of the Pittsburgh Penguins and the CONSOL Energy Center.”

For more information, visit www.smithhotdogs.com.

CHANNELLOCK RELAUNCHES CODE BLUE LINE OF PLIERS Channellock, Inc., a worldwide leader in the manufacture of highquality pliers, announces the re-launch of its CODE BLUE line of pliers, as well as the return of manufacturing from overseas to a Meadville, Pennsylvania partner. According to the company, because of this manufacturing shift, Channellock’s entire CODE BLUE line now features newly designed American-made grips.

Channellock’s popular CODE BLUE line of pliers has been improved with redesigned grips that feature composite thermoplastic elastomer cores and over-molds

that deliver a more secure hold and greater durability.

According to the company, “While the core of a CODE BLUE plier has always been forged in Channellock’s Meadville facilities, the plier’s grip has, until recently, been produced outside the United States. However, after deciding on a streamlined grip redesign, Channellock elected to move its grip production to Meadville-based contractor Evolution Molding Solutions. ”This change has meant Channellock can not only realize an improved grip design, but also dramatic cuts in shipping and production times and enhanced quality control processes now that grip production is locally sourced. All of these developments will facilitate the company’s plan to significantly expand the CODE BLUE line in 2013.”

For more information, visit www.channellock.com.

September 2012 > www.mbabizmag.com > 7

WHEN YOUR BOTTOM LINE IS UP. You have marketed your business. Your employees are loyal. Your customer base has grown and so has your bottom line â&#x20AC;&#x201D; now you need an expert.

Turn to the specialists at Schaffner, Knight, Minnaugh & Company, P.C. to not only meet your needs, but exceed them. By utilizing the international resources of our McGladrey Alliance, our teams can help you continue to grow and prosper.

When you are ready to keep your bottom line on top, give us a call.

Certified Public Accountants

Schaffner, Knight, Minnaugh & Company, P.C. ...

World Class Service for World Class Clients.

Visit our NEW website to learn more.

www.skmco.com Certified Public Accountants

Offices: Erie, PA

1001 State Street, Suite 1300 Erie, Pennsylvania 16501 814-454-1997

Jamestown, NY

500 Pine Street, Suite 14 Jamestown, NY 14701 716-483-0071

DuBois, PA

351 Aviation Way Reynoldsville, PA 15851 814-375-2700

The McGladrey Alliance is a premier affiliation of independent accounting and consulting firms. The McGladrey Alliance member firms maintain their name, autonomy and independence and are responsible for their own client fee arrangements, delivery of services and maintenance of client relationships. The McGladrey Alliance is a business of RSM McGladrey, Inc., a leading professional services firm providing tax and consulting services. McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clientsâ&#x20AC;&#x2122; business needs. McGladrey, the McGladrey logo and the McGladrey Alliance signatures are used under license by RSM McGladrey, Inc. and McGladrey & Pullen, LLP.

Health Matters

EDITORIAL > By Chronis Manolis

Understanding Pharmacy Patient Safety One of the basic assumptions about health care is that patients take medications to aid care.

However, there may be times when medication does not aid care, but, rather, jeopardizes patient safety.

Therefore, medication safety is an issue that should be taken seriously by health-care professionals and patients alike.

According to the Institute of Medicine — an independent, nonprofit organization — at least 1.5 million Americans are sickened, injured, or killed each year by medication errors. The extra cost related to preventable errors has been conservatively estimated at $3.5 billion a year and does not include lost wages, decreased productivity, or additional healthcare costs.

Three Categories of Medication Errors Prescribing — A physician needs to have complete medical information about the patient when determining appropriate medications to treat a particular condition and that also will not be harmful. This information includes all medications the patient is taking, all laboratory test results, other physicians involved in the patient’s treatment, any past hospitalizations, and any drug allergies the patient may have. It is critical that patients have their complete personal medical history and treatment information and make sure that this information is passed on to their physician.

Dispensing — Errors occur when patients receive a medication that was not intended to be given by the prescriber. Several factors contribute to this type of error. These include: hard-to-read prescriptions, medications that have similar names or appearances, patients

who have the same name, and any communication barriers that may exist.

Using — Patients may use a medication incorrectly or in error.

Often, patients do not understand which medications are to be taken, when to take the medication, what condition the medication is for, the importance of each medication, which medications interact with each other, or how to properly use the medications.

It All Starts With Knowledge Because patients are central to many medication errors, significant effort is needed to improve knowledge, skills, and motivation to use medications correctly. The path to better patient safety begins with increased knowledge on the part of the patient. Understanding your condition and how it is being treated is an important first step.

You can begin by keeping a list of all the medications you take, including over-the-counter medicines, vitamins and herbs, and share this information with your physician.

You should also always tell your doctor about any allergies or adverse reactions you have ever had to a medication.

It is very important that you understand everything about your medications. This includes why you are taking them, what side effects they may cause, how long you need to take them and whether this medicine can be taken in conjunction with other medicines or supplements, such as herbs.

Ways to Reduce Errors • Don’t be afraid to ask questions if you have doubts or concerns.

• Understand your role in your care.

• Ask for information about your medicines in terms you can understand.

• When your doctor writes a prescription, make sure you can read it.

• Ask for written information about the side effects of your medicine.

• If you have any questions about the directions on the label of a prescribed medicine, ask your pharmacist.

• Ask your pharmacist for the best device to measure your liquid medicine. Research shows that many people do not understand the right way to measure liquid medicines.

Patients play a critical role in ensuring medication safety. Being actively involved in your own care enables the sharing of key information among all providers and thus promotes enhanced medication safety.

For more information about UPMC Health Plan’s pharmacy services, please visit the website www.upmchealthplan.com.

Chronis Manolis is vice presIdent of Pharmacy for UPMC Health Plan, which is part of the integrated partner companies of the UPMC Insurance Services Division.

These include UPMC WorkPartners, LifeSolutions, UPMC for You (Medical Assistance), Askesis Development Group, Community Care Behavioral Health and E-Benefits – and which offer a full range of insurance programs and products.

September 2012 > www.mbabizmag.com > 9

0,//,21 6$9('

6R IDU WKLV \HDU ZH·YH KHOSHG PHPEHUV VDYH PRUH WKDQ PLOOLRQ LQ HQHUJ\ FRVWV 2Q WRS RI D FKDOOHQJLQJ HFRQRP\ EXVLQHVVHV OLNH \RXUV KDYH VHHQ D VXEVWDQWLDO LQFUHDVH LQ HQHUJ\ FRVWV DV HOHFWULF FDSV FDPH RII DFURVV 3HQQV\OYDQLD 7KDW·V ZK\ DV D WUXVWHG EXVLQHVV UHVRXUFH IRU PRUH WKDQ \HDUV WKH 0DQXIDFWXUHU %XVLQHVV $VVRFLDWLRQ 0%$ HVWDEOLVKHG WKH (PSOR\HUV· (QHUJ\ $OOLDQFH RI 3HQQV\OYDQLD ,QF (($ 3$ WR DFW DV WKH HQHUJ\ VXSSOLHU IRU RXU PHPEHUV :H SXUFKDVH GLUHFWO\ IURP WKH HOHFWULFDO JULG HOLPLQDWLQJ EURNHU IHHV DQG SDVVLQJ D VLJQLILFDQW VDYLQJV GLUHFWO\ WR \RXU ERWWRP OLQH %HVW RI DOO WKHUH·V QR ORQJ WHUP FRQWUDFW 7KH DSSOLFDWLRQ SURFHVV LV VLPSOH DQG WKH WLPH WR DFW LV QRZ

Blue Ocean Strategy Center

(PSOR\HUV· (QHUJ\ $OOLDQFH RI 3HQQV\OYDQLD ,QF

&DOO XV WRGD\ DW RU RU YLVLW ZZZ HHDSD FRP IRU PRUH LQIRUPDWLRQ

7KH (PSOR\HUV· (QHUJ\ $OOLDQFH RI 3HQQV\OYDQLD LV D VXEVLGLDU\ RI WKH 0DQXIDFWXUHU %XVLQHVV $VVRFLDWLRQ

Legal Brief

EDITORIAL > By Dan Miller

Should My Business Maintain a Social Media Policy?

In the age of ever expanding use of social media in the workplace, most employers rightfully believe that they should have a social media policy to regulate employees’ use of such forms of communication and marketing in the workplace. However, many employers who have followed this commonsense approach have found themselves being charged by the National Labor Relations Board (“NLRB”) for violating the National Labor Relations Act (“NLRA”). As a result of the NLRB’s aggressive stance toward employers’ attempts to regulate social media in the workplace, many employers have decided that it is not worth the risk.

What Does the NLRB Have to Do With Social Media?

Many employers question why the NLRB has anything to do with regulating social media in the workplace. The NLRA, which applies to almost all union and non-union employees, prohibits employers from interfering with, restraining, or coercing employees engaging in protected concerted activity. We often think of such activities as including the right to self-organization, to form, join or assist labor organizations, and to bargain collectively through representatives of the employees’ own choosing. Employers should keep in mind that employees also have the right to engage in other concerted activities, such as the right to discuss wages, benefits, and terms and conditions of employment with coworkers. These are often the topics discussed via social media outlets.

Employment policies that are deemed to be “overly broad” or “ambiguous,” including those pertaining to social media, have been found to restrict the employees’ rights under the NLRA. What has the NLRB Decided?

In a series of decisions, the NLRB has

taken an aggressive stance toward social media regulation by employers.

In many cases, social media policies have been found to be overly broad or ambiguous to the point where they are illegal. In some instances, the NLRB has overturned the discipline of an employee where the NLRB has found a social media policy to be overly broad or ambiguous.

The decisions of the NLRB have found highly questioned actions by employees, such as substantial criticism of an employer and managers, and profanity to be legally protectable concerted activity. In other words, some of the NLRB decisions have upheld employee rants against their employer via social media. The remedy where an employer is found to have violated the NLRA typically includes removal of the discipline, reinstatement of the employee, and the payment of back pay to the employee for time lost, as well as the posting of an NLRB Notice acknowledging wrongdoing.

These actions by the NLRB have left employers wondering whether it is possible to maintain a social media policy without risk of violating the law.

NLRB Guidance In an attempt to defend and explain the controversial decisions by the NLRB, the Acting General Counsel of the NLRB issued a series of three Guidances in August 2011, January 2012 and May 2012 summarizing many of the NLRB cases analyzing social media policies. Although the Guidances help to explain the problems associated with the adoption of social media policies, it still was very difficult to determine what form of a social media policy can be legally maintained.

Counsel, employers were provided with some additional guidance, including a sample social media policy that the NLRB found to be legal.

Therefore, employers who desire to adopt a social media policy now have a policy guideline that hopefully will be found to comply with the law.

Although the sample policy may help employers to comply with the law, it does little to explain why the NLRB has been so aggressive toward employers.

What You Should Know • The NLRB has significantly restricted an employer’s ability to regulate social media.

• The Guidances issued by the NLRB can be found online at www.nlrb.com/publications/ operations-managementmemos.

For more information about NLRB policies, contact Dan Miller at MacDonald, Illig, Jones & Britton LLP at 814/870-7708 or dmiller@mijb.com.

Dan Miller is a partner with the law firm of MacDonald, Illig, Jones & Britton LLP. He is cochair of the firm’s Labor & Employment practice group and represents management in collective bargaining, labor relations, employee relations, employment discrimination, unemployment compensation, and wageand-hour cases.

Fortunately, in the May 2012 Guidance issued by the Acting General September 2012 > www.mbabizmag.com > 11

AUTO GROUP

Bonnell’s management team includes, front row, from left: Owner Scott Bonnell, Rod Shop Manager Phil Palmer and Auto Glass Manager Noel Kriess, CPM. Back row, from left: Erie Collision Center Manager Nick Bonnell, Operations Manager Jody Barto, Auto Sales Manager Jim Dwyer and Fairview Collision Center Manager Bob Giacomelli.

WHERE CUSTOMERS DESERVE THE VERY BEST

The operation now known as Bonnell’s Collision Center was established in 1992 at a former historical site in Fairview Township. Since that time, Bonnell’s Auto Group has grown into four major divisions — Collision Center, Auto Sales, Auto Glass, and Rod Shop — with locations based in both Fairview and Erie, Pennsylvania.

As soon as you walk through the doors at Bonnell’s Collision Center, you know you’re dealing with professionals.

From antique gas pumps and oil signs to the brightly colored walls, custom artwork and gently cascading waterfall, Bonnell’s exudes a high-end feel not found in your typical auto repair business.

In many ways, that’s the brilliance behind owner and founder Scott Bonnell, who not only believes but also delivers on the promise that his customers “deserve the very best.”

“I’ve actually had insurance adjusters from Chicago and New York that have come here and said that they have never seen a place like this before,” says Bonnell. “And that is the feeling that I want to give my customers; I want them to feel comfortable.”

Bonnell’s professionals strive to give the most accurate estimates, taking the time to talk with customers and explaining what repairs are necessary and how much they will cost.

This sense of assurance is why so many customers, including regional car dealers like Bob Ferrando Ford and fleet-based businesses like Peterson’s Property Maintenance of Erie, have turned to Bonnell’s for their auto repair needs for upwards of 15 years or more.

“I believe people choose to work with people that they can trust,” says Bonnell. “The relationship that we have with the customers is what keeps people coming back.”

Bonnell, a veteran sprint car driver and longtime auto enthusiast, has spent the past 26 years building his shop’s reputation, and investing and fine-tuning his operation into one of northwest Pennsylvania’s largest and fastest-growing auto business empires. Today, Bonnell’s Auto Group includes four major divisions — Collision Center, Auto Sales, Auto Glass, and Rod Shop — with 74 employees at locations based in both Erie and Fairview Township.

“Along with top-notch customer service, quality is what I strive for on each and every job,” says Bonnell. “By nature, I am a competitive person and it has transformed my business.”

A Solid Reputation Bonnell’s is a full-service auto repair facility, including body shop, glass repair shop, and a complete car wash and detail center.

12 < www.mbabizmag.com < September 2012

Early on in his career, Bonnell was working for a body shop in Girard, Pennsylvania when he was sold on the owner’s offer to buy his equipment and buy him out of his collision repair business.

the measurement system on it; there is no margin for error. It puts it back to the manufacturer’s specs.”

The shop also price matches with OEM parts providers, giving customers brand new parts at aftermarket prices. “At Bonnell’s, we focus on quality and efficiency,” says Barto. “We strive to give a customer more than what they pay for.”

Bonnell’s paintwork guarantee is another such example. The shop’s highend Sikkens paint line enables its skilled technicians to match the variance of each car color, depending on where it was painted — and when — in the manufacturing process.

“I think one of the biggest things is that we guarantee our work for life as long as you own the vehicle,” adds Barto.

Bonnell’s Collision Center utilizes the latest technology for auto repairs in the industry today.

“At that point, I never thought about owning my own business or anything,” he says. “I had a ’69 GTO Judge that I sold to acquire the equipment and that is how it started.”

That was 1985 and, at that time, Bonnell was a one-man shop, operating as Girard Autobody, writing estimates, repairing and painting the vehicles and delivering them to the customers. He soon hired his first employee and, as word spread, found he had established a solid reputation for his workmanship in rust repair.

As Bonnell’s reputation for reliability grew, so too did the business. In 1991, he purchased his own building, a former historical site, in Fairview Township; and, by 1992, the operation now known as Bonnell’s Collision Center was established.

Over the course of the next few years, the Fairview facility underwent several additions until Bonnell, in 2005, decided to open a second location at the former Ace Glass building on 26th Street to better serve his Erie customers. “It has been a great move for us,” he says, “and the Erie location produces twothirds of the work that is being done.”

Bonnell’s Collision Center — managed by Bonnell’s son Nick in Erie and Bob Giacomelli in Fairview — is a major component of the Auto Group’s overall operation, with approximately 80 vehicles — from minor dings and dents to large collision repairs and paint jobs — serviced between the two shops each week. According to Bonnell, an estimated 85 percent of these jobs are insurance-related collision repair, with 15 percent representing customer pay.

“Once I built the new location, I started to receive more and more insurance work for collision repair,” Bonnell explains. “I believe the insurance companies saw that I was serious about what I was doing and the investment that I put into place.”

Technology Focused

When it comes to new advancements in the auto repair industry, Bonnell’s is far ahead of the game. The shop embraces a Lean-process environment and is continually investing in technology, as demonstrated by its Car-Bench System and state-of-the-art color-match paint capabilities.

According to Operations Manager Jody Barto, who has worked at Bonnell’s on and off for the past 16 years since high school, the Car-Bench System — the same frame equipment used by Lamborghini — gives Bonnell’s a competitive edge in the local market due to its ability to ensure accurate repairs, superior anchoring and shorter repair time than a normal frame system.

“If you have a severe front-end collision and your vehicle needs a unibody frame rail,” says Barto, “jigs hold it right in the exact spot it needs to be using

At Bonnell’s, both the shop’s technicians and equipment play a critical role in its ability to deliver better quality repairs, which is why so much value is placed on training — such as 5S or ASE (Automotive Service Excellence) certification — and new technology.

“We are always looking for continuous improvement,” states Bonnell. “There is always somebody out there that is going to try to do it better than you. That is my competitive edge coming in that you need to be always on top of things and ahead of the game.”

Greater Reliability, Better Service

Bonnell’s commitment to investing in his business led to the establishment of the Auto Glass division in 2010. As a separate entity, the business is able to provide the community with the same convenience and service for glass replacement and repair as its Collision Center.

“We try to do everything in-house as much as possible, and I felt that glass was one area we needed to improve on because we relied on outside vendors to do that work,” says Bonnell. “Now that we do that internally, I am better able to control the timeliness factor, so that on a Friday when a customer expects his or her vehicle to be done by 5 p.m. we aren’t still waiting for the vendor to show up to do the glass repair. The more control you have over these things, the better you are going to service your customer.”

The addition of Bonnell’s Auto Sales in spring 2011 has been another natural fit for the operation, providing customers with a reliable dealer for previously owned cars, trucks and SUVs. “It’s convenient, and customers trust us because they’ve had a past experience with us,” explains Bonnell. “I would not have done it had it been a distance away, but being right here so close to the Erie location, it just made sense.”

Managed by Jim Dwyer, who has 13 years of auto sales experience, Bonnell’s Auto Sales strives to locate clean, low-mileage vehicles that are in good condition. Customers also can specify the make and model they are looking for, and Bonnell’s will try to locate it.

“Jim knows which vehicles to buy and he treats customers the way I would want to be treated,” adds Bonnell. “He does a great job.”

Custom, Professional Work

For years, Bonnell’s passion for cars also included fixing up old cars in the Collision Center, but after suffering a back injury while racing — and with more free time on his hands — decided to turn the business into its own separate division. The result is the Rod Shop in Fairview where some of Bonnell’s most experienced technicians specialize in hot rods, classic cars and modified vehicles.

In fact, most of these custom jobs are done for collectors from outside the area, such as Pittsburgh and Cleveland, who have heard about Bonnell’s at various car shows. The shop’s work has been showcased in York, Pennsylvania and most recently the Goodguys PPG Nationals in Columbus, >

September 2012 > www.mbabizmag.com > 13

The shop’s high-end Sikkens paint line enables Bonnell’s technicians to get the perfect color match.

Bonnell’s Rod Shop in Fairview specializes in hot rods, classic cars and modified vehicles.

Ohio. Bonnell currently plans to show at the Detroit Autorama next year and one of his cars is going to be displayed at a vendor’s booth at the SEMA show in Las Vegas this fall.

According to Bonnell, his team’s goal is to gain industry recognition for their workmanship and possibly attain some national awards, such as Detroit’s prestigious Great Eight Award, within the next few years.

“That is what is neat about doing that sort of stuff,” explains Bonnell. “With Collision, people expect to have a vehicle brought back to pre-accident condition where when you do an old car, I think there is so much more pride.

It is just neat because you can make something unique.”

Continuous Improvement

Noel Kriess, a certified purchasing manager and manager of Bonnell’s Auto Glass, says that Bonnell’s is a perfect example of how an operation with so many divisions — and deadline-driven jobs — can run well with the right people and management systems in place.

“You have the Collision shops and the Rod Shop that depend on the Auto Glass division to take care of any kind of glass repair or replacement. You have got the Auto Sales division that depends on the collision shop when they bring in a vehicle that needs some mechanical work to it before it goes out front to be sold. It is kind of neat the way the four different divisions intertwine with each other and work so well with one another.”

And that is why communication plays such a role in the business’s day-to-day operations internally as well as with vendors and customers. “Keeping the lines of communication open is key and critical to making the jobs flow smoothly,” says Kriess. “When parts are going to be late, it is imperative that those vendors let us know so that we can communicate that to the technicians to see if that is going to change the date that the vehicle is going to be delivered.

If so, that enables us to contact the customer and make them aware of the recent changes.”

Bonnell’s also has taken that line of communication to the next level with its email updates, revamped websites, and by embracing the use of QR codes and social media interactions, including Facebook and Twitter. “Like any other aspect of the business, Scott definitely likes to stay ahead of the curve,” notes Kriess. “He likes to stay ahead of any other competition in the area and, in the business world, that is the way that communication is heading.”

Giving Back

As a successful businessman, Bonnell has stayed ahead of the curve while not losing sight of his customers or the community in which his business operates.

He makes numerous donations and sponsorships to many local organizations and charities, such as Africa 6000, the Erie City Mission, the Shriners Hospitals for Children – Erie, and Women’s Care Center, as well as local sports teams and annual church festivals. One of his most cherished causes is the Auto Racers For Kids Charities, of which he is vice president. The program has distributed nearly $100,000 to 16 children’s charities in the local area since 2007.

14 < www.mbabizmag.com < September 2012

“His caring nature for the local community is really quite amazing,” says Kriess. “It is a privilege to work for somebody like Scott who gives back to the community in such a big way. His compassion for the people who surround him is nothing less than astounding.”

Bonnell, himself a man of faith, says he is thankful for his customers and for the opportunities that he has been given. “I thank God every day for my blessings and without God I would not be where I am at. I think he has a plan for me, I am not sure what it is, but I have been blessed enough financially to be able to help some people out in the community and I give all the credit to God.” It’s humble statements like these that make you better understand Bonnell’s drive and determination — and why he places so much emphasis on service in every aspect of his business.

“My employees and values are why someone should choose Bonnell’s for their auto needs,” he says. “Quality, convenience and superior customer service can not only be expected of Bonnell’s, it’s what we deliver.”

For more information about Bonnell’s, visit www.bonnellsauto.com.

Bonnell’s Auto Group — founded by Scott Bonnell in 1985 that today includes Bonnell’s Collision Center, Bonnell’s Auto Sales, Bonnell’s Auto Glass and Bonnell’s Rod Shop.

Bonnell’s Collision Center 2570 West 26th Street Erie, PA 16506 Phone: 814/835-4351

4230 Franklin Road Fairview, PA 16415 Phone: 814/474-5508 Website: www.bonnellsauto.com/collision

Bonnell’s Auto Sales 2650 West 26th Street Erie, PA 16506 Phone: 814/833-7300

7695 West Ridge Road Fairview, PA 16415 Phone: 814/474-3260 Website: www.bonnellsauto.com/auto_sales

Bonnell’s Auto Glass

4230 Franklin Road Fairview, PA 16415 Phone: 814/474-5508 Website: www.bonnellsauto.com/glass

Bonnell’s Rod Shop

8000A Middle Road Fairview, PA 16415 814/474-2400 Website: www.bonnellsrodshop.com

<($56 ,1 %86,1(66 1R VPDOO IHDW LQ WRGD\·V GD\ DQG DJH +RZ GLG ZH GR LW" %\ SURYLGLQJ RXU FXVWRPHUV ZLWK WKUHH WKLQJV RQH

WZR

48$/,7< 352'8&76 683(5,25 $1' 6(59,&(6 &86720(5 6(59,&( :H·UH SURXG RI WKH ZRUN ZH GR :H·YH EXLOW RXU UHSXWDWLRQ DURXQG SURYLGLQJ WKH KLJKHVW TXDOLW\ GHVLJQ SULQWLQJ GDWD DQG GLUHFW PDLO VHUYLFHV DYDLODEOH LQ WKH PDUNHW

:H DUHQ·W VDWLVILHG ZLWK JRRG HQRXJK 2XU HQWLUH VWDII LV GHGLFDWHG WR SURYLGLQJ XQSDUDOOHOHG VHUYLFH IURP LQLWLDO FRQVXOWDWLRQ WKURXJK ILQDO GHOLYHU\ :KHQ ZH PDNH D PLVWDNH ZH PDNH LW ULJKW 1R H[FXVHV

WKUHH

5(68/76 :H FUHDWH UHOHYDQW WDUJHWHG PDUNHWLQJ IRU RXU FXVWRPHUV E\ DQVZHULQJ WKH WZR PRVW LPSRUWDQW TXHVWLRQV LQ EXVLQHVV :KR LV \RXU FXVWRPHU DQG :KDW GRHV \RXU FXVWRPHU ZDQW" :H ZRXOG QRW EH LQ EXVLQHVV WKLV ORQJ ZLWKRXW GHOLYHULQJ UHVXOWV

%XW HYHU\ VXFFHVVIXO EXVLQHVV GRHV WKLV ULJKW" 6R ZKDW VHWV XV DSDUW"

285 3(23/( 6LPSO\ SXW RXU VWDII LV ZKDW PDNHV XV JUHDW 7KH\ DUH WUXH SURIHVVLRQDOV FRQVXPPDWHO\ GHGLFDWHG WR RXU PLVVLRQ

48$/,7< Â&#x2021; 6(59,&( Â&#x2021; 5(68/76

:HVW WK 6WUHHW Â&#x2021; (ULH 3HQQV\OYDQLD Â&#x2021; Â&#x2021; WROO IUHH Â&#x2021; PDLO#WKRPDVOHHSULQWLQJ FRP

HR Connection MANY WORKERS SEEK TRADEOFFS FOR MORE VACATION TIME American workers want more vacation time and are willing to give up a lot to get it, according to new research.

A study by Inspirato found that half of all workers in the nation’s top 10 largest cities are willing to sacrifice workplace benefits in exchange for more paid time off.

Specifically, more than one-tenth of all employees who receive vacation time from their employer would prefer more time off over a higher salary or a promotion, while one-sixth of those surveyed would forgo a compensation bonus in exchange for more days off.

In addition, 10 percent of those surveyed would decline their company’s MBAAd_Layout 1 3/9/12 12:08 PM Page 2

401(k) match in return for more vacation time and a quarter would give up a chance at a private office for more days off. The one thing employees are not willing to sacrifice is their current salary. The study found that just 5 percent are willing to take a pay cut for more time away from the office.

Overall, the study shows the average employee in the 10 largest cities — Atlanta, Boston, Chicago, Dallas-Fort Worth, Houston, Los Angeles, New York City, Philadelphia, San Francisco and Washington, D.C. — receives 19 paid vacations days a year.

SURVEY: BOSSES DON’T REQUIRE OFF-HOURS WIRELESS WORK Businesses say they don’t expect employees to stay electronically connected to work on their off-hours

— though some workers might feel compelled to do so — a new survey says.

In fact, 21 percent of employers surveyed by the Society for Human Resource Management said they have formal policies limiting workers’ use of devices such as cell phones and tablets during their off hours. An additional 26 percent reported that they have informal policies to discourage their use outside work.

Of employers that don’t have such policies, 87 percent said they allow employees to set their own limits.

“Whether an employee responds to an email at night or during the weekend is usually linked to organizational norms,“ said Evren Esen, the manager of the society’s Survey Research Center.

The Austin Difference

HEALTHCARE • EDUCATION • INSTITUTIONAL • RETAIL & HOSPITALITY • INDUSTRIAL • CONCRETE

Contractors & Construction Managers Since 1906 Erie, Pennsylvania • Jamestown, New York www.eeaustin.com 16 < www.mbabizmag.com < September 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.

DEPARTMENTS > Contact: Stacey Bruce

Effective Delegation is an Essential Tool for Success No one ever argues about the wisdom of delegation. We all know it is a good idea; we just don’t do it. In many cases, we tried it once, it failed, and we never tried it again.

Successful managers become that way by hiring the right people and developing them. Delegation is a key tool in the development of individuals but it must be done correctly. Below are three rules for effective delegation: 1. Match the person to the job.

Everyone has strengths and it is your job to know who does what the best. Delegating to someone randomly will almost certainly end poorly for both you and the employee.

2. Guide but don’t restrict. Your key people are creative and want

to impress you. The end result is what matters anyway, so who cares if they have a different way to get there.

3. Spread it around. It is tempting to delegate to your best people; they get results. However, most everyone, when given the opportunity, has something to offer and, if trained properly, can contribute.

It can be tough to let go of tasks that we have done forever. In many cases we enjoy the work and don’t want to let go. However, you are shortchanging yourself, the company and your staff if you don’t spread the load occasionally. If the key to your future success lies in the strength of your staff, then it is truly in your best interest to properly delegate. Start today!

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.

Kristi Bailey, Director of Business Development & Services

Betty Reynolds, Commercial Lender

• Short & Long Term Loans

• Business Checking & Savings

• Merchant Services

• Lines of Credit

• Business MasterCard®

• Merchant Indirect Loans

• Equipment Financing

• Debit Business Card

• SBA Loans

Learn how Erie FCU can assist with your needs! *All Erie FCU loans are subject to credit approval. Erie FCU membership required.

Betty Reynolds,

• Employee Programs Kristi Bailey, Director of

Commercial Lender

Business Development & Services

(814) 825-2436 Ext. 1051 BReynolds@eriefcu.org

(814) 825-2436 Ext. 1035 KBailey@eriefcu.org

(814) 825-2436 • www.eriefcu.org 1109 East 38th Street 2436 Buffalo Road

•

•

1005 Greengarden Road

518 State Street

1220 West 32nd Street

•

•

5500 Zuck Road

1825 Downs Drive

September 2012 > www.mbabizmag.com > 17

EDITORIAL > by Angie Angus

Strategic Pricing Can Help Attract the Mass Market of Buyers Angie Angus is the manager of BOS Programs and Support Services.

Editor’s Note: Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, by authors W. Chan Kim and Renée Mauborgne, is an international bestseller that has been written in 42 languages. This article is part of a series that features excerpts from the book.

We previously determined how to offer your buyers exceptional utility in your product or service so they are compelled to purchase it, but at what price? How do you determine the price at which to sell your product? It is important to price it so that you produce a strong revenue stream but are still able to attract the mass market of buyers.

Initially, we need to determine whether the product is excludable. An excludable product is one that is difficult to imitate due to a patent or limited access. An example of limited access would be if you have specialized manufacturing facilities or processes that are difficult to replicate. If your product or service is not excludable, it will be easy to replicate.

“This lack of excludability reinforces the risk of free riding. Like the creative and explosive concepts of Curves, Starbucks, or Southwest Airlines, many of the most powerful blue ocean ideas have tremendous value but in themselves consist of no new technological discoveries,” according to Blue Ocean Strategy. “As a result they are neither patentable nor excludable and hence are vulnerable to imitation. All this means that the strategic price you set for your offering must not only attract buyers in large numbers but also help you to retain them.”

Blue Ocean Strategy provides a tool to assist with pricing called price corridor of the mass (see illustration), which includes two steps to determine a price that will draw a mass audience.

Here, we’ll address both.

Step One: Identify the Price Corridor of the Mass Look at all companies that may provide an alternative product or service to your offering. There are three possibilities to consider. There are companies that provide a similar product or service and are in the same form. These are usually considered direct competitors and are usually easy to identify.

Next are companies that provide the service or product in a different form but with the same function. Using an accountant to do taxes instead of a tax software program is an example.

The third group of competitors is more difficult to identify.

These are companies that offer a product or service that has a different form and function but allows the customer to reach a similar objective. For instance, Cirque du Soleil draws customers, not just from the circus or theaters, but also from 18 < www.mbabizmag.com < September 2012

bars and restaurants. These people had the objective of a pleasurable evening out so going to Cirque du Soleil provided a similar objective.

Make a list of all the companies that fall into these three categories in regard to your product or service. This will give you the full range of competitors that you should consider when pricing and provide you with new areas to look for customers.

Within the three bands in the box (see illustration), place circles where the competitors’ prices belong. The higher priced products go at the top and the lower priced products at the bottom. The largest concentration is the price corridor of the mass.

Step Two: Specifying the Level Within the Price Corridor of the Mass There are three levels to consider within the price corridor of the mass to narrow your pricing even further. The top level of pricing will contain products or services that have a high level of excludability. The middle level contains products or services that have some protection, and the bottom level are ones that contain no protection. Determine which of these levels applies to your product or service. Your price should be within that narrowed section of the price corridor of the mass.

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.

OntheHill

DEPARTMENTS > Contact: Lori Joint

Pennsylvania’s U.S. Senate Candidates Address Key Issues

Bob Casey Jr. Democrat

What can be done to spur economic growth?

I have a record of working with Republicans and Democrats to help put Pennsylvanians back to work and spur economic growth including efforts to fight unfair foreign trade and promote Pennsylvania manufacturing.

I led the successful fight to extend the payroll tax cut to provide an average tax cut of $1,000 per working family.

I pushed for a business tax credit to provide help for hiring new employees or increasing payroll.

What are your thoughts on the health-care law?

IMPORTANT ELECTION DATES

October 19: Last day to register to vote October 30: Last day to apply for a civilian absentee ballot November 2: Last day for absentee ballot to be postmarked November 6: Vote! General Election Day

Don’t Forget Your ID

Photo identification is required to vote at all state voting locations starting on November 6, 2012. For a list of acceptable forms of identification, including your driver’s license, visit www.votespa.com.

What do you see as the greatest challenges currently facing the business community?

Tom Smith Republican

In order to spur economic growth, we need to get government out of the way.

We can do this by repealing Obamacare, reforming the tax code, and cutting government overregulation.

By ending Obamacare and replacing it with free market solutions, we can lower the cost of coverage by employees.

A simpler, flatter tax code will end the uncertainty that businesses in America currently face. Finally, cutting government over regulation will no longer hinder economic growth.

No law is perfect. I have supported changes to the law including one to reduce paperwork requirements on businesses and repealing the medical device tax. The system was broken. Costs were out of control. The status quo was not working. Repealing the law will put more power into the hands of insurance company bureaucrats.

Obamacare represents the most intrusive power-grab in our nation’s history that has caused uncertainty for many American businesses. Instead, I support free-market reforms that increase competition and access for Americans.

Businesses face many challenges. I have focused on reducing the harmful effects of unfair foreign trade.

The greatest challenges facing the business community are overreaching government regulations, like Obamacare, and a complex tax code.

Chinese currency manipulation allows China to cheat and put American workers at a disadvantage. That is why I worked with a bipartisan group of senators to pass legislation forcing China to play by the rules. I also voted against new NAFTA-style trade agreements because they would put Pennsylvania jobs at risk while not doing enough to level the playing field for Pennsylvania workers.

Examples of reforms include removing the barriers from preventing insurance companies crossing state lines, expanded Health Saving Accounts, and tort reform.

The government has become too large and is becoming too involved in our businesses. The result has been increased uncertainty about the future. As a result, businesses have decided not to expand, lay off workers, or close all together.

September 2012 > www.mbabizmag.com > 19

Legal Q&A CAN I ASK ABOUT CONVICTIONS AND ARRESTS ON EMPLOYMENT APPLICATIONS? Assuming you are not in a jurisdiction that prohibits questions on applications about convictions (such as Philadelphia), you may ask about convictions on employment applications, but not arrests.

While the Equal Employment Opportunity Commission (EEOC) recommends as a best practice that employers not ask about convictions on applications, their Guidance is not binding. One possible alternative to not asking about convictions on all applications is to have different applications and different questions relating to criminal history for different positions or job classes.

Employers who do inquire about convictions on applications should expressly state on its application that a conviction is not an automatic bar to employment; this allows you to engage in an individualized assessment after the applicant reports that he or she has previously been convicted of a crime.

20 < www.mbabizmag.com < September 2012

WHAT SHOULD WE TAKE INTO CONSIDERATION WHEN EVALUATING A CANDIDATE’S CONVICTIONS? • the time that has passed since the conviction and/or completion of the sentence; • the nature of the job held or sought (specific duties, essential functions and environment); and, • the nature and gravity of the offense or offenses (harm caused, the legal elements of the crime, and the classification, i.e., misdemeanor or felony).

DEPARTMENTS > Contact: Tammy Lamary

Agency Updates Criminal History Guidance Criminal history information can be a critical tool in the employment decision process. During the past few years, federal and state governments and agencies have been restricting employers’ use of criminal history information in the employment process through regulation, litigation and legislation.

Recently, the U.S. Equal Employment Opportunity Commission ("EEOC") issued Enforcement Guidance (“the Guidance”), consolidating and updating its earlier guidance regarding the use of arrest or conviction records in employment decisions under Title VII of the Civil Rights Act of 1964. The Guidance provides that under some circumstances, use of an applicant’s or employee’s criminal history to make an employment decision may violate the prohibition against discrimination under Title VII. While Title VII does not specifically prohibit discrimination on the basis of an individual’s criminal background, courts have HA-HighestRated7.25x4.25_Layout 1 8/15/12

long held that employment decisions based upon arrest and court records that have a disparate impact on individuals’ protected characteristics (for example, race, color, religion, sex, national origin, etc.) are unlawful under Title VII. According to the Guidance, there are basically two ways an employer may defend employment decisions based on criminal history. First, the employer would need to show that consideration of criminal history is job-related for the position in question and the employment decision is consistent with business necessity. Second, if federal law or regulations exclude hiring based on criminal history then employers would not violate Title VII. The Guidance also summarizes the important difference between arrest and conviction records. Arrests are not proof of criminal conduct and are not sufficient to establish criminal conduct; therefore, a policy or pract8:03 AM Page 1 ice based on arrest alone is generally

not job related or consistent with business necessity.

The Guidance’s Best Practices section proposes that employers who currently utilize criminal background checks as part of the employment screening process should thoroughly examine their policies and procedures.

At the very least, employers should not categorically screen out applicants or employees based on criminal convictions, but rather should perform an individualized assessment.

Please contact me at 814/833-3200, 800/815-2660 or tlamary@mbausa.org for more information.

Tammy Lamary is Labor & Employment Counsel for the Manufacturer & Business Association’s Legal Services Division.

HMO and POS Medicare HMO *Current commercial health plan ranking is 30 (NCQA’s Health Insurance Plan Rankings 2011-12 – Private). (NCQA’s Health Insurance Plan Rankings 2011-12 – Medicare).

September 2012 > www.mbabizmag.com > 21

Events 2012 BIKE RALLY ERIE, PA JULY 19, 20 & 21 The sixth annual Roar on the Shore® bike rally was presented by the Manufacturer & Business Association, major sponsors Harley-Davidson of Erie, Off-Road Express and Rocket 101, as well as the City of Erie and more than 20 area business sponsors. For complete photo coverage or upcoming information on the 2013 rally set for Juy 18, 19 & 20, visit www.roarontheshore.com.

John B. Pellegrino Sr. (fifth from left), P.E., president and CEO of Ridg-U-Rak, Inc. and immediate past chairman of the Manufacturer & Business Association, with biker comedian Wild Willy Parsons and guests at Jr.’s Last Laugh Comedy Club in Erie.

Roar Chairman Frank Polanski and his wife, Tammy, welcome Rob Van Winkle, better known as performer “Vanilla Ice,” to the 2012 rally.

Thousands of bikers packed the Presque Isle Downs & Casino parking lot for the pre-parade gathering.

MBA Chairman Dale Deist and Roar on the Shore Board members joined representatives from Honor and Remember to make a special flag presentation to the family of Corporal Jarrid L. King, who was killed in Afghanistan in 2011.

Crowds cheered as the bike parade rolled into The Hub.

An estimated 3,000 bikers rode in the Bringin’ in the Roar Bike Parade, the annual rally kickoff, led by celebrity grand marshal Vanilla Ice.

Erie Mayor Joe Sinnott presented a Key to the City to Association President Ralph Pontillo for the Association’s tireless work on the rally each year.

22 < www.mbabizmag.com < September 2012

Great White rocked the Main Stage on Thursday night.

Each night, thousands of rally goers filled The Hub in Perry Square.

An estimated 40 women bikers took part in the first Ladies Only Ride, sponsored by Off-Road Express.

Friday’s headline act Slaughter.

Thunder on the Isle: The Mayor’s Ride, sponsored by Harley-Davidson of Erie, has become an annual tradition with bikers taking a scenic ride around Presque Isle State Park.

Yamaha freestyle rider Trevor Vines, sponsored by Off-Road Express, thrilled crowds with his stunt show.

Shannon Dodds was crowned Miss Roar on the Shore 2012-2013.

Bike Builder Rick Fairless of Strokers Dallas and Joe Askins of Off-Road Express at the annual Roar to the Vineyards ride.

Organizers say an estimated 75,000 to 80,000 people attended the rally.

Cecile Elfman of Lakewood, New York won this year’s bike raffle drawing, sponsored by Kelly and Susan Lapping of Harley-Davidson of Erie.

The 2012 rally ended with a highenergy concert on Saturday night with headliner KIX.

September 2012 > www.mbabizmag.com > 23

Events

The Manufacturer & Business Association, along with major sponsor UPMC Health Plan, recently hosted the 2012 annual Golf Classic Tour at Cranberry Highlands Golf Course in Cranberry Township, Pennsylvania. Proceeds benefited Pennsylvania Business Week, the Patrick R. Locco Scholarship Awards and the John P. Tramontano Jr. Education Fund. For complete photo coverage, visit the Business Magazine’s Photo Gallery at www.mbabizmag.com

The tourney’s 28 foursomes pose with the latest editions of the Business Magazine.

Ki Kim of major sponsor UPMC Health Plan welcomes golfers to the event.

Creative Imprints, represented by Ron Santos (right) and guests, donated the coolers for the foursomes.

Major sponsor UPMC Health Plan, represented by Ki Kim (left), enjoyed an unforgettable day of play.

Welcome sponsor Maple Donuts, Inc. provided a delicious breakfast.

24 < www.mbabizmag.com < September 2012

Howard Industries, represented by Gary Schneider (left) and guests, served as this year’s sign sponsor.

The golf outing is hosted at a different location each year. The 2012 Golf Classic Tour was held at Cranberry Highlands near Pittsburgh.

People Buzz STERLING TECHNOLOGIES NAMES NEW PRESIDENT Sterling Technologies recently announced that Cary Quigley has been promoted to president of the custom rotational molding company located in Lake City, Pennsylvania.

Quigley’s tenure at Sterling spans over 12 years as he has had management responsibility in many different areas including sales, manufacturing, quality, shipping, engineering and purchasing. He has been an integral part of the growth of Sterling Technologies since his start in 1999.

According to Greg Cronkhite STI’s CEO, “Cary has been a proven leader in this business over the years and has grown tremendously in knowledge of the rotational molding process, business practices and customer base. Cary was a natural choice for president as we transition the business into new categories and higher levels of revenue. Our recent vendor of the year award from a major customer was due in large part to Cary’s management skills in addition to the internal team he has assembled to service this specific account.”

Sterling has a customer base of more than 100 customers and 350 molded products with internal capabilities that include rotational molding, assembly and design capabilities.

THE MCDONALD GROUP WELCOMES ATTORNEY With 28 years of experience in litigation in both state and federal courts, Attorney Gary D. Bax recently joined the Erie-based law firm, the McDonald Group, L.L.P.

Attorney Bax built his practice with a concentration on medical malpractice, professional liability, premises liability, products liability, auto, police and civil rights defense as well as municipal law, corporate litigation and insurance coverage.

His practice includes residential and commercial real estate transactions, and estate planning and administration.

A 1980 cum laude graduate of Allegheny College, Attorney Bax earned his Juris Doctorate from Case Western Reserve University School of Law in 1983. He has been admitted to practice before the courts of the Commonwealth of Pennsylvania, U.S. District Court for Western District of Pennsylvania, U.S. District Court for Middle District of Pennsylvania and the U.S. Court of Appeals for the Third Circuit.

CHANNELLOCK ANNOUNCES TECHNICIAN APPOINTMENTS Channellock Inc., the Meadville, Pennsylvania-based company known worldwide for manufacturing high-quality pliers, has appointed Paul Sontheimer to reliability maintenance technician and Justin Barker to IT technician.

Sontheimer will be responsible for working with all maintenance, production and engineering associates to improve overall equipment efficiency on all current and new machinery and equipment.

He will work with preventative maintenance and total predictive maintenance programs to achieve the maximum overall equipment efficiency.

Sontheimer previously worked for Accuride Corporation in Erie. His previous responsibilities included: scheduling all maintenance work utilizing MP2 CMMS software, planner/scheduler of plant

DEPARTMENTS > Contact: Karen Torres

maintenance and the use of predictive maintenance techniques to prevent unscheduled downtime for machinery.

Meanwhile, Barker will be responsible for maintaining helpdesk requests relating to hardware/ software issues and upgrades, basic network troubleshooting, assist with IP telephone systems and troubleshooting printer issues.

Barker recently graduated from Laurel Technical Institute where he completed an internship as a computer technician at Penncrest School District. His internship provided training on various operations using both Macintosh and Windows computers.

ERIEZ PROMOTES NOVOTNY TO COAL PROCESSING MANAGER Erie, Pennsylvaniabased Eriez, a world authority in advanced technology for magnetic, vibratory, inspection and flotation applications, has promoted Derek Novotny to manager — Coal Processing.

Novotny joined Eriez in 2008 as a mining engineer. In his new and expanded role, Novotny will lead Eriez’ sales efforts to the coal industry, while also continuing to contribute his expertise in collateral assignments within the Minerals and Materials Processing Division.

Novotny graduated from Laurentian University of Sudbury, Ontario, as a mining engineer.

Prior to joining Eriez, he worked as a division technical manager at Austin Powder Company, manufacturers of industrial explosives, blasting agents and accessories for the quarrying, mining and construction industries.

September 2012 > www.mbabizmag.com > 25

PRSRT STD US POSTAGE PAID ERIE, PA PERMIT #199

For maximum quality and convenience, at a cost lower than standard plans…

Come on In!

UPMC Inside Advantage™ is a tiered network plan that provides the same types of coverage as other UPMC Health Plan offerings — but at a lower premium and lower out-of-pocket costs whenever employees choose to use quality hospitals right in their community.

It’s about savings. It’s about quality.

It’s about convenience.

It’s about time.

What are you waiting for?

…the smart new solution for small and mid-sized businesses in Erie, Crawford, Warren, and Mercer counties — from UPMC Health Plan.

Come on In!

For information, call: UPMC Health Plan – Erie Office 109 Boston Store Place Erie, PA 16501 814-833-6633