Issuu

VOL. 40, NO. 34

AUGUST 26 - SEPTEMBER 1, 2019

Source Lunch

Akron

Adam Schmith, LCCC’s director of culinary arts

Entrepreneur’s store promotes a zero-waste lifestyle. Page 20

Page 23

REAL ESTATE

Developers ramp up action in industrial realty

HIGHER EDUCATION

FAMILIARITY CAN BREED SUCCESS

By Stan Bullard sbullard@crain.com @CrainRltyWriter

come from the upper reaches of society, many of whom are first-generation, and then watching them do great things,” he said. Maintaining that accessibility is important. But he added that Kent State can reach new heights by creating new programs and making good leadership hires. Diacon gave the example of Mark Mistur, dean of the university’s College of Architecture and Environmental Design. Mistur has brought in new faculty, and enrollment in the college has grown.

Bob Brehmer has built and sold a massive amount of industrial property in Northeast Ohio over the last 30 years. In 1988, he oversaw development of a speculative industrial building in Twinsburg as a staffer for the late Bertram Wolstein. Now, he’s working on another one — the first one for his own account. “This isn’t all smoke and mirrors,” Brehmer said of sizing up potential for a 150,000-square-foot industrial building that he and fellow investors in Levelan Partners are having built at 10069 Wellman Road in Twinsburg. He also represents as a broker for NAI Pleasant Valley. “We keep getting calls about a building we sold last year to a user. On the new one, they ask, ‘Can I have it in October?’ There’s a shortage of high-cube (ceilings above 30 feet) industrial space, and it will take a significant amount of building to create a big change to average vacancy in this market.” A significant amount of construction indeed. JLL Inc.’s Cleveland office estimates that vacancy among such huge, tall modern industrial buildings (called bulk distribution in the business) is at 4.1% as of June 30, up from 2.9% at the same time last year.

SEE DIACON, PAGE 22

SEE BUILDINGS, PAGE 18

Todd Diacon plans to bring the experience he gained as Kent’s provost to his new role as the university’s 13th president. (Kent State University photo)

Todd Diacon, Kent State’s new president and former provost, wants the university to stay accessible, thoroughly explore the mind and thrive in less-common fields By Rachel Abbey McCafferty rmccafferty@crain.com @ramccafferty

Todd Diacon has three initial goals for Kent State University. While he’s president, he wants the university to succeed while remaining accessible, to explore the mind in all ways and to excel in less-common fields. “So let’s just say, collectively, that my vision is to continue with the things that we do really well and to enhance them,” Diacon said.

Kent State named Diacon its 13th president on April 29. He officially took on the role July 1, succeeding Beverly J. Warren, who spent five years as the university’s president. Diacon is familiar with Kent State’s strengths and challenges, having spent seven years as its provost prior to being named president. His initial goals clearly build upon the work he and others have already done there. About a third of the students on the university’s Kent campus are Pell Grant recipients and about a third are first-generation college attend-

“Let’s just say, collectively, that my vision is to continue with the things that we do really well and to enhance them.” — Todd Diacon, Kent State University president

ees, Diacon said. “One of the best successes of Kent State over the decades has been educating students, not all of whom

NONPROFITS

Evergreen Cooperative Corp. shares in $24 million grant By Scott Suttell ssuttell@crain.com @ssuttell

Evergreen Cooperative, which has launched a network of worker-owned businesses in Cleveland, will receive a share of $24 million in grant investments from the Kendeda Fund. (Evergreen Cooperative)

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An Atlanta-based fund that wants to expand what it calls “democratic employee ownership” across the United States is giving a total of more than $24 million in grants to four nonprofits, including Evergreen Cooperative Corp., which has gained national attention for launching a network of worker-owned businesses in Cleveland. The Kendeda Fund on Monday, Aug. 26, will announce that the grants are going to The Fund for Em-

ployee Ownership, a new initiative at Evergreen; the ICA Group of Northampton, Mass.; Nexus Community Partners in St. Paul, Minn.; and Project Equity in the San Francisco Bay Area. Kendeda, which describes itself as being “dedicated to exploring how human beings can build a more just and equitable world” and has made more than $700 million in grants since its founding in 1993, said the $24 million in grant investments “will be completed by 2023,” but it would not break down how much money is going to each organization. SEE GRANT, PAGE 18

CRAIN’S

2019 HEALTH CARE HEROES PAGES 10-16

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CONTENT

SPONSORED BY

NEWS AND TRENDS FROM NORTHEAST OHIO’S TECHNOLOGY SECTOR

TECH MATTERS N

INCUBATING INNOVATION

coaching and professional services, such as legal ortheast Ohio is flush with incubators, accelerators and coworking spaces, and accounting assistance. Stack said while money is critical to any growing organization, the advice and these startup organizations all are he and his team provide is equally impactful. oriented toward the same goal. “It’s less about providing direction for the startup; “It is about bringing entrepreneurs, small that is the job of the entrepreneur. Our role is to steer businesses, freelancers, investors, mentors and him or her around the cliffs,” Stack said. “I’ve had advisers together, and that is what makes the impact,” five of my own startups, and we’ve had 50 startups said LaunchHouse co-founder and CEO Todd Goldstein. “To me, it’s a community of like-minded participate in our program, so identifying risk is people who have a knowledge base and can provide something we have gotten pretty good at.” Some startup spaces, such as Akronaccess to capital and other important resources.” based Bounce Innovation Hub, also utilize LaunchHouse is currently home to 80-plus entrepreneurs-in-residence, or startups between its Highland Heights seasoned entrepreneurs who guide and Lakewood locations, according “Out of the and mentor young companies. to Goldstein. Members get access to “Out of the core resources that we mentors, interns and free lunch and core resources off er, mentorship is probably the most happy-hour programs that target that we offer, sought after by the entrepreneurs,” specific organization-building topics, mentorship is said Christopher Mazziotto, director as well as shared office resources probably the of entrepreneurial services at Bounce such as Internet, conference rooms, Innovation Hub. “(Entrepreneurscoffee and snacks without the need most sought in-residence) are probably the most to sign long-term contracts. And, after by the effective resource as well.” while LaunchHouse itself no longer entrepreneurs.” Mazziotto said Bounce’s six invests in member startups, Goldstein entrepreneurs-in-residence assist said the entrepreneurs who “buy into — CHRISTOPHER MAZZIOTTO, DIRECTOR startups with strategic planning, our vision of community” will find OF ENTREPRENEURIAL competitive analysis, market connections to the capital they need. SERVICES, BOUNCE research and a variety of other Charles Stack, co-founder and INNOVATION HUB services on an ad-hoc basis. Nearly CEO of Cleveland-based Flashstarts, 60 businesses currently participate in said his organization has evolved from a more traditional incubator model to an Bounce’s four programs, which include a downtown Akron technology incubator space and a fouraccelerator. The biggest difference, he said, is the time frame. While incubators tend to offer more month software accelerator. Accelerator companies open-ended engagements with entrepreneurs, an have access to coworking space and a potential accelerator works with startups for a short and investment of up to $40,000. Entrepreneurs can apply online for Flashstarts’ and defined amount of time. Flashstarts’ early accelerator cohorts operate from the end of May through mid- Bounce’s startup programs. For more information on Flashstarts’ accelerator and venture fund, visit August. The timeframe aligns with the summer Flashstarts.com. For more information on Bounce availability of interns, Stack said. In addition to summer interns, Flashstarts Innovation Hub, visit BounceHub.org. LaunchHouse does not require an application. Details on joining the provides its startups with a capital infusion — generally a $50,000 equity investment — along with community are available at LaunchHouse.com.

FOOD HOT AMONG INCUBATOR CONCEPTS

ick Simonetti likes to cook at home, but he never imagined he’d be a key player in Akron’s culinary scene. Simonetti, a seasoned project manager, in 2018 joined The Well Community Development Corp.’s fledgling Akron Food Works operation. As kitchen manager, he is responsible for overseeing the build-out and operation of a 2,200-square-foot food incubator where chefs, bakers, caterers, food truck owners and food product innovators have access to a licensed commercial kitchen to test out

CALENDAR OF

EVENTS A PRODUCT OF

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PHOTO PROVIDED BY BOUNCE INNOVATION HUB

new ideas and grow their food businesses. Expected to open in mid-September, Akron Food Works will be one of the newest entrants among a growing number of food incubators across the country. Cleveland-based Central Kitchen (formerly Cleveland Culinary Launch & Kitchen) opened in 2013 and has helped accelerate a number of producers, including Randy’s Pickles and Saucisson. Akron Food Works will be anchored by an initial 11 tenants. There are another 130 to 140 potential clients that have expressed interest in the space. In addition to

the kitchen and preparation spaces for rent, members will be able to lease storage space and participate in a food business boot camp that covers a range of topics, from health code basics to social media marketing. Clients also have access to funding of up to $25,000. “The goal is for the kitchen users to be able to grow their businesses to where they will employ people here or invest in their own kitchens outside of Akron Food Works, which will drive commercial development and employment locally,” he said.

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INDUSTRY GLOBAL | THE PRODUCT CONFERENCE: 8 a.m. to 6 p.m., Cleveland Public Auditorium, 500 Lakeside Ave. East, Cleveland. About 1,200 attendees from 30 countries will connect with renowned product leaders and share their latest strategies for launching and scaling software products. industryconference.com

This advertising-supported feature is produced by Crain’s Content Studio-Cleveland, the marketing storytelling arm of Crain’s Cleveland Business. The Crain’s Cleveland Business newsroom is not involved in creating Crain’s Content-Studio content.

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Wireless carriers are quietly building out 5G Being an early network adopter could make Cleveland more attractive to tech companies By Kim Palmer kpalmer@crain.com

Cleveland has been on the short list for 5G cellular network technology for several years. The largest U.S. cities were in the wireless carriers’ first wave of installations, but as one of 20 smaller markets, Cleveland is poised to have one of the largest 5G coverage areas in the country, if not the largest. Being an early adopter could make Cleveland attractive to tech companies looking to develop applications for and because of 5G. While “5G” is short for fifth generation, the technology is more than just an equipment upgrade. It’s a sea change for the means and speed by which information travels to individual devices. A 5G network provides data rates many times faster than current networks and substantially increases the number of devices that can use the wireless network. “When you think about a wireless network, there are two things to think about,” said Verizon spokesman David Weissman. “There is coverage — does your phone have a signal — and there is capacity. If you are at the Cavs championship parade and you jam a million, two million people into a few blocks, you have a challenge.” Verizon said it expects to have its 5G service available by the end of 2019, which may make it the first car-

rier to go live in Cleveland. Because of the type of 5G spectrum Verizon is installing, the company plans to concentrate service in “areas with high pedestrian volume.” “Basically, the higher you are in the wavelength, the faster speed you get, but the harder it is to penetrate buildings,” Weismann said. “Our 5G network really shines when you are outdoors with the device.” None of the three largest wireless carriers — AT&T, T-Mobile or Verizon — will offer a hard deadline for when 5G will go live here. They’re also building out the necessary infrastructure even though the majority of cellphones in use aren’t actually equipped to use the technology. AT&T has invested nearly $375 million over the past three years, making nearly 900 wireless network upgrades in Cleveland, Elyria and Mentor. Similarly, Verizon has invested more than $300 million in network enhancements in the area in the past five years. These costly improvements revolve around the installation of many “small cells,” a series of small antennae that act like a cell tower but are closer together. The high-density small cells use radio waves capable of handling massive amounts of data at fast speeds. Six months ago, AT&T regional president Adam Grzybicki publicly complained about bureaucratic slowdowns impeding plans for an ex-

tensive 5G network buildout. Today, permitted work is underway all over Cleveland. “We are seeing them (small cells) going in throughout the city,” noted Matt Spronz, director of capital projects for the mayor’s office. Freddy Collier, director of city planning, said any delays were just part of the process of managing tech-

be exact. The breakdown is AT&T has 16, Comcast has 55, Verizon has 251, but we are preparing for a significant committal from AT&T coming down the pipeline.” One of Cleveland’s advantages is that the municipal utility, Cleveland Public Power, allows companies like AT&T to make a blanket agreement for the right-of-way on all CPP struc-

“There is so much new technology coming and there are so many buzzwords, it is a little overwhelming and people get buzzword fatigue.” — Bernie Moreno, president of Bernie Moreno Cos.

nology not owned by the city but on city property — like utility poles. “Often, which is very scary, we have various companies attaching to one pole,” he explained. “Not only is it additional clutter, but it can compromise the pole. We want to safeguard against this.” Since March, Cleveland’s planning, development and legal offices have been in permitting negotiations with companies wanting to install small-cell technology to power the 5G network in and around the city. “It was a fast-moving target,” said Darnell Brown, chief of operations for the city of Cleveland. “Right now, we have a little more than 300 permits that have been issued — 322 to

tures. Such an arrangement doesn’t exist in many other cities. The Federal Communications Commission has authorized a new spectrum of radio frequencies for 5G use. Ohio and 21 other states passed legislation to streamline regulations around the deployment of 5G small cells. Cleveland City Council also easily passed legislation to facilitate 5G buildout, although at least one member said he feels out of the loop, only finding out about small-cell construction when Mayor Frank Jackson’s office sends out a press release. Michael Polensek, a member of the council’s utilities committee, said he supports creation of a 5G network

and helped move 5G policy to a full council vote. Like many, though, he’s not 100% sure what it all means. “I am not a geek, so you have to sit down and you have got to explain things to me,” Polensek said. “I have got to believe it is for the best interest of the city, but I am not knowledgeable about it.” “There is so much new technology coming and there are so many buzzwords, it is a little overwhelming and people get buzzword fatigue,” noted Bernie Moreno, president of Bernie Moreno Cos. and chairman of Ownum, an incubator for blockchain startups. Moreno likened 5G to a petri dish for creating new technologies. Highspeed internet alone isn’t important — it’s what people are allowed to do with it that advances technology. “The people who are looking to really monetize this new technology, how to use it — that will attract people to come to Cleveland for testing and experimentation and setting up companies,” Moreno said. So far, most of the 5G buzz has been just that — buzz — but what seems impossibly futuristic, like autonomous cars, continuous health monitoring and smart energy grids, is promised to come to pass, enabled by this new technology. “As I sit here right now, I cannot tell you all the cool and amazing things that 5G will create, but I know there will be a lot of cool and amazing things,” Moreno said.

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CRAIN’S CLEVELAND BUSINESS

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The United States is looking to reach the moon again, and NASA Glenn Research Center is a substantial contributor to the new moonshot project. Like many other government entities, NASA Glenn relies heavily on outsourced workers signed for fiveor 10-year contracts. In 2018, almost 1,700 of the center’s nearly 3,300 workers were contractors hired and managed by outside companies. Those companies rely on iSite, a cloud-based software-as-a-service from MSM Group Inc. of Fairview Park, to organize and track their deliverables and manage every aspect of their federal contract work. In July, MSM was awarded its first contract for an entire NASA facility, Langley Research Center in Virginia, to use iSite to manage all of its outside contractors. That could, in time, lead to its adoption for all 10 NASA research centers around the country. Richard August, manager at MSM, said he’s confident the company is well positioned for that. “We have a lot of traction, but the wheels turn slowly,” he noted. “We are the lead horse on the inside track to be awarded an agencywide solution, not just a centerwide solution.” ISite is the brainchild of MSM president and CEO Kevin M. McQuade, who began managing federal contracts back in 1983, when it entailed timecards and interoffice mail. In the 1990s, the feds moved to engage more minority-owned and small businesses, cutting loose the larger companies that had been supplying NASA with contract workers. That process repeated just five

years later because within that time many of the small firms had grown enough to become ineligible for the next contract. McQuade, seeing this play out, decided it was time to form his own company. He translated his knowledge and experience to create software to automate contract management. “We caught the wave in 1999, with the beginning of the web, then the

“We are the lead horse on the inside track to be awarded an agencywide solution, not just a centerwide solution.” — Richard August, manager at MSM

beginning of the taking systems out of the computer and up in the cloud,” he said. Nearly 20 years later, MSM, a certified service-disabled veteran-owned company, boasts yearly sales of $5.5 million and has a total of 30 employees working to support software at NASA research centers in Florida and now Virginia, as well as at Glenn. Brian Rice is general manager for HX5 Sierra, a company that employs 420 people who run, maintain and upgrade the test facilities at Glenn and Plum Brook Station, a NASA facility near Sandusky. Rice, who has spent 22 years at NASA Glenn and is managing his sixth project — worth hundreds of millions of dollars — stresses how much goes into a federal government contract. “It gets incredibly complex, and it

has gotten more complex,” he said. “You have to really know your costs and your hours. They have a million work breakdown structure codes, and you have to hit the right one and be accountable to the government for reporting.” NASA is now in the midst of an assessment aimed at consolidating business functions and reducing redundancies across its 10 research centers. As part of that, after decades of perfecting software for companies working with NASA, MSM is now providing the agency itself with a similar product to help streamline its contracting process. To be able to sell iSite to NASA and compete with the likes of Oracle and Cisco, McQuade had to spend years and a substantial share of personal capital to qualify for a coveted Federal Risk and Authorization Management Program (FedRAMP) certification, which the government requires to ensure certain security protocols are in place. Gaining FedRAMP certification paid off in July, when NASA Langley awarded MSM a $5.5 million contract to deploy iSite centerwide. “The government has discovered that it is such a unique piece of software they want all the contractors to use it,” Rice said. “It is a product that is perfectly made for what you need here to provide transparency, because when you are spending taxpayer dollars you need transparency.” MSM, which added five new employees in the past year, estimates it could add 30 more if iSite were picked up for all of NASA’s centers. “It would be huge for NASA to use software from a small business,” McQuade said. “And it would be huge for us.”

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Beachwood Place, others look to new playbooks By Stan Bullard sbullard@crain.com @CrainRltyWriter

As shopping malls and plazas face a changing retail environment, fresh strategies are taking shape in the wings even for the region’s healthiest enclosed mall, Beachwood Place in Beachwood, and more is in store for West Bay Plaza in Westlake. In Beachwood, a rewrite of the city’s zoning code has prompted the city to enter a dialogue with Brookfield Retail Properties Group of Toronto, the mall’s owner, as it updates the suburb’s master plan. Meanwhile, Beachwoodbased Site Centers Corp. has launched planning for a second phase of its remake of the plaza on the southwest

The vast parking lots at Beachwood Place may gain additional uses if the city of Beachwood alters the zoning code. (CoStar)

corner of the Crocker Road/I-90 interchange in Westlake, less than a year after turning the slot formerly filled by an anemic Kmart store into a busy center with five new retailers such as the Fresh Thyme grocery store. By the fundamentals, Beachwood Place is in great shape. Two big restaurant spaces are empty, but the million-square-foot, two-floor property is 99% leased, in large part

thanks to the original development by the fabled Rouse Corp. as a highend mall that eschewed the likes of now-troubled mainstream retailers such as Sears and JCPenney. Instead, it has the likes of Nordstrom, Saks Fifth Avenue, Zara and Dillard’s as its anchors — and no cavernous former Sears or Penney spaces. However, as Beachwood’s planning commission updated sections

of its zoning code, it felt the code should be altered in ways that would potentially allow denser, mixed-use development at the mall site. As a result, there have been email exchanges with Brookfield about different options, initiated by the city, not the mall, according to William Griswold, Beachwood building commissioner. The mall’s move to continue evolving is also reflected in a plan it filed with the city to request permission to upgrade the connection between the mall and LaPlace Shopping Center, an office-retail complex next door that the mall acquired in 2019. The request is to create a grassy field with a projection screen and a parking space for food trucks. Griswold said the update is estimated to cost more than $2 million. The city’s planning commission

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will consider the proposal at its meeting on Tuesday, Aug. 27. In other words, the enclosed mall would gain an open-air attraction for events, taking a page from newer-breed lifestyle centers. For the mall’s part, Heidi Yanok, Beachwood Place general manager, said in an email that Brookfield was not prepared to comment for this story by Crain’s deadline on Friday, Aug. 23. The final form of the zoning changes are still in flux, Griswold said, noting that even if the code is updated later by the planning commission and Beachwood City Council, the council would continue to control what happens because other potential uses would be conditional uses, which it could approve or disapprove. Some of the conjecture about the future of Beachwood Place has been prompted by Brookfield’s announced plans to update malls with additional features. So far, it has launched such programs at just three of its malls. Another variation of the same discussion is taking shape across town in Westlake. During its July 29 conference call with investors on its second-quarter financial reports, Site Centers announced that it has listed the second phase of its West Bay Plaza as an active redevelopment project. Much of that space to play with will be available after Marc’s exits West Bay late this year for a shopping center that’s being built at Canterbury and Detroit roads in Westlake. Site Centers has pointed to uses such as apartments, hotels and others as part of its five-year plan to redevelop its well-located properties for changing times. James Bedell, Westlake planning and economic development director, said in a Friday, Aug. 23, phone call that the city has not had talks with Site Centers about a potential next phase. West Bay Plaza, a fixture in the suburb since the 1970s, is zoned as a shopping center district, with means it is limited to retail and service retail uses as well as office use. Talking about other uses for a shopping center, particularly an enclosed mall, is a big change in the shopping center business. Rich Moore, a veteran retail and shopping center analyst who operates Lee Carvel Consulting in Solon, said that 20 years ago, adding an office, apartment or hotel would have created concerns for shareholders who invest in public companies. “The question investors would have had, if you want to put in an apartment or office building at your mall, would have been, ‘Why should I invest in you as a retailer? If I want apartments or offices, I will invest in them,’ ” Moore said. Now, Moore noted, shopping center owners are pushing to “densify” their properties with such uses because the retail sector has been so roiled by bankruptcies and store closings they need additional sources of revenue. “I’m pretty skeptical about it unless a shopping center owner partners with an established operator with a strong track record,” he added. At the same time, the other extreme is the stunning demolition of three enclosed malls in Northeast Ohio and their replacement by Amazon fulfillment centers, with one open in North Randall, another nearing an opening in Euclid and ground preparation underway for one on the site of Rolling Acres in Akron. However, all three malls had grown weaker for decades before the online retailer’s new warehouses became an option.

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Region needs greater focus on startup businesses, panelists say By Jay Miller jmiller@crain.com @millerjh

In many ways, the business startup culture in Northeast Ohio is still in its infancy, despite a number of successes in recent years. It’s getting better, but needs to grow even more. That was the takeaway from the session “Anatomy of a Great Startup,” presented Wednesday, Aug. 21, and sponsored by the North Coast Angel Fund (NCAF), a Cleveland investment group that invests in technology startups and works to improve the state of early stage funding in Ohio. The program was for both members of NCAF, who have invested in businesses together, and potential members, outlining how and why to invest in startups in Northeast Ohio and to better acquaint the local investment community on the road startups take to success. In the first panel discussion, moderator Adam Kaufman, founder of the Up2 Foundation and its podcast, asked entrepreneurs Charlie Lougheed and Marty Tarr how startup entrepreneurs view the local investment scene. “We need investors who are advocate investors, who encourage entrepreneurship,” Lougheed said. “There isn’t enough (local investment in startups). We need more. We need to be able to do this.” Lougheed is the founder of startup Axuall Inc., an early stage company that is developing a secure approach to sharing information, such as identity and credentials. Earlier, he was a co-founder of Explorys Inc., which developed a cloud-computing platform used by health care institutions to treat diseases. He and partner Stephen McHale sold that to IBM in 2015.

Tarr, president of Independencebased Tiburon Technologies Inc., a mainframe migration firm that was acquired by what is now Dell EMC in 2012, saw a chicken-or-egg situation. “It’s difficult to raise money in Cleveland,” Tarr said. “If there were more successes, there will be more dollars.” A second panel looked at the view from the perspective of large corporations. Alan Brenner, a technology busi-

“We need investors who are advocate investors, who encourage entrepreneurship. There isn’t enough (local investment in startups). We need more. We need to be able to do this.” Charlie Lougheed, entrepreneur

ness consultant and Cleveland native who had a long career as an executive in several major corporations in Silicon Valley before returning to the region, said startups early on need to find a larger, more established business with which to partner. That relationship can be twofold. First, the larger business can be that important first or second customer, and then, perhaps, acquire its younger partner. “From a startup point of view, you’re looking for somebody who represents a large market and you’re looking for a customer who is really highly capable,” Brenner said. “The worst thing you can do as a startup is

get involved with a partner who isn’t very functional. It’s truly got to be a great partnership where both sides are energetically engaged with each other and there is great follow-up and great communication.” Sue Tyler, a former executive with Medical Mutual of Ohio who is now a member of the board of Family Care Path, a Cleveland for-profit health care technology company, acknowledged that the kind of large companies startups need to partner with can be very risk-averse and reluctant to team up with startups. “It’s hard to put your reputation in someone else’s hand,” she said of young companies she saw at Medical Mutual that wanted to be a call center manager or provide some other customer-facing service. “We needed to make sure the startup is well-funded and well-staffed.” Responding to a comment from Brenner that startup founders often don’t have the patience for corporate bureaucracies, Tyler noted that the health care finance industry she comes from can be “administratively burdensome.” Len Komoroski, CEO of the Cleveland Cavaliers and Rocket Mortgage FieldHouse, said he’s fortunate to work for an owner, Dan Gilbert, who is willing to take risks. He cited the partnership between the Cavaliers and Veritix, a local startup that Gilbert was involved with that has played a major role moving the ticketing industry from paper to digital tickets. Veritix eventually merged with a larger partner in what ticket buyers see as Flash Seats, but Komoroski said the Cavaliers, in part because of Gilbert’s own entrepreneurial experience, are willing to take risks on startups. “We’re in a position to fail,” he said. “We’re encouraged to fail.”

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CRAIN’S CLEVELAND BUSINESS

Opinion Personal View

Creative ways companies can retain talent By Timothy Burke

Editorial

Learning to share The Business Roundtable, an association of CEOs of America’s largest companies, has a new “statement on the purpose of a corporation” aimed at upending the era of “shareholder primacy” in favor of promoting “an economy that serves all Americans.” That might sound a little Bernie Sanders-ish, but the short statement was signed by 181 chief executives, including the leaders of three big Northeast Ohio companies: Eaton, KeyCorp and Progressive. (One of those who didn’t sign: Parker Hannifin CEO Thomas Williams.) The CEOs supporting the statement said they “commit to lead their companies for the benefit of all stakeholders — customers, employees, suppliers, communities and shareholders.” Note the placement of shareholders in that sequence. Taken at face value, the statement is, as The Wall Street Journal said, “a major philosophical shift for the association,” which for more than a generation explicitly made shareholders, and generating big returns for them, the top priority for corporations. The times, they are a changin’? Maybe. In the new statement, the signers committed to a philosophy that includes “investing in our employees” by “compensating them fairly and providing important benefits.” They also pledged to “support the communities in which we work, ... respect the people in our communities and protect the environment by embracing sustainable practices across our businesses.” It’s only in the final bullet point of that statement that the signers pledge “generating long-term value for shareholders, who provide the capital that allows companies to invest, grow and innovate. We are committed to transparency and effective engagement with shareholders.” Progressive CEO Tricia Griffith, who was Fortune magazine’s 2018 Businessperson of the Year, was among those quoted in a Business Roundtable’s news release last week on the issue, stating, “CEOs work to generate profits and return value to shareholders, but the best-run companies do more. They put the customer first and invest in their employees and communities. In

the end, it’s the most promising way to build long-term value.” If the Business Roundtable, which is a lobbying organization, hoped to raise its profile with the provocative statement, those 300 words sure did the trick. And it got people talking, not necessarily in a good way. A Wall Street Journal editorial, for instance, said that while the statement is light on substance, it’s “still notable that the CEOs for America’s biggest companies feel the need to distance themselves from their owners.” CEOs aren’t politicians, but they have political skills that helped them rise to their positions. And they know that big companies face heightened scrutiny from the political left and the right, which makes casting themselves as advocates of a corporate evolution a useful strategy for staying out of the crosshairs, as much as possible, of 2020 presidential candidates. The statement also is helpful to them as a move-the-goalposts strategy. There are plenty of signals in economic data that we’re heading for at least a slowing of economic growth, if not necessarily a recession. The big profits and shareholder returns generated during the economic recovery are likely to start looking less impressive. So it’s pretty brilliant for the CEOs to try to recast what constitutes success and to be judged by more than quarterly returns. CEOs from the Business Roundtable didn’t specify how their companies might achieve this shift. They also didn’t touch on hot-button issues such as CEO pay or immigration. And while the statement may seem like some sort of rebuke of Trump-era values, the CEOs also didn’t mention tax cuts or regulatory rollbacks, which they support. In the end, if major social change is what you want, don’t look to CEOs for it. That’s not their role. They’re more effective in bringing benefits to society when their companies succeed. If they’re more inclined to take stock of their societal impact, that’s good. Just keep your expectations in check.

Publisher and Editor: Elizabeth McIntyre (emcintyre@crain.com)

CLEVELAND BUSINESS P008_CL_20190826.indd 8

Managing Editor:

Scott Suttell (ssuttell@crain.com)

Contact Crain’s:

216-522-1383

Read Crain’s online: crainscleveland.com

Ask any business owner or C-suite executive about the biggest challenges they face and one issue that will surely come up is retaining quality talent. Finding and retaining the right talent is a perennial struggle, and with unemployment at record lows, the job market is booming for the most sought-after individuals. Workers want more than a job: They want opportunities to grow and know they Burke are valued. This not only involves salary, benefits and a growth plan, but also care for their emotional and financial well-being. A recent study from the National Center for the Middle Market looked at the value of talent planning, which ensures continuity and growth while maintaining structure throughout an organization. Among the findings: JJTalent planning includes many activities, such as succession planning, talent review, human resource planning, benchstrength analysis, staffing, development and performance management. JJTalent planning is not as prevalent as one might expect, with fewer than half of middle market firms currently implementing critical talent planning strategies. JJCompanies with superior talent planning achieve superior overall business performance. It’s clear that planning has an impact on your workforce and ultimately your bottom line. Here are some strategies to help initiate and develop a talent plan:

Examine turnover rates to understand patterns Employee turnover refers to the number or percentage of workers who leave an organization and are replaced by new employees. You’ve probably heard it before, but most people don’t quit their jobs. They quit their bosses. In fact, Gallup found that 75% of employees who left their jobs quit because of their manager. Make sure your leadership team understands the importance of open dialogue and trust. Employees need to hear not only that you have confidence in their abilities, but also that they can improve and that you will support them throughout their career. One simple question managers can ask employees that can help keep your turnover rate low is: How can I be a better manager for you?

Develop robust processes for performance reviews Employees want to know what they’re doing right and where they need to improve, but they also want professional growth. Performance reviews are not something that should happen once a year. They ought to be continuous and involve regular discussions. For example, twice a year, focus on job planning and evaluation. Then, have two more discussions about career development. Following this schedule, the employee discusses his or her job and career, formally, four times a year. Employees need support and guidance from their managers, which is why effective leadership is so important. SEE BURKE, PAGE 9

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing ClevEdit@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes. Sound off: Send a Personal View for the opinion page to emcintyre@crain.com. Please include a telephone number for verification purposes.

8/23/19 11:31 AM

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Personal View

Beer brewing is part of Ohio’s manufacturing story By Eric Burkland

Most who are reading this already know manufacturing is a big deal in Ohio. What many don’t realize is that food and beverage production plays a major role in Ohio’s manufacturing portfolio, providing about 62,000 jobs in the Buckeye State. And a key player within Ohio’s food and beverage industry Burkland is beer. Ohio’s beer-brewing industry dates to the arrival of German immigrants during the 1800s. As with most things, Ohio’s beer production has undergone a transformation as consumer preferences have changed. As reported by Crain’s earlier this year, Ohio’s craft beer market has about 300 breweries and is the fourth-largest craft producer by volume in the U.S. The Ohio Craft Brewers Association reports that the craft beer industry supports more than 8,300 Ohio jobs, generating $261 million of annual labor income, with a total economic impact of nearly $1 billion. Each craft brewery offers area residents as well as tourists an impressive selection of unique, local flavors. As more breweries open, competition increases and existing breweries become more innovative. For example, Cleveland-based Great Lakes Brewing Co. opened its first brewery against long odds in 1986. Now, its bold beer options like the “Holy Moses Raspberry White Ale” and the “Buckin’ Mule Moscow Mule Ale” are available to consumers all over the country, while the bulk of its operations continue to support growth and jobs right here in Ohio. Half a mile down the road from Great Lakes Brewing,

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Platform Beer Co. has rapidly grown to bring great beers to people across Ohio, opening locations in Cincinnati and Columbus as well. Platform’s passion for brewing more than 200 different types of beer a year quickly put it on the map as a rising star in the industry. A recent partnership between Anheuser-Busch InBev and Platform Beer Co. marries the original with the new beer traditions. Ohio can be proud of the brewers who are creating jobs right here at home by making great beers for consumers to enjoy in the Buckeye State and beyond. The Ohio Manufacturers’ Association raises a glass to the state’s diverse and growing beer brewing industry. Salute! Burkland is president of the Ohio Manufacturers’ Association.

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BURKE

CONTINUED FROM PAGE 8

Develop talent pools for critical positions Talent pools are groups of employees within an organization who are being trained and developed to assume greater responsibilities and professional growth. Organizations must always be thinking about the future. External recruiting will not always yield the talent you need. Internal pools allow companies to develop future talent from within and allow flexibility to meet their fluid operational needs. The Recruiters Handbook suggests the following to help companies develop talent pools: JJManagement coaching: Regularly coach your managers so they can help employees change behaviors and improve performance. JJPeer-to-peer feedback: For feedback to be effective, it has to come not only from managers, but from peers. Encourage employees to deliver timely, specific feedback in a positive way to each other. This culture shift can have a transformative impact and result in enterprisewide open communication.

Strategize for succession Succession planning should be a fundamental element of your leadership development strategy. And it’s something that should be taking place across all levels of your organization. Look for people who best display the skills necessary to thrive in higher positions, regardless of their current title. While the second-in-command may seem like the obvious successor, don’t write off other promising employees. As you identify your top performers, think about how you can help them develop new skills and refine exist-

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ing ones they’ll need to move into a more senior role. Mentoring relationships, job shadowing and training all can help. Remember that good leaders not only need technical acumen but also strong interpersonal skills, including standout verbal and written communication abilities, as well as tact and diplomacy. Allow potential successors to assume some responsibilities while business owners or C-suite executives are on vacation. This will help employees gain experience and will allow you to learn how prepared they are to take on a bigger role.

PEOPLE ON THE MOVE

Happiness impacts productivity and growth We often think of benefits in terms of medical, dental and 401(k). While offering competitive options in these categories is critical, offering your workforce help with their everyday finances can give them peace of mind and boost productivity. Stress caused by an employee’s financial situation affects not only their happiness but can also negatively impact their work performance. Talk to your banker about starting a workplace financial wellness program, which provides employees with in-person, on-site financial wellness educational sessions customized to their needs. Employees report that such programs have helped them monitor their spending, pay off debt and prepare for retirement. Recently, following one of our financial wellness sessions for employees of a corporate client, we were able to help five employees start the homebuying process because they realized it required less of a down payment than they had thought. Having a well-developed employee retention strategy is crucial to the success of your business. Doing so will keep your company staffed with quality talent, with a focus on personal achievement and collective growth. Burke is president of KeyBank’s Northeast Ohio market.

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CRAIN’S CLEVELAND BUSINESS

CRAIN’S

PHYSICIAN/DENTIST FINALISTS, PAGES 10-11

2019 HEALTH CARE HEROES C

Dr. Kevin Dieter, Hospice of the Western Reserve Dr. Margaret Larkins-Pettigrew, University Hospitals Dr. Bernard Stulberg, St. Vincent Charity Medical Center INNOVATION FINALISTS, PAGES 11-12 R. Dan Allen, D.A. Surgical Dr. Stanley Hazen, Cleveland Clinic Dr. Oliver Schirokauer, The MetroHealth System NURSE FINALISTS, PAGE 14 Jennifer Gonzales, Cleveland Clinic Akron General

rain’s Cleveland Business salutes the dedication, leadership and innovative achievements of Northeast Ohio’s health care sector and the professionals and volunteers who go above and beyond to better the lives of their patients, their institutions and the communities they serve. This year’s Health Care Heroes finalists and winners will be formally recognized at the Crain’s Health Care Summit on Aug. 29 at Case Western Reserve University’s Tinkham Veale University Center.

Lynn Hoffman, University Hospitals Monica Nelson, Cleveland Clinic Akron General PUBLIC HEALTH WINNER, PAGE 15 Dr. Heidi Gullett, Case Western Reserve School of Medicine VOLUNTEER WINNERS, PAGE 16 Bob Earley, Western Reserve Hospital Kay Nagy, Cleveland Clinic Akron General iStock

FINALIST: PHYSICIAN/DENTIST

Dr. Margaret Larkins-Pettigrew

Dr. Bernard Stulberg

Community impact, equity, diversity and inclusion officer, University Hospitals; associate professor and head of global health programs, Department of Obstetrics and Gynecology and Reproductive Biology, Case Western Reserve University School of Medicine

Head of the Center for Robotic Joint Surgery in the Spine and Orthopedic Institute, St. Vincent Charity Medical Center

physicians through local and inr. Margaret Larkins-Pettigrew ternational health care collabora— University Hospitals’ comtions. As a founding member and munity impact, equity, diversity vice president of Health Educaand inclusion officer — has spent tion for Project Africa Global/Inher career working to improve the ternational Programs for Sustainhealth and well-being of those in able Solutions, Larkins-Pettigrew Northeast Ohio and beyond. has helped develop and impleFrom launching a program to ment an international health care address the needs of LGBTQIA+ curriculum for collaborating employees and patients at Uni- Larkinsschools of medicine and internaversity Hospitals to serving as a Pettigrew tional partners. driving force behind a local marShe also helps develop medical, surgical ket that addresses food insecurity, Larkins-Pettigrew seeks ways to better address and social programs for volunteer doctors, community needs and eliminate health nurses and health care professionals for medical missions in West and Southern Afcare disparities. “She’s a very outgoing personality,” Dr. rica, according to the nomination. An active volunteer health consultant to James Liu, UH’s department chair of obstetrics and gynecology, said in the nomi- many organizations, she also serves on nunation. “Obviously, it takes someone with merous professional and nonprofit organifriendly approachability. And she has a zation boards and committees. An expert in “managing care for HIV-posvery highly motivated drive to pursue her itive women and obstetric emergencies in passion.” Larkins-Pettigrew is responsible for the underresourced settings,” Larkins-Pettirecruitment, retention, mentorship and grew “has a special interest in health dispromotion of underrepresented minority parities and ensuring that women with sotrainees and faculty as the Edgar B. Jackson cioeconomic challenges have access to and Jr., M.D., Endowed Chair for Clinical Excel- receive optimal care,” according to her lence and Diversity at UH Cleveland Medi- nomination. — Lydia Coutré cal Center. She is also an associate professor and head of global health programs in the Department of Obstetrics and Gynecol- “She’s a very outgoing ogy and Reproductive Biology at Case personality. And she has Western Reserve University School of Meda very highly motivated icine. She founded W.O.N.D.O.O.R. (Women drive to pursue her and Newborns, Diversity, Outreach, Opportunity and Research), which educates passion.”

P010_CL_20190826.indd 10

suring the implant is properly poleader in the innovation of sitioned,” the nomination said. total hip and knee replace“The system also allows Dr. Stulment and revision surgeries, Dr. berg to create an exact 3D comBernard Stulberg has spent his puter model of a patient’s hip and career focused on improving paknee anatomy prior to surgery, tient outcomes, reducing pain, allowing him to develop a cusshortening recovery time, imtomized surgical plan and select proving mobility and returning the ideal implant size, fit and popatients to active, healthy lives, sition for each individual patient.” according to the nomination. Stulberg According to the nomination, Now head of the Center for Robotic Joint Surgery in the Spine and Ortho- his leadership leads to better results for papedic Institute at St. Vincent Charity Medi- tients, including shorter recovery time; a cal Center, he’s been exploring ways to faster return to an active, quality life; and utilize computer-based technologies to im- meeting patients’ expectations. “Ultimately, his goal is to not only improve orthopedic surgery since the 1980s. Recognizing that most current hip- and prove results for his own patients, but paknee-replacement failures are due to tients across the country, allowing them to technical challenges encountered during regain mobility and live an active life,” statthe procedure, Stulberg partners with ed the nomination. “His commitment to leading implant manufacturers and tech- research and innovation mark a lasting, nology companies to ensure precise positive impact for the millions of Ameriplacement of implants. He also assists cans who have joint-replacement surgery with training surgeons across the country or revision each year.” — Lydia Coutré on new technologies. Though robotic technology to assist with orthopedic surgery has existed for some “Ultimately, his goal is to time, the TSolution One (developed by not only improve results THINK Surgical Inc. in consultation with Dr. Stulberg) is unique in that it prepares for his own patients, but the joint cavity for surgery, according to the patients across the nomination. “In contrast to other ‘heptic’ robotic sys- country, allowing them to tems that simply guide the surgeon who regain mobility and live an does the cutting, this active robotic system actually completes the precise cutting, en- active life.”

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CRAIN’S HEALTH CARE HEROES FINALIST: PHYSICIAN/DENTIST

FINALIST: INNOVATION

Dr. Kevin Dieter

Dr. Stanley Hazen

Associate medical director, Hospice of the Western Reserve

Chair, Department of Cardiovascular & Metabolic Sciences, Cleveland Clinic Lerner Research Institute; professor of molecular medicine, Cleveland Clinic Lerner College of Medicine, Case Western Reserve University

r. Kevin Dieter, associate medical director at Hospice of the Western Reserve, measures success by the physical, emotional and spiritual peace his patients can achieve in their final days or weeks. Dieter provides medical care and symptom management for an average of 1,400 terminally ill Dieter patients annually at David Simpson Hospice House in Cleveland. “Dr. Dieter recognizes that pain and suffering respond best to a combination of medication and interventions provided over time, often beginning early in the terminal illness,” his nomination states. “He believes the end of life can be a time of healing, forgiveness, transformation and hope. While managing physical symptoms, he also focuses passionately on the psychological and spiritual needs of each person to support them through their sacred journey.” In addition to his work at Hospice of the Western Reserve, Dieter is a founding board member and medical director of Grace House in Akron, which provides housing for indigent, homeless and abandoned individuals at the end of life. Grace House gives individuals with terminal illness safe shelter, a nurturing environment and care with dignity and compassion, according to the nomination. He’s also active with the American Acad-

emy of Hospice and Palliative Medicine, the American Academy of Family Physicians and the NEOMED Palliative Care Advisory Group. “Dr. Dieter has not only been recognized by his peers as one of the most respected hospice and palliative medicine specialists in the country; he possesses an extraordinary level of empathy and compassion,” said Bill Finn, president and CEO of Hospice of the Western Reserve. “He is someone who truly lives and breathes the hospice mission. His wealth of knowledge and gifted teaching abilities are a blessing not only to our patients and their families, but to the young medical students he mentors.” — Lydia Coutré

“Dr. Dieter has not only been recognized by his peers as one of the most respected hospice and palliative medicine specialists in the country; he possesses an extraordinary level of empathy and compassion.”

s a practicing physician and globally recognized researcher in fields related to heart disease and other inflammatory illnesses, Dr. Stanley Hazen has made breakthroughs in atherosclerosis and inflammatory disease research that are changing today’s clinical practice. His extensive research has es- Hazen tablished a new understanding of diet/gut microbe/host interactions in diseases. His work has led to the development of new diagnostic tests and therapeutic approaches for treatment and prevention of metabolic disorders and cardiovascular diseases. And his latest research may be headed toward the creation of a new blood test for predicting strokes and heart attacks, according to his nomination. Hazen’s team discovered that after people consume animal products, including red meat and eggs, certain chemicals are broken down by bacteria in the intestines, which produces a byproduct called trimethylamine N-oxide, or TMAO. He further found, according to his nomination, that increased levels of TMAO can be a predictor of heart attacks, noting that people with chronic high levels of TMAO have double the risk of heart attack, stroke and death. “Dr. Hazen’s research has fundamentally changed the way we think about the role of diet and the microbiome in the pathogenesis of heart disease,” said Dr. Serpil Erzurum, chair of Cleveland Clinic’s Lerner

Research Institute. Hazen, who earned his B.A. and a dual M.D. and Ph.D. in biophysical chemistry and molecular biology at Washington University School of Medicine, is currently chair of the Department of Cardiovascular & Metabolic Sciences in the Cleveland Clinic Lerner Research Institute and a professor in the department of molecular medicine at Cleveland Clinic Lerner College of Medicine at Case Western Reserve University. He is active in the medical community, with memberships in several associations. In 2016, he was elected to the National Academy of Medicine, one of the most prestigious honors in medicine. He has also published more than 350 peer-reviewed articles, serves as a reviewer for more than 20 scientific journals and has received many awards for his research. — Allison Carey

“Dr. Hazen’s research has fundamentally changed the way we think about the role of diet and the microbiome in the pathogenesis of heart disease.”

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CRAIN’S CLEVELAND BUSINESS

CRAIN’S HEALTH CARE HEROES FINALIST: INNOVATION

FINALIST: INNOVATION

R. Dan Allen

Dr. Oliver Schirokauer

President, CEO and chief innovation officer, D.A. Surgical

Clinical ethicist, The MetroHealth System; assistant professor of bioethics, Case Western Reserve School of Medicine

urgical complications can lead to tragedy, so when R. Dan Allen realized that problems related to positioning during surgery could be avoided, he set out to develop safer patient positioning devices to prevent patient harm, reduce discomfort and injury, and save lives. He’s worked tirelessly for more Allen than 35 years and today is known by many as the father of modern lithotomy positioning, stemming from the global impact of the Allen Universal Stirrup, which resulted in stirrup-related injuries becoming a thing of the past, according to his nomination. His products, including one called the PatientGuard Robotics Patient Positioning System, have won first-place awards for innovation from the clinical subscribers of Surgical Products Magazine. Today, Allen is the president, CEO and chief innovation officer of D.A. Surgical located in Newbury. He earned a BFA from Kent State University and in 1976 devoted his career to studying anatomy and physiology as it relates to surgical patient posturing, pressure management and positioning. He has created Auto Suture surgical stapling devices as well as booted surgical stirrups that he developed in a garage in Newbury. Now known as the Allen Univer-

sal Stirrup, they are considered the gold standard for leg positioning during gynecology and urology exams, as well as for general surgery. The initial design or one of its many iterations can be found in almost every surgical suite in the world. Recently, Allen has also developed presentations to educate clinicians on how to reduce and even eliminate operating room- related patient positioning and pressure management injuries. According to his nomination, these presentations have been seen by thousands and have affected the care of thousands of patients. “After 35 years, Dan remains passionate about protecting patients during their time in the operating room,” said Michelle Barnauskas, marketing manager for D.A. Surgical. “He is an excellent leader both in the office and within the industry.” — Allison Carey

“After 35 years, Dan remains passionate about protecting patients during their time in the operating room.”

He was hired as a clinical ethicist t a time when many 47-year-old and given space to develop the professionals might be starting program. to consider what retirement will In his work, he ensures patients look like, Oliver Schirokauer, who understand that while he has a has an undergraduate degree from medical degree, he is not acting Yale University and a doctorate from as their doctor, will not give medthe University of California-Berkeley, left his tenured position as a ical advice or reveal test results. math professor at Oberlin College to He’s even helped patients express pursue a medical degree. their concerns and symptoms to Schirokauer That was in 2010, and he had an their doctors, discovering that his idea — a meaningful and important idea. work really is a two-way street. After taking on the complicated cancer “His patients are vulnerable members of diagnosis journey with three family mem- our community dealing with complex medibers in just a few years’ time, Schirokauer cal diagnoses,” said Dr. Akram Boutros, pressaw the challenges of tackling the over- ident and CEO of The MetroHealth System. whelming amounts of often confusing infor- “Oliver is their ‘right-hand man.’ He goes to mation. As he and his family found them- their appointments. He sits with them in the selves vulnerable and struggling even with waiting room. He calls them between visits. the benefits of a strong support system, re- His medical education allows him to transsources and education, he wondered how late information and turn confusion into comfort, uncertainty into understanding. less fortunate patients handled all of it. Schirokauer determined there was a need He fills the space between doctor and pafor a dedicated professional to partner with tient.” — Allison Carey patients and their families to help them understand the diagnosis, communicate and make decisions. Someone to be with them “His patients are from the waiting room to the doctor’s office. vulnerable members of He decided that he was the person to do it. Schirokauer enrolled in the CWRU our community dealing School of Medicine and in 2015, after a year with complex medical of residency, he shared his idea for a Medical Facilitation Program with MetroHealth. diagnoses.”

thank you Congratulations to our own Heidi Gullett, MD, MPH, and to all of the 2019 Crain’s Cleveland Business Health Care Heroes who work tirelessly to make our community a healthier place.

Learn more about how we’re training the health care heroes of the future at case.edu/IPE.

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Congratulations g atulations BOB EARLEY Crain’s Cleveland Business Health Care Hero Bob Earley is a valued member of the Western Reserve Hospital Service Excellence team, serving as a volunteer for the Cuyahoga Falls-based healthcare institution. Each day that Bob is on the job, he transforms patients and guests who arrive weary and anxious, bringing smiles and laughs to people who likely thought they were not going to smile or laugh that day. A striking aspect of his service – Bob owns and operates the highly successful Rockin’ On The River at Black River Landing in Lorain, yet he continues to dedicate himself in a committed and regular fashion to volunteering. He is also a leader among all the volunteers at Western Reserve Hospital, setting a high bar of “volunteer ethic” for others to follow - and they do so happily. A hero is, by definition, a selfless and genuinely good person who is admired for outstanding achievements and noble qualities. That’s Bob Earley. He volunteers for all the right reasons and excels wildly in doing so!

In Bob’s words… My mother was admitted to Western Reserve Hospital 8 ½ years ago. She had been there many times before and as a loving son, I had always come to visit. I had never paid much attention to her care then, as illnesses were not life-threatening or dangerous. I did know she loved the hospital, so I was content with her care. This time, her stay was going to be her last, so I spent much more time there and observed all that was happening around her. I was truly astonished by the amount of empathy and compassion shown to her by all. The care given by the doctors and nurses was fantastic. Everyone from the folks who took care of her room, to those who prepared and delivered her food, the technicians, hospice staff, administrators and dozens of other staff truly cared about their work at Western Reserve. My mom passed away in room 342, and as I was leaving the hospital, I was overcome by a desire to join this great team of folks at Western Reserve. To this day, I volunteer there as a greeter and am truly blessed to be there. Many people tell me how wonderful it is for me to do this and give back, but the truth is, I get much more joy and satisfaction from the hospital than from what I give. It’s like a redemption of sorts for my life, and I smile within every day after I volunteer and think, ‘there but for the Grace of God go I.’ I’m so proud to be just a small part of the Western Reserve Hospital team.

In its Health Care Heroes awards program, Crain’s Cleveland Business salutes the dedication, leadership and innovative achievements of Northeast Ohio’s health care community, showcasing individuals and teams making an impact on patient care, the community and the health care sector.

westernreservehospital.org

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CRAIN’S HEALTH CARE HEROES FINALIST: NURSE

FINALIST: NURSE

Monica Nelson

Jennifer Gonzales

Clinical nurse manager, Cleveland Clinic Akron General

Quality coordinator, Cleveland Clinic Akron General

onica Nelson’s commitment to her workplace and community shows. As clinical nurse manager for Cleveland Clinic Akron General, she manages caregivers for the free-standing emergency department at the Stow Health & Wellness Center. Under her management, patient satisfaction has increased, Nelson employee engagement has improved and department turnover has decreased. She continues to orient and mentor new nurses and collaborates with caregivers for community volunteer projects such as the Akron-Canton Regional Foodbank. Nelson listens to suggestions from her team and collaborates with them to make changes. Recently, caregivers suggested renewal projects to improve caregiver and patient safety. Nelson engaged senior leaders and moved forward with those improvements. Outside the hospital, she meets monthly with the Stow mayor to discuss community health care needs and is active in the Stow-Munroe Falls School District. She facilitated hand-sanitizer donations for the school community during flu season and will do so again this year. Nelson has helped coordinate an underwear and sock collection through Stow Health & Wellness Center’s emergency department. She works with Stow Youth Football to train coaches how to use an automatic external defibrillator. She also coordinates Cleveland Clinic Akron General’s role in the Stow Chamber of Commerce. She regularly volunteers at the Akron-

Canton Regional Foodbank and Habitat for Humanity and serves as captain in Akron’s annual Heart Walk. She worked with Rebuilding Together to rebuild and paint the community training center at Summit Lake in Akron. She has volunteered for the Akron Public Schools College and Career Expo, and volunteers monthly and organizes groups to assist at the Haven of Rest Ministries in Akron for community outreach. “Monica is a transformational leader who places patients and caregivers first,” said Susan Spencer, associate chief nursing officer at the hospital. “She seeks to improve herself and her department. And she partners with community members to serve others. She is well-respected by her peers and staff members.” In addition, Nelson serves as vice president of the Akron-area chapter of the Emergency Nurses Association. — Paris Wolfe

“Monica is a transformational leader who places patients and caregivers first. She seeks to improve herself and her department. And she partners with community members to serve others.”

those trips, she has worked with s a sexual assault nurse exan individual doctor, seeing paaminer (SANE) at Cleveland Clinic Akron General, Jennifer tients and assisting in the pharmaGonzales eases the pain of others cy as a last check to make sure at some of the lowest points in medications are accurate and aptheir lives. propriate. In 2017 and 2018, she “She cares deeply for the paserved as the lead triage nurse. In that role, she directed patients to tients she ministers to and the appropriate doctor, assisted demonstrates that through active with procedures, monitored and listening, providing support for Gonzales administered IV fluids, treated dethe scared and vulnerable, and comfort measures to those in distress,” said hydration and high glucose and more. Cindy Christian, director of nursing at the “While participating in these events and hospital, in Gonzales’ nomination. trips, she is very humble about her role and Gonzales’ passion for her vocation ex- the impact she makes in the lives of so tends to Rape Crisis Center events and many people,” observed Christian. “She is fundraisers, and she has worked with Save one of the most sincere, caring nurses I our Adolescents from Prostitution to in- have had the pleasure of working with.” — crease public awareness of and prevent Paris Wolfe human trafficking and to support survivors of it. She attends meetings of the Summit County Sexual Assault Coalition “She cares deeply for the to provide nursing input to the interdisciplinary team. And she works with the Pro- patients she ministers to viding Access to Healing (PATH) program and demonstrates that to provide compassionate care to victims of sexual assault, domestic violence, elder through active listening, abuse and neglect. providing support for the Beyond Summit County, Gonzales helps lead medical personnel and youth on medi- scared and vulnerable, cal missions outside the United States. She and comfort measures to has traveled to Haiti and the Dominican Republic since 2010. As a registered nurse on those in distress.”

FINALIST: NURSE

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Lynn Hoffman Senior quality improvement registered nurse, University Hospitals

“Lynn is an incredibly knowlynn Hoffman, senior quality edgeable resource on all things improvement registered nurse, about hospital quality,” her suhas been an R.N. at University Hospitals for nearly 39 years. pervisor, Beth Allen, manager of During her career, she has moved quality and risk at University Hosthrough several positions. Inpitals Ahuja Medical Center, said in her nomination. “She is the formed by that broad experience, first to volunteer to take on more Hoffman was instrumental in dework to help others. Lynn is who veloping the Quality Department everyone turns to for the latest, at UH Regional Hospitals in the Hoffman evidence-based information and 2000s. She has voluntarily rearranged her per- she has high ethical standards.” Until recently, Hoffman participated in a sonal schedule so she can arrive at work every day by 6 a.m. to prepare critical data quilt guild that made quilts for those in need. for the nursing and leadership teams’ 9 She’s had to put that on hold to help care for a.m. huddle. As the quality team’s resource aging family members. — Paris Wolfe person, Hoffman provides information to staff, physicians and advance-practice providers for all things related to patients ex- “She is the first to periencing sepsis — an extreme, life-threatvolunteer to take on ening body response to infection. Active on several committees, especially more work to help others. those dealing with patient safety and improvement, Hoffman maintains a strong de- Lynn is who everyone sire to learn new things. She is an expert in turns to for the latest, her field, exacting in her audits and data, and consultative in educating others about evidence-based compliance. She serves as a go-to person for information and she has information that the Centers for Medicare and Medicaid Services (CMS) requires. high ethical standards.”

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CRAIN’S HEALTH CARE HEROES WINNER: PUBLIC HEALTH

IS the IDEAL CHOICE

VNA of Ohio FOR HOME HEAlTHCARE

Dr. Heidi Gullett Assistant professor, Center for Community Health Integration, Case Western Reserve University School of Medicine

hrough her teaching, research and clinical work, Dr. Heidi Gullett has devoted her medical career to overcoming the inequities that affect the health of vulnerable populations. With firsthand exposure to the health and social consequences of poverty, Gullett has developed a career path focused on equity: the opportunity for everyone to reach their full poten- Gullett tial, according to the nomination. “In Dr. Gullett’s case, this commitment takes many forms: empathetic patient care and inspiring on-the-ground public and community health work; holistic medical education that attunes students to the need to identify and address social determinants of health as part of an effective health care strategy; and equity-driven, evidence-based research,” said the nomination. As an assistant professor at Case Western Reserve University School of Medicine, Gullett introduces new medical students to population health, social determinants of health, health systems and patient-centered care, including three community-based field experiences and poverty simulations that give every student a better understanding of the daily lives and challenges of patients. She also practices what she preaches, having spent most of her career working at community health centers providing family medicine and inpatient care, with an emphasis on cancer

VNA of Ohio and Ideal Home LakeHealth Ashtabula are joining forces to create Ottawa Geauga Cuyahoga a new home health powerhouse, Erie Sandusky Trumbull Lorain expanding their footprint and enhancing Portage Huron Seneca Summit Medina services in Northeast Ohio. Mahoning

prevention and women’s health services. Her research is focused on addressing poverty as a contributor to health problems. In addition, Gullett fills a variety of roles in different public health initiatives in the region, including serving as medical director for the Cuyahoga County Board of Health, chair of the HealthComp Foundation board of directors and co-chair of Health Improvement Partnership-Cuyahoga and the 2018 and 2019 Cuyahoga County Community Health Assessment and Improvement Planning process. She’s also served in advisory roles for the Ohio Department of Health, the Health Policy Institute of Ohio and the Ohio Academy of Family Physicians. “For her, conquering disease is a moral as well as a medical ideal and she bears this sentiment out in numerous ways, day in and day out,” the nomination stated. — Lydia Coutré

“For her, conquering disease is a moral as well asUntitled-43 a medical ideal and she bears this sentiment out in numerous ways, day in and day out.”

Wyandot

Ashland

Crawford

Wayne Richland

Stark

Columbiana

Learn more at www.vnaohio.org/ideal

Marion

Holmes

Morrow

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Knox

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Bernard Stulberg, M.D. Joint Replacement Surgeon

WE CONGRATULATE DR. BERNARD STULBERG FOR BEING NAMED A CRAIN’S HEALTH CARE HERO FINALIST. Devoted to helping implant patients receive the best outcome. Dr. Stulberg is a world renowned orthopedic surgeon and a leading expert in hip and knee revision and replacement surgery. The nation’s first surgeon to perform total hip and knee replacements utilizing active robotic technology, Dr. Stulberg preaches precision as his approach results in less pain and greater mobility. He chooses to practice at the Spine and Orthopedic Institute at St. Vincent where he has a world-class team to support and care for his patients. A Ministry of the Sisters of Charity Health System

CALL 440-248-1297 | SCHEDULE A CONSULTATION AT OUR SOLON OR DOWNTOWN MEDICAL CAMPUS

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CRAIN’S HEALTH CARE HEROES WINNER: VOLUNTEER

WINNER: VOLUNTEER

Kay Nagy

Bob Earley

Cleveland Clinic Akron General

Western Reserve Hospital, Cuyahoga Falls

ay Nagy has logged nearly 30,000 hours volunteering at Cleveland Clinic Akron General over the past 31 years. That averages to roughly 25 full-time weeks per year. She currently works two eight-hour days each week. If that’s not enough, she works an additional day or two at Akron General’s Justin T. Rogers Hospice Nagy Care Center in Fairlawn. Nagy, of Sharon Center, is 94 years old. “It does me no good to sit at home. I’d rather be here (at the hospital),” she said. At Akron General, Nagy’s work is broad and varied. In the volunteer office, she stuffs envelopes and processes paperwork. She also coordinates the neonatal unit’s isolette cover program, in which volunteers sew blankets to protect newborns’ eyes from the light. And she makes turbans for cancer patients as well as centerpieces for special events at the hospital. During the holiday season, Nagy decorates Akron General’s main lobby, including decking the Christmas trees and providing floral displays for the piano and information desk. Throughout the year, she helps with numerous fundraisers. When she works at the hospice care center, Nagy helps make red, white and blue blankets for veterans. She admitted that on some days, she wakes up and doesn’t feel well, and con-

siders not working. But she rarely gives in to such thoughts. “Once I get here, I always feel better right away,” she said. “What would I do sitting any home anyway?” “Kay is such an inspiration and definitely someone I want to be like when I’m 94. She’s a beacon of light,” said Erin Brady Curtis, manager of volunteer services, Cleveland Clinic Akron General. “You can be having a bad day and Kay will come and reassure you that life happens and it’s going to be OK. She’s pretty remarkable.” — Paris Wolfe

“Kay is such an inspiration and definitely someone I want to be like when I’m 94. She’s a beacon of light. You can be having a bad day and Kay will come and reassure you that life happens and it’s going to be OK. She’s pretty remarkable.”

ob Earley just may be the first person you meet at Western Reserve Hospital in Cuyahoga Falls. The former Akron radio personality volunteers there as a greeter, a role in which he welcomes people and helps them get the information or directions they need. He might even walk or wheel them to a department or to Earley visit another patient. “Always beaming a large and welcoming smile, Bob is quick to start a conversation with patients, visitors and other guests as they enter the hospital,” said Mark Bosko, vice president marketing and public affairs for the hospital, in the nomination. “His gregarious manner and larger-than-life personality immediately put people at ease.” Earley, nearly 70, is a “voice” of Akron as the former long-running, talk-radio host on Akron’s WNIR 100 FM. A business and community leader, he is well-known for his outdoor summer concert series, Rockin’ on the River, which began in Cuyahoga Falls and moved, in 2017, to Lorain. He played a key role in raising money to save the American Soap Box Derby in Akron. And he has owned businesses, restaurants and clubs. He may be busy, but volunteering is an important part of Earley’s life. He is linked to

Western Reserve Hospital by the care his mother received there before passing. “Bob saw up-close how honest empathy and a dedicated effort to consider the ‘nonclinical’ needs of a patient and their family and friends, was so important to their total experience and often, the outcomes,” said Bosko. “Each day that he is on the job, I witness him ‘transforming’ patients and guests who arrive weary and anxious, bringing smiles and laughs to people who likely thought they were not going to smile or laugh that day.” Quick to talk about volunteer work and how vital it is in the total process of delivering care, Earley encourages others to investigate doing the same. — Paris Wolfe

“Always beaming a large and welcoming smile, Bob is quick to start a conversation with patients, visitors and other guests as they enter the hospital.”

Janice G. Murphy, RN, BSN, MSN, FACHE P resident & CEO

LIGHT THE WAY

We welcome JANICE G. MURPHY as our new president & CEO of St. Vincent Charity Medical Center, where we provide care for all of God’s people.

To health and wellness for individuals, families and communities. ties.

Our Centers of Excellence:

HEALTH CARE MINISTRIES Mercy Medical Center, St. Vincent Charity Medical Center, Light of Hearts Villa,

· Spine & Orthopedics · Bariatric Surgery · Primary Care · Behavioral Health · Rosary Hall (Addiction Treatment)

Regina Health Center FOUNDATION MINISTRIES Sisters of Charity Foundation of Canton, Sisters of Charity Foundation of Cleveland, Sisters of Charity Foundation of South Carolina OUTREACH MINISTRIES Building Healthy Communities, Catholic Community Connection*, Early Childhood Resource Center, Healthy Learners, Joseph’s Home, South Carolina Center for Fathers and Families

*Joint venture with partners

We are Cleveland’s Catholic health care provider. A Ministry of the Sisters of Charity Health System

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Growth by Design

CONTENT SPONSORED BY

Missed a month? Catch up on this series at CrainsCleveland.com/TeamNEO

Next month: Creating regional opportunities through competitive sites

Driving regional growth through research TEAM NEO DATA USED TO INFORM REGIONAL, INDUSTRY AND COMPANY DECISIONS By ANNIE ZALESKI

It’s no secret that data is transforming how the business world operates, as companies increasingly look to analytics as a way to guide investment decisions. And, in the economic development world, the same holds true, with the most competitive regions using data to inform strategic plans and actions. In Northeast Ohio, Team NEO is a research powerhouse that produces tailored reports and insights from various perspectives, such as a big-picture view of the 18-county region or localized insights divided by county or sub-region. As a result of this work, Team NEO has a clear picture of what is (and isn’t) working across the regional economy, and is a go-to resource for critical information pertaining to economic growth. According to Team NEO vice president of strategy and research Jacob Duritsky, his organization is often asked to do deep-dives into speciﬁc topics in response to questions from a company or industry sector. For example, he said health care and manufacturing companies will

come to Team NEO and ask for regional industry trends over time, while international firms unfamiliar with Northeast Ohio might ask for data about the supply chain. Team NEO’s analytical and data-gathering capabilities have become more advanced as technology has evolved. Even a decade ago, when Duritsky started at the organization in an entry-level research position, “data was just far less accessible for companies,” he said. Team NEO, in response to changing regional needs, also has refined how it measures the data it gathers. Establishing a consistent set of data for the region has allowed Team NEO to create benchmarks around various economic indicators and measure progress over time. As a result of this evolution of data gathering and analysis, Team NEO is informing local conversations and impacting regional growth. More specifically, its research is used by regional partners to drive local work and strategies; by regional stakeholders to inform industry projects; and by companies looking to relocate to — or expand within — Northeast Ohio.

GIVING PARTNERS INSIGHT

HELPING AN INDUSTRY FLOURISH

INTEL FOR INTERESTED COMPANIES

Elevate Greater Akron — a collaboration between the city of Akron, Summit County and the Greater Akron Chamber — came together in 2018 to formulate a comprehensive strategic economic development plan for the Greater Akron area. “One of the key principles of the Elevate Greater Akron plan is the idea that we should build upon our existing strengths,” said Jason Dodson, Summit County chief of staff. “Team NEO’s research group has helped us develop a deeper quantitative and qualitative understanding of some of those strengths.” For instance, Team NEO provided research and data that helped Elevate Greater Akron identify Summit County’s job hubs, or places where conditions are right for companies and employees to cluster, and then develop quality marketing and promotional pieces for these hubs. This helped Greater Akron become more competitive and visible within the site selection world, both at a state and local level, Dodson said. Research from Team NEO, such as tailored labor market data, real estate information and industry-speciﬁc intelligence, also has supported Elevate Greater Akron’s ongoing business retention and expansion efforts. “They have also aided us in identifying polymer-related companies in the county, and the companies that belong to several other different market sectors,” Dodson said. “By identifying companies in this way, we can tailor our outreach and assistance efforts for businesses in different sectors of the economy.”

Team NEO’s research work often is informed by other regional experts and stakeholders. In November 2018, the organization helped to create what it called the Industrial Internet of Things (IIoT) roadmap, which was developed with contributions from universities such as Case Western Reserve University and Cleveland State University and smart manufacturing-geared corporations such as Rockwell Automation and Parker Hanniﬁn. The roadmap, which set forth Northeast Ohio’s strengths and opportunities for growth, provides a “holistic view,” said David Knowles, end user account manager at Rockwell Automation. “And it’s (of) people, processes and technology. So it’s what providers we could bring; how do we raise the level of education; what type of workforce is going to be needed.” Calling the roadmap a “beacon,” Knowles adds that since launching, Team NEO and partners have been able to help other smart manufacturers start to wrap their heads around this burgeoning technology, which will only beneﬁt the region at large. “All different sizes of organizations — from large organizations to small three-man shops — are coming to these workshops or seminars that we’ve been putting out over the year and really trying to get direction in terms of, ‘Where do I start?’” he said. “With the testimonies that we bring in, and with the guidance and direction that we’re bringing to the people that are coming, they’re getting direction.”

For companies, research about a region is crucial as they determine investment opportunities. “As companies both in the region and outside the region are looking to make investment decisions, they often need a great deal of information,” Duritsky said. “It could be everything from available employees to wages to supply chain information, pipeline coming out of colleges and universities, or information specifically about things like utilities.” In early 2018, Rayco Manufacturing, which produces innovative environmental equipment, was looking to increase the manufacturing capacity of its Wooster plant, which would require a $1.5 million investment and lead to the addition of 50 full-time jobs. Team NEO was able to give the company invaluable insights into the available labor pool. “Like many employers in Wayne County and Northeast Ohio, we were confronted with the challenge of finding the right people for the job,” said Jim Pindell, Rayco’s human resources director. “Pairing this research with both traditional and advanced recruitment tactics, we have been able to attract the talent needed to increase our production.” For Duritsky, this kind of scenario — providing relevant, specific information that’s customized for a company’s needs — aligns with one of the purposes of Team NEO. “We’re here to empower companies to make investment decisions with good and hopefully impactful data,” he said. “Certainly we always want to be as creative as possible in crafting a message and story that will help the company succeed, but we also want to be objective. We never want to provide a company with information that ultimately won’t help their business.” However, Duritsky also stresses that Team NEO should be viewed as an organization with a broader mission. “We work with companies all the time who are already doing business in Northeast Ohio who just might not know where to get the data and information from,” he said. “We truly try to be a resource to the business community of Northeast Ohio for data. We want businesses to think about us as a resource.”

CRAIN’S CONTENT STUDIO-CLEVELAND

THE VIBRANT ECONOMY Research helps businesses make smart investment decisions, and provides insights into the overall economic health of a region. However, there is no single metric or data point that can fully capture the dynamism of a place, much less all of the complex nuances that help fuel economic prosperity. Going forward, Team NEO will be regularly developing an index of variables on the region’s economic health, with the goal of understanding the components of economic growth more holistically. In doing so, we hope to provide greater insight to future opportunities for the region.

WHAT COMPANIES WANT TO KNOW ABOUT NEO Below are the top 5 most common inquiries to Team NEO from organizations looking to locate or expand in the region. How healthy is the region’s talent pipeline, and how does that impact compensation levels? Are there any gaps in the supply chain, or opportunities to source my products locally? Where are the region’s transportation and infrastructure assets? What impact does the business climate in Northeast Ohio have on a firm’s bottom line? In what ways can the region’s emerging industries and technologies be leveraged?

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GRANT

CONTINUED FROM PAGE 1

Kendeda’s goal is ambitious in helping the nonprofits transition local companies from private ownership to employee ownership as worker cooperatives. It expects the grant money to help enable more than 100 business transitions, and for those transitions to serve as a model for others across the country. Evergreen in November 2018 launched The Fund for Employee Ownership, which is designed to acquire businesses and convert them to employee ownership. It aims to buy companies from retiring owners at fair market value to ensure that jobs remain in the community and to give employees the opportunity to share in their company’s success. Publications including Fast Company, Next City and Nonprofit Quarterly highlighted the Evergreen fund as a model for advancing employee ownership. Diane Ives, the Kendeda adviser overseeing the grants, said in an interview that the fund believes “the democratic force of employee ownership” is “worthy of deeper investment” as a way of building wealth in communities that have lacked economic vitality. There are an estimated 450 worker cooperatives in the United States and Puerto Rico, employing a total of about 6,700 work-

BUILDINGS CONTINUED FROM PAGE 1

Moreover, that’s with 1.2 million square feet of such buildings completed so far this year, double last year’s pace. (Overall availability in the region’s total industrial market — a much larger figure with Northeast Ohio’s manufacturing legacy — climbed to 5.6% in the middle of this year from 5.5% at the same time last year.)

CRAIN’S CLEVELAND BUSINESS

ers, she said. She explained that Kendeda in 2017 started exploring the process of making transformative grants to advance employee ownership, and in 2018 it invited the four nonprofits to submit proposals. That process culminates this week with the formal announcement of the grants, for which Kendeda said it has three goals: making communities “more vibrant by retaining more businesses and expanding local ownership”; improving job quality and confronting the “racial wealth gap that has long divided American communities and inhibited economic growth”; and to “inspire the philanthropic and impact investment communities to see democratic employee ownership as a necessary — and profitable — strategy for business growth.” With Kendeda’s support, Evergreen’s fund will focus on companies in manufacturing and service industries. John McMicken, CEO of Evergreen, said in an interview that there are more than 250 employee-owners, earning above-market wages, at Evergreen’s three core businesses: an industrial laundry, an urban greenhouse and an energy-efficiency contractor. (Evergreen was launched in 2008 with capital from major Cleveland institutions, including the Cleveland Foundation, Cleveland Clinic and Case Western Reserve University.) Andrew Batson, JLL’s Cleveland-based Great Lakes research director, said that much speculative space hitting the market will test the depth of the market. Some big buildings that are finishing up this year have not yet nailed down tenants. At the largest structure built so far in this cycle, Westminster Capital of Chicago is completing a speculative building with 400,000 square feet in Oakwood Village. Meantime, construction workers

Cleveland’s Evergreen Cooperative Corp. runs three core businesses: an industrial laundry, an urban greenhouse and an energy-efficiency contractor. (Evergreen Cooperative)

The fund created last year aims to pick up the pace of creating employee co-ops in Cleveland. McMicken said it’s structured to use a model called “acquire, convert and support” — basically buying stable, profitable small and midsize businesses from retiring business owners; converting to employee ownership, giving existing employees a stake in the profits; and then supporting the businesses through Evergreen Business Services, a stand-alone, for-profit company.

Over the past year, McMicken said, Evergreen has looked at about 25 Cleveland businesses for potential conversion to employee ownership. It has six “very, very active deals in the pipeline” and is in the due diligence phase with two, he said. About half, though, were rejected because they weren’t a good fit. The employee co-op model “isn’t a silver bullet, but it’s a commercially viable option in the right situation,” McMicken said. Companies that are in poor shape financially, or lack a

hired by Weston Inc., the Warrensville Heightsbased real estate ownership and development concern, are about to pave the parking lot at its first warehouse at 10615 Madison Ave. That’s a nearly 169,000-square-foot building that towers over short- Brehmer er commercial buildings and old industrial structures nearby. Weston also built a 130,000-squarefoot building on Jet Center Drive in Willoughby. Still more projects, such as Levelan’s, are creating a big pipeline for the future. A CoStar analysis and Crain’s Cleveland Business reporting found another nine buildings from Stow to Middleburg Heights are in the proposal stage, totaling about 2 million square feet of space that won’t hit the market for more than a year.

A big reason for the runup in speculative development is that over the past five years developers have found takers for space before new buildings were finished. For example, last month at a 145,000-square-foot building that Fogg Corporate Properties is finishing up at Euclid’s Bluestone Business Park, Cleveland-based Consolidated Precision Products, a maker of parts for helicopters and other aerospace uses, swooped in to lease the entire building. CPP plans to open an operation there in January. Ray Fogg Jr., president of Fogg, said contractors will pour the concrete floor of another 150,000-square-foot building at Bluestone in the last week of August. “Usually (interest) does not seem that strong before people are able to

LAND FOR SALE: Beacon West, Westlake

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strong business plan, won’t be helped simply by a change in structure. But for companies that are on solid financial footing and face an ownership turnover, he said, the employee co-op model can be a “powerful force” for building wealth in the community. The Harvard Business Review last August ran a piece by three advocates for worker-owned companies indicating that there are three trends driving growth potential for such businesses: “First, renewed interest in ensuring the economic viability of local communities suggests that baby boomer owners about to retire are increasingly likely to want to sell to workers. Second, evidence is mounting that worker- and employee-owned enterprises outperform their competitors, especially during economic downturns. ... Third, as a result of strong performances by worker- and employee-owned companies, it is becoming easier for workers to overcome arguably the biggest hurdle to worker buyouts: financing.” McMicken said the Kendeda funding is powerful for Evergreen because in feeding loan capital to bolster the pace of ownership transitions, the money essentially becomes a revolving loan fund that makes additional deals possible. “It should have this powerful multiplier effect” in Cleveland, McMicken said. kick the tires. When we pour the floor, that’s usually when we start seeing serious prospects,” Fogg said. The story has been much the same at Cornerstone Business Park in Twinsburg, which Scannell Properties of Indianapolis has constructed on the former site of the Chrysler stamping plant. Scannell now has 180,000 square feet of space coming online in a new building there. It’s also putting in the road and foundation for the first new building at a warehouse complex in Bedford Heights on the site of the former Mr. Coffee factory. Based on recent activity levels, Brehmer and others are betting that spaces will get filled before they open the doors to their projects. Terry Coyne, vice chairman and head of Newmark Knight Frank’s industrial unit in Cleveland, said the impact of the proposed projects will be muted by the way they are spread throughout the region. “It’s not like 2007, when the market turned and there were two buildings nearly facing each other in Oakwood Village that had about 400,000 square feet each to fill,” Coyne said. He pointed out that Weston has no direct competition at its new building on Cleveland’s West Side. “In the main, in the Cleveland region, there’s a market west of I-77 and another one on the East Side,” Coyne said, and cases of switching sides of town are rare. JLL’s Batson worries about larger factors altering the direction of the market, such as a change in business confidence due to recession worries and the tariff war. Fogg, who has a more than 230,000-square-footer going up near Seasons Road in Stow, acknowledges the market is more competitive than it has been. That is when, he said, elements such as the strength of a project’s location count. He said he sees no slowing of demand. The other factor is when buildings are finished — and leased. “I won’t be worried until vacancy gets up to 8%,” said Tim Elam, a Scannell managing director who oversees its projects here.

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AKRON

In downtown real estate, it’s about class

New report shows vacancy rates falling, but Class A space is outperforming the rest, and the gap is widening By Dan Shingler dshingler@crain.com @DanShingler

Vacancy rates continue to fall for office space in downtown Akron’s major buildings, but Class A space is outperforming the rest of the market by a wider and wider margin, according to a new report from the real estate firm JLL. The firm’s Northeast Ohio office in Cleveland recently expanded its quarterly report on Akron’s real estate market to a “Skyline Report,” as it does for Cleveland, showing how individual buildings are faring in terms of occupied and vacant space. The report itself is another small feather in Akron’s real estate cap, as the city has drawn the attention of more firms recently, including Col-

liers, which opened an office in the Akron area this year with five brokers. “Traditionally, we’ve only done this report for Cleveland. But given the growth occurring in and around the Akron central business district, we felt now was the time to create an Akron version,” said JLL spokeswoman Kristen Tomins Gragg. What JLL found, according to its researchers and brokers, is a city in which the major buildings are doing fairly well in terms of lowering their vacancies but with evidence of more demand for high-end space with amenities like those now being developed downtown. In what might appear counterintuitive, it almost seems as if the lower the price on a space, the less folks want to lease it. Of the 13 buildings JLL looked at,

the two most expensive — the AES Building and Main Place, each with rents of $21 per square foot — also had the lowest vacancy rates at 10% each. Meanwhile, the two buildings with the most vacancy — buildings in the Canal Place complex with vacancy rates of 36% and 52% — had the cheapest rents at $16.50 per square foot. That’s a result of employers using real estate in their never-ending battle to attract and retain top talent, especially younger workers who choose to live downtown because of the perceived amenities, said JLL senior vice president Warren Blazy III. “Right now, the biggest decision that is driving companies on real estate is how it ties in and aligns with their workforce,” Blazy said. “It’s the most competitive labor market our clients have seen in 20 years, and the

ability to recruit that workforce is extremely important to the long-term success of these companies. Tenants are going to go to new space and take a higher amenities package that their employees want.” That’s also what’s driving the difference in performance between Class A office space, which has an average vacancy rate of 12% in downtown Akron, and Class B space and its vacancy rate of just more than 30%, JLL’s research found. The overall vacancy rate for downtown was about 21%, the firm reported. But all of those numbers are trending downward; Class A is just leading the way. In 2017, the overall vacancy rate downtown was about 27%, according to JLL, with Class A space 20% vacant and Class B space 36%.

Part of the difference in performance might also be explained by rent prices. Class B space lessors have raised their rates since 2017, from about $13 per square foot to over $16. Class A space has continued to be offered at around $21 per square foot, JLL reported. Akron is small enough that a single large tenant can affect the numbers, and Blazy said the report saw an impact from things like Quanex Building Products expanding in the AES Building from 40,000 square feet of space to 60,000 square feet earlier this year. Likewise, Blazy said JLL expects space to open up in the AES Building when Geometry Global, formerly Malone Advertising, completes its move into new offices in Cleveland this year. SEE CLASS, PAGE 21

Entrepreneur zeros in on waste-free products By Karen Farkas clbfreelancer@crain.com

Teresa Mazey is on a mission: to convince Northeast Ohioans that they need to adopt a zero-waste lifestyle by replacing single-use plastic, paper and other products with reusable items. Mazey recently opened Empty Bin Zero Waste, which she thinks is the first store in Ohio to only sell sustainable products, including those for cleaning, food and personal care. “The only way to stay in this world is homesteading,” she said. “Walmart will not save us.” Mazey, 43, of Akron, a former long-distance and local truck driver, readily admits her life once included lots of plastic and other waste. But now she is a passionate advo-

P020_CL_20190826.indd 20

cate for sustainability. The epiphany occurred about four years ago, when she learned her husband’s aunt made her own detergent. Mazey researched home and health care products and began making her own, too. By late 2016, she was seeking products to replace plastic bags, straws and other items. When she couldn’t find products made of sustainable fabrics, she decided to create her own. She began sewing items, including bags from repurposed fabric for produce and menstrual pads from organic cotton. The next step in her quest to preserve the environment was to introduce others to the value of sustainability. So she decided to set up a stand at farmers markets. At the time, she was working in the office of Aeration Septic Inc. in Canal Fulton.

Teresa Mazey opened Empty Bin Zero Waste in Canton after taking her zero-waste products to local farmers markets. (Shane Wynn for Crain’s)

“My boss there was inspirational and encouraged me to start my own business,” Mazey said. She formed Empty Bin LLC in August 2017. Mazey, who has been a vegetarian since high school, stopped wearing makeup and purchased organic clothing, including T-shirts and hemp pants. Her boss, who was active in women’s business groups, introduced her to Norma Rist, an Akron business consultant and coach. “She’s the real deal,” Rist said of Mazey. “I talked to her about basic things, such as needing working capital, stocking enough inventory and making the products known regionally and nationally. She had worked in an office, so she had business experience. She loves to educate and to solve problems.” SEE WASTE, PAGE 21

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CLASSIFIEDS

CLASS

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Overall, JLL thinks the downtown market is doing well and likely to improve. That optimism is driven by a growing downtown population of residents and new mixed-use projects under construction, such as the Bowery Project and the Law Building. “The Bowery Project is such a huge deal. We really see growth ahead in the coming years, so we wanted to create a report to show that,” said JLL research analyst Johnathan Miller. There will still be challenges, however, including big older buildings such as PNC Center and the Huntington National Bank Tower. The 233,000-square-foot PNC building has a vacancy rate of 41%, and JLL said data on the Huntington Tower has been blacked out while the bank seeks to sell the building and then lease back the space it needs. Jerry Fiume, managing director of SVN|Summit Commercial Real Estate Group in Akron, predicted the PNC building will be the biggest challenge, but like others he said much depends on how downtown

“The Bowery Project is such a huge deal.” — Johnathan Miller, JLL research analyst

Akron develops in general. “There’s a drop in vacancy, but there is still a tremendous amount of space yet to be absorbed,” Fiume said in an email. “That is why you are seeing a number of office buildings downtown being repurposed.” Fiume added that Akron, like the rest of Northeast Ohio, still has an uphill climb when it comes to competing with places like the Southeast or the western U.S. for population growth. Downtown Akron still lacks the demand seen in some of its suburbs, too, he said. But Akron is right to focus on population growth to shore up commercial real estate downtown. “At the end of the day, it is a weak office market downtown as compared to the west side of town (Montrose/Fairlawn area),” Fiume said. “Mayor (Dan) Horrigan is correct. We need an influx of people in our area. We need this if we are truly going to shift the supply-and-demand curve in the marketplace.”

To place your listing in Crain’s Cleveland Classifieds, contact Suzanne Janik at 313-446-0455 or email sjanik@crain.com

WASTE

CONTINUED FROM PAGE 20

Mazey’s first farmers market, on a wet and cold April day in 2018, netted $8 in sales — and cost $15 to rent the space. But Mazey, who had quit her job to focus on the business, was undeterred even though her husband, Darrick, was skeptical people would embrace her vision, which he totally supported. “I thought it would fail miserably,” he said. But she persevered. This year, she has the staff and tents to attend two farmers markets at a time and storage units in Akron and Peninsula to hold her stock. She also rents space in the Northside Marketplace in Akron and Alley Cats Marketplace in New Philadelphia. She registered the trade name Empty Bin Zero Waste in February and developed a website. While she always wanted to open a store, she didn’t think that would occur for years. But while at her booth in the downtown Canton Flea this spring, she learned a bookstore had closed on Fourth Street NW, which has a number of small shops. She signed a year’s lease for $420 a month. She and her husband painted

MANAGING YOUR PORTFOLIO THROUGH TODAY’S WALL OF WORRY

Empty Bin Zero Waste in Canton sells items, such as metal straws, to replace single-use plastic and paper products. (Shane Wynn for Crain’s)

the interior and installed lighting, along with used shelves and cabinets. The store opened Aug. 1. “My caution (to her) for retail was to make sure to have enough working capital to pay the rent and utilities and build out the store,” Rist said. “She found a perfect location that fit her budget.” Mazey’s store has a large number of products, including bulk liquids that people can put in smaller containers. “I think it’s really cute,” shopper Carolyn Hawkins of Wadsworth said as she chose steel straws, cloth straw holders, a brush to clean the straws,

flannel handkerchiefs and toilet paper, which she placed in her burlap shopping bag. “It has a lot more products than I expected.” Rist said she often purchases items from Mazey, including cloths that can be reused instead of using paper towels, and gives them as gifts. Rist is convinced Mazey will succeed. “I have no doubt she can have the growth she chooses to have in the niche area,” Rist said. “I think she will build traffic. You have to really respect her: She’s not in it to make a million dollars. She is in it to change the world.”

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DIACON

CONTINUED FROM PAGE 1

Or take the College of Aeronautics and Engineering, where Kent State has brought on a new dean, Christina Bloebaum, and launched new programs. Enrollment and funded research in the new programs, like mechatronics, are growing, Diacon noted. As for his second goal, Diacon said he wants Kent State to continue to explore “the life of the mind.” He means that literally, through the university’s relatively young Brain Health Research Institute, but also through its strong programs in the arts. The Fashion School is an example of one of the arts-focused programs at which the university excels, but it

CRAIN’S CLEVELAND BUSINESS

The committee wanted to see a commitment to the “students first” approach Kent State takes, along with a history of good working relationships with faculty. It also wanted someone who could serve as a “visionary,” but who didn’t feel a need to change parts of the university that were already working well. also serves as an example of Diacon’s third goal. Most universities don’t have programs in fashion or flight, but Kent State does. Or take its master’s of library and information science, the only such program in the state accredited by the American Library Association.

Those are areas that differentiate Kent State. When the search committee was looking for the university’s next leader, it identified a set of characteristics and qualities it wanted to see, said Shawn M. Riley, vice chair of Kent State’s board of trustees and president

of the law firm McDonald Hopkins. The committee wanted to see a commitment to the “students first” approach Kent State takes, along with a history of good working relationships with faculty, Riley said. It also wanted someone who could serve as a “visionary,” but who didn’t

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feel a need to change parts of the university that were already working well. Diacon stood out, checking all those boxes easily. He had already demonstrated his commitment to the students-first approach as provost and had worked to build a strong university-faculty relationship, Riley said. Diacon had also helped shape the university’s current strategic plan. One of the programs he started as provost focuses on helping former students return to Kent State to finish their degrees. The program reaches out to former students who have earned 90 or more credits but never graduated. So far, more than 300 students have earned their degrees through this program. Relatedly, Diacon said he’s “exceptionally proud” of the strides Kent State has made in improving its graduation rates in recent years. Since 2000, Kent State has more than doubled the four-year graduation rate at its Kent campus. According to information provided by the university, the four-year graduation rate for the class that started as freshmen in the fall of 2000 was 21.1%. In the years since Diacon was on campus, the four-year graduation rate grew from 37.2% for the class starting in fall 2012 to 47.3% for the cohort that began in fall 2014. While Diacon’s been at KSU, much of the work around improving graduation rates has focused on messaging — communicating to students how many credits they need to take each semester to graduate on time — and on reviewing the policies and procedures that affect students’ paths to graduation. For example, the university reviewed its catalogs and calendars to make sure they were clear for students. That kind of detailed, student-focused work has been common while Diacon was provost and manifested in a variety of ways. For example, as the university worked to become more efficient in areas like printing costs, it directed the savings created to need-based aid. Diacon has taken that hands-on approach beyond the borders of the campus, applying it to the university’s relationship with the city. Kent State benefits from a “great town-gown relationship” with the city of Kent, Diacon said, adding that he looks forward to continuing to build that partnership as president. He and Kent city manager Dave Ruller meet monthly to informally touch base and discuss how to better work together. Ruller has seen four administrations at Kent State. The relationship between the university and the city has been strong throughout all of them, but it’s gained momentum in terms of collaboration over the years, he said. That was critical to the city’s muchlauded downtown transformation, but it’s also been a key factor in lots of smaller improvement projects. Work was recently completed on a traffic-safety improvement project on Summit Street, which Ruller called the “side door” to Kent State. The road now features roundabouts and improved pedestrian crossings. A successful town-gown relationship depends on the details, Ruller said. For example, Kent State has worked with the city to promote better rental properties and encourage students to be good neighbors while they’re living in the city. “When you’re a small city with a big university, the better you get along and the better you’re partnering, the better your community is doing,” Ruller said.

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CRAIN’S CLEVELAND BUSINESS

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SOURCE LUNCH

Adam Schmith Director of culinary arts, Lorain County Community College Adam Schmith grew up in the Cleveland area and “fell in love with food at a young age,” he said. He spent much of his career training with European chefs and working in country clubs, hotels and restaurants. That work led him to consulting and to sales and then, to Lorain County Community College, where he was asked to observe a class. ¶ “From there, it turned from a part-time to a full-time position, where I actually get to give back now,” Schmith said. ¶ The culinary industry needs highly trained people, Schmith said, and his job helps fill that need. Graduates have gone on to do everything from starting their own catering companies to doing food science at Vitamix to working at eateries like Lola and 1833 Restaurant. ¶ This conversation has been edited for clarity and length. — Rachel Abbey McCafferty

The Schmith file What he makes at home He likes to grill — or call out for Chinese.

Who started him on cooking His grandfather

Full circle Schmith’s son likes cooking with him.

His son’s choice for the grill? Steak

Where he spends his free time Outdoors, in the fresh air

Lunch spot 1833 Restaurant 10 E. College St., Oberlin 440-775-7001

The meal One had the forest mushroom melt with water, and one opted for the butter lettuce salad with salmon, alongside iced tea.

The vibe 1833 is part of The Hotel at Oberlin, but it doesn’t feel like a hotel dining spot. It’s bright, open and modern, with a varied menu.

The bill $26.69, plus tip

You mentioned there’s a big need for this training right now. Why is that? There is a huge need for skilled help. The industry is ever-changing, and so it’s a very easy thing for people to walk in off the street or the school of hard knocks and start as a dishwasher, maybe go into salads. But it takes a real passion for the industry to really perform at a high level all the time. There are a bunch of different levels of skill sets that the industry calls for. Not everybody’s going to be an executive chef. But there’s a place for everybody, whether it’s in a prep situation or a cafeteria or a nice restaurant. You can teach the skills — what are some of the personality traits you think students need as they’re coming into the program? One, they need to listen. We have what’s called a brigade. In a French classical kitchen, there would be an executive chef, an executive sous chef, so we teach them that it’s teamwork. It’s not just one person. Everybody has a role and everybody has to come together at the end of it to make it happen. We ask them to be patient. We ask them to listen. We ask them to constantly challenge their own skill sets. We always tell them to watch what’s happening on all sides of you, including the back. So you almost have to grow eyes with your ears and really focus on what you’re doing, and do it well, and keep your ears open. Because there’s a lot of communication that happens in a kitchen.

When did you introduce the Sage & Seed name for the college’s restaurant? Sage & Seed was introduced two years ago. It was a hit from the start. We originally opened the restaurant with somewhat of a prix fixe meal. You’d have four courses and this was all you could get. It was one price. And they had about 25 cooks in the kitchen and 18 servers to serve 40 people a day. And we really felt that wasn’t what we were looking to do. So I took an eight-week course and I spanned it over 16 weeks. I split the crews up, and we were really able to get them a little bit better of a stress test. We got rid of the prix fixe menu and we made it a restaurant. So you could order an appetizer, all desserts were made in house, we had 15 entrees at one point. And, of course, we learned. We trimmed it down a little bit. But the restaurant went from having 25 dine-ins a night to 40 to 60 to 80. What is it about the business that you love? I love what I do now because each day is different. Each day gives me something different that is built upon the day before. When I was in the kitchens and running the restaurants, I loved the challenge of the rush of a meal period, or getting through situations that normally seem insurmountable, and you get through it with ease and teamwork. There’s something about duplicating mass amounts of food, very well executed, at a high level, and watching the people eat it. The expression when they get it in their mouth, when they’re like, “Wow, this is worth being here.”

That was a huge satisfaction for me. And just the diversity of what you can do. There’s just so much still out there that I haven’t done, which is why I tell my students, “You’re going to learn something every day.” It’s all about the technique and the skills, and then the door’s wide open for you. It sounds like you like the art of it, too. I love it. It’s an individual craft. It’s one of the things I really focus on at the college, is the plating of the food. They eat with their eyes first. What happens to the food the students prepare? What we do is, food that’s prepared in the class, we want them to eat it. We want them to try it. Let’s say that we break down a ribeye and we get 15 or 20 cuts of that, they’ll learn packaging procedures. They’ll package it. Maybe they’ll airtight-seal them for another class. Maybe they’ll go into the restaurant production. If it doesn’t go into restaurant production, we have a community food drive. It’s called Commodore Cupboard. What we’ll do is we will take the food, we’ll package it, we’ll label the ingredients on it, and that will go into individual meals for people that need some assistance with food. And we’ll send that over and there’s a space on campus where they come by. We may take a day where we’ll send food over to a certain division for lunch, things like that. But we make sure that everything gets utilized. If we’re in production on something one day, there’s probably a class that will utilize it and take it to another level the next day.

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THE WEEK Time to get busy

covering from a stroke he suffered in late May. Jay Farner, CEO of Quicken Loans, said in a statement, “We are extremely thankful for all of the skilled medical professionals who have played a significant role in Dan’s recovery and are glad to have him back home.” Since Gilbert was hospitalized in May and suffered a stroke at Beaumont Hospital in Royal Oak, Mich., executives in his family of companies have stressed that operations have been running smoothly during his extended absence.

With 2,000 full-time jobs to fill, Amazon said it’s beginning to hire workers for its new fulfillment center in Euclid. The company’s hiring plans have doubled since it first announced plans for the site of the former Euclid Square Mall in 2017, as it then said it would hire 1,000 people. The new complex is south of I-90 between East 260th Street and Babbitt Road. Amazon did not disclose when the 650,000-square-foot distribution center will open.

Welcome aboard

Detroit homecoming Quicken Loans Inc. founder and Cleveland Cavaliers owner Dan Gilbert returned home to metro Detroit after spending more than eight weeks in a Chicago rehabilitation facility re-

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The Amazon smile will soon hang over another fulfillment center in Northeast Ohio. The company is starting to fill 2,000 jobs for its new facility in Euclid. Above is the North Randall fulfillment center’s main entrance. (Stan Bullard)

The Greater Cleveland Regional Transit Authority board of trustees unanimously approved the contract for the agency’s new general manager and CEO. On Thursday, Sept. 12, India Birdsong officially will become

the first female CEO in the RTA’s history. Birdsong is leaving the position of chief operating officer at WeGo Public Transit in Nashville, Tenn. Before that, she spent nine years with the Chicago Transit Authority. Birdsong will take over the position from interim CEO Floun’say R. Caver.

Peak performer Polymer materials provider PolyOne Corp. of Avon Lake agreed to sell its Performance Products and Solutions (PP&S) business to New Yorkbased private investment firm SK Capital Partners for $775 million. PolyOne said it expects to record a pre-tax gain of about $600 million when the sale is completed in the fourth quarter of this year. PP&S has annual sales of about $700 million. PolyOne posted revenue of $3.5 billion in 2018.

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