Transcript
Page 1: February 2012 Business Magazine
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Long-Term Care Planning: One of the most critical needs for business executives and their families / Page 12

LOESEL-SCHAAFINSURANCE AGENCY, INC.

BUSINESSM A G A Z I N E

VOLUME XXV, NUMBER 2 FEBRUARY 2012Manufacturer & Business Association

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Blue Ocean Strategy Center

FEATURES > 3 / SpotlightCharles Scalise, president and CEO of the Housing and Neighborhood Development Service (HANDS), talks about the history of Erie’s St. Joseph Apartments as well as the growing needs of the aging population and working family caregivers.

6 / WaldameerPlanning your next gathering or employee picnic? See what’s new for this family friendly amusement park in 2012.

12 / Long-Term Care InsuranceLoesel Schaaf insurance specialists explain why long-term care planning is one of the most critical needs for business executives and their families.

27 / Central PA LinkSPECIAL SECTION! Learn about legislative updates as well as new member highlights and upcoming events in the central Pennsylvania region.

DEPARTMENTS > 4 / Business Buzz18 / HR Connection

21 / On The Hill22 / HR Q&A28 / People Buzz

EDITORIAL > 9 / Health Matters Why more employers are turning to health incentive accounts to help their employees and their bottom line.MICHAEL PARKINSON, MD

11 / Legal BriefThe realities of paying for nursing care: Are you prepared?SHAUN B. ADRIAN

25 / Blue Ocean StrategyThe more likely change is to occur, the more some individuals will fight it. Discover how tipping point leadership can help you overcome these organizational hurdles.ANGIE ANGUS

21

February 2012

Blue Ocean Strategy Center

Read on the Go!For the most current Business Magazine updates, visit our new Website, www.mbabizmag.com, fan us on Facebook and follow us on Twitter!

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< TRAINING CATALOG / Insert Find out about the upcoming professional development and computer classes available at the Manufacturer & Business Association, in our new quarterly Training Catalog!

February 2012 > www.mbabizmag.com > 1

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Page 7: February 2012 Business Magazine

SPOTLIGHT > by Karen Torres

VOL. XXV, NO. 2 FEBRUARY 2012

© Copyright 2012 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The maga-zine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

Mission StatementThe Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors

Manufacturer & Business Association2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org

Manufacturer Yvonne Atkinson-Mishrell& Business John ClineAssociation Board Dale Deistof Governors Bill Hilbert Jr. Timothy Hunter Dan Ignasiak Richard Knight J. Gordon Naughton John B. Pellegrino Sr., P.E. Dennis Prischak Lorenzo Simonelli Phil Tredway Jerry Wertz

Editor in Chief Ralph Pontillo [email protected]

Executive Editor John Krahe [email protected]

Managing Editor & Karen Torres Senior Writer [email protected]

Communications Jessica Crocker Specialist [email protected]

Contributing Shaun B. Adrian Writers Angie Angus Michael Parkinson, MD

Cover Photography Ron Stephens La Mirage Studio 814/835-1041

Advertising Sales Patty Welther 814/833-3200 or 800/815-2660 [email protected]

Design, Production Printing Concepts Inc. & Printing [email protected]

ON THE COVER: Loesel Schaaf Vice President Ed Althof, who oversees the agency’s Long-Term Care Education and Planning Program, discusses policy options with Joy and Ross Rectenwald of Rectenwald Architects, Inc. For full-story, see page 12.

Tell us about the history of St. Joseph Apartments.St. Joseph Apartments is HANDS’ flagship property located in Erie’s Frontier neighborhood. The building featuring 202 apartment homes was first built as an orphanage just before the Great Depression in the late 1920s. The need for the orphanage was considerable at the time, but as the economy and society changed after WWII, the need for the orphanage diminished. By the mid-1960s, it was no longer in use. In 1976, HANDS presented an application to HUD for an affordable apartment complex to re-purpose the building. The building was reconditioned stem to stern and a 90-unit addition was begun in 1977. St. Joseph Apartments opened in 1979 with a ribbon-cutting attended by former First Lady Rosalyn Carter. The facility was a model project at the time because it not only provided apartments for seniors, but also many amenities such as an onsite beauty/barber shop, convenience store, arts and crafts studio, and an all-faith chapel to enhance the quality of life of the residents. In 2006, the complex underwent a second major renovation that updated all of the apartments and added a café and new library area with computers.

How has St. Joseph Apartments helped fill a void in the Erie community?With more than 200 residences, St. Joseph Apartments is one of the largest independent living facilities in Erie County. Most apartments are rent-subsidized, yet St. Joseph offers an array of resources and services comparable to some higher-end communities that let residents remain independent as they age.

When is it a good time to sit down with your senior family members and discuss future care and housing options?Start now, and talk often. Find out what your parents or grandparents would like to do when living in their own home becomes too much to manage. Identify what milestones would indicate when it’s time to get in-home services or to downsize and move to a smaller place. Spend some time discussing where your senior family might want to live. Close to you? Close to their current neighborhood? Close to their place of worship? Moving into a senior living community is a very emotional experience and needs to be carefully addressed.

Do a little research and find out what services are available in your community. One of the best places to begin with is the Area Agency on Aging. Every county in the United States has one. To find yours, visit www.n4a.org. Erie County residents can take advantage of the Guide to Services offered by the Independent Council on Aging and the online resource directory, ErieSprout.com.

Talk with your parents or grandparents about living wills and medical power of attorney. The Five Wishes is a popular living will format you can find online and in print versions available at many agencies for seniors. It’s a great tool to help families work through some of details. These can be difficult conversations to begin. But reassure your family member these discussions are to outline their wishes for the future.

What are some ways that employers can assist this growing employee population?Many employers have become accustomed to providing flexibility to employees for younger families who are expecting or are raising children. This same flexibility can be offered to those who are caring for their elderly family members as well. Daily support includes flextime, paid time off, and the ability to take a leave of absence. An additional employee benefit is to identify and locate emotional support and resources such as an employee assistance program that provides a wide array of counseling, information and support to the ever-changing lives of the work force. Additionally, caring for elders requires some form of financial planning by meeting with a financial planner or locating workshops and seminars in the community to learn about long-term care insurance and other financial planning options.

For additional resources, read Scalise’s full interview on www.mbabizmag.com.

Charles Scalise is the president and CEO of the Housing and Neighborhood Development Service (HANDS), a private not-for-profit headquartered in Erie, Pennsylvania that provides planning and development of affordable housing communities, property management and coordination of support services in northwestern Pennsylvania. In 2011, HANDS’ 45th anniversary, the organization had six senior living developments, including its newest addition, Ridgebury Apartments, and flagship facility, St. Joseph Apartments, 517 Maryland Avenue. Scalise recently spoke with the Business Magazine about the history of the complex as well as the growing needs of the aging population and working family caregivers.

February 2012 > www.mbabizmag.com > 3

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ACCUSPEC ELECTRONICS, MATRIC HONORED AccuSpec Electronics, LLC was recently named the “Manufacturer of the Year for 2011” by the Pittsburgh Business Times, marking the first time a company in northwest Pennsylvania has won the award.

The Erie-based provider of Electronic Manufacturing Services (EMS) was selected as the winner in the category of businesses with 100 to 299 employees based on a number of factors, including: increased year-over-year employment; significant revenue growth; significant investments in equipment, a new quality management system and employee training; and utilization of advanced supply chain management systems among others.

Additionally, Matric, an electronic contract manufacturer headquartered in Seneca, Pennsylvania, was named a

finalist in the “Manufacturer of the Year, 300 to 999 Employees” category. Accord-ing to President Rick Turner, Matric has increased its manufacturing capabilities with a nearly $3-million investment in new machinery, while cutting inventories and costs.

For information, visit www.matric.com or www.accuspecelectronic.com.

NORTHWEST SAVINGS BANK PLANS NEW DOWNTOWN BUILDING PROJECTNorthwest Savings Bank has purchased the former Knights of Columbus Building and the Diamond Block/Sal Dicembre Building in downtown Warren, Pennsyl-vania. The bank, which plans to hold a public meeting on its construction plans, is now in the planning stages of expand-ing its corporate operations there.

According to Steve Bell, vice president, Properties and Facilities, current plans

call for the new facility to enclose ap-proximately 50,000 square feet of floor space on four stories, including the basement. The new space will be primar-ily offices and meeting areas for 280 Northwest workers.

Headquartered in Warren, Northwest Savings Bank holds $8 billion in assets and operates 169 community banks in Pennsylvania, New York, Ohio and Maryland.

For more information, visit www.northwestsavingsbank.com.

QUALITY LIFE SERVICES TURNS TRASH TO TREASUREButler, Pennsylvania-based Quality Life Services (QLS), which offers various long-term care and living communities in Butler, Mercer, Armstrong, Venango, Westmoreland and Fayette counties, recently began a recycling program to benefit the company’s nonprofit organi-

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zation, “Don’t Stop Dreamin’.”

Begun in 2005, the nonprofit has since granted more than 30 “dreams” for resi-dents of QLS nursing homes – everything from attending a Ted Nugent concert to co-piloting a helicopter ride above Butler County.

For more information, visit www.qualitylifeservices.com.

WILLIAMSPORT-AREA FIRMS RECEIVE DEP GRANTSTransport Designs Inc., of Montoursville, Pennsylvania, and Cromaglass Corp. of Williamsport, Pennsylvania, each received $7,500 grants from the state Department of Environmental Protection for energy efficient modifications to their buildings.

This is the second year that Transport Designs, a manufacturer of custom motorhomes, toterhomes and enclosed trailers, has received a DEP grant. Both

Transport and Cromaglass, which manu-factures a variety of wastewater treat-ment systems, plan to update their build-ing lighting systems with lower-wattage T-8 bulbs, which consume about half the energy of regular bulbs.

Visit www.transportdesigns.com or www.cromaglass.com for information.

LORD CORPORATION UNVEILS NEW WEB PORTALLORD Corporation, a leader in the management of motion, vibration and noise, and a supplier of adhesive prod-ucts, headquartered in Cary, North Carolina, with facilities in Erie, Cambridge Springs and Saegertown, Pennsylvania, has announced a new Web portal, “In-vent with LORD,” to support its existing Open Innovation program. The new Web portal will increase the pace of innova-tion, in targeted areas, by improving LORD Corporation’s ability to leverage outside resources.

According to the company, Open Innovation is a research and development concept that acknowledges the impor-tance of using external experts to assist companies with product design.

“Invent with LORD” will make it easier for external idea generators to submit ideas to LORD Corporation. The portal can be accessed through LORD Corporation’s website, LORD.com/innovation/invent-with-lord.

Once an invention, technology or product idea is submitted to LORD Corporation, it will go through a review and evaluation process to determine if it meets the crite-ria for further development. Anyone can submit suggestions through the portal including people from academia, indus-try, research institutions and consulting organizations. Customers and suppliers also are encouraged to partake in the Open Innovation process.

DEPARTMENTS > Contact: Jessica Crocker

February 2012 > www.mbabizmag.com > 5

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New for 2012• Addition of second railroad train• Moderization of Comet Coaster with magnetic braking system, allowing for addition of second coaster train• New “Happy Smiles” children’s ride for the whole family• Addition of second loading area for the popular Whacky Shack

Each of these additions increase ride capacity to help keep lines shorter on busy days, enabling visitors to enjoy more riding and even less waiting.

PLUS: • All new arcade • Two new midway games • Three new live family musical shows

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New for 2012• Addition of second railroad train• Moderization of Comet Coaster with magnetic braking system, allowing for addition of second coaster train• New “Happy Smiles” children’s ride for the whole family• Addition of second loading area for the popular Whacky Shack

Each of these additions increase ride capacity to help keep lines shorter on busy days, enabling visitors to enjoy more riding and even less waiting.

PLUS: • All new arcade • Two new midway games • Three new live family musical shows

Why have a picnic at Waldameer?• Excellent opportunity to get to know your employees and their families, and for them to get to know you.• Great way to celebrate your company’s anniversary or other milestones.• Makes a great reward/incentive: production goals, safety, etc.

Interesting Facts about Waldameer• 10th oldest continuously operating amusement park in the country.• One of the few family amusement parks remaining that offers free parking and free family admission into the Amusement Park.• Your beautiful private picnic grove is yours for the entire day. • The Ravine Flyer II is ranked 6th best wooden coaster in the entire world!

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100 State Street MacDonaldIllig.com

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In recent years, health insurance companies have embraced new tactics to try to improve health and reduce medical costs. The best of these strategies (known as health incentive accounts) includes financial incentives designed to encourage members to exhibit healthy behaviors and become more involved in their health-care decisions.

The basic point driving these new plans is that healthier, more engaged individuals — as both consumers and as patients — will live longer, lead better and more productive lives, and will usually save money in the process. With chronic conditions most affected by lifestyle choices and responsible for 80 percent of health-care costs, this approach makes the most sense for the long-term benefits of both employer and employee.

How Health Incentive Plans WorkHealth incentive plans (or, consumer-directed health plans) must be done the right way to improve health and reduce unnecessary medical care costs for all members — not just the young and healthy. What makes it work is that employees are better able to understand and improve their health care, and partner with their doctor for health-care decisions — with money they “see” and “feel” is their own.

Employees can earn money for their health incentive account and reduce out-of-pocket expenses by completing specific healthy behavior and care engagement activities. To understand their health needs, employees take a confidential personal health risk assessment that helps pinpoint risk factors specific to them. Based on aggregated data, this also enables the

employer to offer targeted solutions for managing their health conditions through wellness and disease management programs.

The health incentive account approach can be effective because it combines a high-deductible health plan with a program that rewards healthy lifestyles and better medical decision-making in partnership with one’s physician. The high-deductible component encourages employees to be more active health-care consumers. The healthy lifestyles reward component enables employees to have the opportunity to earn financial rewards for activities that have been designed to improve their health.

Why Employers Like It These plans appeal to employers because they focus on the health and productivity of employees. The programs work to improve health and reduce unnecessary medical care and productivity faster and more effectively than “traditional” health plans.

A plan that rewards healthy behavior is a way of telling your employees that you care about their current and possible future health risks. These plans are popular because employers want their employees to lose fewer days to illness. These plans provide employees with the tools to change poor health habits and adopt new, healthier ones for life. Well-designed studies of effective consumer-directed health plans with funded accounts and incentives show greater preventive care, healthy behaviors, care engagement and lower cost than other types of plans — even for patients who are high users with chronic medical conditions.

When a health incentive plan is tied with a consumer-directed health plan, it allows an employer to offer a less expensive health plan, but make up the difference in benefit coverage by giving employees a way to earn extra money to cover out-of-pocket costs.

Consumer-directed health-care plans reward consumers to take charge of their health and health care by promoting personal responsibility and cost-conscious decision-making. Increasing employee engagement gives them “more skin in the game” but with enhanced support. By aligning both responsibilities and rewards for healthier behaviors, more engagement in their care decisions, and greater awareness of the costs of their options, employees do make better choices.

For more information on health incentive accounts, visit www.upmchealthplan.com.

Health Incentive Accounts Help EmployeesTake Charge of Their Health, Lower Costs

Health MattersEDITORIAL > by Michael Parkinson, MD

Michael Parkinson, MD, is senior medical director of Health and Productivity, UPMC Health Plan, which is part of the integrated partner companies of the UPMC Insurance Services Division. These include UPMC Work Part-ners, LifeSolutions, UPMC for You (Medical Assis-tance), Askesis Develop-ment Group, Community Care Behavioral Health and E-Benefits – and which offer a full range of insurance programs and products.

February 2012 > www.mbabizmag.com > 9

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The “golden” years of retirement arrive and life is grand until an unexpected change in health or medical condition changes everything. Suddenly, the possibility of leaving home and moving to a nursing home becomes a harsh reality, both emotionally and financially. Approximately 70 percent of Americans who reach retirement age will need some level of long-term care services during their lives. While more than half of those going into nursing homes will have stays of fewer than 90 days, those who remain in the nursing home will stay an average of two and a half to three years. The truth is, the longer you live, the greater the likelihood you will require long-term nursing home care.Sticker ShockThe average cost of nursing home care in Pennsylvania is around $260 per day (medical supplies and consumables are extra). Put another way, the cost is $7,800 per month or $93,600 per year. Contrary to popular belief, Medicare is not the source of paying for an “indefinite” nursing home stay. In reality, there are three ways to pay for long-term nursing home care: 1) private pay, 2) long-term care insurance, and 3) Medicaid (the “source of last resort”).As the name suggests, “private pay” means the money comes out of your wallet. At $93,600 a year, what kind of effect does that cost of care have on your life savings? If you are married, the nest egg needs to be large enough to cover both the nursing home cost and the cost of maintaining the home (and living

expenses) for your spouse. Some people do not think they need to plan for long-term care because, if and when the time comes, they expect to rely on their family to take care of them. Unfortunately, this expectation is rarely practical. While some may be able to depend on immediate family to help provide care in their homes, providing the necessary level of care can take an enormous physical and emotional toll on the family members.Long-Term Care InsuranceThis type of insurance can help pay for the long-term care or reimburse you for all or part of the long-term care cost. The two primary reasons for buying long-term care insurance are: 1) to insure receiving the appropriate level of care if you become chronically ill or disabled, and 2) to protect assets and savings for your and your spouse’s needs, and to leave an inheritance to your children. Whether you can or should buy long-term care insurance will depend on a variety of factors, including age, health, premium costs, assets you intend to preserve, and overall retirement goals. The best time to purchase long-term care insurance is before you need it. Some employers are now offering group long-term care insurance as an employee benefit. (See this month’s feature story on long-term care insurance on page 12 for additional information.)MedicaidCreated in 1965, Medicaid (called “Medical Assistance” in Pennsylvania and often referred to as “MA”) is a program based on financial need. It is the only public benefits program

that pays for nursing home care. In general terms, you are required to “spend down” your assets and savings (except certain exempt assets, such as a home) to $2,400 before qualifying for MA. Married couples are permitted to retain a higher level of assets, as long as one spouse is healthy enough to live at home. There is a harsh penalty when you give away assets in order to qualify for MA. Assets that are transferred within 60 months of applying for MA (known as the “look back” period) create a penalty period during which the individual is ineligible for MA.Long-term care may be one of the most overlooked retirement planning issues. If a nursing home becomes the reality, how will you pay? Although you do not have to plan for the future, you do have to experience it. For more information, please contact Shaun B. Adrian at MacDonald Illig at 814/870-7758 or [email protected].

Shaun B. Adrian is a senior partner at MacDonald Illig and a member of the firm's Trusts and Es-tates Group. He con-centrates his practice in the areas of estate planning, estate and trust administration, and elder law.

Legal BriefHow Do You Pay If a NursingHome Becomes The Reality?

EDITORIAL > by Shaun B. Adrian

February 2012 > www.mbabizmag.com > 11

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Long-Term Care Planning: One of the most critical needs for business executives and their families

Architect Ross Rectenwald, AIA, has had ownership in Rectenwald Architects, Inc. since 1985 and employs 11 full-time and three part-time employees. He has worked hard to grow the company while raising a family with his wife, Joy.

The Millcreek Township couple, both 58, have three grown children, two grandchildren and are planning for the future. They recently enrolled in a long-term care insurance policy for themselves and have added the enrollment option for all Rectenwald employees and their extended families.

“Joy and I have seen the effects of the aging process firsthand. I felt now was the time because it was a benefit I could offer my employees through an office plan and also be able to take advantage of myself,” Rectenwald says. “Because the median age in the firm is very young, we got much better premium rates on the group plan and everyone had the opportunity to add their spouses if they chose to do so.”

What is Long-Term Care?According to Erie-based Loesel Schaaf Insurance Agency, long-term care (LTC) is the need for ongoing care as the result of a disability, critical illness, cognitive impairment or simply the effects of aging.

“LTC is not about being in a nursing home but how to care for that person, primarily in his or her own home, when they are unable to care for themselves,” explains Loesel Schaaf Vice President Ed Althof, who oversees the agency’s Long-Term Care Education and Planning Program in conjunction with the Manufacturer & Business Association (MBA). “Such care could include bathing, dressing or eating, for example, the daily custodial needs that we may take for granted.”

Research shows that about 40 percent of those receiving long-term care today are between the age of 18 and 64. In most cases, this is the result of an auto or sporting accident, disability, stroke, early-onset of Alzheimer’s, or other critical illness.

For those individuals 65 and older, the U.S. Department of Health and Human Services estimates that more than 70 percent of them will need LTC at some point in their lives.

Why? Experts say advances in medicine are allowing individuals to live much longer than before. Those who are 65 today can expect to live another 19 years on average, and living well into the 90s or beyond is becoming more common.

“Ultimately,” notes Althof, “the biggest risk we face is not dying but living a long life and perhaps needing custodial care for an extended period of time. These expenses are not covered by medical insurance or Medicare.”

Are the Consequences Acceptable?LTC is not as much about the person in need of care, or how it will change his or her life. It’s really about the impact on those around them.

Typically, a spouse and/or adult children attempt to provide care themselves in order to preserve income and assets; many times, the burden falls to a single, willing child. “Such caregiving can be extremely problematic due to distance, juggling work

LOESEL-SCHAAFINSURANCE AGENCY, INC.

Loesel Schaaf’s long-term care (LTC) insurance specialists provide employers and their employees with a better under-standing of LTC. Today, an increasing number of employers are offering the ability for employees to purchase LTC at discounted rates.

Loesel Schaaf President Doug Loesel and Vice President Ed Althof

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schedules, multiple jobs, parental and other responsibilities,” says Althof. “Unfortunately, the unintended consequences could lead to illness and deteriorating relationships between siblings.”

In addition, paying out of pocket (self-funding) for custodial care can have a devastating effect on the best thought-out retirement plan. Families need to ask themselves how they plan to maintain their lifestyle and ongoing financial responsibilities. Other issues to consider are liquidity, unnecessary taxation, market timing, and income and estate preservation.

Research shows the cost of providing care in any setting is expensive.

The Genworth 2010 Cost of Care Survey found that the annual median cost of a nursing home (private room) in Pennsylvania was $90,338, while an assisted living facility was $34,920. Home health aide services for in-home care were $20 per hour, while an LPN was $46 per hour.

“If you needed care today, how would you handle those costs?” asks Althof. “Where would the money come from? Barring a catastrophic event now, the real concern is with future costs, which are expected to double every 15 years. So as you plan for the cost of future care, please keep that in mind.”

Limited AlternativesMany people believe that Medicare and Medicaid will pay for long-term care. However, these programs are not intended to pay for LTC and, when applicable, are very limited in scope and highly restrictive.

In fact, the only ways to pay for LTC are self-funding, with LTC insurance, or a combination of the two. “While LTC insurance may not be suitable for everyone, it is important that everyone has a LTC plan. Don’t wait until you are in your 60’s to start thinking about this. It’s not too early to consider planning while you are in your 40’s or 50’s,” says Althof. “And, when appropriate, selecting insurance as part of your plan should be an informed decision.”

Currently, the Long-Term Care Education and Planning Program offered through the MBA provides discounts on LTC insurance for employers.

“LTC insurance differs widely in plan design, coverage and cost,” explains Althof. “Knowing all your options is key, so it’s important to consult someone who is knowledgeable, experienced and specializes in this specific type of planning.”

The Loesel Schaaf Insurance Agency’s LTC specialists work with multiple and respected insurance carriers and can help you and your employees determine if LTC insurance is appropriate. These specialists will then design the right plan at the right premium, and fully explain how the coverage will work when it is needed so there will be no surprises.

To learn more or to schedule an appointment, please contact Ed Althof, CLU, CEBS, CLTC at 814/833-5433, toll free at 877/718-9935, or email [email protected]. The agency also offers a wide range of other personal and commercial insurance products.

For Seniors:AARP Auto & Home * Medicare Supplements * Financial & Estate Planning * Annuities

For All Individuals:Auto * Home * Health * Life * Disability * Financial Planning

For Businesses:Employee Benefits * Worksite & Voluntary * Commercial Insurance * Workers Compensation * Succession Planning

Learning about and planning for long-term care can help you protect your family’s financial future.

LOESEL-SCHAAFINSURANCE AGENCY, INC.

February 2012 > www.mbabizmag.com > 13February 2012 > www.mbabizmag.com > 13

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Blue Ocean Strategy Center

Page 20: February 2012 Business Magazine

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Certified Supervisory Skills Series Course I 4/19 and 4/26 Course II 4/4 and 4/11 Course IV (St. Marys) 4/17 and 4/18 Course IV (Warren) 4/3 and 4/10 Course IV (Williamsport) 4/4 and 4/5 Course V (Warren) 4/24 and 5/1 Course V (Williamsport) 4/25 and 4/26

Leadership for Team Leaders Course IV (Warren) 4/12

Food Safety Certification 4/16

HR Essential Certification Series: Compensation & Benefits (Grove City) 4/26 Discrimination & Harassment 4/19 Discrimination & Harassment (Grove City) 4/26 Employment Law (Grove City) 4/25 Interviewing & Hiring (Grove City) 4/25 Terminations (Grove City) 4/25

ComputerAccess 2007/2010 Level I 4/25Access 2007/2010 Level III 4/19Excel 2007/2010 Level I 4/10Excel 2007/2010 Level II 4/24

e-Learning: Excel Basics (10 to 11 a.m.) 4/12e-Learning: Excel Intermediate (2 to 3 p.m.) 4/18e-Learning: Excel Advanced (2 to 3 p.m.) 4/26e-Learning: Office 2010 New Features (2 to 3 p.m.) 4/12e-Learning: PowerPoint Advanced (10 to 11 a.m.) 4/26e-Learning: Word Basics (10 to 11 a.m.) 4/18

Professional DevelopmentCertified Supervisory Skills Series Course I 3/7 and 3/14 Course I (Meadville) 3/27 and 4/3 Course III (St. Marys) 3/20 and 3/21 Course III (Warren) 3/6 and 3/13 Course III (Williamsport) 3/14 and 3/15

Leadership for Team Leaders Course II (Warren) 3/1 Course III (Warren) 3/22

Lean Operations: Champion Training 3/15, 4/12 and 5/17

Six Sigma - Greenbelt: Certification & Implementation 3/13, 4/10 and 5/15

Food Safety Certification 3/19

HR Essential Certification Series: Compensation & Benefits (St. Marys) 3/22 Discrimination & Harassment (St. Marys) 3/22 Employment Law 3/15 Employment Law (St. Marys) 3/21 Interviewing & Hiring (St. Marys) 3/21 Terminations (St. Marys) 3/21

ComputerAccess 2007/2010 Level II (Two Days) 3/29 and 4/5

Access 2007/2010 Level I 3/15Excel 2007/2010 Level II 3/21 Excel 2007/2010 Level III 3/28

e-Learning: Excel PivotTables (2 to 3 p.m.) 3/20e-Learning: Excel Advanced (2 to 3 p.m.) 3/27e-Learning: PowerPoint Basics (10 to 11 a.m.) 3/20e-Learning: PowerPoint Intermediate (10 to 11 a.m.) 3/27

QuickBooks 2010 Level I 3/16

Page 21: February 2012 Business Magazine

MayProfessional Development

Certified Supervisory Skills Series Course I 5/15 and 5/22 Course II 5/17 and 5/24 Course II (Meadville) 5/1 and 5/8 Course III 5/16 and 5/23 Course V (St. Marys) 5/8 and 5/9

Leadership for Team Leaders Course V (Warren) 5/3

Food Safety Certification 5/21

HR Essential Certification Series: Compensation & Benefits (Williamsport) 5/24 Discrimination & Harassment (Williamsport) 5/24 Employment Law (Williamsport) 5/23 Interviewing & Hiring (Williamsport) 5/23 Terminations (Williamsport) 5/23 Terminations 5/17

ComputerAccess 2007/2010 Level III 5/31Excel 2007/2010 Level I 5/9Excel 2007/2010 Level II 5/23Excel 2007/2010 Level III 5/3Excel 2007/2010 Level III 5/30

Access 2007/2010 Level II (Two Days) 5/10 and 5/17

QuickBooks 2010 Level II (Half Day) 5/11

e-Learning: Excel Basics (10 to 11 a.m.) 5/29e-Learning: Excel PivotTables (10 to 11 a.m.) 5/15e-Learning: PowerPoint Basics (2 to 3 p.m.) 5/29e-Learning: Publisher (10 to 11 a.m.) 5/8e-Learning: Windows 7 Basics (2 to 3 p.m.) 5/15e-Learning: Word Intermediate (2 to 3 p.m.) 5/8

TrainingRegional Locations

All courses are held at the MBA Conference Center in Erie, unless otherwise noted.Erie: MBA Conference Center 2171 West 38th StreetButler: Fairfield Inn Route 8 at Route 422Corry: Corry Higher Ed Council 221 North Center StreetDuBois: Best Western Plus Inn & Conference Center 82 N. Park PlaceFranklin: Franklin Industrial & Commercial Development Authority 191 Howard StreetGrove City: Hampton Inn 4 Holiday Blvd., MercerKittanning: Armstrong Educational Trust 81 Glade DriveMeadville: Hampton Inn Route 322St. Marys: Community Education Council 4 Erie Avenue, Suite 200Warren: Warren/Forest Higher Education Council Curwen Building, 2nd Floor 185 Hospital DriveWilliamsport: MBA Central Division Office 2401 Reach Road

Onsite TrainingGet more flexibility and convenience with our onsite training options.

Join the hundreds of companies who’ve found our onsite training options to be the most cost-effective and convenient choice for group instruction.

• Flexible and convenient scheduling • Customized instruction • Eliminate travel expenses

Whether you need a half day or full day of professional development or computer training — let our expert trainers come to you!

Course RegistrationContact Ann Miaczynski at 814/833-3200, 800/815-2660 or [email protected] to register or for more information on upcoming courses.Online registration also is available at www.mbausa.org.

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Celebrating 70 yearsbut also the company’s environmental imprint by reducing its liquid paint usage. From recycling programs to major transformations in manufacturing processes, the corporate philosophy includes doing what is necessary to meet 21st century sustainability expectations.

ProductsRidg-U-Rak provides an unlimited array of storage options. Whether deep and dense storage systems like Push-Back, Drive-In, and Pick Modules, or Narrow-Aisle and Deep-Reach systems, design engineers can layout storage arrangements to meet a customer’s unique load, throughput and capacity requirements. Ridg-U-Rak also provides small storage systems for pallet loads or hand-stacked cartons, and o!ers replacement parts that interchange with competitive racks. Many specialty storage options are available, including a rack-sup-ported crane system to store large dies and tools.

Seismic Base Isolation SystemWarehouse storage racks have proven to be particularly vulnerable to earthquake damage, and new FEMA guidelines mandate rack struc-ture integrity during a moderate to severe earthquake. Ridg-U-Rak took a quantum leap in the design of storage racks for earthquake-prone areas when it developed and patented the Seismic Base Isolation System, a design that will resist rack damage and product spillage through the most powerful anticipated earthquake that the country will ever experience. Because of this innovated work, Ridg-U-Rak received the Excellence for Innovation award by the National Earthquake Conference.

HistoryAt the end of WWII, there was a growing need to modernize and ex-pand the nation’s warehousing capabilities. Entrepreneurial business people began to develop innovative storage rack designs to "ll those

needs. Company after company was springing up, headed by owners who carved out a mar-ket share by providing a high level of personal service. In recent decades, however, most of those early family owned companies have been replaced by holding companies, invest-ment bankers or corporate raiders. Virtually no companies like Ridg-U-Rak still exist.

Ridg-U-Rak was a minor player in those early years. Although limited in marketing vision and hampered by a lack of manufac-turing automation, Ridg-U-Rak had some survival strengths that helped the company to continue to grow. Today, as the opera-tion celebrates its 70th year of serving the storage rack market, Ridg-U-Rak is commonly

acknowledged as a company built on Integrity and Service, guided by the able leadership of its president and CEO, John B. Pellegrino.

CapabilitiesRidg-U-Rak now has two plants in North East, Pennsylvania, cover-ing 160,000 square feet, with a production capacity of more than 100,000,000 pounds of "nished steel products per week. It remains one of the largest storage rack manufacturers in North America and is still a family owned business.

One of the key contributors to the company’s success has been the in-creased talent base of its sta!, with the ability to completely manage large projects from design and code compliance, through manufac-turing, to "nal installation and customer approval.

Major capital investments in its manufacturing plants have been instrumental in improved productivity. Recent investments include the latest rolling mill equipment, a total shop layout re-vamping, an automated beam manufacturing line, and a 600-foot-long state-of-the-art powder coating line, which not only improves product quality,

John B. Pellegrino Sr., P.E.President and CEO

120 South Lake StreetNorth East, PA 16428Phone: 814/725-8751 or 866/479-7225Website: www.ridgurak.com

February 2012 > www.mbabizmag.com > 15

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CHALLENGE: Dana’s business started in his kitchen, but his sights were set much higher. His customers’ payment options, however, were limited to just cash and checks, which was having a negative impact on his cash fl ow.

SOLUTION: Dana had the Cash Flow Conversationwith his PNC banker, who used her industry knowledgeto meet Dana’s specifi c needs. It began with PNC Merchant Services®,1 which allowed him to accept credit cards and process payments more effi ciently, as well as get next-day funding2 on transactions. Also, Dana started using PNC Online Banking to get a complete view of his fi nancial picture, 24/7.

ACHIEVEMENT: Desserts by Dana just had its bestyear ever, and Dana now has the cash on hand totake advantage of new opportunities every day.

DANA HERBERT / OWNERDESSERTS BY DANA

SPECIALTY DESSERTS AND CATERING SINCE 2003 10 EMPLOYEES

BUILDING A BUSINESS FROM SCRATCH

ACCELERATE RECEIVABLES

IMPROVE PAYMENT PRACTICES

INVEST EXCESS CASH

LEVERAGE ONLINE TECHNOLOGY

ENSURE ACCESS TO CREDIT

TO WATCH DANA’S FULL STORY scan this code or go to pnc.com/cfoand see how The PNC Advantage for Retail Businesses can help solve your business challenges,too. Call 1-877-CALL-PNC

or visit a PNC branch to start your own Cash Flow Conversation today.

The person pictured is an actual PNC customer, who agreed to participate in this advertisement. Desserts by Dana’s success was due to a number of factors, and PNC is proud of its role in helping the company achieve its goals. All loans are subject to credit approval and may require automatic payment deduction from a PNC Bank Business Checking account. Origination and/or other fees may apply. 1 Merchant Services are provided by PNC Merchant Services Company and

are subject to credit approval. PNC Merchant Services is a registered trademark of The PNC Financial Services Group, Inc. 2 Next-day funding on card transactions processed by PNC Merchant Services when deposited into your PNC Business Checking account. PNC and ACHIEVEMENT are registered marks of The PNC Financial Services Group, Inc. (“PNC”). BBK-7057 ©2012 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC

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February 2012 > www.mbabizmag.com > 17

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HR ConnectionMORE WORKERS PLANNING TO PUSH BACK RETIREMENT DUE TO FINANCESAccording to a survey on retirement and health, 54 percent of pre-retirees, who are now planning to retire later than they were when they were in their 40s, say the primary reason for the delay is that they do not feel they can afford it financially. The Retirement and Health Poll conducted by NPR, the Robert Wood Johnson Foundation and the Harvard School of Public Health also finds that 51 percent of people who say that they will never fully retire say they do not feel they can afford to retire financially.

STUDY: EMPLOYERS WITH OLDER EMPLOYEES MORE LIKELY TO PROVIDE PENSIONSA study issued by the Investment

Company Institute reports that com-panies with an older, higher-earning work force are more likely to offer retirement plans than those with younger, lower-income employees. According to “Who Gets Retirement Plans and Why, 2010,” workers at small employers that sponsor retire-ment plans are as likely to participate as workers at large employers sponsor-ing retirement plans.In addition, the study shows that 39 percent of workers ages 21 to 29 worked for employers that sponsored retirement plans in 2010, compared to 57 percent of workers ages 55 to 64. In addition, 23 percent of workers in the lowest quintile of annual earnings ($14,000 or less) worked for employers with retirement plans, compared with 74 percent of workers in the highest quintile ($60,000 or more).

2978 West 12th StreetErie, PA 16505814/833-6510

NLRA POSTING MANDATE POSTPONED UNTIL APRIL 30, 2012In response to a federal court’s request, the National Labor Relations Board (NLRB) has once again post-poned the effective date of its final posting rule requiring employers to notify employees of their rights under the National Labor Rights Act (NLRA). The new posting requirement date is now April 30, 2012. The Manufacturer & Business As-sociation will continue to keep you updated on this matter. In addition, in the event the NLRB proceeds with the posting requirement, the Associa-tion will update its all-inclusive federal labor law poster to include the new NLRB posting and make it available for purchase as soon as possible. For com-pliance questions, contact the Associa-tion’s Legal and HR Services Division at 814/833-3200 or 800/815-2660.

18 < www.mbabizmag.com < Fenruary 2012

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DEPARTMENTS > Contact: Stacey Bruce

When visiting member companies, I like to have conversations with the veteran workers. They are very candid with their opinions and I frequently walk away with a renewed respect for them.

Based on these conversations, below is a wish list from these employees. Those of you in leadership roles would be wise to take these suggestions to heart if you want to motivate this critical segment of your work force.

1. Listen to Us. Your older workers have been around. They have seen a lot of things and can be a great resource. If you don’t listen to them, you are potentially losing out on great information. That only hurts you.

2. Recognize Us. The need for recognition does not go away with age. They work hard and they are proud of their accomplishments. They appreciate a

sincere pat on the back. If you ignore their efforts, their performance will slip and ultimately that makes you look bad. So it’s in your best interest to recognize them at every opportunity.

3. Ask Us for Help. Organizations work hard to motivate and engage their young people. I get it; they are the future. However, in the short term, the daily problems that arise may demand the experience and savvy that veteran employees can provide. They have been there and probably have experienced the very problem you are trying to solve. At the very least, team them up with the younger people to help expedite a solution. Ignoring them just doesn’t make good business sense.

Today’s older workers have what it takes to help your business prosper. All they need is a chance to prove it.

With more than 15,000 participants trained, the Manufacturer & Business Association is the leading resource for professional development and computer training in the area. For more information, please contact me at 814/833-3200, 800/815-2660 or email [email protected]. I also encourage you to visit the Association’s website, www.mbausa.org, and view this month’s Training Catalog to learn more about our upcoming offerings.

Veteran Employees Can be a Valuable Resource

Dan Monaghan is the director of Training at the Manufacturer & Business Association.

February 2012 > www.mbabizmag.com > 19

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Governor Tom Corbett “Pennsylvania’s goals for the new year are likely to pivot on self-reliance, free markets and a government that, by necessity, must spend less and somehow accomplish more…,” states Corbett. “The trick is to not fall into the bad habits of past decades – raising taxes to make up for a lack of incoming tax dollars … (or) postpone the inevitable. It is to deal with it and move on to the future.”

“There is no joy to be found in cutting programs, but there is guaranteed disaster in not cutting when the money’s not there,” Corbett says of his second budget. “In terms of programs, we can and must accomplish, a sensible solution to transportation funding woes must be found. There will have to be a short-term fix, if only to keep the state from standing still. But a long-term solution, perhaps less reliant on the gas tax, is in order. We have to find a new way to fund transportation and my administration is studying the options.”

“Look, also, for some movement on privatization. The competition of the private sector almost always trumps the bureaucracy of the public sector,” he says, pointing to the Liquor Control Board’s monopoly on liquor sales. “It makes no sense economically and, more important, it runs directly against the principle that free markets make free people.”

Senate President Pro Tempore, Joseph Scarnati (R-Clearfield) The goal for 2012 “is to continue the core principles of Senate Republicans by creating a fiscally sound, conservative budget that reflects an understanding of the economic realities of Pennsylvania families and businesses,” explains Scarnati. “I am confident that all parties will see the merit in agreeing to a final budget that seeks not to create a financial burden on taxpayers and businesses alike, but to ensure sustainability and growth amongst our citizens.”

“In addition,” he adds, “it is important that we find a

prudent transportation funding package that recognizes the necessity of fixing our deteriorating roads and bridges. Not only will this help to spur a sluggish economy, it will aid in averting a potential crisis.”

It also “is imperative we resume discussion of establishing a balance in promoting the economic opportunities of the Marcellus shale industry while at the same time protecting our communities and citizens where the drilling occurs...”

House Majority Leader, Mike Turzai (R-Allegheny) Private Sector Job Creation. According to Turzai, “We are looking at bills that will help level the playing field for job creators, encourage businesses to stay here and create family sustaining jobs.”

Privatization of Wine and Liquor Sales. “Alcohol sales are not a core government function; government should be serving the people, not serving them alcohol,” states Turzai. “Allowing the private sector to open stores and other retail/wholesale outlets will create jobs, including union jobs. There is an opportunity to bring many jobs through privatization, decrease the size of government, and build a strong tax base while eliminating the often-mocked Johnstown Flood Tax once and for all."

Marcellus Shale Impact. According to Turzai, “We will work with the Senate and governor’s office to conclude a strong Marcellus impact bill to ensure the safety of people and the environment.”

Transportation System and Infrastructure Upgrades. “No one denies our roads and bridges, as well as our sewer and water systems have, in some ways, been neglected in recent years and needs maintained and repairs – and the recent floods have highlighted the problem,” adds Turzai. “We will look at ways to strengthen public transportation, roads, bridges and infrastructure.”

For more information on these and other key legislative issues, please visit the Association’s Government Affairs web page at www.mbausa.org.

State Legislators, Governor Corbett Tackle Top Issues for New Year

OntheHill DEPARTMENTS > Contact: Lori Joint

Last year was a contentious time for the legislature and then-newly elected Governor Tom Corbett. Republicans regained control of the House for the first time since 2006, and the only constant from the previous year was that Republicans were in control of the Senate, albeit with a new face, Lieutenant Governor Jim Cawley, presiding. Yet, the long-awaited Fair Share Act was passed, ending the practice of joint and several liability in Pennsylvania, while school choice, the Marcellus Shale Impact Fee, and infrastructure transportation continue to remain mission critical for 2012. Here, the governor and state legislators address these top issues.

February 2012 > www.mbabizmag.com > 21

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MY COMPANY UNDERSTANDS THE IMPORTANCE OF SUCCES-SION PLANNING BUT HOW CAN WE ENCOURAGE THE OLDER WORKERS WHO HOLD POSI-TIONS TO SHARE THEIR INSTITU-TIONAL KNOWLEDGE, WITHOUT MAKING THEM FEEL LIKE WE ARE PUSHING THEM OUT THE DOOR? One tool your organization may find effective is a mentoring program. A mentoring program can provide benefits to mentee and mentor alike. For the mentees, they can gain career development insight and other profes-sional skills. For mentors, it sends a signal that the mentor is an example of excellence within the company. This type of acknowledgment can serve to further engage these employees. Mentoring programs can, and should, differ from one organization to the

next, depending on the goals and organizational setup.

I OFTEN FEEL AS THOUGH OUR WORKERS ARE AT ODDS WITH ONE ANOTHER DUE TO THEIR GENERATIONAL DIFFERENCES. HOW CAN I FIX THIS PROBLEM? This is a common workplace problem. Currently, there are three generations within the work force and, as with any other diversity issue, such as age, gen-der, ethnicity, and race, understanding those differences is an important part to organizational effectiveness. The solution is to be able to effectively address and take advantage of the dif-ferences of each generation. Some options include facilitating a mentoring between different aged employees to encourage more cross-generational interaction. Employ-ers also can offer different working

options like telecommuting so that the focus is on the results employees produce rather than on how they get it done. Another plan would be to accommodate different learn-ing styles. Older workers may favor more traditional and static training methods, while younger workers may prefer more interactive, technology based forms of learning. Finally, keep your employees engaged by provid-ing regular educational and training opportunities.

HAVE A LEGAL QUESTION? GET ANSWERS.The Manufacturer & Business Associa-tion knows that urgent employment issues can arise at a moment’s notice. As a member, call our certified HR specialists and labor and employment law attorneys at 814/833-3200 or 800/815-2660 for counsel on a broad range of workplace-related issues.

LEGAL Q&A

22 < www.mbabizmag.com < Fenruary 2012

Page 31: February 2012 Business Magazine

Tammy Lamary is Labor & Employment Counsel for the Manufacturer & Business Association’s Legal Services Division.

The American work force has continually grown older, to the point where many employees are choosing to work into their senior years. This is a good thing for most employers as older workers typically bring many crucial assets to the table, such as experience, better attitudes, work flexibility and an interest in learning new things. However, there are also issues for employers to consider when it comes to effectively managing an increasingly aging work force, such as:

1. Age and Disability Discrimination. Workers over the age of 40 are protected from discrimination on the basis of age by the Age Discrimination in Employment Act of 1967 (ADEA). Not only can we expect to see a rise in age discrimination claims, but also disability related claims brought under the Americans with Disabilities Act of 1990 (ADA). Should

chronic health problems and age-related disabilities arise, employers must make reasonable accommodation if possible. It is imperative that HR be educated on the latest laws and the trends in discrimination-based litigation.

2. Medical Costs. As Americans live and work longer, they are likely to use more health-care services, which drives up employer-sponsored medical benefits costs. These costs are largely tied to more frequent and costlier ailments as workers age. The implementation of better wellness programs and similar initiatives may help curb this issue.

3. Succession Planning. Succession planning should be at all levels within your organization — not just the CEO — enabling your company to handle the coming challenges of an aging work

force. Fortunately, many people want to work past traditional retirement age, which means older workers have the chance to keep working and sharing their knowledge and training with younger employees.

For more information on these issues, please contact me at 814/833-3200, 800/815-2660 or [email protected].

Prepare Now for the Aging Work Force

DEPARTMENTS > Contact: Tammy Lamary

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3302 West Lake Rd. Erie, PA 16505 814-835-0330LifeServicesAssistedLiving.com

February 2012 > www.mbabizmag.com > 23

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Providing you world class service comes naturally to us. We hire top graduates. We reinvest in our people through continuing education. We attend national conferences and affiliate with the elite McGladrey Alliance.

At Schaffner, Knight, Minnaugh & Company, P.C., exceptional service is more than just a promise – it’s our culture. It’s in our DNA.

When you want to upgrade your DNA, give us a call.

Schaffner, Knight, Minnaugh & Company, P.C. ... World Class Service for World Class Clients.

Certified Public Accountants

IT’S IN OUR DNA.

Certified Public AccountantsThe McGladrey Alliance is a premier a! liation of independent accounting and consulting " rms. The McGladrey Alliance member " rms maintain their name, autonomy and independence and are responsible for their own client fee arrangements, delivery of services and maintenance of client relationships. The McGladrey Alliance is a business of RSM McGladrey, Inc., a leading professional services " rm providing tax and consulting services. McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clients’ business needs. McGladrey, the McGladrey logo and the McGladrey Alliance signatures are used under license by RSM McGladrey, Inc. and McGladrey & Pullen, LLP.

www.skmco.comCertified Public Accountantswww.skmco.com

Check out our NEW Website! Offices:Erie, PA1001 State Street, Suite 1300Erie, Pennsylvania 16501814-454-1997

Jamestown, NY500 Pine Street, Suite 14Jamestown, NY 14701716-483-0071

Dubois, PA351 Aviation WayReynoldsville, PA 15851814-375-2700

Providing you world class service comes naturally to us. We hire top graduates. We reinvest in our people through continuing education. We attend national conferences and affiliate with the elite McGladrey Alliance.

At Schaffner, Knight, Minnaugh & Company, P.C., exceptional service is more than just a promise – it’s our culture. It’s in our DNA.

When you want to upgrade your DNA, give us a call.

Schaffner, Knight, Minnaugh & Company, P.C. ... World Class Service for World Class Clients.

Certified Public Accountants

IT’S IN OUR DNA.

Certified Public AccountantsThe McGladrey Alliance is a premier a! liation of independent accounting and consulting " rms. The McGladrey Alliance member " rms maintain their name, autonomy and independence and are responsible for their own client fee arrangements, delivery of services and maintenance of client relationships. The McGladrey Alliance is a business of RSM McGladrey, Inc., a leading professional services " rm providing tax and consulting services. McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clients’ business needs. McGladrey, the McGladrey logo and the McGladrey Alliance signatures are used under license by RSM McGladrey, Inc. and McGladrey & Pullen, LLP.

www.skmco.comCertified Public Accountantswww.skmco.com

Check out our NEW Website! Offices:Erie, PA1001 State Street, Suite 1300Erie, Pennsylvania 16501814-454-1997

Jamestown, NY500 Pine Street, Suite 14Jamestown, NY 14701716-483-0071

Dubois, PA351 Aviation WayReynoldsville, PA 15851814-375-2700

Page 33: February 2012 Business Magazine

EDITORIAL > by Angie Angus

Angie Angus is the manager of BOS Programs and Support Services.

This article is part of a series that features excerpts from the international best-selling book, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, by authors W. Chan Kim and Renée Mauborgne. Tipping point leadership allows you to overcome organizational hurdles during the visual execution phase of Blue Ocean Strategy. While executing your strategy, there are four organizational hurdles that need to be overcome: cognitive, resource, motivational and political. Here we’ll address the final hurdle – the political one.All companies and organizations have organizational politics that can hinder accomplishing regular company activities, much less the implementation of an entirely new strategy. The more likely change is to occur, the more some individuals will fight it. Blue Ocean Strategy suggests, “to overcome these political forces, tipping point leaders focus on three disproportionate influence factors: leveraging angels, silencing devils, and getting a consigliere on their top management team.” Angels are the people that have the most to gain from the new strategy and should be very supportive. Devils have the most at risk during the strategic shift, so they are likely to work against the process. A consigliere is a person within the organization that is well respected, knows the views of their co-workers, and is able to identify those who will work toward a smooth implementation and those who will sabotage it. Here we’ll examine each of those influencers in more detail:Consigliere Most executives will look for skill sets that represent specific departments within the company when building their top management team. They may look for expertise in marketing, operations, finance and technology. A tipping point leader also will look for a consigliere to speak honestly regarding the attitude of the employees and how they view the new strategy. This person would be able to identify “angels,” individuals who

will support the initiative, as well as the “devils” who will block attempts to move forward.Bill Bratton, the former commissioner of the New York Police Department (NYPD), had to overcome many political hurdles. To assist with this challenge, Bratton placed John Timoney on his upper management team. Timoney had been a policeman for more than 20 years, had received numerous awards, and was both respected and feared for his dedication to the NYPD. Timoney identified the top staff that would provide obstacles to the success of the new policing strategy, which led to staff changes that cleared the way for a smooth transition. Angels and Devils Angels in the organization are automatically on board with the new strategy since they have the most to gain from it. Work quickly to enlist them and help spread the word to the masses about the need for the strategy shift. The devils, on the other hand, feel the most at risk with changing strategies. Prepare to battle with them by anticipating their arguments and your responses. Use only facts and reasoning to win your arguments. It is difficult to dispute an irrefutable fact. For example, one of the biggest political hurdles that the NYPD needed to overcome with the new strategy was the court system. The courts did not support the new policing policies that Bratton wanted to implement. They argued that by arresting people for lesser crimes, such as prostitution and public drunkenness, that the courts would become overloaded. To get past this hurdle, Bratton built a coalition of angels to create an offensive position in favor of the enforcement of lesser crimes. The mayor, district attorney, and jail managers agreed that it was important and publicly backed Bratton. The city’s leading newspaper also joined the coalition and it made it almost impossible for the courts to fight the strategy anymore. Case in point: Tipping point leaders use disproportionate influence through the help of their consigliere and angels to remove the political hurdles to successfully execute their new strategy. Next month: Build execution into your strategy through fair process. If you are interested in learning more about how your company can explore blue oceans of opportunity, please visit mbausa.blueoceanstrategy.com or contact me at [email protected].

Tipping Point Leaders Remove Political Hurdles

February 2012 > www.mbabizmag.com > 25

Page 34: February 2012 Business Magazine

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For more information or to schedule a tour, call 814-332-9707 or visit our web site at www.wesbury.com.

Page 35: February 2012 Business Magazine

Association Offers Flexibility, Convenience of Onsite TrainingNo one can argue the value of training. Enhancing the skills of your employees just makes good business sense. What can be frustrating, however, is finding the time to do the training. Vacation schedules, business demands and short staffing can all conspire to make sending your employees to public classes nearly impossible.

The answer to this dilemma is onsite training. You pick the days, times and location of the training, and the MBA’s training staff shows up to do it. In addition, because the participants are all from your organization, the MBA’s trainers can dig down to find the topics that are of special interest to you. The training you need gets done — at your convenience — not theirs.

Give the Association a call at 814/833-3200 or 800/815-2660 to discuss your unique training needs. Don’t put off until tomorrow what can easily be done today.

“The Ralph S. Alberts Co. has always been a good company to work for, but we wanted it to be a great company. So we appointed an employee from within the company to be a conduit between hourly employees, management and owners to move this process forward…

“After close consideration, we started using the Manufacturer & Business Association to begin our training process in October 2009 and have since continued it yearly, and plan to do so in the future for all employees. At this point, we have utilized a total of four team leadership seminars and a supervisory training seminar here at the Ralph S. Alberts Co. Company President Ed Alberts and Vice President Seth Alberts also participated in a seminar with the employees, which gave us all tremendous insight into working together as a team.”

— Betty Balzer, Employee Liason/Team and Training Facilitator, Ralph S. Alberts Co.

The Manufacturer & Business Association is pleased to welcome the Bridge Tavern & Restaurant as a new member. Built in 1890 and officially established as a tavern in 1951, the Bridge Tavern & Restaurant is a staple in the South Williamsport, Pennsylvania community.

Owned by Alex Kadenas and Kami Shams, the “Bridge” is located at 222 South Market Street.

To learn more about the "Bridge," visit www.bridgetavernrestaurant.com

New Member Spotlight

CentralPA Link2012 to be Exciting Legislative Year2011 Wrap-up: The MBA Government Affairs Department held a legislative luncheon in June with Congressman Tom Marino (R-10th District) and, in August, Senator Pat Toomey (R-Pennsylvania) participated in a business roundtable with the MBA Central Division membership.

Based on those discussions and the upcoming elections, it looks like 2012 is going to be another exciting legislative year. After redistricting the state Senate, state House and U.S. Representatives’ districts, many members will adjust to having a new state senator, state House member and/or representative in Congress. There also will be various elections, including president, one U.S. senator from Pennsylvania and all of the state’s 18 members of Congress. For more information on state legislative topics, see the On the Hill section of this issue on page 21.

Looking Ahead: The MBA Central Division Legislative Advisory Committee is busy planning events for 2012. Keep an eye out for a U.S. Senate Candidate Forum in the spring and a candidate debate in late summer/early fall. Other events with state and federal legislators are in the works. There will be plenty of opportunities to meet the candidates and ask questions of the incumbents.

Visit www.keepproducing.org and www.mbausa.org for more information on the Association’s Government Affairs Department, the 2012 elections and upcoming events.

Lori Joint is the director of the Association’s Government Affairs Department. Contact her at 814/833-3200, 800/815-2660 or [email protected].

DEPARTMENTS > Contact: Karen Torres

February 2012 > www.mbabizmag.com > 27

Page 36: February 2012 Business Magazine

CLARK-MCKIBBEN EXPANDS SALES STAFF Erie, Pennsylvania-based Clark-McKibben Safety Products, a distributor of all things safety, from safety glasses, high visibility clothing and air quality monitors to facility signage, has hired two sales associates.Geoff Hirz, a graduate of Edinboro University with more than 10 years of sales experience, will be working with the First Aid division of the company.

Kelly Welser, also an Edinboro University graduate, has joined the company as an outside sales repre-sentative. Welser’s 18 years of experience includes supply side manufacturing and planning as well as customer service, sales and consulting.

PROCHEMTECH INTERNATIONAL ANNOUNCES PROMOTIONProChemTech International, Inc., headquartered in Brockway, Pennsylvania, has promoted Riley Broughton from account manager to general manager at Chemical Plant #2, Apache Junction, Arizona. As general manager, Riley will be responsible for Chemical Plant #2 production, coordination of the Arizona District field sales force, and management of the Arizona District field service operation.

ProChemTech International, Inc. is a water management firm that provides innovative, integrated water management programs for boiler, cooling tower, process, and wastewater systems to commercial,

government and industrial custom-ers in 16 states. The majority of the chemical products and equipment supplied in the water management programs are self-manufactured in plants located in Apache Junction and Brockway.

LOCAL ATTORNEY NAMED TO PA COALITION AGAINST DOMESTIC VIOLENCE Erie attorney Dennis Williams, who has been in private practice for nearly 40 years, specializing in criminal defense and domestic law, has been appointed to the Board of Directors for the Pennsylvania Coalition Against Domestic Violence (PCADV).The PCADV is a private, nonprofit organization that aims to eliminate domestic violence, secure justice for victims, and enhance safety for families and communities at the state and national levels.

WCTL RADIO ANNOUNCES NEW SALES MANAGER Inspiration Time, Inc. in Erie, Pennsylvania, has hired Amy Swonger as sales manager of WCTL-FM. Swonger recently served as business development manager at the Meadville Area Federal Credit Union and has a bachelor’s degree in radio/TV broadcast journalism from Edinboro University of Pennsylvania.

HILL, BARTH & KING LLC WELCOMES SUPERVISORHill, Barth & King LLC (HBK), Certified Public Accountants and Business Consultants has hired CPA Travis C. Fox as a supervisor.Most recently, Fox worked as a supervisor at a medium-sized CPA

firm in Meadville. He also has extensive experience with corp- orate and individual tax preparation and consulting, and retirement plan audits.

HBK, which currently ranks as the 82nd largest public accounting firm in the nation, has more than 280 professional and support staff mem-bers who serve clients in 11 offices located throughout Pennsylvania, Ohio and Florida.

ADELPHOI USA TO HONOR INDUSTRIAL SALES & MFG. PRESIDENT AND CEOJames Rutkowski Sr., president and CEO of Millcreek Township-based Industrial Sales & Manufac-turing, Inc. (ISM), will be presented with the Arnold Palmer Spirit of Hope Award on May 20, during the Adelphoi USA Spirit of Hope Reception & Auction at the Latrobe Country Club in Latrobe, Pennsylvania. Past honorees include Arnold Palmer, Bill Mazeroski, Art Rooney II, Dick Groat, Bill Hillgrove and The Fred Rogers Family for their positive impact on youth.Headquartered in Latrobe, Adelphoi USA is a private, nonprofit agency that assists youth and families with over-coming social, emotional and behav-ioral difficulties. The organization has programs in 30 Pennsylvania counties, serving more than 750 youth and fami-lies daily, and more than 2,500 children each year.Founded in 1967, ISM is a manufacturer and supplier of quality machined, fabricated and assembled components. The company also has been instrumen-tal in helping to make the late John Kanzius’ cancer-destroying device, the Kanzius Non-invasive Radio Wave Treat-ment project – a treatment without any side effects – a reality.

People Buzz

28 < www.mbabizmag.com < Fenruary 2012

Page 37: February 2012 Business Magazine

EDITORIAL > Contact: Karen Torres

AREA BUSINESS LEADERS TO SERVE ON GOVERNOR-APPOINTED MANUFACTURING COUNCIL The Manufacturer & Business Association recently announced that Governor Tom Corbett has named area business leaders Samuel “Pat” Black, president and CEO, Erie Management Group, Erie; David Barensfeld, president and CEO of Ellwood Group Inc., Ellwood City; Jim Rutkowski Jr., vice president, Indus-trial Sales & Manufacturing, Inc., Millcreek Township; and Greg Booth, CEO of Zippo Manufacturing Company, Bradford, to a new public-private council that will identify and prioritize top issues that can sustain and advance manufactur-ing in the Commonwealth.

Led by the Team Pennsylvania Foundation, the council consists of 23 members from a cross-section of manufacturing, including heavy machinery, minerals, pharmaceuticals, plastics, steel and textiles. The group will focus on specific subjects, such as: taxes and the regulatory climate in Pennsylvania; talent and innovation; international markets; energy costs; efficiency; and research and development.

The council, which is co-chaired by Department of Community and Economic Development Secretary C. Alan Walker and Carlos Cardoso, chairman, president and CEO of Kennametal Inc., Latrobe, will meet over a six-month period, which started this January. The council then will issue a report to the governor and General Assembly that includes policy suggestions and a strategy to help Pennsylvania remain competitive in today’s global economy. Manufacturer & Business Association President Ralph Pontillo is also a council member.

2323 Edinboro Road | Erie, PA 16509 | www.SpringhillErie.org | (814) 860-7042 | (800) 755-6784 toll-free

“Peace of Mind”Adult Children Lecture Series • Springhill Senior Living Community

Please call to reserve your seat for both dates today!Call 814-860-7042 or toll free at 800-755-6784

Tuesday, February 21 & Tuesday, March 13 • 6:00 - 8:00 p.m. Our guest speakers will discuss how family members can help their loved ones transition from their home to a retirement community with helpful topics such as making financial decisions as well as the benefits of retirement community living.Please enjoy a boxed dinner on us during the presentation as you learn more about the many choices Springhill has to offer.

February 2012 > www.mbabizmag.com > 29

Page 38: February 2012 Business Magazine

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