AZBusiness November/December 2020 by AZ Big Media

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NOVEMBER // DECEMBER 2020

Meet the philanthropic finalists for the 2020 Az Business Angels Awards

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GIVING BACK BUSINESS LEADERS TO WATCH

Az BUSINESS ANGELS

ARIZONA BANKERS ASSOCIATION

SRP

113

SITTING, FROM LEFT: Freddie Dobbins, Jr., SRP; and Nancy Padberg, Catholic Education Arizona. STANDING, FROM LEFT: Jeff Meshey, Desert Financial Credit Union; Pam Kehaly, Blue Cross Blue Shield of Arizona; Humphrey Shin, FirstBank; and Nathan Lowrie, Valleywise Health Foundation.

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Table of Contents 6

Trendsetters

Leadership Profile

Cure Corridor

Technology

Law

Arizona Forward

The certain uncertainty of the holidays

Financial Executives 38 International 42

Small Business

Marketing

Dining

48 Business Leaders to Watch in 2021 76 Az Business Angels 97 Arizona Banker’s Association 113 SRP Awards

On the cover: SITTING, FROM LEFT: Freddie Dobbins, Jr., SRP; and Nancy Padberg, Catholic Education Arizona. STANDING, FROM LEFT: Jeff Meshey, Desert Financial Credit Union; Pam Kehaly, Blue Cross Blue Shield of Arizona; Humphrey Shin, FirstBank; and Nathan Lowrie, Valleywise Health Foundation. 2

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This has certainly been one of the most strange years we will ever have to live through — fingers crossed or knock on wood. And never before have we needed the support of others more. Yet, because of quarantines and stay-at-home orders, never have we had such little access to each other. But the one business sector that always serves as a stabilizing force in an unstable world is the nonprofit sector. Throughout the pandemic, Arizona nonprofits were there when we needed them the most. They offered food when the cupboards were bare. They closed the digital divide by providing computers to students who were forced to learn at a home that lacked technology. And they were there to comfort our seniors when their routines were derailed. And helping nonprofits keep the lights on and keep the giving trains running are the Arizona businesses that factor social responsibility into their bottom lines because they know it’s the right thing to do. The Az Business Angels Awards were created to cast the spotlight on those nonprofits, individuals, business leaders, and organizations that are making the biggest impact on our communities — especially when their impact is needed the most. You’ll meet the finalists for the Az Business Angels Awards inside this issue of Az Business magazine. We encourage you to learn more about their missions and motivations, and challenge yourself to give back, connect, or volunteer in a way that helps you or helps the community in which you live. As we enter the holiday season with the only certainty being that there will undoubtedly be more uncertainty ahead, we want to thank you for being loyal readers of all of AZ Big Media’s publications and news website. We look forward to returning to normal in 2021, seeing you at events once again, and we wish you great success in the year to come. Happy holidays.

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

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SHOUT-OUTS HERE ARE SOME ARIZONA COMPANIES THAT HAVE STEPPED UP TO HELP COX: Cox Charities awarded 111 Arizona nonprofit organizations with nearly $560,000 in grant funding. Since the program’s inception in 1996, Cox Charities has awarded approximately $8.5 million to local Arizona nonprofits that support youth and education. HARRAH’S AK-CHIN CASINO: Harrah’s Ak-Chin Casino has long made the commitment to support nonprofit organizations throughout Maricopa. Through its community outreach program, H.E.R.O., Harrah’s Ak-Chin recently donated $10,000 to F.O.R. Maricopa. Founded in 2003, F.O.R. Maricopa is a private 501c3 organization that provides food, opportunity and resources to the Maricopa community. HOMIE: At the beginning of April, Homie Arizona launched the Homie Helps initiative and committed to contributing up to $100,000 to the Valley of the Sun United Way COVID-19 Response Fund. This fund was established to assist those impacted by COVID-19. Homie contributions went to help Arizonans stay in their homes through rent and mortgage assistance, for those struggling to make ends meet.

President and CEO: Michael Atkinson Publisher: Amy Lindsey Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editors: Steve Burks | Alyssa Tufts Interns: Christa Freer | Troy Hill | Sara Walker Contributing writers: Alison Bailin Batz | Kirsten Haberer Jody Sarchett | Rob Schwister | Erin Thorburn | Steven G. Zylstra ART Design director: Bruce Andersen Art director: Mike Mertes MARKETING/EVENTS Marketing designer: Heather Barnhill OFFICE Special projects manager: Sara Fregapane

RESOLUTION COPPER: In August, Resolution Copper announced a commitment to donate $780,000 in 2020 to assist organizations throughout the broader community during the ongoing COVID-19 crisis.

Administrative assistant: Brandi Collins

SPROUTS: The Sprouts Healthy Communities Foundation, which focuses on nutrition education and fresh food access, announced $1.6 million in donations to nonprofit partners addressing local issues amplified by the pandemic.

AZ BUSINESS MAGAZINE

SUNDT: During its third-quarter disbursement, the Sundt Foundation awarded more than $75,000 in grants to 25 Phoenix-area nonprofits.

AZ BUSINESS ANGELS

TRUWEST CREDIT UNION: TruWest Credit Union donated $30,600 to the Mesa Community College First Year Experience program for the second year in a row, providing scholarships and support for firstgeneration college students and students needing support in foundational courses such as English, math or reading. The credit union helped to impact the education of 85 students this past academic year, as the program has seen 300 percent growth since its first year of activation.

AZ BUSINESS LEADERS

Database solutions manager: Amanda Bruno

Senior account managers: David Harken, April Rice Account manager: Sharon Swanson

Director of sales: Sheri Brown AZRE | ARIZONA COMMERCIAL REAL ESTATE Director of sales: Ann McSherry EXPERIENCE ARIZONA | PLAY BALL Director of sales: Laura Schwartz RANKING ARIZONA Director of sales: Sheri King Az Business magazine is published bi-monthly by AZ BIG Media, 3101 N. Central Ave. Suite 1070, Phoenix, Arizona 85012, (602) 277-6045. The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $4.95. Bulk rates available. Copyright 2020 by AZ BIG Media. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from AZ BIG Media.

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TRENDSETTERS

The cure for

medical bill madness? Phoenix-based entrepreneur creates all-in-one healthcare billing app

Pandemic shift

Scottsdale tops all U.S. cities with more people moving in during COVID-19 HireAHelper, the online marketplace for finding, comparing and booking moving transportation and services, released results from a new study examining U.S. moving trends and Scottsdale won the popularity contest. Fifteen percent of all moves since January 2020 were forced by the pandemic • San Francisco and New York had 80 percent more people leave than move in. • Scottsdale was the top city by net moves, with 68 percent more people moving in versus out.

In 2016, Rachel Mertensmeyer suffered an injury that left her with 38 medical bills across 11 different healthcare provider systems and more than $10,000 in out-ofpocket costs. “I had to try to understand the confusing bills and felt the pain of trying to navigate and understanding what I owed and when I owed it and an explanation of benefits versus a bill,” Rachel she says. Mertensmeyer The frustration of paying multiple bills across multiple payment portals and not having a convenient way to track it all led Mertensmeyer to create RexPay, an app where patients can organize and pay all their medical bills in one place. Mertensmeyer says users have raved about the app’s ease of use and from a healthcare provider’s standpoint, “We have customers that describe us as a no-brainer.”

HOT

5 Valley communities among 25 best real-estate markets in the U.S. To determine the best local real-estate markets in the U.S., WalletHub compared 300 cities of varying sizes across 24 key indicators of housing-market attractiveness and economic strength, from home-price appreciation to home sales turnover rate to job growth. Five Valley cities made the Top 25.

1 Boise, ID

13 Tacoma, WA

2 Seattle, WA

14 Allen, TX

3 Frisco, TX

15 Cary, NC

4 Nashville, TN

16 McKinney, TX

5 GILBERT, AZ

17 PEORIA, AZ

6 Murfreesboro, TN

18 Vancouver, WA

7 Austin, TX

19 Kent, WA

8 Spokane Valley, WA

20 SURPRISE, AZ

9 Denton, TX

21 Colorado Springs, CO

10 Renton, WA

22 Bellevue, WA

11 Durham, NC

23 TEMPE, AZ

12 Federal Way, WA

24 CHANDLER, AZ 25 Denver, CO

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TRENDSETTERS

More women get on board(s)

Champions of

diversity Arizona business leaders honored for positive impact on community

The Arizona Hispanic Chamber of Commerce honored four individuals and one company for their long service and contributions to Arizona and the Latino community at the chamber’s 62nd Business Awards. Cox Communications was the prime sponsor and presenter.

THE 2020 WINNERS ARE

2020 Women on Boards (2020WOB), the national campaign to advance women to corporate boards of directors, says that for the first time in history, women hold 22.6 percent of the board seats among the nation’s largest publicly-traded companies in the Russell 3000 Index, a 2.2 percentage increase from 20.4 percent in 2019, and a 6.5 percentage increase over four years. Other key findings include: • Women hold only 6,034 board seats of 26,711 of the 2,982 companies on the 2020 Russell 3000 list. • One-third of the Russell 3000 still have only one or no women on their boards. Of those, approximately 5 percent of the R3000 have none, and 30 percent have just one. • 60 percent of the 902 female board seats gained this year were achieved by adding board seats, not by replacing male directors.

SLICE OF LIFE 2 Phoenix pizza parlors rank among the best in the nation

According to The Daily Meal’s 2020 list of “The 101 Best Pizzas in America,” Downtown Phoenix has two of the Top 25 pizza restaurants in the nation. David Adame

Omar Alvarez

MAN OF THE YEAR AWARD: David Adame, president and CEO of Chicanos Por La Causa (CPLC), has helped build the nonprofit into one of the largest Hispanic community development corporations in the U.S. WOMAN OF THE YEAR: Maria Lacal is the first female chief nuclear officer at Arizona Public Service’s Palo Verde Generating Station, one of the world’s largest producers of carbon-free energy.

Sharon Harper

Maria Lacal

ENTREPRENEUR OF THE YEAR: Omar Alvarez operates popular and growing culinary concepts in the Phoenix metro area: Tortas Paquime, Paquime Street Food of Mexico and Pa’La Wood Fired Cooking. LEGACY AWARD: Sharon Harper is the longtime chairman, CEO and co-founder of Plaza Companies, overseeing all facets of operations.

CORPORATION OF THE YEAR AWARD: The American Automobile Association in the Grand Canyon region was recognized for its community involvement under Regional Vice President Tiger Lapira. 8

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Downtown Phoenix favorite Cibo Urban Pizzeria is ranked No. 23. And foodies have been fans of the other pizzeria on the list for decades. Critically acclaimed Pizzeria Bianco was ranked at No. 14.

Mangia!

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TRENDSETTERS

10 EPIC

ACHIEVEMENTS

Some of Arizona’s best and brightest business leaders have had epic moments — or overcome epic obstacles — on their way to success. SUSAN M. FREEMAN, partner, Lewis Roca Rothgerber Christie “I’m a certified yoga teacher, leading free classes at my firm, and a hiker who has summited Mt. Kilimanjaro.” MATTHEW FEENEY, chairman, Snell & Wilmer “I earned my room and board at Notre Dame Law School by living in the Notre Dame Firehouse as a student firefighter.”

ANGELA K. HALLIER, partner, Hallier Lawrence “I was a 19-year-old bride with an emotionally and physically abusive husband, and a mother at 21 with no college degree. You would not believe I was a victim of domestic violence now because I take no prisoners.”

ALISA J. GRAY, shareholder, Tiffany & Bosco When I was 14, in the summertime, I worked on a tobacco farm in North Carolina. I drove a tractor between the rows and helped at the barn. I was paid $13 per day, plus anything I wanted at the Tastee Freez.” HILARY L. BARNES, member, Allen Barnes & Jones “I am a first generation member of a University of Chicago improvisational comedy troupe, Off Off Campus, which was started in 1986 by the co-founder of Second City. Improv taught me how to think quickly on my feet.”

THOMAS J. SALERNO, managing partner, Gordon Silver “I’m an avid WW II history buff. At the age of 50, my son and I went to jump school at the Airborne Demonstration Team facility (a 1940s hangar) in Oklahoma. After 10 days of intensive training, we completed our solo jumps from a C-47, in WW II-style gear (think ‘Band Of Brothers’).”

DAVE RALSTON, Arizona Market CEO, BOK Financial

“In one round of golf I had two holes-in-one, and one was on a Par 4.”

CHUCK MCLANE,senior managing director, CBIZ & Mayer Hoffman McCann “I am a huge baseball fan. I have been to a game at all 30 Major League parks twice … It was a great way to see cities across the U.S.”

ANDREW ABRAHAM, president and shareholder, Burch & Cracchiolo “I hitchhiked from the Grand Canyon to Phoenix when I was 10 years old, under the ‘supervision’ of my brother, who was 15 at the time.”

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Phoenix

CHARLES TOUCHÉ, CEO, Lovitt & Touché, A Marsh & McLennan Agency LLC

“Over 200 years, the Touché family story includes extraordinary encounters with some of modern history’s most notorious figures, including Pancho Villa and Juan Perón.”

Start your day with AZ Big Media! BIG News is your daily source for business, real estate, home and travel. Let us know your interests, and weâ&#x20AC;&#x2122;ll deliver the latest news directly to your inbox. Subscribe today and stay in the know!

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LEADERSHIP PROFILE

STRENGTH IN NUMBERS Here’s why BMO’s Miller may be the state’s strongest leader By MICHAEL GOSSIE

hen you talk numbers with Jason Miller, you hear figures that you’re not likely to hear from anyone else in the banking industry. “I love powerlifting and can still bench press 400 pounds despite getting a little older,” says Miller, the managing director of BMO Wealth Management. “My bucket list includes participating in a powerlifting competition.” Az Business talked with the man who is unquestionably one of the strongest leaders in Arizona’s banking industry.

Az Business: What was your first job? Jason Miller: In college, I not only took a full course load, but I also worked 20 hours a week as a bank teller on one side of town and interned 20 hours a week at a brokerage firm on the other side. Between classes and my two jobs, my days typically started at 6:30 a.m. and ended at 10:30 p.m. I also spent about 12 hours every Saturday on schoolwork and studying. Living such a jam-packed lifestyle taught me that with the right amount of discipline, time management and prioritization, you can accomplish quite a lot in a day. I’ve always valued hard work, but that experience gave me an early lesson that success doesn’t come easily and requires sacrifice. AB: What attracted you to the financial services industry? JM: I was drawn to the opportunity to help people. I was raised largely by a single mother and my family struggled financially. Early in my life, I gained a passion for the importance of proper financial management; the opportunity to help others in this way continues to motivate me today. AB: What is your greatest strength as a leader? JM: I hope my colleagues would say my greatest strength as a leader is empathy. I value the ability to listen to others and understand diverse perspectives to better inform my decisionmaking. I am continually learning from those around me and regularly humbled by the experiences of others. AB: What is your greatest professional accomplishment? JM: I hope I’ve yet to have my greatest professional accomplishment. But to date, I am most proud of the national wealth planning team I helped build here at BMO. They are savvy, smart and talented professionals who seek to understand our clients’ complex needs and serve them with heart. AB: What is your outlook for 2021? JM: Although crystal ball predictions are impossible to make, I remain optimistic overall despite the unprecedented challenges we’ve faced this past year. Regarding the markets and economy, I tend to take a longer-term, goals-based approach, which helps ground me and give me confidence in my plans. It’s easy to get caught up in a mindset that says we will never see the end of this pandemic or that life will never return to some kind of previous normal, but history tells us that’s not true. We’ve already seen the markets recover from the spring lows. With our clients, we strive to help them take this same approach and perspective, reminding them to view their investment plans through the lens of their long-term, personal goals.

RISING UP: Over the last 10 years at BMO, Jason Miller rose

through the ranks from a financial planner to become managing director of BMO Wealth Management. (Photo by Mike Mertes, AZ Big Media)

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EAST VALLEY CURE CORRIDOR UPDATE

PATHWAY TO HOPE

7 years after its conception, Scottsdale’s Cure Corridor continues to cultivate innovation, economic impact and attract companies on the forefront of new health and biosciences discoveries By ERIN THORBURN

even years ago, Scottsdale Mayor Jim Lane joined leaders from HonorHealth (formerly Scottsdale Healthcare), Mayo of Arizona (then Mayo Clinic of Scottsdale), the Translational Genomics Research Institute (TGen) and TD2 (Translational Drug Development) for an in-depth conversation focused on the future of Scottsdale’s healthcare and bioscience and life science industries. At the time, according to Lane, the focus of collaboration centered on the advancements in genetic testing and treatment and translational drug therapies to mend flaws or failures in human genetic codes. The outcome of this discussion was working collaboratively in an effort toward “curing” the unhealthy condition versus treating the resulting tissue or organ damage. “We thought that the ‘Cure Corridor’ would be an apt name for such a concept,” Lane remembers.

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Now, nearly a decade later, the Cure Corridor – which runs loosely east to west along Scottsdale’s Shea Boulevard and north to south along Scottsdale Road from the Scottsdale Airpark to SkySong, the ASU Scottsdale Innovation Center ‑‑ has experienced abundant growth and has become a game-changer in the evolving healthcare industry. And, all indications point to more to come. Volcanic expansion The expansion of healthcare science and bioscience in Scottsdale is analogous to the DIY volcanos reminiscent of many childhoods. You make a strong base, fill it with baking soda, pour the vinegar — and boom! Prior to the Cure Corridor, Scottsdale already had a firm healthcare infrastructure and talent. All it needed was more (and varied) opportunities and innovators. ”Though Scottsdale started with a good base of healthcare, bioscience and bio-technical industries, there was a mutual interest in growing this valuable element of opportunities for our business and residential communities,” Lane says. “The effort was – and is – to bring the bioscience industry and their businesses together on compatible issues in open and collaborative forums.” Lane’s efforts, combined with the hard work and effort from healthcare and bioscience industry leaders, has helped yield 33,000 jobs with an average salary upwards of $68,000 in Scottsdale’s healthcare sector. There are currently more than 16,000 employees in Scottsdale working on innovations in healthcare and biosciences. HonorHealth, Mayo Clinic and CVS Health stand as three of the five largest healthcare employers in Scottsdale. Collectively, these nationally-recognized brands, alongside the Corridor’s additional residents, fuel a steady and robust local economy. And taking a page from “the best is yet to come,” a recent study cited that of all regional healthcare venture capital deals, one-third were with Scottsdale-based companies. While Lane stresses that Scottsdale already had a strong healthcare and bioscience presence, the alignment of leadership to expand the healthcare and life sciences industry sector played a key role in the meteoric growth and impact of the Cure Corridor. “The City of Scottsdale has long been recognized as a top vacation destination,” says Cristal Rodriguez, marketing manager of economic development for the City of Scottsdale. “But, the innovative accomplishments in the Cure Corridor have put Scottsdale on the map when it comes to the healthcare and bioscience industries. We are gracefully pivoting from the ‘Old West’s Most Western Town,’ to what is now being referred to as the epicenter of innovation.” Epicenter of innovation It’s this ‘epicenter of innovation’ for which Rodriguez says, “prospective healthcare companies want to be a part of. They want to be a part of a great network supported by the Cure Corridor.” That Cure Corridor network of healthcare game-changers includes more than 50 of the most innovative companies in Arizona. Indeed. Companies like Mayo Clinic and HonorHealth, both with pre-existing longevity in Arizona, established advantageous AB | November - December 2020 15

CURE CORRIDOR

Jim Lane

Rob Millar

John Neil, MD

and providential footing as residents of the Corridor. “Mayo Clinic’s commitment to Arizona began nearly 100 years ago when our founders, Dr. Will Mayo and Dr. Charlie Mayo, were frequent visitors to the state,” says Jennifer Ruble, division chair of public affairs, Mayo Clinic in Arizona. “They connected with the healing power of the environment and were inspired by the entrepreneurial spirit of the people of Arizona. The surrounding health sciences community is unusually collaborative when compared with other parts of the country.” Mayo’s local relationships with organizations like Arizona State University, Phoenix Children’s Hospital, HonorHealth and the Arizona Alzheimer’s Consortium, among many others, are what have allowed Mayo to expand its healthcare and research potential, according to Ruble. Similarly, HonorHealth’s roots extend as far back as 1927, when it was named “Desert Mission.” “HonorHealth has a strong presence in Scottsdale, as home to three of our medical centers — our HonorHealth Research Institute, the future home of the HonorHealth Neuroscience Institute and the many HonorHealth Medical Group Primary Care and Specialty Care locations,” says John Neil, MD, executive vice president and chief physician executive and network strategy officer for HonorHealth. The HonorHealth Neuroscience Institute, located on the Scottsdale Osborn Medical Center campus, will be a state-of-theart center offering comprehensive multidisciplinary neurological and spinal care. It is slated to open in the spring of 2021. This innovation hub will comprise a five-floor building with nearly 120,000 square feet of space. “The Institute will house a variety of specialties dedicated to providing coordinated neurosurgical and support services, including neurology, neurosurgery, oncology, physical medicine and rehabilitation, speech, occupational and physical therapy, infusion therapy, phlebotomy, imaging and research,” Neil adds. Shockwaves of progress HonorHealth’s Neuroscience Institute is one of many examples that showcase the deluge of diversity and progress taking place along the Cure Corridor. • Corridor resident Systems Imagination conducted the first genome-wide screen designed to identify new potential cancer gene targets utilizing artificial intelligence and state-of-the-art GPU (graphics processing unit) computation. • Vitalant, one of the largest nonprofit transfusion medicine organizations, recently demonstrated advancements in health 16

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Cristal Rodriguez Jennifer Ruble

sciences by inviting patients recovered from COVID-19 to donate plasma to help patients diagnosed with coronavirus (to help in their fight). • In 2018, Mayo Clinic announced a $648 million expansion that will add 1.4 million square feet of building space (to the existing 1.7 million) and create close to 2,000 new jobs, including nearly 200 physicians. • AdviNOW Medical developed its virtual provider assistant, Hannah, which completely automates the clinical visit within regulatory guidelines using artificial intelligence (AI) and augmented reality (AR). The AI interacts with patients to collect symptoms, take vitals, and prepare all information in an easy-to-review format for the provider. • Other occupants of the Corridor are part of global solutions as far-reaching as Africa and Eastern Europe. GlobalMed’s remote care and telemedicine services provided relief during Tropical Cyclone Idai in March of 2019. Its pilot program got its start in Zimbabwe. • Rowpar Pharmaceuticals launched its CloSYS oral care brand in Russia, Belarus and Kazakhstan. Aside from the attraction of like-minded goals to move the needle forward in the healthcare and bio-life sciences sector, Scottsdale’s Cure Corridor has the talent to support a continued influx of employment opportunities. Currently, 16,000 employees in Scottsdale are working on innovations in healthcare and biosciences. Keep on growing “On any given day you can go on to our Scottsdale job board, Scottsdale. Jobs and you’ll find numerous healthcare opportunities available from entry to the executive level,” Rodriguez says. “Scottsdale is where the healthcare industry is coming to grow and with that, the talent is following. As Scottsdale Economic Development Director Rob Millar always says, ‘it all comes down to talent, talent, talent,’ and that’s exactly what we’re seeing with these opportunities.” Job seekers in this industry are not only looking for great companies to grow their careers, according to Rodriquez, but they also seek companies that are making a difference in their chosen field. “Healthcare jobs in Scottsdale are growing at a rate twice the national average and three of the city’s top five employers are HonorHealth, CVS Health, and the Mayo Clinic. This industry is a positive economic story for us, and it will be for a long time to come,” Lane says.

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CURE CORRIDOR

A look inside the Cure Corridor

Here is a directory of the groundbreakers and innovators that are part of Scottsdale’s Cure Corridor. By ERIN THORBURN

> Advanced Genomic Solutions (AGS) Advanced Genomic Solutions has partnered with Evexia Diagnostics. This partnership ensures that Evexia clients now have access to all AGS genetic testing services to further personalize patient treatment plans and options using their unique genetic information. This partnership will allow Evexia’s nearly 4,000 practitioners to order genetic testing for health and wellness and pharmacogenomics, along with comprehensive blood panels, salivary hormones, stool testing, food and inflammation testing, cancer screening, heavy metal testing and more.

> 21st Century Oncology > Abbott > Accolade

> Cigna Medical Group Cigna now offers mental health first aid training to their clients, brokers, and communities across the U.S. In this training, which comes from the National Council of Behavioral Health, participants learn how to recognize signs and symptoms of mental illness and substance use, how to have a conversation with those individuals and what resources are available. Cigna has now trained over 500 individuals in mental health first aid. Locally in AZ, they have trained their own employees, clients and broker groups. > AdviNOW Medical > Airware Laboratories > Arizona Oncology > Arizona State University- Dept. of BMI

> Aural Analytics

> Banner Behavioral Health Hospital > bioSyntagma > Brain State Technologies > Cayenne Medical - A Zimmer Biomet Company

> EpiFinder EpiFinder is developing a clinical decision support tool for clinicians, a management tool for patients and analytics tool for researchers. This year alone EpiFinder has won Changemaker’s Entrepreneurial Team of the Year Award, the Spirit of Enterprise Award, the National Startup of the Year Award (in two separate categories) and the World Startup of the Year Award.

Aural Analytics, an industry leading speech neuroscience and speech analytics technology company, announced today it has launched A2E™, a mobile application SDK and Web API designed to make speech collection and cloud-based analytics ubiquitous across clinical research, in any health application, and for in-clinic and remote settings. 18

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> CVS Health > Fry Laboratories > Gemneo > GlobalMed This year GlobalMed established a remote care pilot program in Zimbabwe to enable rural villages to connect with specialists which also, unexpectedly, provided disaster response care during tropical cyclone Idai that hit in March 2019 and left 1,200 dead, with thousands wounded or missing. The telehealth clinic relieved pressure on local hospitals by handling thousands of remote consultations. > Heads Up Health > HonorHealth

> HonorHealth Research Institute HonorHealth is in the process of conducting the world’s first clinical trial Spinal Cord Injury Neuro-modulation therapy trial. Using Battelle’s noninvasive functional electrical stimulation technology, HonorHealth Research Institute will enroll 12 participants for spinal cord injury rehab involving clinician-controlled functional electrical stimulation as opposed to brain-computer interface control. Their goal is to reanimate participants paralyzed dominant forearm with functional electrical stimulation, enabling accurate manipulation of three objects from the grasp and release test.

> Rowpar Pharmaceuticals In 2019, Rowpar Pharmaceuticals, launched distribution of its CloSYS brand of oral care in Russia, Belarus and Kazakhstan. CloSYS is now in 4,000 Russian dental clinics dispensed for superior every day oral care and one Moscow hospital is using CloSYS with cancer patients who develop oral sores from their chemotherapy.

> Systems Oncology > Translational Drug Development (TD2) > IMNA Solutions

IMNA Solutions was recognized for its excellence and achievements as a Tech Startup of the Year by the International Business Awards 2019. More than 4,000 nominations from organizations of all sizes and in virtually every industry were submitted with IMNA winning in the software category.

> Mayo Clinic

Mayo is in the midst of a $648 million expansion that will nearly double the size of its Phoenix campus over five years. The expansion plan increases the number of inpatient beds from 280 to 374 by 2023 and creates close to 2,000 new jobs, including nearly 200 physicians by 2029.

> Mayo Clinic School of Medicine > NeoLight > North Valley Surgery Center

> TouchPoint Solutions

Touchpoint Solutions was named best of CES 2019 in the Health and Wellness category by Digital Trends. Its stress-relieving wearables were also announced as a finalist in the Spring 2019 Arizona Innovation Challenge and was shortlisted for TIME Magazine’s 2019 Best Invention of the Year.

> Orion Health > Orthoscan

> Prismic Pharmaceuticals

The research and development pharmaceutical company owned by FSD Pharma developing novel prescription products for psychiatric and neurodegenerative disorders.

> Innovative Health > Ironwood Cancer & Research Centers > iTel Companies > Magellan Health > Matrix Medical Network > SkySong Innovations > Sonoran Biosciences > Spear Education > STYR Labs > ProMedTek > Remarkable Health > RightBio Metrics > Primus Pharmaceuticals > Vitalant > West Pharmaceuticals > ZocDoc

> Systems Imagination In partnership with Systems Oncology, Systems Imagination conducted the first genome-wide screen to identify new potential cancer gene targets using A.I. and state of the art GPU computation. Systems Imagination was able to find hundreds of targets for new cancer drugs within the experiment. These findings were then presented at the American Society of Clinical Oncology’s annual conference.

> Plasmology4

Plasmology4 has developed a revolutionary platform technology called Plaz4, an advanced and specialized form of “non-thermal” plasma technology. Plaz4 has many potential healthcare applications, including the prevention and treatment of infections and a significant reduction of antibiotic-resistant bacteria (MRSA) in a single topical treatment.

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TECHNOLOGY

HERE’S HOW

ARIZONA LEADS THE WAY IN EDTECH Arizona has quietly built the largest education technology (EdTech) sector in the nation with more than 50 companies selecting our state for their headquarters. Startups and large established EdTech organizations are flocking here in droves, and we’re leading the way for an industry expected to grow to more than $252 billion this year, as reported by Harvard Business Review. Typically, states develop hubs in certain technology sectors based on their collection of resources, expertise and leadership. This is no different for Arizona in regard to its EdTech community. Our state is home to what many would say is the very advent of the EdTech sector: University of Phoenix. In 1976, the Apollo Education Group started the University of Phoenix to provide working adults with the opportunity to pursue postsecondary education at times most convenient for their schedule. The school included on-campus learning, but the real innovation came in 1989 in the form of online classes. The concept of online education was unheard of in the late ‘80s, but obviously, it stuck. Today, nearly every college and university offers classes and even entire degree programs online. And what began as the very first EdTech institution here has led our state to grow a collection of resources and expertise that help new EdTech organizations to thrive. 20

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Steven G. Zylstra Technology

Today, companies such as CampusLogic, Picmonic, Pearson, Parchment and Proctorio are among our top homegrown EdTech companies. Each was founded in Arizona and has grown to become a sector leader across the country. In addition, companies like Zovio, which started in San Diego, have taken notice and moved their headquarters here to take advantage of our knowledge base and resources in EdTech. Our success with these startups has also spurred larger investments in the ecosystem. In fact, in 2018 EdTech organizations here captured $100 million in funding. To further support the growth of EdTech in Arizona, several nonprofit and community-driven organizations have been founded. EdTechAZ was created by Matthew Pittinsky, founder of Parchment, and Gregg Scoresby, founder of CampusLogic, to support technology-driven innovation in all areas of education and enable a connected EdTech ecosystem. Another organization, CommunityShare, is a nonprofit founded in Tucson that works to connect the skills and real-world learning experiences of people in the community to the needs and aspirations of educators and their students. The reason for Arizona’s growth in EdTech is not only due to our early entry in this sector. It’s also driven by the need for alternative platforms for learning. All our state’s for-profit, nonprofit and communitydriven EdTech organizations are capitalizing on the need to support a broader and more diverse audience by harnessing the reach of the internet and technical innovation. They share the goal of supplementing traditional learning through innovative digital programs designed to extend learning or provide an alternative education experience for both adults and children. Across every industry in 2020, organizations have been forced to transform their digital tools and platforms to serve customers, partners and their communities in new ways. However, education has been hit particularly hard. Never in our history have we witnessed the need for digital learning on the scale caused by the pandemic. Fortunately, our state’s leadership in EdTech has kept our education system resilient during these unprecedented times. Not only have our resources and expertise been used to train teachers and parents on using digital platforms for learning, but we’ve also come together as a

community to support online education. For instance, cybersecurity firm Acronis, and Ken Colburn, founder and CEO of Data Doctors, were even tasked with developing a “Cyber 101” guide to help educators retain a secure online learning environment. One of the largest initiatives that the Arizona Technology Council and our community partners in technology, education and business have been working on since well before the pandemic is the expansion of broadband access. Our goal is to enable broadband availability for rural and low-socioeconomic urban K-12 schools and libraries, as well as higher education. We feel technology is critical to drive online education applications and collaborative activities that improve learning delivery, and development of workforce skills and pathways. The pandemic has shined a bright light on this initiative due to the challenges we’ve seen in rural and low-socioeconomic urban areas within our communities. Children with limited access to the internet will fall behind if we don’t make broadband for all a priority. Another initiative focused on ensuring every child has access to online learning is providing laptops. It was estimated that Arizona students need more than 100,000 laptops to facilitate online learning. The Council, the SciTech Institute, AZ StRUT, ElevateEdAZ and many of the leading technology organizations throughout Arizona have collectively donated more than 1,000 laptops to students in underprivileged areas. 100 of those laptops were donated through the SciTech Institute by one of the nation’s leading storage and information management services company here in Arizona, Iron Mountain. Even before we were faced with a lifechanging pandemic, digital transformation had already been happening across every industry. In education, it’s providing new avenues for learning to ensure everyone has an equal opportunity for advancement. Arizona is proud to lead the nation in EdTech and will continue to heavily support opportunities for alternative education and extended learning through technology. Steven G. Zylstra is president and CEO of the Arizona Technology Council.

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TECHNOLOGY

SCHOOL DAZE The pandemic put the spotlight on the potential of virtual education, but where do educators take it from here?

By MICHAEL GOSSIE

hen members of the class of 2024 started their freshman years at Arizona universities, sitting home in their pajamas taking classes via Zoom was probably not how they envisioned their first day of college. But thanks to the COVID-19 pandemic, that was the first taste of higher education for many students. But students in elementary schools and high schools were forced to pivot, too. Before the COVID-19 pandemic, there were many politicians and educators who questioned the value and quality of online learning. That perception has quickly changed. To learn how the pandemic has altered digital learning, Az Business sat down with Brian Mueller, president ofÂ Grand Canyon University; Tonya MacBeth, a partner with 24

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Burch & Cracchiolo; and Steve Sarmento, the director of educational services for Edkey.

hit and we had to send the students home, all the students were familiar with the system, knew how to use the system, were comfortable with it, as were the faculty Az Business: How did the pandemic impact members. And so things went very well for Grand Canyon University? us in the spring and in the summer. Brian Mueller: We were fortunate. We AB: The pandemic shook many K-12 did two things prior to the pandemic taking place. One, we invested $250 schools. How was Edkey so well prepared to pivot? million in technology in the last 10 years, thinking that technology was going to Steve Sarmento: Edkey has been supporting Sequoia Choice Arizona have a major impact on higher education Distance Learning School, which is an going forward. And all of our traditional online distance learning school thatâ&#x20AC;&#x2122;s been ground campus students were on the in operation since the 1990s. We were able system prior to the pandemic. And so our faculty members would use it in whatever to leverage the skills and expertise in that way they wanted to. Some would have online distance learning model and get discussions between class sessions. Other that into our brick-and-mortar schools. So all of our teachers basically were able to be ones would have students submit their work that way. And so when the pandemic mentored by those experienced teachers

that had been doing online distance learning. And that was a great support to our brick-and-mortar schools. It allowed them to be able to pivot very quickly to a distance learning model. AB: But the impact wasn’t only on the students. How has it impacted families? Tanya MacBeth: All of our family clients who have school-aged children are experiencing tremendous disruptions and they’re trying to figure out how to manage their court orders, which were very specific and based on away learning or a traditional brick-and-mortar school learning schedule. Now, they are having to negotiate those interpersonal relationships all over again. We used to set up exchanges so that they always happened at the school and there was no person-to-person parental

transfers occurring when possible. That’s not possible anymore. And it’s shifted the dynamic in a very dramatic way for families. AB: GCU has long been a leader in online education. How important was that history and that investment in the technology to GCU being able to pivot so quickly and so effectively? BM: It was really important. We’ve got two major programs. We have about 23,000 traditional students on our campus. We also have 85,000 working adult students who are attending online. And a lot of people look at higher education with those two big markets in mind. We believed going back 10 years ago that there was going to be more than two markets and that universities and K-12 institutions

were going to have to become very flexible to meet the needs of people. The old industrial model of K-12 education and higher education is very limited in terms of addressing the needs that exist through our society. And so having been prepared in terms of those two large markets was just the first step. AB: So where do we go from here? BM: The second step now is that universities are going to have to be able to develop five or six different ways to interact with the university, depending upon the person’s lifestyle and what their economic and financial needs are. Being ready with those two big markets was just a precursor. Now, what’s going to happen is universities are going to have to take a look at the variety of lifestyles, the variety of AB | November - December 2020 25

TECHNOLOGY learning needs, economic needs, etc., and be able to offer people the ability to attend college, earn credits, work towards degrees in a multitude of different styles. AB: We’ve utilized the same K-12 model for many years. How will the experience of going through the pandemic impact K-12 education? SS: For the students who are kindergartners this year, many of the jobs they’re going to be applying for when they graduate college don’t even exist. How are we going to prepare them for that? We have to use the tools that are cutting-edge now because those are going to be the ones that are everyday tools by the time they’re looking to get those jobs. So, for me, it’s really about innovating in terms of what we want the students to be able to know and do. And that’s going to come from the students and parents being involved in making those choices and finding a school that’s forward thinking and flexible and meeting the needs of their students. At Edkey, we say, “We are a place where every child is known,” and our teachers take that to heart. It’s not about what the teacher needs in that classroom, it’s what does that teacher need so that the students can be successful? I think the digital learning trend is going to see students taking ownership of their own education, rather than schools driving that. Students are going to be owning and taking responsibility for their own leadership. And that is where education needs to be heading toward in the future. AB: How had COVID shifted the perception of education in the home? TM: There’s going to be a significant shift in terms of the appreciation that parents have for teachers. A lot of my clients and other parents have spoken to me about the fact that getting a middle-school-aged boy to care about algebra or math may be a challenge that requires somebody outside of the mother and father to really stimulate that interest. And that role has been the teacher and the teachers have been very good at engaging students and bringing along the reluctant learner. That reluctant learner is now also the same student who needs to pick up their socks off the bedroom floor. We have to understand that not every parent is the

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best teacher and our parents are beginning to understand the value that teachers bring to the learning process. And so I think post-COVID, we’re going to have a real renewed appreciation for the hard work that classroom teachers do, whether that’s electronic-based or in-person. And I think that’s a wonderful shift. AB: What’s going to be the long-term impact of the pandemic on education? BM: I think whether it’s K-12 or whether it’s higher education, as kids grow up, they develop passions. They get very excited about certain areas of life. And the industrial model of higher education really makes it difficult for them to really seek out those passions, to really develop them in a way that if we were more flexible in how we deliver education, that could happen. I’ll give you a quick example. When we closed in March and sent the kids home and we

finished the last four weeks of the semester online, a group of students that I’m close to went backpacking in Colorado. They were together for four weeks. And the things that they learned and discovered about living in the mountains and being together, and they just explored an area of the world they’d never been in before. And they completed their coursework very successfully. The internet is a tremendous communication tool and it doesn’t necessarily mean that when you go online, you’re going to be by yourself. There are ways to make it a very social experience. And so you can have both things, but what’s going to happen in the future is that universities are going to have to be able to meet the needs of a lot of different students. And they’re going to have to be very flexible in how they deliver. The people that can do that are going to be the winners going forward.

AZ TECH TALK PANELISTS TONYA MACBETH Tonya MacBeth is partner with Burch & Cracchiolo who practices Family Law. Her practice focuses on divorce representation, adoption, parenting time, child support, custody, paternity and legal decision-making. She is a litigator and mediator and was recently named a 2021 Best Lawyer in America in family law mediation. BRIAN MUELLER Brian Mueller is the president of Grand Canyon University and CEO of Grand Canyon Education. Prior to GCU, Mueller was the president and a director of Apollo Education Group, the parent company of the University of Phoenix. While Mueller held a leadership position, enrollment at the University of Phoenix grew from 3,500 to 340,000. STEVE SARMENTO Steve Sarmento is the director of educational services for Edkey, a nonprofit organization that provides high quality management and educational services to a variety of institutions, empowering fulfillment of their individual missions. In his role, Sarmento supports a network of schools in the areas of curriculum, instruction, assessment and professional development.

To watch the entire AZ Tech Talk panel discussion on the future of the virtual education, go to azbigmedia.com.

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LAW

HAZARDS OF HOME

Here’s what businesses need to do to reduce their risks as more employees work remotely

By MICHAEL GOSSIE

he dramatic increase in workfrom-home employees arose from employers’ effort to protect employees from the risks of COVID-19. What those employers didn’t think about was the added risks to their business that sprung from those good intentions. “A myriad of legal risks exist with more employees working from home – in the short term and long-term, if not permanently,” says Nonnie Shivers, a shareholder at Ogletree Deakins in Phoenix. According to Shivers, risks run the gamut of wage and hour claims, including: • Business expense reimbursements due to cell phone and other personal device/equipment/supply usage. • Off-the-clock work because it’s inherently more difficult to define the work day and prevent compensable work from being performed, but not recorded. • Enhanced risk of future disability discrimination and failure to accommodate claims as people seek to avoid returning to physical workplaces due to their and others’ medical conditions and fears of COVID transmission. • R isks of unknowingly doing business in other states when employees relocate to weather the storm or move permanently — sometimes with and often without the businesses’ knowledge, which leads to tax, payroll and paystub exposures. “When employees are not physically in the office and visible to management, it can be challenging to ensure that work time is accurately recorded,” says Coppersmith Brockelman attorney Jill Chasson. “In addition, many employers have allowed flexibility in schedules during

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the pandemic to accommodate situations such as children learning remotely from home. This means employees are more likely to be doing at least some of their work – including responding to emails and handling phone calls – early in the morning, late at night, and/or on the weekends.” Chasson says employers should ensure that they have procedures in place to accurately capture work time, and that they have clearly communicated these procedures to employees. This can be something as simple as having employees self-report their time daily, with a daily or weekly certification that the reported hours are complete and accurate. There are also technology solutions that automatically record when an employee logs into and out of company systems. Chasson says measures like this, and periodic reminders to staff that work hours must be accurately recorded, can help employers refute any later claims that employees are owed additional pay. But that’s not the only issue employers are facing. “While employers must be vigilant to ensure employees have the ability to work safely, one of the biggest risks are decreasing productivity and morale as work from home extends further than expected given the pandemic and its unpredictable — yet incredibly dangerous — trajectory,” Shivers says. TECH TROUBLE The wage-and-hour challenges don’t even scratch the surface of other businessbusting risks. “Employees working from home on personal devices could expose their employers to the possibility of hacking

and other cyber theft,” says Sam Saks, an attorney with Guidant Law Firm. “Business owners should work with their IT teams to revisit information security policies and procedures to ensure any computers or devices accessing company systems are properly secured.” Saks says intellectual property theft is another threat to companies with employees working from home. “Employees working from home likely have increased access to company information, such as by downloading it on their personal devices that may not be as secure as company devices,” he says. “When sensitive or proprietary company information is on a private computer, it can make its way to a competitor if the employee is let go or merely careless.” Experts say companies should ensure their employment and contractor agreements contain language that protects business information, including a confidential information clause. The Arizona Trade Secrets Act protects companies if information is stolen. But to sue for lost profits, a company has to prove, among other things, that the information was truly proprietary and not easily available elsewhere.

HOW THE WFH MOVEMENT IMPACTS YOUR BUSINESS INSURANCE COVERAGE If they haven’t already done so, businesses should ensure proper cyber liability coverage to protect against potential data breaches or cyber-attacks, according to Lisa Heppler, principal and executive vice president at Lovitt & Touché. “With employees working on home Wi-Fi networks and using personal devices that may not include enterprise-level security features, cybersecurity risks have increased,” Heppler says. “Businesses also want to ensure employees receive additional training in how to spot potential cyber risks and to protect sensitive data while they work remotely.” Heppler says training should include guidance on recognizing and handling common scenarios like phishing and password security as well as best practices for bring-your-own device, remote access, business continuity, incident response and recovery and device use. “Companies can provide this training in a number of ways

including short cybersecurity courses, online quizzes and simulations, among other avenues,” she says. “Data breaches can be costly both in terms of dollars as well as time and reputation.” Additionally, Heppler says businesses will want to amend their property coverages or add a floater policy to provide additional protection against loss or damage for company-owned equipment Lisa Heppler and devices like laptops, monitors or printers that employees may be using at home. Without proper equipment coverage, businesses may be on the hook for higher replacement costs, or they may face claim denials in the event of malfunctioning or failed devices that have been in use and stored at employees’ homes.

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LAW

John J. Balitis

Scott Bennett

Mark Kisicki

Sam Saks

“During the past few months, there has (also) been a big increase in ransomware attacks,” says Scott Bennett, an attorney with Coppersmith Brockelman. “Working from home increases the risk that employees will click on a malevolent link in a phishing email.” Bennett says employers can reduce the risk from ransomware through technical measures and education. “One common technical measure is to add a label to emails that come from outside the organization – something like ‘External Sender,’” he says. “That can help employees spot phishing emails that look like they are from a boss or co-worker. Education is also important. Employers need to train employees about the risks from phishing emails, and how to spot them. Many organizations will also send out fake phishing emails to employees. Those who click on a link in the email receive additional education about phishing emails and how to identify them.” WORKPLACE INJURIES — AT HOME Another potential issue is that employees injured while working at home might file a workers’ compensation claim. “Employers have seen some surprising benefits while transitioning their workforce 30

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Jill Chasson

Eric Johnson

Nonnie Shivers from their offices to employees’ homes, but there are also significant drawbacks,” says Eric Johnson, chair of Quarles & Brady’s Labor & Employment Practice Group in Phoenix. “For instance, employee accidents while working from home will likely still go through workers’ compensation even though it may be extremely difficult for employers to ensure that an employee’s home provides a safe working environment.” Arizona law requires companies with more than one employee to have workers’ compensation insurance and failure to have it is considered a crime, according to Saks. A claim can trigger an investigation into coverage that could expose a company that isn’t compliant. “Companies can protect themselves by having proper safety policies and procedures in place,” Saks says. “Having a well-drafted employee handbook or manual is a great start, but revisiting it regularly is imperative to ensure the company is sufficiently covered in light of ever-changing laws and regulations.” REDUCING RISKS To address the risk associated with an increased number of employees working from home, employers need to think about their businesses and commit both time

and resources to finding ways to foster personal interactions to the extent both virus and business conditions permit, according to Mark Kisicki, a Phoenix shareholder at Ogletree Deakins. “Hopefully, employers can modify work schedules, operations and environments in ways that will allow employees to safely return to work onsite as soon as possible, even if on a rotating basis — understanding that it is crucial that they convince their employees that their safety is paramount,” he says. In the meantime, Kisicki says to encourage video-conferences rather than phone calls. Managers should have video-meetings with their employees regularly, and short individual video conferences each week with every employee they supervise. “Occasionally, one of the company’s most senior leaders should hold an all-hands video conference for employees, and convey as much positivity as circumstances allow, and reaffirm that everyone is in this together, and will get through it together,” Kisicki says. Employers need to ensure employees are remaining productive and actually working during the time for which they are paid, Kisicki adds. Since most remote employees utilize a computer all day, monitoring productivity should not be difficult. “One of the most significant risks that businesses face is the potential liability associated with failing to assess remote workspaces, so that hazards are identified and addressed,” says John J. Balitis, chair of the Labor & Employment practice group at Jennings, Strouss & Salmon. “Before an employee starts to work from home … an employer should ensure that the worker in the remote environment is complying with all health and safety policies that would apply at the office. Create and have each employee complete a survey that assesses the remote space, including its furnishings, ergonomics, and general working conditions.” The bottom line is that companies should draw on all their resources to protect themselves from a risk management perspective, Saks says. Involving their entire business team — including finance, IT, legal and security — ensures that companies see the bigger picture and aren’t being myopic. “This doesn’t completely eliminate risk,” Saks says, “but can significantly reduce it.”

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AZ FORWARD

A CHANGING CLIMATE Arizona’s public and private sectors work to improve their sustainability best practices to address climate change

By TROY HILL

he climate is a sensitive subject in Arizona, and it has taken the last 10 years for sustainability to be widely recognized. Now, Arizona is at a unique crossroad and the impact of climate change, in the form of extreme heat, wildfires and extended drought, can no longer be ignored on a local and statewide basis. “The climate in Arizona, like the climate in many, many other places has been warming,” says Dr. Nancy Selover, the state climatologist appointed by Gov. Ducey who also works in the Arizona State University School of Geographical Sciences and Urban Planning. Arizona, and much of the western United States, is arid or semi-arid and has high variability in temperature and precipitation from year-to-year. Arizona also varies in its climate across the state, with as little as three inches of rain per year in Yuma, to as much as 45 inches in Flagstaff. With this in mind, 2020 has broken many records and become the hottest and driest year in Arizona’s recorded history. While next year possibly won’t match this year’s severity, experts think that the severity of this summer will return eventually.

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Time for a change Fortunately for Arizona, it has many individuals, companies, cities, and other organizations that see the trajectory of the state’s climate and are doing what they can to implement positive change. Arizona Forward created a Statewide Sustainability Roadmap Committee that reviews sets and reviews priority areas, including restoration of waterways and forest health. Selover says Phoenix, in particular, is heating up faster than most other places. “Phoenix is warming faster than everybody else because of the development that we’ve done to the city itself in terms of changing over from irrigated agriculture and the natural desert, both of which tend to cool off at night,” Selover says. “Urban areas tend not to cool off at night.” A major contributor to the problem in Phoenix and the surrounding areas is the high use of energy in the summer. It’s hot, so people use more air conditioning, which uses more power, which contributes to the problem of it getting hotter in the first place. This is further complicated by the fact that Arizona no longer has a department of energy. However, this

doesn’t stop people from taking action. Many municipalities in the Valley and throughout the state are working to become more sustainable and reduce their footprint. “The state may not have a sustainability officer, [but] all the cities in the Valley do have sustainability officers,” Selover says. While different cities may call this position a different title, such as “efficiency officer,” it is clear that they are all focusing on increasing sustainability throughout the Valley. Educators step up Arizona universities are also contributing to the state’s sustainability by assisting local communities’ sustainability officers. This is accomplished through the Sustainable Cities Network (SCN), a peer-to-peer network for communities and their sustainability officers to come together and find out what others are doing for sustainability in their own communities. Many new sustainability officers have their background in various disciplines and the SCN gives them a place to find their footing and a community to help and support them. “It’s about being socially embedded, you know, providing

use inspired research, and serving the communities that are around us,” says Anne Reichman, the director of the Arizona Sustainable Cities Network and the Project Cities Program at ASU. “I feel that that’s one thing through the SCN that we do on an ongoing basis, which is really important, specifically for climate.” A current program in a few Valley cities involves painting pavements lighter colors with a special paint that doesn’t absorb as much solar radiation, keeping the area cooler, but it doesn’t reflect light into the eyes of drivers. “The pavement doesn’t get as hot in the daytime, and if it doesn’t get as hot in the daytime and it doesn’t radiate heat back out all night long, like what happens now,” Selover says. Municipalities have also increased the amount of urban forestry, the planting of trees throughout the city, to provide shade and cool the temperature down. Many higher-income areas and neighborhoods already have a lot of vegetation, so they are also trying to add urban forestry to lower-income neighborhoods to help out the people who are already struggling to cool their homes. AB | November - December 2020 33

AZ FORWARD Water and energy efficiency In addition, municipalities are pushing for buildings to be more energy efficient. Not only does this decrease the amount of energy needed, reducing the amount of pollution created from power plants, but also saving the building owners and consumers money by not having to pay as much for electricity. Selover says these are all positive steps for municipalities to increase both their sustainability efforts and the state’s sustainability efforts. “I think we’re making some good progress in those areas and the cities are all certainly trying to do their part, and the state as well,” Selover says. Another issue for sustainability is the use of water. In Arizona, water is very limited, but has many uses and needs, such as generating power in hydroelectric power plants. Almost all of Arizona’s agriculture is dependent on natural waterways as well. Fortunately, there are ways that individuals and companies can and have been contributing to Arizona’s water conservation. According to Selover, sustaining a lawn and nonindigenous plants takes up far more water than native desert plants. Therefore, many communities have banned front yards, and individuals have switched to maintaining desert plants and native trees, which take far less water and cool a house just as much as other types of plants would. Other businesses that are more reliant on grass, such as golf courses, use reclaimed, non-potable water to feed their lawns to keep from wasting limited water resources.

Anne Reichman

Nancy Selover

Climate action planning Reichman says many large companies understand the importance of climate action planning. “A lot of companies have been doing sustainability plans, risk assessment and climate planning for some time,” Reichman says. “They have a lot of goals already set and are implementing solar energy use, reducing carbon. They’re looking at their waste stream, they’re educating their supply chain on all the different ways they can reduce waste recycle, all of those things to minimize their footprint.” Reichman says she thinks there is a really important connection between cities and businesses. “It’s really an opportunity to bring the private and the public sector together on an important topic,” Reichman says. “There’s a lot that cities can

EMERGING SUSTAINABILITY LEADERS FOR ARIZONA ARIZONA FORWARD, Arizona’s leading non-profit sustainability organization selected a new group of emerging business professionals for the third annual Emerging Sustainability Leaders program. Here are the 2020-2021 participants: BRETT MELENDEZ, chief water quality inspector, City of Phoenix DANAE PRESLER, sustainability officer, City of Avondale DAVID CALLOWAY, transit coordinator, City of Mesa ERIC MACDONALD, zero waste analyst, City of Phoenix ERIN RUGLAND, junior fellow, Babbitt Center for Land and Water Policy, Lincoln Institute of Land Policy EVA ZAMBRANO, landscape designer, SmithGroup JANET HOWE, associate attorney, Perkins Coie JENNIFER LOVE, senior transportation planner, AECOM

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KARIS NELSON, senior environmental compliance scientist, SRP LANA HALL, senior program manager, ON Semiconductor LAURA SICKING, environmental engineer, Intel MACKENZIE MCGUFFIE, sustainability coordinator, Valley Metro NICK COOKSON, program manager, Arizona State University NICK MCDONALD, data management analyst, Arizona Public Service SEAN WILSON, senior environmental engineer, Freeport-McMoRan SHAWN SWISHER, architect and designer, Jones Studio Architects TRIKA GRAHAM, water quality senior, Freeport-McMoRan VANESSA DAVIS, employee engagement and CSR manager, Octo Consulting Group

APS

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AZ FORWARD learn from the private sector about how they’re doing things.” Bigger corporations are also doing what they can to contribute to the state’s sustainability. Aside from reducing the amount of water they use, Swire Coca-Cola, a bottler and distributor of Coca-Cola products with a production center in Tempe, also replaces as much water as they can from the places from which they take it. Another positive step many individuals, companies, and municipalities are taking is switching to alternative energy for their vehicles and fleets of vehicles. A notable example is Amazon, which has more than 10 facilities in the Valley and is continuing to add more. The company is planning to implement a fleet of 100,000 electric delivery vans, the first of which could be rolling onto the streets next year. “The private sector has done a huge amount, not just in Arizona,” Selover says. “There’s a lot of action going on and there’s all kinds of other companies who are doing the same thing and they’re finding it saves them money.” Leading the way Businesses have the opportunity to lead the way in sustainable practices and programs because of their ability to move and make spending decisions much faster than governments, which tend to lag behind in switching to sustainable practices. Selover says it helps businesses when they become more green because of the public perception it can bring them. Many

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people and groups only do business with “green” companies. ASU has also taken steps to help individuals be more environmentally conscious by providing the “Seeds of Sustainability” program, an online course that introduces sustainability vocabulary and educates participants on what they can be doing to be more sustainable. The SCN at ASU has also created many resources for individuals, companies, and cities. They created a Low Impact Development handbook, a “Greening Events Implementation Guide,” a library of sustainability resources and more. Other cities in Arizona, such as Tucson and Flagstaff, have also acquired sustainability officers and are working on climate action plans to increase sustainability and combat climate change in the future. Recently, both of these cities announced “climate emergencies” and are aiming to be carbon neutral by 2030. Maricopa County recently came out with a greenhouse gas emissions inventory for 2018, with breakdowns by city. Reichman says this could be very helpful for many cities in the Valley, especially for some of the communities that haven’t invested as heavily into sustainability yet and don’t know where to start. “Each city has a certain amount of starting information they can use,” she says, “so if they haven’t invested in that particular step of doing an inventory, it at least gives them something to start with on a community-wide basis.”

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FINANCIAL EXECUTIVES INTERNATIONAL

ven before the unprecedented impacts of the coronavirus pandemic, businesses were seeing the effects of a hardening insurance market, which has been generating higher business insurance rates. The unpredictable nature of the pandemic has only led to greater uncertainty in the market, adding upward pressure to rates. In the third quarter, commercial insurance rates rose an average of 6.25 percent, according to Business Insurance. That far exceeded the average rate increase of 4.8 percent in the second quarter and the 4.5 percent average bump in the first quarter. The transportation industry has been impacted the most, experiencing an average increase of 10.5 percent in the third quarter, per MarketScout. Directors and officers insurance had the largest increase with 11.5 percent in the third quarter, continuing an upward trend of the past several quarters. Umbrella and excess liability saw the next largest increase with an average of 8.5 percent, per MarketScout. Social inflation and litigation Several factors are driving higher claims payouts, thus creating the need for carriers to increase rates. One of the primary reasons is the impact of “social inflation.” Insurance carriers are facing increased litigation, broader definitions of liability, more plaintiff-friendly legal decisions and larger compensatory jury awards. We also have seen an unprecedented increase in the number of nuclear jury awards —

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Jody Sarchett Finance

those in excess of $10 million. General anti-corporate sentiment and a sense that “someone needs to pay” damages regardless of negligence are among the contributing factors. Also at play is the phenomenon of “litigation funding” strategies whereby private equity or third-party investors agree to cover a plaintiff’s legal fees in exchange for a portion of any awarded damages. Such funding can inspire claimants to pursue litigation rather than settle and it encourages plaintiff attorneys to inflate the amount of damages sought. The tactic has reached a tipping point, reports AboveTheLaw.com, that “no lesser a source than the New York City Bar Association Litigation Funding Working Group has spoken, declaring that ‘the New York Rules of Professional Conduct should be modified to accommodate the reality of litigation funding.’” There also have been several securities suits related to COVID-19 that added to the trend of increasingly costly, eventdriven securities and derivative litigation.

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FINANCIAL EXECUTIVES INTERNATIONAL Severe weather impacts We are also seeing more extreme weather events such as hurricanes, wildfires, droughts and tornadoes all of which have grown in scope and size in recent years. According to the National Oceanic and Atmospheric Administration, this is the sixth consecutive year in which the U.S. has experienced at least 10 separate billion-dollar-plus disasters. Historical loss data and current rates do not reflect the severity or frequency of current weather patterns, which makes it more challenging for insurers to predict potential loss costs. This, in turn, creates a need to increase surplus in the marketplace globally. Catastrophe bond (CAT) losses in the Southeast and Gulf Coast, along with wind and hail losses, have contributed to increased pricing from the reinsurance market resulting in habitational risk being hit with some of the largest rate increases. Economic factors Loss ratios of several of the largest insurers continue to deteriorate, causing a decline in investment income. With insurers failing to produce a double digit return on equity, they are underwriting risks thoroughly. One bright spot is workers’ compensation, which has not seen losses like the other lines of coverage, resulting in continued short term favorable rates. However, workers’ comp insurers are concerned that inflation-driven rising medical costs, coupled with an extended period of low interest rates, may negatively affect loss ratios (profitability and sustainability). The ultimate result could be margin erosion, driving rates upward. Additionally, new presumption laws that require workers’ compensation benefits to apply to employees who contract coronavirus will likely contribute to higher compensable claims, medical treatment costs, and other costs.

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Cyber and data risks Data security and privacy continues to be one of the top risks for many organizations. The average ransom payment increased 60 percent from the first quarter of 2020 to the second quarter. As claims increase, cyber insurance rates are starting to increase anywhere from 5 percent to 15 percent. It also is taking more carriers to build out a tower of limits for organizations with significant exposure. The rise in claims are brought about by continued increases in ransomware and social engineering attacks. According to the 2020 Ponemon Study conducted by the Ponemon Institute, the U.S. is the most expensive place in the world to experience a data breach at an average cost of $8.64 million — more than double the global average. How to navigate the hard market Like other challenges facing business owners, it is unclear when the hard market may abate. Considering that uncertainty and our litigious environment, here are several ways business owners can plan for next year as they navigate the hard insurance market: • Determine absolute minimums: In the event that a business is facing an extreme rate hike or cut in capacity for liability coverage, business owners should establish their company’s acceptable minimum liability limits. Start with a review of the insurance provisions of key customer contracts. • Don’t rely on past performance: In a hard market, businesses can’t necessarily count on past performance. Owners should create a strategic plan when approaching the insurance market, along with a compelling submission. It is critical to

remember that due to the uncertainties and other factors at play in a hard market, rate hikes are likely, along with possible coverage cuts, higher premiums and deductibles. • Consider alternatives: With rising rates, it can be beneficial for businesses to remain open to alternative solutions to financing risk such as new insurance program structures, self-insurance options or joining a captive. • Document, document, document: With increasing risk of litigation, the better processes, procedures, and documentation businesses have in place can help with defense. • Address cyber risk: Businesses should identify their risk through continued penetration testing, cybersecurity gap assessments, and have in place a current cyber incident response plan. Jody Sarchett is executive vice president of sales with Lovitt & Touché, A Marsh & McLennan Agency LLC Company, where she leads business development efforts. Learn more at lovitt-touche.com.

AB | November - December 2020 41

SMALL BUSINESS

ALL IN THE FAMILY

From Denmark to Arizona, Copenhagen Furniture celebrates its 50th anniversary

A FAMILY AFFAIR: Copenhagen Furniture owners Jorgen Hansen, Erik Hansen (who passed away on February 12), and Jens Hansen. (Provided photo)

By SARA WALKER

ome is where your family is, and no home is complete without furniture. This year, Copenhagen Furniture, which places equal importance on family and furniture, is celebrating its 50th anniversary. The company, which sells Danish modern and contemporary furniture, has Arizona showrooms in Phoenix, Scottsdale, Tempe and Tucson and has plans to open a location in Gilbert soon. Founders and brothers Erik and Jorgen Hansen grew up in Denmark on the island of Fyn, in an apartment above their family’s business, a furniture store. In the 1960s, Erik emigrated to the United States and worked in furniture stores in California and Florida with his business partner, Tony Christensen. As Jorgen completed a business degree in Denmark, the three decided to open the first Copenhagen showroom in 1970 in Phoenix. In the following years, the company took off and opened more locations in Tucson and the Valley and Erik’s son, Jens Hansen, opened Texas showrooms in San Antonio and Austin. “At the start, we, as the owners, did everything ourselves,” Jorgen says. “We ordered, sold, assembled, delivered and serviced every piece that went into customers’ homes.” Now, the company continues to grow and employs more than 175 people. Copenhagen shops worldwide, from markets across the U.S. and Europe, for artistic and functional Scandinavian-style furniture and accessories for all rooms of the home. When Copenhagen first opened, contemporary furniture was not common in the Southwest. “We had to convince many that Danish modern style and culture would thrive in the desert,” Jorgen says. But the success of Copenhagen over the last 50 years is

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a testament to how well received modern and mid-century furniture has been. Family is integral to the Copenhagen brand and some employees have been with the company for 20, 30 or 40 years. Jorgen believes the team is the key to overcoming the challenges the company has faced. “Our main strength as a company is the Copenhagen ‘family’ and every individual who contributes to it,” he says. The 50th anniversary recognizes the spirit and dedication of everyone who works for Copenhagen. The 50th anniversary is also a celebration of all the people who are — and have been — part of the family. Although Erik Hansen passed away in February of 2020, his brother Jorgen and son Jens continue to manage the stores and his wife Lise is dedicated to carrying on her husband’s legacy. “Copenhagen is an essential part of our family’s life and culture,” Jorgen says. “We’ve dedicated everything to making the company what it is today, and our 50th anniversary brings this even more clearly into perspective.” Another important member of the Copenhagen family is its suppliers. This year, Copenhagen partnered with them to present a unique 50th anniversary collection of more than 150 pieces. “Instead of asking for flowers or favors,” Jorgen says, “we worked to create pieces with exceptional design and value to offer discounts to our customers. It’s our way of thanking them for their business and trust.” Moving forward, Jorgen hopes to continue to build on what Copenhagen has done successfully for the last 50 years. “Seeing how the company has grown and the innovative, passionate people we’ve added to the team is a testament to how much we’ve evolved in our 50 years.”

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MARKETING

HERE’S HOW EMAIL MARKETING CAN RAKE IN A 4,400% ROI

Kirsten Haberer Marketing

ccording to Campaign Monitor, email marketing can bring up to a 4,400 percent return on investment, if done right. To be clear, that means that one can expect up to $44 back for every $1 invested in email marketing. Breaking into email marketing is simple enough, but the key to maximizing email’s ROI is to do it right. These four insights are pivotal in improving an existing email marketing infrastructure. 1. Email client configuration Once you choose an email client (Mailchimp, Salesforce, Hubspot, Emma, etc.), take care during the set-up process. Configuring an email client correctly is extremely important to ensure emails make it to your subscribers’ inboxes and not their spam folder. First, the domain you would like to send emails from (example: yourbusiness.com) must be verified. This is generally found in the account settings of the email client. Then, set up the sender information to ensure your company name and the replyto email address are accurate. Second, test that this worked by sending an email from the email client to a noncompany email address you have access to. This will show you how your email looks to your subscribers. 44

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2. Subscriber list health Cultivating a healthy subscriber list is key to increasing your email ROI. The biggest list doesn’t necessarily mean the healthiest list. It’s more important to have quality subscribers who actively open and engage with your emails. The first rule is never purchase a subscriber list. This most assuredly will lead to a high unsubscribe rate, or worse, your emails will be marked as spam, ruin your sending reputation and result in the loss of sending privileges. The best way to maintain subscriber loyalty is by managing expectations. Create an automated email welcoming new subscribers, reminding them of who you are and giving a general overview of what you intend to send; bonus points if you tell them how often they can expect your emails. The simplest way to grow your subscriber list is to ask for email addresses. You can do so on your website, social media accounts, at events, or in-store/onlocation.

inside. The goal is to persuade subscribers to open your emails and take action. Pro tip: Refrain from using spammy messaging, like “Limited time only,” as this type of wording will trigger spam filters. 4. Calls to action A critical part of an email’s content is the call to action. There should always be at least one button leading back to your website or to the point of sale, if product sales are the goal of the email (e.g. ticketing websites). Keep the content within an email short and instead lead subscribers to your website to learn more. Pro tip: Large, brightly-colored buttons perform better than text links. Use buttons at the end of each section you want subscribers to click on and add text links for all supporting information. Applying these four tips will help increase email engagement and subscriber happiness. The next step is to formulate an email strategy which will outline goals, content ideas, a sending calendar and automation plans. Consider partnering with digital marketing experts who can strategize, design, develop and manage your email campaigns.

3. Subject lines The subject line should be a concise message that teases the content within the email. Consumers often won’t feel the need Kirsten Haberer is a multimedia designer at to open an email if they already know what’s The James Agency.

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DINING

Consistently

stunning Sushi Roku’s innovative menu makes it one of the can’t-miss restaurant experiences in Metro Phoenix

By MICHAEL GOSSIE

e’ve all gone to a restaurant with a friend or colleague who is a regular patron and asked them, “What’s good here?” More often than not, they answer, “Everything is good here.” Usually, they are overstating reality. But if this conversation takes place at Sushi Roku in Scottsdale, they are speaking the undisputed truth. Sushi Roku is one of those rare gems where you could throw a dart at the menu and walk away every time with an unforgettable dining experience. It’s THAT good. Sushi Roku has built a reputation as a pioneer in contemporary sushi, incorporating diverse, non-traditional ingredients from Latin America and Europe into its culinary works of art. Food lovers are treated to a bold and diverse menu. Signature specialties include yellowtail sashimi with ponzu and diced chilies and the katana roll with spicy tuna rolled with crispy shrimp tempura and topped with slices of tuna and yellowtail sashimi. Not feeling sushi? Sushi Roku also features 46

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grilled filet mignon, prime ribeye steak, or spicy jumbo pan-fried shrimp as options that will delight even the most discerning foodie. Sushi Roku is also vegetarian friendly and offers vegan options and gluten-free options that are every bit as tasty as everything else on the menu. Are you thinking of checking out the upscale spot inside the W Hotel in Scottsdale and need some other ideas? Here are some cannot-miss dishes from Sushi Roku’s menu, which is packed with cannot-miss culinary home runs: • The mixed vegetable tempura with daikon and ginger ($13) is the perfect appetizer to start what will undoubtedly be an amazing dining experience. Other standout starters include the chicken and green onion skewers with yakitori sauce ($5) and the chilean sea bass skewers ($6.50), which are so good, you’ll want to order a second plate, but save room for other deliciousness. • A great way to sample some of Arizona’s best sushi is to order Sushi Roku’s deluxe sushi plate ($38), which

will delight everyone from sushi novice to aficionado. If you’re still hungry after the sushi plate, you cannot go wring with the crunchy spicy tuna tempura roll ($16.50) or the White Lotus roll ($21.50), which features popcorn shrimp tempura and avocado topped with albacore, crispy onions, and wasabi truffle soy. • If you’re not feeling sushi, you’ll be delighted by the prime rib eye steak “Japonais” ($49), which includes Japanesestyle potatoes and garlic green beans. Another amazing option is the grilled salmon ($29) with wasabi yuzu creme fraiche, blood orange, and fennel. Combine Sushi Roku’s amazing collection of sake and signature cocktails with its hip and sophisticated ambience, exceptional service, and an innovative menu, and you’ll realize why it’s one of the can’t-miss restaurant experiences in Metro Phoenix right now. Sushi Roku Address: 7277 E. Camelback Rd., Scottsdale Phone: 480-970-2121 Website: sushiroku.com/locations/scottsdale

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COMING NEXT ISSUE Featured topics include: • Meet the Top 100 Lawyers in Arizona • A look at how Women in Healthcare are shaping the state • The 20 young business leaders to watch in 2021 • How GPEC is driving the Valley’s economic vitality • What’s next for tourism after the pandemic?

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LEADERS TO WATCH IN 2021

BUSINESS LEADERS TO WATCH IN 2021 By MICHAEL GOSSIE

s the promise of 2021 looms on the horizon, most people are anxious to close the books on what is likely the most unsettling year

— from the pandemic to politics to PPP loans — we will ever experience. Strong leadership has never been more essential than it is today. On the pages that follow, you will meet exceptional leaders who are able to balance their companies’ needs while fulfilling their customers’ demands, and be innovative and forward-thinking while achieving defined goals. Here are some Arizona business leaders to watch in 2021.

AB | November - December 2020

Randy G. Brammer Wallace, Plese + Dreher

Casey Cartier Jokake Construction Services

Sherman Cawley Cawley Architects

Damian Creamer Primavera Online High School and StrongMind

Brian Crisp Enterprise Bank & Trust

Cathy Graham Desert Financial Credit Union

Valerie M. Kading Sierra Tucson

John C. Norling Jennings, Strouss & Salmon

Michael A. Pollack Michael A. Pollack Real Estate Investments

Jody Sarchett Lovitt & TouchĂŠ, A Marsh & McLennan Agency, LLC

Rob Schwister Alerus

David E. Sellers LGE Design Build

Steven Sheets Southwest Behavioral & Health Services

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LEADERS TO WATCH IN 2021

RANDY

G. BRAMMER, CPA, CCIFP Partner // Wallace, Plese + Dreher wpdcpa.com

Randy G. Brammer has more than a decade of public and private accounting experience. Working with small-to-midsize companies in Scottsdale, Chandler, and throughout Arizona, he concentrates on building stronger internal controls and improving financial reporting. IMPACT OF PANDEMIC: “Certain clients were devastated,” Brammer says. “For some, it was a light switch. Revenue went to zero. So there’s been some consulting and some, ‘How can we help?’ This is not a normal year. You can’t look at everyone the same as you looked at them in the past. Some people are going through a really, really hard time with businesses they’ve built. Compassion is going to lead the way on this. They’ve been good to us and it’s time for us to be good to them.” APPEAL OF INDUSTRY: “My favorite thing about the accounting profession is I’m constantly amazed at learning the ways people find to run a business and to make a living and earn money. It’s fascinating,” Brammer says. “It’s the people you meet and the entrepreneurial spirit of people who just start something in their garage. Then, you’re meeting them 20 years down the road and it’s a $25 million company. Going out and meeting business owners and listening to their story of how they started and what they’re doing now. It’s pretty impressive. I just love that.” OUTLOOK FOR 2021: “For the accounting profession, there’s still so much unknown,” Brammer says. “I would anticipate, regardless of who wins that election, that there will be quite a bit of movement in the spring, one way or another. So that’s hard to plan for. Maybe you go ahead and sell some assets or take some capital gains while we know we have them because we don’t know if we will keep them. I think it’s going to be a lot of, ‘Well, now what do I do?’ So it’s going to be important to stay in front of the client, whether that be physically or whether it’s using your phone to call them, because there’s going to be an awful lot of questions.” AZBIGMEDIA.COM 50

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LEADERS TO WATCH IN 2021

CASEY CARTIER

President and CEO // Jokake Construction Services jokake.com

Casey Cartier joined Jokake Construction services in 2012 and has more than 25 years of construction industry experience. In August, the Global CEO Excellence Awards honored Cartier as the Best Commercial Real Estate & Construction CEO in the Southwest. SHIFTING MARKET: “In both the East Valley and West Valley, e-commerce companies are really killing it,” Cartier says. “If you think of Phoenix in 1980s, 1990s, and starting in the 2000s, we were a tourism town. I think we’ve now shifted into a manufacturing and a production town. Ultimately, the high tide raises all ships. So wages are up and the quality of life is moving up.” HOT MARKETS: “E-commerce is driving the industrial space,” Cartier says. “Ultimately, I look at it as industrial drives retail — or we’ll call it the new retail. That then drives office and office then drives hospitality. When we look at markets, we don’t foresee the office market being back in 2021, but we do see data centers, mission-critical facilities, and e-commerce being the key drivers. And I do think the amount of investment that Arizona’s put into infrastructure and the fact that we have such good weather without a lot of risk really is going to drive that portion of our business for sure.” INDUSTRY OUTLOOK: “Although we’re projecting 2022 being much better than 2021 for the commercial side, we do see an uptick,” Cartier says. “A piece of COVID that, unfortunately, impacted us was that projects were not canceled, but put on hold. So we’ve been sitting with a backlog on our books all of 2020 and that will break loose. So we have our regular amount of work to do, and then everything that’s going to come forward. So our projections are fairly flat for 2021, growing into 2022. Then I start really getting into the crystal ball. Economists that started looking at the end of the decade are seeing that it has the potential of being a real tough span. But for the next four or five years, we see stable growth.” AZBIGMEDIA.COM

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LEADERS TO WATCH IN 2021

SHERMAN CAWLEY

President and founder // Cawley Architects cawleyarchitects.com

A native Arizonan, Sherman Cawley has practiced architecture in Phoenix for 40 years, primarily in the design-build commercial arena. After founding Cawley Architects in 1994 and collaborating with the Valley’s foremost builders, Cawley Architects quickly became one of the premier design-build architectural firms in Arizona. LEADERSHIP STYLE: “We’ve always been inclusive,” Cawley says. “We always try to build consensus for any big item that we’re going to adapt, or want people to follow through on. We’re in a very stressful, very complicated arena. But with that attitude, where we’re all in this together and we want to continue being in it together, that’s one of the things that led to our being able to successfully negotiate through this pandemic.” ADVANTAGES OF WORKING REMOTELY: “The first advantage is learning that we can absolutely work remotely,” Cawley says. “It surprised us. We would never have done that on our own because we are so intensely collaborative, but once we started that routine, we realized that it works. Right now, our office is working on a program where we’re going to find a way to have us work remotely on a regular basis. The second thing is there’s a really, really good personal advantage which emerged for everybody, which is we no longer had to commute. Everybody got that commute time back. I think everybody appreciated the additional family time that came from that.” SOURCE OF PRIDE: “I am extremely proud of the success of our buildings, our tenant improvements, our services,” Cawley says. “We have worked very, very hard to deliver a great service. The second thing is, I think (my partner Paul Devers Jr.) and I both feel one of our other great accomplishments was keeping 12 people busy for five and a half years during the absolute trough of the recession. We had great collaborative partners and we welded ourselves together. Quite frankly, we were one of the larger offices in the Valley during that time simply because we had those relationships that we could count on. We delivered at 120 percent every one of those years. I’m especially proud of this.” AZBIGMEDIA.COM 54

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LEADERS TO WATCH IN 2021

DAMIAN CREAMER

Founder and CEO // Primavera Online High School and StrongMind strongmind.com

After founding Primavera Online High School in 2001, Damian Creamer realized that existing technology was not delivering the content students deserved, so he founded StrongMind to be a digital solutions provider for Primavera. Through collaboration and innovation, Primavera is now the largest high school in Arizona, serving more than 26,000 students annually, and is one of the most successful online schools in the country. THE MISSION: “StrongMind exists to support digital schools around the country,” Creamer says. “And what we have set out to accomplish is to provide a superior experience for the students and families that come to our school.” THE FOCUS: “One of the areas a lot of schools struggle with when they’re delivering digital content is that it seems disjointed,” Creamer says. “We set out to simplify all of that so that our parents and our students have an enjoyable experience — everything from enrolling into the school, becoming students, and taking courses. But we want to make sure every student is actually learning because that’s really the goal for us, so that’s what we focus on.” LEADERSHIP STRENGTH: “They talk about conscientious capitalism,” Creamer says. “I wanted to do something where I could run and own my own business, but also do something that was valuable for other people — both internally for the team members and externally for the stakeholders that are part of our school. So I’ve spent my entire life’s work trying to identify the smartest people in the industry, trying to attract them to our organization, and trying to create a culture that allows us to keep and embrace all the team members.” SOURCE OF PRIDE: “We’re super proud we can help students wherever they are and regardless of how much money their parents make or how little resources they have,” Creamer says. “This is an opportunity to democratize education. That’s one of the biggest things that drives all 700 people in our organization. We really feel like we are adding value to our community and making sure the children in the community are getting a superior product and superior education.” AZBIGMEDIA.COM 56

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LEADERS TO WATCH IN 2021

BRIAN CRISP

Senior vice president - commercial lending Enterprise Bank & Trust enterprisebank.com

IMPACT ON COMMUNITY: “The Paycheck Protection Program loans process was really a whirlwind,” Crisp says. “As I look back on it, I’m really proud of what we accomplished in that process. There really was a tsunami of demand that came with the start of that program. Our organization, in a matter of days, cobbled together our process to be able to process those applications, transmit them to the SBA and facilitate those PPP loans. And the volume really was incredible. I think the number of loans that we process through PPP equated to roughly four years of our average annual loan production in terms of the number of loans produced, and that had a great impact on the communities that we serve. A lot of that money went into the pockets of employees and it allowed them to stay with their employers. And it helped bridge those companies through this period of unprecedented uncertainty.” KEY TO PPP SUCCESS: “One of the things that I’ve observed in my almost 10 years at Enterprise Bank is their commitment to innovation,” Crisp says. “We’ve made significant investments in our technology and our software platforms. And those investments allowed us to very quickly shift our business model when we went to a virtual environment. That investment allowed us to move quickly with PPP loans in very unusual circumstances and be able to build that out and deliver that to the markets and serve our clients.” CHANGES TO INDUSTRY: “I don’t know that there is going to be one sort of fundamental shift in the banking industry as the result of the pandemic,” Crisp says. “I think everybody is going to adapt their model a little bit. I think bigger institutions are going to try to become more nimble, and I think smaller institutions are going to need to invest in their IT infrastructure so they can pivot like an Enterprise Bank did to be able to provide stability, guidance, and service to their clients in times of uncertainty.”

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LEADERS TO WATCH IN 2021

CATHY GRAHAM

Executive vice president // Desert Financial Credit Union desertfinancial.com

Cathy Graham brings a unique blend of creativity and strategy to marketing and brand loyalty. Her tenured expertise in the credit union movement grew from a passion for the not-for-profit mission that drives community engagement.

COMMUNITY IMPACT: “Giving back to the community is part of the DNA of Desert Financial,” Graham says. “I’ve been with the credit union for 14 years, and I’ve truly never worked for a more missiondriven company. So, when you think about COVID and this need to respond to the crisis in terms of a business continuity perspective … we really doubled down on our focus to give back.” PANDEMIC SURPRISE: “The thing that’s surprised us is how we were able to respond to COVID in a really short amount of time,” Graham says. “If you would have told our senior leadership team a year ago today, ‘Hey, in six months, you’re going to do all these things,’ we would have told you, ‘That’s going to take us three years. There’s no way we’re going to be able to step up and help our employees and our members and our community and deploy our back office team remotely and figure out a new delivery model in our branches. There’s no way that’s going to happen in two months,

AB | November - December 2020

three months, six months.’ But it just shows that when everyone’s focused on the same thing, we found a way to get it done.” GROWING PROFESSIONALLY: “We talk a lot about how everyone has a comfort zone and that’s where you’re comfortable and that’s where you’re knowledgeable and great,” Graham says. “I try to push myself and the people that work with me outside of our comfort zones. What happens is your comfort zone gets bigger and bigger. We always joke that if you go outside of the comfort zone, it’s the learning zone. You go too far outside of the learning zone, it’s the freakout zone. And I don’t want to push myself or anybody into the freakout zone. But we constantly stretch and learn and grow and get comfortable with being uncomfortable.” AZBIGMEDIA.COM

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LEADERS TO WATCH IN 2021

VALERIE M. KADING Group CEO // Sierra Tucson sierratucson.com

Dr. Valerie Kading, DNP, MBA, MSN, PMHNP-BC, leads the newly-formed Sierra Tucson Group of behavioral health facilities offering inpatient, residential, and outpatient treatment for substance use and co-occurring disorders.

PANDEMIC RESPONSE: “The COVID pandemic has caused Sierra Tucson to focus on not just the safety of our clients, but the safety of our staff,” Kading says. “There’s been a focus on not just managing the environment, but also understanding how this impacts our staff and their families. So there’s been a lot of focus on being compassionate with each other, having extra conversations about what we’re doing so that our staff continues to feel that they’re in a safe environment.” RESPONSE TO COVID: “We know that with COVID, there has been increased suicide rate, increased depression, increased rates of anxiety and substance use,” Kading says. “So we have met that challenge. We’ve increased our capacity to help patients with mood disorders and anxiety disorders. We’ve also created a healthcare heroes program where we help nurses and physicians and any healthcare worker on the front lines treating COVID-19, and we are addressing the trauma issues and the mood components and the substance use components related to having to experience the

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traumatic events related to taking care of COVID-19 patients and being in that environment of high stress, seeing deaths, seeing other people suffering.” SOURCE OF PRIDE: “I am absolutely so proud to work at Sierra Tucson,” Kading says. “It’s fantastic to see our clients come in on Day 1 and leave on Day 30. Our tagline is, ‘Expect a miracle,’ and we really do see miracles. When we see a patient coming in and then experiencing this multi-disciplinary dynamic team of providers getting their needs met, it’s really quite a miracle to see that and it brings me joy to see that every day. It gives me great joy to see the innovative treatments that we have at Sierra Tucson. We’re never satisfied with the status quo. We’re always looking at the new science, the new interventions that are provided or available and we’re doing it.” AZBIGMEDIA.COM

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LEADERS TO WATCH IN 2021

JOHN

C. NORLING Managing attorney // Jennings, Strouss & Salmon jsslaw.com

In addition to serving on the firm’s management committee, John C. Norling maintains a full-time practice focused on advising clients on all aspects of their operations, including commercial transactions, real estate, business organizations, corporate law, mergers and acquisitions, federal and administrative compliance, business contract negotiations, and advertising law. IMPACT OF COVID: “Back in March, we strongly encouraged everybody to go home,” Norling says. “Since then, we’ve had probably 20 percent or 30 percent in the office working on a voluntary basis and everybody else has been working remotely. Strangely enough, what we feared would be a huge impact for the firm has actually been pretty good times. From a productivity standpoint and the ability to make sure our clients are satisfied, we’ve been able to grow. We’ve added another four or five lawyers during this period. So, strangely enough, it’s been an oddly decent time.” LEADERSHIP STYLE: “My background was sports and college athletics, so I always want to put the team first,” Norling says. “I view leadership as a surface position. I try to make decisions for the best interest of the firm or the team. Other than that, it sounds trite, but you do what’s right. You make the right decision. You hold people accountable. You try not to micromanage. You get good people, put them in place, and coach them up when you can. My job is to make every other lawyer at Jennings Strouss look good, be able to practice law without having to worry about anything else, and take everything off their plate to enable them to do what they’re very good at.” OUTLOOK FOR 2021: “I think it’s still going to be a little tenuous in 2021,” Norling says. “I don’t think December 31 is going to come and all of a sudden we’ll be back to normal. You hear the economists talk about a V-shaped recovery or a U-shaped recovery or a flat recovery. I think it’s going to be between. I think it’s going to be more of a gentle slope, about 45degree angle, but I think it’s going to be good.” AZBIGMEDIA.COM 64

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LEADERS TO WATCH IN 2021

MICHAEL A. POLLACK

President and founder // Michael A. Pollack Real Estate Investments pollackinvestments.com

Not only has Michael Pollack been in the commercial real estate business going on 45 years, he has flourished there. The sum total of his career has defined him as an innovator and game-changer in his industry. The proof is 10 million square feet in projects and lasting relationships with the best brokers, architects, and lawyers in the business (not to mention his clients). ADAPTIVE SUCCESS. “The one thing we’ve all learned in the commercial real estate industry — especially now — is that innovation is critical to both our survival and success,” Pollack says. “Innovation includes staying up-to-date with all new trends as well as establishing better ways to accomplish whatever challenges we face.” SECRET SAUCE. “Opportunity is nothing more than preparation,” Pollack says. “And today, we have incredible resources to help us both predict and evolve the current and future market demands. Computer systems and technology allow us to dream up almost anything and bring it to fruition. It also keeps us fresh and ready for new challenges. But, so does being able to articulate a vision and inviting collaboration. I have an open-door policy — anyone of my team can come into my office at any time to share their ideas.” BUSINESS MODEL. “We don’t do any third-party work. We don’t compete with other contractors,” Pollack says. “We are truly owner-operators — and I’m personally involved with every facet of business/projects, as is our entire office. We continue to specialize in single-family, multi-family, industrial, hotel, motel, retail, and neighborhood strip centers and that’s what we will continue to do.” FATHER OF INNOVATION. “I have a diverse background. I’ve built single-person homes, served as a general contractor, been a real estate agent, property manager, and property owner — I’ve worn every single hat in the industry,” Pollack says. “Through it all, I believe in hard work, integrity, and honesty. And, if you want it bad enough, you will work for it. I continue to compete with myself, making each project better than the last.” AZBIGMEDIA.COM 66

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LEADERS TO WATCH IN 2021

JODY

SARCHETT Executive vice president, sales Lovitt & Touché, A Marsh & McLennan Agency, LLC lovitt-touche.com

As a key member of the leadership team, Jody Sarchett is charged with leading the business development effort at Lovitt & Touché, which includes overseeing the broker team, leading sales efforts, setting the direction for strategic marketing activities and lending her years of expertise to helping clients with insurance needs. INCREASE IN RATES: “Even before COVID, business insurance rates were increasing,” Sarchett says. “Some of the factors contributing to that increase include: • Rising medical cost inflation and prolonged low interest rates could play major role on workers’ compensation loss ratios and margin erosion, thus driving rate increases. • Many states — including California and Illinois — are enacting presumption laws that require workers’ comp benefits for employees who contract COVID-19; likely leading to higher compensable claims and higher medical treatment costs. • Rising severity in general liability and commercial auto losses contribute to rising rates for umbrella and excess coverage premiums, which are climbing faster than other insurance lines. • Nuclear jury verdicts, which are legal verdicts in excess of $10 million. Factors contributing to these larger verdicts include private equity financing litigation and anti-corporate sentiment — the sense that someone needs to pay when there is damage or injury, regardless of negligence.” DRIVING INCREASES: “One of the leading drivers of increasing employee benefits costs are prescription drugs, specialty drugs, and novel drugs,” Sarchett says. “Some of them are in the upwards of $1 million a treatment. And there’s a lack of transparency. So until we see more transparency, I think we will not see a reduction in this area.” IMPACT ON INSURANCE NEEDS: “Cyber insurance and data security is becoming one of the most important issues businesses need to consider going into 2021,” Sarchett says. “As you see more technology being utilized, there’s more exposure for data breaches and privacy breaches. To protect yourself, you need to reevaluate what you have in the form of policies, procedures, what you’re doing from a risk management perspective, and consult with different cyber security firms to make sure that you have the systems and policies in place to protect you.” AZBIGMEDIA.COM 68

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LEADERS TO WATCH IN 2021

ROB

SCHWISTER Arizona market president // Alerus alerus.com

Rob Schwister joined Alerus in 2010 as a relationship manager and was named market president for Arizona soon thereafter. He has more than 20 years of experience in financial services and has a deep understanding of the Phoenix market.

LEADERSHIP STYLE: “My leadership style is to provide support to my employees,” Schwister says. “My job is to make their job as easy as possible. So this pandemic situation was the perfect example of how I can do that. By putting them in a position where they can be productive from home as quickly as possible, gave them an advantage over their competitors and gave them an advantage to be able to help their clients as much as possible. So servicing my employees is what I try to do to help them be successful.” IMPACT OF PANDEMIC: “We build our business by meeting with people face-to-face and building relationships,” Schwister says. “With COVID, it’s been extremely difficult to do that. But one of the things we did when the Paycheck Protection Program started was help a lot of non-clients. There were a lot of business owners who weren’t able to get ahold of their bankers and weren’t able to figure out how to maneuver 70

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through the SBA process. So in the Arizona market, we picked up more than 200 new customers through the PPP program because we were prepared to help them. So we took a lot of pride in the fact that we were able to help these business owners through that process.” INDUSTRY OUTLOOK: “I think we will probably see a lot less bank branches,” Schwister says. “Technology has really changed how we do business in the banking world. So I think you’ll continue to see some consolidation in the industry. I think the credit issues will probably be a challenge over the next 12 to 18 months, but we’ll definitely get through it. Arizona’s a very healthy environment. A lot of people are moving here and there is a lot of growth. That will continue. So we’re excited to be here and be a part of it.” AZBIGMEDIA.COM

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LEADERS TO WATCH IN 2021

DAVID

E. SELLERS President and CEO // LGE Design Build lgedesignbuild.com

Since joining LGE in 2000, Sellers has been involved in more than 15 million square feet of development and has shaped LGE’s team and process to what it is today. In 2014 to further strengthen the design build mission, Sellers started LGE Design Group, LGE’s architectural arm. IMPACT OF COVID: “We really didn’t lose any projects or any developments because of COVID,” Sellers says. “If anything, it’s picked up because there’s been definitely an increasing demand for certain product types, like warehouse and e-commerce product type. We’ve got a lot of that going on right now, so our business hasn’t been negatively affected. It was definitely touchand-go there for a bit, but I think everyone did a great job reacting to it.” STRENGTH OF TECHNOLOGY: “Zoom’s been the best thing in the world,” Seller says. “Zoom’s changed my life because I have guilt leaving the office. I always want to be at the office and all of a sudden there’s Zoom and you can communicate with people and you can see the same things and you can get a lot done. That totally transformed our business. I can’t imagine if the pandemic happened 10, 15 years ago, what would have happened. It would have been a complete mess.” OUTLOOK FOR 2021: “I think 2021 is going to be strong,” Sellers says. “Phoenix is such a dynamic city now and we don’t have the political hits that we had in the past that would keep companies from moving here. Now you have a great political environment. It’s a great place to live. There’s a ton of talented people that are moving here. So, if I lived in Pittsburgh or Detroit or somewhere, it would be a completely different COVID experience than what you have living in Arizona and what’s happening here and I think that’s probably going to continue. The biggest thing with the private market in Arizona is going to be interest rates staying low and people being able to get financing on projects. If that stops, things will stop. But I think 2021 is going to be a strong year.” AZBIGMEDIA.COM 72

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LEADERS TO WATCH IN 2021

STEVEN SHEETS President and CEO Southwest Behavioral & Health Services sbhservices.org

Steven Sheets, an innovative leader in behavioral health, was appointed to the position of president and CEO of Southwest Behavioral & Health Services in January 2019. WHAT SB&H DOES: “We have about 12 outpatient clinics — three in Mojave County, one in Flagstaff, one in Prescott Valley, one in Payson, and the remainder in Metro Phoenix. We have four opioid replacement clinics and we have four inpatient hospital settings. They’re 16-bed units, very specialized for individuals having mental health challenges. We’re also in about 160 different schools. And then we provide housing for approximately 150 members in the Phoenix area.” IMPACT OF PANDEMIC: “In any pandemic, if we’re not looking for the positive, we probably are not looking in the right direction,” Sheets says. ”So one of the positive aspects that we’ve seen is an increased demand for services. People that didn’t necessarily think they needed services before are coming in, or coming in virtually through the virtual door.” TECHNOLOGICAL SHIFT: “In a world where we were primarily face-to-face with people, we now have to be OK being virtually connected with people who are concerned about coming into the office. So while we’re seeing increased demand, we’re also seeing increased need for (cyber) security. I can’t speak for my peers, but I can say our security and technology costs have gone through the roof. People that didn’t need a laptop now need a laptop. People that didn’t need a cell phone, need a cell phone. And we need an extra layer of security because we are working from home and need to keep clients’ information secure. So it’s been an interesting development.” LEADERSHIP DURING COVID: “The pandemic was stressful, but I looked at it as, ‘How can we make this the easiest transition for our clients and for our staff and make them think we didn’t change anything other than their location?’ I’ve received emails from staff saying, ‘You thought this through and made us feel comfortable. We think you did this better than anyone.’ It might be a little biased, but I hope that we did it better than everybody else.”

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AZ BUSINESS ANGELS AWARDS

Sponsored by

Recognition casts a spotlight on the nonprofits, individuals, business leaders, and organizations that impact our communities

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z Business Angels magazine has cast a spotlight on the nonprofits, individuals, business leaders, and organizations that are making the biggest impact on our communities with its second annual Az Business Angels Awards. “We want to engage the nonprofit leaders of Arizona in order to learn more about their missions, the causes they support and the people who work tirelessly to serve them,” says AZ Big Media Editor in Chief Michael Gossie. “Equally important, we want to pay tribute to the leaders of Arizona’s for-profit community who sit on boards, donate time, support company community initiatives and give back through various means to the nonprofit community.” The Az Business Angels Awards are sponsored by WaFd Bank Arizona, itself one of the most philanthropic and compassionate companies in the state.

“When the first issue of Az Business Angels was launched in 2017, its mission was to challenge business leaders and companies to match their skill sets and desire to give back to the community by working with nonprofits that desperately need the help,” Gossie says. “The magazine was created to give new hope to nonprofits and inspire businesses and business leaders to make a difference and to make it their unconditional mission to connect, volunteer and give back to the communities they serve. Now, we get to honor those organizations and individuals at the Az Business Angels Awards.” From hundreds of nominations, the judging committee for the Az Business Angels Awards narrowed the very competitive field of nominees down to finalists in 11 categories. Over the next several pages, you will meet the finalists by category and in alphabetical order.

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HEALTHCARE-FOCUSED NONPROFIT OF THE YEAR || American Heart Association The American Heart Association has been pushing for innovation and progress in the field of heart-related illnesses for almost 100 years. They fund research that grows medical professionals’ understanding of heart problems and determines ways to treat them. They also advocate and educate for healthy living and CPR to help extend and save lives.

|| D on’t Be a Chump! Check for a Lump! In 2009, Holly Rose performed a self-examination and found a lump which turned out to be breast cancer. Through the months battling the cancer, Rose received many acts of kindness, and she wanted to give back to her community, so she co-founded Don’t Be a Chump! Check for a Lump! The organization advocates and encourages women to perform selfexaminations so cancer can be found early, and they also have a program that provides wigs to women going through chemotherapy.

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|| Home Assist Health Home Assist Health is an organization that cares and provides for those suffering from the hardships of aging, recovering and disabilities in our community. They provide services that help people with long-term care and help around the house or running errands, simple housekeeping, as well as people to help with more personal assistance such as bathing, transportation and other needs. They also have habilitation services to help people grow in socialization or motor skills.

|| The Singletons The Singletons is an Arizona based nonprofit organization that focuses on helping single parent families with a member who has been diagnosed with cancer. Their programs offer a wide range of services that can help with simple necessities, such as supplying detergent, toilet paper, paper towels, to helping with specific bills, to providing food for families that don’t have time to cook, and even hosting support groups for people in these devastating situations. Their kitchen is able to provide thousands of meals a year and have already served more than 1,500 this year alone.

|| Valleywise Health Foundation Valleywise Health Foundation is the nonprofit partner of Valleywise Health and lately focuses on raising funds for a few of its key programs, such as a burn survivor’s program, community programs and education for health professionals. In the last year, they’ve exceeded their goals at their fundraising events, benefiting the Arizona Burn Center and COVID-19 relief at Valleywise locations. They also led a campaign which resulted in many meals, masks, face shields and other medical supplies being donated to Valleywise.

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AZ BUSINESS ANGELS AWARDS

ANIMAL-FOCUSED NONPROFIT OF THE YEAR || Arizona Humane Society Arizona Humane Society has been serving the Valley and its pets for almost 60 years. They offer medical and behavioral programs and other initiatives that save thousands of pet lives a year, and their animal hospital and other medical programs help save the lives of even more animals. They also offer resources for pet owners so that they can take the best care of their pets and make the best decision in any other situations that might arise. || Arizona Animal Welfare League Arizona Animal Welfare League is one of the largest and oldest shelters in the Valley that is able to help over 4,000 animals a year with their services. AAWL visits other shelters that might euthanize their animals and bring them to their own facilities and connect with people and have them adopt the pets so they can have a home. They also have a network of “foster parents” for animals who are too young or recovering to be adopted. 82

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|| Lost Our Home Pet Rescue Lost Our Home Pet Rescue has been helping the lost and vulnerable animals in the Valley since 2008. Aside from having a rescue program for abandoned or surrendered pets, they have a temporary care program, pet food bank, low-income boarding for pets, and a partnership with the Sojourner Center. When COVID hit this year, they quickly made procedures to continue operations and had a record month in April with 105 adoptions. || Phoenix Herpetological Society Sanctuary The Phoenix Herpetological Society Sanctuary is a nonprofit organization that takes in native and non-native animals for rehabilitation and conservation education. They take in reptiles, most of which are pet-trade animals that have been confiscated from or abandoned by their owners. They also educate people and children on the environment and how to take care of it in its already endangered state. || Southwest Wildlife Conservation Center Southwest Wildlife Conservation Center focuses on helping wild animals that have been abandoned or hurt by taking care of them and rehabilitating them to resume life back in the wild. They receive and treat animals that have been injured and take care of orphaned baby animals that need constant care. They take the time to make sure baby and adult animals are healthy and equipped to take on life by themselves before releasing them.

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COLLABORATION OF THE YEAR || Arizona Community Foundation and Print Zoom The Arizona Community Foundation in Yuma teamed up with Print Zoom, a local commercial printer, to create and distribute #YumaStrong yard signs as a way for community members to come together during the coronavirus pandemic. The foundation also started a COVID relief fund to support local nonprofits so they can continue their work amidst the pandemic. The publicity from the collaborative yard signs brought some much needed business to Print Zoom, as well as additional donations to the relief fund. || BestCompaniesAZ and Career Connectors BestCompaniesAZ and Career Connectors have been working together for more than a decade to connect jobseekers with quality hiring companies and job resources. Together they’ve served over 42,000 people and have been featured at The White House by the Department of Labor as a “model to follow” job program. Since March 2020 they’ve added a section to their website that serves as a portal to all hiring companies in Arizona at no cost to the user and host weekly virtual events for job seekers in order to offset the negative impact coronavirus has had on the job market. || CHASSE Building Team and Heidi’s Village Last year CHASSE Building Team collaborated with the Virginia B. Jontes Foundation to break ground on Heidi’s Village, a $20 million specialty animal shelter. Comprised of nine buildings including play yards, walking paths, a grooming facility and full medical suites to provide on-site veterinary care, Heidi’s Village is built to foster a community where animals are treated with respect, dignity and compassion. The shelter has room for up to 250 dogs and 200 cats and works in conjunction with other animal rescue organizations throughout Maricopa County.

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|| FirstBank and Arizona Gives Day FirstBank has been the presenting sponsor of the annual Arizona Gives Day fundraiser for eight years. Arizona Gives Day is a 24-hour online giving campaign whose funds go towards supporting a variety of local nonprofit organizations. In order to raise awareness for the campaign each year, FirstBank employees will pose as essential workers and “give it forward,” asking those they help to consider doing the same on Arizona Gives Day. FirstBank has also partnered with the Phoenix Suns to further promote the fundraiser and, to date, they’ve raised over $23 million. || Vitanya Brain Performance Centers and Heal the Hero Foundation Vitanya Brain Performance Centers and Heal the Hero Foundation have developed a national initiative called The Phoenix Operation which works to reduce mental health crises amongst veterans and other vulnerable groups. Vitanya’s programs have been proven to reduce suicidality, depression, anxiety and stress in its clients, as well as improve their resiliency and sleep quality. Heal the Hero has begun owning and operating Vitanya franchises in order to provide more grants and scholarships and to generate profits that can be further reinvested into the community and into the Phoenix Operation.

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AZ BUSINESS

ANGEL OF THE YEAR — BUSINESS —

|| Cannon & Wendt Electric Each year Cannon and Wendt Electric hosts a community-wide fundraising event known as Supporting Our Heroes in collaboration with the 100 Club of Arizona. The event raises money for families of first responders who are seriously injured or killed in the line of duty. Several law enforcement agencies, fire departments, and other health and safety organizations attend to educate the attendees on health and safety procedures and a silent auction is held. In 2020 over $40,000 was raised to provide wash-down kits for firefighters in Northern Arizona facing wildfires. || Casino Del Sol Casino Del Sol is incredibly active within their community of Southern Arizona. They host an annual charity golf tournament that, over the last five years, has raised over $220,000 for a number of nonprofit organizations. The casino hosts an annual diaper drive to support tribal communities and each year their head chef prepares a holiday meal for families staying at the Ronald McDonald House in Tucson. Casino Del Sol employees often participate in charity walks and many have served on nonprofit boards and committees. 86

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|| Desert Financial Credit Union Since the beginning of the pandemic, Desert Financial Credit Union has invested nearly $700,000 to various COVID relief programs including four food banks, Valley of the Sun United Way, the family hardship fund at Phoenix Children’s Hospital and Flagstaff Medical Center. They partnered with the Arizona Cardinals to donate laptops to a Title 1 school, gifted $10,000 worth of gift cards to families transitioning to homeschooling through their Random Acts of Kindness program, provided box lunches to grocery workers and raised a total of $160,000 for their “Taking Care of Our Own” fund. || GoDaddy GoDaddy’s signature program Empower focuses on equipping entrepreneurs in underserved communities with the training, tools and resources that they need to be successful. Their charitable giving program has funded STEM teacher education programs in Arizona and is partnered with both Teach for America and the Arizona Science Center to recruit new teachers to the state and provide them with computer science education. So far in 2020, they’ve been able to fund the training of 40 teachers who work in underserved communities. || UnitedHealthcare UnitedHealthcare and its parent company UnitedHealth Group have committed $80 million to COVID relief efforts to date. They donated $500,000 alone to the Arizona Food Bank Network, a private, nonprofit organization that serves all 15 counties in the state via a network of nearly 1,000 food pantries and organizations that address food insecurity. UnitedHealthcare awarded over $100,000 in Empowering Health grants to three community-based organizations to support COVID relief and was nominated by global nonprofit Points of Light as a Civic 50 honoree.

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|| Blue Cross Blue Shield of Arizona BCBSAZ’s public health movement Mobilize AZ focuses their volunteer efforts on projects related to substance use disorder, mental health conditions, diabetes and social determinants of health. Employees are encouraged to volunteer by being compensated for up to eight hours of community service that may be performed during regular work hours. In light of the pandemic, BCBSAZ volunteers shifted their focus to providing resources for food banks and tribal communities. They increased financial support for antibody testing among first responders and more drive-thru testing centers. Employee volunteers donated blood and participated in virtual training sessions related to the original goals of Mobilize AZ. || Isagenix International For over two years, Isagenix has been giving back to the community via the ISA Foundation, a nonprofit organization focused on healthy nutrition and support for underserved children. Their biggest volunteer event is the annual Global Give Back Day, though this year the company’s largest philanthropic effort was focused on COVID relief. So far they’ve donated over $2.8 million worth of products worldwide. Isagenix is also working on becoming a more sustainable company overall, with recent efforts including using more clean energy to power their headquarters, reducing their cardboard usage and changing their packaging to be more Earth-friendly. || Jennings, Strouss & Salmon Jennings, Strouss and Salmon formed the Jennings Strouss Foundation in 2008 to highlight issues, maximize efforts, solve problems and make a significant impact in underserved communities. For more than five years the Foundation has been the presenting sponsor of Girls on the Run 5k events throughout the Valley and they host multiple fundraisers annually to support Gateway Elementary School, a K-8 school in Phoenix. During the holiday season, Jennings, Strouss and Salmon employees come together to financially support colleagues in crisis as “Holiday Helpers.”

OUTSTANDING

CORPORATE RESPONSIBILITY

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|| Kitchell Kitchell prides itself on being a company that supports the communities that support them. The company provides time off and financial support for employees who wish to volunteer with nonprofit organizations, which supports greater retention and promotes pride in the workplace. Each year they host a Founder’s Day fundraiser that coincides with both the anniversary of their founder’s passing and National Day of Service and Remembrance where $25 per employee per hour is donated to various nonprofits. || Sonora Quest Laboratories Since the start of the coronavirus pandemic, Sonora Quest Laboratories has performed as much as 70 percent of the state’s testing, up to 8,000 orders daily. They have since launched Operation Catapult, a collaboration with Sonora Quest, Gov. Doug Ducey, the Arizona Department of Health Services and PerkinElmer Inc. that is working to increase testing in Arizona tenfold. Dr. Brian Koeneman, the lab’s Scientific Director of Molecular Diagnostics, created a task force that is focused on delivering accurate diagnostic insights to help fight COVID-19.

VOLUNTEER OF THE YEAR

Freddie Dobbins, Jr., SRP Freddie Dobbins, Jr., has volunteered at the Boys and Girls Clubs of the Valley for thirty years, also volunteering at Gregory’s Fresh Market and the African American Cultural Committee. At the Boys and Girls Clubs, he has served on numerous committees and has consistently procured thousands of dollars a year in support for the clubs. Dobbins believes in kids and their potential and has been an indispensable leader to them and to the community and received the RP Karl F. Abel Volunteer Recognition Award in 2019.

Virginia Fargo, Sterns Lending Recipient of the MLK 2020 Living the Dream Award from the City of Phoenix, Virginia Fargo has spent a lot of time volunteering and serving her community. For over a decade she has been involved with the Black Board of Directors project and is a member of the Southwest Veterans Chamber of Commerce. She volunteers and fundraises for these organizations and others in her community, as well as supporting other causes and working full time in her community.

Shari Mollencopf, Friends of Pima Animal Care Shari Mollencopf is one of the most dedicated volunteers Pima Animal Care has ever seen. She volunteers at their facility 40 hours a week, leading a team of volunteers that distributes animal food to the community. She inspires the people around her to become better employees and volunteers and is always trying to make Pima Animal Care the best organization it can be. She pushes for donations and fundraising when it’s needed and was one of the first volunteers to return when PAC allowed volunteers back after the pandemic.

Amy Obney, Helping Hands of Yuma In October 2018, the board of Helping Hands of Yuma decided to close the organization for financial reasons. That was when Amy Obney stepped up and asked the board if she could try to raise the money. They agreed and she was able to quickly raise all of the funds necessary and put together a new board for the organization and has since become the executive director. In the coronavirus pandemic, she has sought and found ways to safely serve their community. No matter the circumstances, Obney has been dedicated to Helping Hands and to Yuma. AB | November - December 2020 89

|| Brokers For Kids Brokers For Kids is an event put on by Scottsdale 20/30 where Valley commercial real estate teams compete in the Brokers for Kids annual Olympiad, a day where the teams compete in a number of different activities such as basketball, baggo and bocce ball. The event raised a record $700,000 for children’s charities in 2019 including Boys Hope, Girls Hope, an organization that helps academically capable children succeed by providing places to stay, opportunities and education.

|| M3F Fest M3F Fest is a nonprofit music festival held every year that aims to bring the community together through fun music, the arts and food. M3F Fest’s goal is to facilitate the growth of the arts to be enjoyed in the future. They donate all of their proceeds to charity, and recently have been supporting the Music Therapy Program at Phoenix Children’s hospital, which can help children in a variety of impactful ways.

|| Phoenix Heart Ball The American Heart Association (AHA) has put on the Phoenix Heart Ball annually since 1959 to raise funds for cardiovascular research, community programs, advocacy efforts and CPR education. This year, the collective Heart Balls across the country were able to raise $85 million for the AHA. The AHA Arizona has donated over $3 million to more than a dozen researchers and professors in hospitals and universities across the state.

FUNDRAISING EVENT OF THE YEAR

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|| Rock the Cause for Kids Rock the Cause for Kids is an annual event hosted by the nonprofit organization The Chandler Compadres. The event hosts a litany of fun activities such as food, auctions, raffles, and live entertainment, which this year was provided by RUN DMC’s DJ Ruckus. The Chandler Compadres have been able to donate over $10 million to youth charities in the East Valley, including AzCend, Boys & Girls Clubs of the East Valley and others. || Wish Ball The Arizona Wish Ball is held annually by the Make-A-Wish Foundation Arizona and all of the funds go to the foundation’s mission of fulfilling the wishes of children with critical illnesses to give them and their community hope and strength. The soldout 2019 Arizona Wish Ball raised more than $3 million in a single night with more than 1,000 guests in attendance. Make-AWish will resume hosting the Wish Ball in March 2021.

AZ BUSINESS

ANGEL OF THE YEAR — INDIVIDUAL —

Andy Abraham, Burch & Cracchiolo Andy Abraham is a leader at Burch & Cracchiolo, and is a dedicated community advocate and volunteer. He has led and continued his firm’s spirit of community volunteerism and support through the B&C Star Teacher Program which awards a teacher with $500 every month to spend on anything they need. He has also had his firm support numerous nonprofit organizations, donate office furniture, and spends many hours volunteering with student lawyers every month.

Scott Jenkins, Quarles & Brady Scott Jenkins serves on a number of committees at Quarles & Brady, but is also involved with the Volunteer Lawyers Program of Maricopa County and was voted as one of the top 50 Pro Bono Attorneys by the Arizona Foundation for Legal Services & Education. He is a member of the Arizona Thunderbirds, and serves on the board for the Waste Management Phoenix Open, the Fiesta Bowl Committee, the board of Junior Achievement and the board of Cactus-Horizon Little League, where he coaches one of the teams.

Chris Maderazzo, Canyon State Electric Chris Maderazzo is co-CEO and CBDO (Chief Business Development Officer) of Canyon State Electric, and a leader in the Scottsdale 20/30 Club. He has coached and inspired others to raise philanthropic funds and has personally been responsible for raising over $400,000 since he got involved, which has gone to supporting local children’s charities. He also leads CSE’s philanthropic committee which supports local organizations in the Valley and volunteers for many of these charities.

Trevor Wilde, Wilde Wealth Management Trevor Wilde is the cofounder and manager of Wilde Wealth Management and serves on the board of Child Crisis Arizona and Junior Achievement. He has frequently volunteered and raised over $150,000 for Child Crisis. He also founded Wilde Wealth Management’s “Wilde for Arizona Community Outreach Program,” which raises resources and funds for various children’s charities in Arizona. Since its creation a few years ago, it’s raised over $250,000.

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SOCIAL SERVICES NONPROFIT OF THE YEAR

|| ACCEL ACCEL is a nonprofit organization that serves children and adults with developmental disabilities, including autism spectrum disorder, cognitive disabilities and behavioral disorders. ACCEL serves 500 individuals with school campuses in Phoenix and Tempe and satellite campuses in Buckeye and Tonopah. With virtual learning taking over this school year, students with developmental disabilities tend to struggle. The teachers at ACCEL are doing an incredible job of making sure their students continue to receive high quality special education despite the challenges of online learning. || Family Promise Greater Phoenix The first nonprofit of its kind in Arizona, Family Promise Greater Phoenix is an organization that rescues primarily first-time homeless families and their pets. Amid increased demand for their services this year due to the pandemic, the organization reworked their day centers to be shelters for up to 12 families at once. They received donations from community members and other organizations and were able to continue graduating families from the Family Promise Program consistently since the beginning of this year.

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|| Mission2Alpha Mission2Alpha is a volunteer-based organization that is committed to community service, service to the military and service to first responders. Through a variety of fundraising endurance events, such as their annual 400-mile bike ride from Scottsdale to San Diego, the organization raises awareness and much needed financial support for local military, veteran and firstresponders in need. Working together with other charities, Mission2Alpha has raised over $1 million and prides itself on deploying resources swiftly and efficiently.

|| Payson Senior Center The Payson Senior Center is a community-based organization whose goal is to assist local senior citizens in achieving and maintaining self-sufficiency with dignity. They provide a wide range of community and home based services in order to best serve their seniors. Since the beginning of the pandemic they’ve expanded their meal program to serve over 900 meals a week, provided essential toiletries, gifted goody bags and made frequent happy check phone calls to their seniors who were homebound. || St. Joseph the Worker St. Joseph the Worker is a Phoenix-based nonprofit employment agency that provides access to computers, phones, a printer, resume assistance, strategies to explain gaps in employment, interview coaching, professional clothing, hygiene supplies and bus passes for reliable transportation to and from interviews for more than 5,000 homeless people across the Valley. They’ve successfully launched the state’s first ever mobile employment support as a way to help better serve the community amidst the coronavirus pandemic.

NONPROFIT

EXECUTIVE OF THE YEAR

Stephen Attwood, president, Society of St. Vincent de Paul For the last six years, Steve Attwood has served as the president of the Society of St. Vincent de Paul. Attwood is an extremely thoughtful leader who has gone above and beyond during this season to make sure he is leading his organization well and making the best choices possible. He leads with a kind and thoughtful spirit, and has been able to and will continue to make a lasting impact on St. Vincent de Paul’s community.

Nancy Padberg, president and CEO, Catholic Education Arizona Nancy Padberg is a servant leader of Catholic Education Arizona, the No. 1 School Tuition Organization in Arizona and the 32 schools they represent. She has done an incredible job leading the way in raising funds for a tax credit that provides scholarships for low-income students. Her organization has provided over $269 million to over 100,000 students so they can attend Arizona Catholic High Schools, which have a 99 percent graduation rate.

Jeri Royce, president and CEO, Esperança Jeri Royce has led and inspired Esperança for the last three years and notably through the COVID-19 pandemic. Royce has been able to inspire confidence in her teams through her collaborative, positive and decisive leadership, which has also led to Esperança creating innovative and sustainable new programs. Royce has overseen the distribution of food and supplies to hundreds of low-income Latino families and the creation of educational videos in Spanish.

Veronica Shorr, regional director, Arizona Community Foundation - Yuma Veronica Shorr was able to help start a movement and unite their community in Yuma through her involvement with #YumaStrong sign project. She donated her own time and resources and was able to help create community unity, raise funds for the Arizona Community Foundation, and help a local business in one fell swoop at the start of the pandemic.

Cassandra Switalski, executive director, Miracle League of Arizona Cassandra Switalski has managed to minimize the impact of the coronavirus pandemic on the Miracle League of Arizona that would have otherwise caused it serious harm. Switalski has remained committed and positive, and currently she is leading the organization in finding support and fundraising to make their programs safe to start back up, which is especially important since individuals in the community they serve are often immunocompromised.

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|| Arizona’s Children Association Arizona’s Children Association has been serving Arizona and its children for more than 100 years. Their goal is to make every home with a child as suitable, safe, loving, and equipped as possible, especially through difficult times. With services available in every county in the state, they help over 40,000 children every year through their large array of services and programs, including foster care, trauma support, family preservation, parenting and family education and youth mentorships. || The Boys & Girls Club of Metro Phoenix The Boys & Girls Club is an organization that focuses on providing afterschool and summer programs for children that include programs fostered toward arts, sports/fitness, becoming a leader, and character building. They also are able to help the kids grow academically, personally, and healthwise with these programs. They help kids foster better work ethics and prepare them for college, engage in their community and build up their character, encourage them to eat healthy, and prepare for real life after they finish their education.

YOUTH-FOCUSED NONPROFIT OF THE YEAR

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|| Free Arts for Abused Children of Arizona Free Arts has focused on helping children who have experienced trauma, neglect or homelessness for the last 24 years. Thousands of children experience these types of problems every year and aren’t equipped to healthily engage or express them. Free Arts equips kids to overcome and cope with their past experiences in a safe environment through their mentorship program, professional artists class series, collaborative art days and summer camps. || Make-A-Wish America Make-A-Wish America seeks to grant the “life-changing” wishes of critically-ill children. When a child is diagnosed with a critical illness, they can be referred to the foundation which will do what they can to bring that dream to life. They believe that the joy and hope these wishes bring can cause strength, hope, and transformation in the children as well as their family and community. Even in the time of the coronavirus, they are working hard to make around ten wishes come true everyday. || Room For Joy Room For Joy tries to strengthen the healing of children diagnosed with critical illnesses by renovating their bedrooms into a fun and exciting new place. Room for Joy has completed over 50 bedrooms since it was founded in 2005. They are recommended children from local hospitals, and when they take on the project, the family has a “staycation” while volunteers from Room for Joy renovate the bedroom over the weekend.

2020

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BULLISH ON BANKING Despite some unrest, leader of the Arizona Bankers Association sees hope on the 2021 skyline By ERIN THORBURN

t his core, Paul Hickman, president and CEO of the Arizona Bankers Association, is a hopeful person. He believes that good intentions, ambition, and hard work will get you to where you’re going in his industry. And, when it comes to his positive outlook, Hickman carries optimism over to what lies ahead for Arizona’s banking industry in 2021. But, it’s not simply his uplifting attitude and demeanor that Hickman enacts when looking ahead. As a decade-long lobbyist for Arizona’s banking industry, navigating the recession and now a pandemic, Hickman has developed the innate ability to predict and adapt to whatever challenges and trends culminate within the market. Az Business: There has been talk of new community banks opening in Arizona. What does this de novo activity mean for Arizona consumers and what does it mean for the state’s banking industry? Paul Hickman: I think it’s a good thing, frankly. We don’t look at it as merely more competition, since more competition is actually better for us. We see the activity as making us better bankers. And in terms of consumer impact, it can only be good. It’s more choices. In terms of the human resources component, there are more options there as well. Arizona’s got a great labor pool 98

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Paul Hickman

for banking right now. If you count the investment banks here, and the credit union sector, we have upwards of 75,000 employees. These are relatively high-wage jobs that come with benefits. They add to the tax base, and they take the pressure off of public assistance. From the economic development point of view of government, they should say “the more the merrier.” AB: What does this de novo activity say about the business environment in Arizona? PH: It says that it’s sustainable. We’ve seen proof in the tempo leading right up to the beginning of the pandemic and through COVID. Despite being suppressed significantly across all industries, business activity was not depressed entirely. Arizona’s business’ environment remained active and stayed alive. I think it’s a positive statement in terms of growth and the business community, as well as the ability to grow commerce in this marketplace. AB: What has been the biggest impact of COVID-19 on Arizona’s banking industry? PH: We’ve been given a sense of just how invaluable the banking industry is — not just in Arizona, but throughout the country. Our national leadership used the banking industry to deploy about $600 billion back into the economy to keep idle AB | November - December 2020 99

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employees on payrolls and not on public assistance. In the face of adversity, they stepped up when they could have said, “no.” I am really, really proud of the people who populate this industry. You saw many bankers who took on different roles, some from necessity, but others out of sheer willingness to help. You had bankers that were not in loan servicing, or maybe tellers, that said, “Yeah, I’ll learn how to process credit to do this because we know there’s going to be a crush of it right away and we know that it’s going to keep this economy alive.” I think this experience has enhanced the reputation of this industry, and we’re not done. There’s $130 billion left if Congress will get its act together. And, I am cautiously optimistic that they will. AB: Has the banking industry taken any lessons away from the pandemic that will make it even stronger moving forward? PH: I would reiterate that the big lesson is we CAN do this. We are integral. I’ve been saying this for 10 years since I’ve been in this position: this industry is akin to the cardiovascular system of any economy. Nothing happens without the banking industry anywhere in the world. And Arizona is no exception. I think it shows our leaders and our customers also, that we can be relied on when the chips are down, and we want to help. AB: How has the presence of the FinTech sandbox impacted Arizona’s banking industry? PH: I think FinTech is maybe one of the more revolutionary components of our economy, and particularly when it comes to banking — especially as I look to the horizon. What we have with FinTech is algorithm-based technologies applied to the financial services sector. I think that these products are going to get integrated into banking. Some of them are not, and they’re going to compete with banks as they are now, like Sofi. Others are going to become banks like Verdigris, that went through Arizona’s FinTech Sandbox. That’s the first FinTech to receive 100

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a national banking charter from the Office of the Comptroller of the Currency (OCC). We worked with the chambers, the Arizona Technology Council, the Arizona Commerce Authority and GPEC, to create a temporary regulatory safe harbor where FinTechs could test their products (for a two-year period). It was passed in 2018. It was tweaked in 2019. Now, we’re in the third year, and it has not been availed to the degree of its potential. And so, the Arizona Bankers Association has partnered with one of our associate members, Catalyst Consulting Group, to create a FinTech council. The idea is to get about 25 or 30 subject-matter experts from banks, and some of the public policy stakeholders that have an interest in the success of the sandbox. It’s formatted similar to Shark Tank, where FinTechs come in from all over the world to present the application they intend to submit to the staff of the FinTech sandbox. Then, the council provides feedback and critiques and potentially enters into a proof of concept partnership with FinTechs in the sandbox. AB: What do you hope comes from this? PH: This is a long-term play for us because these businesses are going to bank somewhere and hopefully they’ll bank at one of our banks. But, they also have the potential to bring in high-technology and services that have global markets and are in higher-wage industries. AB: What are some of the issues that could impact the banking industry in 2021? PH: I think FinTech is a big one, and in a positive way. Another issue is what’s going to happen with recreational marijuana. The amount of money that is on the table is phenomenal. Yet, it can’t be banked under federal law. It raises problems when you’ve got a highly cash-intensive industry without a bank. It’s a dangerous situation. Although legislation is gaining momentum at the federal level to allow this to be banked, it doesn’t say we’re legalizing, but rather that if it’s legal in that state, it will have access to the banking industry. That’s a good first

step. And so we’ll see what happens with that in the next congress. Last, if the political class changes in terms of the leadership at the federal level — say in the Senate and the White House — will there be a retrenchment from the regulatory reform that we saw in the Trump administration? We were at ground-zero with respect to the crash in 2009 and 2010. It came right out of the financial services sector. And, even more specifically, the housing finance sector. We had seen seven years of growth in housing finance. We innovated several new products and services that the regulatory state were behind. They didn’t get in front of those. And then there were some bad actors, and the whole thing fell apart. Then, what generally happens is banking regulation is a reaction to crises — The Banking Act, the FDIC, Gramm-Leach-Bliley. So then we got Dodd-Frank, which in our view was a disproportionate reaction. There needed to be some cleanup, certainly, and the government had to be involved, but we think there was a major overreaction. I’m hopeful that given the way the banking industry stepped up in this crisis, which didn’t come out of the banking sector, that we won’t get blamed. And there won’t be another exaggerated effort to pull back the reform that we were able to put in place. AB: What are some of the trends Arizona residents can expect to see in the banking industry in 2021? PH: I am bullish on banking. I think the financial services sector is as healthy as it’s ever been, partly due to DoddFrank, and new capital standards and requirements. Twenty years ago, there were three times as many banks in the United States as there are today. After the crash in 2009, we saw no de novos for eight years. I am hopeful that we see more of them because a vibrant and robust banking sector is good for economic growth — and it’s good for economic diversity. It’s a little too early to make a prediction, but hope springs eternal. So we’ll see what happens.

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10 BANKING INDUSTRY TRENDS TO WATCH IN 2021 By MICHAEL GOSSIE

et’s forget about COVID-19 for a minute. What are the issues and trends that we can expect to have the biggest impact on Arizona’s banking industry heading into 2021? “That is a difficult question, as I think most of the issues, trends and innovations will all be a direct result of COVID-19,” says Kyle Kennedy, Bell Bank’s Phoenix president and Arizona banking director. “Interest rates, technology, physical workspaces — what will they look like by the end of 2021? — and culture will have the biggest impact that will extend into the next few years.” So it appears we cannot look past the tremendous impact the pandemic has had on Arizona’s banking industry. But acknowledging the elephant in the room, here are 10 issues, trends, and innovations that experts expect to have the biggest impact on the banking industry in 2021 and beyond.

Bank branches “Prior to the days when most of us did not know the difference between COVID-19 and coronavirus, the trend of how customers use different service channels in banking was well underway,” says Brent Cannon, executive vice president and director of community banking for National Bank of Arizona. “The numbers of customers using physical branches have been declining over the last decade, online usage has been relatively flat, while mobile usage has continued to surge. Look for the trend in mobile/digital usage to continue and thus investment in these channels, and for banks to look to leverage virtual tools, especially consultative services that have historically been the domain of physical channels.”

24/7 service

“Technology continues to push the innovation envelope, especially in the banking industry,” says Don Garner, CEO of Alliance Bank of Arizona. “Customer demands are also creating a shift in how banks are delivering their services. At Alliance Bank of Arizona, we have implemented countless 24/7 tools, including online business banking, secure mobile business banking apps, fraud protection, remote deposit resources, and more to better serve businesses.”

Credit risk “Lenders always must assess whether a prior credit risk remains a viable customer in the present market,” says D. Lamar Hawkins, an attorney at Guidant Law. “For instance, a borrower that used to manufacture a gas-generated vehicle may be pushed into alternative forms of electric vehicles or it may find that it has no customers to purchase its products. If a borrower used to own commercial property in an area that

is losing business because the businesses are moving overseas, the borrower may not have enough tenants to fill its buildings and can no longer afford to pay its mortgage payments. Lenders must stay attuned to changes in the economic sector to ensure that the lending risks stay acceptable or may need to find ways to shrink their lending portfolios in less desirable markets.”

Digital solutions “The banking industry is working to develop and enhance digital solutions for all customers – consumers, small businesses and large corporations – that make it easier for them to apply for mortgages, manage investments or pay vendors in real time,” says Amy Anderson-Vali, Arizona consumer and business banking market leader for U.S. Bank. “These are trends gaining speed and importance in the coming years across the financial services industry.”

2 Amy Anderson-Vali

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Brent Cannon

Neal Crapo

7 8

Human relationships “In 2021, the overall banking service emphasis will shift to balancing digital technology with human relationships,” says Rachel Guerrero, senior treasury management specialist, Phoenix metro market, with Alerus. “Technology demands have steadily grown over the past few years, and this year proved clients need quick, secure, cost-effective digital options. But not every financial need can be serviced online and on your own. Clients also need quick access to a banker who knows them, knows their business, and can immediately offer guidance and help find a resolution. Banks who haven’t built relationships or acknowledge their clients when they need help will lose out to banks that blend technology with personal relationships.”

Payments industry “The banking industry is especially challenged by the payments industry,” says Bud Heintz, president of Heintz Wealth Management. “Many people don’t see the need for traditional banking and extra fees when transactions can be handled seamlessly via PayPal, Venmo and the like. Big banks are reacting by pushing their own easy-to-use payment services, yet smaller banks need to find more creative ways to add value in order to remain competitive.”

Interest rates “Interest rates are a big question mark heading into 2021,” Kennedy says. “Last time we saw rates this low, it took seven years to see an increase. Will it take that long, and what impact will the $6 trillion being pumped into the economy have? And how does all that impact banks’ deposit strategies? Are banks thinking short term and enjoying the ability to borrow at .25 percent or do they take a long-term approach and pay up for deposits, in the event we hit an inflationary environment? Turning the deposit machine on and off takes some time. Good asset-liability committees will earn their pay in 2021.

Don Garner

Rachel Guerrero

Less paper “Going in to next year, we’ll continue to see an acceleration of the digitization of banking capabilities,” says Neal Crapo, Wells Fargo’s commercial banking division executive for the Southwest. “Customers will see less paper processes and more online capabilities.”

Revenue and net interest margin “Revenue and net interest margin compression will continue to be the strongest headwind for banks in 2021 due to the historically low interest-rate environment,” Cannon says. “This will force banks to make difficult decisions in terms of resource allocation, expense controls given revenue reductions, and ultimately shortterm vs. long-term performance. However, banks must continue to invest in digital tools and platforms, which have likely already become a requirement to compete, acquire, and retain customers.”

Real-time payments “One of the many things that the pandemic has highlighted is that cash flow is critical,” says Josh Shade, Arizona market president for U.S. Bank. “That’s why we’ve focused on real-time payments for business of all sizes so they can receive payments several times a day, seven days a week, including holidays. And, we’re working on solutions that provide simpler online and mobile access, data security, contactless virtual credit cards and more do-it-yourself services. Banks fundamentally exist to help and enable customers live their lives, and the banking industry will continue working to develop and enhance digital solutions for all customers as technology continues to integrate into everything we do.”

D. Lamar Hawkins

Bud Heintz

Kyle Kennedy

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OUTLOOK FOR 2021 Here’s what Arizona banking leaders say to look for as we head into the new year

By MICHAEL GOSSIE

ost people will agree that 2020 has been a year unlike anything most of us will ever see. Our lives — professionally, personally, socially — were shook to its core. “Yet in the midst of unprecedented times, I’m optimistic about the future,” says Don Pearson, Wells Fargo’s lead region President for the Desert Mountain. “I choose to see the light at the end of this long tunnel, both personally and professionally. The pandemic has brought unfathomable challenges, heartache and turbulence, yet through that, I’ve seen unimaginable resilience, strength, and perseverance.” That incredible, unbreakable human spirit is what drives success and paves the banking industry’s path forward, experts say. “For the economy and banking sector, as we go into 2021, reports indicate we are on the road to recovery,” Pearson says. “At Wells Fargo, we have the capital and liquidity to be a source of strength for our customers’ financial needs. We will remain steadfast in

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supporting the needs of our customers, employees and communities as we look forward to emerging from this tunnel — while at the same time keeping everyone’s safety top priority.” That optimism is contagious in the banking industry heading into 2021. Here’s what Arizona’s banking leaders see ahead for 2021. Bouncing back “The 2021 outlook for banks will rely on the underlying health of the economy and the business loan demand it creates,” says Jim Glassman, head economist, commercial banking, for JPMorgan Chase. “The economy has seen national output bounce back to 95 percent of what it was pre-COVID-19 and is expected to expand at an above-trend pace in 2021, with medical answers to COVID-19 in development, accommodative Federal Reserve policy, potential fiscal stimulus and continued global economic recovery. These trends should help generate loan demand and lower fears that

banks will need high loan loss provisions. Additionally, COVID-19 has accelerated a shift to digital banking platforms in the retail sector, nonfinancial businesses, and financial services, which points to more efficient delivery of banking services that should help raise the industry’s productivity.”

regulators from the Great Recession in 2007-2009, is that the banking industry in general needed to be better capitalized and continue to improve credit risk management practices. As a result of these lessons learned, the banking industry was/is in a much stronger position to facilitate its role in the economy.”

Credit quality “The banking industry will be focused on credit quality of borrowers, dealing with revenue challenges brought on by persistent low interest rates, and continuing to assess everevolving customer behaviors,” says Brent Cannon, executive vice president and director of community banking for National Bank of Arizona. “Banks that are well capitalized and have sound loan portfolios will play a critical role in an economic recovery by providing capital (making loans) to businesses and consumers. One of the great lessons learned by banks and

Challenges ahead “2021 will continue to test bank leadership across the country, for sure – especially with the pandemic and its economic fallout not yet in the rearview mirror by any means,” says Kyle Kennedy, Bell Bank’s Phoenix president and Arizona banking director. “I think we will see flat interest rates, at least for the short term. With that, banks will also see a continued stress on their net interest margins. Banks will have to figure out ways to maintain their return on assets and return on equity for the next few years. They will need to find higher-yielding assets, lower costs of funds, AB | November - December 2020 105

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or figure out how to maintain their profitability through cost controls. For banks, our two largest non-interest costs are salaries and facilities – and you can already see some banks making those cuts today.” Real estate strength “Recent reports about the strength of Arizona’s economy, even in light of COVID-19, underscore the sustained momentum that is expected to occur within the banking industry into 2021,” says Don Garner, CEO of Alliance Bank of Arizona. “As commercial and residential real estate continue to grow and industries evolve, the reliance on financial institutions to help them with expanding, reaching new markets, and pivoting their businesses is anticipated to remain strong.” Balancing risk “While low federal interest rates will continue to spur strong demand for refinancing and borrowing, balancing risk will be an industry-wide challenge in 2021,” says Seth Philbin, senior business advisor at Alerus. “Lenders may find themselves overleveraged in specific areas and may not have capacity to service certain segments, such as commercial real estate. As business owners and individuals continue to experience COVID-19’s economic effects, communication and relationships will be key to ongoing financial success. One-to-one guidance will make all the difference as clients navigate financial programs and seek solutions to their unique situations.” Continue to serve “Although the pandemic has certainly come with challenges, we are proud to say that we have continued to focus on what’s most important: the needs of our employees, customers and communities,” says Josh Shade, Arizona market president for U.S. Bank. “Banks are the cornerstones of communities, and in times of crisis, it’s more important than ever for people to know that they can count on us. We continue to work with nonprofit partners to serve those most in need in our community.” Housing remains hot “Given the current supply imbalance, historically low interest rates and the economic and growth dynamics Arizona has to offer, the residential market has remained strong during the pandemic and should continue into the future,” says Mike Brown, Arizona market president for WaFd Bank. “There remains a significant amount of demand and appears some buyers may be returning to market seeking a change to their current quality of life. Evidence of this was a June that saw sales of newly built 106

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Mike Brown

Brent Cannon

Neal Crapo

Don Garner

Jim Glassman

Kyle Kennedy

Don Pearson

Seth Philbin

Josh Shade

homes rise faster than any month since 2005. Multifamily has remained strong in both occupancies and collections, though as the government assistance may subside, there could be some effect. The single-family rental market is one asset class that has been seen as COVID-friendly and thus a number of institutional investors and developers are entering the space. Going forward, we will continue to focus on the migration trends that will effect the momentum of all the aforementioned residential components.” Is full recovery close? “Generally, banks mirror the broader economic markets,” says Neal Crapo, Wells Fargo’s Commercial Banking Division executive for the Southwest. “According to the Wells Fargo Securities Economic Group’s October forecast, we’re looking at a full recovery by mid-2021, anticipating that the economy will crest above its pre-recession peak in the third quarter of 2021. The report also notes that while consumer spending will continue, albeit at a slower pace, pent up cap-ex spending is expected to give the economy a lift.”

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SAVING IN

TIMES OF UNCERTAINTY Making sense of dollars and cents amid the pandemic By ALISON BAILIN BATZ

ewind 10 years to 2010. Seems like a lifetime ago, right? But during that time, Arizona like much of the country, was in the midst of the Great Recession. But the impact here was felt even harder than nearly any other state nationwide. I know, I would rather forget it, too. Though for far different reasons, this year has rivaled (many may say topped) the most trying of times; even those during the recession. As with then, one of the last things on anyone’s mind is saving. But business leaders, heads of household and investors of every shape and size would be smart to continue on a disciplined path toward building your nest egg for the future. But with so many uncertainties, is this really the time? Here are some tips from local experts on the do’s and don’ts of saving (and when to spend), even during a pandemic: “If you haven’t already done this, look hard at your monthly spending to see what your bare bones budget really is. Once that is established, verify you have six months of that tight budget saved,” says Janenne Lackey, CFP, financial advisor with Wilde Wealth Management Group. Lackey also suggests setting aside some money, earmarked for investment opportunities when they present themselves. “It is important to earmark funds and assign savings for your future goals,” says Lackey. “Otherwise, when extra cash just sits there in savings, it may become too tempting not to spend it.” Kim Dees, senior vice president at WaFd Bank Arizona, echoes Lackey’s statements and reiterates the importance of a true emergency fund. “Do you have one? If not, start one now,” says Dees. “And if you do have one, stop, breathe and think before pulling out money. While that is what it is there for, define what truly is an emergency for you or your family and make a rule about withdrawals. For example, if you’ve been working from home and it’s made you want to re-model certain rooms; that’s great. But is that really a good enough reason to touch emergency funds?” Also, advises Dees, maintain your credit. “It can be difficult to decide what bills to pay when funds are short. Be proactive by reaching out to creditors to learn about

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payment deferments or reducing your minimum payments due. Ask the question as to how this is reported to the credit bureaus as well. Most creditors are willing to work with you before it becomes a problem,” says Dees. Marcus E. Ortega, ChFC, RFC, chief executive officer of Mosaic Financial Associates, adds that if absolutely necessary, you can reduce or even stop making your regular investments to such things as 401k, Roth IRA and 529 Plan to provide you with a little extra cash on a short-term basis. “A chief reason to do this, if needed, is so that you have the money to use now versus accessing your investments and avoiding paying early withdrawal taxes, ” says Ortega. “Be aware, though, that when the time of uncertainty passes, you need to adjust back and play catchup where you can. Resume regular investments. Increase your contribution to your 401K, reallocate money to your Roth or your 529 plan to make up for the shortterm loss.” Ortega notes that it may seem tempting, but do not immediately look to access the funds in your long-term retirement accounts just because the government has waived the early withdrawal penalty. “Just because the penalty itself is waived does not mean this is free money,” says Ortega. “Besides ordinary income taxes on the distributed amount – unless this is a Roth – the opportunity cost could be substantial, especially if the withdrawal is taken out during a low point in the market.” Paul Rizzo, president of Rizzo Financial Group, has one very big way to save some funds without turning to your long-term investments: assess all those subscriptions and services. “Let’s call this a recurring services audit,” says Rizzo. “To do this, review your bank statement and credit card statements for any recurring charges first. If you are the head of your household, do this for the entire family.” What are recurring charges? This could range from gym memberships to coffee subscriptions to even cable or streaming services, according to Rizzo. Maybe even cloud storage or food delivery programs? “Subscription services, although by themselves seemingly

insignificant, can add up to several thousand dollars a year. Reassess the value they bring and cancel services no longer being used,” says Rizzo. “Some business may also allow for a hold on services and fees as well.” But one important thing to note: don’t hold off or cancel everything, especially when it comes to you or your loved one’s health. “Have coverage for preventive care?” says Jolean Fleck, vice president of people and organizational development at Delta Dental of Arizona. “Use it. Even if you’re busy. Especially if you’re busy, in fact. Taking advantage of regular, routine health benefits that are already included in your medical or dental plans can actually save you thousands of dollars – and maybe your life – in the long term.” For example, says Fleck, through routine screenings, dentists can detect diabetes and heart disease simply by looking in your mouth. During routine dental appointments, dentists will do a thorough exam to look for these conditions and will screen for such things as oral cancer or other irregularities with the goal of early detection. “This can help lower medical costs by increasing treatment options and improving outcomes,” says Fleck. Also, consider all options when it comes to care, especially if you are approaching 65. “If you are 65 or older, now through December 7 is Medicare open enrollment. There are free counselors and companies available to help determine the best plan for you,” says David Luna, co-founder of Connie Health. “For example, if you are on a Medicare Supplement plan, switching to a Medicare Advantage PPO plan can potentially save you thousands of dollars on premiums and get you extra benefits not covered by Medicare alone such as Dental, Vision, Hearing and more. Some plans even offer gym memberships, prescription savings and more.” There are a variety of additional resources available. Visit 211arizona. org or arizonatogether.org for resources from finding a food bank location to housing support.

Kim Dees

Jolean Fleck

Janenne Lackey

David Luna

Marcus E. Ortega

Paul Rizzo

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HOW TO MANAGE CASH FLOW IN UNCERTAIN TIMES

Rob Schwister Banking

he coronavirus pandemic has forced many businesses to reevaluate their business models, assets, and goals for success. While some industries have searched out new ideas to stay afloat, others have been slammed with unanticipated demand. Challenging times present opportunities to reevaluate your business practices and implement strategies to support your business health for the long term. Understanding where your business stands and what resources are available to you can help you make informed decisions to maintain and grow your business. As many businesses anticipate ongoing uncertainty, there has never been a better time to develop or reevaluate best practices for managing cash flow. Your financial advisor can help you identify the best plan for your unique business, but here are a few basic tips to get started: • Start making cash flow projections. If your business philosophy has been to go with the flow from day to day, making projections might initially seem cumbersome and unnecessary. But as you get into the practice of making projections, you may uncover previously unnoticed efficiencies that improve your profitability or enable growth. Projections can also

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help identify opportunities to decrease expenses during difficult times. Budgeting is critical to understanding your operating liquidity. Planning for and managing the timing of cash outlays and inflows is as important as managing profit margins. It takes practice and experience to make good projections — don’t hesitate to ask for help. • Understand and utilize your assets. Inventory, equipment, accounts receivable, and other working assets may qualify your business for credit or loans to help survive downtimes. When seeking capital for assets, be prepared to explain your plan to use capital wisely and repay providers through enhanced operating cash flow and profitability. Keep good records and consult with your advisor before deciding how to address your financial need. • Build solid credit practices. During times of economic uncertainty, vendors or suppliers may seek greater assurances of your ability to pay before extending credit. Some may begin requiring upfront payments. Make your business a better credit risk by building solid credit references, maintaining organized and timely financial reporting, and developing strong relationships with your business partners.

• Rethink traditional expenses. The pandemic response has shifted the way many businesses function at the basic level. Some have learned they can maintain productivity in a remote working environment, potentially lessening their real estate requirements. Others have reconfigured their business models and require different spaces and resources than before. Investments in robotics and automation that seemed unnecessary pre-pandemic may now make sense from economic and public health perspectives. By reevaluating your basic business expenses, you may identify new opportunities to improve cash flow and productivity. Cash flow management requires an effective combination of finance, business strategy, accounting, legal considerations and operations. It’s difficult to be an expert in all of those areas. Good leaders focus on how they can pivot to weather and even succeed in trying times, then surround themselves with specialists they can trust in other areas. Rob Schwister is Phoenix metro market president for Alerus. He is also a member of the board of directors for the Arizona Bankers Association.

GARDEN ART

AZ TOTEM ART aztotemart.com | 602.677.5999 View more than 25 studio art pieces on site By Appointment Only AB | November - December 2020 111

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THE 7TH ANNUAL SRP

AWARDS

HONORING THE CHAMPIONS OF ENERGY EFFICIENCY AWARDS Over the years, SRP has worked diligently to develop a portfolio of energy efficiency programs that can help our customers save money and meet their sustainability goals. In 2014, we created the SRP Champions of Energy Efficiency Awards to recognize SRP business customers that were making great strides in the way of energy efficiency.

2020 SRP CHAMPIONS OF ENERGY EFFICIENCY AWARDS

This year, we are pleased to honor 13 Valley businesses that have achieved significant energy savings by adopting energy efficient and emission-reducing technologies. For the first time, we are also recognizing electric technology projects. In the coming years, SRP will continue to highlight customers who tackle a wider range of sustainability projects to reduce emissions within our community.

OUTSTANDING EFFICIENCY:

As local sustainability efforts evolve, SRP is proud to recognize those companies and organizations that are leading the way.

Fountain Hills Presbyterian Church

Thank you to all of this yearâ&#x20AC;&#x2122;s nominees and congratulations to our 2020 Champions of Energy Efficiency!

OUTSTANDING EFFICIENCY:

QuikTrip Corporation OUTSTANDING EFFICIENCY:

PAC Worldwide Ascension Roman Catholic Parish, Fountain Hills OUTSTANDING ACHIEVEMENT:

Roosevelt School District No. 66 OUTSTANDING ACHIEVEMENT:

dormakaba USA Inc. OUTSTANDING ACHIEVEMENT:

OUTSTANDING ACHIEVEMENT:

Desert Diamond Casino West Valley EXCELLENCE IN INNOVATION:

Banner Health EXCELLENCE IN INNOVATION:

Fellowship Square Mesa EXCELLENCE IN SUSTAINABILITY:

Amazon.com MUNICIPALITY PARTNER OF THE YEAR:

City of Mesa PEAK REDUCTION:

Tolleson Union High School District #214 SUSTAINED EXCELLENCE:

Albertsons Companies, Inc.

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