INSIDE CORBETTS 2013 BUDGETHIS LEGACY IS ALMOST SHAPED

A JOURNAL OF BUSINESS AND POLITICSPHILADELPHIA EDITION FEBRUARY 7, 2013

BUCKS COUNTY SAYS I DO TO WEDDING BUSINESS

Increasingly expected to spearhead growth & innovation, they see reasons for optimism in 2013.

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PRESIDENT AND PUBLISHER James D. McDonaldEDITORIAL DIRECTOR Karl M. SmithASSOCIATE EDITOR Terrence CaseyCONTENT TEAM Brandon BakerCONTRIBUTORS Karen Fratti, Don Lee, Charles Gerow, Timothy Holwick, Eric Boehm, Melissa DanielsPROOFREADER Denise GerstenfieldADVERTISING DIRECTOR Larry SmallacombeDIRECTOR OF BUSINESS DEVELOPMENT Deidre AffelADMINISTRATIVE COORDINATOR Zelinda Barnes

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2040 Market Street

Precision Realty Group is pleased to announce that the Pennsylvania Liquor Control Board (PLCB) has signed a long term lease for a flagship location at 2040 Market Street. Fine Wine and Good Spirits will join National Penn Bank to complete the retail portion of the former AAA Building on the corner of 21st and Market Streets. Shaun M. Lyons, President of Precision Realty Group handled the transaction on behalf of PMC Property Group. The PLCB will occupy 10,000 SF with the premium state store set to open in late Spring of 2013.

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30

Corbett PresentsChallenge for Lawmakers ! The governors spending plan challenges lawmakers, but only time will tell if they are up to the task of making it happen.

12

7 FEBRUARY 2013

23

Editorial: Smart Plan,Savvy Moves ! Gov. Corbett does the right thing by ignoring sagging poll numbers to deliver a budget that addresses real problems like infrastructure and pensions while taking advantage of opportunities such as the privatization of the states liquor stores.

29

Why Bucks Says I Do to Weddings! The tourism office knows theres big business in wooing prospective brides to the county.

CONTENTS

20

Complex Picturefor Top Court! With one justice facingprison time and anotherseeking retention, despite thefact that he would facemandatory retirement in amatter of months,the makeup ofPennsylvaniasSupreme Courtwill soon change.

Looking to CFOsfor answers ! Chief Financial Officersare increasingly lookedto for leadershipand to drive bothgrowth andinnovation. An exhaustivesurvey shows them tobe cautiously optimisticabout 2013s opportunitiesand challenges.

Theres No Time Like the Present ! In this weeks installment, we meet a Wharton student who is capitalizing on new connections to get his business rolling, a company born out of a University of Pennsylvania classroom, advice on why you should never fire a client and a spotlight on education startups.

152013: YEAR OF THE INNOVATOR

As a business leader, never forget the power that a highly motivated team can deliver.DR. MICHAEL S. BRODER

GOV. CORBETTS 2013 BUDGET

4 REGIONSBUSINESS.COM7 FEBRUARY 2013

Karl Smith is the Editorial Director for Regions Business. You can contact him atksmith@regionsbusiness.com.

I was lucky enough to attend last weeks Philly Think Tank, a fantastic event sponsored by Dell.

Dell has been taking this show around the country, and its beau-tiful in its simplicity - get together a bunch of entrepreneurs and small business people, give them access to some experts and fi gure out what needs to be done to help businesses prosper.

For Dell, its smart business because small businesses crave technology. So if Dell can help them grow, the small businesses will have the ability to acquire technology, which is what Dell sells. And, as we learned, Dell creates its technology to scale up, not down, meaning they create it for use by small business with the intention that it can be scaled up to work for larger businesses.

For the Philly event, Dell cor-ralled some big names, includ-ing Josh Kopelman, who talked about technology and did so in a way that made you think that we might actually be fl ying around in those jetpacks they all prom-ised us as kids. Melinda Emerson (Twitter: @smallbizlady) put on a dynamic presentation, too.

However, the one that hit home for me was the most low-key of the three. Ami Kassar of Multi-funding.com talked about money, which is always a great topic. He didnt have the frenetic energy of Ms. Emerson or the big picture visions of Mr. Kopelman.

You see, Mr. Kassar helps small businesses get loans, the very life-blood of a growing business. Im hoping well be able to get him to share more ideas in an upcoming

edition, but for now, its impor-tant to talk about some of the highlights of his presentation.

Most alarmingly, he said he does not deal with large banks when it comes to small business loans. Note that he didnt say he doesnt like to work with large banks, he does not work with large banks. Period.

Basically, each small business loan is quirky and has hair and, in Mr. Kassars view, big banks just cant give them the attention they require.

Since big banks control most of the capital, the fact that its too di! cult for small businesses to get loans there is a problem. A very real, very big problem.

Second, Mr. Kassar noted that most small businesses dont do a good enough job (in the view of

large banks) with their books to qualify for loans with reasonable terms. He pointed to one example where the interest on a loan went up 20 points because the books were behind by six months.

Big banks talk all the time - through advertising and market-ing - about helping small busi-nesses. Its time to put that talk aside and have some action. The Fed is lending money practically for free and that should - should- allow small businesses to get the loans they need. That is not happening, which is troubling on many levels.

Small businesses can put the economy into overdrive and big banks could be the fuel that makes it happen. But not without rethinking their rules. Now is the perfect time to do that.

An Open Memo To Big Banks: Please Help

EDITORSDESK

EDUCATION

Navy Yard Celebrates 10,000 Jobs

The Philadelphia Industrial Develop-ment Corporation (PIDC), Philadelphias citywide economic development corpo-ration, was joined by Mayor Michael A. Nutter and many of the public and private sector partners and tenants to celebrate reaching 10,000 employees at The Navy Yard, and to unveil an updated Master Plan to accommodate the phenomenal investment and job growth that has made The Navy Yard the most successful Navy base redevelopment in the country.

The 10,000-employee milestone con-firms the rebirth of The Navy Yard as it exceeds pre-closure employment levels at the former Navy base.

The Navy Yard is a 1,200-acre business campus with 130 companies occupying more than 6.5 million square feet of o!ce, industrial, manufacturing, and research and development space.

Make no mistakeThe Navy Yard is a major engine of economic growth, and it promises to be better than ever in the years to come, said Mayor Nutter, who was the keynote speaker at the celebratory event.

John Grady, PIDC president, said the campus would formally reach the 10,000-employee mark Monday, when GlaxoSmithKline began to transition into its new, 208,000 square-foot building.

We want to thank all 130 companies and 10,000 employees for helping us reach this historic point in The Navy Yards

rebirth, Mr. Grady said. This achieve-ment reflects the commitments made by private employers, universities, developers, and the Navy, who have all taken the risks to locate and grow their businesses at The Navy Yard, as well as the people who come to work here every day.

The Master Plan 2013 Update allows for an expansion of the campus, based on historic preservation, sustainability, and smart growth.

The Plans vision includes environ-mentally friendly workplaces, notable architecture, industrial and commercial development, public spaces, waterfront amenities, improved mass transit, and residential development.

The Navy Yard will support up to 13.5 million square feet of facilities, attract $3 billion in private investment, and employ more than 30,000 people.

BY THE NUMBERS

10,000Jobs now at The Navy Yard

2,500Employees added

since 2008

30,000Target number of jobs

at The Navy Yard

130Companies located

at The Navy Yard

65%Companies at The Navy Yard that are new to Philadelphia

1,200Acres covered

by The Navy Yard

6.5MSquare feet of office space

now at The Navy Yard

$3BTargeted private investment

in The Navy Yard

13.5MSquare feet of facilities in

the Master Plan for The Navy Yard

PHILADELPHIA INDUSTRIAL DEVELOPMENT CORPORATION

Former Schools Superintendent Ackerman Dies

Former Philadelphia School District Superintendent Arlene C. Ackerman

a self-described war-rior for the children whose three-year term in Philadelphia was surrounded by praise but ended in controversy died from pancreatic cancer February 2 at her home in Albuquerque, NM.

$25M Donation Funds Political Science, Economics Center

University of Pennsylvania alumnus Ronald O. Perelman donated $25 million to his alma mater to establish the Ronald O. Perelman Center for Political Science and Economics.

The center, located in the West Phila-delphia Trust Building at 36th and Wal-nut Streets, will be the new home of the Political Science and Economics depart-ments in the School of Arts and Sciences.

Ron Perelmans extraordinary gen-erosity will enable us to create an out-standing center for political science and economics, two of Penns most popular undergraduate majors, Penn President Amy Gutmann said.

5REGIONSBUSINESS.COM7 FEBRUARY 2013

Pat Woody, department head of NAVSSES, speaks at The Navy Yard Friday. FACEBOOK.COM/THENAVYYARD

MAKE NO MISTAKE THE NAVY YARD IS A MAJOR ENGINE OF

ECONOMIC GROWTH, AND IT PROMISES TO BE BETTER THAN EVER IN THE YEARS TO COME.MAYOR MICHAEL NUTTER

WEEKLY BRIEFING

Pa. Faculty Union Tentatively Agrees to 4-Year Contract

A negotiation committe representing faculty at Pennsylvanias state colleges and universities tentatively agreed to a four-year contract after a weekend-long negotiation session with the Pennsylva-nia State System of Higher Education.

The deal o"ers salary increases of 11.5 percent or 19 percent bringing total salaries between $44,795 and $107,870

for members of the Association of Pennsylvania State College and Univer-sity Faculties.

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8 REGIONSBUSINESS.COM7 FEBRUARY 2013WEEKLY BRIEFING: DEVELOPMENT

REAL ESTATE

Citys Most Expensive Zip CodesAnalysis conducted by Point2 Homes shows in which zip codes homes are listed at the highest prices.

$649,900Median asking price of homes in zip code 19118 (Chestnut Hill)

$637,000Median asking price of homes in zip code 19107 (Chinatown)

$560,000Median asking price of homes in zip code 19103 (Center City West)

$408,700Median asking price of homes in zip code 19102 (Center City)

$399,000Median asking price of homes in zip code 19106 (Society Hill)

$388,800Median asking price of homes in zip code 19123 (Northern Liberties)

$329,900Median asking price of homes in zip code 19147 (Passyunk Square, Queen Village, Bella Vista/Southwark)

PHILADELPHIA REAL ESTATE BLOG

Brandywine Realty To Redevelop Office at 1900 Market St.

Brandywine Realty Trust, of Radnor, Pa., purchased 1900 Market Street in Philadelphia for $34.8 million in the fourth quarter and plans to redevelop the site to be a Class A o!ce building by late 2015, the company announced.

The 456,922-square-foot o!ce space is 76 percent occupied, but Cozen OConnor which occupies more than 200,000 square feet is expected to leave the building when its lease expires in December 2015.

Liberty Property Trust to Build $5M Office

Liberty Property Trust is planning to spend about $5 million to develop a six-story, 200,000-square-foot o!ce build-ing for The Vanguard Group at the Great Valley Corporate Center in Malvern, Pa.

Construction of the building, which was designed by D2Ca Architects, will begin in March with an estimated com-pletion date of mid-2014.

US GSA Moving Into Historic City Office

The U.S. General Services Adminis-tration, which is currently at 8th and Market Streets in Philadelphia, will move into the Dow Chemical Companys historic city office in late 2014, Dow announced recently.

Leasing the 122,000 square feet in the Dow building allows GSA to keep its about 600 employees in downtown Philadelphia.

The Dow o!ce building was added to the National Register of Historic Places in 2007, according to a company state-ment.

COMMERCIAL REAL ESTATE

DRWC Moves Foward With Penns Landing Makeover

BY ISAAC RIDDLE

Penns Landing is on its way to a long-needed makeover. The Delaware River Waterfront Corporation has submitted requests for qualifications by reputed firms to conduct preliminary design and engineering for a makeover of Penns Landing.

Interested firms will need to follow the guidelines set for Penns Landing in the Delaware River Master Plan adopted by the city in March 2012.

According to the DRWC press release, the Master Plan identifies Penns Land-ing as one of three priority sites that are intended to spur development along the waterfront.

The selected firm will have the task of designing a way to connect Penns Landing to the Old City neighborhood. Currently, Interstate 95 and the busy Columbus Bou-levard serve as barriers between the park and the historic neighborhood.

The current plan for Penns Landing is to cap the four acres over I-95 between Chestnut and Walnut streets. A four-acre sloping park will further connect the newly capped portion of the freeway to the waterfront.

Penns Landings infamous concrete landscape will also be replaced with a large lawn surrounded by trees.

Apart from eliminating barriers between Old City and the waterfront, DRWC is also asking firms to engineer an extension South Street so that it no longer stops at Columbus Boulevard but instead connects directly to the waterfront.

The DRWC is also considering removing the Market Street scissor ramp and sur-face parking lot and replacing that space with a mixed-use development.

Proposals will be due to the DRWC on March 4, with interviews taking place March 18.

According to the DRWC, the design process will be done in two phases. The first phase will be the preliminary design and engineering phase. Phase two will include a feasibility study as well as plans for implementation of the selected firms proposal.

Construction will not begin until the first two phases are complete and the necessary funding and support is acquired.

The study is being funded by the Wil-liam Penn Foundation.

This article originally appeared on the Philadelphia Real Estate Blog.

Rendering of the plan for Penns Landing DELAWARE RIVER WATERFRONT CORPORATION

9REGIONSBUSINESS.COM7 FEBRUARY 2013 WEEKLYBRIEFING

WHO TO FOLLOW

@PPDJoeMurray

Joseph Murray

This Philadelphia Police detective is as

entertaining as he is informative about crime

and dangerous conditions in the city.

RT @PPDJoeMurray: Disclaimer: I dont pretend

to know how hard it is to carry a purse around.

Please dont berate me for the following tweet. Im

sensitive.

RT @PPDJoeMurray: Hanging purses on the back of your chair is a very very

bad idea. Putting your purse on the ground? Bad idea.

Purse unzipped? Awful idea.

RESTAURANT ROUNDUP

Philly Cooks Week

Philadelphia magazines Philly Cooks Week is offering three restaurant tours each night between February 25 and 27. The final four tours were announced this week.

Rittenhouse Tour #2 (5:15-7:45 February 26)Zama, Lacroix and Il Pittore

Washington Square West Tour(5:15-7:45 February 26)Kanella, Talulas Garden and Chifa

South Street Tour(5:15-7:45 February 27)Supper, Percy Street, Brauhaus Schmitz

Fishtown Tour(5:15-7:45 February 27)Kraftwork, Fette Sau, Frankford Hall

FOOBOOZ.COM

EXECUTIVE BOOKSHELF MUST-HAVE APP

GOTTA-HAVE-IT GADGET

CreativeshipIn his new book, Creativeship: A Novel

for Evolving Leaders, noted author and business consultant Bob Kelleher reveals the meaning of Creativeship and the six interdependent business pillars that cre-ate sustainable businesses and cultures.

Mr. Kel leher, the founder of The Employee Engagement Group and for-mer Fortune-500 Chief Human Capital Officer, has traveled the globe shar-ing his insights on employee engagement, leadership,

workforce trends and, most recently, Creativeship.

Based on Mr. Kellehers own experi-ence and the current issues facing todays businesses, the story in Creativeship is supported by learning points, suggested readings, best practices, and examples.

Disclaimer: I dont pretend

Please dont berate me for

Mr. Kel leher, the founder of The Employee Engagement Group and for-mer Fortune-500 Chief Human Capital Officer, has traveled the globe shar-ing his insights

workforce trends and, most

AmiigoUnlike other fi tness trackers, Ami-

igo ($99-$119, Amiigo.co) actually knows what exercise is being per-formed and sends information to your smartphone.

Sensors in the bracelet corre-late with upper body exercises and sensors in the shoe-clip focuses on the lower body.

Cozi, a free app on both the Android and iOS markets, includes a shared calendar, shopping lists, to-do lists and a family journal.

An ad-free version of the app is available for purchase.

Cozi was given a 2012 Appy Award for Best Family/Parent-ing app and was named the No. 1 iPhone app for moms by Circle of Moms.

Cozi Family Organizer

10 REGIONSBUSINESS.COM7 FEBRUARY 2013WEEKLY BRIEFING

GAMING

Blatstein Dumps Hard Rock for ProvenceSaying that working with Hard Rock Resort & Casino and the Seminole tribe of Florida wasnt practical, Tower Investments founder Bart Blatstein said he would be using the Isle of Capri as the operator of his proposed North Broad Street entertainment complex, The Provence, The Philadelphia Inquirer reported.Isle of Capri operates 15 casinos across the country and serves 2 million visitors annually, according to its website, islecorp.com.

Blatstein Pays Overdue TaxesMr. Blatstein recently paid a $120,274.89 debt to the City of Philadelphia for back taxes owed on a Northern Liberties building. However, according to WHYYs NewsWorks, Mr. Blatstein should not have been charged more than $120,000. He will reportedly receive a refund of about $24,250, so long as he is up to date on his other properties taxes.

Slot Revenue Drops Slightly

$188MGross revenue at

Pennsylvanias 11 casinos in January

1.19%Decrease in slot machine

revenue when compared to January 2012

Parents Magazine Names CHOP No. 1

Parents magazine named Childrens Hospital of Philadelphia the No. 1 pediatric hospital in the United State. The results of the complete survey will appear in the March 2013 edition of the magazine. The hospitals cancer center and emergency medicine division also earned No. 1 rankings.

Neonatology ranked second, and orthopedics and pulmonology ranked third in their respective categories.

Lower Bucks Bank Names New CEO

Bucks Countys oldest bank has named Daniel J. Scha!er its new chief executive o"cer, PhillyBurbs.com reported.

Mr. Schaffer had been president of First National Bank and Trust Co., of Newtown, since November 2011. He took over as CEO on January 15.

BANKING

Philadelphias Suit: Yuengling Owes $6.6M in Taxes

The City of Philadelphia filed a suit in the Court of Common Pleas January 30 claiming D.G.

Yuengling & Son Inc. owes $6.6 million in business-related taxes, fees and penalties.

Yuenglings chief operating officer, David A. Casinelli said it likely has to do with a dispute between the brewery and the city over the business privilege tax, the Associated Press reported.

TAXES

HEALTH CARE

Controversial Gas Tax Shift Could Rebuild States Roads

BY MELISSA DANIELS

HARRISBURG Penn-sylvania could finally see some serious improve-ments in roads and bridges, but only if lawmakers are willing to follow the gov-ernors plan to raise funds through a plan that might also boost gas prices.

On the same day Gov. Tom Corbett introduced his 2013-2014 budget pro-posal, he announced a plan to generate more than $5 billion in transportation funding over five years, mostly from a change in the way gas taxes are levied.

Under Gov. Corbetts plan, funds would come from lowering the flat tax paid by consumers while increasing the tax gas sta-tions pay on fuel.

Gov. Corbett and other administration officials maintain this wouldnt necessarily raise gas prices, as pump prices are deter-mined by a variety of fac-tors, including the price of crude and location.

Next year, Gov. Cor-bett predicts, the state

will spend about half a billion dollars on roads, bridges, public transporta-tion, locally owned roads and other system-wide improvements.

By the fifth year of the plan, the states transpor-tation system would see about $1.8 billion worth of improvements.

The Corbett plan may go nowhere in a state with dozens of lawmakers who have taken the no-new-taxes pledge.

House Majority Leader Mike Turzai, R-Allegheny, said lawmakers on both sides of the aisle want to discuss solving the states transportation funding issues.

Rep. Turzai said he did not think the governors proposal is necessarily the definitive proposal or that it will get passed by the June 30 budget deadline.

But he promised to give the proposal a very, very serious look, he said.

I think theres going to be a significant discus-sion about what the size and shape of funding, any

additional funding, for transportation would be, Rep. Turzai said.

House Appropriations Chairman Bill Adolph, R-Delaware, said that if lawmakers can pass a transportation bill, it would have to have bipar-tisan support.

During his budget address, Gov. Corbett said transportation is the bloodstream of the states economy. About a half-tril-lion dollars worth of goods and services move across the sprawling Keystone State annually, along with 1.5 million school children riding on buses, he said.

If it fails, our economy fails, he said.

Gov. Corbett maintained that he does not think this proposal is a tax increase.

The oil company fran-chise tax applies to gaso-line sold at the wholesale level. The cap is applied to the first $1.25 of a gallon. Gov. Corbetts proposal would phase that down and remove it completely within five years.

PA Independent

Pennsylvanias aging bridges and roads could receive necessary improvements if Governor Tom Corbetts fundraising proposal is supported by the state legislature. CHRIS CONNELLY

11REGIONSBUSINESS.COM7 FEBRUARY 2013

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Robbins Arroyo Investigating AcquisitionAttorneys at Robbins Arroyo LLP are investigating the acquisition of BioClinica by JLL Partners, Inc.Pursuant to the agreement, BioClinica shareholders will receive $7.25 in cash for each share of common

stock. The investigation focuses on whether the board of directors at BioClinica is undertaking a fair process to obtain maximum value and adequately compensate its shareholders or seeking to benefit themselves.

JLL Partners Buying BioClinica For $123M

BioClinica, Inc., of Newtown, Pa., has entered into an agreement to be acquired by private equity firm JLL Partners, Inc., for about $123 million, the companies announced recently.

JLL Partners has also reached an agreement to acquire CoreLab Part-ners, Inc., of Princeton, NJ.

The two acquired companies are to be merged to create a leading provider of medi-cal imaging ser-

vices and best-in-class eClinical solutions for clinical trials, accord-ing to the statement.

Current BioClinica CEO and President Mark L. Weinstein will lead the combined company.

HEALTH CARE

DEALBOOK

Velcera Acquired for $160 Million

Perrigo Company, of Allegan, Mich., recently announced it has agreed to acquire Velcera, Inc., of Yardley, Pa., for $160 million within the calendar year.

The deal is subject to regula-tory approvals and closing conditions, according to a statement.

Velcera sells pet health products such as PetArmor flea and tick products.

Retail sales of the PetArmor franchise exceeded $100 million during calendar year 2012, the value-brands first full year on the market, having launched in April 2011.

PET CARE

IN OPPOSITION Smart Devine Acquires Waynes EAC Evaluations

Philadelphia-based accounting, tax and advi-sory firm Smart Devine announced that it has acquired the assets and employees of Wayne-based appraisal and valuations firm EAC Valua-tions LLC (Enterprise Appraisal Company).

The combined offices will remain at Smart Devines current location at 1600 Market Street.

ACCOUNTING

Vishay Precision Group Acquires George Kelk

Malvern-based electronic parts makers Vishay Precision Group Inc, recently announced that it has completed an acquisition of George Kelk Corp., of Toronto, for $50 million.

The two companies had formed an agreement of acquisition on December 18, 2012, according to a statement.

MANUFACTURING

12 REGIONSBUSINESS.COM7 FEBRUARY 2013PENNSYLVANIA POLITICS

Can Pa. Lawmakers Answer Corbetts Budget Challenge?

HARRISBURG Gov. Tom Corbett issued a serious chal-lenge to the General Assembly on Tuesday morning.

In his third budget address, he called for a $28.4 billion budget for the fiscal year that begins on July 1. He included healthy boosts for education and public welfare after two years of reductions in those areas and also plans to tackle business tax reforms like set in motion a 10-year incre-mental reduction to the states corporate net income tax.

Getting a budget done on time is always a challenge, but the real test facing our General Assembly is the ambitious set of other initia-tives Gov. Corbett outlined.

In the next five months, the governor wants to tackle trans-portation funding, pension reform and the privatization of the state liquor store system.

Not only are those big issues, but they are what is known in legislative parlance as heavy lifts, meaning issues that force law-makers to choose between two (or more) groups they normally like to play nice with and do some-thing that will likely cause one of those groups (or, again, more) to fund an opponent when the next campaign rolls around.

Im not convinced they are up to the task. And Im not the only one.

A state senator a Democrat, mind you, but not a particularly partisan one told me he has never seen a series of tough lifts like this. And hes been around for more than three decades.

He told me he is doubtful the General Assembly has the stones

my word there, not his to step up to the plate and get it done.

These guys havent had to take a hard vote in years, he said. I dont think they know what its like.

Hes right. These are the kind of

issues that scare lawmakers.Its always easier to avoid a

vote than face a scary issue. And most members of the General Assembly like to take the easy route whenever possible, because the easy route doesnt end with your crucial vote being plastered all over a campaign flyer and stu!ed into 50,000 mailboxes by your opponent in the next election cycle.

But Gov. Corbett challenged them on Tuesday to avoid taking the easy route.

Now is not the time to be timid in our approach. Now is not the time to cling to old ideas and the status quo. Now is not the time to make small changes and expect big results, Gov. Corbett said.

And the heaviest lift of them all is, fittingly, the most important.

Part of Gov. Corbetts overall outline for the year includes making changes to the future pension benefits of current state employees. That, coupled with changes to how new hires are given retirement benefits, will start to chip away at Pennsylva-nias $40 billion-and-growing pension liability.

But the unions have already vowed to fight it tooth and nail, and to take the issue to court if the General Assembly passes changes to pensions for current employees.

And though they havent said it, every member who votes for such a change knows the unions will also paint a target on their backs.

Thats part of the reason why Republican legislative leaders spent most of the day trying to slowly back away from that proposal all while still seem-

ing supportive of Gov. Corbetts agenda in the legislative equivalent of how you might react if a Doberman was showing its teeth and growling.

No sudden moves, just keep smiling.

In both the House and the Senate, the refrain is that no one is sure whether we have enough votes to enact pension reform. Again, its easier to avoid a vote than to face a tough issue.

But failing to pass pension reforms mean deep cuts to other parts of the budget, and thats a scenario that also scares lawmak-ers, who pretty much keep their jobs by delivering more funding, not less.

So, yeah, its a thorny issue. Gov. Corbett has been criticized

by many of his Republican allies in the General Assembly, loudly at times, for failing to lead during his first two years in o"ce. Since the beginning of the year, Gov. Corbett and his team have taken a noticeably more active posture on these high-profile issues.

That culminated on Tuesday with his call to action.

Now is the time to embrace new ideas, and now is the time to be bold, Gov. Corbett said. Our job isnt to explain why things cant be better. Our obligation is to make things better.

Gov. Corbett has to keep the pressure on, and the General Assembly has to be willing to take up those heavy lifts now that they have a governor trying to lead.

Politically, this is the begin-ning of the most important five months in Gov. Corbetts tenure.

For the future of Pennsylvania, they will be pretty important too.

BY THE NUMBERS

$28.4BTotal budget proposal

$1.6BProposed budget for colleges and higher

education grants

$1BFinancing for public schools over four years if liquor and

wine sales are privatized

$60MProposed funding for the

film tax credit program

80Films that will benefit from

the program

$7.4MIncrease in funding to

tourism programs

$28.4BTotal budget proposal

295,700Seniors whose prescription drug coverage is financed by

the Pennsylvania Lottery

4,000Structurally deficient

bridges in Pennsylvania

290State troopers to be hired

PENNLIVE.COM

Eric Boehm is bureau chief/news reporter for Pennsylvania Independent.

CONTRIBUTE

Send comments, letters and essays to feedback@regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Regions Business.

NOW IS NOT THE TIME TO BE TIMID IN OUR APPROACH. NOW IS NOT THE TIME TO CLING TO OLD IDEAS AND THE STATUS QUO.

GOV. TOM CORBETT

IN RESPONSE

He has proposed solutions that add billions more to the states credit card in a smoke and mirrors effort to balance his budget while kicking the can down the road.

PA AFL-CIO

Its a budget that actually represents strategic investments.

Rob Wonderling, Greater Philadelphia

Chamber of Commerce president

The bottom line is that ultimately it brings in $1.5 billion to $1.7 billion (for transportation).

David Patti, president and CEO

of the Pennsylvania Business Council

13REGIONSBUSINESS.COM7 FEBRUARY 2013 POLITICAL COMMENTARY

Charlie Gerow is CEO of Quantum Communications, a Harrisburg-based public relations and issue advocacy firm.

CONTRIBUTE

Send comments, letters and essays to feedback@regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Regions Business.

Remembering The Man Who Changed The WorldEarlier this week (February 6)

marked the 102nd anniversary of the birth of Ronald Wilson Reagan or, as only he could put it, the 63rd anniversary of his 39th birthday.

As tributes roll in Id like to add a few about the man for whom I once worked.

The character of Ronald Rea-gan was at the core of his success, personally and politically. His personality was a reflection of his character.

In the sometimes bitterly contested primary race of 1980, former Texas Governor John Connally once claimed, You want me for your president; you want Reagan for your next door neighbor. If thats the worst that can be said of you, you are truly special.

While many politicians made enemies lists, Ronald Reagan never did. Instead, like Abra-ham Lincoln (whom he often claimed he knew personally), he embraced his adversaries.

Although President Lincolns ability to cobble together disparate factions have been made legendary by Doris Kearns Goodwins Team of Rivals and other historical writings, Ronald Reagan was every bit as adept at bringing together rivals, com-petitors and folks who didnt always agree.

President Reagan named Pennsylvanias Senator Dick Schweiker, at the time a fairly liberal senator, as his running mate in 1976.

In 1980 he asked George H. W. Bush to run with him, despite the fact that the two had waged a very aggressive campaign for the nomination just weeks before. It was during that campaign that President Bush famously attacked Presi-dent Reagans economic plan as voodoo economics.

That was the same George Bush who years later eulogized President Reagan by saying, I learned more from Ronald Reagan than from anyone I

encountered in all my years of public life.

At a time when civility often is discussed but more rarely practiced, President Reagans example should serve as an inspiration to a new generation of political leadership.

Ronald Reagan found the brightest and best, and he got them to work for the good of the country with his famous maxim that it is amazing how much can be accomplished if nobody cares who gets the credit.

He was able to cobble together a coalition of disparate factions within the GOP and garner the support of Reagan Democrats to forge a majority that still exists. Ronald Reagan practiced the politics of addition and mul-tiplication, not subtraction and division. He famously mused that somebody that agrees with me 80 percent of the time is not my enemy.

He knew what it took to win, but he also knew what was required to govern. He knew

how to mend fences, build bridges and forge coalitions.

Ronald Reagan entered the Oval O!ce 30 years ago staring at a misery index of double-digit inflation and unemployment. Americans were held hostage by foreign enemies, and a national malaise led many to believe that our best days were behind us.

Through his infectious optimism, steadfast courage of his convictions and strength of character, Ronald Reagan led us back. He made America stronger and more prosperous. He made us proud to be Americans again.

He possessed a strong faith in the American system of limited government and free enterprise as the best hope for all people. He believed it had made us the most prosperous and generous nation in history. He knew that as the power of the federal gov-ernment expanded, individual liberty shrank.

While no previous president had challenged the Soviets to reverse their aggressive course

or open their borders, Ronald Reagan confronted them. He called them an evil empire. He stared down their leaders. He told Gorbachev to tear down this wall.

Ronald Reagans courage, moral fiber and human decency carried the day. The wall came tumbling down. The world was changed forever.

He did the toughest job in the world, beat a would-be assas-sins bullets with a smile, fought cancer, and survived a poten-tially deadly fall and subsequent brain surgery all after he was 70 years old.

This week we pause to remember this remarkable man. America and the world will never forget Ronald Reagan for what he did for us. He renewed our faith in our nation and our pride as Americans. He rebuilt our defenses, put us back to work and fueled our economic resurgence.

Ronald Reagan inspired freedom and changed history.

BRETT TATMAN

14 REGIONSBUSINESS.COM7 FEBRUARY 2013PHILADELPHIA POLITICS

Two bills scheduled to be considered February 8 by the Philadelphia City Council Committee on Finance would change the way Mayor Michael Nutters administra-tion prepares for the upcom-ing budget season.

The first bill requires a cost-benefit analysis on proposed capital projects. The second bill requires more detailed preparation and e!ort to use city funds earmarked for technological advancement in government.

Each year, City Council hears testimony on the city budget, which is typically proposed in early March. Then there is a long process of hearings culminating in a vote on the budget in June.

During the 2012 hearings, it came up repeatedly that a cost-benefit analysis would be helpful in determining whether the Nutter Adminis-tration had correctly pri-oritized capital expenditure projects in Philadelphia.

In the 2013 budget, the capital program funded more than $3 billion in projects. These projects construct new facilities, repair existing ones or address degradation in other elements of city

infrastructure. This bill describes how

those resources are scarce, and cost-benefit analy-sis including return on investment and payback time could help Philadelphia maximize the value received from the expenditure of capital funds.

It is also clear that Council intends to use this cost-benefit analysis to require a convincing rationale for project expenditures that do not expect a return on investment.

The second bill to be dis-cussed by the Committee on Finance would require Mayor Nutters proposed budget to include an information technology strategic plan.

In 2010, Council had intro-duced a bill that required the Administration to compose a five-year plan for techno-logical advancement, and in response Mayor Nutter cre-ated the O"ce of Innovation and Technology in 2011.

These initiatives supported what is now a commitment by the city to invest $120 million in its information technology infrastructure over the next five years, which would be funded by

the capital program.This bill seeks to make it an

annual event that the mayor and his budget team discuss a plan to further the progress of these commitments to a more technologically advanced city government in Philadelphia.

It is the belief of Council-man Bill Green, a sponsor of both bills that were to be discussed on Friday, and other members of Council that greater e"ciency can be achieved through the use of better technology.

While these bills may seem like more work for the citys budget team, it is likely appreciated that Council tells the Administration exactly what kind of data it would like to see prior to the budget hearings this spring.

If all the material and strategies are presented to Council, the budget process actually works more smooth-ly as a policy discussion versus a demand for data that is either unavailable or not prepared for review.

At Fridays hearing, the Administration will have an opportunity to explain whether it feels these requirements can be met.

Proposed Bills Would Expand Mayor Nutters Budget Duties

Timothy Holwick is a freelance writer covering Philadelphia government. Find more coverage at citycouncilmatters.com.

CONTRIBUTE

Send comments, letters and essays to feedback@regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Regions Business.

Mayor Michael Nutter prepares to give his 2012 budget address. KAIT PRIVITERA/CITY OF PHILADELPHIA

THERES A GENERAL FEELING...THAT THERES GOT TO BE A BETTER

WAY [TO BUDGET].

GARY VANLANDINGHAM, DIRECTOR

OF THE RESULTS FIRST INITIATIVE AT

THE PEW CENTER ON THE STATES

City Asks Court to Impose Offer on DC 33 Union

The City of Philadelphia filed an action in the Court of Common Pleas asking it to impose the mayors final o!er on AFSCME District Council 33.

The o!er provides a 2.5-percent wage increase 30 days after the agreement takes e!ect and a 2-percent increase on January 1, 2014.

Our final o!er is fair and reasonable, provides a real increase in take home pay for city employees while enacting pension reform and changes in work rules that help us a!ord those raises and prepare for a more fiscally sound future, Mayor Nutter said in a statement.

DC 33 President Pete Matthews told the Daily News Mayor Nutter tries to act like a dictator.

UNIONS

Mayor Unveils Citys New Delinquent Tax Collection Strategy

Mayor Michael Nutter said a new delinquent tax collection strategy will use advanced technology and data anal-ysis; increase education and outreach e!orts; leverage private collection agen-cies; build more e"cient partnerships with sister agencies; and target areas to increase capacity and e!ectiveness.

Business Tax Credit Application Available

Business owners can now begin apply-ing for the Sustainable Tax Credit, which will give 25 businesses tax credits of up

to $4,000 against the gross receipts

por t ion of the Business

Income and Receipts Tax.

Philadelphia was the nations first city to reward sustainable businesses with a financial incentive.

More information can be found on the Mayors O"ce of Sustainability website, www.phila.gov/green.

TAXES

15REGIONSBUSINESS.COM7 FEBRUARY 2013

Steadily, but almost quietly, Philadelphia has become a hotspot for entrepreneurs. The combination of great ideas, available capital and a welcoming environment have set the stage to make 2013 a breakout year for innovation and new businesses.

To Learn More ...For more information on sponsorship opportunities or to suggest story ideas, call our main office at 610-940-1656.

The web: RegionsBusiness.com

Facebook: Facebook.com/regionsbusiness

Twitter: @RegionsBusiness

Sponsored by

WHARTON COMPETITION

Prize Renamed for $1.65M Donor

BY TVISI RAVI

The Wharton School announced that Ellen and Richard Perlman have contributed $1.65 million to the Wharton Business Plan Competition to go towards funding the grand prize of the competition, now titled the Perlman Prize.Wharton Entrepreneurship runs the annual competition. Launched in 1998, WBPC is open to students across Penns campus. Participants must go through four phases of developing a business idea throughout the semester, creating in-depth business plans and presenting to judges.This years competition is currently underway. This year, more than 400 people submitted entries to the competition.Mr. Perlman, a 1968 Wharton graduate, has served as a competition judge for the last two years.Entrepreneurship is in the Perlman DNA, Mr. Perlman said in a statement to the Wharton School. Ellen and I are extremely excited about the opportunity to support Whartons program to teach and encourage Americas future entrepreneurs.Managing Director of Wharton Entrepreneurship Emily Cieri said the gift serves as endowed funding, which will go into Penns investment pool. Each year, the money from the investment pool will go towards funding the grand prize as well as the operating expenses of the competition.

THE DAILY PENNSYLVANIAN

THEDP.COM

FACEBOOK.COM/REALFOODWORKS

Business: Real Food WorksFounder: Lucinda Duncalfe and

Michael KrupitContact: michael@krupit.com

BY BRANDON BAKER

Upon making the switch to a vegan diet, Michael Kru-pit and Lucinda Duncalfe quickly realized their food options in the restaurant world were, to say the least, scarce. When it occurred to Ms. Duncalfe that many Philadelphia chefs spend a lot of time tediously counting their radishes through the week, she connected the dots.

Lucinda realized that restaurants have a lot of downtime in the middle of the week, and she started connecting with restaurants to get them to prepare healthy foods to deliver to customers, Mr. Krupit said.

Real Food Works, the primarily vegan-oriented food service, launched in June 2012. Since then, the service has partnered with dozens of res-taurants in the Philadelphia region,

including Malverns SuTao Caf and West Passyunk Avenues Miss. Rachels Pantry. Together with these restaurants, the plant-based food service has further grown its roots, shipping meals to more than 60 customers per week some of whom, Mr. Krupit said, spend as much as $2,000 on a weekly food system.

I think that [our customers] find that, first, our food is convenient; sec-ond, it tastes amazing; and third, it fits the health plan they were looking for, shifting to a plant-based diet that can reduce cholesterol, their weight, their allergies and [provide] other benefits, Mr. Krupit said.

Moving into the second quarter of 2013, Real Food Works will expand into Los Angeles, what Mr. Krupit playfully refers to as the mecca for the healthy food business.

CAPITAL SEEKERS

Real Food Works

The average American stays away from restaurants in the middle of the week, so two entrepreneurs are

bringing restaurants to your home.

2013: YEAR OF THE INNOVATOR

16 REGIONSBUSINESS.COM7 FEBRUARY 20132013: YEAR OF THE INNOVATOR

Wharton Student Not Waiting For GraduationBY BRANDON BAKER

More and more, university students are realizing their entrepreneurial ambitions dont need to begin the moment their MBA diploma enters their hand and, accordingly, are launching businesses on their own timeline.

David Wynne is one such student.A first-year graduate student at Whar-

ton, Mr. Wynne arrived in Philadelphia understanding that he was presented with a unique opportunity.

I got here, and I realized I had access to people I wouldnt have access to with-out being at Wharton, Mr. Wynne said. I went to an event where [Common-Bond CEO] David Klein gave a speech, and he said something that stuck with me: The biggest risk you can take as a Wharton student is to not take a risk at all.

From that moment, Mr. Wynne, along-side his business partner Evan Hamlin,

decided it was time to move forward with his ambitions.

Recently giving the ambition a name AutoAlpha Mr. Wynne hopes to develop a transparency service intended to streamline the investment process for private equity firms by managing their operating portfolio.

Were looking to generate insights so [investors] dont have to do the math, he said. They dont have the time to do it themselves, and wed like to simplify the decision-making process to a yes or no phone call.

Mr. Wynne has spent much of the past month traversing the region in search of expert business advice by attending seminars, meeting privately with suc-cessful startups in Philadelphia and New York, as well as meeting with his former private equity employer to get a short-list of talented developers for their website.

You have a limited time to take advan-tage of these opportunities, Mr. Wynne said. I figure that if I fail miserably, the

worst case scenario is that Ill graduate from Wharton. But if I succeed, Ill be able to help thousands of entrepreneurs in the Philadelphia region.

For now, Mr. Wynne and Mr. Hamlin are looking for funding from private equity and venture capital firms. In the meantime, theyll continue preparations as they gear up for participation in the Wharton Venture Awards, a competition that would award $10,000 to sustain them over the summer.

DIARY OF A STARTUP

Local Startups Selected By DreamIt Class

Two area startups TrendKite, of Philadelphia, and Fig Labs, of Haddington, NJ were selected by DreamIt Ventures inaugural class in Austin, Texas, Business Insider reported.

TrendKite (seen above) is a media dashboard reinventing media moni-toring.

Fig Labs is a cloud-based math-ematical platform for engineers and scientists.

Both will demo at this years SXSW.

17REGIONSBUSINESS.COM7 FEBRUARY 2013 2013:YEAR OF THE INNOVATOR

ETHICSFINDING ETHICSIN BUSINESS The Hydros Bottle started as a class

assignment, but has turned into a solution for a global problem

BY BRANDON BAKER

or the team at Hydros Bottle, their water fi ltration system is as much about ethics as it is about being in the black.

The business, which involves manufacturing the only water bottle that fi lters the moment water enters the con-tainer, originally began as a class project at the University of Pennsylvania.

Its three founders realized during the process of working on it that it had more legs than they initially gave it credit for.

I was taking a course on social entrepre-neurship, learning how to use for-profi t business models to solve societal issues, and I was really interested in the water cri-sis, particularly the bottled water dilemma where 60 million water bottles end up in landfi lls each day, said Aakash Mathur, one of Hydros Bottles co-founders. Its an industry worth billions of dollars, and yet its just so wasteful.

So the way we look at it, were operating a business while addressing a global water problem.

Located at 2400 Market Street, Hydros Bottle now has six employees and has tripled its year-over-year sales since the bottle was introduced to the market in 2011.

Part of each water bottle sale, Mr. Mathur said, is donated to water develop-ment projects.

Mr. Mathur also touted that the fi ltration and BPA-free technology used to make the bottle which is manufactured in Philadelphia plants is currently patent-pending.

Our filtration system and materials set us apart from some of our competi-tors, who make really cheap plastic bottles known as squeeze bottles our bottles are premium by the nature of how theyre made, Mr. Mathur said.

Content with the companys fast-paced growth, Mr. Mathur made special note of the perks of being based in Philadelphia.

Were fortunate to be surrounded by a lot of universities, investors and confi -dence-boosting advisers, he remarked. Philly is underrated for the amount of entrepreneurial energy it has. Its really a great place to start a company.

FF

twitter.com/HydrosBottle facebook.com/HydrosBottle hydrosbottle.com

THE WAY WE LOOK AT IT, WERE OPERATING A BUSINESS WHILE ADDRESSING A GLOBAL WATER PROBLEM.

18 REGIONSBUSINESS.COM7 FEBRUARY 2013

FOR TICKETS OR MORE INFORMATION: Go to YOBC.org or send an email to development.yobc@gmail.com

LOCATION:The New Hope Winery in New Hope, Bucks County - NewHopeWinery.com

ALL PROCEEDS BENEFIT:The Youth Orchestra of Bucks County. Learn more at YOBC.org

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LIVINGSTON TAYLORlive, in concert, in an intimate setting

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2013:YEAR OF THE INNOVATOR

EdTech Smackdown! Highlights Education Startup Companies

The Philadelphia EdTech Meetup group met last week for EdTech Smackdown!, a chance for enterpreneurs to demonstrate their ideas in two minutes or less, at incubator Seed Philly.

Technology teacher Mary Beth Hertz and group founder Donna Murdoch had the two dozen attendees introduce one another before inviting six groups to pitch their products.

ProfessorWord introduced by co-found-ers Betty Hsu and Ivan Chang is a free bookmarklet that can be used on any website to help students identify and defi ne more than 5,000 SAT and ACT vocabulary words.

The technology takes the learning experi-ence to where the students are spending most of their time: online.

TeacherCom presented by Dan Lopez of web development company Defi ned Clar-ity is an app that allows teachers to contact

students parents simultaneously, using email, texting or recorded voice messages. The pro-gram also keeps a log of the sent messages.

Slate is an open source web platform for schools that keeps track of grades, attendance and other data and make it all accessible to faculty and administration with one log-in.

The EdTech Meetup group will meet again at 6:30 p.m. February 12 at the Science Lead-ership Academy, 55 North 22nd Street, Phila-delphia, for a panel discussion.

EDUCATIONPACT

Startup Leaders Speak at EventThe Greater Philadelphia Alliance for Capital and Technologies will host an event with local startup leaders 5:30 to 7:30 p.m. February 7 at the University City Science Center, 3711 Market Street, Suite 800, Philadelphia.Speaking at the event will be Coley Brown, CEO and co-founder of VisionMine.com; Lev Greysman, senior software engineer of Iron Mountain; Cristina Greysman, director of partner program management at SunGard Availability Services; Rick Rasansky, founder and CEO of Yorn; and Brendan McCorkle, CEO of Cloudmine.

Betty Hsu and Ivan Chang present ProfessorWord at the EdTech Smackdown! last week. MARY BETH HERTZ

SEER Interactive Opening Office in California

MARKETING

Online marketing agency SEER Interactive will open an o! ce in San Diego in May, less than a year after opening an additional o! ce in North-ern Liberties, TechnicallyPhilly.com reported.

The expansion is to tap West Coast talent and to be closer to clients, spokeswoman Stephanie Beadell told Technically Philly.

One of the main reasons we decided to launch the San Diego o! ce is that great people wanted to work with us, but they couldnt make it to Philly. We decided to come to them.

Four of SEERs 58 employees will move to California, and CEO Wil Reynolds will spend three months in the new location, according to the Technically Philly report.

19REGIONSBUSINESS.COM7 FEBRUARY 2013 2013:YEAR OF THE INNOVATOR

No-Firing Zone: Never Give Up On A Client

Joseph Callaway and JoAnn Cal-laway are coauthors of the New York Times bestseller Clients First: The Two Word Miracle and founders of the real estate company Those Callaways.

CONTRIBUTE

Send comments, letters and essays to feedback@regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Regions Business.

The business world is full of corporate gurus who advise you to get rid of the bottom 10 percent of employees, stores, suppliers, and yes, even clients. We disagree.

In more than 14 years, we have never gotten rid of a single client and we believe this no-fi re strategy has contributed signifi cantly to our ultimate success.

Putting clients fi rst has the power to change your life, to transform your business, and to bring about fi nancial security.

Here are seven tips to help you get started: Make the Clients First commitmentReally putting clients fi rst is a big commit-

ment and not fi ring customers is only a small part of it.

You need to put your own needs second, base all of your interactions on transparency and honesty, and make it your priority to always do whats best for the client.

Realize that keeping clients is just plain practical

Yes, the economy may be slowly pulling itself out of The Great Recession, but business is

still far from booming. To put it bluntly, you probably need all the clients and commissions you can get.

When you make the choice to stand by all of your frazzled, frustrated clients, you will eventually reap fi nancial and personal rewards.

Learn to like peopleYour goal should be to invite clients

within arms length and make each one less of a stranger.

Ask about their kids, their pets, their hob-bies, and their jobs.

Expect out-of-control emotionsIts no secret that people are emotionally

attached to their homes. So instead of dreading emotional outbursts and using them as reasons to sever a business relationship, think of alleviating the clients worries, insecurities, and fears as part of your job description.

And remember, putting the client fi rst means not refl ecting their turmoil back to them.

Look for opportunities to help and to grow your business

Heres the silver lining to gritting your teeth

and persevering when you feel like throwing in the towel: When you truly succeed in helping a client which could be alleviating anxiety in the short term, and selling or buying a house in the long term you will have won a fan for life.

Consider your karma bank And guess what? While weve learned not

to have fi rm expectations when it comes to karma, our e! orts and goodwill usually come back to us multiple times over.

When all else fails, look for the lessonOccasionally, youll encounter a client who

isnt acting out, hes just a downright nasty person.

Just keep working hard, telling the truth, and seeking the clients best interest. And in the process, look for a lesson that might help you in the future.

Overall, the most important thing you can learn from dealing with awful people is the art of letting it go. To do otherwise to continu-ally engage with a toxic person is to let him or her winoften at the expense of your peace of mind and sanity.

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20 REGIONSBUSINESS.COM7 FEBRUARY 2013

A survey of Chief Financial Officers reveals that an

increasing number of companies are

turning to their CFOs to help lead

innovation and drive change. As their roles

continue to grow in importance,

their insight into the challenges

and opportunities becomes more

relevant. This years survey shows that

CFOs, in general, are cautiously optimistic

about 2013.

Text By Karen FrattiIllustration by Don Lee

21REGIONSBUSINESS.COM7 FEBRUARY 2013

e take it for granted that everything is quantifi-able these days. Want to know the valuation of a company? Google it. Whats the backstory of that CEO? Wikipedia is your best bet. How is a company faring and innovating through a recession? Well, you get the idea.

But some things, like the real pulse of a market, just cant be put into an infographic. Or can it?

Thats what the CFO Alliance has set out to do. Philadelphia based CFO Alliance President Nick Araco describes the organi-zation as an intelligence gathering enter-prise. Its a special kind of social network, catering to middle market CFOs, hosting networking events, conferences, and a vibrant discussion community that facili-tates information sharing and peer advice. And of course, theres the Sentiment Study.

The Sentiment Study is a survey of CFOs the organization has put together annu-ally for three years. They ask CFOs about their projections for the year, to rank how internal and external forces a!ect their decisions, to explain how their jobs change. They publish the results and tailor the years events and roundtables around the key issues that come out of the study.

CFOA membership has skyrocketed from a few hundred to over 3,000 members in the three years the CFOA has run the study, illustrating how valuable the infor-mation is among peers. This year, with help from Drexel Universitys LeBow College of Business and TBM Consulting, they have surveyed 425 middle market CFOs. This years outlook? Financial o"cers across the country and in the region report a market in flux, filled with economic uncertainty, greater responsibility, and changing pat-

terns in recruitment and innovating.

Jacks and Janes of All Trades

Being a middle market CFO means you work in a company thats too small to be large, and too large to be small. And the issues that come up working in such an environment are unique. How they deal with those issues even more so.

We define middle market as companies with annual revenues of anywhere from $20 million to half a billion dollars, Mr. Araco says. But the common denomina-tor is that they are all overwhelmingly privately held, and driven by a select and focused group of C-suite executives. The CFOs are not in functional silos. Instead, he explains, They have their hand in a bit of everything and are more nimble in thinking and creative approach.

According to the study, 72% percent of CFOs expect their roles to expand this year, meaning they will have to be ever more nimble.

Chris Hughes, CFO of Shunra, a soft-ware testing company headquartered in Philadelphia, jokes that middle market CFOs are jacks of all trades and masters of nothing.

Peter Kaye, the VP of Finance at Procu-rian, based in King of Prussia, notes that he increasingly relies on outside expertise to assist with the learning curve since he has a hand in operations he heretofore had little experience with.

The anxiety around these increased lev-els of responsibility and greater uncertain-ties in terms of external economic factors is palpable throughout the data. Araco noted a stark di!erence in attitude this year com-pared to prior ones.

In 2011, the attitude was cautious opti-mism. They wanted to put the year to bed and start 2012 with renewed opportuni-ties, he says.

This year? The attitude is more hesitant. Because of continued uncertainties in the macro economic level, theres a sense of hesi-tation across the nation and especially from those CFOs based in the Philadelphia region.

Healthcare Reform and Fiscal Cliffs

According to the study, 24.2 percent of the CFOs reported that the Health-care Reform Act is a major issue moving forward in 2013. The HCRA is going to impact businesses at the mid-market level and its keeping some of them up at night.

Mr. Kaye says that costs are spiraling out of control and significantly increasing our overall compliance costs.

Chris Hughes agrees. Sort of. The best we can do is to stay informed of the changes and timing of the implementation of the law.

The worst case scenario? Outside of unexpected material premium charges, another concern is the cost of compliance, Mr. Hughes o!ers.

Mark Fehnel, of Telerx headquartered in Horsham, is still calm. [I see] some cost increase, but hopefully not an extensive impact. We have more employees than many middle market companies, so we experience less volatility than the compa-nies with fewer employees.

Its not just health-care. According to the study, CFOs were not shy about expressing frustration and lack of confidence in the fed-eral government, many citing this as their big-gest concern.

None of the CFOs seem more positive about the state of the general economy since taking the survey this November. One CFO is just fed up, claim-ing it would take a miracle for both sides of the Hill in Washington, D.C. to adjust spending levels and tax revenues to reduce the deficit - and his stress.

To feel more secure about making long and short term strategic decisions, Hughes isnt holding his breath, either. [They] need to make a major step in the direction of controlling and adjusting spending.

Despite this sense of impending doom on the macro level, the CFOs surveyed were somewhat optimistic about their own companies growth. There were only slight di!erences between this year and the last. Thirty-seven percent, down from

SURVEY HIGHLIGHTS

CFOs see risk, opportunity The CFO Alliances Sentiment Study revealed what CFOs perceive as the biggest concerns and opportunities for 2013. A few highlights:

! When it comes to the greatest internal influence on budget and business planning, finding and retaining talent easily topped the list.

! Healthchare reform ranked as the second biggest internal influence.

! When it comes to the external influences, competition and consumer confidence topped the list for CFOs. They expressed least concern over inflation, the European Unions instability, commodities and currency fluctuations.

66%of CFOs surveyed said they expected revenue growth in 2013. Thats down from

67.5% last year.

37%of CFOs surveyed said they expected growth in margins,

up from 35.5% last year. THECFOALLIANCE.ORG

GROUNDED IN REALITY, BUT SHOOTING FOR THE

STARSW

C.E. KENT

CFOs were not shy about expressing frustration and lack of confidence in the federal government, many citing this as their biggest concern.

22 REGIONSBUSINESS.COM7 FEBRUARY 201335 percent last year, see margin improve-ments. Sixty-six percent, down from 2012s 67.5 percent, expect revenues to grow.

I believe some of this relative consistency in growth, or lack thereof, is based on rather conservative growth projections to begin with, posts Mr. Kaye. Most companies are predicting more of the same for 2013.

Mr. Fehnel agrees, We have been living with uncertainty for a while. The ques-tion is could [companies] grow faster if uncertainty would lift and they could more aggressively deploy the cash that many have been stashing away. Taking all of the external forces in stride has caused him and his organization to see how they can innovate internally. Innovation for 2013 means responding to the market with new approaches and fi nding ways to be more productive internally and do more with less.

Recruitment and RetainmentAnother key issue from the study is employ-

ee recruitment and retainment. Many CFOs ranked recruitment as a top three major concern moving forward in 2013.

Mr. Araco explains, Because the sentiment is still cautious, and as the economy starts to come back, people are concerned theyre going to start losing people.

Thats also due to a generational gap. Across the nation, millennials just have a di! erent view of the job market than their predeces-sors, and are statistically less loyal to compa-nies. They are more likely to move around not just for higher pay levels, but also across industries.

Regionally, this is a bigger issue. The fi rst question we are asking people when they

apply for a position is Why do you want to be [in Philadelphia]? says Mr. Araco. Its a sort of mentality that comes with being in Philadelphia.

Mr. Hughes notes that recruitment has always been a problem. Especially in Philadel-phia. Although, luckily, his company, Shunra, is a tech company. And it appears there are some positive changes in the tech industry in Philadelphia. In fact, [we] were a New York software company. Until they moved here in 2006.

Mr. Kaye agrees recruitment is increasingly di" cult for Procurian. Were growing rap-idly and struggle to fi nd solid candidates with relevant experience in our industry, he says.

Mr. Fehnel elaborates that the pickings are slim. One aspect of getting the same sorts of people with the same sorts of concerns is that it can turn into a loud town hall type gabfest.

Thats why Mr. Araco knows its important to center future roundtable events around some of the issues that come from the Senti-ment Study. So we can look in the mirror and defi ne the mission, he says.

A Philadelphia StoryOne thing the study shows is that those

middle-market CFOs in the Philadelphia region are very di! erent from those across the country.

Its not like in D.C., for example, where NGOs and companies have industry blind-ers on. In Philadelphia, there is a willing-ness, ability and a genuine interest in the mindset of the region, notes Mr. Araco.

Our region is not so much a region of transplants, like our neighbors in New York City, D.C., or even San Francisco, Mr. Araco explains. And something about that makes

executives more interested in whats going on in industries other than their own. By looking at whats going on around them, it helps them make decisions for their own company and look for partnerships and collaboration.

That, of course, is the point of The Senti-ment Study. By sharing frustrations, mem-bers gain confi dence.

They say, Ok, Im not alone! And because we are discussion oriented, theres lots of talk about not accepting the status quo and looking for ways to lead, not just respond, to the environment, says Mr. Araco, describing the mission of the study and the CFOA.

Its actually an opportunity to be pro-gressive, he says.

Mr. Kaye sums the study up as a valu-able way to acid test his agenda against his peers agendas.

Fehnel, too. It provides me with a barometer on how my sentiments relate with the marketplace, where I am in sync or out of sync. [I see] if other CFOs are feeling the same pain or progress in the areas I am feeling pain or progress.

And thats not the sort of thing you can just Google search.

The CFO Alliance is holding a roundtable event at the Philadelphia Country Club on March 7, 2013 titled The Outward Facing CFO: Identifying Opportunities to Spur Growth facilitated by Stephen Mullin of Drexel University. Attendance is always complimentary for fi rst timers. See thec-foalliance.org for more details.

Freelance writer Karen Fratti lives in Brooklyn.

I BELIEVE SOME OF THIS RELATIVE CONSISTENCY IN GROWTH, OR LACK THEREOF, IS BASED ON RATHER CONSERVATIVE GROWTH PROJECTIONS TO BEGIN WITH.PETER KAYE

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Philadelphia, 24/7

Timely updates Original blogs Archived print content

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23REGIONSBUSINESS.COM7 FEBRUARY 2013

Agencys Show Part of Strategy

BUCKS COUNTY SAYS

TO THE DRESS(ES)YESYES

Bridal shows arent all that unusual, but they usually arent staged at a tourism agency.

But Bucks County Visitors Center will put on its fi fth annual show on Sunday, February 17 from 12:30 p.m. to 4:30 p.m.

Its all part of the agencys strategy to leverage the wedding market and increase hotel occupancy and drive ecnomic activity in the county.

More than 40 exhibitors will have a chance to impress about 700 visitors during the afternoon and the centers location and facilities are a big draw.

Our venue is neutral because were not a wedding venue, said Jessica Lawlor, marketing and communica-tion manager for Visit Bucks County.

This allows many venues to be represented. The centers theater is utilized for panel discussions and a fashion show and another space will be used this year for a relaxation room, highlighting an array of spa services.

The visitors center is located at 3207 Street Road in Bensalem.

BY REGIONS BUSINESS STAFF

During (and even after) The Great Reces-sion, a lot of people put o! a lot of expens-es, everything from keeping that aging sedan another year to staycations over that cruise to a fresh coat of paint rather than a larger home.

But people continue to get married and con-tinue to spend a lot of money doing it. In fact, the average price tag for a 2012 wedding in Bucks County came in around $30,000 according to costofwedding.coms proprietary surveys.

It doesnt take a lot of extrapolation to show that weddings are a mult-million dollar business in Bucks County, even in a down economy. The Bucks County Visitors Center has seized that opportunity, providing prospective brides with lots of one-on-one attention.

For most of the past year, that attention has come from Rachel Wolkiewicz.

The overall goal of the visitors bureau is to increase hotel room occupancy, overnight stays in Bucks County, Ms. Wolkiewicz said. So the wed-ding market just feeds into that in Bucks County because of our unique venues.

Sometimes the assistance might be as simple as providing brochures or destination guides to the hotel accommodating the wedding guests. But

to really have an impact, the visitors center sta! goes further, covering everything from sourcing venues to securing fl owers and transportation and everything in between.

People can call me and say, I have 150 guests. Where can I fi t? Ms. Wolkiewicz said. But its any part of the wedding, the rehearsal dinner, I can give them references for transportation or help their guests fi nd things to do.

The countys venues are a selling point - win-eries, barns, even a castle (Fonthill Castle at Doylestowns Mercer Museum).

We have such a wide array of bed and break-fasts and cultural venues. Ive had a few people, just in the last few months, call me and say, Id like to get married in a barn. Can you help me? And I can, because were in Bucks County. We have the run-of-the-mill barn with bugs and hay still in there to barns that are built for weddings.

Brittany Booz, who manages private parties at The Golden Pheasant Inn in Erwinna, sees a growing demand for what Bucks County can o! er.

Im seeing more people looking for smaller, intimate weddings and a mini-honeymoon instead of a destination, she said. People gravi-tate to Bucks County for its charm, history and seasonality ... Theres so much brides can give to their guests.

BY THE NUMBERS

Brides in BucksThe staff at the Bucks

County Visitors Center say the county is able to offer a variety of unique (or near-unique) opportunities for

wedding parties.

1Castle in the county - the Fonthill Castle and Mercer Museum in Doylestown.

10Wineries, including many

that offer event space well-suited for a wedding, reception and/or rehearsal

dinner.

52Length in feet of the pontoon boat operated by the Bucks County Riverboat Company,

used for scenic cruises along the Delaware River.@VisitBucksPA VisitBucksPA VisitBucksCounty.com VisitBucksPA

The Bucks County Visitors Center has embraced prospective brides as part of its core mission, capitalizing on the countys

unique offerings to tap into the wedding industry.

PHOTO COURTESTY OF VISIT BUCKS COUNTY

24 REGIONSBUSINESS.COM7 FEBRUARY 2013FINE ESTATES PREVIEW

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26 REGIONSBUSINESS.COM7 FEBRUARY 2013A&Q

Whats the elevator pitch for Einstein Medical Center Montgomery?

We did a very large mar-keting campaign before we opened (in September 2012), and we were very focused on saying that we wanted to be the medical destination for the residents of Central Montgomery County.

We believed we were building a facility that would provide high-quality care services that hadnt been o! ered in this commu-nity, and that is still what we are very focused on. Its what we have been doing for the 120-some days that weve been open, and what we will continue to do in the future.

Do you have an early un-derstanding of your mar-ket share?

The actual market data...lags behind several months, so its too early for us to scien-tifi cally say what percentage of the market weve captured.

But our volume across the board has been higher than what we had anticipated, and we are seeing a great response from the commu-nity.

I believe thats because weve been able to live up to the promise that we made before we opened the facil-ity, and while we have not been perfect, we continue to fi ne tune our processes, we continue to bring more sta! on board and we are raising the bar and are focused on being that medical destina-tion.

Which areas of care have exceeded projec-tions?

An area where weve seen signifi cant volume has been in obstetrics. We have de-livered about 40 percent more babies than what we had anticipatedand I think thats a great example of how the community has responded to having this fa-cility in their backyard.

Whats observation sta-tus, and how does it im-pact the hospital?

Insurers have said that [to reduce] health care costs, if a patient doesnt necessarily need to be ad-mittedbut needs to be monitoredthey get put in a status called observation.

Were paying the exact same amount than if they were admitted, but the in-surance company is saying, We will pay you a lesser amount for providing the exact same care.

As this has become a sig-nifi cant part of health care, in existing facilities un-less you renovate you have to designate some space for (observation)... Because we were able to build from the ground up, we were able to design it that way.

What are the major ini-tiatives for 2013?

From a programmatic perspective...building and growing our robotic surgery program, our breast surgery program, vascular surgery and our primary care net-work.

BETH DUFFYS

The Chief Operating O! cer of Ein-stein Medical Center Montgomery brings 28 years of experience with

Einstein Healthcare Network to her new role at the fi rst hospital built in Southeastern Pennsylvania in more than a decade.

MEDICALDESTINATION

facebook.com/einsteinhealth twitter.com/einsteinhealth montgomery.einstein.edu

BY MELISSA BROOKS

27REGIONSBUSINESS.COM7 FEBRUARY 2013

CONTRIBUTE

Send comments, letters and essays to feedback@regionsbusiness.com. Opinions expressed by guest writers do not necessarily reflect those of Regions Business.

Politically Uncorrected is published by G. Terry Madonna (above) and Michael L. Young (below) twice monthly, and previous columns can be viewed at http://politics.fandm.edu.

Next Few Weeks Will Shape Corbetts Legacy, States Future

Do we really learn more from our mis-takes than our successes?

If we do, then Pennsylvania Governor Tom Corbett should be a virtual font of learning about now. Not to put too fine a point on it, but the governor has had a bru-tal first two years.

The ubiquitous polls tell the tale. For Cor-bett, its not a happy one. His job approval ratings are anemic, only rising above 50% once in his time in office. His re-elect numbers (poll-speak for would you vote for him again?) have been upside down for months with only a third of voters thinking he deserves another term. Barely a majority of his own party (if that) now support his re-election, while his support among women voters approaches historic lows for a major o!ce holder.

The only really good news for Corbett is that, at the moment, he has only one poten-tial primary opponent while rival Demo-crats remain far from united in choosing a candidate to run against him.

Nevertheless, Corbetts struggles have produced considerable angst among Republicans and not a little glee among Democrats. But what it has not produced is much serious e"ort to explain how the gov-ernor has gotten in so much trouble with so many voters in such a short period of time.

Corbetts problems fall into two catego-ries: macro-problems, over which he has little control, and political problems mostly self-inflicted.

The macro problems would challenge any governor. Two of them are paramount.

Continuing Economic Challenges--Presi-dents are not the only politicians blamed for bad economic times. Governors are too. The harsh reality is that Pennsylvanias economy is not yet in full recovery. In fact, the states unemployment rate is now slightly higher than the national average. Governors have survived bad times before, and Corbett can too. But he may have to do it in spite of the economy, not because of it.

The Brand problem - Corbetts second macro problem is his political party. The GOP is struggling to define itself amid a growing public reaction with what Repub-lican Governor Bobby Jindal termed the stupid party. The GOPs problems lie pre-dominantly with women and minorities, not coincidently also Corbetts toughest demographic. The Republican Party didnt

create Corbetts problems; moreover, its leaders are not much help to solve them.

The economy and the GOPs brand problems while serious are unlikely to pre-vent his re-election. Much more threaten-ing are four problem areas that collectively raise questions about Corbetts political skills.

More of a Prosecutor than a GovernorAt heart, Tom Corbett is a prosecutor. In the role of attorney general, he excelled. The political skills needed to be a successful governor, however, are not necessarily those of a prosecutor. Prosecutors declaim and declare, but governors must bargain, cajole, cheerlead, and even sometimes beg a little. Corbett has little of that in him. What made him a good attorney general makes him a bad politician.

A Tin Political Ear--Corbett misses the sometimes subtle tones of state politics. He has often failed to explain very well why he did things or to promote his agenda. Equally problematic has been his tendency to take on contentious issues without build-ing consensus for them.

Weak Political Leadership--Coming into o!ce Corbett had his partys biggest legisla-tive majorities in 50 years. Nonetheless, he advocated little and succeeded not at all in passing any of his big ticket items: school choice, LCB privatization, transportation funding, and the pension problem during his first two years.

Penn State & Joe Paterno--Somehow Corbetts successful prosecution of a noto-rious pedophile has become a personal political liability. A vigorous debate has emerged over his handling of the case as well as the blame he received in damaging the reputation of Penn State legend Joe Paterno. Corbett was also drawn unneces-sarily into a series of university con-troversies as a university trustee, alienating thousands of alums still aggrieved by the case. Nor is that the end of it. The new Attorney General Kath-leen Kane is committed to a thorough investigation of Corbetts handling of San-dusky case, guaranteeing the notoriety of the case will not end soon.

The obvious

question: can Corbett recover in time to run successfully for re-election? In his favor, most economists expect economic recovery to accelerate over the next two years, while the brand problems of the GOP alone are not likely to cost Corbett re-election.

Developing the political skills necessary to recover his political support remains more problematic. Certainly, there are signs that the governor fully understands his political situation. He has been waging a vigorous media blitz over the past severa