AzBusiness magazine September/October 2015 by AZ Big Media

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CONNECT » GUIDE » INSPIRE

September // OCTOBER 2015

2015’s

SEPTEMBER // OCTOBER 2015

MOST

COMPANIES

David S. Crawford of Sundt, one of only six companies to earn an Arizona's Most Admired Companies Award all six years.

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Table Of Contents 6

Consistency at the top

Up Front

12 CEO Series

14 Healthcare 18 Human Resources 20 Technology 24 Law

32 Marketing 34 Small Business 36 Dining 38 Executive Education

42 Canadian Business

46 Most Admired Companies

81 Meeting Professionals International

veryone wants to be liked. Even villains want others to love to hate them. There is something about positive affirmation that makes a tough day easier to swallow. When Az Business magazine and BestCompaniesAZ developed the Most Admired Companies program in 2010, the primary goal was to recognize those companies that excel in workplace culture, leadership, social responsibility, customer opinion and innovation. Because of that, the September issue is one of my favorites because it truly showcases those companies that reflect the best in Arizona business, from both economic and community impact standpoints. Six of the 40 companies that are being recognized in this issue have separated themselves from the pack by being honored all six years of the program’s existence. • American Express, led by Tammy Weinbaum, senior vice president and general manager. • CBRE, led by Craig Henig, senior managing director. • Shutterfly, led by Corey Conklin, vice president of customer care. • Sonora Quest Laboratories, led by Dave Dexter, president and CEO. • Sundt Construction, which is celebrating an astounding 125 years in business and is led by this issue’s cover model, David Crawford, the company’s CEO. • UnitedHealthcare of Arizona, led by David W. Allazetta, president and CEO for UnitedHealthcare’s employer and individual business in Arizona and New Mexico. Even greater than its product or service, a company’s workplace culture, leadership, social responsibility, customer opinion or innovation is often what people remember and admire. Inside this issue, you will read about 40 companies that embody those qualities and inspire others.

Michael Gossie Editor in chief michael.gossie@azbigmedia.com 2

AB | September - October 2015

AB | September-October 2015

Shout-outs

ATHENA Awards

President and CEO: Michael Atkinson Publisher: Cheryl Green Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Editor: Amanda Ventura Staff writer: Meryl Fishler Interns: James Bunting | Lauren Holly | TreNesha Striggles Contributing writers: Dr. David Berg | Andy Lombard Jason Miller | Kevin J. Walsh

he Greater Phoenix Chamber of Commerce announced the 11 women chosen as finalists for its prestigious ATHENA Awards, which recognizes women in the public and private sector, in addition to highlighting an upcoming leader. The private sector finalists are Judi Butterworth, Velocity Retail Group; Heidi Jannenga, WebPT; Melissa Sanderson, Freeport-McMoRan; and Kay Wing, Southwest Advanced Neurological Rehabilitation. The public sector finalists are Cathy Brown, First Things First; Lillian Garcia, American Red Cross; Sunnee O’Rork, i.d.e.a. Museum; and Leah Fregulia Roberts, Arizona School for the Arts. The finalists for the ATHENA Young Professional award are Jessica Hipskind, University of Phoenix; Ashley Kasarjian, Snell and Wilmer L.L.P.; and Lea Phillips, Ballard Spahr LLP. The awards will be presented October 29 at The Arizona Biltmore, A Waldorf Astoria Resort.

Fastest-growing companies

A total of 109 Arizona companies made the Inc. 5000 list for 2015, which ranks the fastest-growing private companies in America. The 10 Arizona companies showing the most growth are Base Commerce, a financial services company; Plexus Worldwide, a health company; LifeTree Manufacturing, a food and beverage company; American Retirement Advisors, which offers financial services; Fraud Posse, a software company; My Home Group Real Estate, a real estate company; Lumber One Services, a construction firm; Print.Save.Repeat, which offers business products and services; Trapp Technology, an IT services company; and Encompass Inspections, a construction company.

Groundbreaking surgery

Abrazo Arrowhead Campus became the first hospital in Arizona to use the Mazor Robotics Renaissance Guidance System for minimally invasive orthopedic spine surgery. “Renaissance guides the surgeon’s tools and implants during both open and minimally invasive surgery, which may provide greater accuracy when compared with freehand conventional spine surgery,” said Patrick Smith, chief medical officer at Abrazo Arrowhead Campus. “This may result in patients having less radiation, fewer complications, less postoperative pain and a faster recovery.” Since June 16, about a dozen surgeries have been performed using the new robotic system at the Abrazo Arrowhead Campus in Glendale. 4

AB | September - October 2015

ART Art director: Mike Mertes Graphic designer: Ana Richey DIGITAL MEDIA Account managers: Kerri Blumsack | Bailey Young Web developer: Eric Shepperd Digital coordinator: Robin Sendele MARKETING/EVENTS Marketing & events manager: Heidi Maxwell Marketing coordinator: Lorin Parkhurst OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Cindy Johnson Az BUSINESS MAGAZINE Senior account manager: David Harken AZRE | Arizona Commercial Real Estate Directors of sales: Jeff Craig AZ BUSINESS LEADERS Director of sales: Sheri Brown RANKING ARIZONA Director of sales: Sheri King EXPERIENCE ARIZONA | Play Ball Director of sales: Ann McSherry CREATIVE DESIGNER Director of sales: David Silver

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 2015 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.

AB | September-October 2015

UP FRONT

Power lunch

Arizona’s brightest business leaders share the political figure with whom they’d like to break bread By MICHAEL GOSSIE

ith the political season kicking into high gear, it’s time for Arizonans to start thinking about who they will select as their next political leaders. But even if you vote for them, would you like to grab a beer after work with them? We asked Arizona’s best and brightest business leaders which great political figure — living or dead — they’d like to share a meal with if given the chance.

Rebecca Burnham, shareholder, Greenberg Traurig: “John Adams,

lawyer, co-author of the Declaration of Independence and our second president. Brilliant, hard-working and principled … I would love to hear his perspective on where we are today.”

Glynis Bryan, CFO, Insight Enterprises: “Mikhail Gorbachev. He

had the courage to give up the absolute power of Soviet Communism and moved the Soviet Union toward democracy and human rights. His aspirations for democracy and reform opened the way for the end of the Cold War.”

Glynis Bryan

Ron Butler

Rebecca Burnham

Peter Fine

Jim Lundy

Ralph Nefdt

Rodolfo Parga

Thomas Sadvary

Ron Butler, Arizona managing partner, Ernst & Young: “President

Barack Obama. Our political views are so dramatically different that I would appreciate the opportunity to debate his politics and challenge his views and find some common ground.”

Peter Fine, president and CEO, Banner Health: “Benjamin Franklin for his intellect, creativity

and thoughtfulness and long-lasting political and scientific achievements.” Jim Lundy, CEO, Alliance Bank of Arizona: “Winston Churchill. He was an accomplished writer and historian, a warrior, a politician and a statesmen. A person of great intellect, but also one of action with a strong belief in democratic institutions. Churchill was the difference in WW II. We owe him a great deal.” Ralph Nefdt, office managing partner, Grant Thornton:

“Nelson Mandela. He is my countryman and one of the most profound characters of our time.” 6

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Rodolfo Parga, Jr., managing shareholder, Ryley Carlock & Applewhite: “Abraham Lincoln. He led our country during

one of its most uncertain periods, all the while staying focused and unwavering on doing the right thing. He changed the course of history.” Thomas Sadvary, president and CEO, HonorHealth:

“Theodore Roosevelt. He had many amazing achievements despite being told by his physician at an early age that health issues would cause him to lead a very passive, inactive life. Roosevelt proved the physician wrong and was one of the best Americans in our history.”

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AB | September-October 2015

UP FRONT Valley attorney

goes the extra mile

allagher & Kennedy attorney Mark Dangerfield knows life is a marathon, not a sprint. A cancer scare 18 years ago coupled with turning 50 prompted Dangerfield to take his passion for running to the next level. In October, the Mesa resident is set to reach his 10-year goal of running a marathon or ultramarathon in all 50 states and on all seven continents. With his wife, six grown children and grandchildren cheering him on, Dangerfield hopes to complete the final leg toward that goal by at a marathon in Kansas City. The 65-year-old will join a short list of runners who have accomplished this feat. “My cancer scare years ago and the blessing of good health which followed that time in my life keeps me focused every day on how wonderful it is to move, walk and run,” Dangerfield said. “Besides the travel and competition, running has also allowed me to meet all sorts of interesting people from all over the world.” Making his marathon quest even more challenging is the fact that Dangerfield is a member of the Church of Jesus Christ of Latter-day Saints and doesn’t run Sunday races, when most marathons are run. Some of Dangerfield’s most challenging

Healthy outlook for hiring If you’re looking for a job and you have a background in healthcare, Arizona is the place to be. According to employment data for Phoenix from job aggregator and search engine Simply Hired, the number of job openings in Phoenix increased almost four percent over the summer and most of the came in healthcare. The Top 5 hiring companies in Phoenix, in order, are:

Banner Health

2. Dignity Health 3. St. Joseph’s Hospital 4.

Oracle

5. HonorHealth 8

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events were the 35-mile “Jetty-2-Jetty” race in Florida, which is run entirely on sand; the 31-mile “Hilo to Volcano” race in Hawaii, which is all uphill; and the Comrades Marathon in South Africa, the world’s largest and oldest ultra marathon and is run over a distance of approximately 56.1 miles. As if rising to the challenge of running about seven marathons a year isn’t tough enough, Dangerfield nearly always places in the top three in his age group.

Hottest jobs?

While a man in uniform used to make women weak in the knees, the only uniform necessary today is a well-tailored suit. While you can find successful men in every career field, ever wonder which professions hold the key to successful love lives? Dating website WhatsYourPrice.com pulled data from members to find which professions generated the most dates. Here are America’s sexiest jobs:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

CEO/entrepreneur Financial advisor Software developer Lawyer Business Physician Real estate developer Marketing/advertising executive Architect Engineer

UP FRONT

road work

Expert offers advice to those who want to start commuting to work on bicycles By MICHAEL GOSSIE

s the weather starts to cool off, it might be time to think about ways to create a healthier commute to the office. Experts say less than 1 percent of Phoenix’s population rides a bike to work, which is in line with the national average, but could be higher considering Arizona’s bicycle-friendly weather most of the year. Transportation officials say proposed infrastructure improvements could help Phoenix bike commuters increase to 10 percent in the long term. So what should you look for if you PHOTO BY ANA RICHEY, AZ BIG MEDIA want to join the growing number HOT TOPIC: “We have problems with bikes that other states never see,” says of healthy bike commuters? Richard Marquis, owner of Giant Scottsdale. “The housings in the brake levers and “There is a new category that shift levers actually shrink from the heat and the dryness of our climate. The rubber Giant and the other brands have on the tires also deteriorates quicker.” called ‘gravel grinders,’” says Richard Marquis, owner of Giant forks and are really stout. The biggest every day,” Marquis says. Scottsdale, located at 2902 N. difference is in the tires. A road bike has The bike expert’s No. 1 piece of advice for 68th St., #120, Scottsdale. “It’s for doing tires that are about 23 millimeters wide, bike commuters is simple. the canals, roadways, you can jump a curb. while a gravel grinder has tires that are “Thorn-proof the tires so you don’t get a You can have a great time with it.” about 35 millimeters wide. flat on the way to work,” he says. “NinetyMarquis says gravel grinders are a “If you’re going to commute, you want nine percent of flats in Arizona are caused lot like a road bike with down-drop handlebars, aluminum frames, carbon a good, rugged bike that you can rely on by small thorns.”

Cardinals break barriers J

en Welter has a different view of the feminine mystique. “We show little girls all the time to be beautiful and to do it all the wrong Jen Welter ways,” said Welter, who became the first female coach in NFL history when she joined the Arizona Cardinals’ paid internship program. “We show them as accessories, for no other better way to put it. We teach them very early on to be pretty, marry well and then act badly and you’ll get on TV. And then that’s what they grow up thinking that fame is or success is. “I want little girls to grow up knowing that when they put their mind to something, when they work hard, that they can do anything regardless of those things,” Welter said. 10

AB | September - October 2015

No time to be sick

bout 45 percent of Arizona’s private-sector workers, more than 934,000 people, do not have access to paid sick leave, according to a report from the National Partnership for Women and Families. But Arizona is not alone: About 39 percent of private-sector workers currently don’t have the ability to earn paid sick leave, the report said. While the partnership has targeted Arizona for action, business representatives say decisions on benefits should be between employer and employee and not imposed by the government. Arizona does not require employers to provide sick leave benefits to their employees. State Rep. Richard Andrade, D-Phoenix, sponsored a bill in this year’s legislative session that would have required Arizona employers to award a minimum of one hour of paid sick leave for every 30 hours an employee worked. That bill died in committee, but Andrade said he plans to reintroduce it in the 2016 Legislature.

AB | September-October 2015

ceo

Rising up Lee Benson leads Able Engineering and Able Aerospace to new economic heights By MICHAEL GOSSIE

either the recession nor sequestration has slowed one Arizona aerospace company. “For the last 12 years, we are growing at better than a 20 percent compounded annual growth rate,” said Lee Benson, CEO of Able Engineering and Able Aerospace. “This year, we could grow as much as 35 percent.” Since buying the business that would become Able Group of Companies in 1993, Benson has taken the company from $300,000 in sales in 1994 to a projected $100 million in sales this year. Able’s two main divisions — Able Engineering & Component Services and Able Aerospace — provides component repair, overhaul and approved replacement parts solutions for rotorcraft and fixed-wing aircraft; and also manages Able’s FAA approved replacement parts inventory. “We intentionally designed our company to be recession proof,” Benson said. “We knew we needed a lot of customers to do that and we now have 1,000 customers in 60 countries.” Az Business talked to the man behind Able’s success story. Az Business: What’s the biggest difference between being CEO of Able and leading a more traditional company? Lee Benson: Complexity. We do about 4,000 jobs a month and every job can have as many as 1,500 pieces in it. We’re processing more than 100,000 parts a month and millions of operations and everything is special handling. Of the approximately 500 employees, we have 74 unique roles, all with their own special skills required. So it’s really complex business as opposed to running a restaurant or hardware store. AB: How do you maintain your workforce with the need for so many specialists? LB: On the engineering side, we have about 40 engineers who develop repairs and reverse engineer parts to go into the maintenance operations that we have. ASU and UA have 12

AB | September - October 2015

PHOTO BY SHAVON ROSE, AZ BIG MEDIA

LEE BENSON: The CEO of Able Engineering and Able Aerospace operates his companies out of a state-ofthe art, 200,000-square-foot facility at Phoenix-Mesa Gateway Airport.

been great sources for that. For the aircraft mechanics, there are military sites we go to and we recruit from them. For machinists, the Maricopa Community Colleges network is doing a fantastic job of developing machinists to come in here. For all 74 unique roles that we have, we have a special process for finding people to fill those roles. One other thing we do to augment the process to keep up with the growth is we partner with Goodwill of Central Arizona. They put a full-time person here who does nothing but recruit for all these roles and they’ve done a fantastic job. AB: What qualities do you have that have helped you build Able? LB: Patience, discipline and rigor around the managements process. I have the patience to say, “It’s going to take time. Don’t panic.” I have the discipline to make sure we keep a certain amount of cash in the company to grow, where a lot of business owners will take money out too soon and then when there is a downturn or an issue, they cannot survive that. AB: How did you have the foresight to build Able into what it has become? LB: Wherever I’ve been at in my life, I can always see the next step or opportunity. I was the company’s first employee in 1982. When I bought the company in 1993, we had lost all of our business overnight and were left with three employees, including myself. We went in a completely different direction and i could easily see getting to $5 million in the aerospace industry. Once we got there, I could easily see $10 million and then $20 million. Now, this year, it will be close to $100 million and we have a pretty clear path to a half-billion dollars. Seeing the next steps is easy as long as you’re fully engaged in the game and you have all the team members and every brain in the game. You just have to keep marching forward and going after it.

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healthcare

Employer compliance in the ACA era Tips for providing good healthcare without risking insolvency

he healthcare industry is evolving at a breakneck pace â&#x20AC;&#x201C; and costs are rising just as dramatically. The year ahead will be especially challenging; at tax-time, many employers will be shocked to learn the extent of the penalties they owe for not complying with the Affordable Care Act. In fact, fines will be high enough to put some companies out of business. It doesnâ&#x20AC;&#x2122;t have to be this way. Businesses can provide affordable care that complies with the law much more easily than people realize. Knowing the fundamentals is key.

A little background The Kaiser Family Foundation/ Health Research & Educational Trust reports annual premiums in 2014 for employer-sponsored family health coverage edged beyond $16,800 for an average family – up four percent from the prior year – with workers paying about $4,565 toward their coverage. In other words, businesses David Berg are covering the lion’s share. With the implementation of the Healthcare Affordable Care Act, insurance companies are reporting new customers under the ACA are sicker than anticipated, requiring insurers to spend more money to cover customers’ care. What doesn’t make sense is that share prices for publicly traded insurance companies have doubled Google’s growth over the past few years. Despite clear indicators of their profitability, insurers are seeking sizeable rate increases in most states, continuing a decade-long trend of rising costs. In light of the ACA’s employer provisions, looming insurance rate increases are a grave concern for employers.

Timeline for implementation? Despite near-constant news coverage of the ACA’s beleaguered passage into law, few people understand how the employer mandate will impact businesses. Originally scheduled for rollout in 2014, the mandate was delayed at several points, creating widespread confusion about which parts of the law were in force and which weren’t. The law is now fully implemented.

Beginning in January 2016, businesses with 50 or more “fulltime equivalent” (FTE) employees will be required to provide healthcare in order to remain ACA compliant. Failing to do so will result in steep tax penalties. Employees of businesses with fewer than 50 staff will be penalized individually if they don’t have minimal coverage. This may incentivize them to migrate to larger companies that have been forced to offer healthcare.

Cost of noncompliance? Every month, all companies – including those with fewer than 50 FTE employees – must file a 1094 and 1095 form that details each employee’s health coverage. The fee for not filing these forms is $100 per W-2 employee, per month, per form, up to a maximum of $1.5 million per form. Additionally, businesses with more than 50 FTE staff will be fined $2,000 per FTE employee, per year (excluding the first 30 employees), for failing to provide at least “Minimal Essential Coverage” (MEC). Finally, employers will be penalized $3,000 for any employee who receives a subsidy from a healthcare exchange. To avoid this fine, companies must offer a “Minimum Value” (MV) plan that includes an employee contribution of no more than 9.5 percent of their income. Penalties are prorated by the number of months of noncompliance.

What coverage are employers required to provide? In addition to filing the required forms, employers must provide healthcare that meets the MEC standard and is deemed “Minimum Value” (MV). Minimal essential coverage: To avoid the $2,000 AB | September-October 2015

healthcare “Though many healthcare products fit the bill for MEC, it’s critical that businesses truly understand what’s included in the plan... annual penalty per FTE employee, employers must cover 63 specific health services including numerous screenings, limited primary care, some medications, and COBRA. Minimum value: MV is not so easy to define. The short explanation is that employer-sponsored plans need to cover a minimum of 60 percent of total allowed healthcare costs that are expected to be incurred. As such, employers must cover hospitalization expenses in order to avoid the $3,000 penalty for an employee who receives a subsidy on the healthcare exchange.

What businesses need to know about MEC Because the legislation is new, it’s expected that regulators will continue to change the way MEC and MV are defined and enforced. It’s important to note here that employers are not required to fully insure their staff; they can opt to self-insure and still meet the law’s requirements. For now, providing MEC services, which are primarily preventive or diagnostic, is key for ACA employer compliance. Though many healthcare products fit the bill for MEC, it’s critical that businesses truly understand what’s included in the plan they’re offering their staff. In this case, it’s probably more important to determine what’s not included.

What’s missing with MEC? MEC-only plans may seem like a reasonable option for employers trying to protect their profitability, but companies need to pay close attention. There’s a potentially dangerous gap between screening and treatment – one that could significantly impact employee well-being. 1. MEC provides an array of important services like blood pressure and cholesterol screening, well-woman visits and immunizations; it does not include treatment for problems that might be identified during screenings or preventive visits. For instance, while MEC might cover testing for diabetes, employers aren’t required to cover treatment of the disease with MEC. 2. Many physicians believe MEC presents an ethical dilemma. If a physician diagnoses a patient with diabetes, he/she is faced with a difficult decision: provide only those services that will be reimbursed – in this case, screening – or provide treatment and counsel without pay? As a result, many doctors have said they will not “accept Obamacare.” What they’re really saying is they feel uncomfortable seeing a patient they may not be able to treat adequately if the patient only has MEC. 16

AB | September - October 2015

Employers should consider seeking out MEC products that provide screening as well as adequate treatment including primary care, physical medicine and injury care, rehabilitation, labs, x-ray and immunizations. These services represent the vast majority of the everyday care that most people need. Additional coverage for specialists, pharmacy and hospitalization can be added separately. 3. Employees in MEC-only plans often are surprised to learn they don’t really have coverage when a health problem arises. This may create unanticipated HR problems when word gets out that employees don’t have the care they expected, or they have trouble finding a doctor who’s willing to see them. 4. Some employers are challenged by skyrocketing healthcare and workers’ compensation (WC) costs. Often, these can be tied together. An employee without health coverage may use WC to cover first aid or treatment of a minor injury. The resulting cost for the employer can be large. A good MEC option that includes treatment is usually the answer for businesses with WC costs affecting the bottom line.

What can employers do to comply, save money and provide good care? 1. Businesses should provide the basic everyday healthcare most employees will need and use. This must include MEC, but also should provide for other types of care including primary care and rehabilitation. The cost of providing such coverage should be under $100 per month. Employers can avoid most ACA penalties simply by offering a MEC plan, even if the costs are borne by the employee. If a worker declines coverage, then only the employee risks penalties. This may be the first time many employees have received employer-provided coverage, especially for “blue-collar” laborers. Businesses that are ahead of the curve may have a competitive advantage in their industries if they are the first to promote their health benefits. 2. Three key actions will help companies avoid the $3,000 penalty for employees who receive subsidies: 1) self-insure, 2) purchase stop-loss insurance, and 3) meet MV requirements. These include hospitalization and specialist care with a deductible and co-insurance. Hiring the right company to manage these costs is an important component, too, but taking these actions can help companies lower their costs significantly. 3. The real secret to lowering costs is to understand pricing differentials between services provided in a hospital and identical services provided outside a hospital setting. It’s not uncommon for hospitals to charge five- to 20-times more than other providers or clinics for the same service or supply. Aside from truly emergent situations requiring hospital care, simply helping employees stay out of the hospital will drastically cut costs. As employers mull their options during open enrollment and beyond, it’s important for them to consider a wider view of employee healthcare and address the unique needs of their workforce to reduce costs and retain employees in the long run. This has always been a smart approach, but post-Obamacare, it’s absolutely imperative. Dr. David Berg is the co-founder of Phoenix-based Redirect Health, which provides entrepreneurial businesses with healthcare plans that comply with the Affordable Care Act.

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human resources

ways to drive Millennials away

illennials make up the largest, most diverse generation in the U.S. — and this generation is significantly disrupting the way organizations have traditionally conducted business. They’re a dynamic group with new ideas on how they want to make a living and contribute to the world. They have a tendency Bill J. Bonnstetter for disliking bureaucracy and Human resources traditional 9-to-5 schedules. Because millennials seek work environments that mirror their own values, they have very strong opinions about the workplace — how it should be run and what their place should be in it. Companies need to embrace millennials — and the fresh mindset they bring to business — if they want to have a strong future. However, many companies are hanging onto wisdom of the past and may inadvertently be driving millennials away. Here are five mistakes your business could be making: 1. Insist they sit at their desk eight hours each day. Telecommuting and flextime are the new normal. Mandated clock punching is very passé. Millennials are hyper-connected and tech savvy, and tend to believe that as long as the work gets done, the amount of time spent in the office should not matter as much — usually because they are always working. 2. Expect them to be motivated by money. Finding happiness and fulfillment typically outranks salaries and bonuses as top priorities millennials want to get out of their work. Millennials want to contribute in a meaningful way and to feel valued in the workplace. Simply throwing money their way won’t cut it. 3. Tell them ideas don’t matter. Millennials want to feel valued in the workplace — and know their opinions matter. They were brought up in an environment where their parents asked for their input on everything from meal choices to personal finances. Instead of performing mundane tasks, millennials lean toward learning about strategic planning that helps to move the organization forward. 4. Insist that titles matter. Studies have indicated millennials aren’t overly concerned about hierarchy (titles and positions) within the traditional pyramid structure. They believe everyone’s input matters and that the best ideas win, regardless of who said it or their seniority at the company. 5. Hold feedback until an annual review. It’s not that millennials don’t want to be held accountable for their workplace performance. Rather, they want these conversations to happen on a more regular and informal basis. We’re in an instant gratification society, and the more feedback millennials receive for on-the-job performance, the more dependable and adaptable they can become. 18

AB | September - October 2015

By 2025, 75 percent of the global workforce will be made up of millennials. This generation is already reshaping today’s consumer spending habits, and it will no doubt create a lasting impact in the workplace. Work cultures and leaders who do not embrace the positives this generation brings will be sure to drive the future of work far from their doors. Bill J. Bonnstetter is chairman and founder of Scottsdalebased TTI Success Insights, which develops and distributes assessments that are used to help hire, retain and develop individuals in businesses and organizations throughout the world.

AB | September-October 2015

technology

Out of this world ASU technology will take scientists to the asteroid Bennu to help them understand the formation of our solar system By JAMES BUNTING

MATERIAL WORLD: By studying the sample collected from Bennu, the NASA team will be

NASA PHOTO

able to examine some of the most pristine material to be found in the solar system.

n September 2016, NASA will send a spacecraft to the asteroid Bennu, where it will bring back a small sample to Earth to better understand the formation of our solar system and how life began. The mission is called Origins-Spectral InterpretationResource Identification-Security-Regolith Explorer (OSIRIS-REx) and it will be the first U.S. mission to return a sample of an asteroid to Earth. What’s most exciting about this mission is that one of the vital instruments from that spacecraft was built right here in Arizona, at Arizona State University. ASU built the OSIRIS-REx’s Thermal Emission Spectrometer (OTES), which collects infrared spectral data from the asteroid, allowing scientists to identify minerals and chemicals. Most minerals have unique spectral readings, so scientists are able to determine what minerals are present based off the readings from OTES. “The ASU instrument is helping to pick where to get that sample from and helping us understand more about the sample before it comes back,” said Professor Jim Bell, the director of ASU’s New Space Initiative, a professor in earth and space exploration, and the eyes of the Mars Rover Curiosity. “It’s a very exciting role for the university. It’s the first time we’ve built a space instrument to that scale on campus.” OTES will conduct surveys of the asteroid, (which has a likelihood in 2021 to collide with Earth). Its mission is to

AB | September - October 2015

ASU is unique in its ability to build this instrument on its campus. NASA has very strict standards... remotely measure the infrared spectrum emitted by the asteroid. The asteroid will reflect the sunlight into OTES, which will use that data to select a site to acquire the sample that will return to Earth. “The OTES instrument also has the ability to measure the temperature of the asteroid and to see how much sunlight is absorbed and emitted,” said John Loiacono deputy project manager for OSIRIS-REx. “There is a theory that we will check, that by absorbing heat from the sun and then emitting it, that acts as a small propulsion maneuver for the asteroid, since it changes its orbit slightly over time.” ASU is unique in its ability to build this instrument on its campus. NASA has very strict standards and not many

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engineering.asu.edu AB | September-October 2015

technology universities have the facilities or the faculty to win a bid like this. “There are only a handful of universities that can do this kind of work, maybe half a dozen or so,” Bell said. “NASA is very conservative about giving the many millions of dollars it takes to build these instruments to people who haven’t proven they can do it. It’s a difficult game to break into, but we have broken into that game. With the new (Interdisciplinary Science and Technology Building 4, a new and innovative research building on the Tempe campus), we are becoming a trusted university partner with NASA.” The ISTB IV is where all the building and testing is going on for OTES. “It has all that is needed to build and test space instruments,” Loiacono said. “But beyond that are the people who are going to do the development. That team has a lot of respect and has a reputation for doing things the right way.” ASU also can test its instruments in a simulated space environment, something usually only aerospace companies can do. But it's something ASU can do right on campus. If ASU

SPACE AGE: ASU has a clean room with a large metallic thermal vacuum chamber that can simulate the vacuum of space. 22

AB | September - October 2015

did not have the ability to do this testing on campus, scientists would have to travel with the instrument off campus to another facility, possibly in another city, to do the testing. “In one of our clean rooms, we have a large metallic chamber that’s called a thermal vacuum chamber,” Bell said. “We can put small spacecraft or instruments into that chamber, take all the air out and make it simulate the vacuum of space.” Researchers can also lower the temperature — just like on the surface of Mars or the moon — and create a mini space environment inside that clean room on site. “That’s a relatively rare thing to have on university campuses,” Bell said. OTES is now in Denver, has passed all its initial testing and will be integrated into the spacecraft as the other instruments arrive. After the launch, it will take two years to get to the asteroid, with sampling beginning in October 2019. In 2021, the craft will depart Bennu and drop the sample off in a Utah desert in September 2023.

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AB | September-October 2015

law

Office misconduct White-collar crime costs six times more than drug crime, so how can you protect your business? By MERYL FISHLER

here is no crime scene, no yellow tape, no DNA evidence and no smoking gun. But it’s not a victimless crime. A company can become financially destroyed, a person’s life savings can be wiped out and investors can lose billions of dollars. The culprit: white-collar crimes. Today’s white-collar criminals are more sophisticated than ever. White collar crime costs American taxpayers between $300 and 600 billion each year, yet it remains largely overshadowed, compared with $100 billion from the illicit drug trade. When a company falls victim to white-collar crimes, the true victim becomes the consumer. To make up the losses, companies may have to charge higher prices for goods and services. Or companies may have to cut payroll for employees or cut jobs to make up for the lost funds. Breaches in intellectual property, trade secrets and insider trading scandals fall under the umbrella of white-collar crime. These may not directly impact a company financially, but they impact a company’s reputation, which may be worse. When people believe a company has been duped or not careful enough, they second guess doing business with them, said Steptoe & Johnson LLP Partner Paul Charlton. It is essential to the longevity of a company to take the proper steps to protect themselves from the high cost of white-collar crime.

AB | September - October 2015

Jean-Jacques Cabou

Paul Charlton

Timothy Deehan

Stacey Gottlieb

Edward Novak

Scott Shedd

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law Protecting business First and foremost, experts said companies need to be educated about their industry. “Understand the rules which apply to your industry and make sure employees understand the rules just as well as you do,” said Edward Novak, shareholder at Polsinelli and chair of the firm’s White Collar Crime Practice Group, “and get good legal advice.” Novak said the next thing to do is adopt a policy that takes all these rules into account. These policies should encompass the handling of company confidential information, including financial data, personnel and customer information. But, experts warned, there are no one-size-fits-all policies. “Policies and procedures that are implemented are only effective if tailored to the enterprise,” said Jean-Jacques Cabou, partner at Perkins Coie. One of the most common forms of white-collar crime is fraud. Timothy Deehan, president and COO of Actionable Intelligence Technologies, a financial investigation systems company, attributes the rise in fraud to an influx in transactions a company performs. The influx makes conducting an audit very complex and results in audit firms switching from a process of looking at every document to a statistical analysis method. Commonly, a company’s own junior accountants were the ones gathering the files and information turned over to the audit firms. “The crux of the problem is we raised a generation of accounting personnel that know how to beat the audit system,” Deehan said. “They knew how to hide improper movements and improper transactions.” To defend against internal fraud, companies need to establish a due diligence team whose authority comes from the board of directors, Deehan said. And the team should conducts its audits on a random basis.

“White collar crime costs American taxpayers between $300 and 600 billion each year, yet it remains largely overshadowed, compared with $100 billion from the illicit drug trade.

Get on offense Another way a company should protect itself is to establish a compliance program. “The best defense is often offense,” said Stacey Gottlieb of Greenberg Traurig LLP. “Get ahead of a situation and prevent a violation before it has happened. It is really important to establish a culture of compliance and set the tone at the top and continue it all the way down to every last worker.” Companies should also be cautious when doing business with new companies. Check unfamiliar companies with the Better Business Bureau, the state attorney general and the National Fraud Information Center, Charlton advised. Also, have a list of approved vendors. When working with a new sales representatives, get their business identity, name, address and business license if applicable, Charlton said. Moreover, never pay via courier. Pay with a trackable method and do not pay any advance fees until a service is delivered. 26

AB | September - October 2015

Regular checks

It is vital to understand and check finances regularly, experts said. To do this, it is important to establish a baseline, said Scott Shedd, an information security consultant for WGM Information Security Services LLC. Have a process in place for a normal month, so you are able to see variances and do not wait until you do your taxes to notice them, Shedd said. A secure IT infrastructure is also vital. Companies should look into investing in a firewall as well as anti-virus, malware and spyware detection, according to the U.S. Small Business Administration. Also implement a password policy that requires employees to change them regularly, has rules for passwords complexity and doesn’t allow one password for every account, said security experts. Legal authorities also stress background checks. Not just criminal checks, but reference checks. “Is the person in front of you actually who they say they are?” Shedd asked. To avoid a negative reputation, a company may try to hide the fact that they have fallen victim to a white-collar crime. Companies may write the fraud off as a loss. “A lot of companies are embarrassed if it occurs and will fire an employee and not prosecute, so it never gets reported,” Shedd said. This means a potential employee’s crime will not come up in a criminal background check. Even if a company takes the proper precautions, it can still fall victim to white-collar crime. There are places to turn. This is why having an action and response plans are vital. Experts recommend separate plans for external crimes committed by a third party and internal crimes by an employee. The plans need to be tailored to the specific business and its industry, Gottlieb said. “With any loss, it is best to bring in legal counsel,” Shedd said. Then, if necessary, turn it over to law enforcement. A useful and powerful resource that few people know about is the United States Postal Inspection Service. The agency’s jurisdiction are crimes that adversely affect or fraudulently use the postal system or postal employees. “Dollar for dollar, pound for pound it is the most advanced and sophisticated law enforcement,” Charlton said.

AB | September-October 2015

Financial planning

Taking stock

How to gain a deeper understanding of executive equity compensation

major component of most corporate executives’ compensation comes in the form of equity. This compensation can come in many shapes and sizes and is often misunderstood by the recipients. Terms such as stock options and restricted stock are used interchangeably, and incorrectly, by many. Each different form of Jason Miller equity compensation has different Financial planning features, risks, requirements and tax implications that can significantly affect a recipient’s financial planning. It’s important for executives to have a thorough understanding of the various forms of equity compensation so they can make optimal decisions for themselves and their families. Some of the more common forms of equity compensation include:

Stock options

Broadly speaking, an “option” is the right to buy something at a specified price (called the exercise price) at some future point(s) in time. One form of option is a stock option, which is the right to buy shares at a previously determined price and time. The benefit to employees who are granted stock options is that at the time of exercise, there may be a significant difference in the price paid (exercise price) for the shares and the current market value of those shares. This difference between the exercise price

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and market value at the time of exercise is termed the “bargain element.” For instance, if an employee was granted options to buy 100 shares of stock at $10 per share one year from now and the stock at that time was worth $20 per share, the employee would have a bargain element of $10 per share. Contrary to popular belief, not all stock options are created equal. One main distinction is the difference between Incentive (also called Qualified) Stock Options or ISOs and Non-Qualified (also called Non-Statutory) Stock Options or NSOs. ISOs are stock options that meet statutory requirements to qualify for preferential tax treatment. NSOs are stock options that do not meet the statutory requirements for ISO treatment and therefore do not enjoy the same potential tax advantages. This difference can be very important in determining an exercise strategy. For ISOs, there isn’t a tax on the bargain element in the year of exercise (this amount is a preference item for Alternative Minimum Tax purposes, however) and, if the shares are sold at least one year after exercise and two years after the grant date, all gains are treated as long-term capital gains. This is beneficial to employees because long-term capital gains are taxed at a lower rate than ordinary income. Contrary to ISOs, NSOs do not qualify for this tax treatment and the bargain element is taxable as ordinary income in the year of exercise. In our example above, this could result in the bargain element of the NSOs being taxed at a maximum federal rate (when including the 3.8 percent Medicare surtax) of 43.4 percent as opposed to 23.8 percent for the ISOs. Particularly for NSOs, the decision of when to exercise

becomes critical in maximizing value and minimizing tax consequences. For instance, it may make sense to strategically time the exercise of NSOs to years in which the employee anticipates being in a lower tax bracket. It may also make sense to exercise NSOs if it is anticipated that the stock will appreciate significantly in the relatively near future. Using our previous example, if the stock grew from $20 to $50, exercising when the stock was at $20 would have resulted in $10 of gain taxable as ordinary income and $30 of gain potentially eligible for the lower long-term capital gains treatment. If the NSOs were exercised when the stock was at $50, the entire $40 gain would be taxable at ordinary income rates.

Restricted stock and restricted stock units

Restricted stock and restricted stock units or RSUs are terms that are often used interchangeably, but are actually fundamentally different forms of equity compensation. Employees granted shares of restricted stock are granted actual shares of the company stock subject to a vesting period. At the end of the vesting period, the shares become the employeesâ&#x20AC;&#x2122;. With RSUs, â&#x20AC;&#x153;unitsâ&#x20AC;? (not actual shares) representing and tracking the performance of the company stock are granted. As with restricted stock, these units are subject to a vesting schedule. Upon vesting, these units may be paid out in shares of stock or cash depending on the specific program. In both cases, the value of the shares are taxable as ordinary income in the year of vesting. One key distinction between restricted stock and restricted stock units is the availability of the 83(b) election. Making an 83(b) election allows the recipient of restricted stock to voluntarily elect to recognize tax on the shares in the year they are granted as opposed to the year of vesting. (RSUs are ineligible for 83(b) election because actual shares are not granted at the grant date.) Any gain above the grant price would then potentially be eligible for long-term capital gains rates. This could be advantageous if the shares appreciated significantly between the grant date and vesting date, as a smaller amount would be subject to ordinary income taxation. This could also be a viable strategy if the employee anticipated being in a higher tax bracket in the year of vesting. There are, however, significant risks when making an 83(b) election. This election is irrevocable and carries with it the risk that an employee pays the income tax and never actually receives the shares due to separation from service or other factors. There is also a risk that the employee pays more in taxes than necessary due to a falling stock price or lower tax rates in the future. Additionally, there is an opportunity cost equal to the rate of return forfeited on the money used to pay the taxes up front. Creating a sound strategy around equity compensation is complex and requires time and forethought. It is important that individuals work with their tax, legal and financial professionals to ensure the optimal strategy for their particular circumstances.

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Jason Miller is director of financial planning for BMO Private Bank. The foregoing summary is not based upon the factual situation of any specific taxpayer, is not intended to be tax advice to any taxpayer and is not intended to be relied upon. Taxpayers should consult tax advisors that are aware of their factual situations. AB | September-October 2015

Financial planning What are the best Arizona stocks?

By MICHAEL GOSSIE

ant to invest in Arizona, but wondering where to put your money? A recent analysis by Az Business and financial technology company SmartAsset uncovered which Arizona-based stocks performed the best in the first quarter of 2015. Researchers considered three factors in the analysis: stock price, dividends paid and volatility, and found the risk adjusted return of the stocks, by which companies were indexed and ranked. Here are the Top 10 Arizona-based companies based on stock performance.

1. Western Alliance Bancorporation

What it does: With more than $10 billion in assets, it is one of the fastest growing bank holding companies in the U.S. NYSE: WAL Market cap category: Mid cap Headquarters: Phoenix Average annual return: 46.59% Volatility: 35.67% Stock performance index: 63.63

2. Kona Grill Inc.

NASDAQ: KONA What it does: Owns and operates 24 restaurants. They serves dishes including steak, seafood, pasta, pizza and sushi. Market cap category: Small cap Headquarters: Scottsdale Average annual return: 48.97% Volatility: 47.14% Stock performance index: 55.68

4. TASER International Inc. NASDAQ: TASR What it does: Provides smart weapons, body-worn cameras and complete evidence data storage solutions for law enforcement. Market cap category: Small cap Headquarters: Scottsdale Average annual return: 38.79% Volatility: 45.39% Stock performance index: 50.20 30

AB | September - October 2015

3. Inventure Foods, Inc. NASDAQ: SNAK What it does: Inventure manufactures and markets healthy/natural and indulgent specialty snack food products. Market cap category: Small cap Headquarters: Phoenix Average annual return: 33.47% Volatility: 34.17% Stock performance index: 53.91

7. Mobile Mini, Inc.

NASDAQ: MINI What it does: Designs and manufactures portable steel storage containers, portable offices, telecommunication shelters and a variety of delivery systems. Market cap category: Small cap Headquarters: Phoenix Average annual return: 21.56% Volatility: 36.88% Stock performance index: 42.17

5. Accelerate Diagnostics, Inc.

8. Providence Service Corp. NASDAQ: PRSC What it does: National leader in the management and provision of the human social services through government-sponsored social and healthcare services programs. Market cap category: Small cap Headquarters: Tucson Average annual return: 23.94% Volatility: 44.86% Stock performance index: 40.66

NASDAQ: AXDX What it does: In vitro diagnostics company dedicated to providing solutions to the challenge of drug resistant organisms and hospital acquired infections. Market cap category: Small cap Headquarters: Tucson Average annual return: 80.20% Volatility: 100.68% Stock performance index: 48.48

6. Pinnacle West Capital

Corporation

NYSE: PNW What it does: Holding company for Arizona Public Service, which generates, sells and delivers electricity and energyrelated products and services. Market cap category: Mid cap Headquarters: Phoenix Average annual return: 11.29% Volatility: 16.44% Stock performance index: 45.19

9. Knight

Transportation Inc.

NYSE: KNX What it does: American truckload motor shipping carrier, founded in 1990 by four cousins: Randy, Gary, Kevin and Keith Knight. Market cap category: Mid cap Headquarters: Phoenix Average annual return: 12.02% Volatility: 23.52% Stock performance index: 39.98

10. Microchip

Technology Inc.

NASDAQ: MCHP What it does: American manufacturer of microcontroller, memory and analog semiconductors. Market cap category: Mid cap Headquarters: Chandler Average annual return: 11.92% Volatility: 24.13% Stock performance index: 39.47 AB | September-October 2015

marketing Multi-channel marketing

Strengthening connections with consumers

arketers are now able to make strong consumer connections by launching campaigns that integrate online or offline content. Campaigns that can be viewed on billboards, print and other offline channels, can now be merged with the unlimited online capabilities of social, mobile and digital. To achieve this, brands must create a multi-channel marketing execution Andy Lombard to make sure offline capabilities are Marketing integrated with digital, social and mobile campaign executions. They must go through the process of looking at each stage of the conversion process and improving it from stage to stage to ensure their marketing is meeting defined and recognized KPIs that verify success in marketing campaigns. The ability to measure those channels and change messaging as you go is the key to ensuring the consumer connection remains successful. Digital campaign execution is critical in allowing brands to build effective improvements on conversions as the customer starts to move through the process in the digital realm— campaigns provide real, hard data that can be seen and improved in real time. Look at billboard ads, for example, where you put your marketing out and then have to wait for the cycle’s end to get results and improve upon what didn’t work. With digital, brands can integrate the billboard's advertisement and move the needle very quickly, reacting to what’s working or not working with the ability to change on the fly. There are several examples of businesses that do this right. A great global example is McDonald’s — you can’t walk around without seeing a McDonald’s billboard or ads in your

AB | September - October 2015

newspaper. SocialWhirled is providing even further opportunity for engagement and awareness by making those same offline ads available digitally, in campaigns that include geo location and brings the consumer to the nearest McDonald’s to take advantage of the offer. Another great example is Red Mountain Resort's multichannel marketing campaign celebrating their 15th anniversary. Through the campaign, the resort highlighted a 15 percent discount for an adventure vacation. Through advertising on billboards, taxis and a personalized survey, the resort learned more people were interested in other amenities it offered. By adjusting its digital campaign branding and messaging midstream and changing its discount, it saw a 172 percent increase in monthly bookings. There is no better time to take advantage of combined multichannel strength. Mary Meeker’s latest report indicates that consumer time spent on mobile is 24 percent, yet advertising spending on mobile is only 8 percent of the total amount spent on advertising. Meeker calls this the “opportunity gap,” and she estimates it comes to $25 billion in potential ad spending. Multi-channel marketing today offers the opportunity to hone and create success formulas built on instant data that’s generated on conversions through the purchase journey—as consumers are purchasing and learning more about the product, marketers can track, change and monitor the process from start to finish. This information is key to executives in maintaining the relationship that’s most important: the one they have with their customers. Andy Lombard is co-founder, chairman and CEO of SocialWhirled, a digital publishing platform and campaign management system for brand leaders and their agencies of record.

small business

Capital crowd What are the risks and rewards for investors and businesses with Arizona’s new crowdfunding law?

rizona’s new crowdfunding law, which is intended to give small companies in the local Arizona economy greater access to capital, took effect on July 3. Arizona joins a growing number of states that have recently enacted laws permitting some form of equity crowdfunding. For start-ups and other emerging growth businesses that may not have ready access to traditional sources of funding, equity crowdfunding may be an attractive option for raising capital. Crowdfunding is the process by which companies raise capital with relatively small individual investments from a large number of investors, typically through the Internet and social media. Historically, crowdfunding has existed primarily in reward-based or donation-based models which allow individuals to contribute funds to particular projects, either as donations or in exchange Kevin J. Walsh for certain products or prizes. By Law comparison, equity crowdfunding is the process by which a company raises capital through crowdfunding in exchange for equity interest in the company. Under Arizona’s crowdfunding law, a company can raise up to $2.5 million if it provides investors with its audited financial statements, or up to $1 million otherwise, from investors in an offering. An investor can invest up to $10,000 in any company, or if he or she is an “accredited investor” under federal law, an unlimited amount. Arizona’s new law is not available for everyone. The company can only offer and sell securities to Arizona residents and must be “doing business” in Arizona, which requires, among other 34

AB | September - October 2015

things, that it maintain its principal office in Arizona and derive at least 80 percent of its gross revenues from operations in Arizona. Although many local companies will satisfy these requirements, businesses with a more regional or national presence will likely not qualify. Raising capital under the Arizona crowdfunding law has its drawbacks. Prior to commencing an offering, the company must specify the offering period and the target offering amount. All funds invested during the offering period must go to an escrow account until the end of the offering period. If the company fails to raise at least 80 percent of the target offering amount, the offering is deemed a failed offering and all funds must be returned to investors. Additionally, federal law imposes limitations that could restrict a company from raising additional funds for up to six months after the offering, which might not be a viable option for many start-ups. Going forward, companies must also provide quarterly disclosure regarding the business to investors. Consequently, companies considering an offering under Arizona’s crowdfunding law must carefully consider short-term and long-term capital needs before commencing any offering. Investors should be aware of the risks of any crowdfunding offering. Most start-ups go out of business within a few years of launching. Because there is no active market for securities bought in a crowdfunding offering, even investors who invest in successful companies may find it difficult to achieve liquidity for their investment. Unless and until a market for these securities develops or the company is acquired, investors could be holding their investment indefinitely. Kevin J. Walsh is an attorney at Quarles & Brady in Phoenix. For more information, visit quarles.com.

Nominate today for the 2016 Arizona Corporate Counsel Awards Nomination Deadline: October 16th AZ Business magazine recognizes the vital role that in-house counsel plays and acknowledges the accomplishments of leading in-house attorneys. Candidates in each category will be recognized for extraordinary legal skill and achievements across a full range of in-house responsibility, exemplary leadership and for contributions to the Arizona community at large.

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dining

Public service

Chef Bernie Kantak blends perfection at Citizen Public House By MICHAEL GOSSIE

f dining was baseball, Chef Bernie Kantak has pitched a perfect game with Citizen Public House. For years, Kantak’s devotees have praised former Cowboy Ciao mastermind’s culinary genius. But with Citizen Public House, which is located in a relaxed and stylish renovated building in Old Town Scottsdale’s Fifth Avenue Shops, Kantak has exceeded the expectations of even his biggest fans. The atmosphere — steel-topped bar, polished concrete floor, large wooden rafters supporting a high ceiling — is wonderful. The service — our waiter, Sam, may be the most accommodating, knowledgeable server in the Valley— is exceptional. And the food is that from which dreams are made. At Citizen Public House, Kantak has taken standard American favorites and reinvented them with a boldness and creativity that is without parallel. When we go to review a restaurant, we order a variety of appetizers, entrées and desserts to get a overall sense of the menu. There are always a couple clunkers that miss the mark. But at Citizen Public House, every dish was superb. Every dish was a mouth-watering masterpiece. It shouldn’t have been a surprise. Even the most critical foodies should know they are in for a treat when a restaurant’s specialty salad has its own Facebook page. While Citizen Public House’s menu is a single page, it comes with the knowledge that ever appetizer, every entrée and every dessert is well thought out and defines perfection. Diners can blindfold themselves and point to the menu and know they will have the best meal of their lives. That said, if you feel compelled to have some direction before you dine at Citizen Public House, these dishes all came highly recommended from Sam and anyone who has ever tried them will vouch for their deliciousness. • The Pork Belly Pastrami ($13) — which Sam described as a deconstructed Reuben sandwich — features pork belly, rye spaetzle, Brussels sprout sauerkraut and mustard jus has become somewhat of a legendary appetizer. One bite will tell you why.

AB | September - October 2015

• The Chia Seared Tuna ($16) came highly recommended by Sam. It is served on a bed of Thai purple sticky rice, asparagus puree, fried leek and micro green salad. It is perfectly seared. The chia seeds give it an amazing crunch. Combined with the spicy puree and rice and the dish is a burst of flavors in your mouth. • The Original Chopped Salad ($12) – which is so popular that it has it’s own Facebook page — hands down the best salad you will ever eat. The salad features perfect rows dried corn, couscous, smoked salmon, Asiago cheese, pumpkin seeds, tomatoes, arugula and currants that are tossed together at the table with a tasty buttermilk pesto. One word of advice: Order your own. You won’t want to share. • The Pan Seared Scallops ($28) are presented so perfectly that it looks like you’re about to bite into the pages of a fine dining magazine. The scallops were served with tender Belly Hampshire bacon, roasted corn grits, wilted snow pea greens and cola gastrique. If you can imagine biting into a tab of scallop-flavored butter, that’s kind of how the perfectly prepared scallops melt in your mouth. • The Venison Strip Loin ($38) is served with a beet crust, celery root purée, snap peas, fennel oil, pomegranate seeds and burnt honey jus. The taste is amazing and will quickly make your short list of favorites. Beyond the amazing food, Citizen Public House also excels with libations that perfectly complement the menu items. As we were leaving Citizen Public House’s parking lot, we were already planning our next visit. One bite of any of the restaurant’s amazing dishes and you will do the same.

Citizen Public House 7111 E. 5th Ave., #E Scottsdale, AZ 85251 480-398-4208 | citizenpublichouse.com

Fresh Seafood... Featuring the Valley’s largest selection of fresh

fish and seafood • Live Maine lobster, Alaskan King Crab and Yakimono Hawaiian Ahi are just some of the delicacies that make the Salt Cellar

Master-SaltCellar-AZBusMag-1.15.indd 1

Restaurant so popular • Cozy and intimate, the Salt Cellar is a favorite for those who appreciate fine seafood • Don’t miss our popular twin happy hours daily from 4:00pm to 7:00pm and again from 10:00pm to 1:00am.

550 North Hayden Road • Scottsdale 480.947.1963 • www.saltcellarrestaurant.com Reservations Suggested

2/9/15 10:53 AM

AB | September-October 2015

EXECUTIVE EDUCATION

Back to school Experts say it’s never too late to get a career boost by completing college degree By MICHAEL GOSSIE

f all the negative statistics that Arizona needs to reverse, this one might be at the top of the list. Arizona tied Alaska for the lowest college completion rate in the country in 2013, with just 29 percent of students able to earn a four-year degree in six years or less, Bart Burkert Kevin Burns a new report said. The U.S. Department of Education report also said Arizona posted the highest student loan default rate in the country, at 18 percent, compared with a national average of 11 percent. While state education officials said the statistics could be skewed by large numbers of students in other states who are

AB | September - October 2015

getting degrees online from for-profit schools based in Arizona, the news comes at a time when a postsecondary education has never been more important. “As the employment environment continues to globalize and become more competitive, it’s imperative that you remain viable as a talent source,” said Kevin Burns, director of the Business Career Center at the W. P. Carey School of Business at Arizona State University. “This is particularly true as you seek to grow in your established career.” For a variety of reasons, there are many business leaders — including Andy Weber, the 61-year-old CEO of Farm Journal Media — who don’t finish their college degrees. “In all those years out of school, my career went so fast, but it would haunt me,” Weber said. “It would actually wake me up at night thinking ‘I did all that work but I don’t have that degree.’” As Arizona’s college completion rates show, Weber is not alone.

AB | September-October 2015

EXECUTIVE EDUCATION But, like Weber, who went back to school and earned his degree from the University of Wisconsin-Madison in December, more and more business leaders are seeing the value of going back to school to finish what they started. “Having educational credentials that are on par, or better than, your competitors becomes critical to your survival,” Burns said. “A degree not only keeps you competitive, but it speaks to your relevance. A completed degree presents to a potential customer, employer, business partner, or vendor that you are interested and capable of learning the latest information in your profession.” So, where do you start if you are thinking about going back to school to finish that degree? “Take the time to research the universities you are interested in attending,” said Bart Burkert, executive vice president of operations at Grand Canyon University. “Be sure the school is accredited and transparent … Whether you’re in a classroom or online, be sure you feel supported by your counselors. They play a big part in your path to graduation.” Before you crack open that first textbook, experts said it’s important to remember these five things: Ask for your existing college credits to be evaluated for transfer so that you can determine the total cost to complete the degree before you get started. Research official employment statistics by industry for new graduates before enrolling in a program. There was a time when pretty much any college degree was a ticket to a new job. But those days are long gone. If you’re returning to college to switch careers or specialties, it’s important to talk with industry insiders who can evaluate your odds of success. Ask about in-demand occupations or certifications that would maximize your educational investment. If you are switching careers, experts said it’s imperative to find educational programs that also offer real-world work experience so it will be easier to get

“Ask about in-demand occupations or certifications that would maximize your educational investment. hired when school is over. Many community colleges — including several in Arizona — offer programs and life transition counseling services for people over 50. To find one, contact AARP or check out the Plus 50 website. Inquire about available tutoring services offered so you give yourself the best chance for success. Educators said even those who have been able to find success in the business world despite lacking a college degree, having that credential can always make your career path a bit smoother. “Nothing could be worse than not being able to take advantage of a career or business opportunity because you lack the required educational credentials to prove your value,” Burns said. Information from a Cronkite News report was used in this story. 40

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By the numbers Arizona tied for lowest college graduation rate in 2013 and had the highest student loan default rate, the U.S. Education Department said. The state and national numbers:

Arizona completion rates All schools: 29 percent Public: 57 percent Private: 52 percent For-profit: 23 percent National completion rates All schools: 55 percent Public: 55 percent Private: 64 percent For-profit: 32 percent Arizona default rate All schools: 18 percent Public: 9 percent Private: 5 percent For-profit: 19 percent National cohort default rate All schools: 11 percent Public: 9 percent Private: 7 percent For-profit: 19 percent

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Canada Business

Canadian bounty Neighbors from the north set up shop in Arizona and heat up stateâ&#x20AC;&#x2122;s economy By MERYL FISHLER

AB | September - October 2015

Matt Behmer

Chris Camacho

Joe Gysel

anadians love escaping the cold and traveling south to soak up the Arizona sun, but Arizona is becoming more than just a vacation destination for Canadians. Arizona’s economic climate offers Canadian companies a great place to enter the U.S. market, and Canadian companies are taking advantage of Arizona’s favorable business climate. More than 350 Canadian companies have opened enterprises in Arizona, making Canada the leader in the number of foreign businesses operating in the state. Arizona has a $6 billion bilateral footprint with Canada, which includes foreign direct investment, trade and tourism, according to Canada Arizona Business Council (CABC). Additionally, Canada is the foreign leader in the number of residential home ownership and commercial property ownership in Arizona. These numbers are substantial for a country whose ties with Arizona are defined by airports and financial institutions.

The past Arizona’s thriving and profitable business relationship started 60 to 70 years ago, according to Glenn Williamson, CEO and founder of the CABC. That was when western Canadians were first lured to Arizona to escape the cold. The attraction has only grown, and Arizona welcomed almost 900,000 Canadian visitors in 2013, setting a record for the number of Canadians selecting Arizona for travel. But Williams said the game changer for Arizona’s business relationship with Canada came when the U.S. military began building up the aerospace industry in Arizona. “Canada has always been a significant player in that supply chain,” Williamson said. In the 1970s, Canadians began entering Arizona on the commercial real estate level and bought up huge chunks of property, Williamson said. The number of Canadians visiting the state and doing business in Arizona was on a steady growth trajectory before the recession hit. However, unlike how the recession negatively impacted most factors in the economy, Canadians poured into Arizona during the recession and bought very expensive houses, Williamson said.

The present Fast forward to the present and there are more than 350 business operating in Arizona, employing

Sandra Watson

Glenn Williamson

approximately 50,000 people, Williamson said. The biggest Canadian companies in Arizona include Bombardier Aerospace, which employs 1,000 Arizonans, and Bank of Montreal, which has 400 Arizona employees, according to the Arizona Commerce Authority (ACA). Trade and investment with Canada accounts for 146,800 jobs in Arizona, meaning 1 in 20 jobs depends on trade and investment from Canada, said Sandra Watson, president and CEO of the ACA. “Each Canadian company that establishes a presence in Arizona creates jobs and capital investment in our state, generating a positive economic impact,” Watson said. “Increased activity between Canada and Arizona brings new business opportunities, innovations and solutions to both markets.” Additionally, Canada as a foreign direct investor is very favorable for Arizona’s economy because it helps insulate the state by providing diversification in the market, said Chris Camacho, president and CEO of the Greater Phoenix Economic Council (GPEC.) Moreover, these jobs generally carry 15 to 20 percent higher wages, he said.

The attraction Arizona’s pro-business environment and low operating costs make the state very attractive to Canadian companies. “Arizona is an open-for-business type of state, which we saw as very attractive,” said Joe Gysel, president of EPCOR Water USA Inc., an indirect wholly-owned subsidiary of the Canadian company EPCOR Utilities. EPCOR began operating in Arizona in 2010 and is now responsible for providing water and wastewater service to 22 communities and seven counties in Arizona and New Mexico, making it the largest privately regulated water utility in both states. Arizona was EPCOR’s entry point into the United States, with its U.S. headquarters in Phoenix. Choosing Arizona was a decision based purely on economics, Gysel said. Regulatory assets, a competitive tax structure, talented labor pool and strategic location were all characteristics that attracted EPCOR and are continuing to draw other Canadian companies looking for corporate expansion, growth and start up in the U.S. market. The low cost of operating a business in Arizona is key, experts said. Critical to this is Arizona’s Competitiveness Package. Adopted in 2011, this legislation modernized AB | September-October 2015

Canada Business

the state’s tax system, streamlined the regulatory structure and promoted a focus on business recruitment, retention and highvalue job creation, according to the CABC. Arizona’s simplified tax system is also a huge draw for Canadian companies. The state and local tax burden on Arizona’s citizens is the 14th lowest in the nation, according to the Tax Foundation. The tax-friendly environment is comprised of no franchise tax, no business inventory tax and no estate tax. The corporate and individual income tax rates in Arizona are also among the lowest in the nation. Additionally, the state provides companies low workers’ compensation and unemployment insurance rates.

Geography is key Another major benefit Arizona offers Canadian companies is the access to the growing consumer market. The state’s strategic geographic location offers business unique access to major world markets. “The most apparent reason you see a lot of Canadian companies out of Vancouver, Toronto and Montreal is because they can get access to the California marketplace from a market that is more favorable from the cost side,” Camacho said. Arizona is one of the only states within a day’s drive of California, the ninth largest economy; Texas, the 13th largest economy; and Mexico, the 14th largest. Canadian companies can reach 65 million consumers per day in Arizona by truck, Watson said. “Arizona becomes Canadian beachfront property to South America,” Williamson said. Arizona’s strenghtening workforce is also continuously fed by the state’s higher education system. The workforce in metro Phoenix offers a rich talent pool, Camacho said. The quality of the labor resources in Arizona was a compelling factor in EPCOR’s decision to locate it’s U.S. headquarters in Phoenix, according to the company. Arizona offers a number of top-quality universities, technical and trade schools that companies such as EPCOR are looking at during site selection. High-level education and training are key to companies growing in the utility space, experts said. Arizona’s high quality of life, low cost of living and the low cost of commercial real estate are other huge draws for Canadian companies. “One in five homes in Arizona is owned by a Canadian and that made coming to Arizona quite easy,” Gysel said.

More to come In 2014, Matt Behmer’s Flagstaff-based Traditional Roofing Inc. 44

AB | September - October 2015

was acquired by Canada’s Flynn Group of Companies. The Flynn Group of Companies is made up of seven companies and employs more than 4,000 people in 26 locations across North America. “A lot of it had to do with the fact they saw growth opportunity here,” said Behmer, now director of operations in the Southwest for Flynn. He attributes the opportunity to grow, climate and logistics as the three main factors that brought Flynn to Arizona. According to Flynn, it saw Traditional Roofing as a perfect fit culturally and strategically to become a springboard for the company’s growth in the region. In addition to the robust suite of advantages designed to help attract foreign businesses, Arizona-based economic development groups have laid the groundwork to facilitate the attraction of these companies. They accomplished this by engaging company decision makers in Canada and showing them Arizona’s many attributes and opportunities. The recruitment of Canadian companies has been a collaboration of economic development organizations, chambers of commerce, cities, towns, academic institutions and the business community. “The ACA works closely with companies to educate them on Arizona’s value proposition and programs, which can help advance their corporate success,” Watson said. The ACA leads targeted sales missions every 30 to 60 days to select Canadian markets. In the past year, the ACA has led six such missions, Watson said. GPEC is also on the front end of attracting Canadian firms. “We take mayors on hosted road shows in Canadian markets to sell the advantages of operating in Metro Phoenix over other places,” Camacho said. Despite all the success, Canada still doesn’t receive the same attention as other foreign countries, such as Mexico, when it comes to discussions on trade, investment and future growth. Mexico has a significant footprint in the state, but the business relationship between Mexico and Arizona has a huge way to grow compared with the state’s relationship with Canada, Williamson said. The benefits of Canadian companies doing business in Arizona and the impact on the state’s economy far exceeds the attention it receives. Despite the lack of attention, experts agree that Arizona’s colossal business relationship with Canada will continue to grow and strengthen. “Since 2009, Arizona’s exports to Canada have increased nearly 25 percent,” Watson said. “We expect to see trade and investment between Canada and Arizona increase exponentially moving forward.”

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Every day we keep you connected to the things that matter â&#x20AC;&#x201C; like clean water for homes and businesses. At EPCOR Water, being a water and wastewater utility is more than providing a service. Arizona is our home, too, and taking care of our water resources is serious business. Learn more about water in Arizona by visiting epcor.com.

AB | September-October 2015

Each year, Arizona Business magazine and BestCompaniesAZ recognize the stateâ&#x20AC;&#x2122;s elite businesses with the Most Admired Companies Awards, the most comprehensive and prestigious corporate recognition program in Arizona.

AXA Advisors Southwest Bankers Trust Banner Casa Grande Medical Center Barrow Neurosurgical Associates Blood Systems CBIZ MHM, LLC CBRE Charles Schwab Cresa Phoenix Fennemore Craig GoDaddy Henry & Horne, LLP Hyatt Regency Phoenix Infusionsoft Ipro Tech, LLC JLL Kitchell Laser Spine Institute

Lovitt & TouchĂŠ Mark-Taylor Medtronic Musical Instrument Museum Nextiva Quarles & Brady Ryan, LLC Shutterfly Sonora Quest Laboratories Sundt Construction Suntec The CORE Institute UMB Bank UnitedHealthcare of Arizona United Services Automobile Association (USAA) Vanguard Vonage (formerly Telesphere) WebPT

2015 Most Admired Companies

Deep impact Building a legacy in the communities they serve defines Arizona firms who earn Most Admired Companies Awards By MICHAEL GOSSIE

erhaps even greater than its product or service, a company’s community impact is often what people remember. “We grew up in this state, we like this state and we like contributing to the success of the state,” said David Crawford, CEO of Sundt Construction. “One of the great things about construction is that it is a tangible business and you get to see what you’re building every day. When people who work with our company get in their cars and drive, the see the impact we’ve had on our communities both through the buildings we’ve constructed and through the many ways we give back to our communities.” Besides impacting a business’ legacy, being socially responsible also plays a major factor in a company’s ability to be honored by Az Business magazine and BestCompaniesAZ as one of the 40 companies who were chosen as 2015 winners of Arizona’s Most Admired Companies Awards. With nearly 300 nominations representing the most innovative and successful companies in Arizona, being one of 40 winners

shows that the companies profiled on the pages that follow truly represents the best in Arizona. When developing the Most Admired Companies program, the primary goal of Az Business magazine and BestCompaniesAZ was to recognize those companies that excel in workplace culture, leadership, social responsibility, customer opinion and innovation. Those are qualities that Sundt personifies, which is the primary reason Sundt — which is celebrating 125 years in business this year — is one of just six companies to earn Most Admired Companies Awards in each of the program’s six years. The other companies that have earned the honor every year are American Express, CBRE, Shutterfly, Sonora Quest Laboratories and UnitedHealthcare of Arizona. So, what’s the key to consistently being one of the Most Admired Companies in Arizona? “It’s our commitment to excellence,” Crawford said. ‘We work for public owners and we work for private owners. But we also work for users of the facilities we build. We try to deliver a quality experience for each one of those people and provide a predictable outcome on every project every time. We build that into our culture so everyone has a commitment to excellence. Building that culture in the workplace is the key to sustained excellence.”

DAVID CRAWFORD: “We are deeply honored and humbled to have made the list of Most Admired Companies in Arizona every year,” said the CEO of Sundt Construction, which is celebrating its 125th anniversary this year. “One of our goals is to make that list every year, not only because of the things we do in our industry, but for the positive things we do in the communities we serve.” PHOTO BY MIKE MERTES, AZ BIG MEDIA

AB | September-October 2015

2015 Most Admired Companies

Growing companies

to admire

Arizona technology sector is literally changing the world and making history

rizona’s stature and reputation as a technology hub grows every year due to the support of an intricately woven ecosystem. Thanks to a combination of incubators, accelerators, academic institutions, maker facilities, shared workspaces and supportive legislation, Arizona has become truly great at nurturing technology companies. It’s no wonder, then, that Arizona is Steven G. Zylstra home to scores of technology companies Technology that energize their communities through high-value jobs. Many are changing the world and making history, whether they are navigating a nine-year journey to Pluto or 3D printing a highway-ready automobile in a local micro-factory. The list is long, but let’s take a look at some prime examples of Arizona technology companies we should admire: • As one of the world’s premier distributors of electronic components and computer products, Avnet is the largest publicly traded company headquartered in Arizona. It is a $28.1 billion business anchor in Arizona. Not only does Phoenix-based Avnet attract top talent to the region, it regularly gives back to the community through charity events like Operation Back to School Chandler. • Infusionsoft of Chandler makes great sales and marketing tools to help small business thrive. It recently raised $109 million in capital funding from Bain Capital Ventures and Goldman Sachs. And Infusionsoft isn’t slowing down, recently announcing a plan to enter the mobile payment space. • To make its vision of a global command data center a realty, Apple will invest $2 billion in its Mesa facility — the single largest investment the iconic company has ever made in one community. • Located in Chandler, Local Motors uses 3D printing to manufacture automobiles. By embracing open-source motor vehicle design and employing multiple micro-factories, the company is at the forefront of limited run automobile

AB | September - October 2015

manufacturing. • Prodo Innovations, a Scottsdale-based product design and prototyping firm, is working with Local Motors to develop a mobile 3D printing station, a tool that could print first-world medical supplies on demand in the third world. The project is a great example of Arizona’s collaborative ecosystem in action. • Tempe-based KinetX Aerospace recently made international headlines: The company handled the navigation for NASA’s New Horizons mission to Pluto. KinetX’s sophisticated algorithms allowed the spacecraft to extrapolate navigational information from only a single pixel of light as captured by the onboard camera. The mission has resulted in the most detailed imaging of Pluto ever captured by mankind. • In Tucson, 4D Technology is changing the face of optical metrology, the science of measuring with light. Its innovations have given high-throughput electronics manufacturers exciting new tools to scan for defects with high resolution at great speed. Its aerospace instrumentation is trusted by NASA, Boeing, Ball Aerospace and others. • By leveraging machine learning and propriety algorithms, Emailage of Chandler is making it easier than ever to detect fraud. In providing real-time alerts of risky transactions, it allows international companies like Discover and Tiffany & Co. to be proactive rather than reactive when it comes to transaction risk. Arizona’s presence as a technology hub is remarkable, but its future promises to be more exciting still. It’s the goal of the Arizona Technology Council to help make the state the fastest-growing technology center in the U.S. As the local technological and entrepreneurial ecosystems grow more robust and interconnected, I know we’re approaching the realization of that goal every day. Steven G. Zylstra is president and CEO of the Arizona Technology Council.

2015 Most Admired Companies Alliance Residential Company Most Admired Company: 2015 Top local executive: Bruce Ward, president What it does: Manages a $9 billion multifamily portfolio. Admirable quality: In partnership with specialty apparel retail The Limited, Alliance InStyle ensures associates demonstrate a unified and branded look reflective of Alliance culture and the quality of the assets it manages, while simultaneously providing associates with stylish business-apparel options from a well-known brand. In addition, Alliance University, a state-of-the-art training program, makes Alliance one of the only multifamily companies using a learning management system.

American Express Most Admired Company: 2010, 2011, 2012, 2013, 2014, 2015 Top local executive: Tammy Weinbaum, senior vice president and general manager What it does: American Express is the largest credit card issuer by purchase volume. Admirable quality: Weinbaum was recognized in 2014 by the National Association for Female Executives (NAFE) with a Women of Excellence Award for Mentorship. Weinbaum also chairs the steering committee of the Valley of the Sun United Way Women’s Leadership Council. American Express was also named one of NAFE’s Top 50 Companies for Executive Women in 2015.

Arizona Charter Academy Most Admired Company: 2010, 2011, 2012, 2013, 2015 Top local executive: Melissa Holdaway, CEO What it does: ACA is a Valley-based, coeducational, public charter school. Admirable quality: A strong focus, both in time and money, is given to ongoing training of the ACA staff to ensure the next level of leaders are continually being trained. Holdaway’s passion is to empower others to reach their potential and embed ACA in the community to make a large impact both in the community and with the students.

AB | September - October 2015

2015 Most Admired Companies Arizona Diamondbacks Most Admired Company: 2011, 2013, 2014, 2015 Top local executive: Derrick M. Hall, president and CEO What it does: Major League Baseball team that won the 2001 World Series. Admirable quality: The Diamondbacks’ priority on culture is evident in the organization’s Circle of Success and can be seen in First Friday luncheons, quarterly employee outings and other events. The Circle of Success focuses the organization’s efforts on performance, community, culture, financial efficiency and fan experience. Yahoo! recently tabbed the Dbacks as the “best workplace in sports” in an article about the organization.

AXA Advisors Southwest Most Admired Company: 2014, 2015 Top local executive: Dillan Micus, executive vice president What it does: Assists individuals and businesses with financial planning needs. Admirable quality: AXA was named winner of the 2015 Governor’s Volunteer Service Award for its dedication to volunteerism, fundraising and community service. Among the ways AXA gives back is its Weekend Jetaway, which raises funds for Elevate Phoenix; the Scottsdale office has granted more than $70,000 to local students to help them attend college; and the AXA Research Fund, which supports scientific research.

Bankers Trust Most Admired Company: 2015 Top local executive: Patricia F. Rourke, market president What it does: Full-service bank. Admirable quality: Under Rourke’s leadership since 2007, Bankers Trust has grown from $0 in assets to $335 million in assets in the Phoenix market. Between 2009 and 2014, Bankers Trust allocated approximately $5 million to community projects. In each of those years, Bankers Trust employees devoted about 13,000 volunteer hours to area causes. Bankers Trust ranked second in its category for the 2014 Valley of the Sun United Way Leadership Giving Campaigns.

AB | September - October 2015

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2015 Most Admired Companies Banner Casa Grande Medical Center Most Admired Company: 2012, 2013, 2014, 2015 Top local executive: Rona Curphy, president and CEO What it does: Full-service, nonprofit hospital. Admirable quality: Under Curphy’s leadership, the hospital has achieved economic stability, improved the hospital’s image in the community and inspired the employees to to fulfill BCGMC’s mission of “making a difference in people’s lives through excellent patient care.” Through Curphy’s visionary leadership and mentoring, BCGMC has achieved best place to work status on local, state and national levels and is continually raising the bar.

Barrow Neurosurgical Associates Most Admired Company: 2015 Top local executive: John Kinna, CEO What it does: Brain, spine and other surgical procedures. Admirable quality: Barrow surgeons are consistently breaking boundaries for brain and spine surgery. Dr. Nicholas Theodore was the first surgeon to implant a neuro-spinal scaffolding device into the spinal cord of a patient. It saves acutely injured cells by attaching them to the biodegradable device during the recovery phase. Dr. Robert Spetzler pioneered the technique of hypothermia and cardiac arrest in order to successfully treat otherwise inoperable brain aneurysms.

Blood Systems Most Admired Company: 2015 Top local executive: Dan Connor, CEO What it does: Provides blood, blood components and special services to patients in nearly 600 hospitals across the country. Admirable quality: To help hospitals reach the triple aim goals of cost, quality and community health under the Affordable Care Act, Blood Systems provides training and methodologies in blood utilization and safety. Blood Systems offered the nation’s first Transfusion Safety Officer course. Staff from more than 50 hospitals have completed this training. In addition, Blood Systems performs about 100 quality consulting engagements for customers every year. 56

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2015 Most Admired Companies CBIZ MHM Most Admired Company: 2012, 2015 Top local executive: Carlos Wagner, executive managing director What it does: Provides tax, estate and trust planning, business consulting and accounting services. Admirable quality: CBIZ Womenâ&#x20AC;&#x2122;s Advantage is designed to recruit, retain and advance women in the accounting profession and create an umbrella for a variety of networking, leadership, mentoring and skill-building opportunities. The program celebrates the uniqueness of female business professionala and provides women decision makers access to a network of highly skilled, seasoned, professional women to assist their business needs.

CBRE Most Admired Company: 2010, 2011, 2012, 2013, 2014, 2015 Top local executive: Craig Henig, senior managing director What it does: CBRE is a full-service real estate services company. Admirable quality: CBRE Phoenix designed, developed and launched the HUB, a web-based system that connects and consolidates various processes critical to commercial real estate operations, marketing and analytics. In doing so, the office centralized and digitized its operational functions and eliminated significant amounts paperwork, further enhancing company-wide sustainability goals. Internally, CBRE employees use the HUB to manage listings, invoices, contacts, document centers and property signage.

Charles Schwab Most Admired Company: 2013, 2014, 2015 Top local executive: Bernie Clark, executive vice president, Schwab Advisor Services What it does: Provides help with financial planning, investments, retirement planning and more. Admirable quality: Schwab was named to Fast Companyâ&#x20AC;&#x2122;s 2015 list of the Most Innovative Companies in personal finance. Schwab launched a fully automated investment advisory service, Schwab Intelligent Portfolios, the only investment advisory service using sophisticated computer algorithms to build, monitor and rebalance diversified portfolios based on an investorâ&#x20AC;&#x2122;s goals, time horizon and risk tolerance without charging any advisory fees, commissions or account services fees. 58

AB | September - October 2015

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2015 Most Admired Companies Cresa Phoenix Most Admired Company: 2014, 2015 Top local executive: Gary Gregg, managing principal What it does: Corporate real estate advisors specializing in tenant representation. Admirable quality: Cresa allows employees to participate in philanthropic activity with no limit on time away from the office. Every spring, Cresa holds a charity event that combines team-building exercises with a chance to support worthy organizations. Last year, Cresa raised more than $70,000 during the event. Cresa is also a founding sponsor of the Industry Leaders of Arizona awards, which celebrates the top leaders in key industries in Arizona.

Fennemore Craig Most Admired Company: 2010, 2014, 2015 Top local executive: Stephen Good, managing partner What it does: Fennemore Craig is a fullservice law firm for businesses. Admirable quality: Long before the word became fashionable, Fennemore Craig was committed to fostering diversity in the workplace. Fennemore Craig has appointed a Diversity and Retention Council to actively recruit, develop and retain a mix of talented lawyers and staff. The diversity strategyâ&#x20AC;&#x2122;s success is shown in the number of minority and women directors and in the number of leadership positions held by minorities and women.

GoDaddy Most Admired Company: 2011, 2012, 2014, 2015 Top local executive: Blake Irving, CEO What it does: Internet domain registrar and web hosting company. Admirable quality: GoDaddy supports 62 nonprofits through sponsorships and grants, donating close to $800,000 to nonprofits who foster STEM (science, technology, engineering and math), computer science education and entrepreneurship. In addition, more than 200 charities received GoDaddy products in-kind, GoDaddy employees logged 7,550 volunteer hours last year and GoDaddy Cares, the philanthropic arm of GoDaddy, has donated more than $14 million to a variety of charitable organizations. 60

AB | September - October 2015

2015 Most Admired Companies Henry & Horne, LLP Most Admired Company: 2015 Top local executive: Chuck Goodmiller, CPA, co-managing partner What it does: Provides expertise in accounting, estate estate and tax issues. Admirable quality: In 2014, the firm created the “team engagement manager” position, which focuses on recruitment, retainment and training. The focus of this position is to be a sounding board for team members and to help the firm retain and engage members. Through this position, the firm has been able to monitor the moods and development of the team members and make changes quickly before anyone becomes disengaged.

Hyatt Regency Phoenix Most Admired Company: 2013, 2014, 2015 Top local executive: Thomas Delaney, general manager What it does: Hotel with 693 rooms and mountain or downtown views. Admirable quality: Informatica Corporation, the world’s No. 1 provider of date integration software, name Hyatt Hotels & Resorts winner of the 2015 Informatica Innovation Award for the category of Total Customer Relationship. Hyatt Regency Phoenix recently rolled out its Guest Experience Management Tool, which helps recognizing the preferences of guests to help make them feel at home. This tool helps create personalized experiences for hotel guests.

Infusionsoft Most Admired Company: 2011, 2012, 2013, 2014, 2015 Top local executive: Clate Mask, CEO What it does: Offers an e-mail marketing and sales platform for small businesses. Admirable quality: Most marketing solutions are designed to meet the needs of larger businesses. By creating an innovative software package aimed exclusively at those in the small business sales and marketing space, Infusionsoft dissolves barriers, drives leads and maximizes revenue for small businesses while simplifying sales and marketing processes. This solution has grown Infusionsoft’s customer base to 30,000 small businesses with 100,000 users in more than 70 countries. 62

AB | September - October 2015

COMING NEXT ISSUE • Meet the ﬁnalists for the CFO of the Year awards • How an upcoming migration of wealth will impact the banking industry • Advice from experts to create the best ofﬁce holiday party • How should Arizona handle rising anxieties about dwindling water supplies? • A look at the Salvation Army’s 150 years of service A Z BUSINESS

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2015 Most Admired Companies Ipro Tech, LLC Most Admired Company: 2015 Top local executive: Kim Taylor, president and COO What it does: Develops advanced software solutions to streamline the eDiscovery process. Admirable quality: For more than 25 years, Ipro has consistently reinvented itself to give the legal community options to reduce its overall technology legal spend. Last year, Ipro announced its {i-Proclamation}, a promise that simple, automated and affordable eDiscovery should be the expected norm. Ipro then revamped its product line to lower the cost, reduce process time, prevent errors from occurring while processing and to the lower the dependency on people.

JLL Most Admired Company: 2015 Top local executive: Dennis Desmond, senior managing director What it does: Offers commercial real estate services for corporations and investors. Admirable quality: JLL is able to recruit and retain the most accomplished talent in its industry by focusing on diversity and sustainability. From 2008-2014, JLL was chosen by the Ethisphere Institute as one of the World’s Most Ethical Companies. JLL was also named by Black EOE Journal and Hispanic Network Magazine to their “Best of the Best” lists for Top Diversity Employer and Top Supplier Diversity Program in 2013 and 2014.

Kitchell Most Admired Company: 2013, 2014, 2015 Top local executive: Jim Swanson, CEO What it does: Handles all aspects of the construction business, from concept through ribbon-cutting and beyond. Admirable quality: Since its origination in 1950, Kitchell has led its industry in leadership, innovation and productivity. With a “Plan-Do-Check-Act/Adjust” philosophy, company leaders and employees hold themselves and each other accountable for staying on track and within budget. This strong leadership has led to a 50 percent increase in net income over the past five years, despite recessionary conditions in the building industry. 64

AB | September - October 2015

ALWAYS...

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AB | September - October 2015

Blood Drives Create a Strong, Healthy Arizona Many of the companies on this year’s Arizona’s Most Admired list are connected with United Blood Services through their employees who are volunteer blood donors or who, themselves, have received lifesaving blood transfusions. Together, we are creating a stronger and healthier Arizona. United Blood Services offers blood drive sponsorship opportunities throughout the year to employers, schools, faith communities and service organizations. Blood drive sponsors exemplify the true spirit of service while strengthening their members’ morale and their organizations’ standing in the community. Blood drives develop leaders and strengthen connections. Serving 90 percent of the hospitals in Arizona and some 700 hospitals in 22 states across the country, United Blood Services’ parent organization, Blood Systems, is one of the nation’s oldest and largest non-profit community blood service providers. We are proud to have called Arizona home since the day we were established in Phoenix in 1943. From all of us at United Blood Services and our Blood Systems headquarters, thank you for this honor that recognizes the work of our dedicated employees. And congratulations to all of Arizona’s Most Admired Companies!

To learn about hosting a blood drive at your workplace or community organization, please call 480-675-5631

AB | September-October 2015

2015 Most Admired Companies Laser Spine Institute Most Admired Company: 2011, 2012, 2013, 2014, 2015 Top local executive: Heidi Kruger, executive director What it does: Laser Spine Institute helps patients with chronic neck or back pain. .Admirable quality: Laser Spine Institute holds a 96 percent patient satisfaction rate and was recognized for outstanding patient satisfaction with a 2013/2014 National APEX Quality Award, determined solely by patient feedback. Since 2005, Laser Spine Institute has helped more than 50,000 patients with 90 percent of patients returning to work within three months of surgery.

Lovitt & Touché Most Admired Company: 2015 Top local executive: Charles Touché, CEO What it does: Insurance agency offering personal lines, property and liability protection, employee benefits, claims administration, workers compensation and more. Admirable quality: Lovitt & Touché’ leadership considers community engagement such a critical component of the company’s core values that the firm rebranded itself last year with the tagline, “Business minded. Community focused.” In 2014, Lovitt & Touché committed more than $270,000 to local organizations through donations and sponsorships and is on track to surpass that total in 2015.

Mark-Taylor Most Admired Company: 2011, 2012, 2015 Top local executive: Dale Phillips, president and designated broker What it does: Apartment development, building and management.Admirable quality: With more than than $1 billion in assets and 13,000 units under management, Mark-Taylor maintains a leadership position by continuously refining industry standards and challenging the status quo. Every employee is automatically enrolled in Mark-Taylor University, which offers 123 courses that enable individuals to learn from the experience of Mark-Taylor leaders. The program provides an average of 25 days of training per employee, per year.

AB | September - October 2015

Thank you for choosing Barrow Neurosurgical Associates as a Most Admired Company!

It is our sincere pleasure to be named one of the Most Admired Companies. Patients at Barrow often end up in the hands of our physicians because they have lost all hope. We believe that empowering and engaging our employees is the secret to fulfilling our mission: To be a model for excellence in neurosurgery and spine care through our dedication to our patients, our commitment to sound medical practice, innovation and our affiliation with Barrow Neurological Institute.

Barrow Neurosurgical Associates Learn more about our brain and spine services at BNAneuro.net.

Barrow Neurosurgical Associates (â&#x20AC;&#x153;BNAâ&#x20AC;?) is a doing business as name for Neurosurgical Associates, Ltd.

2015 Most Admired Companies Medtronic Most Admired Company: 2015 Top local executive: Ron Wilson, vice president and general manager What it does: Medtronic is a global leader in medical technology. Admirable quality: Last year, more than 9 million people benefited from Medtronic’s medical therapies which treat cardiac and vascular diseases, diabetes, neurological and musculoskeletal conditions. The Tempe campus produces the electronic “brains” for implantable products and just hit its first year of producing 1 million units in a manufacturing environment that demands first-time perfection. The Tempe campus holds 192 patents and five Trade Secrets.

Musical Instrument Museum Most Admired Company: 2015 Top local executive: April Salomon, executive director What it does: As the largest museum of its type in the world, MIM showcases a collection of more than 15,000 musical instruments and associated objects. Admirable quality: The average guest visit to MIM is more three hours and some spend more than six hours exploring MIM. TripAdvisor rated MIM the No. 1 thing to do in Phoenix — the No. 1 overall attraction and No. 1 museum. USA Today named MIM among the “10 Best Museums for Families Across the USA.”

Nextiva Most Admired Company: 2015 Top local executive: Tomas Gorny, CEO What it does: Offers a cloud-based VoIP phone system that is designed for small businesses to large enterprises. Admirable quality: In 2014, Nextiva created a culture department with three people working full time on employee engagement-related projects. To foster a positive workplace environment, Nextiva has created a new hire experience, health and wellness programs and weekly video episodes to share company announcements, product news, introduce new hires and promote employee interaction.

Quarles & Brady Most Admired Company: 2014, 2015 Top local executive: Nicole Stanton, office managing partner What it does: Full-service law firm offering legal services to businesses and individuals. Admirable quality: During their first two years with Quarles, new associates have a personal mentor. The firm’s formal Associate Development Curriculum includes social networking, building client relationships, negotiation skills, brief writing for litigators, contract drafting, LinkedIn professional practicum, negotiation skills, accounting and more. As a result of its commitment to professional development, Quarles is rated second in the nation for informal skills training in the Vault Associate Survey. 70

AB | September - October 2015

AB | September-October 2015

AB | September - October 2015

AB | September-October 2015

2015 Most Admired Companies Ryan, LLC Most Admired Company: 2012, 2013, 2014, 2015 Top local executive: Jon Sweet, executive vice president and vice chair What it does: Ryan provides a comprehensive range of state, local, federal, and international tax advisory and consulting services. Admirable quality: Ryan constantly looks for innovative programs to enhance employee engagement. Employees are measured on results achieved, not hours worked. They are given complete flexibility and can choose where and when they want to work on a day-to-day basis. Employees are expected to observe the “three Cs” to accomplish this effectively — communication, collaboration and consideration.

Shutterfly Most Admired Company: 2010, 2011, 2012, 2013, 2014, 2015 Top local executive: Corey Conklin, vice president of customer care What it does: Internet-based image publishing service. Its flagship product is its photo book line. Admirable quality: Shutterfly’s company culture is encapsulated in its employee brand vision statement, “Memories every day. Create yours. Inspire others.” Shutterfly executives strive to create an employeefocused culture so employees will be truly proud of the company for which they work. Executives say some of Shutterfly’s best ideas come from employees who interact with the products on a daily basis.

Sonora Quest Laboratories Most Admired Company: 2010, 2011, 2012, 2013, 2014, 2015 Top local executive: Dave Dexter, president and CEO What it does: Sonora Quest schedules and conducts thousands of diagnostic lab tests daily. Admirable quality: Dexter was recognized in January with the inaugural Southwest Alliance for Excellence Leadership Award. Every leader at Sonora Quest participates in its leadership development program: Leadership Excellence through Accelerated Development (LEAD). Throughout this development series, leaders are trained and coached to become catalyst leaders who can spark the professional growth of employees by helping them develop skills, knowledge and outstanding attitudes.

Sundt Construction Most Admired Company: 2010, 2011, 2012, 2013, 2014, 2015 Top local executive: David Crawford, CEO What it does: Construction services involving heavy civil, federal, industrial, building and concrete contracting. Admirable quality: When a company has survived to celebrate its 125th year, its leadership model is the foundation of success. To continue this tradition of leadership, Sundt offers scholarship competitions and sponsors annual engineering school competitions. Sundt also supports Teach for America and Expect More Arizona, programs designed to help address the shortfall of talent. Sundt also trains craft workers at its inhouse education facilities.

AB | September - October 2015

AB | September-October 2015

2015 Most Admired Companies Suntec Most Admired Company: 2015 Top local executive: Jerry Barnier, CEO What it does: Commercial concrete construction company. Admirable quality: Suntec supported a local carpentry skills competition for Valley high school students. This event was associated with SkillsUSA, a nonprofit organization for high school and college students who are preparing for careers in trade, technical and skilled service occupations. Suntec has also partnered with Teach for America, which has chosen 26 teachers throughout the Valley for Suntec to adopt. Suntec will grant each teacher one act of kindness that will benefit his or her students.

The CORE Institute Most Admired Company: 2014, 2015 Top local executive: David J. Jacofsky, MD, CEO What it does: Provides best-in-class orthopedic care. Admirable quality: Since The CORE Institute’s inception in 2005, it has expanded in Arizona from three providers to more than 100 and more than 700 staff members. The CORE Institute is continuing to expand locally and nationally, adding locations in Michigan and Louisiana. CORE’s growth has been built on a platform of evidencebased medicine and meticulous outcomes tracking managed by a proprietary IT platform.

UMB Bank Most Admired Company: 2015 Top local executive: Jim Patterson, CEO of UMB Bank Arizona What it does: Provides a comprehensive suite of banking products and services to businesses and individuals. Admirable quality: UMB implemented its Digital Genius initiative in 2014. Customers can schedule an appointment with a qualified digital genius in any of UMB’s branches to learn everything they need to know about online banking. When Digital Genius launched, UMB saw a 50 percent boost in revenue for those branches. It also saved associates more than 500 hours of work.

UnitedHealthcare of Arizona Most Admired Company: 2010, 2011, 2012, 2013, 2014, 2015 Top local executive: David W. Allazetta, president and CEO What it does: Offers employer, individual and family health insurance plans. Admirable quality: Baby Blocks is an innovative, easy-to-use mobile web app which provides soon-to-be-mothers and new parents with appointment reminders, text messages that contain wellness tips based on the mother’s due date, information about what soon-tobe moms can expect during each visit to their prenatal healthcare provider, access to a maternity nurse so expectant moms can ask questions and ongoing support.

AB | September - October 2015

AB | September-October 2015

2015 Most Admired Companies United Services Automobile Association (USAA) Most Admired Company: 2015 Top local executive: Robert Schaffer, vice president and general manager What it does: Provides military members and their families with insurance, banking and investment services. Admirable quality: USAA is one of the leaders in mobile financial services. In 2012, USAA became the first bank to allow members to purchase a vehicle via their phone through Auto Circle. In 2014, it became one of the first banks to participate in Apple Pay. This year, it became the first bank to deploy facial, voice and touch ID entry.

Vanguard Most Admired Company: 2011, 2013, 2014, 2015 Top local executive: Bridget Olesiewcz, principal What it does: Offers mutual funds, ETFs, financial advice and related services. Admirable quality: Vanguard spearheads the Volunteer Income Tax Assistance (VITA) program, which provides free tax preparation services to low- and moderate-income families. In 2014, Arizona crew volunteered 1,003.5 hours, preparing 322 tax returns that resulted in the total amount of federal refunds of $449,607. In addition, 43 volunteers from Vanguard taught work readiness, entrepreneurship and financial literacy to 551 Arizona students in kindergarten through 8th grade.

Vonage (formerly Telesphere) Most Admired Company: 2014, 2015 Top local executive: Clark Peterson, president, Vonage Business Services Group What it does: As the largest museum of its type in the world, MIM showcases a collection of more than 15,000 musical instruments and associated objects. Admirable quality: The average guest visit to MIM is more three hours and some spend more than six hours exploring MIM. TripAdvisor rated MIM the No. 1 thing to do in Phoenix — the No. 1 overall attraction and No. 1 museum. USA Today named MIM among the “10 Best Museums for Families Across the USA.”

WebPT Most Admired Company: 2013, 2015 Top local executive: Paul Winandy, CEO What it does: Provides cloud-based electronic medical records and practice management software for physical therapists. Admirable quality: WebPT views customers as members. Members are industry professionals who not only receive WebPT services that help them be better in business, but also contribute to the development, implementation and improvement of those services. Using the Idea Portal, WebPT members contribute suggestions and recommendations on how to improve the system. To date, almost all of WebPT’s application upgrades are a direct result of member feedback.

AB | September - October 2015

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Business minded. Community focused. At Lovitt & Touché we understand that people come first. Whether it’s anticipating a client’s needs, taking care of our employees, or giving back to programs in the communities where we do business, it’s always about the people. So when we receive an honor such as being named one of Arizona’s 2015 Most Admired Companies, it means the people we think so highly of, think pretty highly of us as well. Thank you. LOVITT-TOUCHE.COM

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2015-16 Arizona Sunbelt Chapter of Meeting Professionals Internationalâ&#x20AC;&#x2122;s board of directors Top row, from left: Shelley Sullivan, US Foods; Sharon Scronic, Arizona Dental Association; Lee Smith, Hotel Valley Ho; Danielle Adams, WM Symposia; James Eggimann, CMP, The Ritz-Carlton Leadership Center; Jill Longfellow, EHI Holdings; Troy Peters, CTS, Video West; Michelle Fulcher, CMP, Discovery Treks; and Kelli Dawson, SMMC. Front row, from left: Cristin Barr, CMP, The Ritz-Carlton, Lake Tahoe; Erin Forrest, DoubleTree by Hilton, Phoenix and Tempe; Susie Molinich, CMP, SMMC, American Express Meetings & Events; Penny Allphin, CHME, Hassayampa Inn; Tiffany Higgins, The Tiffany Event; Debbie Elder, CMP, independent planner; Joanne Winter, MPI; and David Rosenbaum, CHME, Carefree Resort and Conference Center.

AB | September - October 2015

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Meeting Professionals International

Penny wise AzMPI president says meetings can change the world

By MICHAEL GOSSIE

PHOTO BY ROBIN SENDELE, AZ BIG MEDIA

PENNY ALLPHIN: “My goals are to be a mentor to future leaders and to make sure this association stays strong and relevant,” said the president of the Arizona Sunbelt Chapter of Meeting Professionals International. “I want to be a resource and to help the association be the best association it can be.”

AB | September - October 2015

Desert Botanical Garden

enny Allphin grew up in the world of meetings and events. “I have been in the hospitality industry since I was 17 years of age,” says Allphin, vice president of sales and marketing at Aris Hospitality Management, LLC. “There are never two days alike and there is never a dull moment – which keeps it exciting.” Allphin isn’t one to let a dull moment find her, either. She is a former president of the Arizona Chapter of the Hospitality Sales and Marketing Association International (HSMAI) and is current president of the Arizona Sunbelt Chapter of Meeting Professionals International (MPI). She brings an impressive resume to her leadership role in the industry association, including a current role with the Hassayampa Inn in Prescott

and former positions with Wigwam Golf Resort & Spa, Carefree Resort & Villas and Radisson Poco Diablo Resort. Allphin talked recently about her goals as president of AzMPI and trends that are impacting the meetings and events industry she knows so well. Az Business: How has your affiliation with MPI impacted you professionally? Penny Allphin: It’s helped me on so many different levels. It helps members improve their communication skills, leadership skills, managerial skills. You just become a better, more well-rounded professional. The level of MPI’s education programs and the level of the people you network with helps members take their careers to a higher level. AB: How important is networking in your industry?

PA: Relationship building is where everything happens. When you have a relationship with someone, it’s easier to call them when you need something. With networking, it’s easier to get help and find mentorships. AB: Are face-to-face meetings becoming a thing of the past? PA: With technology, you’re never unplugged. So when you go and have faceto-face meetings, it’s refreshing to have human contact and people like that. AB: How is Arizona doing as a meetings and events destination? PA: Arizona is doing well. Transient rooms (individual travelers) are leading the way as in we have a lot of tourists coming to our state. Group travel is up — not as much as transient — but it is up. We are hoping that we will see a bigger impact from groups in 2016. AB: How is technology impacting the meetings and events industry? PA: Have you been to a meeting recently where you see all the projectors and screens and lights? Meetings are huge productions today. It not like it used to be where you showed up in a meeting room and there was just an overhead projector in the middle of the room. Now, you can use smartphones or tablets to take live surveys during an event and really get a feel for what your audience wants and what they’re looking to get out of the event. Soon, we are going to be able to use smartphones for microphones, you’ll be able to use your smartphone to ask questions instead of running around the room with a microphone. How cool is that? Technology has expanded our industry and allowed us to get messages out much more effectively.

What is MPI? Meeting Professionals International (MPI)

is the largest and most vibrant global meeting and event industry association. The organization provides innovative and relevant education, networking opportunities and business exchanges, and acts as a prominent voice for the promotion and growth of the industry. MPI membership is comprised of approximately 18,500 members belonging to more than 80 chapters and clubs in 22 countries. For additional information or to join, visit www. mpiweb.org. ARIZONA CHAPTER: Active since 1979, the Arizona

Sunbelt Chapter is MPI’s 18th largest chapter in the world. The organization is comprised of 320 members throughout Arizona, representing a mix of corporate, association, government and independent meeting planners, suppliers who provide a variety of products and/or services to the meeting and hospitality industry as well as student and faculty from local colleges and universities. The local chapter offers members educational, networking and community volunteer opportunities, plus industry certification and professional growth opportunities. For more information, contact Executive Director Joanne Winter, at 602-277-1494 or visit the chapter website at azmpi.org.

AB | September-October 2015

AzMPI

Phoenix Art Museum

AB: What other trends are impacting the meetings and events industry? PA: For so long, with the industry being slower, meeting planners pretty much wrote their ticket. Now, with the change in the economy, the pendulum is swinging more to the hotel side and hotels no longer have to give away their services. Planners aren’t liking that because they’ve been spoiled and are saying, “What? I’ve never paid for that.” Hotels are starting to recoup some of the expenditures they were forced to forfeit while the economy was down. For years, meeting room rentals weren’t charged because hotels were just thankful to have business. But with business coming back, hotels can actually charge for their services again. AB: How do mega events impact Arizona’s meetings and events industry? PA: Arizona is becoming a hub of activity. When the events are in town, it impacts everybody and everything — transportation, hotel rooms, restaurants, activities. Everybody wants to know where to go, where to play. There are so many moving components. We are a state filled with beautiful resorts, beautiful hotels and some of the best restaurants. So when people are exposed to the state, they see that we are a tourist state and we know how to treat

them right, so they want to come back. AB: How does MPI impact Arizona’s tourism industry? PA: One of the problems our industry has is explaining to people what we do. I want to see one voice. I want MPI to help get a better voice out there nationally about what we do with meetings, what we do with events and how what we do affects the overall market. There is a whole movement about the advocacy of meetings and how they impact the nation financially and what we want to do with meetings and events heading into the future. I just want MPI to be part of that big voice. AB: What are your goals as AzMPI president? PA: Everybody was asking me what my theme is going to be and I am following the lead of MPI International. Their theme is perfect: “When we meet, we change the world.” That is true. When we meet, we can make things happen. People get energized when they meet with other people. People don’t get energized from an email with a task list. People get energized when they hear how their company is doing and where they are headed. They get knowledge. They understand. They get better. That is powerful.

AzMPI’s top performers The following members of the Arizona Sunbelt Chapter of Meeting Professionals International were recognized at the Annual Awards Gala held in June at the Phoenix Marriott Tempe at the Buttes: Planner of the Year: Sharon Scronic, Arizona Dental Association Supplier of the Year: Kate Snapp, CTA, Marriott International Edward E. Scannell Award: Patricia Zollman, CMP, CMM,

HelmsBriscoe Sponsorship awards: Loews Ventana Canyon Resort and

Hassayampa Inn Rising Star Award: Shelley Sullivan, US Foods

AB | September - October 2015

Host Property/Venue of the Year: Hotel Valley Ho Committee of the Year Award: EduCon Committee Member of the Year Award: Troy Peters, CTS, Video West Chapter Achievement Award: Lee Smith, Hotel Valley Ho President’s Achievement Award: Erin Forrest, DoubleTree by

Hilton Phoenix Tempe

AB | September-October 2015

AzMPI

Class act AzMPI partners with universities to stress the importance of education and training for the industry’s future By MICHAEL GOSSIE

Desert Botanical Garden

oday’s students need to hit the ground running. “One of the fascinating things I share with my classes every semester is how important the bachelor’s degree Michelle Fulcher is to employment,” said Gary Vallen, a professor in the School of Hotel and Restaurant Management at Northern Arizona University. “Studies performed by the industry demonstrate the same fact; well over 80 percent of today’s executives hold at least a bachelor’s degree. While it is your skill and motivation that keeps your job and moves you up the ladder, it is the college degree which gets your foot in the door.” That’s never been more true in the meetings and events industry than it is today. Recognizing that today’s students will evolve into tomorrow’s leaders, the Arizona Sunbelt Chapter of Meeting Professionals International (AzMPI) is partnering with the state’s universities to demonstrate the importance of education and training for the future of the industry. AzMPI has even launched clubs at Arizona State University and NAU. The industry impact from the collaboration is undeniable. “I gained insight and knowledge from (college) professors who had been in the hospitality industry for years,” said Deliah Rose, who went through NAU’s Hotel and Restaurant Management Program and is now director of hotel sales and marketing at Wild Horse Pass Hotel & Casino. “I loved the idea 88

AB | September - October 2015

Deliah Rose

Christina Tzavellas

Gary Vallen

that I was learning from people who had been on the front line, not just from a book.” Rose said college level training also exposes students to different aspects of the hospitality industry to help them determine what they enjoy most. “Classes included everything from guest service to tourism, accounting to housekeeping,” Rose said. “We were also required to have real world experience before graduation.” At NAU, Vallen said the meetings and events management course helps students become involved with more than 25 separate events in just 16 weeks.

Life lessons

Experts say today’s college classes and hands-on experience prepare prospective meeting and event planners for those “real-life” scenarios they will encounter in the industry. “This structured education assists in providing the basis for effective and efficient decision-making as they understand meeting management concepts as well as the related business

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AzMPI

AzMPI member spotlight Erin Forrest Catering sales manager DoubleTree by Hilton Phoenix - Tempe Professional background: While attending the hotel and restaurant management program at Northern Arizona University, Forrest worked front desk in the hospitality industry and completed a front office internship during the summer before her senior year. After graduating, Forrest moved into sales and catering. MPI background: “In 2008, I was signed up as the MPI member for my hotel. For the first year, I wasn’t very involved but after having lunch with a member of board, I was ‘volun-told’ for the Monthly Program Committee. The following year, I chaired the committee and then joined the board. I’ve been an active member ever since.” Trend to watch: “In catering and conference services, food trends are always interesting to me. However, I believe the healthier food options will continue into 2016. Yet there is always the struggle between the meeting planner selecting the veggie cup and the attendee wanting a cookie.”

AzMPI member spotlight Sharon Scronic Manager of educational programs Arizona Dental Association Professional background: Scronic started working a few meetings in college and was instantly hooked on the meetings and events industry. She has worked everything from corporate and association meetings to fundraising events. After college, Scronic got into association planning and has been planning educational programs for the past five years. MPI background: “I first got involved with MPI by going to a few monthly programs and was soon asked if I would chair the annual EduCon.” Trend to watch: ““I think that the biggest issue to impact the industry in 2016 will be the continued racial unrest throughout the country. Planners never want to put their attendees in a situation that could be potentially dangerous to anyone, making canceling or moving large conventions at the last minute necessary, but extremely difficult for both the planner and attendee.”

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AzMPI applications,” said Michelle Fulcher, CMP, manager at Discovery Treks who also teaches at ASU. “Such training better ensures a less experienced meeting professional can communicate and understand client and attendee needs.” Fulcher said practical experience through internships and industry jobs while in school is also necessary to gain confidence, teamwork skills and understand how the industry's individuals work in tandem. A quick glance at NAU’s core curriculum — featuring classes in convention sales, hotel operations, restaurant and kitchen management, accounting, facilities management, sustainability, information technology, law, group sales and revenue management — shows how well-rounded the education is for professionals coming out of Arizona’s universities. “Our curriculum is constantly evolving,” Vallen said. “The core and elective classes are mostly new for this decade. We were not offering these classes in meetings, events and catering 10 years ago.”

Raising the profile

Experts said a lot has changed in the meeting management industry that makes the profession a more compelling field of study for students. “In the past, the U.S. Department of Labor classified meeting professionals as a subgroup of hospitality and tourism with lodging managers and restaurateurs,” said Christina Tzavellas,

CMP, who works with partnership development and sales for the International Association of Exhibitions and Events. “For the first time, the meeting and event professionals are being recognized by the Department of Labor as a standalone sector. Their decision was based upon review of the Meeting and Business Event Competency Standards, the CMP (Certified Meeting Professional) Standards, and the CEM (Certified in Exhibition Management) blueprint to document the body of knowledge required by event professionals.” Add the higher profile for professionals in the industry with

AzMPI member spotlight Kate Snapp Sales executive, business development Marriott International Professional background: Snapp is a hospitality veteran with more than 30 years of experience. In her current position, her responsibilities are total account management and business development. The key to her success is based upon building and maintaining strong and key relationships. She is a member of the Marriott International Business Council, advisory board member and past president for HSMAI, committee member for MPI, fundraising and events director for the Oro Valley Dolphins Football and Cheer Organization and school board member for Casas Christian School. MPI background: “Years ago, one of my top clients in Colorado brought me to a chapter meeting as their guest. I was completely hooked. When I moved to Arizona, it was the first organization I joined.” Trend to watch: “The main focus that I see impacting our industry is the Millennial generation. They are completely changing the landscape in how to travel, how to meet and what experience/ outcome they are looking for. It has been fun and exciting to be a part of the immense change. From Uber to nontraditional meeting set-ups, it’s truly affecting every interaction from start to finish. We are not a commodity, so we have to completely change the way we sell and deliver our products.

AB | September - October 2015

Phoenix Art Museum

Art Museum economy each year. The Phoenix Convention Center contributes demand for new talent and you have a very attractivePhoenix profession. nearly $1 million in estimated spending each day.” Between 2010 and 2020, the U.S. Bureau of Labor Statistics While meetings and events are seeing a resurgence after the estimates a 44 percent job growth in the meetings, conventions recession, the industry has become far more competitive. and events industry, which makes it an even more attractive “There’s a huge market potential to any organization involved career option. in group business,” Vallen said. “As such, they’re all involved. For “Despite online communication, there is a globalized increase example, even the lowest-priced lodging operations compete for of companies recognizing the importance of meetings and events small group business. Today’s executives need to understand the in forging business relationships with the power of face-to-face economics of group business and be able to quote events which dialogue and a handshake,” Tzavellas said. “Meetings are critical to financial systems, delivering more than $5 billion into the U.S. are both attractive (competitively priced) and profitable.”

AzMPI member spotlight Shelley Sullivan Meetings coordinator US Foods Professional background: After working for more than 20 years as an administrative professional and 11 years with US Foods, Sullivan joined the travel and meetings department as its meetings coordinator in March 2014. MPI background: “I became a member at the suggestion of my mentor and manager, LoriAnn Harnish, a past AzMPI president and current member, who saw that I wanted to pursue a career in the meetings industry. I attended my first AzMPI meeting in May 2014, became a member in July, signed on as event chair in September, received Member of the Month in October, was selected as director of IT 2015-16 in April and was awarded the Rising Star award at the AzMPI Gala in June.” Trend to watch: “I believe the biggest impact to the meetings industry will continue to come from new and improved technology. In the past year, I have been to meetings with drones flying around the room, have seen social media messages from Facebook and Twitter displayed on the meeting room walls and used mobile apps to look at meeting agendas, location maps and speaker bios. Not only have I been amazed at what I’ve seen, but I am excited to see what the future will hold.”

AB | September-October 2015

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AzMPI

Between 2010 and 2020, the U.S. Bureau of Labor Statistics estimates a 44 percent job growth in the meetings, conventions and events industry, which makes it an even more attractive career option. Changing space To prepare students for a changing marketplace, Tzavellas said colleges and universities will be challenged to create multi-level meeting professionalism programs, including undergraduate degrees in meeting professionalism and graduate degrees with industry specialties, such as hotel management, public relations, communications, marketing or business. Tzavellas said some school systems have even introduced meeting professionalism at the high school level. Vallen said he expect to see technology transform meeting management education in the next decade. “While we have yet to see the explosion of online meetings, it is only a matter of time,” Vallen said. “While nothing will ever replace face-to-face events, the costs of attending keep rising. Online meetings will continue to slice a bigger portion of the pie.” Vallen also talks to students about the potential impact of

proprietary conferences and events. “If I were a new graduate, I’d risk it all and develop a new conference — think National Association of Home Builders or Consumer Electronics Show, privately owned conventions which have made their owners literally billions of dollars.” Whatever the future of the industry may bring, leaders of AzMPI said nurturing relationships with colleges and universities positions the industry to have an even greater economic impact in Arizona. “That is our next generation coming,” said Penny Allphin, current president of AzMPI. “Grand Canyon University is now opening a hospitality course. ASU, Scottsdale Community College and NAU all have great programs that are boosting our industry. There are more people in the hospitality industry than ever. It runs America. When we meet, we change the world. Education is knowledge. When you can become better and more proficient in your profession, it makes you better. And it’s making our industry stronger.”

AzMPI member spotlight Patricia Zollman, CMP, CMM, HMCC Senior director, global accounts HelmsBriscoe Professional background: Zollman has worked with HelmsBriscoe for 18 years. She has been an MPI member since 1997, including serving on the board of the MPI Northern California Chapter, as a speaker with the Certified Meeting Professional (CMP) program and as founder of CMP U for the Arizona chapter. Zollman received the Edward E. Scannell award from MPI in 2014-2015. MPI background: “When I joined HelmsBriscoe, I was asked by the incoming MPI board president if I would chair a committee. I gladly accepted and have been involved ever since.” Trend to watch: “My clients are doing more with the same budget as previous years, but with more attendees. Securing a fair deal and negotiating concessions can be difficult in this seller’s market. Keeping up with industry trends is critical for program success and third parties will have to get creative to find solutions for their clients.”

AB | September - October 2015

AB | September-October 2015

AzMPI

Trading spaces Trading spaces With new and revamped venues opening up, planners outline the qualities they seek in a meeting location By LAUREN HOLLY If it ain’t broke, don’t fix it. It can always be a little unsettling to try something new. This is true in the world of meetings and events, as well. Many companies have been doing their meetings at the same places with the same routines for years. Familiarity can be very comforting, especially in business. “It’s the variable of the unknown,” said Heather Cleveland, CMP, senior manager of meetings and events for CSP Business Media, LLC. “It’s very difficult to trust someone else to fulfill the needs of our clients. When working with a new place, I need to be 98

AB | September - October 2015

ensured they will deliver the needs of the program.” However, with so many new, redesigned and unique venue locations popping in the Valley, many companies and meeting planners are finding it’s time to take a closer look at the pros and cons of holding a corporate meeting at one of these new properties. “The drawbacks of a new hotel or venue could be that the team is still working out the kinks and getting to know the property themselves,” said Lynda Hislop, president of Event Experiences. But being the new kid on the block also means making a new set of rules, which can sometimes boost the bottom line when

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Heather Cleveland

Joann Dirtadian

Devin Hernandez

Lynda Hislop

trying to organize an event on a budget. “For me, when I’m looking for a location, I don’t like to see a space rental fee,” said Devin Hernandez, CMP, meeting and event manager for imortgage. “When you’re bringing in a meeting, you have so much food and beverage (cost). So complimentary space is definitely one of the things I look for.” Hernandez also considers setup, audio AB | September-October 2015

AzMPI visual capabilities and the packages that are already built for corporate events. “I look at whatever can make it as simple and easy as possible to help the meeting go smoothly,” she said. Aside from critical elements like food, location and setup, Cleveland said she considers one particularly critical and relevant question when deciding whether to organize a meeting or event at a new venue: “Do they possess the drive for perfection that’s necessary?” Experts agree that holding a corporate meeting at a new location can bring excitement and uncertainty. This can put pressure on both the planner and the rookie venue. Joann Dirtadian, CMP, manager of conventions for Bard Peripheral Vascular, said that it can be, “exciting, challenging and risky – a challenge for the hotel to meet all expectations of the meeting if they do not have experience yet.” Dirtadian explained that a benefit could be a new, eager hotel wanting to ensure that the company’s meeting exceeds its expectations. “Some benefits of planning a meeting at a different place is that it’s new and exciting for the attendees to experience,” Cleveland explained. “It’s easier to deal with an all-inclusive event venue than one you need to piecemeal out all items since you deal with fewer people to achieve the same result. Thus, there is hopefully less room for error or delivery issues.” Corporate meeting planners in Arizona are also faced with myriad of interior and exterior décor options. With Arizona having so many unique styles, experts say it’s sometime important for a new venue or meeting location to have an Arizona look and feel. “I believe that when attendees or guests visit an Arizona hotel, part of the benefit is experiencing some of the Arizona culture and what makes this area unique,” Hislop said. But Cleveland said it’s not important. “I know many people who do not like the Southwestern style,” Cleveland said. “However, it is great when a property can incorporate elements of the desert without losing a luxury feel.” Cleveland said the best examples of locations that effectively combines those elements are the Camelback Inn, Westin Kierland Resort & Spa, JW Marriott Phoenix Desert Ridge Resort

“I think it’s nice to bring a little bit of our character in there, but I also think Arizona has grown up really well and is moving away from the ‘Wild West’ theme”

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& Spa and Sheraton Wild Horse Pass Resort & Spa.” Hernandez, on the other hand, can see both sides. “I think it’s nice to bring a little bit of our character in there, but I also think Arizona has grown up really well and is moving away from the Wild West theme,” said Hernandez. “The Four Seasons at Troon does one of the best jobs doing that – bringing in a little bit of the local, but not being cheesy or over-the-top.” To make sure all the hard work has paid off and the venue is effective, meeting and events experts agree that surveys are essential for evaluation. “This is imperative to me for learning what worked and what did not,” Cleveland said. “When an event is a success, you need to work on making it a success the following year. Every bit of feedback is helpful in that effort.” “Surveys usually tell you what you already know,” said Hernandez. “They validate what you can already feel. But it’s more or less useful for me a year from now. I can go back, review it and remember everything that happened.” In order to be considered one of the best locations for a corporate meeting, new or old, experts said service and communication were easily the two most important qualities. “Service level is huge to me,” said Hernandez. “I usually work with a lot of upper-tier resort properties because they have the best service levels and they continue to offer what the mission is at our company. So, the Ritz Carlton, the Fairmonts, the JW’s, the Montelucia – those service levels.” Hernandez continued, “And the communication … I can’t tell you how many properties we have a bid out for and then we don’t hear from them for days or weeks, or they don’t come back with the correct information. They don’t provide the space layouts, things like that.” Cleveland said she considers enthusiasm to be a critical quality for potential venues. “It’s important they want to work on your event (or make you feel that way), to help make it a success,” explained Cleveland. “My clients don’t like to hear ‘no’ without an alternative, and neither do I. If you cannot accommodate a request, give me an alternative that you can do for me. Being creative and flexible is the best thing you can do for a planner.”

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AzMPI

Hot spots

Studios 5c

It’s always nice to have a professional opinion. Arizona offers a variety of options for corporate meetings, conferences or off-sites events and activities and who knows these locations better that meeting and event planners? Here are some of the most interesting and unique locations in Arizona that members of the Arizona Sunbelt Chapter of Meeting Professionals International say are great spots for a meeting or event:

asino del Sol: In addition to its 18,000-square-foot ballroom that divides into five smaller rooms, Casino Del Sol Resort offers its corporate visitors gaming, a Ty Butler- and Notah Begay-designed golf course, hiking trails, mountain bike trails and horseback riding. Information: casinodelsolresort.com Chase Field: “We had a meeting for 100 people and made it an all-day event,” said Devin Hernandez, CMP, meeting and event manager for imortgage. “We did a tour of the field, went down in the locker rooms and then ended with a suite.” Information: azchasefield.com Chateau Luxe: This is a new luxurious indoor and outdoor event venue with breathtaking outdoor space, ballrooms with

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windows and views to avoid the dark and dull walls of a hotel. Information: chateauluxeaz.com Desert Botanical Garden: “Unique because they are truly one-of-a-kind,” said Heather Cleveland, CMP, senior manager of meetings and events for CSP Business Media, LLC. “You cannot duplicate them anywhere.” Information: dbg.org Hyatt Regency Scottsdale Resort and Spa at Gainey Ranch: Joann Dirtadian, CMP, manager of conventions for Bard Peripheral Vascular, said, “This is the best hotel and staff I have dealt with in the Valley.” This location features 70,000 square feet of indoor ballrooms and beautifully landscaped outdoor space.

Information: scottsdale.hyatt.com JW Marriott Scottsdale Camelback Inn: Rated one of the best luxurious locations in Scottsdale, Camelback Inn offers an extensive 125 acres of breathtaking campus landscape and Arizona mountain views. “Great location, great staff and great food,” Dirtadian said. Information: camelbackinn.com Mesa Arts Center: MAC's wide range of facilities across three campuses in the heart of Downtown Mesa offers multiple options for every vision and budget. Information: mesaartscenter.com Omni Scottsdale Resort at Montelucia: It offers luxury accommodations, beautiful European décor with more than 27,000 square feet of indoor meeting areas and

14 breakout rooms. Recommended by Hernandez for its unique character and outstanding service levels. Information: omnihotels.com/hotels/ scottsdale-montelucia Phoenix Art Museum: This location is one of the largest art museums in the Southwest, with gorgeous landscapes and artwork from all over the world. It’s perfect for business luncheons and corporate meetings if you’re looking to enjoy something educational and aesthetically pleasing. Information: phxart.org

Studios 5c: Winner of numerous architectural awards, this venue is located in the Mill Avenue District of downtown Tempe. Rooftop patio of more than 2,000 square feet with views of Sun Devil Stadium and mountains. Room for up to 75-100 guests. Information: studios5c.com The Westin Kierland Resort & Spa: Dirtadian said this location offers expert catering and perfectly prepared menus and includes on-site staff and tech support. “Great location and great options available,” Dirtadian said.

Information: kierlandresort.com University of Phoenix Stadium: The stadium's stunning views, state-of-theart amenities and climate-controlled comfort create an ideal meeting space for events of any size. Information: universityofphoenixstadium.com Venue 8600: Seven flexible meeting rooms to host classes, luncheons, banquets and receptions. Ceilingmounted projectors and projection screens in every room. Handheld and lavalier wireless microphones. Information: venue8600.com WestWorld of Scottsdale: “We had a huge group of about 3,000 people,” said Hernandez. “That’s one of my new favorite places to do an event of that size because it’s a blank canvas ... It gives us some free reigns to use what we want to use and partner with some different partners that we wouldn’t be able to within a hotel.” Information: westworldaz.com Wrigley Mansion: This location offers spectacular 360-degree views of the city and mountains. It can hold up to 300 people for sit-down meetings and up to 1,500 people for larger events. Site includes 10 beautiful rooms, as well as outdoor venues of different sizes. Information: wrigleymansion.com

Wrigley Mansion

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