AzBusiness magazine November/December 2012

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NOVEMBER // DECEMBER 2012

STATUTE of LIBERTY ARIZONA BANKERS WARN: DEFICIENCY LAWS STIFLING THE ECONOMIC RECOVERY

$4.95

ROBERT SARVER, CEO OF WESTERN ALLIANCE BANCORPORATION AND OWNER OF THE PHOENIX SUNS

ARIZONA FORWARD

.97

CFO OF THE YEAR AWARDS

.40

BRANDING AZ

.72

SPIRIT OF ENTERPRISE

.78

Building alliances for growth in arizona.

Over $697 million in loan growth since January 2011*

Corporate Banking n Commercial Real Estate Lending n Public Finance n Business and Professional Banking n Small Business Lending n Treasury Management Services n

602.386.5500 Phoenix

n

ScottSdale

n

MeSa

n

tucSon

n

Sedona

*For the period 1/11-9/12.

A division of Western Alliance Bank. Member FDIC. 10/12

Western Alliance Bank is an affiliate of Western Alliance Bancorporation

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FlagStaFF

Jim Lundy

Ed Zito

Chief Executive Officer Alliance Bank of Arizona

President Alliance Bank of Arizona

alliancebankofarizona.com

{ Teaching by example. That’s what we’re all about too. } With more plans and dentists to choose from, we are proud to have insured healthy, happy smiles in Arizona for the past 40 years!

Every Smile Matters. Get Delta Dental.

MySmileAZ.com

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Let us pay crisp attention to your suit lapels.

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Let us transform our Club Lounge into your virtual corner office.

Let us turn a sun-lit mountain view into the inspiration for your next big idea.

Let us graciously open the door to your future success.

Professional Pursuits – The ideal package to make life on the road both easier and more productive. Includes deluxe accommodations,

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breakfast, in-room high-speed internet, valet parking, garment pressing and shoe shining. For reservations, contact your travel professional, call The Ritz-Carlton at 800-241-3333 or visit ritzcarlton.com/phoenix.

Rate is per room/per night based on single occupancy, exclusive of taxes, gratuities, fees and other charges; does not apply to groups; cannot be combined with any other offer and blackout dates apply. Daily American breakfast for one available in-room or at restaurant. Garment pressing available up to three items. Void where prohibited. ©2012 The Ritz-Carlton Hotel Company, L.L.C.

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Balancing work and play

ON SO MANY LEVELS.

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CALL 602.258 .1817 Sales by Cambridge Properties Inc. Keith Mishkin, broker, licensed in the State of Arizona. Square footage is approximate and may vary. This material is not an offer to sell real property and shall not be construed as an offer in violation of the law of any jurisdiction. No Federal or State agency has judged the merits or value if any, of this property. Obtain all relevant documents, disclaimers, and covenants, and read them before signing anything.The depictions herein may reflect building, amenities and improvements some or all of which may be conceptual only, and subject to change without notice. All brokers welcome. Prices, terms, incentives, material, and availability subject to change without notice. Subject to Public Report. © 2012 All rights reserved.

Table Of Contents 8 Alpha CEO 10 Alpha First Job 12 Small Business 14 Alpha Women 16 Education 18 AzTech: HEAT 24 Law 28 Turnaround Management 30 Health 32 Arizona Bankers Association 49 CFO of the Year 72 Branding AZ 83 Corporate Angels 97 Arizona Forward robert Sarver balances basketball and banking Desert Subway’s Mark roden loves giving back

Image Ave Studios adapts business to stay in focus Joan Brubacher fuels resolute Commercial Services ASU center helps businesses deliver better services • Arizona on the road to becoming bioscience leader • Zylstra: State needs more access to angel investors Need $1 million? Crowdfunding may help you

TMA honors those that help businesses rebound

Does your wellness program pass a legal check-up?

• Experts: State’s deficiency laws are crippling industry • Anatomy of a bank: A look at its business model A look at the 20 finalists who make up a class of Arizona’s financial landscape for 2012

bring on the HEAT

The valley of the Sun has created the perfect climate for tech startups.

Don’t believe me? What if I told you the valley is almost as prolific as Silicon valley for producing tech startup companies? Would you believe it?

You should, because it’s a fact. according to an analysis from SizeUp, a San Francisco–based provider of free business intelligence for small and mid-sized businesses, the valley boasts two cities — Chandler and Mesa — among the nation’s top 10 cities with the most tech startups per capita.

Silicon valley had three cities in the top 10. and Chandler, home of Intel and Microchip technologies, ranks ahead of tech darling austin, texas, which beat out arizona to land apple’s new facility along with about 3,600 jobs.

The rankings illustrate the valley’s emergence as a hotbed for tech startups — computers, software, medical devices and electronics — and as an economic leader in technology- and research-driven industries. and as technology drives arizona’s economy, it also drives our coverage of arizona business. Over the last several issues, we have been beefing up our coverage of all things tech-related. and in this issue, we take it one step further with the debut of a new section called heat, an acronym for healthcare, energy, aerospace and technology. heat will take you inside all those issues that will drive arizona’s economy during its second century.

We’ve all known for a long time that arizona is known for it’s heat. but soon, it will be the heat that defines arizona.

What it takes to create the the biggest buzz in business Giving back proves to be good for business

• Organization transitioning into a statewide focus • State must ease transportation problems to compete

Cover photograph by Cory bergquist.

4 AB | November-December 2012

michael gossie Editor in Chief michael.gossie@azbigmedia.com

Az Business on the Go: AzBusinessMagazine.com

Shout Outs

giviNg iS iN THEir JEANS

Steptoe & Johnson’s phoenix office has raised almost $100,000 for charities and nonprofit groups in arizona by allowing employees to wear jeans on Fridays in exchange for a contribution of $5 or more toward a charity, which rotates weekly. Since 2005, the “Casual Day” fund has raised more than $95,000 for organizations, including the arizona Red Cross, hospice of the valley, St. Mary’s Food bank and the pat tillman Foundation.

App WATCHES OuT FOr YOur EYES

Southwestern eye Center has developed a mobile application designed to make it convenient for patients to take eye care mobile.

The app makes it simple to make or change appointments, refill medication, request records and ask questions. patients can look up biographies of doctors, view locations, hours and phone numbers, and watch educational videos. The app is available for iphone, ipad and android devices.

HElpiNg HumANiTY

Mutual of Omaha bank recently purchased more than two dozen non-interest bearing mortgages originated by habitat for humanity Central arizona. hFhCaZ has been able to invest the money to build, renovate and repair affordable homes in partnership with families in need. Since 2009, Mutual of Omaha bank has contributed nearly $8.1 million in capital to hFhCaZ, helping more than 500 families in central arizona.

TAKiNg SOlAr STATEWiDE

apS’ Solar for Schools and Government program — a cooperative effort to enable publicly funded K-12 school districts, publicly funded charter schools and government entities to save money with solar power — has helped spark solar installations in rural parts of arizona. harmon Solar executives expect the program to offset 62,000 megawatt hours of energy consumption over its first three years — the equivalent to removing 5,400 cars from the road.

A FrEE EDuCATiON

Millions of students are taking free “massive open online courses,” or MOOCs, but education experts are asking two questions: Will universities offer credit for the courses, and how can cheating be prevented? Colorado State University’s Global Campus, an independent online university, answered both questions when it became the first american institution to offer three transfer credits to students who complete a free course offered by Udacity and take a proctored test.

6 AB | November-December 2012

prESiDENT & CEO: MIChael atKInSOn publiSHEr: CheRYl GReen viCE prESiDENT OF OpErATiONS: aUDReY Webb EDITORIAL

EDiTOr iN CHiEF: MIChael GOSSIe EDiTOr: peteR MaDRID ASSOCiATE EDiTOr: KRIStIne CannOn iNTErNS: aRSelIa GaleS • DanIel eSCObeDO • CaROlIna lOpeZ tRavIS MCKnIGht • COOpeR RUMMell • JUlIa SWeM ArT SENiOr grApHiC DESigNEr: ChRIStIn GanGI SENiOr grApHiC DESigNEr: MIKe MeRteS CONTribuTiNg pHOTOgrApHEr: CORY beRGQUISt iNTErN: GlORY ShIM DigiTAl mEDiA WEb DEvElOpEr: eRIC SheppeRD WEb & grApHiC DESigNEr: MelISSa GeRKe mArKETiNg/EvENTS mANAgEr: WhItneY FletCheR iNTErNS: abRIelle SWISheR • bRIttanY haRRIS OFFiCE SpECiAl prOJECTS mANAgEr: SaRa FReGapane ExECuTivE ASSiSTANT: MaYRa RIveRa DATAbASE SOluTiONS mANAgEr: CInDY JOhnSOn AriZONA buSiNESS mAgAZiNE SENiOr ACCOuNT mANAgEr: DavID haRKen ACCOuNT mANAgErS: ShannOn SpIGelMan • aRthUR alCala AriZONA COmmErCiAl rEAl ESTATE ACCOuNT mANAgErS: Steve KOSlOWSKI • MIChelle MCbaY rANKiNg AriZONA viCE prESiDENT / SAlES & mArKETiNg: lenORe GRObSteIn DirECTOr OF SAlES: SheRI KInG ExpEriENCE AriZONA/plAY bAll DirECTOr OF SAlES AND mArKETiNg: SCOtt FIRle SCOTTSDAlE liviNg ACCOuNT mANAgErS: SUSan haRKen • MaRIanne avIlla AZ big mEDiA ExpOS SCOttSDale SUpeR eXpO/nOveMbeR SCOttSDale SUpeR eXpO/apRIl ExHibiT DirECTOrS: KeRRI blUMSaCK • tIna RObInSOn • SheRI KInG HOmE & DESigN iDEA CENTEr SHOWrOOm mANAgEr: JOanne StanleY ACCOuNT mANAgEr: MaRIanne avIla EvENT COOrDiNATOr: SaRa FReGapane AZ Business magazine is published bi-monthly by AZ BIG Media, 3101 N. Central Ave. Suite 1070, Phoenix, Arizona 85012, (602) 277-6045.

The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $4.95. Bulk rates available. Copyright 2012 by Arizona Business. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from AZ BIG Media.

the good of the

GAME

The GAME is on during Waste Management Phoenix Open week. Day and night. And, thanks to the GAME, The Thunderbirds give millions of dollars each year to hundreds of Valley charities. Your support of the Waste Management Phoenix Open helps enrich the quality of life for so many. GAME ON! JANUARY 28 — FEBRUARY 3, 2013

See You at the Open!

•

TPC SCOTTSDALE

alpha THE CORNER OFFICE photograph by CORY beRGQUISt

through a tough recession. I think I’ve worked the hardest I’ve ever worked over the last five or six years.

What has been your biggest challenge as owner of the Suns?

RObeRt SaRveR

CEO of Western Alliance Bancorporation and owner of the Phoenix Suns Which hat do you like to wear most: Suns owner or bank CEO?

On the night of a victory, owner of the phoenix Suns. On the night of a defeat, I’d rather be a banker.

Are there qualities that you look for both in a head coach and in bankers you hire?

They both have to be able to inspire people, motivate people, and bring out the best in the people that are working for them. They both have to have a vision and philosophy that those who work for them are ready to follow and work hard for.

Why did you choose banking at such a young age?

My dad was in the savings and loan business, and I started out working after school. My senior year in college, one of my professors helped me write a business plan to open up a community bank.

Are there lessons you’ve learned in banking that you carry over into management of the Suns? a lot of it has to do with management and hiring the right people, motivating the right people, retaining the right people, putting them in the right position, keeping your customer happy, and exceeding your customer’s expectations. That’s true whether you’re selling banking services or seats to a basketball game.

What has been your biggest challenge as a CEO in the banking industry?

Dealing with the cyclical nature of our economy and struggling

8 AB | November-December 2012

basketball is a very humbling business. If you win 65 percent of your games, that’s a good year. That’s hard to deal with for someone who has been in business and been successful more than 90 percent of the time. So trying to make good decisions for the basketball team that balance short-term goals with long-term goals has been the biggest challenge.

You’re very active in the community. What efforts are you particularly proud of?

I’m really happy with my wife and my involvement with the Sarver heart Center, which developed Continuous Chest Compression CpR, a hands-only CpR method that doubles a person’s chance of surviving cardiac arrest. Our efforts are literally saving lives.

We are also working on something this year with Suns Charities to improve the graduation rate, and we are starting with Central high School. We’ve hired additional teachers and tutors to help improve its graduation rate. My son goes to brophy — which is right next to Central — and we like to get to the point where a kid that goes to Central will have the same opportunities as the kid that goes to brophy. If we can do that, we’ve really made a difference.

How is the team shaping up for this season?

We’ve had a lot of change. We’re transitioning, but we’re trying to shorten than transition period it takes a team to get back to elite status. We got younger, we got more athletic, so I think we have a number of nice pieces in place. This is going to be a fun year to watch.

VITAL STATS: ROBERT SARVER  Bought the Phoenix Suns from Jerry Colangelo in the spring of 2004.  Son of Jack Sarver, a prominent Tucson businessman, banker and hotel developer who built the Aztec Inn, the Plaza International Hotel (now a Four Points by Sheraton).  Graduated from the University of Arizona with a bachelor’s degree in business administration in 1982.  Founded the National Bank of Arizona (then the National Bank of Tucson) at age 23 in 1984. He sold it to Zions Bancorporation in 1994.  Father of three boys: Max, Jake and Zach.  His Paradise Valley home has 12 patios, room for 12 cars in the garage, and a basketball court in the backyard with the Phoenix Suns logo emblazened on it.

In a perfect world, saving endangered species like whales and sharks would be everyone’s responsibility. The question is, how can we make this world more perfect? Right now, Embry-Riddle researchers are designing low-cost, unmanned aerial vehicles (UAVs) that will fly 400 feet above the waters of Galapagos Island National Park. While doing so, they will stream live video onto the web, so anyone, anywhere can monitor the area for the poachers who decimate our wildlife. Yes, at Embry-Riddle we aim for the stars. But we always keep home close to our hearts.

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SCAN TO SE E U S I N ACTION

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alpha FIRST JOB photograph by CORY beRGQUISt

MaRK RODen

President, Desert Subway, which operates more than 60 Subway franchises What was your first job?

I worked as a counter attendant at (now defunct) Red barn Restaurants in White bear lake, Minnesota.

I made everything from fries to shakes to fish sandwiches as well as took orders from customers.

What did you learn from your first job?

I definitely learned about responsibility as well as balancing wants and needs ... Most importantly, working together as a team was critical, and that you sometimes have to work with people you don’t love and do work that isn’t much fun.

Describe your first job after college.

I graduated from the Red barn to working in a grocery store in college. after starting by stocking shelves, I eventually rose in ranks to management by the time I graduated. I was a guy with a lot of ideas, but sometimes big companies aren’t very flexible about trying ideas that carry risk. I got frustrated and wanted to see if I could build a better mousetrap myself.

What lesson did you learn in that job that still helps you today?

I learned that there are lots of talented people other there, but if they are all in the same room talking at the same time that chaos ensures; that hard work deserves to be rewarded; that personal connections matter; and that passion is critical to success. I take all this to heart as an entrepreneur. today, I like to walk into my stores just to thank our sandwich artists and managers and talk to them about their passions and goals one on one. If you show people you care, then they will, too.

How did you develop your entrepreneurial spirit?

In 1986, just months before I graduated from aSU, my father passed away. In the last face-to-face conversation we ever had, he talked to me about the importance of being one’s own boss, carving one’s own road. Knowing he was right, but not quite sure 10 AB | November-December 2012

which road I would yet take, I went back to aSU for a master’s degree. about that same time, my brother-in-law started talking to me about opening a Subway restaurant together. The only Subway in arizona was right by my house, and every day I would stop by and get a cheese sandwich to go. Shortly thereafter, an opportunity to expand Subway in arizona came up. My desire to have my own business and the Subway opportunity all kind of came together at the time when I was looking to do something different. Over the first 70 days in business, we grew quickly to three Subway locations.

Why is giving back to the community so important to you?

Giving back is so important to us that in 1999, several franchisees partnered together to start Subway Kids & Sports of arizona, a nonprofit organization that provides sports equipment, uniforms, registration fees, and access to major sporting events for kids who might not otherwise be able to participate. The organization’s biggest fundraiser, our annual Subway Kids & Sports of arizona Golf tournament, has been a staple of the valley for several years. I proudly serve as this organization’s executive director as well as chair of the tournament, in addition to volunteering with big brothers big Sisters and several other great causes in arizona.

What accomplishment are you most proud of?

aside from my daughter, who is now 10 years old and the best part of my life, I am proud that we have been able to build an organization that provides employment and advancement opportunities to many, as well as enough success to give back to the local communities that we serve each day.

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alpha SMALL BIZ

by DanIel eSCObeDO

In bUSIneSS,

IMaGe IS eveRYthInG valley media company has been able to creatively adapt for 40 years

T

here’s a quaint studio located in the east valley that houses beautiful backgrounds, sets and camera equipment that can make any business owner or musician feel like a rock star. With its innovative technology, it is no wonder why so many different customers flock to Image ave Studios, which is located on the border of Chandler and Gilbert. While the brand-new studios opened just three years ago, this video production company has deep roots in arizona that go back almost 40 years.

Founded in 1972 by arizona native James Rinkenberger when he was just out of college, the company started out offering only photography and other media production services. as the business became successful, Rinkenberger discovered an opportunity that would allow him to expand his business and reach more clients throughout the valley. Rinkenberger decided that in addition to his photography services, he would also offer video production services to local companies. From this concept arose video Media productions in 1975, which strived to create videos for businesses that would increase business-to-business communication.

“The challenge for me was, ‘Does anybody want what I do?’ ” Rinkenberger said. “I wanted to create clear and concise images to communicate. I have been passionate and overzealous about this topic because visually, in the 1970s, people just were not trained properly.”

The studio quickly made a name for itself in the arizona business community, and soon, video Media productions landed big-name clients — including the United States Supreme Court for a campaign to allow cameras in the courtroom; the national Guard during Operation Desert Storm; various cities to promote Senate bills; and with president Ronald Reagan on a public service announcement for the boy Scouts of america. as video Media productions continued to evolve, Rinkenberger 12 AB | November-December 2012

wanted to create a definitive space for James Rinkenberger producers and their clients. So, in 2009, founded Image Ave James founded Image ave Studios, a com- Studios, a company that pany that combined his video and photo combines his video and companies and allowed both businesses to photo companies. operate as one entity. very quickly, however, the company faced challenges because of the economic crisis.

Despite the economic setback, Image ave Studios was able to stay afloat by continuing to think of methods that differentiated itself from the competition.

“Starting in the middle of a recession, it made my company more creative and more efficient,” Rinkenberger said. “It is a whole new world now because there are so many creative kids, and they offer their services cheaply. The only difference is that we have more experience with creating and meeting the needs of businesses today. We have had to re-invent ourselves, and we have had to find more ways to fit in. Our success back then doesn’t mean anything now.” even with early hardships, Image ave Studios has proved that it can stand the test of time. as Rinkenberger approaches retirement, he hopes his company will live on and that his love and passion will be shared with generations to come.

“My dream for the future of my business is, I’d like to pass the studio down to someone,” Rinkenberger said. “It has to be someone who is passionate and loves making communication processes for businesses like I do.”

Image Ave Studios 175 S. Hamilton Place, #115, Gilbert (602) 926-0118 imageavestudios.com

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AB | November-December 2012 13

alpha WOMEN by alISOn baIlIn batZ photograph by CORY beRGQUISt

FUeleD FOR SUCCeSS

J

oan brubacher is a gas.

Well, she knows gas — and how to account for it.

“Growing up in Kansas, my dad was a fuel distributor,” said brubacher, chief financial officer for Resolute Commercial Services, a Scottsdale-based receivership and corporate renewal firm. “he also loved math, just like me.” at only 14, number-loving brubacher was working as her father’s bookkeeper. by college, the self-proclaimed tech geek would choose to crunch numbers for life, earning an accounting degree from Kansas State University.

Recruited by ernst & Whinney (now ernst & Young) out of college, gas would continue to drive brubacher: One of her first audit clients was a convenience store and fuel distributor. and it wouldn’t be her last. after putting in her time with the big Four — and getting married — brubacher joined her father in the family business as its CFO. “My father, husband and I decided to grow the business together,” brubacher said. “In less than a decade, we grew from one to 19 locations statewide.” eventually, however, arizona would come calling when her husband decided to take a great business opportunity in the valley in 1989. For the first time since she was 14, brubacher had nothing to account for except her husband and two young daughters. embracing her inner tech geek, she eventually earned CFO positions with several high-tech companies over the next two decades.

One company — iGo — she would help take public in the 2000s.

14 AB | November-December 2012

brubacher makes an impact on financial industry and on the community

While working on the IpO, she became friendly with colleague Jerry Foster. “he was a staunch supporter of the community — and his passion was contagious,” brubacher said. before she knew it, she had joined Foster as a member of the board of directors for Junior achievement of arizona as well as branched out on her own, volunteering on the board with and serving on several committees for the Fresh Start Women’s Foundation and Financial executives International, among others. and after the IpO, Foster had other plans for her as well.

“Jerry had co-founded Resolute Commercial Services in 2008 as a receivership organization assisting businesses with complicated debt and other issues in the midst of the recession,” brubacher said.

She joined Resolute as CFO in 2009 and has helped expand the firm into California, nevada and texas. Most recently, she has also helped drive the business in another direction.

“Often, receivership can be avoided if we can get in and help a business early enough,” said brubacher, who has spearheaded this proactive approach over the past year on behalf of lenders and debtors alike. among her biggest clients — convenience stores and gas stations, of course. She has assisted more than 30 locations nationwide already in addition to physician practices, car washes and construction businesses, among others. brubacher finds that her background in finance and operations makes her uniquely qualified to assist businesses with their operational and financial issues, regardless of the industry. “life really does come full circle,” brubacher said.

S P E C I A L A D V E R T I S I N G F E AT U R E

5 Best: Female leaders B

est companies are diverse, and it’s no surprise that exemplary female leaders are found at many of Arizona’s 100 Best. BestCompaniesAZ, a leader in identifying, developing and promoting great workplaces, is celebrating its 10th anniversary by recognizing the 100 Best Companies in Arizona. These ‘best of the best’ appear in a special commemorative magazine produced by BestCompaniesAZ and Republic Media Custom Publishing.

“Building a positive workplace culture makes a positive impact on the bottom line, and our 100 Best Companies have enjoyed success as a result,”

said Denise Gredler, founder and CEO of BestCompaniesAZ. “We are proud to showcase companies that demonstrate strong leadership, including these five organizations that have thrived with outstanding female leaders.”

The 100 Best demonstrate diversity, sustainability, excellence, innovation, leadership, employer branding and company culture. The five featured leaders illustrate best practices and share a common goal...to be the best.

Visit bestcompaniesaz.com for information on building your best company and to learn more about the 100 Best Arizona Companies.

BEST OF HEART

B E S T O F S TA R S

TR AILBL A ZER

TR AILBL A ZER

B E S T O F S TA R S

C

E

W

W

A

asa Grande Regional Medical Center is a wonderful blend of small-town atmosphere with advanced technology – such as a cardiac cath lab or high-definition MRI – found in a major metropolitan setting.

Our employees describe themselves as family and they treat our patients as extended family while providing exceptional care.

Over 70% of our employees are female, and we have a flexible environment conducive to the success of women. With an infection rate at .2 percent, compared with the national average of 2.5 percent, our 187-bed facility is successfully putting quality, patient safety and outstanding customer service at the forefront of all we do. In addition, our staff feels passionately about our community and reaches out to those in our service area through volunteer, charitable and educational efforts.

ver since Charles Schwab & Co. was founded in the early 1970s, one of its basic principles has been to make investing more accessible and help people make strides towards financial fitness. That includes its own employees, since many Schwab employees are also clients; and we ensure employees have access to strong financial resources. Our culture is very focused on teamwork.

We take a strengths-based approach when matching people with projects, so we’re able to bring out the best in everyone. Women make up a crucial part of our talent base, and we support their growth through internal resource groups like the Women’s Interactive Network at Schwab (WINS). Real support for work/life balance through programs for new mothers and paid sabbaticals underscores our commitment to women.

RONA CURPHY President and CEO

PAT JOHNSON Vice President, Client Service Operations

LINDA HUNT President and CEO

800-435-4000

DignityHealth.org

520-381-6300 CasaGrandeHospital.com

AboutSchwab.com

e are a missiondriven organization that believes in honoring the inherent dignity of each individual. That means providing the best care possible for our patients, and it means collaborating with others to improve the overall health of our community. It also means creating an outstanding work environment for our employees — an environment that values their contributions and encourages them to grow and expand their skills and talents. Our employees touch hundreds of lives every day, and they are crucial to the success and continuation of our important mission. As health care changes, our employees will help to develop new innovations and treatments of care.

Our goal is to foster that creativity and innovation, which will in turn improve the health of those we serve.

602-406-3000

e are in the business of building relationships, both with our customers, and with our employees who serve them. While employees are focused on delivering Relationship Care® to our customers, the workplace itself enables them to be passionate about what they do while taking care of themselves. We provide a number of forums and opportunities for employees to get involved in networking, career development, improving job skills and having fun together. The Women’s Interest Network (WIN), for example, supports American Express’ more than half female workforce here in Arizona through a variety of formal and informal opportunities like mentoring, development, seminars and networking.

A dozen other employee diversity networks offer similar opportunities for parents, veterans and more.

t WorldatWork, the significance of family is not only understood but honored. You’ll find a level of care and concern for the individual – and the individual’s family – that is rare in the workplace.

We live and breathe flexibility and wellness, and we provide assistance and support to make sure that everyone here can be engaged, productive and focused on what’s important in life. I’m proud to say we are a multi-year recipient of the Alfred P. Sloan Award for Business Excellence in Workplace Flexibility and have been recognized as one of the Top 25 Workplaces for Women in Arizona. We recognize our employees have lives, not just business hours.

Our people are our most important asset and we make sure their work is invigorating, satisfying and engaging.

TAMMY WEINBAUM Senior Vice President & General Manager

ANNE C. RUDDY President and CEO

623-49 2-7474

WorldatWork.org

AmericanExpress.com

480-951-9191

Learn more about these innovative companies and review the 100 Best Companies at BestCompaniesAZ.com

EDUCATION

by MIChael GOSSIe

at YOUR SeRvICe aSU’s Center for Services leadership becomes a resource for companies to find profit through services

C

ustomer service was once viewed as the cost of doing business. “across almost every industry, leaders are focusing on service as a way to compete in today’s competitive marketplace,” says Mary Jo bitner, academic director for the Center for Services leadership at arizona State University’s W. p.

Carey School of business. but times have changed. Companies that are in search of new revenue streams are finding that in addition to providing great customer service, offering value-added services to their product lines are helping their bottom lines. and to help them make the most of the opportunities, many are seeking help from the aSU Center, which focuses on research and executive education in managing and marketing services.

“Customer demand and the competitive challenges posed by the commoditization of many products has pushed many goods-based companies to take another look at services as a source of revenue and profit,” says Director of the Center for Services leadership, Stephen brown, who has spent the past 20 years tracking the growing importance of services as a product. “Many are following market leaders to become goods-and-services companies.”

For example, boeing has broadened its offerings by adding the lucrative market of services to its aircraft manufacturing. The hewlett packard and Compaq merger created a new company whose major product is services. IbM’s impressive financials over the past decade — in shining contrast to its competitors — were largely the result of its service businesses.

“In 2001, we were launching our first fee-based service busi16 AB | November-December 2012

ness,” says Steve Church, president of avnet Integrated and chief corporate business development and planning officer. “We wanted to offer more services and solutions. We knew a lot, but there was a lot we didn’t know.”

Church says avnet’s membership in the center — which concentrates on expanding service innovation by combining the latest scientific insights from the academic world with the best of business strategy in the real world — allowed the company to “build a culture of service excellence that focuses on the customer and gives each a great customer experience.”

The Center, which was created in 1985, remains the only one of its kind in the United States, devoted to research and education in the services field. Its research findings form the foundation of the Center’s executive education program, attended by managers and executives of leading firms. Member companies include at&t, Charles Schwab and Co., Ford Motor Company, IbM, Mayo Clinic and others, who sponsor research, fund scholarships, host Mba student teams and participate in executive education.

Many member companies sponsor research that is published in academic journals, and shared at the Center’s executive education forums. bitner, for example, has been studying the effects of self-service technologies (SSt), working with Ford and a major pharmaceutical benefits management company.

“The Center is really a tremendous resource for any company that has a strategy to to improve customer serve or add services to augment its products,” Church says. “We learned that by getting our employees engaged in customer service, we built customer loyalty, it helped us compete, and it enhanced our financial performance.”

MEMBER FIRMS

Here are some of the companies that are members of the Center for Services Leadership at the W. P. Carey School of Business at Arizona State University. To learn how to become a member, visit wpcarey.asu.edu: AAA of Arizona Abbott Diagnostics Abbott Medical Optics Agile Pursuits Franchising, Inc. (a Procter and Gamble Company) Agilent Technologies Audatex Avnet Blue Cross Blue Shield of Arizona The Boeing Company Cardinal Health Charles Schwab & Co. Cisco Systems The Co-operators Cox Communications Cubic Transportation Systems CVS Caremark Dow Chemical DuPont Sustainable Solutions Edward Jones FedEx First Solar Fujitsu Network Communications GE GE Energy GE Healthcare Genpact Gravell Insights, LLC. Harley-Davidson Motor Company Honeywell Aerospace IBM Global Services The INSIGHT Group Intel Corp

La Jolla Cosmetic Surgery Centre Lutron Electronics Marriott International, Inc. Mayo Clinic McKinsey & Company, Inc. Michelin USA National Industries for the Blind NJVC NOVO 1 Contact Centers Oracle Pearson School Systems PetSmart Republic Services SAP Labs LLC Servigistics Siemens Industries Sonora Quest Laboratories Southern California Edison Southwest Airlines State Farm Insurance Company Symantec TriWest Healthcare Alliance USAA United Stationers Vocera Communications VWR International Westinghouse Electric Co. Zane’s Cycles

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AB | November-December 2012 17

AzTECH: HEAT (HEALTHCARE, ENERgy, AEROSPACE AND TECHNOLOgy)

by MIChael GOSSIe

tappInG IntO State’S pOtentIal

bioscience Roadmap has led arizona down the path of innovation

W

hen arizona’s bioscience Roadmap was put into place a decade ago, the 10-year plan was an invitation to innovation.

The state has accepted that invitation with open arms.

“The bioscience Industry has directly, positively impacted the arizona economy through our recent Recession,” said Derek Kirkland, life science leader for DpR Construction, which has built more than $600 million in bioscience projects over the life of the bioscience Roadmap. “It has allowed arizona to maintain and grow a construction workforce, which has shown a resurgence since late 2010.”

The success of the Roadmap, a long-term plan to make the state’s bioscience sector globally competitive, is undeniable and quantifiable.

JObS: arizona bioscience employment saw vigorous growth of 7.4 percent during the post-recession period of 2009-10, even as the state’s overall private sector lost 1.8 percent.

From 2002 to 2010, bioscience jobs increased by 41 percent in arizona, adding nearly 28,000 jobs for a total of 96,223. The U.S. posted an 11 percent gain in bio jobs during this span.

FirmS: The number of bioscience establishments in arizona rose 27 percent from 2002 to 2010, increasing from 682 to 867. This compares with 20 percent growth for the U.S. The research, testing, and medical-labs sub-sector remains the largest in arizona, with 436 18 AB | November-December 2012

establishments, and since 2002 has expanded fastest, growing 49 percent.

WAgES: bioscience workers in arizona earn an average annual salary of $55,353, compared with $42,858 for all private-sector industries. From 2002 to 2010, salaries increased 27 percent.

NATiONAl iNSTiTuTES OF HEAlTH grANTS: In 2011, arizona received $184.1 million in funding from the nIh, the industry gold standard. That total is smaller than 2009 and 2010, which were boosted by nIh federal-stimulus awards, but 14 percent higher than 2008. From 2002 to 2011, nIh funding in arizona grew faster (25 percent) than the top-10 funded states (20 percent) and the overall U.S. (17 percent). rESEArCH AND DEvElOpmENT ExpENDiTurES: bioscience-related academic research and development expenditures at arizona’s universities reached $437.1 million in 2009 (the most recently available data). This represents a 56 percent gain since 2002, slightly higher than the overall U.S. growth (55 percent). vENTurE CApiTAl: arizona rebounded from a difficult 2010 with a 2011 total of $69 million in bioscience venture capital. This represents the second-most productive year since 2002, though it is still short of the Roadmap goal of $100 million. implEmENTATiON: Of the 19 action items in the Roadmap recommended by battelle in 2002 to achieve over 10 years, progress has been made on 18, or 95 percent, including substantial progress on 10.

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AB | November-December 2012 19

AzTECH: HEAT

The bioscience industry has brought in more than $600 million in projects for DPR Construction since the Bioscience Roadmap was launched a decade ago.

“In the next decade, I see phoenix becoming a global center of personalized diagnostic medicine,” phoenix Mayor Greg Stanton said. “an example of this is the 3-D cell imaging for lung cancer detection that is currently being done by vision Gate, which is located in tGen’s headquarters.” tGen — the translational Genomics Research Institute, which was built by DpR Construction in downtown phoenix — may have had the single biggest impact on helping the Roadmap achieve its goals. according to a recent study, tGen — established in 2002, the same year the Roadmap was implemented — provides arizona with a total annual economic impact of $137.7 million. The study also showed that tGen operations in 2010 produced $14.40 for every $1 invested by the State of arizona, supported 737 full-time jobs (directly and indirectly), generated $4.8 million in state tax revenues, and produced a direct annual economic impact of $79.2 million.

When the impact of tGen-generated business spin-offs and commercialization are included, the study shows, tGen in 2010 produced $25.04 for ever $1 invested, supported 1,124 jobs, generated $10.1 million in state tax revenues, and $137.7 million in total annual economic impact. “tGen has become a cornerstone of arizona’s biomedical industry, continuing to add great value to the state and thriving despite challenging economic conditions,” said bill post, recently retired Chairman and CeO of pinnacle West Capital Corp. and recently appointed Chairman of the tGen board of Directors.

With the healthcare and bioscience fields more intertwined than ever, experts expect to see a shift toward interdisciplinary research and translational medicine.

20 AB | November-December 2012

“as a result, we expect to see the healthcare and bioscience sectors grow significantly for construction, potentially to 50 percent of our annual revenue,” DpR’s Kirkland said. “In addition, we anticipate a strong bioscience influence to higher education as universities strive to compete with each other to provide state-of-the-art teaching and training facilities for future researchers and medical professionals. additionally, the increasing use of super computers, digital records and remote or cloud data storage, to house information, will create a positive impact to the advanced technology and data center side of our business.”

Illustrating the increasing call for new bioscience construction projects and hoping to duplicate tGen’s success, Stanton announced plans earlier this years for a second bioscience campus, built on 600 acres surrounding Mayo Clinic in phoenix.

“We want to maximize the use of the land around Mayo to create the highest number of good jobs,” Stanton said. “This first decade of bioscience research has built a solid foundation. We have the building blocks in place. We now need to push forward into a new phase.

If we leverage this opportunity correctly, we can create sustainable long-term economic dividends for our kids, and for their kids.”

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AzTECH: HEAT

It taKeS

FUel tO WIn the RaCe having access to angel investors, venture capital and private equity as well as debt instruments is critical to arizona’s success

m

any of us can relate to thinking of arizona’s economy as an automobile race. to win, you need a smooth race course, a fast car, a winning driver and high-powered fuel.

Carrying that analogy into arizona’s technology sector, it’s clear that a lot of resources have been invested and progress has been made in building a world-class race course. We’ve made tremendous strides in creating a business climate and technology environment for facilitating both private and public sector support to address the needs of arizona’s technology businesses.

The arizona technology Council has worked collaboratively with many different technology champions to build this course. technology issues are supported by the Governor’s office, the state’s legislature, the arizona Commerce authority, the arizona Chamber of Commerce and Industry, and more. technology incubators and shared space facilities such as Gangplank in Chandler, avondale and tucson; hackspace and venture Catalyst at aSU’s SkySong in Scottsdale; bioInspire in peoria; Innovation Incubator in Chandler; azCI in tucson; and aZ Disruptors in Scottsdale are making sure that today’s innovators are being given the right support, tools and environment to create the next big thing.

Collectively, our wins have included the passage of a tax credit for qualified research and development that is the best in the nation, the creation of the first statewide arizona Scitech Festival and the birth of the arizona Innovation Institute, to name a few. arizona’s technology industry also has great race cars. These are the technologies and intellectual property that create wealth and jobs driven by both Fortune 500 companies and entrepreneurs.

Companies such as Intel, Microchip technologies, Freescale, On Semiconductor and avnet can all be found here. nearly all of the largest aerospace and defense prime contractors in the nation are located in arizona, including boeing, honeywell, lockheed Martin, northrop Grumman and General Dynamics.

The state’s entrepreneurial spirit is reflected in companies such as Webpt, Infusionsoft, axosoft, ilinc and Go Daddy that were founded in arizona along with the many innovators that are com22 AB | November-December 2012

ing to the table every day with new ideas rich in technology.

These companies large and small are driven by some of the greatest race car drivers the nation has produced. but when it comes to fuel, arizona’s economy has always been running close to empty. We lack the vital capital needed to win the race. having access to angel investors, venture capital and private equity as well as debt instruments is critical to arizona’s success.

STEVEn G. ZyLSTRA The situation has not been improvTech Columnist ing on the equity side of the fuel equation. to offer some relief, the arizona technology Council is proposing legislation that would create a system of contingent tax credits to incentivize both instate and out-of-state investors to capitalize arizona companies.

This program, called the arizona Fund of Funds, would allow the state to offer $100 million in tax incentives to minimize the risk for those seeking to invest in high-growth companies. The state government’s role would be to serve as a guarantor through these contingent tax credits in case the investments don’t yield the projected results. expect more information on this important piece of legislation as it advances.

On the debt side of the fuel equation, there are encouraging signs that the worst of the credit crunch may be over. early-stage companies need access to debt instruments, or loans. Capital is needed for equipment and expansion. a line of credit can help early-stage companies through ongoing cash-flow issues. but loan activity is still modest in arizona for small companies. It remains heavily weighted toward the strongest corporate and consumer borrowers.

Capital goes hand in hand with innovation, high-paying jobs and cutting-edge technology, products and services. before arizona’s economy can win the race, we will need to become more self-sufficient at providing the fuel necessary to be a winner.

Steven G. Zylstra is president and CEO of the Arizona Technology Council.

602.247.7600

LEgAL

by MaRK SveJDa

neeD $1 MIllIOn FOR YOUR bUSIneSS? ‘Crowdfunding’ helps entrepreneurs raise capital to build, expand

O

n april 5, 2012, president Obama signed into law the Jumpstart Our business Startups act, or JObS act. business owners and entrepreneurs need to know about the JObS act because it will allow startups and existing businesses to raise up to $1 million in investment capital each year using the Internet and other social media platforms.

Raising money on the internet has exploded in recent years.

This type of money raising, called “crowdfunding” or “crowdsourcing,” is used by both nonprofit and for profit organizations. Crowdfunding projects are advertised or posted on various websites like kickstarter.com. prospective investors can view the projects on the Internet and make funding pledges online. however, investors do not receive any stock in the company promoting the project nor do the investors receive any monetary return on their investment.

In essence, the investor’s investment constitutes a charitable contribution to a project that the investor believes will benefit society.

This type of crowdfunding has been termed “charitable crowdfunding.” With charitable crowdfunding, no shares of stock can 24 AB | November-December 2012

be sold to investors nor can investors receive a monetary return on their investment because such events violate both federal and state securities laws. Therefore, under the current law, charitable crowdfunding cannot be used to raise investment capital. beginning in January 2013, new and existing businesses can raise up to $1 million per year in investment capital utilizing crowdfunding. Companies will not be able to raise money on their own website. Instead, they will have to use a licensed securities broker or an intermediary (also called a funding portal) registered with the U.S. Securities and exchange Commission.

Companies using this new type of crowdfunding, called “equity crowd funding,” must prepare substantial documentation to meet the requirements of the JObS act. The act requires a company to disclose certain information to potential investors including:  background information on the officers, directors and 20 percent shareholders of the company;  The amount of money sought to be raised;  how the money will be used by the company;  a description of the ownership and capital structure of the company.

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OWENS & PERKINS, P.C. ATTORNEYS AT LAW 7322 E. Thomas Road Scottsdale, Arizona 85251 p: 480.994.8824

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www.oplaw.com We are located near the intersection of Scottsdale and Thomas Roads, just east of Scottsdale Road, on the north side of Thomas, and conveniently located just off the 101.

AB | November-December 2012 25

LEgAL

Kickstarter.com pages offer many opportunities for investors to contribute to a certain project.

each company must also prepare and submit a detailed business plan and provide detailed information on the company’s financial condition, if more than $100,000 in equity capital is sought.

Since the JObS act will not become effective until January 2013, new and established businesses have a little time to gear up and take advantage of the new law. Those interested in equity crowdfunding should become familiar with the JObS act and what needs to be done to comply with the act. Interested companies should:  prepare an extensive business plan;  perform market research to support the business plan;  prepare a list of contacts of those who may be interested in investing in the business;  prepare a video that promotes the company’s products or services;  Review crowdfunding websites like kickstarter.com to see how successful projects are presented on crowdfunding websites.

Mark Svejda is Scottsdale-based attorney. you can email him at mark@azrealestatelawyers.com.

26 AB | November-December 2012

prospective investors can view the projects on the Internet and make funding pledges online

www.andantelaw.com

All of us at Andante Law Group congratulate

Daniel E. Garrison and Fay M. Waldo for being selected as finalists for the 2012 Turnaround of the Year Awards sponsored by the Arizona Chapter of the Daniel E. Garrison Founder & Managing Partner

Fay M. Waldo Associate

Turnaround Management Association.

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4110 N. Scottsdale Rd. Suite 330 Scottsdale, AZ 85251 Phone: 480.421.9449 Fax: 480.522.1515

AB | November-December 2012 27

TURNAROUND MANAgEMENT ASSOCIATION

by MIChael GOSSIe

an eCOnOMIC U-tURn

arizona Chapter of the turnaround Management association presents its turnaround of the Year awards

i

t’s not a surprise that the economic downturn killed many businesses and crippled countless others.

What is more surprising these days are the stories of those companies that rose from the ashes or near failure and regained profitability.

The arizona Chapter of the turnaround Management association (tMa) will be recognizing those companies and the individuals who helped turn them around at the 2012 turnaround of the Year awards on november 15 at 5 p.m. at the Sheraton phoenix Downtown. The program will recognize companies, professional restructuring teams, and individuals who have made a significant contribution to a successful turnaround.

“We are excited to present the turnaround awards to arizona because we need to recognize all the people who have worked tirelessly and collaboratively to turnaround struggling companies in arizona and save thousands of jobs,” said Chapter president Christopher Kaup, a shareholder at tiffany & bosco, p.a. “This is a great way to honor those who have made it through tough economic times and the teams of professionals that made it all happen.”

Co-chairing the awards program will be seasoned professionals in the turnaround market and tMa members Scott Cohen, a partner at engelman berger, pC; and beth Jo Zeitzer, president of ROI properties. tMa is the only international nonprofit association dedicated to corporate renewal and turnaround management. established in 1988, tMa is an international organization with more than 9,000 members who are a professional community of turnaround and corporate renewal professionals who share a common interest in strengthening the economy through the restoration of corporate values.

28 AB | November-December 2012

Turnaround Management Association — Arizona Chapter P.O. Box 72720 4228 E. Taro Lane, Phoenix, AZ 85050 623-581-3597 arizona.turnaround.org

aRIZOna eQUIpMent Rental I, llC Principals: Jeff bleeker and lance evic Headquarters: tucson Nature of business: Construction equipment rental company serving arizona. tURnaROUnD teaM Primary attorneys: John Clemency and lindsi Weber, Gallagher & Kennedy, pa Primary financial advisor: Steven Odenkirk, peritus Commercial Finance, llC Primary accountant: Steven phillips, Steven a. phillips Cpa Problems leading up to turnaround: In the fall of 2008, aeR experienced a severe reduction in revenue due to the dramatic slowdown of construction and mining activity that corresponded with the economic downturn. From 2008 until 2010, revenue dropped 60 percent. aeR sought to effectuate a financial restructuring with its lenders in order to return to profitability.

Actions the turnaround team took: Unable to reach agreements with many of its secured lenders and lessors, aeR filed a Chapter 11 petition on Oct. 30, 2009 to assist aeR with restructuring certain liabilities and maximize its assets so that aeR’s business and cash flow could normalize and continue to be profitable.

Outcome of the turnaround: aeR’s business remained income producing throughout the bankruptcy case. about four months after the petition date, aeR confirmed a full payment plan or reorganization and exited bankruptcy. aeR reached an agreement with volvo Financial Services — its largest secured lender — to restructure its debt obligation.

Upon successfully emerging from bankruptcy with its lower debt burden, aeR was able to quickly compete and generate profits in the post-recession economy. a testament to the company’s turnaround came when volvo made a substantial offer to buy aeR from its owners and the sales was completed in early 2012.

Jobs saved by turnaround: approximately 35.

tIMOthY RaY WRIGht Principal: timothy Ray Wright Headquarters: tempe Nature of business: Residential rental properties that provide affordable housing for students attending arizona State University. tURnaROUnD teaM Primary attorneys: Daniel e. Garrison and Fay M. Waldo, andante law Group of Daniel e. Garrison, pllC Primary financial advisor: edward M. burr, Sierra Consulting Group, llC Problems leading up to turnaround: before the economic collapse, Wright took advantage of the booming real estate market and refinanced many of his properties and used the loan proceeds to diversify his investments, which led to the properties being significantly overleveraged when the market collapsed. not only did his properties decrease in value, his other investments were performing poorly and the recession also impacted his rental revenue. by the time he filed Chapter 11, his occupancy rate has dropped that average 95 percent down to 87 percent.

Actions the turnaround team took: Wright filed his Chapter 11 bankruptcy with a different attorney and in the 15 months that followed, he lost a significant number of properties to stay relief and foreclosure. Garrison and Waldo stepped in and were able to secure a modest period of time to take on the monumental task of compiling all the relevant information about Wright’s properties and indebtedness so they could develop and file a new Chapter 11 plan. They had to do this amid a flurry of pending and newly filed motions from lenders seeking relief.

Outcome of the turnaround: The applicants obtained confirmation of the debtor’s Chapter 11 plan in the spring of 2012, about one year after taking over the case. The plan preserved Wright’s ownership of approximately 100 properties, all with restructured indebtedness that can be serviced with Wright’s projected cash flow during the plan’s five-year term.

Jobs saved by turnaround: approximately 2-3.

AB | November-December 2012 29

HEALTH

hOW tO bUIlD a healthY WORKFORCe

by eMIlY CateS and CaRYn tIJSSelInG

There are risks and benefits to workplace wellness programs

A

re employers who eliminate junk food from the break room, offer classes on how to quit smoking, and dispense free flu shots doing enough to combat rising insurance premiums and increasing employee medical claims? Maybe not, according to a 2012 american heart association report, which reflects that if current obesity trends continue, obesity-related healthcare costs could reach more than $861 billion by 2030. and the average annual health insurance premiums for employer-sponsored coverage were a staggering $5,429 for single coverage and $15,073 for family coverage in 2011, studies show.

These rising healthcare costs have many employers exploring “wellness programs,” which are work-sponsored programs that assist and support employees in establishing healthier lifestyles. although they vary from company to company, wellness programs can include weight loss counseling, physical fitness contests, cholesterol and blood pressure screenings, advice on nutrition and healthful eating, subsidized fitness programs and discounts on gym memberships; some even provide incentive-based rewards to employees who participate. a number of companies credit these programs with decreasing rates of illness and injuries, reducing tardiness and absenteeism, increasing productivity, lowering healthcare costs and insurance claims, and even enhancing morale and camaraderie among employees. according to the CDC, 56 published studies report that workplace health initiatives have helped employers save up to 25 percent on overall healthcare costs, absenteeism, workers’ compensation, and disability claims.

It is no surprise, therefore, that the new patient protection and affordability Care act (ppaCa) encourages employers to provide wellness programs. The act even provides grants for employers who implement and promote wellness programs. but, in order to take advantage of these benefits, business owners need to make sure their wellness programs do not put them at legal risk.

The following tips may help your company implement a wellness program without violating federal employment laws: 1. make the program voluntary to avoid running afoul of the Americans with Disabilities Act (ADA).

The aDa prohibits discrimination against individuals with disabilities and precludes employers from asking questions about an employee’s medical condition or disability. employers should make 30 AB | November-December 2012

health-risk assessments voluntary and keep medical information confidential and separate from an employee’s personnel file. The equal employment Opportunity Commission says a program is considered voluntary so long as the employer does not require participation and does not penalize employees who choose not to participate.

2. Have your employees execute authorizations in order to comply with genetic information Nondiscrimination Act (giNA). another area of risk for employers offering wellness programs is GIna, which prohibits discrimination based on an employee’s genetics and precludes employers from requesting, requiring, or purchasing genetic information about their employees or their employees’ family members. health risk assessment questionnaires, however, often include questions about medical history and family medical history because these questions can be helpful in identifying at-risk individuals and in providing preventive treatment ideas. In order to prevent your health risk assessment from violating GIna, employees must volunteer the information and execute a written authorization reflecting his or her knowing and voluntary participation in the program.

3. Don’t make rewards contingent on satisfying certain health metrics. employers should also be mindful of the health Insurance portability and accountability act (hIppa), which prohibits group health plans from discriminating or using health factors to determine eligibility for insurance enrollment or to determine insurance premiums. hIppa also prohibits discrimination within a wellness program itself. an employer would be at risk of violating hIppa by offering, for example, a financial reward to employees who achieve a certain “body mass index” (bMI). This sort of requirement may not be achievable by all employees due to medical conditions or disabilities. On the other hand, a wellness program will comply with hIppa so long as rewards are not contingent on employees satisfying a specific goal or standard. and employers will not violate hIppa by offering financial incentives — like lower insurance deductibles or co-payments for employees who participate in the wellness or disease prevention programs — so long as the reward is not based on a specific health outcome and all employees have the opportunity to participate if they so choose.

Emily Cates is a litigation partner in Lewis and roca’s phoenix office. Caryn Tijsseling is a litigation partner in Lewis and roca’s reno office.

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ARIZONA BANKERS ASSOCIATION

By MICHAEL GOSSIE

Changing the tide 32 AB | November-December 2012

l

alabama football fan herndon hopes to lead arizona bankers association to winning season

ynne herndon, city president for bbva Compass, will serve as the 2012-2013 chairman of the board of directors for the arizona bankers association (azba). herndon succeeds James lundy, president and CeO of alliance bank of arizona, as chairman of the association.

“I am excited to step into the chairman role and work with the other board and association members,” herndon said. “These last few years have required steadfast legislative attention and advocacy at all levels. We have also had to respond to heightened regulatory attention and pressures. acting with a single voice has made a larger impact. I look forward to continuing to strengthen the unified voice of the bankers within the state.” herndon sat down with az business magazine for a far-reaching Q&a.

Ab: Why did you choose banking as a career? lynne Herndon: I chose banking because it allowed me to utilize both my interpersonal and analytical skills. I enjoy meeting with customers, and I enjoy analyzing a business situation and offering a solution. bankers help companies accomplish their goals of growth and expansion. It’s a perfect fit.

Ab: tell us one thing about you that would surprise most people? lH: My two favorite things are college football, namely alabama football, and rock ’n’ roll music. My husband and I go to at least 20 concerts a year, both in and out of state.

Ab: What’s the biggest change you’ve seen in the banking industry since you started? lH: Regulation. banks are held to a much higher standard in areas of underwriting, appraisals and compliance. Our required level of due diligence is therefore deeper.

Ab: What has been your biggest challenge in the banking industry? lH: Winning business in a highly competitive market. arizona has many, many banks. and many banks are chasing the same deals.

Ab: What has been your greatest accomplishment in banking? lH: lending when times are good is easy. lending when economic times are tough is hard. I’m proud of the fact that bbva Compass was able to lend money during 2009 and 2010, two very difficult years.

lH: There are more women in banking today because more women are seeking and aspiring to senior management positions in this industry. In particular, more women are pursuing positions in commercial banking.

Ab: What do you hope to accomplish as chairwoman of the arizona bankers association? lH: Our marquee issue is amending arizona’s anti-deficiency statute.

Ab: The banking industry has been beaten up a bit over the last few years thanks in part to Wall Street. What does the industry need to do to begin to mend its public perception? lH: bankers need to proactively speak to clients about what we are doing. We are in business to make loans, and we are looking for ways to loan money to individuals and businesses. Our workforce is also very active in our communities giving both time and treasure. We need to tell our story.

ARIZOnA BAnkERS ASSOCIATIOn BOARd Here are the members of the 2012-2013 board of directors for the Arizona Bankers Association: • Chair: Lynne B. Herndon, City President, BBVA Compass • Chair-Elect: Mike Thorell, President, Pinnacle Bank • Vice-Chairman: Benito Almanza, Arizona President, Bank of America • Immediate Past Chairman: James Lundy, CEO, Alliance Bank or Arizona • Toby Day, Arizona President, Arizona Business Bank • Gail Grace, President & CEO, Sunrise Bank of Arizona • Steve Johnson, President, BMO Harris Bank • Chuck Luhtala, President, Canyon Community Bank • Brian Riley, CEO, Mohave State Bank • Joe Stewart, Chairman & CEO Arizona, JPMorgan Chase N.A. • Gerrit van Huisstede, Regional President, Wells Fargo Bank N.A. • Candace Wiest, President & CEO, West Valley National Bank

Ab: The valley is home to many female banking leaders. Why have so many more women risen to the top of the industry here in arizona compared with other parts of the country?

AB | November-December 2012 33

ARIZONA BANKERS ASSOCIATION

by MIChael GOSSIe

neeDeD: StatUte WIth lIMItatIOnS are arizona’s anti-deficiency statutes feeding the bubble and worsening the economic collapse?

J

ack and Jill were living the american dream. They bought their dream house in 2006. Then, the economy spiraled downward. Jack lost his job. housing values dropped, and the amount remaining on Jack and Jill’s mortgage exceeded the value of the property — commonly known as having a house that is “under water.”

Jack and Jill didn’t want to pay the mortgage anymore, so they walked away, leaving the bank to clean up the mess from their financial misstep.

They were able to do that because of arizona’s anti-deficiency statute, which says that if a person or corporation owns a residential property on 2.5 acres or less that is used as a dwelling, the owner is not responsible for any deficiency occurring after a foreclosure, according to lynne b. herndon, city president for bbva Compass.

“The difference between the fair market value of the home — or the amount that the foreclosure sale brings — and the loan balance is known as a deficiency,” said paul hickman, president and CeO of the arizona bankers association. “In arizona, the bank suffers that loss, not the homeowner who walks away from the home.”

34 AB | November-December 2012

but it’s not only the homeowners — whom the statutes were intended to protect — who are catching the breaks.

“Unfortunately, the statute has been interpreted more broadly than originally intended such that properties used for investment are also covered,” herndon said. arizona is one of only 12 states that has some form of antideficiency protection. Of the 12, herndon said arizona has the most liberal statute.

“This statute absolutely contributed to the housing bubble as investors both in this state and outside of the state knew they could buy residential real estate in arizona and walk away if the investment became negative,” herndon said. “homeowners in this state have experienced larger declines in home value due to this statute allowing investors to speculate and walk away.”

The incidence of homeowners like Jack and Jill walking away from their home, avoiding hundreds of thousands of dollars of negative equity in their home, and legally sticking their lenders with a loss and became an all-too-common move during the Recession, experts said.

“In my view, the average borrower was not likely aware of the finer points of the anti-deficiency statutes when determining whether to purchase a home,” said Jennifer hadley Dioguardi, a

ARIZONA BANKERS ASSOCIATION partner in Snell & Wilmer’s phoenix office. “however, once the housing market crashed, the anti-deficiency statutes likely caused some homeowners who had the means to make their mortgage payments to decide to simply walk away from the residence given the fact that the lender had no recourse against them other than to foreclose upon the residence once the residence was under water. The borrower was not responsible for the deficiency. This likely contributed to some homeowners who could pay their mortgage simply walking away from the property and leaving the lender on the hook.” experts believe that homeowners and investors who seized the opportunity to take advantage of arizona’s anti-deficiency statutes to protect their own financial futures, might be stifling the state’s chance at an economic recovery and exacerbating the economic collapse.

“The broadness of the deficiency statute has had an overall negative impact not just on the banking industry, but more importantly, arizona’s long-term economy,” said Keith Maio, president and chief executive officer of national bank of arizona. “arizona’s statute is the most liberally interpreted of the 12 non-recourse/ deficiency states, the majority of which limit the protection to pri

36 AB | November-December 2012

“This likely contributed to some homeowners who could pay their mortgage simply walking away from the property.” mary residences or some other means that limit its contribution to speculation. In arizona, it allows investors to finance their speculation in housing, risk-free. If their investment does not work out, they don’t have to pay back the difference between what they sold the home for and what they owe. This statute was intended to protect homeowners, but what it has really done is hurt traditional homeowners by opening them up to large swings in housing values. I believe the impact, while negatively effecting banks earnings, is greater on the homeowners in the community at large.”

Despite the impact on the overall economy, it’s still been the banks who take the initial and biggest hit because they are often precluded from recovering the balance of the loan deficiency from the foreclosed borrower. While short sales are not protected by the

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ARIZONA BANKERS ASSOCIATION

arizona’s anti-deficiency statutes, lenders have often been willing to agree to short sales and reduce or otherwise waive deficiency claims, because lenders know they could not otherwise recover loan deficiencies, should the borrower elect to foreclose.

“The deficiency statute has led to greater losses for residential lenders in arizona because they cannot obtain a judgment against the borrower who may have the ability to repay the deficiency,” Kevin Sellers, executive vice president of First Fidelity bank. “lenders’ inability to pursue the borrower for the deficiency creates an environment that results in a higher incidence of strategic defaults.”

The biggest problem for lenders may be that it doesn’t appear that they will get any relief from lawmakers. Dioguardi said properties initially covered by the anti-deficiency statutes had to be two and one-half acres or less and utilized either for a single one-family or a single two-family dwelling. This language was interpreted by the arizona Supreme Court to require that the dwelling be built and at least occasionally occupied. “however, a recent decision by the arizona Court of appeals has extended the anti-deficiency protection to cover a residence that was not yet constructed and in which the borrowers had never resided,” Dioguardi said. “The Court found that even though the home was never utilized for a residence as required by the statute, because the borrowers intended to live in the single-family home upon its completion, they were subject to the protections of the anti-deficiency statute.”

The court decision, Dioguardi said, needs to be refined to protect both lenders and borrowers.

“Given that the arizona Supreme Court declined the petition for review of the decision, the legislature should amend the statute to make it even clearer that the borrower must physically inhabit the property to claim the protection of the anti-deficiency statute,” she said. “The current risk to lenders created by the decision as it 38 AB | November-December 2012

currently stands will likely drive up the cost of construction loans.” bank executives also believe that amending — not necessarily getting rid of — the state anti-deficiency statutes is what the banking industry needs to continue on the road to post-Recession economic recovery. “a very reasonable solution proposed by the arizona banking community is to simply require that a property protected from a deficiency judgment be the primary residence of you or a member of your family as already defined in arizona’s property tax statues,” Maio said. “This will have the effect of limiting this protection for homeowners, which is what was intended. Those in our arizona business community that oppose this type of change are motivated by their own special interests. Those whose real motivation is to profit on speculative investment or from the fees and commissions that come from buying and selling speculative homes for profit, you will oppose this type of change. but for the rest of us that want to protect arizonans from future bubbles and encourage a long-term and sustainable economy, we should support this simple change, as it is in our best long-term interest.”

Dioguardi

Maio

Sellers

Hickman

ARIZONA BANKERS ASSOCIATION

anatOMY OF a banK

paul hickman, president and CeO of the arizona bankers association, sat down with az business magazine to dissect the anatomy of a bank and what makes the industry click.

{ What is the model of a bank?

The fundamental business model of a bank is to give customers a safe, secure place to deposit their earnings and savings, and to lend money to borrowers for small businesses, homes, education, cars, etc. . . . banks pay interest on deposits and charge interest on loans.

Why do banks need to make a profit?

like most other business enterprises, if banks are not profitable they cannot sustain themselves and stay in business. additionally, their deposits are insured by the FDIC, which is funded by bank premiums. a bank that continuously loses money would become uninsurable and lose its charter.

What is a common misconception about banks?

One of the most common misconceptions is that banks don’t need to charge fees for certain services. a prime example is the fees card issuers charge merchants for debit card transactions. The fees support a safe, secure, ubiquitous medium of exchange that operates 24/7, on a global scale.

Who establishes and enforces the regulations that banks have to follow?

a bank’s primary regulator is determined by whether it is a commercial or savings institution and whether it has a national or state charter. The primary federal regulatory agencies are the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve. additionally, every state has a regulatory agency that oversees state chartered banks.

What regulatory structures inhibit banks’ flexibility in modifying loans?

banks are required to maintain certain riskweighted asset-to-capital ratios. Once a loan is modified, it must be reclassified at a higher risk weight, requiring more capital. Given the current challenges many firms are facing raising capital, this regulatory structure can act as a disincentive to modify loans.

AB | November-December 2012 39

EXECUTIVE gIFT gUIDE

by MIChael GOSSIe

It’S pArTy tIMe businesses get back into holiday spirit as economy starts to improve

A

s the economy continues its slow recovery, many businesses are starting to slowly get back into the spirit after the Recession cut into holiday party budgets for most companies.

“We have noticed that this year is on track to be about 10-12 percent stronger than last year,” said Jesse Thompson, director of sales and marketing for the hotel valley ho.

While holiday party planning is back in play, many companies have toned down the over-the-top excess of the past.

“

“We are seeing bookings for more intimate gatherings — groups of 50-100 people,” said Denise Seomin, director of public relations and marketing communications for The phoenician. “In many cases, individual departments within a company are planning a special holiday event, which has moved the focus to our restaurants. This season’s social functions are incorporating more lunches and dinners.”

The focus has also shifted to the food.

“Clients are turning food into the conversation piece of the evening,” said Christi Des Jarlais, the director of catering and conference services at Sanctuary on Camelback Mountain. “They enjoy the custom buffet stations created by our very own Chef beau MacMillan and have become increasingly interested in enhancements such as elaborate and colorful tiered dessert stations and hot beverage station additions such as decadent hot chocolate with small candy canes, rock candy sticks, whipped cream, chocolate dipped marshmallows, and caramel squares.”

While that sounds delicious, experts agreed that companies are looking to balance fiscal responsibility with the festive celebrations in 2012.

“While value and costs remain at the forefront, it appears companies want to get back to the holiday celebrations of the past,” said Mark Scheller, vice president of sales for Casino Del Sol Resort, Spa and Conference Center in tucson.

Elements at Sanctuary on Camelback Mountain

This season’s social functions are incorporating more lunches and dinners.

“

40 AB | November-December 2012

Casino Del Sol Resort, Spa and Conference Center

EXECUTIVE gIFT gUIDE

7 WaYS tO plan a paRtY

p

arty coordinators said most businesses wait until november to book holiday parties and stress that the sooner businesses book their party, the more likely they are to get their preferred date, theme and menu. If your business is among the majority that has waited, here are a few leads to get you started:

Sanctuary Camelback Mountain Resort & Spa

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Sanctuary on Camelback Mountain, Paradise Valley: Options include private indoor venues with floor to ceiling windows that showcase the panoramic views of the surrounding mountains, customized menus to work within budgets, and 15 percent off food and beverage if booked by nov. 16. sanctuaryoncamelback.com

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2

iPic Theaters at Scottsdale Quarter

iPic Theaters and Tanzy, Scottsdale: The venue has a lot of flexibility to do just about anything that its clients are looking to do, whether it is a red carpet event, full sitdown dinner, or a time period themed event, according to sales manager Jon Stone. ipictheaters.com 42 AB | November-December 2012

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Buca di Beppo: “We offer extensive bar and group packages as well as celebratory and special occasions,” said nichole lopez, marketing specialist for buca. “We recommend that any business contact the sales manager at their local buca for further information.” bucadibeppo.com

Casino Del Sol Resort, Spa and Conference Center, Tucson: What really sets an event here apart is the ability to enjoy the festivities with friends on the gaming floor after the scheduled program ends. Couple this with very attractive room rate offers designated especially for attendees and a traditional holiday party becomes an experience. casinodelsol.com

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The Phoenician, Scottsdale: The resort is extending several special amenities and services to businesses that book a party for 75 or more guests. These include complimentary vIp guestroom or onenight stay gift certificate and butler-served champagne or other selected cocktail. thephoenician.com

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Westin La Paloma Resort & Spa, Tucson: “While limited, we do have availability and offer a great incentive for the short-term opportunities,” said General Manager Jonathan litvack. “Specifically, this year’s holiday incentive is a complimentary professional DJ for any new event worth a banquet minimum of $5,000 plus service charge and tax.” westin.com/lapaloma

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Hotel Valley Ho

Hotel Valley Ho, Scottsdale: parties are treated to holiday décor with Christmas trees upon request, guestroom block discounts up to 40 percent off of the published room rates depending on date, and if your company can have its holiday party on an obscure day of the week, you’re eligible for some great discounts. hotelvalleyho.com

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GIFtS FOR eXeCUtIveS need to buy a gift for the business executive who has everything? here are a few arizona-based ideas: 1. mAKE A biD: Rev up some holiday cheer this year with a week-long pass to barrett-Jackson when The World’s Greatest Collector Car auction returns to Scottsdale Jan. 13 – 20. You can purchase week-long passes in advance for $80 (50 percent off the gate price if purchased prior to nov.

12). barrett-jackson.com

4. FOr THE mEN: Cufflinks are a great opportunity for men to express their tastes and can break the monotony of a man’s wardrobe,” Molina said. “today, I believe that men are judged by the quality of their timepiece. The more complications a watch posseses, the greater the culture and refinment of the man.”

2. HAvE A DriNK: The esio hot & Cold beverage System from Mesa-based esio beverage Company is available in Walmart U.S. stores retailing for $199. It is the only hot and cold system on the market. esiobev.com

5. giFT OF HEAlTH: The Satori Wellness Retreat is a four-day wellness journey that begins with a meeting with a certified personal trainer who will design a personalized fitness program. additional components include a choice of fitness activities such as yoga, pilates, dance fusion and hiking; a weight management plan; nutritious meals prepared just for them (with take-home recipes from executive Chef beau MacMillan); a lifestyle journal; and follow-up care from your personal trainer after they leave. sanctuaryoncamelback.com

3. FOr THE WOmEN: “The staples of a jewelry wardrobe for a professional woman are diamond stud earrings, cufflinks, a fine jewelry brooch, a fine timepiece and of course a diamond ring that is appropriate for daywear,” said al Molina, owner of Molina Fine Jewelers. “a pearl necklace has great versatility as does a diamond solitaire necklace.” molinafinejewelers.com 46 AB | November-December 2012

5

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Celebrate the holiday season at Compass Arizona Grill, the only revolving rooftop restaurant with panoramic views of the Phoenix area. Featuring stellar cuisine and unparalleled service, Compass is ideal for individual dinner reservations. And this season, the restaurant’s expert chefs will create holiday menus for Thanksgiving and Christmas, plus special menus for office gatherings and other large group events. To book your holiday celebration, visit phoenix.hyatt.com or call 602 252 1234.

Hyatt. You’re More Than Welcome.

Hyatt Regency Phoenix 122 North Second Street Phoenix, AZ 85004 HYATT name, design and related marks are trademarks of Hyatt Corporation. ©2012 Hyatt Corporation. All rights reserved.

AB | November-December 2012 47

2012

ReCOGnIZInG pROFeSSIOnalS FOR OUtStanDInG peRFORManCe In theIR ROleS aS CORpORate FInanCIal SteWaRDS

AB | November-December 2012 49

FINANCIAL EXECUTIVES INTERNATIONAL

FROM THE PRESIDENT OF THE ARIZONA CHAPTER OF THE FINANCIAL EXECUTIVES INTERNATIONAL

T

he Arizona Chapter of the Financial Executives International (FEI) appreciates and thanks you for your interest in the 6th annual CFO of the Year Awards. FEI Arizona is presenting the CFO of the Year Awards to senior level financial professionals for outstanding performance in their roles as corporate financial leaders and stewards. The nominations and awards recognize exemplary financial management in three business sectors: public, private and nonprofit.

An independent set of carefully elected and well-qualified judges from Arizona’s business community and academia have selected winners based on their contributions to their respective organizations and their overall involvement in the Arizona business community.

FEI’s mission is to advance the success of senior level financial executives, their organizations and the profession. The FEI Arizona chapter is comprised of Phoenix Metroarea executives who represent and advocate for the interests of finance professionals of companies in all industries and all sizes within the public, private and nonprofit sectors throughout the state.

FEI Arizona serves the community by offering its members opportunities to network with their peers, stay apprised of current financial policy, standards and regulatory guidelines, continue their professional development and form valuable relationships with community leaders. We also maintain an academic awards program to encourage professional advancement of promising, finance-focused students, and offer career assistance and development to members as well as contribute to the research and advocacy activities of our national FEI organization which impact the strategic planning of the profession’s policy, standards and regulatory structure.

FEI continuously recruits new members who meet our membership criteria and who are interested in the value gained from becoming an FEI chapter member. Membership is open to CFOs, controllers, treasurers, tax executives, academic professors, and other senior-level finance professionals whose positions and company size meet FEI’s membership criteria. Additional information may be found on the national and chapter websites, www.financialexecutives.org and www.feiaz.org.

Finally, FEI Arizona would like to thank our sponsors who have worked so closely and diligently with us to make this event a success: Arizona Business Magazine, Bank of Arizona, CresaPartners, Deloitte, Marsh USA and Robert Half Management Resources.

CFO of the Year Sponsor Representatives

Andy Ernst, Regional Manager, Robert Half International

Jonathan Keyser, Principal, Cresa

Jonas McCormick, Managing Partner, Deloitte, LLP

Christine Nowaczyk, SVP Corporate Banking Director, Bank of Arizona

Cheryl Vogt, Head of Office, Managing Director, Marsh USA Inc.

Media Sponsor

Cheryl Green, Publisher, AZ BIG Media

Very truly yours,

FEI ARIZONA CHAPTER OFFICERS President and Chairman of the Board: Bret Lawson, CPA First Vice President: Vacant Second Vice President: Richard Skufza, executive vice president, CFO, E.B. Lane Secretary and Treasurer: Gil Christopher, president and CEO, The Logistics Group Past President: Michelle Hoffman, president, CFO &COO, ActiveForever.com

Bret Lawson President FEI Arizona

50 AB | November-December 2012

Gil Christopher Chairman CFO of the Year Committee

FEI ARIZONA CHAPTER BOARD MEMBERS Stephanie Brun, Financial Analysis Manager, U-Haul International Marcus Feder, Salt River Project Chris Niezgodzki, director, financial budgeting and forecast, Grand Canyon Education Inc. Gayle Pincus, social enterprise consultant, Palo Verde Business Advisors LLC Dan Regan, principal, Executive Financial Management Helen Swiatek, Partner, B2B CFO Karen Whitney, vice president, financial planning and analysis, Apollo Group Inc.

FINANCIAL EXECUTIVES INTERNATIONAL

JaMeS bROenen

Chief financial officer and senior vice president HR, IT and supply chain Fender

The company: Fretted instruments, percussion, electronics and music accessories.

What he did: When broenen arrived at Fender, the company was in a potential default scenario on its debt. he not only got the company quickly into compliance with its debt agreements, but his ability to lead a refinancing of the company’s debt and the subsequent debt structure at the beginning of the economic crisis of late 2008 and early 2009 allowed Fender to have the resources available to continue to invest in its operations and longer-term strategic direction. The basis of these debt agreements has allowed Fender to continue to dominate its marketplace and invest in its 2012 FINALISTS innovation and strategic objectives over the past three years.

paMela l. Chan

Executive vice president and chief financial officer Western Alliance Bank (dba Alliance Bank of Arizona and First Independent Bank)

The company: Serves small and mid-sized businesses, entrepreneurs, professionals, municipalities, nonprofit organizations, high net-worth individuals and other consumers.

What she’s done: to inspire organization to greater success, Chan communicates financial results and growth initiatives with management and across the organization in a simple and understandable format. This includes making key information available to all employees by placing important messages and financial charts in the break room or conference room. Chan facilitates a “bright Idea$” program, which is designed to encourage employees to submit innovative suggestions for cost savings, eliminating inefficiencies and streamlining procedures. In a 12-month period, employees have identified 15 “idea$” for a $200,000 annual savings.

AB | November-December 2012 51

FINANCIAL EXECUTIVES INTERNATIONAL

JaMeS COateS Chief financial officer The Logistics Group

The company: asset-based transportation, trucking and warehousing services with focus on time-sensitive manufacturing companies.

What he’s done: Coates had been The logistics Group’s primary

2012 FINALISTS

accountant and Cpa while he was working for the accounting firm of Kilpatrick, luster & Co., but he had a dream of becoming a CFO. When The logistics Group had grown to the point of needing internal financial expertise, the company recruited Coates to become its CFO. The company’s business has doubled year after year and the transition — including additional assets and costs — was well-managed and Coates led that process. he also directly manages the accounting process, along with billing, pricing and risk management.

laRRY eISel Chief financial officer Total Transit

The company: Multi-faceted transportation, including private (taxi), public (bus, Dial-a-Ride) and transportation management.

What he did: Upon eisel’s arrival at total transit, it took 26 working days to close the books for its 11 companies. Through eisel’s leadership and vision, he assembled a group — starting with a new controller — that shared his vision as it relates to month-end closing. With persistent execution, continuous process improvement and effective leadership, eisel has been able to reduce the total transit’s closing period to six working days, 16 days quicker than an average company, according to a 2011 study done by Financial executives Research Foundation.

52 AB | November-December 2012

An investment in your career.

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Your membership includes the following high-quality benefits and services.

Public Policy Education and Advocacy Representation before U.S. Congress, SEC, FASB, PCAOB, IASB and more Influencing policy, accounting and financial reporting issues from K Street to Wall Street.

National Conferences including our Annual Leadership Summit and Current Financial Reporting Issues (CFRI) Peer-to-peer, in-person networking with 15,000+ best-in-the business financial executive members Featured speakers are high profile industry leaders broaching topics relevant to your career Annual Cost without membership: $3,100.00

Financial Executives Research Foundation (FERF) Publications Downloadable, leading-edge content developed through objective, independent research Practical insights into key financial topics impacting financial executives now Annual Cost without membership: $1,700.00

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Other member-only intangibles include: • FEI Career Center and career management services

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FINANCIAL EXECUTIVES INTERNATIONAL

thOMaS b. FISCheR Chief financial officer OnTrac

The company: a leader in regional overnight package delivery service within California, arizona, nevada, Oregon, Washington, Utah and Colorado.

What he’s done: Fischer has been a key driver of the company-wide strategy to automate the package flow of the 29 facilities in the overnight network. With a price tag in the millions per facility, Fischer’s level-headed leadership of the negotiations has saved the company hundreds of thousands of dollars of acquisition costs as well as cost savings from the new equipment and technology installed. During Fischer’s tenure, revenues have increased more than 200 percent; working capital has increased 300 percent; stock holder’s equity has increased more than 250 percent; and longterm debt, during this same time 2012 FINALISTS period, plummeted from extremes of 75 percent of the total assets to less than 7 percent.

COlleen FRItZ Chief financial officer Unitedweb, Inc./Nextiva, Inc.

The company: Invests in and operates companies that serve small businesses and emerging markets across multiple industries that rely on the Internet and technology to run their business.

What she’s done: Fritz’s expertise in process design and development was critical as the company went through rapid growth, transitioning to a mature phase in the business life cycle in just a few years. Through her guidance, the company was able to take risks to grow its business and the company’s year-over-year growth has virtually doubled each year it has been in business. Fritz’s attention to the financial and operational details is the guiding force for many of the company’s initiatives and metrics that contribute to its successes. Fritz has helped the company grow to 190 employees and serve more than 60,000 companies.

54 AB | November-December 2012

SOMETIMES THE MOST VALUABLE GO-TO PARTNER IS THE ONE WHO COMES TO YOU. You need a banker you can go to for reliable business solutions. But how about one who also brings you new ideas? Right to your office, if that works best.

With Bank of Arizona, youâ&#x20AC;&#x2122;ll work with responsive professionals with the experience to understand your challenges, as well as the local and global markets. And because Bank of Arizona is part of BOK Financial Corporation, a $26 billion financial services holding company, our service comes with the strength and stability you can count on.

Give us a call, or better yet, let us come see you.

Congratulations to all of the 2012 CFO of the Year Honorees.

Lending | Cash Management | International Banking Retirement Plan Services | Corporate Trust | Wealth Management 602.808.5332 | www.bankofarizona.com

Š 2012 Bank of Arizona, a division of BOKF, NA. Member FDIC. Equal Opportunity Lender.

FINANCIAL EXECUTIVES INTERNATIONAL

tODD lapORte Chief financial officer Scottsdale Healthcare

The company: Three acute care hospitals, clinical research, several ambulatory sites, and graduate medical education programs.

What he’s done: laporte’s role is to provide leadership that ensures

2012 FINALISTS

a long-term and short-term financial position for the healthcare organization. his responsibilities also include information systems and he plays a key role in developing clinical integration initiatives to position the company for healthcare reform. laporte has displayed highly innovative skills in Scottsdale healthcare’s debt restructuring ($350 million) and in helping to craft a successful clinical integration joint venture with hospital physicians. both initiatives play a key role in the future success of Scottsdale healthcare.

paUl MaleK Chief financial officer Phoenix Children’s Academy, Inc.

The company: Owns and operates a network of 115 private schools, including preschools, elementary schools and middle schools in 16 states and serving about 16,000 students.

What he’s done: Malek believes the use of technology can greatly streamline operations and reduce the administrative burden faced by operational personnel. he worked with operations personnel to replace the company’s school level operating system with a company-wide Web-based system. The project was completed at no cost to pCa and has given the company the ability to manage functions for the centers and provide immediate real-time access to facility information and results. he also restructured the depository account process and implemented the use of electronic check scanners at all locations to reduce administrative burden and improve timeliness and accuracy of deposits. The moved saved the company $60,000 in annual bank fees.

56 AB | November-December 2012

A typical real estate broker talks square footage.

A Cresa tenant advisor talks business.

Before we talk space, we talk business. Whatever you need space for, we want to know about the business goal behind it. We only represent tenants. We understand the business needs of tenants, and we take an integrated approach to addressing them. You can count on us to be shrewd in negotiation, rigorous in execution, and aligned—at every stage—with your business.

The Tenant’s Advantage cresa.com

Cresa Phoenix 602.648.7373 cresa.com/phoenix 2398 E. Camelback Road, Suite 900, Phoenix, AZ 85016

FINANCIAL EXECUTIVES INTERNATIONAL

CRAIG L. MCKnIGHT Executive vice president and chief financial officer Phoenix Children’s Hospital

The company: Arizona’s only licensed, free-standing children’s hospital, providing inpatient, outpatient, emergency, trauma and urgent care.

What he’s done: McKnight was at the forefront of a major acquisition that changed the face of pediatric care in the Southwest. In June 2011, Phoenix Children’s and Dignity Health Arizona completed a strategic alliance that transferred pediatric services at St. Joseph’s Hospital and Medical Center, Chandler Regional Medical Center and Mercy Gilbert Medical Center to Phoenix Children’s. Under the agreement, Phoenix Children’s also acquired the pediatric neuroscience programs, creating Barrow neurological Institute at Phoenix Children’s 2012 FINALISTS Hospital. This agreement required complex financial analysis and modeling.

PAUL MEHLHORn Chief financial officer Make-A-Wish America

The company: Grants the wishes of children with life-threatening medical conditions.

What he’s done: When Mehlhorn was hired, the finance department was experiencing operational challenges and had lost the confidence of the president and CEO, as well as the audit and finance committee of the national board and several key board leaders.

Mehlhorn quickly turned the situation around, earning the respect and trust of virtually everyone with whom he has dealt. Last year, Mehlhorn established a centralized financial services unit from scratch. It currently provides accounting services for six chapters across the country and that number is expected to increase in the coming years.

58 AB | November-December 2012

Deloitte congratulates the Arizona FEI CFO of the Year nominees James Broenen

Bonnie Mendoza

Pamela Chan

Robert Osborne

James Coates

Tanya Perry

Larry Eisel

Ron Raber

Thomas Fischer

Charles Ribbe

Colleen Fritz

Ray Sadowski

Todd LaPorte

Lyle Scritsmier

Paul Malek

Susan Sweeney

Craig McKnight

Tracy Taylor

Paul Mehlhorn

Sandra Torre

2901 N. Central Avenue Suite 1200 Phoenix, AZ 85012 +1 602 234 5100 www.deloitte.com

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2012 Deloitte Development LLC. All rights reserved.

Member of Deloitte Touche Tohmatsu Limited

FINANCIAL EXECUTIVES INTERNATIONAL

BOnnIE MEnDOZA Chief financial officer and executive vice president Arizona Zoological Society (dba Phoenix Zoo)

The company: Operates the Phoenix Zoo, which exhibits and cares for more than 1,100 animals, provides educational programs, and actively participates in animal conservation efforts.

What she’s done: Mendoza played a significant role in creating an

2012

incentive pay plan based on both individual and company performance.

Payouts were successful in 2005, 2006, 2007, 2008 and 2012. The incentive plan has raised the bar for individual performance and created an environment of increased personal responsibility. Mendoza was also involved in the implementation of an endowment building initiative in 2006 and co-authored the policy where both an operating reserve fund and board designated reserve fund were established. The operating reserve fund has grown from $150,000 to $3.1 million and the FINALISTS board designated reserve fund has increased from $50,000 to $2.5 million.

ROBERT D. OSBORnE Chief financial officer Russell Sigler, Inc.

The company: Primarily engaged in the wholesale distribution of heating, ventilation, and air conditioning parts, equipment and supplies that are predominantly manufactured by Carrier and Bryant.

What he’s done: Due to Osborne’s strength of planning and judgement, Russell Sigler, Inc. has a reliable, highly efficient corporate administration and finance team. With Osborne’s guidance and expertise, internal reports have been developed and are constantly fine-tuned. Osborne’s efforts have assisted in the company’s ability to respond to the changing dynamics of rapid growth and a volatile market. Osborne has been a key player and integral part in establishing relationships and negotiating agreements with the company’s banking partners, allowing for growth and sustainability of current and expanding business opportunities.

60 AB | November-December 2012

FINANCIAL EXECUTIVES INTERNATIONAL

TAnYA PERRY

Senior vice president and chief financial officer Goodwill Industries of Central Arizona

The company: Operates 50 retail stores and eight stand-alone donation centers throughout metro Phoenix, Prescott and Yuma; offers job training, education and employment services to youth and adults with vocational barriers who are seeking self-sufficiency.

What she’s done: When Perry joined Goodwill in 2007, the organization had priority goals of ensuring fiscal responsibility and growing revenue and the number of people served. Since 2007, Goodwill has increased revenue from $59.6 million to an estimated $100 million in 2012; grown from 38 retail locations to 50 and from eight career centers to 13; decreased long-term debt by more than 57 percent; and will serve an estimated 40,000 by the end of 2012, nearly four times 2012 FINALISTS the number served in 2007.

ROn RABER

Chief financial officer Esio Holding Company/Esio Beverage Company

The company: Focused on the development, manufacturing and marketing of multi-serve beverage dispensing systems and beverage products for the home and office.

What he’s done: Since Esio initiated business in 2005, Raber and the team have worked to refine strategy; design, develop and perfect the technology; secure mass retail distribution; and acquire national beverage brand licenses. In October, Esio launched its countertop unit in 2,800 Walmart stores. In connection with its retail launch, Esio was facing a significant capital need — thought to be $10 million — for inventory, advertising, and working capital. Raber worked on a creative financing strategy, which included payment terms from key suppliers, an asset-based line of credit, and a smaller equity raise. Esio was able to reduce its capital needs to less than $3 million and focus on execution of its retail launch.

62 AB | November-December 2012

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FINANCIAL EXECUTIVES INTERNATIONAL

CHUCK RIBBE Chief financial officer Cancer Treatment Centers of America

The company: A regional destination hospital specializing in complex and advanced-stage cancer care.

What he’s done: Under Ribbe’s guidance, CTCA Western has surpassed budget expectations, including doubling net operating income before shared services and corporate allocation in 2012 compared with the previous year. Ribbe’s leadership in maximizing efficiencies is evident in the hospital’s Lean Six Sigma program, which eliminated more than 9,800 hours of patient wait time in 2011. An additional 12,000 hours of non-value added employee time were also eliminated. Ribbe’s vision of utilizing technology to improve patient care has helped create the nation’s first and only all-digital cancer hospital.

2012 FINALISTS

RAY SADOWSKI Chief financial officer Avnet

The company: One of the largest distributors of electronic components, including connectors and semiconductors; technology solutions, computer products and embedded technology.

What he’s done: Sadowski has been instrumental in the acquisitions of more than 65 companies, all of which have contributed to Avnet’s attaining a global leadership role in the electronic components and computer products industries. Sadowski and former Avnet CEO Roy vallee introduced a value-based management initiative in 2001 that focused on a minimum 12.5 percent return on capital employed. The initiative put Avnet into a position of being the most profitable company in its industry and highest market cap.

And in an effort to use the company’s cash most effectively, Sadowski initiated a stock buy-back program, which was recently increased another $250 million by Avnet’s board of directors.

64 AB | November-December 2012

Congratulations!

Thank you, Susan Sweeney, for continuing to make CyraCom International a successful company!

Susan Sweeney 2012 Nominee CFO of the Year Award

2nd largest provider of Over-the-Phone Interpretation in the world

Inc. 5000 fastest-growing private company four years in a row

Tucson Contact Center 2801 E. Elvira Rd. Tucson, AZ 85756

Phoenix Contact Center 14415 S. 50th St., Ste. 100 Phoenix, AZ 85044

Created over 500 jobs over the past four years

Las Cruces Contact Center 2303 Divot Ave., Ste. 1 Las Cruces, NM 88001

Tucson Headquarters 5780 N. Swan Rd. Tucson, AZ 85718

www.cyracominternational.com

FINANCIAL EXECUTIVES INTERNATIONAL

LYLE R. SCRITSMIER Chief financial officer MedApps (an Alere, Inc. Connected Health Company)

The company: Provides technology solutions for the collection, transmission and remote management of patient health data.

What he’s done: During a challenging economic environment, Scritsmier assisted the start-up company in raising $9 million of investment through three rounds of financing. He used his experience in the healthcare industry to secure sales and increase margins with MedApps initial customers when it was most critical. This ability is best illustrated with a 2010 deal, where Scritsmier closed a $3 million contract.

As part of the negotiation, he convinced the client to prepay an amount equal to four months of operating capital at a time MedApps was operating at a loss and the deal gave the company financial breathing 2012 FINALISTS room when it was greatly needed.

SUSAn SWEEnEY Chief financial officer CyraCom International, Inc.

The company: Provides innovative interpretation and translation services to clients in healthcare, business and government.

What she’s done: Through Sweeney’s direction, the company more than doubled revenues to $43.7 million, while turning a negative EBITDA (earnings before interest, taxes, depreciation and amortization) to a positive $4.8 million, and increased the earnings per share by 180 percent. The company has dramatically increased from 198 employees at the end of 2007 to more than 692 at the end of 2011. During Sweeney’s tenure, CyraCom has also been listed on the Inc. 5000 list of fastest growing private companies in 2007, 2009, 2010, 2011 and 2012.

66 AB | November-December 2012

FINANCIAL EXECUTIVES INTERNATIONAL

TRACY TAYLOR Chief financial officer Mountainside Fitness Centers

The company: Full-service fitness center with 10 locations throughout Arizona. Mountainside is the largest locally owned fitness center chain in Arizona, serving more than 44,000 active members.

What she’s done: With Taylor spearheading the effort, Mountainside

2012

has upgraded both its accounting system (Intact) and its fitness software (CSI). These two platforms not only speak directly to each other, but Intact is also recognized as one of the premier financial softwares in any industry. Most recently, Mountainside led the movement of the company’s credit card process out from underneath the banking industry and into more flexible, third-party processing. This move has helped Mountainside receive its funds sooner. Currently, Mountainside bills more than $22 million annually, so this was no small feat to FINALISTS accomplish.

SAnDRA TORRE Chief financial officer The Lavidge Company

The company: A Phoenix-based, full-service advertising, public relations, communications, consulting and interactive marketing agency.

What she’s done: Torre established hard performance measurements such as goals, ratios, KPI’s and benchmarks to be implemented company-wide, a challenge in an environment where creativity is the product for sale. She has streamlined the company’s monthly financial reporting to encompass accountability on all levels and developed a performance-based compensation plan for the management team. These financial strategies have improved company performance and changed the attitudes and perceptions of the agency’s creatively minded personnel to embrace finance as something that can still allow for “fun.”

68 AB | November-December 2012

AB | November-December 2012 69

Chuck Ribbe ~ Chief Financial Officer Cancer Treatment Centers of America®

The patients, caregivers and stakeholders at Cancer Treatment Centers of America congratulate Chuck on his accomplishments.

©2012 Rising Tide

COMING NEXT ISSUE • The state’s 50 biggest employers reflect the economic recovery • Industry Leaders of Arizona award winners are revealed • Association for Corporate Counsel Awards • Can you fire someone if you don’t like their tattoos or piercings?

• GPEC helps Valley take center stage in global economy

2012 finalist for CFO of the Year Award

70 AB | November-December 2012

For additional information, call 602.277.6045 or visit,

AZBusinessMagazine.com

The Logistics Group Congratulates Jim Coates On your CFO of the Year Nomination!

Thank you for all your hard work at The Logistics Group!

Jim Coates, 2012 CFO of the Year Finalist

Wishes. Just nice?

In the battle against life-threatening medical conditions, why is wish granting important?

1 million square feet 1000 pediatric specialists

Because 89 percent of doctors, nurses and other health professionals say a Make-A-Wish® experience can influence the physical health of seriously ill kids*.

Because wish kids say the wish is a turning point in their struggle.

And parents say wishes return hope and strength to their families.

Wishes.

So necessary.

Elijah, 3

Congratulations to Phoenix Children’s CFO Craig McKnight, and to all the CFO of the Year finalists.

Because wishes make life better for everyone. Find out how at wish.org.

neuroblastoma I wish to go out on the range

*Make-A-Wish® America. “Wish Impact Study Results – Second Phase: Jan – Aug 2011: Survey of Medical/Healthcare Professionals.” November 2, 2011.

Congratulations to Paul Mehlhorn, Chief Financial Officer for Make-A-Wish America, for being named a finalist for 2012 CFO of the Year.

Paul is our CFO of the year every year.

www.phoenixchildrens.com

AB | November-December 2012 71

BRANDING AZ

By MICHAEL GOSSIE

LEAvInG An IMPRESSIOn Effective branding boosts business, but experts say keeping it simple is imperative, even in the era of social media

G

ot milk? The swoosh stripe. The Aflac duck.

Kleenex. Successful branding effectively uses a name, term, design, symbol, or even a musical jingle to distinguish a product or service from those of other sellers.

“Brands are sincere, distinct and consistent,” says David Eichler, creative director and founder of David and Sam PR. “Brands are, by definition, built over time. A brand is a promise kept to its consumer, over and over.”

While it’s common sense to think that effective branding will lead to an increase in business, what are the most critical things to remember when a company tries to build an effective branding campaign?

“First, it’s important to understand that while there’s a time and place for a specific branding campaign, effective branding should be an ongoing effort for every organization,” says Christine Olivas, director of client services for Off Madison Ave + SpinSix. “How and when to communicate the company’s values shouldn’t be a one-time outreach.”

However, Olivas says there are times when a branding campaign makes sense: • When you are looking to change perceptions in the marketplace.

• When a new product or service is launching.

• Or, when you are introducing yourself to a particular market or segment.

“In these instances, it is important to consider how to make an impact while ensuring that the subsequent marketing and operational efforts can continue to support and sustain the awareness you’re creating,” she stresses. “The last thing you want is to have a campaign that drives, say, tons of buzz in the social space but to not have an ongoing social media strategy that will continue the conversation when the blitz is over. You should also have an obsessive eye on visual

consistency. If you are launching a brand campaign, make sure the look and feel aligns with your core identity so as not to create confusion in the marketplace.”

While Olivas touched on the impact of social media on 21st-century branding, there is no denying that it’s changed the way companies market themselves.

“Social media is like a two-way megaphone for brands,” Eichler says. “Consumers are now empowered to share their experiences — positive and negative — and brands have the ability not only to convey their brand’s attributes, but reinforce them by how they interact with their customers. Especially when someone is disappointed with their experience with the brand.”

That ability for consumers to immediately engage is why successful brands need to have depth to their brand story and relevant reasons for people to want to engage, according to Bob Case, the Lavidge Company’s chief creative officer and creative director.

“Setting up a Pinterest account and a Facebook page aren’t effective unless you have a reason for having them,” Case says, “a strategy for how you want to shape the message and a plan for the unplanned — negative responses, etc.”

Case says his best advice when creating a brand is to keep the message simple.

“Advertising is expensive, which can lead to companies trying to sell everything about their products and services in every message,” he says. “What’s the one thing you want people to know? It should be devastatingly difficult to build your campaigns because of what you leave out.”

Az Business magazine recognizes the impact that effective marketing and branding has on a company’s success. So on the pages that follow, we highlight the winners of our first Branding AZ awards, as voted on by our readers and our editorial panel.

BRANDINGAZ

72 AB | November-December 2012

BRANDINGAZ

SPORTS AnD RECREATIOn Winner: Mountainside Fitness

Brains behind the branding: Stephanie Pereyra, marketing director, Mountainside Fitness Focus of branding: What’s your goal? At Mountainside Fitness, they offer their customers a wide range of amenities that make conquering any level, any reason, any goal, possible.

Highlight of branding campaign: Brand is highlighted through a full-brand campaign including digital, social media, billboards, commercials, direct mail and radio. Its brand is well-known through numerous community outreach initiatives and sponsorships.

Honorable mention Arizona Diamondbacks, Phoenix Suns

HEALTHCARE

TECHnOLOGY

RETAIL

Winner: Phoenix Children’s Hospital Winner: LifeLock Brains behind the branding: Debra Stevens, WDCW Advertising Focus of branding: As Arizona’s only hospital that is focused 100 percent on the needs of children, PCH is able to provide a higher level of medical care.

Highlight of branding campaign: Documentary-style spots allow Phoenix Children’s physicians to tell why being 100 percent for children matters. Multimedia campaign directs viewers to landing pages with deeper information.

Brains behind the branding: Marvin Davis, LifeLock chief marketing officer Focus of branding: Identity thieves are everywhere. Therefore, LifeLock has to be relentless. The LifeLock army represents strength and vigilance in the pursuit of protecting our members’ personal information.

Highlight of branding campaign: The introduction of LifeLock Ultimate, the most comprehensive identity theft protection service and the only one to protect against bank account takeover fraud.

Winner: Discount Tire

Honorable mention Banner Health Dignity Health

Honorable mention Insight Go Daddy

Honorable mention Massage Envy Oregano’s

EXPERTS’ BEST BRANDING

Here are some of the Valley’s best marketing experts’ picks for the best branding efforts: David Eichler, creative director and founder of David and Sam PR: “The one that comes to mind, given the time of year is the NFL. In the 45 years of Super Bowls, the league has masterfully overtaken all other American sports in sales, merchandising, ad revenue and fan loyalty. They are savvy in how they have positioned themselves as vested in communities and causes.”

Isabelle Jazo, vice president of brand strategy at E.B. Lane: “Apple’s brand archetype is ‘Revolutionary.’ The brand associates itself with thought leaders, artists and people in history that changed the rules of the game ... Apple’s marketing certainly gets people’s attention, but the customer experience is what makes the branding phenomenal.”

Bob Case, the Lavidge Company’s chief creative officer and creative director: “I’d go with Nike. Not for any single campaign, but for their overall brand. They are a vibrant, living brand that re-invents itself without losing its

Brains behind the branding: Discount Tire handles all branding efforts internally.

Focus of branding: Discount Tire sponsors nASCAR nationwide Series and Monster Energy AMA Supercross.

Highlight of branding campaign: The company’s Tv ads feature a 10-second clip first filmed and used in 1975, in which a “little old lady” tosses a tire through a storefront window. This ad has made the Guinness Book of World Records for the longest, continuously-running television ad.

core truth. It’s relevant, serious, fun, humorous, inspirational — in truth, a well-rounded robust story.”

Christine Olivas, director of client services for Off Madison Ave + SpinSix: “The best example of a brand that has become an experience is Zappos, an online retailer. From day one, the company has embraced service as a differentiator, but service isn’t just defined as a helpful customer service representative.

Instead, the company has extended its friendly and fun approach to doing business across all internal and external communications.”

AB | November-December 2012 73

BRANDING AZ BRANDINGAZ

FInAnCIAL InSTITUTIOnS Winner: national Bank of Arizona

Brains behind the branding: E.B. Lane Focus of branding: As true business partners, national Bank of Arizona understands and supports the entrepreneurial spirit of successful Arizona businesses.

Highlight of branding campaign: Demonstrating the success and mindset of two of the state’s most recognizable entrepreneurs and nB|AZ clients, Sam Fox, owner of Fox Restaurant Concepts, and Shawn Wendell, owner of Pink Jeep Tours.

Honorable mention Desert Schools Federal Credit Union Wells Fargo

BUSInESS SERvICES

EDUCATIOn

Winner: SRP

Winner: University of Phoenix

Brains behind the branding: Gena P. Trimble, chief communications executive Focus of branding: SRP’s campaigns are designed to educate and inform its customers about the benefits of SRP programs and services.

Highlight of branding campaign: SRP’s marketing communications promote energy efficiency and water conservation that help its customers save valuable resources and money.

Brains behind the branding: Arra Yerganian, University of Phoenix chief marketing officer Focus of branding: University of Phoenix’s “Let’s Get to Work” campaign focuses on the link between a quality education and a fulfilling and challenging career.

Highlight of branding campaign: University of Phoenix gives students resources to graduate in their course of study as well as helps prepare and link them to fulfilling careers.

Honorable mention APS Cox Communications

Honorable mention Arizona State University Grand Canyon University

nOnPROFIT

GREEn

Winner: Arizona Lottery

Winner: APS

Brains behind the branding: E.B. Lane and Kim McGlothlen, director of marketing and advertising for the Arizona Lottery Focus of branding: The “How the Money Helps” campaign focuses on the Arizona Lottery’s funding of a variety of public projects and programs that enrich the lives of Arizona residents.

Highlight of branding campaign: A video series depicting beneficiary stories.

Honorable mention Goodwill of Central Arizona Arizona Animal Welfare League 74 AB | November-December 2012

Brains behind the branding: John Hatfield, vice president of corporate communications Focus of branding: APS is committed to providing safe, reliable and affordable power to its customers.

Highlight of branding campaign: Educating its customers on ways to save energy and money through energy efficiency programs and services.

Honorable mention Clean Air Cab Harmon Solar

REAL ESTATE Winner: Pulte Homes

Brains behind the branding: Sharon Ruby, director of marketing Focus of branding: At Pulte Homes, all of its homes are Life Tested because it takes ideas from its own homeowners and uses them when designing new homes.

Highlight of branding campaign: Pulte homes are constantly being updated with innovations that come from the people who know how a home should function; the people living in them. That means its homes aren’t just built for life, they are built for how you live.

Honorable mention Fulton Homes Lennar Homes

BRANDING AZ BRANDINGAZ

OUTDOOR Winner: My Sister’s Closet

Brains behind the branding: David Eichler and Tyler Rathjen, David and Sam PR Focus of branding: Conveying that My Sister’s Closet and My Sister’s Attic are a more sophisticated interpretation of what people typically think of in a consignment store.

Highlight of branding campaign: Using billboards, wrapped buses and cars to communicate to a wider audience that the brands are high-end but also whimsical in a risqué way.

Honorable Mention Oregano’s

TOURISM

SOCIAL MEDIA

Tv

Winner: Talking Stick Resort

Winner: Greater Phoenix Convention & visitors Bureau

Winner: Go Daddy

Brains behind the branding: Peter Arceo, senior director of sales and marketing for Talking Stick Resort and Casino Arizona Focus of branding: Talking Stick Resort is the finest place in town to dine, spa, stay, play and be entertained in style while enjoying unparalleled views of Scottsdale.

Highlight of branding campaign: Talking Stick Resort is the ultimate destination for business and hospitality, offering the valley’s most stylish amenities.

Honorable mention Arizona Science Center Hotel valley Ho

RADIO Winner: Sleep America

Brains behind the branding: Destination Marketing Focus of branding: Sleep America wants to positively impact the quality of life through better sleep for its customers. This promise has been consistent since its inception in 1997, and is the key component of its customer’s experience.

Highlight of branding campaign: The iconic radio jingle, “Sleep American, where America goes to sleep,” shows who they are, what they do, and why you should care.

Honorable Mention Sanderson Ford 76 AB | November-December 2012

Brains behind the branding: Melissa Gogel, director of marketing Focus of branding: One of Phoenix’s greatest destination attributes is sunshine.

This fuels much of the CvB’s messaging and is ingrained in its photography, which often depicts outdoor activities. This includes dining, recreation and relaxing.

Highlight of branding campaign: The most important component of the CvB’s ongoing marketing efforts is its website, visitphoenix.com. It allows the organization to fully represent the destination and the outdoor lifestyle that Phoenix offers.

Honorable Mention Universal Technical Institute

Brains behind branding: Barb Rechterman, chief marketing officer and senior executive vice president, GoDaddy.com Focus of branding: The “Inside / Out” campaign focuses on contrasts between Go Daddy’s edgy “outside” image and the serious “inside” where technology and service are primary values.

Highlight of branding campaign: The campaign pokes fun at Go Daddy’s risqué reputation, re-focusing on the company’s core brand of service and technology for the mainstream.

Honorable Mention Discount Tire

PRInT Winner: Fairmont Scottsdale Princess

Brains behind the branding: Pam Gilbert, director of sales and marketing at the Fairmont Scottsdale Princess Focus of branding: “Summer at the Princess,” turning moments into memories with activities for the whole family, from spa to golf, restaurants, Bobcat Billy’s Clubhouse, poolside games, concerts and fireworks.

Highlight of branding campaign: Celebrating summer, ads focused on special Legacy Event weekends such as 4th of July Freedom Fest and Labor Day Dream-cation, with fireworks, Dive-In movies and the new Techno Waterslide, every weekend, all summer long.

Honorable Mention Sanctuary on Camelback Mountain

RESERVE YOUR SEATS FOR THE

INDUSTRY LEADERS of Arizona

AWARDS February 7, 2013 6 p.m. - 8 p.m.

Ritz Carlton, Phoenix Industry Leaders of Arizona recognizes businesses and business leaders who through hard work and innovation think beyond traditional boundaries and help lead the future of Arizona business. This year, we will honor the following industries: Healthcare • Retail • Hospitality Alternative Energy • Distribution

Visit AzBusinessMagazine.com or call 602.277.6045 to reserve your seat.

AB | November-December 2012 77

Spirit of

EntErprisE AwArds

FInALISTS BOAST JOB CREATIOn, CHARITY WORK, InnOvATIvE FEATURES

D

espite the slow economic recovery, Arizona already has many businesses showing impressive growth and even job creation. The W. P. Carey School of Business at Arizona State University is recognizing 10 of the stateâ&#x20AC;&#x2122;s biggest achievers as finalists for this yearâ&#x20AC;&#x2122;s prestigious Spirit of Enterprise Awards.

The awards, now in their 16th year, honor firms for ethics, energy and excellence in entrepreneurship. Past winners include well-known names like Cold Stone Creamery, Ollie the Trolley and Sundt Construction.

Finalists are noted for creating a positive culture both internally and in the community as a whole.

The Spirit of Enterprise Awards are just one focus of the Spirit of Enterprise Center, which helps hundreds of businesses each year. The center offers companies the chance to recruit and meet with top student talent, while also allowing students to get hands-on business experience.

One key program, Student Teams for Entrepreneurship Projects (STEP), matches teams of W. P. Carey School of Business students with valley companies to help tackle real-world challenges and opportunities. Companies can also use the center to access other ASU business resources. The center is self-funded and utilizes community sponsorships and volunteers to sustain its activities.

of Enterprise Awards

Celebrating Ethics, Energy and Excellence in Entrepreneurship

TM

2012

Thursday, November 1, The JW Marriott Desert Ridge Resort & Spa

78 AB | November-December 2012

Spirit

of

EntErprisE AwArds

180 Degrees Automotive, Inc.

W

hen Sarah “Bogi” Lateiner decided to open her own auto repair shop, she “had no business plan, no money.” What Bogi did have was a passion and a talent for fixing cars.

With a focus on women and minorities — customers who have traditionally been neglected or exploited by the auto repair industry and feel particularly intimidated by it — 180 Degrees Automotive grew rapidly, doubling each year after the first. “I was booked out two weeks in advance, but I knew that growth was not sustainable, that I was succeeding despite myself,” Bogi explained.

So she decided to learn how to be a business owner. Bogi discovered that focusing on the numbers and the systems behind her business allows her more time to do the things she’s passionate about.

That includes moving 180 Degrees Automotive into a new building, which she owns, teaching car care classes, and co-hosting an all-women car repair Tv show.

Nature of business: Automotive repair Address: 545 W. Mariposa St., Phoenix, AZ 85013 Web: 180auto.com Founded: 2006 Employees: 6

CyberMark International

W

hen Kimberly Judd-Pennie started selling websites in 1994, she wasn’t thinking it would become a long-term career, let alone a successful business.

“I was a single mother, and I just needed a way to make money.” But she was in the right place at the right time, just enough ahead of the Web revolution to have a competitive edge.

“I taught myself HTML programming,” Kimberly recounted. “I sold websites all day and coded all night, with my baby boy sleeping by my side. Failure was not an option; I had no other way to support myself.” With that powerful incentive, Kimberly grew CyberMark into a successful company.

Today, CyberMark provides search engine optimization (SEO), payper-click (PPC), and social media marketing services, mostly to small- and medium-sized businesses.

Kimberly said the biggest challenge is keeping up with the incredibly rapid pace of change on the internet. “It’s kind of like you have to rethink your whole business model every six months,” she said.

Nature of business: Fullservice internet marketing Address: 2222 W. Parkside Ln., Phoenix, AZ 85027 Web: CyberMarkIntl.com Founded: 1994 Employees: 26

80 AB | November-December 2012

Daphne’s Headcovers

W

hen Jane Spicer was 10 years old, she sewed a bagful of stuffed toys to sell to friends and neighbors.

At the Park & Swap she made $200, and has been hooked on entrepreneurship ever since.

“When I was 16, a customer suggested that I make animal golf club covers.” Jane taught herself how to get past the attendants and assistants at golf resorts to get to the buyers. It worked: sales grew 400 percent in one quarter, her animal headcovers becoming the best selling item in golf after Tiger Woods started using one.

When the recession hit in early 2008, Jane said that she was paralyzed with fear. “I stopped taking a salary. I sold everything at home that wasn’t nailed down.

But I never missed payroll and I didn’t lay off a single key employee. By 2011 we were profitable again.”

Nature of business: Manufacturer of animal/ novelty golf club covers Address: 337 W. Melinda Ln., Phoenix, AZ 85027 Web: DaphnesHeadcovers. com Founded: 1978 Employees: 19

GlobalMed

Hard Dollar

I

H

Nature of business: Develops and manufactures healthcare IT systems Address: 15020 N. 74th St., Scottsdale, Arizona 85260 Web: GlobalMed.com Founded: 2002 Employees: 107

Nature of business: Project cost management (PCM) software Address: 9977 N. 90th St., Scottsdale, AZ 85258 Web: HardDollar.com Founded: 1989 Employees: 56

n 2002, when Joel Barthelemy started the business that would become GlobalMed, he made imaging equipment for quality assurance in the semiconductor industry.

“We did about $1 million a year in sales,” Joel recounted. “Just enough to keep the doors open.”

The company’s move into telemedicine came at the suggestion of a Tulane University pathologist. Joel took his advice and in April, 2005, GlobalMed delivered its first system: cameras and software for the first remote pathology consult, at Tulane.

Today, GlobalMed continues to develop the software and manufacture the equipment that makes telemedicine possible. “To date, we have installed well over 2,000 telemedicine systems in 55 countries,” Joel explained. “We provide patients with access to healthcare wherever there’s an Internet connection.” He added, “We’re changing the healthcare system in the U.S. and globally.”

ard Dollar was founded in 1989 to dramatically improve how estimating and project cost management (PCM) for capital projects is managed. Four years ago, when the bottom fell out of the construction market, the company reinvented itself. “The real estate crash forced us to rethink what solutions we offered, to whom, and how we delivered them,” explained Ron Babich, Hard Dollar’s vP of Sales and Marketing.

Where it once focused on helping construction companies build as fast as possible, Hard Dollar now focuses on helping them work as efficiently as possible. Hard Dollar provides project cost management software to help companies in the construction, mining, engineering, oil and gas, and energy markets manage productivity and cost.

“There are $10 billion, 40-year projects being managed in Excel,” Ron said. “Our biggest competitor is not another technology company — it’s spreadsheets.”

2012 TM

Celebrating Ethics, Energy and Excellence in Entrepreneurship

Congratulations to Our 2012 Spirit of Enterprise Finalists!

180 Degrees Automotive, Inc. • CyberMark International • Daphne’s Headcovers GlobalMed • Hard Dollar • LawLogix Group, LLC • NJOY, Inc. Optimal Performance Training • Real Property Management East Valley • Total Transit

With Appreciation to Those Who Invest in Our Work.

The Spirit of Enterprise Center W. P. Carey School of Business Arizona State University P: 480.965.0474 F: 480.727.6185 E: spiritofenterprise@asu.edu

The Spirit of Enterprise Center Opening Doors for Your Great Ideas For more information about our programs please visit us at www.SpiritOfEnterprise.org

To see the 2012 Spirit of Enterprise winners, please visit our website after Novermber 1, 2012.

Spirit

of

EntErprisE AwArds

LawLogix Group, LLC

I

n 2000, LawLogix cofounder Brian Taylor was sitting at a Burger King near the consulate in nogales, Mexico, waiting for a new U.S. visa to be approved. His own immigration experience was time consuming and frustrating, and he knew there had to be a better way for immigrants to share their case information with attorneys.

So LawLogix — a software company focused on creating the easiest-to-use and most secure immigration case management and I-9 compliance software available — was born.

Brian and his co-founder Dan Siciliano, a law professor at Stanford, set out to develop a service that would automate what is otherwise a time-, labor-, and paper-intensive hiring and visa application process.

Today, LawLogix software and services are used by more than 155,000 organizations and 4.2 million foreign nationals worldwide.

Nature of business: I-9, E-Verify, and immigration case management software Address: 3111 N. Central Ave., Phoenix, AZ 85012 Web: LawLogix.com Founded: 2000 Employees: 52

NJOY, Inc.

n

JOY’s electronic cigarettes are designed to mimic the addictive elements of smoking — the nicotine and the handto-mouth-inhale habit — without the cost that smoking causes, including the high cost, odor, and social stigma. nJOY’s electronic cigarettes look and feel like a real cigarette, emitting what looks like smoke but is actually a smokefree vapor. The “smoker” inhales nicotine vapor but no tar or tobacco.

CEO Craig Weiss said that more than anything, nJOY is a technology company. “Cigarettes haven’t changed in 70 years,” he said. “We’ve developed a revolutionary technology that I hope will make tobacco cigarettes obsolete.” nJOY leads the electronic cigarette market with a 40 percent share.

Craig knows that lead will be challenged soon, and he’s prepared. “We have a David v. Goliath mentality. Our little company took on the FDA in 2009, and we won. We view Big Tobacco the same way.”

Nature of business: Electronic cigarettes Address: 15211 N. Kierland Blvd., Suite 200, Scottsdale, AZ 85254 Web: njoy.com Founded: 2006 Employees: 30

82 AB | November-December 2012

Optimal Performance Training

Real Property Management East Valley

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W

Nature of business: Performance in health, fitness and life Address: 725 W. Commerce Ave., Gilbert, AZ 85234 Web: OptimalAZ.com Founded: 2008 Employees: 4

Nature of business: Fullservice residential property management Address: 950 E. Brown, Mesa, AZ 85203 Web: RPMEastValley.com Founded: 2007 Employees: 32

n 2008, Joey Bellus quit his job as a personal trainer to follow his dream of owning a health and fitness training center. He started out training five clients in a 150-squarefoot exam room within a chiropractor’s office.

A year later, he made the big decision to sign a three-year lease on a much larger space. It was, he said, “the scariest risk I had ever taken.”

After two weeks of setting up the new location, Joey had $90 left to his name. “That was it ... The only way I overcame that challenge was self-belief.”

That outlook is one defining feature of Optimal Performance Training, where trainers work with more than 100 clients. “We not only challenge our clients to better themselves physically, but mentally as well. We encourage them to live life ‘out of the box’ and push their personal boundaries. Conquering fears, setting bigger goals, doing things in daily life that will help them live.”

hen Clint Rowley and his wife Kim started Real Property Management East valley in 2007, they wanted to change the perception that property managers are a necessary evil and few good ones exist. Just 30 days after launching the business out of a spare bedroom in their home, Clint and Kim were managing 100 properties. Today, the company manages more than 1,400 units, and has consistently posted revenue growth of 30 percent a year. not that Real Property Management East valley hasn’t been through its share of ups and downs. “In 2009 and 2010,” Clint explained, “we lost about 600 homes to foreclosure – more than most companies ever manage ... We had to grow stronger and smarter.”

The positive environment at Real Property Management East valley is clear: “Our employees don’t just work for us, we work for them and we all work as a team.”

Total Transit

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hen Total Transit CEO Craig Hughes bought a small airport cab company in 1984, he had only ridden in a cab twice, never in Phoenix. needless to say, he had to learn on his feet, and learn quickly.

He did, and today Total Transit is a cab company unlike any other. For starters, the company manages both public and private transportation services, including Discount Cab, express route and paratransit service for valley Metro, and service for many of the largest Medicaid and Medicare providers in the region.

It’s a model Total Transit hopes to see spread.

“We are truly committed to integrating and managing public and private transportation services in a new way. Our goal is to create the most efficient, cost-effective, and environmentally responsible transportation network possible.”

Total Transit has grown 25-35 percent annually over the last few years and set to grow more than 40 percent this year.

Nature of business: Transportation services Address: 4600 W. Camelback Rd., Glendale, AZ 85301 Web: TotalTransit.com Founded: 1984 Employees: 300

ARIZONA CORPORATE ANGELS GIvInG IS GOOD BUSInESS 2-1-1 Arizona helps match organizations with volunteer opportunities

G

By ALISOn BAILIn BATZ

ordon Gecko had it all wrong. increased brand awareness, enhanced reputation and employee Greed isn’t good. Giving is. retention and engagement,” said Dunning. “The simple act of And thanks to the Arizona Centennial Challenge, volunteering together as a business also improves communicaArizonans have taken this to heart, and are committion between employees and their supervisors as well as across ting to serve 100 volunteer hours by February 2013. entire departments.”

Anecdotally, we know that people would rather work for, invest The Arizona Commission on Service and volunteerism has in and buy from businesses who are engaged in the community. partnered with 2-1-1 Arizona to promoting volunteerism in “Arizonans have a long-standing history of volunteerism and Arizona and providing local communities with new tools to be community service,” said Catherine Rea Dunning, executive strengthened through service. director of 2-1-1 Arizona. “We estimate the volunteers in our For the past decade, the Commission has honored Arizona state have made a financial impact of upwards of $14 million residents and businesses that give back, through its Governor’s each year, giving of their time and talent to a wide variety of volunteer Service Awards. The awards honor outstanding innonprofit, civic and community service organizations.” dividuals, organizations and businesses who exemplify 2-1-1 Arizona serves as Arizona’s key source of the motto “Give Today, Touch Tomorrow.” information that brings people and services In 2012, Prudential was honored with together to meet the vital needs in the state. the service award in the category of large GETTING STARTED In addition to the integrated 2-1-1 service business for their support of Jobs for If your business is already engaged in it provides, it’s new online volunteer Arizona’s Graduates (JAG), which helps community programs and service projects management system, 211arizona.volunyoung people stay in school and acquire – keep it up! Be sure to log your volunteer teermatch.org, allows organizations to the academic, personal, leadership and hours at 211arizona.volunteermatch.org. publish and recruit for their volunteer vocational skills they need to be sucIndividuals and organizations reporting opportunities, plus track volunteer cessful. Prudential has been involved their efforts can receive a certificate of hours. Individuals can take the Arizona in everything from board leadership achievement signed by the governor.

Centennial volunteer Challenge, as well to event planning to program developNot sure how to get started? Simply as search the site to find opportunities ment. Prudential also became increaspoint and click 211arizona.volunteerin their communities. Individuals can also ingly involved directly with JAG students, match.org for more information. keep track of their volunteer efforts. engaging in classrooms, presenting at “There is a direct correlation between busiconferences and providing direct training to nesses that volunteer within the community and students on key job readiness topics.

AB | November-December 2012 83

ARIZONA CORPORATE ANGELS

United Cerebral Palsy of Central Arizona

Mission statement: UCP of Central Arizona provides comprehensive services to individuals with disabilities and their families by providing physical and developmental support, as well as educational growth which is the foundation for independent living.

To contribute: Donations can be made at your neighborhood Circle K stores in the coin collection cannisters.

To volunteer: Volunteers, interns, peer mentors, administrative work and help with special events are always needed.

Achievements: Opened Cafe Without Limits, a snack bar and retail store that provides job skills training for adults with disabilities.

United Cerebral Palsy of Central Arizona 1802 W. Parkside Lane Phoenix, AZ 85027 (602) 943-5472 ucpofcentralaz.org

84 AB | November-December 2012

of Central Arizona

UCP of Central Arizona assists individuals with disabilities and their families. Those served have disabilities including cerebral palsy, autism, Down syndrome, developmental delays and learning disabilities.

• • • • • •

Our Services: Early Intervention Early Learning Center Day Treatment & Training Home & Community Based Services Therapy Services Information and Referral

1-888-943-5472 www.UCPofCentralAZ.org 1802 West Parkside Lane Phoenix, Arizona 85027

ARIZONA CORPORATE ANGELS

Magellan Cares

Mission statement: The Magellan Cares corporate citizenship program enables employees of Magellan Health Services to take social action, support their community and develop as leaders while helping to solve social problems across central Arizona. Together we are “One Magellan,” a company with heart made up of people who care about doing the right thing to help our clients, our colleagues and our community.

“Thank you for organizing the household and personal care items drive... [I] truly could not believe the many items and comprehensive nature of the items that were collected.”

Did you know: Four of Magellan’s businesses are located here in Arizona, and employees from all four come together as One Magellan to volunteer.

How to help: Friends and family of Magellan’s employees also volunteer with us.

We encourage other businesses to join with us in supporting nonprofits in need.

– Eddie Sissons, Executive Director, Arizona Foundation for Behavioral Health

Magellan Health Services of Arizona 4801 E. Washington St., #100, Phoenix, AZ 85034 (602) 572-2300 MagellanofAZ.com

86 AB | November-December 2012

Since Magellan Cares’ launch in 2011, Magellan employees, family members and friends have given freely of their pocketbooks and talents, not to mention more than 960 hours in volunteer time.

Magellan Employees Give Back Here are some highlights from our corporate citizenship program since its inception: National Alliance on Mental Illness (NAMI) More 360 employees and their families in 2011 and 2012 participated in NAMI Walks and raised thousands of dollars in support of those challenged with mental illness. In a separate event, employees and their families biked to raise additional funds for NAMI.

UMOM New Day Center In honor of 2012 Children’s Mental Health Awareness Week (May 6 to 12), Magellan Cares volunteers participated in UMOM New Day Center’s Read to Me program, a weekly literacy program for children of families staying at UMOM’s New Day Center, which provides housing for homeless families.

Ronald McDonald House Volunteers on five evenings made and served dinner for families with sick children.

Valle del Sol Employees supported behavioral health provider partner Valle del Sol in its annual fundraising event, Profiles of Success, by setting up for the event, stuffing information bags, setting tables and organizing event materials.

Behavioral Health Service Recipients Employees donated almost 9,500 bottles of water for those in need during the hot summer months.

Arizona Behavioral Health Corporation In 2011 and 2012, employees donated more than 1,000 new household and personal care items to build home startup kits for individuals transitioning from homelessness to housing.

Autism Speaks 5-K Walk Magellan employees and their family members and friends walked and raised funds for autism research and care.

MY Fest Youth Festivals Volunteers staffed booths for the festival, which was led by Magellan Youth Leaders Inspiring Future Empowerment (MY LIFE) and in both years garnered more than 6,000 attendees and greater awareness of how those challenged with mental illness can and do achieve recovery.

Habitat for Humanity In honor of National Volunteer Week 2012 (April 15 to 21), 30 Magellan Cares volunteers used their talents and skills to help a single mom and her son build their first home through Habitat for Humanity.

Anti-Bullying Summit Employees supported Phoenix First Lady Nicole Stanton’s Anti-Bullying Summit by stuffing information bags for the event, which attracted more than 300 school administrators, teachers, counselors, nurses and other adults in positions to affect anti-bullying.

United Blood Services In 2011, United Blood Services recognized Magellan employees with a bronze donor award. In our first blood drive of 2012, employees saved nearly 84 lives in the community through blood donations.

2011 and 2012 Computer Giveaway Program In 2011, volunteers helped give away 280 Magellan computers to behavioral health recipients and their family members, and 20 computers to peer/family-run and service provider agencies—connecting these individuals to online resources available with technology. This year’s program will give away another 300 computers.

ARIZONA CORPORATE ANGELS

Hospice of the Valley Mission statement: Hospice of the Valley is guided by our mission — bringing comfort and dignity as life nears its end — and our vision to set the standard of excellence for endof-life care. Our care team members work together to meet the physical, emotional and spiritual needs of patients and families.

Did you know: We are one of the nation’s oldest and largest notfor-profit hospices, serving 4,000 patients daily in central Arizona.

How to help: Listen to a story.

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Hospice of the Valley’s 2,600 volunteers play critical roles throughout the agency everyday.

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Mission statement: Gabriel’s Angels delivers healing pet therapy to at-risk children, nurturing their emotional development and enhancing the quality of their lives forever.

These Pet Therapy visits provide unconditional love and acceptance to a child that desperately needs it, and help to teach critical life skills for growth into non-abusing adults.

Did you know: Gabriel’s Angels reaches more than 13,000 at-risk Arizona children each year through 150 volunteer Pet Therapy Teams. To provide Pet Therapy to one child for a year costs just $25.

How to help: Volunteer as a Therapy Team with your dog or Helping Hand to a Team. Become a board or committee member. Tell others about Gabriel’s Angels mission. Sponsor a team or child.

Gabriel’s Angels 1550 E. Maryland Ave., #1, Phoenix, AZ 85014 (602) 266-0875 GabrielsAngels.org

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Native American Connections

Mission Statement: Native American Connections improves the lives of individuals and families through Native American culturally appropriate behavioral health, affordable housing and community development services. For 40 years (1972-2012), NAC has provided a continuum of services to all populations with the purpose of helping people move forward to selfsufficiency and wellness.

Did you know: Devine Legacy is the first multi-family affordable housing community to earn LEED Platinum Certification for sustainable development along the lightrail.

How to help: Volunteer, donate, serve: From preparing meals for homeless youth to organizing food drives and community improvement projects, we work to create a meaningful volunteer experience for individuals, families or businesses to improves the lives of the people we serve. NAC accepts donations online at nativeconnections.org or at the address below:

Native American Connections 4520 N. Central Ave., #600, Phoenix, AZ 85012 (602) 254-3247 nativeconnections.org

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Serving more than 5000 families every year!

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Arizona School Choice Trust

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Mission statement: The mission of Arizona School Choice Trust is to provide hope and opportunity to low-income children as well as low-income children who are also disabled and/or displaced awarding tuition scholarships to attend private elementary and secstatement To contribute ondary schools (K-12).

(623) 414-3429 asct.org

How you can help: You can take a dollarfor-dollar tax credit every year for contributing to Arizona School Choice Trust — helping children in our state costs you nothing. The tax credit is for up to $1,003 per individual, $2,006 per couple. Companies can Achievements redirect To volunteer their corporate income tax or premium tax CPAs and business leaders Arizona School liability as well. Decide where your tax dollars are needed to reach out to Choice Trust has should go — and change a child’s life forever.

To provide hope and opIndividuals and corporaportunity to low-income tions with a tax liability Did you know: You can help thousands of children and low-income the opportunity to the community with inArizona children athave no cost to you. children with disabilities, receive dollar-for-dollar tax formation about the orby providing tuition scholcredits while funding scholganization Arizona School Choice Trustand tax credit arships to attend private arships for economically opportunities.

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DIVERSITY LEADERSHIP ALLIANCE

By MICHAEL GOSSIE

STUDEnTS COUnSELED Diversity Leadership Alliance cultivates the next generation of leaders through its Youth Council

C

hristine French knows the heartbreak of limitations.

“I have four grandsons,” said French, president and CEO of Global Diversity Consulting and a board member for the Phoenix-based Diversity Leadership Alliance. “Three of them have autism, so I know what’s it’s like to see all your hopes and dreams for children almost vanish.”

In 2007, French directed the heartache she felt over her grandsons’ disabilities and made something positive out of it and to show young people that they shouldn’t see any limitations. She spearheaded an effort from the Diversity Leadership Alliance to form its own Youth Council, with the goal of cultivating and developing future leaders from diverse backgrounds.

“I directed all my effort and energy into creating a program that would offer opportunities to other children that my grandsons might not get,” French said. “The students we come into contact were kids who may not have thought that college was in their future. But we have helped show them that their opportunities are endless. There are no limitations.”

The DLA, which is celebrating its 11th year as an organization whose mission is to guide leaders in the transformation of culture to build an inclusive community, started out with 24 kids as part of its Youth Council. Today, more than 150 students participate in the Youth Council’s monthly workshops.

“The workshops are designed to teach students the skills they will need to be successful,” French said. “Some past workshops have focused on developing problem-solving skills, effective time management, and how to create and build healthy and effective re96 AB | November-December 2012

lationships. These are all skills that corporate America is demanding from its workers, so the workshops are preparing the students for adulthood.”

Students who participate in DLA’s Youth Council are also eligible for scholarships, which French said are possible thanks to sponsors that include Boeing, SRP, University of Phoenix, Maricopa Community Colleges, APS, Cox Communications, Fennemore Craig, Wells Fargo and Sundt.

But just as important helping the students — who are selected Christine French from valley high schools that are diversity conscious — live up to DLA WORKSHOP their potential, French believes The Diversity Leadership Alliance the Youth Council will ultimately offers free monthly workshops serve a bigger purpose. that focus on diversity aware“We need to reach this next ness and education and are both generation because they will information and interactive. be our future leaders,” French Where: Black Canyon Confersaid. “We need to develop future ence Center (Sodexo), 9440 N. leaders from diverse backgrounds 25th Ave., Phoenix, AZ 85302 who understand the value of When: Wednesday, Dec. 19, 8 diversity, understand the value of a.m.-noon. Registration begins respecting everyone, so they at 7:30 a.m. can transform the environment More information: and cultivate a world that values diversityleadershipalliance.net everyone equally.”

ARIZONA FORWARD

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ARIZONA FORWARD 2012

By DIAnE BROSSART

GREEnER PASTURES AHEAD

A united front can create a healthier environment and more vibrant economy for Arizona

C

hange is one of the only consistencies in life. It’s an often overlooked fact that genetically each person in this world is only half a percent different from another. Based on that, it’s only logical if we were to focus on our common needs, goals and power to affect change working together, we could produce amazing results.

We’re all having to do more with less and raising the bar in terms of creative collaboration during these trying economic times. The byproduct is some extraordinary, synergistic partnerships that enable us to accomplish so much more than talented people working alone. networks of gifted people can and are changing the world.

We live in one of the most interdependent eras in history. Issues like global economy and climate change cannot be dealt with from a single geo-political vantage point. Change is only possible through creative networks of collaboration. It’s this kind of network that defines valley Forward. And it’s so powerful and effective that we’ve taken the mission of balancing economic growth and environmental quality statewide through Arizona Forward.

The diversity of involvement in our community makes it one of the best places in America to live. We are different politically, geographically and demographically. But we are the same — only half of a percent different from one another — and we share this place we call home. We are vested in it and we’re working together to ensure that it’s sustainable for generations to come.

The livability and vitality of communities across the state will be impacted by upcoming pivotal decisions related to land use planning and open space; a balanced multi-modal transportation system; improving and maintaining healthy air quality; leadership in solar and renewable energy technology; managing precious water resources; and protecting parks and other natural areas for Arizona’s tourism economy.

We hope you enjoy reading about some of the programs and people in valley Forward and Arizona Forward. These environmental stewards are committed to our valley and state. Their non-partisan public/private sector partnerships are working to help to create a healthier environment and more vibrant economy for Arizona.

Please join us in a mission to foster a holistic, statewide sustainability agenda to balance economic growth and environmental quality in the Grand Canyon State — let’s work together to move Arizona Forward!

Diane Brossart is president and CEO of Valley Forward and acting director of Arizona Forward.

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ExPAnDInG ITS HORIZOn valley Forward will transition to Arizona Forward and shift to a statewide focus

By MICHAEL GOSSIE

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ARIZONA FORWARD 2012

T

iming is everything, even when it comes to Mother nature.

“In 2010, we got an $85,000 grant to look at some federal issues on sustainability,” says Diane Brossart, president and CEO of valley Forward, which brings business and civic leaders together to improve the environment and livability of valley communities. “We were asked to target Arizona’s Congressional delegation and get them up to speed in regards to understanding a sustainability agenda for Arizona and what that meant.”

What grew from that seed was an initiative that had actually been germinating for more than a decade, Brossart says: taking the successful Maricopa County-centric valley Forward and giving it a statewide focus. In August, valley Forward’s board voted unanimously to move forward with a business plan that will transition valley Forward into Arizona Forward in January.

Brossart says the state is facing some serious issues related to the environment and the livability and vitality of Arizona’s cities and towns will be impacted by upcoming decisions related to: * Land use planning and open space, * A balanced multi-modal transportation system, * Improving and maintaining healthy air quality, * Solar and renewable energy technology, * Managing our water resources, and * Protecting wilderness, parks, national monuments and other natural areas for Arizona’s tourism economy.

“As Arizona and the country recover from the Great Recession,

What grew from that seed was an initiative that had actually been germinating for more than a decade a statewide dialogue is more important than ever,” says William F. Allison, a shareholder at Gallagher & Kennedy. “The issues impacting us — water, energy, transportation, land use — involve the entire state rather than only the valley. Arizona Forward will provide a forum to think outside the box and beyond the valley.”

To get Arizona Forward to have its greatest statewide impact, Brossart and her staff connected with 13 companies that had influence on communities along the Sun Corridor — the stretch of freeway that connects Tucson, Phoenix, Prescott and Flagstaff — to become charter members of Arizona Forward.

“The leaders of those companies have become our tour guides as we go into Pima County and northern Arizona,” Brossart says.

She points to Kurt Wadlington, Tucson Building Group Leader of Sundt Construction, for opening doors for Arizona Forward to spread its wings into Southern Arizona.

“Southern Arizona already has a very strong environmental focus, but struggles with areas that are dependent on statewide engagement from both a funding and advocacy perspective,” Wadlington says. “(valley Forward’s) shift (to a statewide focus) will provide Southern Arizona with added resources to coordinate its future growth in the larger context of the Sun Corridor.”

TIME FOR UnITY

Experts agree that now is the perfect time for valley Forward to shift to a statewide focus statewide because Arizona is at a turning point, economically and environmentally.

“There are major issues that affect the state like transportation; AB | November-December 2012 101

ARIZONA FORWARD 2012

William F. Allison managing resources; and protecting the wilderness, parks and national monuments,” says Barbara Lockwood, general manager of Energy Innovation for APS and who will be the first chair of Arizona Forward’s board of directors in 2013. “These are not just environmental issues, but are issues that have an effect on Arizona’s economy statewide. I think Arizona is ready to start having more positive statewide conversations about finding ways to grow our economy in a manner that can be sustained and is environmentally friendly.”

Brossart says that while Arizona has had countless groups that have focused on making their communities better, Arizona Forward will be looking to help educate elected officials, decision-makers and other to become the glue that brings those regional organizations together in a spirit of cooperation and unity.

“So much of our goal is to drive a political agenda to the middle and bring folks on both sides of the aisle together,” Brossart says. “The issues that we focus on are sustainability and environmental.

Everybody needs clean air, clean water, open space and parks. Those are the things that make a community viable, healthy and livable. We all want that.

Those aren’t political issues. But they do fall into a political arena that sometimes clouds the issues. If we can be a reasoning voice of balance like we have been successfully in Maricopa County, if we can bring that statewide, it will be really good for Arizona — economically and environmentally.” valley Forward members expect the transition to Arizona Forward to foster additional collaboration and conversation on

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Job title: Shareholder at Gallagher & Kennedy, P.A. His practice focuses on land use entitlements — zoning, comprehensive/general plans, development agreements, revision of regulations.

Position with Valley Forward: Vice chair and member of the executive committee and board of directors.

Most notable personal achievement: Completing a rim-to-rim hike at the Grand Canyon 11 months after breaking two vertebrae in his neck and shattering one in his upper back and seven months after discarding his clam shell back brace.

Why he become involved with Valley Forward: “To be part of its important, thoughtful dialogue regarding development that is sustainable from both economic and environmental perspectives.”

Importance of Valley Forward: “It convenes a broad group of public and private sector interests to study and discuss a variety of issues impacting the Valley and Arizona. This representation is unique in Arizona.”

Janice Cervelli

Job title: Dean, College of Architecture and Landscape Architecture, University of Arizona Position with Arizona Forward: Advisory Board Member Something that would surprise most people: “I am a lead singer in a couple of bands in Tucson. Tucson has a great music scene.”

Why she become involved with Valley Forward: “As dean of a college with a mission to educate architects, urban planners, and landscape architects, it is my duty to connect to and support such efforts within the state. Subsequently, I was invited to speak at the 2011 Livability Summit, where I met many members and have been involved in Valley Forward ever since.”

Importance of Valley Forward: “I support nonprofit, non-partisan, and non-government driven visioning efforts that combine advocacy with education, as I believe this to be one of the most promising ways in which Arizona can achieve a positive future for all.”

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ARIZONA FORWARD 2012 statewide issues, bring additional viewpoints on key issues and allow for a more global conversation.

“My hope is that we can, over time, have a collective vision that regardless of our own regional filters, we’re all in this together and need to find ways to move forward as one sustainable, economically successful state,” says Iain Hamp, community affairs representative, Wells Fargo Team Member Philanthropy Group.

ECOnOMIC IMPACT

Brossart says one of the biggest messages Arizona Forward will be trying to communicate is that making sound decisions about issues surrounding sustainability and the environment are good for business.

“If we make a case that shows the economic impact of parks and open space on the tourism industry, the business community will take notice and they are uniquely poised to deliver that message and be heard,” Brossart says. “Parks groupies are great and they are important. But when the business community gets involved, people listen.”

Where Arizona Forward could have its biggest economic impact is on growth industries that rely on the state’s amazing natural resources.

“It’s an exciting time to be a part of solar energy, as the clean, renewable energy industry is experiencing massive growth and helping the state and country achieve greater energy independence,” says Patricia Browne, director of marketing and communications for SOLOn Corporation in Tucson. “And Arizona has been at the center of this growth. This has been made possible

John Godec

Job title: President of Godec, Randall & Associates Inc., which helps governments and businesses solve tough, dicey public and stakeholder challenges. I’m also a partner in a training firm and in a company that designs and manages large public participation projects.

Position with Valley Forward: Member of the Executive Committee and Board, and co-chair of the Public Education Committee with Penny Pfaelzer.

Most notable personal achievement: “I won a pancake eating contest in high school (he ate 42) and I have a pretty terrific and happy daughter.”

Why he become involved with Valley Forward: “I’m attracted to its mission — to find that sweet spot between robust business and protecting that which caused most of us to move here in the first place.”

Importance of Valley Forward: “It has successfully served a unique purpose in the Phoenix metro for more than 30 years and the time is right for the organization to grow.”

Wonder woman

Famed adventurer will share leadership lessons from Mount Everest and Wall Street at Valley Forward event

A

lison Levine is a survivor.

The University of Arizona graduate has overcome more than just the life-threatening heart condition — Wolf-Parkinson-White Syndrome — that left her unable to drive a car or walk up stairs as a teenager. Surgery allowed Levine to achieve an Adventurer’s Grand Slam — climbing the seven highest peaks on each continent and reaching the North and South poles — and also successfully compete with the sharks on Wall Street.

“A lot of lessons that I learned climbing the mountains really helped me in the business world,” says Levine, an adjunct professor at U.S. Military Academy and a former investment professional at Goldman Sachs & Co. “On the flip side, a lot of the things I learned in Wall Street helped me stay alive in some pretty tough situations when I was climbing.”

Levine will share some of the lessons she learned in both business and in the bush when she is the keynote speaker at Valley Forward’s 43rd Annual Luncheon from 11:30 a.m. - 1:30 p.m., Friday, December 14, at The Phoenician. By drawing parallels between staying alive in the mountains and thriving in a fastpaced business world, Levine’s inspirational presentation focuses on leadership, teamwork, overcoming odds, taking responsible risks and dealing with changing environments.

Levine, the team captain of the first American women’s Everest expedition, says she will share some of the leadership lessons she has learned that apply to both business and to conquering a challenge in nature.

“One of rules that we always follow when we are climbing a mountain is the ‘leave no trace policy,’” Levine says. “When we climb, we want to leave the mountain better than we found it. If we apply that to our business practices and keep that in mind when we are utilizing our natural resources, that process will leave the planet in a better place than we found it.”

For more information about the luncheon or to register, visit valleyforward.org.

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ARIZONA FORWARD 2012

not only by the companies developing the solutions, but by the state and local officials, Arizona-based businesses and individual residents who recognize the importance that solar plays in a number of ways such as a cleaner environment, economic development, and energy price stability. However, there are still challenges in making the adoption viable on a large scale, and Arizona Forward helps bring together the right players to help make this happen on a state level.”

Richard Mayol, communications and government relations director for Grand Canyon Trust in Flagstaff, says Arizona Forward will give members in northern Arizona the opportunity to have a voice in discussions that affect the state today and in decisions that impact Arizona 20 years from now.

“We hope it will help create an economy that provides the opportunity for prosperity without sacrificing the environment,” he says, “and makes northern Arizona an even better place to live, work, and raise a family.”

And that is what Arizona Forward’s mission is all about: bringing business and civic leaders together in order to convene thoughtful public dialogue on statewide issues and to improve the environment and sustainability of Arizona.

“All areas of the state will benefit, from urban to rural and suburban areas in between, due to a coordinated and planned strategy for such essential elements as affordable energy, water, transportation, affordable housing, and a wide band of employment opportunities,” says Janice Cervelli, dean of the College of Architecture and Landscape Architecture at the University of Arizona. “All geographic, economic and environmental sectors of the state will increasingly become part of a larger, interdependent, connected system.”

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Iain Hamp

Job title: Community affairs representative, Wells Fargo Team Member Philanthropy Group Position with Valley Forward: Executive Committee member and board member.

Something that would surprise most people: “I never volunteered for anything in my life until 2006. Today, I volunteer a minimum of 876 hours (10 percent of my life) every year, and don’t plan to stop until age or gravity force the issue.”

Why he become involved with Valley Forward: “I have a passion for finding ways all of us can live and work in an environmentally friendly way here in our urban desert oasis.”

Importance of Valley Forward: “Our focus on ensuring that sustainability and livability are considered, through civil dialogue, is needed now more than ever before as we build our economy and our communities.”

Legacy he hopes to leave: “I hope to play a part in transforming ‘sustainability’ and ‘service to our communities’ as concepts which are the norm rather than the exception within our business community.”

Together we move the Valley forward.

Congratulations to this year’s Environmental Excellence Award finalists. APS would like to thank Valley Forward for recognizing the Paloma Solar Power Plant with a Crescordia in Public Sector Environmental Technologies, and for leading the Valley’s environmental advocacy for more than four decades.

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ARIZONA FORWARD 2012

TRAvEL TIME valley Forward study hopes to guide Arizona’s transportation systems into a less congested future

By DAnIEL ESCOBEDO

A

s valley Forward transitions to Arizona Forward to encompass a statewide focus, it’s only fitting that the association with a 43-year history of success tackling environmental issues — including land use, water management, air quality and energy — turns its attention to an issue that impacts every resident and every business in Arizona.

Transportation. “valley Forward has always valued transportation as one of the organization’s key areas of interest,” says John Godec, president of Godec, Randall & Associates Inc., which helps governments and businesses solve public and stakeholder challenges.

“The Phoenix and Tucson metros have seen radical transportation changes and improvements in the past decade, so we’re asking, ‘What’s next? Are we good to go now?’”

Just as it did last year with parks and open spaces, valley Forward hopes to answer those questions as it unveils its stance on transportation, covering topics such as transportation planning, how it impacts the quality of life in the Sun Corridor and how transportation affects Arizona’s economy.

One issue that Arizona Forward wanted to address in its Transportation Primer has been on the minds of every Arizonan: traffic congestion and how to better connect cities 108 AB | November-December 2012

Eddie Jones

Job title: Principal in charge of design, Jones Studio, an award-winning architecture and interior design firm with a focus on sustainability.

Position with Valley Forward: Founding member of Arizona Forward, winner of 17 Valley Forward Association Environmental Excellence Awards.

Most notable personal achievement: “To have been an essential team member for the design and construction of the Arizona 9/11 Memorial, because its message will survive my generation’s raw, emotive memories.”

Something that would surprise most people: “I cannot say no to (Valley Forward president and CEO) Diane Brossart.”

Why he become involved with Valley Forward: “I admired their mission and commitment.”

Importance of Valley Forward: “Arizona desperately needs intelligent, responsible leadership.”

Legacy he hopes to leave: “Never stop caring.”

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ARIZONA FORWARD 2012 with each other. According to a policy report written by Byron Schlomach for The Goldwater Institute, the average Phoenix commuter spends an average of 38 hours a year in traffic, while a commuter in Tucson spends roughly 42 hours in traffic.

In an attempt to remedy traffic congestion in Phoenix, voters adopted Proposition 400 in november of 2004, which allowed for the renovating and extending of current freeways and the addition of more public transportation, such as the valley Metro Light Rail, all of which connect small communities with larger cities. In Tucson, Pima County voters approved the $2.1 billion Regional Transportation Plan, which saw the construction of a modern streetcar project throughout the city, giving more people a chance to get around, while getting cars off the GOALS OF highways.

ARIZOnA However, the question that has FORWARD been asked by Arizona Forward is, is • Establish cooperative relationships it enough, especially since Arizona with like-minded Arizona conserva- only seems to be growing in size?

“At least half the transportation tion organizations and facilitate collaboration on sustainability initiatives. systems that the state will need in 2050 have yet to be built,” says Sally • Bring business and civic leaders Stewart, deputy communications together to convene thoughtful director at the Arizona Department public dialogue on regional issues. of Transportation (ADOT) and • Increase awareness of and interArizona Forward member. “Despite est in environmental issues initially in the the recent economic downturn, Sun Corridor and then beyond, stateArizona’s growth is not over. It is wide, building on an agenda of land use not a question of whether the Sun and open space planning, transportaCorridor — one of the emerging tion, air quality, water and energy. megapolitan regions in the country — will be a reality; it is simply a • Support efforts to promote the Sun Corridor as an economic devel- matter of when.”

According to a study published opment area using sustainability and in March 2010 by ADOT, it is exsmart growth principles. pected that Arizona’s population • Serve as a resource on enviwill more than double, from 6.4 ronmental issues through Arizona million to about 16 million people Forward’s and Valley Forward’s diverse in the next 30 years. Maricopa membership of large corporations, County’s population is expected small businesses, municipal governto increase by 90 percent, from ments, state agencies, educational 4 million people to about 7.6 institutions and nonprofit organizations. million. The study suggests that because of this population explosion, travel times for various destinations in the Sun Corridor could increase by about 100 percent by 2050. This could mean that a trip between Phoenix and Tucson, which currently is about a 95-minute drive, could take up to 5.5 hours in 2050 (assuming that the Interstate-10 freeway is widened to about 10 lanes).

Arizona Forward experts say the state must plan ahead to improve this transportation dilemma, especially if it wants to attract more business activity and economic improvement.

“Transportation is key for economic development,” says Eric Anderson, transportation director at the Maricopa Association of Governments. “The ability of a company’s workforce to commute on a predictable basis is critical. The movement of freight in and out of the region is also important. Companies looking to locate in the region always look at the adequacy of the transportation system in providing mobility and travel options.”

110 AB | November-December 2012

Steve Krum

Job title: Director of Global Communications, First Solar, Inc. Position with Valley Forward: Member of the Board of Directors, sits on the Executive Committee, and is also a member of the Public Relations Task Force.

Why he become involved with Valley Forward: “A long-time enthusiast of thoughtful urban design and dynamic discussion of sustainability in policy and practice, I had the opportunity in the late 1990’s to provide Valley Forward with pro bono public relations consulting. I was immediately impressed with the passionate commitment the organization has for facilitating open dialog in the community. I found a great platform from which to focus my own dedication to community service.”

Importance of Valley Forward: “Valley Forward has a fourdecade legacy of bringing together business, local government and community stakeholders for frank, illuminating discussions on sustainable development. The lessons learned, the challenges overcome, the relationships built with thought leaders ... all this experience can serve as a blueprint for getting a statewide perspective on the same issues.”

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E-Waste Harvesters 3535 E. Corona Ave., Phoenix, AZ 85040 Ph: 602.476.7533 www.e-wasteharvesters.com

Congratulates Diane Brossart, Valley Forward Association, Arizona Forward, and the 2012 Environmental Excellence Awards Recipients!

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