November2014
IMPORTANT MESSAGE: If your electric supply contract is expiring — or if you’re still buying from your utility company, we’re here to help you shop for a new supplier. Many Association members recently received letters from their current electric supplier informing them that their contract is about to terminate and recommending that they switch to a “specific” supplier. Caution! If you’re not getting a quote from the MBA’s expanded list of energy suppliers, you may not be getting the best plan or the lowest rates!
Expanded Suppliers
The more energy suppliers competing for your business, the better! Our expanded supplier network does just that ― bringing even more energy providers to the bidding process than ever before. We save you the time and aggravation by negotiating with the industry’s leading energy suppliers on your behalf. We’ll provide an apples-to-apples price comparison of the best rates (fixed and variable products) in an easy-to-understand format to help you select the best energy option for maximum savings.
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Contact Chuck Jenkins at 814/833-3200, 800/815-2660 or cjenkins@mbausa.org.
Employers’ Energy Alliance of Pennsylvania, Inc.
BUSINESS M A G A Z I N E Manufacturer & Business Association
Are You a Small Manufacturer With a BIG IDEA? / Page 11
VOLUME XXVII, NUMBER 11
NOVEMBER 2014
11
November 2014
Blue Ocean Strategy Center
EDITORIAL >
FEATURES >
7 / Health Matters
3 / Spotlight
How telemedicine and telehealth are transforming patient care.
Jim McKain, HR manager at Penn United Technologies, Inc. in Saxonburg, Pennsylvania, shares how this provider of quality, high-precision manufacturing solutions has utilized technology and innovation to maintain its competitive edge.
STEPHEN PERKINS, M.D.
9 / Legal Brief Why you should think about your company’s future — and possible opportunity for your competitors — before abandoning a patent application. DAVID WILLOUGHBY
11 / Ben Franklin Technology PArtners Organizers explain how the 2015 BIG IDEA Contest can help small manufacturers and entrepreneurs turn their innovative product or process ideas into real business opportunities.
4 25
13 / On the Hill
SPECIAL SECTION > 22 / Corporate Gift Giving & Event Planning Guide Getting ready for the holidays? Here are a few companies to consider for your seasonal celebrations.
Angela Zaydon, the Association’s state government relations representative in Harrisburg, discusses the inner workings of the state capital and how the MBA is actively involved in lobbying on its members behalf there.
EVENTS > 20 / See exclusive photo coverage from the Association’s Manufacturing Day celebration, Roar on the Shore® check presentation, and second annual HR & Employment Law Conference.
DEPARTMENTS > 4 / Business Buzz 14 / HR Connection
16 / Legal Q&A 24 / People Buzz
2014 Raffle Drawing for Professional Development Training It’s FREE! Register to become a new subscriber to the digital edition of the Business Magazine at www.mbabizmag.com and get a chance to win a free registration for Course I of the MBA’s regionally recognized Certified Supervisory Skills Series, three bestselling business books — The Second Curve, Blue Ocean Strategy and The Speed of Trust — plus two new coffee mugs! Drawing to be held December 18. November 2014 > www.mbabizmag.com > 1
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SPOTLIGHT > Technological innovation is the engine that drives modern economic growth by harnessing discoveries to create better products, more productive and competitive industries, and well-paying jobs. The Business Magazine recently spoke to Jim McKain, HR manager at Penn United Technologies, Inc. in Saxonburg, Pennsylvania, to discuss how this provider of quality, high-precision manufacturing solutions has utilized technology and innovation to maintain its competitive edge.
Penn United Technologies actually started in 1971 when machinists Carl Jones, Robert Becker and Charles Barton followed their entrepreneurial spirits and opened a small tool-and-die shop on the Jones family farm near Saxonburg. Today, Penn United provides manufacturing solutions for customers needing precision components or precision-assembled products. Describe some of your key products and the diverse markets in which they are used. We provide vertically integrated manufacturing solutions to the Energy, Oil & Gas, Medical, Defense & Aerospace, Fluid Handling, Automotive, Electronics & Telecom and various other markets. Two of our most visible products are the 1911 .45-caliber pistol sold by Cabot Guns and a sternal closure device called the Figure 8 that is used after open heart surgery. How important are technology and innovation to your business? It’s everything! Technology isn’t our middle name, but it’s in our name! We are constantly reinventing who we are and how we service our customers. What are some examples of Penn United’s current innovations and technological advances? Our diverse product lines allow us to provide individualized attention to our customers, working closely with their engineering departments to address pain points in their supply chain. Our solutions are customized to the needs of each customer. Just as important as technology and innovation are the people who must apply it in the company’s day-to-day operations. How large is your work force and how critical is a skilled work force to Penn United’s success? We are an ESOP, and we have 600 employee owners. Our employee owners are definitely our key to success because they are driven to grow the bottom line and create value for our business and for the stock they own. Having a properly trained work force is huge; but it is extremely difficult to find applicants with the skill set we need, so several years ago we invested in a 17,000-square-foot training facility that we call LIGHT (Learning Institute for Growth in High Technology), where we train almost everyone we hire. We have work centers set up that mirror our manufacturing areas, and we combine those with state-of-the-art multimedia classrooms and a quality lab where we conduct the training for our nine apprenticeship programs. Our training facility has one part-time and two full-time staff members. We use “subject matter experts” from our shop floor to teach specific classes as needed. We also offer training to our customers, local veterans groups, local high schools and other manufacturers — sometimes we even conduct training for our competitors. What is the biggest opportunity or challenge for Penn United in the year ahead? Challenges and opportunities are the same thing; we have the opportunity to innovate and show that manufacturing is still alive and flourishing in the United States, and right here in Butler County. We continue to diversify and evolve as the needs of our existing customers change, and we continue to seek out new opportunities that allow us to capitalize on our core competencies of precision machining, tungsten carbide manufacturing, stamping, electroplating, tool and die, and precision assembly. Work-force planning and development and holding on to all the “tribal” knowledge that got us through our first four decades will be one of our biggest challenges in the coming years. As generations change, the way we train them, the way we motivate them, the way we communicate to them, and how we retain them, will certainly be a high priority for our leadership. For more information about Penn United Technologies, Inc., visit www.pennunited.com.
Contact: Karen Torres
VOL. X X VII, NO. 11 NOVEMBER 2014 Manufacturer & Business Association Board of Governors
Joel Berdine John Cline Harry Eighmy Andrew Foyle Mark Hanaway Donald Hester Bill Hilbert Jr. Timothy Hunter Phil Katen Paul Kenny Jeff Plyler Sue Sutto Mike Weber
Editor in Chief
Ralph Pontillo rpontillo@mbausa.org
Executive Editor
Managing Editor & Senior Writer
Contributing Writers
Karen Torres ktorres@mbausa.org Stephen Perkins, M.D. David Willoughby Liz Wilson
Photography Casey Naylon & Illustration www.iStockPhoto.com
Advertising Sales
John Krahe jkrahe@mbausa.org
Patty Welther 814/833-3200 pwelther@mbausa.org
Design, Production Printing Concepts Inc. & Printing printcon@erie.net
ON THE COVER: Learn how the Ben Franklin Technology PArtners’ BIG IDEA Contest can help support manufacturers and entrepreneurs in every aspect of a development project. For full story, see page 11. 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 2014 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.
November 2014 > www.mbabizmag.com > 3
Business Buzz ERIE CITY MEMORIALS PURCHASED BY BURTON FAMILY
HEALTHSOUTH OF ERIE EARNS EXCELLENCE AWARD Pennsylvania Secretary of Health Michael Wolf recently presented HealthSouth Rehabilitation Hospital of Erie with the state’s award for “Excellence in Health Care Compliance,” an award recognizing the efforts of delivering consistent quality care to the citizens of the Commonwealth. HealthSouth was one of six selected for the award out of 216 health-care facilities in the state and the only one in the northwest region of the state. The Department of Health licenses and oversees hospitals statewide, including acute care hospitals, long-term acute care hospitals, critical access hospitals, rehabilitation hospitals, children’s hospitals and psychiatric hospitals. In addition, the department conducts about 2,000 inspections annually, including licensure and certification surveys, follow-up surveys and complaint investigations. Facilities receiving the award were required to have no health citations during the last state licensure survey and no major life safety code deficiencies on the last building inspection. All department-licensed hospitals were eligible for the awards and did not need to apply to be considered. “This award represents the collective work and effort of our team at HealthSouth, from admission to discharge, to provide the highest quality of care to our patients,” said HealthSouth Erie’s controller and interim CEO Lori Gibbens. “Today’s health-care environment is incredibly demanding with ever-changing obstacles. However, we remain committed to our patients, focusing on what’s important — the patient, family and their outcome.” For more information, visit www.healthsoutherie.com.
The Burton family, owners of Burton Funeral Homes and Ericson Memorials Studios, has purchased Erie City Memorials located on Iroquois Avenue in Harborcreek. This longtime eastside business, recently owned and managed by Ed and Mary Garr, specializes in granite cemetery monuments and markers. Going forward, the business will be known as Erie City Memorials by Ericson. According to Karen Burton Horstman, the purchase will allow Ericson Memorial Studios to better serve all of Erie County with convenient eastside and westside locations. In addition to cemetery monuments and markers, Ericson Memorial Studios creates landmark and park monuments, custom commercial signage, commemorative tiles, and etched paving bricks for community fundraising campaigns. It also offers pet loss cremation urns and memorials, cemetery flower vases, winter wreaths, vigil lights and candles. All of these products and services will now be available through Erie City Memorials on the eastside of Erie. For more information, visit EricsonMemorials. com and BurtonFuneralHomes.com.
“Social Engineering Fraud” Erie, PA: Due to recent developments in sophisticated crime schemes, Insurance Management Company over the past six months has actively participated with a nationally recognized insurance company to develop a new Crime Insurance coverage…“Social Engineering Fraud.” Social Engineering Fraud is a crime loss resulting from the willful transfer, payment or delivery of Money or Securities by your firm to an imposter purporting to be your Vendor, Client, or an Employee (often through the use of emails where criminal parties have incredible insight about individuals and events perhaps from social media)*. This is a very timely and valuable coverage. Until now, we knew of no coverage in a standard Crime policy for losses resulting from the willful parting of Money or Securities under false pretense or fraudulent instructions. Insurance Management Company believes every business has a need to protect themselves from Social Engineering Fraud. If you would like to know more, please call us or send us an email to discuss this new coverage. *Actual insurance policy will determine coverage
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DEPARTMENTS > Contact: Karen Torres
ERIE FEDERAL CREDIT UNION AMONG TOP 200 HEALTHIEST CREDIT UNIONS Erie Federal Credit Union (Erie FCU) was recently named to the 2014 edition of the Top 200 Healthiest Credit Unions in America, ranking No. 174 on the list, according to the bank account comparison site DepositAccounts.com. Headquartered in Erie, Erie FCU is the 21st largest credit union in the state of Pennsylvania. It is also the 558th largest credit union in the nation. Each year DepositAccounts.com evaluates the financial health of every federally insured credit union in the United States – more than 6,600 total. Each institution is graded on a number of factors, including capitalization, deposit growth, and loan to reserve ratios, in order to determine a comprehensive health score. From those 6,600 credit unions, DepositAccounts.com then recognizes those who have shown exceptional fiduciary responsibility in its Top 200 Healthiest Credit Unions in America. For more information, visit www.depositaccounts.com or eriefcu.org.
D&E MACHINING STEPS UP FOR A GREAT CAUSE Representatives from the local Walk a Mile in Her Shoes® organization recently stopped by D&E Machining unexpectedly to ask for the Corry manufacturer’s help in their efforts to raise awareness about domestic violence. That support included putting on a pair of red high heels and posing for a photograph. Materials Manager Bill Draghi, Sales Manager Frank Polanski and Quality Assurance Manager Brian Swarthout (shown, from left) were happy to oblige. Founded in 2001, Walk a Mile in Her Shoes® is a worldwide movement with tens-of-thousands of men helping to raise much-needed funds for local rape crisis centers, domestic violence shelters and other violence education, prevention and remediation programs. Founded in 1993, D&E Machining, Ltd. located at 150 Industrial Drive, is an ISO 9001:2008 certified manufacturing facility specializing in contract machining with full turnkey capabilities including plating, grinding, heat treating, painting and welding. For more information, visit www.walkamileinhershoes.org or www.demachining.com.
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Health Matters
EDITORIAL > By Stephen E. Perkins, M.D.
Telemedicine and Telehealth: Transforming Patient Care Telemedicine and telehealth are no longer obscure terms describing some far-off future of medicine. Developments in technology have spurred advancements in telemedicine that are in use right now and that carry the potential to increase access to care, improve quality and reduce costs, for both physicians and patients. Definitions Telehealth is a general term that describes the delivery of health-related services and information by the use of telecommunication technology. This can include phone calls between physicians, videoconferencing, or even robotic technology. Telemedicine has a narrower definition: the specific use of medical information that is exchanged from one site to another via electronic communications for the health and education of a patient or a health-care provider for the purpose of improving patient care. Telemedicine includes consultative, diagnostic and treatment services. Historically, hospitals and health systems in rural areas have been most closely connected with telemedicine, due to long travel times and the lack of specialty physicians available. However, the entire healthcare industry, urban and rural, national, and even international, is now in position to benefit from its widespread use. Potential Benefits The top benefit from advances in telemedicine is increased access for both patients and physicians. Traditionally, people who live in remote areas have not always had access to the latest medical advances.
Telemedicine provides the capacity for specialists to evaluate a patient’s condition from afar. Patients who are homebound can have their conditions monitored via telehealth methods. That reduces the number of trips they would need to take to the physician’s office. Telemonitoring technology gives a physician the capacity to oversee the progress a patient is making and help the patient avoid potential problems. Simply put, a number of barriers that limited access to care can be broken down by telemedicine. How Technology Is Being Used Telemedicine technologies include: online physician visits, videoconferencing, store-and-forward imaging, streaming media, terrestrial communications, e-visits and wireless communications. One example of how telehealth is being used is UPMC Health Plan’s “AnywhereCare.” For non-emergency conditions, patients register online and fill out a questionnaire detailing symptoms. The form is e-mailed to a doctor who reviews the results and makes treatment recommendations, including prescriptions where needed, typically within 30 minutes. This use of telemedicine ensures that routine matters are handled efficiently and effectively and do not tie up a physician’s time. The patient receives prompt feedback and the patient does not need to miss work or arrange for day care in order to obtain medical advice for a minor matter. Barriers for Telehealth Because the implementation of telemedicine can be expensive and time-consuming, it is sometimes
difficult for health system executives to see its value since not all patients will use the services. Moreover, with telehealth’s ability to transcend state boundaries, there may be issues regarding licensing and certification. Policies regarding telehealth licensing vary greatly among the states. While the initial cost of the technology may be high, the overall impact should be to decrease health-care costs. If monitoring a condition becomes easier due to telehealth access for patients, then an improvement in preventive care and reduction in the number of emergency visits should occur, helping to hold down costs. If telehealth advances bring specialist care to places where it has never been, that, too, should provide more effective treatments and, ultimately, lower costs. For more information about AnywhereCare, call 1-866-229-3507 to talk with a UPMC WorkPartners representative. Stephen E. Perkins, M.D., is vice president of Medical Affairs for UPMC Health Plan, which is part of the UPMC Insurance Services Division. The UPMC Insurance Services also includes UPMC WorkPartners, LifeSolutions (EAP), UPMC for Life, UPMC for You, UPMC for You Advantage, UPMC for Kids, Community Care Behavioral Health, EBenefit Solutions, LifeSolutions, and Askesis Development Group.
November 2014 > www.mbabizmag.com > 7
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8 < www.mbabizmag.com < November 2014
Legal Brief
EDITORIAL > By David S. Willoughby
Don’t Give Up the Ship — A Patent Abandonment Folly Here’s a story: A company decides to spend considerable time and money innovating a novel and useful accessory that goes along with one of their top product lines. They believe launching the accessory into the market will bring them a competitive edge and boost profit margins. To help keep competition at bay, they also attempt to protect their rights by filing a patent application. After a few months, the company’s sales team discovers that the accessory isn’t selling well and does little for their market share. It becomes the company’s belief that it should forfeit its patent application, a move that seems more economical than paying attorneys and costly government fees for protection on something that just isn’t bringing in money. So instead of moving forward and attaining a patent, the company opts to give up and abandon the application. In the end, it simply moves on with other endeavors. At first glance, the company’s decision may seem cost effective and something you’d likely do under similar circumstances. However, think twice because this decision may actually become very costly — one that’s likely to be permanent. Abandonment Explained Patent abandonment is an affirmative act at the U.S. Patent Office in which one dedicates pending patent rights over to the public. Abandonment can occur at various points after an application is originally filed and throughout the life of the subsequently issued patent. Once purposely abandoned, all rights are lost for good. Moreover, any given pending application typically publishes within 18 months after its original filing. Once published, all information
in the application becomes free for public viewing and easily discovered over the Internet. Valid applications also must be enabling, meaning that each will teach someone skilled in similar technical fields how to make and use what ultimately could be protected by the issued patent. The idea being that when patent rights expire, the public understands how to construct the subject of the patent. Abandoned patent applications clearly show competitors exactly how to create whatever’s been given up. At this point, you may be thinking, “What’s the big deal? If my company gave the public an accessory that wasn’t profitable, the competition would surely see that making and selling the thing wouldn’t help them much either.” But would they see it this way? Let’s look at what could happen afterward, when the accessory is free to all. Competitors usually sell similar product lines, not identical ones. The differences in their products could make a tremendous difference in the market. When sold with a competitor’s product, your accessory could actually become profitable. To figure this out, your competitor’s engineering and marketing teams need only read the application you abandoned and conduct simple testing to determine whether your accessory works in their favor. This wouldn’t be very difficult, since you’ve told them how to make it and the problems it could solve. Your competitor also can innovate by freely using your abandoned accessory as their starting point. If they’re smart, they’ll use their saved resources to create patentable improvements on top of your accessory. What’s worse, these protected improvements could be the missing elements needed
to make the accessory profitable in the first place, which would in turn create stronger competition and block you from a part of the market you originally attempted to capture. Consider This If you are considering abandoning a patent application, remember that competitors may not see things the way you do. Where you see cutting losses, they see opportunity. Abandoning a patent application gives the competition an opportunity, one that could even be used to keep you from profiting. So think about your company’s future before giving up on any pending application. Passing up your rights may end up being a costly decision — one you likely can’t fix after the fact. For more information about patent protection, contact David S. Willoughby at MacDonald, Illig, Jones & Britton LLP at 814/870-7662 or dwilloughby@mijb.com.
David S. Willoughby is a registered patent attorney and an associate at MacDonald, Illig, Jones & Britton LLP. His practice includes representing businesses and individuals in a wide variety of intellectual property matters. He is a graduate of the Franklin Pierce Center for Intellectual Property at the University of New Hampshire School of Law.
November 2014 > www.mbabizmag.com > 9
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$200,000 BIG IDEA Contest Investing in Innovation If you’ve heard about Ben Franklin Technology Partners, it’s likely because you know about their BIG IDEA Contests, their affiliation with Penn State University, or that they have been providing investment capital and business support services to tech-based startups for more than 30 years. However, most folks don’t realize that for many years Ben Franklin also has been making investments in small manufacturers. Those who qualify can get funding of up to $250,000 in order to help develop a new, innovative proprietary product or process, or to assist in getting an existing product line into a new market. Ben Franklin investments are not intended to compete with traditional sources of capital. “R&D projects are risky business,” explains Liz Wilson, director of Marketing at Ben Franklin Technology Partners/CNP in Erie. “These investments, which do have a payback obligation, are designed to help share that risk and advance product development plans at an accelerated pace.” New Year, New Focus on Small Manufacturers This year, in order to remind employers to think about Ben Franklin as a resource when they begin planning to introduce new or improved products to customers, the BIG IDEA Contest is focused on helping small manufacturers and entrepreneurs turn their innovative product or process ideas into real business opportunities. “Investing in innovation is the core of Ben Franklin’s mission,” states Wilson, “and this year’s prize package is designed to support every aspect of a development project.” Beginning on October 24, 2014, applicants can easily submit their BIG IDEA to Ben Franklin by filling out a simple questionnaire at bigidea.benfranklin. org. There is no need to share any proprietary details. The deadline to apply is January 20, 2015. From that pool, finalists will be notified in February 2015. Those who make the cut will be asked to submit a 10-page product rollout plan, as well as make a presentation to a panel of independent judges in the spring of 2015. The winner will be announced at a media event on May 19, 2015, and will receive a prize package worth $200,000.
Located: 5340 Fryling Road, Suite 202 Knowledge Park Erie, PA 16510
Phone: 814/898-6650
Website: www.cnp.benfranklin.org
2013 BIG IDEA Contest winners included Dr. Kyu Jung of Adaptmicrosys, Grand Prize winner Tom Woodward of APCS Global and Karen Rzepecki of reCAP Mason Jars.
Below are the prizes: • $50,000 in cash • An “Innovation Adoption Grant” up to $25,000 to work with a Pennsylvania-based research university • Priority access to a low-interest $100,000 loan from Ben Franklin • 60 hours of Innovation Engineering project time from the Northwest Industrial Resource Center (nwirc.org), as well as access to an Advanced Manufacturing Apprentice to assist in prototype development or precommercialization services • A one-year pass to seminars offered by Ben Franklin’s eMarketing Learning Center (emarketinglearningcenter.org) • A free consult (and proposal prep) from the Innovation Partnership on how to access Federal R&D grant money (innovationpartnership.net) To be eligible, applicants must: • Be developing, or planning to develop, a new, innovative product or process with the intent to commercialize; • Be located in one of the eligible counties in NWPA (see bigidea. benfranklin.org for a complete listing); • On average, have a business that generates no more than $10 million in revenue per year; and • Not previously received Ben Franklin funding. Karen Rzepecki of Mason Jars Company/reCAP Mason Jars says winning the BIG IDEA Contest has numerous benefits. “ ‘Now you’re part of the Ben Franklin family.’ That’s what Dr. Jim Kosco said to me after winning one of the prizes. I didn’t know at the time what that meant,” states Rzepecki. “After almost a year of tapping into the ‘family,’ I can say it means a lot. Not only has Jim himself been a great adviser to me, but I have been able to work with Roy Campbell and his stellar team in everything from sales, to HR to bookkeeping. They are the reason I’ve been able to maintain compliance with all the state and federal requirements. I’ve also attended several of Cathy von Birgelen’s forums and classes and really learned a lot.” For more information or to apply for the 2015 BIG IDEA Contest, visit bigidea.benfranklin.org or call Ben Franklin’s Erie office at 814/898-6650. November 2014 > www.mbabizmag.com > 11
OntheHill
DEPARTMENTS > Contact: Lori Joint
What Happens in Harrisburg… Angela Zaydon is the Association’s state government relations representative in Harrisburg and is responsible for developing state legislative priorities and strategies; encouraging membership grassroots activities; and lobbying on behalf of a pro-growth, pro-business agenda. She earned her Juris Doctor from Widener University School of Law and political science degree from Canisius College.
Nestled somewhere southeast of Erie, between Pittsburgh and Philadelphia, is a town where very important decisions are made, bills are written, and laws are passed that affect your business — Harrisburg, where our beautiful state capitol is situated and the Manufacturer & Business Association’s (MBA) second office is located. The Harrisburg culture includes the legislature, legislative process, regulatory system, lobbying, grassroots lobbying, legislative drafting, coalition building and relationship building. This all comes under the umbrella known as “Harrisburg.” Many times Harrisburg operates in its own bubble where all the branches of government, lobbyists, and activists are voicing their opinions, and influencing decisions made by government officials. The MBA participates in this system on a daily basis, to offer our members the most up to date information on what is happening in Harrisburg that affects their businesses. The MBA’s Harrisburg office actively lobbies for the interests of all our members. Here, we monitor all newly introduced legislation and determine whether the MBA would support or oppose the legislation or whether it has no impact at all on our members. Once that determination is made, a strategy is put into place to discuss the impact the legislation will have on our members with the appropriate legislators and the legislative committee members, and their staff. We also write amendments and offer language to the bill should the legislation need tweaked. In addition, some legislation or issues need additional steps, such as grassroots lobbying by our members and building coalitions with other businesses and groups that have similar opinions on the legislation. The MBA participates in more than 10 coalitions from business taxes, paycheck protection, property tax reform, and data breach legislation to healthcare reform and pension reform. Coalitions play a huge part in influencing legislation because we cooperate in a joint action, while still representing our own self-interest, joining forces together for a common cause.
Our members play a huge role in the grassroots lobbying process. While lobbying in Harrisburg is of utmost importance, our role is to educate legislators on how particular legislation will affect our members and use our relationships to influence the movement of legislation. Remember: You are a constituent living in the elected official’s district who votes and pays taxes, and legislators respond best to their constituents. When you take the time to call or meet with a legislator, you help shape legislation and how they vote when they return to Harrisburg. The Harrisburg office also monitors the judicial branch and court decisions that affect how our members do business. If a decision comes down from the courts that negatively affects our members, we then write legislation that would change the law, have it introduced, and start the process all over again. The MBA also participates in the regulatory process, both at the federal level and the state level. Most regulations define and clarify legislation and existing laws. The process can be very convoluted with deadlines and comment periods that are a mystery to most people. The MBA monitors the regulatory agencies and current regulations, providing comments and making sure that the regulations do not stunt the growth of business or negatively affect our member companies and their day-to-day operations. The Government Affairs department of any association is the one that protects its members from big government, making sure that laws and regulations are not passed that hinder business operations. The MBA’s Harrisburg office exists not only to lobby, monitor legislation and regulations, form coalitions and communicate with legislators, but also to communicate happenings and changes in laws with members. To discuss any legislative issues or for a legislative or regulatory update, contact Angela Zaydon in the Harrisburg office at 717/525-7213, cell 814/460-3136 or at Azaydon@mbausa.org. November 2014 > www.mbabizmag.com > 13
HR Connection • The major technology concerns for small business owners included costs, security and the ability to access content from multiple devices in any location.
MAJORITY OF SMALL BUSINESS OWNERS NOT TAKING ADVANTAGE OF CLOUD SOLUTIONS A Microsoft (MSFT) survey shows the majority of U.S. small business owners are familiar with cloud solutions but do not use them at their companies.
Kirk Gregersen, general manager of Microsoft Office, commented on the survey results, saying: “These findings tell us a number of things: despite understanding that technology can have a significant impact on their companies, small businesses need cost effective, secure and reliable solutions that enable them to be productive from anywhere — and they have very little time to implement and manage those solutions.”
The survey of more than 500 U.S. small business owners revealed 70 percent of small businesses currently don’t use cloud solutions. However, 86 percent of respondents said they believed technology was important to the overall success of their companies. Other survey findings included the following:
SURVEY: DIRECTION OF HR FOCUSED ON HIRING, STRATEGY & TECHNOLOGY A survey by the Society of Human Resources Management, the country’s largest HR association, revealed several clear trends emerging in human resources — an increased focus on hiring, an infusion of technology and a metamorphosis into a strategic department.
• 90 percent of respondents said they were familiar with the cloud. • 66 percent of small business owners said they managed IT for their businesses. • 60 percent of small businesses attributed increased revenue to technology. • 60 percent said technology allows them to compete with similar size and/or larger companies.
The survey of more than 9,000 human
resource professionals found that from 2007 to 2012, the amount of HR professionals in the market who were labeled recruiting specialist nearly doubled, from 6 percent to 11 percent of the total HR market. That falls in line with a KPMG International survey that found that 81 percent of respondents — the largest percentage of any of the questions asked in KPMG survey — agreed that finding top talent will be the focus of their company’s HR departments over the next three years. The other big takeaway in the SHRM survey was that technology was increasingly doing many of the administrative tasks of human resource departments, leaving HR to focus more on strategy. “It has become a cliché, but is nonetheless still true, that HR must shift focus from administration to higher-value added activities,” the survey stated. “As technologyenabled HR functions improve efficiency, HR must focus on providing more strategic, higher-order services.”
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Three Tips to Resolve Conflicts More Effectively Leadership and conflict go hand-in-hand. Leadership is a full-contact sport, and if you cannot or will not address conflict in a healthy, productive fashion, you should not be in a leadership role. While you can try and avoid conflict (bad idea), you cannot escape conflict. The ability to bring swift and just resolution to conflict will serve you well as a leader — the inability to do so may well be your downfall. It is not at all uncommon to see what might have been a non-event manifest itself into a monumental problem if not resolved early on. Leaders who don’t deal with conflict will eventually watch their good talent walk out the door in search of a healthier and safer work environment. The following tips will help you more effectively handle conflicts in the workplace:
1. Understanding the WIIFM Factor: Understanding the other person’s “What’s In It For Me” (WIIFM) position is critical. If you approach conflict from the perspective of taking the action that will help others best achieve their goals, you will find few obstacles will stand in your way with regard to resolving conflict. 2. The Importance Factor: If the issue, circumstance or situation is important enough, and there is enough at stake, people will do what is necessary to open lines of communication and close positional and/or philosophical gaps. 3. View Conflict as Opportunity: Hidden within virtually every conflict is the potential for a tremendous teaching/ learning opportunity. Smart leaders look for the upside in all differing opinions. I believe resolution can normally be found with conflicts where there is a sincere
desire to do so. Compromise, forgiveness, empathy, finding common ground, being an active listener, and numerous other approaches will always allow one to be successful in building rapport if the underlying desire is strong enough. Need more training on how to deal with conflict in the workplace? The Association can help. For information about our regionally recognized professional development courses, please contact me at 814/833-3200, 800/815-2660 or dmonaghan@mbausa.org.
Dan Monaghan is the director of Training at the Manufacturer & Business Association.
November 2014 > www.mbabizmag.com > 15
Legal Q&A WE HAVE AN EMPLOYEE WITH A DISABILITY. IS TELECOMMUTING A REASONABLE ACCOMMODATION UNDER THE AMERICANS WITH DISABILITIES ACT (ADA)?
It could be. Changing the location where work is performed may fall under the ADA’s reasonable accommodation requirement of modifying workplace policies, even if the employer does not allow other employees to telecommute. However, an employer is not obligated to adopt an employee’s preferred or requested accommodation and may instead offer alternate accommodations as long as they would be effective. IS IT LEGAL TO ALLOW
EMPLOYEES TO TELECOMMUTE? Yes, telecommuting is perfectly legal. However, as with any employment benefit your company may establish, you cannot discriminate unlawfully
based on race, gender, religion, age, disability, or any other protected characteristic in providing the benefit. This does not mean that you must let all workers telecommute; it just means that you cannot decide who has access to the benefit based on some impermissible characteristic.
should be a provision that explicitly requires certain procedures for monitoring and documenting the hours worked by non-exempt telecommuting employees, such as requiring these employees to submit daily timesheets and/or clock in and out from work via email, computer or telephone.
IS IT OK TO ALLOW OUR
HAVE A LEGAL QUESTION? GET ANSWERS! We know that urgent employment law issues can arise at a moment’s notice. That’s why members of the Manufacturer & Business Associaiton can call our certified HR specialists and labor and employment law attorneys anytime, at no charge.
NON-EXEMPT EMPLOYEES TO TELECOMMUTE? Yes, however, one issue that telecommuting raises for employers is an increased risk that non-exempt employees will work overtime hours for which they are not paid timeand-a-half, as required by federal law. Therefore, employers should have a telecommuting policy in which non-exempt employees are not permitted to work overtime without prior written authorization from management. Also, there
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DEPARTMENTS > Contact: Tammy Lamary-Toman
Telecommuting – The New Employee Benefit Telecommuting, the practice of working from home or other remote locations, has been gaining ground for years, and a recent survey has indicated that telecommuting can be a big draw for job candidates. According to a recent telecommuting survey conducted by Staples, 71 percent of employees feel telecommuting is an important benefit when considering employment with a new company and that 10 percent would take a reduction in pay in order to have the option to telecommute. Something else to consider is the potential benefit for both employer and employee. That same Staples study cited reduced stress, less absenteeism and happier employees as a major benefit of telecommuting. Of course, there also are challenges for employers to overcome; however, those employers who are willing to work through all the details involved with allowing employees to telecommute
are more likely to reap the rewards associated with it. Before an employer starts a telecommuting program, here are a few issues that should be addressed: • Is the job suitable for telecommuting? Not all positions will be appropriate for telecommuting. While computer programmers may be able to work effectively from home, a car salesperson probably cannot. • Who is eligible for telecommuting? Not all employees will be able to adapt to the requirements of an off-site work arrangement. Good telecommuting candidates are usually highly productive, well organized, and have good communication skills. • What are the expected work hours? Most jobs will require some level of accountability during certain times of the day or days of the week. Therefore, you should establish the
expected work hours prior to the telecommuting arrangement. • What do you expect from your telecommuting employees? Before allowing an employee to telecommute, it is important to communicate to them what your performance expectations are and to have a good definition of what output is expected. For information about telecommuting programs in the workplace, contact the Association’s Legal Services Division at 814/833-3200 or 800/815-2660.
Tammy Lamary-Toman is Labor & Employment Counsel for the Manufacturer & Business Association’s Legal Services Division.
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ONSITE TRAINING PROFESSIONAL DEVELOPMENT Supervisory Skills Leadership for Team Leaders Customer Service One-Day Food Safety Certification And much more!
COMPUTER TRAINING Word Levels I, II, III Excel Levels I, II, III Access Levels I, II, III Outlook And much more!
How you need it. When you need it. Where you need it. Considered a leader in professional development and computer training for more than 20 years, the Manufacturer & Business Association offers you the ease and flexibility of onsite training for groups of six or more employees. Onsite Convenience: Nothing beats the convenience of training conducted at your facility. Let our expert instructors bring the training you need, when you need it, where you need it. Customized Programs: From full-day to half-day programs, all of our courses can be tailored to address your organization’s specific needs. Focused Interaction: Facilitated by our training specialists, your employees’ experience is further enhanced through group discussion on key topic areas specific to your company’s work environment.
Call Terry Nunez for more information about onsite training programs at 800/815-2660 or 814/833-3200, or visit www.mbausa.org.
Events Blue Ocean Strategy Center
The Manufacturer & Busness Association (MBA) regularly hosts special events and briefings for our member companies, such as the third annual Manufacturing Day movie luncheon, second annual HR & Employment Law Conference and Roar on the Shore® check presentation. To learn more about upcoming events at the MBA or to view additional photos, visit www.mbausa.org.
Association Vice President John Krahe (center) welcomes area students, educators and manufacturers to the Erie premiere of “American Made Movie” to celebrate the third annual Manufacturing Day at the MBA’s Conference Center in Erie.
Industrial Sales & Mfg., Inc., represented by Jim Jr. and Jim Rutkowski Sr., also sponsored the screening.
Erie Mayor Joe Sinnott (right) presented a proclamation to the Association, declaring October 3, 2014 as “Erie Manufacturing Day.”
20 < www.mbabizmag.com < November 2014
Sponsor Howard Industries, represented by Gary Schneider and company executives, joined students at the event.
Roger Schultz and representatives from sponsor LORD Corporation greet area students.
Bill Hilbert Jr., president of Reddog Industries and vice chairman of the MBA Board of Governors, explained the mission behind Manufacturing Day, noting that the Association’s screening was one of more than 1,500 events to be held across the nation to promote manufacturing.
Approximately 70 HR professionals from around the region attended the MBA’s second annual HR & Employment Law Conference sponsored by ECCA Payroll & Business Solutions, Loesel-Schaaf Insurance Agency, Waddell & Reed (Securian and Nationwide), the Erie Times-News and GoErie.com, and the University of Pittsburgh’s Joseph M. Katz Graduate School of Business Executive MBA Worldwide and Center for Executive Education.
Guest speaker Mike Byam, author of The WOW! Workplace, shared how to build a WOW! recognition culture in your business.
Lorin Lacy, principal at Buck Consultants, Inc., provided updates on both the Patient Protection and Affordable Care Act and the MBA’s new Absolute Choice private health insurance marketplace.
Speaker Alice Pescuric, senior consultant at AvidLearner, Inc., focused her presentation on leading in uncertain times.
nd
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Speaker Angie Singer-Keating, co-founder and CEO at Reclamare Inc., explained the top 10 security threats of 2015: HIPAA, safe-guarding privacy and security breaches, and social media.
Gretchen Brahaney, HR manager at KOA Speer Electronics, was the raffle winner of the grand prize iPad Mini basket.
AL NU AN MANUFACTURER & BUSINESS ASSOCIATION
BUILDING A WOW! RECOGNITION CULTURE
HUMAN RESOURCE & EMPLOYMENT LAW CONFERENCE
Building a WOW! Recognition Culture is a fast-paced, fun, and informative seminar that equips HR professionals and business leaders with an understanding of how to engage employees through effective recognition.
TOP 10 SECURITY THR MIKE BYAM Author of The WOW! Workplace
Managing Partner Attendees will learn: how to adapt employee recognition strateof Terryberry gies to respond to the current economy; key steps for developing an effective recognition program; and how to understand which awards are the most and least effective. Includes autographed copy of The WOW! Workplace.
Mike Byam is the author of The WOW! Workplace, and managing partner of Terryberry, an international firm that specializes in implementing and managing employee recognition programs. Byam is a frequent speaker on the topic of employee recognition to HR professionals and business groups around the world. He also has consulted with hundreds of organizations — from family businesses to Fortune 500 companies — to develop recognition strategies for employee retention and performance improvement.
Part 1 starts with the fundamentals of ho with our lives and moves into the workp life examples of social media risks, HIP privacy safeguards and employee misc need to know. (Warning: Part 1 is a won’t want to miss Part 2!)
Part 2 will uncover specific preventat implement today to combat social med
As CEO and co-founder of Reclamere, Security Experts with more than 75 year litigation services. Her 20 years of profe ing in computer forensics, data recovery risk management, and system auditing health care, banking, insurance, govern
LEADING IN UNCERTA PATIENT PROTECTION & AFFORDABLE CARE ACT: WHAT’S NEXT? LORIN LACY How do you intend to respond to the Patient Protection and Affordable Care Act? Employers of every size need to know what Principal to expect and how to legally comply with the provisions outlined. Buck Consultants, Inc. Plus, you’ll hear about the MBA’s new Absolute Choice private insurance marketplace — a comprehensive, yet simple way to provide quality, competitive employee benefit choices.
Today’s business environment is mark uncertainty, complexity and ambiguity borrow a term used widely in military VUCA world. Many are finding it diffic conditions — but there are certain abi our emerging leaders that will help them challenges ahead. Managers will nee tice of shared leadership practices, bro develop strong networks, take action to
Author, business consultant and certified speaker Barbara Glanz discussed the 180 ways to spread contagious enthusiasm Pescuric fromhas her extensive experience in hum business development and general mana Lorin Lacy is a principal and benefit consultant for Buck Consultants, a global HR consulting bestselling book. consultant in the areas of leadership de
FRIDAY, OCTOBER 10, 2014 Join us for the MBA’s second annual HR & Employment Law Conference! Gather with your fellow human resource professionals from a wide variety of industries and businesses for a full day of interactive sessions, thought-provoking information and numerous networking opportunities (breakfast and lunch included with conference).
firm. With more than 35 years of experience in the group benefits field, Lacy possesses a vast amount of expertise on health and welfare plan issues, including health-care benefit plan design, benefit cost underwriting, consumer-driven benefit design, and data analysis.
The Roar on the Shore and MBA Boards presented a $125,000 donation to the 2014 Roar charity Knowledge is power and this one-day conference St. Patrick’s Haven. The donation includes both a financial donationdelivers! from the rally Hear from fiveand highly three acclaimedlots keynote speakers on leadership issues and people-management strategies that can transform near the existing shelter location on East 12th Street, courtesy of Rick Griffith from Rick Griffith your organization! Plus, you’ll get the latest updates on how the Patient Properties. The Haven, a ministry of the Sisters of St. Joseph of Northwestern Pennsylvania, Protection and Affordable Care Act will impact your organization, as well as changes employment law, and much more. provides much-needed shelter to the area’s homeless, many of whom are inveterans.
performance management, group facilitatio She served as senior vice president a Dimensions International (DDI) before est
180 WAYS TO SPREAD CONTAGIOUS ENTHUSIASM
Is your organization experiencing high employee turnover and low morale, increases in customer complaints, or burnout from having Don’t miss this action-oriented presentation on how to raise morale, improve retention, build customer and employee loyalty, boos result, create a workplace of respect, caring, and joy!
Barbara Glanz works with organizations to help them improve morale, retention and service. She is ranked one of the top 10 spea Human Resource Management (SHRM) and has presented to conferences, associations, and organizations worldwide. She has auth “how to” books, including 180 Ways to Spread Enthusiasm ( Walk the Talk, 2006), a copy of which is included with registration. Glanz personal motto “spreading contagious enthusiasm™.”
Register today at www.mbausa.org!
The 2014 Roar donation would not have been possible without the support of the more than 45 rally sponsors, which represent area business and industry, and the City of Erie.
®
ON ROAR THE
Erie Homes for Children and Adults’ (EHCA) Project First Step will be the beneficiary of the 2015 Roar charitable motorcycle rally, scheduled for July 15, 16, 17 and 18 in downtown Erie. November 2014 > www.mbabizmag.com > 21
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People Buzz CHANNELLOCK INC. APPOINTS NEW PRESIDENT, COO Channellock Inc. recently named Jonathan “Jon” S. DeArment as its president and chief operating officer (COO), effective October 1. The board of directors of Channellock Inc. voted DeArment, the company’s vice president of manufacturing and engineering, to succeed William S. DeArment as the organization’s president. Jon DeArment reports to William DeArment, his father, who continues as the company’s CEO and board chairman. With nearly 20 years’ experience, Jon DeArment’s role at the family owned and operated manufacturer includes positions in nearly every department. He holds a bachelor’s in business management from Gannon University in Erie, Pennsylvania. He currently serves on the Board of Directors for the Meadville-based Precision Manufacturing Institute, serves as Finance
Committee Chairman on the Crawford County Central School District Board and holds a position on the Board of Directors for the Hand Tools Institute. Channellock Inc. is a worldwide leader in the manufacture of high-quality pliers and assorted hand tools. Founded by George B. DeArment in 1886, the Meadville, Pennsylvania-based company is now in its fifth generation of family ownership and operation. THE HARTMAN GROUP EXPANDS PROFESSIONAL TEAM Matthew Bonchack recently joined The Hartman Agency as an account executive. He will be working in the State College office with the commercial lines team providing service to property and casualty clients. Bonchack graduated from Syracuse University’s Maxwell School of Citizenship with a bachelor’s degree in political
Make a list. Check it twice. Forget the naughty, invite the nice. Whether you’re planning an intimate celebration with business associates or a fun ’n festive gathering with family, friends or co-workers – we’ll make sure the holiday spirit is on full display. So get ready to party, you’ve come to the right place! Visit www.mbausa.org or call Norm Zymm at 814/833-3200 or 800/815-2660 to book your holiday gathering today.
24 < www.mbabizmag.com < November 2014
science. After working for several years in Washington D.C., Bonchack returned to central Pennsylvania in 2009. He earned his law degree from the Dickinson School of Law at Penn State University and passed the Pennsylvania Bar Exam in July 2012. Bonchack also is a licensed PA Producer with Property and Casualty Lines of Authority. The Hartman Group consists of The Hartman Agency, Inc., Hartman Employee Benefits, Inc., and Hartman Financial Services with offices in Williamsport, State College and Duncannon. Hartman operates commercial employee benefit, commercial property and casualty, financial services and personal lines divisions. TWO KNOX ATTORNEYS NAMED ‘LAWYERS OF THE YEAR’ Thomas A. Tupitza and Francis J. Klemensic, shareholders at Knox McLaughlin Gornall & Sennett, P.C., were recently honored as Best Lawyers® 2015 “Lawyers of the Year” for the Pittsburgh
DEPARTMENTS > Contact: Karen Torres
metropolitan area, in Public Finance Law and Medical Malpractice Law — Defendants, respectively. The honor follows their inclusion on the 2015 Best Lawyers list, along with eight other Knox attorneys. According to Best Lawyers, only one lawyer in each practice area in a designated metropolitan area is honored as “Lawyer of the Year.” These lawyers are selected based on particularly impressive voting averages received during the exhaustive peer-review assessments conducted with thousands of leading lawyers each year.
“This is an important career milestone that brings with it additional opportunities and challenges,” Deane said. “I am confident that both will continue to grow in their new roles and enjoy a long and successful career at BKD.”
Tupitza, chosen as “Lawyer of the Year” for Public Finance Law, and Klemensic, chosen for Medical Malpractice Law — Defendants, have been on the Best Lawyers list for the past four years.
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BKD ANNOUNCES SENIOR MANAGER PROMOTIONS Jeffrey Deane, BKD, LLP managing partner, recently announced the promotion of Karen Burns and Lindsey Richards to senior managers.
Burns is a 1999 graduate of Mercyhurst University, with a bachelor’s degree in accounting. Richards is a 2007 graduate of Cedarville University, Ohio, with a B.A. degree in accounting. BKD, LLP, a national CPA and advisory firm of 2,100 professionals, including
approximately 250 partners, offers solutions for clients in all 50 states and internationally. HR ADMINISTRATOR WINS BUSINESS MAGAZINE CONTEST Kayla McFeely, an HR administrator at Reabah Inc./Networking Technologies in Erie won the MBA Business Magazine’s HR Raffle Drawing on September 25. McFeely, shown here with account executive Patty Welther (left) and MBA HR generalist Rose Bruno (right), won a ticket to the Association’s second annual HR & Employment Law Conference on October 10, three bestselling business books — Raving Fans, Hire Like You Just Beat Cancer, and Who Moved My Cheese? — plus two new coffee mugs. McFeely entered the contest by signing up as a new subscriber to the digital magazine online at www.mbabizmag.com.
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