In today’s fast-paced world of business, it is critical to make choices and execute on decisions quickly to remain competitive. However, at some point, innovation has to be a part of the plan or the result is a very well built, highly engineered . . . typewriter. Whether it is new products or other difficult business problems, a structured approach to problem solving is superior to a reliance on the incremental decisions approach often used to identify day-to-day operational improvements. If you are in a situation where simple solutions are not going to suffice, it is time to consider more creative approaches to problem solving.

Smart Business spoke with Karen Schuele, Ph.D., professor of accountancy and dean of the Boler School of Business, and David Jarus, Ph.D., adjunct professor, both at John Carroll University, about true creative problems solving and its role in business.

What is creative problem solving?

Creative problem solving is a well-established, structured process used when unique or innovative solutions are necessary. There are many versions of the process, but all include the following steps: 

  • Identify the goal, wish or challenge.

  • Gather data.

  • Clarify the problem.

  • Generate ideas.

  • Select and strengthen solutions.

  • Plan for action.

The process dates back to Alex Osborn, who coined the term ‘brainstorming’ as a method of generating ideas. Creative problem solving, however, is more expansive than a group sitting around a table ‘coming up with ideas.’ It is structured to drive real solutions for planning and execution. Each phase includes a divergent step, stretching participants to identify what may be possible, followed by a convergent step, narrowing down possibilities.

Why is creative problem solving useful?

Understanding the goal and gathering the known facts are important first steps to ensure that the idea generation stage is grounded in and aligned with the actual business objectives of the company. The next step, clarifying the problem, is often overlooked. The many ways the problem could be viewed or addressed is in itself a creative exercise. It is only after these stages that idea generation — however wild or creative — can occur around solutions that are anchored to the core problem and can achieve the actual business goals.

How do the divergent and convergent steps work?

A critical aspect of good creative problem solving is keeping the divergent and convergent phases of the process distinct. The divergent phase requires the participants to suspend judgment and allow for wild and unusual ideas and concepts. The fastest way to shut down creativity is to kill an idea during the divergent phase.

The convergent phase, or critical thinking phase, is where you narrow down your choices to those on which you will take action. Critical thinking is a highly valued skill in business leaders, but one that must be held in check until the convergent phase of creative problem solving. Thinking critically too early can get in the way of good creative solutions.

What are key things leaders can do to encourage creative problem solving?

A good facilitator is always recommended, but a business leader can take steps to help his or her team be more creative in their solutions. First and foremost, don’t converge on a solution too quickly in front of your teams. Once the boss has weighed in on what he or she believes is the best solution — or the most important facts, or the most clarified problem to work on — few participants will stick their necks out and offer additional ideas, especially the really creative solutions that are not part of the mainstream of your business today. Second, if the problem is really difficult and there is great value to gain from a solution, allow the team the time to work through the process. If it is an easy fix, you wouldn’t need a creative solution and incremental approaches would work fine.

Karen Schuele, Ph.D., is professor of accountancy and dean of the Boler School of Business at John Carroll University. Reach her at (216) 397-4391 or

David Jarus, Ph.D., is an adjunct professor in the MBA program at the Boler School of Business at John Carroll University. Reach him at

Insights Executive Education is brought to you by John Carroll University

Published in Cleveland

If your organization is using social networking sites to search for potential job candidates, it is not alone. Social networking sites have become an increasingly popular recruitment and screening tool because of the ease and efficiency they allow for finding new talent. However, in the absence of an existing evidence-based model for using social networking sites, organizations must find a way to balance the risks and rewards as research catches up to practice.

Recent surveys tell us that LinkedIn is the most frequently used social networking site for recruiting and screening potential candidates. Perhaps this is because LinkedIn was developed for professional networking purposes and offers the most structure and consistency in what and how potential candidate information is presented. The challenge, however, is that depending on the job, both relevant and non-relevant information can be found on LinkedIn.

Smart Business spoke with Rosanna F. Miguel, Ph.D., SPHR, an assistant professor of Human Resource Management in the Department of Management, Marketing and Logistics in the Boler School of Business at John Carroll University, about the effective use of social media for hiring.

How are organizations using social networking sites to reap the most rewards?

Many organizations are using social networking sites to search for passive candidates who possess a specific skill set, which may be difficult to find. For example, an organization may be interested in finding bilingual candidates with leadership skills, or candidates with a background in health care and management. Other uses include looking for active job seekers, posting job information, or participating in discussions to spur interest in the organization and increase employer brand. Most often, organizations seek out individuals to fill salaried mid- to upper-level management or director positions.

What guidelines should organizations follow to minimize legal risks?

The structure and consistency offered by LinkedIn is a substantial advantage over sites such as Facebook and Twitter that do not allow for a highly disciplined approach to the use of available information. Structure and consistency lead to higher validity and help ensure organizations are meeting the professional and legal guidelines that have been in place since the 1964 Civil Rights Act.

While the use of social networking sites for screening purposes is relatively new, the potential pitfalls associated with this approach are not. The guidelines that apply to the use of the standard resume and application blank, for example, apply to the use of social networking sites. In fact, LinkedIn has been described as a new version of the traditional application blank. Problems arise when organizations use LinkedIn or other social networking sites haphazardly, without a formal policy or concern for professional and legal guidelines. Most importantly, organizations must ensure the use of job relevant information about potential candidates by focusing their search on the requirements of the job based on a recent job analysis. Information that may discriminate against protected groups or that is not job relevant must be avoided (e.g., photographs, age, personal information, etc.).

How can the use of social networking sites positively and negatively affect an organization’s pool of potential candidates?

Organizations are looking to social networking sites to expand the population of high potential candidates, particularly when organizations demand a specific skill set that may be in high demand by employers. Some of the most talented individuals can be found on social networking sites, and their identities are just a few clicks away. However, research tells us that social networking sites do not adequately represent the true population of potential candidates. That is, fewer Hispanics and African-Americans use social networking sites. This means that relying exclusively on social networking sites to search for potential candidates is not effective for increasing employee diversity and ensuring that minorities have a fair chance of being selected. This puts organizations at risk for discrimination lawsuits. Organizations can avoid this potential pitfall by including other methods to source candidates, such as job boards, job fairs and magazines. More specifically, methods that have a higher chance of targeting minority groups can be selected to widen the demographic representation of potential candidates.

Why should organizations create social networking policies to screen job candidates?

Surveys suggest that more than half of all organizations using social networking sites to screen job candidates do not have a formal policy for doing so and do not intend to create one in the near future. If one of the goals is to ensure social networking sites are used according to professional and legal guidelines in a consistent and fair manner that leads to the identification of job relevant information, a policy to describe those guidelines to the users of social networking sites is a must. An EEOC or OFCCP audit should not come as a surprise to organizations; organizations must be prepared to support their recruitment and selection procedures in advance of a potential discrimination lawsuit, regardless of whether that procedure involves social networking sites or not.

Rosanna F. Miguel, Ph.D., SPHR, is an assistant professor of Human Resource Management in the Department of Management, Marketing, and Logistics in the Boler School of Business at John Carroll University. Reach her at

Insights Executive Education is brought to you by John Carroll University

Published in Cleveland

Developing and retaining talent is one of the most pressing challenges for middle-market companies. Estimates suggest that comprehensive training programs are the second most costly human resource initiative, costing U.S. companies $150 billion in 2012. A key problem for midsize firms with limited resources is how to advance employees quickly and efficiently when development programs appear to require a sizable time and money investment.

“In today’s complex, dynamic and fast-paced work environment, where most learning is occurring informally, traditional formal training and development initiatives alone are insufficient for developing employees,” says Alison M. Dachner, assistant professor of management in the Department of Management, Marketing and Logistics in the Boler School of Business at John Carroll University.

Employees are expected to be resourceful and creative when finding information and problem solving on their own. To successfully maximize human capital development, organizations must leverage informal, self-guided development behaviors with formal training and development initiatives.

“The informality of these practices rebukes the need for an expensive learning and development infrastructure, and instead places more attention on managers’ ability to create a supportive work environment,” she says.

Smart Business spoke with Dachner to learn more about self-guided development (SGD) and its affect on talent management.

What is SGD and why is it important?

SGD refers to proactive employee behaviors that are developmental in nature, such as the decision to voluntarily engage in self-identified development experiences. More specifically, SGD represents an actionable set of knowledge-, skill- or relationship-building activities that improve human capital, but are unstructured, voluntary and not operationally or administratively provided by the organization.

SGD can be carried out during work time or non-work time. Some examples include asking for feedback, reflecting on one’s strengths and weaknesses, taking on challenging tasks, watching a webinar and networking with influential people in the organization.

What SGD behaviors do employees engage in the most?

Employees tend to find information, learn and develop skills relevant to work the most from relationships and reflection. Employees most frequently depend on their colleagues and supervisors when they need answers to work-related questions. More specifically, the three behaviors that are used to the greatest extent when employees need to find information, learn and develop skills are:

  • Collaborating with coworkers.

  • Interacting with a supervisor.

  • Talking with others. 

Employees also frequently develop themselves internally through introspection by reflecting on their strengths and weaknesses, and considering ways to improve their work. This learning is retrospective and is likely focused on analyzing critical incidents or salient workplace events judged by the employee to require development.

How can organizations facilitate employee engagement in SGD?

Organizations can influence employee involvement in these proactive development behaviors by hiring the right people and promoting the right conditions for SGD.

First, hire and cultivate employees who are proactive, motivated, curious, social and dedicated. Employees should be primed to seize the initiative, eager to volunteer for fresh projects and try on new roles, and willing to accept responsibility for their own advancement. They should be naturally curious and should be comfortable around other people.

Second, acknowledge SGD behaviors as part of the job. Organizations can design work roles that are supportive of SGD by providing employees the opportunity to try different methods for conducting work and to learn from experimentation. Further, employees should be encouraged not just to seek help and advice but also to provide it.

Third, maximize interaction. The adoption of self-managing teams, open workspaces and cross-functional training can create fertile ground for interaction in many organizations. Companies should give teams autonomy to solicit resources and expertise from around the organization. Companies should also build into the workday more opportunities for employees to network with one another. Even giving people a few minutes to converse before rushing back to their desks after the weekly all-hands meeting can help.

Fourth, make time for reflection. To facilitate the use of more introspective SGD, organizations can encourage employees to reflect on their accomplishments, career direction, strengths and weaknesses, and performance. Companies may even consider using goal-setting initiatives as a way to encourage personal reflection as a method of proactive development. 

Alison M. Dachner is an assistant professor of management in the Department of Management, Marketing and Logistics in the Boler School of Business at John Carroll University. Reach her at

Insights Executive Education is brought to you by John Carroll University

Published in Cleveland

The financial crisis of 2008 led to the “meltdown” that brought on “the Great Recession.” Faced with immediate economic failure, large businesses were bailed out by the government, with the justification that they were Too Big To Fail (TBTF) — Because these businesses were so large and integrated into the rest of the economy, their demise was predicted to have a catastrophic effect.

This policy approach is a potential threat to free market capitalism, and therefore one that businesses must make sure they do not count on in the future.

Smart Business spoke with Walter Simmons, Ph.D., professor of economics and chair of the Department of Economics and Finance at the Boler School of Business at John Carroll University about the dangers of TBTF.

Why is TBTF a bad practice for society?

Government should not be in the business of selecting which businesses succeed; the market does a much more efficient job and avoids an outcome in which profits are privatized and loses are shared by taxpayers.

The inherent instability of the free market is the very catalyst of its survival and sustainability. Business cycles are an innate feature of the market and provide the dynamism and motivation for individuals and firms to innovate and invent. Those pursuing their own self-interest behave in a socially responsible manner in competitive markets, and thus outcomes are determined by competition and not by government selection. The free market encourages resources to be used in the most efficient manner, creating a situation in which no one may be made better off without anyone being made worse off. 

Why is TBTF a bad policy for big businesses?

The expectation that a firm should not be allowed to fail because it is very large and embedded in society creates a moral hazard and weakens market discipline. If companies and their affiliates believe that the government will bail them out from losses, they have less incentive to monitor risk because they are protected from the negative consequences. Thus, businesses that benefit from TBTF policies may be tempted to exploit their advantage and engage in high-risk behavior because they are able to leverage the risk against the governmental protection. 

Why has free market capitalism succeeded while socialism has failed?

Big, inefficient governments; bureaucracies that maintained a bloated system built on pseudo-patriotism and subsidized welfare; and the limitations and subversion of rights led to the disintegration of socialism. Of course, the free market is not perfect and is subject to situations of market failure, but it is generally believed to be the best economic game we have in town. Even communist countries such as China realized and have adopted it on their path to economic growth and prosperity.

Why is TBTF a threat to free market capitalism?

Economic stability is not an enduring characteristic of the free market. And the life of a company in a capitalist economy is one of struggle. Any competitive advantage is relatively short lived. Companies must adapt or die. Barnes and Noble and Netflix have succeeded while Borders and Blockbuster have failed.

The difficulty with a ‘bailouts’ approach is that one can only learn whether a firm’s failure would tend to be disruptive if it is allowed to fail. Once a firm has been rescued, there is no way of knowing how disruptive its failure would have been.

What does the future hold?

The government had no explicit policy to rescue TBTF entities and it only became an issue for policy makers after the financial crisis. Systemic risk mitigation polices, such as the Dodd-Frank Act, limited the size and scope of activities of financial institutions that were already in place. They recognized the desire to avoid potential or moral hazard issues. This implies that ultimately it is the responsibility of companies to manage the inherent risk within the free enterprise system. Companies should have a strategy to benchmark their ability to take risk. In general, for the free market to allocate resources efficiently, companies must be financially rewarded for making good use of resources and, although they may not like it, punished when they do not.

Walter Simmons, Ph.D., is a professor of economics and chair of the Department of Economics and Finance at the Boler School of Business at John Carroll University. Reach him at (216) 397-4659 or

Insights Executive Education is brought to you by John Carroll University

Published in Cleveland

Many Northeast Ohio companies receive raw materials or components from European suppliers, or ship their finished products to European customers. The cargo is transported by truck or rail to New York or Baltimore, and then loaded onto ocean-going ships bound for Europe — a longstanding logistical process for Midwestern businesses. However, this route is also expensive, slow and has lengthy delays, especially at the Port of New York.

An innovative concept is being developed to solve these problems. Small, Seaway-sized ships could be loaded at the Port of Cleveland, located next to FirstEnergy Stadium. The Spliethoff ocean carriers then begin a dedicated round trip to Antwerp, Belgium. Dubbed the Cleveland-Europe Express, its service is scheduled to begin in April 2014.

Smart Business spoke with Bradley Hull Ph.D., Associate professor and Reid Chair, Department of Management Marketing and Logistics, John Carroll University, who together with the Dutch Consul laid the groundwork for this project, to learn more about this project and what it could mean for local businesses.

What are the business advantages of the Cleveland-Europe Express? 

The advantages are the savings that could be realized in time and money. The Cleveland-Europe Express takes four to five fewer days to make the trip to Europe than the existing route. This makes the Cleveland-Europe Express ideal for Just In Time manufacturers or anyone needing quick deliveries.

Money can also be saved using the new route because water is inherently the least costly form of transportation. The existing route incurs excessive costs from the unnecessary and expensive overland transport to the East Coast, double handling at the East Coast port, expensive ocean carrier rates to Europe, and lost time due to East Coast congestion. The Cleveland-Europe Express is all-water and as such avoids many of these problems and costs.

Companies also gain more control over their cargo since this method relies on fewer people handling the products. Businesses are no longer dependent on long distance overland transportation and handlers in New York. This means companies face less risk of loss or damage.

The service will run on a reliable fixed schedule. Initially, the service will run once per month to Europe. As business grows, the service could become bi-monthly or weekly.

What could the establishment of the Cleveland-Europe Express mean to Northeast Ohio? 

Companies contributing to the success of the Cleveland-Europe Express help create jobs in Northeast Ohio. Ports are ‘engines of job creation.’ As business at the Port increases, the downtown area becomes a more attractive location for distribution centers and manufacturers that would benefit from prime transportation access. If successful, the Cleveland-Europe Express could contribute to the revitalization of downtown Cleveland and ultimately Northeast Ohio.

How was the Cleveland-Europe Express developed? 

For the past eight years there has been a strong feeling that such a service could be economically viable. John Carroll University and the Dutch Consul have conducted analyses, held four Seaway conferences, partnered with Erasmus University of Rotterdam to get a European perspective of the project’s practicability, given numerous presentations to local and regional groups, and organized a trade mission to the Netherlands was held this past summer. There is much excitement building for the potential of this shipping route to revitalize Northeast Ohio and increase the viability of Northeast Ohio companies.

Bradley Hull Ph.D., Associate professor and Reid Chair, Department of Management Marketing and Logistics, John Carroll University. Reach him at (216) 397-4182 or

Insights Executive Education is brought to you by John Carroll University

Published in Cleveland

No company is immune to fraud. You may have stringent internal controls, and rigorous hiring and training programs, but still employees may find ways to violate standards.

“It is not enough to have a strong personal ethical code. It needs to be communicated and enforced to become corporate culture,” says Mariah Webinger, Ph.D., an assistant professor of accountancy at John Carroll University. “When it comes to enforcement, you need to proceed cautiously to make sure you are achieving your goals.”

Smart Business spoke with Webinger about dealing with employee fraud.

What should you do if you suspect an employee of fraud?

First, sit down, take a deep breath and think. It is never a good idea to confront a suspected employee right away. You probably don’t have the evidence you need to prove either innocence or guilt. Confronting the employee puts them on guard and makes it even less likely you can get that evidence. 

Secondly, you could be wrong. Accusing a suspected employee can be very demoralizing to your workforce and creates an atmosphere of suspicion, forcing bystanders to choose sides.

Third, you never want to interview a suspect when you are emotional. Acting on emotion rarely makes good business sense, so give yourself a break to cool down before you make any decisions.

Finally, communicate the issue and the consequence internally, and perhaps to external stakeholders. When you do, try to stick to the facts and avoid value statements about the employee or the situation.

Does the type of employee misconduct affect consequences and communication?

All types of employee misconduct should be handled thoughtfully and not emotionally. However, the type of conduct will influence the consequence, which in turn will influence how it is communicated. If it is a minor policy infringement, it may be acceptable to have a reprimand as a consequence and an internal memo for communication.

Embezzlement or fraud should result in termination, regardless of size, since these violations are willful and never accidental. Also, fraud indicates an internal control weakness. These weaknesses need to be rectified and should be communicated.

Should a fraud perpetrator ever be retained as an employee?

The short answer is ‘no.’ Usually two reasons are given for wanting to retain an employee after a fraud: The fraud was a small amount or the person is a great employee. All frauds start small.  Keeping a dishonest employee on the payroll sends a message to your other employees that fraud is acceptable as long as it is small or if you are a valuable employee. No employee is as irreplaceable as your corporate culture. If they are a good person and a talented employee they will have a great career elsewhere. The consequences of violating an ethical code might be the most important business lesson they will ever learn.

When should you pursue legal action?

Collect your evidence first. Law enforcement is usually overworked and generally not an expert in business. It is unlikely that they will pursue something unless there is a very tight case.

When do you need to hire a forensic investigator?

Generally your current employees will be more efficient at collecting evidence than an external expert because they are more familiar with your company. However, if the issue is contentious or involves office politics, it is helpful to have an independent investigation.

Also, that the fraud was perpetrated suggests there is a weakness in the internal skill set. Usually fraud involves accounting and/or information technology. If you don’t have internal experts in those fields, try to hire a forensic investigator with that expertise.

Where can you find a forensic investigator?

Avoid the yellow pages. It is hard to differentiate between a good forensic investigator and an imposter. Ask your auditor or accountant. They may not be able to do the work for you because of independence issue, but they can usually refer you to someone who can. Also ask your attorney. Most likely they have worked with forensic accountants or business experts and can recommend someone. If all you have is a Web search or the phone book, ask for references and check them.

Mariah Webinger, Ph.D. is an assistant professor of accountancy at John Carroll University. Reach her at (216) 397-4225 or

Insights Executive Education is brought to you by John Carroll University

Published in Cleveland

One of the toughest challenges facing managers is how to plan for profitable growth in an uncertain future. 

Look back ten years at your customers and their needs, your employees, market structures, delivery systems, regulatory policies, social systems, the economy and technology, and it’s clear how much things have changed. It’s a safe bet that at least that much change can be expected in the next ten years, but what kind of change will occur?

Compounding the uncertainty is the necessity to keep managing current activities for efficiency and growth while planning for a future that may call for different activities altogether.

Smart Business spoke with Dr. Jaume Franquesa, visiting assistant professor of strategic management, and Dr. James Martin, associate dean and professor of marketing, both at the Boler School of Business at John Carroll University, about ways businesses can position themselves to take advantage of tomorrow’s opportunities.

How do you get started?

Success in the long run is all about marshaling the right capabilities and resources and using them to create sustainable competitive advantage for the future.  Start by identifying and assessing your current capabilities. Generally, there are two categories of capabilities that allow you to do both the day-to-day activities and plan for an uncertain future. 

The first category is operational capabilities, which are the things you currently do that give you a competitive advantage in your current markets. That is, the skills, competencies and resources that you use to try to satisfy your current customers’ needs better than competitors or at a lesser comparative cost, leading to higher profit. 

The second category is dynamic capabilities, which are the capabilities that will help you to plan for the future. There are generally three types of dynamic capabilities.

The first is the ability to do environmental scanning and sensing. Being able to identify and track trends, and understand how they might be important to your business is a critical competency to develop.

The second dynamic capability is being able to turn the trends that you identified as important to your business into opportunities that can be pursued further. Innovative thinking is the cornerstone of this capability.

The third dynamic capability is being able to quickly re-configure your internal resource base in a way that creates a sustained competitive advantage for pursuing the opportunity. Understanding which resources are valuable, along with adaptive resilience and flexibility in your organization are key ingredients for this capability.

The stronger you are at each of the dynamic capabilities, the better your strategy and its implementation.

How can a manager foster adaptation and flexibility with regard to long term strategic direction?

As you think longer term, the uncertainties about investments in strategic direction can cause significant anxiety. This is really tough, but it is at the heart of building an organization for the future.

One useful approach to navigate this uncertainty is to apply ‘real options’ logic to investments for the future. Instead of making early choices under uncertainty and committing significant resources to a particular strategic direction, consider engaging in multiple directions that will keep several windows of opportunity open. In this way, you can delay commitment to any of them until more information is available and some of the uncertainty is resolved.

To do this, you must design the program of investment in each strategic initiative as a series of sequential experiments, with a continue/discontinue evaluation point at the end of each experiment. That is to say, at the end of the period you have the option of continuing to invest as planned, narrowing the scope of the project, or abandoning the project.

The goal is to create and manage a portfolio of alternative strategic options. You do this by investing in multiple stage-gated projects designed to seed the development of new capabilities or to explore potential new markets. The keys to the management of this portfolio of strategic options are:

  • Project selection.
  • Design of investment stages in a way that maximizes learning while minimizing the cost of each strategic option.
  • Portfolio diversification. 

The dynamic capabilities that you develop give you the foundation for creating this portfolio of
strategic options.

Dr. James Martin is an associate dean, professor of marketing at the Boler School of Business at John Carroll University. Reach him at

Dr. Jaume Franquesa is a visiting assistant professor of strategic management at the Boler School of Business at John Carroll University. Reach him at

Insights Executive Education is brought to you by John Carroll University

Published in Cleveland

Are you “results-oriented?” Do you have a “proven track record?” Would you consider yourself a “problem solver?” According to LinkedIn, these are some of the most overused buzzwords on profiles across the popular professional social network.

A problem in today’s saturated marketplace is finding your unique place as a professional. Whether you are a self-employed entrepreneur or an executive at a large corporation, you are in charge of your own career. A successful brand relies on its unique positioning in the marketplace. Likewise, a successful businessperson must understand the importance of crafting a personal brand. Your unique identity sets you apart from the competition and contributes to the overall success of your company, says Jenna Drenten, Ph.D., assistant professor of marketing, Department of Management, Marketing and Logistics, Boler School of Business, John Carroll University.

“We choose one product over another because it offers something special. The same is true for today’s professionals,” says Drenten. “In today’s competitive marketplace, business professionals must perfect the art of what I call personal branding — developing a unique personal brand and actively promoting that brand to others.  Personal branding is not only beneficial for your own career, it also benefits your company’s brand image.” 

Smart Business spoke with Drenten about the importance of branding yourself and key strategies for managing a successful personal brand.

What does it mean to brand yourself?

Branding yourself means to develop a unique professional identity and coherent message that sets you apart from others either in your company or in your industry. If you are a CEO or an entrepreneur, you may say, ‘I have enough on my plate by building and managing my company’s brand, much less my own.’ But branding yourself is just as important, if not more so. Think of business leaders like Steve Jobs and Oprah Winfrey. Their personal brand images are synonymous with their companies.  Regardless of your career status, you must commit to being the brand manager of your own personal brand.

What is your unique selling proposition?

In branding yourself, the goal is to differentiation from others but consistently within your message. What specific characteristics and field-related expertise do you have that others may not? Try to develop a personal positioning statement. It should be a concise, one- to two-sentence statement that reflects your unique value as a business professional. Consider creating a short tagline for yourself that captures who you are and what sets you apart.

What is your personal brand management strategy?

Once you have pinpointed your unique brand, you need to communicate it to others.  Your goal is to actively promote and manage your personal brand. Branding yourself involves creating a unified message across all outlets. Consistency is crucial, especially in today’s digital age. If someone were to search your name on the Web today, what would they find? Take control of your online brand image by creating a personal website outlining your achievements or by starting a blog that allows you to share your distinct industry-related ideas. Your personal brand management strategy should be proactive and should reflect your natural capabilities. For instance, if you excel at face-to-face communication, attend networking events and schedule coffee meetings. 

How does branding yourself benefit your company?

In marketing, a phenomenon called the ‘halo effect’ suggests consumers make more favorable judgments of a particular product because of positive biases toward associated brands or people. For instance, consumers are biased toward brands endorsed by their favorite celebrities. The same is true for personal branding. If you develop a unique personal brand, your company gets included in the positive halo of your success. The connections that you make and the network that you develop can be transferred to your company.

How does branding yourself benefit your career?

You are the product and your employer is the customer. Branding yourself allows you to market your skills to meet the customer’s needs. Regardless of the stage at which you are in your career, it is important to stay marketable by creating a unique brand for yourself, separate from your identity within your company. This gives you more opportunities for mobility both within and outside of your organization. As your personal brand awareness increases, you may be invited to speak at industry events, contribute to industry related stories, and so on not because of your status within a company, but because of your branded expertise within the wider industry.

Jenna Drenten, Ph.D., is an assistant professor of Marketing in the Department of Management, Marketing, and Logistics in the Boler School of Business at John Carroll University. Reach her at

Published in Cleveland

Any business that leases anything for an extended period of time — generally, more than one year — will be impacted by a proposed new accounting standard.

“This may appear arcane to some, but the new rules will have a major impact on the reported financial position of many companies. It has been estimated that this may add hundreds of billions of dollars to the existing liabilities on businesses’ balance sheets nationwide,” says Gerald Weinstein, Ph.D., CPA, a professor and chair of the Department of Accountancy at the John Carroll University John and Mary Jo Boler School of Business.

“Therefore, it is likely that your firm’s financial statements will be affected. At a minimum, expect to see changes in the ways in which leases are being conceived of for recognition and measurement purposes,” says Weinstein.

Smart Business spoke with Weinstein about what the proposed accounting standard would do and how businesses can prepare for the change.

What do you need to know?

Under existing Generally Accepted Accounting Principles (GAAP), leases that are in essence purchases of all of the inherent value of a leased asset are capitalized. Capitalization requires both that the leased asset and related liability for future lease payments be recorded onto the balance sheet. GAAP dictates use of four indicators, any one of which is considered evidence of a so-called capital lease.

Leases that do not meet at least one of the four criteria are operating leases, and are not capitalized. Operating leases are accounted for by expensing the lease payments as they accrue. An example is leasing an office inside an office building owned by another entity.

An operating lease is generally favored by businesses, as it makes the accounting simple in that it avoids recording the liability and depreciating the underlying asset. Further, not booking a liability can improve a company's debt related ratios. Users, however, would prefer to know about all liabilities the entity has and hence want these liabilities booked. These cross-purposes are being resolved in the proposed standard by essentially requiring all leases to be capitalized.

What will the new standard change?

What defines a lease as a capital lease is changing under an exposure draft (ED) issued jointly by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) on May 16, 2013, and the four indicators noted above will no longer apply. Everyone will be affected if this becomes a final standard in 2014.

All leases, with one exception, would be recognized with a lease liability for the present value of the payments, which must be made over the lease term. As lease payments are made, the effective interest method is to be used to accrete the liability. An asset would be reported and written off to expense over time.

The ED defines the manner of write-off. It depends on the type of asset of which two are defined. A Type A asset is personal property whereas Type B is generally real property. Type A assets are amortized on a straight-line basis unless another method better represents the pattern of use. For Type B leases, the amortization would be the difference between the annual straight-line expense and the interest incurred on the liability.

The most notable change in terms of the direct financial impact is that what has previously been accounted for as an operating lease will now be treated as if it were an owned asset, even if title to the asset will never transfer to the lessee. An office suite leased inside an office building would be accounted for as a balance sheet asset and subject to annual amortization.

What is the exception?

Lessees can elect a policy wherein leases with a maximum possible lease term including options to renew of 12 months or less, are accounted for using a method like that currently available for an operating lease.

How is a leased office akin to an asset purchase?

Leases are being redefined as a contract that conveys the right to use an asset for a period of time in exchange for consideration. The contract must depend on the use of an identified asset and convey the right to control its use. The use of the asset can be either explicit or implicit, such as the lease of a floor of a building. ‘Right to control use’ is slightly different from existing GAAP, which calls it the ‘right to use’ an asset. 

Why should you care about recording such a lease as an asset?

Companies should be concerned because booking the asset also means booking the liability. For most businesses, this will have a negative impact on solvency ratios, including debt to assets and debt to equity. This change in the standards could cause your bank loans that have covenants requiring certain solvency ratios to go into technical default.

What can you do to be ready?

Companies should determine which leases they have that will now need to be capitalized, prepare pro forma financials, and determine the impact your solvency ratios. If the new accounting rules cause your debt ratios to deteriorate, consider contacting your lending institution to see if you can re-negotiate the covenants.

While the final standard may undergo some tweaking, changes to lease accounting have been in the works since 2005 and professional accountants expect the standard to be finalized in its current form. The comment deadline on the ED is Sept. 13, 2013.

Gerald Weinstein, Ph.D., CPA, is a professor and chair of the Department of Accountancy at the John Carroll University John and Mary Jo Boler School of Business. Reach him at (216) 397-4609 or

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Without question, entrepreneurship is the hottest thing going today. Rarely will you pick up a paper or magazine that does not either feature a fabulously successful entrepreneur or talk about some of the literally hundreds of programs or courses being offered to help you become that entrepreneur.

But, what is it really? In part the interest is a reaction to today’s younger generation – 75 percent of high school seniors do not want to work for a large organization. This is a reaction to the re-engineering of American business that has taken place during the past 20 years. These young people have seen the impact on their immediate families and they want to do something that will afford them more control of their lives.

Educational institutions, ever mindful of changing demographics, have jumped on the band wagon. The Internet revolution and the many successful IPOs of Web-based entrepreneurial firms have heightened the visibility of entrepreneurship. There is an increasing interest in entrepreneurship among the general population, but particularly among younger adults. As a result, colleges with formal Entrepreneurship centers have grown from a handful in 1990 to more than 200 today.

Smart Business spoke with Mark Hauserman, director of The Muldoon Center for Entrepreneurship, about common myths about entrepreneurship and what traits are common in successful entrepreneurs.

Are entrepreneurs necessarily young men and women?

You may be surprised to learn that a recent Kauffman Foundation research study revealed that the average age of the founders of technology companies in the U.S. is a surprisingly high 39 — with twice as many over age 50 as under age 25. With the average life span increasing and more ‘necessity entrepreneurs,’ those who start businesses because of the scarcity of job availability at existing companies, being created every day, this number will probably increase.

When you gain experience, you probably know a lot about a lot of things. If youth is the answer, why are so many venture capitalists over 50? And most of the better ones are over 60. Don’t short change your experience. Investors get a lot more comfortable if they know you have been around the block a couple of times.

How is entrepreneurship learned?

The best start for an entrepreneur is to gain experience. This often means working for a company that may not have the biggest buildings on the block, but has an entrepreneurial attitude and will challenge you to spread your wings and continually take on new tasks.

While all jobs consist of ‘things you must do,’ the better businesses are also continually looking for better ways to serve their customers and markets. Every business owner responds to ideas that will make the company more money. You may not think you are an important cog, but the owner will sit up and take notice when you offer better solutions to the existing business strategy.

Don’t be afraid to make mistakes. I have heard Edward Crawford, Chairman of Park Ohio and self-made entrepreneur, say that the common denominator in entrepreneurship is failure. Not every idea you have will be a winner, but people will respect you if you get up after being knocked down and get back in the game.

The younger entrepreneurs get it. A healthy 44 percent of young entrepreneurs feel that business failure is perceived as a learning opportunity.

How will you know when you have arrived?

In most cases, there was no ‘grand plan.’ The entrepreneur just started working and as they solved more and more problems, work became fun. The classic sign of an entrepreneur is they cannot let it go. Unlike the idea in the popular culture that they are looking for the big score, they love what they do.

I played golf with a guy a couple of years ago who had just been offered $8 million in cash for his company. I am afraid I jinxed the deal when I asked him what he was going to do in a month after a long vacation and a shopping spree; no answer and ultimately no deal. He was only 42 at the time, so he will eventually sell, but it was way early and he was having too much fun.

Mark Hauserman is director of The Muldoon Center for Entrepreneurship. Reach him at (216) 397-4572 or

To learn more about the Muldoon Center and our programs, visit:

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