AzBusiness magazine September/October 2012 by AZ Big Media

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septeMBer // oCtoBer 2012

Dr. Edgar Staren of Cancer Treatment Centers of America, Beverly Damore of St. Mary’s Food Bank Alliance, Jeff Gaia of Biltmore Bank of Arizona and John Hunter of CA Technologies lead companies that are spotlight winners for this year’s MAC Awards.

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2 AB | September-October 2012

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Table Of Contents 8 Alpha CEO 10 Alpha First Job 12 Small Business 14 Alpha Women 16 Health 20 Law 24 Credit unions 28 Financial Planning Guide

Paul Winandy bring tech start-up expertise to WebPT Clean Air Cab founder got his start in a bike shop Deep roots help Cactus Flower Florist bloom

Kristin Bloomquist becomes C-K’s ﬁrst female GM Valley doctors battle Web as cyberchondria grows Arizona employers face hike in wage-and-hour claims Financial institutions grow membership numbers Wealth managers shift strategies in volatile economy Five tips to remember for estate planning in 2012 Financial wellness programs pay off for busineses

34 Economic Engines 44 AZ Tech

Research, technology hubs help drive Arizona business • Arizona in the race to become aerospace leader • How changes in technology will impact the law • Arizona Energy Consortium prepares its Roadmap • CEO Todd Davis helps LifeLock keep growing

57 Most Admired Companies 89 MPI

learning Our lessons

as an 8-year-old kid in new york, i came up with the bright idea that i would buy packs of bubblicious bubble gum for 40 cents a pack at the grocery store and then turn around and sell it to my classmates for $1. sounded like a brilliant plan, until my entire inventory was confiscated five minutes into first period because gum wasn’t allowed in class. it was the first, but certainly not the last time an investment didn’t pan out like i wanted (i was convinced that facebook would be the next Google). “it is important for investors to manage their emotions,” said Michael Weigel, senior vice president and managing director of investment Management services at Mutual of omaha bank Wealth Management. “This can be challenging in today’s news environment where constant headlines and other noise can lead to an emotional response.” in this issue of Az Business, Weigel and other experts help us take a closer look at effective financial planning and investing in the wake of the recession. i can tell you one thing you can take to the bank: none of the experts will be chewing bubblicious.

40 Arizona businesses honored earn distinction

Meetings and conference industry has major impact on Arizona’s economy

cover portraits photographed by Glory shim.

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Michael Gossie editor in chief michael.gossie@azbigmedia.com

Az Business on the Go: AzBusinessMagazine.com

AB | September-October 2012 5

shout Outs

fenneMOre CraiG sets the standard

The Women in law empowerment forum recognized Phoenix law firm fennemore craig with a national Gold standard certification for integrating women into leadership positions. fennemore craig is one of just three nationwide certification winners that met or exceeded all six criteria set by Wilef. half of the committee members responsible for managing fennemore craig are female partners, bypassing the 20 percent award criteria established by Wilef. additionally, more than a quarter of the firm’s equity partners and department heads are women.

CustOMers hOnOr srP

in a report issued by J.d. Power and associates, srP received the top score from customers for residential electric service in the large utilities segment in the Western united states for the 11th consecutive year and the highest total among the nation’s largest utilities for the fourth year in a row. “earning these high marks from our customers year after year never gets old,” said srP General Manager Mark bonsall.

sCruGGs earns lifetiMe hOnOr

Glendale Mayor elaine scruggs is the recipient of the first-ever lifetime achievement award for regional planning from the Maricopa association of Governments (MaG). scruggs was recognized for her 22 years of leadership on numerous regional organizations and committees.

tilted tOWard suCCess

since tempe-based developer ron lynch launched the franchise concept for tilted kilt in 2005 with just one location within the rio casino hotel in las vegas, he has grown the “breastaurant” concept — known for waitresses dressed in kilts and matching push-up bras — to almost 100 locations in the u.s. and canada, with a three-year growth of 892 percent. now in 22 states, lynch hopes to have 300 pubs open within five years.

Wells farGO GiVes hOMe tO Veteran Wells fargo donated a mortgage-free real estate owned home to the Military Warriors support foundation, which helps veterans who have served their country and have special needs as a result of that service. afghanistan war veteran Jason McGowan recently received the keys to the three-bedroom home in tucson, where he will live with his wife and two children.

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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: aubrie artiano • alexa boWMan • kelly church • Joel Miller reMi oModara • Maria thoMPson art seniOr GraPhiC desiGner: christin GanGi seniOr GraPhiC desiGner: Mike Mertes COntributinG PhOtOGraPher: cory berGQuist interns: lindsay hanson • Glory shiM diGital Media Web deVelOPer: eric shePPerd Web & GraPhiC desiGner: Melissa Gerke MarketinG/eVents ManaGer: Whitney fletcher OffiCe sPeCial PrOjeCts ManaGer: sara freGaPane exeCutiVe assistant: kathy Mutschler database sOlutiOns ManaGer: cindy Johnson arizOna business MaGazine seniOr aCCOunt ManaGers: david harken • Mike hart aCCOunt ManaGer: shannon sPiGelMan arizOna COMMerCial real estate aCCOunt ManaGer: steve kosloWski 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 • david silver az biG Media exPOs scottsdale suPer exPo WoMen’s suPer exPo hoMe & life suPer exPo 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.

alPha CEO SERIES Photograph by cory bergquist

Paul Winandy CEO, WebPT, which provides physical therapists with a Web-based electronic medical records system how did you end up as CeO of WebPt?

There is a group in town called the arizona technology investor forum, which focuses on early-stage technology investing. i was the managing director of that angel group, and i met (WebPt founders) brad and heidi Jannenga when they came in to present to the group. i looked over their strategy and vision and was really impressed and really enjoyed what they were bringing to the table.

What qualities do you have that helped WebPt triple in size in 2011?

My background is all in early stage technology startups. i’ve done about five in my career. My experience is taking those companies from the early stages and growing them to $10 million or $12 million in revenue. i’ve been through the wars and i’ve been through the battles, so i know what to do in terms of building the right team, bringing in the right resources and being able to grow the company fast.

valley, the mentality is “let’s get a great idea and get a little proof of the concept and then raise a bunch of money.” you can’t do that here in arizona. you have to build a product that is out on the market generating sales before you can go out and raise a lot of money.

are there any obstacles to starting a tech company in arizona?

as much as being under the radar is beneficial, sometimes it’s nice to be out there in the spotlight so you can get the right talent. Phoenix has some phenomenally talented people, but we’re not as deep in the technology area as some other parts of the country.

Where do you see WebPt growing?

We need to stay focused on the physical therapy industry because that will allow us to be laser focused. There is a great market there. it’s a niche market, but it’s developing and it’s a very open and a very green field ready to embrace and adopt technology. There are about 30,000 physical therapy clinics and we have 2,100 now, so about eight What qualities do you think an effective percent of the market. so if we focus on that CeO needs? and become the dominant player, we’re going to vitAL stAts: pAUL WinAndY you have to be able to rely on your team. have a nice, long track record. you have to realize what you bring to the table Over the course of his 20-year career, and you have to realize what you need to build Winandy has been an executive leader in What advice would you give out. in early-stage technology companies like four successful technology businesses, two someone looking to start a of which were named to the Inc. 500 list and WebPt, you have to have the ability to be able technology company in arizona? were later acquired by public firms. to get in there and get your hands dirty. i like solve a business need with whatever product For several years prior to WebPT, Winandy that part of it. i like to be a hands-on ceo. you’re trying to develop. to be successful, it was an active business advisor and but once you build up the team, you have to has to be something that is going to have a angel investor in fast-growing technology have the ability to let go and let that team be market demand. There are a lot of great ideas, companies. successful. but they cannot figure out how to make it solve Before his advisory practice, Winandy was a business need and get that first customer. so COO of SkillSurvey, a startup web services are there benefits to starting find out what is needed, create a way to solve fi rm providing online reference assessment a technology company in tools. Before that, he was director of strategic that business need, and then go to market on arizona? that basis. accounts for Khimetrics, a leading enterprise We’re a little bit under the radar in terms software firm specializing in revenue. of the silicon valley mentality. in silicon 8 AB | September-October 2012

alPha FIRST JOB Photograph by cory bergquist

steve loPez founder of Clean Air Cab What was your first job?

bile in america equals emotion and provokes passion. utilizing the automobile to provide a needed service and to perform it above expectation is really what the automobile was born to do. My job is to oversee that it is executed with vision and precision, and that is what i believe i was born to do. i enjoy the everyday challenges that pop up, forcing us to stay ahead in such a large industry.

What did you learn from that first job?

What were your salaries in your first job and in your first industry job?

at the age of 15, i took on my first job working for a bicycle shop. i cleaned the showcases, swept the floor, put away tools, and reracked the stray show bikes on the floor. i also learned that my job entailed cleaning the bathroom once a day as well. i didnâ&#x20AC;&#x2122;t like it then, but see how it helped shape me into who i am today. i learned that making a dollar is hard work and takes a lot of responsibility and self-respect. i also learned that being five minutes early means you are on time.

describe your first job in your industry.

after my first job, i started working at an antique car museum where my love of automobiles was born. from there i maintained jobs in either the food or auto industry. i even raced open wheel professionally through the 1990s. i didnâ&#x20AC;&#x2122;t have any experience in the cab industry, but all of my time spent with automobiles allowed me to evolve into this business and understand it and be effective from multiple angles.

What lesson did you learn in your first industry job that still helps you today? being around cars my whole life has taught me that the automo10 AB | September-October 2012

i was paid $4.25 an hour in 1984, and i am still waiting for my first paycheck in this industry.

Who is your biggest mentor?

My grandparents are my largest motivators and i draw a lot of business knowledge from our past conversations and experience of working through their eyes. My grandfather was president and ceo of a large pharmaceutical corporation, and my grandmother was an active business owner and civic leader. i see business as an arena where community and corporation can exist cohesively when they share like goals and vision. cities are strongest and flourish when each individual has a feeling that they are a portion of the process of progress, and this momentum allows positive change that can occur within groups or by individuals culminating in beautification, growth and civic pride.

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alPha SMALL BIZ by MicHAeL gossie

Eric Luoma and his sister, Kristina Dyrr, operate Cactus Flower Florists. Other photos are from its 1972 opening.

40 years of GroWth deep roots bring strength to family-owned Cactus Flower Florist

ichard nixon was in the White house, “the Godfather” was in theaters, and Mark spitz was the Michael Phelps of his day ... even though the birth of Phelps was still 13 years away. The other thing that happened in 1972 was the birth of a valley institution: cactus flower florists, a family-owned and operated business which started as a single store on scottsdale road and has blossomed into six locations throughout the valley. “surviving and thriving the recent recession was our most recent proud moment,” says eric luoma, who watered plants and made deliveries for his parents when they started cactus flower more than 40 years ago. “our entire team pulled together to make it through, and we learned a few things along the way to stay profitable and relevant in today’s new world of retail.” While luoma credits cactus flower’s employees and customer service as the main factor for the company’s 40 years of success, the owners’ ability to adapt to a changing retail environment has allowed them to survive and thrive. “We strive to stay relevant in the complex world of retail,” he says. “We have achieved this by starting cactusflower.com in 1994, adding flowershop.com in 2001 and opening locations where our customers tell us we are needed. being a local and family-owned business also is extremely important as more national retail chains open and grow. We continue to succeed by providing the highest quality products that we 12 AB | September-October 2012

source directly from farms, resulting in the freshest flowers available for our customers around the world.” luoma, who runs the day-to-day operations of cactus flower with his sister, kristina dyrr, says, “the family business becomes another family member, one that we discuss a lot and nurture to remain one of the top flower companies in the country.” The nurturing approach has worked because cactus flower is ranked by ftd and teleflora’s as one of the top 10 florists in north america. even though luoma admits that celebrating holidays on the actual day doesn’t always happen due to the demands of the business, he says that the rewards of operating a family business outweigh the obstacles. “it is truly an honor to have the privilege of working with my mom who started cactus flower 40 years ago; my dad who is a retired engineer; and my sister who grew up in the business just like i did,” he says. “as a family, we get to know and spend time with our customers because we are there in the stores, hearing stories of how cactus flower has played a role in their lives. and we have always been very involved in the local community with events, volunteerism and charitable contributions, a passion that has now led me to run for scottsdale city council.” as for entrepreneurs who and to start a business with the staying power of cactus flower, luoma offers simple — yet sound — advice. “find a business owner to be your mentor and have coffee with this person every couple of weeks,” he says. “share what your successes and fears are and listen to what they have to say. listening is such an important skill, much more than talking.”

AB | September-October 2012 13

alPha WOMEN by MicHAeL gossie Photograph by gLory sHiM

the art of advertisinG bloomquist leads cramer-krasselt Phoenix as its first female general manager

kristin bloomquist is used to breaking new ground. More than a decade ago, the veteran new york executive was hired by advertising icon donny deutsch to help open deutsch la. now, bloomquist is the first female general manager in cramer-krasselt Phoenix’s 30-year history. Az Business sat down with the Williams college art history major to talk about advertising and marketing in the age of social media. QuestiOn: How did your art background help you in business? kristin blOOMQuist: it helped me learn how to think. i learned that what makes a great artist is not only talent, but insight into culture. so carrying that into business, i learned that great advertising isn’t only about great creative, it comes from having insight into consumer behavior. effective advertising combines the creative with that insight into culture. Q: What attracted you to this business? kb: as much as the creative aspect of advertising attracted me, i was equally attracted by the strategic component of the business. i love developing a strategy based on what we can learn from the consumer and using that strategy to make them think about a product in a new way. Q: What strengths or qualities do you have that helped take you to the top of your industry? kb: it starts with passion. you don’t stay in a business for 30 years like i have unless you’re passionate about it. i also — no mat14 AB | September-October 2012

ter where i sit, whether it’s at the bottom of the totem pole or running an office — have a roll-up-my-sleeves attitude. That makes other people want to work hard and grow our clients’ business. Q: How did the economic downturn affect your industry? kb: We saw clients decrease budgets, but they needed us even more because we became even greater extensions of their business. We also saw the average tenure of our clients’ chief marketing officers — which has traditionally been 18-24 months — decrease. so we had to generate results more quickly, because those are the people we deal with. once they’re gone, we’re gone, too. Q: How has technology and social media changed advertising? kb: The ways consumers engage in media, the ways they get information, have changed dramatically. so we have become less about delivering information to consumers and more about engaging them. it is more of a dialogue than it’s ever been. We have to listen in ways we never had to listen in the past. Q: What advice would you have for other women who aspire to get to where you are today? kb: i really believe you have to have the mindset that i’m coming to work not just for a paycheck, but i’m coming to work with passion and every day i’m going to try to do something that makes a difference or impact on the business. you’ve got to live it and breathe it and not be afraid to raise your hand and say, “i’m ready to jump in here,” even if it might be scary and you don’t know everything.

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

BEST OF WINGS

B E S T O F S TA R S

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 520-381-6300 CasaGrandeHospital.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.

nfincom’s philosophy is unique in today’s office products market. In an industry that has grown impersonal through mergers and acquisitions, we have created a customeroriented personal touch. By embracing Dudley Do-Right’s “Everything we do, we Dudley do-right” philosophy, we put our customer, manufacturer and employee needs first. Embracing a “work hard, play hard” approach, we offer employees a well-rounded, flexible environment conducive to personal growth. Infincom has a distinctly feminine vibe, providing amenities that reduce stress, and encouraging participation in organizations that promote women in business. Employees at Infincom understand there are unlimited opportunities for women in the company.

PAT JOHNSON Vice President of Client Services and Support

LINDA HUNT President and CEO

TIFFANY BUCHER President

800-435-4000

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480-951-9191

DignityHealth.org

Inﬁncom.com

WorldatWork.org

CharlesSchwab.com

t WorldatWork, the significance of family is not only understood but honored. You’ll fi nd 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.

ANNE C. RUDDY President and CEO

AB | September-October 2012 15

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

HEALTH

by MicHAeL gossie

cyberchondria

a tanGled Web

internet can be a blessing and a curse when it comes to managing your health

dmit it. you’ve had an ache or pain or a sniﬄe or stiffness and Googled your symptoms to figure out what was wrong. We’ve all done it. While WebMd may be the quickest way to find an answer, it may not be the healthiest. “The danger is that many different diseases have similar symptoms and it is difficult for a person without medical training to distinguish between possible causes,” says dr. Jim dearing, chief medical officer for John c. lincoln’s Physician network. “This becomes more dangerous if the patient decides to self-medicate instead of consulting a physician, because they could easily be treating the wrong thing – and their treatment may make the real cause of their symptoms worse.” according to a 2011 Pew study, 80 percent of internet users look for health information online, making medical inquiries the third most popular use of the Web, trailing only email and search engine use. and a recent survey of 1,000 people found that almost one-quarter of 1,000 people surveyed have misdiagnosed and treated themselves wrongly thanks to the information they found online. “With the abundance of information available on the internet, sorting fact from fiction can be difficult,” says dr. Mary ellen dirlam, medical director of samaritan academic faculty Practices at banner Good samaritan regional Medical center. “information 16 AB | September-October 2012

on the Web may be inaccurate, incomplete, outdated or biased by commercial interests. Misinformation or applying accurate information inappropriately may result in needless worry or false reassurance, causing delay of treatment.” some of that needless worry has created a condition called “cyberchondria,” which is fear and preoccupation with medical concerns caused by health research online. virginia kwan, a psychologist at arizona state university, examined how symptoms presented online can influence people’s reactions to possible medical conditions. “The way gamblers say they have a ‘hot hand,’ cyberchondriacs believe they have ‘hot symptoms,’” kwan says. “if they hit the first two in a list, they believe they must have the third one as well.” While issues of misdiagnosis and cyberchondria can result from overzealous online medical research, doctors agree that there is a constructive place for internet research in healthcare. “the internet provides a wealth of information for parents interested in their child’s medical care,” says dr. robb Muhm Jr. of Phoenix children’s hospital. “the amount of information can be overwhelming at times. the biggest danger for parents is choosing the incorrect information from among all the available information on the internet. this is an area where the pediatrician can be very helpful. We can help the parents make the right decision for their child based on experience, research,

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AB | September-October 2012 17

HEALTH

and the most current information.” dr. sanford silverman of scottsdale’s center for attention deficit and learning disorders and center for Peak Performance points out that the internet can be a useful tool to create a common ground to start a diagnostic and treatment discussion with a medical professional. “The more informed the patient is, the easier it is to communicate with them,” he says. “in this respect, prospective patients can learn from pertinent internet sites and then share their thoughts

Dearing

Dirlam

Advice from the experts

Valley doctors offer insight for those people who have a medical issue or question and are considering turning to the Internet for answers: dr. mary ellen dirlam, Banner Good Samaritan Regional Medical Center: Patients searching the Internet need to verify the identity and credentials of the online source. Reputable sources include their healthcare provider as well as the Medical Library Association Internet site. This website offers an excellent article, “A user’s guide to finding and evaluating health information on the Web” as well as a list of good sources for information. dr. robb muhm Jr., Phoenix Children’s

18 AB | September-October 2012

Muhm

and findings with the doctor. i have worked with many patients who were diagnosed with anxiety and or depression. by using the internet to research this diagnosis, they found links to attention deficit disorder, which they then believed was a more accurate diagnosis. They scheduled an appointment to investigate if they have this disorder. in the majority of my cases, they were accurate and add was a contributing or major part of their difficulties. The internet helped steer them to appropriate authorities.”

Silverman

Hospital: We should all be critical media consumers. We always need to be mindful of where the information is coming from. The American Academy of Pediatrics website (aap. org) is a good starting point. The AAP has another parent-specific website dedicated to providing accurate, current information on a wide variety of topics: healthychildren.org. When I have a question, I start with these two websites. dr. penny Krich, EVDI Medical Imaging: A patient should be wary of anecdotal medical information often found on the Internet. Each patient’s medical history is different. It should be taken into account that a similar symp-

Krich

Arcilla

tom for one person may have very different implications for someone else with a different underlying medical problem. Jelden Arcilla, chief nursing officer, St. Luke’s Medical Center: The best sites to visit and reference for individual and basic education on health and medical conditions are nonprofit, government and academic websites. These sites are generally unbiased with no individual disclosure or conflicts and have the most updated, evidence-based research to support its information and recommendations. They also are reputable websites to provide you referrals to the nearest healthcare provider who can further address your concerns.

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LEGAL

by MicHAeL gossie

labor Pains

arizona employers are facing an onslaught of wage and hour claims

or shayna balch, business is booming. since the start of 2012, the labor attorney at fisher & Phillips in Phoenix is seeing — on average — one to three wage-and-hour cases filed each day. This is compared with one or two a month in previous years. nationally, the number of new fair labor standards act suits lodged in federal courts between 2010 and 2011 jumped more than 15 percent, according to federal Judicial caseload statistics. historically, balch says wage-and-hour cases have not been an issue in arizona. because of that, employers are not prepared for the trend, and she worries that this a ticking time bomb waiting to explode. “There are multiple causes (for the increase),” says John Thompson, who handles wage-hour cases at fisher & Phillips and is the editor of the firm’s Wage hour laws blog. “They include a greater familiarity of plaintiff’s lawyers with wage-hour laws and with the many areas in which non-compliance can occur; workers’ increasing awareness of wage-hour requirements — including via the internet and the media; the growing number and complexity of the laws themselves; and the stepped-up enforcement efforts of government officials.” as the economy suffered and employers looked for ways to reduce labor costs, many of the cost-cutting measures conflicted with employment laws, according to Phoenix attorney John doran of sherman & howard, and that has led to an avalanche of wage and hour claims. The number of collective actions has increased by more than 400 percent nationally in the last decade. in arizona, the increase has been even more dramatic. “in arizona, there has been a sudden and dramatic increase in wage and hour collective and class actions,” doran says. “This 20 AB | September-October 2012

should be a source of serious concern for arizona employers.” it’s particularly stressful for employers desperately trying to recover from the recession. “employers have looked for every possible angle to reduce labor costs, including overtime, and many of those angles simply do not jive with the wage-and-hour laws,” doran says. “This has been especially true with employers trying to convert their employees into independent contractors, which is an extremely difficult, and often mishandled strategy that has the attention of the department of labor and the i.r.s.” The department of labor has increased its strength thanks to a significant bump in funding under the obama administration, increasing both its enforcement and public awareness campaigns. More than 250 new investigators have been hired and the revitalized Wage & hour division launched its “We can help” campaign in 2010 to increase visibility and accessibility to workers. “The dol has also been more aggressive in pursuing employers, by expanding the scope of wage and hour investigations, issuing more administrative subpoenas, and imposing more penalties on employers,” says Phoenix attorney tracy a. Miller, shareholder at ogletree, deakins, nash, smoak & stewart, P.c. and the dol is making it even easier for employees to build cases against their employers. last year, the dol developed a smartphone application that allowed employees to keep track of their own time and monitor employer compliance with certain wage and hour requirements. The dol also created hard copy “exhibits” for employees to track their time. in taking these steps, the dol has stated that employees must be paid for any work they do, regardless of where they do it. empowered with dol-provided tools, “We are seeing more individuals who file suit on their own behalf,” says stephanie Quincy,

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LEGAL

a partner in the labor and employment practice group for steptoe that supervisors and managers are adequately and accurately & Johnson. “in arizona, if wages are not paid when they are due or carrying out otherwise compliant pay practices; and much, much the wages are withheld without a good faith reason, the employee more. These audits are best conducted through outside legal counis entitled to three times the amount, as a punishment for the sel in order to cloak them in attorney-client privilege.” employer. We are seeing employees filing these suits themselves, Quincy says employers should examine each employee and without an attorney.” determine if the employee — not the position — is doing the type so where are employers most susceptible? of work that is considered “exempt” or “non-exempt.” non-exempt “The biggest increase has been in lawsuits and investigations employees must be paid overtime. employers should also carefully involving workers who claim to be misclassified examine deductions from pay and time, includfAir LAbor stAndArds Act as independent contractors,” Miller says. “failing automatic deductions such as rest and meal The FLSA establishes minimum wage, breaks. employers must train supervisors that ing to pay workers for pre-shift and post-shift activities, such as computer boot-up and power- overtime pay, record keeping, and any changes to hours worked must be explained down, is also still a hot issue. another common youth employment standards affecting to the employee and the employee must sign off employees in the private sector and in on them. The employer should hold supervisors mistake that the dol and private litigants are federal, state, and local governments. focusing on is the failure to include bonuses accountable for encouraging — or pressuring Covered nonexempt workers in Arizona — employees to work off the clock or not to and commissions when calculating overtime. are entitled to a minimum wage of not accurately record their hours. Wage payments during temporary company less than $7.65 per hour. Overtime shut downs and furloughs has been a hot is“often businesses feel as though they must pay at a rate not less than one and sue, although usually these issues are resolved be in compliance because they have been paying one-half times the regular rate of pay without a lawsuit. cases involving the misuse workers in the same way for years without any is required after 40 hours of work in a problems,” Miller says. “very few businesses are of the tip credit or tip pools have also been on the rise. finally, we continue to see off-the-clock work week. completely in compliance with the wage and cases from employees who work remotely and/ hour laws, however, and an investigation or a or routinely use smartphones.” lawsuit is an expensive way to learn about violations. businesses all of this is a conundrum for employers, considering the chang- that proactively audit their pay practices end up saving a lot of ing face of the economy and the workplace. The dol is encouragmoney in the long run.” ing employers to comply with the fair labor standards act, which was enacted in 1938 when people worked at work. now, thanks to technology, many of us can work anywhere and anytime. to protect themselves, employers of all sizes should engage in serious introspection, doran advises. “an internal wage and hour audit, if not a must, is still the most valuable tool employers have to fend off such claims,” doran says. “annual or bi-annual audits would include analyzing job descriptions and comparing them with what is actually happening in the Doran Balch Quincy Miller workplace day to day; examining timekeeper practices; ensuring 22 AB | September-October 2012

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CREDIT UNIONS by MicHAeL gossie

bankinG on their strenGths credit unions capitalize on consumer dissatisfaction to grow membership, profits

ike many other industries, credit unions in arizona are bouncing back from the economic downturn. credit unions, which are similar to banks in the products and services that they offer except at a slightly lower cost, are taking advantage of consumer disenchantment with big banks to attract new members. according to a recent national credit union administration report, through the first quarter of 2012, credit unions around the country combined for a record 92.5 million members. “as local, member-owned financial institutions, credit unions are simply doing what they have always been good at,” said scott earl, ceo of Mountain West credit union association, a trade organization of credit unions across arizona, colorado and Wyoming. “They have a long history and reputation for providing excellent member service, financial education and a wide variety of financial services to fit their members needs. The recent increased recognition of these qualities and the progress credit unions have made is establishing their success as an industry.” nationally, credit unions generated $2.1 billion in profits and added 667,000 new members in the first quarter of 2012, a 25 percent spike in profits compared with a year earlier. Most large arizona credit unions — including desert schools, truWest, arizona state, credit union West and arizona federal — saw profits roughly double in the first quarter of 2012, compared with earnings from a year earlier. “The word ‘profit’ is a bit of a misnomer,” said Paul stull, senior 24 AB | September-October 2012

vice president of strategy and brand for arizona state credit union. “credit unions do have net income. however, all credit unions are not-for-profit cooperatives. The net income or funds available after expenses are paid become part of a credit union’s capital or are used to build new branches, purchase new technology or offer additional services.” something that arizona state credit union added recently were construction loans to its home loan portfolio in anticipation of an improving economy, as evidenced by the 27 percent growth of new home sales in the first quarter, compared to the prior year. The construction loan program allows members the opportunity to lock in their mortgage rate early and avoid the possibility of fluctuating rates during the construction phase. additional perks to this all-in-one loan include needing to only qualify once, signing one set of loan documents and paying one set of loan fees for both the construction-phase financing and permanent mortgage. “as a local financial cooperative, the credit union is proud to offer low rates and flexible terms on a product that few financial institutions are offering,” said david e. doss, president and ceo of arizona state credit union. “We are excited to add construction loans to our home loan options as it is one more way we can assist members residing in the arizona communities we serve.” a J.d. Power and associates study this year showed that consumer backlash against fees and the perception of poor customer service from some of the bigger banks have caused some consumers to switch to credit unions, whichunlike banks, which are run as private businesses seeking profits, operate as nonprofit entities

CREDIT UNIONS and are technically owned by their members. “Generally credit unions offer lower fees and better interest rates than banks,” stull said. “This is one reason consumers may come to a credit union. We also see many people that switch because they want to do business with a local financial institution that is based in arizona. our deposits are returned to the community in the form of loans than in turn grow jobs and economic development in the communities we serve. Many consumers have made a choice to support local businesses, and credit unions are a great example of that.” While credit unions never issue subprime mortgages, which many experts blame for helping lead the nation into the recession, credit unions did get hit with the impact of the failing economy. one lesson earl said they learned: innovation. “learning to manage resources while providing increased quality of services through the recession has challenged the way credit unions approach problems,” he said. “increased creativity and credit union technology are some of more positive lessons for the long term.” in addition to lower fees and increasing efficiency that is resulting from lessons learned in the wake of the recession, stull said credit unions offer free financial counseling, will help members create a budget to manage their funds, and arizona state credit union’s home affordable refinance Program has allowed homeowners who owe more than the house is worth to refinance and reduce their payments. “choosing a credit union is a win-win situation for consumers,” stull said. “They can get a better rate or lower fees to help them stretch their budgets, and they can benefit their community by doing business with a local financial cooperative that helps create jobs and grow the local economy. you get a good deal and you can feel good about helping your community, too.”

ArizonA’s biggest credit unions

Here are Arizona’s five biggest credit unions, ranked by the number of members: desert schools Federal credit union Number of members: 339,253 Leadership: Susan Frank, president and CEO Valley locations: 50 Web: desertschools.org Arizona Federal credit union Number of members: 177,735 Leadership: Ronald Westad, president and CEO Valley locations: 15 Web: arizonafederal.org

Stull

Earl

Arizona state credit union Number of members: 121,060 Leadership: David Doss, president and CEO Valley locations: 9 Web: azstcu.org Arizona central credit union Number of members: 58,163 Leadership: Todd Pearson, president and CEO Valley locations: 5 Web: azcentralcu.org truWest credit union Number of members: 57,397 Leadership: Dan Desmond, president and CEO Valley locations: 9 Web: truwest.org

26 AB | September-October 2012

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WEALTH MANAGEMENT by MicHAeL gossie

investinG in stability Wealth management companies shift strategies to deal with volatile economy

any investors have struggled as the dynamics the changing global markets and economic uncertainty have made many avoid risk and look for safe places to invest their money. “investors have become more risk-averse and become less trusting of the wealth management industry in general,” said Pat soldano, chairman of Genspring family offices Western region. “They are questioning their advisors more and trying to understand if their advisors are doing what is in the best interest of the investor or the advisor.” The result of that shift made fixed-income the best-performing asset class in 2011, according to the 2012 World Wealth report. “The recent recession and volatile markets has caused many to reconsider their status as an investor or a saver,” said steve taddie, managing partner of stellar capital Management, llc. “Just as positive markets and economic growth can entice savers to become investors, negative action can chase new converts back into savers.” While the economic downturn has turned many investors into savers, experts say the biggest change may be the challenge of our core beliefs in the benefits of asset allocation, a long-term strategy of buy and hold, and frequency in which “black swans” can occur. “a black swan event is a rare event that is very hard to predict and has a big impact when it does happen, such as the global economic crash of 2008,” says dale a. Walters, ceo and chief compliance officer for keatsconnelly. “Though the global crash has caused much financial and emotional stress, from an industry perspective, we should see a maturing that will benefit everyone long-term.”

MANAGING yOUR MONEy

despite the fact that many individuals have kept much of their money in safe assets such as cash in the wake of the recession, experts say it’s still a good idea to reach out to professionals if you want to get the biggest bang for your saved bucks. “The two biggest mistakes people make in managing their assets 28 AB | September-October 2012

on their own is not having a plan to achieve their financial goal or objectives and not allowing discipline and process to trump their emotion,” said richard robinson, chief investment officer with Wells fargo Private bank. “one major study has shown that individual investors miss out on 6 percent to 7 percent per year of equity return due to their emotions. an effective financial advisor can provide a plan and would have the discipline and process to allow their client goals and objectives to be achieved.” but financial advisors are quick to point out that just because you’re letting someone else manage your money, it doesn’t mean that they will take more chances with your money than you would take yourself. “risk management has always been important, but the need for risk management has become much more apparent in the wake of the recession,” said Michael Weigel, senior vice president and managing director of Mutual of omaha bank Wealth Management. “any good wealth strategy should always start with a clear set of investment objectives and a plan for managing risk. financial advisors should monitor asset allocation for each investment objective and make adjustments along the way. There is no one size fits all solution and a good wealth strategy will always take into consideration the risk tolerance and objectives of each individual client.”

WHAT’S TRENDING

dillan Micus, executive vice president for axa advisors, has found that in this market, it is often simply not enough for some investors to diversify assets through the traditional buy-and-hold approach. “one must also consider additional investment philosophies such as tactical (timing and shifting of assets amongst asset classes),” he says, “as well as adding hedges to accounts which, while providing no guarantee of a profit or protection against loss, can offer the potential to help absorb some downside loss.” The biggest trend Micus is seeing is that clients are looking for protection. “in many cases, they want to protect their principal,” he says. “in

other cases they want to protect their retirement income. They have global assets — about 25 percent to 35 percent — since the world become increasingly risk-averse and they are looking for assurances is becoming more global and the fastest growing economies are that regardless of what the next market cycle will look like they will outside the u.s. We are global consumers therefore we should be have a portion of their assets insulated from negative results.” global investors.” during the last few turbulent economic years, taddie has focused robinson says two of the best ways to protect and build wealth is on maintaining high levels of portfolio income for his clients by to reinvest dividends and interest and to rebalance the portfolio to favoring investments that produce above average cash flow levels strategic asset allocation on a regular basis and offer protection from rising inflation. “from the peak of 2007 until the end of 2011, the majority of “These characteristics can be found in dividend paying common well-diversified conservative, moderate and aggressive portfolios stocks, and/or fixed income investments with variable rate and step- have surpassed their previous high water marks,” he says. up coupon features,” he says. taddie adds that you should never pass up the opportunities that Walters is seeing more people as long-term investors in real estate are in plain sight. and not the get-rich-quick schemes that were prevalent in the past. “for example, maximizing contributions to retirement plans, and “five years ago, we thought real estate was overpriced, but we if you have or will have college-bound children, fully fund college are putting more of our clients’ money into real estate now than at education programs,” he advises. “set aside a comfortable safety net, any other point in our history,” he says. so that you are not forced to sell an invest“That being said, we are not getting carment into a weak market if you need liquidity, tHings to do noW ried away. our clients will still have less and as excess capital becomes available, begin Here are tips from financial planning experts than 10 percent in our most aggressive building an after-tax portfolio of high quality about things you can do between now and the end portfolios and most clients will have investments.” of the year to protect or build your wealth: less than 5 percent because of the real if you decide to hire a wealth management Jim bruner, Mutual of Omaha Bank Wealth Man- advisor, industry experts are aware of the estate they already own, such as their first and second homes. We have clients agement: Several tax laws are due to expire at the fact that current clients are more apprehenend of 2012, which could potentially impact gifts, that we prepare tax returns for and sive and less tolerant of risk after seeing capital gain transactions and personal income. It is advise on tax matters only that are putsome of the big drops in the markets and the imperative to consult a wealth management advisor, ting virtually all of their net worth into impact on their wealth. as well as a CPA and tax attorney, to develop a real estate. We believe that putting all “as advisors, we have to stay in touch with strategy for protecting their wealth. of your eggs in one basket is not a good each client and adapt to their evolving objecmark mushkat, senior advisor, Western Region, decision, regardless of the basket.” tives and risk tolerance,” stresses Michael GenSpring Family Offices: Take advantage of the $5 Weigel, senior vice president and managing million per person gift tax exemption, by using as START BUILDING director of investment Management services much of it as practicable, based on their spending if you’re someone who is starting to for Mutual of omaha bank Wealth Manneeds, before it may go away at the end of 2012. This agement. “The client is the driver, not the worry about protecting and building will take assets out of their estate that would other be wealth, experts say the first step is to markets. We take a balance sheet approach subject to a 35 to 55 percent estate tax at their death. to constructing portfolios for our clients, make sure that you have the proper dale Walters, KeatsConnelly: If you believe the asset allocation. managing their assets and obligations in the future will include higher income taxes and a lower “a typical rule of thumb states that short-term, mid-term and long-term, accordestate tax exemption, you would want to accelerate you should subtract your age from 110 ing to their objectives. This approach allows income into this year, while the tax rates are lower. and this should be the percentage of us to respond to our clients’ evolving needs You also might want to reconsider if your dividend your portfolio in equities,” robinson and objectives. so while our clients’ objecpaying stocks is still the best way go, as rates on says. “additionally, a well-diversified tives may change, our client-driven approach dividends go from 15 percent to 38 percent or higher. does not.” portfolio should have allocations to

Soldano

Bruner

Taddie

Walters

Mushkat

Micus

Robinson

Weigel

Individual investors miss out on 6 percent to 7 percent per year of equity return due to their emotions.

—richard robinson

AB | September-October 2012 29

WEALTH MANAGEMENT

5 techniQues for 2012 estate PlanninG The current economic conditions and transfer tax rules may provide a unique opportunity in 2012 for taxpayers to consider estate and gift tax planning strategies. legislation has dramatically changed transfer tax rules repeatedly over the past several years, complicating tax planning and adding uncertainty. to leverage the current tax rules and economic conditions, Jeff singleton, manager of tax services at Grant Thornton, suggests that taxpayers use these five estate planning techniques:

GrantOr retained annuitY trust:

This is a trust that pays an annuity to the grantor based on the value of the assets when the trust is formed and then passes the principle to beneficiaries at the end of the trust term. The amount transferred to the trust that is considered a gift for gift tax purposes is based on a calculation of the remainder interest — how much is expected to be left at the end of the trust term, when the trust is formed. The calculation is based on interest rates, which are at historic lows. it is possible to set up a Grat so that remainder interest is at or near zero, there is no gift tax consequence, and any leftover principle is passed on tax-free.

sales tO intentiOnallY defeCtiVe GrantOr trusts:

This may allow you to “freeze” the value of appreciating assets for estate and gift tax purposes. The grantor sells an appreciating asset to an idGt, and in exchange, the grantor receives a promissory note with a face value equal to the fair market value of the asset on the date it is sold. if the idGt and the promissory note are properly structured, the grantor’s sale of assets to the idGt and the idGt’s repayment of the promissory note are nontaxable events for federal income tax purposes. 30 AB | September-October 2012

transfers tO a faMilY liMited PartnershiP:

This may enable you to transfer assets at transfer tax discounts. The valuation of a partnership as a whole is based on the value of the assets owned by the partnership. When valuing limited partnership interests, discounts from the proportionate value of the underlying assets are generally available for lack of control and lack of marketability. so an flP arrangement can generate valuation discounts for gift, estate and Gst tax purposes on the transfer of the limited partnership interests.

4. 5.

dYnastY trusts:

This allows assets to skip several generations of taxation. you can fund the trust either during your lifetime by making gifts or at death in the form of bequests. The trust remains in existence from generation to generation. because the heirs have restrictions on their access to the trust funds, the trust is excluded from their estates.

transfers tO a Charitable lead trust: This is a trust in which an annuity or unitrust interest is paid to one or more charitable beneficiaries and the remainder interest is paid generally to the grantor’s heirs when the trust is terminated. a clt can use an annuity (a “clat”) with an amount set so that the present value of the charitable lead interest equals the value of the property transferred to the trust. as a result, the gift or estate tax charitable deduction equals the value of the transfer, and no gift or estate tax is imposed on the present value of the remainder interest.

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WEALTH MANAGEMENT by MicHAeL gossie

financial Wellness ProGraMs Pay off

t’s not just the ceos that need help managing their money. as the recession impacted everyone from managers to mailroom employees, more business are working with employees and members of the community to help them get out of financial trouble and educate them on how to improve their financial health. a perfect example is harrah’s ak-chin hotel and casino. “We were evaluating the progress of our wellness program and looking for additional wellness opportunities for our employees,” said beth amoroso, director of human resources at caesars entertainment/harrah’s ak-chin. “during that evaluation, it became very evident that one area not focused on was our employees’ financial well-being ... overall, when employees are struggling with financial problems, it causes them undo stress, which can affect both personal and work life.” to address the concerns, harrah’s started to offer employees and members of the ak-chin community the opportunity to enroll in dave ramsey’s core financial Peace Program. since september of 2011, more than 75 participants have completed two of the 13-week programs. “My husband and i did not know how to budget, never were taught how to budget, spent our money on whatever we wanted, maxed out every credit card, lived paycheck to paycheck, many times found ourselves paying overdraft fees ... we were terrible,” said one woman who completed the financial Peace Program. “We were on the verge of losing our home. taking the tips and lessons from the program saved us from losing our home.” The results of harrah’s program have been a resounding success for participants. The first group of 40 participants was able to save $59,400 and paid off $48,007 in debt over the 13 weeks. Partici32 AB | September-October 2012

businesses help educate employees on how to effectively manage their money pants complete the majority of the program online, so they can do it from home or work. Then, the class meets once a week together to discuss the major lessons. “coming into the program, most of the people were convinced that they would never be able to live debt-free or even have enough money to retire,” amoroso said. “now, they are well on their way to getting their debt paid off as well as having a goal for their retirement account. Participants have a new way of viewing their finances instead of living in the moment and making sponta-

When employees are struggling with ﬁnancial problems, it causes them undo stress.

—beth amoroso

neous buying decisions that could lead to additional debt.” While the classes have meant better financial health for employees who complete the course, the program is good for the business’ bottom line, too. “by offering this to our employees, it has helped eliminate external stress which has resulted in people being happier at work and giving greater customer service,” amoroso said. “additionally, employee turnover is reduced due to employees focusing on their career instead of looking for the next job that will pay a little more to assist them in paying off debt.”

COMING NEXT ISSUE

November/December 2012

ARIZONA BANKERS ASSOCIATION

Financial institutions bounce back after recession.

CORPORATE ANGELS

Why volunteerism is good for business.

VALLEY FORWARD

Ground-breaking environmental group looks to improve transportation.

CFO OF THE YEAR AWARDS Arizona’s top CFOs earn recognition.

TOURISM

Three major Valley resorts celebrate 10 years in business.

BRANDING AZ

Who has the best marketing campaigns in Arizona?

AzBusinessMagazine.com

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AB | September-October 2012 33

ECONOMIC ENGINES by MicHAeL gossie

DriViNg tHe ecoNoMy

innovation is the common denominator among arizona’s economic engines

hen arizona became a state 100 years ago, it was easy to identify its economic engines, those industries, innovators and locations that drove the state’s economy and employment. They all started with c — copper, cotton, citrus, cattle and climate. a decade later, it’s not so easy. “We must find ways to diversify our economy, including investing in bioscience and technology, health science and innovation,”

34 AB | September-October 2012

Phoenix Mayor Greg stanton says. “We are coming out of the recession, and we need to move forward in a strategic way.” today’s economic engines are doing just that. They innovate, they collaborate, and the only one that starts with c is cityscape, and the only copper you’ll find there is copper blues rock Pub and kitchen and the cotton is at urban outfitters. but today’s economic engines have the clear vision and direction for driving arizona’s economy during its second century.

the biOdesiGn institute at asu

What it is: The biodesign institute at asu addresses today’s critical global challenges in healthcare, sustainability and security by developing solutions inspired from natural systems and translating those solutions into commercially viable products and clinical practices. Economic impact: The biodesign institute has met or exceeded all of the business goals set in mid-2003 by attracting more than $300 million in external funding since inception, and generating more than $200 million in proposals advanced in 2011 alone. Companies it has helped grow: licensed next-generation respiratory sensor technology to a european medical device developer; executed an exclusive license agreement for dna sequencing technology to roche, which includes a sponsored research agreement to develop devices in collaboration with roche and ibM; and launched two biodesign commercial translation companies. Latest news: led by electrical engineer, nongjian tao, asu researchers have formulated a new sensor technology that will allow them to design and create a handheld sensor that can contribute to better diagnosis of asthma. Michael Birt, director of the Center for Sustainable Health at the Biodesign Institute at ASU: “by establishing biosignatures centers, we hope to build a global network that will provide the scale necessary to overcome scientific limitations while creating a global platform to share methods, results and experiences.”

ing cityscape home include alliance bank, cantor law Group, fidelity title, Gordon silver, Gust rosenfeld, Jennings, strouss and salmon, Plc, Polsinelli shughart, red development, squire sanders and unitedhealthcare. Latest news: The 250-room boutique hotel, hotel Palomar Phoenix by kimpton, opened in June. Jeﬀ Moloznik, general manager, CityScape: “The most progressive and entrepreneurial talent in the valley have convened at cityscape. The impact our tenants’ businesses have brought to downtown Phoenix is noticeable and significant. in an area that once lacked a central core, there is now energy, creativity, enterprise and excitement all day, every day in once central location.”

intel

What it is: intel is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s computing devices. Economic impact: since 1996, intel has invested more than $12 billion in high-tech manufacturing capability in arizona and spent more than $450 million each year in research and development. intel is investing another $5 billion in its chandler site to manufacture its industry-leading, next-generation 14 nanometer technology. Companies it has helped grow: intel has been a catalyst for helping to create chandler’s “tech corridor,” which includes freescale, Microchip technology, orbital sciences, avnet, amkor, and Marvell technologies. Latest news: intel and asu’s college of technology and innovation (cti) are developing a customized engineering degree for some of the chip maker’s arizona-based employees. The program is based on cti’s modular, project-based curriculum and upon completion will provide a bachelor’s of science in engineering degree from asu, with a focus in materials science. Chandler Mayor Jay Tibshraeny: intel likes the partnership it has with chandler, likes doing business in arizona, and they’re a very good corporate citizen.”

PhOenix Mesa-GateWaY airPOrt

CitYsCaPe ▲

What it is: a highrise mixed-use development in downtown Phoenix consisting of residential, retail, office and hotel components. The project covers three downtown Phoenix city blocks and is located between first avenue and first street, and between Washington and Jefferson streets. Economic impact: officials credit the evolution of downtown Phoenix — led by cityscape — with helping the valley land the 2015 super bowl, which will bring an economic impact of an estimated $500 million. Companies it has helped grow: in addition to entertainment venues and top-notch restaurants, business leaders call-

What it is: formerly Williams Gateway airport (1994–2008) and Williams air force base (1941–1993), it is a commercial airport located in the southeastern area of Mesa. Economic impact: The airport helped generate $685 million in economic benefits last year, and the airport supports more than 4,000 jobs in the region. Companies it has helped grow: able engineering & component services, cessna, hawker beechcraft, embraer, cMc steel, trW vehicle safety systems inc. Latest news: The airport authority’s board of directors announced Monday the airport will undergo a $1.4 billion expansion. There is also an effort to privately raise $385 million to build two hotels and office and retail space near the airport. Mesa Mayor Scott Smith: “Phoenix-Mesa Gateway airport has gone through tremendous growth and expansion and has truly arrived as a major transportation center in the valley.” AB | September-October 2012 35

ECONOMIC ENGINES

translatiOnal GenOMiCs researCh institute

skYsOnG ▲

What it is: a 1.2-million-square-feet mixed use space that gives entrepreneurs and innovators the resources they need to grow and thrive, and provide them an exceptional home for when their businesses begin to take off. Economic impact: Projected to generate more than $9.3 billion in economic growth over the next 30 years, according to an updated study by the Greater Phoenix economic council. Companies it has helped grow: emerge.Md, channel intelligence, adaptive curriculum, alaris, Jobing.com/blogic, webfilings. Latest news: Jobing, an online company that connects employers and job seekers nationally, relocated its corporate headquarters from Phoenix to skysong. Scottsdale Mayor Jim Lane: “it is hard to think of a business attraction initiative the city has recently used that has not mentioned skysong as a major attribute. skysong has a national reputation and as it grows it will continue to elevate scottsdale’s standing.”

talkinG stiCk

What it is: This economic engine encompasses a complex that includes the 497-room talking stick resort, casino arizona at talking stick resort, talking stick Golf club, and salt river fields at talking stick, the spring training home of the colorado rockies and arizona diamondbacks. Economic impact: salt rivers fields at talking stick accounted for 22 percent of the the attendance for cactus league baseball, which generates more than $300 million a year on economic impact to the greater Phoenix metropolitan area economy. Companies it has helped grow: in 2011, nearby scottsdale Pavilions — which features 1.1 million square feet of select retail and mixed-use properties — became The Pavilions at talking stick. “our retail scene will clearly complement the activities going on next door,” said chuck carlise, president of de rito Partners development, inc. Latest news: salt river fields at talking stick will be one of the ballparks selected to host the first round of the 2013 World baseball classic in the spring. David Hielscher, advertising manager, Casino Arizona and Talking Stick Resort: “our property’s diverse, entertainment-driven culture and convenient locations allow us limitless opportunities for future expansion and development.” 36 AB | September-October 2012

What it is: tGen is a non profit genomics research institute that seeks to employ genetic discoveries to improve disease outcomes by developing smarter diagnostics and targeted therapeutics. Economic impact: tGen provides arizona with a total annual economic impact of $137.7 million, according to the results of an independent analysis done by tripp umbach, a national leader in economic forecasting. Companies it has helped grow: tGen researchers have collaborated with scottsdale healthcare, virginia G. Piper cancer center, Mayo clinic, ascalon international inc., Mcs biotech resources llc, semafore Pharmaceuticals inc., silamed inc., stromaceutics inc., syndevrx inc., and translational accelerator llc (trac) and many others. Latest news: When tGen-generated business spin-offs and commercialization are included, tripp umbach predicts that in 2012 tGen will produce $47.06 for every $1 of state investment, support 3,723 jobs, result in $21.1 million in state tax revenues, and have a total annual economic impact of $258.8 million. Michael Bidwill, resident of the Arizona Cardinals: “tGen is one of this state’s premier medical research and economic assets, and is a standard-bearer for promoting everything that is positive and forward-looking about arizona.”

uniVersitY Of arizOna’s teCh Park

What it is: The university of arizona science and technology Park (ua tech Park) sits on 1,345 acres in southeast tucson. almost 2 million square feet of space has been developed featuring high tech office, r&d and laboratory facilities. Economic impact: in 2009, the ua tech Park and its resident companies had an economic impact of $2.67 billion in Pima county. This included $1.81 billion in direct economic impacts such as wages paid and supplies and services purchased and $861 million in indirect and induced dollar impacts. in total, the tech Park and its companies generated 14,322 jobs (direct, indirect, and induced). Companies it has helped grow: ibM, raytheon, canon usa, citigroup, nP Photonics, and dilas diode laser. Latest news: a 38.5-acre photovoltaic array is the latest addition to the solar zone technology demonstration area at tech Park. Power generated from the facility will be sold to tucson electric Power co., providing power for about 1,000 homes. Bruce Wright, associate vice president for University Research Parks: “by 2011, the park had recaptured this lost employment (resulting from the recession) with total employment increasing to 6,944. in addition, the number of tenants had expanded from 50 to 52 reflecting the addition of new companies in the arizona center for innovation and the development of the solar zone at the tech Park.”

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Investing in Arizona Intel is investing more than $300 million to build a new research and development facility in Chandler. Since 1996, Intel has invested more than $20 billion in manufacturing in Arizona. That means thousands of valued jobs for the community.

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8/20/12 4:56 PM

AB | September-October 2012 37

EDUCATION

by MicHAeL gossie

froM classrooM to conference rooM as businesses move from recession to recovery, executives look to broaden knowledge base

he economic downturn created new levels of pressure that businesses never experienced. costs had to be contained. operations had to be streamlined. The workforce had to be as lean and as efficient as possible. it created pressure and questions for employees, too, as they questioned whether or not they had the skill sets necessary to survive and thrive during any economic crisis. “We have seen a number of people enter our ken blanchard executive Mba and Mba program as a response to the most recent (economic) downturn,” says kevin barksdale, dean of the ken blanchard college of business at Grand canyon university. “some have done so because they had become unexpectedly unemployed. others as a hedge against that possibility.” one thing educators say you can bank on, though, is that in the wake of the recession, fewer firms are paying for school. “The current economic conditions have created more of a ‘hirers’ market and firms are looking for more educated people for their

talent pool,” says bill berry, dean of the university of Phoenix school of business. “These firms are paying less for education, but still want a well-educated workforce.” as a result, valley educators who cater to executives who aspire to prepare themselves for new levels of leadership have had to learn to become more nimble and adaptable with their curriculum and methods. “The environment has been so unstable and change has become so constant,” barksdale says, “that we have had to be willing to move quickly to support our executive students.”

MASTERING A NEW PROGRAM

one new program that is catering to the changing demands of the workforce and need for immediacy in the business community is the Master’s in Management (MiM) program at arizona state university’s W. P. carey school of business. The program launches this semester. (MiM) degrees are shortened programs that cost less, don’t require years of work experience, and provide recent graduates

HERE ARE THE COLLEGES AND UNIVERSITIES IN ARIZONA THAT OFFER POST-GRADUATE PROGRAMS: Argosy University (602) 216-3118 argosy.edu number of campuses: 1 online classes: Yes Highest degree offered: Doctorate Leadership: Norma Patterson, vice president of academic affairs 38 AB | September-October 2012

Arizona state University (480) 965-7788 asu.edu number of campuses: 4 online classes: Yes Highest degree offered: Doctorate Leadership: Michael Crow, president

A.t. still University (480) 219-6000 atsu.edu number of campuses: 1 online classes: Yes Highest degree offered: Doctorate Leadership: Jack Magruder, president

devry University (602) 870-9222 devry.edu number of campuses: 4 online classes: Yes Highest degree offered: Master’s Leadership: Craig Jacobs, president

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CSUGlobal.edu | Contact an advisor at 800.920.6723 for more information. AB | September-October 2012 39

EDUCATION

with the business fundamentals they will need to launch themselves into the workforce faster than Mba programs. a survey by the Graduate Management admission council (GMac) reports a 69 percent spike in applications for MiM programs in the united states. “GMat takers and Mba applicants are getting younger and have less experience, signaling an increased demand for graduate business training without the work experience typically associated with an Mba,” says dawn feldman, executive director of the center for executive and Professional development at the W. P. carey school of business. “in addition, employers have been indicating they need employees with strong problem-solving skills and fundamental business knowledge. our MiM program is just nine months long and helps new grads to complement their existing knowledge from other fields with a basic business foundation. MiM programs already have a long record of success with students and employers in other areas of the world, such as europe. We’re enthusiastic about the diversity of our incoming class.” asu’s MiM program is designed to take aspiring entrepreneurs and students from non-business backgrounds and teach them real-world skills that can immediately be translated and applied to a professional work environment and give them an edge in the competitive job market. The university of Phoenix also offers its own Master of Management degree. “because university of Phoenix adapts our course curriculum based on changing industry trends and skills employers are looking for in their workforce,” berry says, “the Master of Management degree is best fitting with the stated needs of today’s employers focusing on the skills required to work in a highly collaborative and culturally diverse organization.” While those entering the workplace are looking for an edge on the competition, developing talent already working in the trenches

was something that was a luxury during the economic downturn. but as the economy transitions from recession to recovery mode, businesses are starting to focus on positioning themselves for future growth and developing internal talent. “in the last six months we’ve seen a real increase in the number of organizations inquiring about leadership development opportunities for their employees,” feldman says. “They know that their internal efforts alone aren’t enough. They’re seeking opportunities to develop people by exposing them to the business perspectives and practical knowledge that faculty at the W. P. carey school of business are uniquely positioned to share.” With that in mind, the center for executive and Professional development created the leadership development Workshops, a series of five standalone courses on topics that range from driving employee engagement to leading effective team processes. The workshops are designed for managers, project leaders, and those looking to advance into management roles. They can provide a strong foundation for seasoned professionals who have little formal management education. “W. P. carey faculty are recognized worldwide for their research and thought leadership,” according to Gerry keim, chairman of the department of management. “yet it’s their skill at bringing new trends and best practice discussions into the classroom, focusing on the practical application of concepts in the current business environment, that makes the W. P. carey school an incredible resource for managers and executives.” The 2012 workshop topics include driving employee engagement, effective negotiations, inspiration and Motivation as leadership tools, harvesting knowledge from frontline employees, and leading effective team Processes. topics for the 2013 workshops are being developed. “Whether individuals attend all five or just one workshop, they will come away with new skills and approaches to business practices that will ultimately positively affect their employees and their organization’s bottom line,” feldman says.

Grand canyon University (800) 800-9776 my.gcu.edu number of campuses: 1 online classes: Yes Highest degree offered: Doctorate Leadership: Brian Mueller, CEO

northern Arizona University (928) 523-9011 nau.edu number of campuses: 34 online classes: Yes Highest degree offered: Doctorate Leadership: John Haeger, president

HELPING LEADERS SURvIvE

40 AB | September-October 2012

midwestern University (623) 572-3200 midwestern.edu number of campuses: 1 online classes: No Highest degree offered: Doctorate Leadership: Kathleen Goeppinger, president and CEO

ottawa University (800) 235-9586 ottawa.edu number of campuses: 3 online classes: Yes Highest degree offered: Master’s Leadership: Mary Vanis, campus executive

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AB | September-October 2012 41

EDUCATION

THE BOTTOM LINE

regardless of what route business executives take to get there — whether it’s a workshop or going back to school to get and Mba — educators say the current focus of executive education is on the practical application of knowledge. “executives want learning opportunities that build capabilities and immediately allow participants to do their jobs better,” feldman says. “second, technology has given us the opportunity to build engaging learning experiences that connect people regardless of location, so online programs mirror the way work is done in today’s global business environment.” The availability on online education has made it easier than ever for executives to expand their knowledge base. “our eMba is an accelerated and blended model with face-toface interaction during three distinct residencies and online learning in between,” barksdale says. “our Mba programs are offered face to face — traditional style — and online.” in addition to the online options available, barksdale says he has observed another change in executive education. “i think the biggest shift has been the increased desire on the part of the student to learn more about themselves, their personal styles, and subsequently their leadership skills,” barksdale acknowledges. “We have found executive learners to be more open than ever to receiving critical feedback with respect to how they lead and what might need to change.” While executives may see furthering their education as a solo endeavor, educators urge them to seek out the guidance of others before embarking on their journey. “seek advice from your personal board of directors,” barksdale says. “discuss the reasons you want to go back to school. What would you do with the new knowledge? talk to students in the programs you are considering. ask them questions around the curriculum, the learning environment, and the learning culture. consider whether the programs you are looking at devote significant time to leadership development or not. This to me is critical in the life of an executive. finally, some people might suggest to choose a program that fits your lifestyle. While this is not bad advice, i might add that if you are looking for the Mba or graduate degree to be a transformational journey, perhaps you might consider a program that intentionally alters your lifestyle. The disruption can be a good thing if you use it to re-focus and re-center your career and life trajectory.”

The W. P. Carey School of Business contributed to this story. To learn more, visit knowwpcarey.com.

thunderbird school of Global management (602) 978-7000 thunderbird.edu number of campuses: 1 online classes: Yes Highest degree offered: MBA Leadership: Angel Cabrera, president 42 AB | September-October 2012

Program helPs leaders of small businesses

The fifth annual Small Business Leadership Academy at the W. P. Carey School of Business at ASU helps small business owners and executives learn how to improve efficiency, streamline operations and raise profits. “Classes are held just one night per week, so they fit right into busy executives’ schedules,” said Dawn Feldman, executive director of the W. P. Carey School of Business Center for Executive and Professional Development, which hosts the program. “Participants not only take away great business knowledge, but also a new support network of peers that will exist long after the program is over.” Salt River Project (SRP), the program’s founding co-sponsor, offers a number of scholarships to its current suppliers and small business customers. “The academy offers an outstanding opportunity for small business owners to gain knowledge from highly acclaimed professors and establish lasting relationships with other community small business owners,” said Carrie Young, senior director, corporate operations services for SRP. “The partnership we have with ASU, coupled with the sponsorship and scholarships we offer to the academy, is a natural fit for SRP in supporting economic development within our own community.” As part of a larger partnership with ASU focused on small business support, JPMorgan Chase is also a top sponsor, providing 15 scholarships to the academy. “As Arizona’s number one SBA lender, we know how important small businesses are to our economy,” said Joe Stewart, chairman and CEO of JPMorgan Chase in Arizona. Participants must come from companies that have been in business for at least three years; have annual revenues between $1 million and $10 million; and have fewer than 100 employees. For more information, call (480) 965-7579, email wpcarey.execed@ asu.edu or visit wpcarey.asu.edu/sbla.

University of Arizona (520) 621-1162 arizona.edu number of campuses: 2 online classes: Yes Highest degree offered: Doctorate Leadership: Eugene Sanders, president

University of phoenix (480) 557-2000 phoenix.edu number of campuses: 5 online classes: Yes Highest degree offered: Doctorate Leadership: William Pepicello, president

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AB | September-October 2012 43

AZTECH: AEROSPACE By MICHAEL GOSSIE

the race for aerosPace arizona’s selection as an unmanned aircraft test site could help the state’s economy soar and boost its aerospace industry as the dod cuts back

Arizona is one of 35 of states that want to be one of six FAA test sites for unmanned aircraft.

he next several months could change the face of arizona’s aerospace industry. “With looming federal budget cuts, arizona’s defense and aerospace manufacturers stand to face some big changes,” said Glenn hamer, president and ceo of the arizona chamber of commerce and industry. “it is incumbent upon our leaders to continue to position our state as a leader in this field by aggressively pursuing unmanned aerial systems (uas) flight testing, research and manufacturing in arizona.” unmanned aircraft system is the official federal aviation administration (faa) term for an unmanned aerial vehicle. and the reason they are relevant right now is because congress has mandated that the federal aviation administration (faa) designate six uas test sites to provide data to safely integrate uas into the nation’s airspace by 2015. arizona is one of 35 of states that want to be one of those six test sites. The faa is scheduled to announce the six sites selected by the end of december. “These are very intelligent systems,” said vicki Panhuise, chairman of the arizona aerospace and defense commission. “They have lots of capabilities. They are still piloted, but there isn’t a pilot in the air. There is a pilot on the ground controlling the flight and that pilot faces the same certification requirements as pilots in the air.” all the regulations that now guide aircraft are based on having a pilot in the cockpit, someone in the aircraft who can see what’s going on around them. “even with all the technology available in today’s aircraft, the pilot relies on his or her ability to see and avoid,” Panhuise said. “uas 44 AB | September-October 2012

rely on their ability to sense and avoid. regulations for uas have to be developed so that uas can safety share the airspace with piloted aircraft.” for arizona, selection as an uas test site is important because it could mean an economic boost for the state’s aerospace industry at a time when the department of defense is cutting back. “The advent of unmanned aircraft systems (uas) in the defense sphere is extremely exciting for arizona manufacturing,” hamer said. “The arizona Manufacturers council is working with the arizona aerospace and defense commission and other stakeholders to secure arizona’s position as a leading location for research and development, manufacturing, and testing of uas, and we are supporting arizona’s proposal to be designated by the faa as a national uas testing area.” The economic impact of aerospace and defense in arizona is undeniable. arizona is home to 37 defense-related companies, which employ more than 35,000 residents — with an average annual total compensation of $109,000, more than twice the statewide average for all employed individuals — and create a gross economic impact of $8.8 billion. Throw in the military’s presence in the state — 96,000 jobs and an annual economic impact of $9.12 billion — and it’s easy to see why becoming an uas test site is critically important to sustaining this important sector of arizona’s economy. and everyone — from government agencies to economic development groups to educational institutions — are doing everything they can to ensure the aerospace and defense industry’s continued success in arizona. in addition to educating and preparing the next generation of innovators, arizona’s colleges and universities are partnering with private industry and are engaged in research activities that

aim to fill the future needs of agencies like nasa and the u.s. departments of defense and homeland security. The state hosts a broad range of aerospace and engineering research facilities, including the arizona laboratories for security and defense research, and robust academic research at the university of arizona, arizona state university, embry-riddle aeronautical university and northern arizona university. additionally, cochise college’s northrop Grumman innovation campus offers associate degrees in uas flight operations and system technicians. but the key to arizona’s aerospace and defense future may rest in its ability to become one of the six faa-approved test sites for uas. “We have seen a large amount of growth in the area of unmanned aircraft,” said toni beutel, business manager for the attack helicopter programs at boeing in Mesa. “The goal of any military operation is to take the soldier out of harm’s way. unmanned aircraft accomplishes that goal.” to put arizona in its best position to become one of the six selected uas test sites, the arizona aerospace and defense commission (aadc) — headed up by Panhuise — and the arizona commerce authority (aca) established the unmanned aircraft systems arizona advisory committee. The committee’s task is create and communicate a shared uas vision for arizona. “We are trying to build a plan around arizona’s assets and abilities because we really have so much to offer,” Panhuise said. “arizona already has the largest uas test site for the department of defense (dod). More than 10,000 uas-certified pilots have been trained at fort huachuca. it gives us a wonderful workforce pool to draw from.” The key feature of the committee’s plan is aligning arizona’s strengths — geography, climate, weather, restricted airspace, uas history, assets, academia, industry — with the faa’s needs, and meeting with arizona’s stakeholders to align messages and support. “We have 100 percent bipartisan support for our proposal,” Panhuise said. We have both sides of the ticket behind us. We have support from the legislature and from the mayors. The feedback we’ve received in that the faa will be looking for proposal with universal support, so having the strong regional and statewide approach that we have will play much better than a local approach.” The arizona contingent is building its proposal around a “center of excellence” or “hub and spoke” approach, with multiple test sites planned for a single arizona test range. “uas come in all sizes and varieties,” Panhuise said. “There is everything from what looks like a four-pound flying beer can to aircraft with very large wingspans that need a lot of airspace. There are a lot of different requirements. arizona can cover all of those requirements.” The other thing arizona is going to have to cover: The cost of building all the infrastructure required to become a uas test site. “These are all authorization bills we are talking about, not appropriation bills,“ Panhuise said. “There are no dollars involved in this decision. The faa has no funding to build the necessary infrastructure or to pay for infrastructure. They are expecting economic development groups and industry to do that for them.” Panhuise pointed out that while it might be a short-term dilemma to figure out how arizona will pay for the infrastructure needed

to become a uas test site, once it’s paid for, it will open more doors for economic development groups like GPec and the aca to draw new businesses and start-up companies to arizona. “one of the things the faa is looking for is geographic and climactic diversity,” Panhuise said. “arizona has got that covered. We can put test sites together that provide the faa with significant diversity. The only thing we can’t do in this state is arctic or maritime.”

ArizonA’s MAJor PLAYers Here are the five biggest companies in Arizona’s defense and aerospace industry: raytheon Missile systems: Headquartered in Tucson with 11,500 Arizona employees, Raytheon Missile Systems designs, develops, and produces weapon systems for the U.S. military and the armed forces of more than 50 countries. Honeywell international: With more than 9,700 employees at 21 Arizona facilities, Honeywell International contracts with the Department of Defense through both their Aerospace and their Automation and Control Solutions business units. In particular, Honeywell Aerospace is headquartered in Phoenix, with major facilities in Tempe, Glendale and Tucson. general dynamics: With more than 5,000 employees at its Scottsdale headquarters, General Dynamics C4 Systems specializes in command and control, communications networking, computing and information assurance for defense, government and select commercial customers in the U.S. and abroad. boeing: The company’s 4,800-employee Defense, Space & Security facility in Mesa is best known for producing the AH-64 Apache attack helicopter for the U.S. Army. Additional work at the Mesa facility includes production of electrical subassemblies for the F/A-18, F-15 and C-17 aircraft. orbital sciences corp.: With about 1,400 employees at its facilities in Chandler and Gilbert, Orbital develops and manufactures small- and medium-class rockets and space systems for commercial, military and civil government customers. Orbital also provides satellite subsystems and space-related technical services to U.S. government agencies and laboratories.

AB | September-October 2012 45

AZTECH: LAW By MICHAEL GOSSIE

the laW and technoloGy from piracy to privacy, changes in technology will usher in the law

e all know how quickly technology is changing. but how will changes in technology affect changes in the law? as arizona enters its second century, three arizona attorneys weigh in on the legal changes they see coming as technology continues to rock our world.

Walsh

Cai

Cummerford

Cheryl Walsh, shareholder, burch & Cracchiolo, P.a.: Just 107 years ago, the Wright brothers flew a plane for the first time. Who could have imagined then that we would have the technologically-rich world we have today? With that in mind, we do have technological advancements in our midst today that are ripe for challenge and examination. for instance, access to information and data as a result of technology can increase safety and efficiency of law enforcement substantially; however, privacy and personal rights must be balanced in the process. The supreme court will be tackling this issue in the current session by considering the admissibility of GPs tracking device information obtained without a warrant. cameras are everywhere and soon we will enter 46 AB | September-October 2012

our homes and businesses with eye recognition technology that will make the individuality of fingerprinting more obsolete than ever. Protecting our rights while advancing our civilization is a delicate balance. Yu Cai, associate in Polsinelli shughart’s science and technology practice group: intellectual property development and protection will become an essential part of any business plan. Particular attention must be paid to the recent change in patent law from “first to invent” to “first to file,” requiring earlier interaction and involvement between inventors and their legal representatives. john e. Cummerford, co-managing shareholder, Greenberg traurig: until fairly recently, “privacy” — as we think of it today — was a rare commodity. The word “privacy” doesn’t even appear in the constitution, no doubt because it was so uncommon when the constitution was drafted. technology has sharply reduced — and in my view, will soon eliminate — the whole notion of personal privacy. naturally, this will cause a lot of worry and fear. but, when nobody’s privacy is safe, how will that affect our own inclination to invade the privacy of others? i think it will cause people to actually become more respectful of others, and will — for lack of a better term — cause them to avert their eyes. That is, will the muck-raking reporter who makes a living ferreting out scandals and embarrassing others really want someone to find out, say, his own bank balance, or what websites he has visited, or with whom he has been keeping company and put that information on the Web? Probably not, although that information may be readily available. and so, i think that recognition that we are all vulnerable to invasions of privacy will foster more civility and — dare i say — more kindness among people. and that will be a good thing indeed.

influential iP attorneys Here are five go-to intellectual property attorneys who help Arizona innovators, entrepreneurs and companies protect their ideas: Ari M. Bai Polsinelli Shughart (602) 650-2061 polsinelli.com Bai has extensive experience preparing and prosecuting patents related to mechanical and electrical engineering inventions with a special emphasis on medical devices, thermal control systems and software inventions.

Since 1967, we have taken pride in representing generations of local families and businesses, from every day matters, to the high profile cases. Whether your problem is big or small, we are here for you from Generation to Generation.

AREAS OF PRACTICE Business & Personal Litigation Family & Divorce

George C. Chen Bryan Cave LLP (602) 364-7367 bryancave.com Chen partners with long-term clients to develop, protect, enforce, defend, license, and commercialize intellectual property and other business assets. His practice includes litigation, licensing, counseling, and prosecution of patent, trademark, copyright, trade secret, unfair competition, Internet, cybersquatting, and other intellectual property matters.

Business Formation & Counseling Estate Planning & Trust Administration Criminal & DUI Probate & Guardianship/Conservatorship

Robert J. Itri Gallagher & Kennedy (602) 530-8019 gknet.com Itri concentrates his practices in the area of intellectual property (copyright, trademark, trade secret and patent) litigation, licensing and protection. He has counseled start-up and Fortune 1000 companies in the protection and monetization of their established and emerging technologies. A.J. Moss Squire Sanders (602) 528-4839 squiresanders.com Practice includes all areas of intellectual property, particularly U.S. and foreign patents (in aerospace, electronics, software and biotech systems) and U.S. and foreign trademarks. Richard E. Oney Tiffany & Bosco, P.A. (602) 255-6094 tblaw.com Engineering background and in-depth experience protecting technology assets, including litigation, transactions and patents involving Internet, electronics, business methods, software and mechanical, medical, and pharmaceutical technologies.

Co-Founders C.D. Owens, Esq. Michelle J. Perkins, Esq.

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

f: 480.941.2215

www.oplaw.com Shahpar Shahpar Tiffany & Bosco, P.A. (602) 255-6020 tblaw.com Using her background as an electrical engineer, Shahpar counsels clients on a strategic plan to protect and exploit patents in software, technology, and business methods.

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 | September-October 2012 47

AZTECH: ENERGy

By MICHAEL GOSSIE

de blasi

davey

let there be liGht arizona energy consortium outlines roadmap that will bolster the state’s energy industry

he arizona energy consortium — co-chaired by Michelle de blasi, a shareholder at Greenberg traurig, and chris davey, executive director of enviroMission inc., developer of the iconic solartower — is putting the finishing touches on its energy roadmap, which the group hopes will bolster the state’s energy industry like the bioscience roadmap has sparked the bio industry in arizona. az business magazine recently spoke with de blasi and davey about what business leaders can expect to hear when the roadmap is released.

Q a

uestion: When do you hope to release the energy roadmap?

nswer: The energy roadmap is expected to be released on sept. 15, followed by an extensive education and promotional series of meetings both within the aec and with stakeholders.

Q a

: What short-term impact will the roadmap have on energy in arizona?

: We hope to have an immediate impact on growing the energy sector regionally, investing in infrastructure to aid in energy export opportunities, educating our stakeholders, and developing a simplified and more cohesive message for the industry.

: What long-term impact will the roadmap have on energy in arizona?

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: some of our long-term goals are to (1) develop arizona into a key energy hub for the region, providing less expensive power into larger markets such as california, (2) change our way of thinking to include a regional approach, thinking beyond our boundaries into our neighboring states and Mexico, and (3) streamline the permitting process for large generation projects that are key to arizona’s export of power.

Q a

: What kind of impact do you hope the roadmap makes on industry and economic development in arizona?

: These are the key measures of success: • increased internal economic revenue as a direct result of arizona’s growing energy industry in the form of heightened generation exportation. • increased job creation and higher-waged salaries for the state’s energy workforce resulting from energy security or self-sufficiency due to a reduction in the nation’s reliance on foreign energy sources and increased emphasis placed on internal renewable energies. • Progressive advances within the solar industry’s technology innovation sector. • reduced greenhouse gas emissions resulting from increased use of solar energy.

Q a

: What impact do you hope the roadmap makes on lawmakers?

: We hope to educate lawmakers to avoid ineffective legislation and encourage legislation that accomplishes the measures of success.

5 Things

Everyone Should Know About Identity Theft

Anyone can be a target. In 2011, 11.6 million Americans were victims of identity theft. The total take? $18 billion.1 In 2009, even the Chairman of the Federal Reserve was a victim.2 Now add major security breaches from trusted companies and you get the point. Still think it can’t happen to you?

You’re only as safe as your weakest link.

Once your Social Security number is out there, it’s staying out.

Just a few pieces of information can mean big trouble.

Help is here.

You shred documents, use secure websites and strong passwords. But your personal information is everywhere. Your doctor could have your Social Security number. Or your employer, your bank, and maybe even the kid handling your credit application for that new TV. You may be doing a whole lot right, but what about everyone else?

If your credit or debit card is stolen, you can replace it. But what happens when shady characters get your Social Security number? Identity thieves use black market websites to buy, sell and trade stolen information around the world. Is your Social Security number really protected?

With just a few pieces of your personal information, identity thieves can get a loan, mortgage or an equity line of credit —on your home. They could even buy a weapon and commit a crime. Profitable for them, but what about you?

You know the risk, so you need the most comprehensive identity theft protection ever created, LifeLock Ultimate™. It protects against identity theft before the damage is done. And only LifeLock Ultimate monitors bank accounts for takeover fraud.* You’ll also get unlimited access to all three credit reports and scores. And it’s all backed by the LifeLock $1 Million Total Service Guarantee.**

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PROMO CODE: 5Things

1) Javelin Strategy & Research. “2012 Identity Fraud Survey Report.” 2/12. 2) Newsweek. “Bernanke Victimized by Identity Fraud Ring.” 25 August 2009. *Network does not cover all transactions and scope may vary. **The benefits under the Service Guarantee are provided under a Master Insurance Policy underwritten by State National Insurance Company. Under the Service Guarantee LifeLock will spend up to $1 million to hire experts to help your recovery. As this is only a summary please see the actual policy for applicable terms and restrictions at LifeLock.com. AB | September-October 2012 49 †Offer is for new LifeLock members only. Try LifeLock service for 60 days. If you are not completely satisfied within your 60-day period, just call 1-800-LifeLock to receive a full refund of your purchase price.

AZTECH: CEO By MICHAEL GOSSIE Photograph by COry BErGqUISt

todd davis ceo, lifelock,

a tempe-based identity theft protection company how is being CeO of lifelock different from leading other firms? We get to define a whole new industry, so we have to go out and tell people that there is a product for identity theft protection. We have to take some chances. We have to do some things that are more aggressive. We are in a newly defined industry, so that presents some unique challenges that you wouldn’t face as ceo of a company in a more traditional industry. how difficult is it to combat those that try to outsmart technology? as we put up barriers, the criminals continue to get better. We battle that with advanced, patented technology. We develop technology that can turn the table and provide proactive protection. are there misconceptions about lifelock? We sometimes hear, “What can lifelock do that i can’t do myself?” Well, you can cut your own hair and do your own taxes, but you don’t. We believe that we have the most comprehensive services in the industry. The ability to evolve and change has given us breadth of coverage that consumers don’t realize.

are there challenges to doing business in arizona? We don’t have great clarity on what the message is for arizona. are we home building? solar? bio? chip manufacturing? i would love to see us get on a clear message that doesn’t change with every political cycle. What has been your biggest challenge at lifelock? early on, i was out there being disruptive, giving out my social security number and everyone thought i was crazy. i should have done a better job working with regulators because we all really wanted the same thing: to protect consumers from identity theft. it was a challenge to weather those attacks and the misperceptions of who we were. but we were able to manage through that and we grew through the process.

in 2010, lifelock agreed to pay $12 million for using false claims in advertising. how were you able to manage lifelock through that? The $12 million we paid was a consumer redress payment — payments to consumers who may not have been 100 percent satisfied with our service based on our advertising claims. More importantly, the $12 million we paid in 2010 was related to our historical advertisWhat makes you a great CeO for lifelock? ing practices when the company was still in its infancy with an earlier i’m secure enough to know that i’m not the smartest guy at lifeproduct offering. by the time we paid the fines, we had already implelock. i’ve surrounded myself with men and women who are much mented changes internally to make sure our message to consumers smarter than me and are fantastic at their jobs. was clear. our retention rate stayed solid and but i do have a vision for this company and i am VITAL STATS: TODD DAVIS sometimes when we issued a refund as part of passionate about it and i lead us down that path  Earned the 2009 Ernst & young the agreement, the consumer sent it back to us without the need to always being right. and said, “We don’t want it. We are happy with Entrepreneur of the year award for the service.” Orange County/Desert Cities region Why have you kept lifelock in arizona? for a top Emerging Company People don’t always realize what a great talent  Earned the Arizona Business LeadWhat achievement are you most proud of? pool we have here ... it’s been a perfect place for We are going to leave a legacy with lifelock ership Association’s Leadership Award us to grow because i don’t have to compete with  LifeLock was honored with the of not just creating a household name brand, facebook and zynga and Groupon, who are but a legacy that we took on the most reported 2010 Best New Product or Service of trying to hire all the talent. We get to be selective the year Stevie Award crime in america, and our goal is to beat it over and build a talent base that can take on anybody  LifeLock’s logo is featured on the time. in the nation. Phoenix Mercury’s jersey, the first branded jersey in WNBA or NBA history 50 AB | September-October 2012

Embry-Riddle is the world’s premier aerospace university. We offer students the #1 collegiate flight education program and the opportunity to showcase their skills in national competitions. Our female student teams earned top 10 ﬁnishes in the 2012 Air Race Classic and won best overall collegiate team after competing against more than 50 talented women pilots. But that’s not all. Embry-Riddle student ﬂight teams have won the National Intercollegiate Flying Association’s annual Safety and Flight Evaluation Conference (SAFECON) eight times – proving time and again that we set the standard for excellence in aviation and safety.

Th e l e adi ng name in colleg iat e flig ht educat ion p ursues excellence ab ove all e lse .

scan to see us in action

AB | September-October 2012 51

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602.247.7600 AB | September-October 2012 53

AZTECH: SECURITy

By MICHAEL GOSSIE

tech tackles bad Guys

home security companies use latest innovations to introduce next generation in protection

f a wannabe robber is worried that he’s going to set off an alarm when he kicks in your door, he is less likely to break into your home, statistics show. The department of Justice says it’s a fact: burglars steal less property from houses protected with alarms. but 21st-century home security systems offer more than more than just a loud alarm that goes off to scare off would-be robbers. companies like adt, frontPoint, titan alarm, and integrated Protective systems are using the latest technology to keep homes out of harm’s way. cox arizona is the latest company to enter the protection business after in unveiled cox home security in april. cox’s new service allows its customers to both monitor their homes and keep their loved ones safe. “The new cox home security system uses advanced technology to connect customers at the level of their choice with options that bring home security right to their fingertips,” said steve rizley, senior vice president and general manager for cox arizona. in addition to safety, the home security system acts as a remote personal assistant, connecting cox customers to their home appliances and thermostats, enabling customers to save on energy bills through programming while monitoring the use of energy throughout the entire home. cox home security also monitors carbon monoxide and home smoke detectors, alerting homeowners via email or text when levels are unsafe. The system also automatically dispatches fire emergency officials to the scene. The reliable, 24/7 secure monitoring systems feature:  intrusion and home safety monitoring (includes fire, gas and flood);  remote access so the system can be controlled away from home;  email/text alerts to notify customers of occurrences at the home ;  safety sensors to detect hazardous conditions such as carbon monoxide and smoke;  secure video surveillance available via smartphone or computer;  control of home functions such as lighting and temperature. to give you a sense of what you will spend on a high-tech home security system, cox’s system is free with a $99 installation and three-year contract with service plans starting at $29.99 for existing cox customers. 54 AB | September-October 2012

editor’s vieW

When I was growing up watching “The Jetsons,” I always wondered if I would live long enough to have some of the cool gadgets George Jetson had in his home. Here’s the cool thing: I have lived long enough to have some of those gadgets and I’m using them in a house that was built before television — home to “The Jetsons” — was even invented. My Cox Home Security system has turned my Downtown Phoenix historic home — built in 1918 — into a 21st Century Smart Home. Using an app on my smart phone, the system gives me the ability to adjust thermostats, turn lights on and off, arm and disarm the security system, and monitor the house using four surveillance cameras. I can do that from anywhere in the world. While I’ve used the cameras to mostly laugh at my dog getting on the bed the moment I get to work, I did use it to avoid a possible disaster when I left for a trip to New York and saw that I’d left a back door cracked open. I was able to make a quick call and get the house locked up. I love my neighborhood, but in the year preceding the installation of my Cox Home Security system, I had three bikes stolen and an attempted break-in. Since the system has been installed, there have been no incidents. Now THAT’S a Smart Home.

Now you can control your home from anywhere.

Cox Home Security puts you in control from wherever, whenever. SM

Away From Home

from your touchscreen.

FREE SYSTEM With $99 Professional Installation (A $600 value)

from any Internet-connected computer.

At Home

CAll tOdAy And Get A

On the Go

via your smartphone or tablet.

Call: 1-866-205-6660 Click: cox.com/homesecurity Come by: visit a Cox Solutions StoreÂŽ

Cox Home Security is available to residential consumers in Cox Arizona service areas. Service not available in all areas. Certain advertised features require the Preferred service plan. Prices may require a 3-yr monthly service contract and subscription to Cox video, Internet and/or phone service. A high speed Internet connection is required and not included in price. Remote usage requires a compatible PC, smartphone or tablet with Internet and/or email access and is not included. Applicable monthly service charges, installation, additional equipment, taxes, trip charges, and other fees may apply. All prices and packages are subject to change. Month-to-month and home security service onlyAB pricing available. Subject to credit approval. | September-October 2012 Other 55 restrictions may apply. Local ordinances may require an alarm user permit. ÂŠ2012 Cox Advanced Services Arizona, LCC. All rights reserved

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2012 MOST ADMIRED COMPANIES

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Az Business magazine and BestCompaniesAZ are honored to present the winners of the 2012 Arizona’s Most Admired Companies Awards. Our primary goal in developing the program was to ﬁnd and recognize those companies that excel in four key areas:

• Leadership excellence • Social responsibility • Customer opinion • Workplace culture From hundreds of applicants and nominees, a selection committee comprised of our editorial team and professionals from a wide range of industries selected 40 of the most accomplished and prestigious companies in Arizona.

PMS 288 Blue or CMYK = C100-M85-Y0-C43 PMS 1255 Ochre / Yellow or CMYK = C0-M35-Y85-C30

58 AB | September-October 2012

WE UTILIZE ANALYZE OPTIMIZE FORMULIZE INTERNALIZE SYNCHRONIZE. YOU CAPITALIZE. TEMP •TEMP TO HIRE • DIRECT HIRE • PAYROLL SERVICES • ON-SITE SERVICES 5080 N. 40th Street, Suite 103 Phoenix, AZ 85018 Phone 602.277.3381 Fax 602.395.0699 www.allstaffaz.com

6400 E. Grant Rd., Suite 180 Tucson, AZ 85715 Phone 520.296.1666 Fax 520.296.1655 www.allstaffaz.com

www.allstaffaz.com

123 N. Centennial Way, Suite 116 Mesa, AZ 85201 Phone 480.588.8529 Fax 480.214.3934 www.allstaffaz.com AB | September-October 2012 59

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BRIGHTEST STARS Four companies take the spotlight among Most Admired Companies in Arizona On Sept. 5, Az Business magazine and BestCompaniesAZ honored 40 of the most innovative and exceptional companies in Arizona at the third annual Most Admired Companies Awards at the RitzCarlton in Phoenix.

In addition to being honored with MAC Awards, four companies were singled out as spotlight winners in the categories of leadership excellence, workplace culture, social responsibility, and customer opinion.

LEADERSHIP EXCELLENCE

SOCIAL RESPONSIBILITY

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St. Mary’s Food Bank Alliance St. Mary’s Food Bank — which distributed more than 69,000,000 pounds of food in 2011 — promotes a workerfriendly workplace through company values, employee involvement, recognition, and employee growth. The food bank’s strategic plan emphasizes career development as part of its succession planning program. Career development plans, personality assessments, and 360-degree evaluations by supervisors, peers, and direct reports are used to ensure that the right people are in the right jobs at the right time. Employee recognition takes many forms, including quarterly meetings where employees receive service anniversary awards and awards recognizing work that goes above and beyond, such as Peer Recognition Awards, Safe Driver Awards, Spot Bonus Awards, Key Contributor Awards, and an annual John van Hengel Achievement Award. In April of 2012, St. Mary’s held its first annual Forklift & Driver Safety Rodeo to help promote worker pride and safety. The event was a family-friendly and allowed workers to compete on obstacle courses for cash and trophies.

Biltmore Bank of Arizona Biltmore bank CEO Jeff Gaia says, “Our commitment to our community is an integral part of our business strategy,” and the bankers put their money where their mouths are. Founder Richard J. Lehmann serves on the Knight Transportation Company Board, the TGen Foundation Board, and the Mayo Clinic Advisory Board. Senior Credit Officer John T. Byrd has served on the boards of the Valley of the Sun YMCA, Greater Phoenix Chamber of Commerce, Valley of the Sun Communities in Schools, Midtown Rotary Club, and he has been active in Junior Achievement, and Friends of Mexican Art. For more than a decade, CFO Paige Mulhollan has volunteered nearly 40 Saturdays a year to Habitat for Humanity of Arizona and even brought the entire office out for weekends of volunteerism to experience giving back. Managing Director Greg Lehmann is a member EC70, a group devoted to raising millions of dollars for children’s organizations, including Phoenix Children’s Hospital, Boys & Girls Clubs and UMOM New Day Centers.

CUSTOMER OPINION

CA Technologies CA Technologies — an IT management software and solutions company with expertise across all IT environments, from mainframe and distributed, to virtual and cloud — manages and secures IT environments and enables customers to deliver more flexible IT services. Here is just one of example of how CA delivered for its customers: The State of Arizona’s Information Services Division (ISD) was under pressure to deliver more service for less. With 25 different groups juggling 200 projects and 10 times that many concurrent tasks at any one time, project management was missing from the state’s ISD. CA Clarity has enabled the state to transform its IT support operation, helped manage task timelines and labor, as well as having the financials and forecasting officials needed to stay on time and within budget. As a result, the state’s executive branch experienced an eight-figure savings, so the software is literally helping to generate the revenue that pays for its own installation.

PHOTOGRAPHY BY GLORY SHIM

Cancer Treatment Centers of America CTCA at Western Regional Medical Center employs a new model of cancer care that is the foundation of CTCA. A wholeperson treatment approach is combined with a nurturing and compassionate environment which is now known as the CTCA Mother Standard of care. This standard permeates every aspect of hospital operations at CTCA as all employees — from housekeeping staff to doctors to administrators — are empowered to put the focus of their work on providing the best possible care to patients. Leadership at CTCA demonstrates high-level transparency to both employees and patients by communicating all aspects of hospital operations. Both successes and opportunities are communicated and patients and employees are empowered to share ideas for improvement. Employees are encouraged to identify ways to reduce waste and improve operations and present suggestions for improvement based on a personal understanding of what the job entails. Once a need has been identified, employees are given paid time to participate in developing and implementing solutions.

WORKPLACE CULTURE

Inspire extraordinary services

............................................................................. for a living.

Tammy

Senior Vice President and General Manager

Congratulations to American Express and all of Arizona’s “Most Admired Companies.” American Express is honored to be one of Arizona’s Most Admired Companies. A special thanks to all of our employees for making our company an incredible place to work and do business. Being an admired company is an honor because it reflects the values on which our company was built – trust, security, quality, good citizenship, respect, integrity and commitment to our customers. I am proud to be a member of the admired American Express team.

let’s connect

To be an admired member of the American Express team, visit www.americanexpress.com/foraliving We are an equal opportunity employer.

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“The results will cause the biggest paradigm shift in how patients will be treated since Marie Curie herself discovered radium in 1896.” — Dr. Robert Kuske, Arizona Breast Cancer Specialists

Adolfson & Peterson Construction ▲

Arizona base: Tempe Arizona leadership: Bryan Dunn, senior vice president Years in Arizona: 21 Employees in Arizona: 63 in Tempe Fast fact: Dogs and pets are allowed in the office and employees have the flexibility to bring their children to work. Web: a-p.com

Arizona Charter Academy ▼

American Express 

Arizona base: Phoenix Arizona leadership: Tammy Weinbaum, senior vice president Years in Arizona: 51 Employees in Arizona: 7,775 Fast fact: Fortune Magazine named the company to its Most Admired Companies and 100 Best Companies to Work For lists in 2012. Web: aexp.com

Arizona base: Surprise Arizona leadership: Melissa Holdaway, CEO Years in Arizona: 11 Employees in Arizona: 71 Fast fact: ACA values diversity and 70 percent of its student population is made up of minorities. ACA’s staff mirrors the diversity of its students. Web: azcharter.com

Arizona Breast Cancer Specialists ▲

Arizona base: Phoenix Arizona leadership: Dr. Robert Kuske and Dr. Coral Quiet, co-founders Years in Arizona: 4 Employees in Arizona: 54 Fast fact: Kuske is currently co-principal investigator in the largest breast cancer radiation trial in medical history. Web: breastmd.com

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“Everyone at CTCA finds a way to make you feel like you’re the most important patient there.” Barrett-Jackson Auction Co. LLC ▼

Arizona base: Scottsdale Arizona leadership: Craig Jackson, chairman and CEO Years in Arizona: 41 Employees in Arizona: 50 Fast fact: Has raised more than $48 million for local and national charities. Web: barrett-jackson.com

Biltmore Bank of Arizona ▲

Arizona base: Phoenix Arizona leadership: Jeff Gaia, chairman and CEO Years in Arizona: 9 Employees in Arizona: 50 Fast fact: For more than a decade, CFO Paige Mulhollan has volunteered nearly 40 Saturdays a year to Habitat for Humanity of Arizona. Web: biltmorebankaz.com

Cancer Treatment Centers of America ▼

CA Technologies ▲

Arizona base: Scottsdale Arizona leadership: John Hunter, general manager Years in Arizona: More than 20 years Employees in Arizona: 88 Fast fact: Partnered with the Boys & Girls Club to launch “Tech Girls Rock” to inspire girls to explore technology-related opportunities and careers. Web: ca.com 64 AB | September-October 2012

PHOTOGRAPHS OF HUNTER AND STAREN BY GLORY SHIM

Arizona base: Goodyear Arizona leadership: Dr. Edgar Staren, president and CEO Years in Arizona: 4 Employees in Arizona: 447 Fast fact: CTCA is the first 100 percent digital cancer hospital in the nation. Patient records are maintained in an Electronic Health Records System. Web: ctca-hope.com

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“There is a special gem shining in Casa Grande that is unexpected for a city our size: Casa Grande Regional Medical Center.” CBIZ MHM, LLC 

Casa Grande Regional Medical Center ▼

Arizona base: Casa Grande Arizona leadership: Rona Curphy, president and CEO Years in Arizona: 28 Employees in Arizona: 845 Fast fact: Certified as a mature-friendly workplace by the state; 59 percent of employees are age 45 or older. Web: cgrmc.org

Arizona base: Phoenix Arizona leadership: Carlos Wagner, executive managing director Years in Arizona: 41 Employees in Arizona: 141 Fast fact: Has collected approximately 250,000 pounds of food for local food drives over the past 10 years. Web: cbiz.com

CBRE 

Arizona base: Phoenix Arizona leadership: Craig Henig, senior managing director and Arizona market leader Years in Arizona: 60 Employees in Arizona: 350 Fast fact: Through the company’s environmental stewardship, employees have helped clients make their facilities greener and contribute to the battle against climate change. Web: cbre.com

 CCS Presentation Systems

Arizona base: Scottsdale Arizona leadership: John Godbout, founder and CEO Years in Arizona: 21 Employees in Arizona: 108 Fast fact: Ranked among Inc. Magazine’s Fastest Growing Companies for five consecutive years (20082012). Web: ccsprojects.com 66 AB | September-October 2012

is honored to be selected as one of

Arizona's Most Admired Companies A special thanks to all our employees, automotive enthusiasts, collectors and fans for making Barrett-Jackson the legacy it is today. Barrett-Jackson.com

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“Diversity isn’t a program at Cigna. It’s who we are.” Cigna HealthCare of Arizona 

Arizona base: Phoenix Arizona leadership: Stephanie Gorman, president and general manager Years in Arizona: 40 Employees in Arizona: 2,865 Fast fact: One of only 25 companies in 2011 recognized for diversity and inclusion in Racing Toward Diversity magazine. Web: cigna.com

FedEx TechConnect ▲

Arizona base: Phoenix Arizona leadership: Jack Carroll, senior manager Years in Arizona: 28 Employees in Arizona: 148 Fast fact: In 2012, earned Arizona’s Top 100 Companies Centennial Celebration Star Award. Web: fedex.com

Go Daddy ▼

Arizona base: Scottsdale Arizona leadership: Scott Wagner, interim CEO Years in Arizona: 15 Employees in Arizona: 2,704 Fast fact: Go Daddy donated more than $5 million to various charities in 2011. Web: godaddy.com

▲ Grant Thornton LLP

Arizona base: Phoenix Arizona leadership: Ralph Nefdt, managing partner Years in Arizona: 8 Employees in Arizona: 60 Fast fact: Audit Partner Stella Shanovich helped develop Women at Grant Thornton to ensure a culture that enhances retention and recruitment of women. Web: us.gt.com 68 AB | September-October 2012

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“We’re authentic, we’re entrepreneurial, and right now, we’re experiencing some growing pains; a challenge we’re facing with optimism.” — Kimberlee Morrison, culture evangelist, Infusionsoft  Great American Title Agency, Inc.

Arizona base: Phoenix Arizona leadership: Bruce Beverly, CEO Years in Arizona: 14 Employees in Arizona: 127 Fast fact: Ranked No. 1 by Ranking Arizona among title companies from 2009-2012. Web: azgat.com

Infusionsoft 

International Cruise & Excursions, Inc. ▼

Arizona base: Scottsdale Arizona leadership: John Rowley, president and CEO Years in Arizona: 15 Employees in Arizona: 928 Fast fact: ICE is the largest womanowned business in Metro Phoenix. Web: iceenterprise.com

Arizona base: Gilbert Arizona leadership: Clate Mask, CEO Years in Arizona: 8 Employees in Arizona: 246 Fast fact: Mask was an Ernst & Young Entrepreneur of the Year finalist in 2012 and earned a Father of the Year Award in 2007. Web: infusionsoft.com

KeatsConnelly 

Arizona base: Phoenix Arizona leadership: Robert Keats, president Years in Arizona: 22 Employees in Arizona: 27 Fast fact: Has earned the Alfred P. Sloan Award for Business Excellence in Workplace Flexibility for four consecutive years. Web: keatsconnelly.com 70 AB | September-October 2012

IT’S TIME TO HELP TAKE CARE OF BUSINESS EMBRACING GOOD HEALTH

INNOVATIVE TOOLS

EASY ADMINISTRATION

UnitedHealthcare is proud to put our strengths to work for businesses in Arizona. At UnitedHealthcare, our goal is to help every business get the right coverage at the right price. We know that employers are concerned about the cost of their benefits – but they want to take care of their employees, too. We’ve created a full range of plans that offer you and your employees more choice and value, and help them make more informed decisions that may put the brakes on rising costs. For more information, visit uhc.com or contact your broker.

uhc.com ©2012 United HealthCare Services, Inc. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan coverage provided by or through a UnitedHealthcare company. UHCAZ596769-000

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“Mayo Clinic’s name is synonymous with world-class healthcare. Safe, effective care is embedded in Mayo’s very DNA.”

Laser Spine Institute 

Arizona base: Scottsdale Arizona leadership: Dr. Michael Weiss, chairman of surgery and chief spine surgeon Years in Arizona: 4 Employees in Arizona: More than 75 Fast fact: 80 percent of Laser Spine Institute patients report returning to daily activities within two weeks of surgery. Web: laserspineinstitute.com

Mark-Taylor ▲

Arizona base: Scottsdale Arizona leadership: Dale Phillips, president Years in Arizona: 26 Employees in Arizona: 420 Fast fact: Donating rent for an entire year through its Save the Family partnership allowed members of the Mark-Taylor team to experience the joy of giving back. Web: mark-taylor.com

▲ Mayo Clinic

Arizona base: Scottsdale Arizona leadership: Wyatt Decker, vice president and CEO Years in Arizona: 25 Employees in Arizona: 5,524 Fast fact: Fortune Magazine has named Mayo Clinic to its 100 Best Companies to Work For list for nine consecutive years. Web: mayo.edu

McCarthy Building Companies, Inc. 

Arizona base: Tempe Arizona leadership: Robert “Bo” Calbert, president, Southwest Division Years in Arizona: 33 Employees in Arizona: 326 Fast fact: Successfully implemented techniques to become one of the nation’s safest builders, improving safety results by more than 82 percent. Web: mccarthy.com 72 AB | September-October 2012

Ryan is Proud to be Selected as One of Arizona’s Most Admired Companies. Ryan‘s innovative myRyan work environment gives employees the freedom and flexibility to achieve the highest level of success and productivity in all areas of their professional and personal lives. Ryan associates have responded by delivering superior levels of service, value, and results for our clients. Ryan achieved the prestigious 2011 International Customer Service Standard certification from the Customer Service Institute of America (CSIA) and is a two-time recipient of the International Service Excellence Award for its commitment to world-class client service. We’re committed to the growth of our employees and the communities where they live. Our corporate training program won the 2010 American Society for Training & Development (ASTD) BEST Award. And our community outreach efforts have raised more than $3 million since 2005. At Ryan, your talent is encouraged, your abilities are challenged, and your expertise is rewarded.

Congratulations to all our Arizona employees for this well-deserved recognition!

Ryan employees have contributed thousands of hours to charitable causes in their communities. Ryan employees work where and when they are most efficient and effective.

Ryan was among only 31 organizations worldwide to receive the prestigious ASTD BEST Award. Ryan’s health and wellness program helps employees achieve and maintain health and physical fitness. The U.S. Department of Defense honored Ryan with the Patriot Award for personnel policies that support employee participation in the military.

Winner 2011

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“At McMurry, it’s said that ‘what gets measured gets done,’ so measuring clients’ satisfaction level ensures clients stay satisfied.” McMurry 

Arizona base: Phoenix Arizona leadership: Chris McMurry, CEO Years in Arizona: 26 Employees in Arizona: 109 Fast fact: Was named 100 Best Companies “Trailblazer” in 2012 by BestCompaniesAZ. Web: mcmurry.com

Microchip Technology Inc.▲

Arizona base: Chandler Arizona leadership: Steve Sanghi, president and CEO Years in Arizona: 23 Employees in Arizona: 1,579 Fast fact: Recorded its 86th consecutive quarter of profitability in May 2012. Web: microchip.com

Orchard Medical Consulting 

Arizona base: Phoenix Arizona leadership: Robin Orchard, president and owner Years in Arizona: 11 Employees in Arizona: 26 Fast fact: This year, Orchard donated scholarships for five women to attend Fresh Start for Women free of charge. Web: orchardmed.com

 The Paradies Shops

Arizona base: Phoenix Arizona leadership: Gregg Paradies, president and CEO Years in Arizona: 15 Employees in Arizona: 107 Fast fact: Airport Revenue News recognized The Paradies Shops as the “Best Airport Retailer” for the 17th year in a row in 2012. Web: theparadiesshops.com 74 AB | September-October 2012

Build the career you want In a great environment, in the right culture…work can be extremely rewarding. But it takes the right work and the right place. A collaborative environment. Real opportunity. Flexibility. And a sense that what you do every day isn’t just a job. That’s the culture we try to create here. For everyone.

Scan for more information

CA Technologies is proud to be a winner of the 2012 Arizona’s Most Admired Companies Award. + FIND OUT more about our opportunities, visit us at ca.com/careers Copyright © 2012 CA. All rights reserved.

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“I feel blessed to have experts to work with. Gosh, I love working with PCA.” — Rose G., on PCA SKIN

▼ Ryan, LLC

Arizona base: Scottsdale Arizona leadership: Jon Sweet, executive vice president and vice chair for strategy and business development Years in Arizona: 8 Employees in Arizona: 38 Fast fact: The Ryan Foundation was formed in 2011 and supports four key beneficiaries: Susan G. Komen, St. Jude Children’s Research Center, the American Heart Association, and Habitat for Humanity. Web: ryan.com

▲ PCA SKIN

SCF Arizona ▲

Arizona base: Phoenix Arizona leadership: Don Smith, president and CEO Years in Arizona: 87 Employees in Arizona: 480 Fast fact: Company has an in-house wellness center that is staffed by two nurse practitioners. Web: scfaz.com 76 AB | September-October 2012

St. Mary’s Food Bank Alliance 

Arizona base: Phoenix Arizona leadership: Beverly Damore, president and CEO Years in Arizona: 45 Employees in Arizona: 160 Fast fact: Organization has a prestigious Arizona heritage as the birthplace of the world’s first food bank. Web: firstfoodbank.org

PHOTOGRAPH OF DAMORE BY GLORY SHIM

Arizona base: Scottsdale Arizona leadership: Richard Linder, CEO Years in Arizona: 22 Employees in Arizona: 77 Fast fact: Every member of the PCA SKIN team is given a paid day off to volunteer in the community. Web: pcaskin.com

Help your patients put back pain behind them.

Dr. Vernon Morris

Dr. Stefan Prada Dr. Craig Wolff

Dr. Mark Flood Dr. Zoltan Bereczki

Find out why Laser Spine Institute’s minimally invasive solutions are the safe and effective alternative to open neck and back surgery. When your patients with neck and back pain no longer benefit from conservative treatment options, refer them to Laser Spine Institute. Our minimally invasive solutions offer a number of advantages over open neck and back surgery: • Several types of endoscopic spine procedures are offered to treat a wide range of conditions. • High standards of patient safety and sanitation resulting in an infection rate of 0.07% vs. national hospital average of 4.5%.

• All procedures are outpatient and nearly 75% of patients return to daily activities within two weeks postoperatively. • Approximately 450 endoscopic surgeries performed each month with a 94% patient satisfaction rate.

Call 1-877-330-0364 or visit www.LSIPhysicianRelations.com today, and learn how together, we can provide proven relief from chronic neck and back pain.

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“At Sonora Quest Laboratories, our patients come first in everything we do.”

▲ ScriptSave

Arizona base: Tucson Arizona leadership: Lori Bryant, president and CEO Years in Arizona: 18 Employees in Arizona: 68 Fast fact: Recognizes employees with its Most Valuable Peep (MVP) Award. The MVP receives a cash bonus, covered parking and a package of “Peeps” candy. Web: scriptsave.com

Shutterfly 

Arizona base: Phoenix Arizona leadership: Dwain Parrish, senior site director Years in Arizona: 3 Employees in Arizona: 234 Fast fact: 90 percent of new ideas to improve the company’s manufacturing processes are conceived by employees on the production floor. Web: shutterfly.com

▼ Sonora Quest Laboratories

Arizona base: Tempe Arizona leadership: Dave Dexter, CEO Years in Arizona: 15 Employees in Arizona: 2,644 Fast fact: In 2012, Sonora Quest Laboratories will provide testing services for more than 6 million patients and will perform more than 20 million tests. Web: sonoraquest.com

▲ Sundt Construction, Inc.

Arizona base: Tempe Arizona leadership: David S. Crawford, president and CEO Years in Arizona: 93 Employees in Arizona: 737 Fast fact: As a 100 percent employee-owned company, Sundt has produced 119 employee-owners with stock balances of more than $1 million since 1996. Web: sundt.com 78 AB | September-October 2012

Congratulations Cresa is proud to sponsor and support Arizona’s Most Admired Companies! Cresa is an international corporate real estate advisory firm that exclusively represents tenants. We focus on real estate strategies that help you attract top talent, reinforce your brand and increase profitability. At Cresa, We See Real Estate Differently Please call us to see how we can assist you with your corporate real estate needs.

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

Gary Gregg Managing Principal

Scott Maxwell Managing Principal

The Tenant’s Advantage

Thank you to our community and employees for making Casa Grande Regional Medical Center one of Arizona’s Most Admired Companies!

Casa Grande Regional Medical Center 1800 East Florence Blvd, Casa Grande, AZ 85122 Phone: (520)381-6300 | Fax: (520)381-6435 | Website: www.casagrandehospital.com AB | September-October 2012 79

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“We have a unique passion and entrepreneurial spirit at Ventana: See it. Own it. Do it.”

–Mara Aspinall, president of Ventana Medical Systems, Inc.

▼ Suntech

Arizona base: Goodyear Arizona leadership: Jerry Liu, general manager Years in Arizona: 2 Employees in Arizona: 101 Fast fact: About 80 percent of Suntech Arizona’s workforce was hired out of unemployment, showing the solar industry’s ability to create jobs. Web: suntech-power.com

▲ UnitedHealthcare of Arizona

Arizona base: Phoenix Arizona leadership: Jeri Jones, CEO Years in Arizona: 28 Employees in Arizona: 2,910 Fast fact: Since 1999, has been listed in the Dow Jones Sustainability World Index and North American Index. Web: uhc.com

▲ US Airways

Arizona base: Tempe Arizona leadership: Douglas Parker, CEO Years in Arizona: 29 (1983-2005 as America West) Employees in Arizona: 9,764 Fast fact: Has earned a 100 percent rating from the Human Rights Campaign for seven years in a row. Web: usairways.com

Ventana Medical Systems 

Arizona base: Tucson Arizona leadership: Mara Aspinall, president Years in Arizona: 25 Employees in Arizona: 1,102 Fast fact: Manufactures more than 200 cancer diagnostic tests and instruments for 56 countries and for 4 million people afflicted with cancer yearly around the world. Web: ventana.roche.com 80 AB | September-October 2012

H E LP I N G A R I ZO N A B U S I N E S S E S G ROW I S WH AT WE DO B E ST.

The Biltmore Bank is the premier business bank in the state. We provide you direct access to key decision makers, experienced bankers and the financial capacity to meet your needs – so you can get down to business without giving up local service. We would like to thank you for your dedication and support, and for recognizing us as one of Arizona’s Most Admired Companies. Treasury Management | Commercial Lending | SBA Lending | Business Banking 5055 North 32nd Street, Phoenix, AZ 85018 | 14850 North Scottsdale Road, Scottsdale, AZ 85254 Phone 602.992.5055 | Fax 602.992.5054

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How we picked Arizona’s Most Admired Companies

In selecting Arizona’s Most Admired Companies, Az Business magazine partners with BestCompaniesAz to conduct an extensive search and identify companies that show strong leadership, a commitment to their communities, and care and concern for the employees and customers. Companies submit nomination packets with basic company information, including the number of Arizona-based employees, the company’s annual voluntary turnover,

and gender breakdown. Companies also provide information on leadership philosophies and approaches, employee beneﬁts, retention programs, past awards they have received, and customer surveys and feedback. A selection committee is assembled and charged with reading through all the nomination packets. Committee members then rank the nominees based on four core categories:

• Leadership excellence • Workplace culture • Social responsibility • Customer opinion Scores are tabulated and the top 40 are selected as Arizona’s Most Admired Companies. This year’s selection committee featured a wide range of Valley professionals from various ﬁelds. The selection committee members submitted their votes on July 16 to pick the Most Admired Companies. The members of this year’s MAC Awards selection committee are: • LENNY SANICOLA, senior beneﬁts practice leader, professional development, WorldatWork • CHERYLE HARRELL, vice president, Allstaff Services Inc. • CHRISTA BURKHALTER, director of corporate affairs and communications, American Express • MIKE ATKINSON, CEO, AZ BIG Media • MICHAEL GOSSIE, editor in chief, AZ BIG Media If your company deserving of a MAC Award? Nominations for the 2013 Arizona’s Most Admired Companies Awards open January 2013. Visit AzBusinessMagazine.com or scan the QR code for more details.

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MostAdmiredCompanyAd_1/2page_v3.indd 1

8/21/12 9:29 AM

PROUD TO BE ONE OF ARIZONA’S MOST ADMIRED COMPANIES

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How would you like the opportunity to change a generation? ✱ Become a corporate sponsor for a grade level or department ✱ Sponsor students to attend college while in high school ✱ Volunteer ✱ Guest Speakers/Career Mentors ✱ Career Field Trips to your Company ✱ Be a part of our Community Advisory Board

80% of students live at or below the poverty level and many will be the first generation college students

For more information call Melissa Holdaway 623-974-4959 x205, mholdaway@azcharter.com

azcharteracademy.com 16011 N. Dysart Rd., Surprise AZ 85374 AB | September-October 2012 85

building arizona Sundt is proud to be one of Arizona's Most Admired Companies.

2620 S. 55th St. Tempe, AZ 85282 (480) 293-3000 www.sundt.com Arizona Contractor License Nos.: ROC068012-A; ROC068013-B01

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Law Firm of the Year Litigation – Labor & Employment

Ogletree Deakins Congratulates Arizona’s Most Admired Companies Effective labor and employment law counsel comes from a law firm that understands your local situation. And when the same law firm has a national presence, you’ve got the definitive combination working for you. Ogletree Deakins is one of America’s leading labor and employment law firms with 42 locations nationwide, including Phoenix and Tucson. For more information, please visit us online at www.ogletreedeakins.com.

Phoenix

Esplanade Center III 2415 East Camelback Road Suite 800 Phoenix, AZ 85016 Phone: (602) 778-3700

Tucson

Suite 220 Foothills Corporate Center 3430 E. Sunrise Drive Tucson, Arizona 85718 Phone: (520) 544-0300

PUT YOUR BUSINESS IN THE

SPOTLIGHT

Mark down these important event dates and deadlines for some of Az Business magazineâ&#x20AC;&#x2122;s most popular and well attended events.

Showcasing the top Arizona companies in healthcare, retail, hospitality, alternative energy and distribution/resale. Nominations end September 14, 2012 Event reception will be held February 2013

Recognizing the accomplishments of leading in-house counsel. Nominations end October 12, 2012 Event reception will be held January 2013

TURNAROUND AWARDS Honoring professionals for outstanding performance in their roles as corporate financial stewards. Event reception will be held November 8, 2012

Highlighting companies, professional restructuring teams and individuals who have made a significant contribution to a successful turnaround. Nominations end September 17, 2012 Event reception will be held November 15, 2013

Donâ&#x20AC;&#x2122;t delay in getting your company the recognition it deserves. For more information on these events, please visit AzBusinessMagazine.com or call 602.277.6045 88 AB | September-October 2012

2012 MEETING PROFESSIONALS INTERNATIONAL 90 Interview with the president 92 Economic impact of meetings 102 Technology changing industry 106 New leadership 108 Award winners 111 Benefits on MPI membership

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Meet the president Masiulewicz takes leadership role in Arizona Sunbelt Chapter of MPI

Donna Masiulewicz, shown here during a meeting at the Arizona Biltmore, was recently named president of the Arizona Sunbelt Chapter of Meeting Professionals International for the 2012 â&#x20AC;&#x201C; 2013 year.

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onna Masiulewicz, a native of Chicago, was recently named president of the Arizona Sunbelt Chapter of Meeting Professionals International for the 2012 – 2013 year. Masiulewicz earned her BA from Northern Illinois University in Spanish translation and international marketing. She began her career in the hospitality industry working in association meetings management and tenured in corporate meeting and event operations. A move to Arizona in 2001 continued her role in corporate meetings and introduced her to incentive travel programs. As president at Timeline Meetings and Events, LLC, the Chicago native manages programs and events in domestic and international destinations with delegations from 12-2500. Over the years, Masiulewicz has earned several industry awards, including the Rising Star for MPI (both Chicago and Arizona chapters) and the MPI Special Commendation award in Arizona. Masiulewicz won the prestigious 2008-2009 AZMPI Planner of the Year. She recently sat down with Arizona Business Magazine to talk about the state of the hospitality industry in Arizona.

Question: What motivated you to become a meeting and event producer?

Masiulewicz: I started working the association market as an internal meeting/registration coordinator for a national nursing council. I truly loved the job and all the facets of the meetings industry. Wanting to learn more, I moved to the corporate side of meetings and conferences, got involved in MPI and continued to grow, learn and focus on perfecting each event.

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: What are your duties and focus as president at Timeline Meetings and Events, LLC?

: I am an independent senior meeting planner who is proficient in operations management for conferences, events and incentive programs. I manage all facets of program logistics including on-line registration support team, housing, custom program itinerary, ancillary meetings/activities, food/beverage selection, implementation, budget management, client relations, on-site execution and production, accounting and financial reconciliation.

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: How did you become involved in the Arizona Sunbelt Chapter of MPI?

: I joined the Chicago chapter of MPI in 1997 and served on several committees; also receiving the Rising Star award in 2001. I transferred my membership to the Arizona Sunbelt Chapter when I moved in 2001. I was going to sit back and take it all in, but quickly jumped onto two committees. Over the next few years, I served on several committees including host and hospitality, membership, holiday party, special events/ fundraising, and education forum. I joined the board of directors as director of special events/ fundraising in 2006-2007 and served as vice president of finance for a year before becoming presidentelect in 2011-2012.

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: How have some of the political and social issues — SB1070 and the lesbian couple being asked to leave a downtown Phoenix hotel restaurant — impacted the meeting and events industry in Arizona? : While we continue to be sensitive to the special interests of all our clients, we have a responsibility to remain focused on the task at hand which is the organization and execution of the best event we can produce. At times this may entail distancing that task from any group’s social or political views. While some may protest such an approach, the resultant neutrality assures both the organizers and the clients a well-run event without the distractions of any alternate agendas.

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: What are your goals as president of the chapter?

: My theme for the year is “Meeting Momentum.” We have the energy and resources laid in the foundation for the hospitality industry and it’s up to us as the Arizona Sunbelt Chapter to keep the movement and mobility in motion by doing four things: * Offering top notch education to our membership. * Encouraging members to live MPI and share the message throughout the industry and beyond. * Paving the path for our future leaders. * Having fun with networking events and helping others via our community outreach efforts. AB | September-October 2012 91

MEETING PROFESSIONALS INTERNATIONAL By MICHAEL GOSSIE

Window of economic development Meetings and conventions drive tourism industry, help attract new business to Arizona

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teve Moore, president and CEO of the Greater Phoenix Convention and Visitors Bureau, knows his industry is big business. “If Arizona’s tourism industry were a publicly traded entity,” he says, “it would be the third-largest company in the state — just behind Avnet and Freeport-McMoran, and just ahead of US Airways and PetSmart.”

Despite the economic downturn and the hit that the state’s tourism industry has taken because of human rights concerns, the numbers back up Moore’s statement. According to a study released this year by Dean Runyan Associates: * Total direct travel spending in Arizona was $18.3 billion in 2011. Travel spending increased by 5.4 percent in current dollars compared with 2010. * The tourism industry employs 157,700 people in Arizona. Combined with secondary employment that is generated through this direct travel spending, total job generation for Arizona is nearly 300,000. Tourism-related employment increased in 2011 by 1.7 percent — an addition of 2,700 jobs. This is the first increase in employment since 2006. * The re-spending of travel-related revenues by businesses and employees supported 136,000 additional jobs outside of the travel industry, with earnings of $5.4 billion. * The biggest economic boost came from conferences, conventions and business travel, which accounted for more than $6 billion in spending, or the equivalent economic impact of hosting a Super Bowl every month. “Conventions and meetings are essential to Phoenix’s economy,” Phoenix Mayor Greg Stanton says. “Their attendees stay in our hotels, go shopping at our local businesses and eat in our restaurants, which generates revenue and creates jobs.” In many ways, experts says, conventions and meetings are a key indicator of the state’s ongoing economic recovery. “Our industry is in a unique position in that our economic recovery has a direct effect on the recovery of the country as a whole,” says Donna Masiulewicz, president of the Arizona Sunbelt Chapter of Meeting Professionals International. “For most organizations, the first step in such a rebuilding phase Views from elements Restaurant is to regroup, reorganize and set out at the Sanctuary Resort and plans for the future. What better Spa in Paradise Valley. PHOTO place to accomplish these things CREDIT: Greater Phoenix CVB than at a company-wide event or AB | September-October 2012 93

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convention? That means, in essence, that when we are hired to set up these events we are not only helping our own industry get back on financial track but we are serving as a conduit for other organizations to do so as well.”

Putting it into perspective

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The interior environs of the Phoenix Convention Center’s North Building replicate cool desert colors and the Western sky. PHOTO CREDIT: Greater Phoenix CVB

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The gross domestic product of Arizona’s travel industry was $7.3 billion in 2011, according to the Runyan study, making it the state’s top export-oriented industry, ranking above microelectronics, aerospace, and mining. A big chunk of that revenue comes from meetings and conventions, which account for about two-thirds of the total revenue at Phoenix hotels and resorts, according to Douglas MacKenzie, director of communications for the Greater Phoenix Convention and Visitors Bureau. “That’s higher than the national average,” MacKenzie says, “because our destination holds great appeal as a meeting destination.” MacKenzie is quick to point out that when a big event like Major League Baseball’s All-Star Game or the Super Bowl comes to Arizona, the public hears about the economic impact it has on the community because those events get a lot of media attention. But people often don’t realize that big conventions similarly bring thousands— and in some cases tens of thousands —of visitors to Phoenix on a regular basis. “When a large convention comes to the Phoenix Convention Center, it’s like entire small town moving into downtown for a week,” says Douglas MacKenzie, director of communications for the Greater Phoenix Convention and Visitors Bureau. “And each one of these temporary ‘residents’ directly puts dollars into the economy and generates tax revenue. By a very conservative industry estimate, each convention attendee who comes here spends more than $1,500.”

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find inspiration in a setting like no other. this intimate 53-acre mountainside resort overlooking Paradise Valley offers an impressive diversity of flexible indoor and outdoor space, while ensuring privacy for each event.

5700 East McDonald Drive • Scottsdale • 480.948.2100 • sanctuaryaz.com AB | September-October 2012 95

MEETING PROFESSIONALS INTERNATIONAL Impact beyond tourism Meetings not only play a critical role in Scottsdale’s $3 billion tourism industry, according to Kelli Blubaum, vice president of Convention Sales & Services at the Scottsdale Convention & Visitors Bureau, they are economic catalysts that extend beyond the singular event. “Meetings and events not only help fill thousands of resort and hotel room nights each year, but also provide an opportunity to introduce new visitors and business decision makers to the area,’ she says. “These events often lead to repeat visitors and even economic development opportunities for the city.” Scottsdale Mayor W.J. “Jim” Lane says that meetings and conventions sometimes open the attracting new industry to Arizona. “Sometimes, people who get a taste for Scottsdale end up buying a home here, or even moving a business here,” Lane says. “In fact, (convention-goers) may represent larger groups and businesses who may ultimately do more business in Scottsdale based

on an initial stay here.” MacKenzie says Arizona’s robust meeting and convention industry brings people into the state who might not otherwise be exposed to the benefits of doing business in Arizona. “Many conventions and corporate meetings deliver to our doorstep the very manufacturing and knowledge industries economic developers want to attract to the city,” MacKenzie says. And while meetings and conventions represent about one-third of the tourism revenue in Tucson, city officials have used their success as an attraction in the meetings industry to attract more revenue in the future. “Many of Tucson’s larger resorts and hotels rely exclusively on group business to maintain occupancy and revenue throughout the year,” says Graeme Hughes, director of convention sales for the Metropolitan Tucson Convention and Visitors Bureau. “We are also very successful in converting meetings attendees into leisure visitors.”

Tucson’s Loews Ventana Canyon has more than 37,000 square feet of meeting space available. PHOTO CREDIT: Loews Ventana Canyon.

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THIS IS PHOENIX. Somewhere, a giant concrete box passes for a convention center. Somewhere, chain restaurants attract patrons like bug zappers attract mosquitoes. Somewhere, taxi rides take forever and walking is a lost art. But not here. Not in downtown Phoenix. Here, the convention center is a glass-and-stone marvel inspired by the colors of the Grand Canyon. Here, local chefs reward patrons whoâ&#x20AC;&#x2122;d rather discover a restaurant than have it thrust upon them. Here, Point A is never far from Point B, and the space between is spanned by sunny sidewalks and sleek light rail trains.

This is Phoenix. Why hold your next meeting merely somewhere when you could make it memorable here?

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The Westgate City Center sports and retail mega complex located at Glendale Avenue and Loop 101 has redeﬁned Glendale dining and night life.

TRAVEL INDUSTRY GENERATES TAX BENEFITS FOR ARIZONANS

In 2011, the travel industry generated $1,030 in local, state and federal tax receipts for each Arizona household. To put the travelgenerated state and local government revenue into perspective, consider these facts: ✱ The travel industry accounted for almost seven percent of all state and local tax revenues in Arizona in the 2010-11 ﬁscal year – more than twice the industry proportion of statewide earnings and gross domestic product. ✱ Most of the travel industry tax receipts are a result of visitor spending rather than taxes on Arizona residents. ✱ The proportion of tax receipts generated by the Arizona travel industry in relation to industry GDP is twice as great as the statewide industry average. ✱ The tax revenues generated by the travel industry are relatively more important for the non-urban areas of the state as compared with the urbanized areas of greater Phoenix and Tucson. Source: Dean Runyan Associates

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Future expectations Since 2008 and 2009 — the low point for Arizona tourism in the wake of the economic downturn — tourism-related tax revenue has risen across the state and as much as 60 percent in some regions of Arizona. “The hospitality industry is a primary driver of the Arizona economy,” says Andy Ernst, regional vice president of Robert Half International, a professional staffing and consulting service. “We anticipate that Arizona will continue to experience healthy growth in the coming years as hotel occupancy continues to rise, and business comes back to the state.” With a bright financial outlook for the meeting and convention industry nationally, experts expect Arizona to ride the momentum. “At this point, Arizona is positioned to follow the national trend,” Hughes says. “As the economy improves, travel increases. Organizations will soon be willing to reinvest in the positive outcomes that meetings and conventions provide.” The groups that met at the Phoenix Convention Center in 2011 accounted for more than 240,000 attendees and $350 million in estimated direct spending, according the MacKenzie. That surpassed the previous year’s direct-spend total by nearly $10 million, and it reﬂects the drawing power of the renovated and expanded convention center and additions to downtown, including CityScape. “However, that’s a performance that likely will not be repeated soon,” MacKenzie says. “The number of convention attendees we’ve booked for 2012 is down 20 percent compared with 2011.”

office space.

give your next event room to breathe. Casino Del Sol Resort presents a new place to gather unlike any other in Tucson. Experience our elegantly appointed guest rooms and suites, five great restaurants, a unique pool, and a spa & fitness center. Our new Conference Center features a beautiful and flexible 18,000 sq. foot Grand Ballroom which divides into five individually accessible meeting rooms, accommodating corporate events from 30 to 1800 and banquets and receptions of up to 2000 guests. Casino Del Sol Resort also hosts outdoor events with distinction and grace. A 13,500 square foot deck winds through the palms surrounding the terrace and pool, resplendent with roomy poolside cabanas, and a 30,000 sq. foot lawn adorned with a wedding gazebo. It’s all new and it’s all spectacular…raise your expectations for your next meeting or event at the new Casino Del Sol Resort!

resort | spa | conference center | amphitheater | golf

i-19, exit valencia west, 6 miles | 855.sol.stay | casinodelsol.com an enterprise of the pascua yaqui tribe AB | September-October 2012 99 Please play responsibly. If you have a gambling problem, please call 1-800-639-8783.

PHOTO COURTESY OF SCOTTSDALE CONVENTION & VISITORS BUREAU

MEETING PROFESSIONALS INTERNATIONAL

The Hotel Valley Ho opened in 1956 before Downtown Scottsdale was downtown. It now draws crowds because of its chic and meticulous renovation.

MacKenzie attributes the decline to the recession, a 30 percent cut to the CVB’s budget, the removal of half of our Prop 302 marketing funds, and client backlash from Arizona’s role in the immigration debate, and the “A.I.G. effect,” the tendency of corporations to cut down on lavish expenditures and luxuries in areas like travel and meetings to avoid appearing wasteful in times of economic SELECTED ARIZONA EXPORT-ORIENTED downturn. The A.I.G. effect became a reality because of the negative INDUSTRIES, 2011P publicity generated by some practices of the insurance giant A.I.G. “Keep in mind: This year’s and next year’s conventions were TRAVEL booked from 2008 to 2010, during the depths of the recession and during the first year of the immigration debate,” MacKenzie says. MICROELECTRONICS “The typical booking window for citywide conventions is two to five years out—i.e., a group usually selects the site of its 2012 convention by 2010.” AEROSPACE Despite some challenges, experts agree that the long-term appeal of Arizona should allow the state’s convention and meeting industry AGRICULTURE to ﬂourish. “We’re seeing an increase in business from third-party planners, and the corporate segment is strengthening as well,” Blubaum points out. MINING “Plus, healthcare continues to be a strong segment. Canada also is a grow$0 $2 $5 $6 ing market for Scottsdale, which is why we are increasing our efforts to $1 $3 $4 drive additional meetings business from key Canadian cities.” EARNINGS IN BILLIONS 100 AB | September-October 2012

where

NEW WEST meets old west

where business meets pleasure Glendale, Arizona and the West Valley are ready to host your next big event in one of the country’s top travel destinations. Located just minutes from downtown Phoenix, you’ll enjoy year-round golf, entertainment and attractions. Plus a wide range of indoor and outdoor meeting space ideal for groups from 7 to 73,000.

GLENDALE , AZ CONVENTION & VISITORS BUREAU Showcasing the West Valley

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MEETING PROFESSIONALS INTERNATIONAL By MICHAEL GOSSIE

Pass the chips

Technology helps meeting and conference industry expand its scope, become more interactive

e don’t catch up over coffee anymore, we catch up on Facebook. Technology has changed the way we date, invite people to parties, and even watch TV. It’s only natural that technology will change the face of business meetings and conferences. “As a chapter, we utilize social media outlets — Facebook and LinkedIn — to promote our meetings and events and to share information industry-wide,” says Donna Masiulewicz, CMP, president of the Arizona Sunbelt Chapter of Meeting Professionals International. “We also use these means to educate those outside the industry about the power of meetings.” Mara Weber, global marketing and communications director for Honeywell Process Solutions in Phoenix, has taken the use of technology a step far beyond Facebook. “We held a global sales and service kickoff meeting on a virtual platform, with live broadcasts of a general session in two time zones,” Weber says. “The objective was to align our global team on growth initiatives, portfolio offerings, key messages and how to sell the value to our customers.” While Weber says virtual meetings — which experts expect to triple in the next five years — give companies the ability to create a global footprint and bring content to an audience when and where it’s convenient for them, there are logistical challenges that need to be overcome. “To be honest, the time and energy required and cost is far more than people realize,” she says. “You need to start with a very spe102 AB | September-October 2012

cific plan of attack, keeping goals and results in mind and making sure you are creating the right content in the right format. Video format, platform format, firewalls, testing in varied browsers and software versions, ability to convert files and stay ﬂexible at all times is just the start. You also need to think past the technical to the end-user experience and also branding to create a visual environment and help messages that guide attendees or they quickly get frustrated and jump off. It’s not like being lost at a trade show and being able to view a map and ask people for directions. The audience is largely on their own and you have to think about their experience every step of the way, how they behave, how you want them to behave, download, ask, engage.” Weber believe the best use of virtual meetings are as a component of a live, face-to-face event, extending the value of the content through the web to attendees who cannot travel or have abbreviated schedules. “We chose to do a fully virtual kickoff meeting because we have over 3,500 sales and service team members in more than 100 countries,” she says. “The cost and logistics of face to face meeting is not reasonable.” Weber says Honeywell has piloted virtual meeting a couple of times with customers when they can focus on a specific, targeted topic. And even in the high-tech world that Honeywell does business in, change isn’t embraced easily. “Our customer base does not seem to be accepting,” Weber says. “By nature, they are engineers and like live demonstrations, talking face to face with experts and networking.”

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MEETING PROFESSIONALS INTERNATIONAL

Technology impacts the meeting industry Here are five way ways experts say the use virtual technology is changing the face of the convention, conference, meeting, event, and trades how industries: ways he says you can use virtual technology to enhance your meetings.

WEB CONFERENCING: Connects meeting attendees and speakers in different locations by using VoIP (voice over Internet protocol), which allows real-time streaming of audio and video. More hotels and business centers are also adding high-definition virtual conference rooms that can be used to host hybrid sessions.

ONLINE COLLABORATION TOOLS: Open source your meetings and events by allowing virtual participants to share documents, Web pages, whiteboards, slide decks, audio, and video ... all in real-time. Some Web conferencing systems allow you to record your events, thereby creating a collective knowledge base. These tools can be used for small meetings or for larger groups of thousands.

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SOCIAL MEDIA CHANNELS: Often called the â&#x20AC;&#x153;backchannel,â&#x20AC;? social media represent the virtual conversations taking place in the background before, during, and often long after your live meeting or event. Take the time to set up and promote social media activity through things like assigning a specific Twitter hashtag for your event, creating event-specific Facebook and LinkedIn pages, and setting up Foursquare check-in locations.

REMOTE PRESENTERS: Use a streaming video feed of a speaker who is in a different physical location. This can be done as a realistic 3-D hologram, or a live feed of your guest speaker. Remote presenter options can be a great way to attract high-profile speakers who may not have the time to travel to a physical event.

LIVE WEBCASTS: Broadcast your keynotes, general sessions and breakouts by streaming your live audio and visual presentations via the Internet in real-time.

New Styles... New Ideas... The New Venue....

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MEETING PROFESSIONALS INTERNATIONAL

PHOTOGRAPH BY: GORDON MURRAY, SUPER PHOTOVIDEO

AZMPI elects new board

“AZMPI has gained momentum creating excellence within the meeting industry through education, certification, advocacy and business-to-business networking opportunities for our members,” said AZMPI President Donna Masiulewicz, CMP. “We

look forward to continuing the momentum of education and professional development of our members. Anyone who plan or supports meetings in any capacity, whether an administrative assistant or a caterer, can benefit from what AZMPI offers.”

The Arizona Sunbelt Chapter of Meeting Professionals International (AZMPI) inducted new board members for the 2012 – 2013 year.

Director of Public Relations & Marketing: Julia-Isabel davenport, PMP, Maximize Your Publicity Director of Retention: Chip headman, Williams & Associates

ThE NEw bOARd INCLudES:

(BOTTOM ROW LEFT TO RIGHT) Executive Director: Joanne winter Director of Monthly Programs: Susie Molinich, Maxvantage Meetings Immediate Past President: Rochell Planty, CMP, CTA, Rockin R Meetings & Events President-Elect: Jill Longfellow, Enterprise Holdings, Inc. Vice President of Finance: Penny Allphin, ChME, Hassayampa Inn Vice President of Education: Cristin barr, CMP, Ritz Carlton Dove Mountain Vice President of Communications: Stephanie wynn, CMP, Eventify (not pictured)

(TOP ROW LEFT TO RIGHT)

Director of Strategic Alliances: david Rosenbaum, ChME, Carefree Resort & Conference Center Director of IT: danielle Adams of KCA Director of Special Events: Tiffany higgins, The Tiffany Event President: donna Masiulewicz, CMP, Timeline Meetings & Events Director of Recruitment: david borsheim, Hotel Palomar Vice President of Membership: david brokaw, Loews Ventana Canyon

106 AB | September-October 2012

The perfect meeting needs the perfect touch.

Work in style at Scottsdaleâ&#x20AC;&#x2122;s most accommodating event destination with Four Diamond rooms and plenty of indoor/outdoor meeting space for groups up to 2,000. Then play in style with our world-class dining options, luxury spa, thrilling casino and championship golf. scottsdale | 877.724.4687 | talk ingstickresort.com Proudly owned and operated by the Salt River Pima-Maricopa Indian Community. ÂŠ2012 Talking Stick Resort

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MEETING PROFESSIONALS INTERNATIONAL

AZMPI honor the best in the business The Arizona Sunbelt Chapter of Meeting Professionals International (AZMPI) recognized award winners for the 2011–2012 year. Planner of the Year: Lisa Evans Supplier of the Year: Steve Dumond Edward E Scannell Award: Lynne Wellish, CMP CHSE Sponsorship Award: Desert Willow & Black Canyon Conference Centers by Sodexo Rising Star Award: Julia-Isabel Davenport, PMP James A. Fausel Student of the Year: Lindsey Dedina and Henry Gooden Host Property/Venue of the Year: Levy Restaurants and US Airways Center Committee of the Year: Fun Events Member of the Year: Don Ortiz President’s Achievement Award: Grant Boice, Cherrill Satterfield and Bobette Gorden Chapter Gold Sponsors: US Airways and Tempe Tourism Office

“We strive to promote excellence within the meeting industry through education, certification, advocacy and business-tobusiness networking opportunities for our members,” said AZMPI Immediate Past President Rochell Planty, CMP, CTA. “It was my distinct pleasure to recognize these members for their outstanding contributions.” 108 AB | September-October 2012

Intimate. Upscale.

Scottsdale’s Perfect Alternative For Smaller Meetings. Ranked as one of Scottsdale’s best hotels on TripAdvisor, this more intimate and upscale alternative to larger resorts is centrally located in beautiful Gainey Ranch. Stylish suites feature the plush new Gainey Suite Dreams Bed and all the comforts of home, including HDTV and free WiFi throughout the property. Plus, guests enjoy a complimentary full hot breakfast buffet and evening reception daily. Flexible function space includes two well-appointed boardrooms, the Gainey Ballroom, and the Hearth Room and Terrace Patio for conference dining. 7300 E. Gainey Suites Dr. Scottsdale, AZ 12-GAIN-1382 AZBusiness v2.indd 1

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MPI

The impact of MPI

Meeting Professionals International (MPI), the meeting and event industry’s largest and most vibrant global community, is celebrating 40 years as a strong and diverse community of meeting and business event professionals. MPI helps members thrive by providing human connections to knowledge and ideas, relationships, and marketplaces. MPI membership is comprised of more than 21,000 members belonging to 71 chapters and clubs worldwide. For additional information, visit mpiweb.org. Active since 1979, the Arizona Sunbelt Chapter is MPI’s 13th largest chapter in the world. The organization is comprised of 400 members throughout Arizona, representing a mix of corporate, association, government and independent meeting planners, suppliers who provide a variety of products and/or services to the meeting and hospitality industry as well as student and faculty from our local colleges and universities. The local chapter offers members educational, networking, and community volunteer opportunities, plus industry certification and professional growth opportunities. For more information, contact Executive Director Joanne Winter, at 602-2771494 or visit the chapter website at www.azmpi.org. More than 98 percent of MPI members say the organization helps in their professional success. Here are the top 10 reasons why: The power of connection: Through membership, members can make crucial connections to people, ideas, and marketplaces which can take their business or career to the next level. Leave the learning to MPI: MPI’s Global Knowledge Plan provides members with a customized a learning path that ensures appropriate career and personal development at every stage of their careers. Establish roots: On a local level, members make valuable, lasting connections through local chapter involvement. It’s an ongoing opportunity for industry professionals to share information, support one another, create mutually beneficial alliances, and raise national awareness for their local professional community. The insider scoop: Members receive the organization’s award-winning magazine. Members get a weekly e-mail publication featuring reports on the latest chapter, association and industry developments. Raising your profile: MPI’s professional certification opportunities set the standard for the meetings and events industry and guarantee members receive the best training in the business. Spotlight your brand: Members market their business by utilizing MPI’s global marketplace, MPIWeb, One+ magazine and One+ EMEA. In-the-office assistance: MPI works to develop online resources and provides educational options via the Web, giving members skill development without travel time and expense. MPI members have online access to vital industry research and data. Keep pace with the global industry: MPI’s gatherings present educational offerings from small discussion groups to keynote presentations, and CEUs are awarded for participation in general sessions and workshops. Get recognized: The MPI RISE Awards — Recognizing Industry Success and Excellence — honor excellence both inside and outside MPI, and emphasize transformational change, innovation, and industry impact. On the job: MPI’s online career portal — Career Connections — provides free access to industry-specific opportunities and a library of helpful articles. Job-seeking MPI members can use the site free. AB | September-October 2012 111

FIRST-RATE RATES FOR SECOND TO NONE EVENTS.

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Don’t forget, ‘tis the season to plan holiday parties! This year, experience Sands, our most unique event venue. Perfect for events of all sizes, with a fun and funky vibe. You’ll have the best holiday party of the year.

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