Firms should review status of retirement plans

20090420-NEWS--13-NAT-CCI-CL_--
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9:39 AM
Page 1
APRIL 20-26, 2009
WWW.CRAINSCLEVELAND.COM
CRAIN’S CLEVELAND BUSINESS 13
FINANCE
Firms should review status of retirement plans
W
ith all of the pressures
confronting business
owners in these difficult
times, corporate retirement plans may not be a priority. It
is during these times that business
owners must review the health of
their retirement plans to ensure
continued compliance with applicable requirements.
■ Timely deferral deposits: Often
a business owner is the trustee of
the retirement plan. A trustee is a
fiduciary and must be aware of fiduciary responsibilities. Ensuring timely
deposit of participant deferrals is a
fiduciary responsibility.
The Internal Revenue Service and
Department of Labor characterize
the failure to timely deposit deferrals
as prohibited transactions. A plan
could be audited due to late deposits.
Generally, to be considered timely,
deferrals must be deposited by the
earliest date on which the deferrals
reasonably can be segregated from
the company’s general assets.
The DOL recently proposed a safeharbor period applicable to plans
with fewer than 100 participants. It
provides that deferrals are timely if
deposited no later than the seventh
business day following withholding.
A fiduciary should review recent
deferral history and determine
whether deferrals have been deposited
in accordance with current guidelines. If late deposits of deferrals are
identified, the business owner should
remedy them through the correction
programs described below.
■ Fiduciary losses: Recently, the
U.S. Supreme Court held in LaRue
v. DeWolff, Boberg & Associates
that an individual participant can
bring a suit for fiduciary breach for
investment losses that affect only
an individual’s account.
In light of LaRue and current
economic conditions, fiduciaries
need to protect themselves from
potential suits for investment losses
caused by breach of fiduciary duty.
Fiduciaries should ensure that a
fiduciary bond is in place as required
by the Employee Retirement Income
Security Act, or ERISA. Fiduciaries
should confirm that the plan has met
all the requirements of ERISA Section
404(c). Section 404(c) compliance
may relieve fiduciaries from liability
resulting from participants’ direction
of their investments.
You comply with Section 404(c) by
providing Section 404(c) statements
to participants, preparing and following investment policy statements,
offering investor education and providing statements of transaction fees.
■ Document requirements:
Frequently, plans must be amended
and restated to comply with changes
in pension laws. Many companies
have plans known as prototype documents that usually are provided by
investment brokerage firms.
However, many of these firms
require assets to be invested with
them to get document support such
as amendments. If a company has
recently moved the plan’s assets, the
fiduciary should confirm that the plan
is still receiving document support.
A plan failing to comply with pension law changes can be disqualified,
resulting in tax consequences. If a
fiduciary determines the plan has not
been amended properly, the plan
should be amended using correction
programs described below.
■ Plan efficiency: If employee
deferrals have declined, owners
should conduct a mid-year nondiscrimination test to determine
whether reduced participation rates
of employees result in required
reduction of owners’ deferral rates. If
the plan is a safe-harbor 401(k) plan,
this is not required.
However, if the plan has a safeharbor matching contribution and
the owner is considering eliminating
the match to save money, a review of
nondiscrimination tests should occur
prior to eliminating the match. At
times, eliminating a match can result
JEANNEV.GORDON
SAMUELJ.LAURICIAIII
ADVISERS
in greater costs.
To further reduce costs, owners
should meet with tax attorneys and
third-party advisers to review the
plan design and determine whether
the current design is the most costefficient available.
■ Correction programs: The
DOL and the IRS offer cost-effective
correction programs if failures in
compliance are discovered by the
company. If compliance failures are
discovered by the DOL or IRS, the
correction programs are not available
and substantial penalties could result.
The DOL offers the Voluntary
Fiduciary Compliance Program,
which provides instruction on cor-
recting late deferral deposits. This
program requires that late deferrals
and an interest factor be deposited.
The IRS provides the Employees
Plan Compliance Resolution System
to deal with a host of failures,
including non-discrimination
requirements and failure to timely
amend plans. Some failures can be
self-corrected under the Employees
Plan Compliance Resolution System.
If you review your plan and
identify failures, it is better to correct
them now using the correction
programs rather than ignoring them
and hoping that serious problems
won’t occur downstream.
■
Ms. Gordon and Mr. Lauricia III are
attorneys with Weston Hurd LLP.
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20090420-NEWS--14-NAT-CCI-CL_--
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14 CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
APRIL 20-26, 2009
FINANCE
ACHIEVING RESULTS IN
CHALLENGING TIMES
Scams heighten need to protect investments
By KATHY AMES CARR
[email protected]
I
The Monarch Group
has been acquired by
A portfolio company of
The Riverside Company
The undersigned initiated this transaction
and served as financial advisor
to The Monarch Group.
September 2008
BOYD WATTERSON
ASSET MANAGEMENT, LLC
has been acquired by
client’s risk tolerance, investment
goals and net worth, before their
brokers invested all their money,
said Brian Biggins, a securities
litigator with Rocky River-based
Brian P. Biggins & Associates Co.
The brokers, then, may have
invested their clients’ money based
on their own interests.
“I’m seeing people in their 80s
and 90s with 100% of their assets
invested in equities,” such as stocks,
he said. There’s a financial incentive
to do so. Brokers get paid more
when people buy equities rather
than fixed income products, such as
certificates of deposit and treasuries.
“You don’t need a college degree
to be a broker,” said Mr. Biggins,
who used to be a broker. “It’s mostly
a sales job.”
Because many brokers lack a background in economics and finance,
some make investment decisions
with little experience, he said.
Investors, therefore, must be
wary, and if they have a financial
planner, they should keep the lines
of communication open and
regularly meet.
“One to four times a year would
be normal,” said Mitchell Frankel,
a financial adviser with Lakeside
Wealth Management Group of
Wachovia Securities LLC in Pepper
Pike. “It depends on the needs of
the particular client, the complexity of the portfolio; changes in the
plans or circumstances of the
client; the risk tolerance of the
client and the volatility of the
market.
“Some clients are happy to meet
once a year and communicate via
the phone, mail or e-mail. Others
prefer to meet face to face more
frequently.”
■
If investors are dealing with an
independent adviser, he or she
should be working with a third party
custodian handling the assets.
“There’s very little probability of
manipulation from their adviser
with a third party holding the
assets,” Mr. Russo said.
Financial professionals advise that
investors should be aware of their
portfolio’s performance relative to
the market. They must be skeptical if
an adviser promises consistently
positive returns, even when the
market is down. “If the stock market
is down, you would expect an equityoriented fund to be down,” said
Edward Matuszak, senior vice president, portfolio manager at CapitalWorks Lakefront Partners in Cleveland.
t’s a mix of inexperience and
greed that leads to investment
fraud, as was recently the case
with Bernie Madoff, and at a
more local level, Frank Gruttadauria.
These brokers bilked their investor
clients for millions, and as a result,
were convicted and put in jail.
Their cases are a reminder that
investors can never be too cautious,
say local financial professionals.
While most financial planners and
brokers have their clients’ best interests at heart, others let greed circumvent their client obligations.
“If it sounds too good to be true, it
is,” said William Russo, president of
the Financial Planning Association
of North East Ohio. Many people
invested with Mr. Madoff, and they
knew it was illicit, but cooperated
because of the returns he promised,
Mr. Russo said.
“Con artists look for people who
have money and are a little dishonest
and greedy,” said Douglas Kahl, professor of business and international
finance at the University of Akron.
“If you fit this profile, you have a
bull’s-eye on your forehead. People
are out there looking for you.”
While it’s impossible for clients to
completely insulate themselves
from investment fraud, there are
some strategies investors can
employ to minimize risk, local
financial professionals say.
Mr. Madoff’s business was set up
so he was in control of investors’
money at all levels, making it easier
to manipulate the system. He
owned and controlled all entities
involved, Mr. Russo said, so there
were no safeguards in place.
Taking charge
The old rules of trusting the
neighbor’s financial planner
because he’s a “nice guy” are out the
window, so investors who are looking
for someone to manage their money
should consult a fee-based financial
planner, Dr. Kahl said. A fee-based
financial planner charges clients to
manage their portfolios but doesn’t
benefit from their recommendations.
“One of the most costly decisions
is a free financial plan,” Dr. Kahl
said. “Those advisers make their
money based on their investment
decisions and how they’ll benefit.”
Clients also should diversify their
investments rather than placing all
their bets on one stock, he said.
One common reason many
frustrated investors want to sue
their brokers is because they say
they never received a so-called
“financial physical,” in which an
adviser evaluates criteria including a
TITANIUM ASSET MANAGEMENT
CORPORATION
Many Solutions. One Relationship.
The undersigned served as financial advisor
to Boyd Watterson Asset Management, LLC
in connection with this transaction.
$
January 2009
$
$
39,225,000
11,000,000
Revolving Credit
Facility
Revolving Credit
Facility
Provided for
Provided for
$
24,750,000
10,250,000
$
30,000,000
Revolving Credit
Facility
Provided for
$
$
17,500,000
Revolving Credit
Facility
Provided for
4,500,000
$
2,610,000
Revolving Credit
Facility
Senior Secured
Credit Facility
Senior Secured
Credit Facility
Term Loan
Provided for
Provided for
Provided for
Provided for
has arranged financing in the form of
common stock from
CompuGROUP Holding AG
The undersigned initiated, structured
and arranged this financing on behalf of
Noteworthy Medical Systems, Inc.
See why we’ve earned our reputation as a leading provider of
working capital financing to growing companies. For more information
about Webster Business Credit, contact Barry Sullivan, Vice President,
at 216-479-6843 or [email protected] or visit our website at
Websterbcc.com to submit an online application for credit or find our
nearest office location.
February 2009
BRUML CAPITAL CORPORATION
1801 East Ninth Street, #1620, Cleveland, Ohio 44114 216/771-6660
www.brumlcapital.com
04/09
Investment Bankers
SM
Websterbcc.com
New York
•
Boston
•
Hartford • Atlanta • Chicago • Memphis • Charlotte • Portland • Cleveland
Webster Business Credit Corporation is a subsidiary of Webster Bank, N.A. Member FDIC. Equal Housing Lender. Webster Business Credit is a service mark of
Webster Financial Corporation. The Webster Symbol is registered in the U.S. Patent and Trademark Office.
20090420-NEWS--15-NAT-CCI-CL_--
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APRIL 20-26, 2009
CRAIN’S CLEVELAND BUSINESS 15
WWW.CRAINSCLEVELAND.COM
FINANCE
Work: Employers eliminating Smith: Assessing risk tolerance a priority
more of the middle managers
continued from PAGE 11
continued from PAGE 11
cial Management in North Olmsted,
said younger workers often are frustrated when their older counterparts
stay on the job. But it’s in the company’s best interest to keep people
happy even if they can’t be promoted.
Eventually, those boomers will
leave — and they’ll need to be
replaced by younger employees.
Ms. Donato said she has some
employees who work into their 70s.
When they retire, they open up a
full-time slot for someone else. But
increasingly, those workers are
retiring, then they are coming back
as part-time or contract workers,
and the need to hire someone new is
minimized.
Barry Tolbert, the University of
Phoenix college chairman in undergraduate business and management
in Cleveland, said the tendency of
companies to switch from a vertical
to a horizontal structure makes the
problem more pressing. Middle
managers are often being eliminated,
he said, leaving even fewer opportunities.
On the other hand, by staying in the
workplace, they often keep other
employees from advancing.
It’s the middle generation, Generation X — generally born between
1965 and 1980 — that tends to be
pinched the most, Sarka Consulting
president Chuck Sarka said. The
Macedonia firm focuses on leadership, executive assessment and
human resources practices.“They
got caught between,” he said.
“They sat there and haven’t had
the chance to move up. They were
wrung over.”
Gen Xers, in addition to having to
wait longer in the wings for Baby
boomers to leave their jobs so they
can be promoted, now are being
passed over by enterprising Millennials — generally born between 1981
and 1995 — who have more technical
savvy and aren’t interested in waiting
for their turn to lead.
“The middle generation is going
to find it very tough,” Mr. Sarka said.
Middle men, women
Boomer benefits
Colleen Dillow, a human
resources representative at Steere,
said her boss is a boomer who is not
expected to retire for some time.
Still, the 41-year-old — despite a
decade in the same job — doesn’t
feel like her boss is keeping her from
being challenged. Ms. Dillow has
received greater responsibility over
the years, she said, and enjoys the
variety of her work.
But many people who were
hoping for eventual promotions are
beginning to realize that they need
new skills to keep their places in the
work force, said Gina Cuffari, vice
president for the University of
Phoenix’s Ohio campuses. The
school, which has three Cleveland
locations, has long educated people
other than the typical college student.
Ms. Cuffari said when boomers
stay in the work force, their younger
co-workers are encouraged to go
back to school to get the degree they
never did or find a different career,
where more opportunities for
advancement might be available.
Les Szarka, CEO of Szarka Finan-
Jim Schaffer Jr., principal at
Waypoint Beacon Retirement
Partners in Beachwood, said it
makes sense that boomers are
working longer. After all,
Americans are living longer and
therefore need to earn more to
sustain their lifestyles into
retirement.
But having more boomers in the
workplace isn’t all bad. Will Bonner,
the CEO of consulting engineering
company EOM Ltd. in Alliance, said
those employees have a vast understanding of the company and are
essential for mentoring and teaching
younger employees. When they stay,
it gives other workers more people
from whom to learn.
In spite of some increased costs,
such as for health insurance, Mr.
Bonner said boomers add a lot to
the workplace.
“They’re productive employees,”
Mr. Bonner said. “The knowledge
base and experience of an older
worker makes them significantly
more valuable.”
■
PERS board I remember thinking
how that board approached the
asset allocation decision — the mix
of stocks, bonds, cash, real estate,
alternative investments, things like
that. And I thought, “It’s the same
approach we use with our clients,
just a lot more zeroes, a lot more.”
Q: So those agencies can be as
cautious about investment risks as
individuals?
What we’ve seen in this market,
we’ve seen a 100-year event in terms
of an attack on our economy and its
impact to the stock market.
So now, many people have said,
“You know, my tolerance wasn’t
what I thought it was.” Or, “This was
worse than I thought it could be.”
Q: So they need that money in
low-risk investments?
Q: But institutions and individuals
must think differently, the institutions must look at their investments
over a longer period of time?
A: Yes, once we have those monies
identified, we put that amount into
bond and bond-like investments.
Then we say, “If your risk tolerance
is good enough, then here’s how
much that could be in more volatile
stocks. How does that feel?”
We have a questionnaire (for new
Spero-Smith clients) that seems to
ask the one question seven or eight
different ways: “Will you be able to
stay the course under duress?”
Risk is everywhere, you just have
to understand it and the time frame
involved.
It can be very stressful if people
haven’t saved enough because they
need to have their money work hard
and stocks are where money works
hard.
A: One of the lessons learned is you
need to walk before you run, and
that’s important for an institution
or an individual. A board of directors needs to be tolerant for what’s
about to happen because then you
may have picked the worst time to
start it.
It’s the same thing for individuals.
We never jump in. We always just
take one step at a time.
An investment consultant to the
BWC said people always tend to
underestimate the risk of what they
perceive as safe.
When we meet with individual
clients, our first assignment with
them is to understand what their
A: Not really. Most people, quite
frankly, haven’t saved enough.
Many people really fear dying too
young. Our fear is you live too long.
So we encourage them to assume
they’re going to live to age 95.
Most people get real serious
about their retirement when they
are in their mid-50s and so that’s
about 40 years.
And I think most institutions
think about the same 40- or 50-year
time span. It’s very similar. The difference is there is less emotion
brought to the table at an institution. Most institutions can be colder. They don’t feel it the same way
an individual feels it.
■
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We can look at their financial situation and figure out pretty quickly
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20090420-NEWS--16-NAT-CCI-CL_--
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Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
APRIL 20-26, 2009
LARGEST NONPROFITS
RANKED BY 2009 EXPENSES
Name
Address
Rank Phone/web site
Expenses 2009 Expenses 2008
(millions)
(millions)
Total
revenue
2008
(millions)
Income
from
private
support
Income
for
program
services
2008 fund
balance
(thousands) Purpose
Top local executive
1
Catholic Charities Health and Human Services
7911 Detroit Ave., Cleveland 44102
(216) 334-2900/www.clevelandcatholiccharities.org
$106.9
$103.6
$102.3
38.0%
87.1%
To provide leadership in the health and human J. Thomas Mullen
$106,844.0 service fields in the counties that comprise
president, CEO
the Catholic Diocese of Cleveland
2
Western Reserve Area Agency on Aging
925 Euclid Ave., Suite 600, Cleveland 44115
(216) 621-8010/www.psa10a.org
$99.6
$99.5
$99.5
1.0%
97.0%
$198.7
3
Hospice of the Western Reserve
300 E. 185th St., Cleveland 44119
(216) 383-2222/www.hospicewr.org
$83.1
$76.1
$78.3
5.8%
86.0%
$33,568.0
4
Jewish Community Federation of Cleveland
1750 Euclid Ave., Cleveland 44115
(216) 566-9200/www.jewishcleveland.org
$66.0
$82.5
$53.4
99.0%
90.0%
To allocate funds to social service and
$373,000.0 educational agencies in Cleveland and
worldwide
5
Menorah Park Center for Senior Living
27100 Cedar Road, Beachwood 44122
(216) 831-6500/www.menorahpark.org
$62.6
$61.6
$59.5
47.0%
99.0%
$32,181.0
A not-for-profit Medicare/Medicaid certified
health care provider that operates residential
and outpatient services
Steven Raichilson
executive director
6
PlayhouseSquare
1501 Euclid Ave., Suite 200, Cleveland 44115
(216) 771-4444/www.playhousesquare.org
$58.2
$57.9
$65.7
11.0%
84.0%
$63,473.1
To operate the performing arts center and
help restore and develop the
PlayhouseSquare district
Art Falco
president, CEO
7
VNA Health Care Partners of Ohio
2500 E. 22nd St., Cleveland 44115-3204
(216) 931-1400/www.vnacleveland.org
$57.0
$56.1
$54.6
51.0%
80.0%
$18,800.0
Home health services to Greater Cleveland
M. Zangerle
and mid-Ohio areas, including hospice, private Claire
president, CEO
duty and physician housecalls
8
The Cleveland Museum of Art
11150 East Blvd., Cleveland 44106
(216) 421-7340/www.clevelandart.org
$55.7
$44.8
$76.5
72.0%
48.0%
One of the world's comprehensive art
$851,377.0 museums and one of Northeast Ohio's
principal civic and cultural institutions
9
United Way of Greater Cleveland
1331 Euclid Ave., Cleveland 44115
(216) 436-2100/www.uws.org
$51.0
$46.2
$37.6
95.0%
87.0%
$27,957.0
The largest private funder of health and
human services in Greater Cleveland
10
Positive Education Program
3100 Euclid Ave., Cleveland 44115
(216) 361-4400/www.pepcleve.org
$47.0
$45.3
$47.4
2.0%
90.0%
$18,442.4
To help troubled and troubling children and
A. Fecser
youth successfully learn and grow by blending Frank
quality education and mental health services CEO
11
The Musical Arts Association(1)
11001 Euclid Ave., Cleveland 44106
(216) 231-7300/www.clevelandorchestra.com
$44.5
$40.9
$40.9
39.0%
85.0%
To provide inspirational experience by serving
Hanson
$172,546.0 the art of music at the highest level of artistic Gary
executive director
excellence
12
Judson Services Inc.
2181 Ambleside Drive, Cleveland 44106
(216) 791-2004/www.judsonsmartliving.org
$37.0
$31.1
$30.4
18.5%
93.3%
$9,346.0
To provide programs and living options for
individuals taking responsibility for their
successful aging
13
Cleveland Foodbank
15500 South Waterloo Road, Cleveland 44110
(216) 738-2265/www.clevelandfoodbank.org
$33.3
$32.5
$31.6
83.2%
95.9%
$2,701.2
To alleviate hunger by providing food and
Campbell Goodman
support to community organizations that feed Anne
executive director
the hungry
14
Montefiore
One David N. Myers Parkway, Beachwood 44122
(216) 360-9080/www.montefiorecare.org
$33.0
$32.7
$32.5
27.0%
89.0%
$30,042.0
To provide a comprehensive system of health Lauren B. Rock
care and wellness support services to older
president, CEO
adults
15
Berea Children's Home & Family Services
202 E. Bagley Road, Berea 44017
(440) 234-2006/www.bchfs.org
$32.5
$31.7
$31.3
9.0%
90.0%
$313.5
16
Oriana House Inc.
P.O. Box 1510, Akron 44309
(330) 535-8116/www.orianahouse.org
$31.0
$31.0
$31.7
1.0%
92.0%
$10,560.0
17
Community Care Network Inc.
2202 Prame Ave., Cleveland 44109
(216) 688-4114/www.ccnworks.org
$26.4
$25.8
NA
21.1%
86.1%
NA
18
Beech Brook
3737 Lander Road, Cleveland 44124
(216) 831-2255/www.beechbrook.org
$25.8
$24.3
$25.4
17.0%
83.0%
$37,592.7
19
Wesleyan Senior Living
807 West Ave., Elyria 44035
(440) 284-9000/www.villageliving.com
$25.4
$24.9
$24.7
38.0%
98.0%
$911.0
20
Rock and Roll Hall of Fame & Museum Inc.(2)
1100 Rock and Roll Blvd., Cleveland 44114
(216) 781-7625/www.rockhall.com
$24.4
$20.6
$28.3
90.2%
70.7%
21
Vocational Guidance Services
2239 E. 55th St., Cleveland 44103
(216) 431-7800/www.vgsjob.org
$22.7
$23.3
$23.0
8.0%
22
Koinonia Homes Inc.
6161 Oak Tree Blvd., Suite 400, Independence 44131
(216) 588-8777/www.koinoniahomes.org
$21.8
$12.5
$13.0
23
Cleveland Housing Network
2999 Payne Ave., Room 306, Cleveland 44114
(216) 574-7100/www.chnnet.com
$21.5
$19.0
24
Jewish Family Service Association of Cleveland(3)
3659 S. Green Road, Suite 322, Beachwood 44122
(216) 292-3999/www.jfsa-cleveland.org
$21.0
25
Laurel Lake Retirement Community
200 Laurel Lake Drive, Hudson 44236
(330) 650-0681/www.laurellake.org
26
To enhance the ability of older persons to
main high levels of health, productivity and
independence
Ronald Hill
CEO
To provide palliative comfort care for people
with serious illness, support for their
caregivers and bereavement services
David Simpson
CEO
Stephen H. Hoffman
president
Timothy Rub
director, CEO
K. Michael Benz
president, CEO
Cynthia H. Dunn
president, CEO
To provide an integrated system of effective
behavioral health and family support services
to children, families and adults
Richard R. Frank
president, CEO
Community corrections programs and
chemical dependency treatment
James J. Lawrence
president, CEO
The Community Care Network exists to
Lundeen
provide innovative solutions through effective David
CEO
partnerships to build stronger communities
To advance the emotional well-being of
children, youth and their families by providing Debra Rex
behavioral health, permanency and
CEO
educational services
To provide quality housing and services to
aging adults
Mike Rogan
president, CEO
$72,455.2
The Rock Hall educates visitors from around
the world about music's impact on our
society
Terry Stewart
president, CEO
92.0%
$17,700.0
Preparing people with barriers to employment Robert E. Comben Jr.
for a brighter future
president, CEO
5.7%
85.0%
$1,541.5
Koinonia provides residential, adult day and
Diane Beastrom
vocational services to individuals with
developmental disabilities in Cuyahoga County CEO
$19.0
57.0%
93.0%
$18,832.0
To develop affordable housing for low- to
moderate-income families and provide home
ownership opportunities
Robert S. Curry
executive director
$22.0
$21.7
10.0%
86.0%
NA
To strengthen individuals and families at
every stage of life
Susan Bichsel
president, CEO
$20.0
$19.3
$21.3
85.0%
87.0%
NA
To enhance the quality of life for adults by
encouraging wellness, self-determination and
independence
David A. Oster
executive director
Akron-Canton Regional Foodbank
350 Opportunity Parkway, Akron 44307
(330) 535-6900/www.akroncantonfoodbank.org
$19.8
$22.1
$22.0
82.0%
93.0%
$8,285.5
Provide food to charitable agencies that feed Daniel R. Flowers
people in need in eight counties
president, CEO
27
Coleman Professional Services
5982 Rhodes Road, Kent 44240
(330) 673-1347/www.coleman-professional.com
$19.4
$20.1
$19.9
39.6%
87.5%
$3,173.8
Behavioral health and rehabilitation programs Nelson W. Burns
that improve the lives of individuals, families president, CEO
and businesses in Northeast Ohio
28
YMCA of Greater Cleveland
2200 Prospect Ave., Suite 900, Cleveland 44115
(216) 344-0095/www.clevelandymca.org
$19.2
$18.8
$19.8
88.0%
84.0%
$15,647.2
To put Christian principles into practice
through programs and services that build
healthy spirit, mind and body for all
Glenn Haley
president, CEO
29
Applewood Centers Inc.
2525 E. 22nd St., Cleveland 44115
(216) 696-5800/www.applewoodcenters.org
$19.0
$21.4
$18.5
19.0%
80.0%
$25,937.2
To provide behavioral health care and social
services for children, youth and families
Melanie K. Falls
executive director
20090420-NEWS--17-NAT-CCI-CL_--
4/16/2009
2:03 PM
Page 1
APRIL 20-26, 2009
Name
Address
Rank Phone/web site
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Expenses 2009 Expenses 2008
(millions)
(millions)
Total
revenue
2008
(millions)
Income
from
private
support
Income
for
program
services
2008 fund
balance
(thousands) Purpose
17
Top local executive
30
Jennings Center for Older Adults
10204 Granger Road, Garfield Heights 44125
(216) 581-2900/www.jenningscenter.org
$19.0
$17.3
$17.6
36.0%
95.0%
$11,494.0
A nonprofit, Catholic-based continuum of care Martha M. Kutik
campus for seniors
president, CEO
31
Center for Families and Children
4500 Euclid Ave., Cleveland 44103
(216) 432-7200/www.c4fc.org
$18.7
$20.5
$19.1
30.0%
84.0%
$30,500.0
To strengthen community one person at a
Sobol Jordan
time by providing exceptional human services Sharon
president, CEO
to foster hope, dignity and purpose
32
The Nord Center
6140 S. Broadway Ave., Lorain 44053
(440) 233-7232/www.nordcenter.org
$17.8
$17.8
$17.8
16.0%
83.0%
$1,400.0
Comprehensive behavioral health care
services; residential, vocational, psychiatric,
case management, counseling
33
Goodwill Industries of Greater Cleveland and East
Central Ohio Inc.
408 Ninth St. SW, Canton 44707
(800) 942-3577/www.goodwillclevecanton.org
$17.8
$16.9
$16.7
NA
NA
NA
34
Volunteers of America of Greater Ohio
8225 Brecksville Road, Suite 206, Brecksville 44141
(440) 717-1500/www.voago.org
$17.8
$18.0
$18.0
68.0%
73.0%
$12,551.6
35
Goodwill Industries of Akron
570 E. Waterloo Road, Akron 44319
(330) 724-6995/www.goodwillakron.org
$17.3
$15.5
$15.6
71.0%
29.0%
NA
36
Mental Health Services for Homeless Persons
1744 Payne Ave., Cleveland 44114
(216) 623-6555/www.mhs-inc.org
$16.6
$14.5
$14.6
10.0%
87.0%
$3,983.6
37
Our Lady of the Wayside
38135 Colorado Ave., Avon 44011
(440) 934-6007/www.thewayside.org
$16.4
$15.9
NA
NA
NA
NA
38
Ohio Aerospace Institute
22800 Cedar Point Road, Brook Park 44142
(440) 962-3000/www.oai.org
$15.8
$16.0
$16.2
5.0%
82.0%
$8,259.6
Enhance and expand Ohio's aerospace
capabilities through research and technology
partnerships, education and training
39
The Salvation Army of Greater Cleveland
1710 Prospect Ave., Cleveland 44115
(216) 588-9418/www.salvationarmycleveland.org
$15.5
$15.1
$15.6
58.0%
83.0%
$1,028.1
The Salvation Army of Greater Cleveland is a William A. Bamford
religious organization that provides an array divisional commander,
of human services to help improve the quality Northeast Ohio
of life in Greater Cleveland
40
Eliza Bryant Village
7201 Wade Park Ave., Cleveland 44103
(216) 361-6141/www.elizabryant.org
$14.8
$14.8
$14.8
NA
NA
NA
A comprehensive provider of senior outreach Harvey M. Shankman
services, housing, skilled nursing home and
executive director
outpatient therapy
41
The Benjamin Rose Institute(4)
11900 Fairhill Road, Suite 300, Cleveland 44120
(216) 791-8000/www.benrose.org
$13.8
$20.1
$13.4
80.0%
72.0%
$17,112.0
To advance the health, independence and
dignity of older adults by raising the
standards for quality of care
Richard Browdie
president, CEO
42
West Side Ecumenical Ministry
5209 Detroit Ave., Cleveland 44102
(216) 651-2037/www.wsem.org
$13.1
$12.7
$13.5
22.0%
85.0%
$3,750.0
To assist families through programs carried
out in collaboration with neighborhoods and
faith-based organizations
Judith Z. Peters
executive director
43
New Avenues to Independence Inc.
17608 Euclid Ave., Cleveland 44112
(216) 481-1907/www.newavenues.net
$12.7
$12.1
$12.3
2.0%
99.5%
$3,135.4
To provide supports and services to
individuals with disabilities
Thomas M. Lewins
executive director
44
Cleveland Museum of Natural History(5)
1 Wade Oval Drive, Cleveland 44106
(216) 231-4600/www.cmnh.org
$12.5
$12.8
$13.0
NA
NA
45
Child Guidance & Family Solutions(6)
312 Locust St., Akron 44302
(330) 762-0591/www.cgfs.org
$11.9
$10.9
$10.8
20.0%
85.0%
To improve the quality of life and employment Ken Weber
opportunities for people in the communities
president, CEO
we serve
Spiritually-based human services organization Dennis J. Kresak
providing social services that promote selfpresident, CEO
sufficiency and foster independence
To help individuals prepare for, find and retain Nancy Ellis McClenaghan
employment
president
Helping people gain control of their lives by
forging solutions that resolve mental health
crises and end homelessness
Susan Neth
executive director
Full-service residential provider for clients with
mental retardation and developmental
Terry Davis
disablities at 41 Cuyahoga and Lorain County president, CEO
homes
$162,500.0 Operation of a natural history museum
$3,882.5
William D. Bierie
president, CEO
To help mend the lives of children, families
and adults suffering from emotional and
mental disorders
This list of 501(c)(3) status nonprofit organizations is an approximate compilation of the largest organizations in Northeast Ohio. Universities, colleges, foundations and hospitals
were excluded. Source: Information is supplied by the organizations unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no
guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists
and The Book of Lists are available to purchase at www.crainscleveland.com. (1) 2008 total revenue includes $2.3 million of bridge funds, which are providing temporary funding
of the structural operating deficit during implementation of the turnaround plan. (2) Expenses are an estimate provided by the Rock and Roll Hall of Fame & Museum Inc. (3)
Numbers represent FY08 ended June 30. (4) 2008 expenses include losses on investments; the fund balance is for unrestricted funds. (5) Numbers are estimates provided by
the Cleveland Museum of Natural History. (6) Financial figures exclude unrealized losses on investments and loss on interest in the foundation.
Michael L. Heil
president, CEO
Bonnie Cummings
COO, interim executive
director
Elaine M. Harlin
president
RESEARCHED BY Deborah W. Hillyer
20090420-NEWS--18-NAT-CCI-CL_--
4/16/2009
11:12 AM
Page 1
S–1
ADVERTISEMENT
VISION and
DEDICATION
PRESENTING
SPONSORS:
BREEDS SUCCESSFUL BUSINESS
SPONSORS:
NAWBO honors 2009 Top 10 Women Business Owners
his year’s NAWBO Cleveland Top 10 Women Business
Owners make a big impact on their industries, their
employees, their families and Northeast Ohio. They
operate in diverse sectors from door and sign companies
and a general contracting firm to gift wholesales, payroll
processing and law.
For some, owning a business was something they wanted at a young
age. Others realized their dream to set the rules, create an environment
in which they wanted to work and find the flexibility they craved.
T
Debbie Donley
Vocon, Inc.
Cleveland
More than 20 years
ago, Debbie Donley
knew there had to be a better way
to run a business. She founded the
fast-growing design firm, Vocon,
and created a family-first culture.
“It is not an initiative, but a way
of life,” Donley says. That closeknit environment helps Vocon
distinguish itself from other
architecture and design firms.
That value placed on relationships
extends to clients as well. “We’ve
grown through clients,” Donley
says.
Kay Doyle
Fast Signs
Downtown Cleveland
Cleveland
An advanced degree
in maternity nursing and 15 years
of home management are not the
usual background for business
franchise success. But that’s how
Kay Doyle became the majority
owner of FastSigns, which she and
her husband opened in 1999. She
admits the transition was stressful
and she had to develop into a
leader with practical business
managerial skills. Since then, the
franchise has expanded. After
outgrowing its rented space,
FastSigns bought a 12,000-squarefoot building on St. Clair Avenue.
Evelyn N. Kuzilla
Jance & Company, LLC
Mentor
Evolution spurred
growth at Jance &
Company, general building
contractors, and its current
majority owner Evelyn Kuzilla.
She started in 1970 when her
brother established it. In 2006,
NAWBO
These top 10 women-owned businesses have operated a collective 142
years and employ more than 400 people.
In the United States, women own more than 10 million firms, employ
more than 13 million people and generate $1.9 trillion in sales as of
last year. Women-owned firms account for 40 percent of privately held
companies, according to the Center for Women’s Business Research.
On April 22, the NAWBO Cleveland Top 10 Women Business
Owners will gather at Landerhaven with family, friends, colleagues and
others in the business community to celebrate their achievements.
she returned and bought majority
ownership. Begun by focusing
on small commercial projects
and upscale homes, Jance &
Company now concentrates on
commercial and industrial work,
with some projects totaling $12
million. Kuzilla says marketing
and becoming a certified womanowned business have both been
worthwhile for the firm’s growth.
Judy Lester
Allied Door
Systems Inc.
Bedford Heights
Allied Door Systems’
creation is a love story, according
to President Judy Lester. After
spending almost 40 years in
the not-for-profit arena, she
quit to buy a majority stake in
the full-service automatic and
manual pedestrian door company
that her husband already was
Congratulations to the
winners of NAWBO’s
Top Ten Women Business
Owner awards.
Special Section
This special advertising section is created by
Wise Group which is responsible for all of its
editorial content, design and advertising sales.
SBE
FBE
WBENC
EDGE
Wise Group creates custom print and
electronic projects such as magazines,
special sections, newsletters, event
marketing and collateral.
For information on special sections,
contact Tammy Wise at 216.523.1212 x11
or [email protected]
CERTIFICATIONS
Allied Door Systems
A certified woman-owned automatic and manual
pedestrian door company in Northeast Ohio.
Making entrances grand.
spending time and energy to build
and develop a loyal customer
base. Lester says her years in
management helped her face and
overcome any obstacle at Allied
Door.
Cindy Lowry
Blossom Bucket, Inc.
North Lawrence
Blossom Bucket
owner Cindy Lowry
follows Gandhi’s philosophy:
“Be the change you want to see
in the world.” At the gift item
company, Lowry does not ask
employees to do anything she
would not do. “You can find me
cleaning warehouses, operating
tow motors, taking calls from
customers or traveling with a
vacuum,” she says. By taking the
hands-on approach, she wants
employees to recognize the
importance of every position as
(440) 914-9262
www.nawbocleveland.org
well as Lowry’s commitment to
the business.
Anne L. Meyers
Meyers, Roman,
Friedberg & Lewis
Cleveland
A lifelong
entrepreneur, Anne Myers
founded Myers, Roman,
Friedberg & Lewis, one of the
largest female founded, owned
and managed law firms in
Greater Cleveland. She serves as
its managing partner. Success,
she believes, is built on all the
lessons learned in her victories
and losses as an entrepreneur.
Myers has been a part owner
and principal in companies that
involved construction material
supplies, surety, adjusting, as
well as home insulation and
women’s art to wear.
Congratulations to
NAWBO’s Top 10 Women
Business Owners.
216.587.2100 allieddoorsystems.com
Congratulations to the Top 10 Women Business
owners of Northeast Ohio for 2009!
General Building Contractors
A Female Business Enterprise
Evelyn N. Kuzilla
President
8666 Tyler Boulevard Mentor, Ohio 44060
(440) 255-5800
(440) 478-1717 Cell
Fax (440) 255-1508
www.jance.com
[email protected]
SPECIAL ADVERTISING SECTION • CRAIN’S CLEVELAND BUSINESS • APRIL 20, 2009
From taking an idea to making
it a reality, your vision, concern
for others, and desire to provide
superior customer service is deeply
engrained in who we are today.
Paytime is proud to congratulate
Mary Ann Shamis for her many
successes and achievements.
www.paytime.com
20090420-NEWS--19-NAT-CCI-CL_--
4/16/2009
9:50 AM
Page 1
ADVERTISEMENT
S–2
Congratulations to all of the Top Ten Women
Business Owners of Northeast Ohio for 2009!
Thank you staff!
For over 20 years, Blossom Bucket, Inc. has offered
the wholesale home décor and gift industry a
wonderful collection of primitive folk art, general
gifts and holiday creations!
Laura Orkin
Wolkoff
Envision Radio
Networks, Inc.
Beachwood
Envision Radio Networks is the
second business Laura Orkin
Wolkoff opened. The experienced
business owner operated
Beachwood Business Fax before
creating Envision Radio Networks
in 2002 to syndicate radio shows
and services to commercial radio
stations in the United States
and Canada. “My leadership
philosophy is simple,” she says.
“Education and empower our
staff to provide the best products/
services for the market and use
their unique abilities to the benefit
of our partners.”
MaryAnn Shamis
BLOSSOM BUCKET, INC.
13305 Wooster St NW | North Lawrence, OH 44666
ph: 330-834-2551 | www.BlossomBucket.com
Paytime
Solon
When Paytime Payroll
Processing opened
in 1981, payroll involved only
a person’s gross pay and taxes.
Today, payroll involves direct
deposit and more than 100
deductions. Paytime Payroll
Processing has grown as well,
serving more than 1,000 clients.
MaryAnn Shamis says she wanted
a business where she could
make the decisions, be involved
in the day-to-day business and
have flexibility. Another plus for
Shamis is that Paytime provides
job security and benefits to other
Clevelanders.
Renee Singleton
Singleton & Partners
LTD
Cleveland
Chicago
Learn everything you can. That’s
the motto Renee Singleton
followed and led to her success
as the owner of Singleton
& Partners, a multicultural
marketing firm that she formed
seven years ago. Singleton spent
more than 20 years in marketing
and broadcast media before
creating her vision to fill the void
between traditional marketing
to mainstream America and the
need to develop strategies and
tactics to target women and the
rapidly growing multicultural
audience.
Laurel Thomas
MTI Computer
Services, Inc.
Beachwood
Always motivated to own a
business, Laurel Thomas followed
that path in 1992 when she and
her husband purchased the
service portion of MTI Systems
and created MTI Computer
Services Inc. The company
supports the IT needs of startups nationwide, from design and
implementation to evaluation
and maintenance. Thomas has
learned that educating and
communicating with employees
create the best environment for
business and talent. Recognize
employees’ contributions that go
above and beyond, she says. X
NAWBO CLEVELAND’S
TOWER AWARD
Virginia C. Albanese
President, Chief Executive Officer,
FedEx Custom Critical
Virginia C. Albanese oversees the strategic
direction, operations and customer
experience for FedEx Custom Critical, North America’s largest
expedited freight carrier. She served as the vice president of service
and then as vice president of customer service and operations from
2001 to 2007. She has been with FedEx Custom Critical since 1986.
Born in October 1963 in Northampton, England, Albanese earned
a bachelor of science from Kent State University in 1985 and an
EMBA from Kent State in 1995. She serves on the boards for the
Greater Akron Chamber of Commerce, The Boys and Girls Club of
the Western Reserve and the Akron Zoo.
Congratulations to the 2009 Top 10 Women
Business Owners of Northeast Ohio! You are
an asset to the community and an inspiration.
For more information about Key4Women, call
Angie Kazi at (440) 788-4496 or Lenora
Shumate at (216) 252-3137 or go to
Key.com/women.
©2009 KeyCorp
SPECIAL ADVERTISING SECTION • CRAIN’S CLEVELAND BUSINESS • APRIL 20, 2009
20090420-NEWS--20-NAT-CCI-CL_--
20
4/17/2009
2:21 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
APRIL 20-26, 2009
Magnet: Loan provisions allow for firm growth before repayment
continued from PAGE 3
has come afterward.
Magnet doles out the loans in
three phases, with loans of $15,000,
$40,000 and $60,000, respectively, for
each phase. Firms are monitored,
report to Magnet on their progress
and receive assistance on product
design and development. Borrowers
make no payments for three years,
while they build their companies.
Magnet’s help was invaluable
to Halcyon Products, an Auburn
company that makes equipment for
firefighters and first responders, said
Halcyon vice president of operations
early stage, they’d surely be turned
down, Mr. Zeman said.
“They’re smart enough to realize
these deals are unfundable from
traditional sources” of finance, Mr.
Zeman said.
But, with a kick-start from even
a small loan made through the
program, borrowers have gotten
far enough along to secure more
financing. Mr. Zeman said even
though the program so far has lent
only about $3.5 million, another
$18.2 million in follow-on financing
Contact:
Phone:
Fax:
E-mail:
Steve
Nash,
who
is
also
a battalion chief for the Solon Fire
Department.
Mr. Nash had an idea for a lighted
compass that could help firefighters
find their way out of burning buildings and other rescue environments.
The device is simple, with a rotating
bezel that allows firefighters to orient
it to the front of the building, as well
as a pointer that keeps them aware of
the direction from which they entered.
But Mr. Nash said he needed
Magnet’s help to design the product.
“They went way beyond what they
had to do. They did all the engineering work for the product itself
and we used space in their incubator,
too,” Mr. Nash said.
The results were good, and Halcyon
recently won a contract from the U.S.
Department of Homeland Security
to produce and distribute 200 of the
devices for field evaluation. The firm
has begun initial sales and is refining
the product, Mr. Nash said.
That’s the kind of progress the program is meant to facilitate, said Bob
Flauto, senior development finance
analyst for Cuyahoga County.
REAL ESTATE
Laura Franks
(216) 771-5388
(216) 694-4264
[email protected]
AUCTION
Magnet reports that the program
has made 87 loans totaling $3.5 million, producing 125 jobs and products that have generated nearly $9
million in sales to date. Messrs.
Zeman and Flauto say they hope to
continue the success story this year,
with a new round of lending backed
by the county’s latest reinvestment.
Magnet is accepting loan applications until May 15. Thereafter, a
panel of 30 volunteer executives and
financial experts will vote on which
new products to fund with the new,
$500,000 injection.
■
Copy Deadline: Wednesdays @ 2:00 p.m.
All Ads Pre-Paid: Check or Credit Card
PUBLIC
NOTICE
REAL ESTATE
SERVICES
ATTENTION REALTORS:
The Lake County Port Authority
is inviting interested parties to
submit a proposal for the
development of Stanton Park,
Madison Township, Ohio.
Loading Dock Services
Now is a great time to promote your
Luxury Properties to high-end prospects
AND receive reduced rates on
your advertising.
Parties interested in the Request for
Proposal should contact
Mr. Jason Boyd, Director,
Lake County Planning Commission,
125 East Erie St., Painesville, OH, 44077
(440) 350-2740.
Service, Maintenance and Sales
of Dock Levelers, Bumpers,
Seals, Truck Restraints and
Metal Stairs. Free Inspections
and Estimates.
800-34-DOCKS / 440-729-0380
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CLASSIFIED
BUSINESS SERVICES
TOM HANNAN
President
BUSINESSES
FOR SALE
Cell 216-978-9286
Phone 440-543-1364
SOURCING SOLUTIONS, INC.
8526 TANGLEWOOD TRAIL • CHAGRIN FALLS, OHIO 44023
Email: [email protected]
www.mfgsourcing.info
We confidentially
sell businesses.
Specialize in:
Manufacturing
Distribution
B2B Service Industries
Confidential Business Sale, Inc.
ATTENTION
BUSINESS SERVICE OWNERS!
Submit your business card to
promote your service and receive a
SUBSTANTIAL DISCOUNT
off your ad price.
To find out more, contact
Laura Franks at 216.771.5388
TO YOUR BOTTOM LINE!
EMPIRE
Fax: 440-543-6079
Machining • Sheet Metal • Stamping • Wire Forming
Springs • Weldments • Assemblies
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Bring a smile...
216-739-0272
ConfidentialBusinessSale.com
Experience. Trust. Success.
ARE YOU READING THIS?
This small ad space
could bring BIG BUSINESS.
Contact Laura Franks at
(216) 771-5388
Fiberglass Manufacturer
Stamping Company
Mfg. of Hydraulic Cylinders
Refinish/Install Hardwood Floors
Commercial Window Mfg.
Promotion Company
www.empirebusinesses.com
or call 216-461-2202
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Individual Games
Available.
[email protected]
WANTED
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20090420-NEWS--21-NAT-CCI-CL_--
4/17/2009
1:28 PM
Page 1
APRIL 20-26, 2009
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Twitter: Site also useful for listening to clients
continued from PAGE 3
The number of businesses using
Twitter is only going to grow, said
Melissa Koski, an account executive
with the Edward Howard public
relations firm and co-founder of the
Cleveland Social Media Club.
“I see Twitter as becoming an
essential part of a company’s marketing
strategy,” she said.
Twitter works like a live, online
diary, in which users write about
what’s on their minds in the form of
posts, or “tweets,” that are no longer
than 140 characters — a barrier aimed
at keeping Twitter quick and
digestible. The tweets can be read by
anyone who checks the user’s profile,
and by others on Twitter who opt to
receive the user’s messages.
A year ago, Twitter was only peripherally discussed when the Dix &
Eaton public relations firm presented
its annual Brain Food Series on
social media trends, said Chas
Withers, president of the Cleveland
public relations firm.
However, Twitter will be a prominent topic of discussion during this
year’s series, which begins in May.
“It’s fascinating how quickly the
social media landscape is changing,”
Mr. Withers said.
“We’ve had a pretty good return on
my time invested in it so far,” he said.
Tapping an audience
Other companies prefer the more
direct approach. Great Lakes Brewing
Co. uses Twitter to ensure that its 735
followers know which of its 40-plus
“pub exclusive” beers are on tap at its
Cleveland restaurant, and to get them
to sign up for events, said Kami
Dolney, the microbrewery’s marketing
and communications manager.
Like officials at other businesses,
Ms. Dolney said it’s hard to gauge
just how much revenue Twitter
drives to the company. But she
knows she’s reaching customers.
“Calls will come in immediately
after I send the information out,”
Ms. Dolney said.
Twitter also is useful for finding
and targeting specific types of
customers, said Daniel Faintuch,
marketing director for Lee Silsby
Compounding Pharmacy in Cleveland Heights.
The pharmacy prepares special
formulations of medicines for customers with special needs, such as
people with autism. So, Mr. Faintuch
starts conversations with followers
of autism-related organizations, who
often are parents of children with
autism.
“There are a lot of customers we can
reach through Twitter that we couldn’t
reach in other ways,” he said.
Downside risk
Jason Therrien, president and CEO
of marketing firm thunder::tech in
Cleveland, said while Twitter is a
useful marketing and recruiting vehicle, there are potential pitfalls. Mr.
Therrien said tweeting employees
could end up misrepresenting their
companies or just wasting time.
“Never do it more than you need
to,” he said. “It needs to have a
purpose.”
Cleveland-based marketing communications firm Marcus Thomas
considered in early 2008 launching a
Twitter account, but decided it didn’t
make sense as part of the company’s
overall strategy, said Michelle
Venorsky, management supervisor.
21
Rather, Ms. Venorsky said, employees
tap into Twitter and other social media
sites personally and on behalf of their
clients so they can listen to what consumers are saying about their clients’
brands and those of their competitors. “It’s a free and fairly accurate focus group,” she said.
Likewise, auto insurer Progressive
Corp. of Mayfield Heights has been
using Twitter since mid-2008 to listen
to what people are saying about it and
the insurance industry as a whole, said
Matt Lehman, director of web experience for Progressive.
A few weeks ago Progressive started
drafting its own tweets. Among them
are emergency safety tips, details
about promotions at Progressive Field
and responses to customers’ tweets.
“As Twitter itself grows, perhaps we
could use it as a more dedicated
customer service channel,” Mr.
Lehman said.
■
The soft sell
Twitter’s U.S. traffic growth hit 4
million visitors in February, a 10fold increase from February 2007,
according to comScore.com, an Internet information provider that tracks
consumer behavior. The 25- to 54year-old crowd is driving this trend.
One reason is that more business
people are using Twitter to reach that
age group, sometimes in subtle ways.
For instance, Cecilia Sherrard, a real
estate agent with Howard Hanna’s
YouShouldOwn.com team, rarely
tweets anything that would resemble
an advertisement. Her posts are typically jokes or anecdotes.
Ms. Sherrard’s plan is to build trust
with her 3,100 Twitter followers and be
the first real estate agent they think of
when they decide to buy a home. She
has yet to close a deal with a customer
met through Twitter, but she has heard
from potential customers and is
working with one now.
“If I send a funny joke and somebody from Bombay reads it, and they
happen to be moving to Ohio, it’ll
click,” said Ms. Sherrard, who began
regularly tweeting for business purposes six months ago.
Litt’s Plumbing Kitchen & Bath
Gallery of Parma Heights takes a similar
approach. Project manager Joshua
Payner occasionally tweets about the
company but usually posts plumbing
trivia and other industry-related
tidbits during the five or 10 minutes he
spends on Twitter each day.
Due to those efforts, Litt’s is in talks
with one potential customer interested in remodeling a bathroom, and Mr.
Payner, who started tweeting March 1,
said he expects more to follow.
Volume 30, Number 16 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except
for combined issues on the third week of May and
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week of July, the fourth week of August and fifth week
of August, the third week of November and fourth
week of November, the third week of December and
fourth week of December at 700 West St. Clair Ave.,
Suite 310, Cleveland, OH 44113-1230. Copyright ©
2009 by Crain Communications Inc. Periodicals
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4/9/09 12:57:18 PM
20090420-NEWS--22-NAT-CCI-CL_--
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4/17/2009
4:13 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
APRIL 20-26, 2009
THEINSIDER
APRIL 13 - 19
The big story:
Cuyahoga County commissioners unanimously approved an agreement
with developer Merchandise Mart Properties
Inc. of Chicago to build a convention center and
medical merchandise mart in downtown Cleveland. However, the much-awaited agreement
is only the beginning. Not until an additional five
agreements are negotiated and signed — first
among them, a decision on a site for the project
— can the trade show complex be considered a
done deal. For related story, see Page One.
Paying the piper: FirstMerit Corp. intends
to repay the $125 million in bailout money it
accepted in January. The Akron-based bank said
it had filed notice to repay the money, accepted
as part of the government’s Troubled Asset Relief
Program, on or around April 22. By redeeming its
preferred shares held by the Treasury, FirstMerit
will repay the $125 million plus nearly $1.8 million in dividends to the government.
Shinier outlook: For the first time since last
summer, companies that bend, stamp, cut, cast
and otherwise produce metal products are
becoming more optimistic about the economy,
according to the Precision Metalforming Association in Independence. Only 27% of surveyed
members predicted the economy would worsen
over the next three months, down from 48% in
March and from a peak of 70% in November.
Taking charge:
New leaders have been
appointed for Euclid and Medina General
hospitals. Rob Stall will leave Euclid Hospital to
become the new president of Medina General
Hospital, which signed an affiliation agreement
with the Cleveland Clinic earlier this month.
Registered nurse Joanne Zeroske will take the
helm as president at Euclid Hospital, which is
part of the Clinic system. Both appointments
were effective April 15.
REPORTERS’ NOTEBOOK
BEHIND THE NEWS WITH CRAIN’S WRITERS
Lawmakers refuse to take
leave of paid medical leave
■ Here’s a message to all those Ohio
employers who thought they escaped the
paid sick leave issue last year. Guess again.
Federal lawmakers have introduced
three new bills that, in various ways,
would tweak the rules of the
Family and Medical Leave Act
to provide more paid time
off to employees.
Perhaps the most
controversial of the bills
is H.R. 1723, which calls for
employers to pay a small payroll
tax to create a federal insurance
fund that would be used to pay
employees for taking up to 12 weeks of family medical leave, said Keith Ashmus, a partner at Cleveland law firm Frantz Ward LLP
and chairman of the National Small Business Association in Washington, D.C.
The new rule would apply to businesses
with 20 or more employees and would
expand family medical leave to include
domestic partners, Mr. Ashmus said.
Similar bills addressing paid sick leave
have been introduced in the past, but they’ve
never made much progress. However, Mr.
Ashmus said the bills have a better chance
of passing now that Democrats are in federal
leadership positions. — Shannon Mortland
It remains
a mystery
■ So, who is this masked journalist, and
does he or she work — for now — around
WHAT’S NEW
Excerpts from recent Editor’s Choice
blog entries on CrainsCleveland.com.
Shop ’til you drop,
at Walgreens and CVS
equipment rental company in Streetsboro, has
appointed as its president a former officer
with Mentor-based Steris Corp. John Voyzey
replaced company co-founder Drew Forhan,
who will continue as CEO and chairman.
Towering over:
This and that: The Gund family has given $2
million to the Cleveland Clinic to establish a
chaired position in ophthalmology
research. The Llura and Gordon
Gund Endowed Chair in Ophthalmology Research will be
held by Joe Hollyfield, director of
research at Cole Eye Institute. …
The MetroHealth System has
named Sharon Dougherty its
new chief financial officer. She
has been with MetroHealth
since August.
To keep up with local business
news as it happens, visit
www.crainscleveland.com.
What do
America’s
immigration attorney
COMPANY: Sparton Medical
Systems Inc., Strongsville
PRODUCT: The CellSearch System
Sparton Medical’s technology, which is
used to measure circulating tumor cells,
recently was ranked as the top medical innovation for 2009 at the Cleveland Clinic’s
Medical Innovations Summit.
The CellSearch System has been cleared
by the U.S. Food and Drug Administration to
predict progression-free survival and overall
survival in patients with metastatic breast,
colorectal or prostate cancer. The test can
be used any time during the course of
disease for serial monitoring of patients with
these types of cancer.
Sparton Medical says the CellSearch
System “is the first diagnostic test to automate the capture and detection of tumor
cells that have detached from solid tumors
and entered the patient’s blood.”
Send new product information to managing
editor Scott Suttell at [email protected].
■ It seems like Northeast Ohio has a drug
store on every corner, and it turns out we
like it that way.
The Nielsen Co., in a report that looks at
how Americans spend their money in retail
stores, found Clevelanders apparently love
shopping at drug stores.
While drug stores account for 3.8% of all
U.S. retail sales, they capture 9% in Cleveland, the highest total nationwide. Denver
residents, by contrast, spend less than 2% of
their money in drug stores.
The report has lots of fun trivia, too.
For instance, the top three categories
skewing to high-income households “are
wine, diet aids and floral/gardening, while
large households are buying disposable
diapers, baby food and frozen juices and
drinks,” Nielsen said.
One more reason to
look forward to fall
■ C’mon, September.
It’s that month that 54 economists —
including Jim Meil and Richard Kaglic of
Eaton Corp. — in the latest Wall Street Journal
forecasting survey expect the recession to
end.
But don’t plan that end-of-the-recession
and the
Director of the
North Union
Farmers Market
economy and declining print ad sales,
Questex Media Group reduced the size of
its Cleveland office by a total of seven fulltime positions last week,” according to a
Questex statement. “Questex had an
overall staff reduction last week of 40
employees across its 10 primary U.S. and
international locations.”
The company currently employs more than
400 people, according to the statement.
Questex Media has operations in New York;
Auburndale, Mass., near Boston; Cleveland;
Duluth; and Encino. — Kathy Ames Carr
Sallying forth
despite Sallie Mae
■ Some students at Baldwin-Wallace College
won’t need to fear dropping out due to
affordability issues created by a new mandate
by college lender Sallie Mae.
Under that mandate, students who take
out private loans for college will need to
make monthly interest payments on those
loans.
However, Baldwin-Wallace has agreed to
use money from donors to help students
make those payments if they can prove they
can’t afford them, said George Rolleston,
director of financial aid at Baldwin-Wallace.
Only about 10% of Baldwin-Wallace’s
4,260 students will be affected in the
2009-2010 year, Dr. Rolleston said.
If they can’t find another private lender
that doesn’t require monthly payments or
an alternative source of money, BaldwinWallace will step in to help with those
payments, especially if the student is a
senior, he said. — Shannon Mortland
CHOICE BITS
Focused like a laser: ForTec Cos., a laser
A developer of wireless
communications towers raised $12 million in
capital from a Cleveland private equity fund.
Clearview Tower Co. of Fisher Island, Fla.,
received the growth equity commitment from
Peppertree Capital Fund, which focuses on the
telecommunications, media and business services
fields. This is Peppertree’s sixth tower investment.
these parts?
We’re referring to the man or woman
behind an unsigned rant that appeared
April 7 in The Daily Dish, part of The Atlantic
magazine’s web site. The posting is found in
The Dish’s “The View from Your Recession”
segment, which provides readers with a
place to share how the lousy economy is
impacting them.
“I’m the first-ever web editor for my
company, which is in trade publishing and
currently converting all print items to
digital,” the reader writes. “I haven’t been
laid off (yet) and my company hasn’t gone
bankrupt (yet), but my fiancée works in
bankruptcy and restructuring for an international law firm and gets daily reports on
companies that are ‘on and off the ladder,’
meaning they could go under at any time —
my company is on that list.
“The VP of HR ‘left to pursue other career
interests’ last Friday, and they just laid off
people in our New York, Boston, Cleveland,
Duluth, MN and Encino, CA offices today.
Fortunately, I made the cut today. But I feel
like I’m on a reality show, where every week
someone else gets eliminated. I feel as if
today I received a rose to move on to the
next round as the head of the company said
‘will you stay here with me and continue to
Web my world?’ If alliances had any influence, I’d be making them right now.”
According to Folio, a magazine that
covers the magazine publishing business,
Questex Media, a business-to-business media
and information provider based in Newton,
Mass., on April 8 laid off “in the range” of 40
employees.
“In response to the downturn in the
Cleveland Clinic’s
Chief Wellness
Officer
party just yet. (This assumes that you
have any faith in economists’ projections to begin with.)
The return-to-growth
forecast for the third quarter is pretty anemic — 0.4%.
The economy contracted by
6.3% in the fourth quarter of
2008.
Journal forecasters say
unemployment won’t decrease until the
second half of 2010.
They bring lots of energy
to energy savings plans
■ Clevelanders Stuart Greenberg and
Mandy Metcalf aren’t afraid to think big.
Mr. Greenberg, the executive director of
Environmental Health Watch, and Ms.
Metcalf, director of its Affordable Green
Housing Center, made it into The New York
Times on April 13 with a letter responding to
a recent op-ed piece that suggested, among
other things, that the existing U.S. housing
stock could cut energy use by 20% to 50%.
That sounds ambitious, but the Cleveland
duo says it sets the bar too low.
“Housing rehabilitation experts have
developed superinsulation strategies for
deep energy reduction of 70 to 90 percent in
existing homes, dramatically lowering their
carbon dioxide contribution,” they wrote.
“The initial cost is high, but will be offset by
long-term utility savings. A phased approach
is also possible.”
have in
common?
shakeronline.com
Margaret Wong,
Donita Anderson,
Michael Roizen, MD
THEWEEK
20090420-NEWS--23-NAT-CCI-CL_--
4/16/2009
9:41 AM
Page 1
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20090420-NEWS--24-NAT-CCI-CL_--
24
4/17/2009
2:20 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
APRIL 20-26, 2009
Law: Clients attempt to find same service at much lower cost level
continued from PAGE 1
using the firm for work in areas
such as business litigation, intellectual property and domestic business transactions.
Several lawyers said the work
they’re picking up often isn’t from
new clients, but from companies
that only would have used them for
smaller matters in the past.
One such company is Milwaukeebased Johnson Controls, which
Alan Kopit, partner-in-charge of
Hahn Loeser & Parks’ Cleveland
office, has been working with since
1992. Mr. Kopit said he recently
added to his firm’s portfolio more
business from the maker of automotive interiors and building energy
controls, specifically the company’s
national creditors’ rights work.
“I think, by its nature, cost
factors into it,” Mr. Kopit said of the
decision to give Hahn Loeser added
work.
Not only is doing more business
with a company such as Johnson
Controls a boon to his practice, Mr.
Kopit said, but satisfied executives
there have passed his name on to
other companies that now are
using the Cleveland firm instead of
other alternatives.
Hewitt Shaw, managing partner
of Baker & Hostetler’s Cleveland
office, said the city’s history as a
mature law town puts it at an
advantage over the likes of Minneapolis or Milwaukee, cities that
also might have high-quality lawyers
available at lower rates. Cleveland
enjoys a good reputation among
lawyers, he said, putting it in a
good position to take advantage of
opportunities that arise when
clients here and elsewhere look to
cut costs.
And many clients want to do just
that.
‘Budget-priced battleship’
Chemical giant DuPont is among
the companies that publicly have
announced their intentions to
move away from large law firms in
favor of more midsize alternatives.
Roetzel & Andress president Jeffrey
Casto said that trend has increased
the pace of business at the Akron
firm, which does business with
DuPont and is seeing more inquiries
from other companies.
“It’s probably tripled the level
of interest,” Mr. Casto said. “People
are essentially trying to get equivalent service at a lower cost. A lot of
projects that are done on Wall
Street have nothing to do with the
rates that are charged.”
Robert Ross, a partner in the
corporate merger and acquisition
department at Calfee, Halter &
Griswold and chairman of its international group, said technology also
makes Northeast Ohio appealing
to companies nationwide because
lawyers can do work for their clients
from afar, connecting via telephone
and e-mail instead of showing up at
their offices.
2009 JAGUAR XF
And when an in-person meeting
is necessary, the region is centrally
located, Mr. Ross said, which makes
it easy to access from New York,
Chicago and any number of other
locales.
Mr. Ross and Calfee intellectual
property partner Georgia Yanchar
said they’re both working their
networks and successfully bringing
in more out-of-state work and business from in-state clients who had
outsourced their legal services to
other states.
“I say if you want to hire a battleship and you’re looking for a budgetpriced battleship, send them my
way,” Ms. Yanchar said. “It’s a good
opportunity for us to prove what
we can do.”
■
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