Great Lakes Science Center, one of the nation’s leading science and technology centers and home to Northeast Ohio’s NASA Glenn Visitor Center, has named Dr. Kirsten Ellenbogen as president, starting May 6.
Ellenbogen brings more than 20 years of experience as an informal educator, learning researcher and senior leader to her new role as the third president for the science center. Her energetic leadership during the last two decades has advanced informal science, technology, engineering and mathematics (STEM) education through four centers with a national or international scope and a combined funding of more than $30 million.
Glenmede, a privately held and independent investment and wealth management firm, announced that Andrew W. Kirkpatrick joined the firm as vice president of wealth advisory in the firm’s Cleveland office. Kirkpatricks’s areas of focus include specialized fiduciary matters and client service with an emphasis on multigenerational trust administration and estate planning.
Ulmer & Berne LLP is pleased to announce the addition of Laura McBride as a partner in the firm’s litigation department. Based in the firm’s Cleveland office, McBride will be the co-chair of the firm’s Energy, Natural Resources and Utilities Practice Group.
Her experience includes public utilities and public law litigation, federal and state contracts and regulatory matters, and business litigation of all types. She also has significant experience in health care and life sciences matters.
Howard Hanna has recently announced that Howard Hanna IV, president of Howard Hanna Ohio & Michigan, was named to the Leading Real Estate Companies of the World (LeadingRE) board of directors. LeadingRE is a network of 550 top independent, local and regional brand-name international brokerage firms in residential real estate. The board of directors reads like a who’s who of real estate, with some of the best minds in the business guiding the organization.
Collection Auto Group is pleased to announce that, for the seventh consecutive year, Mercedes-Benz of North Olmsted has been recognized as one of the country’s top Mercedes-Benz dealerships.
Since 2006, the local dealership has received the prestigious Best of the Best Dealer Recognition Award every year from Mercedes-Benz USA. The local dealership is one of only a handful in the U.S. to receive the honor for seven years in a row.
Welty Building Company Ltd. has announced the appointment of Donald Lydon as group president of Welty Facilities Services. In this role, Lydon will be responsible for overseeing the facilities management to extend the life of facilities and equipment, reduce operating costs and improve energy efficiency for Welty customers.
Lydon comes to Welty after 20 years with Zaremba Management Co. where he was vice president, commercial properties, and was responsible for land acquisition, development and construction for the company’s offices and industrial building portfolio. l
Cleveland is home to the Rock and Roll Hall of Fame and Museum, has a world-renowned theater district in Playhouse Square and is clamoring for one of its beloved pro sports teams to finally win a championship.
But do you know how close Cleveland came to being known throughout the land as the Motor City?
“Cleveland turned out the most automobiles in America between 1896 and 1907,” says Derek Moore, curator of transportation history for the Crawford Auto and Aviation Museum at the Western Reserve Historical Society.
“Between 1892, when (Achille) Philion built the first steam carriage in this area, and 1932, when Peerless Motor Car Co. closed its doors, there were more than 115 automobile manufacturers in Northeast Ohio. It was a significant factor in the development of the early automobile.”
Founded in 1900, Peerless began producing cars when Cleveland was the center of automotive production in the U.S. Peerless even employed race car driver Barney Oldfield to pilot its Green Dragon.
So why is Detroit known today as the Motor City? Henry Ford obviously had a lot to do with it when he started Ford Motor Co., built the Model T and came up with a way to mass produce cars on an assembly line.
“Detroit started to have more automobile companies and a big chunk of them were aimed at the lower-middle-class range,” Moore says. “Cleveland had the higher-end cars. More people could afford the cars coming out of Detroit, fewer people could afford the cars coming out of Cleveland, so Detroit’s business started to boom.”
Those realities aside, Cleveland has still done quite a bit to shape the automotive industry worldwide.
Doing their part
Mike Thompson has been selling cars in Northeast Ohio since 1975. It was a time when auto manufacturers employed a lot of people in the region — people who needed cars of their own to drive.
“People from the plants, they bought lots and lots of cars,” says Thompson, who is now the CEO at Montrose Auto Group. “Cleveland was heavy steel back then, and that’s why the ports were so important. We were in the top three of steel-producing cities in the country back then.”
The world has changed, but much of the work to support the cars and trucks we all drive continues.
“We’ve got Lordstown,” says Lou Vitantonio, president of the Greater Cleveland Automobile Dealers’ Association, referring to the General Motors assembly plant. “You’ve got the EcoBoost engine being built in Cleveland, which is Ford’s most popular and most fuel-efficient vehicle. You’ve got Toledo that is heavy into Jeep because of the Jeep production plant. And you’ve got Honda in Central Ohio.”
Lubrizol Corp. is another big player with its work in oils and lubricants along with Eaton Corp. and TRW. But Moore says the ties don’t end there.
“Sherwin-Williams has been a big supplier to the industry with paint,” Moore says. “Down in Akron, you’ve got Goodyear. Lincoln Welding supplying welders to the repair shops. Ohio Technical College is training the future body mechanics and training people in alternative fuels. And the Cleveland Institute of Art — which is in an old Ford assembly plant — they have an automotive design program that is one of the best in the country.”
And so the evolution of the auto industry continues, says Frank Porter, president of Central Cadillac in downtown Cleveland.
“I think we rank second in the nation with the group of suppliers that produce parts that go into cars,” Porter says. “It was just sheer mass that made Detroit what it is today. At the same time, it’s maybe not as diverse as Cleveland is, and I think Detroit suffers because of that.” ?
To learn more about Cleveland’s automotive history, visit the Western Reserve Historical Society
In a market hungry for deal flow, high-quality companies are in demand and valuation multiples are rising. Private equity firms continue to be active bidders at the table with the middle market being fertile ground for buying activity.
GF Data, which reports on private equity transaction activity in the lower middle market (deal values between $10 and $250 million), recently cited valuation statistics from 2012 that point to a market premium paid for quality, size and desirable industry, which, when combined, the sum of the parts can achieve a multiple of EBITDA in excess of eight times for a well-performing business, according to Private Equity Professional Digest.
PitchBook, another reporting firm focused exclusively on the private equity market, cited that more than a third of deals in 2012 had an EBITDA multiple of seven and a half times or greater, lending further support to healthy valuations in the marketplace.
With nearly $100 billion (private equity funds of $100 to $1 billion according to PitchBook) in uninvested equity capital, motivated sellers with companies that possess strong management, have shown solid performance and are in attractive industries can feel confident that the private equity radar is up for those businesses. With ample debt financing today, sponsors are open to a myriad of strategic options — from a dividend recapitalization to a partial or outright sale — for quality companies.
Local private equity firms were active in March. Linsalata Capital Partners completed its first acquisition of 2013 with Signature Systems Group, a New York-based manufacturer of specialty ground surfaces and coverings selling to more than 3,000 domestic and international customers. Signature’s founder and CEO reinvested alongside LinCap in the transaction. Financial sponsor Dubin Clark & Co. exited its investment in the sale. The sponsor completed two add-on acquisitions after purchasing the company in 2007.
Resilience Capital Partners acquired a majority interest in Memphis-based Aerospace Products International, a global aviation parts and equipment distribution and supply chain management firm. Its parent company, First Aviation Services, retained a minority equity interest in the company. The Cleveland sponsor completed five deals in 2012, including CR Brands, a manufacturer of branded and private label laundry and household cleaning products based in West Chester, Ohio, acquired from Juggernaut Capital Partners. ?
Andrew Petryk is managing director and principal of Brown Gibbons Lang & Co. LLC, an investment bank serving the middle market. Contact him at (216) 920-6613 or email@example.com.
Bernie Moreno has always had a great love for cars. They had to be in his life. So as a 25-year-old, he went to work as a general manager of Herb Chambers’ Saturn dealership in Boston. During the course of 12 years there, he became Chambers’ vice president.
Moreno’s success caught the attention of Mercedes-Benz who asked Moreno if he would move to Cleveland to run a Mercedes-Benz dealership. Moreno agreed.
“I came in to Cleveland to see what this dealership was all about before I bought it,” Moreno says. “I pulled up here with my wife, I saw a salesperson, and I told him I was thinking about either a Lexus or a Mercedes — and I’m moving to Cleveland.
“The salesperson said, ‘I don’t understand why you’d want to move to Cleveland. This is the worst place on Earth to live. The people suck, the weather sucks, the economy sucks. I was born here and I’ve been trying to leave here since I came out of the womb.’ This is what the guy said to me.
“So I said, ‘People don’t buy Mercedes here?’ He said, ‘This is a blue-collar town. If we sell 10 to 15 cars a month, that’s a great month. If we sell 20, we’re dancing on the tables.’”
Moreno could have been discouraged, but he wasn’t. The dealership had been selling 200 cars a year before Moreno took over. He came in and set the goal high for the new dealership team.
“We came in, and I said to myself, ‘We can’t live selling five cars a month,’” Moreno says. “In our first sales meeting, May 13, 2005, I said, ‘We’re going to sell 100 cars a month.’
“We knew we had to do that because if we didn’t sell 100 cars a month, I couldn’t pay me, let alone my staff. I had to succeed because if I didn’t I would be in big trouble because I just committed my entire life to this endeavor.”
Here is how Moreno, president of Collection Auto Group, took one Mercedes-Benz dealership and built it into the Collection Auto Group that we know in Cleveland today.
When Moreno was working in Boston prior to 2005, he was helping run what was the sixth-largest privately owned dealership group in America with $1.5 billion in annual sales. In early 2005, he took over a dealership that sold only 200 cars a year.
“The difference is this one is mine and that one I just worked for,” Moreno says.
At that time, Moreno’s focus was to establish the dealership in the Cleveland area and create the right culture within the company.
“What helped in that tremendously was the fact that 12 guys moved from Boston to Cleveland with me,” he says. “That was a huge help, because when you’re establishing a culture, you need a critical mass of people who feel the same way that you do philosophically.”
Moreno says his desire to create further opportunities for the business fueled the dealership group’s growth the most. This, in turn, created opportunities for his staff.
“You can’t have all these guys in one store and challenge them and keep them growing,” he says. “All of them now have their own dealership that they run or a larger position within the company, which is great.”
In 2005, the dealership sold 24 cars between Jan. 1 and May 11. From May 12 to May 31 that year, it sold 80 cars. From that point on, Moreno and his team have been hitting their goal of 100 cars a month and then some.
“Our focus right now is really managing our growth,” he says. “We started with one dealership. We took over a small 200-car-a-year Lexus building. We finished the building in September 2008 right after Lehman Brothers collapsed. We used the opportunity to grow, and that growth was somewhat tame versus what we are doing today.”
Recently, Moreno has been expanding his business almost exponentially. Within the past year alone, the company has opened a Volkswagen dealership, a second Infiniti dealership, a new Nissan dealership, is building a new Mercedes-Benz dealership in Cincinnati and has been renovating several properties.
Moreno has plenty of projects to keep him busy. He has to buy the land for the new dealerships, build the dealerships, meet the individual car company’s requirements and hire people to run the dealerships. On top of all of that, Moreno still has to look after the other dealerships he has in operation.
Today, Moreno runs a collection of 24 dealerships, which led to the name, Collection Auto Group. The company is a more than 400-employee, $350 million car dealership group that sells Acura, Aston Martin, Buick, Fisker, GMC, Infiniti, Lotus, Mercedes-Benz, Nissan, Porsche, smart, Spyker, Vpg, Volkswagen and Maserati brands.
“It was never the intention to move to Cleveland to have a small little dealership,” Moreno says. “That wasn’t what I wanted to do. I didn’t necessarily think I was going to have 24 dealerships in seven or eight years, but I knew it wasn’t going to be a small dealership.”
Moreno may have been worried about car sales when the dealership first started, but in 2012 alone, Collection Auto Group sold 6,500 cars companywide.
“It’s is a big change,” he says. “Managing growth is like blowing up a balloon — you want to make sure you manage it properly, because otherwise you’re going to do it too fast.”
There are several factors that have helped Moreno and Collection Auto Group in its growth trajectory, but above all else, it comes back to the fact that Moreno loves cars.
“No. 1, you have to do what you love because if you’re not doing what you love, then you’re never going to be as successful as you can be,” he says. “For me, cars have always been a passion since I was a little kid.”
Another thing Moreno says has aided in his success is that he didn’t chase money. In fact, Moreno was making more money in Boston before he moved to Cleveland, but he wanted the opportunity to be his own boss.
“The biggest mistake people make is they follow money,” he says. “They’ll take a job because it pays more or they do this business because they’ll be rich. Money follows; money doesn’t lead.”
While people may make a certain move because it means more money, people will also find excuses for reasons that they can’t do something due to a lack of capital.
“If you have a great idea and you have passion, money will find you,” Moreno says. “When I bought Mercedes-Benz North Olmsted in 2005, I bought it with every dollar I had ever saved in my life. I joke that if I could have put a mortgage on my socks, I would have. It was never a scenario where I worried about getting the money to put this together.
“You have to ask yourself, ‘How badly do you want something? How badly do you believe that it can succeed? And how much do you believe in yourself?’ If the answer to all of that is at the top level, money will find you.”
Lastly, Moreno’s success has been made possible by the team he has put together at Collection Auto Group.
“You have to give people reason to follow you and be with you,” he says. “Why would somebody leave a job if not for the opportunity for personal growth, career advancement and learning? That’s the promise you have to deliver.”
Define your business
Once Moreno and his team started to get settled in Cleveland, the focus had to shift to creating a strong culture and one that would define how the business operated.
“You have to define your business,” Moreno says. “What business are you really in? A lot of my peers would say, ‘We’re in the car business. Look around, it’s a bunch of cars that we sell and service.’
“If you define that you’re in the car business, it’s an extraordinarily narrow definition. If you ask any employee in our company, whether it’s a receptionist, a car wash kid, a technician or a salesperson, they would say, ‘We’re in the customer service business.’”
Collection Auto Group sells cars, but it’s in the customer service business, and as a result, everybody understands that nothing is more important.
“When a customer walks through that door you should treat them like (they’re) the reason I’m here today, not like an inconvenience,” Moreno says. “My door is always open. If I’m willing to do that, what does it mean to everybody else in our organization?”
Moreno’s attention to clients goes far beyond making sure he gives them his time when they need it. He wants to change the car-buying experience.
“Some people hate buying cars,” he says. “But people love to buy iPhones. What’s the difference? The difference is that car dealers have made it painful for customers to buy cars. Car dealers have made the buying process completely unenjoyable, and it should be the complete opposite.”
Before Apple, people hated buying computers too. Now, people often just go to the Apple store to hang out because they made it fun and interesting.
“In the car business, it should be the same way, and the biggest thing that gets in people’s way is this fear when you walk through the front door that you’re going to be taken advantage of,” Moreno says. “Knowing that, we try to create a culture that says, ‘Let’s get rid of that anxiety.’”
Collection Auto Group tries to be extraordinarily transparent to make the negotiation process quick and easy. That transparency helps attract customers.
“If a customer walks in and they are looking at a Mercedes-Benz C300 and the sticker price is $42,500 … and their trade-in is worth $20,000, you have to ask yourself how much effort you are willing to put into this thing,” he says.
“How much are you willing to battle and let me wear you down? How much time do you want to spend wearing me down and are you willing to invest two or three hours to make that happen? Let’s say you do. At the end of three hours of going back and forth, how much do you really enjoy your car now? You hate it.”
Moreno utilizes the fact that customers these days are well-informed about car prices and what their trade-ins are worth; transparency and honesty with the customer saves time and effort.
“You know that I’m going to sell you the car for the price that’s going to be more than fair,” he says. “That creates a customer for life because they know that we will take better care of them than anybody else.”
Today, Collection Auto Group is well-established in the Cleveland market and sells all the car brands that it wants without any brand competing against another in the portfolio.
“Now that we’ve built this thing, we can take it for a drive and really expand exponentially with the brands we have right now,” Moreno says. ?
How to reach: Collection Auto Group, (440) 716-2700 or www.collectionautogroup.com
Do what you love and believe that you can make it successful.
Create a culture that separates you from competition.
Treat customers with respect and honesty and success will come.
The Moreno File
Collection Auto Group
Born: Colómbia, South America, but he grew up in Fort Lauderdale, Fla.
Education: Went to University of Michigan and received his undergraduate degree in business.
Goal: To be the chairman of the board of GM
What was your first job and what did you learn from it?
At 12-years-old, I delivered newspapers at 2 a.m. in Fort Lauderdale. My mom also owned three real estate offices so after delivering newspapers I went to work for her and ran the bookkeeping at 14 or 15 years old. That taught me that family businesses are a challenge, and it wasn’t something I was interested in.
What got you into cars?
When I went to Michigan I worked for Automobile magazine.
What was your first car?
A Honda CRX. I saw it on the cover of Car & Driver.
What was your favorite car you have owned?
I had an ’89 Ford Mustang GT. That was the coolest car.
If you had to choose a car to own off one of your lots, what would you choose?
Cars are like your children — you’re not supposed to have a favorite. But for me, Mercedes are the cars that I’m most passionate about. If I had to buy one car, it would be a S63 Mercedes.
Every company, irrespective of size, at some point needs a variety of service professionals. The amount and experience these professionals possess can substantially add value to your business and mitigate risk.
Technical matters of law, financial audit, tax, industrial marketing and public relations are usually best handled by outside experts. Attorneys, auditors, tax experts, public relations and industrial marketing professionals have specialized knowledge and skills that you couldn’t and shouldn’t hope to duplicate.
Clark-Reliance’s business philosophy has always been that we make service professionals an extension of our team. We frequently invite them to sporting events, company dinners and other internal events. Knowing our service professionals on a personal basis and allowing them access to know our staff makes it a better and more effective partnership.
Our senior management works closely with these providers so that they can answer questions efficiently and quickly whether it’s a simple or complex business issue.
It is also good practice to formally meet with service providers on a frequent basis, even if the meeting is only an update. This practice will allow your providers to gain a better understanding of your business and provides a discussion forum that is different than just dealing with them on an as-needed basis or for “crisis interventions.”
Whether you have in-house counsel or not, outside legal service providers are an imperative partner to help you grow and protect your business. Partnering with a reasonably sized firm allows you access to worldwide contacts, practices and procedures.
Almost everyone has four distinct reasons to use an attorney or specialized law firm, even if you do employ general counsel:
Acquisition — When your company is engaged in an acquisition, you need a highly specialized legal team to provide expertise in areas such as due diligence, negotiation, asset acquisition, purchase agreements, taxation and employment transactions.
Intellectual property — The need to safeguard your new product ideas can be ensured by a highly specialized attorney who can protect and defend your intellectual property, patents, trademarks and copyrights, both domestically and worldwide.
Product liability — The misuse and misapplication of products that have been sent into the stream of commerce may result in litigation or unjustified claims that need to be addressed by competent legal counsel.
Labor and employee issues —The multitude of employment law issues, regulation and compliance requirements and employer/employee legal issues demands a working relationship with a labor/employment legal professional.
The changes in the United States Federal Tax Code and the continuing compliance with tax laws for federal, state and local taxation demand comprehensive and technical knowledge. Most companies also need to have audited financial data for borrowing purposes or to meet public company regulations. This highly specialized and technical knowledge can only be accessed through a tax and financial adviser.
There are four areas where a financial/tax service professional can assist any business.
Taxes — Whether you are an S-corporation, C-corporation or LLC, you need to have a tax adviser analyze the tax implications of business decisions to ensure that you are properly taking advantage of the complex tax code.
Grants and tax credits — The research tax credit remains a valuable source of support to businesses that conduct qualified research and development.
Acquisition process — During the acquisition process, it is imperative to include your financial advisers in terms of due diligence and specific issues like goodwill, inventory valuation and working capital adjustments.
Audit — Private or public, it is a good idea to have your financial data analyzed and scrubbed by experts in areas of revenue recognition, inventory valuation and off-balance-sheet transactions.
Utilizing service professionals provides a road map to avoid the pitfalls that can present significant obstacles to your business success. ?
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 cochairman 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.
When Jean-Paul Ebanga looks up at the sky, he thinks about the more than 3 million people who fly every day on airplanes powered by CFM International engines. In fact, every 2.4 seconds an airplane departs under the power of a CFM engine.
“That means our role today is far beyond delivering engines to the industry; it is also making sure people are traveling in a very safe way at a decent price,” says Ebanga, president and CEO of CFM International, a $15 billion aircraft engine manufacturer that is a joint venture between GE here in the U.S. and Snecma in France.
CFM — which gets its name from a combination of the two parent companies’ commercial engine designations, GE’s CF6 and Snecma’s M56 — combines the resources, engineering expertise and product support of these two engine manufacturers to build engines for narrow body aircrafts.
“Today, in the air transport industry, the narrow-body segment is the main segment of the industry,” Ebanga says. “Looking forward for the next 20 years, there will be a need for roughly 30,000 new airplanes; two-thirds of those will be narrow-body airplanes and CFM is currently leading this market segment.”
If being the industry leader in engine manufacturing wasn’t enough of a challenge, Ebanga also has the challenge of leading a joint venture company where compromise and collaboration is the key to success.
“If you are taking two parent companies with two different cultures and you try to blend them, this will generate some difficulties,” Ebanga says. “But the net result, because you have to find compromise, because you have to work between different cultures, will be more sound ideas and a much more efficient organization.”
Here’s how Ebanga utilizes both GE’s and Snecma’s resources to keep CFM the industry leader in narrow-body aircraft engine manufacturing.
Compromise and collaborate
While a majority of companies are focused on streamlining themselves, CFM has to take a different approach to its business. Its joint venture means CFM has to work to find compromise above all else in order to properly function at its best.
“The problem with the JV is because you have two different constituents, you have to make compromise,” Ebanga says. “There is no one voice saying this is the way and the rest of the team just follows without asking questions. In terms of leadership, it requires some things to be a little bit different than normal leadership.”
The existence of this additional challenge makes this kind of partnership too difficult for some leaders and companies. But Ebanga sees the glass as half-full.
“If you are able to find the sweet spot between the two company cultures and then work around these difficulties, you enable a new space of opportunities and strengths,” he says. “This is the essence of joint venture success.”
CFM has been known for a long time by its superb engine family, CFM56. Now the company is looking to release its next generation of engines called LEAP, for which compromise and collaboration will be key to its success.
“This new product will be designed based upon a very detailed and comprehensive market survey,” he says. “We spend more than three years asking the customer what they are looking for in the next 20 years and understanding in a granular way how the dynamics of the market can evolve, and then we define the product, which is the answer and the solution to that.”
When you have two companies, the reading of the market dynamics will be different because each company has a different way of operating and a different culture, so they will analyze all the signals in a different way.
“Maybe the solution has some things shared, but the two won’t be exactly the same,” Ebanga says. “The whole key is how you bridge the two approaches. How can GE or how Snecma can make the necessary compromise to accept that the other guys also have a great idea and how can you work together to bridge ideas that make a great product.”
The trick is being able to step back from what you believe is the ultimate answer and being able to compromise with other ideas from another company that also thinks they have an ultimate answer.
“By bridging the two, you find out that some of what’s behind the idea of the other company you didn’t think about at first and vice versa,” Ebanga says. “At the end, the product you are putting on the market is far better than the one you could have done alone.”
Both GE and Snecma own their own technology. Snecma works on the front and back of the engine, while GE works on the middle of the engine. For LEAP, they both have been developing technologies for their respective parts of the engine, but the companies don’t unilaterally say, ‘Here’s our part of the engine.’ The other company has to accept and agree with the technology based on analysis. There are checks and balances that go into the process.
“Based on the other company’s remarks, you can improve your own part,” he says. “Snecma might make some comments about the core, which is the responsibility of GE and taking into account these remarks GE will improve its own part of the engine and vice versa. It’s a mutual cross-pollination.”
The level of compromise and collaboration that CFM has developed has been built up during more than 30 years and is now a major part of the joint venture’s culture.
“In our case, the different GE and Snecma leaders, over time, understood that CFM’s success is more important than their own success,” Ebanga says. “That is to say that if I’m trying to optimize my own interests rather than CFM’s interests, at the end of the day, I would lose the game.”
CFM and GE have been very successful at carrying out this approach even though the leaders have changed.
“One way to do that is we manage young leaders in the challenges of working in this strategic partnership environment,” he says. “If you are growing leaders in this environment, eventually when they are in the top spot, they will have the framework to deal with what makes up the success of this JV.”
A joint venture takes an investment in both people and process in order to make it work.
“In a strategic partnership, it is like being a couple — you could fall in love day one and it’s great for a couple of weeks, but if you are not investing in the relationship … it won’t be a great love story,” he says.
Plan for the future
One of the main challenges CFM has is that in the ’70s it was just a start-up company. Now it has become the leader of the aircraft engine industry, and in order to remain in that position, Ebanga and the company must be forward-thinking.
CFM has several matters it needs to focus on for the future of the company. No. 1 is executing on current commitments.
“This is a big deal because we are currently developing a new engine family called LEAP, and the start of this new program has been very successful,” Ebanga says. “We are the sole power plant for the next generation of Boeing 737 MAX aircraft, one of the two engine makers of the Airbus A320 aircraft, and we are the sole power plant of the new Chinese COMAC C919 aircraft.”
Beyond making LEAP the next engine of preference, CFM also has to ensure that whatever changes the market goes through in a decade or two from now the company will be able to adapt and reinvent itself to stay in the leading position.
“When you are in this top-dog phase, it’s difficult,” he says. “It’s about working on a short-term basis and, at the same time, articulating a strategy to change the way we are running to make sure we will still have the appropriate fit 10 years from now.”
Planning for what the future has in store is not an easy task. You need to address the situation in a very humble way.
“You are already overwhelmed by the shop-time challenges and to find time and perspective to think about the long-term is rather difficult,” Ebanga says. “Being humble helps you to engage in this journey. Along the way, you will have a lot of reasons to give up for a while and stick with the short-term. I think this is a recipe for failure. You need to stay humble on one end but also stay engaged and not let things go away.”
You also need to understand your market but not in the way you understand your market for your short-term objective.
“When you are looking at the market on a short-term basis, it is to make sure you have the appropriate marketing and value proposition to get yourself up and make your numbers,” he says. “When you are looking at the long-term perspective, it’s really the ability to elaborate scenarios about the change in your industry.” ?
How to reach: CFM International, (513) 563-4180 or www.cfmaeroengines.com
Drive compromise and collaboration for best results.
Be able to reinvent your business to adapt to your market.
Develop plans for how the future of your market may unfold.
The Ebanga File
President and CEO
Born: Paris, France
Education: Graduated from École Nationale Supérieure d'Électricité et de Mécanique (ENSEM), France with a degree in engineering
What was your very first job, and what did you take away from that experience?
I was the leader of the photo club in high school. A lesson I learned from that time is that you can have some great ideas and be very fast in your head, but you have to have the ability to bring people up to speed. This is a great example of how a real organization works.
What got you into aviation?
It was the beauty and the exceptional achievement that this industry is all about. When I was in high school, I had two dreams—the first one was to be an architect and the second was to be an engineer to design great things. To imagine that I could generate some great things to enable this kind of achievement was absolutely fascinating for me. So I chose the engineering path and it still gives me great satisfaction. An aircraft engine is an absolutely amazing piece of technology, but also a piece of art.
Who is someone that you admire in business?
My first thought was the leaders and initial creators of Intel. Not only was this company able to start from nothing as CFM did and became the leading company in the microchip/microprocessor business. Initially they were the leader in the memory business and then they reached a point where they had to reinvent themselves. The reason Intel is the great company they are today is because they were able to reinvent themselves in the absolutely right way. So I admire this generation of Intel leaders.
Karri Bass loves to do consumer research. As a former Procter & Gamble employee, she constantly thinks about what drives consumer behavior toward a particular product.
That desire is what led her to launch Illumination Research, a marketing consulting company that was founded on a passion for uncovering what makes consumers tick and translating those insights into business-building ideas.
“When I was working in marketing for P&G, a huge part of our job was to better understand the consumer,” says Bass, principal and insight strategist at Illumination Research. “We want to figure out how they think, not only about the product category that we were marketing but in general.
“Who are they as a person? What motivates them? What different segments are there in the marketplace and to really understand that in order to be able to translate all that knowledge into business and ideas.”
Illumination Research was founded in 2005. It now has 25 employees and the capabilities to show its clients exactly how consumers would respond to new product offerings — and offers those clients advice on how to improve.
Start with packaging
One of the marketing aspects that Bass helps clients with at Illumination Research is packaging and how that packaging grabs a consumer’s attention.
“Say a client of ours might be launching a new product,” Bass says. “Part of what they need to do is create a package that breaks through the clutter on the shelf and grabs the attention of the customers. The package has a lot to do with getting attention and speaking to them.”
As an example of finding what catches a consumer’s eye, Illumination utilizes a mobile, virtual wall that projects a life-size simulation of a shopping environment such as a store aisle.
“Before companies ever have to invest in making physical mockups of packages, we can show them on this giant computer screen in the context of what a product will look like,” she says.
Technology and innovation such as this helps Illumination show its clients how a product will look and simulate where a consumer may focus attention depending on what is on the shelf.
“A lot of times, we’re just trying to understand which packages in the aisle or which one of their new designs do the best job of getting consumers’ eyes on them,” she says. “In those cases, we might recommend they do eye tracking with the research.”
The company literally has consumers wear special goggles that track where their eyes go on the shelf to see if the package is even noticed.
“Then we want to understand once they see it what are they communicating about it,” she says. “In addition to innovative technology that allows clients to see how consumers relate to a product on a shelf, Illumination also poses questions to consumers and clients to understand the total messaging and purpose behind a product and how the company wants it to connect with a consumer.
Communication: oral and visual
“At the end of the day, it’s about the communication,” Bass says. “We have certain lines of questioning to get out the messaging and what’s coming across through the words and through the visual. It’s a marriage of both.”
Over the years, Illumination Research has been able to groom its process for understanding the consumer, which has helped deliver stronger results for clients.
“Every time we do interviews with consumers, you’re able to see what kind of questions better help them articulate their feelings,” Bass says. “A lot of our job is thinking on our feet, and we have to very quickly adapt from interview to interview with consumers and figure out what will yield the information that we will understand.” ?
How to reach: Illumination Research, (513) 774-9531 or www.illumination-research.com
With 88 percent of businesses now active on social media, the social media landscape is becoming more cluttered and more difficult. This means that, for businesses, it is becoming harder and harder to break through the noise and be heard.
In order to penetrate the noise, businesses must deliver the right message to the right person in the right way. Increasingly, the way that people want to receive messages online is visually.
We’ve heard that a picture is worth a thousand words, and this is true. The brain can process images faster than text. This is why images are breaking through on social networks — because they provide a quicker way for people to comprehend information.
Image-based social networks, such as Pinterest and Instagram, are among the most popular and quickest-growing social networks online. Images are the most liked and commented on content on Facebook and links to images get the most clicks on Twitter. All signs point toward images as the most popular, most shared and most liked content on social networks.
The point is that with so much content on social media, images are increasingly the content that is breaking through and getting results. I realized this trend and recently published a book called “Visual Social Media Marketing” about how brands can take advantage of this and get results.
So, what can you do to take advantage of this trend? Here are three simple steps to start taking advantage of the visual revolution online.
Include images on your website
The visual Web focuses around images, and as your website is shared online, the images from your website are usually the focus of how your website content is shared.
For example, when I post a link to a website on Facebook, the image is shown beside the link to my content. In this example, I’m sharing a link to our report on Google+. The image of the Google+ report is on our website.
Having the image on our website is important to how the link to our website shows up on Facebook. The reality is that if you want to drive traffic to your website from social media, each page on your site should have relevant images that are appropriate for sharing on social networks.
Use images on existing social networks
If you want your business to be successful on social networks like Facebook, Twitter, LinkedIn and Google+, images must be a part of your strategy. Consider these statistics:
? Images are the most shared and clicked on content on Twitter.
? Images receive 50 percent more interactions on Facebook.
? Google+ users have uploaded 3.4 billion photos.
? Recruiters spend more time examining a LinkedIn user’s picture than actually reviewing the person’s qualifications.
These statistics show that if you want to break through on the leading social networks you must have an image strategy. Images are easy to consume and eye-catching, and with all of the content on social networks, images break through and get better results than text updates.
Consider joining Instagram and Pinterest
Instagram and Pinterest are two of the quickest-growing social networks and they can be your way to reach new audiences and get results ahead of your competition. Consider joining these networks and participating in the community to reach your audience in a new and interesting way.
Visual marketing is a trend in social media that you just can’t afford to ignore. If you want your business to stay relevant, drive traffic to your website and build shares and likes on social networks, you can’t afford to ignore the power of images in achieving these objectives. ?
Krista Neher is the CEO of Boot Camp Digital. She is an international speaker and social media thought-leader, as well as the author of “The Social Media Field Guide,” “Visual Social Media Marketing” and “Social Media Marketing: A Strategic Approach.”
Accountants can do much more than prepare your taxes. Stephen W. Christian, managing director at Kreischer Miller, offers some ways to work with your accountant to increase profits and grow your business.
Q: Can your accountant add value and help you increase your profitability?
A. Do you consider your accounting fees to be overhead or an investment? One stereotype of an accountant — bean counter, scorekeeper, tax preparer — deserves its connection with minimal value overhead. But the right accountant takes the historical numbers and information available and helps you navigate a path to increased profitability and a return on your investment.
Accounting firms add value in many ways, but one that C-suite executives are reaping the most benefit from revolves around determining and accessing the right information with which to make timely, informed decisions. Think of all the information embedded in a company’s systems — production statistics, time and productivity information, supplier and customer data, margin analyses, etc. Your accounting firm can assist you in harnessing it.
First, determine the information that would put you in the best position to make decisions and monitor activities. What are the key performance indicators? Your accountant can assist you in determining the appropriate indicators. You can then develop the type of dashboard report you would like to review.
Your accounting and technology teams can assist in automatically populating the dashboard reports. You will be able to review critical information on a daily, weekly or monthly basis from any smartphone, tablet or computer. Stop wasting time with the incredible amount of useless information available to all of us. Work with your accountant to focus on utilizing only the relevant data, putting you on a path toward timely, better decisions that lead to improved profitability.
Stephen W. Christian is a managing director at Kreischer Miller. Reach him at (215) 441-4600 or firstname.lastname@example.org.
When you’re a powerhouse player in your industry, the key to success is often the ability to step back and take stock of who you are, where you are and where you’re going. Sometimes, an existential approach is intuitive; it’s easier to self-reflect when you’re beginning a new venture or making a monumental change.
But what about when you’re experiencing success? Taking stock when you’re on top is far from redundant; in fact, figuring out where your accomplishments have come from makes you more likely to duplicate them. Here are some suggestions for seizing the moment and sizing up your business.
Don’t agonize — organize
Rather than rely on the year’s end to inspire a big-picture appraisal, set quarterly dates to dissect core activities, finances, human resources and sales/marketing strategy.
Not only will it save you from feeling overwhelmed by the immensity of an annual assessment, but it will help you reassess and realign continuously, which can help make transitions more seamless — especially when they are unexpected.
Turn projects into projections
A few years after launch, Petplan transitioned to being an entirely paperless organization. Initially the transition was a success, and operationally, the project had already paid dividends.
But as time went by, it became apparent that we needed to create a tangible product for our clients. We decided to publish a glossy pet health publication for policyholders to help communicate our company’s core values and add a “touchable” touchpoint to our customer communications.
To our delight, Fetch! magazine was an overnight success and has grown its readership from 50,000 to more than 250,000 in just a few short years. The magazine project led to some new projections about ad revenue, and we eventually began selling space in its pages.
Because of big-picture thinking in small, regular doses, we were able to take an internal project, build off it to create something new, and then leverage that to add to the company’s overall profitability.
Find a fresh set of eyes
When trends need to be changed, getting back on the right track is essential, but sometimes the people closest to the “problem” are the least likely to be able to solve it. One of the best ways to chart a new course is to bring new talent to the table. This could mean finding a mentor, hiring a new executive or perhaps finding a visionary investor.
When we launched Petplan, we focused almost exclusively on sales, and all of our customer communications reflected that. Soon, it became clear that we needed to rework strategy to include not just sales but customer service.
To help us course-correct, we turned to Vernon W. Hill, the founder of Commerce Bank. Vernon joined our board as chairman and brought extraordinary experience around customer satisfaction to the company.
This year, in an effort to evolve partner veterinarian relationships, we’ve placed a heavyweight at the helm of our veterinary channel: Steve Shell. A fresh set of eyes can invigorate vision — whether it comes from the people above you or the employees you entrust with managing the daily activities of your business.
When you commit to unplugging from the daily drudgery to assess the scope of your operations a few times throughout the year, you’ll soon find that the only place to go is up.
Natasha Ashton is the co-CEO and co-founder of Petplan pet insurance and its quarterly glossy pet health magazine, Fetch! — both headquartered in Philadelphia. She holds an MBA from the University of Pennsylvania Wharton School of Business. She can be reached at email@example.com.