AZBusiness May/June 2020

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MAY // JUNE 2020

$4.95

CRISIS MANAGEMENT HEALTHCARE

14

BANKING AND FINANCE

16

LAW

22

SOUTHERN ARIZONA ECONOMY

FROM LEFT: Justin Chase, Crisis Response Network; Leonardo Loo, Quarles & Brady; Mike Brown, WaFd Bank Arizona; Abbie S. Fink, HMA Public Relations; and Dr. Lorrie Henderson, Jewish Family & Children’s Service.

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Table of Contents 6

Trendsetters

12

Leadership Spotlight

14

Healthcare

16

Banking & Finance

22

Law

26

Technology

30

Real Estate

HOW TO FIND CALM DURING CHAOTIC TIMES

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34 Southern Arizona Economy 38 Marketing 40 Staycations

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44 Crisis Management

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When we started planning this issue of Az Business magazine in January, this issue was going to look much different than it looks today.

The cover story was going to focus on the finalists of our first Arizona Business Innovation Awards. The feature would serve as a preview of the awards event, which — like most events scheduled for this period in our lifetimes — was postponed.

As much as we all like to be organized and as much as we like to plan, sometimes life gets in the way — or in this case, a virus.

But as I was giving the cover of this issue a final look before we went to press, I realized that the subject matter of the cover never really changed. Even though the headline reads “Crisis management,” managing through a crisis is still all about innovation. Surviving a crisis is all about doing things differently, finding new ways of operating, trying to find calm in chaotic situations, and succeeding in an evolving and unpredictable environment.

And we could not have found five more innovative business leaders — Mike Brown from WaFd Bank Arizona, Justin Chase from Crisis Response Network, Abbie Fink from HMA Public Relations, Dr. Lorrie Henderson from Jewish Family & Children’s Service, and Leonardo Loo from Quarles & Brady — to give the rest of us guidance on how to get through the next crisis we will all undoubtedly face in our careers.

If there is one thing of which we can all be certain, it’s that we will all face uncertainty in our business careers, so you’ll want to read the advice these experts have on how to handle adversity.

And don’t worry, we still plan to host the Arizona Business Innovation Awards this fall, so you’ll be able to meet the 30 most innovative companies of 2020. Stay tuned.

CONNECT » GUIDE » INSPIRE

MAY // JUNE 2020

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CRISIS MANAGEMENT ARIZONA ENERGY CONSORTIUM

28

ARIZONA TOURISM

58

HEALTHCARE SPECIAL REPORT

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SUN CORRIDOR

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FROM LEFT: Justin Chase, Crisis Response Network; Leonardo Loo, Quarles & Brady; Mike Brown, WaFd Bank Arizona; Abbie S. Fink, HMA Public Relations; and Dr. Lorrie Henderson, Jewish Family & Children’s Service.

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On the cover: Justin Chase, Crisis Response Network; Leonardo Loo, Quarles & Brady; Mike Brown, WaFd Bank Arizona; Abbie S. Fink, HMA Public Relations; and Dr. Lorrie Henderson, Jewish Family & Children’s Service. (Photos by Mike Mertes, AZ Big Media)

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

AUGUST 2020

Please join us for an evening of inspiration and connection.

AZ Business & AZRE magazines are proud to host the 2020 Most Influential Women Awards Dinner. We’re excited to announce that we’ll be honoring 50 outstanding women for their impact to their organizations, to the region’s business climate and to our community. All fifty women will be recognized and awarded at the dinner as well as within the July/August issue of AZ Business and AZRE magazines. In addition, we’ll unveil and announce specialty award winners in several areas of leadership. Please join us for an evening of networking, connecting and celebrating the accomplishments of this year’s class of Most Influential Women.

Corporate Tables and Corporate Sponsorships available.

Signature Sponsors

azBIGmedia.com

602.277.6045

SHOUT-OUTS

President and CEO: Michael Atkinson Vice president of operations: Audrey Webb EDITORIAL

BUSINESSES BOOST THE COMMUNITIES THEY SERVE DURING CRISIS When AZ Big Media decided to postpone its Real Estate Development (RED) Awards in the wake of the coronavirus crisis, the company donated more than 400 meals that were scheduled to be served at the event to Valley nonprofits. That’s just one example of how Arizona businesses stepped up to help others get through the crisis. Here are some others:

Editor in chief: Michael Gossie Associate editors: Steve Burks | Alyssa Tufts Interns: Endia Fontanez | Mallory Schnell Contributing writers: Joan Koerber-Walker | Eric Olsen Ed Purkiss | Steven G. Zylstra

ART Design director: Bruce Andersen Art director: Mike Mertes MARKETING/EVENTS Marketing & events manager: Aseret Arroyo Digital strategy manager: Gloria Del Grosso Marketing designer: Heather Barnhill

APS: APS contributed $250,000 to the AZ Coronavirus Relief Fund, supporting organizations working to mitigate the impact of COVID-19 in the state.

ARIZONA DIAMONDBACKS: The Arizona Diamondbacks Foundation announced the donation of $1,050,000 to Arizona-based nonprofit organizations that will immediately assist in helping those most vulnerable during the current national emergency.

DESERT FINANCIAL CREDIT UNION: Desert Financial Credit Union donated $500,000 in emergency funds to five Valley non-profits supporting critical community needs in the wake of COVID-19. United Food Bank and St. Mary’s Food Bank each received $150,000, while Midwest and Desert Mission Food Banks each received $50,000.

Valley of the Sun United Way received an additional $100,000.

GILA RIVER HOTELS & CASINOS: The day before its temporary closure, Gila River Hotels & Casinos received a delivery of $60,000 worth of perishable food items and made the decision to donate them to Gila River Indian Community (GRIC) elders and families.

OFFICE Special projects manager: Sara Fregapane Administrative assistant: Brandi Collins Database solutions manager: Amanda Bruno AZ BUSINESS MAGAZINE Senior account manager: David Harken Account managers: April Rice, Sharon Swanson AZ BUSINESS ANGELS AZ BUSINESS LEADERS Director of sales: Sheri Brown AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry EXPERIENCE ARIZONA | PLAY BALL

ONEAZ CREDIT UNION: OneAZ Credit Union and OneAZ Community Foundation pledged to award $200,000 in emergency COVID-19 Community Impact Grants as part of their commitment to helping Arizona communities. It also donated 40,000 N95 respirator masks to Banner Desert Medical Center.

Director of sales: Jennifer Swanton

WELLS FARGO: The Wells Fargo Foundation made two $50,000 donations to Arizona Boys & Girls Clubs of the Valley and Foundation for Senior Living to support their community response to COVID-19 in the greater Phoenix area. The funding will help deliver critical relief to two high impact communities – workforce families with no childcare support and homebound elderly.

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 2020 by AZ BIG Media. 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.

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RANKING ARIZONA Director of sales: Sheri King

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TRENDSETTERS

the IN ARIZONA If you Google “biggest companies in Arizona,” you’re going to end up with dozens of different lists based on even more sets of criteria.

But Zippia compiled a list of the biggest Arizona-based companies and ranked them according to total employee count. Here are the 50 largest Arizona-based companies, the location of their headquarters, and the company’s total employee count.

1

2

PetSmart

Banner Health Phoenix, 50,000

Tempe, 40,000

6 Sprouts Farmers Market

Phoenix, 53,000

Phoenix, 30,000

3

4

5

Circle K

ON Semiconductor

Freeport-McMoRan

7

8

9

10

Amkor Technology

The University of Arizona

Apollo Education Group

Knight Transportation

Chandler, 29,300

21,000 | Tempe | Arizona

Tucson, 28,390

State University | 11 20,000 | Tempe | Benchmark Electronics | 12 18,000 | Phoenix | U-Haul | 13 17,000 | Scottsdale | HonorHealth | 14 15,700 | Phoenix | Avnet | 15 14,460 | Scottsdale | Massage Envy | 16 14,234 | Chandler | Microchip Technology | 17 12,000 | Phoenix | Southern Copper | 18 11,949 | Phoenix | CSK Auto | 19 11,100 | Sahuarita | Asarco | 20 10,700 | Scottsdale | Magellan Health | 21 9,085 | Chandler | Bashas’ | 22 9,000 | Scottsdale | RIMROCK | 23 8,000 | Phoenix | Realty Executives International | 24 7,500 | Scottsdale | Pharm | 25 7,059 | Scottsdale | Rural/Metro | 26 7,000 | Tucson | Mister Car Wash | 27 6,700 | Scottsdale | TPI Composites | 28 6,697 | Tempe | Insight Enterprises | 29 6,339 | Phoenix | Arizona Public Service | 30

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Phoenix, 36,000

Phoenix, 28,000

Phoenix, 30,000

Phoenix, 25,400

31 | P innacle West Capital | Phoenix | 6,292 32 | AmCheck | Phoenix | 6,008 33 | GoDaddy | Scottsdale | 5,990 34 | Troon | Scottsdale | 5,936 35 | H yundai Engineering (HEC) | Mesa | 5,759 36 | C ity of Phoenix | Phoenix | 5,130 37 | Salt River Project | T empe | 5 ,123 38 | D rivetime Automotive Group | T empe | 5,000 39 | Flood Control District of Maricopa County | Phoenix | 4,710 40 | C avco Industries | Phoenix | 4,300 41 | Phoenix Children’s Hospital | Phoenix | 4,154 42 | Mesa Airlines | Phoenix | 4,113 43 | F irst Solar | Tempe | 4,100 44 | F orever Living Products | S cottsdale | 4 ,100 45 | K ona Grill | Scottsdale | 4,066 46 | S hamrock Foods | Phoenix | 3,995 47 | TMC Healthcare | Tucson | 3,888 48 | G rand Canyon University | Phoenix | 3,850 49 | S ervices Group of America | S cottsdale | 3,600 50 | Northern Arizona Healthcare | Flagstaff | 3,438

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TRENDSETTERS

PHX ranks as 7th-best airport for late travelers

HERE ARE THE WINNERS OF THE

2020 ADDY AWARDS

The Valley’s top advertising and creative professionals were honored as AAF Phoenix celebrated the winners of the 2020 local American Advertising Awards. The local nonprofit Chicanos Por La Causa took home the competition’s Best of Show Award.

University of Phoenix was also honored with Copywriting of the Year, and AIGA Phoenix, another local nonprofit organization, was awarded Art Direction of the Year. It was a record-breaking year, with more than 700 entries submitted from 77 entities. Here is a full list of the 51 winners: 180 Degrees Design + Build AE Media, Inc. AIGA Arizona ANDERSON Advertising ASU Enterprise Marketing Hub BIG YAM, The Parsons Agency Bob Case Illustration Chicanos Por La Causa Commit Agency Copper Post Cultivator Content Labs LLC DigitalWire360 EME Design Studio FabCom FACTOR1 Fiesta Bowl Fisher

Girl Scouts Arizona Cactus-Pine Council Grand Canyon Education HAPI Highnoon Ideas Collide Ivio Agency James Patrick Photography Knoodle Advertising LaneTerralever Lavidge Le Debut Animaton Matter Films Monomyth Studio Moses Inc Mya Kai Creative Off Madison Ave OH Partners

Outfront Media Polar Desert Studios ps:studios R&R Partners Red Knight Media Reelbros Media Resort & Spa ReThinc Advertising RIESTER Small Giants Splinter Creative SRP The James Agency True Story Films University of Phoenix Von Design Company Zion & Zion

Another 23 entries were submitted to the student ad competition, which is run adjacent to the American Advertising Awards. Eight total winning entries included students from ASU, Grand Canyon University, and Huntington University.

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Have you ever arrived to the airport late, cutting it close to your flight’s departure time? Almost everyone knows that stressful feeling. FinanceBuzz’s latest study looked at the 45 busiest airports in the U.S. to rank the best and worst airports for travelers who are running late and Phoenix Sky Harbor International Airport ranks seventh-best overall.

• T he average security line wait time at PHX is 16:23 minutes.

• P hoenix Sky Harbor International Airport offers CLEAR lanes.

• PHX has the highest volume of departing passengers compared to the other airports on the “best” list, meaning it has great efficiency.

SELFIES POWER SURGE IN PLASTIC SURGERY The American Academy of Facial Plastic and Reconstructive Surgery (AAFPRS), the world’s largest association of facial plastic surgeons, released a survey showing that selfie-awareness continues to influence consumer behavior at a rapidly growing pace.

In 2019, a full 72 percent of AAFPRS members report seeing patients seeking cosmetic procedures to look better for their selfies — up 15 percent from 2018.

JOIN US FOR AN EVENING OF

RECOGNITION AND CELEBRATION! October 15, 2020 Pointe Hilton Tapatio Cliffs Resort AZ Business magazine and Best Companies AZ are proud to host the 11th Annual Most Admired Companies Awards Dinner. This is the most comprehensive and prestigious corporate award program in Arizona.

Don’t miss this opportunity to celebrate your team, your leadership, your culture and let the business community know why you are one of the Most Admired Companies of 2020!

azBIGmedia.com 602.277.6045

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TRENDSETTERS How a 21-year-old Valley man could change your retirement Cudos, a financial services company based in Scottsdale, offers IRA-based retirement benefits to small business owners. Its simple, user-friendly system allows people to sign up for benefit plans online within minutes. Sam Winter, founder and CEO of Cudos, established the company in 2019 when he was just 21.

“Our mission is to make retirement benefits accessible to all workers,”

ARIZONA RANKS NO. 10 FOR RETIREMENT IN THE U.S.

Deciding where to retire is an important and serious decision.

Retirement Living wanted to know which states were the best for retirement and Arizona is the 10th best state in the U.S. for retirement. To determine which states are the best and worst for retirees, Retirement Living calculated the cost of living, cost of care, percentage of the population over 65 and surveyed more than 1,500 consumers about how they would rate their state. Some highlights:

Winter says. “For entrepreneurs who already have so much else on their plate, being able to access a program that helps them save and invest for tomorrow can free up time and energy to focus on what matters most – their business.

“I hope Cudos can help some of the more than 50 million workers who currently lack access to these benefits, start saving and investing in themselves and to make them realize, ‘I can potentially build the more secure future that I want.’”

• Housing and gas are reasonably priced in Arizona • Retirement communities and assisted living facilities are abundant throughout Arizona Sam Winter

CHASSE goes viral for local students Although school may no longer be taking place in physical classrooms, there is still a lot to be taught. That’s why CHASSE Building Team partnered with the office of Maricopa County School Superintendent Steve Watson on STEM Pro Live. STEM Pro Live is a free educational webinar featuring STEM professionals sharing experiences about their career preparation and their workplace. These STEM professionals tell students about their journey, answer their questions in real time, and help them discern career paths of interest to them. STEM Pro Live has featured engineers, app developers, researchers, business owners and scientists. CHASSE’s program was unique in that it was the first general contracting team to ever be featured, and — given COVID-19 — it was the first-ever program to be done truly virtually, meaning all members of the CHASSE team as well as Watson, teachers and students had to take part virtually, versus via the classroom and a recording studio.

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LEADERSHIP SPOTLIGHT

GOING THE DISTANCE OneAZ Credit Union leader says the goal of business is to help improve members’ lives

KIM REEDY: “Every leader should have an almost obsessive interest in helping people achieve their goals and objectives,” says the president and CEO of OneAZ Credit Union.

“When we’re doing that and helping our people be their best, then we’ll be able to reach our business goals.”

(Provided photo)

By MICHAEL GOSSIE

K

im Reedy says the athletic sense of determination he developed as a competitive runner helped him rise as a leader in the credit union industry.

“My background as a runner has impacted my leadership style tremendously,” says Reedy, the president and CEO of OneAZ Credit Union. “Coaching running and leadership are both grounded in a fundamental principle of helping each individual unleash their full potential. Running is all about being aware of what you’re capable of and pushing yourself beyond self-imposed barriers, whether they’re physical or mental. Leadership is the same — they’re both all about human performance.”

In December 2019, the OneAZ board selected Reedy as the organization’s CEO based on his 30 years’ financial industry experience, reputation for enhancing operational efficiency, and his ability to advance OneAZ’s vision of being a strong leader in the community, state and the credit union movement.

AB: What do you see as your greatest strengths as a leader?

KR: Listening. If I’m doing more than 50 percent of the talking in a meeting, that’s probably too much. It’s important for me to listen so I can clearly understand each person’s insight and perspective. It helps me assess their potential, where they’re at and what barriers they may be facing. It lifts my ability to truly help them increase their contribution. Plus, it helps me learn a lot.

Az Business: How did you get your start in the credit union industry?

Kim Reedy: I was working for a large bank in Southern California many years ago when I saw a classified ad for a marketing research position at North Island Credit Union. I applied, and that’s where I met retired OneAZ Credit Union President and CEO Dave Doss. He hired me for the role, and I’ve been in the credit union industry ever since.

AB: What are your current goals for OneAZ Credit Union?

KR: OneAZ is all about being there for all Arizonans. We will continue to expand our membership across the state and be there for more people by helping them reach their financial goals. We are also proud to employ some of the top talent in our field, and we will continue to be a premiere employer of choice for folks that want to join our team. When you focus on the community and your team, everything else falls into place.

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AB: How do you see credit unions fitting into today’s financial services environment?

KR: We fit into the financial services environment because we provide an alternative to traditional banking enterprises. When you join a credit union like OneAZ, you instantly own a share of our organization. Our profits don’t go to Wall Street — they go back to our member-owners in the form of lower fees, better rates and more competitive products. It’s all about channeling our earnings back into our members to help improve their lives.

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HEALTHCARE

SHOT IN THE ARM Here’s how Arizona’s bioscience innovators and healthcare systems are helping the world overcome the COVID-19 pandemic

By JOAN KOERBER-WALKER

S

pring cleaning took on a whole new meaning in 2020.

Spring cleaning in 2020 was not a recommitment to household chores but instead a society wide commitment to washing our hands and everything we touch. Handshakes are a thing of the past. Wearing a mask in public is a sign of social responsibility and for many of us, working from home has become There are moments in history that people remember the norm. For many, spring has brought financial hardships, throughout their lives. They can tell you where they were and illness, or the loss of loved ones. what they were doing. This is one of those times.

SEEDS OF CHANGE DECADES OF ARIZONA INVESTMENTS PAY OFF On January 20, 2020, based on data from the World Health Over two decades ago, people in Arizona committed to Organization, 282 confirmed cases of 2019-nCoV (COVID-19) investing to build our state’s bioscience and healthcare sector. had been reported from four countries including China (278 Arizonans kept that commitment through good times and rough cases), Thailand (2 cases), Japan (1 case) and the Republic of times. The result is today’s hospital systems, private research Korea (1 case). And, on that date, the first case on U.S. soil was institutes, universities and medical schools. We trained, attracted reported in Washington state. The first case in Arizona was reported on January 26th. By March 20th, COVID-19 had spread and retained our talent base, growing our workforce year after across the world with 234,073 confirmed cases including 81,300 year. We built up our labs and research centers, trained scientists, and medical professionals, started new businesses, and invested in China, 41,035 in Italy, 18,407 in Iran, and 10,442 in the U.S. in them so they could grow. with 63 in Arizona.

Arizona’s bioscience and healthcare sector has been deeply

By April 20, in Arizona and in many places around the world, people were living under stay-at-home orders. “Flatten the curve” engaged in supporting our community from the time COVID-19 and “slow the spread” were heard every day. More than 2.4 million began to spread and throughout the health emergency.

Since mid-January, the Translational Genomics Research people globally and almost 5,000 in Arizona are known to have Institute, an affiliate of City of Hope (TGen) has been actively been infected by COVID-19.

Before this is over, COVID-19 will have touched all of us in one engaged in the world-wide effort to test for the SARS-CoV-2 way or another. Some of us will have lost family or friends. Others virus that causes COVID-19 and to establish a statewide tracking will have memories of illness, of job loss, of new ways of learning, network for COVID-19 infections. After receiving Emergency Use or have memories of serving in ways they never imagined possible Authorization (EUA) from the FDA for its genomic-based test in early March, TGen began working with federal, state, county and in 2019.

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tribal governments, private healthcare providers and others to expand testing for COVID-19 in Arizona.

The Critical Path Institute (C-Path) is partnering with regulators and innovators to create tools that support the development and evaluation of therapies for treatment of COVID-19.

TRIF, the Technology & Research Initiative Fund, is supported by each of us every time we pay sales tax in Arizona. A tiny fraction of your sales tax (.072 percent of 1 penny or .00072 on each dollar spent) supports research talent and research programs at ASU, NAU, and UArizona. Today, these universities are working on vaccines for COVID-19, new medicines to treat people who are infected, personal protection equipment (PPE) for healthcare workers and first responders, and testing solutions so we can determine who is infected with COVID-19 as well as who has recovered from it and may be safe from future infection. All of us helped make this possible.

Twenty years ago, Arizona had only one medical school.

Today, the University of Arizona has two medical schools. A.T. Still, Mayo Clinic Alix School of Medicine, and Midwestern University are training future physicians in Arizona. Soon, Creighton University will be, too. Additionally, our universities and community colleges across the state are training nurses and medical technologists. Thanks to our investments in medical education, we have more highly trained medical professionals to help us through this crisis.

Arizona’s hospitals have made major investments in facilities and talent. Today, when we need them most, our healthcare teams are meeting the challenge and serving on the front lines to help people with COVID-19 and all of the other health challenges that did not disappear when COVID-19 began to spread.

Fry Laboratories has developed a Next Generation DNA sequencing solution for COVID-19 which can run 1,152 patient samples on one run of an Illumina MiSeq. They are distributing this technology to our nation’s largest clinical labs to help address the nationwide testing shortfall.

Telemedicine experts like GlobalMed are advancing the use of remote patient care while companies like AdviNow Medical are helping to route patients to the most appropriate point of care so that we do not overburden our emergency rooms. Life365 has developed solution sets to enable healthcare providers to manage patient care efficiently and safely at home.

PADT is engaged in several projects to assist the community with much needed PPE and critical solutions for medical devices in short supply.

At the Center for Entrepreneurial Innovation, a life science incubator in Phoenix, Xcellerate Biomedical has stepped up to manufacture PPE, while Desert Platforms is working to get FDA approval to expand our supply of ventilators. Fashion designers and sewists at FABRIC in Tempe are manufacturing FDA-certified reusable isolation gowns.

Everyone is doing their part to save lives and to get us through this crisis.

WHEN WE EMERGE In its biennial report on the progress of the biosciences in Arizona on April 15, 2020, the Flinn Foundation said Arizona’s bio and healthcare industries include more than 126,139 bioscience jobs as of 2018, including 29,569 non-hospital bioscience jobs. The non-hospital bioscience job growth rate was 15 percent between 2016 and 2018 in Arizona, compared with 7.2 percent nationally. Venture capital investment reached a 20-year high, and millions of square feet of real estate was being developed to house Arizona’s growing biotech and MedTech industries. Like so many other sectors of our economy, COVID-19 has created a significant shift in focus.

When this crisis has passed, and it will, Arizona’s bioscience innovators and healthcare systems will shift back to doing what we have always done — combining business and science to make life better for people in Arizona and around the world by discovering, developing and delivering life-changing and lifesaving treatments and tools.

As our focus shifts back to a wider range of cures and treatments, we will need the community’s help. As new innovations are developed, we need to move them forward. This will take funding for development, clinical trials, and all of the investments that make “miracles” possible.

AZBio is working to build a new model that will help fund early stage life science innovation in Arizona forever.

It is the kind of big idea that Arizonans can get behind and make a lasting difference, just as our big idea to build a bioscience sector 20 years ago is paying off today. We call it AZAdvances because that is what Arizonans do and what Arizonans create when we work together.

MEDICAL INNOVATORS STEP UP Meeting this challenge takes a global response. AZBio member companies are developing solutions to help diagnose and treat those with COVID-19. In addition to applying their scientific expertise to find ways to diagnose, treat and prevent infections from the virus, the biopharmaceutical and MedTech industry is providing financial support and in-kind donations to organizations and collaborating with U.S. and global health authorities to combat this global public health emergency.

Medtronic continues to make progress in increasing ventilator production worldwide. As of March 18, the company reported having increased production over 40 percent, and being on-track to more than double its capacity to manufacture and supply ventilators in response to COVID-19.

The list of AZBio member companies working on treatments and vaccines includes Amgen, Aqualung Therapeutics, Genentech, Gilead, GSK, Johnson & Johnson, Novartis, Pfizer, Sanofi and others.

Roche, Becton Dickinson (BD), TGen and GenoSensor have received Emergency Use Authorization from the FDA so their COVID-19 diagnostic tests can be used in Arizona and across the country.

TGen and our universities have increased testing Joan Koerbercapacity. This adds to the testing being done at our hospitals, the State Test Lab, Sonora Quest and Lab Corp. Walker

Joan Koerber-Walker is president and CEO of the Arizona Bioindustry Association and chairman of the Opportunity Through Entrepreneurship Foundation.

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BANKING AND FINANCE

SECURE

in retirement

Here are the most important things to know about how the SECURE Act is changing the way you retire 16

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By MICHAEL GOSSIE

T

he United States was facing a crisis among older Americans long before the coronavirus came along: A retirement crisis.

“The retirement crisis originated as a result of the shift away from defined benefits plans such as traditional pensions and other employer-funded plans, along with an increase in life expectancy,” says Brian Poe, CFP, wealth counselor at Versant Capital Management. “Previously, investors could rely on their employers to provide for their retirement needs — alongside Social Security payments. In the current environment, this is not the case.”

With an average life expectancy of 78.6 years old and an expected age of retirement of 62 years old, people need to save enough money to last at least 16 years. Unfortunately, less than half the population will have enough saved to maintain their standard of living, according to a report by the Boston College Center for Retirement Research.

“Statistics indicate the U.S. workforce has a significant retirement savings gap,” says Suzie Eyrich, senior wealth planner at BMO Wealth Management, “forcing many people to work well into their planned retirement years or pare back their ‘fun spending’ — such as travel and gifts to family — just to pay for their basic needs.”

In order to address this retirement crisis, the Setting Every Community Up for Retirement Enhancement (SECURE) Act went into effect Jan. 1 and includes many common-sense, long-overdue reforms that could make saving for retirement easier and more accessible for many Americans. Some of the key takeaways from the SECURE Act include: • It repeals the maximum age for traditional IRA contributions, which is currently 70.5.

• It increases the required minimum distribution (RMD) age for retirement accounts to 72 (up from 70.5).

• It allows long-term, part-time workers to participate in 401(k) plans.

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BANKING AND FINANCE

Dustin Mac Brown

Paris Davis

Suzie Eyrich

• It offers more options for lifetime income strategies.

• It permits parents to withdraw up to $5,000 from retirement accounts penalty-free within a year of birth or adoption for qualified expenses.

• It allows parents to withdraw up to $10,000 from 529 plans to repay student loans.

“The SECURE Act can’t completely address increased longevity and changes to how we work — i.e. increased contract and gig economy work,” Eyrich says, “but it does take steps in the right direction to expand the options and accessibility for workers to save for their retirement.”

So is there anything people should be doing now in response to the legislation?

“As a result of the SECURE Act, it’s important to revisit beneficiary designations with your wealth planner and estate lawyer,” Eyrich says. “If you named a trust as the ultimate beneficiary of your retirement plan, that plan may have some unintended tax and distribution consequences.

Eyrich says individuals should also consider whether a Roth conversion, or a series of conversions, fits into your plan, especially if your goal is to lessen the tax impact to your beneficiaries.

“This is also a good year to consider Roth conversions for your individual tax plan,” she says. “You may pay less in income tax on every dollar you convert today if tax brackets and account values are higher in the future.”

Whatever your situation, financial management experts say the SECURE Act has the potential to offset at least some of the absence of pensions in the workforce and the absence of retirement planning for many who work for small businesses.

“Many retirement readiness statistics are alarming, in that individuals have not secured their own financial future, even at a time where they could live more than 30 years in retirement,” says Sherry Hall, CFP, CWS, AIF, president and financial adviser at Hallmark Financial. “Employer incentives can assist small businesses in being the facilitator for their employees to contribute to their future and allow employers to match. It can be a win-win for all.”

Here is what Arizona wealth management experts say are the most important things to know about how the SECURE Act could change the way you retire.

IMPACT ON SMALL BUSINESS Chris Smith, founder, Chris Smith Investments: “The SECURE Act has relaxed many rules around establishing and amending 18

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Sherry Hall

Brooke L. Monahan

Brian Poe

retirement plans. This will allow business owners more flexibility in adjusting their retirement plan to the changing needs of one’s business.”

Paris Davis, senior vice president, WaFd Bank Arizona: “The Act will allow small business to ‘pool’ together smaller plans to create a larger retirement plan for their employees at a potentially lower cost.”

Brooke L. Monahan, senior counsel, Quarles & Brady: “There are several provisions in the SECURE Act that should make it easier for smaller employers to set up and administer retirement plans. For example, the introduction of pooled employer plans will allow smaller employers to join forces and create one retirement plan, which presumably will be more cost efficient and easier to administer. The Act also provides tax incentives for small employers who elect to set up a retirement plan for the benefit of their employees (up to $5,000 for three years, which increases by $500 if there is an automatic enrollment feature).

This should help to defray the costs related to setting up and maintaining a retirement plan.”

IMPACT ON THE INDIVIDUAL Thom Rindahl, wealth management advisor, TruWest Credit Union: “In the immediate future, I think two items will have the biggest impact on individuals: 1. For those individuals inheriting retirement plans from a non-spouse, that individual will no longer get the benefit of the stretch individual retirement account. Essentially, Mom and Dad pass away and leave junior with a 401(k) account. It used to be that Junior can make a lifetime income out of that inheritance and spread the tax liability accordingly. Not anymore. The account has to be liquidated within a 10-year timeframe. And 2. Part time employees who used to be excluded from company plans may now be eligible to participate in the company plan if they work 1,000 hours within a year or if they have three consecutive years of 500 hours of work.”

HOW INDIVIDUALS CAN BENEFIT Trevor Wilde, managing director and accredited investment fiduciary, Wilde Wealth Management Group: “With the RMD waiver for 2020, I believe there is an amazing opportunity for those people to consider converting portions of their traditional IRAs to a Roth IRA equivalent to why their RMD would have been. This would allow investors to move investments from their traditional IRA to their Roth IRAs and what we believe to be low levels. They pay tax on the amount converted but enjoy the gain tax free in the Roth.”

AB | May - June 2020 19

BANKING AND FINANCE

4 things businesses need to know about the SECURE Act Experts at BOK Financial say these are the four things businesses need to know about the SECURE Act:

Thom Rindahl

Chris Smith

Trevor Wilde

Poe: “The SECURE Act has the potential to give people more opportunities to save in tax deferred retirement accounts and make contributions later in life, as long as they have earned income. Given the elimination of the stretch IRA, savings into Roth IRAs and 401(k) appear to be more advantageous under the SECURE Act. This is particularly true for individuals that might not consume their account balance in their lifetime.”

Davis: “Under the new law, individuals are not required to take their RMD until the age of 72 instead of 70.5 as previously required. Individuals are living longer and working longer; this new age requirement allows individuals to work longer while they continue to build their retirement nest.

The delay of withdrawing from your retirement funds could provide additional advantages due to lower tax brackets.”

Dustin Mac Brown, CFP, AAMS, financial planner, DM Brown Financial Services: “The most important change in our office is not to our client’s retirement plans but to their legacy planning. We are reviewing all our multigenerational family plans to determine if spouse and generation skipping is appropriate to reduce the taxation. We are already seeing results in second and third generations financial well-being by an early influx of capital. This, of course, goes hand in hand with financial literacy for the inheritors. You shouldn’t give anyone a tool that they do not know how to use safely.”

Rindahl: “There are a few items to keep in mind when doing retirement planning for oneself based on the SECURE Act. First off, RMDs have been pushed back to 72. This is good for a couple of reasons. You don’t need to pull money out quite as soon if you don’t need it and there is no more trying to figure out which calendar year you are 70.5. In addition to this, for those individuals who enjoy working, the age limitation has been removed for making individual retirement account contributions. The last major item that individuals will want to look at with their 401(k)s and retirement planning is whether they want to utilize a lifetime income benefit. The SECURE Act has made it easier for plan sponsors to offer this type of an option.”

Hall: “One of the most exciting provisions of this act is the ability for individuals who are still working past the age of 70.5 to contribute to an IRA. With the aging of America and a healthy, vibrant work force in this age band, this allows for garnering more retirement assets as well as a potential current tax break.”

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AB | May - June 2020

1 2 3 4

Tax credits to offer retirement plans: Under the previous provisions, small businesses were eligible for a minimal tax credit, but that has been increased for starting a new employer plan. Combined with an additional $500 incentive for establishing automatic enrollment for employees, the incentive could result in a $5,500 tax credit for eligible startup costs for each of the first three years. These provisions are effective for taxable years beginning after 2019.

Extended time table to adopt a plan: Employers considering a new plan now have more time to adopt a retirement plan and still receive the tax benefits. The SECURE Act provisions allow for more flexibility to adapt the design of certain types of employer-funded plans after year-end, as long as it’s complete by the due date of your corporate tax return, including extensions.

Inclusion of part-time employees in 401(k) plans: Another future-looking provision applicable to defined contribution plans is the requirement to allow long-term, part-time employees to participate in employer-sponsored retirement plans. These employees would be required to work at least 500 hours for three consecutive years – that’s just an average of 10 hours per week. This provision only requires that employers allow these part-time workers to make their own deferral contributions. An employer contribution or match is not required until the employee has satisfied the eligibility requirements for employer contributions. This provision will not take effect until plan years beginning after 2020 when the three-year counting period begins. Therefore, participation would not be required to begin until 2024.

Increase in penalties for failure to file certain benefit plan filings on time: Consequences for missing applicable regulatory filing deadlines have steepened. For example, the penalty for failing to timely file a Form 5500 has increased from $25 per day to $250 per day for each day the filing is past the applicable deadline. The maximum cap for this per day penalty has also been increased from $15,000 to $150,000. Employers should be aware of what filings are required for their company benefit plans (both retirement and welfare plans) and have an understanding on the required filing deadlines. Don’t be late.

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LAW

THINK BEFORE YOU POST Here’s how social media can impact the hiring process

By ENDIA FONTANEZ

A

30-second scroll through Facebook uncovers a number of personal details from the lives of each of your online friends: Your colleague’s child’s high school graduation announcement.

Homemade french toast for breakfast. A fun night out. Birthdays, anniversaries, holidays and vacations.

It has become a social norm for people to take to social media feeds to post their feelings and photos of everyday lives and routines. However, experts say that you should be careful about the things you choose to share over the Internet, as certain posts can jeopardize your chances of getting or keeping a job.

According to a new Penn State study, 70 percent of employers research potential job candidates on social media before making hiring decisions. Additionally, 60 percent actually eliminate candidates based on certain social media posts that are seen as negative.

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Is that legal?

Jessica Post, director of employment and labor at Fennemore Craig, said it is perfectly legal for an employer to do so.

“Depending on the type of job that you want, it is best to have a social media presence, particularly a public one, that’s going to match it,” Post said. “I think it’s important for people to be aware that employers are looking at social media, and to stay cognizant of the decisions they make.”

Post said that she has seen cases of job applicants losing their chances of being hired due to social media pages that make the applicant appear to be angry, vain or lazy. One example is that sometimes people simply post too often, and it becomes apparent to a recruiter that the candidate is likely posting on social media while they are at work, which makes them an undesirable candidate.

However, Post said she does not encourage people to delete their social media presence altogether while hunting for a new job, as profiles that reflect a candidate’s best qualities can actually help them during the hiring process in some cases.

“Some public social media can actually help,” Post said. “If an employer goes to a LinkedIn account, it can support everything an employee says in terms of their job credentials.” That is just one example of how social media can positively contribute to a candidate’s interview process.

AB | May - June 2020 23

LAW

“It should be used as one of many tools that employers use to evaluate applicants, and it certainly needs to be done consistently by a centralized resource to ensure there is no abuse or potential violation of nondiscrimination or other laws,” — Joseph Clees Joseph Clees

Jessica Post

Misuse of social media Additionally, people can lose jobs that they already have if they misuse social media. One example Post cited was of a colleague seeing a racist Facebook post by someone in their workplace that made them feel unsafe. If a boss discovers that an employee is posting hateful content, they can be fired.

“I mean, it’s hard to forget, right?

Post said. “When you see someone post something that’s discriminatory towards you and then you have to see them the next day in the workplace, it’s hard to separate what you saw on their Facebook post. So in that circumstance, yeah, an employer could make a decision to terminate that employee who made that racist comment.”

Recruiters also must be cautious when using social media searches to eliminate potential job candidates, as there are certain protected categories that, if an employer is found to be using it to make an unlawful decision, it can result in legal action, according to Ogletree Deakins Shareholder Joseph Clees.

Some protected categories include age, race, religion, veteran status, health or disability, among others.

“For example, if the recruiter said, ‘Gosh, I looked at their social media and they look like they’ve been around for a 24

AB | May - June 2020

long time, and sometimes it’s hard to teach an old dog new tricks, or you know people who have been around for a while aren’t as educable as younger people are,’ well that would obviously be age discrimination,” Clees said.

Post said that another example of a protected category that could not be used to eliminate a candidate would be an employer discovering through a social media post that a candidate is pregnant or sick.

Protecting yourself Due to the prevalence of social media in today’s culture, courts often assume that employers are aware of things posted on job candidates’ social media pages. Therefore, employers need to be careful not to make any seemingly discriminatory decisions.

“Often, when social media is accessed, it can always be traced and there could be evidence that the site was accessed or the information was obtained that could later be used to prove that unlawful determination was made based on personal characteristics that were revealed through social media,” Clees said.

If someone believes that they have been unlawfully discriminated against because of something a recruiter discovered in a

social media post, they can take action to have the case reviewed by a judge.

“They could certainly register complaints internally with the employer or they could turn to the state or federal civil rights agencies,” Clees said. “If that’s the perception, I think applicants should be careful as well to manage their own social media, knowing that it may be accessible to employers or others. I’ve seen many cases where confidential information is inadvertently disclosed on a Linkedin profile, and Linkedin profiles are typically checked by employers in a job process.”

Clees said that employers can avoid possible legal trouble by implementing regular systems for social media background checks, or hiring a third party to do that type of job candidate research.

“It should be used as one of many tools that employers use to evaluate applicants, and it certainly needs to be done consistently by a centralized resource to ensure there is no abuse or potential violation of non-discrimination or other laws,” Clees said. “Employers should make it very clear what, if any, sites will be accessed, how that process will be managed, and ultimately that whatever decisions may or may not be made as a result of that are non discriminatory or otherwise compliant with all the applicable state laws.”

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TECHNOLOGY

INTRIGUE AND IMPACT Here is some of the hottest technology and innovation that is currently evolving in Arizona

I

n 2019, we ended the year with the announcement that more than 9,000 technology companies had started up, moved to or expanded operations in Arizona. Many of these companies— new and established—are producing some of the most innovative technology we have ever seen. And because of this, Arizona is attracting more talent and investment dollars, making our state one of the best in the country for innovation. In this article, I’ll be highlighting some of the most intriguing and impactful technology being produced in Arizona in 2020 and beyond.

These are the industries and companies the Arizona Technology Council sees as some of the most promising innovators and emerging segments in our state:

Aerospace and commercial space Arizona has been a popular destination for the aerospace industry for many decades because of the favorable climate for testing and development and the proximity to many military bases. This includes some of the biggest players such as Boeing, Raytheon (now merged with United Technologies), General Dynamics and Honeywell, all with significant Arizona operations.

Northrop Grumman, one of Arizona’s largest aerospace companies, completed the $7.8 billion purchase of Orbital ATK in 2019, significantly growing its presence in defense space applications.

Our state also hosts some of the most innovative organizations in the commercial space industry, including World View Enterprises, which is close to launching a fleet of balloon vehicles called World View Orbits. This type of spacecraft can float around Earth’s stratosphere to offer customers high-resolution imagery and analytics for a wide variety of uses. Arizona is also home to KinetX Aerospace, which is responsible for the navigation of many NASA missions such as the New Horizons spacecraft that recently reached Pluto. Iridium Satellite Communications is using 26

AB | May - June 2020

Steven G. Zylstra Technology

the final frontier to create a global communications network. By developing a global constellation of 66 cross-linked Low-Earth Orbit (LEO) satellites, the Iridium network provides high-quality voice and data connections over the planet’s entire surface, including across airways, oceans, and polar regions.

Our prestigious post-secondary institutions, Arizona State University (ASU) and University of Arizona (UArizona) are also major players in the aerospace sector. UArizona is currently working with NASA and other partners on the OSIRIS-Rex mission on the first-ever attempt to touch the surface of an asteroid, named Bennu, and create a 3D map of the asteroid, collect a sample of it, safely back away and return safely to Earth.

According to NASA, the purpose of the mission is to gather material from the very earliest days of the solar system — material that could carry clues about our beginnings and perhaps even the ingredients for life.

Among the many space and aerospace projects being conducted at ASU, in February 2020, an ASU aerospace project was among the highest scoring proposals for the MacArthur Foundation

$100 million grant and was designated in the top 100 proposals.

The grant will pay out $100 million to the winning proposal.

The project titled, Global Biodiversity Observatory, was started

by Greg Asner, director of ASU’s Center for Global Discovery and Conservation Science. Asner’s team currently maps land biodiversity, greenhouse gas emissions and coral reef health from a “super plane” equipped with 3D mapping tools. With additional funding, the observatory project will employ Earth-orbiting satellites with miniaturized imaging spectrometers connected through artificial intelligence to drive a new internationally accessible decision-support system, empowering a rapid reversal of biodiversity loss.

Education technology Arizona has quietly built the largest education technology (edtech) sector in the nation with more than 50 edtech companies selecting Arizona for their headquarters. We’re leading the way for an industry that is expected to grow to $252 billion by 2020, as reported by Harvard Business Review. Companies such as AB | May - June 2020 27

TECHNOLOGY

CampusLogic, Picmonic, Parchment and Proctorio are among our top homegrown companies. In addition, companies like Zovio, which started in San Diego, have taken notice and moved their headquarters here to take advantage of our knowledge base and resources in edtech.

Some of the innovation coming out of the edtech space include CampusLogic’s suite of products designed to help students overcome the hurdles of financing their education. Picmonic has developed a unique learning system via a novel multimedia web-based platform that delivers audiovisual mnemonics designed to improve memory retention of medical sciences. Zovio partners with higher education institutions and employers to deliver innovative, personalized learning solutions. Its network of solutions includes Fullstack Academy, TutorMe, and Learn@ Forbes, all designed and customized for each specific user.

Local leaders here in Arizona also started EdTechAZ to tackle challenges and support technology solutions that address innovation in our education ecosystem.

In addition, after seeing the impact of the COVID-19 virus, agile edtech organizations, academic institutions and platforms are becoming even more critical to maintaining the status quo during unfortunate circumstances and national emergencies.

The innovation surrounding edtech allows remote access to teachers, curriculum and resources for education. It also provides alternative methods of learning for children and adults.

Avnet is a leader in IoT services as it creates massive networks upon which new technologies can be built. The technology solutions provider is helping companies all over the world innovate IoT applications and integrate them into existing hardware and software. Benchmark is another company creating custom solutions through the development of innovative IoT gateways at its Tempe headquarters.

Semiconductor and microprocessor giant Intel has also been a major player with its development of the underlying sensor technology to enable IoT as well as providing the massive computing capacity required.

Economic development, technology and educational institutions are also working to grow Arizona’s presence in the wearables market. According to industry analyst firm CCS Insight, the global wearables market is worth $25 billion, with more than 245 million wearable devices sold. In 2019, the Arizona Legislature appropriated a $750,000 matching grant with a local match of $1,261,400 to build a 5,000-squarefoot WearTech Applied Research Center at Park Central Mall as part of a public/private collaboration between the Partnership for Economic Innovation, Greater Phoenix Economic Council (GPEC), Arizona State University and the Arizona government.

The goal of the facility is to create a hub for wearables innovation, as well as provide a center for startups in the industry with resources and opportunities to grow. According to GPEC, the project estimates 45 new ventures and 223 jobs will Electric vehicles be created over the three-year grant period.

The wearable innovation being produced at the WearTech One of the more exciting announcements emerging from Arizona’s technology sector came from Nikola and Lucid, two of the premier Center include a host of medtech and fitness devices. GoX electric vehicle manufacturers in the world. Arizona had already Labs has developed a body-worn sensor system for worker established itself as a top location for automotive innovation with wellness which includes a motion torso clip-pod, smartwatch, the explosion of autonomous vehicle testing. Now, electric vehicle smart insoles and a smartphone. The system tracks over manufacturers are paving the way for the industry sector.

20 physiological and biomechanical metrics that are key to Nikola has built its new research and development center identifying workplace injury risks. The company has partnered and corporate headquarters in Phoenix, as well as planning its with Samsung to develop and launch the system. Another manufacturing plant in Coolidge. When completed, these projects wearable startup, Hoolest Performance Technologies, has will add more than 2,000 jobs to Arizona’s economy. Nikola is created earbud technology called the P57 One, which applies also building zero-emission big rigs using hydrogen fuel cell small electric impulses that stimulate a branch of the vagus technology. The company has the potential to completely change the nerve near the ear. This activates the body’s response to induce electric vehicle industry and sustainability with revolutionary battery a calm and focused state. This product was featured on ESPN. advancements. Nikola also has a line of electric off-road vehicles.

This is just a small sample of some of the most innovative Lucid Motors has begun construction on its electric vehicle industries, companies and technologies leading the way for manufacturing facility in Casa Grande and plans to hire 1,400 people Arizona’s technology ecosystem in 2020 and beyond. Arizona by the beginning of 2023. The company will build luxury electric is fortunate to have an outstanding combination of a provehicles with an innovative battery system that could be scaled to technology government, regulations promoting growth and work across many vehicle types. They will compete with Tesla. innovation, a low cost of living, a better quality of life and great research universities compared to other traditional tech hubs.

IoT and wearables These factors make our state a wonderful place to launch a The internet of things (IoT) is another sector where Arizona will startup, test new technology and grow a business. The influx of continue to innovate in 2020. IoT offers a near-limitless number of innovation is surging, and the nation’s technology industry is applications, including autonomous vehicles. It’s also responsible for paying attention to Arizona. smart cities and homes, connected health care, and other uses that will become more prominent and continue to develop in Arizona.

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

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AB | May - June 2020

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REAL ESTATE

GREEN WITH LUXURY

What homeowners, homebuyers and developers need to know about golf course property

By ALYSSA TUFTS

P

ar, birdie and eagle are a few of the terms you’re sure to hear on a golf course — along with some joking and the occasional curse word.

For golf enthusiasts, purchasing a property adjacent to a golf course is a winwin for all involved — scenic views from the comfort of your own home, unlimited golfing opportunities, and the chance to be part of a community. While the unobstructed views may be what draw you to a home on a golf course, there are many considerations to discuss before making that leap. Residential property adjacent to a golf course garners an 8-12 percent premium, and luckily there are no shortage

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of unique courses in Arizona where you can make yourself at home.

“There’s nothing like the smell of fresh-cut grass and the unobstructed views behind the property, so I think that’s attractive to people,” says Allan MacDonald, principal of the MacDonald Team at Russ Lyon Sotheby’s International Realty in Scottsdale. MacDonald, who played golf professionally for eight years, says these homes in Arizona tend to be set back farther from the fairways, which also comes with a premium cost.

MacDonald says a majority of golfcourse property homebuyers are in their 60s or retired, and a lot come from the East

and West Coasts to enjoy golf and enjoy the winter months in Arizona’s perfect weather. A majority of golf courses also have country clubs for men and women to socially engage with neighbors and other residents, MacDonald says.

Beware of these issues Patrick MacQueen, founding partner of MacQueen and Gottlieb, says the No. 1 issue potential homeowners should be aware of are the trends in golf course play.

“You want a course that can sustain itself so you don’t run into situations where courses have to shut down due to lack of play,” he says, “so the health of the golf industry and the health of the particular golf course itself is very important if you’re considering buying on a golf course or developing on a golf course.”

In addition, other factors to consider are placement of the home on the golf courses, noises like golf course maintenance, potential damages from wayward golf balls, and lack of privacy in your backyard.

“A couple other things we tell people to look at is placement on the course itself,” MacQueen says, “so if you’re considering buying a house 250 yards down the righthand side, expect to get a lot of balls in your yard or hitting your house and then you run into potential insurability issues as well.” It’s also important to consider the lawn maintenance for the course, as they usually mow lawns early in the morning and that can disrupt sleep if you work odd hours MacQueen says.

MacQueen says some legal issues that may arise for potential homeowners or developers include adverse possession and prescriptive easement. Adverse possession is when golf course employees mow homeowners’ backyards and ultimately the AB | May - June 2020 31

REAL ESTATE

golf course ends up owning the property because they’ve used it enough for a period of time. Prescriptive easements allow someone other than the original property owner to gain the rights to use the property.

“There are disclosure issues that we run into as well,” MacQueen says. “If you’re selling, you have to disclose that golf balls hit your house. Another issue is reading the CC&Rs (Covenants, Conditions & Restrictions) and understanding what can be done on that course. For example, if I buy a house on a golf course, what if the golf course fails or what if there are significant water issues and they want to turn it from a lush golf course into more of a desert course. What does that do for my home and investment? Does it make it decline or does it make it go up? Those are things you have to make sure you’re understanding before building on a golf course lot or buying a house on a golf course.”

Bobby Lieb

Allan MacDonald

“I think that’s a big key — you don’t want to pay $1 million for a property when everyone can look in your backyard, so I think elevation is a big deal,” Lieb says.

“Golf courses have a lot of benefits that cater to a wealthy buyer because you’re paying a high premium for the house and the golf course and probably only come here for six months of the year.”

In addition, golf course properties don’t typically have big yards, Lieb says.

“Some newer golf courses subdivide the property to get as many homes as they can onto the golf course land. Therefore, they make the yard smaller,” in which case a homeowner could see it as sacrificing space It’s always about location for location and a better view. However, Bobby Lieb, associate broker at that compromise can be worth it for the HomeSmart Elite Group, says one of the right home. biggest considerations for developers and MacDonald says realtors should be homeowners is the location on the golf course.

“There are so many different definitions aware of the property’s orientation on the golf course. If a realtor is selling a turnof buying on a golf course,” he says. “You key home, they’ll want to consider the don’t want to be next to the tee box where orientation for homeowners who want to sit you can hear a conversation of a foursome outside on the patio in the afternoon and talking, drinking and being loud and your backyard’s right there. You also don’t want enjoy the sun, in which case southeast or southwest orientation would be preferred. to be in the flight pattern. If someone’s a bad golfer and they’re hooking shots, you Potential challenges may need a net up so your home doesn’t A challenge for developers with get damaged. So you can say you’re on a golf course, but if you’re next to the tee box residential golf course property includes a limited amount of space. or people drive their carts by your house, “Obviously, you’ve only got so much there’s no privacy.” fairway, so depending on the product, you If this is a deal breaker for potential have to be very creative with the land plan homeowners, Lieb says a lot of higher because otherwise you’ve got to figure out priced golf course homes in Scottsdale are elevated so the home isn’t at the same level how much lot premiums will be for golf course versus non-golf course,” MacDonald as the golfers.

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AB | May - June 2020

Patrick MacQueen

says. “Have a site plan that allows you to maximize as much golf course views or golf course access from the outdoor living spaces as possible.”

In addition, MacDonald says it’s crucial for the developer to establish what kind of relationship they have with the golf club.

“If it’s a private golf club, they need to decide what the makeup of their membership’s going to be,” he says.

“In other words, you can’t overdevelop and have too many homes for the membership. You’ve got to get ahead of the game in terms of deciding how many units are available and how many of those are going to be the golf club’s members.”

Although retirees make up a big portion of golf course communities, MacQueen says he has seen more families that want to move to a golf course area and are looking for more than just the golf course component.

“I would say retirees are looking for pure golf, whereas somebody with a family is looking for golf plus other sorts of amenities — like a soccer field or alternative things on the golf course to get kids into the game of golf,” he says.

“I’ve seen an uptick in other amenities that are drawing families here and I think that the golf communities have really had to reinvent themselves to attract the younger generations.”

Whether it’s for the stunning views, abundant golf or Arizona’s cooler weather, golf course properties are a chance to revel in luxury—the fairways await your next swing.

AB | May - June 2020 33

SOUTHERN ARIZONA ECONOMY

THE SOUTH IS

RISING Here’s how Southern Arizona’s residential developments are driving economic growth in technology, defense industries

DELIVERING JOBS: Amazon announced a new auxiliary distribution site that will receive and sort packages, create 300 jobs in Tucson and bring in $181 million over the course of five years. (Provided photo)

By ENDIA FONTANEZ

S

outhern Arizona’s economy has seen significant growth in the recent years, with the City of Tucson and its surrounding areas flourishing in both residential and commercial markets.

Sun Corridor Inc. acts as the primary sales and marketing agency of Southern Arizona, with the goal of attracting new companies, jobs, talent and capital investment. The Tucson-based economic development agency aims to promote Southern Arizona as a single economic entity by bringing together the interests of a broad range of private, public, academic and nonprofit groups.

President and CEO Joe Snell said that since last fall, Sun Corridor Inc. has helped boost the growth of relocation of companies like Raytheon, Distant Focus Corporation, PVB Fabrications, Modular Mining and Southern New Hampshire University.

A merger with United Technologies by Raytheon Missile Systems has created 1,000 new jobs in the area after announcing Tucson as the headquarters for its new Raytheon Missiles & Defense unit.

Distant Focus Corporation, an engineering firm that specializes in creating prototype cameras, advanced imaging platforms, multi-sensor electronic circuit boards and more,

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AB | May - June 2020

relocated its headquarters from Illinois to Tucson to be closer to the University of Arizona. Distant Focus is expected to add more than $27 million to the regional economy.

PVB Fabrications, Inc. expanded its headquarters to create 170 new jobs in Marana in quality welding and fabrication services. PVB aids construction projects by manufacturing metal components and other items crucial to building and development.

Recovery plan in place In January, Tucson welcomed a new Customer Experience Center (CEC) and expanded headquarters for Modular Mining.

The expansion will help the City of Tucson to further cement itself as a hub for mining technology.

In February, Southern New Hampshire University celebrated the opening of its new Southwest Operations Center in downtown Tucson. With the grand opening came more than 100 new staff positions in Tucson. The nonprofit, regionally accredited university provides quality education to students both online and on campus.

Snell said that despite the current global uncertainty caused by the COVID-19 pandemic, Sun Corridor Inc. has already begun crafting a recovery plan that he hopes will help keep Southern

AB | May - June 2020 35

SOUTHERN ARIZONA ECONOMY Arizona on track for further economic development over the coming years.

“Our team is actively reaching out to the region’s primary employers,” Snell said.

“We are assessing the current situation and garnering feedback to begin formulating recommendations for recovery.”

In addition to the economic expansion within the City of Tucson itself, some of its bedroom communities — such as the Town Victor Gonzalez of Sahuarita — have been experiencing steady economic growth over the last two fiscal years.

Victor Gonzalez, economic development director for the Town of Sahuarita, said that the residential sector alone has been booming since 2018, providing the town with its best years of development in at least a decade.

“The last time that we saw this amount of residential activity was prior to the 2008 housing bust,” Gonzalez said.

Gonzalez said that residential growth is usually based on the functions of the market and “responding to how the residential market in the region is faring.” Additionally, commercial growth tends to act in direct response to residential growth as demand increases for new retailers and jobs.

“It’s interesting to play out what’s going to happen over the next six months,” Gonzalez said. “We’re hopeful that our residential construction plans continue to move forward. We haven’t seen a slowdown in the residential side of things here, thankfully.”

One of the town’s biggest projects of late has been the Sahuarita Advanced Manufacturing and Technology Center (SAMTEC). The property is set to be completed in June, with more than 32,000 square feet allowing for multiple tenants and configurations. The center will create jobs for residents of Sahuarita and help businesses grow.

“It’s all in an effort to diversify Sahuarita beyond being a bedroom community,” Gonzalez said of the development.

Besides SAMTEC, some of Sahuarita’s other current projects include a large commercial shopping center anchored by a Sprouts Farmers Market and a new neighborhood hospital by Northwest

Hospital. The two-story hospital will open this fall and will include a full-service hospital and emergency room with 17 beds on the first floor and medical offices and services on the second floor.

Growth in sales tax Gonzalez said that one of the ways the community tracks growth and development is by analyzing the different categories of its Joe Snell sales tax collection. He said there has been growth in retail and trade, restaurants and bars, construction and rental/leasing tax, among others. Overall, the region has been trending upwards of about 11 percent year over year.

With the current economic climate being impacted by COVID-19, Gonzalez said it will be important to the town to see how retailers rebound and provide them with aid in any way they can.

“From an economic development standpoint, jurisdictions like ours will put more of an emphasis on small business assistance,” Gonzalez said.

Another factor that has contributed to Southern Arizona’s development is Alliance Bank of Arizona’s Community Reinvestment Act. Alliance Bank, which has two Tucson locations, hopes the act will strengthen communities by providing “access to quality education, safe and affordable housing, job opportunities, transportation and health care,” according to the organization’s website.

Alliance Bank of Arizona is committed to growing nonprofits.

The bank does this through its lending and investment programs and charitable contributions to “organizations that provide services and support in low- or moderate-income areas.” Alliance’s Tucson locations are dedicated to strengthening economic development in the area by “helping them realize their growth ambitions.”

Some other major economic developments in the Tucson area that have occurred in the last year include Amazon and GEICO. Global e-commerce leader Amazon announced a new auxiliary distribution site that will receive and sort packages, create 300 jobs in Tucson and bring in $181 million over the course of five years. GEICO also opened a new regional office in Tucson that will add 700 new positions to its already existing 1,500 regional employee count.

As the second half of the 2020 fiscal year approaches, Southern Arizona is expected to continue growing in its residential and commercial sectors, resulting in the region further strengthening its position as a hot spot for technology and innovation.

INSURING ECONOMIC SUCCESS: GEICO

opened a new regional office in Tucson that will add 700 new positions to its already existing 1,500 regional employee count. (Provided photo)

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MARKETING

Marketing

money savers Edward Purkiss and Eric Olsen Marketing

T

he events of the past several months have changed many of us, personally and professionally. As businesses push through and seek to emerge out the other side, many struggle with how to approach marketing, many wondering not only how to, but if they should invest in it at all.

Most of us understand that marketing – as well as public relations, it should be noted – is a long-term investment in one’s brand versus a one-time fix. But, most of us are also hypersensitive to cost right now. Given this, here are two ways to maximize one’s marketing dollars right now:

A semi-DIY website A website is not a want; it is a need. Given the cost to develop a fully functioning website can range from $5,000 to $40,000, many business owners have tried their hand at one time or another developing the site themselves, many of them pulling their hair out and cursing at their computer after about a day into what can be a tedious and error-filled process.

But, it need not be.

There are now companies that offer what is best described as a semi-do-it-yourself website, or maybe as a do-it-yourself website with training wheels. Products like this, which often cost less than $1,000, are quick and effective solutions for business owners who need a website immediately with as little effort as possible. In a few simple clicks, these products instruct a team on how to build the website, and then it grants you access to edit it immediately after. The best products allow the owner to 38

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simply enter the business’ details, choose a design from several templates, and give the virtual designer – actual human beings, not bots – content.

Here is a short list of what to look for from these service providers: advanced design and content tools; mobile-friendly design; templates tailored to your industry, unlimited customization; automatic SaaS updates; security and scalability; SSL and third party integrations, customer service contact information; and content writers.

SMS messaging Did you know that more than 90 percent of texts are read within three minutes of being received? There are very few mediums of communication that can claim the same effectiveness that texts enjoy. And today, 75 percent of people from most age ranges don’t mind being contacted via text one bit, many prefer it.

The term text message comes with multiple acronyms, with two of the most popular being SMS and MMS. SMS or Short Message Service, as stated above, is what many consider to be a text message. MMS or Multimedia Messaging Services, MMS uses the same technology though it can send multimedia content such as pictures and videos, or text without the constricting word count.

Both SMS and MMS use a cellular network, though an SMS message is limited to 160 characters, with messages more extended than that broken up into multiple messages. In comparison, an MMS does not have a character limit, but is restricted by the amount of data available, with the usual limit being 300kb per message.

SMS campaigns are affordable for all budgets and you also get a healthy return on your investment. Programmatic SMS delivery is the most cost effective communication today.

Eric Olsen is the founder of Fasturtle Digital, focused on offering fullservice digital marketing as well as Fastsites by Fasturtle, a semi-DIY website product. For more, visit fasturtle.com. Ed Purkiss is the founder of SMSGorilla, a locally owned provider of cost-effective SMS marketing services. For more, visit smsgorilla.com.

EVERY HOUR, ON THE HOUR 24 / 7 / 365 EXCLUSIVELY on 1100 KFNX www.1100kfnx.com AB | May - June 2020 39

STAYCATIONS

Chill out in the heat

Here are 10 of the best staycation deals of 2020 at Arizona’s hottest resorts

By MICHAEL GOSSIE

I

f there was ever a year we deserved some rest and relaxation after a stressful winter and spring, this is the year.

Arizona is home to some of the world’s most fantastic pools, luxurious spas, romantic retreats, spectacular golf courses and best restaurants.

So if you need a summer getaway — and don’t we all — why not stay in Arizona, support local businesses, and save money at the same time?

Forget about flight delays and rental cars because many of Arizona’s award-winning hotels and resorts offer summer deals that are designed specifically for local residents who want a staycation to get away from it all. The best part about experiencing Arizona’s best resorts in the summer is that many offer great deals and low rates.

Here are some of the best staycation deals for 2020.

Amara Resort and Spa

Sedona With the Last Night Is On Us package, guests booking stays of four or more nights at Amara Resort and Spa in Sedona will receive the last night of their trip for free. Valid for stays from June 1 to Aug. 31.

How to book: amararesort.com/offers

Great Wolf Lodge Arizona

Scottsdale Great Wolf Lodge Arizona will launch its first-ever summer camp-in experience for guests staying overnight at the resort. Expect brand new arts and crafts, camp-themed rooms and campfire-like treats.

How to book: greatwolf.com/arizona

Great Wolf Lodge Arizona

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STAYCATIONS Hotel Valley Ho

Scottsdale Enjoy the Sip + Splash Package at the mid-century chic Hotel Valley Ho, including a round of cocktails at OH Pool and breakfast for two at ZuZu, plus a stylish room upgrade (based on availability at check-in). Starting at $169; stay between May 25 and September 3.

How to book: hotelvalleyho.com with code SPLASH

Royal Palms Resort and Spa

Royal Palms Resort and Spa

Phoenix One of Phoenix’s most celebrated and awarded resorts, Royal Palms combines the sophistication of a storied Mediterranean villa with the intimacy of a secluded retreat. Available to book now for stays from May 26 through Sept. 8, guests can enjoy the lowest rates of the year starting from $159/night, which is up to 65 percent off high season rates of $499 per night, as well as waived daily resort and parking fees.

How to book: royalpalmshotel.com or 602-283-1234.

Kimpton Hotel Palomar Phoenix

Phoenix This summer, those looking to feel the nostalgia of summer camp can book the Countdown to Summer package offering rates from $99 per night (a 50% savings from peak season rates). The package includes two welcome summer camp cocktails redeemable at LUSTRE Rooftop Bar. How to book: hotelpalomar-phoenix.com/things-to-do-inphoenix/summer/

L’Auberge de Sedona

Sedona L’Auberge de Sedona encourages guests to disconnect from the daily stresses of life this summer and reset through a series of nature-inspired spa and wellness experiences. The property offers a collection of complimentary, daily experiences such as a moon meditation series, a creekside yoga stretch and s’mores roast.

How to book: lauberge.com

Mountain Shadows

Talking Stick Resort Talking Stick Resort’s Summer Playcation Package is full of fun, luxury and adventure! Hotel rates are at an all-time low this summer. In addition to access to gaming, spa services, pool time and more, guests will score a dining credit and additional discounts at Talking Stick Entertainment District as part of the package.

How to book: talkingstickresort.com or 866-877-9897.

Under Canvas Grand Canyon

Valle Under Canvas Grand Canyon is located outside Valle, Arizona near the South Rim on 160 acres of beautiful piñon and juniper forest. With daily summer activities ranging from hiking, horseback riding, Jeep tours, s’mores by the fire and more, the most difficult decision glampers have is choosing which adventure first.

How to book: undercanvas.com/camps/grand-canyon

Wyndham Destinations

Paradise Valley Enjoy the Sunshine & Dine Package at Mountain Shadows in serene Paradise Valley, including a round of poolside cocktails and breakfast for two along with a sleek room upgrade (based on availability at check-in). Starting at $189; stay between May 25 and September 3.

Throughout Arizona Find your home away from home at resorts across Arizona and enjoy a well-deserved staycation. Book your stay through September and save up to 25 percent on condo-style suites.

Take advantage of spaces with fully-equipped kitchens, separate bedrooms and most of the conveniences you have at home, plus unique resort amenities.

How to book: mountainshadows.com with code SUNSHINE

How to Book: extraholidays/arizonasummer

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THOUGHT LEADERSHIP

CRISIS

MANAGEMENT Business leaders offer advice on how to prepare for the unexpected chaos that is sure to come at some point in every executive’s career

By MICHAEL GOSSIE

T

here was no script to follow when the coronavirus crisis turned our world upside down.

But while it may have been the most global crisis business leaders have had to face in their careers, it’s far from the only one. Cyber attacks, the #MeToo movement, and account fraud scandals have all forced businesses — both big and small — into crisis management mode. So how can a business leader prepare for the unexpected crisis that is sure to come at some point in every executive’s career?

Az Business asked some of Arizona’s greatest thought leaders to offer guidance on crisis management. The leaders offering their insight are: 44

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• Mike Brown, Arizona region president, WaFd Bank Arizona.

• Justin Chase, president and CEO; and Chris Anderson, emergency management program administrator, Crisis Response Network.

• Abbie S. Fink, vice president and general manager, HMA Public Relations.

• Dr. Lorrie Henderson, CEO, Jewish Family & Children’s Service.

• Leonardo Loo, Phoenix office managing partner, Quarles & Brady.

THE DIFFERENCE BETWEEN AN ISSUE AND A CRISIS According to Abbie S. Fink, vice president and general manager of HMA Public Relations, it is important to properly identify whether or not you have an issue or a crisis, as each are handled in different ways. Effective communications strategies can help prevent some issues from becoming crises.

YOU HAVE AN ISSUE WHEN: • You have time to adequately assess the situation • You can describe the issue and implement an immediate response or solution • Typical business operations continue as normal • There have been no injuries, illness or death YOU HAVE A CRISIS WHEN: • Business operations need to be shutdown • There are injuries, illness or the potential for death • An immediate response is required • The Communications Management Team (CMT) is activated • Multiple stakeholders will be impacted AB | May - June 2020 45

THOUGHT LEADERSHIP Az Business: How should a business develop its crisis management plan?

Chase and Anderson: Crisis management planning should always start with more questions than answers. This process should never be considered a regulatory “check of the box.” If leaders want realistic and usable plans, they must commit to radical candor.

Fink: A crisis communications plan ensures that executive leadership at an organization will have the roadmap needed to take appropriate actions in a timely manner when and if a crisis arises. The plan, if used correctly, will minimize the impact of a crisis upon the organization and normal business operations. If followed accordingly, this plan will also: • Prevent long-term damage to the reputation of the organization • Keep confidence and satisfaction among the organization’s stakeholders • Maintain successful employee morale

• Protect financial resources and save management time • Avoid costly litigation At the outset, you should establish a Communications Management Team (CMT) consisting of individuals who have been given the authority to develop and implement the crisis communications strategy. The CMT should include representations from across the organizational structure.

In most situations, the CMT will handle or assist with most elements of a crisis … The CMT’s responsibilities include: • Pre-event contingency planning • Gathering incident information • Analyzing information • Developing strategies for resolution • Communicating information and decisions to stakeholders The following items should always be included in your crisis communications plan:

THOUGHT LEADERS

MIKE BROWN: Brown is the Arizona regional president of WaFd Bank, overseeing more than $1.4 billion in deposits across 31 branches statewide.

He also serves on the board and as the current vice-chair of the Care Fund, helping financially and resourcefully support Arizona families who endure financial hardship while experiencing extended illness or injury of their children.

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JUSTIN CHASE: Chase is president and CEO at Crisis Response Network. He is a nationally recognized expert in crisis systems, recovery-oriented systems of care, peer integration, nonprofit organizational leadership and development, and developing sustainable, effective and efficient healthcare programs and systems. He has served as a behavioral health administrator, executive, network/ program developer, direct practitioner and project manager.

ABBIE S. FINK: Fink is vice president and general manager of HMA Public Relations and has been with the firm since 1993.

Her varied marketing communications background includes skills in media relations, digital communications/social media strategies, special event management, community relations, issues and crisis communications management and marketing promotions for both the private and public sectors.

DR. LORRIE HENDERSON: Dr. Henderson is CEO of Jewish Family & Children’s Service. He has led an expansive career as an organizational and executive leader in the healthcare and behavioral health fields including hospitals, group homes, foster care, community-based services, prevention for children and families, developmental disabilities, residential programs in nonprofit and for-profit organizations.

LEONARDO LOO: Loo is the Phoenix office managing partner of Quarles & Brady and a member of its Business Law, Finance, and International Law Services Groups. He serves on the boards for Chicanos Por La Causa and the Arizona Community Foundation, and is general counsel for the Arizona Hispanic Chamber of Commerce.

THOUGHT LEADERSHIP

• Identify your stakeholders. This list should take into consideration your external stakeholders (customers, vendors, partners, investors, etc.) as well as your internal stakeholders (employees). Traditional, digital and social media outlets should also be included in your list of stakeholders. Be sure for each category you have appropriate contact information.

• Develop the roles and responsibilities of your CMT. A key role is determining who will serve as the spokesperson for the organization. Depending on the type of crisis, that may be the CEO or president or a department director.

• Key message development. General information about the organization should be readily available and included in all communications during a crisis. Information specific to the crisis should be prepared and disseminated on an ongoing and timely fashion. Keeping in mind that the situation can change quickly during a crisis so keeping this information updated regularly will be essential.

• Identify and assess example crisis scenarios. Outline possible

When a crisis hits, businesses typically get into trouble from a perceived lack of transparency, lack of communication, and lack of action.­ — LEONARDO LOO

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scenarios in advance and develop strategies for how you will respond. Possible scenarios should be considered across all areas of your organization.

It is important to review and update your crisis communications plan. Most specifically in the event that a crisis has occurred, there have been changes to your key leadership and/or individuals assigned to the CMT and if the plan has been updated in the past three – four months.

Az Business: What should a business tell stakeholders and the public when faced with a crisis?

Brown: Communicate. Communicate. Communicate. And then communicate. Transparency, both within the organization and to stakeholders — and to media as well — is critical. Similarly, authenticity is key. And it can’t be a strategy. It has to be who you are; what the business is built on. And this advice really applies to all the time, not just in times of crisis.

Loo: When a crisis hits, businesses typically get into trouble from a perceived lack of transparency, lack of communication, and lack of action. First and foremost, leaders need to rapidly gather as much credible and reliable information as possible to make informed decisions and relay their understanding of the crisis to stakeholders as soon as and as clearly as possible.

The danger is always wanting to wait until you have all the information before acting, but given the nature of most crises, one does not have the luxury of waiting until you have 100 percent information. Any delay in communication will be perceived as hiding the ball and avoiding the realities of the crisis.

At the same time, you need to ensure that the information you have is in fact reliable and trustworthy.

Once armed with information, you need to then be proactive and take immediate action. Organize a response team, empower that team, stay in front and visible, and communicate often with your stakeholders and let them know what you are doing to address the situation. Communicate, communicate, communicate – you have to let your team and the public know that you have a plan to deal with the situation and explain what it is. Have a plan and be honest.

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THOUGHT LEADERSHIP

Az Business: How should a business come up with a plan for business continuity when a crisis hits?

Chase and Anderson: Businesses should start by identifying the most critical functions, capabilities, and products for the organization. They should then map them against potential hazards and see where there are opportunities to add resilience.

Business continuity is only one part of the crisis management planning process, but it often requires some of the biggest financial investments. Infrastructure continuity improvements aren’t the easiest to wrap your head around, but employees and the way the business interacts with customers must receive just as much attention in this process. You can have a strong building, but if your employees can’t work or your customers can’t access your goods or services, you have not built any continuity worth having.

Az Business: How can the company avoid a potential crisis by listening to customers and employees?

Henderson: Having an open-door policy that lets clients and employees weigh in and offer feedback on issues, policies and procedures is just good business. It shows you are invested in the people responsible for your company’s success. Listening to employees that are in the trenches, dealing with the day-to-day operations where many potential issues may be uncovered, means

business leaders are informed and may be able to avoid potential pitfalls that can lead to crisis situations.

Valuing client and employee feedback builds loyalty and a sense of unity. Staying engaged and really listening is the best form of prevention and a great way to get in front of and avoid a potential crisis. If a crisis can’t be helped, it’s important to have strong policies and procedures that are practical, understandable and easy to follow.

Az Business: How can leaders in your industry help leaders in other industries overcome a crisis?

Brown: Banks — and bank leaders — are in a unique position in times of crisis. Many times a crisis can or will have a financial impact. Bankers are financial professionals and they can provide help to a customer whether it is retail or commercial insight or navigation help relative to the crisis.

Chase and Anderson: If there is one understatement to be made here, it is that we are all connected and dependent on each other in a modern economy. The silos of information, knowledge, leadership, and innovation must be broken down between industries. No one industry has a monopoly on good ideas.

In the mental health and information and referral industry, we offer realistic coping tools to a frantic public desperate for comfort. We can reinforce and educate good workplace mental

Having an open-door policy that lets clients and employees weigh in and offer feedback on issues, policies and procedures is just good business.

— DR. LORRIE HENDERSON

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THOUGHT LEADERSHIP

health practices to industries on the front lines of this crisis including government and healthcare. We can bridge worlds of government and non-profits to bring meaningful advice and referrals to people desperate for reliable information and resources. We can continue to be available, and sometimes that’s the most important reassurance people and businesses need.

Henderson: Jewish Family & Children’s Service is an organization known for strengthening the community by providing behavioral health, healthcare and social services to all ages, faiths and backgrounds. The health and safety of JFCS clients, staff and volunteers is our highest priority.

Our response to the COVID-19 pandemic is based on guidance from the Centers for Disease Control (CDC) and the Arizona Department of Health Services (ADHS). As an agency that works with vulnerable populations who are most at-risk, we eliminated non-essential activities at our healthcare centers and program sites, and adapted some of our program delivery methods to continue serving those who depend on our services.

Loo: In many ways, lawyers regularly assist companies in trying to formulate processes and systems to avoid a myriad of crises. If a crisis occurs, however, we partner with our clients by helping them navigate the legal maze and business consequences that typically result from such crises. Although the crises that we typically see do not come in the form of pandemics, we often guide businesses through data breaches, governmental investigations, and employee harassment claims, to name a few.

Az Business: Can governance processes help a board detect early warnings of an impending crisis and, if so, how should a business implement those processes?

Henderson: Yes. It’s imperative that boards monitor risk management areas at all times. Tracking key indicators with graphs and charts ensures the risks are communicated in a clear and efficient way. It also enables us to quickly identify trends and patterns in areas that could become full-blown issues. The pattern or lack of patterns may or may not identify issues, but the practice of monitoring and evaluating the patterns on a regular basis means boards can keep an eye on areas that could quickly become problematic and require expeditious intervention.

Every organization should have a multidisciplinary stand-alone risk management committee that meets no less than quarterly to review potential risks and identify areas in need of improvement.

If an issue has been identified, the committee should immediately share their findings and recommendations for mitigation with the executive leadership team.

Az Business: What are the most important lessons business should take away from the COVID-19 pandemic when it comes to crisis management?

Loo: One of the things that I think this pandemic has really emphasized is the vital importance of the role that our workers, especially our rank and file, have to our organization and our society’s success. I think businesses can sometimes overlook

“When a crisis occurs the need to communicate is immediate.

Your business must be able to respond promptly, accurately and confidently during a crisis in the hours and days that follow.”

— ABBIE S. FINK, VICE PRESIDENT AND GENERAL MANAGER, HMA PUBLIC RELATIONS

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THOUGHT LEADERSHIP how critical every employee is to making our system function effectively. However, as we have seen during this crisis, we literally could not have continued to function without the cooperation of not just our brave doctors and nurses, but our grocery store clerks, our truck drivers, our warehouse workers, our delivery people.

Brown: My fellow panelist, Abbie S. Fink, wrote a blog post about Mr. Rogers. In it, she quoted him as saying: “When I was a boy and I would see scary things in the news, my mother would say to me, ‘Look for the helpers. You will always find people who are helping.’ To this day, especially in times of ‘disaster,’ I remember my mother’s words and I am always comforted by realizing that there are still so many helpers — so many caring people in this world.”

That really struck me. I think we tend to use the term business leader, or leader, and look to them, but if this pandemic has taught us anything, it is the helpers – that have come in so many forms – that are making the difference. That goes for everyone working in hospitals from doctors and nurses to administrative staff, techs and essential volunteers. That goes for teachers digging in and figuring out a way to keep schools running virtually. It takes everyone finding ways to be helpers to get through things of this magnitude.

To learn more about crisis management from our panel of thought leaders, visit azbigmedia.com.

HELP IN THE TIME OF NEED Here’s how some local businesses helped customers, clients, employees and others during the COVID-19 pandemic:

WaFd Bank Arizona: “First, we implemented a Small Business Lifeline program through our Community Banking Group on March 12,” says Mike Brown, Arizona region president. “This Lifeline program, in which we have allocated up to $100 million, was designed to help affected clients and non-clients by providing liquidity through business lines of credit up to $200,000 with 90 days of zero percent interest. In addition, we implemented other payment relief assistance programs to help our clients that were not eligible for the small business program. This includes those that have consumer mortgages with WaFd, as well as our Commercial Banking Clients.”

HMA Public Relations: “For the clients we serve, we immediately activated our crisis communications strategies, providing the necessary guidance and counsel regarding stakeholder communications,” says Abbie S. Fink, vice president and general manager. “It was also important that we do not ignore the ongoing and regular communications efforts that we provide. So, throughout the crisis, we continue to evaluate opportunities (through a crisis lens) to determine how and when to respond. As clients have had to change the way they do their business, HMA is developing strategies that include online programs and service delivery through webinars and podcasts, creating virtual events and fundraisers and establishing their executives as thought-leaders and resources in their areas of expertise, among others.”

Quarles & Brady: “Many of our clients were unexpectedly thrown into situations that would have been completely unimaginable to them just a few weeks earlier,” says Leonardo Loo, Phoenix office managing partner. “They had to deal with issues such as determining whether or not they are ‘essential services,’ to laying off or furloughing their employees, to considering the effects of not paying their bills and shutting down their businesses completely. We assisted many with these issues, and in accessing financial relief during this turbulent economic time. Many of our clients are also in the healthcare space and on the front lines of this pandemic. We worked with them to navigate the healthcare regulatory landscape that is changing on a daily basis in an effort to manage the medical crisis that is sweeping the globe.”

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ARIZONA’S NEW HOME FOR

SPORTS!

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