An exclusive partnership between Huntington Bank and Cleveland State University will bring new customers to the bank — and $1.2 million to CSU for scholarships and academic programming over a 10-year period.
“It is hugely significant for Huntington in that we partnered with one of the most important institutions in Cleveland,” says Dan Walsh, Huntington Bank Greater Cleveland Region president. “I think it underscores our commitment to the community.
“This extraordinary university contributes significantly to the vibrancy and economy of our city.”
CSU will receive $50,000 in scholarships, a minimum of three paid Huntington internships per year and $250,000 to support the university’s Allen Theatre Project, the “Power of Three.” In addition, the bank will work with CSU to develop a financial literacy program for students in order to help build a financial foundation in their lives.
Huntington hopes to target incoming freshmen as well as the 90,000 CSU alumni.
“We are very bullish on the growth going forward,” Walsh says. “And we will continue to grow our relationship. We are very excited about this going beyond the next 10 years.
“Huntington will be tracking those alumni who open accounts so we can monitor our deal with Cleveland State. We can give extra credit if we see this threshold of new customers or profitability.”
Huntington, with its launch of branches in Giant Eagle grocery stores, has the largest branch network of Cleveland banks. A full-service branch is now open on the CSU campus, and a new Huntington Bank Vikings debit card will be issued to customers.
CSU President Ronald Berkman welcomed the relationship, which was finalized after a competitive bidding-type process to become “The Official Bank of Cleveland State University.”
“The scholarships and internships Huntington will provide will be invaluable to many of our students,” Berkman says.
If you had any doubt about the recession being in the rearview mirror, consider this tidbit from the ERC/Smart Business Workplace Practices Survey. In the last 14 years, only two years — 2009 and 2010 — have returned results with Northeast Ohio companies reporting the poor economy as their toughest challenge. For the 11th year, companies in 2013 are reporting that their biggest challenge has been hiring and retaining talent.
The survey, which has been a collaborative effort between ERC and Smart Business since 2001, is aimed to let you know what companies in Northeast Ohio are doing to drive their businesses forward.
This year in particular showed an overwhelming amount of companies, 49.5 percent, listing hiring and retaining talent as their No. 1 challenge.
The other concern many Northeast Ohio workplaces have includes health care costs and the uncertainty of the Affordable Care Act (ACA). The good news is that a mere 5 percent of companies named economic conditions as the toughest challenge.
“Hiring continues to be strong,” says SueAnn Naso, president of Staffing Solutions Enterprises. “We see more and more companies adding recruiting talent, and it’s getting much more competitive to find those people, which is a good sign.”
Companies in Northeast Ohio are ramping up their recruiting efforts with 84.2 percent utilizing Internet job boards, and 50 percent utilizing social media to recruit talent.
“On the hiring side, you see a lot more LinkedIn activity,” says Lauren Rudman, president of the Cleveland Society for Human Resource Management (SHRM). “LinkedIn is still the No. 1 way to go, but I’ve also seen job opportunities pop up on Twitter and Facebook.
“Word of mouth is still a great way to go if your company has a referral program. Between social media, specifically LinkedIn, and word of mouth, those are still the No. 1 and No. 2 ways that work for recruiters and talent acquisition teams.”
While companies are finding ways to recruit more talent, they are also very focused on retaining that top talent once they have it.
“We’ve seen a continued emphasis on things like workplace flexibility and investing in training and development as ways to retain employees,” Naso says. “They’re focusing on keeping their turnover numbers as low as possible.”
According to the survey, 77.7 percent of companies provide financial assistance to employees to upgrade their skills through advanced education or job-related training. In addition, 28.6 percent offer a mentoring program.
“Training and development is a big one, especially for some of the millennials (Generation Y),” Naso says. “They really are focused on learning and growing, so I’ve seen a lot more hiring of people that do training and development, creating leadership training programs and having a leadership track so these young professionals see a career path and aren’t looking outside the company for growth.”
Today, there are more training and development programs than there were in the recent past and there are a couple of things that factor into that.
“One is the economy,” Rudman says. “Unfortunately, when things go bad, training and development is the first thing to get cut. As the economy continues to get better, those will either come back into play or grow.
“Another big part of it, too, is Generation Y in the workplace. Generation Y wants development, training and to know how they’re doing. Companies need to recognize that in order to retain top talent they have to provide these resources like mentoring, coaching and development opportunities because they want it more than some of the generations in the past.”
According to the companies that responded to the survey, roughly 75 hours of training are provided to new-hires in their first 90 days. Another way more companies are incentivizing employees to stay at their current company is through workplace flexibility.
“That has been a huge trend,” Naso says. “There has been a study that mentioned that about 78 percent of U.S. workers are looking at workplace flexibility as a primary reason why they’re either staying where they’re at or making a move. That is as important to them as compensation.”
According to the 2013 survey, 44.3 percent of companies in Northeast Ohio are offering flextime, 14.8 percent are offering compressed workweeks, 17.2 percent offer telecommuting and 32 percent offer a work-from-home option.
“It’s interesting because workplace flexibility tends to be something a little different to each person,” Naso says. “We’re seeing companies trying to put things in place that provide a variety of options for employees. It depends on the type of job or their focus and how they can create that flexibility.”
While hiring and retaining employees remains the top challenge, the upcoming ACA and its pending changes to health care costs have companies anxious about what the result will be.
“One trend we are seeing that was published recently in one of the staffing industry magazines is that temporary staffing jobs hit a record high in May as companies are trying to lighten the burden of the whole Obamacare regulation,” Naso says. “Instead of adding staff, they are using contingent labor to manage some of that.”
In fact, according to the survey, the average percentage of the workforce that was temporary of the companies polled was 3.6 percent, the highest since 2006. The percentage of contingent workers in 2013 was 8.6 percent.
“In preparation (for the ACA), a lot of companies are attending conferences and meetings,” Naso says. “However, I haven’t seen any hard and fast actions yet. I haven’t seen companies that have actually reduced their part-time staff from 35 hours to 28 hours or anything like that. They’re all in that wait and see mode.”
Due to the uncertainty of the ACA, a lot of employers and companies are being proactive.
“We’re seeing companies bringing in wellness coaches, reimbursing employees for gym memberships and bringing healthy food into their organizations via vending machines or fresh produce stands,” Rudman says.
“Biometric screening is another big one. You see a lot of those efforts happening, which down the road can hopefully impact and decline health care costs for those companies, as well as employee’s out-of-pocket costs.”
The biggest decision looming for companies is whether they will “play” or “pay” with the ACA.
“Pay means that the company is not going to offer health care and they will pay the penalty, which is $2,000 per employee, and then those employees will be a part of the health care exchange that the government is offering,” Naso says.
“Play means a company will provide a health insurance plan that meets all the new government standards. Even companies that currently offer insurance could be affected because their current plan may not meet those requirements anymore.”
One of the requirements is that health care doesn’t cost an employee more than 9.5 percent of their salary. There is also a minimum coverage.
“Companies that currently have a plan could have increased expense because they may have to pay more of the premium or increase the amount of coverage, which increases the cost of the premium,” she says. “At the moment I have heard that more companies are going to play than pay. But it’s still a huge unknown.”
Despite what may result from the ACA, there is no doubt that companies in Northeast Ohio are once again flourishing and waving goodbye to the recession. Smart Business thanks ERC and those companies that participated in this year’s Workplace Practices Survey.
Workplace practices and policies ranging from innovative flexible work arrangements to the debate over the Affordable Care Act (ACA) were topics of this year’s ERC/Smart Business Workplace Practices Survey. Watching the discussions around these events unfold serves to reinforce the fact that the decisions we make as employers have the ability to significantly impact the well-being of both our individual employees and our organizations.
Now in its 14th year, the 2013 survey collaboration between ERC and Smart Business aims to shed light onto how employers in the region are effectively applying these practices, enhancing their workplaces and ensuring that they retain their top performers and attract new talent in the region.
So, whether you are pursuing the latest innovative trend or simply looking to meet the basic needs of your workforce, you are likely doing so for largely the same reason as the vast majority of other organizations in the area — to overcome the challenge of attracting and retaining the best and brightest employees here in Northeast Ohio.
Below are a few hot topics from this year’s survey. Also included are a few suggestions about how each can be used to help attract and retain top talent at your organization.
Organizations are increasingly expressing concerns about health care costs with 42.6 percent of manufacturers and 28 percent of non-manufacturers reporting that they are “unsure” whether they will “‘pay” or “play” when the new ACA regulations take effect.
Two-thirds of organizations are choosing to “play” and will continue to offer health insurance to their employees. With many unknowns still on the horizon, try to understand the drivers of these costs for your business and explore new ways to manage them in the long-term. Investing in wellness initiatives helps manage costs and still allows you to provide the benefits that are most important to your workforce.
Creating a physically safe work environment starts with putting specific policies on the books that will keep employees safe on a day-to-day basis. We’ve been fortunate to see very low rates of violence in the workplace in recent years among participating organizations, 77.5 percent of which prohibit firearms and other weapons. But safety isn’t always as cut-and-dry as having a policy in your handbook.
While violence has declined, incidents of bullying have actually risen to a high point of 19 percent in 2013. Creating an environment that encourages employees to speak out if they experience or see inappropriate behaviors can be challenging, but results in a healthier, safer workplace.
Respondents are making this popular concept into more than just a catchphrase. This year, flexible work arrangements rose to 68.9 percent — the highest level seen in the past 13 years. While we understand not every job is conducive to off-site work arrangements like telecommuting or work-from-home, even manufacturing organizations have some options. In fact, manufacturers in this year’s survey allow their employees some degree of flexibility with 34 percent allowing part-time schedules and 36.2 percent granting flextime.
While social media use is seeing growth on the whole, the most prominent role it plays in organizations is in recruitment strategies. Half of respondents report using some type of social media tool for recruiting. But this year organizations made it abundantly clear that not all social media tools are created equally.
When it comes to finding the right employees, organizations appear to be taking their recruiting responsibilities more seriously, with 90.9 percent sticking to professional networking sites like LinkedIn. Facebook ranked second with only half that number of users at 45.5 percent.
Sincerest thanks to this year’s survey participants and to Smart Business magazine for 14 years of survey collaboration. In addition, we would like to acknowledge the NorthCoast 99 winners over the past 15 years
(www.northcoast99.org) who also demonstrate excellence in the attraction and retention of top talent.
Pat Perry is president of ERC, Northeast Ohio’s largest organization dedicated to human resources and workplace programs, practices, training and consulting. Reach him at (440) 684-9700 or pperry@yourERC.com. For more information, visit www.ercnet.org.
As the business partner who remained in the office, leading the company and being charged with keeping the train on the tracks, I developed my own critical advice to plan for and survive an unexpected crisis like this one.
I had no idea that a phone call saying, “Mike’s in the hospital with a fever,” would turn into a four-month absence, leaving the company we had run together for 12 years solely in my charge.
Here are four valuable lessons I learned:
Once I knew that Mike was going to be out for a significant amount of time, possibly weeks, months or years, I needed to take action. We pride ourselves on a culture of commitment and transparency, so it was only natural that I began to communicate to the team on a regular basis, sharing whatever latest information I knew about his condition and updates on what was happening across the organization.
In a vacuum of information, people will fill it, and the last thing you need is for employees to start thinking that the business is falling apart because they’re not hearing anything from the top.
This may seem like very basic business advice, but it’s amazing how often it’s overlooked in today’s fast-paced environment. In general, as owners, we have a lot of key client and project knowledge in our heads. Assuming that we’ll always be around, this information is rarely shared with others, much less documented. This is a bad idea.
This goes for other employees as well. There shouldn’t be just one single person capable of doing any mission-critical tasks. At the same time, key customers should have multiple points of contact. Key company accounts like banking and insurance shouldn’t be in one person’s name, as it creates a problem when trying to gain access during a crisis.
Get comfortable with uncertainty
About three months into Mike’s absence, I faced a choice about a critical hire for the organization. If Mike were going to return, I would not need to make the hire. If he were going to be out for even a few more months, I would need to make the hire. I had no idea what would come next.
I looked at my internal resources and determined whether we could keep picking up the slack for just a little longer. We did, and he returned soon enough. The bottom line is that you have to be OK with trusting your gut and rolling the dice.
Prepare for re-entry
During Mike’s absence, by necessity, life had moved on — people had new roles, and there were new ways of doing things. One thing I wish we had done was to have a minimum two-week grace period after he returned dedicated to his transition back.
We could have had a summit with the entire organization about what had happened, who picked up which roles and what had changed. Then we could have scheduled individual sessions with each person who now owned a piece of Mike’s role and allowed them to take him through that on a specific level.
Every business is only one phone call away from a crisis. The company should be set up and prepared to perform under uncertain circumstances. At the same time, when a crisis does strike, remember to trust your team, because they are more talented than you may think. They will rise to the challenge and will be willing to help out.
William Onion is the managing director at Briteskies, an eCommerce design, development and integration firm, and can be reached at (216) 535-4099 or www.briteskies.com.
It’s an unfortunate fact of business — over the last 20 years, lawsuits brought on by a company’s employees are up 400 percent. Businesses are constantly striving to stay ahead of the game as it relates to employer-employee relations, seeking information and tools to protect the business from getting into long, expensive legal battles with employees.
The Ohio Chamber of Commerce is answering the needs of the Ohio business community through the expanded HR Academy. Launched last year by providing HR Academy webinars, the program has expanded this year to provide even more human resource services. Businesses often don’t have the means to employ an HR professional or navigate the complicated HR laws themselves. So the Ohio Chamber’s HR Academy gives employers the tools to help them stay compliant.
Knowing your rights as an employer is essential to protecting your business. Business owners need someone on the inside with a broad understanding of the legal issues that can affect employer-employee relations. The HR Academy is the perfect tool for business owners to make sure their HR staff is well-informed.
In addition, the HR Academy helps human resource professionals and employment lawyers stay up-to-date on the issues that can affect employer-employee relations. The HR Academy curriculum is accredited by the Society of Human Resource Management and is delivered through a series of online webinars and in-person symposiums. Participants of the program receive HR Certification Institute credits (for human resource professionals) and Continuing Legal Education credits (for lawyers).
Other products offered through the HR Academy include the following:
HR Symposiums: Held in cooperation with local chambers throughout the state, these monthly symposiums offer a variety of topics from social media in the workplace to the latest in employment law. The symposiums are presented by sponsoring HR Academy law firms.
Ohio HR Manual: Produced in conjunction with Squire Sanders, an Ohio-based law firm with employment law expertise, we now offer a comprehensive HR Manual packed with information about employment law and human resource-related matters, all presented in an easy-to-understand manner.
Employment Law Posters: Ohio law says that every employer must have its NLRA Employment posters displayed in an easily accessible area in a place of business. Failure to do so can result in a fine by the state. Business owners can make sure they are in compliance by purchasing posters from us.
Also, for the first time, we will be offering businesses an opportunity to brand the NLRA posters. A perfect “thank you” gift for anyone you do business with — clients, vendors, distributors, etc. — the posters can be branded with your company name and logo.
The HR Academy can be purchased as a yearly subscription for $1,200 that can be billed monthly and includes webinars, human resource symposiums, employment law posters, HR Books and access to HR legal experts. Items can also be purchased individually by visiting www.hracademyohio.com.
The HR Academy webinars and symposiums are presented by sponsoring law firms with employment law expertise from around the state. The current HR Academy sponsors include Squire Sanders (Presenting Sponsor) and Baker Hostetler (Cornerstone Sponsor). Innovator Sponsors include Dinsmore & Shohl, Eastman & Smith, Jones Day, Roetzel & Andress, and Steptoe & Johnson. Fishel, Hass, Kim and Albrecht is a Partner Sponsor.
Beau Euton is vice president of membership for the Ohio Chamber of Commerce. For more information on the Ohio Chamber’s HR Academy, contact Michelle Donovan at email@example.com.
Looking to the future, every business can benefit by seeing what the trends are in the energy market and how those trends ultimately may affect business. As societies advance, they will continue to need energy to power homes, business, industry, transportation and other services.
By assessing the trends in energy supply, demand and technology, companies can make strategic plans and long-term investments that underpin their business strategy. Several key findings are relevant for all companies to consider when looking at macroeconomic views of the energy markets. This view must not only look at today, but years in advance.
One basic theme is that the appetite for energy will grow immensely as everything will be more electronic and driven by where we get energy from. Companies need to assess their growth strategy to suit their present needs and future consumption.
Here are some fundamentals:
Population: The population between now and 2040 will grow by 25 percent. In 2040, we will have almost 9 billion people on earth and it is anticipated that 75 percent of the world's population will reside in the Asia Pacific and Africa. A country’s working age population, people ages 15 to 64, represents the driver for its economic growth and energy demand. After 2030, India will have the largest population, and 70 percent of its population will be in the working age population range.
Energy: Efficiency will continue to play a key role in solving our energy challenges. Energy demands in developing nations will rise by 65 percent by 2040, reflecting growing prosperity and expanding economies. With all of this growth comes a greater demand for electricity.
Computers, smartphones, air conditioners, microwaves and washing machines — these things all depend on electricity to work. And as the number of homes and businesses across the world grows, so does the need for power. The fuels we use to power our world are also evolving, with natural gas and nuclear power generation in non-OECD countries increasing by 150 percent.
Residential: As economies and populations grow, so will energy needs. By 2040, residential and commercial demand is expected to rise approximately 50 percent.
This is being driven by developing countries. There are about 1.3 billion people today who do not have access to electricity, and while demand is anticipated to increase by 50 percent, energy use per person is actually declining thanks to energy-efficient buildings and appliances.
Transportation: Transportation-related energy demand will increase by more than 40 percent from 2010 to 2040. Most of this demand is driven by heavy-duty sources (freight trucks, buses, emergency vehicles and work trucks), but as personal vehicles are becoming significantly more energy-efficient, the demand will rise steadily.
More importantly, mpg will become more attractive, with anticipated mpg to increase from 27 to 47 mpg. The mpg increase is attributed to the use of improved engines and transmissions, along with lighter body and accessory parts, vehicle downsizing and increased use of hybrids.
Industrial: Industrial energy demand will grow by 30 percent. The fastest growing area for industrial demand comes from heavy industries. The most flourishing is the chemical industry.
These global considerations are important as you look to the future to find those things from a macroeconomic basis that should have an impact on your business. It is necessary to find a series of relevant statistics that will help you identify early warning indicators of what you should do in terms of product development and industry growth.
Matthew P. Figgie is chairman of Clark-Reliance, a global, multi-divisional manufacturing company with sales in more than 80 countries, serving the power generation petroleum, refining and chemical processing industries. He is also chairman of Figgie Capital and the Figgie Foundation, a member of the University Hospitals Board of Directors, corporate co-chairman for the 2013 Five Star Sensation and chairman of the National Kidney Walk.
Rick Solon is president and CEO of Clark-Reliance and has more than 35 years of experience in manufacturing and operating companies. He is also the chairman of the National Kidney Foundation Golf Outing.
How Michael Catanzarite combines competitiveness and a family atmosphere to keep Darice atop the craft industryWritten by Gregory Jones
“A Pat Catan’s Company” reads the sign in the lobby of Darice Inc. where Michael Catanzarite greets his guests. Catanzarite, or Catan for short, is the son of Pat Catan and is CEO of Darice Inc., a premier wholesale distributor in the craft industry.
That lobby sign is a symbol of the company Catanzarite’s father started in 1954 with $200, basically creating the craft industry.
“It’s a unique story because how the hell would you get into the craft business?” Catanzarite says.
Pat Catan was a pilot instructor during World War II. When he returned from service the only place to get a job in Cleveland was at NASA. As a new guy living in Cleveland walking around, he saw a need for supplying decorations for decorators of store window displays.
“Back then, department stores’ biggest form of advertising was the window decoration itself,” Catanzarite says. “He started supplying products for that. It evolved into material for making your own flowers for displays and floral arrangements for your house and grew from that point.”
In 1954 Pat Catan’s was just one single store. By the mid-’70s, the company had six or seven stores.
“He was a pioneer in the industry, because there really was no craft industry,” Catanzarite says. “In the early’70s, we came up with the name Darice. Darice is our wholesale name and that’s the majority of our business. If you go into any big box store like Wal-Mart, Target or Michael’s, you would see the Darice brand in there.”
The wholesale division started in the 1970s. Catanzarite entered the family business following his graduation from high school in 1976.
Catanzarite knows the ins and outs of Darice. He knows the names of virtually every employee and can quote his father’s sayings and other inspiring messages that line the walls of the Darice office.
But what else would you expect from a man who has worked at the company for his entire life?
“My dad was my idol, my hero,” Catanzarite says. “I enjoyed being with him and I enjoyed working with him. Why did I come into the family business? I hated school.”
Catanzarite has been CEO for nearly 20 years, but he isn’t the only family member working at Darice. In fact, there are 22 family members who work full time in the business. His office contains nearly 100 photos of family and items like his dad’s old briefcase and jacket, which help motivate him and serve as a symbol of who started the business.
From 1954 to today there have been a lot of changes within Darice and the craft industry itself.
“The difference between today and yesterday is the speed to market and the speed of business,” Catanzarite says. “You better be at the wheel every day and have your foot on the gas 100 percent or you’re going to be left behind.
“Today, we are fortunate because of our employees and their hard work, we’re the largest in the industry at what we do. Being the largest has its challenges in that you’re always a target for competition.”
Here’s how Catanzarite keeps a family feel at Darice while also pushing the company to remain an industry leader.
Fight the competitive forces
Darice Inc. today has 1,800 employees and is one of the top privately held companies in Ohio. The company supplies craft product lines such as craft basics, jewelry making, paper crafting, bridal, floral design, fine art supplies, kid’s crafts and licensed products to retailers such as Wal-Mart, Target and Michaels.
“We’ve made it a priority in our company that we are going to be product-first people and product-innovation focused,” Catanzarite says. “That’s our business: creativity and products. When we do that, everybody in this building understands that our goal is to find the next best product to make sure we’re to market quick and can respond to a call from Target or customer X to have a presentation done in a week.”
Anything that Catanzarite does to be successful is a result of the company’s mission statement and that his employees work on it every day. It requires the right kind of people to live the company’s mission.
“Do we have the right people and the free thinkers for that?” Catanzarite says. “That’s how we take something from concept to reality. In any company, if you just talk about stuff and you don’t make it a priority with the facility and the people, you’re not going to get anywhere.
“If you say you’re going to do something, but all you have is an idea on a piece of paper, well, what the hell good is that? You’ve got to give it substance.”
Catanzarite spends a lot of his day motivating and counseling employees and trying to figure out what areas Darice needs to improve.
“You’re constantly changing and trying to upgrade, but not because the people are bad, successful companies merge new ideas in with the old ideas,” he says. “We never really focus on the competition. We just try to be as good as we can be.”
Part of making the company better is continuing to get products to market quicker than anyone else.
“Here, we do things quickly,” Catanzarite says. “We get stuff to market in half the time of our competition. We react to our customer faster than anybody. That’s the only way you’re going to beat the competition because everything is so fast and everybody is trying to increase their margin to go around you.
“Today, you better be the best at everything or you’re going to get run over. We’re focusing on how we do that.”
A big reason for Darice’s success is due to its employees and the culture Catanzarite has helped foster over the years.
“The people part of the business, which a lot of people shy away from, is really the most important part of the business,” he says. “It’s what’s driving the company. You have to motivate them to do what’s next.”
Catanzarite fosters this kind of culture through commitment, consistency, being honest with his organization and devoting the time to it.
“I always compare it to being a parent,” he says. “The biggest component to being a parent is that children need your time. There’s nothing, as you raise your children, that’s more important than time. Your employees are the same way.
“If your boss came in today, sat with you, had a cup of coffee, and was nice to you, that would make your day. But a lot of people are just so busy going to the next meeting that they don’t carve out that time.
“You’ve got to spend time on relationships. That’s how you get the trust. My goal is for people to do good because they want a paycheck, but also because they like me and they don’t want to fail me.”
Eliminate family politics
In a family business, it’s easy for family members to develop office politics and destructive habits that can destroy a company. Darice and the Catanzarite family follow a simple motto to squash any of those possibilities.
“Faith, family and friends is our motto,” Catanzarite says. “We live by it. There’s nothing more important than faith, which drives our family. Once you’re my friend, I’ll never get rid of you. We have 22 full-time family members that derive their full-time income from working at Darice. How do we deal with that? We try to eliminate politics.”
If a family member wants to come to work at Darice, the most important thing Catanzarite does is find the right job for that person.
“Are you going to make a guy who’s good with his hands and likes working on cars a salesman at Wal-Mart?” Catanzarite says. “You may, but his chance at failure is much greater.”
Catanzarite’s family members let him have the ability to place them where he thinks they’re best served within the company.
“So far everybody still comes over on Christmas,” he says. “But with 22 family members, if somebody gets mad, they go home and tell their spouse and they tell her mom who might be my sister, so you have to have the openness and honesty.”
Not every family member works full time inside the company. There are others who play outside roles.
“Even if you’re not internally in the building, most everybody else is in the business,” Catanzarite says. “The guys that are outside play such an integral part that if I lost them, it would be like I’m losing somebody internally. It’s good the way we mesh that.”
To keep the family atmosphere in a company that has gone from three employees to 50, 50 to 100 and 100 to 1,800, it takes openness and transparency. Most importantly, someone needs to take charge.
“There are a lot of families that have trouble even sitting in the same room to meet,” he says. “As a company you need a plan and unfortunately there could be five to 20 relatives in there, so you need a boss.
“There has to be a single leader in the family and the family has to be committed to supporting that, otherwise you’re going to fail,” he says.
Darice is currently undergoing a succession planning process so that it is prepared for the future. The company has also brought in people from outside the family for integral leadership roles.
“A lot of family businesses struggle to bring in professionals in executive positions,” Catanzarite says. “We were the opposite. Our president is a non-family member. Our CFO is a non-family member. Our IT director is a non-family member. Our head of marketing is a non-family member.
“Long term, one of our decisions will be that we always want an outside president and CFO. In family businesses, it’s tough for people to do that sometimes. They say, ‘I’ve been doing this forever; I know everything.’ I may know more about crafts than anybody, but I don’t know more about selling to Wal-Mart and Amazon. I’m not an expert in distribution.
“Bring those people in and allow them that ability. Having those outside positions in a family business helps the rest of your employees too, because they see that it’s not just Catanzarite’s running the company.”
Every decision Catanzarite makes about the future of Darice is done so with his family and employees in mind and how that decision is going to make everybody feel.
“My focus is on continuing to grow this business to be a premier company in what we do and taking it to the next level and seeing the employees flourish,” Catanzarite says. “I’m driven by the goal that my dad wanted a great company for his family, and if I don’t finish that, I failed. I’m not going to fail. You’ve never met a guy so driven to make something successful for the benefit of his family.”
How to reach: Darice Inc., (440) 238-9150 or www.darice.com
For 27 years, Ernst & Young has championed the entrepreneurial spirit of men and women pursuing excellence in their businesses, teams and communities.
Ernst & Young founded the Entrepreneur Of The Year Program to recognize the passion of entrepreneurs and to build an influential and innovative community of peers. We received more than 1,680 national entries for this year’s program, from the country's most deserving entrepreneurs. Their triumphs stand as a testament to the role they play as visionaries and leaders.
Entrepreneurs change the world and make it a better place to work and live. We honor them for their fortitude and resilience, and we celebrate their ability to forge new markets, navigate uncharted territory and fuel economic growth.
We gather here in Northeast Ohio and in 24 other cities across the U.S. to honor all of the finalists and welcome the new class of entrepreneurs into our Hall of Fame.
Congratulations to all of the 2013 Northeast Ohio Entrepreneur Of The Year finalists and winners. We applaud them all for their unyielding pursuit of business excellence and we are honored to share their inspiring stories with you.
Whitt Butler, advisory partner, Ernst & Young; program director, Ernst & Young Entrepreneur Of The Year Northeast Ohio.
Here are the 2013 Northeast Ohio Entrepreneur of the Year winners and finalists:
Distribution and Manufacturing
Education and Non-profit
Health Care and Pharmaceutical Services
Finalist – Scot Lowry, president and CEO, Fathom
Retail and Consumer Products
Winner – Kris Snyder, CEO, Vox Mobile, Inc.
Family Business Award
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 firstname.lastname@example.org.
To learn more about the Muldoon Center and our programs, visit: www.jcu.edu/Muldoon.
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Even in this recovering economy, businesses are trying to do more with less. While managing existing processes can enable flexibility for the ups and downs of business, incorporating software could alleviate pain points, improve productivity and save money.
“The big question is, ‘How do I improve what I do with my customers, my vendors or my employees?’” says Curtis Verhoff, systems integrations and applications manager at Blue Technologies. “Those are the big three, and every organization is like that — whether it’s somebody who sells widgets, provides professional services or is trying to find donors and support.”
Smart Business spoke with Verhoff about utilizing software to improve a range of business functions.
What are some examples of optimizing your software resources?
These software solutions often deal with enterprise content or customer relationship management, but they also can be transactional, such as helping handle invoices, statements, packing slips or the documents you use daily to communicate with customers. One business recently optimized its existing systems to reduce raw postage costs, saving anywhere from $4,000 to $5,000, or 20 percent, each month.
Two other organizations increased productivity by improving payment management. By adding to its software and adjusting existing systems, one company took better advantage of pricing discounts by paying vendors earlier. The other business tweaked the integration of its current system, getting its elite group of customers to pay on average five to seven days faster, which improved cash flow.
What can maximizing your software integration mean for your business?
In this economy, it’s critical to look at the level of success you’re having integrating your current software products. All businesses have to work harder to maintain their current customer loyalty, while trying to attract new customers. You must be more productive with the same or fewer employees.
Your competitors are already working to be productive and more customer friendly — you don’t want to be left behind. You need to provide advantages to your customers to separate yourself. Highlighting your software solutions through marketing can give your customers an indication of how it will make doing business with you more pleasant and reliable.
How can you discover if you have problems with existing software?
What complaints do you hear from your current staff about being more productive, servicing customers better or doing day-to-day activities more efficiently? Is each department running at peak efficiency? Where is your business not functioning at optimal capacity? If you’ve integrated certain solutions, then what’s the ROI and are you happy with that?
If you’re not hearing about problems, check with your managers. Some managers don’t take problems to the top until they reach critical mass.
Once you’ve spotted the pain, what’s next?
First, identify and pull together people to discuss the fine details of the problem. You don’t need to connect all the dots, just get a solid understanding. Develop a game plan that focuses on the most painful areas that, if resolved, can produce the biggest gain.
Many companies put together a laundry list, and then don’t move forward, fearing the cost and scope. However, if you prioritize the most critical items, you might be able to resolve the few problems that are causing most of the pain.
Then, reach out to a provider with the skills and abilities, as well as the offerings, to help you overcome your top challenges. It’s important for all parties to keep the larger list in mind because it could affect the software solution decision. Each resolution is a piece of the puzzle, and you want to avoid having to revisit it later once you’ve moved on.
Curtis Verhoff is a systems integrations and applications manager at Blue Technologies. Reach him at (216) 271-4800, ext. 2251 or cverhoff@BTOhio.com.
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