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BUSINESSM A G A Z I N E

VOLUME XXII, NUMBER 6 JUNE 2009Manufacturer & Business Association

GEORGE W. BUSH43rd President of the United States

highmarkbcbs.com.

®

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<fIIGHMARK® An Independent Licensee of the Blue Cross and Blue Shield Association

A Message from the Chairman… Mark Kulyk, president of Rogers Brothers Corporation 3

104th Annual Event Speaker George W. Bush… 43rd President of the United States 18

A Wave of Excitement… MBA Named Official Blue Ocean Strategy Center in the United States 25

Oceans of Opportunity… Q&A with the Authors of Blue Ocean Strategy 31

Powering On... How the Energy Cooperative of Pennsylvania, Inc. 61 Will Provide Businesses with the Lowest Possible Energy Costs

Featured Companies Decision Associates 10 Loesel-Schaaf Insurance Agency 48 Saint Vincent Health System 78

A Presidential Performance… "e Young People’s Chorus of Erie 71

2009-2010 Board of Governors 74

Company Profiles Bayfront Convention Center 36 Bernstein Law Firm, P.C. 43 BNY Mellon 41 Conifer Realty, LLC 83 Culbertson, Weiss, Schetroma and Schug, P.C. 59 Electronic Communication Services Inc. 39 Highmark Blue Cross Blue Shield 17 J. H. Bennett Companies 15 Pirrello Enteprises Inc. 55 Ridg-U-Rak, Inc. 5 UPMC Health Plan 7

Manufacturer & Business Association Board of Governors John Cline Dale Deist Timothy Hunter Dan Ignasiak Richard Knight Mark C. Kulyk John B. Pellegrino Sr., P.E. Dennis Prischak Timothy G. Shuttleworth Lorenzo Simonelli Sue Sutto Philip Tredway

Mission Statement !e 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 Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org

Editor in Chief Ralph Pontillo [email protected]

Executive Editor John Krahe [email protected]

Managing Editor & Senior Writer Karen Torres [email protected]

Contributing Writers Jessica Crocker Juleann Landis !e Washington Speakers Bureau

Advertising Sales Lori Maus Joint 814/833-3200 or 800/815-2660 [email protected]

Cover Photography Courtesy of the Washington Speakers Bureau

Additional Photography Bruce Bennett Photography 814/899-1161

Ron Stephens La Mirage Studio 814/835-1041

Contributed Photography INSEAD Blue Ocean Strategy Institute

Department of Defense

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

© Copyright 2009 by the Manufacturer & Business Associa-tion. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in !e 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 su"cient postage. !e magazine accepts no responsi-bility for unsolicited manuscripts or artwork. !e Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. !e 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.

Table of Contents

June 2009

June 2009 > www.mbausa.org > 1

Manufacturer Business

www.mbausa.org

~ Blue Ocean Strategy Center

CHALLENGINGand

EMPOWERINGIndividuals

EDINBORO ERIE MEADVILLE ONLINE.EDINBORO.EDU | Dr. Jeremy D. Brown, President One of the 14 universities in Pennsylvania's State System of Higher Education

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TMark C. Kulykis chairman of the Manufacturer & Business Association Board of Governors and president of Rogers Brothers Corporation in Albion, Pennsylvania.

!ese last few months have been the most challenging times for our nation and its employers in two generations. !e meltdown of the financial markets and subsequent lending freeze have sent recessionary shockwaves through the global economy. Few, if any, operations have been immune from these financial hurdles, and many business owners have been faced with di"cult decisions as they try to navigate the waters of a deteriorating economy.

In coming to grips with the long-term realities of the slowdown, many businesses have turned to cost-containment and work-force reduction to stave o# problems down the road. No, it hasn’t been easy, but it has prompted business leaders to take a hard look and make bold strategic moves with the people, equipment and services that they currently have. In some sense, this economic crisis has served as a sharp reminder of how important it is to work smarter when so much is on the line.

According to a recent survey, CEOs are, in fact, searching for new ways to innovate and fine-tune internal operations by improving the quality of company culture, internal communications and customer service. !ese fundamental changes are vital to helping companies stay on track and unearth new opportunities for the future.

And that’s where your Association membership is so valuable.

!e mission of the Manufacturer & Business Association is to assist our members in achieving their business goals. !is is why we have taken major steps in the last few months to o#er new services that will directly enhance our members’ operations, as you will soon discover in the pages of this year’s Annual Report.

In 2009, the Association became the o"cial “MBA Blue Ocean Strategy Center” in the United States. Blue Ocean Strategy is based on the best-selling book, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, a business paradigm that promotes creating new market space or “blue oceans” rather than competing in an existing industry.

At the Association, our team of professional trainers has undergone rigorous instruction in the principles of Blue Ocean to provide the tools and examples that any company or organization, of any size, anywhere, can apply to its operations. !e ultimate goal is to help these organizations learn and implement the principles of Blue Ocean Strategy — to create new markets and new demand by simultaneously pursuing ways to

increase value and decrease costs for the customer. It is a culture that we ourselves at the Association, as you will soon discover, have adopted in order to better serve you.

And that’s not all. !is year, as many of our members worry about the removal of the electric rate caps throughout the Commonwealth, the Association is pleased to announce the formation of the Energy Cooperative of Pennsylvania, Inc. !is nonprofit, member-owned entity, will combine members’ buying power to provide immediate savings on gas, electricity and renewable energy.

Under the leadership of President J. David Bell, former Manufacturer & Business Association chairman and president/CEO of Erie DriveTrain, this cooperative will give participating members a wide choice of suppliers in order to o#er the best rate for your natural gas and electric energy needs. By participating in this cooperative, members will be able to calculate their current utility costs with our costs and see the approximate amount of savings – a resource unheard of until now.

As a member of the Association, we hope you will take advantage of these new o#erings and continue to utilize the many impressive services available through your membership. !ese include access to our state-of-the-art Conference Center, Government A#airs government relations specialists, monthly Business Magazine, discounted Insurance Services, our regionally recognized computer and professional development training courses, attorney-supported HR & Legal services, and much more.

!e Manufacturer & Business Association is, indeed, the premier business-to-business networking resource in the region. We take great pride in our Annual Event, which will mark its 104th anniversary this year. I hope to see you on June 17 in Erie for what is expected to be an unforgettable evening with entertainment by the talented Young People’s Chorus of Erie, and a truly memorable keynote address by our nation’s 43rd president, former Commander-in-Chief George W. Bush.

Sincerely,

Mark C. Kulyk

A Message from the Chairman


- Manufacturer

nn & Business ASSOCIATION www.mbausa.org


"The success, the strength, and the standard of living in America has been achieved only because of the free enterprise system. It has made many people wealthy, but it's also given many, many millions of people the quality of life never before equaled in world history. If we allow government to restrict and eventually socialize the system, our country and our way of life will rapidly decline ... along with our freedom. Protect free enterprise and keep our country strong."

Rid

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Company

PROFILERidg-U-Rak, Inc.120 South Lake StreetNorth East, PA 16509

Phone:814/725-8751

Fax:814/725-5659

E-mail:[email protected]

Web Site:www.ridgurak.com

Number of Employees:350

Date Founded:1942

Company Description:Ridg-U-Rak has a 67-year history of integrity in supplying storage rack systems. As a designer, manu-facturer and integrator of Material Handling and Distribution Systems, the company provides the latest in storage technology throughout the United States, as well as other parts of the world.

Under President and CEO, John B. Pellegrino Sr., P.E., the company has attained a prominent indus-try role in the many engineering advances in rack safety and de-sign over the years. In April 2008, Ridg-U-Rak’s patented Seismic Base Isolation System was awarded first place honors for “Excellence for Innovation” in the earthquake mitigation category at the National Earthquake Conference held in Seattle, Washington. Ridg-U-Rak received the award for developing a product that would reduce the risk of product loss, damage and personal injury around storage rack installa-tions during seismic events.

With more than 350 employees and 200,000 square feet of manufactur-ing space, the company utilizes automated, computer-controlled production lines and is capable of producing over 2 million pounds of rack-storage systems per week. Painting and finishing lines com-ply with environmental guidelines, and throughout the manufacturing process, strict quality policies are followed to ensure a reliable finished product.

Ridg-U-Rak has long been engaged in reducing its environmental imprint. From recycling programs to major transformations in manufacturing processes, the corporate philosophy is to do what is necessary to meet 21st century sustainability expecta-tions.

Markets Served:A company of many products and

capabilities, Ridg-U-Rak provides a complete line of Selective Racks, Drive-In Racks, Push-Back Racks, Cantilever Systems, Shelving, Flow Racks and many specialty products. A nationwide network of more than 125 professional material-handling distributorships is complemented by the company’s regional sales managers, who work with customers and distributors to bring the factory to the field. In addition, Ridg-U-Rak provides field engineering and installation services with factory supervision.

Certifications/Awards:Rack Manufacturers Insti-tute “R-Mark” Certification. Awarded to manufacturers who are committed to the principles of continuous improvement in product design and application, and are guided by RMI/ANSI Standards.2006 Norman L. Cahners Award. Presented by Material Handling Education Foundation, Inc., Ridg-U-Rak was recog-nized for ongoing dedication to its scholarship program since 1989, and as an outstanding example of commitment and return to the Industry.2008 Excellence for Innova-tion Award. The National Earth-quake Conference, chaired by four earthquake and emergency consortia groups, presented Ridg-U-Rak this award for developing a product that would reduce the risk of product loss, damage and personal injury around storage rack installa-tions during seismic events.

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Innovation Drives Growth

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PROFILEUPMC Health PlanOne Chatham Center112 Washington PlacePittsburgh, PA 15219

Phone:Phone:412/434-1200

Web Site:www.upmchealthplan.com

Number of Employees:1,500

Date Founded:1996

Company Description:UPMC Health Plan began operation as Best Health Care of Western Pennsylvania, a Medicaid HMO in 1996. In 1997, the company filed for commercial HMO and point-of-service prod-ucts and changed its name to UPMC Health Plan.

UPMC Health Plan, which has its headquarters in Pittsburgh, is now the second-largest health insurer in Western Pennsylvania. It is owned by the University of Pitts-burgh Medical Center (UPMC), one of the nation’s top-ranked health systems. The integrated partner companies of the UPMC Insurance Services Division – which includes UPMC Health Plan, UPMC Work Partners, EAP Solutions, UPMC for You (Medi-cal Assistance), and Community Care Behavioral Health – offer a full range of group health insur-ance, Medicare, CHIP, Medical Assistance, behavioral health, employee assistance, and work-ers’ compensation products and services to nearly 1.3 million members. Our local hospital and physician network includes UPMC as well as many other providers, totaling more than 80 hospitals and more than 7,600 physicians in a 29-county region.

Through the many primary care physicians, pediatricians, and obstetricians-gynecologists in our outstanding provider network, we offer our members the finest preventive care, based on best practices and the latest medi-cal protocols. This enables us to help our members remain healthy as well as detect any medical problems at an early stage when treatment is more effective and

may prevent such problems from escalating into serious illness.

Markets Served:UPMC serves members in 29 counties of Western Pennsylva-nia as well as in parts of West Virginia and eastern Ohio.

Certifications/Awards:UPMC Health Plan has earned an “Excellent” accreditation from the National Committee for Quality Assurance (NCQA) – the highest honor a managed care company can receive – for its commercial HMO and point-of-service plan, its Medical Assistance plan and its Medicare Advantage plan. The NCQA also awarded UPMC Health Plan its prestigious “Rec-ognizing Innovation in Multicul-tural Health Care Award” for its efforts to reach across cultural divides and provide Health Plan members in Western Pennsyl-vania with culturally appropriate health-care services.

Diane P. Holder, president, UPMC Health Plan


UPMC HEALTH PLAN Where you belong.

upmchealthplan.com.

What’s Inside.Health Promotion

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This managed care plan may not cover all your health care expenses. Read your contract carefully to determinewhich health care services are covered. If you have questions, call Member Services at 1-888-876-2756.

455_3_Healthy_Lifestyle_2008_4_29:455_1 4/30/08 11:00 AM Page 1

After 11 years of management experience in manufacturing facilities in the United States and Mexico, Don Moore knew what it took to run a company, and he had a vision to take that experience, find like-minded professionals in the area, and open a consulting business. Twenty-five years later, Decision Associates has helped hundreds of organizations with strategy, marketing, organizational development and succession planning. And with new clients signing on at a steady clip, the consulting firm has recently expanded their services throughout the Commonwealth and into New Jersey and New York.Now that takes some planning. And Decision Associates knows just how to do it.

What !ey Know.!ey know your industry.!e diverse professionals at Decision Associates perform their due diligence with every client, every time — and that makes all the di#erence. “We research the industry, not just the customer,” Moore says. “We ask questions like ‘What makes this industry tick? What do the best performers look like? Why do people get in trouble in this industry? Who are the customers? Who are the competitors?’ !e answers to those questions are paramount.” !rough their research, the consultants get a sense for what a good company ought to look like in that industry. !en they analyze how the client looks against that model.

!ey know economic development.In today’s competitive business environment, companies need to take

advantage of any assistance that is out there. !e consultants at Decision Associates make it their job to keep their finger on the pulse of what is available.“We work very hard to understand the workings of the economic development systems throughout the area, county, state and federal governments,” Moore notes. “We want to understand the grant programs, the loan programs, the roles and missions of the various agencies. If there is a program out there that would benefit one of our clients, we want to bring it to them.”Most CEOs are so focused on the day-to-day operations of their business, they simply do not have the time to stay on top of agency changes, what is available and what application time limits exist. “!eir attention is on the bottom line, on profit and loss and not on the latest focus of government agencies. Our job is to stay on top of the changes.”

!ey know what methodologies work.With experience comes knowledge. What works. What doesn’t. And why. !e consultants at Decision Associates have put together proprietary methodologies that are used every day to help businesses succeed.“Our methodologies are suited to the types of companies in our region,” says Moore. “Our region is dominated by small- to medium-

Featured Company

Your Planning Partner

Don Moore, founder of Decision Associates

James Ryan, Joseph Gausman, Donald Golding, Susan and Don Moore, and Nancy Bifulco have been assisting companies with their strategy, marketing, organizational development and succession planning for more than 25 years. Absent from the photo: Jim Gehrlein and John Blicha.

10 < www.mbausa.org < June 2009

sized companies, and it is important to recognize they are ‘little’ big companies not ‘mini-me’s.” It is an entirely di#erent structure. !e owners wear a lot of di#erent hats. We put together methodologies for those types of organizations, and then we evolve that.”Because the seasoned professionals at Decision Associates know these three tangible things — your industry, economic development and e#ective methodologies — they can help you write your own success story.But how? !at’s where the four core practices come into play.

What !ey Do.For Moore, three of the four core practice areas that the company focuses on were anything but accidental.“Twenty-five years ago, we very consciously selected strategy, marketing and organizational development to be the bedrock of the organization,” Moore recalls. “Strategy is putting the mark on the horizon — where do you want to go? Marketing is how you get there. Organizational development is who is going to take you there. “If you mismatch any of those three, you will fail. !e right marketing plan, buried in a flawed strategy, will not work in the long term.”Succession planning came later in the company’s history and Moore admits it was opportunistic. “After 18 years of being a trauma center for successions gone wrong, we realized it was important to answer the question of who would take over a business long before it became an emergency.”!e four core practices are designed to help a business grow in excess of its peers and stay on that track year after year after year. Let’s take them apart one by one and see what each piece of the pie looks like.

Where are you going?Strategy.For Decision Associates, strategic planning is all about context.“What we really provide our clients with is the ability to see themselves within the context of their industry and their competitors,” Moore

says. “We force them to leave their insular, internal world and see how they fit into the greater picture.”!rough proven methodologies, Decision Associates takes clients through a five-step “Strategic Planning Process,” which includes Strategic Assessment, Market Definition, Decision Point™ Strategies, Action Plans, and Implementation. !e entire progression is powered by the Predictive Modeling™ System. Clients are able to distill what’s most critical to improving their operations in a five-year span in order to stay in the top 20 percent of their industry, Moore notes.For most clients, Moore finds this process is a reality check. “!ey had no idea how little they truly knew about not only their industry, but also their competitors.” Most importantly, they end out with an executable roadmap to get where they need to be and a real disciplined way to get there.Moore is proud that the real hallmark of any Decision Associates’ strategic plan is that it gets implemented. “Our plans do not sit on the shelf in a binder … they are used.”

How do you get there?Marketing.Marketing seems simple enough — get more people to buy the product you make or to use the service you provide. But marketing is so much more than that and Decision Associates has been helping clients through the marketing maze for decades.Marketing is not just about how to sell more stu# to your current customers, but also how to get more customers and figure out who your customers may be in five years.“We want our clients to have predatory growth — that is not a dirty word in our book,” says Moore. “ ‘How do I take my share AND part of competitor’s share of the market’ is the question we want our clients to ask.”Marketing is also about looking at what you have now that can help >

Don Moore consults with Jim Mando of Sarah Reed Children’s Center.

Joe Gausman and Sue Moore review a report for Mike and John Weber of Smith Provision Co.


your marketing e#orts ... in ways you may not have thought. “From intellectual property to certifications that your company or employees may have, there are untapped reservoirs of marketable things in almost any organization. We are experts at finding those things.”And just as with strategy, Decision Associates has a proven process. !e firm’s “Sales and Marketing Planning Process” includes five steps: Discovery, Marketing Assessment, Decision Point™ Strategies, Action Plans and Implementation, all powered by the Predictive Modeling™ System.“We help you develop realistic and actionable marketing plans that will keep your company on top — now and five years from now,” Moore says.

Who is going to take you there?Organizational Development.You’ve got your mark on the horizon. You have the marketing in place to get you there. Who is going to carry out the plan? Enter the all-important component of organizational development.!e management of human resources is critical to any organization. Training, morale, teamwork, productivity all play a vital role in success. !inking ahead in terms of your personnel can make the di#erence between success and failure. “One of the most important questions we can answer for our clients is, ‘what do they need to look like in five years to enjoy continued growth,’ ” Moore says. “Organizational development is more than names on a chart — it is a key part of strategy. Oftentimes a company will have a great plan in place and the right people to take them there right today, but what about in five years?”!e professionals at Decision Associates don’t put names in the organizational chart, but rather competencies and deliverables. “!en we help them take a look at current sta# and how to best

develop the people they have today so they will fit in those charts down the road.”But what about gaps in the chart? !e consultants also do executive recruiting to fill spots. “Sometimes you need to look outside the company to take the organization to the next level,” Moore notes. “We can find what your company needs to close that hole.”Over the years, Moore discovered that one thing was truly key to organizational development, and the fourth core practice was born — succession planning.

What happens when you aren’t there?Succession Planning.Succession planning used to be thought of as something reserved only for family-run businesses; a plan to transfer a company from parent to child. But no more. According to Moore, “Business continuity is key, whether you are 65 and getting ready to retire; or 40 and wanting to pursue other interests, but keep your business; or 50 and get pulled out of the day-to-day operations for four months due to a medical condition. All three scenarios — and countless others — demand that an executable succession plan be in place. Basically, it is business continuity through management continuity.”Moore’s experience with succession planning “gone wrong” laid a strong foundation for developing a system for succession planning done the right way. “After operating years and years as a trauma center, we did a failure mode analysis and identified 22 failure points in succession planning. We wrote a methodology around how to avoid those failure points.”!at methodology includes analyzing the owner, the industry and the company; then developing a succession model. “We ask what does the successor need to look like? What is it that they need to be able to do? !en we do a gap analysis and list the closeable gaps and the uncloseable gaps. !e closeable gaps are dealt with through additional education and training. !e uncloseable gaps are filled with organizational changes.”After that, a structured blueprint is developed detailing what needs to happen over the course of 24 months.“It is really simple in concept and really simple in execution,” Moore admits. “But we are able to do it because years of experience in the trauma department.”

Jim Mando of Sarah Reed Children’s Center, Don Moore, Peg Bly of Accudyn Products and Jim Ryan.

Jim Ryan meets with Peg Bly of Accudyn.


In fact, Moore’s Succession Planning methodology has caught the eye of the Pennsylvania Department of Community and Economic Development and the Industrial Resource Centers network throughout the Commonwealth. “We have licensed our Decision Point™ methodology to IRCs throughout the state. And we just signed a deal with the New Jersey Manufacturing Extension Program for the entire state of New Jersey. We are their exclusive provider of succession planning.”One additional aspect of Succession Planning that Decision Assoc-iates is known for is something called “maximizing transaction value.”“Succession planning can sometimes take the form of assisting a company that expects to be sold in the future,” Moore explains. “Basically, you will manage a company di#erently if you plan to sell it versus if you plan to keep it. We will spend one to three years helping a company to get itself into position so that the owner can get the maximum selling price.”It sounds simple enough, but the di#erence those one to three years of preparation can make is gigantic. “!e di#erence in transaction price between spending a few years getting your company ready to sell and not spending that time can be 40 percent. When you are talking about multimillion-dollar sales, that gap can be huge. We can help you get the most money possible for your company.”It’s all in the planning.

1540 East Lake Road, Suite 100Erie, Pennsylvania 16511Phone: 814/528-9400Fax: 814/528-9401www.DecisionAssociates.net

Representative clients• Accudyn• Allegheny Tool Mold & Manufacturing Inc.• American Tinning and Galvanizing• Composiflex• Cost E!ective Coatings• Deist Industries• Dr. Gertrude Barber National Institute• E.A. Mundkowsky Finishing• Economic Development Corporation of Erie County• Enterprise Development Center of Erie County• Erie County Bar Association• Erie Regional Chamber and Growth Partnership• Eriez Magnetics• McShane Welding• Molly Brannigans• North Coast Processing/E.D. Smith• Northwest Pennsylvania Industrial Resource Center• Onex• PHB, Inc.• Sarah Reed Children’s Center• School District of the City of Erie• Smith Provision• Spectrum Control• VisitErie

!e Decision Associates Team• Donald W. Moore• Susan S. Moore• Joseph E. Gausman• James T. Ryan• Joseph W. Kloecker• James E. Gehrlein• Donald R. Golding• John M. Blicha• Nancy Bifulco

Decision Associates is more than a consulting firm, but a partner for your business’s future.

June 2009 > www.mbausa.org > 13June 2009 > www.mbausa.org > 13

IYl Decision Associates

ERIE: 814.453.6594 | www.mpbcpa.com | MEADVILLE: 814.724.5890

• 80YEARS and Still Counting •

Make your next movewith the experienced team at

Servicing manufacturers and businessesin Northwest Pennsylvania for 80 years.

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Company

PROFILEJ.H. Bennett Moving & Storage, Inc.Phone: 814/456-5377 or800/542-8668Fax: 814/455-9126Web site: www.jhbennett-moving.com

JHB Records Management, Inc.Phone: 814/456-5377 or800/542-8668Fax: 814/454-7889Web site: www.jhbrecordsmgt.com

GO Mini’s of EriePhone: 814/459-9191Web site: www.gominiserie.com

Headquarters:1705 Raspberry StreetErie, PA 16502

Facility: 40,000 square feet — military ap-proved, 24/7 surveillance and monitor-ing of interior and perimeter

Founded: 1914

Company Description:J.H. Bennett is celebrating 95 years in business, certainly a milestone, but only that. Past success will not guarantee future success. World Wars I and II, the Great Depres-sion, and our current economic cri-sis are but a few of the challenges the company has confronted. We continue to evolve, seeking oppor-tunities, planning for growth, and embracing innovation and change. Our moving customer and our document management customer have also changed … with greater needs and higher expectations.Where once the document man-agement company was an inte-grated component of the moving company, it is now an independent company in itself, controlling and creating the path to success. In-novation will leave the past behind and create new and exciting oppor-tunities to rise above and beyond current expectations.Innovation:The flight from paper to elec-tronic documents is on everyone’s mind. Most people believe scan-ning and converting documents to CDs means digital document management. That is great as a starting point; however, it is only the beginning. Images must be easily organized, indexed, quickly retrieved and archived. Digital document management systems offer a search tool for document retrieval including full text search, template field searches and visual filing schemes that permit users to browse for documents. Supported with the right system, digital docu-ments can be viewed by multiple employees simultaneously, whether they are working in different depart-ments or in different countries. This is where JHB Records Manage-ment comes in. From offsite hard copy storage to conversion, to a fully integrated electronic document process, we will provide a step-by-

step path to maximize the return on your investment and enhance the way you do business.Opportunity:The housing and financial indus-tries have created exceptional stress on the moving industry. New strategies that set us apart from the competition are paramount to our success. Our initiation to the “do it yourself” market with GO Mini’s portable storage and moving units, has been widely accepted, and is yet another choice for our custom-ers. Our national affiliate United Van Lines, the nation’s largest van line, has embraced and is commit-ting our entire organization to the Customer First philosophy based on these principals:• We will be easy to do business

with.• We will be a leader in quality.• We will provide easy-to-under-

stand pricing.• We will establish our company

as the preferred choice among customers.

• We will be environmentally friendly.

Our portable storage and moving containers offer flexibility for the “do it yourself” customer. We deliver the 12’, 16’ or 20’ container, you load it, and we deliver it to our se-cure site or your new location. GO Mini’s units are great for moving, storage, staging, home restoration and a variety of other applications.Our unique partnership with the Geek Squad, Choice Point real-tor partnership, Solus Identity Theft Protection, and Straight Talk Advantage are exclusive options available to our customers. We are the region’s premier storage facility and mover, providing local residen-tial and office moving of any size, and long-distance service through-out the United States, or the world, from anywhere to everywhere.

J.H. BENNETT COMPANIESTHINKING FORWARD, MOVING FORWARD


J. H. Bennett Moving & Storage, Inc.

Van Lines

El JHB RECORDS MANAGEMENT

Knowledge. Experience. Integrity.

The NWIRC is a single source for

consulting and support in virtually

every area of manufacturing in

northwest Pennsylvania. Our job

is to make you successful.

Contact us at one of our

regional offi ces:

Erie: (814) 456-6299

DuBois: (814) 590-1219

Meadville: (814) 572-2077

Mercer: (724) 699-5787

www.nwirc.org

Business Growth Services:Strategic PlanningSuccession PlanningNew Market DevelopmentNew Product Development

Manufacturing Excellence Services:Cost ReductionContinuous ImprovementISO/Quality Certifi cationEnergy Management ServicesValue Stream Mapping

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PROFILEHighmark Blue Cross Blue Shield717 State Street Erie, PA 16501

Phone:814/871-6783

Fax:814/871-6810


Web Site:www.highmark.com

Number of Employees:19,000

Date Founded:1930s

Company Description:As Pennsylvania’s leading health insurer based on member-ship, Highmark Blue Cross Blue Shield’s mission is to provide ac-cess to affordable, quality health care enabling individuals to live longer, healthier lives.

Highmark supports the com-munities where its members and employees live and work through strategic corporate giving, em-ployee volunteerism and com-munity programming. In North-western Pennsylvania, Highmark corporate giving has contributed some $560,000 to 150 nonprofits in 2008.

Highmark hosts the Walk for a Healthy Community in Erie, an annual event that raises funds for local health and human service agencies. Highmark underwrites the cost of the walk so that 100 percent of the money raised by walkers goes directly to the par-ticipating organizations. In 2008, the walk raised some $60,000 for 19 local nonprofits.

Highmark offers additional com-munity support in Northwestern Pennsylvania through Highmark Healthy High 5 children’s health promotion initiative; the Car-ing Place, a Center for Grieving Children, Adolescents and Their Families facility in Erie; event sponsorships and more.

Markets Served:Highmark Blue Cross Blue Shield serves 29 counties in Western Pennsylvania with some 3.2 mil-lion members.

Certifications/Awards:InformationWeek ranks High-mark third in the nation in information technology innova-tion. On InformationWeek’s 2008

annual listing of the nation’s top 500 innovators of innovation tech-nology, Highmark is ranked third in the country. InformationWeek cited the successful collaboration of Highmark’s IT and actuarial groups as well as the company’s green environmental efforts to reduce electricity consumption at its Data Center as key factors in determining Highmark’s ranking.

Two Highmark health plans score in the top 10 percent in a national quality report. High-mark’s KeystoneBlue HMO and SecurityBlue HMO, two products offered in Western Pennsylvania, scored in the top 10 percent in many quality management mea-sures according to Healthcare Effectiveness Data and Informa-tion Set (HEDIS) scores released by the National Committee for Quality Assurance (NCQA) in 2008.

Highmark’s Employee Wellness Program receives Workplace Fitness Innovation award from the American Heart Associa-tion. The American Heart Asso-ciation recognized Highmark as a 2008 Platinum Start! Fit-Friendly Company, a designation that hon-ors companies that meet its strin-gent goals for employee fitness, for the success of its Employee Wellness Program.


<fiIGHMl\RK. -R-" Blue Cross Blue Shield -r. .. An Independent Licensee of the Blue Cross and Blue Shield Association

GEORGE

W.

BUSH

43rd President of the United States

104th Annual Event


Photo courtesy of the Department of Defense

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GGeorge W. Bush is the 43rd President of the United States. He was sworn into o"ce on January 20, 2001, re-elected on November 2, 2004 and sworn in for a second term on January 20, 2005. Before his Presidency, he served for 6 years as Governor of the State of Texas.

President Bush was born July 6, 1946, in New Haven, Connecticut, to Barbara and George H.W. Bush – later the 41st President of the United States. In 1948 the family moved to Texas, where President Bush grew up in Midland and Houston. He received a bachelor’s degree in history from Yale University in 1968, and then served as a pilot in the Texas Air National Guard. President Bush received a Master of Administration degree from Harvard Business School in 1975. Following graduation, he moved back to Midland and began a career in the energy business. After working on his father’s successful 1988 Presidential campaign, President Bush led a group of partners that purchased the Texas Rangers baseball franchise in 1989.

On November 8, 1994, George W. Bush was elected the 46th Governor of Texas. He became the first governor in Texas history to be elected to consecutive 4-year terms when he was re-elected on November 3, 1998. In Austin, he earned a reputation for his bipartisan governing approach and his compassionate conservative philosophy, which was based on limited government, personal responsibility, strong families and local control.

As President, George W. Bush worked to expand freedom, opportunity and security at home and abroad. His first initiative as President was the No Child Left Behind Act, a bipartisan measure that raised standards in schools, insisted on accountability in return for federal dollars and led to measurable gains in achievement – especially among minority students. Faced with a recession when he took o"ce, President Bush cut taxes for every federal income taxpayer, which helped lead to an unprecedented 52 straight months of job creation. And President Bush modernized Medicare by adding a prescription drug benefit that provided access to needed medicine for 40 million seniors and other beneficiaries.

President Bush also implemented free trade agreements with more than a dozen nations; empowered America’s armies of compassion by creating USA Freedom Corps and the O"ce of Faith-based and Community Initiatives; promoted a culture of life; improved air quality and made America’s energy supply more secure; designated more ocean area habitats for environmental protection than any predecessor; transformed the military and nearly doubled government support for veterans; pioneered a new model of partnership in development that tied American foreign aid to reform and good governance; launched a global HIV/AIDS initiative that has spared millions of lives; expanded the NATO alliance; forged a historic new partnership with India; and appointed Chief Justice John Roberts and Justice Samuel Alito to the U.S. Supreme Court.

!e most significant event of President Bush’s tenure came on September 11, 2001, when terrorists killed nearly 3,000 people on American soil. President Bush responded with a comprehensive strategy to protect the American people. He led the most dramatic reorganization of the federal government since the beginning of the Cold War, reforming the intelligence community and establishing new institutions like the Department of Homeland Security. He built global coalitions to remove violent regimes in Afghanistan and Iraq that threatened America – liberating more than 50 million people from tyranny. Recognizing that freedom and hope are the best alternative to the extremist ideology of the terrorists, he provided unprecedented American support for young democracies and dissidents in the Middle East, Eastern Europe and elsewhere. In the more than seven years following September 11, 2001, the United States was not attacked again.

Former President Bush is married to Laura Welch Bush, a former teacher and librarian whom he met at a friend’s backyard barbeque. !ey have twin daughters, Barbara and Jenna, and a son-in-law, Henry Hager. !e Bush family also includes two dogs, Barney and Miss Beazley.

Reported by the Washington Speakers Bureau.

104th Annual Event


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Positive outcomes occur with many tailored solutions, not one magic bullet. Through our “boutique-like” service, our local experts can strategically prepare you for a harsh economy. At Schaffner, Knight, Minnaugh & Company, P.C.,we understand that, now more than ever, it is crucial to think smart.

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814-833-8080 • FAX814-833-4208. 1-800-540-7805 • e-mail:[email protected]

EXCLUSIVE!

BLUE OCEAN STRATEGY WORKSHOPFEATURING BESTSELLING AUTHOR

RENÉE MAUBORGNE

THURSDAY, JUNE 18Manufacturer & Business Association

2171 West 38th Street, Erie, Pa. 8 a.m. — Noon

(includes copy of Blue Ocean Strategy, breakfast and working lunch)

Based on a study of 150 strategic moves spanning more than 100 years and 30 industries, authors W. Chan Kim and Renée Mauborgne argue that tomorrow’s leading companies will succeed not by battling competitors, but by creating “blue oceans” of uncontestedmarket space ripe for growth. Such strategic moves – termed “value innovation” – !"#$%#&'()#"*+,&,#$'-&./&0$,+#&*("&1(%2&%2#&3"4&$/5&.%-&1+6#"-7&"#/5#"./8&".0$,-&(1-(,#%#&and unleashing new demand.

W. Chan Kim and Renée Mauborgne are CoDirectors of the INSEAD Blue Ocean Strategy Institute and professors of

strategy and management at INSEAD, the world’s second largest business school, located in Fontainebleau, France.

Their business strategy book, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, is an international bestseller that promotes the creation of “blue oceans” rather than competing

in existing “red ocean” market space.

To register, call 814/8333200, 800/8152660 or go online at www.mbausa.org.

COSPONSORED BY:

Published in

41

Languages

Over5 MillionCopies Sold

EXCLUSIVE!


RENÉE MAUBORGNE


2171 West 38th Street, Erie, Pa. 8 a.m. — Noon

(includes copy of Blue Ocean Strategy, breakfast and working lunch)


W. Chan Kim and Renée Mauborgne are CoDirectors of the INSEAD Blue Ocean Strategy Institute and professors of

strategy and management at INSEAD, the world’s second largest business school, located in Fontainebleau, France.

Their business strategy book, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, is an international bestseller that promotes the creation of “blue oceans” rather than competing

in existing “red ocean” market space.

To register, call 814/8333200, 800/8152660 or go online at www.mbausa.org.

COSPONSORED BY:

Published in

41

Languages


EXCLUSIVE!


RENÉE MAUBORGNE


Blue Ocean Strategy Center2171 West 38th Street, Erie, Pa.

8 a.m. — Noon(includes copy of Blue Ocean Strategy, breakfast and working lunch)


For more information or to register, call 814/8333200, 800/8152660 or go online at www.mbausa.org.

COSPONSORED BY:

Published in

41

Languages


AAlways looking for ways to better serve its members, the Manufacturer & Business Association has embarked on what it expects will be its signature training program in not only the region, but also the country. In April 2009, the Association announced that it had joined an elite group of training centers around the world to teach one of the most sought-after business strategies today, becoming the o"cial MBA Blue Ocean Strategy Center in the United States.“!is is a major development for the members and it signals a new era in strategic planning for every industry,” says Association President Ralph Pontillo. Blue Ocean Strategy (BOS) is a proven and practical set of tools, methodologies and frameworks to think and observe skillfully, to systematically create and execute breakthrough growth strategies. It is a proven and intuitive approach to “see what everybody has seen yet think what nobody has thought.”!e result of a decade-long study of 150 strategic moves spanning more than 30 industries over 100 years, BOS examines successful companies, including Cirque du Soleil, Starbucks, Southwest Airlines and Nintendo, and

breaks down the tools and framework that they have used to create “blue oceans.” “Blue Ocean is not just another strategy, this is groundbreaking work,” says Pontillo. “And as the Blue Ocean Strategy Center in the United States, we are thrilled about the possibilities for our members.”Pontillo says the full weight of the Association is behind the endeavor – from personnel, facilities, to finances. !e end goal is to create a world-class training center for Blue Ocean Strategy study and research.!e Association firmly believes that Blue Ocean Strategy will serve as a critical element in helping businesses navigate unprecedented operational challenges. !e Association is dedicated to advancing the principle of Blue Ocean Strategy and assisting its members.“We’re fully prepared to do that because this isn’t about creating a successful program for the Association,” Pontillo says, “this is about taking information that is essential to businesses in helping them grow and expand. It’s why we exist and BOS is going to be a vital tool to any company trying to compete in a global economy today.” >

A Wave of ExcitementAssociation Named the Official Blue Ocean Strategy Center in the United States

Association Services



A World-Class Facility & Training Professionals….With more than 20,000 square feet of training and meeting space, the Association’s Conference Center at 2171 West 38th Street in Erie, Pennsylvania, is an ideal location for Blue Ocean Strategy training. !e facility is centrally located between three major airports – Bu#alo, New York; Pittsburgh, Pennsylvania; and Cleveland, Ohio; and is only minutes away from the Erie International Airport/Tom Ridge Field. “We are second to none in terms of meeting space and technology,” explains Pontillo, “and you couldn’t find a better place within the United States geared for BOS training.”Indeed the Blue Ocean Strategy Center is a shining example of a “blue ocean.” !e Association’s Blue Ocean Strategy trainers underwent rigorous schooling with the BOS team from Europe in April, and already have a wealth of knowledge and experience in their respective training fields. Which is why these professionals are the ideal instructors for teaching a strategy that requires real-world experience. Experts say Blue Ocean Strategy training is about adopting a new culture, a philosophy, versus a technique. !e Association, they say, is the perfect training ground for organizations to come and learn about BOS and its framework. According to the Association, briefings and one-day workshops will be made available initially so that companies and organizations can be introduced to Blue Ocean Strategy. !e second level would be actual education where participants go through the process, learn the tools, and work with examples and case studies for a three-day period. !e highest level of training will involve working hand-in-hand with an organization through the process at either the Association or their facility, and implementing and facilitating the process and applying it in their workplace.“One of the things about Blue Ocean Strategy that excites us the most is its applicability for both large and small organizations,” notes Association Vice President John

Krahe. “It is completely scalable based on the scope of the company’s chosen area of focus. Blue Ocean Strategy is as applicable for a large multinational corporation as it is for a smaller family-owned business, a restaurant, a hospital, a school district or city for that matter. BOS identifies problems/opportunities that many people don’t even realize are there and comes up with solutions that have never been considered.”

Creating Blue Oceans…According to Blue Ocean Strategy, there are six paths for creating “blue oceans” rather than competing in >

!e Association’s professional trainers and executive sta# underwent intense Blue Ocean Strategy (BOS) training taught by BOS instructors Katrina Ling and Jason Hunter (above).


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overcrowded “red oceans,” where companies compete by constantly looking for new ways to cut costs and grab more of the market share. !ese principles are what every organization needs to know in order to help reconstruct market boundaries, reach beyond existing demand, overcome organizational hurdles, create uncontested market space and render rivals obsolete. Blue Ocean Strategy requires organizations to take a hard look at their operations and ask three important questions. For instance, what is the value proposition to the new customer? What is the profit proposition? !e third question that must be asked is the people proposition, or are you in a position to deliver?“!ere are blue oceans that are undiscovered; there are blue oceans out there that we don’t even know exist yet,” says Pontillo. “It’s one of those great environments in which you operate that is always exciting, always forward thinking, always discovering; it’s just that type of environment.”

For more information on Blue Ocean Strategy, visit www.mbausa.org or www.blueoceanstrategy.com.

!e Association, headquartered at 2171 West 38th Street in Erie, became the o"cial MBA Blue Ocean Strategy Center in the United States in 2009.

Blue Ocean Strategy is a practical approach to creating breakthrough business ideas by applying proven methodologies.


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WW. Chan Kim and Renée Mauborgne are Co-Directors of the INSEAD Blue Ocean Strategy Institute and professors of strategy and management at INSEAD, the world’s second largest business school, located in Fontainebleau, France. !eir business strategy book, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, is an international bestseller that promotes the creation of “blue oceans” rather than competing in existing “red ocean” market space. Mauborgne recently met with the Business Magazine (BM) to discuss how Blue Ocean Strategy is becoming the wave of the future in business strategy and development.BM: !e Manufacturer & Business Association is proud to announce that it has been selected as an o"cial Blue Ocean Strategy Center in the United States. What are your expectations for this first U.S. training site?

We are looking forward to seeing the MBA Center share the concepts, tools and frameworks of Blue Ocean Strategy with their member companies and beyond through robust and practical training courses. With low cost competition on the rise from all corners of the globe, supply exceeding demand in

more and more industries and declining profit margins, there is a rising need for American companies to understand how they can break out of the ‘red ocean’ of bloody competition and make the competition irrelevant. !at is what Blue Ocean Strategy is all about. Blue Ocean Strategy provides concepts, tools and frameworks that any company can apply — from small to large, from family owned to publicly traded — to open up new market space by simultaneously pursuing both di#erentiation and low costs. In selecting MBA as an o"cial >

Oceans of Opportunity Renowned Authors Chan Kim and Reneé Mauborgne Discuss What’s on the Horizon

for Blue Ocean Strategy’s New U.S. Training Center

W. Chan Kim and Reneé Mauborgne are co-authors of the international bestseller, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, and experts on business strategy, innovation and wealth creation in the knowledge economy.



U.S. Center, we are counting on them to share these ideas through compelling, action-oriented training that will help to strengthen the global competitiveness of companies, and better equip them to create a brighter future for all of us. !ere’s been enough bad news about the economy. It’s time to start creating good news through new thinking. BM: Why did you choose the Manufacturer & Business Association to be a training center?

First, we were impressed by the people – their commitment, their drive, their passion. We like the passion for excellence, clear vision and make things happen attitude of President Ralph Pontillo. His passion for Blue Ocean Strategy did a lot to convince us to choose MBA. Vice President John Krahe and Vice President/CFO Dan McMahon reinforced this; they made a very positive impression at a Blue Ocean Strategy course in Dublin last year through their thoughtful questions on what it takes to put these ideas into action. Second, the companies and organizations MBA serves inspired us. !e profile of their member companies — predominantly small and mid-size companies, some over 100 years old, are the indispensable, underlying strength of the American economy. !ey may not be the ones who always make the headlines, but they are the bread and butter of communities and the seeds for the economy’s growth and dynamism. Yet, small and mid-size companies are facing challenges as never before. Costs are rising, competition is intensifying, and growing profitably is becoming harder. Cutting costs is not the answer. New thinking is. With our book out in

41 languages, we get calls from all over the world to share the ideas of Blue Ocean Strategy with large multinationals and governments alike. By choosing MBA, an avenue is open to bring these ideas to small and mid-size companies too, to help them unlock new thinking and new actions needed to create a blue ocean of new market space, and with it strong profitable growth. BM: How will this training site benefit employers of all sizes and industries?

Our research of industry

history reveals that there are no perpetually excellent companies, nor are there perpetually attractive industries. Whether a company or an industry is excellent depends on the strategic moves that are made. And the strategic move we found that matters centrally is creating blue oceans of new market space. Our research of over 150 strategic moves that created blue oceans in over 30 industries shows that companies in all industries can create blue oceans, whether companies are young or old, small or large. Consider: When IBM and Apple made their respective moves to create the blue ocean of personal computers, IBM was already an industry giant whereas Apple was just a start-up company in a garage. eBay created the blue ocean of online person-to-person auction market when the IT industry was in its heyday, whereas Starbucks created a blue ocean out of the declining co#ee retail industry. And it was Chrysler, an incumbent in the highly competitive fixed cost industry of automobiles that created the blue ocean of mini-vans. By simultaneously pursuing di#erentiation and low costs, the cornerstone of Blue Ocean Strategy, companies may hope to unlock new demand and strong profitable growth. !is applies to companies of all sizes in all kinds of industries. Hence, by sharing the practical tools and frameworks of Blue Ocean Strategy with employers, the training center will have as a mission shedding light on how they can do this too. BM: How does Blue Ocean Strategy distinguish itself from other business strategies that focus on “staying ahead of the competition”?

First, practicing competition-based strategies is important and necessary in proper contexts. After all, competition is part of the business reality, as one must compete in the marketplace. However, in a world where supply overtakes demand in many industries, staying ahead of the competition is not enough, as even companies with the biggest market share are faced with dwindling profits when the entire market gets commoditized. Blue Ocean Strategy, therefore, sets itself apart from other business strategies by aiming to make the competition irrelevant rather than to outperform the competition. Instead of benchmarking against the competition, Blue Ocean Strategy asks companies to shift their attention to the demand side of buyers. Instead of focusing on capturing a greater share of existing customers by pursuing finer and finer segmentations, Blue Ocean Strategy calls for converting noncustomers of the industry into new demand by uncovering the commonality across buyers, customers and noncustomers alike. Blue Ocean Strategy does not accept structural conditions of the industry. Instead it sets out to shape industry conditions in a company’s favor by reconstructing industry boundaries.

Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant has sold more than 2 million copies since it was published in 2005. Blue Ocean Strategy is the result of a decade-long study of 150 strategic moves spanning more than 30 industries over 100 years.



OVER ONE MILLION

BM: How should a company go about creating a blue ocean? What are the fundamental factors that should be considered?

To create a blue ocean, managers of a company should go through a series of steps in proper sequence. First, they need to ask: How can we create exceptional buyer utility that will change the lives of the target mass of buyers? !ey should seek the answers to this question by looking across the conventional boundaries of competition and by discovering the commonalities among buyers that include both customers and noncustomers. Once this question is addressed, the next question is: what is the price that will unlock the target mass of buyers? Once a strategic price is set to capture the mass of target buyers, the value proposition of the strategic move is completed. Next, managers should consider: Given the strategic price, what is the cost target that allows the company to make a tidy profit on this business? !is is the profit proposition of blue ocean strategy. A profitable business model is essential for capturing and sustaining the blue ocean of new market space. Finally, they should ask, what are the adoption hurdles in executing a blue ocean strategic move and how do we overcome these? !is is the people proposition of blue ocean strategy. In summary, to create a blue ocean successfully, a company should address the factors of utility, price, cost, and adoption sequentially and formulate and execute its strategic move by aligning value, profit and people propositions.BM: In your book, you cite various successful models of blue oceans – Cirque du Soleil, Casella Wines, Callaway, among many others. If a company is working through the process of Blue Ocean Strategy, how do you know if their blue ocean model will be successful?

To assess whether a blue ocean idea will be successful or not, we created the Blue Ocean Idea (BOI) Index. !e BOI Index provides an analytic framework a company can apply to check the commercial viability of their idea. !e index provides a lens by which companies can assess: 1) if there is exceptional buyer utility in the business idea; 2) if the strategic price is easily accessible to the target mass of buyers; 3) if the target cost can be attained to allow profitability at the strategic price; and 4) if the adoption hurdles in actualizing the business idea have been addressed. !is simple but robust test allows companies to evaluate the success potential of blue ocean ideas and sheds insight into how the idea may need to be improved to unlock a blue ocean of new market space. BM: In most cases, competition breeds imitation, turning “blue oceans” into “red oceans.” Please explain how Blue

Ocean Strategy is a continuous process?

First of all, a blue ocean strategy brings with it considerable barriers to imitation. Some of these barriers are operational, and others are cognitive. Our research shows that more often than not, a blue ocean strategy will go without credible challenges for five to 15 years depending on the industry. Eventually, however, almost every blue ocean strategy will be imitated. As more and more imitators swim into the market and their strategies start to converge, the blue ocean will begin to turn red as competition intensifies. In short, there is no permanent success. Managers, therefore, should see the reality of industry evolution as a continuum of blue and red oceans. As companies’ strategies begin to converge and the ocean turns red, it will be time to reach out for a new blue ocean. Companies, therefore, need to monitor the value curves of their businesses on the strategy canvas. Monitoring value curves signals when to launch a blue ocean strategic move and when not to. It alerts companies to reach out for another blue ocean when their value curves begin to converge with those of the competition. It also keeps them from pursuing another blue ocean when there is still a huge profit stream to be collected from their current o#erings. For companies to stay on the course of profitable growth and high performance, therefore, managers need to pursue value innovation repeatedly and with proper timing, thereby making the competition irrelevant with a value curve that has focus, divergence and a compelling tagline.BM: What is your ultimate goal for Blue Ocean Strategy?

To try to make a di#erence. It has always been our belief that theory and practice should inspire, enrich and inform one another to maximize mutual gain and advancement for the benefit of all. !is has motivated us to explore the pattern and logic behind the strategic moves made in practice that created blue oceans. We hope that the actionable frameworks and tools we developed based on our 15-year research journey will better inform business practice in the real world. Although we started our research in the area of business strategy, the ideas and logic of Blue Ocean Strategy are scalable and may inform the strategy making process not only of business organizations, but also of nonprofits, public organizations, and even national governments. It is our hope that Blue Ocean Strategy, with its focus on going beyond the bloody and zero-sum game of competition to a win-win game that expands the economic pie for all, will o#er individuals, companies, as well as our communities and countries a new perspective for pursuing a brighter, more prosperous and more harmonious future ahead.



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At the crux of the mission statement of the Erie County Convention Center Authority is a responsibility “…to provide world-class convention facilities…for county and regional residents.” At the Bayfront Convention Center, it is imperative that we conduct our business in a manner which fully meets that responsibility, and “…provide facilities which are of superior quality and reliability at an affordable cost.” Since our grand opening in August 2007, the Bayfront Convention Center (BCC) has met and exceeded those expectations, and we look forward to building on our success in 2009 and well into the future.

Those who have attended events at the BCC can attest to its stunning views, unmatched service from a highly motivated and dedicated staff, and multi-function versatility; a versatility that manifests itself in several ways. From hosting multiple events at the same time on the same day; to tearing-down and setting-up for a new event overnight; to hosting a meeting of 20 people or a gala event of 2000, the BCC is a one-stop shop for groups of all sizes and for all gatherings. Local events, ranging from a CLE class hosted by the Erie County Bar Association, to the extravagant Manufacturer & Business Association Annual Event, provide us with an opportunity to serve our fellow community members with a flair and style usually found in larger cities. For our out-of-town visitors, the combination of the BCC, downtown Erie, and Presque Isle Bay makes a tremendously powerful impact and immediately dispels any negative preconceptions of Erie as anything but a high-class choice for an important gathering.

As we expand our reach and generate positive word-of-mouth about Erie and the BCC throughout the region and beyond, cementing that first impression and turning it into a second and third booking becomes our priority. As highlighted in our mission statement, bringing people to Erie and exposing them to the various and numerous year-round activities our area has to offer is our responsibility to the community. As we work toward fulfilling that promise, we ask you to assist in maximizing the potential of the BCC as a regional asset.

Your advocacy of Erie and the BCC to your social networks is a powerful marketing tool for the region; your hospitality and friendliness to visitors when they are here is a vital cog in the marketing of the BCC as a top-of-mind event venue. Your task is simple: refer your leads to us, and let us do the work.

It was local advocacy that helped bring the 2008 GE Global Shareholders meeting to Erie and the BCC; that advocacy ultimately led to an overwhelmingly successful event that benefited the entire Erie area. Hotel rooms throughout the region were booked for days over the course of the meetings, as Erie played host to guests who ate, shopped, and otherwise recreated before leaving town with a positive image of Erie. As those attendees return to their communities, their word of mouth to organizations they belong to complements and multiplies the impact of our marketing and hospitality efforts. By being a champion for the Erie area, the BCC ensures that the region reaps both an immediate and future benefit.

We look forward to working with and for you in any way we can, and we hope to see you at the Bayfront Convention Center soon.

1 Sassafras Pier Jeffrey A. Esposito, General Manager Erie, PA 16507 [email protected] P: (814) 455-1260 F: (814) 879-0910 Carmine A. Camillo, Director of Marketing & Sales [email protected]

Tullio Arena Warner Theatre Jerry Uht Ballpark Bayfront Convention Center

36 < www.mbausa.org < June 2009 36 < www.mbausa.org < June 2009

Malin Bergquist CERTIFIED PUBliC ACCOUNTANTS

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PROFILEElectronic Communication Services Inc.Erie, PA

Phone:814/806-2114 or800/837-5790


Web Site:www.ecsinc.us.com

Number of Employees:Nine

Date Founded:1989

“Thanks to ECS and their innova-tive solutions to our office com-munication needs, we have been able to upgrade to a telephone system that provides the technol-ogy to communicate through our network which enables our firm to be more efficient in response time, not only within our own team environment, but most importantly with our clients. Thank you, ECS!”

— The McDonald GroupErie, PA

“The Erie Water Works has uti-lized the services and equipment of Electronic Communication Ser-vices since June 1996. Respons-es to inquiries are always rapid and reliable… We would highly recommend this company.”

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Electronic Communication Ser-vices Inc. (ECS) expends a great deal of time and resources to stay current in the ever-chang-ing Voice/Data Technology Field. Whether you are looking for a ba-sic Telephone System with Voice Mail or a VOIP Telephone System that is networked to multiple loca-tions, ECS is committed to provid-ing the latest technology along with the best customer service.

Products/Services Offered:Business Telephone Systems Digital / VOIP Wired / WirelessData Networks Wired / WirelessUnified CommunicationsCabling Telephone / Data

Markets Served:Small to Large BusinessesHospitalityEducationReal EstateManufacturingLegal / FinancialGovernmentAutomotiveCall CentersNonprofit

•

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“I want the best product and service I can count on, day in and day out. This team delivers, no matter what.”

— Bel-Aire/Clarion Hotel Erie, PA

“We selected ECS to provide all cabling for our data and network systems, as well as provide and install a state-of-the-art telephone system. ... We were extremely pleased with the prompt and detailed manner in which they worked with our contractors, subcontractors, and manage-ment team. ECS has continued to provide excellent service.“

— Porreco NissanErie, PA

“When I call ECS, I know the response will be almost immedi-ate. From the sales staff to the technicians, ECS employees are friendly and professional.”

— EMTAErie, PA


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Phone Number:412/456-8100

Fax Number:412/456-8135

E-mail: [email protected]

Web Site: www.bernsteinlaw.com

Number of Employees:30

Date Founded:1968

Company Description:Our core purpose is to create partnerships that provide clients with peace of mind through expert advice and zealous representa-tion. The main office is located in Pittsburgh, Pennsylvania, but there are several satellite offices throughout the state. Bernstein Law Firm is a highly regarded and respected firm concentrating in Business Law, Creditors’ Rights and Bankruptcy & Restructur-ing. We cover the entire state of Pennsylvania and have a national reach in our Bankruptcy & Re-structuring and in our Creditors’ Rights practice areas.

In all of our transactions, one variable remains the same: a commitment to respecting and understanding our clients’ best interests and bottom line. We ap-proach each client with the same care and diligence with which we handle our own business needs. We are big enough to handle almost any case for our clients, but small enough to dedicate only the staff necessary to take care of a client. We know legal services cost money and we take care to keep the costs within reasonable business limits for our clients.

Practice Areas:Bankruptcy & Restructuring – Our B&R attorneys have exten-sive experience representing both secured and unsecured creditors in all bankruptcy matters. We act as an efficient clearinghouse and one-stop shop for our clients’ bankruptcy needs. Our services include: Corporate (equipment, commercial property and other collateral), Creditors’ Committees,

Consumer and some dischar-gability issues.

Creditors’ Rights – Our Credi-tors’ Rights attorneys represent clients in various types of credi-tors’ issues including: Commercial and Construction Collections, Replevins and Litigation. The at-torneys in this practice area team with our Business Law attorneys to coordinate areas of expertise in order to maximize protection of our clients’ rights and interests.

Business Law – Business Law attorneys represent clients in numerous areas of business and finance law including: Corporate, Commercial Finance, Partner-ships, Employment and Media-tion.

The Get P.A.I.D.® System:Get P.A.I.D.®: A Guide to Getting Paid Faster, outlines Robert Bern-stein’s 4-Step Program to prompt payment and provides a “Collec-tions Toolbox” to help businesses better manage their credit poli-cies. The book advances a radical philosophy, suggesting that credit policy isn’t just about collections. It’s a business strategy to en-hance customer relationships and add value to a company. The strategy discourages businesses from providing easy credit to their customers based upon the com-monly held belief that easy credit will lead to stronger customer relationships. It actually leads to added cost and friction.

To learn more about this book, please visit our Web site, www.getpaidsystem.com.


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Doug Loesel’s grandfather, George O. Loesel, could hardly have imagined what the “corner store” insurance agency he founded in 1927 would grow into more than 80 years later. With 35 employees, the Loesel-Schaaf Insurance Agency is one of the largest multi-line agencies in northwest Pennsylvania. While the faces and products have changed over the decades, what remains the same is an agency that truly does “Make A Di"erence” to their clients.

An Established HistoryAs the George O. Loesel Insurance Agency grew from its beginnings in the late 1920s, George was joined by his sons, Richard and “Gib” Loesel, and the company changed its name to the Loesel Insurance Agency. Over time, the Agency became a staple of the Erie community and enjoyed steady, measured growth and expansion. Richard’s daughter, Amy Mitchell, joined the agency in 1976 as a Customer Service Representative and today is Manager of Finance and Systems. In 1979, Richard’s son Doug, an engineer by trade, joined the team; and a new generation of Loesels came on board. Shortly thereafter, merger discussions began with Charles Schaaf, owner of the 50-year-old Allen-Schaaf Agency, and in 1981, the Loesel-Schaaf Insurance Agency was born.Other significant historical additions to the sta# include Michael

Beuchert and Edward Althof in the early 1980s. Joseph Parlak, owner of !e Doyle-Pe#er-Parlak Agency, dating back to 1921, joined Loesel-Schaaf in 1991 via a merger. Eric Consiglio joined the Agency in 1996, and Kathleen Aranyos has been with Loesel-Schaaf since 1992. Beuchert, Althof, Parlak, Consiglio, Aranyos and Loesel form the principals of the Agency and are supported by a sta# of 29. In 2001, Doug Loesel was named president, CEO and treasurer.“When my grandfather started out, the Agency was located on 7th Street in downtown Erie,” Doug Loesel says. It later moved to 8th Street and then in 1996, relocated to its present home on 12th Street in Millcreek Township. “We actually have had to expand our physical plant and also occupy the building next door. !e growth has been remarkable.”

Diverse Products and Services!e Loesel-Schaaf Insurance Agency is truly a multi-line insurance agency, o#ering a wide array of products and services to its clients. With four separate divisions, encompassing just about every insurance need possible, the Agency has become a “one-stop-shop” for businesses and individuals across northwest Pennsylvania.!e Employee Benefits Division, one of the largest in Northwest PA, provides countless employee benefits and plan designs including health, life, dental, vision, long-term disability, short-term disability, long-term care, travel accident, pet insurance and voluntary coverage to companies of all sizes.!e Commercial Division provides coverage for all types of businesses, ranging from “Mom and Pop” stores to large manufacturing operations. Products include business auto policies, property and liability policies, umbrella liability policies, performance bonds, workers’ compensation, as well as a host of professional liability policies.“We are proud to have long-standing relationships with some of Erie’s finest companies,” Doug Loesel notes.For individual needs, the Personal Insurance Division o#ers

auto, home, boat, personal umbrella, RV, motorcycle and rental property. “No matter what your personal insurance needs are, we no doubt have a product that can cover you,” Joe Parlak says.!e Life and Financial Services Division o#ers individual life insurance, disability, medical, long-term care, Medicare supple-ments and annuities. “It really takes into account your finances while you are working, in your retirement, as well as your estate needs,” Doug Loesel notes. “Whether you are planning for college education, nursing care for your parents, or how to acquire that summer home on the lake, our professionals can get you there.”Clients at Loesel-Schaaf also enjoy unparalleled customer service. “Each client has a primary agent, a licensed customer service representative and an experienced team of professionals working for them,” Joe Parlak says. “And there is an agent available to you 24-hours a day, 365 days a year if you have an emergency. You may very well get me or Doug on the weekends. Responsiveness is really the keystone of our customer service.” !e bottom line >

Making A Di#erenceLOESEL-SCHAAF

INSURANCE AGENCY, INC.

Partners

Douglas A. Loesel, CPCU President/CEO/Treasurer

Joseph A. Parlak, AAI Vice President

Michael Beuchert, CLU, LUTCF Secretary

Edward C. Althof, CLU, CEBS Vice President

Eric J. Consiglio, RHU, REBC Vice President/Assistant Secretary

Kathleen D. Aranyos, SPHR Assistant Vice President

Featured Company

!e Loesel-Schaaf Insurance Agency o#ers a wide range of individually designed insurance products and services.

Loesel-Schaaf Insurance Agency, headquartered at 3537 West 12th Street, is a full-service insurance agency managed by partners Doug Loesel, Ed Althof, Kathy Aranyos, Eric Consiglio, Joe Parlak and Michael Beuchert (not pictured).

Loesel-Schaaf Insurance Agency has been part of the Erie community for the past 80 years thanks to founder George O. Loesel, who started the agency in the late 1920s.

Loesel-Schaaf ’s growth and expansion has been in large part due to its strategic partnerships. Shown here are Doug Loesel and Michael Beuchert.

June 2009 > www.mbausa.org > 49 48 < www.mbausa.org < June 2009

Doug Loesel’s grandfather, George O. Loesel, could hardly have imagined what the “corner store” insurance agency he founded in 1927 would grow into more than 80 years later. With 35 employees, the Loesel-Schaaf Insurance Agency is one of the largest multi-line agencies in northwest Pennsylvania. While the faces and products have changed over the decades, what remains the same is an agency that truly does “Make A Di"erence” to their clients.

An Established HistoryAs the George O. Loesel Insurance Agency grew from its beginnings in the late 1920s, George was joined by his sons, Richard and “Gib” Loesel, and the company changed its name to the Loesel Insurance Agency. Over time, the Agency became a staple of the Erie community and enjoyed steady, measured growth and expansion. Richard’s daughter, Amy Mitchell, joined the agency in 1976 as a Customer Service Representative and today is Manager of Finance and Systems. In 1979, Richard’s son Doug, an engineer by trade, joined the team; and a new generation of Loesels came on board. Shortly thereafter, merger discussions began with Charles Schaaf, owner of the 50-year-old Allen-Schaaf Agency, and in 1981, the Loesel-Schaaf Insurance Agency was born.Other significant historical additions to the sta# include Michael

Beuchert and Edward Althof in the early 1980s. Joseph Parlak, owner of !e Doyle-Pe#er-Parlak Agency, dating back to 1921, joined Loesel-Schaaf in 1991 via a merger. Eric Consiglio joined the Agency in 1996, and Kathleen Aranyos has been with Loesel-Schaaf since 1992. Beuchert, Althof, Parlak, Consiglio, Aranyos and Loesel form the principals of the Agency and are supported by a sta# of 29. In 2001, Doug Loesel was named president, CEO and treasurer.“When my grandfather started out, the Agency was located on 7th Street in downtown Erie,” Doug Loesel says. It later moved to 8th Street and then in 1996, relocated to its present home on 12th Street in Millcreek Township. “We actually have had to expand our physical plant and also occupy the building next door. !e growth has been remarkable.”

Diverse Products and Services!e Loesel-Schaaf Insurance Agency is truly a multi-line insurance agency, o#ering a wide array of products and services to its clients. With four separate divisions, encompassing just about every insurance need possible, the Agency has become a “one-stop-shop” for businesses and individuals across northwest Pennsylvania.!e Employee Benefits Division, one of the largest in Northwest PA, provides countless employee benefits and plan designs including health, life, dental, vision, long-term disability, short-term disability, long-term care, travel accident, pet insurance and voluntary coverage to companies of all sizes.!e Commercial Division provides coverage for all types of businesses, ranging from “Mom and Pop” stores to large manufacturing operations. Products include business auto policies, property and liability policies, umbrella liability policies, performance bonds, workers’ compensation, as well as a host of professional liability policies.“We are proud to have long-standing relationships with some of Erie’s finest companies,” Doug Loesel notes.For individual needs, the Personal Insurance Division o#ers

auto, home, boat, personal umbrella, RV, motorcycle and rental property. “No matter what your personal insurance needs are, we no doubt have a product that can cover you,” Joe Parlak says.!e Life and Financial Services Division o#ers individual life insurance, disability, medical, long-term care, Medicare supple-ments and annuities. “It really takes into account your finances while you are working, in your retirement, as well as your estate needs,” Doug Loesel notes. “Whether you are planning for college education, nursing care for your parents, or how to acquire that summer home on the lake, our professionals can get you there.”Clients at Loesel-Schaaf also enjoy unparalleled customer service. “Each client has a primary agent, a licensed customer service representative and an experienced team of professionals working for them,” Joe Parlak says. “And there is an agent available to you 24-hours a day, 365 days a year if you have an emergency. You may very well get me or Doug on the weekends. Responsiveness is really the keystone of our customer service.” !e bottom line >

Making A Di#erenceLOESEL-SCHAAF

INSURANCE AGENCY, INC.

Partners

Douglas A. Loesel, CPCU President/CEO/Treasurer

Joseph A. Parlak, AAI Vice President

Michael Beuchert, CLU, LUTCF Secretary

Edward C. Althof, CLU, CEBS Vice President

Eric J. Consiglio, RHU, REBC Vice President/Assistant Secretary

Kathleen D. Aranyos, SPHR Assistant Vice President

Featured Company

!e Loesel-Schaaf Insurance Agency o#ers a wide range of individually designed insurance products and services.

Loesel-Schaaf Insurance Agency, headquartered at 3537 West 12th Street, is a full-service insurance agency managed by partners Doug Loesel, Ed Althof, Kathy Aranyos, Eric Consiglio, Joe Parlak and Michael Beuchert (not pictured).

Loesel-Schaaf Insurance Agency has been part of the Erie community for the past 80 years thanks to founder George O. Loesel, who started the agency in the late 1920s.

Loesel-Schaaf ’s growth and expansion has been in large part due to its strategic partnerships. Shown here are Doug Loesel and Michael Beuchert.


when it comes to your insurance needs, no matter what the exposure, Loesel-Schaaf can help. !ey will be there throughout the relationship.

An Expert Sta#For Joe Parlak, one of the reasons his agency merged with Loesel-Schaaf in 1991 was because of the expertise of the insurance professionals on sta#. “!e insurance business has changed,” he notes. “!ese days you are sitting down not only with your clients, but with their attorneys and accountants; and they are looking to you as their trusted advisor. !e expertise and education required is vital.”Staying on top of trends in the insurance industry can be a daunting task, but one that is imperative for any agency to professionally service its clients. !at’s why continuing education is a way of life at Loesel-Schaaf. “!e majority of our sta# has at least one professional designation,” Doug Loesel says. In fact, a quick look at their sta# directory reads like an alphabet soup of acronyms after the names — AAI, CEBS, CIC, CISR, CLU, CPCU, CPIW, LUTCF, REBC, RHU, SPHR. Each designation means more than its individual initials — it shows that Loesel-Schaaf values knowledge, and puts its money where its mouth is.But expertise can come in forms other than continuing education. “Because of our size, we are able to support relationships with the large insurance carriers,” says Joe Parlak. “We are able to access loss prevention experts, engineers and other professionals to make sure that you are getting the best coverage and services, at the lowest rates possible.”

“It may sound strange, but we are an insurance agency that wants to keep your premiums as low as possible,” Doug Loesel says. “We know that our success truly does depend on our client’s success. We want you to be in business for the next 20, 30, 40 years and beyond.”With a sta# as experienced as the one at Loesel-Schaaf, a team approach is often utilized. “Because of the background, education and experience of our professional sta#, we have a vast reservoir of knowledge from which to draw. Our sta# averages 17 years of insurance industry experience. We are problem-solvers for our clients,” Doug Loesel says. “Someone on sta# has most likely tackled just about any type of problem and, together, we can come up with a solution.”

A Community CommitmentIn addition to high standards of professional expertise, there is another hallmark of the Loesel-Schaaf culture — a steadfast and long-standing commitment to the Erie community.“We certainly are here to make a profit and provide top notch insurance service; but we are also here for the community,” Doug Loesel says. “It is our way to give back in return for the confidence the community has shown this agency throughout the years.”!e Agency assists many organizations financially, serving on boards, and also through thousands of volunteer hours each year. “Our sta# is truly amazing in terms of what they give back to the community,” Joe Parlak says. “From Harborcreek Youth Services, Family Services of NW PA, the Erie County Historical Society, !e Gertrude A. Barber National Institute, the local hospitals, WQLN and Stairways to the Erie Kiwanis, Erie Lions Club, Sertoma Club of Erie, the Salvation Army, the Erie Philharmonic, Big Brothers and Big Sisters, Bowl for Kids Sake, !e Purple Martin Conservation Association, United Way — the list goes on and on. You can find a member of the Loesel-Schaaf team with a whole host of religious or volunteer organizations.” Doug Loesel says, “Our families raised us to be part of the

community. Many of our employees volunteered from the time they were young because it was just part of their family culture, and we support and encourage the continuation of that community service.”In addition to the professionalism and community commitment, the management at Loesel-Schaaf engage to make the work experience fun and personally rewarding. Joe Parlak says, “We encourage people to choose their attitude and make it your point to make someone’s day.”At Loesel-Schaaf “We make a di#erence” in the lives of our employees, customers and the community.

3537 West 12th StreetErie, PA 16505-3650Phone: 814/833-5433Fax: 814/838-6172www.LSinsure.com

Professional A"liationsNational Association of Professional Insurance AgentsIndependent Insurance Agent and Brokers of AmericaInsurance Agents and Brokers of PennsylvaniaCertified Employee Benefits Specialist"e Society of Chartered Property and Casualty UnderwritersAccredited Advisors in InsuranceCertified Insurance Counselors"e National Association of Life UnderwritersChartered Life UnderwritersCertified Insurance Service RepresentativesLife Underwriters Training Counsel of FellowsCertified Professional Insurance WomenSociety for Human Resource Management

LOESEL-SCHAAFINSURANCE AGENCY, INC.

Mission StatementLoesel-Schaaf Insurance Agency, Inc. is a provider of multi-line insurance products and services to individuals and corporate clients throughout Western Pennsylvania. We intend to maintain our position as a superior agency force by listening to our clients’ needs, representing only reputable carriers, continuing to provide a level of service second to none and adapting our portfolio of products and services to meet changing market demands.

Loesel-Schaaf, which has long-standing relationships with some of Erie’s oldest and finest companies, o#ers the insurance products that will keep their clients protected as their businesses grow.

Loesel-Schaaf Insurance Agency’s professionals are dedicated to getting clients the best coverage at the lowest possible rates.

June 2009 > www.mbausa.org > 51 50 < www.mbausa.org < June 2009

when it comes to your insurance needs, no matter what the exposure, Loesel-Schaaf can help. !ey will be there throughout the relationship.

An Expert Sta#For Joe Parlak, one of the reasons his agency merged with Loesel-Schaaf in 1991 was because of the expertise of the insurance professionals on sta#. “!e insurance business has changed,” he notes. “!ese days you are sitting down not only with your clients, but with their attorneys and accountants; and they are looking to you as their trusted advisor. !e expertise and education required is vital.”Staying on top of trends in the insurance industry can be a daunting task, but one that is imperative for any agency to professionally service its clients. !at’s why continuing education is a way of life at Loesel-Schaaf. “!e majority of our sta# has at least one professional designation,” Doug Loesel says. In fact, a quick look at their sta# directory reads like an alphabet soup of acronyms after the names — AAI, CEBS, CIC, CISR, CLU, CPCU, CPIW, LUTCF, REBC, RHU, SPHR. Each designation means more than its individual initials — it shows that Loesel-Schaaf values knowledge, and puts its money where its mouth is.But expertise can come in forms other than continuing education. “Because of our size, we are able to support relationships with the large insurance carriers,” says Joe Parlak. “We are able to access loss prevention experts, engineers and other professionals to make sure that you are getting the best coverage and services, at the lowest rates possible.”

“It may sound strange, but we are an insurance agency that wants to keep your premiums as low as possible,” Doug Loesel says. “We know that our success truly does depend on our client’s success. We want you to be in business for the next 20, 30, 40 years and beyond.”With a sta# as experienced as the one at Loesel-Schaaf, a team approach is often utilized. “Because of the background, education and experience of our professional sta#, we have a vast reservoir of knowledge from which to draw. Our sta# averages 17 years of insurance industry experience. We are problem-solvers for our clients,” Doug Loesel says. “Someone on sta# has most likely tackled just about any type of problem and, together, we can come up with a solution.”

A Community CommitmentIn addition to high standards of professional expertise, there is another hallmark of the Loesel-Schaaf culture — a steadfast and long-standing commitment to the Erie community.“We certainly are here to make a profit and provide top notch insurance service; but we are also here for the community,” Doug Loesel says. “It is our way to give back in return for the confidence the community has shown this agency throughout the years.”!e Agency assists many organizations financially, serving on boards, and also through thousands of volunteer hours each year. “Our sta# is truly amazing in terms of what they give back to the community,” Joe Parlak says. “From Harborcreek Youth Services, Family Services of NW PA, the Erie County Historical Society, !e Gertrude A. Barber National Institute, the local hospitals, WQLN and Stairways to the Erie Kiwanis, Erie Lions Club, Sertoma Club of Erie, the Salvation Army, the Erie Philharmonic, Big Brothers and Big Sisters, Bowl for Kids Sake, !e Purple Martin Conservation Association, United Way — the list goes on and on. You can find a member of the Loesel-Schaaf team with a whole host of religious or volunteer organizations.” Doug Loesel says, “Our families raised us to be part of the

community. Many of our employees volunteered from the time they were young because it was just part of their family culture, and we support and encourage the continuation of that community service.”In addition to the professionalism and community commitment, the management at Loesel-Schaaf engage to make the work experience fun and personally rewarding. Joe Parlak says, “We encourage people to choose their attitude and make it your point to make someone’s day.”At Loesel-Schaaf “We make a di#erence” in the lives of our employees, customers and the community.

3537 West 12th StreetErie, PA 16505-3650Phone: 814/833-5433Fax: 814/838-6172www.LSinsure.com

Professional A"liationsNational Association of Professional Insurance AgentsIndependent Insurance Agent and Brokers of AmericaInsurance Agents and Brokers of PennsylvaniaCertified Employee Benefits Specialist"e Society of Chartered Property and Casualty UnderwritersAccredited Advisors in InsuranceCertified Insurance Counselors"e National Association of Life UnderwritersChartered Life UnderwritersCertified Insurance Service RepresentativesLife Underwriters Training Counsel of FellowsCertified Professional Insurance WomenSociety for Human Resource Management

LOESEL-SCHAAFINSURANCE AGENCY, INC.

Mission StatementLoesel-Schaaf Insurance Agency, Inc. is a provider of multi-line insurance products and services to individuals and corporate clients throughout Western Pennsylvania. We intend to maintain our position as a superior agency force by listening to our clients’ needs, representing only reputable carriers, continuing to provide a level of service second to none and adapting our portfolio of products and services to meet changing market demands.

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Dedicated to Giving Your Business the Lowest Possible Energy Costs in Pennsylvania.

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On behalf of you, our members, the Manufacturer & Business Association has established the Energy Cooperative of Pennsylvania (ECPA), which will act as a notforprofit supplier for our membership. By leveraging our significant buying power and eliminating broker commissions and marketing costs, we are able to buy electricity and natural gas in large quantities at wholesale prices – and pass that savings directly onto you.

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WWhile Pennsylvania business owners already have enough weighing on their minds, trying to stay afloat in a battered economy and the ever-increasing costs of health care, they now face a new concern – energy prices. !e caps on electric rates in Pennsylvania already have started to come o# in parts of the state, and for many others, their power bill could be going up as much as 20 percent by the first of next year.For these industries and institutions, which represent some of the largest energy users in the Commonwealth, the removal of rate caps o#ers both opportunities and challenges. A competitive market bolsters improved products and services and underscores the importance of wise energy usage. At the same time, finding the best deal is now even more vital under this new market-based pricing structure. Like residential customers, employers are looking for the best ways to lower their energy bills.“!e average person can relate to their own energy bill, which may be $50 to $60 a month,” says J. David Bell, president of Erie DriveTrain Inc. in Erie and former chairman of the Manufacturer & Business Association. “Many companies have

bills that are thousands per month, $20,000 per month, so any increase is a big, big number.”To be hit with fluctuating energy bills, in an already tough economy, makes energy pricing an even more serious issue. For employers, continues Bell, “it’s the same fight we have with health care and everything else — taxes, lawsuits and regulatory issues — because as expenses go up that means you have less money to give employees for raises and less money to invest in your business and new technology. All the things that you need to have a growing business are eaten up by these costs, and it makes it very di"cult.”

Introducing a New Value-Added Service for Association Members …For 104 years, the Association has been a champion for area employers, providing services that can better help them run their day-to-day operations. !is year, the Association has gone one step further, establishing the newly formed Energy Cooperative of Pennsylvania, Inc., to provide a cost savings for member businesses that want to lower their energy bills – including electricity, gas and renewable energy. >

MBA Powering On

Dedicated to Giving Your Business the Lowest Possible Energy Costs in Pennsylvania



!e decision to form the co-op, according to Bell, who was appointed co-op president in April, was vital to responding to the needs of the Association’s more than 4,500 members. “With all the talk about the rate caps coming o# on electricity, our members are very concerned about what’s going to happen with their costs. So we’re going to be talking to our members about the program and explain how we’re going to save them money.”Caps were put on electric rates with the start of electric deregulation in Pennsylvania in the late 1990s to stabilize rates while utilities competed for customers outside their traditional service territories. !ese energy rate caps subsequently shielded consumers from huge rate hikes and volatility in the wholesale electricity market. Rate caps that have kept the price of electricity artificially low are now set to be lifted. In some instances, rate protection already has expired, depending on which utility company provides the electricity. However, once the rest of these caps are removed and the marketplace sets the rates, there will be more energy choices. And that is why, for businesses and institutions, there is greater urgency for utilizing the co-op purchasing model – a model that has been in place for many regions of the United States already.“!is idea is nothing new,” notes Association Vice President and General Counsel John Onorato. “When the deregulation originally took place and it looked like there would be no caps, we investigated and did our due diligence to figure out how we can deliver this service to our members.” Now, more than a decade later, Onorato adds, “It’s our goal through this cooperative to purchase the energy directly from the grid and pipeline and o#er our members access to the lowest possible rates.”To enroll in the co-op, companies and organizations must be members of the Manufacturer & Business Association in good standing. Enrollment in the co-op is not limited by the size of energy user, or the type of industry – whether it is a manufacturing facility, university, hospital, grocery store or o"ce building. !e program will be tailored to fit members’ energy usage and needs.“Many of our members have energy intensive operations, using many thousands of kilowatts,” adds Onorato, “so helping them control energy costs is a competitive initiative.”

A Strong Energy Partner…In 2008, the Association approached Synergy Energy Holdings, Inc. for a possible partnership. !e company, headquartered in Bu#alo, New York, which currently manages more than $1 billion of client energy purchases around the United States and Canada, was a pivotal player in the formation of the Energy Cooperative of New York (ECNY), which has more than 2,000 members including more than 9,000 service accounts in the State of New York.!e Association found that Synergy and its CEO and principal owner, Denny Frank, were “pioneers” in the energy field. Frank, who started his career as an aerospace engineer to develop flight control systems used in the space shuttle and thermal batteries for long-range missiles, had a wealth of knowledge in energy conservation. During the 1990s, he served as an energy consultant on how to buy energy in deregulated markets. Eventually, he founded Energy Advantage in 1992, and helped form the Energy Cooperative of New York in 1994. “Synergy sells all the technical services to the energy co-op in New York, similar to what we plan to do for the Energy Co-op of Pennsylvania, which allows them to purchase directly from the electric grid and natural gas pipeline and then sell to their members in a not-for-profit fashion,” explains Frank. “What we’re really doing is taking the broker function and making it a not-for-profit function for the end user.”

Here’s How it Works…All the energy for the co-op and all the energy in Pennsylvania are bought from the same place, the PJM Independent System Operator, which is run by the state and governed by the Federal Energy Regulatory Commission. !rough a bidding process, known as a Dutch auction, a cooperative can then buy their energy at a clearing price. !e main di#erence in who buys the energy, according to co-op administrators, is how the price is passed on to the end user. A broker or marketer, for example, buys energy at a lower price and sells at the highest price based on what the market can bear. What the co-op does is purchase directly from the electric grid and natural gas pipeline and then passes that price on to members.In the co-op, “the focus is not on making money but about saving money and passing the savings on to our members,” says Frank.Essentially, he adds, “the board of the co-op is making strategic purchasing decisions that if you’re buying from a retail marketer or broker, those are the decisions that the marketer or broker makes with the goal being to enhance their bottom line and their profitability. !e co-op makes those decisions on behalf of the members. It’s a whole di#erent mind-set.” >

J. David Bell, president of the Energy Cooperative of

Pennsylvania, Inc.


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Service and Savings – Beyond Compare….!rough the Energy Cooperative of Pennsylvania, Inc., which is expected to have all licensure and PUC approval in place by early fall, there will be two enrollment models: One will be set up for very large customers, and the other will be for small to medium-sized customers. !ese members – industrial, commercial, institutional – will be able to shop around for their best energy prices, not just once a year, but each month.!ese companies and organizations will have access to a Web site to track their energy usage patterns and get an assessment of

what the benefits are from the co-op. !e energy co-op provides an open-book model, which allows the member to see the actual costs associated with the energy usage at their facility.“When it comes to a customer understanding his price, it’s very complicated,” notes Frank. “If they were to audit what the energy co-op’s prices were, they would simply see the real costs that came through the PJM electricity bidding process.”According to administrators, the energy co-op will be responsible for the recording and actual billing that goes out to users. However, the utility company will continue to deliver the energy and is still the first contact regarding an emergency or power outage. “!e utility then bills the customer for the use of their pipes and wires,” says Frank. “You can call the utility to come fix any service problem; that won’t change.”

Added Benefits for Co-op Members…One of the key advantages of the co-op setup is the added benefit of consultation services. Member companies and institutions will now have a “go-to” resource to examine their current energy use and ways to improve it.“One of the good things about linking up with a company like Synergy,” says Bell, “is that they have been doing this for a number of years and, as a result, they not only have the ability to forecast demand and do those things that are necessary for us to get up and running, but they also have some ancillary projects that they can help our members with. One is the management of energy, looking at your building and your costs and where you can save and get better e"ciencies. One of the things we want to do, as we get into this project, is to use the ability that Synergy has and pass that on to the members so that they can not only save in energy consumption, but also make their operation more e"cient.” >

!e Energy Cooperative of Pennsylvania, Inc.

Established: 2009 by the Manufacturer & Business Association, headquartered in Erie, Pennsylvania.Who Can Enroll: Any business (including educational or health-care institutions, commercial or retail operations, etc.), that is a member of the Manufacturer & Business Association. !ere is no limit on the size of the energy user. How Much Does it Cost to Enroll: Enrollment is free, but participating members of the co-op must be members in good standing of the Manufacturer & Business Association.When Can I Enroll: Once the cooperative has all approvals in place from the state and various agencies, it is expected to start enrollment this fall. Where Do I Enroll: Contact J. David Bell at 814/833-3200 or 800/815-2660, or visit our Web site, www.mbausa.org.Energy Hotline Enrollment: To receive energy updates, please e-mail [email protected].

"e Energy Cooperative of Pennsylvania, Inc. was founded as a way to provide members with low-cost energy solutions.



In addition, Synergy’s support allows co-op members to access information on better ways to conserve energy in their operations. Adds Frank, “!ere’s a number of di#erent things — auditing services, renewable generation projects, conservation projects — pretty much across the board.”Bell says he is confident in the relationship that has been formed, and the value that is being o#ered to Association members who join. “!e co-op is a not-for-profit corporation,” he stresses. “!e reason it’s set up that way is to assure members that this is a benefit to them, and we want to funnel as much savings as we can back to the member.”!e feeling is mutual, says Frank, who has been very impressed with his work with the Association thus far. “We’ve had some interactions with associations, mostly in the New York area and in the Northeast, and I have to tell you, I have never seen such an impressive business association as the MBA. When we made our first trip down to Erie, I was absolutely impressed by the organization that they’ve built, and we are happy to have the chance to provide service for this cooperative.”

For more information or to enroll, contact the Energy Cooperative of Pennsylvania, Inc. at 814/833-3200 or 800/815-2660, or visit the Web site www.mbausa.org.

Expiration of electric rate caps in Pennsylvania by supplier:

• Citizens’ Electric Company of Lewisburg — Already expired

• Duquesne Light Company – Already expired

• Metropolitan Edison Company — December 31, 2010

• PECO Energy Company — December 31, 2010

• Pennsylvania Electric Company — December 31, 2010

• Pennsylvania Power Company — Already expired

• Pike County Power & Light Company — Already expired

• PPL Corporation — December 31, 2009

• UGI Utilities, Inc. - Electric Division — Already expired

• Wellsboro Electric Company — Already expired

• West Penn Power Company — December 31, 2010

!e Energy Cooperative is able to provide cost savings by purchasing directly from the electric grid and natural gas pipeline.

66 < www.mbausa.org < June 2009 66 < www.mbausa.org < June 2009

,..

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As an engineer, my Gannon MBA was the

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WHERE ENTREPRENEURSHIPAND INNOVATION COME TO LIFEInnovative minds attending Gannon University have the unique

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T!is isn’t your mother’s chorus. !ere are no matching robes. No stodgy choral directors. No stu#y concerts.No, with a focus on diversity – faiths, nationalities, cultural and socioeconomic backgrounds – the Young People’s Chorus of Erie (YPC Erie) is singing a di#erent tune. “Our society is unfortunately structured in a way that makes it easy for kids to stay within their ‘comfort zones’ – meaning that they typically only interact with kids who are like them,” says YPC Erie Founder and Artistic Director Jason Bishop, Ph.D., di-rector of choral activities at Penn State Erie, the Behrend College. “While there is nothing wrong with celebrating our similarities, I believe firmly that unless we create opportunities for our young people to interact with others who are di#erent from them, we aren’t really preparing them to live in the real world.”As Erie’s first and only comprehensive youth chorus program in northwest Pennsylvania, YPC Erie currently enrolls more than 100 choristers from more than 50 schools – public, private and parochial – to work, sing and perform together as a focused and structured outlet for their artistic and creative energy. Students ages seven to 18 are selected via a simple audition process – the ability to match pitch, a genuine love for singing and a commit-ment to hard work. It follows the mold of another famous youth choir – the Young People’s Chorus of New York City. !e internationally acclaimed, multicultural youth program has more than 1,100 participants, performing everywhere from Carnegie Hall to the White House. Two of Bishop’s close friends – Francisco and Elizabeth Nunez – serve as artistic director and associate director, respectively, of YPC New York. Bishop saw that such a program could easily be replicated in Erie, which had two youth orchestra programs but no citywide youth chorus.So Bishop initiated conversations with Penn State Erie regarding a new outreach initiative, enlisting the help of Howard Lincoln, chief executive o"cer of Lincoln Metal Processing and avid sup-

porter of arts opportunities for young people.“We spent 2008 forming our board, crafting a three-year budget, devising our marketing plan and launching a major – and ongo-ing – fundraising campaign,” says Bishop. With the groundwork for the chorus in place, Bishop began visit-ing area schools, holding auditions and encouraging students to get involved. It worked.!e inaugural chorus – 100 strong – has been rehearsing since January. YPC Erie is comprised of three choruses – elementary, middle and high school singers who perform at various events around the region.One such occasion will be their largest performance to date, the Manufacturer & Business Association’s 104th Annual Event on June 17, alongside one of the most powerful political figures in the world – the 43rd president of the United States, Keynote Speaker George W. Bush.“!e students are very excited about the opportunity to sing all together for the Association,” says Bishop, “and are especially ex-cited about the opportunity to sing for a former president of the United States.”Practice is everything.“!e hours of rehearsal are numerous to make sure that our sing-ers are always prepared for the energy, e#ort and professionalism that goes into producing quality performance,” says Bishop. While YPC Erie does charge tuition, it is the chorus’s strict policy that no child ever be turned away due to inability to pay.“More than 50 percent of our current enrollment is on scholar-ship,” notes Bishop. “!is results in extensive fundraising e#orts to ensure that we can continue providing the YPC experience to every child, regardless of their financial resources.”To learn more about the Young People’s Chorus of Erie, visit www.partnership-erie.com/ypcerie/.

A Presidential Performance

More than 100 students from the Young People’s Chorus of Erie will perform at the Association’s 104th Annual Event on June 17, under the direction of Jason Bishop, Ph.D. (seated in center).


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Association Leadership

Front row, from left: Dale Deist, president, Deist Industries, Inc.; Philip M. Tredway, president, Erie Molded Plastics, Inc.; Sue Sutto, president, Sue Sutto Realtors, Inc.; Richard Knight, president and CEO, Presque Isle Downs & Casino; John B. Pellegrino Sr., P.E., president and CEO, Ridg-U-Rak, Inc.; and Lorenzo Simonelli, president and CEO, GE Transportation Systems

Back row, from left: Dan Ignasiak, president, SEPCO-Erie; Timothy G. Shuttleworth, president and CEO, Eriez Magnetics; Dennis Prischak, president and CEO, !e Plastek Group; John Cline, president, Sunburst Electronics, Inc.; Mark Kulyk, president, Rogers Brothers Corporation; and Timothy Hunter, president, McInnes Rolled Rings

2009-2010 Manufacturer & Business AssociationBoard of Governors


A

Association Leadership

ChairmanMark C. Kulyk,

president of Rogers Brothers Corporation

Vice Chairman Dan Ignasiak,

president of SEPCO-Erie

2009-10 Executive Committee

TreasurerJohn B. Pellegrino, Sr., P.E.,

president and CEO of Ridg-U-Rak, Inc.

Immediate Past ChairmanTimothy G. Shuttleworth,

president and CEO of Eriez Magnetics

A Message from the Immediate Past Chairman…Timothy G. Shuttleworth, president and CEO of Eriez Magnetics

It was a great honor and privilege to serve this remarkable organization and my fellow members this past year. Thank you for giving me the opportunity.

As I look back on my term as chairman, I can truly say this past year has been one of exciting growth for the Association in many ways. From our new name and new Harrisburg office, to becoming the of-ficial Blue Ocean Strategy Center in the United States, the Association has made significant progress to enhance its services for you, our members. It is because of you and your support that we have continued to assert our role as one of the premier manufacturer and business associations in the United States.

On behalf of the Association, thank you for all you do to contribute to the economic health and prosper-ity of our region and our nation. It has been a pleasure to serve as your 2008-2009 chairman.

Sincerely,

Timothy G. Shuttleworth

New Board Members

John Cline,president of

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Lorenzo Simonelli,president and CEO of

GE Transportation Systems

Richard Knight,president and CEO of

Presque Isle Downs & Casino

Timothy Hunter,president of

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A hospital is where people turn during some of the most miraculous and most challenging times in their lives. From welcoming the newest and most fragile members of their family into the world, to caring for a loved one faced with an injury or illness, hospitals are the stable force that people look to for care.

But hospitals are more than healing centers. !ey are also employers whose contributions to the economy benefit the entire community.

It’s a role that Saint Vincent Health System has filled proudly since its founding by the Sisters of Saint Joseph of Northwestern Pennsylvania in 1875. With nearly 3,000 dedicated associates, volunteers, physicians and nurses, and a multi-year, multi-phase renovation plan that is transforming its Erie-based hospital campus into one of the most state-of-the-art health-care facilities in the region, Saint Vincent has become a beacon of light in the most di"cult of economic times, by continuing to invest in itself and in the community it serves.

“When you’ve been around for 134 years, you have seen recessions, depressions and storms unlike anything we’ve ever heard of,” says President and CEO C. Angela Bontempo, MHA/MBA, FACHE. “So when you talk about stability, I think our family-owned business has weathered some rather big storms.”

In many ways, the positioning of Saint Vincent today, an economic pillar in the Erie area, is due in large part to its founders and visionary leaders. !ese visionaries were committed to the mission of Saint Vincent and laying a strong foundation on which to build.

“When you build a house, or a hospital, in this case, you don’t build it with the intention of taking it down,” explains Bontempo. “It’s built to be firm and here to stay. !at’s the history we’ve been passed down from the Sisters of Saint Joseph. We’re here to serve.”

Saint Vincent is Vital to the Erie EconomySaint Vincent is a major health network that provides quality, a#ordable health care to thousands of patients, around the clock. !e Health System includes a 436-bed, not-for-profit, tertiary care hospital, sta#ed by more than 300 physicians providing care in 35 medical and surgical specialties; as well as a same-day surgery center; imaging center; rehabilitation centers; and 15 medical group and 11 specialty care sites.

!e crowning jewel of this network is Saint Vincent Health Center, Erie’s first and oldest hospital. !e Health Center, which annually serves 1.4 million residents in northwest Pennsylvania, southwest New York and northeast Ohio, is recognized as a leading provider of stroke, heart and cancer care, orthopedics, including hip and knee replacement, and is home to the region’s most advanced neonatal intensive care unit (NICU) — recently renovated at a cost of $2.8 million; and the busiest emergency department (ED) in the region.

How busy? In 2008, 2,308 babies were born at Saint Vincent, twice as many as any other northwest Pennsylvania hospital. During this time, the hospital reported 2,343 heart-related surgeries, and treated 12 percent more orthopedic patients and 10 percent more stroke patients than in 2007. In fact, Saint Vincent’s ED reportedly sees 65,000 patients per year and is responsible for more than 50 percent of the 17,000 hospital admissions annually.

Saint Vincent is ranked in the top 10 percent of hospitals nationwide for quality in hip and knee replacement by the Centers for Medicare and Medicaid Services, and is listed as a !omson/Reuters Top 100 Hospital for Cardiovascular Benchmarks for Success. In stroke and cancer care, respectively, Saint Vincent has earned the Gold Seal of Approval from the Joint Commission for Primary Stroke Centers, and was designated by the American College of Radiology as a Breast Imaging Center of Excellence. Saint Vincent is one of only four hospitals nationwide, and the only hospital in the region, to earn the American Hospital Association/McKesson Quest for Quality Citation of Merit award for “leadership and innovation in patient care, quality, safety and commitment.”

At Saint Vincent, these achievements represent the Health System’s overall vision: to be “the best place to get care, the best place to give care and the place where all people come first.”

Saint Vincent takes this role seriously, not just in the services and continuity of the care it provides, but also by supporting the community in which it operates. Annually, Saint Vincent actively supports various community organizations and projects, including the Second Harvest Food Bank, Sisters of Saint Joseph Neighborhood Network, Saint Paul’s Neighborhood Free Clinic and the redevelopment and revitalization projects of neighborhoods surrounding the Health Center on Myrtle and West 25 streets. !e Health System, administrators say, is always ready and willing to help its neighbors, especially during trying economic times.

“It’s like they say, ‘when things get tough, the tough get going,’ ” says Bontempo. “We plow through this together, because it’s important that we stand shoulder to shoulder.”

And that means making sure patients have access to a#ordable health care. Saint Vincent has already responded to the needs of the community by expanding the guidelines for its Community Care Program to assist patients, the uninsured and underinsured, who need health-care services despite their ability to pay. So far this year, more than $2 million in health-care costs have been covered for more than 3,600 patient visits.

At Saint Vincent, that’s only one piece of the puzzle to making health care more a#ordable. Saint Vincent has looked at its own operations, to increase e"ciency and streamline services to control costs. “One of our goals is stewardship,” notes Bontempo, “and stewardship means taking care of everything we have – don’t waste, use every dollar.”

!e Health System is one of 12 hospitals that participate in group purchasing through a joint venture with Vantage, headquartered at the former Talon Zipper Company in Meadville, to increase its cost e#ectiveness in supplies and materials. And, in the past year, Saint Vincent Health Center has streamlined its food service operations, so that the average room service meal delivery time was reduced to a half-hour versus the 50-minute hospitality industry standard. !e hospital also has drastically improved patient flow and the steps that it takes to admit a patient, especially for those in the outlying regions.

For example, through improved technology and communication with referring hospitals, such as Corry Memorial Hospital, Saint Vincent is >

Founded 134 years ago by the Sisters of Saint Joseph of Northwestern Pennsylvania, Saint Vincent Health System is now a major health network in the tri-state region, including Erie’s first and oldest hospital, Saint Vincent Health Center.

CEO C. Angela Bontempo, MHA/MBA, FACHE, displays the 2008 Non-manufacturing Employer of the Year Award that was presented to Saint Vincent by the Economic Development Corporation of Erie County in early 2009.

!e Sisters of Saint Joseph continue to play an active role in patient care. Shown here, Sr. Colette Palmer of Saint Vincent Pastoral Care comforts heart patient Maria DiSanto.

Saint Vincent has injected millions of dollars into the local community with its multi-year, multi-phase construction project that will solidify Saint Vincent’s standing as one of the premier health-care centers in the area.

June 2009 > www.mbausa.org > 79 78 < www.mbausa.org < June 2009 78 < www.mbausa.org < June 2009

Committed to a Healthy Community

Featured Company

A hospital is where people turn during some of the most miraculous and most challenging times in their lives. From welcoming the newest and most fragile members of their family into the world, to caring for a loved one faced with an injury or illness, hospitals are the stable force that people look to for care.

But hospitals are more than healing centers. !ey are also employers whose contributions to the economy benefit the entire community.

It’s a role that Saint Vincent Health System has filled proudly since its founding by the Sisters of Saint Joseph of Northwestern Pennsylvania in 1875. With nearly 3,000 dedicated associates, volunteers, physicians and nurses, and a multi-year, multi-phase renovation plan that is transforming its Erie-based hospital campus into one of the most state-of-the-art health-care facilities in the region, Saint Vincent has become a beacon of light in the most di"cult of economic times, by continuing to invest in itself and in the community it serves.

“When you’ve been around for 134 years, you have seen recessions, depressions and storms unlike anything we’ve ever heard of,” says President and CEO C. Angela Bontempo, MHA/MBA, FACHE. “So when you talk about stability, I think our family-owned business has weathered some rather big storms.”

In many ways, the positioning of Saint Vincent today, an economic pillar in the Erie area, is due in large part to its founders and visionary leaders. !ese visionaries were committed to the mission of Saint Vincent and laying a strong foundation on which to build.

“When you build a house, or a hospital, in this case, you don’t build it with the intention of taking it down,” explains Bontempo. “It’s built to be firm and here to stay. !at’s the history we’ve been passed down from the Sisters of Saint Joseph. We’re here to serve.”

Saint Vincent is Vital to the Erie EconomySaint Vincent is a major health network that provides quality, a#ordable health care to thousands of patients, around the clock. !e Health System includes a 436-bed, not-for-profit, tertiary care hospital, sta#ed by more than 300 physicians providing care in 35 medical and surgical specialties; as well as a same-day surgery center; imaging center; rehabilitation centers; and 15 medical group and 11 specialty care sites.

!e crowning jewel of this network is Saint Vincent Health Center, Erie’s first and oldest hospital. !e Health Center, which annually serves 1.4 million residents in northwest Pennsylvania, southwest New York and northeast Ohio, is recognized as a leading provider of stroke, heart and cancer care, orthopedics, including hip and knee replacement, and is home to the region’s most advanced neonatal intensive care unit (NICU) — recently renovated at a cost of $2.8 million; and the busiest emergency department (ED) in the region.

How busy? In 2008, 2,308 babies were born at Saint Vincent, twice as many as any other northwest Pennsylvania hospital. During this time, the hospital reported 2,343 heart-related surgeries, and treated 12 percent more orthopedic patients and 10 percent more stroke patients than in 2007. In fact, Saint Vincent’s ED reportedly sees 65,000 patients per year and is responsible for more than 50 percent of the 17,000 hospital admissions annually.

Saint Vincent is ranked in the top 10 percent of hospitals nationwide for quality in hip and knee replacement by the Centers for Medicare and Medicaid Services, and is listed as a !omson/Reuters Top 100 Hospital for Cardiovascular Benchmarks for Success. In stroke and cancer care, respectively, Saint Vincent has earned the Gold Seal of Approval from the Joint Commission for Primary Stroke Centers, and was designated by the American College of Radiology as a Breast Imaging Center of Excellence. Saint Vincent is one of only four hospitals nationwide, and the only hospital in the region, to earn the American Hospital Association/McKesson Quest for Quality Citation of Merit award for “leadership and innovation in patient care, quality, safety and commitment.”

At Saint Vincent, these achievements represent the Health System’s overall vision: to be “the best place to get care, the best place to give care and the place where all people come first.”

Saint Vincent takes this role seriously, not just in the services and continuity of the care it provides, but also by supporting the community in which it operates. Annually, Saint Vincent actively supports various community organizations and projects, including the Second Harvest Food Bank, Sisters of Saint Joseph Neighborhood Network, Saint Paul’s Neighborhood Free Clinic and the redevelopment and revitalization projects of neighborhoods surrounding the Health Center on Myrtle and West 25 streets. !e Health System, administrators say, is always ready and willing to help its neighbors, especially during trying economic times.

“It’s like they say, ‘when things get tough, the tough get going,’ ” says Bontempo. “We plow through this together, because it’s important that we stand shoulder to shoulder.”

And that means making sure patients have access to a#ordable health care. Saint Vincent has already responded to the needs of the community by expanding the guidelines for its Community Care Program to assist patients, the uninsured and underinsured, who need health-care services despite their ability to pay. So far this year, more than $2 million in health-care costs have been covered for more than 3,600 patient visits.

At Saint Vincent, that’s only one piece of the puzzle to making health care more a#ordable. Saint Vincent has looked at its own operations, to increase e"ciency and streamline services to control costs. “One of our goals is stewardship,” notes Bontempo, “and stewardship means taking care of everything we have – don’t waste, use every dollar.”

!e Health System is one of 12 hospitals that participate in group purchasing through a joint venture with Vantage, headquartered at the former Talon Zipper Company in Meadville, to increase its cost e#ectiveness in supplies and materials. And, in the past year, Saint Vincent Health Center has streamlined its food service operations, so that the average room service meal delivery time was reduced to a half-hour versus the 50-minute hospitality industry standard. !e hospital also has drastically improved patient flow and the steps that it takes to admit a patient, especially for those in the outlying regions.

For example, through improved technology and communication with referring hospitals, such as Corry Memorial Hospital, Saint Vincent is >

Founded 134 years ago by the Sisters of Saint Joseph of Northwestern Pennsylvania, Saint Vincent Health System is now a major health network in the tri-state region, including Erie’s first and oldest hospital, Saint Vincent Health Center.

CEO C. Angela Bontempo, MHA/MBA, FACHE, displays the 2008 Non-manufacturing Employer of the Year Award that was presented to Saint Vincent by the Economic Development Corporation of Erie County in early 2009.

!e Sisters of Saint Joseph continue to play an active role in patient care. Shown here, Sr. Colette Palmer of Saint Vincent Pastoral Care comforts heart patient Maria DiSanto.

Saint Vincent has injected millions of dollars into the local community with its multi-year, multi-phase construction project that will solidify Saint Vincent’s standing as one of the premier health-care centers in the area.

June 2009 > www.mbausa.org > 79 78 < www.mbausa.org < June 2009 June 2009 > www.mbausa.org > 79

better able to initiate emergency treatment when minutes and seconds matter most. !is rapid response system allows Corry’s ED physicians to speak to Saint Vincent’s neurointerventionalist and ED team, and examine real-time scans to determine if the treatment at Corry is at the necessary level or if the patient needs to be transferred to Saint Vincent.

!ese e#orts have improved the quality of care and its delivery, while enabling the Health Center to increase its cost e#ectiveness — making Saint Vincent a leader among its peers in the health-care industry. In fact, according to a recent study by Cleverly and Associates, a leading hospital financial analysis group, Saint Vincent is considered to be “very e"cient” compared to other hospitals in the area, the Commonwealth and even those on the East Coast.

“What we’ve done is make everyone’s job e"cient and e#ective,” notes Bontempo. “We’re trying everywhere to become as lean as we can in our processing. By doing this, we can add jobs when programs demand it, which is about 100 to 150 on an annual basis.”

Saint Vincent is One of Erie County’s Largest EmployersAs one of the largest health-care networks in the region, Saint Vincent also has the distinguished honor of being one of the largest employers in the region.

Historically, the Health System has ranked as one of the top five employers in northwest Pennsylvania. For three straight years, Saint Vincent has been named one of the Best Places to Work in PA; and in 2008, the AARP (the American Association of Retired People) selected Saint Vincent as one of the Best Places to Work for people age 50 and older.

!e local community also has embraced Saint Vincent for its role as a major employer and economic driver. In early 2009, the Economic Development Corporation of Erie County presented the hospital with its prestigious 2008 Non-manufacturing Employer of the Year Award, an

honor that recognized the millions of dollars Saint Vincent has invested within the local economy. Hospital administrators project that Saint Vincent has an overall economic impact of $505 million annually in terms of salaries paid and dollars spent within the region.

“I don’t think that people look at a hospital like that,” says Bontempo. “!ey tend to think of other industries. !rough the Health System, we have 3,000 employees who then give back to the community because they are gainfully employed.”

And that number doesn’t begin to count the hundreds of local jobs that the Health System is expecting to create from its multi-year, multi-phase construction project. By 2016, the local community will see not only the final phase of the renovations, but also the full e#ects of a spending multiplier that supports local families, local businesses and the local tax base.

“Health care,” notes Bontempo, “is feeding this economy.”

Building for the Future in ErieWhen you invest in and build a hospital, you are doing so for the next 100 years. !e additions and changes made at Saint Vincent are not short range, but long range plans – investments that have to last many lifetimes.

Currently, Saint Vincent is midway through a 10-year strategic renovation plan projected at $190 million. Already, $70 million has been invested in the past five years for construction projects, including the Hardner Building o"ce complex and 800-space parking garage at West 24 & Myrtle streets, and several of the Health System’s outpatient services now located at the Yorktown Plaza on West 12 Street in Millcreek Township.

!e most recent addition is the Saint Vincent Endoscopy Center which provides the highest quality “scope” tests in a convenient location. !e Yorktown location also includes the Saint Vincent Imaging Center, Sports Medicine and Rehab Solutions along with ACL laboratories.

“We looked at this location as a means of o#ering patients ease of access and more personalized care than a traditional hospital setting,” says Bontempo. “We took an empty space and turned it into a convenient location for our patients who need health services that can be o#ered on an outpatient basis.”

But where Saint Vincent’s economic impact truly shines the brightest is the ongoing construction and renovation at Saint Vincent Health Center, the 1 million square-foot hospital campus on West 25 and Myrtle streets in Erie. According to plans, $120 million is already earmarked for the next phases of construction. !is involves the ongoing project to renovate the hospital’s OB/GYN units, which include the new NICU, new nursery and almost 40 private rooms for new moms; the demolition of the Medical Arts building and hospital boiler plant; the redesign and expansion of the Emergency Department and operating rooms to provide more space for larger surgical equipment; development and relocation of a new entry into the main hospital building with an atrium; four new floors of private patient rooms; as well as a new, “green energy” power and heating facility located underground that will reduce energy costs and pay for itself in two years’ time.

“It will be a very sophisticated unit to deliver heating, ventilating and air conditioning that we need,” explains Bontempo. “!is will enable the Health Center to operate in a much more e"cient way, and that’s important for cost savings as well as for energy savings.”

According to hospital administrators, when “Saint Vincent decides on building projects and technology, we do so with the patient in mind. We don’t build or buy for the sake of buying; we build and buy what is necessary for our patients and what would be of the most value to the community.”

It’s why Saint Vincent expects to be a pivotal player — in health care and the Erie economy — for years to come.

For more information, visit www.saintvincenthealth.com.

232 West 25 Street Erie, Pa. 16544 • 814/452-5000 www.saintvincenthealth.com

We know how to treat people.TM

The Saint Vincent Mission:

Inspired by the Sisters of St. Joseph of Northwestern Pennsylvania, Saint Vincent Health System is a community of caregivers dedicated to bringing God’s healing love to all, and committed to compassion and excellence in the delivery of a

continuum of holistic care.

!e Saint Vincent Endoscopy Center is the newest addition to the Yorktown Center. Patients no longer have to travel to the hospital for testing and can take advantage of the facility’s location in a central shopping district.

Christy Heath watches over son, Robert, in Saint Vincent’s Neonatal Intensive Care Unit (NICU), one of the premier centers for neonatal care in the region.

Saint Vincent has one of the busiest Emergency Department’s in the region. Plans are now under way to expand its current department to make way for easier access and more state-of-the-art equipment.

Joy Grande of Saint Vincent’s Cuisine on Call food service program delivers nutritious meals at flexible mealtimes, thus increasing patient satisfaction and reducing waste.

June 2009 > www.mbausa.org > 81 80 < www.mbausa.org < June 2009 80 < www.mbausa.org < June 2009

better able to initiate emergency treatment when minutes and seconds matter most. !is rapid response system allows Corry’s ED physicians to speak to Saint Vincent’s neurointerventionalist and ED team, and examine real-time scans to determine if the treatment at Corry is at the necessary level or if the patient needs to be transferred to Saint Vincent.

!ese e#orts have improved the quality of care and its delivery, while enabling the Health Center to increase its cost e#ectiveness — making Saint Vincent a leader among its peers in the health-care industry. In fact, according to a recent study by Cleverly and Associates, a leading hospital financial analysis group, Saint Vincent is considered to be “very e"cient” compared to other hospitals in the area, the Commonwealth and even those on the East Coast.

“What we’ve done is make everyone’s job e"cient and e#ective,” notes Bontempo. “We’re trying everywhere to become as lean as we can in our processing. By doing this, we can add jobs when programs demand it, which is about 100 to 150 on an annual basis.”

Saint Vincent is One of Erie County’s Largest EmployersAs one of the largest health-care networks in the region, Saint Vincent also has the distinguished honor of being one of the largest employers in the region.

Historically, the Health System has ranked as one of the top five employers in northwest Pennsylvania. For three straight years, Saint Vincent has been named one of the Best Places to Work in PA; and in 2008, the AARP (the American Association of Retired People) selected Saint Vincent as one of the Best Places to Work for people age 50 and older.

!e local community also has embraced Saint Vincent for its role as a major employer and economic driver. In early 2009, the Economic Development Corporation of Erie County presented the hospital with its prestigious 2008 Non-manufacturing Employer of the Year Award, an

honor that recognized the millions of dollars Saint Vincent has invested within the local economy. Hospital administrators project that Saint Vincent has an overall economic impact of $505 million annually in terms of salaries paid and dollars spent within the region.

“I don’t think that people look at a hospital like that,” says Bontempo. “!ey tend to think of other industries. !rough the Health System, we have 3,000 employees who then give back to the community because they are gainfully employed.”

And that number doesn’t begin to count the hundreds of local jobs that the Health System is expecting to create from its multi-year, multi-phase construction project. By 2016, the local community will see not only the final phase of the renovations, but also the full e#ects of a spending multiplier that supports local families, local businesses and the local tax base.

“Health care,” notes Bontempo, “is feeding this economy.”

Building for the Future in ErieWhen you invest in and build a hospital, you are doing so for the next 100 years. !e additions and changes made at Saint Vincent are not short range, but long range plans – investments that have to last many lifetimes.

Currently, Saint Vincent is midway through a 10-year strategic renovation plan projected at $190 million. Already, $70 million has been invested in the past five years for construction projects, including the Hardner Building o"ce complex and 800-space parking garage at West 24 & Myrtle streets, and several of the Health System’s outpatient services now located at the Yorktown Plaza on West 12 Street in Millcreek Township.

!e most recent addition is the Saint Vincent Endoscopy Center which provides the highest quality “scope” tests in a convenient location. !e Yorktown location also includes the Saint Vincent Imaging Center, Sports Medicine and Rehab Solutions along with ACL laboratories.

“We looked at this location as a means of o#ering patients ease of access and more personalized care than a traditional hospital setting,” says Bontempo. “We took an empty space and turned it into a convenient location for our patients who need health services that can be o#ered on an outpatient basis.”

But where Saint Vincent’s economic impact truly shines the brightest is the ongoing construction and renovation at Saint Vincent Health Center, the 1 million square-foot hospital campus on West 25 and Myrtle streets in Erie. According to plans, $120 million is already earmarked for the next phases of construction. !is involves the ongoing project to renovate the hospital’s OB/GYN units, which include the new NICU, new nursery and almost 40 private rooms for new moms; the demolition of the Medical Arts building and hospital boiler plant; the redesign and expansion of the Emergency Department and operating rooms to provide more space for larger surgical equipment; development and relocation of a new entry into the main hospital building with an atrium; four new floors of private patient rooms; as well as a new, “green energy” power and heating facility located underground that will reduce energy costs and pay for itself in two years’ time.

“It will be a very sophisticated unit to deliver heating, ventilating and air conditioning that we need,” explains Bontempo. “!is will enable the Health Center to operate in a much more e"cient way, and that’s important for cost savings as well as for energy savings.”

According to hospital administrators, when “Saint Vincent decides on building projects and technology, we do so with the patient in mind. We don’t build or buy for the sake of buying; we build and buy what is necessary for our patients and what would be of the most value to the community.”

It’s why Saint Vincent expects to be a pivotal player — in health care and the Erie economy — for years to come.

For more information, visit www.saintvincenthealth.com.

232 West 25 Street Erie, Pa. 16544 • 814/452-5000 www.saintvincenthealth.com

We know how to treat people.TM

The Saint Vincent Mission:

Inspired by the Sisters of St. Joseph of Northwestern Pennsylvania, Saint Vincent Health System is a community of caregivers dedicated to bringing God’s healing love to all, and committed to compassion and excellence in the delivery of a

continuum of holistic care.

!e Saint Vincent Endoscopy Center is the newest addition to the Yorktown Center. Patients no longer have to travel to the hospital for testing and can take advantage of the facility’s location in a central shopping district.

Christy Heath watches over son, Robert, in Saint Vincent’s Neonatal Intensive Care Unit (NICU), one of the premier centers for neonatal care in the region.

Saint Vincent has one of the busiest Emergency Department’s in the region. Plans are now under way to expand its current department to make way for easier access and more state-of-the-art equipment.

Joy Grande of Saint Vincent’s Cuisine on Call food service program delivers nutritious meals at flexible mealtimes, thus increasing patient satisfaction and reducing waste.

June 2009 > www.mbausa.org > 81 80 < www.mbausa.org < June 2009 June 2009 > www.mbausa.org > 81

for the next generation of medicine.

LECOMJohn M. & Silvia Ferretti Medical Fitness and Wellness Center

Why is osteopathic medicine the fastest growing field in health care? For the same reason that the Lake Erie College of Osteopathic Medicine is the fastest growing medical school in the country and is a leader in preparing the next generation of physicians and pharmacists. With campuses in Erie, Pennsylvania and Bradenton, Florida and an additional location in Greensburg, Pennsylvania, LECOM is one of the largest and most progressive medical colleges in the U.S., offering a unique and innovative curriculum in osteopathic medicine, pharmacy and medical education.

LECOM students experience medicine that considers the whole person - medicine that partners with its patients. Opening a new Medical Fitness and Wellness Center, with Millcreek Community Hospital and Medical Associates of Erie, LECOM takes that partnership to the entire community .

At the John M. & Silvia Ferretti Medical Fitness & Wellness Center, we believe a peaceful mind and a calm spirit are just as important as a healthy body. In keeping with the Osteopathic philosophy of nurturing the mind, body and spirit, we approach health and fitness from a holistic, medically integrated perspective.

Our center provides an environment designed to focus on your total well-being. We offer something for every wellness goal, from day-to-day health and fitness, to sports performance training and rehabilitation.

THE JOHN M.& SILVIA FERRETTI MEDICAL FITNESS & WELLNESS CENTER Millcreek Community Hospital

MEDICAL LIElciolM LAKE ERIE COLLEGE OF OSTEOPATHIC MEDICINE ASSOCIATES OF ERIE

www.LECOM.edu

Con

ifer R

ealt

y, L

LC

Company

PROFILEConifer Realty, LLC2101 Peninsula DriveErie, PA 16506

Contact:Marilyn O. Thomas, CPMRegional Manager


Phone: 814/833-7665

Fax:814/833-8865

Web Site:www.coniferllc.com

Date Founded:1975

Company Description:Conifer is a full service real estate company specializing in the development, construction and management of high-quality, affordable housing communities. Since its inception in 1975, the company has developed more than 225 properties representing 16,000-plus multi-family units.

In 1996, Conifer merged op-erations with Home Properties, Incorporated, a public real estate investment trust. During the ensu-ing five years, the Conifer division grew considerably, acquiring and developing approximately 5,000 multi-family units.

In December 2000, Conifer’s management team purchased the affordable housing operating unit from Home Properties. The resulting private company main-tains offices in Rochester, New York; Mount Laurel, New Jersey; Erie, Pennsylvania and Baltimore, Maryland, to serve the affordable housing market in these states.

In 2005, Conifer and LeChase Construction Services, LLC joined forces to create Conifer-LeChase Construction, LLC (“CLC”), combining the LeChase organiza-tion’s construction expertise with Conifer’s extensive knowledge of the affordable housing indus-try. The addition of a full-service construction company completes the company’s “one-stop-shop” service approach which includes development, construction, man-agement, legal, finance, account-ing, tax credit compliance, and ownership services.

At the heart of the Conifer or-ganization is an experienced team of more than 500 highly skilled professionals who, with a demonstrated entrepreneurial spirit, have helped our organiza-tion assume a leadership role in the affordable housing industry. Today, Conifer is the 14th largest owner of affordable housing in the nation, 17th largest developer, and ranks sixth among the top 10 companies completing acqui-sitions, according to Affordable Housing Finance Magazine.

The company has an available $5 million line of credit with M&T Bank and maintains banking relationships with several financial institutions. In addition, LeChase Construction Services has a $500-million bonding capacity available to CLC.

Conifer currently owns and man-ages more than 10,000 multi-fam-ily units in 170 apartment com-munities. In addition, more than 600 units are under construction, and approximately 25 projects are in various stages of the develop-ment process.

Conifer’s commitment to quality design and construction, superior property management services and quality of life for our residents remains the cornerstones of Conifer’s success.


~

~ conifer

a real estate development and management company

building opportunities) achieving dreams™

Joel M. SnavelyLawrence C. BollaFrank L. Kroto, Jr.

Kristin Prechtel

2222 W. Grandview Blvd. Erie, PA 16506 | 814/833-2222 Phone | 814/833-6753 Fax | www.quinnfirm.com

Not to mention your bottom line.

At the Quinn Law Firm, we know that the manufacturing world is not immune to

commercial litigation—and the resulting disruption of your business. That’s why we’ve

enlisted tough, experienced attorneys to head our commercial litigation team. If your

business is facing pending litigation, our experts will strategically assess your objectives—

as well as your potential risks—to provide the best possible legal solution. Our goal is

to finalize litigation issues quickly, favorably and affordably, whether through settlement,

alternative-dispute resolution or trial. To learn more about our services, go to our web

site at www.quinnfirm.com, or contact us today.

Disputes can disrupt your operations.

George JosephJohn M. Quinn, Jr. Arthur D. Martinucci

Michael S. Jan Janin Michael P. Kruszewski Nicholas R. PagliariJohn W. McCandlessPaul F. Burroughs

©2009 The PNC Financial Services Group, Inc. CS-33520

If you stepped aside from your business, who would take your place?

At the Private Client Group, we’ll work with you to help determine your best

option – whether it’s leaving your business as part of your legacy or selling

it outright. We’ll help to seamlessly integrate the transfer of your business ownership

into your financial and estate plans so you can move on to new ventures or begin

your well-deserved retirement. All along the way, count on us to protect your financial

interests, as well as those of your family and key employees.

Now that we’re part of PNC, you can rely on our reputation as one of America’s best-

performing large banks. With an A rating from Standard and Poor’s* and over $110 billion

in assets under management**, let our strength and stability be the basis for yours.

Trust is something we earn.To experience the Private Client Group in Erie,

call Steve Shilling, at 814.871.1276.

WEALTH PLANNING | Investments | Private Banking | Trust & Estate Services

NationalCity.com/PrivateClientGroup

The PNC Financial Services Group, Inc. (“PNC”) provides investment and wealth management, fiduciary services, FDIC-insuredbanking products and services, and lending and borrowing of funds through its subsidiaries, PNC Bank, National Association,PNC Bank, Delaware and National City Bank, which are Members FDIC. PNC does not provide legal, tax or accounting advice.

*As of January 19, 2009. **As of December 31, 2008.

Investment products are:

-----

- -

-Hl~~ Owner

It's a promise! A promise that it'll be done right ... the first time. Exceeding your expectations is our #1 goal.

A promise that you'll get the best door that money can buy. After all, Clopay is America's Favorite Garage Door® and the only garage door with the Good Housekeeping seal of approval!

And a promise that we're here for you, today and tomorrow. We've been in business for over 40 years. If we haven't met yet, we look forward to the opportunity of earning your business.

Call us first, or call us last ... you have my personal promise of quality, service and value.

Overhead Doors Electric Operators Hollow Metal Doors and Hardware

RESIDENTIAL & COMMERCIAL Free Estimates: 476-7717 Toll Free: 1-800-473-7329 PlylerDoor.com 1-79 at McKean Exit

,\.YLI~ OVERHEAD DOOR CO. A Division of Ply ler Enterprises, Inc.

SALES - SERVICE - INSTALLATION

~_..... ~Ma~ter. I VISA I

Member FDIC. Citizens Bank is a brand name of RBS Citizens, N.A. and Citizens Bank of Pennsylvania.

I~ Citizens Bank Not your typical bank~

Small Business Advantage

Small Business Advantageupmchealthplan.com/smallbusiness.

Plans for SmallBusinesses

What’s Inside.

This managed care plan may not cover all your health care expenses. Read your contract carefully to determine which health care services are covered. If you have questions, call Member Services at 1-888-876-2756.

Erie Office:Village West #133330 West 26th Street814-833-6633

422_1_UPHP Small Biz_MANP RESIZE:Layout 1 4/30/08 9:41 AM Page 1 PRSRT STD US POSTAGE

PAID ERIE, PA

PERMIT #199


june 2009 annual report

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