Health care of tomorrow How accountable care organizations are likely to evolve.

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MUELLNER PAGES 4-7 Managed IT Services 11 Commercial Printers 13 EXECUTIVE FILES HOW TO IMPACT

THEO SAI, 12 SPONSORED BY: RESTAURANTS An empire begins Burnt Toast Brands has many Southeast

ASHLEY GURBAL KRITZER, 8 TAKING IT IN Noteworthy lessons The Florida Orchestra's story of

ALEXIS MUELLNER, 3 TAMPA BAY BUSINESS JOURNAL November 27, 2015 Vol. 35, No. 49, $4.00 4890 W.

1 Health care of tomorrow How accountable care organizations are likely to evolve. MARGIE MANNING, 9 What you can learn from the Florida Orchestra s remarkable turnaround BY ALEXIS MUELLNER PAGES 4-7 Managed IT Services 11 Commercial Printers 13 EXECUTIVE FILES HOW TO IMPACT PUBLIC HEALTH This physician wasn't looking for a job when an insurance company cold called. DR. THEO SAI, 12 SPONSORED BY: RESTAURANTS An empire begins Burnt Toast Brands has many Southeast cities in its expansion plans should its South Tampa concept succeed. ASHLEY GURBAL KRITZER, 8 TAKING IT IN Noteworthy lessons The Florida Orchestra's story of transformation to a community service organization has many business leadership take-aways. ALEXIS MUELLNER, 3 TAMPA BAY BUSINESS JOURNAL November 27, 2015 Vol. 35, No. 49, $ W. Kennedy Blvd. Suite 850 Tampa, FL r L Breaking news online TampaBayBusinessJournal.com On Daily updates TampaBayBusinessJournal.com/

NOVEMBER 27, 2015 3 ALEXIS MUELLNER Alexis is the Editor of the Tampa Bay Business Journal I AMUELLNER@BIZJOURNALS.

Cover story s note-worthy takeaways: leadership, discipline, change As you can see in my cover story this week on the The Florida Orchestra, there are compelling music lessons here.

Louis Symphony Orchestra, which left him immersed and involved in the business. As a kid, he remembers working the box office with his brother managing ticket rolls and counting stubs.

He didn t face pressure to follow in his father s path but it was made available to him, and he has never looked back.

We used to go around and around on this. If it was going to fail, he wanted to take the criticism. One thing Sherwood helped the CEO with, and a trait other leaders can relate to: stop talking.

TFO is an organization that has been beat about for half a century and had lots of wounds. The return to stability involved a lot of really good people power and a dose of empathy.

TFO s decimated board completed a mission makeover, gained new understanding and helped lead a transformation. Once a museum curating masters, TFO is now a community service organization.

This year is better than last year, every year, Pastreich said. That becomes logarithmic.

2 NOVEMBER 27, ALEXIS MUELLNER Alexis is the Editor of the Tampa Bay Business Journal I AMUELLNER@BIZJOURNALS.COM TAKING IT IN The Florida Orchestra s violinist s at practice. Cover story s note-worthy takeaways: leadership, discipline, change As you can see in my cover story this week on the The Florida Orchestra, there are compelling music lessons here. It starts with the CEO, Michael Pastreich. While he has spent a life in the world of orchestra management, he clearly grew as a leader. His dad led the St. Louis Symphony Orchestra, which left him immersed and involved in the business. As a kid, he remembers working the box office with his brother managing ticket rolls and counting stubs. As he got older, he sat in on negotiations and took notes, circulating the details later. He didn t face pressure to follow in his father s path but it was made available to him, and he has never looked back. One of Pastreich s traits, said workplace engagement consultant Steve Sherwood, was he would take the hard tasks on himself and take responsibility for big hits. We used to go around and around on this. If it was going to fail, he wanted to take the criticism. One thing Sherwood helped the CEO with, and a trait other leaders can relate to: stop talking. He felt compelled by honesty to tell what he was thinking, Sherwood said. It s important to set your ideas aside, listen and then consider. TFO is an organization that has been beat about for half a century and had lots of wounds. The return to stability involved a lot of really good people power and a dose of empathy. As we tackled things, the humanity was just as much as a focus as finances, Pastreich said. The cover story also addresses board behavior. TFO s decimated board completed a mission makeover, gained new understanding and helped lead a transformation. Once a museum curating masters, TFO is now a community service organization. The board was willing to face the terrifying threat of failure and then find a way to reinvent. That took an organizational embrace of the art of the long view. This year is better than last year, every year, Pastreich said. That becomes logarithmic. Discipline is also key theme, given the board s willingness to tackle these issues at the core, and accessibility is an example. It s a trend in the industry and varies from orchestra to orchestra. The Detroit Symphony goes to the far end of spectrum citing a mission to impact and serve the community through music, for example. Everyone is moving in that direction to some degree, Pastreich said. Those are just some of the changes afoot in an ever evolving creative industry. While the way tickets are sold, hall design and talking in between performances is likely to change, one thing that won t: demand for concerts. 150 years from now, people will be sitting in concert halls with nothing in their hands, listening, he said. When you give your employees a Publix gift card, you re giving them exactly what they want. And then they get to decide how they want to spend it. It s a win-win! Ordering is quick and easy! Just call us at , or visit us online at publix.com/gift. All orders, unless otherwise requested, will be sent standard shipping at no charge. Publix gift card designs are subject to availability. Your purchase may qualify for a discount. Please call for details.

4 TAMPA BAY BUSINESS JOURNAL Named by The Princeton Review as one of the 296 best business schools in the world Ranked in U.S. News & World Report among the best graduate programs Named the nation s # 7 best value business school by Business Insider TAKE THE NEXT STEP!

MARCO BORGGREVE Music to their Ears Florida Orchestra becomes debt free after making tough choices BY ALEXIS MUELLNER AMUELLNER@BIZJOURNALS.COM 813.342.

As new Music Director Michael Francis took the dais and raised his wand to begin TFO s new season in October, it capped a rather remarkable turnaround for the organization.

3 4 TAMPA BAY BUSINESS JOURNAL Named by The Princeton Review as one of the 296 best business schools in the world Ranked in U.S. News & World Report among the best graduate programs Named the nation s # 7 best value business school by Business Insider TAKE THE NEXT STEP! (813) New Music Director Michael Francis directing the Florida Orchestra. MARCO BORGGREVE Music to their Ears Florida Orchestra becomes debt free after making tough choices BY ALEXIS MUELLNER AMUELLNER@BIZJOURNALS.COM Part-time/full-time MBA Executive MBA M.S. in Accounting M.S. in Finance M.S. in Marketing Certificate in Nonprofit Management Michael Pastreich The biggest moment in the history of the 48-year-old Florida Orchestra came without a sound. As new Music Director Michael Francis took the dais and raised his wand to begin TFO s new season in October, it capped a rather remarkable turnaround for the organization. Five years ago, it was a measure away from failure. For the first time in more than 20 years, the orchestra is out of debt, and has paid off $3 million between what it owed banks and itself, said President and CEO Michael Pastreich. There are lessons to be gleaned from TFO s turnaround. Board members and executive leaders drove change when finances were weak and credibility was low, and the orchestra desperately needed to control expenses and increase revenue issues many small and medium-sized businesses must tackle. Finances are a symptom, not a cause, said Pastreich.

NOVEMBER 27, 2015 5 Meet the Faculty JEFFREY DO

HOW TO CATCH A PERFORMANCE TFO plays to three Tampa Bay area halls over weekends in season (October to May), at the David A. Straz Jr.

4 NOVEMBER 27, Meet the Faculty JEFFREY DONALDSON, Ph.D., CFA Associate Professor of Finance Daphne Soellner, assistant principal flute (left), Clay Ellerbroek, principal flute (center) and John Upton, principal oboe (right) R CLOSER LOOK HOW TO CATCH A PERFORMANCE TFO plays to three Tampa Bay area halls over weekends in season (October to May), at the David A. Straz Jr. Center for the Performing Arts in Tampa, the Mahaffey Theater in St. Petersburg and Ruth Eckerd Hall in Clearwater. SEVEN SEASONS OF CLIMBING FLORIDA ORCHESTRA ATTENDANCE As the Florida Orchestra has worked its way out of financial troubles, audiences have improved every year. The chart is the total audience for the five different series. The orchestra s Masterworks and Pops series have the largest audiences. 100,000 80,000 60,000 40,000 20, /09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 SOURCE: FLORIDA ORCHESTRA Long crescendo Pastreich joined TFO in October We had a structural deficit, and that s not an accounting term, he said. A year before Pastreich arrived, the orchestra s budget was balanced with a onetime, $1 million gift, an $800,000 bequest and another $1 million earmarked to help the orchestra move offices. TFO was writing off $100,000 a year of those expenses, but that wasn t sustainable, he said. $3 million of actual debt means $3 million of gasping for air, What the hell are we going to do? fundraising, and that leads you to make unwise decisions long term, Pastreich said. When the donor of the $1 million gift earmarked it for endowment, the cashstrapped orchestra asked if the money could go instead to the operating budget. The donor said yes, but don t ever call them again. It s important to donors that money goes where it s earmarked, Pastreich said. If you need it for something and can t keep your word, it undermines credibility, he said. Many people were disillusioned, and people stopped taking Pastreich s calls. They also weren t saying good things in the community. The deficit was seen as a bottomless pit. That spooked its large board, and by 2008, all but three of 58 directors resigned. We were beyond of the stage of the ballet moms on the board, but there were a lot of people for whom the artistic vision was the start and end of how they approached issues, said Tampa attorney Gregory C. Yadley with Shumaker Loop and Kendrick. He was one of the three sole survivors. As a corporate lawyer, I know the importance of good governance, he said. It was courageous of the board members who stayed, Pastreich said. So much in life is obvious if you have the courage to do it, he said. By 2010, Pastreich and a reconstituted 38-member board assembled a plan to return to solvency and restore credibility with donors and the public. They made an austerity checklist that included painful tasks. TFO asked a small group of people for fairly large gifts with a catch. The money was predicated on us doing everything on the list and the low credibility was almost helpful, Pastreich said. It was an ambitious list. It raised $8 million. The plan was to increase sustainable revenue by $1 million and cut structural expenses by $2 million, all the while attacking the $3 million debt. In the end, revenue went up $1.5 million and expenses were hacked $1.5 million. We made every change except for what was in the collective bargaining agreement with the musicians, and we weren t allowed to make changes unilaterally there, Pastreich said. In the fall of 2010, with the impact of the recession being felt and finances pretty bleak, the organization was a day away from running out of money and having to lay off the orchestra and half the remaining staff. After a very tough negotiation, TFO secured a new three-year collective bargaining agreement with musicians. It was no longer about negotiating a raise, it was a fundamental shift, Pastreich said. The orchestra s season shrunk from 30 weeks to 24 and the number of full-time musicians was cut back. Remaining cuts were achieved through attrition. While no musicians lost their seats, nine of 30 staff- CONTINUED ON PAGE 6 Dr. Donaldson has served as chair of UT s finance department and director of the M.S. in Finance program. He specializes in investments, portfolio management and trust investments. He has twice been honored with the Graduate Faculty Member of the Year Award for Excellence in Teaching and was also selected for UT s Excellence in Teaching Award. He is a CFA charter holder and has professional experience as a broker, investment adviser and portfolio manager. RESEARCH Dr. Donaldson s research focuses primarily on investments and corporate finance. He has won numerous awards for his research and has been published in the Financial Analysts Journal, Journal of Financial Education, Journal of Financial Research and Journal of Corporate Ownership and Control, among others. TEACHING SCHEDULE Spring 2016: Investment Portfolio Management, Advanced Portfolio Management

6 TAMPA BAY BUSINESS JOURNAL R MEET MICHAEL NEW MUSIC DIRECTOR TAKES IT TO THE STREETS British conductor Michael Francis, 39, signed a three-year deal this year, a move that has re-energized the

TFO s relationship with former music director Stefan Sanderling soured, and in summer 2012 he decided not to renew, with a few years remaining on Michael Francis his contract.

Retrenchment wasn t going to give him the tools he needed to meet those goals. To be a musical director in a recessionary time or a time of contraction is difficult.

The void was filled with a variety of guest composers, and the gap allowed the organization to complete its turnaround before finding the right person for such a critical job.

5 6 TAMPA BAY BUSINESS JOURNAL R MEET MICHAEL NEW MUSIC DIRECTOR TAKES IT TO THE STREETS British conductor Michael Francis, 39, signed a three-year deal this year, a move that has re-energized the entire organization, surpassing wildest expectations, the board s Greg Yadley said. Francis filled a position that was vacant for nearly three years. TFO s relationship with former music director Stefan Sanderling soured, and in summer 2012 he decided not to renew, with a few years remaining on Michael Francis his contract. He was quickly bought out. He believed that the organization had to define what great art was and step forward with that art tag to move forward, Michael Pastreich said. Retrenchment wasn t going to give him the tools he needed to meet those goals. To be a musical director in a recessionary time or a time of contraction is difficult. Sanderling continued his leadership as conductor emeritus and artistic advisor while TFO searched for a new music director. The void was filled with a variety of guest composers, and the gap allowed the organization to complete its turnaround before finding the right person for such a critical job. Francis is only the orchestra s fourth music director in its 48 seasons. These aren t jobs with high turnover, given salaries close to $200,000 and the post s creative prominence and profile. His charm and natural ability to communicate with audiences, combined with his desire to present music to the entire community, paint a clear picture of how the orchestra is transforming for the future, the organization said when it announced his arrival. Michael Francis has become the symbol for a new beginning for The Florida Orchestra, said Thomas H. Farquhar, board chairman, in a statement. Cue music. Alexis Muellner CONTINUED FROM PAGE 5 ers were laid off. Once that was done, we got to the point we could think, he said. The board focused on strategy, expenses, revenue and sustainability in everything possible. It s tough convincing people to take a long term view of change. Having made deep sacrifices with little return, relations with the musicians remained poor through 2010 and 2011 when deep rifts left musicians planning to strike. Jeffrey Multer, concertmaster violin and Nancy Chang, associate concertmaster violin. In the background is Lei Liu, second assistant concertmaster violin. Dale Williams, pianist Ready to listen Pastreich hired Georgia-based workplace engagement consultant Steve Sherwood to work with the musicians and rebuild the relationship. The orchestra wasn t all that eager, Pastreich said. As communication improved, the CEO asked the musicians what, within his control, could he do to help? What he heard: Start using the full orchestra in photos and get a contract negotiated before the season begins. Details like that emerge when you create a culture of listening, Sherwood said. The biggest challenge for me is to serve in a way where it isn t apparent what s being done, but to get people to sit back and listen longer, Sherwood said. Often times in a negotiation, one side has a little more right on its side, he said. That wasn t the case here. The musicians, the administration and the board had a united goal. The bottom line is everyone loved the orchestra and wanted it to continue, Sherwood said. Hope and goodwill began to seep back into the organizational consciousness heading into the season, starting with the Tampa Bay Lightning, which commissioned new pregame theme music. Then came the orchestra s September 2011 trip to Cuba, when its Florida Orchestra Wind Quintet performed in Havana. It was the first time since 1999 that a professional American orchestra sent musicians to Cuba, and only the second time since the 1959 revolution. Anna Kate Mackle, principal harp By mid-2012, for the first time in the 48-year history of TFO, it negotiated a contract with its musicians before the beginning of the next season. That should be routine, and it wasn t. Getting it done contributed to already improving relations with the players, the CEO said. It set up a path to grow the program, and other cool things like compensation for musicians in inactive periods and pay from a new electronic media agreement. It was also another example of the board s strategic tack, knowing TFO had plans to raise $25 million ahead. If we had a contract and strong working relationship with the musicians, that would help raise the money, Pastreich said.

NOVEMBER 27, 2015 7 So much in life is obvious if you have the courage to do it.

reversed. Since 2011, the orchestra has seen a 34 percent increase in paid attendance and the amount of households served is up 67 percent.

half-century, Pastreich said. Lower prices in that initiative brought larger audiences and the orchestra started selling out concerts. The halls are now full, Pastreich said.

TFO relaxed fixed-ticket package rules, and it s easier for customers to compose their own. Logos were redesigned to look hip and contemporary.

A music for video games program is coming in February based on the video game Final Fantasy.

Musicians play better in a full hall as it becomes an interactive experience, Pastreich said. A full hall has more people you can raise money from.

8 million. TFO successfully completed a major summer fundraising campaign, reaching its most ambitious goal ever: $25 million over three years from the Music for Life campaign.

6 NOVEMBER 27, So much in life is obvious if you have the courage to do it. MICHAEL PASTREICH,The Florida Orchestra president and CEO Completing the piece Now, expenses are being paid regularly, the endowment is growing and a 10-year or more decline in ticket sales has been reversed. Since 2011, the orchestra has seen a 34 percent increase in paid attendance and the amount of households served is up 67 percent. As part of its revenue goals, in 2011, the board approved an accessibility initiative to bring more people to the music, since prices for the arts have gone up faster than inflation for a half-century, Pastreich said. Lower prices in that initiative brought larger audiences and the orchestra started selling out concerts. The halls are now full, Pastreich said. It s basic economics, he said. You lower the price, demand goes up. It s our mission to serve and perform for people. TFO relaxed fixed-ticket package rules, and it s easier for customers to compose their own. Logos were redesigned to look hip and contemporary. Product diversified with pops concerts, morning coffee concerts and rock music programs that honored the music of Led Zeppelin, U2 and The Police as a way to connect with baby boomers. A music for video games program is coming in February based on the video game Final Fantasy. In realizing it was critical audiences grow and more people need to hear the music, the board said forget about earned revenue and remember the benefits of a full hall. Musicians play better in a full hall as it becomes an interactive experience, Pastreich said. A full hall has more people you can raise money from. The finale Since 2007, the orchestra has raised nearly $45 million for its annual fund, endowment and other campaigns, even through a tough recession. The endowment is at an all-time high of $17.8 million. TFO successfully completed a major summer fundraising campaign, reaching its most ambitious goal ever: $25 million over three years from the Music for Life campaign. Before its 2012 contract, the last time the orchestra season grew was in But after renewing its three-year contract again this year, the orchestra has John Shaw, principal, playing orchestra bells. now signed two consecutive three-year contracts, each with growth attached. By creating sustainable programs, the orchestra is positioned to survive the next recession, the CEO said. If we start building a residency program then we ll do it with a sustainable model; if we partner in Cuba, it has to be sustainable, he said. We ll do stuff to survive the best and worst times. At just 24 weeks in , the musicians are now up to 31 weeks with a long-term goal of 38. Orchestras in places like Boston, New York and San Francisco go 52 weeks, but for this market, TFO is growing in performance breadth and reach. Next year, the season will begin in September, earlier than ever. Now we can t figure out how to cram what we have into the time we ve got, Pastreich said. Specializing in Corporate Rentals and Events Your LOCAL Audio Visual Provider For Over 25 Years Rental Equipment LCD Video Projectors Video Equipment Audio Visual Equipment Sound Systems & Wireless mics Lighting 24 Hour Service Delivery Available Event Staging Our clients have relied on our friendly, personalized service, painstaking attention to detail and reasonable rates to meet their audio-visual rental and staging needs for tradeshows, conventions, meetings, parties, pharmaceutical dinners & other events in Tampa and surrounding areas. Our prices, service and equipment are among the best. Contact us to find out how we can help make your next event a success! avssinc@yahoo.com (813) (800) 881-AVSS 4517 George Rd., Suite # 220, Tampa, FL 33634

Vice President, Development League of American Orchestras

Vice President, Development League of American Orchestras New York, NY http://www.americanorchestras.org Send Nominations or Cover Letter and Resume to: Zena Lum Search Director 617-262-1102 zlum@lllsearches.com