June 2016 issue on In Business Magazine

JUNE 2016

How to Prepare for DOL’s New Overtime Rules

Remaking Economic Development

What Your

‘About Us’

Page Reveals

Beware

Online Loans Special Section:

Embracing a Broader Vision

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JUNE 2016

COVER STORY

26

Remaking Economic Development: Embracing a Broader Vision

Amy Liu presents an extensive study by The Brookings Institution that underscores shortcomings of the traditional approach and highlights successful emerging strategies.

FEATURE

32

Faces Matter

Focusing on an often overlooked webpage, Kangelon “Kay” Dexter discusses what a website’s “About Us” page really says about a company.

DEPARTMENTS

11

Guest Editor

Christine Mackay, community and economic development director with the City of Phoenix, introduces the “Economic Development” issue.

12 PARTNER SECTION

Feedback

Noted business leaders Julie Brassell, Brian Cassidy and James Lundy respond to In Business Magazine’s burning business question of the month.

GLOBAL CHAMBER® Global Chamber® Events

SUMMER 2016

phoenix.globalchamber.org/events

Global Chamber® Phoenix

Monday, June 20 “Lunch and Learn on Global Training” Gloria Peterson shares her insights.

11:30am Arizona RSVP to events@globalchamber.org Global Chamber®

Tuesday, June 28 “Keep All Your International Branches Strong” Virtual event tapping into our members’ expertise.

2:00pm to 3:00pm RSVP to events@globalchamber.org

SPOTLIGHT EVENT Global Chamber® Phoenix

Friday, July 29 “Youth Ambassador Program” Annual event with Phoenix Sister Cities 8:00am to 10:00am RSVP to events@globalchamber.org Global Chamber® Phoenix

Wednesday, August 10 “Women in Global Leadership” Hosted by Squire Patton Boggs.

8am to 10am RSVP to events@globalchamber.org

Doug Bruhnke, CEO/Founder at Global Chamber®

Congratulations City of Phoenix and Team EXOS! This year there are two recipients for the President’s E Award for exporting that are based in the Phoenix area, and both are Global Chamber® members.

The President’s “E” Award was initiated in 1962 by President John F. Kennedy to recognize excellence by companies and municipalities for contributions to U.S. exporting.

Phoenix is the first city in 13 years to win the award. The reasons cited: • Phoenix businesses led the nation in increased exports value in 2015 over 2014.

• Phoenix exporters have a four-year trend through 2015 of double-digit annual growth.

• Phoenix and other Arizona businesses increased the export share of Arizona’s gross domestic product from 7.5 percent to 9 percent last year. That’s still below the national average of 14%.

Inside this section

2

Too Many Politicians Getting It Wrong on Trade

3

A New View of the World: Women in Global Business

Arizona Will Benefit from the 4 Trans-Pacific Partnership Agreement Why San Jose? (Costa Rica) Arizona-Mexico Trade Is Growing, and 5 Creates Jobs on Both Sides of the Border

6 Member News 7 News from Global Chamber

®

“Exporting is crucial to the success of the businesses we work with,” said Mayor Greg Stanton. “Every day, we see the growth of Phoenix businesses, due in large part to exporting. This growth has enabled our Phoenix businesses to add jobs and support their local communities as they expand their bottom line.”

Team EXOS has had sustained and rapid growth in foreign markets. Marty Weems at EXOS recently participated in a Global Chamber virtual event, and his comments were shared online on our Phoenix blog.

Global Chamber® globalchamber.org

Growing Your Small Business Globally LeAnn Young, Executive Director, Global Chamber® Baltimore

With the vast resources available including the services of Global Chamber®, exporting abroad is no longer just for the big corporations. An increasing number of small U.S. businesses are growing by finding key markets outside the U.S. The following are a few items a small business should keep in mind.

Demand: More than 95 percent of the world’s population and 70 percent of the world’s purchasing power is located outside of the United States.

Profitability: Exporting can be profitable for businesses of all sizes. On average, sales grow Continued on page 2

1

Global Chamber

SPECIAL SECTION

“Workforce Training,” “Streamline Your Workflow,” “Job Relocation Tool,” “Video Marketing as ROI,” “The True Cost of Online Loans,” “Good Buy, Canada,” “Video West Stages New Site,” “STEM on the Raceway” and “Hygiene as Opportunity”

18

Laurie Brednich HR Company Store, LLC

Jean Ann Morris Healthcare Professional Group

Sandi Ernst Perez Delta Dental of Arizona

Kate Wells Children’s Museum of Phoenix

Women of Achievemnet

Technology

“New Platform for CRE Listings,” “Interactive Video Quizzing” and “Microsoft Audits – Why Be Prepared?”

20 Featuring Deborah Bateman National Bank of Arizona

49

Briefs

Mayor Stanton (middle) with Hank Marshall (right) and Commerce Secretary Prtizker (left)

GlobalChamber.org

41

14

Two Phoenix-area Exporters Win President’s E Award

From the Top

Heidi Jannenga took WebPT’s idea from serendipity to national recognition.

24

Legal

Local attorney discusses how employers can prepare for the new overtime rules from the U.S. Department of Labor.

33

Books

New releases give fresh insights on business thinking.

34

Nonprofit

Executives sitting on nonprofit boards are uniquely suited to help reframe perceptions about nonprofit overhead costs.

38

Assets

2016 Tesla X: P90D PLUS: Take coffee on the go with the right mug.

40

Power Lunch

The Herb Box PLUS: The gourmet burger joint has become its own genre.

66

Roundtable

Wikipedia founder Jimmy Wales shares thoughts on how social media is changing the world.

Healthcare

“New Facility for Behavioral Health,” “New Hospice Care” and “Zika Virus and the Workplace: A Primer for Arizona Businesses”

22

23

By the Numbers

Enterprise companies voice mixed feelings about cloud security.

ON THE AGENDA

35

Spotlight

Global Links Business Outlook Luncheon — Phoenix Sister Cities Collaboration — Empowered PhXX

36

Calendar

Business events throughout the Valley

JUNE 20 1 6

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June 2016

LAW THAT LEADS®

ACCELERATES NEW VENTURES

In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

PARTNER ORGANIZATIONS Kristen Merrifield, CEO Alliance of Arizona Nonprofits (602) 279-2966 www.arizonanonprofits.org

BUSINESS LAWYERS. POWERFUL EXPERIENCE. INNOVATIVE STRATEGIES. At Fennemore Craig, we help emerging businesses build strong companies, commercialize new technologies and secure successful futures. With nearly 200 skilled and savvy attorneys, our clients have the edge they need from the start.

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Software, Internet & E-commerce Life Science & Biotech Health Care Renewable Energy & Clean-Tech Energy & Natural Resources Aviation, Aerospace & Autonomous Systems

Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org

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Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org Nancy Sanders, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org

Read conference calls in real time.

Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities.

The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.

ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com Arizona Hispanic Chamber of Commerce azhcc.com The Black Chamber of Arizona phoenixblackchamber.com Chandler Chamber of Commerce chandlerchamber.com

Now, Deaf and hard of hearing participants can be actively involved in multi-party calls. Relay Conference Captioning (RCC) is free to Arizonans, streaming live text to any Internet-connected computer, tablet or mobile device worldwide.

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INBUSINESSMAG.COM

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Liquid Capital - The A/R Funding Alternative Liquid Capital Factoring At one point or another, every business is confronted with cash flow problems. When the traditional Every eventually the the needprocess for financing.

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June 2016

VOL. 7, NO. 6

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers Shayna Balch

Jerry Ernst Brett Helgeson Mike Hunter Amy Liu Chris M. Mason Sarah Patrick Richard Tollefson ADVERTISING

Operations Louise Ferrari

Business Development Louise Ferrari

Steve Kulick Maria Mabek Sara June Kelly Richards Cami Shore Events Amy Corben More: Visit your one-stop resource for everything business at www.inbusinessmag.com. For a full monthly calendar of business-related events, please visit our website.

Inform Us: Send press releases and your editorial ideas to editor@inbusinessmag.com.

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Vol. 7, No. 6. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You June send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope.

InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/ or financial professional. Š 2016 InMedia Company, LLC. All rights reserved.

No part of this magazine June be reproduced or transmitted in any form or by any means without written permission by the publisher.

INBUSINESSMAG.COM

CHRISTINE MACKAY, CITY OF PHOENIX

Economic Development Goes Holistic Christine Mackay is the community and economic development director with the City of Phoenix. She is responsible for leading the business development team, including the areas of business attraction, business retention and expansion, small business and entrepreneurial efforts, downtown development, international, retail and workforce development.

During the past five years, she has helped locate or expand more than 180 companies into the region, brought more than 26,000 jobs, added nearly 5 million square feet to the industrial/office base, and brought more than $7 billion in capital investment into the community.

In 2016, Mackay was named the Economic Developer of the Year by the Arizona Association for Economic Development.

What does successful economic development look like for Arizona? The state’s early economy was built on the famous “5 C’s”: copper, cattle, cotton, citrus and climate. In the post-5 C’s era, other vital industries have come to the fore, such as biomedicine and technology. Much of this is concentrated in the Greater Phoenix area.

The region is moving into an innovation-based and well-diversified economy. Decades of tremendous residential growth left the region vulnerable during the Great Recession, but we have come out at the other end in a much better place. With its robust industrial and office base, Metro Phoenix is attracting high-wage jobs across all sectors, including Manufacturing, Biosciences and Healthcare, Aerospace and Defense, Advanced Business Services, Information Technology and Entrepreneurship. These companies are tapping into our educated and skilled workforce and the region’s competitive appeal on a number of fronts.

Economic development, however, is more than just getting high-profile companies to bring jobs to the Phoenix metropolitan area. Long-term economic growth requires a regional approach and with that, as a report from The Brookings Institution spells out, “blending programs, working across systems, forging new partnerships, and working with both long-term goals and shorter-term metrics for success.” Detailing the role of both private-sector and civics activity, The Brookings Institution’s report serves as the basis for this issue’s cover story.

In today’s business world, as consumers’ actions are increasingly influenced by a “socially aware” agenda, diversity has become more than a buzzword. The Enterprise feature suggests businesses look at what their public faces — their websites — tell consumers about their company.

This issue’s Legal article jumps right in on today’s hot topic of overtime pay, as a local attorney discusses the newly released regulations from the U.S. Department of Labor on overtime compensation — involving much more than simply salary-level adjustment — and how employers can prepare for the new overtime rules.

And in the Roundtable feature, In Business Magazine editor RaeAnne Marsh shares insights from her conversation with Wikipedia founder Jimmy Wales on how open-source, open-content technology is changing the face of the Internet.

Once again, In Business Magazine brings together articles on a variety of topics of import to the broad range of businesses in our community. I’m pleased to be part of presenting this edition to you, and I hope you enjoy the read.

Sincerely,

Christine Mackay Director • Community and Economic Development • City of Phoenix

Arizona Can! So many years of talk and OK growth. But what about incredible growth? Sure, we do better than most states, but we always seem to have to attribute it to our climate and the fact that people want to live here. What about truly empowering our economy through purchase power, educating employers and thinking about what we have here that is so worth building? That is true innovation.

Yes, we’re already seeing benefit in our potential growth in trade, corporations relocating here and a strong startup community, but

Let us know what you think of this issue of In Business Magazine. Email our publisher at feedback@inbusinessmag.com.

what if we were really innovative and took stock of the tremendous opportunity already here, and collaborated? (See our cover story and other sections of this issue to see what I mean.)

Thank you to Christine Mackay for all the great work on this issue and the awesome work she is doing for the City of Phoenix.

We are in good hands there. There is much to be done, as she would tell you, but we all know how poised we are, collectively, to succeed in this and be seen as the economic leader. —Rick McCartney, Publisher

CONNECT WITH US: Story Ideas/PR: editor@ inbusinessmag.com Business Events/ Connections: businessevents@ inbusinessmag.com Marketing/Exposure: advertise@ inbusinessmag.com Visit us online at www.inbusinessmag.com

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JUNE 20 1 6

INBUSINESSMAG.COM

VALLEY LEADERS SOUND OFF

Q:

FEEDBACK QUESTION: Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessmag.com

For all past Feedbacks go online to inbusinessmag.com and see what Valley executives think on various business topics.

Economic development is a community-wide enterprise. This issue’s cover story deals with the importance of factors beyond just attracting new business. How does your organization contribute to the bigger picture of economic development for our region?

JULIE BRASSELL

BRIAN CASSIDY, AIA

JAMES (JIM) LUNDY

Executive Director Business United for Scottsdale Schools Sector: Nonprofit

Chairman Warehouse District Council Sector: Economic Development

Chief Executive Officer Alliance Bank of Arizona Sector: Banking

We can help our local business community to recognize students as our best natural resource; they are the incoming workforce that will grow our economy. From the Scottsdale Chamber of Commerce Foundation’s 501.c.3 organization, our Business United for Scottsdale Schools (BUSS) workforce development initiative is providing methods for local industry to support our community college and school district.

We will cultivate, develop and retain the talent we have here to expand upon and attract quality firms and jobs.

Locally, high-paying occupations in our identified BUSS “education to career” pathways are proving to be our largest employment segments and, based on the economic data, are leading in predicted growth. BUSS is focusing on our prominent Scottsdale employers for their support and engagement in developing higher skills in our incoming workforce: advancing industry support for internships, mentorships, employment and job shadowing; providing direct involvement programmatically, such as STEM/STEAM programs, robotics and computer coding programs.

We need innovation to improve education, as economic prosperity is directly linked to our schools since students are the future of Arizona’s workforce.

The Warehouse District Council in downtown Phoenix, with more than 40 members representing businesses, property owners, residents and advocates, was formed in 2014 to promote, preserve, unite and plan for the future of the Valley’s most unique collection of character warehouses that were the backbone of Phoenix commerce in the early days of the city. The council advocates for the preservation of the existing structures in the area, and assists building owners and potential buyers in understanding how to preserve and/or adaptively reuse these structures for new creative purposes.

The council works with the City of Phoenix’s elected leaders and department heads to find workable solutions for zoning, parking, infrastructure and building code challenges that are common due the age of these structures. The council supports responsible infill opportunities that are abundant in the area, and will soon actively work with the city and Valley Metro to bring the next light rail line segment through the district as a connector and economic engine, and not as a barrier.

A key economic driver and thought leader from our inception, Alliance Bank of Arizona is one of the banking divisions of Western Alliance Bank, the state’s largest locally headquartered business bank. We play a critical role in financing business expansion, with a specialized focus on affordable housing and other community support initiatives.

Our greatest contribution to economic development comes through our advocacy for education. Arizona’s relative per capita GDP has been falling, alongside per student spending on education at all levels for 38 years — so we consistently come up short in attracting and growing higher-paying jobs. Investing in education to create a workforce strong in critical quantitative and problem solving skills is key to Arizona’s future. The bank’s donation dollars are heavily skewed toward organizations that work to improve our educational outcomes from K-12 to community colleges and universities. As supporters of the recently passed Proposition 123, we advocate that businesses at all levels be open to collaborating with local and state government to initiate reforms that will better prepare students for a rapidly changing economic landscape.

Warehouse District Council phxwd.com

Alliance Bank of Arizona bitly.com/alliancebank

Brian Cassidy — who is also president and CEO of CCBG Architects — is a passionate advocate for creating livable, walkable, sustainable and exciting urban places that will continue attracting more people to move to central Phoenix and other urban cores. He has contributed to more than 10,000 multifamily units in the western United States and is working on more than a dozen infill projects in Phoenix.

James (Jim) Lundy is founding CEO of Alliance Bank of Arizona, established in 2003. He has worked in a variety of commercial banking positions in Phoenix since 1984. Lundy earned a Bachelor of Arts and Juris Doctor with distinction from the University of Arizona. He is immediate past chair and current board member of the Greater Phoenix Economic Council, with extensive service in other professional and community organizations.

Business United for Scottsdale Schools bussfoundation.org Passionate about promoting awareness of the importance education plays in driving economic development, Julie Brassell works in partnership with BUSS board members from local government and civic organizations and area business leaders.

JUNE 20 1 6

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QUICK AND TO THE POINT

BYTES

BY MIKE HUNTER

Workforce Training GamEffective is a Workforce Gamification platform. It helps companies set and manage personalized benchmarks for performance, learning and development, driving employee performance, motivation and learning. Managers set goals, desired behaviors, benchmarks or learning sequences.

They can also set next-best-action sequences for employees. Employees use the platform to track their performance, see their next best action, get feedback or coaching, or learn. gameffective.com

Streamline Your Workflow Scottsdale-based Swiftpage, a leading CRM software provider, has released a new Act! Outlook Add-In on the Microsoft Office Store. With this new add-in, Outlook and Act! users will be able to streamline workflow, save time and ensure they maintain a complete record of all customer and prospect interactions, and make use of a host of other useful features. swiftpage.com

Job Relocation Tool FlyingYak, an informational and social site that provides data on cost-of-living and lifestyle factors for more than 1,000 cities globally with more than 235 data points, all while connecting peers, is a great tool for those considering relocating their career to find more information on what it is like to live and work in these cities. flyingyak.com

The True Cost of Online Loans It’s a common situation. A business owner needed a loan to grow his business, and, since banks require a substantial amount of paperwork the borrower didn’t have time to produce, he went with an online quick loan provider.

The loan application took only about 20 minutes, with minimal fuss and paperwork.

The borrower wasn’t a fan of the automatic payments, but it reduced the interest rate and the lender even approved the borrower for a bigger loan than was initially requested. He signed the contract and spent the funds.

Trouble hit like an oncoming haboob.

Payments were pulled from the borrower’s bank account once a week, not once a month, and the lender had full access to the borrower’s bank account. The borrower couldn’t stop payments without changing checking accounts and violating the contract he hadn’t read closely enough, and the lender wasn’t willing to change the terms — even though they weren’t the same terms the borrower had thought he was getting.

It comes as a nasty surprise to many that online lenders aren’t held to the same laws, regulations and compliance oversight that banks follow.

Online lenders aren’t banks, so Truth in Lending disclosure laws designed to protect borrowers don’t apply. They have zero government regulation and compliance oversight to keep their interest rates and fees reasonable. Plus, if a borrower doesn’t read the contract closely enough or notice when it omits critical details, only to find out later that its terms don’t match his expectations, there’s little recourse available.

Regulation is coming but, until that happens, abuse is high. Online loans might be the path of least resistance, but that convenience has a cost.

Additionally, since most online loan approvals are software-based decisions with no analytics

of the business’s viability and no customer relationship, the borrower pays higher rates to cover the lender’s high volume of losses — sometimes as high as 100 percent, hidden within the contract fine print.

Trust is dangerous in an online world where customers are just a faceless transaction.

There’s comfort and protection knowing banks follow specific rules, and are held closely to standards with pathways to rectify problems.

Is a faster loan process worth giving that up?

Local banks might require more resources and a bit more time, but the value gained is worth every minute spent. Proper underwriting is a chance for a banker to get to know the borrower, delivering something called “right finance.” Only a banker can help someone understand if a loan is enough to help that business owner succeed or something that will push the business into bankruptcy, and match capital to the business owner’s goal in a way that makes the most sense. Good bankers consider total resources, not just the dollar amount being funded.

Even if someone isn’t ready to seek a loan quite yet, creating a trustworthy banking relationship gives a borrower that much-needed financial coach in his or her corner, poised to help whenever needed. —Jerry Ernst, president of Horizon Community Bank, a locally owned and operated bank recently ranked as an Arizona Top 10 Lender by the U.S. Small Business Administration.

Horizon Community Bank horizoncommunitybank.com

VISUALIZE

Video Marketing as ROI Marketing is a tough business, and Manley Films & Media has created Manley Manuals, videos that will clue business owners to the importance of good marketing, how to spend their money, and the value of a visual calling card for their company or services. Learn to create a budget, determine which tactics are the best fit, and implement proven strategies. Manley Films & Media, a full-service video production and marketing agency, includes expert storytellers, filmmakers, writers, designers and musicians who lend their expertise to those who are interested in this medium. manleymanuals.com

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Learn about SBA’s lending role and how to prepare a request for capital. Attend a free monthly clinic to understand credit requirements, interest rates, collateral terms and amounts available. Learn how to approach a lender and improve your chances of success. sba.gov/offices/district/az/phoenix

QUICK AND TO THE POINT

GET REAL

Good Buy, Canada Real estate in the Valley of the Sun, and Arizona generally, continues to attract investment from Canadians. “Phoenix is a destination of choice — one of the top three Sunbelt states for Canadians to visit or retire to,” says Alain Forget, director of sales and business development for RBC Bank, a wholly-owned subsidiary of the Royal Bank of Canada, which provides U.S. banking solutions to RBC consumer clients with a cross-border lifestyle, including snowbirds, expats, students, businesses and more. Forget notes he has seen “an increasing demand for our U.S. mortgages.”

Pointing out that the currency exchange — currently 32 to 34 percent — effectively increases a property’s purchase price, he explains RBC Bank helps by providing a U.S. mortgage. “We can go up to 80 percent loan to value for a [Canadian’s] second home.”

Four to five years ago, Forget relates, it was a “perfect storm” for Canadians to buy, with the Canadian dollar at par with the U.S. dollar. But even today, property in Phoenix still comes in at a lower price point than its equivalent in Canada. “They can get more real estate [in Phoenix] even with the weakened Canadian dollar,” he says. Another plus for the Phoenix real estate market, he notes, is the good selection in a wide range of price points. rbcbank.com

Video West Stages New Site LGE Design Build has completed construction on Video West Inc.’s new 40,000-squarefoot office/warehouse headquarters in Phoenix.

Video West Inc., a national audio visual rental and

BY RAEANNE MARSH

STEM on the Raceway Getting into summer camps seemed an attractive business move for Octane Raceway, but General Manager JP Mullan says the company wanted to offer a program with quality educational value. Brought together with Engineering for Kids, in the East Valley, they partnered to “come up with a one-of-a-kind inspiring summer camp” that, says Mullan, they hoped would be equally attractive to kids and their parents, and launched it last month.

The program is built around STEM education.

Summer camps are week-long classes that include exploring an aspect of engineering — such as automobile propulsion — and put it to practical application in cart racing.

Classes this summer include “Momentum Madness,” in which students will build dragsters

“There are business opportunities up and down every street,” says Scott Sheldon, who recently purchased an Enviro-Master franchise that launched the hygiene company’s presence in Arizona. Restaurants, perhaps not surprisingly, are a big part of his business, but he points out, “Anybody who has a public restroom needs this service.”

The distinction between a hygiene company and a janitorial service is important. Explains Sheldon, “the janitorial service or in-house employee does the day-to-day upkeep. We do what they can’t do.” One aspect, which has been getting attention of late, is the “flush effect” that disperses water droplets up to 20 feet (“and it’s not clean water,” Sheldon

near Loop 202 and 52nd Street and also Phoenix Sky Harbor International Airport, doubling the size of its former space. The new building provides expedited shipping and receiving capabilities; additional office space for its growing workforce of 65 employees; and a 2,000-square-foot, state-of-the-art demo room.

“Since our last move in 2003, we have doubled our number of employees and significantly increased our equipment inventory. This current move is definitely overdue,” says Jack Waitkus, Video West Inc. president. lgedesignbuild.com videowestinc.com

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Octane Raceway octaneraceway.com

Hygiene as Opportunity

staging company, moved from Tempe to its new location

JUNE 20 1 6

from a standard dragster template and use the engineering design process to run a series of tests that teach laws of motion, and “Hydraulic Machines,” dealing with machinery and tools that use liquid fluid power to do simple work.

Canadians, last year, invested $1.2 billion in the U.S. real estate market. According to Alain Forget, director of sales and business development for RBC Bank, they are the second-most important buyers (after China) for U.S. real estate.

observes), where they can stick to any touch point in the room. Enviro-Master, in addition to hands-on cleaning, fogs the room with a hospital-grade disinfectant. The service also uses a germicidal protectant that “creates a barrier on the fixture so things don’t adhere to it” — making it easier for the janitorial side of things to keep the room clean.

One aspect of the franchise that attracted him, Sheldon shares, is it is not sensitive to changes in technology — there’s no, “We’ll invent an app for that.” Additionally, EnviroMaster, recognized by Entrepreneur magazine as a Top New Franchise for 2015 and ranked No. 597 in the 2015 Inc. 5000 list of fastestgrowing private companies in America, has established a national account list through its franchise network that simplifies the process for a vendor of getting on board with a local location of a corporate account or national chain because, says Sheldon, “we’re already in their system.”

Enviro-Master of Phoenix phoenix.enviro-master.com

WE PUT SOME OF THE VALLEY’S TOP BUSINESS EXPERTS IN ONE PLACE. Business Resource Center. You need timely, relevant information to help you manage your business. But finding it can be a hassle. That’s why SRP has partnered with local business organizations to bring you professional insights on everything from marketing and human resources, to financing and forecasting.

All in one place. All from experts in their fields. SRP is happy to provide this free service because what’s good for business is good for all of us. Learn more at srpbizresource.com.

“Highest Customer Satisfaction with Business Electric Service in the West among Large Utilities” Salt River Project received the highest numerical score among 13 large utilities in the West in the J.D. Power 2016 Electric Utility Business Customer Satisfaction Study, based on 21,852 responses, and measures the experiences and perceptions of business customers surveyed March-November 2015. Your experiences may vary. Visit jdpower.com.

INNOVATIONS FOR BUSINESS

TECH NOTES

BY MIKE HUNTER

New Platform for CRE Listings Debuted last month, Scottsdalebased CRE Index is a national commercial real estate listing service that allows brokers to list properties for lease or sale, for any size asset.

The service offers listings that are free to discover and search.

Founded by local entrepreneur Stephen H. Brennen III, the new site features the key information needed for commercial real estate professionals, including property asset description, images, maps, an

Microsoft Audits – Why Be Prepared?

offering memorandum or brochure PDF, and cap rate of investment on applicable properties.

CREindex.com contains a platform for commercial real estate attorneys to be marketed across the country, a key resource for commercial real estate professionals. It also offers a broker agent search of registered users and broker profiles. creindex.com

Interactive Video Quizzing Adoption of video as a primary tool for instructional content is increasing fast. Reflecting the growing need for richer interactions inside of videos and tighter integration of the video experience with feedback and assessment, Kaltura recently integrated an Interactive Video Quizzing tool into its platform.

This allows content creators with educational institutions, corporate training teams, and anyone else using videos for learning and training to define questions and responses that appear at designated points in a video experience, which can serve as an ungraded self-check for understanding, an assessment of understanding of video content, an assessment of mastery of a concept with video prompts, a survey tool to poll viewers, and a method to assess video quality. kaltura.com kaltura.org

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Businesses have to be accurate and diligent when it comes to accounting and tracking the revenue that flows through the organization, how it is used, assets purchased and profits made, for submittal to the IRS every year. If they don’t and the IRS decides to perform an audit, it can be expensive, painful and, in some cases, bring forth criminal challenges.

Just like tracking other assets, it is extremely important for business owners to keep track of their software, especially when there are legal compliance requirements that go along with the utilization of that software. Similar to IRS audits, if a software vendor desires to formally audit a business customer for compliance with its software license requirements, it can also be expensive, painful and, in some cases, bring forth criminal challenges.

In 2014, Microsoft started a widespread effort to audit businesses and confirm compliance with the utilization of its software. It’s a fact that the majority of businesses utilize Microsoft products, and, to do its best to enforce compliance, Microsoft tops the list of software manufacturers that perform audits. Any business that has purchased Microsoft software is a candidate for an audit.

Microsoft’s audit would start with a notice directly from Microsoft to the business in the form of a letter or email, potentially initiated by a preliminary phone call. The types of audits Microsoft performs are as follows: • Internal Self-Audit. The most common type of audit, this is when Microsoft requests a self-audit and verification via an “Estimated License Ownership Document” that it provides.

• Software Assets Management (SAM).

This is also a self-assessment process, but a bit more formal than an internal self-audit. Microsoft is willing to use a SAM partner that it pays to assist in the process, or the audited business can obtain its own vendor assistance to help with the process, if desired.

• Legal Contracts and Compliance Audits (LLC). This audit is serious business and likely results from a company ignoring Microsoft’s audit requests or not providing the required information under the Self or SAM audits. Legal representation will likely be needed as the potential outcome can include penalties, fines and potential criminal prosecution if the audit were to turn up significant software noncompliance and software piracy issues.

A request from Microsoft for any of these audits should be taken seriously and responded to in a timely manner. When purchasing Microsoft or any other software, a business should always purchase through a trusted source or vendor, and keep receipts and inventory of the software it has purchased. A simple excel spreadsheet works great for software inventory tracking.

At the end of the day, if there are any discrepancies in the quantities or types of Microsoft software being utilized, it is required that the business purchase the licenses that should have been in place all along.

—Brett Helgeson, the president of Phoenix-based Adopt Technologies, a provider of high-quality cloud and traditional IT services to small and medium-sized businesses.

Adopt Technologies adopttechnologies.com

An information technology audit, or information systems audit, is an examination of the management controls within an IT infrastructure. The evaluation of obtained evidence determines if the information systems are safeguarding assets, maintaining data integrity, and operating effectively to achieve the organization’s goals or objectives.

Municipal Bonds — A Core Holding for Income Investors Morgan Stanley has a dedicated team of municipal bond specialists, strategists, researchers and credit analysts who can help your Financial Advisor develop customized strategies tailored to your financial goals. Our services and products include: Michael Vantusko Financial Advisor 14850 N Scottsdale Road, 6th Floor Scottsdale, AZ 85254 480-368-6588 michael.vantusko@morganstanley.com morganstanleyfa.com/michael.vantusko

• Complimentary municipal bond portfolio review1 • Actionable buy and sell ideas • Access to Morgan Stanley’s wealth management and institutional municipal bond trading desks • Investment strategy and research publications Contact your Morgan Stanley Financial Advisor to learn more about how Morgan Stanley can help develop an investment program that is centered on you.

Reviews are subject to portfolio size minimums.

Interest on municipal bonds is generally exempt from federal income tax. However, some bonds may be subject to the Alternative Minimum Tax (AMT). Typically, state tax-exemption applies if securities are issued within one’s state of residence and if applicable, local tax-exemption typically applies if securities are issued within one’s city of residence.

The tax-exempt status of municipal securities may be changed by legislative process, which could affect their value and marketability.

The value of fixed income investments will fluctuate and, upon a sale, may be worth more or less than their original cost or maturity value.

1

© 2014 Morgan Stanley Smith Barney LLC. Member SIPC.

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YOUR BENEFIT IN BUSINESS

WELL WELL WELL

BY MIKE HUNTER

New Facility for Behavioral Health Copper Springs Behavioral Health Hospital opened last month in Avondale to treat those who are struggling with mental health and addiction issues. Providing comprehensive inpatient and outpatient services, Copper Springs focuses on delivering innovative and evidence-based treatment in a professional and compassionate environment that creates a foundation for long-term healing and recovery.

In announcing its opening, the hospital also shared that data from the American Foundation for Suicide Prevention shows Arizona’s suicide rate is 39 percent higher than the national average, at 17.1 suicides per 100,000 people.

The newly constructed, 72-bed facility offers secure, peaceful accommodations, including private courtyards, comfortable rooms and patient lounges. copperspringshealth.com

Zika Virus and the Workplace: A Primer for Arizona Businesses The World Health Organization (WHO) declared Zika virus an international “public health emergency.” And while Arizonans have found themselves immune from many of the previously issued health alerts, Zika is striking closer to home.

Currently, Zika is primarily concentrated in tropical and sub-tropical climates, and the concern is elevated in Arizona, especially among employers whose workforces travel for business. The latest statistics point to 82 travelassociated cases being reported in 21 states and the District of Columbia.

Although turning to technology, including videoconferencing and virtual meetings, can help, there are times when travel is unavoidable.

That’s when education becomes vital to managing concerns.

While the Centers for Disease Control suggests that women who are pregnant consider postponing travel to affected areas, it’s important for all employees required to travel to know about virus transmission, infection risk, protection measure, and refusal to travel.

EMPLOYEES AND TRAVEL TO ZIKA-INFECTED COUNTRIES

New Hospice Care Beech Medical Group, an integrated health solutions company based in Mesa, is expanding with the opening of an outpatient hospice division. The division is part of a new healthcare concept that provides comprehensive care, better communication among care providers, and improved outcomes — while reducing costs by not duplicating services.

“Healthcare models in the U.S. typically follow a method referred to as silos of care. In Europe, integrated care is more common and, I feel, much better,” says Beech CEO Michael Sumner, who brought here in 2009 a business model that had proven successful in the UK. “We consider this a hybrid of healthcare models.”

The hospice joins Beech’s existing home health, case management and home care divisions offering patients

Under Occupational Safety and Health Administration standards, employees can refuse to work only if they genuinely believe that imminent danger exists and a reasonable person would agree. Given the relatively low risk presented and means available for avoiding the risk, this standard would be difficult to meet, leaving employers with the right to discipline those who refuse travel. However, despite availability of reasonable precautions, a pregnant employee may have protection under OSHA. Employers cannot prevent employees from traveling. The U.S. Supreme Court offers legal guidance that employees must make their own health-related decisions. Even if an employee is pregnant, the employer must leave decisions regarding the welfare of future children to the parents after advising them about the risks and preventive measures that can be taken.

single-point coordination of care. beechcare.com

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According to a recently released Cigna survey among full-time and part-time employed Americans 18 years or older, more than 1.5 million suffered injuries or illnesses in 2014 that required absences from work.

INFECTED OR SYMPTOMATIC EMPLOYEES

Under the Americans with Disabilities Act, employers can require a medical evaluation only if it is job related and consistent with business necessity. Unless illness poses a direct threat, employers may not require medical exams or prohibit employees from working. Because public agencies have not required quarantine of individuals returning from affected areas, employers who impose restrictions expose themselves to a host of legal claims.

PERSONAL TRAVEL

Health emergencies often incite panic and fear. As such, employees may develop concerns related to co-workers returning to the workplace after personal travel to affected areas.

Employers cannot prevent employees from traveling to infected areas for personal reasons. Under the ADA, employees are not required to submit to a medical examination before returning to work nor be prohibited from returning unless there is reasonable belief, based on objective evidence, that their condition poses a “direct threat.” Since Zika is not transmitted through casual contact, this won’t apply in most workplaces.

As the situation evolves, questions about health and legal implications are being raised, especially in Arizona where our largest trading partner has been identified by WHO as an affected area. Mitigating fear through factual information and education will be imperative as employers manage operations during the outbreak.

—Shayna Balch, a partner in the Phoenix office of Fisher & Phillips LLP, representing employers in labor and employment litigation, employment discrimination and harassment, compliance audits and counselling, and employment policies and procedures.

Fisher & Phillips, LLP laborlawyers.com

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METRICS & MEASUREMENTS

Cloud Security – That Is the Question?

Enterprise companies voice mixed feelings about cloud security

by Sarah Patrick

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Sarah Patrick is a marketing analyst at Clutch, a research, ratings and reviews platform for B2B. She focuses on a variety of topics, including SEO, social media marketing, cloud computing and Business Intelligence data.

What are the top three tasks your company uses cloud computing to complete?

Tertiary Benefits

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increases the need for robust, proactive security measures.

“Enterprises realized they needed a different, more advanced approach to security,” says Linthicum. “If companies are going to put data and files in the public cloud, security needs to be systemic to everything they do.”

More than 60 percent of enterprises say that the cloud is more secure than older, legacy systems. But, there’s room for improvement. More than half of this sample still have doubts.

They say the cloud is somewhat more secure as opposed to much more secure than legacy systems.

Cloud security safeguards include strong perimeters and surveillance, controlled access to data, thorough and frequent auditing, and cyber security expertise.

“If you were to look at the skill set in a single organization and compare it to another organization that specializes in a specific solution, all things being equal, you would expect the specialized company to provide the best service. This is how it is with the cloud,” says Duane Tharpe, vice president of Technical Sales and Services at Cloud-Elements. “The cloud vendor will have good, if not better, security and support for security than an on-premise solution. Moving to the cloud would increase the company’s overall internal security.”

M

What are the top three benefits your company receives from using the cloud?

Da ta

The 2016 Enterprise Cloud Computing Survey found a relatively even split between enterprises hiring a professional external consulting firm (53 percent) and employing in-house IT staff (47 percent) to implement cloud infrastructure.

Advantages and disadvantages cut both ways: A consulting firm may bring a broader experience and expertise, and avoid the potential of being constrained by existing processes, but it’s vital that knowledge be transferred to the business’s internal staff.

Impressions of cloud security remain mixed. Medium and large enterprises in the United States say cloud security is both the primary benefit and most prevalent challenge of cloud computing, according to a survey conducted by Clutch, a leading B2B research firm.

Fear of the cloud arises from two main sources.

First, extensive media coverage of data breaches at Target and Home Depot and in Apple’s iCloud perpetuate the myth of cloud computing as a security risk. “I think what we’re seeing when it comes to the cloud and security is a bit of a myth that the cloud is less secure,” says David Linthicum, senior vice president of Cloud Technology Partners.

But Jason Reichl, CEO of GoNimbly, points out, “Many recent data breaches have been reported incorrectly. For example, the security breach at Target occurred because a vendor who had access to the company’s portal left a computer on and walked away.” In other words, media narratives ignore that most security breaches result from human error, not shortcomings in cloud security systems.

“No one was hacking the cloud,” Reichl continues. “It was human error, and the cloud cannot protect you from that.”

Second, moving data to the cloud shows the breadth of critical data an enterprise stores on the platform. Awareness of how much information needs to be protected and monitored

Source: clutch.co/cloud#survey

Clutch’s cloud computing survey included 300 IT professionals at medium and large enterprises in the U.S. with more than 100 employees. The study also measured the budgets that enterprises allocate for cloud security, the additional security measures they implement, and the standards and compliance they consider most important.

For a discussion of legal concerns related to cyber security, see the In Business Magazine article “Cyber Security: Liability and Evolving Standards for Business.” inbusinessmag.com/in-business/cyber-security-liability-evolving-standards-business

MINDING THEIR BUSINESS

Heidi Jannenga: WebPT Niche Creator She took the idea from serendipity to national recognition

The Breadth of WebPT

by Melissa Kiguwa

Heidi Jannenga founded WebPT, an electronic medical record (EMR) platform for physical therapists, with her soon-to-be husband in 2008. Before launching WebPT, she worked full-time as an athletic physical therapist managing three clinics. She describes the inception of WebPT as serendipitous. In 2007, she realized the largest expenses at her clinics were transcription and dictation costs. Around that time, many physicians were beginning to use EMRs as mandated by the Affordable Care Act. Though she and husband were, at that time, only dating, Brad Jannenga, in an attempt to charm her, began researching Webbased EMR platforms for physical therapists.

Her husband-to-be found there was practically nothing Web-based or cost-effective for physical therapists. Together, over the course of nine months, Heidi and Brad began developing a software program that was used, initially, by only the three clinics Jannenga managed. However, word spread of the effectiveness of the software, and soon physical therapists throughout the Greater Phoenix area began asking to use WebPT. Though they did not realize it at the time, this period proved tremendously valuable as the couple received consistent direct feedback as to how to improve the product.

She describes this period as a flurry. “Before we knew it, we had 10 or 12 clinics in the Greater Phoenix area using our platform. We did a little market research and found 80 percent of physical therapists were still using pen and paper. So at that point — this is late 2007 — we said we think we’ve stumbled onto something here. We looked at our competition in the physical therapy space and realized there wasn’t a lot going on.” At the time, whatever existed for physical therapists was expensive and mainly focused on billing insurance companies.

The impact was immediate. After launching the company in February of 2008, WebPT sold its software to five clinics in the first month. After that, “every month of WebPT’s existence has been WebPT’s next best month.”

Currently, WebPT allows physical therapists to create and manage patient records, manage appointment calendars with

automatic reminders, gain real-time business intelligence, and maximize reimbursements through automatic claim submissions. The company services more than 8,500 physical therapy clinics in all 50 states, as well as Puerto Rico, Canada and Guam. With just over 50,000 users, the company is an Arizona sweetheart, inspiring excitement for the Valley’s tech community. But Jannenga readily admits that, initially, the goal was not to create a nationally known brand but rather to simply create a tool to increase her bottom line at the three physical therapy clinics she managed in Tempe.

She notes, however, that the transition from physical therapist to software executive has not been easy. “Having so many positive, instant-gratification moments every day — from seeing my patients get better and having positive longterm relationships with physicians — to stepping into this role where you’re meeting people for the first time and you’re back to the last level of the totem pole is a tough experience. But I just embraced it — I’m an avid learner and just soaked it all in, and realized my management skills and skills as a physical therapist are incredibly transferrable to being a leader.”

Ultimately, Jannenga is excited for WebPT’s growth.

“WebPT just recently launched an outcomes platform. In the world of healthcare, we’re trying to get more objective ways of measuring progress and performance of providers, and outcomes is a great way of doing that.” Another area she sees for growth is in operability and integration. “With the Affordable Care Act requiring different healthcare providers to use some sort of electronic medical record, there are a lot of players out there,” she says. “The next phase is to make sure that the different platforms are able to talk to each other.

For example, as a physical therapist, we get a lot of referrals from physicians, especially orthopedic physicians, so making connections with different orthopedic EMRs to be able to integrate referral and clinical information back and forth makes that communication much more efficient and cost-effective.”

WebPT webpt.com

In its beginning, WebPT was run from the back of a coffee shop in downtown Phoenix.

It now occupies a 30,000-square-foot facility, soon to be doubled when it moves early next year to a building in the Warehouse District that is just over 60,000 square feet.

• WebPT has grown from three employees when it was founded (including Heidi and Brad Jannenga) to its current workforce of 300.

• The company has grown from 200 square feet in a Phoenix coffee shop to its current 30,000-squarefoot facility.

• Heidi Jannenga’s awards and recognitions include Arizona Physical Therapy Association’s 2016 Physical Therapist of the Year and a nomination for the Greater Phoenix Chamber of Commerce’s 2015 Athena Award.

• Jannenga is a member of the American Physical Therapy Association; Arizona Physical Therapy Association, Sports Physical Section; Arizona Technology Council; and the alumni group of the University of California, Davis and the University of St. Augustine. She supports nonprofits Desert Labrador Retriever Rescue and the Boys and Girls Club.

• Jannenga serves on the boards of directors of Support My Club, the Children’s Museum of Phoenix and the Physical Therapy Physical Action Committee.

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LAW MATTERS TO BUSINESS

New Overtime Rules to Impact Arizona Employers How to prepare for new overtime rules

by Chris M. Mason

MITIGATING THE OVERTIME COST One of the upcoming additional changes will slightly improve an employer’s ability to satisfy the minimum pay requirements. Employers may apply nondiscretionary bonuses and incentive pay (such as commissions) toward up to 10 percent of the salary requirement.

These additional forms of compensation were previously inapplicable to the minimum salary requirement. For highly compensated employees, all non-discretionary compensation can be used to satisfy the $134,004 requirement above a minimum of $47,476 in salary.

Beginning December 1, 2016, the minimum salaries for most exempt jobs will more than double, to $47,476 from the existing $23,660 required. On May 18, the U.S. Department of Labor dealt its long-anticipated regulatory amendments for “white collar” overtime exemptions under the Fair Labor Standards Act, which included increases to the mandatory base salary requirement.

The challenge for employers and employees alike will be determining whether certain jobs will continue as exempt positions, or whether they will be converted to non-exempt positions entitled to overtime pay. Early estimates anticipate that approximately five million workers will be directly impacted by the recent changes.

THE WHITE COLLAR EXEMPTIONS

Despite common misperception, an employee is not exempt from overtime pay simply because he or she receives a salary.

Employees must meet very specific exemptions to qualify.

Most of those exempt from overtime pay under the FLSA fall within one of several exemptions referred to as the “white collar” exemptions. To qualify for one of these exemptions, an employee must meet the specific job duty requirements for the professional, administrative or executive categories and, in addition, must be paid a minimum annual salary of $23,660.

This minimum annual salary for these exemptions will bump to $47,476, or $913 per week.

A similar exemption, which also will be affected by the upcoming changes, applies to highly compensated employees.

The duty responsibilities are relaxed for highly compensated employees to qualify for exempt status, so long as their annual salaries are set no lower than $100,000. This amount will increase to $134,004 effective December 1.

THE CONTINUED PAYOUT Chris M. Mason, an attorney with Jennings, Strouss & Salmon, PLC, counsels employers and management on all aspects of labor and employment law. He is also an experienced litigator, representing clients in Arizona, federal and appellate courts, as well as before administrative agencies. jsslaw.com

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The new increases have an even greater impact than may appear at first blush. For instance, with the amendments, the DOL has shuffled the deck with a new system that provides for automatic increases in the base salary requirement every three years. The increase will be based on wage data from the Bureau of Labor statistics, which is expected to warrant an increase in the minimum salary to more than $50,000 by 2020.

Employers evaluating whether to increase the minimum salaries for exempt employees will likely also evaluate its overall salary scale. Employees who have progressed to higher salaries may also expect an increase as their less-senior cohorts face mandatory increases effective December 1. While this is not mandated by regulation, employers should be prepared for it.

This, and similar considerations, represents perhaps the greatest gamble with the new regulatory requirements. The

When the Fair Labor Standards Act was passed in 1938, the original minimum wage was a mere $.25 per hour, and overtime applied only after the first 44 hours in a workweek.

dramatic salary increase may prove too costly for many currently exempt positions, which may either be too costly alone or may not fit in existing salary scales. Employers will need to evaluate whether to increase salaries or transition currently exempt employees to non-exempt status. Some positions may face consolidation, and others may be eliminated. For those who lose their salary status, they may face a change in pay that is tantamount to a pay rate reduction, and may face stricter scrutiny by their employer when seeking overtime work.

SPLITTING THE ODDS

Whether employers increase salary for lower-paid exempt employees or transition them to hourly positions with overtime entitlement, employers must make changes. If they opt to increase employee salaries to continue a white-collar exemption, they must ensure that the affected exempt employees are paid the minimum $47,476 required, unless the employees qualify for exempt status under a variety of other exemptions. This, too, should be evaluated. For employers increasing salary, now also is a good time for them to evaluate exempt employee duties. As previously mentioned, not all salaried employees are exempt from overtime. They must meet certain duty requirements to qualify for white-collar exemptions. These duty requirements create a significant challenge for employers on a regular basis, and now is a good time to evaluate which employees qualify.

Conversely, employees who are transitioned to hourly positions should be prepared to properly track and account for their work hours. Many have developed practices consistent with receiving a salary, and may work flexible schedules. This may change as employers impose time clock or time sheet tracking systems on these employees.

Finally, employers should not focus exclusively on these changes to federal law, as state law may impose stricter requirements. While an employee may qualify as exempt under federal requirements, the employee may still be entitled to overtime pay under applicable state law.

STEPPING AWAY FROM THE TABLE

Other exemptions and alternative pay structures may provide employers and employees with some relief and should be evaluated. Furthermore, the duty requirements that were previously in place for the white-collar exemptions remain the same under the new rules, minimizing the disruption.

Regardless of their chosen alternative, employers must plan and prepare for the change, rather than face investigation, fines and possible lawsuits for failed or incomplete implementation.

Remaking Economic Development An extensive study

by The Brookings Institution underscores shortcomings of the traditional approach, highlights successful emerging strategies, and, effectively, shows how Greater Phoenix is positioned for growth

by Amy Liu

The lackluster economy is delivering a humbling lesson about economic development: Top-line growth doesn’t ensure bottom-line prosperity.

Yet, in too many communities, the practice of conventional economic development remains focused solely on the former while the latter is deemed someone else’s responsibility.

One sees this in local marketing efforts touting their latest economic successes — new firm relocations, jobs “created,” and expanded privatesector investments.

Indeed, aggregate growth matters.

But more growth isn’t always better growth. Firm gains are not the same as worker gains. Ignoring the plight of workers who are under- and unemployed limits future growth.

It’s time to shift and broaden the purpose and practice of economic development to generate continuous growth, prosperity and inclusion.

The power of getting together to promote economic development is to do what markets alone cannot do: influence growth through action and investments. The purpose of economic development should be to put a regional economy on a trajectory of higher growth (growth) by increasing the productivity of firms and workers (prosperity) that raises standards of living for all (inclusion). This brand of economic development can lead to deep prosperity — growth that is robust, shared and enduring.

This generative work must occur within metropolitan regions because metro areas represent the basic unit and geography of the economy — and the nexus of public and private networks that shape regional economic ecosystems and address highly local market failures.

Given this purpose, economic development here refers to the system of economic growth and development in

regions. It is broader than the traditional practice of economic development.

The system involves not just economic development professionals but also elected officials, employers, workforce and education leaders, and other civic and nonprofit executives. The economic development system includes a wide range of policies and strategies that enable industries, workers and communities to contribute productively to the economy.

There is a great deal of knowledge about how an economy grows. Yet, conventional economic development remains largely misaligned to what matters. It favors recruiting new firms over helping existing

firms become more productive and expand.

It relies too often on taxpayer-funded incentives geared to one-time job creation, rather than positioning industries and assets for long-term growth. And when regions need to keep an eye on how to proactively respond to global, technological and demographic forces, conventional economic development remains largely reactive, driven by deals in the pipeline.

In short, economic development that improves living standards for only the few undermines current and future human capital, depresses economic demand, and dampens a region’s overall competitiveness and potential for growth.

The Actions: Five Principles Too many economic strategies remain highly fragmented and transaction oriented, resulting in narrow short-term wins: A firm recruitment here, a tax break for a new retail center there. A career academy opening without a connection to a nearby community college-industry partnership in the same field. Limited public resources stretched to support duplicative, uncoordinated or smallscale efforts.

The work to put a region on a higher growth trajectory begins with getting the markets and the civics right, but applying these basic principles in practice is not easy.

The actions to achieve the fuller promise of economic development to generate growth, prosperity and inclusion fall into five broad categories, reflecting the combined power of good economics and good governance.

Set the right goals

Grow from within

Boost trade

Expand the scope and metrics

Prioritize established and

Facilitate export growth

of economic development to

emerging firms and industries;

and trade with other

reflect a more foundational

invest in the ecosystems of

markets in the United

and holistic understanding of

innovation, trade, talent,

States and abroad in ways

how to expand the economy

infrastructure and governance

that deepen regional

and opportunity. Set long-

to support globally competitive

industry specializations

term goals that go beyond

firms and enable small

and bring in new income

traditional headline economic

businesses to start and grow in

and investment. Being a

indicators to achieve more

the market.

trading economy requires

robust measures of regional

Focus on strengthening assets

strengthening what

growth, productivity and

that enable a region’s distinctive

a region does best —

inclusion while also setting

industries to flourish and grow

growing from within by

shorter-term metrics to

from within, rather than rely

engaging globally.

monitor progress.

primarily on marketing to recruit individual firms from elsewhere.

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There is a great deal of knowledge about how an economy grows. Yet, conventional economic development remains largely misaligned to what matters. It favors recruiting new firms over helping existing firms become more productive and expand. It relies too often on taxpayer-funded incentives geared to one-time job creation, rather than positioning industries and assets for longterm growth. And when regions need to keep an eye on how to proactively respond to global, technological and demographic forces, conventional economic development remains largely reactive, driven by deals in the pipeline.

Why Remake Economic Development?

Embracing a broader vision of economic development is an economic and fiscal imperative. Our nation’s economic competitiveness and social cohesion remain threatened.

First, growth is not assured. U.S. leadership in advanced industries — those that are the most technology-driven and R&D intensive — is slipping. Productivity continues to lag. New business formation and labor force participation rates are declining. Household incomes and wages are stagnant or losing ground for all but the top tier of earners.

The acceleration in globalization, disruptive technologies and demographic change is roiling industries and labor markets, adding complexity and further testing the wisdom and prudence of hanging onto long-standing practices.

When used strategically and in the context of broader objectives, some incentives can bring solid benefits or address key market gaps, such as tax credits to remediate polluted sites or incentives to targeted suppliers that strengthen an existing industry cluster. Many more are questionable in form and focus: tax increment financing to support suburban malls and sports arenas; tax rebates for businesses to move from this town to that and back again; subsidies to build far-flung industrial parks and office towers; tax credits to lure film productions that

Invest in people and skills

offer a momentary boost at best. At worst, the prevalent use of tax incentives, coupled with multiple separate taxing jurisdictions in a region, pit jurisdictions against one another in ways that erode value in the economy and drain precious resources away from the people and assets that matter.

Continuous productivity improvements can only occur if gains from economic growth reach more firms and people, particularly those who are underemployed. And inclusion is likely to be more politically and economically successful if it comes through expanding the economic pie rather than by redistributing fixed resources.

Thus, growth, prosperity and inclusion are complementary, not contradictory, goals for meaningful economic development.

Connect place

Incorporate skills development of workers as a priority for economic

Catalyze economic place-making and work at multiple geographic levels

development and employers so that improving human capacities results in

to connect local communities to regional jobs, housing and opportunity.

meaningful work and income gains.

Markets — industrial, labor and housing — are regional, but the people and

The skills of workers and level of human capital in a region are critical factors in determining the competitive position of firms and the path to growth,

assets that matter to markets are local.

To create the market lift that raises incomes and opportunities for as many

prosperity, and inclusion. People produce value for firms, formulate the ideas

people as possible, economic development should focus on regional scale

that underpin innovation, produce and apply the latest technologies, raise

solutions to support strong, innovative industry clusters. But working solely

productivity and interact with customers to create the new products and

at the regional level and measuring progress against that geography can miss

services that drive today’s knowledge economy.

stark disparities in opportunity, such as rising concentrations of poverty in

The focus on skills is a growing priority for economic developers, increasingly

suburban neighborhoods and lagging investments in central cities. A large body

cited as a high priority in recent surveys of the members of the International

of research shows that persistent intra-regional disparities, racial and economic

Economic Development Council. Smart strategies better align workforce

segregation, and low-density sprawl can drag down a region’s overall economic

development with economic development, leveraging new state and federal

potential and widen inequality.

policies that set those directions and facilitate employers ramping up training and reshaping public systems through collaboration and co-investment.

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In Phoenix, planning for what evolved into its ambitious Velocity strategy — a metropolitan business plan, initially incubated by the Greater Phoenix Economic Council, focused on guiding the Greater Phoenix region into a shift from a consumption-based economy, positioning it as an economy based on innovation and technology — got underway slowly, as organizing the civics took precedence.

Moving into implementation, the region has refreshed its governance structure, expanding the circle of active partners and renewing commitment to carry out the plan.

The Basics of Economic Development There are two basic components to economic development — engagement with markets and market actors to create growth, and purposeful organizing of the right assets and capacities to improve, sustain and extend that growth to more participants. Thus, leaders need to get both the markets right and the civics right to put their metro areas on the path to deep prosperity.

Getting the markets right: First and foremost, economic growth matters.

An expanding economy creates jobs and opportunities for people and firms to maximize their potential. When labor markets are tight, wages are more likely to increase. When there is insufficient aggregate demand, workers are more likely to see wages erode, particularly lowerskilled, minority and younger workers.

How an economy grows matters too. A regional economy can expand simply by attracting more firms and more people into the market. But accumulating more people and a higher job count does not always mean that workers and firms are better off or that regional assets are improving.

Achieving deep prosperity requires improving the productive capabilities of businesses and people in the region. That requires building strong ecosystems for core industries, improving productivity and engaging in trade — the market foundations from which growth, prosperity and inclusion emerge.

Clusters and regional ecosystems: In today’s technology-fueled global economy, advanced industries comprise the most important clusters in a region. As the nation’s most R&D-

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and STEM-intensive sectors, advanced industries — such as aerospace, medical diagnostics and data processing [industries that have been a targeted focus for economic development in the Greater Phoenix area] — are most likely to endure and thrive in the future. These highly innovative sectors blur the distinctions between production and services, as software and digital offerings increasingly are components of manufactured goods that include cars, phones and televisions. Given their global relevance, advanced industries generate the bulk of the nation’s patenting and exports.

Further, wages in advanced industries have grown steadily since 1975 while all other industries have stayed relatively flat. Half of the jobs in advanced industries do not require workers to have four-year college degrees.

Economic development is most effective — and cost-effective — when it focuses on improving the shared assets that support clusters and advanced industries, rather than providing subsidies and solutions to individual firms.

Ignoring intra-regional disparities and concentrated poverty can drag down a region’s overall economic potential, as well as perpetuate cycles of disinvestment in certain areas, primarily central cities but increasingly older suburbs as well.

Productivity: There is a broad consensus that productivity gains are the primary source of growth in any economy. Federal Reserve Chair Janet Yellen put it simply: “Over time, sustained increases in productivity are necessary to support rising incomes.”

The income and higher earnings generated from increased productivity can be recycled through the economy in several forms. One is as increased wages that workers spend at local

stores, restaurants and other firms. A second is as new investments in the productive capacities of firms, equipment and workers, and the formation of new businesses. And a third is as higher tax revenues that pay for more of the public goods on which prosperity depends — infrastructure, education and transportation — as well as other improvements in quality of life.

Economic development must create the conditions that enable firms in distinct clusters to be more productive, so they generate higher value from each input. There are three ways that regions can increase productivity: by helping firms and industries innovate and invest in R&D and technology (including those supplied by other firms), by helping industries access skilled labor or invest in training, and by improving the industry mix in the region to include more innovative, higher-value sectors of the economy.

Meanwhile, state and regional leaders must anticipate and manage the tensions that result from the “creative destruction” that comes with productivity improvements. New technologies that increase productivity, such as faster computing or robotics, will eliminate certain tasks. They can also create new demand for workers with specialized skills and boost the productivity of existing workers. This highlights the need for leaders to build in mechanisms for continuous investment in people, their skills, and their mobility and access to new occupations.

Trade: Like a business that grows through sales, regional economies grow and expand through trade. Productivity gains bear fruit when industries and firms sell highly specialized goods and services to customers outside of the local market, injecting new income into the region.

Thus, economic development should prioritize the needs of a region’s traded sectors,

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including aligning and investing in the assets prized by their leading industries. It should also include facilitating international trade, which is particularly important in today’s hyper-integrated global marketplace.

As with technology, the globalization of supply chains and capital comes with risks. Globalization tends to favor highly productive firms, skilled workers and innovative regions. In addition, trade doesn’t make sense for all firms, as entering and sustaining relationships in international markets requires a great deal of capital and specialized skills. In fact, studies have found that firms that are at least mid-sized or larger are most likely to benefit from exporting.

Getting the civics right: Getting the economics of economic development right is crucial, but it is also insufficient. The civics must be right, too. For economic development is, fundamentally, a civic enterprise and a civic process: the work to organize and implement initiatives that engage stakeholders and partners to achieve long-term goals.

The path to getting the civics right varies for each metro area. So much is predicated on a region’s unique history, culture, circumstances, leadership and institutional capacity. The process is rarely linear but emerges organically, steered and shaped by networks rather than handed down by government or business hierarchies.

And the work is more complex the higher the region’s aspirations.

But, more and more, leaders in economic development are tired of what one calls “episodic excellence and persistent systems failure.” They are searching instead for insight and evidence to deliver more systemic change with significant and enduring results.

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Visible and Networked Undertaking transformative economic change requires developing a sense of urgency and high visibility. That starts with an economic narrative grounded in hard data and clearsighted assessment of the region’s competitive strengths and weaknesses — gauging how it really stacks up in the global economy and where there are challenges and market failures to address.

In Phoenix, planning for what evolved into its ambitious Velocity strategy — a metropolitan business plan, initially incubated by the Greater Phoenix Economic Council, focused on guiding the Greater Phoenix region into a shift from a consumption-based economy, positioning it as an economy based on innovation and technology — got underway slowly, as organizing the civics took precedence. Moving into implementation, the region has refreshed its governance structure, expanding the circle of active partners and renewing commitment to carry out the plan.

Leading transformative change in economic development depends on

relationships and trust. It requires navigating complex relationships and collaborations among a wide variety of stakeholders and across multiple boundaries, including jurisdictional boundaries.

Aspects of collective impact apply to regional economic development, such as the need for shared agendas, goals, and performance metrics to keep the work focused and to hold partners accountable.

Transparency and inclusion are essential to building the trust required for ongoing collaboration and partnership at the scale of the region. And regions pursuing deep prosperity have learned that it requires deliberate steps to ensure that regional efforts deliver inclusive outcomes.

The work to put a region on a higher growth trajectory never stops. Regional leaders must balance tangible and visible progress against shorter-term goals with the recognition that the vision is long term, requiring constant adaptation as conditions and leadership changes. It also remains a work in progress, with much exploration and experimentation still to be done to deliver new insights, new techniques, new finance tools and new business models to get the civics right.

Amy Liu, vice president and director of the Metropolitan Policy Program, is a national expert on cities and metropolitan areas adept at translating research and insights into action on the ground. As director of the Metro Program, which Liu co-founded in 1996, she pioneered the program’s signature approach to policy and practice, which uses rigorous research to inform strategies for economic growth and opportunity. Liu has worked directly on such strategies with scores of public- and private-sector leaders in regions around the country, including Chicago, Kansas City and Phoenix.

The Brookings Institution brookings.edu

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PACKAGED TO IMPRESS

Kangelon “Kay” Dexter is Sage One’s global product marketing strategist and entrepreneur advocate.

Based at Sage in Atlanta, she is passionate about ensuring that the customer’s voice is heard — particularly diverse voices. Her career focus has been on consumer buying behaviors, product marketing, and campaign creation and execution.

To date, she has managed strategic product launches and promotional marketing campaigns for multiple high-profile brands like NIKE, Visa and MasterCard. As an advocate for risktaking startups and entrepreneurs, Dexter believes that “the person who says it cannot be done should not interrupt the person who is doing it.” She spends her free time giving back, mentoring with middle school and young adults on professional development, personal branding and college prep. sage.com

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Faces Matter

What a website’s ‘About Us’ page really says about the company

by Kangelon “Kay” Dexter

When a person is deciding whether or not to do business with your company, you might expect them to check all the key selling points. Price, benefits and features, brand reputation — these are all things that marketers anticipate customers will care about and, therefore, are the brand identifiers that receive the most attention when it comes to sales and marketing.

However, there’s one thing that can have a huge influence on customers that many organizations often overlook — something equally as important as messaging or the USP. I’m talking about the company’s “About Us” page.

Whatever it’s called on a company’s website (Meet the Team, Who We Are, etc.), the people represented on that company’s team page provide a snapshot of the company’s greatest asset for growth and success: its people. And the people are what all consumers ultimately care about. That’s because customers don’t want to just buy from companies — they want to connect with the people behind the brands they choose. This is especially true of millennials, who represent the largest and most diverse consumer generation in U.S. history. Indeed, 87 percent of millennials seek companies that prioritize authenticity, community and integrity as their core values — the very same priorities that millennials recognize in themselves.

Relatability is key to building trust and brand loyalty, so for all businesses looking to win new customers and achieve growth (which, let’s be honest, is all businesses), diversity is an essential component to success.

Here’s a look at why it matters for every company.

In 2004, research found that resumes submitted by people with distinctly sounding African-American names were less likely to get callbacks regarding the job. …

LACK OF DIVERSITY IS BAD FOR BUSINESS

Even if you’re not a pop culture enthusiast, there’s a good chance you’ve heard about the brouhaha surrounding this year’s Academy Awards ceremony. For those of you who missed it, here’s a recap: The 2016 Oscars faced a tremendous amount of scrutiny (and dismay) from the film industry, media and public at large for a blatant and disconcerting lack of diversity among the nominees for the second consecutive year. Aside from being a PR nightmare, the situation served as an eye-opening commentary about equality, opportunity and business in general.

Yes, business. What many people forget is that the entertainment industry is just that — an industry representing a multitude of businesses that cater to a diverse population of consumers. So why, with such a huge potential customer base, does Hollywood remain so homogenous? For a lot of the same reasons that many other businesses do, too. Ingrained biases, a lack of buy-in from leaders and decision makers, barefaced denial about an ever-changing world — all of these things contribute to a lack of diversity that weakens business success.

Research reveals that movies and TV shows with diverse casts make more money and receive higher ratings, respectively. Additionally, companies in the top quartile for ethnic diversity are 35 percent more likely to perform better financially than their industry medians. It’s clear that whether we’re talking about the entertainment business or any other type of business, diversity matters; without it, a business stands to alienate a huge market of potential customers.

BETTERING YOUR BUSINESS

Growing Jobs This book provides concrete examples and practical guidelines for addressing the most serious economic challenge facing the United States and every

IT’S A WORLDWIDE MARKETPLACE

There are currently more than 3.3 billion Internet users worldwide, representing nearly half of the global population. In North America alone, connected consumers account for 87.9 percent of the entire population.

While it’s unrealistic to expect any company to actively represent every individual or culture in the world, a little bit of effort and understanding goes a long way. For example, only about 27 percent of Internet users are native English speakers. This means that companies that don’t diversify their marketing materials, or can’t provide other ways to relate to or connect with these segments, may be excluding 70 percent of potential customers around the world.

What’s more, research suggests that a team with a member who shares a client’s ethnicity is 152 percent likelier than another team to understand that client — 152 percent! In an age when competition is fierce across the global stage, companies with diverse teams have a definite advantage.

INNOVATION REQUIRES COLLABORATION AND NEW PERSPECTIVES

For many businesses, staying innovative is a constant challenge.

Technology and increasing connectivity are helping to ensure that virtually all industries are rapidly changing. In order to keep up, companies need to be more adaptable, flexible and creative in how they set and achieve goals.

Tapping into new perspectives and capabilities is one solution with far-reaching potential. Apple gets it — not only do they put a priority on diversity, they also champion the transparency of their inclusive efforts in recognition of how important it is to their continued success as one of the world’s most innovative brands. They understand what research has told us for ages: Diversity is a key driver of innovation and is a critical component of being successful on a global scale.

DIVERSITY STARTS AT THE TOP

Yet, despite an increased awareness of the importance of diversity in the workplace, many businesses still struggle with implementing these initiatives. The reality is that real change starts in the C-suite.

The Center for Talent Innovation found that without diverse leadership, women are 20 percent less likely than straight white men to win endorsement for their ideas; people of color are 24 percent less likely; and LGBTs are 21 percent less likely (bitly.com/talent-innovation-pub).

It’s these unique and diverse perspectives that drive the innovation engines in many companies.

Unfortunately, minorities in the professional space don’t expect to find any diversity at the C-suite level because, historically, there has been little to no representation there. It’s the responsibility of leaders and those in the C-suite to identify opportunities for diversity and serve as champions for bringing diverse talent to the board rooms.

The simple truth is that diversity matters. Whether companies are looking to win or retain customers, build innovative portfolios or create a foundation for sustainable success, diversity is what helps make it all possible — and it’s the humble “About Us” page that often serves as a big indicator of what many companies are able to achieve. All organizations that are considering potential strategies for growth should start by answering this one fundamental question: When so much potential for success rests in the diversity of your team, what does your “About Us” page say about your company?

community in the nation: growing good jobs and enabling people to function effectively in these occupations. It lays out a methodology that enables each community to find its unique path toward the common vision of an economy that works for all citizens, and provides suggestions for moving the community from the current system to a “transformed” economic development system. The book presents success stories from Austin, Texas, and Dubuque, Iowa, and highlights the principles that have made these two cities’ approaches effective.

Title: Growing Jobs: Transforming the Way We Approach Economic Development Authors: Thomas C. Tuttle Publisher: Praeger

$37 Available: June 30, 2016

Pages: 195

Empire of the Fund This book is an exposé and examination of the way we save now. With the rise of the 401(k) and demise of the pension, the United States has embarked upon the richest and riskiest experiment in our financial history.

Over the next 20 years, nearly 80 million baby boomers will retire at a pace of 10,000 per day. The hypothesis of our experiment is that millions of ordinary, untrained, busy citizens can successfully manage trillions of dollars in a financial system dominated by wealthy, skilled and powerful financial institutions, many of which have a record of treating individual investors shabbily.

Title: Empire of the Fund: The Way We Save Now 1st Edition Authors: William A. Birdthistle Publisher: Oxford University Press

$34.95 Available: June 29, 2016

Pages: 195

The Network Imperative Digital networks are changing all the rules of business.

New, scalable, digitally networked business models, like those of Amazon, Google, Uber and Airbnb, are affecting growth, scale and profit potential for companies in every industry. But this seismic shift isn’t unique to digital startups and tech superstars. Digital transformation is affecting every business sector, and, as investor capital, top talent and customers shift toward network-centric organizations, the performance gap between early and late adopters is widening. So the question isn’t whether an organization needs to change, but when and how much.

Title: The Network Imperative: How to Survive and Grow in the Age of Digital Business Models Hardcover Authors: Barry Libert, Megan Beck & Jerry Wind

$32

Publisher: Harvard Business Review Press

Pages: 256

… Now, new research from the University of Missouri — “An Updated Analysis of Race and Gender Effects on Employer Interest in Job Applicants” — finds no evidence of employer preferences for applicants from a particular race or gender at the initial stage of the hiring process. bitly.com/policy-brief-04b

Available: June 28, 2016

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INVESTING IN COMMUNITY

Overhead and the Nonprofit JUL

UP NEXT MONTH Annual Giving USA Report

HOW TO MEASURE SOCIAL IMPACT “When boards consider overhead expenses, they must examine the nonprofit’s mission,” says Ashcraft. “They must ask: How is this expense aligned to the mission and programs offered? Is it necessary for growth or innovation? What social impact will it have? How will the organization measure that impact against its mission?”

Nonprofits new to social impact measurement may access the Foundation Center’s “Tools and Resources for Assessing Social Impact,” which includes more than 150 tools, methods and practices. Locally the ASU Lodestar Center offers a Social Impact Measurement Certificate and other related resources. foundationcenter.org lodestar.asu.edu

Executives sitting on nonprofit boards are uniquely suited to help reframe perceptions about nonprofit overhead costs

by Richard Tollefson

Today’s nonprofits often find themselves looking over their shoulders. “They worry about the scrutiny or debate that may rage over their spending while, at the same time, understanding the critical need to invest in their enterprises in order to fulfill their missions,” says Robert Ashcraft, Ph.D., executive director of ASU’s Lodestar Center for Philanthropy and Nonprofit Innovation.

Historically, nonprofits have been held to “overhead” standards set by watchdog groups stating that about one-fourth of the budget could be spent on overhead (infrastructure, administration, fundraising) — or no more than one-third. If organizations stay within those parameters, they receive positive ratings and favorable public perception.

Conversely, they receive poor “grades” if they don’t.

The problem with this type of evaluation is multi-faceted.

For starters, overhead is categorized differently among various organizations. As well, watchdog groups themselves don’t use the same formulas as they create their evaluation methods.

Ashcraft points, also, to the wide range of nonprofits and the difficulty of evaluating them by the same standards.

“Trying to clump all subsectors together — arts and culture, health, education, youth, environment — and applying a single ratio is not productive.” Each has different needs, operational procedures and overhead expenses necessary to fulfill their missions.

According to CEO of the Alliance of Arizona Nonprofits Kristen Merrifield, overhead is just one part of the evaluation equation.

“We should be looking at social impact and results-based accountability.” She says the questions that need to be asked aren’t just about overhead. They are: What are the results of the

Donor Dialogue To assist donors, the public and staff in understanding overhead expenditures, board members should: Be Aware. Understand the nonprofit’s recent audited

The Author: Richard Tollefson is founder and president of The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists. phoenixphilanthropy.com

way funds are managed? Is the nonprofit serving those whom it set out to serve? Is it increasing the amount of people served? Is it doing innovative things to fulfill the mission?

“We’re trying to turn this huge ship that’s been going in one direction — saying if the nonprofit doesn’t have 10 percent overhead, they are obviously doing things wrong,” says Merrifield. “That’s just not true.”

So then, how to change course when, according Ellison Research, 62 percent of Americans believe most nonprofits spend more than they should on overhead?

They key is board members, who serve as critical change agents for the nonprofit. “They are uniquely situated to help change perceptions,” says Merrifield.

When board members are confronted with concern about nonprofit expenses, they should feel confident engaging in open dialogue about this evolving topic. “Be very clear, strategic and transparent about why you’re making the investments you are,” says Ashcraft. “Generally, when people understand and can analyze, they agree.”

Alliance – are collaborating to educate funders and donors in a campaign called “The Overhead Myth.”

• Make clear that the same principles of for-profit business

financials, and if they don’t exist, ask why. Does the organization

apply to nonprofits i.e. hiring the best leaders, investing in

do a financial review? Are financials presented and approved by the

technology, and accessing more capital leads to innovation

board at every meeting? Is there a finance committee or treasurer?

and sustainability. In other words: putting money in is crucial

How is the organization calculating overhead expenses? What is

to getting success out.

categorized as management and administration, programs and fundraising? Board members who understand the organization’s financial intricacies can respond with transparency to constituents.

Educate. Peer executives, donors and staff can benefit from an understanding of nonprofit operations and expenses.

• Explain that the nonprofit designation is essentially a tax status.

“Nonprofit doesn’t mean an organization should not be earning a profit,” says Merrifield. “Without profit, the doors close.”

• Share articles and insight about the changing perceptions of overhead costs. Three organizations – Charity Navigator, GuideStar, and the Better Business Bureau Wise Giving

Share. Board members can bring creative solutions to their organizations. They can assist in securing pro-bono services. They can connect their nonprofits with training and resources. Consider standforyourmission.org, which teaches boards how to advocate, communicate and champion their nonprofit’s mission. As well, the recently completed Arizona Nonprofit Economic Vitality Study includes a downloadable toolkit that helps boards and nonprofits share insight about nonprofit impact statewide.

For more on the Arizona Nonprofit Economic Vitality Study:

phoenixphilanthropy.com/arizona-nonprofits aznonprofitimpact.org

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Unrealistic Donor Expectations Fuel Underfunding of Critical Overhead Good sources of information are The Nonprofit Starvation Cycle by Ann Goggins Gregory and Don Howard in the Stanford Social Innovation Review, and books by Dan Pallotta: Uncharitable and Charity Case.

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Empowered PhXX

Phoenix Sister Cities

Global Links Business Outlook Luncheon Thurs., June 9 | 11:00a — 1:00p Phoenix Sister Cities invites guests to attend the 17th annual Global Links Business Outlook Luncheon and get the “411” on cybersecurity. Steve Phillips, chief information officer for Avnet, will share his insights and practical tips on Steve how businesses of all sizes can protect Phillips their information and their information technology assets from today’s everchanging cybersecurity threats. Mark Pribish, vice president and ID theft practice leader at Merchants Information Solutions, will share his expertise and help heighten awareness of the reality Mark of identity theft and data breach risks, Pribish and how they affect business. John Iannarelli, senior executive consultant to the FBI’s assistant director, will be there to discuss the biggest threats impacting small and medium-sized businesses in today’s world.

The Sister City program is an John agreement, signed by the mayors of each Iannarelli Sister City, confirming the commitment of each community to the Sister City program. Sister Cities agree to send and receive delegations of various types, including political and business leaders, arts and cultural representatives, educators, and technical experts, because these exchanges promote cross-cultural understanding, municipal and technical cooperation, and business opportunities. Each Sister City is supported by a committee of volunteers who are committed to the goals and objectives of the program.

The luncheon is open to the public. —Mike Hunter Members: $55; non-members: $60; purchase online: phoenixsistercities.org Phoenix Convention Center 100 N. 3rd St., Phoenix (602) 534-3751 or email paula.west@phoenix.gov

Collaboration: Empowered PhXX Fri., June 17 | 10:00a – Noon This is an interactive working session to develop a system that better fosters collaboration among women business organizations and entrepreneurial support organizations.

One of the smaller conversations leading up to a summit being planned for September, the Empowered PhXX roundtable on collaboration will address questions of what true collaboration looks like between parties that have a stake in advancing business growth among women business owners and entrepreneurs.

Empowered PhXX was founded to be a collaboration itself of all community partners housed within this entrepreneurship venture that is specifically committed to 50/50 entrepreneurship (equal representation of women and men) in Phoenix, explains Empowered PhXX founder Kristin Slice. She points out women now earn 25 cents per dollar earned by a male entrepreneur in the same industry.

Bringing women to 50/50 parity “would add close to $100 billion to the state’s Gross State Product as well as 91,000 jobs in the next three years.”

While other states have developed specific tools to address the challenges women business owners face, Arizona has not had the same momentum in spite of having more than 380 women’s networking groups and 100 different resource partners.

This June 17 event zeroes in on collaboration and will bring together all partners that have a stake in this specific challenge: networking group leaders specifically committed to female entrepreneurship, entrepreneurial support organizations, incubators, accelerators, city government, economic development agencies and women business owners who are leaders within organizations or have access to resources. “We want to make sure the people at the table have some experience or background, and vested interest, so we get actionable output from the meetings,” says Slice, who credits ASU’s Innovation & Entrepreneurship program for helping facilitate the ongoing project of Empowered PhXX. —RaeAnne Marsh Free SkySong 1301 N. Scottsdale Rd., Scottsdale

JUNE 2016

empowered-lab.com

S M T W T F S

SAVE THE DATE

Upcoming and notable ‘Selling to the Federal Government’ Wed., July 6

July

6

U.S. Small Business Administration presents this seminar on how to sell goods and services to the Federal Government. sba.gov ‘Hiring Our Heroes’ Corporate Fellowship Program July

Mon., July 18

18

The fellowship program is created to give transitioning soldiers, military spouses and student veterans the opportunity to build their civilian network and add civilian work experience to their resume. northerntrust.com Empowered PhXX Summit Sept.

September

The City of Phoenix and Arizona Governor Ducey’s office are working with Empowered PhXX for this summit, which will bring policy members into the conversation as well. In the interim, Empowered PhXX will launch a large-scale initiative on WBOs to develop a clear understanding of who WBOs are and the challenges they face.

Slice welcomes interested community leaders to help plan the September summit.

TBD

kristin@empowered-lab.com

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5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

JUNE 2016 NOTABLE DATES

Sun., June 19 – Father’s Day Mon., June 20 – Summer Solstice

20 1 6 35 JUNE INBUSINESSMAG.COM

JUNE 2016 Wed., June 1, 8, 15, 22, 29

Fri., June 10

7:00a – 9:00a

11:00a – 1:00p

Business Over Breakfast

2016 Annual Luncheon

Glendale Chamber of Commerce

Greater Phoenix Chamber of Commerce

This weekly event is a great opportunity for members to come together over breakfast, make new connections, exchange leads and referrals and build relationships to help grow your business.

Members: $20; future members: $30

“Tony La Russa: Leading like a Champ”: World Series champion and Hall of Fame manager Tony La Russa will share his insights on building a championship team.

La Russa, who serves as chief baseball officer for the Arizona Diamondbacks, has the third most wins as an MLB manager in the history of the league. La Russa will discuss strategies to keep employees motivated to achieve the highest level of success.

Cucina Tagliani

Members: $35; non-members: $60

17045 N. 59th Ave., Glendale

Pointe Hilton Squaw Peak

glendaleazchamber.org Thurs., June 2

7677 N. 16th St., Phoenix

Thurs., June 14

5:30p – 9:00p

29th Annual Chandler Chamber Community Awards

Greater Phoenix Chamber of Commerce – Professional Women’s Alliance Hear from the chamber’s 2015 ATHENA Award recipients. The accomplished trio of top Valley businesswomen will share their experiences and knowledge on the three pillars of being an ATHENA – leadership, mentorship and community service. Speakers are Leah Fregulia, head of School/CEO of Arizona School for the Arts; Ashley Kasarjian, attorney with Snell & Wilmer; Melissa Sanderson, VP International Affairs for Freeport-McMoRan Inc.

Event honors local businesses and individuals for their outstanding contributions to the community through its Annual Community Awards. The Chandler Chamber Community Foundation awards scholarships to Chandler Gilbert Community College.

Members: $35; general admission: $50

Members: free (with lunch: $25); non-members, with lunch: $45; advance registration required for lunch

Wild House Pass Hotel and Casino 5040 Wild House Pass Blvd., Chandler

Phoenix Country Club

chandlerchamber.com 2 Fri., June 3

11:00a – 1:00p

‘ATHENAs on Living, Learning and Leading’

Chandler Chamber of Commerce

1

phoenixchamber.com

3 7:00a – 9:00a

7

10

Tues., June 7

First Friday Networking Breakfast

2901 N. 7th St., Phoenix

11

phoenixchamber.com

14

11:30a – 1:15p

8th Annual Meet the Mayors Luncheon

Glendale Chamber of Commerce Event showcases a featured speaker and provides an opportunity for all members in attendance to introduce their company and/or products and services. Event always closes with a great raffle.

West Valley Women

Members: $10, $12.50 after Tuesday the week of event; future members: $30.

Members: $30; non-members: $35

Sat., June 11

Arizona Broadway Theatre

3rd Annual Empowerment Conference/Expo

7701 W. Paradise Ln., Peoria

Black Women That Rock

westvalleywomen.org

“Embrace Your Journey and Flourish”: We are all on the journey of life, so most of us will be able to relate that sometimes we settle for less and not live our “Best Life.” Enjoy an inspiring message by a powerful speaker and a panel of awesome people to highlight a discussion on embracing your journey. There will be a food vendor, Chef Reggie with light breakfast and lunch; networking with community resources; and shopping with some well-known local vendors. This is a kids-friendly event — ages 13 and up will be allowed to sit in on conference; for all children under 13, there will be a craft room for the children to go and be creative.

Cuff Restaurant

Learn what’s new and exciting in the West Valley Community.

5819 W. Glendale Ave., Glendale

glendaleazchamber.org Fri., June 3

10:00a – 2:00p

Career Expo Fresh Start Women’s Foundation This event will connect women with a multitude of job opportunities from around the Valley. If you are seeking employment, looking for a career change, or searching for future career options, this is an opportunity to meet some of the Valley’s top employers. Bring copies of your resume — there will be a variety of positions, professions and industries. Some employers may interview you on the spot.

Free Fresh Start Women’s Foundation

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Free Maxine O. Bush Elementary School

1130 E. McDowell Rd., Phoenix

fswf.org

JUNE 20 1 6

9:00a – Noon

602 E. Siesta Dr., Phoenix blackwomenthatrock.com

Please confirm, as dates and times are subject to change.

For more events, visit “Business Events” at www.inbusinessmag.com

Thurs., June 23

5:00p – 8:00p

Kendra Gives Back to AWEE Arizona Women’s Education and Employment Join AWEE for an evening of shopping, small bites, bubbles and fun at the Kendra Scott store at Scottsdale Quarter. Shop Kendra Scott’s spring collection of jewelry and accessories all while networking and meeting with friends in support of AWEE. Twenty percent of the evening’s sales will directly support AWEE and its mission to Advance Arizona’s Workforce. Bring your girlfriends, family, and co-workers for a fun and festive shopping event in support of AWEE. “We Teach. We Coach. We Connect. AWEE Works!”

Wed., June 15

11:00a – 1:00p

Annual Business Awards Luncheon

Free Kendra Scott

15147 N. Scottsdale Rd., Scottsdale

awee.org

Gilbert Chamber of Commerce

Wed., June 15

The chamber will deliver its Year In Review, honor the volunteers who serve the Chamber, and announce the recipients of this year’s Annual Business Awards.

Dual Chamber Business After Hours Mixer

9th Annual Positively Powerful Women Awards Celebration

Ahwatukee Foothills Chamber of Commerce & Maricopa Chamber of Commerce

Positively Powerful – Triad West

Doubletree by Hilton Phoenix–Gilbert SanTan Elegante Resort & Conference Center 1800 S. SanTan Village Pkwy., Gilbert gilbertchamber.com

Free UltraStar Multi-tainment Center at Ak-Chin Circle

$100

16000 N. Maricopa Rd., Maricopa

Halle Heart Children’s Museum

ahwatukeechamber.com

positivelypowerful.com

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16

23 Thurs., June 16

11:00a – 1:30p

Annual Luncheon Tempe Chamber of Commerce Reflecting on the past year while looking forward to the future, the chamber will introduce its new chairman of the board along with the incoming board of directors and committee chairs, and honor those who are moving on. The keynote presentation will be delivered by Don Henninger, a top media, business and community leader in Phoenix for more than 30 years. A highlight of the event is the video program and presentation of the 2016 Business Excellence Awards, which recognize responsible business leadership and honor those that demonstrate a passion for excellence.

Members: $50: general public: $65 Tempe Mission Palms Hotel tempechamber.org

60 E. 5th St., Tempe

5:00p – 9:00p

“Transformation Wealth and Health” brings together women and men from our community, corporations, educational organizations, and nonprofits from Phoenix and the U.S. for this joyful, inclusive celebration, personal and professional development, empowerment and motivation, connections, collaboration and upbeat fun.

The Ahwatukee Chamber of Commerce and Maricopa Chamber of Commerce are conjoining their evening mixer event.

Members: $35; general admission: $50; after 11:00a on June 9: add $10

Thurs., June 16

Sat., June 25

5:30p – 7:00p

5:00p – 7:00p

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25

2929 S. 48th St., Tempe

28

Tues., June 28

9:30a – 11:00a

Business After Hours

Coffee & Connections

Glendale Chamber of Commerce

Glendale Chamber of Commerce

These events provide an opportunity for chamber members and their guests to come together in a relaxed atmosphere while sharing ideas, products and services offered. Attendees are encouraged to bring flyers or brochures on their company for the member display table.

Meet with other chamber members and make new connections, all before lunch. Attendees are welcome to join in for the entire time, 30 minutes or whatever fits into the individual’s schedule.

Members: free; future members: $30

Staybridge Suites – Glendale

Max’s Restaurant & Sports Bar

9340 W.t Cabela Dr., Glendale

6727 N. 47th Ave,, Glendale

glendaleazchamber.org

Members: free; future members: $30

glendaleazchamber.org Fri., June 24

5:30p – 8:30p

‘Meltdown in the Desert’ Kolby Kolibas This entrepreneur and marketing event features speakers Sean Whalen, Danny Page, Kolby Kolibas and Anna Selby. Attendess will learn specific tactics and strategies used to grow a social media following, create an interactive community, and identify new ways to take ideas into revenue by using social media as a platform. The presenting expert panel has a social media reach north of 10 million people worldwide and have worked with organizations that have generated north of $200 million combined.

General admission: $149.99; other options available W Scottsdale Hotel

If your event is directed to helping build business in Metro Phoenix, please send us information to include it in the In Business Magazine events calendar. Full calendar online. Events@inbusinessmag.com

7277 E. Camelback Rd., Scottsdale

bitly.com/meltdown-in-desert

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WE VALUE WHAT WE OWN

BY MIKE HUNTER

2016 Tesla X: P90D Performance All-Wheel Drive

MSRP: $81,200 0-60: 3.8 seconds Range: 250 miles Top Speed: 155 mph

On the Go

tinting provides for reduced obstructions and amazing views for passengers as well.

The Tesla seats seven people in three rows with sleek airline-like seats that are thinner than the usual car seats and optimize space. Each reclines independently, with under-seat storage. The third row folds down to allow for more storage space. The sleek dash is reminiscent of the Tesla Model S and includes a touchscreen that controls all of the latest gadgets, communications, audio and navigation. Maps are enlargeable, allowing for greater detail.

Our only drawback is that the Tesla Model X must be ordered and there is already a waiting list.

Tesla Motors teslamotors.com

Many of our days at

Snapseal Byron Stainless Steel Travel Mug

the office start with

This larger-capacity,

Starbucks Stainless Steel Clip Handle Tumbler

Thermos 22-oz Vacuum Insulated Stainless Steel Mug

our favorite beverage

hard-working mug

The soft mint

insulation for maximum

as a “necessary” jolt

has lid that snaps

finish makes this

temperature retention

to kick ourselves into

open and closed so

insulated, double-

keeps beverages hot for

gear. Atop many a desk

it’s sealed shut when

walled tumbler

up to six hours and cold

is the coffee cup. Well,

the drinker is done sipping.

distinctive, and so does its flexible

for up to 10 hours. Made of BPA-free,

we found several travel

Users will also love that it keeps

rubber handle that doubles as a

durable stainless steel interior and

mugs that can make

the “morning joe” hot for hours,

clip for easy carrying. The tumbler’s

exterior, it has a flip-up lid that is

going from home to

so they can take it to go. $12.99

no-slip grip bottom and curved flip-

easy to use and clean. $21.99

office a real boost.

gocontigo.com

top lid help minimize spills. $22.95

thermos.com

The mug’s vacuum

starbucks.com

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Falcon Wings: With only a foot of clearance on either side, falcon-wing doors articulate smoothly up and out of the way, allowing passengers to enter from both front and rear directions. The side and overhead opening is so large that parents can buckle children in without ducking or straining and without bumping their child’s head on the roof.

Photos courtesy of Tesla Motors (top)

TESLA MODEL X

The SUV market is changing, with fuel efficiency being the real driver. At Tesla, it is all about electricity and design. Useful and truly an innovation, the new Tesla X is an SUV entry that will likely be considered a turning point in design, efficiency and spaciousness.

The Model X is touted as the safest, fastest and most capable sport utility vehicle ever made. It is equipped with a 90-kWh battery that allows for up to 257 miles with a very quick 0–60 in 3.2 seconds. The vehicle simply jettisons from its standing position and takes off.

With its battery lower and centered under the vehicle, it has become one of the safest vehicles, with half the likelihood of rollover, and was engineered with a front impact-absorbing crumple zone since the engine is not there. It is expected to achieve the highest safety ratings in all categories. Its soonto-be iconic falcon-wing doors make this the most unique SUV ever built — a design that allows access to second- and third-row seating like no other. The large glass panoramic windshield runs up the front of the cabin and atop to provide for unobstructed views and unlimited visibility. Optimized solar

MEALS THAT MATTER

BY MIKE HUNTER

The Herb Box at The Colony

Crispy shrimp, avocado toasts, organic arugula, crisp-fried fennel, pancetta, sweet hot serrano glaze, and lemonhoney vinaigrette $15

CHAR-GRILLED KOBE BURGER Bacon, brie, apple-jicamawatercress slaw, smashed fingerlings, crisp-fried sage, smoky blue cheese $19

The Herb Box

Founded by catering guru Susan Smederovac-Wilcox in 1995 as a catering company, The Herb Box filled a niche in its original location in DC Ranch that quickly became all the rage. This eatery has evolved to include three locations. With innovative menus and now spirits and other libations, The Herb Box is known for a great neighborhood urban experience that is second to none.

Its newest of the three location is in newly completed The Colony, at 7th Street and Missouri in Phoenix. Each location has its unique appeal, but the truest reason for going is clearly the food. At lunch, do not miss the great starters. Order a few.

The Kale, Corn and Sweet Onion Pakora with serrano glaze and vegan yellow pepper aioli will be the first to go at the table. Its crisp and crunchy texture is surprisingly light and so flavorful.

Another favorite is the Korean Fried Cauliflower, which is crisp cauliflower over quinoa and a Korean hot pepper sauce topped with sesame, sugar snap peas and pea shoots — perhaps one of the best dishes in the Valley. Other incredible individual

Isn’t It Always about the Burger?

Time and time again, the classic hamburger beats out over many other choices on a menu. So much so that the gourmet burger joint has become its own genre for diners. Here are our current tops:

dishes include the Butternut Squash and Corn Enchiladas with kale ensalada, organic arugula, baby kale, avocado, edamame, sweet dried corn, pickled red onion and candied pepitas topped with queso. A more traditional meal may include the Char-Grilled Kobe Burger with bacon, brie, apple-jicamawatercress slaw, smashed fingerlings, crisp-fried sage and smoky blue cheese.

The food and drinks are made with mind-boggling combinations of quality ingredients, and each is more flavorful than the last. The service is impeccable at each of these hot spots, but know the locations are hoppin’ at lunch so be sure to allow time. Outdoor seating is available at each, and the experience will entice its clientele to bring all of their top clients.

North Scottsdale

Old Town Scottsdale

The Colony

20707 N. Pima Rd.,

7134 E. Stetson Dr.,

5538 N. 7th St., Phoenix

Scottsdale

Scottsdale

(480) 289-6180

JUNE 20 1 6

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INBUSINESSMAG.COM

theherbbox.com

Hopdoddy Burger Bar

Joe’s Farm Grill

This interesting concept

It is all about the

Zinburger Wine & Burger Bar

is all about custom orders.

counter service, but

This was one of the local

Customers pick the type of

this grill in the midst

original gourmet burger joints

burger they want and take

of the Agritopia — an

— fast, yet truly gourmet. Each

a seat — and before you

urban farm in the heart

burger is made to order and

know it, it’s on the table and

of Gilbert — is unique

can be customized to the most

delicious. Great service and

and does have all of the

discerning or eclectic taste.

very attentive staff. There is

great accompaniments

Finest ingredients make up these

a bar as well.

a great burger place

clever combos.

2033 E. Camelback Rd., Phoenix

should have.

2502 E. Camelback Rd., Phoenix

(602) 242-2337

3000 E. Ray Rd., Gilbert

(602) 424-9500

11055 N Scottsdale Rd.,

(480) 563-4745

15257 N. Scottsdale Rd., Scottsdale

joesfarmgrill.com

(480) 285-0690

Scottsdale Blanco Burger at Zinburger

(480) 393-0432

(480) 289-6160

(480) 348-2337

344 N. Gilbert Rd., Gilbert

hopdoddy.com

(480) 387-5000

Sweet Plates: Dessert at The Herb Box is a must. Try these: Flourless chocolate cake with strawberry rosé syrup, the Blackberry Lavender Crumble and the Caramel Apple Crème Brûlée.

zinburgeraz.com

Photos courtesy of The Herb Box (top), Fox Restaurant Concepts (bottom)

SERRANO AVOCADO SHRIMP SALAD

GLOBAL

® CHAMBER

Global Chamber® Events

SUMMER 2016

phoenix.globalchamber.org/events

Global Chamber® Phoenix

Monday, June 20 “Lunch and Learn on Global Training” Gloria Peterson shares her insights.

11:30am Arizona RSVP to events@globalchamber.org Global Chamber®

Tuesday, June 28 “Keep All Your International Branches Strong” Virtual event tapping into our members’ expertise.

2:00pm to 3:00pm RSVP to events@globalchamber.org

SPOTLIGHT EVENT Global Chamber® Phoenix

Friday, July 29 “Youth Ambassador Program” Annual event with Phoenix Sister Cities 8:00am to 10:00am RSVP to events@globalchamber.org Global Chamber® Phoenix

Wednesday, August 10 “Women in Global Leadership” Hosted by Squire Patton Boggs.

8am to 10am RSVP to events@globalchamber.org

Two Phoenix-area Exporters Win President’s E Award Doug Bruhnke, CEO/Founder at Global Chamber®

Congratulations City of Phoenix and Team EXOS! This year there are two recipients for the President’s E Award for exporting that are based in the Phoenix area, and both are Global Chamber® members.

The President’s “E” Award was initiated in 1962 by President John F. Kennedy to recognize excellence by companies and municipalities for contributions to U.S. exporting.

Phoenix is the first city in 13 years to win the award. The reasons cited: • Phoenix businesses led the nation in increased exports in 2015 over 2014.

• Phoenix exporters have a four-year trend through 2015 of double-digit annual growth.

• Phoenix and other Arizona businesses increased the export share of Arizona’s gross domestic product from 7.5 percent to 9 percent last year. That’s still below the national average of 14%.

Inside this section Too Many Politicians Getting It 2 Wrong on Trade A New View of the World: Women in 3 Global Business Will Benefit from the 4 Arizona Trans-Pacific Partnership Agreement Why San Jose? (Costa Rica) Trade Is Growing, and 5 Arizona-Mexico Creates Jobs on Both Sides of the Border

6 Member News 7 News from Global Chamber

®

Mayor Stanton (middle) with Hank Marshall (right) and Commerce Secretary Prtizker (left)

“Exporting is crucial to the success of the businesses we work with,” said Mayor Greg Stanton. “Every day, we see the growth of Phoenix businesses, due in large part to exporting. This growth has enabled our Phoenix businesses to add jobs and support their local communities as they expand their bottom line.”

Team EXOS has had sustained and rapid growth in foreign markets. Marty Weems at EXOS recently participated in a Global Chamber virtual event, and his comments were shared online on our Phoenix blog.

Global Chamber® globalchamber.org

Growing Your Small Business Globally LeAnn Young, Executive Director, Global Chamber® Baltimore

With the vast resources available including the services of Global Chamber®, exporting abroad is no longer just for the big corporations. An increasing number of small U.S. businesses are growing by finding key markets outside the U.S. The following are a few items a small business should keep in mind.

Demand: More than 95 percent of the world’s population and 70 percent of the world’s purchasing power is located outside of the United States.

Profitability: Exporting can be profitable for businesses of all sizes. On average, sales grow Continued on page 2

GlobalChamber.org

1

Too Many Politicians Getting It Wrong on Trade Doug Bruhnke, CEO/Founder at Global Chamber®

The idea of Global Chamber® started eight years ago when Barry Goldwater, Jr. stood up in a crowded public meeting in Phoenix and declared “foreigners need to be kept out of Arizona because they take our jobs.”

It was a wrong idea then, and it’s wrong now.

We want foreign investment, because while foreign companies employ 5 percent of the U.S. workforce, they account for 8 percent of compensation, 15 percent of R&D and 20 percent of U.S. exports. Foreign investment is a vital ingredient in any metro’s financial success, and Phoenix needs more.

Amidst the noise of the upcoming election, the presumptive Republican presidential candidate has railed against trade. So has the No. 2 Democratic candidate, although for different reasons.

Is it politically incorrect to be for trade?

Either way, the political positions espoused by those candidates when taken at face value are counterproductive and contrary to real-world facts.

Significant benefits have flowed from U.S. free-trade agreements (FTAs), which have covered 20 countries. Those countries represent approximately 6 percent of the world’s population outside the United States, and yet those markets purchase nearly half of all U.S. exports. The United States has recorded a trade surplus in manufactured goods with its FTA partner countries for each of the past five years, according to the U.S. Department of Commerce. This surplus currently exceeds $50 billion per year.

Overall, more than 38 million Americans jobs depend on trade. The United States is the world’s largest exporter of goods and services. U.S. exports of goods and services are more than $2.5 trillion per year and rising. Trade is critical to the success of many sectors of the U.S. economy. One in four manufacturing jobs depends on exports.

American farmers and ranchers also depend on exports. The U.S. Department of Agriculture reports that one in every three acres on American farms is planted for export markets. Agricultural

2

Global Chamber®

WRONG WAY exports are at record levels, more than $150 billion per year.

There’s also a benefit from imports. For the U.S. they bring lower prices and more choices for American families trying to stretch their budgets. Companies also depend on imports for raw materials and competitively priced inputs.

Imports give consumers access to products that would not otherwise be available — such as fresh fruit in the winter. Access to imports boosts the purchasing power of the average American household by about $10,000 annually.

More than 98 percent of the roughly 300,000 U.S. companies that export is small and mediumsized enterprises (SMEs), and they account for one-third of U.S. merchandise exports, according to the U.S. Department of Commerce. That’s less than 1 percent of companies — so there’s plenty more potential for exports and job creation.

Last month, U.K. Trade & Investment (UKTI) reported that 40 percent of UK SMEs wish to be global within five years. What happens when U.S. companies see the light? That 1 percent of enlightened companies will increase.

International trade provides a path to jobs and prosperity, if we can overcome misinformation and fear. The conversation should continue on how to optimize trade. But we should all understand the very real benefits.

All of us who are involved every day know the direct and indirect benefits of international trade.

And for companies looking to grow globally and extend our trade success, we’re here to help!

Global Chamber® globalchamber.org

Continued from page 1

faster, more jobs are created, and employees earn more than in nonexporting firms.

Competitive Advantage: The United States is known throughout the world for highquality, innovative goods and services; customer service; and sound business practices.

Diversifying Risk: Most companies that export have an easier time riding out fluctuations in the U.S. economy and are more likely to stay in business.

Inaccurate Assumption: Exporting requires a huge capital outlay and a scale that is too big for most small businesses.

Truth: A business of any size can make the right connections to enter markets worldwide.

Quality, competitive pricing and business stability are among important global factors.

Are Global Markets Part of Your Growth Plan?

Small businesses make up the bulk of the U.S. economy.

In Maryland, 97 percent of all business employers in the state are small businesses. If you are a small business, make sure you consider connecting your business to the rest of the world.

Companies across borders want American products and services.

Interestingly, less than 1 percent of America’s 30 million companies export — a percentage that is significantly lower than in all other developed countries. And of the U.S. companies that do export, 58 percent export to only one country. There are plenty of global business opportunities awaiting companies of all sizes!

A New View of the World: Women in Global Business Korina Smith, Executive Director, Global Chamber® Dallas

We have made a lot of progress in growing our chapter here at Global Chamber® Dallas. We have quickly connected with international business professionals all over the DFW area. We are providing them with a home base to meet other like-minded (as in global expansion-minded) individuals who are leading their organizations to connect the world through cross-border commerce and initiatives.

Our members are innovators, startup founders, C-level executives, government officials, exporters and catalysts who have all supported our mission. We believe that the world is a better place when countries are dependent on each other for business relationships. We know that if we have those relationships, on a larger scale we are more prone to peace and have stronger economies. On a micro scale, individuals thrive here and abroad with more opportunities for their families.

We created this community with world-wide membership, including virtual communities where businesses can connect in Karachi or Kathmandu, and events where we can connect personally. We currently have chapters in about 65 metro areas around the globe

Mayor Stanton with Nia Febriyanti and Chansamai Phommachan.

— and when our members connect to us, they are connected to our members world-wide, not just in their own chapters.

Events are a great way for our international business network to meet each other and launch relationships. We recently hosted three strong women leaders: Consul General of Canada Sara Wilshaw; CEO/ founder Suzy Batiz of Poo~Pourri; and Diane Divin, former Manager of Global Import/ Export Compliance at Mary Kay. Our “Women in Global Business” series has been very popular, and similar programs are planned for other cities, including Phoenix at Squire Patton Boggs later this summer. Women and men invited to learn and grow!

Global Chamber® Dallas dallas.globalchamber.org

GlobalChamber.org

3

Arizona Will Benefit from the Trans-Pacific Partnership Agreement Doug Bruhnke, Global Chamber®

Global Chamber® hosted Luis Jimenez of the Office of the U.S. Trade Representative at our headquarters in SkySong to discuss the Trans-Pacific Partnership Agreement.

Despite plenty of discussion on all sides, the consensus of experts is that TPP will help Arizona companies and create more jobs.

Founded in 1962, the Office of the United States Trade Representative (USTR) is the United States government agency responsible for developing and recommending U.S. trade policy to the President of the United States, conducting trade negotiations at bilateral and multilateral levels, and coordinating trade policy within the government.

The U.S. is one of 12 countries that TPP covers. Signed in February, 2016, TPP has been six years in the making. Malaysia has already signed the agreement. Mr. Jimenez mentioned that all of the countries are on a path to approve it. The U.S. situation is a little cloudier because of the anti-trade rhetoric that has been infused into the process. That makes

it more important for everyone involved with U.S. companies doing trade to inform their local government leaders about how important TPP is to improve their business.

Some of the key facts about TPP: • Reduces to zero 18,000 different taxes on Made-in-America exports, • Includes the strongest worker protections of any trade agreement in history, • Includes the strongest environmental protections of any trade agreement in history, • Promotes E-commerce, protects digital freedom, and preserves an open Internet, • Levels the playing field for U.S. workers by disciplining state-owned enterprises (SOEs), • Prioritizes good governance and fighting corruption, • Supports both merchandise and services exports, and • Helps small businesses benefit from global trade.

Luis Jimenez, with Mayor Jim Lane, and former Tempe Mayor Hugh Hallman

We were particularly impressed about the elimination of tariffs on all manufactured goods exported from the U.S. In addition, now the U.S. will be well positioned in agriculture where there have been tariffs — like finally allowing the “sacred 5” (beef, pork, rice, dairy and wheat) to penetrate the Japanese consumer market.

All business leaders serious about exporting should advise their representative to vote “yes” on TPP

Why San Jose? (Costa Rica) Jose Belfort, Executive Director, Global Chamber® San Jose

Global Chamber® is a thriving and collaborating community of CEOs, executives and professionals growing to more than 500 metro areas around the world. Now we’re in Costa Rica (Metro San Jose) because we seek to collaborate with regional groups for the creation of a more global business within Costa Rica and with the world.

Metro San Jose is here with standardized business services across the globe in collaboration with all organizations involved with global business.

Metro San Jose wishes to help build a great growth vision for Costa Rica, and to promote an efficient development community for crossborder business. We believe in learning new and important skills to enable companies to reach their growth goals.

Metro San Jose is here because, for continuous development, it is required to connect sectors by bridges that foster stronger ties

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Global Chamber®

between productive groups and innovation — and our San Jose chapter is a bridge.

Through Global Chamber Metro San Jose, there are opportunities to produce new markets and better logistics to achieve greater competitive advantage of companies.

And we welcome companies in Arizona to explore opportunities in this market.

San Jose Metro is here because we will be an opportunity to globalize businesses and develop new skills in management and leadership. We are now part of a vibrant and talented community worldwide, and we welcome you to join us. Let’s grow together.

Arizona-Mexico Trade Is Growing, and Creates Jobs on Both Sides of the Border Julio Espinoza, Espinoza Consulting, and Doug Bruhnke, Global Chamber®

“While much attention is given to the rising volume of U.S. imports from México over the past decade, what is often overlooked is the fact that México has emerged as the second destination in the world for U.S. exports,” said Consul General of Mexico in Phoenix Roberto Rodríguez, referring to statistics of the U.S. Census Bureau highlights. “In 2015, U.S. companies exported USD 236 billion in goods to México, more than a five-time increase since the implementation of NAFTA in 1994. As a measure of the significance of our bilateral trade, the United States exports more goods to México than to Brazil, India, Japan and the United Kingdom combined, with six million U.S. jobs relying on our bilateral trade.”

U.S. exports to Mexico exceed combined exports to Great Britain, France, Belgium and the Netherlands. The U.S. is Mexico’s largest source of Foreign Direct Investment (FDI) and the keystone for strategizing and implementing foreign and national security decisions. Both countries are interdependent to an extent that any cycle of economic growth or slowdown will impact both markets. Any threat to the stability of Mexico would also be a threat to the national security of the U.S., like the potential use of the border by organized crime, terrorist groups or enemy powers challenging the U.S. leadership in the world.

For globally minded entrepreneurs, the borderlands represent business opportunity: a place where the largest market in the world collides with one of the most vibrant economies of the 21st century and a market eager to consume American products and services. The U.S. Southwest border with Mexico is a region of opportunity. We must appreciate the growing Mexican middle class with their discretionary income as much

as the group of Mexican magnates who can invest in the U.S., because both can help ensure the sustainability of the NAFTA region. We must envision North America as the most advanced and sustainable economic engine in 2030 because, at that moment, our traditional Western allies will be lagging behind the growth of economies such as China, India, Indonesia, Brazil and Russia, most of them being challengers of the existing U.S.-European shaped world order.

The Mexican economy will exceed the largest European economies and Japan’s by 2050. Do we already have an effective long-term strategy to attract more Mexican FDI into Arizona? Are we able to support our business strategies with our political intentions and state-of-the-art transportation infrastructure? Are we ready to host the Mexican transnational companies that will be looking into the U.S. to expand operations? Today Arizona hosts only about 10 large Mexican companies, most of them in mining, food and beverage industries.

Forty cents of every dollar spent on imports from Mexico comes back to the U.S., a quantity ten times greater than the four cents returning for each dollar paid on Chinese imports. Mexicans who legally cross the border to shop and visit Arizona represent about USD 7 million per day, according to the Arizona-Mexico Commission.

Consul General Rodríguez elaborates on the strategic value of Arizona in the U.S.Mexico relationship: “México and Arizona are friends and strategic partners; both share multiple economic, social and cultural ties. México ranks as the first destination for Arizona’s exports, with USD 9.1 billion in 2015. An estimated 111,216 jobs in Arizona rely on bilateral trade with México.

Mike Patterson, Polsinelli at Global Town Hall

But beyond trade, our most valuable asset continues to be our people. Arizona is home to 1.7 million people of Mexican origin who contribute importantly to the prosperity of both Arizona and México. We need to reinforce our path to the future; unlike the past, we must build bridges and not walls.”

Last year, a group of business leaders with the support of the City of Phoenix were able to entice the Mexican Telecommunications tycoon, and the world’s second-richest man, Carlos Slim, to Arizona. Mr. Slim’s companies are heavily engaged in Mexico and throughout the Western Hemisphere. That trip opened the door to Mr. Slim’s companies in Arizona and helped facilitate other trade discussions for business and government leaders. Small business steps have been leading to more opportunities.

We need to continue hosting an open dialog to educate the general public and decision makers about the potential that Mexico represents, and advocate at the business level for a more coherent strategy to embrace Mexico. The 2016 Global and Arizona Town Hall discussions in Phoenix (hosted by Global Chamber) and in Tucson fostered a productive dialog with Mexican colleagues that will translate into better policy and more business and jobs for Arizona. If you want to be informed and partake of the dialog, we will be happy to provide you with the information to make your business be “global and unstoppable.”

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Member News Mayor Stanton Accepts E Award City of Phoenix Congratulations, City of Phoenix! “The city of Phoenix has demonstrated a sustained commitment to export expansion. The ‘E’ Awards committee was very impressed with the city’s significant and broad-based support to grow exports from Phoenix, which is responsible for more than half of the exports from the State of Arizona,” said Secretary of Commerce Penny Pritzker.

Law Firm Growing Across the U.S. Polsinelli Polsinelli continues its rapid growth, and in addition it has renewed its membership in Global Chamber®, expanding the number of cities where its attorneys participate. Polsinelli hosted recent events in Denver and Dallas, and is continuing its strong support for Global Chamber in Phoenix. Reach out any time to Mike Patterson (Mexico and Latin America), Karen Dickinson (Asia) and Gerrit Steenblik (Europe).

phoenix.globalchamber.org/blogs

polsinelli.com

Sweet Smell of Global Success Poo~pourri Grows Globally Suzy Batiz, CEO and founder of Poo~Pourri, spoke at a Women in Global Business forum held by Global Chamber® Dallas. Poo~pourri is a $300-million company selling more than 10 million bottles in more than 9,000 stores worldwide. What exporter or entrepreneur wouldn’t want to learn from her? Congratulations to Suzy and her team for their worldwide growth.

PoshBerry Discounted Travel New Member Spotlight With 40 percent off published fares, PoshBerry (Geneva and worldwide) books tickets on Lufthansa, Qantas, Emirates, British Airways, Virgin, Delta, American Airlines, Aeroflot, Cathay Pacific, Air France, Swiss and many, many more. It offers charter service and private jet rental — on request. PoshBerry serves individual and corporate travelers — especially valuable for travel agencies.

Creditsafe Growing in Tempe Port of Spain, Trinidad and Tobago New Executive Director Spotlight Hi, I’m Dr. Ty Richardson, executive director of Global Chamber® Trinidad and Tobago. Our team is excited to announce that Global Chamber has landed in Port of Spain. We have already started connecting member companies to businesses and organizations around the world, bringing new opportunities to them and the metro area. Contact me directly to learn more about how you can grow your business from and to Port of Spain through global connections and our other services. trinidad-tobago.globalchamber.org/cpages/home

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Global Chamber®

Adding Jobs, Visited by CEO Cato Syversen Last month, Global Chamber® participated in a meet-and-great with CEO and founder Cato Syversen of Creditsafe, visiting from the company’s headquarters in Wales. Creditsafe offers credit checks at a fraction of what you’re probably paying today. It is rapidly expanding from its local base in Tempe, supporting the growth of our members and community.

News from Global Chamber® News from Headquarters Kim Bridges, Marketing and Communications Director at Global Chamber®

Global Chamber®

Global Chamber Phoenix and Tucson Chairman/CEO Sponsors Polsinelli Thunderbird Online Squire Patton Boggs Growth Nation InWhatLanguage.com President Sponsors Galbut & Galbut BMO Harris Bank Bank of America DIRTT Alliance Bank of Arizona Special Global Advisors Charles Bruce, Johnny Rockets, The Original Hamburger Hank Marshall, UK Honorary Consul in Arizona Melissa Sanderson, Freeport McMoRan Kiyoko Toyama Michael Patterson, Polsinelli Don Henninger, DH Advisors, Global Chamber Lee Benson, Able Engineering Committees All Metros, Industries and Regions Contacts CEO/Founder: Doug Bruhnke, doug@globalchamber.org Global Marketing: Kim Bridges, kim.bridges@globalchamber.org Business Services: Cesar Trabanco, cesar@globalchamber.org Membership: Dakota Drake, dakota@globalchamber.org

We are pleased to announce the addition of Cesar Trabanco as manager of Business Services. Cesar is originally from Puerto Rico, and studied and worked in international trade in Geneva and Guadalajara prior to joining Global Chamber®.

Last month, we also welcomed Nia Febriyanti and Chansamai Phommachan —who have been supporting us in a variety of programs, including building out Virtual Communities along with growth in their home countries of Indonesia and Laos, respectively. Last but not least, we have also welcomed Minji Kim (ASU, law) and Jacob Decker (business doctorate, GCU) to headquarters. We’re growing to help you grow!

Growing from Abuja to Zagreb, and Everywhere Dakota Drake, Operations Manager at Global Chamber®

We’re pleased to announce that Global Chamber® is officially everywhere, from A to Z — Abuja, Nigeria, to Zagreb, Croatia, and anywhere in between. We supplement our 65 chapters in 25 countries with Global Chamber “Regional Desks” that fill in any gaps and help members grow from anywhere to everywhere.

Virtual Communities Cesar Trabanco, Business Services Manager at Global Chamber®

Global Chamber® gives you and your company a way to have a discussion with like-minded global business executives around the world in our virtual communities — now established for more than 100 topics ranging from metropolitan area discussions to regional topics and areas of international business, with no limits.

Virtual communities discuss topics that Global Chamber members comment on and share. Common themes include lowering risk and increasing success in cross-border interactions. Our members are “the global tribe” — experienced experts in global trade. And so, whether you’re an expert or not, you can benefit from their knowledge and experience.

Grow to Indonesia ia Febriyanti and Chansamai N Phommachan, State Department Fellows at Global Chamber®

Thank you BMO Harris Bank and Mayor Stanton for hosting events last month at the new BMO Harris Bank location (the Triad Building on Central Avenue) and at City Hall on growing to Indonesia, Laos and ASEAN countries.

Arizona companies are welcome to reach out to us. Did you know that Indonesia is the world’s fourth-largest country, made up of 17,000 islands, and increasingly a safer place to do business?

Be global and unstoppable! Contact us for more information. members.globalchamber.org/cpages/ regionaldesks

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The latest business news on inbusinessmag.com and on twitter @inbusinessmag

Follow us to build your small business

/inbusinessmag

@inbusinessmag

Featuring Deborah Bateman National Bank of Arizona

Laurie Brednich HR Company Store, LLC

Camille Hill Merestone

Kimber Lanning Local First Arizona

Jean Ann Morris LP Insurance Services, Inc.

Sandi Ernst Perez Delta Dental of Arizona

Kate Wells Children’s Museum of Phoenix

AWEE Works!

Changing Lives Through the Dignity of Work AWEE’s focus – our only focus – is workforce development. We help women and men, young adults and mature workers find jobs, keep their families together, become financially stable, and contribute to the community.

AWEE provides the tools for change, economic independence, self-reliance and community revitalization to advance Arizona’s workforce.

Our success depends on the investment of our corporate and community partners.

To learn more about AWEE’s programs and how to impact their success, visit awee.org or call Jamie Craig Dove at 602-223-4333.

We Teach. We Coach. We Connect. AWEE Works!

640 North First Avenue, Phoenix, Arizona 85003-1515 t 602-223-4333 f 602-223-4338 awee.org

Achievement Inspires Us The famous statement “Behind every successful man is a woman” may once have been accepted as a tongue-in-cheek assessment, but it was part and parcel of an archaic view RaeAnne Marsh has been editor of In Business Magazine since its inception in 2010.

With a mission of informing the business community with relevant and timely information, she seeks out the latest in a variety of subjects and purposely avoids confining any monthly edition to a single theme. Marsh attributes the success of In Business Magazine to her and InMedia Company’s ability to connect with the Valley’s business community.

Marsh has been writing and editing for Valley — as well as national — publications and organizations for 18 years. She started her editorial career with Arizona Corridors in 1998.

that women didn’t belong in the actual forefront of leadership. As the articles and individual profiles of achievement on the following pages attest, this has changed dramatically. Study after study now shows that businesses with women in executive positions show greater earnings and growth. (The pay rate for women, however, is another issue.)

Women are exerting influence at all levels, contributing to not only their company but the business community as a whole.

We at In Business Magazine are debuting this special Women of Achievement section to recognize the contributions of individuals in our business community. We have specifically avoided making this another “Women at the Top” list; the companies chosen to participate were invited to select any woman within their organization whose achievements are worthy of note.

And these Women of Achievement will be asked to present at our “TED Talk”-type event next year to inform our audience by sharing an anecdote about their success, live in front of this business community in an inspiring event on success.

It is with a great deal of pleasure that I introduce this inaugural Women of Achievement special section.

Sincerely,

RaeAnne Marsh Editor In Business Magazine

About this Section

Featuring Deborah Bateman

Women of Achievement

National Bank of Arizona

Laurie Brednich

HR Company Store, LLC

Jean Ann Morris

Healthcare Professional Group

Sandi Ernst Perez

In Business Magazine is proud to introduce this year’s picks for Women of Achievement. This section is dedicated

Delta Dental of Arizona

Kate Wells

Children’s Museum of Phoenix

to women who have achieved great success at any level within their company. For this inaugural edition, we invited each of the companies in the following pages to choose a Woman of Achievement based on success and accomplishment within their organization. This annual distinction will culminate in a special event celebrating success stories that will inform and inspire our local business community.

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Women-Owned Businesses: Achievement in a Growth Demographic The latest census data identifies strong potential for Arizona Women represent the largest growing demographic of business owners in the country. This is among several interesting trends revealed in final data from the 2012 census released earlier this year. The number of women starting businesses was almost three times that of men — more than expected. As of 2012, women business owners (WBOs) represented 36.2 percent of all businesses, numbering more than 10 million, with 8.9 million employees and generating more than $1.6 trillion in receipts.

In Arizona, the numbers were 183,318 businesses, with 315,682 employees and generating $24.2 billion in receipts.

The census confirmed that women starting their own business was a major contributor in our economy bouncing back from the recession.

Encouraging entrepreneurship and business ownership has been one of the key strategies the public sector has used to build jobs in our local economies. The 2012 census data shows that diversifying our investment to include more women may create greater returns.

WHAT DO THESE NUMBERS MEAN FOR ARIZONA?

Less than five years ago, Arizona regularly topped national rankings for WBOs. Our entrepreneurial ecosystem is robust with multiple resources and more than 380 women business networking groups. The final numbers released in the census figures show that Arizona has fallen behind in its growth of WBOs. Other states have recognized the economic development potential of WBOs and have evolved their entrepreneurial ecosystem by conducting in-depth local research, elevating WBOs’ public profile, and developing innovative economic development strategies reflective of the latest data and research on the unique challenges WBOs face. Arizona is missing out on an opportunity that leverages our local assets, strengthens our local communities and creates quality jobs.

Growth of Women-Owned Businesses in Arizona Year

Women-Owned Businesses

2002

109,748

2007

138,055

2112

183,318

How Arizona Compares to Other States on Growth of WBOs 2007–2012 State

Percent of Growth

Arizona

18.6%

California

21.9%

Colorado

23.5%

Florida

26.9%

Texas

44.5%

While Arizona is currently trending in the wrong direction, a mere 10-percent shift in our current efforts is all that would be required to make us the top state in the country. That 10-percent increase could represent an additional 91,000 jobs created in the next three years.

The details of the census data reveal several reasons why, with a small change in strategy, Arizona is well-positioned to be the top state for WBOs.

THREE REASONS ARIZONA SHOULD BE THE TOP STATE FOR WBOS

Demographics: Latina and African American communities lead the majority of the growth. Arizona is home to a growing population in both of these key demographics. According to the census, women who are starting businesses are both baby boomers and millennials. Arizona is projected to follow this same trend, with our population getting “older” and “younger.”

Research shows the diversity among business owners means that the resources and programs developed to support entrepreneurial innovation need to evolve to address the unique challenges and culture these entrepreneurs represent.

Culture Change: From technology startups to the boardroom, diversity became a key priority affecting the bottom line. The census numbers, increasing visibility and leadership in community organizations are positioning women as a key factor in the success of our entrepreneurial ecosystem.

Key Values: The top three industries for growth in women business ownership are also reflective of the industries that have been defined as critical to Arizona’s economic future: healthcare, education services and main-street businesses.

The census numbers on female entrepreneurship portend opportunity to leverage our state’s values, ecosystem and strength for a more vibrant economy.

—Kristin Slice, owner of Empowered Lab, a social entrepreneurship venture that creates counseling and training programs to specifically address the needs of women business owners Empowered Lab Communications empowered-lab.com

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WBOs Are on a Growth Trajectory Arizona has an estimated 203,200 womenowned firms, employing 149,500 and attributing to roughly $24,669,700 according to the sixth annual State of Women-Owned

Businesses Report, commissioned by American Express OPEN, a comprehensive report released in April, analyzing data from the U.S. Census Bureau’s Survey of Business Owners

Growth of Women-Owned Firms 2002-2016 Women-Owned Firms 2002

2007

2012

% Change 2016 (est.)

2007-2016

Total U.S. Number of Firms

6,489,483

7,793,139

9,878,397

11,313,900

45.2%

Employment

7,146,229

7,579,876

8,431,614

8,976,100

18.4%

Sales ($000)

$940,774,986

$1,202,115,758

$1,419,834,295

$1,622,763,800

35.0%

109,748

138,080

182,425

203,200

47.2%

Arizona Number of Firms Employment

128,926

147,392

144,906

149,500

1.4%

Sales ($000)

$15,761,202

$21,795,502

$22,692,789

$24,669,700

13.2%

Phoenix Number of Firms

70,816

83,379

121,689

136,700

64.0%

Employment

89,408

102,518

102,632

106,500

3.9%

Sales ($000)

$11,478,738

$15,911,873

$16,545,275

$18,040,900

13.4%

Source: American Express OPEN

and factoring in relative changes in Gross Domestic Product.

The unique analysis, reported by industry, revenue and employment size at the national and state levels, shares a new and nuanced investigation into the growth trends among the 11.3 million women-owned enterprises since the recession.

Nationally, the number of women-owned firms (between 2007 and 2016) increased by 45 percent, compared to just a 9-percent increase among all businesses. Therefore, over the past nine years, the number of women-owned firms has grown at a rate fully five times faster than the national average.

Arizona is ranked 11th (47 percent) in growth of number of firms over the past nine years, and 45th (13 percent) in growth of firm revenue between 2007 and 2016.

Among the top 50 metro areas in the U.S., Phoenix is home to 136,700 women-owned firms and is ranked 12th in growth of number of firms.

—Mike Hunter about.americanexpress.com/news/docs/2016x /2016SWOB.pdf

The Gender Divide: A National Perspective, and Local Players This past April, nearly 45 percent of eBay shareholders voted for a resolution calling for the tech giant to take action to close the gender pay gap. In response to the vote, the CEO of eBay promised to “fix” the situation at the company. eBay was the sixth of nine tech companies at the focus of gender pay equity resolutions advanced

by Arjuna Capital, a division of Baldwin Brothers Inc., a registered investment advisor.

The eBay vote and company reaction reflected the huge momentum building for tech companies to improve the treatment of women in the workplace. In the case of eBay, the greater than 44-percent vote reflected a huge jump in support from the 8-percent backing the same resolution received at the company’s 2015 annual meeting. In terms of eBay’s market value, the 44.6- percent support reflected $13 billion in the company’s stock.

On April 11, Microsoft became the fifth major U.S. tech company this year to respond to shareholder calls for action on closing the gender pay equity gap. Already this year, Arjuna Capital has announced success in its

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shareholder engagements at Expedia (March 24th), Amazon (March 23rd), Apple (March 2nd), and Intel (February 3rd), all of which reported the gender pay gap is closed, near closed, or will be closed shortly.

Shareholder votes and/or ongoing dialogues are still in the works on gender pay equity at Facebook, Google, and Adobe.

Microsoft, Expedia, Amazon, Intel and Apple joined the ranks of very few U.S. companies — The Gap, Salesforce.com, and GoDaddy — that

have been accountable and transparent in their commitment to gender pay equity.

On a national level, women, who are paid an average of 78 cents for every dollar men earn, will not reach pay parity until 2058. In the technology industry, which struggles to recruit and retain a diverse workforce, recruiting firm Dice reports men earned nearly $10,000 dollars more than women on average in 2014. —Natasha Lamb, spokesperson for Arjuna Capital Arjuna Capital arjuna-capital.com

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About National Bank of Arizona Company Name: National Bank of Arizona Main Office Address: 6001 N. 24th St., Phoenix, AZ 85016 Phone: (602) 235-6000 Website: www.nbaz.com Number of Offices in Metro Phoenix: 22 Number of Employees: About 800 City Nationally Headquartered: Phoenix

Deborah Bateman Vice Chairman | National Bank of Arizona National Bank of Arizona was founded in 1984 on a mission of building relationships and offering exceptional customer service. Today, we still pride ourselves on providing local expertise and delivering award-winning service. We remain dedicated to serving the financial needs of all Arizonans. Families, foundations, nonprofit organizations, businesses, executives and professionals benefit from our experience and commitment to excellence. As a premier bank in Arizona, NB|AZ has more than $4.5 billion in assets and it is backed by the strength of Zions Bancorporation, one of the top 40 holding companies in the U.S. with assets of $56 billion.

As vice chairman of National Bank of Arizona, Bateman oversees the Premier Wealth Management team, which consists of Relationship Bankers who serve Private Banking, Professional Banking, Executive Banking and Nonprofit Banking clients. As

a life that includes my parents, my husband, my daughter and her beautiful family, incredible friends, supportive co-workers, international travel, opportunities to assist and support others, and a position with a wonderful organization whose core values align with my own.

Greatest Hurdle: My life changed when I gained the self-awareness and the courage to truly get to know myself. I began to define myself and my success, not by the expectations of others, but based on my own terms.

Best short advice: Listen to your heart. Continually ask yourself the important questions: Are you defining yourself by your own terms? Are your reaching for the right dreams? Are your pushing for the right reasons? Are you being true to yourself?

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Year Established Locally: 1984 Specialties Services: Relationship Banking, including, but not

a native Arizonan, Bateman is committed to her community and to continually seek opportunities to make it a better place.

Throughout her career, Bateman has served on more than 30 community and nonprofit boards.

She currently serves on the board of directors for the Sandra Day O’Connor Institute, Phoenix Symphony Orchestra, Phoenix Suns Charities and Charter 100AZ. She also participates as an advisory board member for Mesa Community College and The Foundation for Living Medicine.

As an active and experienced community and nonprofit advocate, Bateman has and continues to support and successfully lead numerous nonprofit fundraisers, galas and luncheons.

Bateman epitomizes achievement, determination and kindness. While her banking career has seen her rise from teller to executive, she has maintained a grounded perspective and touch that has made her a valued advocate,

Greatest Achievement: My greatest achievement has been creating the life that I now get to live —

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No. of Years with Firm: 12

limited to, Private Banking, Professional Banking, Executive Banking, Nonprofit Banking

friend, mentor, coach and sponsor. If you know Bateman, you know that she speaks from the heart when relating her own life experiences.

She has a strong passion for helping others succeed and to internalize their leadership identity to fulfill their purpose, passion and potential. Bateman inspires others to seek their truth, open their hearts and minds, and experience the power and abundance life brings when gratitude is felt authentically. Her monthly blog, “Dose of Deborah,” reinforces these core values and her positive outlook on life.

Bateman’s passion is a desire to give back and make a difference. She has garnered a long list of awards and recognitions, including, but not limited to, Mesa Community College’s Alumni Hall of Fame, Girl Scouts of America Women of Distinction-Leadership Award, The Stevie Awards – Best Executive in the Financial Services Industry, YWCA Tribute to Women – Business Leader Award and The National Association of Women Business Owners – Visionary Award.

Based on her expansive financial services career, philanthropic activities and success as a best-selling author, Bateman is a frequent featured speaker at seminars, meetings and conferences.

About Merestone Company Name: Merestone Main Office Address: 7232 E. 1st St., Scottsdale, AZ 85251 Phone: (480) 945.4631 Website: www.merestone.com Number of Offices in Metro Phoenix: 2 Number of Employees: 65 City Nationally Headquartered: Scottsdale, AZ No. of Years with Firm: 42

Camille Hill

Year Established Locally: 1974 Specialties Services: Event Production, Audio Visual,

President | Merestone

Camille Hill has been honored over the last several decades as one of the Top 100 Business Women in the State of Arizona. Presently, Hill is involved in her community and industry as a commissioner on the City of Scottsdale’s Tourism and Development Commission and a board member for the Scottsdale Chamber of Commerce. The Scottsdale Chamber has honored her with a Segnar and Legacy award. She is also a five-time judge for the Telly Awards.

Hill’s educational career includes the Ecole International Genève, University of Hartford, Yale and the Claremont Graduate School.

Starting her career, she worked as a scenic designer in New York City, and was on her way to work for the San Francisco Opera House when she was captivated by Arizona (actually,

Graphic Design, Scenic Builds

her now-husband Ted) and decided to stay. In 1974, Camille and Ted Hill, CEO of Unique Inc., co-founded Merestone.

Even after 40 years of owning and growing a production company, Hill still finds joy in “putting the key in the door each day,” she says.

Merestone is experiencing growth with its recent opening in Dallas this year. Says Hill, “The brand expansion results in very exciting times and lots of quick trips to Dallas!”

Scottsdale-based Merestone is an awardwinning, full-service production company that specializes in creating experiences that help the world’s best brands educate, communicate, inspire and elevate the people who mean the most to their company: employees, customers and vendors. The company produces oneof-a-kind, live and interactive events and

Greatest Achievement: That I had part in opening a production company which uses events to communicate, elevate and celebrate — no negatives!

Greatest Hurdle: Is staying ahead of the ever-changing government rules and regulations. Sometimes what seems to be a good thing is very difficult for business to manage. I always remember what Beverly Sills said: “I am an American woman, I have choices” (what a wonderful and lucky thing).

Best short advice: I would have to relate this back to being a business owner: Find the best accountants and attorneys you can afford, and listen to them.

environments that provide each audience with a true brand experience.

From corporate events, conferences and business meetings, to star-studded ceremonies, product launches and trade shows; Merestone is a single-source production company that offers in-house direct services and a versatile staff to glue it all together.

Within Merestone’s Scottsdale headquarters are multi-workstation editing suites, a graphics studio, multiple conference rooms, a production team, a sales and marketing team, and accounting and management offices. The office is conveniently located in Old Town Scottsdale, just minutes from Phoenix International Airport, surrounded by history, charming restaurants and local flavor.

Merestone is supported by a 65,000-squarefoot warehouse, located in Tempe, Arizona, that holds more than 50,000 items. The extensive inventory allows Merestone to offer many services in-house, including welding, sculpting, graphic printing shop, fine carpentry, scenic painting and specialty finishing. The warehouse also houses three studios, wardrobe, make-up, rehearsal and editing bays.

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About Local First Arizona Company Name: Local First Arizona Main Office Address: 407 E. Roosevelt St., Phoenix, AZ 85004 Phone: (602) 956-0909 Website: www.localfirstaz.com; localfirstazfoundation.org Number of Offices in Metro Phoenix: 1; 4 statewide Number of Employees: 17

Kimber Lanning

City Nationally Headquartered: Phoenix No. of Years with Firm: 13

Executive Director | Local First Arizona Kimber Lanning is an entrepreneur, business leader and community development specialist who works to cultivate strong, self-reliant communities and inspire a higher quality of life for people across our state. It is this passion that led Lanning to found Local First Arizona, the largest local business coalition in North America.

Lanning’s leadership has transformed Arizona’s local economy in a dramatic way.

With nearly 3,000 business members in LFA, Lanning leads a staff of 18 who work on a diverse array of programs that range from healthy local food access to entrepreneurial development in underserved communities to rural community development, each of which plays a part in building sustainable and resilient local economies.

According to Lanning, “The movement to diversify our economy is about the ecosystem of

Year Established Locally: 2003

businesses that support independent ownership.

Accountants, graphic designers, Web developers, attorneys — they all prosper when diverse, independently owned Arizona businesses are thriving. That ecosystem is lost when local business ownership is scarce.”

Lanning has overseen many policy changes that have fostered local economic development.

She has worked on streamlining the adaptive reuse program at the City of Phoenix, which has enabled more businesses to open up in older building stock that only just recently blighted the city. This policy work has been pivotal in jumpstarting downtown Phoenix’s revitalization.

Additionally, Lanning has worked diligently on government procurement policies that would enable more Arizona companies to compete, keeping more dollars and jobs flowing through the local economy.

Greatest Achievement: Local First is the largest local business coalition in the country, and we continue to grow by 50–60 new businesses per month. Our website directory is searched more than 64,000 times each month, and we have more than 180,000 followers, subscribers and fans. We’ve been successful at changing multiple policies and procedures to create a level playing field for locally owned businesses in order to create a more diverse and resilient Arizona economy.

Greatest Hurdle: Whenever someone proposes a new way of viewing the world, there will always be those who don’t want change. Thankfully, with economic studies, facts and determination, we’ve been able to create lasting change.

Best short advice: Never lose your sense of humor — it will get you through your toughest days.

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Specialties Services: Community Development, Place-making, Economic Development, Tourism

Under Lanning’s leadership, LFA was the first local business organization in the country to implement a Spanish language business accelerator program, called Fuerza Local, which works to encourage Latinos in underserved communities to think entrepreneurially to create a pathway to prosperity for themselves and their families. Additionally, the program provides tools to help them access capital at fair market rates, leaving predatory title loans places behind.

Lanning is consistently recognized and has received numerous awards for her diverse work and extensive leadership. Lanning was recognized as the Citizen Leader of the Year in 2014 by the International Economic Development Council, a pivotal moment of international recognition of the use of Localist policies as a force for economic development. In 2013, Lanning was the recipient of the Athena Award by the Greater Phoenix Chamber of Commerce, and her work in promoting adaptive reuse in Phoenix’s urban core was recognized by the American Planning Association when she was named Distinguished Citizen Planner of the year.

As Local First Arizona continues its work throughout the state, Lanning is making Arizona a better place, supporting locally owned businesses and building vibrant communities that residents are proud to call home.

Laurie Brednich CEO | HR Company Store, LLC

Laurie Brednich is an HR professional who’s successfully launched a new startup company — HR Company Store, which helps HR professionals find vendors partners. Brednich is an HR professional with more than 25 years of experience leading employee benefits at many major organization, such as American Standard, National Basketball Association, Pinnacle Foods, GoDaddy and, most recently, Sprouts Farmers Market. Brednich is a leader in the wellness arena and has created programs that have fundamentally transformed organizations. These unique programs have improved, and even saved employees’ lives. Her programs have helped good

companies become outstanding companies — even making it to the Fortune 100 Best Place to Work list.

Brednich graduated from Kean University with a degree in management science and also earned a certification in Web design from Chubb Institute.

Brednich has presented on health and wellness at many major conferences, including speaking at the U.S. Federal Reserve Bank. She has been quoted in several magazines as an expert in her field, and was one of the first benefits professionals to bring pet-therapy into the workplace. Brednich is part of the AWEE (Arizona Women’s Education and Employment) SheLEADS women’s leadership program’s inaugural class.

About HR Company Store Company Name: HR Company Store, LLC Main Office Address: P.O. Box 86940 Phoenix, AZ 85080 Phone: (623) 266-1143 Website: www.hrcompanystore.com

Greatest Achievement: HR Company Store. Creating a startup company is exceptionally challenging. Having never been an

Number of Offices in Metro Phoenix: 1

entrepreneur, learning all of the nuances around running a business from

City Nationally Headquartered: Phoenix

the ground up has been exciting and frightening all at the same time.

No. of Years with Firm: 1

Greatest Hurdle: Shattering the glass ceiling. As a woman, I’ve spent

Year Established Locally: 2015

my whole career fighting for respect from others and even from myself.

Specialties Services:

Sometimes, I have to take a beat just to say, “You are damned good at what you do; now go change the world!”

Human Resources, Employee Benefits, Wellness, Payroll, Training

Best short advice: Be happy with who you are.

Jean Ann Morris Sales Executive | LP Insurance Services, Inc. Jean Ann Morris is a 30-year insurance industry veteran who was recently named a 2016 Top Producer by Insurance Business America magazine. Her areas of expertise include property and casualty insurance solutions for her healthcare, medical and professional practice clientele. She is a long-time resident of the Phoenix area.

After growing up in Montana and attending Montana College of Mineral Science and Technology (Montana Tech), Morris began her career with State Farm in Wyoming, and eventually spent time at Wells Fargo

Insurance Services prior to joining LP Insurance in 2015. She has experience in property and casualty, personal and life/health. At LP, she currently specializes in supporting hospitals, physicians, nursing homes, urgent care centers, accountable care organizations and out-patient ambulatory care facilities.

Morris is very involved in the medical community and is currently a member of the Professional Liability Underwriting Society (PLUS) and the American Society of Hospital Risk Managers (ASHRM). In addition, she is active with the Boys & Girls Clubs of Metro Phoenix.

About LP Insurance Company Name: LP Insurance Services, Inc. Main Office Address: 2201 E. Camelback Rd., Suite 202, Phoenix, AZ 85016 Phone: (602) 889-9370 Website: www.lpins.net Number of Offices in Metro Phoenix: 1

Greatest Achievement: My success is measured on the

Number of Employees: 4

strength of the relationships I establish, so I am proud that most

City Nationally Headquartered: Reno, NV

of my clients stay with me year after year. I’m also pleased to have earned the trust of a broad referral network.

Greatest Hurdle: I had to learn that limitations, personal or professional, are not realities; they’re simply misplaced will

No. of Years with Firm: 1 Year Established Locally: 1996 Specialties Services:

power — which, once recognized, can be overcome.

Healthcare Professional, Medical Practice,

Best short advice: From Hamlet, “To thine own self be true.” If

Solutions, Employee Benefits

you’re honest with yourself it is easy to be honest with others.

Property & Casualty, Risk Management

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About Delta Dental of Arizona Company Name: Delta Dental of Arizona Main Office Address: 5656 W. Talavi Blvd., Glendale, AZ 85306 Phone: (602) 938-3131 Website: www.deltadentalaz.com Number of Offices in Metro Phoenix: 1 Number of Employees: 97 City Nationally Headquartered: Glendale, AZ No. of Years with Firm: 9.5

Sandi Ernst Perez

Vice President of Community Benefit | Delta Dental of Arizona Sandi Ernst Perez, Ph.D., is an animated, inspiring, intelligent woman with an innate ability to lead and ignite enthusiasm in others.

A clinical psychologist by training, Perez has mentored women in the field of psychology and, later, philanthropy since the 1990s. She is continually thinking not one but two steps ahead, intentionally creating opportunities for growth and development, not only of her own skills but the skills of those around her. This is where Dr. Perez’s smile shines brightly.

Perez moved to Arizona in the early ’90s. She and her husband, also a clinical psychologist, were recruited by Indian Health Services to work with the White Mountain Apache Tribe in the community mental health clinic. While serving in this role, Perez established the first child abuse prevention council on a reservation with a Native American tribe, a community-based coalition for Navajo and Apache counties focusing on

preventing child abuse and neglect as a key factor of the overall health and well-being of children.

Her love of children and passion for wellness and prevention followed her into the philanthropic sector once she moved to the Valley of the Sun in 1999.

For almost 10 years, Perez has served as the executive in charge of the Delta Dental of Arizona Foundation. She has led the Foundation’s efforts to focus resources on the prevention of dental disease and promotion of oral health, particularly for uninsured and at-risk children and youth.

Some accomplishments include: developing an annual community grants cycle in 2009; expanding the Delta Dental Sealant Program; funding oral health coalitions regionally, reaching expectant mothers with essential preventive services; and providing oral health leadership, currently as a steering committee member for the Arizona Oral Health Coalition.

Greatest Achievement: Positioning Delta Dental of Arizona as an oral health leader and funder. Oral health is not a priority when people think about their health, so I try to be a champion of the importance of a healthy mouth to a healthy body.

Greatest Hurdle: Strong, good communication is critical and is always a challenge in large organizations. Fundamental to excellent communication is listening well, and I am always trying to improve those skills.

Best short advice: Think big. Start small. Learn fast.

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Year Established Locally: 1972 Specialties Services: Group Dental Insurance, Individual Dental Insurance, Group Vision Insurance

With the Foundation’s support: • More than $7 million in funding and supply donations have been provided to support vital prevention programs for exams, cleanings, dental sealants, fluoride treatments.

• Grant making has increased from $100,000 to more than $750,000 annually.

• Children’s Dental Health Month is celebrated every February at the Children’s Museum of Phoenix. This year, 24,000 children and families visited the museum for dental supplies and educational dental sessions with pediatric dentists, orthodontists. The Colgate Bright Smiles, Bright Futures mobile dental clinic also spent two days screening children.

• More than 127,000 toothbrushes and more than 400,000 dental supplies were provided to nonprofits, clinics and schools statewide in 2015.

Prior to joining Delta Dental of Arizona, Perez served as vice president of program development for BHHS Legacy Foundation and as a senior program officer for the Arizona Community Foundation.

About Children’s Museum of Phoenix Company Name: Children’s Museum of Phoenix Main Office Address: 215 N. 7th Street, Phoenix, AZ 85034 Phone: (602) 253-0501 Website: childrensmuseumofphoenix.org Number of Offices in Metro Phoenix: 1 Number of Employees: 91 City Nationally Headquartered: Phoenix

Kate Wells

No. of Years with Firm: 14 Year Established Locally: 1998

CEO | Children’s Museum of Phoenix One of the top three children’s museums in the nation, the Children’s Museum of Phoenix engages the minds, muscles and imaginations of children and the grown-ups who care about them. Founded in 1998, the Museum opened to the public in the magnificent and historic Monroe School Building in downtown Phoenix in June 2008, welcoming once again a whole new generation of children. More than 330,000 visitors engage in the Museum’s 300-plus handson play experiences annually. Designed for children ages birth to 10, the Children’s Museum of Phoenix’s rich learning opportunities include more than 500 educational program offerings each year. The Museum also offers continued learning opportunities for children on school

break with Spring-, Summer- and Winter-break camps. In addition, the Museum has become a sought-after venue option for those looking for a unique and whimsical environment for special after-hours events.

Helmed by Kate Wells, chief executive officer, the Children’s Museum of Phoenix is a place specifically devoted to the concept of early learning through play. It is a place made especially for children, with experiences that are driven by what they want to do and how they want to do it — an empowering place where the child takes the lead, and the adult follows. Ninety percent of a child’s brain develops in the first five years of life; more than 80 percent in the first three! Therein lies the Museum’s greatest

Greatest Achievement: My daughters have turned into the young women a parent dreams about. Sure, they’re smart, kind, generous and funny — but their passion and drive to make the world a better place is something I’ve worked hard to cultivate in them — and it actually worked! I fully anticipate they’ll make the world a better place.

Greatest Hurdle: Managing my opportunities. So much goodness, so little time!

Best short advice: Say “YES” whenever you can. Adventure, opportunity, interesting people and your next big inspiration are just waiting out there for you to discover, and saying yes to that coffee meeting, yes to watching that TED Talk, yes to mentoring or being mentored — those are the keys to lifelong learning and moments worth living for.

Specialties Services: Early Childhood Education, School Readiness, Literacy, Health & Wellness Programs, Early Brain Development

potential for social impact — reaching young children when their minds and imaginations are most ripe for learning. Wells is also co-founder of the Museum, having served as one of the original members of the grassroots campaign that led to the Museum’s opening, and leading its capital campaign, which raised $12.3 million.

Wells holds a Bachelor of Science in Political Science from San Diego State University and is a graduate of Arizona State University’s Non-Profit Management Institute. She has been an awardwinning community volunteer and activist, working with the Girl Scouts Arizona Cactus-Pine Council, as Social Venture Partners Fast Pitch Mentor, and the ASU Downtown Advisory Council.

Understanding that the Children’s Museum of Phoenix serves a unique role in our community — the champion for children — Wells works tirelessly to help the Museum reach its full potential as a partner with parents, teachers, schools and community organizations to forward the early childhood education agenda in Phoenix and the state.

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Ashcraft, Robert, Ph.D., 34

Ernst, Jerry, 14

Lundy, James, 12

Richardson, Ty, 46

Balch, Shayna, 20

Espinoza, Julio, 45

Mackay, Christine, 11

Sheldon, Scott, 16

Bateman, Deborah, 54

Forget, Alain, 16

Mason, Chris M., 24

Slice, Kristin, 35, 52

Batiz, Suzy, 46

Helgeson, Brett, 18

Merrifield, Kristen, 34

Smith, Korina, 43

Beck, Megan, 33

Hill, Camille, 55

Morris, Jean Ann, 57

Syversen, Cato, 46

Belfort, Jose, 44

Iannarelli, John, 35

Mullan, JP, 16

Tollefson, Richard, 34

Birdthistle, William A., 33

Jannenga, Heidi, 23

Patrick, Sarah, 22

Tuttle, Thomas C., 33

Brassell, Julie, 12

Lamb, Natasha, 53

Perez, Sandi Ernst, 58

Waitkus, Jack, 16

Brednich, Laurie, 57

Lanning, Kimber, 56

Phillips, Steve, 35

Wales, Jimmy, 66

Bruhnke, Doug, 41

Libert, Barry, 33

Pribish, Mark, 35

Wells, Kate, 59

Cassidy, Brian, 12

Linthicum, David, 20

Pritzker, Penny, 46

Wind, Jerry, 33

Dexter, Kangelon “Kay,” 32

Liu, Amy, 26

Reichl, Jason, 20

Young, LeAnn, 41

Adopt Technologies, 18

Copper Springs Behavioral

GPS Insight, 2

Polsinelli, 44, 46

Affinity Technology, 64

Health Hospital, 20

Greater Phoenix Chamber of Commerce, 36

Poo~pourri, 46

CopperPoint, 5

Herb Box, The, 40

PoshBerry, 46

Cox Business, 60

Hopdoddy, 40

Positively Powerful – Triad West, 37

Alliance Bank of Arizona, 3, 12

CRE Index, 18

Horizon Community Bank, 10, 14

RBC Bank, 16

Alliance of Arizona Nonprofits, 34

Creditsafe, 46

HR Company Store, LLC, 57

Redirect Health, 21

American Express OPEN, 53

Delta Dental of Arizona, 58

Infusionsoft, 64

Sage One, 32

APS, 7

Department of Commerce, U.S., 46

Jennings, Strouss & Salmon, PLC, 24

Snell & Wilmer, 68

Arizona Diamondbacks 15

Desert Schools

JLL, 4

SRP, 17

Joe’s Farm Grill, 40

Starbucks, 38

Kaltura, 18

Swiftpage, 14

Kolby Kolibas, 37

Tempe Chamber of Commerce, 37

LGE Design Build, 16

Tesla Motors, 38

LP Insurance Services, Inc., 57

Thermos, 38

Liquid Capital, 9

ThinkSmallBiz, 64

Local First Arizona, 56

Video West Inc., 16

Lodestar Center for Philanthropy and

Warehouse District Council, 12

Ahwatukee Foothills Chamber of Commerce, 37

Arizona Relay Service, 8

Federal Credit Union, 19 Empowered Lab Communications, 52

Arizona Women’s Education and Employment, 37

Empowered PhXX, 35

Arjuna Capital, 53

Enviro-Master of Phoenix, 16

Avnet, 35

Espinoza Consulting, 45

Bank of the West, 25

FBI, 35

Banner Health, 67

Fennemore Craig, 8

BBVA Compass Bank, 66

Fisher & Phillips LLP, 20

Beech Medical Group, 20

FlyingYak, 14

Black Women That Rock, 36

Fresh Start Women’s Foundation, 36

Manley Films & Media, 14

Brookings Institution, The, 26

FSW Funding, 63

West Valley Women, 36

Maricopa Chamber of Commerce, 37

Business United for Scottsdale Schools, 12

GamEffective, 14

Wikipedia, 66

Mayer Hoffman McCann PC, 13

Cathy Hotchkiss, 63

Gilbert Chamber of Commerce, 37

Zinburger Wine & Burger Bar, 40

Merchants Information Solutions, 35

CBIZ, 13

Glendale Chamber of Commerce, 36, 37

Merestone, 39, 55

CCBG Architects, 12

Global Chamber, 41

Morgan Stanley, 19

Chandler Chamber of Commerce, 36

Global Chamber Baltimore, 41

National Bank of Arizona, 54

Children’s Museum of Phoenix, 59

Global Chamber Dallas, 43

Octane Raceway, 16

Clutch Technology Partners, 20

Global Chamber San Jose, 44

Phoenix Philanthropy Group, The, 34

Contigo, 38

Global Chamber Trinidad and Tobago, 46

Phoenix Sister Cities, 35

GoNimbly, 20

Phoenix, City of, 11, 46

In each issue of In Business Magazine, we list both companies and indivuduals for quick reference. See the stories for links to more.

Nonprofit Innovation, 34

Bold listings are advertisers supporting this issue of In Business Magazine.

WebPT, 23

CHECK US OUT /inbusinessmagphx @inbusinessmag

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A CANDID FORUM

BY

Social Media – Changing the World Wikipedia helps preserve and disseminate information

by RaeAnne Marsh

Wikipedia relies on a cadre of dedicated volunteers who are committed to a set of basic principles, which co-creator Jimmy Wales enumerated when he spoke in Phoenix last month at a BBVA Compass Bank event: • Wikipedia is an encyclopedia — not a library, not YouTube.

• Neutral point of view — all sides will be presented fairly.

• Free licensing — entries will respect copyrights and reject plagiarism, but access to Wikipedia will be free, and information thereon will be free to copy and use.

• Civility — there will be no personal attacks.

• Ignore all rules (IAR).

The aim is to stay fluid and flexible, and Wales explained, “The rules should be so obvious, they don’t need to be written down. We don’t want to let a rule stand in the way of improving Wikipedia.”

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“Imagine a world in which every person is given free access to the sum of all human knowledge.” That, Wikipedia co-creator Jimmy Wales told his audience at a BBVA Compass Bank event in Phoenix last month, was the genesis of a project that has become a worldwide resource accessed by 400 million visitors every month.

But making it truly accessible everyone necessitates presenting it in the language each individual can understand, and, Wales noted, the world’s linguistic diversity manifests in 288 languages. Currently, 234 languages have at least 1,000 entries each in Wikipedia. Especially with the explosive growth of mobile phones — big in the developing world and enabling Internet usage even in countries like Nigeria — Wales sees massive connectivity coming within 20 years. “It’s important for everyone to have an encyclopedia in their own language.”

Since its launch in 2001, Wikipedia has become “part of the infrastructure of the world,” Wales said, adding, “It’s a heavy responsibility.”

And it’s one that he is passionate about, as he observed, “The mainstream media is going to hell. And people want good information — not like Fox, which is opinionated.”

Said Wales, “What’s most important is honesty.” So all entries must go through the “Wikipedia community” of volunteers.

Still, there is a bias inherent in compilation of information.

“Wikipedians” (editors) are about 80 percent male; the average age is 26; and the percentage of doctorates is about double that of the general population. “That’s a problem, because people write about what they know,” Wales said. Details about Princess Di’s wedding dress, for instance, would likely not be covered by the above editors.

A challenge in the developing world is the fact that sources may not be available and, in some countries or cultures, there is not much that is written. “So we have to decide if we’ll allow sources from other languages,” Wales shared.

While acknowledging the need to understand the context of the reader and the fact that there is a cultural element to understanding information, Wales explained why the majority of Wikipedia entries are in English: The English language has the largest population online (native English speakers) and is “far and away the largest second language” spoken in the world.

IN THE BEGINNING, AND CONTINUING

To begin compiling the online repository of knowledge, Wales decided to use the 11th edition of well-respected resource Encyclopedia Britannica, which had at that time recently come into the public domain. He recognized that some information would have become dated, but “how much could possibly have changed with Julius Caesar, Henry VIII — a historically researched person?” A lot, it turned out.

And, he related, “There are huge debates over what to call something.” There have been changes over time in the way names are Anglicized, such as “Peking” being replaced by “Beijing.” The Polish city “Gdansk” was, earlier, referred to as “Danzig” — which is the German name for the city. In fact, notes Wales, most Polish rivers are known in English by their German name.

Trying to keep up with changes presents its own complications, Wales observed. What to do about referencing a person’s birthplace if that name has changed? “An entry might say a person was born in a place he would not have heard of, as it wasn’t called that then.”

Historical research, after all, is a continuing endeavor. Wales noted Wikipedia reflects that ongoing effort, including a “View History” as part of each entry’s “Discussion” page. “Historians of the future can see how Wikipedia [entries] changed — what was the consensus of knowledge at a given time, such as regarding the ‘weapons of mass destruction.’”

Although a business entry on Wikipedia “is not like just doing a promotional piece,” Wales says companies can email proposed information — with references — and ask the “Wikipedia community” to look at it. en.wikipedia.org/wiki/Wikipedia:Core_content_policies

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