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A.J. Hyland

Hyland Software Inc. (HSI) is a quintessential entrepreneurial success story. The company was started in 1991, fueled by a passion for technology that led to a remarkable business track record. Headquartered in Cleveland, Hyland Software is led by its president and CEO, A.J. Hyland.

I wanted to learn more about why Hyland Software is so successful in Ohio. What I learned is that Ohio provides the perfect balance between cost structure and market access—something that every entrepreneurial initiative can benefit from.

Hyland Software contributes to helping the world adopt "green" practices by moving companies to a paperless operation. Hyland Software has developed its award-winning OnBase® product, enterprise content management software that combines integrated document management, business process management and records management in a single application.

The company is committed to providing service and support that goes beyond customer satisfaction to produce customer "delight." Remarkably, A.J. commits to being personally available to his customers 24/7, 365 days a year. It is a commitment he rightly keeps. Hyland Software is the kind of company we are proud to have headquartered and prospering in Ohio.

Q: Hyland Software has a noteworthy history of success. Since its launch in 1991, the company has consistently outperformed the market. Hyland Software has more than 7,000 customers worldwide. It sounds like a classic tale of entrepreneurial success. Tell me about the creation of the OnBase® software program and how being in Cleveland has been most beneficial.

A: My brother started Hyland Software because he saw an opportunity to help organizations be more efficient and effective through better management of their key documents. The company was founded on an idea and then grew, one customer at a time. Today, we are a global operation with a strong customer base. I joined the company immediately after graduating from college and became president in 1997. I've had the opportunity to see our OnBase® product make a difference in the cost efficiency, functionality and profitability of many companies, as well as our employees win multiple awards for their efforts, including being recognized in 2007 by Mortgage Technology as one of the Top 50 Best and Brightest Mortgage Technology Providers.

From the very beginning, it was decided that Hyland Software would be headquartered in Cleveland and we've never looked back. Cleveland has everything our company needs to be successful. Our past, present and future are in this community.

Q: The recently reformed tax structure in Ohio makes the first $1 million dollars in a company's sales essentially tax-free. What would this have meant for Hyland Software back in the early 90's when you were gearing the company up for success?

A: If the current tax law were in place when Hyland Software was starting up it would have been a huge benefit. The startup phase is a time when every penny really matters. Typically, a startup is leveraged to the maximum and additional capital is difficult to find. Not having to pay state tax on the first $1 million in gross receipts means operational cash is made available for further product enhancement or for hiring additional employees to help propel the business. Even though this law wasn't in place when Hyland Software started, I know Cleveland and Ohio, as a whole, will continue to be great places for entrepreneurs to consider investing capital. Everything you need to create a successful business is readily available.

Q: To borrow a concept from the book "Good to Great," getting the right people on the bus is important to success. Has Hyland Software been able to find the right people in the Ohio labor pool? Have you had any problems recruiting talent from outside Ohio when needed?

A: The Ohio higher education system is remarkable. We have no trouble finding the talent we need to make Hyland Software successful. We have great relationships with a number of outstanding institutions like Case Western Reserve University, Cleveland State University, and Kent State University to name a few. Hyland Software gets access to the best and brightest talent, and in return, we give graduates the opportunity to work on cutting-edge technology. We are now in the process of extending our reach to take advantage of the talent from other top-notch institutions, like The Ohio State University.

One additional point that I think often gets overlooked is the incredible work ethic of Ohio employees. While I am sure it is true elsewhere, Ohioans take great pride in the quality and quantity of their work. I never have to worry if Hyland Software is getting a good day's effort for a good day's pay. The productivity and loyalty of Ohio workers is something we don't talk enough about.

Q: When I spoke with Stan Aholt, executive director of the Ohio Supercomputer Center, he mentioned that many executives are unaware of how wired Ohio really is. Hyland Software is in the software solution industry, do you feel Ohio has the telecommunications connectivity companies need to be successful?

A: Ohio has given Hyland Software everything it needs to be successful. Our company effectively serves customers around the world. Domestic and international travel is easy from Cleveland because it is a hub for Continental Airlines, and the same is true in Cincinnati with the Delta hub. From an Internet service perspective, we have more than adequate bandwidth to meet our requirements. I think Stan is right when he says Ohio is a well-wired state.

Q: Ohio claims it is the state of perfect balance where professional success is achieved in the broader context of a fulfilling life. From your perspective, how authentic is the assertion?

A: I think Ohio is a terrific place to have a business. There really is an opportunity to achieve your professional goals without having to sacrifice your personal goals. One of the trends I see is people who moved away from Ohio and returning in hopes of starting a family and establishing roots. I think the opportunity to achieve a good work-life balance is real. It is easy to commute to and from work. I can easily be in downtown Cleveland in 15 minutes, and most importantly, my employees and I have time to spend with our families. I am sure other CEOs have told you that a good work-life balance helps improve morale, productivity and continuity. Each of these benefits has direct bottom line performance impact. I know many executives who have left Ohio and want to come back. They want to be part of their children's lives while they are young and don't want to be absentee parents as a result of earning a living. I think Ohio is definitely the "State of Perfect Balance." I am looking forward to seeing Hyland Software continue to grow and help foster a prosperous Cleveland, Ohio.