July 2020 issue of In Business Magazine by InMedia

JULY 2020

Pandemic Not the First Challenge for these Black Businesswomen

CRE in the Time of

9 1 D I V O C ell t t a h t s e o d t a h w And ? y m o n o c e r u o t u o us ab

CHRO:

The New C-Suite Testing, Testing:

COVID at Work? Employee Retirement

Accounts for Small Business $7.95 INBUSINESSPHX.COM

THIS ISSUE Alliance of Arizona Nonprofits

Stay Healthy. Return Smarter. Return Stronger. With public health top of mind, Arizona is moving forward safely and responsibly together.

Since the start, the state of Arizona has worked hard to keep Arizonans safe and healthy while slowing the spread of COVID-19. By continuing to follow the data and recommendations of public health officials, we can safely move forward with the next steps of Arizonaâ&#x20AC;&#x2122;s economic recovery. And as our stateâ&#x20AC;&#x2122;s businesses gradually reopen their operations, the Arizona Commerce Authority is here to continue offering tools and resources for families, workers and businesses to return stronger.

www.azcommerce.com/covid-19/reenergizing-arizonas-economy

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JULY 2020

COVER STORY

CRE in the Time of COVID-19

As an economic indicator, commercial real estate is on the pulse of all sectors. Leading local experts share insights on what the market shows now and their views on what’s to come. FEATURES

At Work, Healthcare Starts with Testing

In Business Magazine looks at efforts aimed at keeping the workplace COVID-19-free.

Armored Leadership vs Daring Leadership

Eileen Rogers’ series explores the strength of risk in leaders’ calculations of risk and return in business.

The Next Normal: Change Your Game Plan or Become Irrelevant

The Weber Group’s series examines developing and sustaining organizational capacity.

New C-Suite: Why Companies Should Have a CHRO

COVID-19 has highlighted HR’s influence in making boardlevel company decisions.

PARTNER SECTION

DEPARTMENTS

By the Numbers

Does reality match businesses’ goals and perception of their diversity and inclusion efforts?

CRE

“Building Management Post-Pandemic,” “Waterfall Villa Residences in Chandler,” “Car-Free Lifestyle for Culdesac Tempe Tenants,” “Q1 Office Market Strong,” “Q1 Multifamily Shows Initial Effects of COVID-19,” “How Multifamily Urban Living Will Thrive Post-Pandemic” and “Luxury Apartments Planned for North Phoenix”

Healthcare

“Freeze to Heal” and “Clinics Are Still Slow to Adopt AI – Here’s Why They Shouldn’t Be”

Technology

“A New Generation of ‘Smart’ Textiles” and “MCCCD Is Committed to Expanding Our IT Workforce”

SUMMER 2020

UNITING, STRENGTHENING, AND ADVANCING ARIZONA’S NONPROFIT SECTOR. ARIZONANONPROFITS.ORG

Expecting the Unexpected by Kristen Merrifield, CAE, CNAP, Chief Executive Officer

The Alliance of Arizona Nonprofits is an action-oriented group of partners across Arizona — both nonprofits and those in the community who support them — dedicated to uniting, strengthening and advancing Arizona’s nonprofit sector. The Alliance envisions an Arizona where all nonprofits are valued, empowered and thriving.

CONTENTS

Arizona Gives Day

Republic Bank of Arizona Steps Up for Nonprofits during Pandemic

Expect More Arizona

Nonprofits Need Funding Now More than Ever

Alliance News Updates

Planning for the unexpected: Is there really a way to do that? It seems counterintuitive and darn near impossible. How do we as leaders even begin to start to plan for something we do not foresee ever happening? If you had told me in January that we would all be quarantined to our homes for several months, wearing masks when we got out in public and homeschooling our kids, I would have laughed out loud. Either that, or I would have thought you were recapping your latest zombie Netflix binge. But that is where we all found ourselves in mid-March. I would dare say that this was the first pandemic any of us have ever lived through — much less led through. Admittedly, we all had to adapt as we went and rely on the knowledge Kristen Merrifield, CAE, CNAP and lessons learned along the way. A colleague of mine even suggested capturing these experiences into a “Pandemic Leadership for Dummies” book. There may be some merit in that. One thing that has become increasingly clear, though, is how unprepared many of us are when it comes to crisis communication, business contingency plans and budget scenario planning. The truth of the matter is that the unthinkable can and will happen, and, as leaders, it is up to us to be ready to navigate our organizations and teams out of the catastrophic storm in which we currently find ourselves. Whether the effects of the coronavirus pandemic have been immediate for your nonprofit or business, or you’re bracing for what’s to come, you should be proactively preparing for the possible paths ahead. One way to do this is scenario budget planning. Let me state this up front: It’s very likely all of your anticipated scenarios will be wrong because there are so many unknowns right now — but so is your old budget. Predicting the future is not actually the goal here. Rather, scenario planning is intended to give you an ordered way of thinking and making decisions. It’s meant to help turn those “what if?” questions into “what we will do if … ” plans. Start with what you don’t know. What unknowns are weighing on you the most? What will have the biggest impact and require the quickest decisions (e.g., that June conference or September fundraiser)? You can’t address everything right away, and again, doing so would paralyze you. Get clarity on what’s most important. As a team, identify two to three scenarios. Remember, frame these as possible stories that could unfold and avoid diving directly into the spreadsheet and numbers. Gather the information you do have with input from people and communities who would be affected. Then, think about what timeframe you want to focus on. Be creative but realistic. CONTINUED ON PAGE 2

47 Alliance of Arizona Nonprofits

SPECIAL SECTION Presents

COVID-19 and the

Workplace

PREPARE TO IMPLEMENT BASIC INFECTION PREVENTION MEASURES

Sources of Information & Assistance The following are credible resources for information and assistance in response to the COVID-19 pandemic. Go to www.inbusinesspx. com for weblinks to access them directly. • Arizona Department of Health Services: daily COVID-19 updates • The Arizona Poison Control System (now available to take COVID-19 calls from Arizona providers and the general public) • Arizona Together: an initiative to help Arizona businesses, nonprofits and residents harmed by the COVID-19 outbreak. • CDC Workplace-School-Home Guidance • CDC on COVID-19 • Johns Hopkins University – COVID-19 facts, updates and tracking map • Maricopa County: daily COVID-19 updates • SBA Disaster Loan Assistance

For most employers, protecting workers will depend on emphasizing basic infection prevention measures. As appropriate, all employers should implement good hygiene and infection control practices, including: • Promote frequent and thorough hand washing, including by providing workers, customers, and worksite visitors with a place to wash their hands. If soap and running water are not immediately available, provide alcohol-based hand rubs containing at least 60% alcohol. • Encourage workers to stay home if they are sick. • Encourage respiratory etiquette, including covering coughs and sneezes. • Provide customers and the public with tissues and trash receptacles. • Employers should explore whether they can establish policies and practices, such as flexible worksites (e.g., telecommuting) and flexible work hours (e.g., staggered shifts), to increase the physical distance among employees and between employees and others if state and local health authorities recommend the use of social distancing strategies. • Discourage workers from using other workers’ phones, desks, offices, or other work tools and equipment, when possible. • Maintain regular housekeeping practices, including routine cleaning and disinfecting of surfaces, equipment, and other elements of the work environment. When choosing cleaning chemicals, employers should consult information on Environmental Protection Agency (EPA)-approved disinfectant labels with claims against emerging viral pathogens. Products with EPA-approved emerging viral pathogens claims are expected to be effective against SARS-CoV-2 based on data for harder to kill viruses. Follow the manufacturer’s instructions for use of all cleaning and disinfection products (e.g., concentration, application method and contact time, PPE).

The Virus May Be Spread in Other Ways It may be possible that a person can get COVID-19 by touching a surface or object that has the virus on it and then touching their own mouth, nose, or possibly their eyes. This is not thought to be the main way the virus spreads, but we are still learning more about how this virus spreads.

COVID-19 is a dynamic topic, with information — and therefore guidelines — changing frequently as knowledge and critical situations change.

JULY 2020

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53 “COVID-19 and the Workplace,” “Containing the Spread of COVID-19” and “Sources of Information & Assistance”

Guest Editor

Adrienne Bryant, designated broker at Bryant Commercial Real Estate, introduces the “Commercial Real Estate” issue.

Feedback

Clarence McAllister, Charlene Tarver and Oye Waddell respond to In Business Magazine’s burning business question of the month.

Briefs

“Cost Transparency Can Increase Sales 20%,” “’Walkie Talkie’ App Connects WFH Teams,” “Online ‘Shop’ Finds Freelancers,” “Mock Video Interviews Offer Feedback,” “Local Standouts Recognized for Achievements and Philanthropy,” “Phoenix Facility a Leader in Testing Hand Sanitizers and Other Skincare Products” and “Jobs, Wages and Value”

From the Top

Books

New releases give fresh insights on business thinking.

Economy

Seasoned wealth planner examines how uncertainty impacts business owners’ succession planning.

Legal

Attorney goes in-depth on rights of first offer and of first refusal — and tricky issues that may arise in real estate transactions.

Social Impact

Focusing this month on All About People, Tyler Butler’s series explores the myriad ways businesses give back and the positive ways their programs impact our community.

Assets

Disability impelled Spencer Tatum’s perseverance to ignite innovation and a fit in the fitness market.

2020 BMW 8 Series Gran Coupé Plus: The pandemic inspired business swag with a “stay healthy” message.

Startups

“SmartGurlz Sparks Passion in Computer Sci” and “Driving Arizona’s Startup Community from Behind the Generosity Flywheel”

Power Lunch

Pita Jungle: A New Vision and Mission

Roundtable

These black female business owners discuss challenges in the shadow of the pandemic’s decimation of business.

JULY 2020

INBUSINESSPHX.COM

WalletHub’s report on which states have the most racial equality in terms of employment and wealth, released last month, placed Arizona as number 3 in the country. WalletHub compared the difference between white and black Americans in the 50 states and the District of Columbia across eight key metrics that include annual income, unemployment rate and homeownership rate. wallethub.com/edu/state-economies-with-most-racial-equality/75810/

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July 2020

Hi Phoenix, Letâ&#x20AC;&#x2122;s spend smarter.

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 Jess Roman, Chief Executive Officer Arizona Small Business Association Central Office (602) 306-4000 www.asba.com

Learn more at getdivvy.com/phx1

Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org Doug Bruhnke, Founder & President Global ChamberÂŽ (480) 595-5000 www.globalchamber.org Jean Briese, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org Anne Gill, 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 Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Equality Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com Phoenix Metro Chamber of Commerce phoenixmetrochamber.com Scottsdale Area Chamber of Commerce scottsdalechamber.com Surprise Regional Chamber of Commerce surpriseregionalchamber.com WESTMARC westmarc.org

JULY 2020

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FINANCIAL WELLNESS

FOR A BE T T E R T OMOR ROW.

Financial insecurity can lead to stress, lowered productivity, and other issues for your employees. Introducing MY ALERUS, an online financial guidance tool that can help your employees make better financial decisions. Whether it is saving for retirement, making a plan to reduce debt, or maximizing health savings benefits â&#x20AC;&#x201D; your employees can now take control of their financial future. Start your companyâ&#x20AC;&#x2122;s path to financial confidence at MYALERUS.com/business.

July 2020

VOL. 11, NO. 7

Publisher Rick McCartney Editor RaeAnne Marsh Graphic Design Benjamin Little Contributing Writers

Kahalid Al-Maskari Ryan Buell Tyler Butler Brandon Clarke Michael D’Andrea Suzie Eyrich Leo Friedman Mike Hunter Bruce B. May Kassidy McDonald Bhavya Mohan Bassel Osmani Kris Price Prabhu Ramachandran Eileen Rogers Charlie Smith Rhiannon Staples

ADVERTISING

Operations Louise Ferrari

Business Development Louise Ferrari Cami Shore

Events Amy Corben

More: Visit your one-stop resource for everything business at inbusinessphx.com. For a full monthly calendar of businessrelated events, please visit our website. Inform Us: Send press releases and your editorial ideas to editor@inbusinessphx.com

President & CEO Rick McCartney

Editorial Director RaeAnne Marsh

Financial Manager Tom Beyer Office Manager Allie Schimmel

Accounting Manager Todd Juhl Corporate Office InMedia Company 45 W. Jefferson Street 7th Floor Phoenix, AZ 85003 T: (480) 588-9505 info@inmediacompany.com www.inmediacompany.com Vol. 11, No. 7 In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 45 W. Jefferson Street, 7th Floor, Phoenix, AZ 85003. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 45 W. Jefferson Street, Phoenix, AZ 85003 or visit inbusinessphx.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may 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. ©2020 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by any means without written permission by the publisher.

JULY 2020

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The Pulse of Business

As designated broker of Bryant Commercial Real Estate, which she co-owns with daughter, Jonvieve, Adrienne Bryant is responsible for defining the company’s strategic vision. Her sector diversification knowledge of 19 years across the real estate and construction industries enables her to provide strategic advice on acquisition processes from sourcing and identification to negotiation, due diligence and asset management. With her dynamic workforce and expertise, Adrienne has cultivated and substantially increased BCRE’s portfolio in the last six years. And, while she put emphasis on strategic planning, leadership, quality control, client relations and market analysis, Bryant also possesses a commitment to her

Real estate is a common thread in the story of business during, through and after the COVID-19 pandemic’s disruption. How are the various segments of our economy faring? A look at the real estate markets throughout Greater Phoenix gives a general snapshot to answer that. As a small, family-owned commercial real estate business, we understand the challenges that business owners are facing due to the impacts of COVID-19, not only on business but also on the lives of our families and community. We are experiencing extreme challenges in the small-business community and it is important that we assist business owners any way we can. One area we’ve identified that we can help with is assisting with guiding the conversations with landlords that will be necessary for those with brick-and-mortar space. We began these discussions in March 2020. By providing clear direction and documentation designed to allow business owners to demonstrate not only their awareness of the need to alter business plans but also their transparency in dealings with landlords, we were able to assist many of our clients and the business community at large to prepare for some difficult but necessary discussions. We continued these efforts monthly and continue to conquer new challenges. For this month’s cover story, In Business Magazine reached out to several of our leading commercial real estate brokerages for insights from the experts on how businesses in various economic sectors have been impacted by the pandemic, and how landlords and investors for those businesses also are impacted. These veteran real estate professionals also discuss trends that are happening in business operations from the standpoint of real estate needs and usage. Business operations and employee healthcare have become tied together like never before, with today’s overriding anxiety about COVID-19. This month’s feature article zeroes in particularly on testing as a workplace issue and procedures for working with employees. Roundtable this month explores another heady topic, as two black women business owners share their experience in overcoming challenges to establish their businesses as well as some of the new challenges in the wake of COVID-19. Diversity is the topic examined in this month’s By the Numbers. And among the many articles on a wide range of other topics from technology to sales are “Planning an Exit in Volatile Times” on succession planning and “New C-Suite: Why Companies Should Have a CHRO” on corporate leadership. In Business Magazine aims to be a partner and resource to help strengthen our business community. I’m pleased to help bring you this July edition, and hope you enjoy the read.

company’s greatest assets, her

Sincerely,

team and employees.

Adrienne Bryant Co-owner and Designated Broker Bryant Commercial Real Estate

YOUR HEALTH. YOUR BUSINESS Get alerts and all the information to benefot your business during this time by following our RSS Feeds and Social Media. Visit www.inbusinessphx.com to sign up.

[Adrienne Bryant shared more thoughts in a letter to In Business Magazine publisher Rick McCartney, which can be accessed with this Guest Editor letter at www.inbusinessphx.com.]

CONNECT WITH US: Story Ideas/PR: editor@ inbusinessphx.com

Certainty about Uncertainty So much uncertainty for so many businesses and industries will be our

unique perspective on business, racial

norm for a while. It is important that we each do all we can to continue

injustice and connection to our business

to keep our workers working and our business models functioning. With

community. It is leaders like her who embody

closures and openings and no revenue — this will be harder and harder.

the very essence of what will get us through

In this July issue, we look at the commercial real estate sector not just at

this pandemic and economic crisis. She expressed her interest so

the effect it will endure because of COVID-19 but at the view it gives us

eloquently in a letter to In Business Magazine that we are running it

of how so many sectors are experiencing the same issues.

(online) in its entirety alongside her Guest Editor letter above. Her

We thank Adrienne Bryant for her leadership and, as a small-business

letter is so inspiring and is a great example of the energy and effort

owner herself, for her dedication to doing what is best for her company

that our business community will certainly need to get through what is

and our community. We asked her to lead this issue because of her

to come.

—Rick McCartney, Publisher

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JULY 2020 • INBUSINESSPHX.C

THIS ISSUE Nonprofits Alliance

of Arizona

INBUSINESSPHX.

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SPEAKING OUT

COVID-19 has brought to the fore a new concern about the future of office space. As stay-at-home mandates are lifted, how will your company approach its space needs?

This month’s Feedback contributor Charlene Tarver is also a candidate for the Maricopa County Community Colleges Governing Board (County District 5).

CLARENCE McALLISTER

CHARLENE TARVER

OYE WADDELL

Founder and CEO Fortis Sector: Construction

Founder and Executive Director, The Women’s Economic Institute, Inc Convener, Black AZ COVID-19 Task Force Sector: Business Development

Founder and CEO Hustle PHX Sector: Nonprofit

Before COVID-19, we were considering selling our building and moving to a smaller office. We have since accelerated those plans. We are now making it optional for our office staff to come to the office. Our field teams are spread out on projects across the country. We have daily huddles to check out the status of the projects and to maintain camaraderie among our teams. Fortis fortisnetworks.com Clarence McAllister is the founder and CEO of Fortis, an engineering and construction firm established in Phoenix since 2000. He has bachelor’s and master’s degrees in electrical engineering from Arizona State University and an MBA from Nova Southeastern. He is also a licensed Professional Engineer and is a member of the Arizona Board of Technical Registration.

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

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

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COVID-19 re-prioritized how minority, women-owned companies do business — everything from marketing and inventory to packaging, distribution and staff development looks different in this new virtual environment. Minority businesses must re-evaluate how to stretch their dollars and whether bricks and mortar warrant higher fiscal priority over advertising and technology. Home-based and virtual offices are much more advisable right now, given the volatility of the economy and unpredictability of the virus. Small businesses with minimal foot traffic should absolutely consider streamlining their operations and can utilize Zoom and Google platforms to refine their brand, increase their domestic market share, and develop innovative ways to grow new global markets. According to American Express, the U.S. is home to more than 4 million African American and Latina woman-owned firms. These businesses have grown 35–50 percent over the last five years and are on the uptick, so this is a great time for minority womanowned companies to lean in — trim their overhead and enhance their digital brand. This is also an excellent opportunity to streamline back-office operations through online course offerings (marketing, finance or technology) at the Maricopa Community Colleges. Welcome to the new norm! Women’s Economic Institute, Inc. womenseconomicinstitute.com Charlene Tarver is founder of the Women’s Economic Institute, Inc (“The WEI”), a Phoenixbased Think Tank. The WEI is committed to closing the wealth gap for minority women entrepreneurs through policy, technical assistance and economic development.

Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessphx.com. Look for survey questions and other research on our business community.

At Hustle PHX, we understand the seriousness of the COVID-19 pandemic and the impact it has both on our employees and on the entrepreneurs we work with. Although stay-at-home orders have already been lifted, our company will continue to allow our employees to work from home until we feel it is safe to be in the office environment again. These times required some adaptation, but we made the necessary changes and most of our business can be done virtually as of now. Meanwhile, we will allow employees to go to the office to meet in exceptional circumstances. In those situations, we will require participants to use a face mask, provide hand sanitizer, and organize seat configuration respecting the six feet social distance. We also advise all employees who feel unwell or sick to inform us immediately so we can proactively take that into consideration before scheduling any meetings. In regard to office reconfiguration, we will closely follow the specific guidelines recommended by the state and implement them in a timely manner. Hustle PHX hustlephx.com Oye Waddell is the founder of Hustle PHX, a nonprofit organization that exists to equip and catalyze underserved entrepreneurs with the intellectual, social and financial capital they need to create sustainable business ventures for the common good. Fueled by his visionary style of leadership and the belief that all people have dignity, Waddell knows that some of the most innovative entrepreneurs in the United States are in underserved, urban communities.

QUICK AND TO THE POINT

BYTES

by Mike Hunter

‘Walkie Talkie’ App Connects WFH Teams Distance and digitization of communications can pose a challenge to the relationships upon which great work relies. Emails can be misinterpreted. Virtual meetings can feel stressful or strange. The blurring of private home life and public work life can impact employee well-being. Zello offers a way to empower every team member, allowing them to take ownership of their workload and their availability to connect. Zello uses a push-to-talk experience, modeled on walkie talkies, that feels familiar and natural to now-virtual teams who may not be used to working from home – rather than setting

Cost Transparency Can Increase Sales 20% Businesses don’t typically disclose information to consumers on how much it costs to produce a product. However, the study “Lifting the Veil: The Benefits of Cost Transparency” we recently conducted — along with our colleague Leslie John of Harvard Business School — provides evidence that doing so can increase consumers’ purchase interest by more than 20 percent. We also found that cost transparency increases purchase interest even when prices are unexpectedly low or high. This holds for cost transparency instated voluntarily by a business but not when a business is forced to do so such as being required by law. Even if prices aren’t exactly what the customer might envision, the customer appreciates the act of cost disclosure. It’s all about the psychology of disclosure and trust. Cost transparency represents an act of intimate disclosure and fosters trust. Heightened trust enhances consumers’ willingness to purchase from a business. Cost transparency conveys more sensitive information to consumers than operational transparency alone by referring to the disclosure of the costs to produce a good or provide a service. But it can be risky because it makes the business vulnerable to experiencing negative consequences such as consumer ire or supplier price increases. We conducted six experiments to illustrate the effects of cost transparency. One experiment was a partnership with a dining services organization of a large

up a formal meeting or waiting for someone to respond to a written (or text) message. zello.com

university in the northeastern U.S. in which a month of lunchtime sales was studied. That organization revealed the costs of producing a bowl of chicken noodle soup, including the cost of each component and the total cost. Cost transparency is associated with a 21-percent increase in the probability of buying a bowl of soup with the probability increasing from 2.3 percent to 2.8 percent per customer. Another experiment looked at a private online retailer and its sales of a leather wallet. For three of the wallet colors, the online product detail page included, among other information, the costs incurred to produce the wallet. The company mistakenly failed to use the graphic on two of the colors for the wallet. We compared the daily sales between the wallet colors before and after the graphic was introduced over a 92-day period. The infographic increased sales of the wallets by 22 percent. These studies imply that the proactive revelation of costs can improve a company’s bottom line. The study was reported in Marketing Science, a premier peer-reviewed scholarly marketing journal published by INFORMS, the leading international association for operations research and analytics professionals. —Bhavya Mohan, a professor in the marketing unit at the University of San Francisco, and Ryan Buell, a professor in the technology and operations management unit at Harvard Business School

Online ‘Shop’ Finds Freelancers Giggrabbers’ “Freelance Deals” helps people and companies find freelance professionals in a simplistic way that some people may recognize: online shopping. The company aims to match freelance professionals with companies looking to bring on additional talent remotely or to outsource existing services at great rates. Similar to online shopping, Giggrabbers’ new feature lets hiring personnel pick a specific service for a project from 14 different service categories, narrow down the price point and sort freelance professionals using different filters. Employers can purchase services using an “add to cart” option which then opens up virtual project management, invoicing and communication features. giggrabbers.com/freelance-deals-and-services

Mock Video Interviews Offer Feedback Employers have begun to rely more heavily on video interviews to find the perfect employee. HR professionals appreciate their practicality and efficiency, as well as opportunity to personalize the candidates beyond their two-dimensional resume. GradeMyVideoInterview.com offers a revolutionary new service for job seekers that allows them to create a mock video interview and have it evaluated, point by point, by a team of employment experts who also provide comprehensive feedback and advice on the elements that employers consider during the hiring process. grademyvideoInterview.com

INFORMS informs.org

Cost transparency represents an act of intimate disclosure and fosters trust. Heightened trust enhances consumers’ willingness to purchase from a business.

JULY 2020

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QUICK AND TO THE POINT

LOOKING GOOD

Local Standouts Recognized for Achievements and Philanthropy ACHIEVEMENTS

Southwest Behavioral & Health Services: Healthy Arizona Worksite Southwest Behavioral & Health Services, an innovative leader in behavioral health, was recognized last month by the Healthy Arizona Worksites Program — a public health initiative offered by the Arizona Department of Health Services and the Maricopa County Department of Public Health.— for its efforts to positively affect the health and well-being of employees, their families and the community. healthyazworksites.org sbhservices.org

AvAir: No. 2 Parts Supplier Globally Arizona-based AvAir, an industry leading inventory solutions provider for the aviation aftermarket, continues to be recognized as a global authority by earning the No. 2 position on The Aviation 100’s “Parts Supplier of the Year” rankings. AvAir offers customized solutions for customers and suppliers to buy, sell, exchange, loan, lease or consign more than 26 million in-stock aircraft parts. AvAir.aero

PHILANTHROPY

Cox Steps Up for Community Cox Communications has contributed nearly $11 million in cash and in-kind COVID-19 contributions to date in Phoenix and Southern Arizona. Its local gift of $25,000 to St. Mary’s Food Bank in Phoenix will provide 175,000 meals. Cox donated 10,000 protective shoe covers, normally worn by its field techs, to Banner Health to help protect frontline healthcare heroes against possible exposure to COVID-19, and donated the fresh bulk food from the temporarily closed Cox Café to St. Vincent de Paul’s efforts to feed and clothe those living on the streets. cox.com

U-Haul’s Fire Rescue In mid-June, with the Bush Fire in Tonto National Forest the largest active burning fire in the country and still uncontained after having burned 65,000 acres, U-Haul offered 30 days of free self-storage and U-Box® container usage at selected locations to impacted residents. “As the Bush Fire spreads, people are having to leave their homes and move to other parts of the Valley,” stated Andy Smith, U-Haul Company of Eastern Arizona president. “The fire is creating an immediate need for people to protect their belongings.” uhaul.com

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Jobs, Wages and Value As business tries to gear back up from the COVID-19 shutdown, the health of the economy is a major concern. Businesses are concerned about their profitability, and employees are concerned about their wages. Business.org, a company that researches and compares the top business products and services, conducted a study on pay rates across the country for the “essential workers” who have recently become high-profile for getting food to our tables, packages to our doorsteps, keeping our shelves stocked and, essentially, ensuring our community keeps running. The study found that, in every state, essential workers make far less than other occupations — ranging from a deficit of 7.8 percent in Nevada to 47.2 percent in the District of Columbia. Of the essential workers jobs considered, cashiers make the least nationwide,

at an average of $23,600, while postal service employees make the most, at an average of $51,300. Healthcare workers were not included in the essential worker salary averages. Arizona ranks No. 12 for essential worker salaries. The average salary of essential workers in Arizona is $32,464, while the average salary for all occupations is $38,410. Nationwide, those numbers are $32,474 and $39,810, respectively. Nationwide, essential employees earn an average of 18.2 percent less than employees in other industries. In Arizona, they make 155 percent less. Data was drawn from the Bureau of Labor Statistics’ National Occupational Employment and Wage Estimates report from May 2019. —RaeAnne Marsh Business.org business.org

Phoenix Facility a Leader in Testing Hand Sanitizers and Other Skincare Products The market for skincare products is growing rapidly. By 2025, the global market will be worth an estimated USD 189.3 billion. In the US alone, total sales of facial skincare products were estimated at USD 62.3 billion in 2018, with total revenue for all skincare products at around USD 17.78 billion. Consumers are clearly keen to buy skincare products. In the U.S. and many other markets, claims attached the to use of skincare products must be substantiated before the product can be offered onto the market. SGS is the world’s leading inspection, verification, testing and certification company, recognized as the global benchmark for quality and integrity. Earlier this year, SGS acquired Thomas J. Stephens & Associates, Inc., a nationally recognized clinical research organization headquartered in Texas and with a facility in Phoenix serving the cosmetic and personal care industry as a leading provider of safety & efficacy testing and contract research services. “This acquisition expands SGS’s Consumer & Retail service portfolio in the clinical testing sector for cosmetic and personal care products in the USA,” says Frankie Ng, CEO of

WalletHub ranked Arizona No. 3 in the country of states whose unemployment rate has bounced back strongest since what its analysts feel was the peak of the pandemic. wallethub.com/edu/states-unemployment-claims/72730/

SGS. “The combination of Stephens and SGS Harrison Research Laboratories in New Jersey gives SGS a leading position in this field in the USA.” SGS has more than 94,000 employees across 2,600 offices and laboratories around the world, which includes SGS Stephens. When it comes to safety and compliance, manufacturers need to be certain in which category their product falls. For instance, the standards applied to personal care items, such as adult diapers and personal hygiene wipes, are very different from those that apply to medical devices. Even within product categories, it can be a challenge to work out which standards apply. For example, in one of the fastest growing segments in the healthcare industry – wheelchairs and walking aids – what standard is enforced depends on the market and the attributes of the product. SGS Stephens uses its expertise in testing the claims made surrounding skincare products — including the current hot commodity of hand sanitizers — to help cosmetic and personal care product manufacturers access U.S. markets. —Mike Hunter SGS sgs.com

MINDING THEIR BUSINESS

Spencer Tatum: Igniting a Fit in Fitness Disability impelled his perseverance and innovation

Photo courtesy of Ignite THP

by Kassidy McDonald

In the first grade, the future Ignite THP founder Spencer Tatum was diagnosed with dyslexia and dysgraphia. He decided at that early age he would not allow his disabilities and bullying from his peers to define him but rather turned to his advantage his ability to persevere and adapt to changes around him to grow his business. It was sports, in fact, that taught him how to persevere and overcome challenges through great work effort. “Having a learning disability has been a blessing in disguise, because it gave me the ability to truly learn instead of just memorize information,” says Tatum. “Fitness is an incredible way to help clear your mind and build confidence.” He found that exercise helps create new pathways in the brain and is a positive way to channel emotions. Aiming to be an elite athlete, he went on to play football at Ohio University, but then a hip injury took him out of the game completely. “I had two options, either sit around and feel sorry for myself or take my learned skills as a college athlete and accept that I needed to pivot my career goals,” Tatum says. “Playing sports in school gave me a vehicle to express myself and ultimately led me down a journey to understand the physiology of human performance.” While recovering from his injuries, Tatum studied how to optimize human performance and founded his company, Tatum Human Performance, or Ignite THP. To stand out in the saturated world of personal training, he developed a unique niche in the sports world, specifically golf: He created a training process that starts with laying the foundation to understand how to assess a client’s abilities, needs and goals and then tailoring an individualized workout and wellness plan. Tatum also worked to leverage his already strong relationships as a student athlete to network with people within the industry and partner with leaders in the fitness technology space to better offer his clients a completely customizable experience while training. These collaborations have allowed the company to stand out from others through integrating services like Bod Pod, which increases accuracy in body composition testing; video analysis; and K Motion K Vest, for 3D data and biofeedback on training. “The biggest thing in building clients is having the ability to put yourself out there, listening to what people want and focusing on how to solve their problems from a multidiscipline, holistic approach,” says Tatum. “We worked to find a specific market that had the biggest opportunity and also aligned with my vision. We then went to work to search the best ways to evaluate our clients and business and provide the best product to achieve their goal. This process has not only created success for myself, but for our clients and team.” To build his team, Tatum assessed each applicant’s understanding of human performance and passion for the industry. Another metric was grit and ability to find solutions to challenges. “In a startup, you need to have people who

believe in your vision and want to take it to the next level. I first look for the best individuals who are constantly learning, wanting to grow, and want to be part of something bigger than themselves,” says Tatum. “ Once we have established these fundamental concepts, the next step is looking at their personal objectives and how they see themselves achieving in our system. The last key concept is looking at their technical skills set and asking if it aligns with the role.” This process, he notes, is not as easy as it may sound. Most recently, the company has had to pivot and adapt to the rapid spread of COVID-19. Tatum quickly transitioned all clients to THP’s digital tools, which includes online training sessions, instructional video training and more. Tatum was able to use THP’s digital assets and deliver a dynamic experience from home. Tatum also launched a free 30-day challenge called #IgniteYourImmunity through the app to inspire people to work out from their home and create healthy habits during a stressful time. Tatum and his Ignite THP team’s quick response to COVID-19 has allowed them to thrive during an uncertain time. Since restrictions have been lifted in Arizona, the team has elevated their training experience by having options for both in-person and digital training models. Tatum believes it has been his ability to take a different approach at looking at people, a positive mindset and learning to use obstacles as learning moments that has helped his company thrive.

DRIVE TO GOLF EXCELLENCE This year, Spencer Tatum was recognized in Golf Digest as one of the top 50 best golffitness professionals in America for 2020. The publication’s annual list is made up of the country’s most accomplished fitness trainers who help golfers play better, feel better and avoid injuries. As a leader and innovator in the field, Tatum has taken his approach to clients at all physical levels, from youth to elite athletes. He currently works with the Arizona State University golf teams, as well as some of the best golfers in the world, including PGA tour players Jon Rahm and Kevin Chappell, as well as LPGA player Anna Nordqvist.

Ignite THP ignitethp.com

According to the United States Bureau of Labor Statistics, it is estimated personal training and fitness jobs will increase by 10 percent until 2026.

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ENTREPRENEURS & INNOVATORS

SmartGurlz Sparks Passion in Computer Sci THE ‘SMART’ IN SMARTGURLZ The unique, interactive, self-balancing robots and dolls that comprise the SmartGurlz line are controlled with the SugarCoded™ App than can be downloaded onto an IOS or android phone or tablet that, once downloaded, requires no Wi-Fi, just Bluetooth. A full, step-by-step tutorial teaches basic coding strategies so young girls can maneuver the toys around obstacle courses of their own design. With several levels of learning and challenges, the toy keeps kids occupied several hours a week for four to six months.

Appearing on ABC’s “Shark Tank” earlier this year, SmartGurlz founder Sharmi Albrechtsen beat out 40,000 other entrepreneurs and negotiated with guest “shark” Richard Branson before closing a deal with Daymond John on her line of groundbreaking toys that use an award-winning robotics platform to teach basic coding skills to girls as young as six years old. “Many girls’ toys lag behind in the development of spatial skills, hands-on problem solving skills, and confidence with coding and computer science,” explains the Scottsdale resident. “These are exactly the skills that SmartGurlz aims to develop.” Albrechtsen, a robotics aficionado, educator, author and mom with a passion for closing the diversity gap in technology, started SmartGurlz in 2015 after becoming frustrated with the lack of STEM toys available for her daughter. The SmartGurlz flagship product, Siggy, was the first robotics product designed specifically for girls. More than 30,000 girls have been educated with SmartGurlz. The Scottsdalebased company partners include

BlackGirlsCode, Girl Scouts of the United States of America and Morrison Mentors. Its recently expanded product line now includes Smart Buddies (a joint-venture with Pitsco Education), which features a diverse set of characters suitable for both girls and boys, is targeted toward schools. “Due to COVID-19, our warehouse for SmartGurlz was shut down for 15 weeks. We, therefore, transferred all customers to Smart Buddies and created a virtual education opportunity,” she says, explaining the company’s name is still SmartGurlz but it can offer only its Smart Buddies range during the pandemic. “Luckily our school distribution company stayed opened and delivered during the pandemic.” Since May 1st, SmartGurlz has been offering free webinars and reducedpriced camps. “Our camps became an overnight success, selling out in weeks and named Best Virtual STEM Camp by Good Housekeeping,” says Albrechtsen. “Therefore, we expanded our camp offerings and only offer an occasional webinar.” Sharmi Albrechtsen was recently given AdWeek’s Disruptor Award in

Championing Gender Diversity in Advertising and Tech. She has also been named Women Entrepreneur of the Year 2018 by the Asian Chamber of Commerce as well as named a Morgan Stanley Multi-Cultural Innovation Lab fellow. Albrechtsen has been featured in Forbes, Huffington Post, Financial Times, “Fox Business News,” “Fox and Friends” and CNN. She is also a featured TEDx speaker. —Mike Hunter SmartGurlz smartbuddies.com

StartupAZ Foundation formed in 2015 to empower a stronger statewide ecosystem for high-growth companies to scale, catalyzing Arizona’s new economy rooted in technology and innovation. To be considered for the Collective, companies must have a scalable business model with an innovative, marketdefining technology. startupaz.org

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Five years ago, StartupAZ Foundation was nothing more than a shared vision among a group of entrepreneurs and community leaders who believed our ecosystem could be so much more. We wanted to create something that would empower local entrepreneurs to grow, give back and positively impact the state — and simultaneously begin to shift Arizona’s economy away from the volatile real estate industry and more toward innovation and technology. Today, as we enter our fifth year under the dedicated leadership of our board — Jack Alling, Ji Mi Choi, Brad Jannenga, Jim Prendergast, Gregg Scoresby, Brenda Schmidt and Sarah Strunk, along with our chairman, Tom Curzon — I find myself continually reminded of the acts of generosity and collaborative spirit that have fortified Phoenix’s startup ecosystem. This is prevalent in so many ways — from the dozens of Arizona-based startups and venture firms that have taken the Generosity Pledge, to the founders and startup leaders

Just one year ago, WalletHub ranked Arizona seventh best of U.S. states in which to start a business.

who have dedicated themselves to the growth and success of one another. And every year since the launch of the StartupAZ Collective, an initiative dedicated to increasing the performance and growth of the region’s highest-potential startups, I’ve seen this spirit of generosity play out among the StartupAZ Founders in Residence network and the founders in the Collective. These benevolent entrepreneurs actively contribute to the Valley’s generosity flywheel by casting aside the fear competition and instead opting for collaboration and alliance in driving their collective performance. It’s often these acts of generosity that build up our community and local economy more than capital. The performance numbers of the Collective members back this up. In the last two quarters of 2019, these companies increased their revenue by an average of 329 percent. —Brandon Clarke, co-founder and interim CEO of StartupAZ Foundation (startupaz.org)

Photo courtesy of SmartGurlz

Driving Arizona’s Startup Community from Behind the Generosity Flywheel

Meet Uncertain Times with Confidence. Quarles & Brady understands your COVID -19 business issues and provides advice and solutions to your challenges.

VISIT OUR COVID-19 MICROSITE AT WWW.QUARLES.COM for current information on how legislation and announcements resulting from the pandemic impact your employees and business operations. FOR INFORMATION, PLEASE CONTACT Leonardo Loo, Phoenix Office Managing Partner, at 602.229.5638 or leonardo.loo@quarles.com.

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METRICS & MEASUREMENTS

Diversity Not Compromised by Pandemic

Is diversity performance overestimated? Clutch is the leading ratings and reviews platform for IT, marketing, and business service providers. Each month, over half a million buyers and sellers of services use the Clutch platform, and the user base is growing over 50 percent a year. Clutch has been recognized by Inc. Magazine as one of the 500 fastest growing companies in the U.S. and has been listed as a top 50 startup by LinkedIn. clutch.co

DDI is a global leadership consulting firm that helps organizations hire, promote and develop exceptional leaders. From first-time managers to C-suite executives, DDI is by leaders’ sides, supporting them in every critical moment of leadership. Built on five decades of research and experience in the science of leadership, DDI’s evidence-based assessment and development solutions enable millions of leaders around the world to succeed, propelling their organizations to new heights. ddiworld.com

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by Mike Hunter

For businesses, workplace diversity remains an important objective. More than three-quarters of HR professionals (79 percent) believe their company is diverse, according to new data released in May from Clutch, the leading B2B ratings and reviews firm. Almost three-quarters of employees (74 percent) believe their company is committed to improving diversity. Despite the COVID-19 pandemic, 57 percent of employees say their company has become more diverse in the past year. Experts say this can be attributed to a more diverse American workforce overall and an increase in companies employing international workers. Experts warn, however, that employees sometimes mistake their company having some diversity with having strong diversity. Employees believe their workplace is diverse, but they’re not the most objective or accurate judges. It is easy for people to overestimate their workplace’s diversity because people may think one employee of a different background represents the entire company, says Faizan Fahim, content marketing lead for ServerGuy, an IT company. Female leadership and LGBTQ inclusion aren’t top priorities for employees. Just 1 in 5 (20 percent) workers value hiring more women into leadership positions, and 17 percent value increased recruiting of underrepresented groups. Only 14 percent of employees value heightening LGBTQ awareness and sensitivity at their company. The most popular diversity initiative is trainings, with 24 percent saying they would like employee diversity training and discussions at their workplace. Diversity plans can continue during the pandemic, despite challenges created by the COVID-19 business environment; new flexible work schedules allow for increased geographic and gender diversity. However, Jessica Lambrecht, founder of recruiting consultancy The Rise Journey, points out that growth and hiring can decrease while overall diversity goals remain the same. Yet the study Executive Leadership Outlook 2020: Five Actions for Building a Stronger Executive Bench by global leadership consulting firm DDI reveals women vying for CEO are commonly overlooked; more than half of organizations

didn’t assess a single female candidate when looking for their next CEO. When only one woman was in the CEO pool, she was never selected for the role. Furthermore, female candidates comprised only 25 percent of executive candidates and 19 percent of C-level candidates. “The lack of diversity revealed in the Executive Leadership Outlook 2020 presents missed opportunities to identify and develop talent from new backgrounds and areas,” says Stephanie Neal, director of DDI’s Center for Analytics and Behavioral Research. “Organizations that want to unleash new capabilities and future talent need to seek out leaders who think and operate differently. They’re going to need stronger, more inclusive pipelines to find these fresh perspectives and wisdom.” Diversity in the Workplace: New Data clutch.co/hr/resources/diversity-in-workplace-statistics Executive Leadership Outlook 2020 lp.ddiworld.com/eg/2020-executive-leadership-outlook-g

Top Diversity Initiatives HR Professionals Want at Their Companies Employee training and discussions

24%

Women in leadership

20%

More recruiting of underrepresented groups

17%

Racial and ethnic minorities in leadership

17%

LGBTQ awareness and sensitivity

14%

Donations to external diversity initiatives

Do HR Professional Believe Their Company Is Committed to Workplace Diversity? No

Neutral

19%

Yes

74%

Despite the COVID-19 pandemic, 57 percent of employees say their company has become more diverse in the past year, according to the Clutch 2020 Workplace Diversity Survey. clutch.co/hr/resources/diversity-in-workplace-statistics

Source: Clutch 2020 Workplace Diversity Survey (clutch.co/hr/resources/diversity-in-workplace-statistics)

PROPERTY, GROWTH AND LOCATION

Building Management Post-Pandemic The real estate sector’s efforts to mitigate the threat of the contagion by securing buildings have already put it at the forefront of the global response. However, the industry’s most important contribution will be in helping to create an operational framework, within which some semblance of normalcy can be restored.

TECHNOLOGY WILL BE A CRITICAL ENABLER

Innovative technology solutions will facilitate real estate owners and operators to navigate the new conditions and recover from the challenges posed in the post pandemic recovery phase. These are some of the most impending issues that rightfully need to be solved: Diligent and rigorous sanitation methods: It has been estimated that we are several months away from an effective vaccine to combat Covid-19. In the interim, prevention is the only viable strategy at our disposal. Tech-enabled hygiene management facilitates the automation of tailor-made and venue-specific disinfection and deep cleaning routines, which can be rolled out at a portfolio scale. Such digital tools also enable inventory management to ensure the availability of essential supplies, and platforms on which to share live sanitation and health updates with occupants. Contactless visitor check-in and occupant comfort controls: Restoring tenant and occupant confidence is perhaps the most significant role the real estate industry can play in

Photos courtesy of Cambridge Properties (left) and Culdesac (right)

GET REAL

reviving economic activity. Contactless visitor entry with QRcode-enabled mobile sign-in, touch-free elevator entry and exit, app-based control of ambient comfort like temperate and lighting, and more, can help build trust with occupants. Portfolio-wide analytics, compliance and automation: Cloud-based analytics and compliance monitoring of building systems across properties will be crucial to respond with agility to the new HVAC guidelines and dynamic tenant needs when properties open. For instance, stakeholders can gain portfoliowide visibility of adherence to new HVAC guidelines and indoor air quality data, identify areas to act on immediately, and provide live dashboards to tenants on HVAC compliance. Operators are better equipped to deploy changes to multivendor building automation systems across properties such as bulk changes to schedules and overrides, automating triggerbased sequence, audit logs and more. Unified, Portfolio-wide Operational Command: Gaining a datadriven 360-degree view of operations, from a unified digital hub is a game-changing advantage in the current crisis. Such software platforms allow CRE businesses to simplify the implementation of custom solutions, and automate workflows ranging from sanitation and routine maintenance to tenant management and remote BAS operations, from a single command center. —Prabhu Ramachandran, founder and CEO of Facilio Inc. (facilio.com), an enterprise-wide platform for data-driven property operations and maintenance across real-estate portfolios

by Mike Hunter

Waterfall Villa Residences in Chandler

Car-Free Lifestyle for Culdesac Tempe Tenants

Models are open at Chandler’s newest lock-and-leave condominium community, Waterfall Villa Residences, by Ironwood Development Group. The private, gated, resort-style community featuring open and modern single-level villas is attracting buyers from all demographic groups. Villa layouts are designed with the flexibility of two- and three-bedroom floorplans ranging from 1,225–1,630 square feet, including an attached two-car garage. Behind the private gates, buyers are greeted with a palm-lined luxury pool with cabanas and firepit, ramadas and gathering areas and lush green community spaces. While adapting to new safety procedures, Waterfall sales offices remain open under the direction of Cambridge Properties, the community’s managing broker. The Sales Team is providing virtual and private, onsite opportunities to facilitate the home-buying journey while prioritizing the health and safety of buyers. liveatwaterfall.com

Planned to open in 2021, Culdesac is a $140-million project with 636 residential units, 24,000 square feet of retail and 35,000 square feet of amenities on 16 acres. Residents will not have private cars or parking spaces although the retail area will have ample parking with 150 spaces for retail visitors and resident guests. In typical developments, the parking lots often dictate the design — and without this constraint, Culdesac Tempe is able to offer three times the average amount of green space, along with friendly courtyards and community spaces, contributing to a walkable lifestyle. The development is designed around the mobility needs of residents, with on-site light rail station, dedicated rideshare pick-up zones, on-site scooters, bikes, and on-site carshares for weekend trips. Culdesac is appealing to residents all over the country. The national waitlist is comprised of 40 percent of people outside of Arizona. culdesac.com

Culdesac Tempe marks the nation’s first and only agreement between a city and a developer to build a neighborhood-scale community with zero residential parking. culdesac.com

Q1 OFFICE MARKET STRONG Colliers International reports the Greater Phoenix office market posted a healthy first quarter, being the 32nd consecutive quarter with positive net absorption. More than 100,000 square feet of positive net absorption took place in the first three months of 2020 and the vacancy rate remained below 13 percent. Leasing has declined during the coronavirus crisis, but experts anticipate a rapid improvement after the economy is reopened. Vacancy is expected to marginally increase during the year because of new supply coming online and businesses re-evaluating their space criteria. The economic impact of the COVID-19 outbreak is nearly impossible to estimate and data is emerging every day. colliers.com/en

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PROPERTY, GROWTH AND LOCATION

BY MIKE HUNTER

Luxury Apartments Planned for North Phoenix

Q1 Multifamily Shows Initial Effects of COVID-19 The Q1 2020 Phoenix Multifamily Quarterly Report recently released by ABI Multifamily shows that, while the start of 2020 was strong — with rent growth, healthy occupancy rates, lower cost of living and high renter demand all pointing to another extraordinary year — the quarter had a poor finish in the month of March as a result of the initial effects of COVID-19. The future has yet to tell how the multifamily industry will be impacted by the COVID-19 global pandemic. With a development pipeline full of planned and under-construction properties, the timeline for the completion of these projects is unclear. Currently, an estimated 23,347 units are in the planning stages across 93 properties. A total of 19,730 units were listed as under construction in 79 properties. abimultifamily.com

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How Multifamily Urban Living Will Thrive Post-Pandemic

It is not lost upon us multifamily developers, owners and operators that fear, as it relates to a person’s living accommodations, is a very real concern in the age of COVID-19. In fact, we are already diligently working to further flesh out new building and design standards for urban communities, especially as it pertains to high-density vertical communities. Innovations such as touchless access, package concierge, virtual walkthroughs and tours as well as voice control technology are less of an ideation and more of a standard as we look forward. As renters continue to be concerned, it’s important that we overcommunicate with them about actions being done to ensure their health and wellbeing. They want to know that communal spaces are being routinely sanitized, extra attention is paid when cleaning and preparing units for their occupancy, and clear social distancing protocols are in place and enforced regularly. In the wake of this pandemic, these are becoming a much higher priority than they may have been in the past for both residents and investors alike and will ensure these multi-family developments continue to thrive. Prior to the pandemic, the Greater Phoenix area was one of the top three metro areas in the U.S. in terms of both population and employment growth. According to figures provided by real estate economists, Arizona accounted for 10 percent of all interstate and international moves in the U.S. Once the COVID-19 pandemic eases, migration is anticipated to return to regular levels. In fact, Arizona could see many more people and businesses moving from dense coastal cities and states like New York and California to warmer and more hospitable markets such as Arizona, and when they do, the multifamily urban living communities will be ready for them. —Michael D’Andrea, vice president of development at the Related Group (www.relatedgroup.com), which has built and managed more than 90,000 condominium and apartment residences across the country and around the world and is currently breaking ground on Manor Scottsdale, a multi-family development with 286 residential apartment homes on 6.5 acres located at the southwest corner of Joan De Arc Ave and Scottsdale Road that will be available in late 2021

Hines hines.com The Pederson Group pedersoninc.com

The Q1 multifamily report from ABI Multifamily shows that the Phoenix MSA demographics continued their solid trends. The Census estimate of total population was 4,857,962. The unemployment rate finished the quarter at 4.7 percent, according to Bureau of Labor Statistics numbers.

Photo courtesy of Related Group

Manor Scottsdale

Hines, the international real estate firm, along with a joint venture partner, recently acquired 11 acres in north Phoenix, where it plans to develop a 325-unit, luxury, for-rent residential property. Hines’ multifamily property, located at the northwest corner of Happy Valley Road and 35th Avenue, will consist of six, three-story buildings. An additional one-story building will include a clubhouse and fitness amenity that surrounds the pool. In total, Hines will develop 318,000 square feet. Hines broke ground only a short time before on its first luxury for-rent property in the Phoenix market: Adeline, which will be a 25-story, 379unit high-rise community at the Collier Center in downtown Phoenix. The firm has 165 developments currently underway around the world. “Hines jumped at the opportunity to work with our partners on this project on Happy Valley Road. Our luxury multifamily project is positioned well to meet the expanding need for suburban luxury multifamily options in the submarket,” said Robert Trujillo, managing director for Hines. Hines’ property is part of a larger commercial development by the Pederson Group of Phoenix, which owns the adjacent existing 167,000-squarefoot Stetson Village shopping center and has plans to develop seven acres of a mix of retail services directly in front of Hines’ multifamily development on Happy Valley Road. Established in 1983 by Jim Pederson, Pederson Group Inc. specializes in the development of Class A retail shopping centers in Phoenix and throughout Arizona. “The Pederson Group acquired the 23-acre site from the Arizona State Land Trust,” says Jim Pederson, CEO. “We sought a quality multifamily developer to partner with us to create a fine mixed-use project.” The area is near high-quality employers such USAA, W.L. Gore and Honor Health, as well as The Shops at Norterra and Interstate 17. The unit mix is expected to be: 161 onebedrooms, 140 two-bedrooms, and 24 threebedrooms. Rent prices haven’t been finalized yet. Plans call for the multifamily construction to start in the fourth quarter of 2020. —Mike Hunter

At JLL, we know smart real estate strategy is simply good business. We bring together the right combination of skills and match them with valuable data, powerful connections and a deep understanding of real estate. The result is one-of-a-kind advice and solutions. Buildings that operate at peak performance. Workplaces where employees can thrive. Our JLL Phoenix real estate experts in all property types look forward to helping you achieve your business ambitions with our local services: • • • • •

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YOUR BENEFIT IN BUSINESS

Clinics Are Still Slow to Adopt AI – Here’s Why They Shouldn’t Be

Freeze to Heal The health and wellness industry is forever evolving — new concepts that promote movement and innovative recovery therapies are popping up everywhere, including right here in the Valley. One that’s currently trending and making a huge impact within the industry is cryotherapy, and last month Cryoshift made Arizona its home by opening its first location in Gilbert at the Crossroads Shopping Center. Cryoshift offers a range of services that support the current trends of extreme temperatures such as Cryotherapy (takes only three minutes), Normatec Compression Therapy, infrared treatments and Cryo Slim Tone Sculpt. I was previously the owner of two local Orangetheory Fitness studios, so I’ve enjoyed immersing myself in the health and wellness industry. As a Phoenician, I believe that, because of the Valley’s weather, people here are naturally more active compared to other areas. Like many people in the Valley, I have a passion for movement and exercise, but what most people don’t realize is that the recovery process is just as important as the physical exercise. I started to understand the body’s need for proper recovery after experiencing a few long-term injuries. Introduced to the cryotherapy concept and trying the services, I immediately fell in love with the technique. Cryotherapy is a whole-body alternative wellness treatment that uses extreme temperatures for positive results. The treatment begins when the Impact Cryotherapy machine fills with nitrogen vapor and a dry chill drops the ambient temperature to a range of negative 90 to negative 120 degrees Celsius (negative 130 to negative 184 degrees Fahrenheit). There are a variety of benefits that people, from athletes and fitness enthusiasts to those suffering from chronic pain, seek out of this treatment, including pain relief, muscle recovery, weight loss, mental clarity and more. After participating in the treatment and experiencing the benefits, I’m now a firm believer in the restorative and natural healing benefits of this therapy. —Kris Price, owner and franchisee of Cryoshift (gilbert.cryoshift.com) and a veteran in the health and wellness industry

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There’s a popular saying in that no one ever got fired from choosing IBM, and the same applies to legacy Electronic Health Record software. Although the same EHR systems have dominated the market for decades, these tools are a primary reason why practices have been slow to adapt to changes in technology. Some of these solutions rely on software back ends that haven’t been updated since the ’90s, and they’re hindering patient care and slowing down the revenue cycle.

ADDRESSING RISK AVERSION

Clinics choose to keep using outdated systems largely because of risk-aversion, but these legacy systems can pose more significant risks than most clinicians may realize. As it relates to patient health, the following example illustrates this point well. The Hospitalist reported a patient was given 38 times his recommended dose of medication in 2013, simply because that’s what the EHR told his doctors to do. Faulty EHR information isn’t unheard of with legacy systems. Poor user interfaces, coupled with little to no compatibility with other healthcare software systems, are typically the reasons for inaccurate EHR data. Incorrect data is also a primary contributor to poor Revenue Cycle Management (RCM). In addition, many of the administrative tasks that have burdened healthcare professionals for years are due to antiquated EHR workflows and designs that haven’t been updated to take advantage of newer technologies. When it comes to RCM, clinics risk major slowdowns in the payment process by failing to adopt a modern RCM tool. By having inefficient technology, they experience a higher volume of claim denials, which inhibits the revenue cycle and directly impacts cash flow. According to Change Healthcare, failed claims cost clinics roughly $31.50 each, or $30,000 per year. These figures demonstrate flaws in the RCM system, but AI can help address them.

THE AI DIFFERENCE

Artificial Intelligence is being heavily discussed in all industries, but it’s arguably most important for healthcare providers. Patient well-being is largely dependent on the clinic’s technology, and by having an EHR that prioritizes automation, userfriendliness and interoperability, clinics can start to see results in all phases of the patient life cycle. This is especially true for RCM because the revenue process is a major stress point for

both patients and providers alike. Patients are expected to pay more out-of-pocket costs than ever while hospitals and clinics are seeing little to no improvement in their revenue models. When revenue doesn’t cycle through the system, everyone, including patients, administrative staff and providers, suffer. It’s no easy task to process thousands of claims, but there’s still no excuse for failing to do it properly. When patients’ physical, mental and financial well-being is at stake, clinics can’t risk making errors. Fortunately, AI is a breakthrough technology for addressing common setbacks in the revenue cycle, and it gives providers the peace of mind that revenue data is being processed correctly. With AI, it doesn’t matter if a clinic is processing 10 claims or a million claims — each one is filed correctly, with no missing, incomplete or incorrect data that lead to denials and a slower revenue cycle. Correct claims processing is absolutely key, as more than one-quarter of healthcare spending is just administrative waste, according to data from JAMA Network. Poor RCM costs U.S. healthcare organizations between $760 billion and $935 billion per year, or double the amount spent on healthcare waste in Canada. Additionally, doctors are spending up to 20 hours per week on various administrative tasks as opposed to patient care, and spending almost half of their day outside the exam room. With the U.S. spending more time and money on healthcare than any other country worldwide, it’s time AI becomes the new normal to help alleviate these issues. —Khalid AlMaskari, CEO of Health Information Management Systems (HiMS) (hmsfirst.com), a company that offers Axiom Electronic Health Record (EHR) software that harnesses the power of technology to create value for integrated healthcare providers

Adding assisted living and other long-term care facilities to the totals reported last month, testing of every U.S. nursing home resident and staff just once jumps from an already mind-boggling $400 million to $672 million, according to the American Health Care Association and National Center of Assisted Living. In Arizona, the initial 70,953 tests required would cost $10,642,950. bit.ly/state-breakdown-COVID-testing

Photo courtesy of Cryoshift (left)

WELL WELL WELL

Letâ&#x20AC;&#x2122;s talk.

INNOVATIONS FOR BUSINESS

A New Generation of ‘Smart’ Textiles We are now in the era of not just rapidly expanding intelligent devices but also of intelligent materials. Porcher Industries, a global pioneer in highperformance thermoplastic composites and technical textiles, designs and produces innovative materials with properties tailored to highly targeted uses and recently launched a new generation of intelligent textiles. These fabrics can integrate functions into the fiber, such as illumination of certain zones, temperature measurement or detection of a remote presence. There are numerous opportunities for these ultra-high-performance materials in a wide spectrum of markets that include aeronautics, automotive, industry, construction, sports and leisure, and safety. With luminous textiles, certain zones in the fabric illuminate, so that shapes can appear or words can be written on them — without using cables or bulbs. This innovation would considerably increase safety for cyclists and motorcyclists by making them more visible, for example, through inserts on vests or jackets. For the construction sector, floor slabs will be able to integrate signage information that can be read directly on the floors or the walls, and can be modified remotely. For aeronautical and automotive markets, interior cabin design can be entirely revamped to improve customer experience, and there’s more. These new intelligent textiles can replace the arsenal of heavy, bulky cables and electronics, which is an incredible advantage for aeronautical, automobile and train designers in their continued pursuit of light and space. Heat-sensitive textiles, which can measure temperature, have a diverse range of applications, such as improved safety in industry, transport, HVAC engineering or construction. For example, alarm systems can be activated if a specific temperature threshold is exceeded in industrial pipes. These intelligent textiles are designed for seamless integration into industrial processes. Along with high-performance features, they are equipped with exceptional properties in flexibility, finesse, precision, lightness and durability. Porcher Industries porcher-ind.com/en

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Responding to what its Workforce Development Office identified as an immense need for information technology training, the Maricopa County Community College District will open its Maricopa IT Institute next month in the heart of downtown Phoenix at 640 North 1st Avenue, as part of Phoenix College. “The Maricopa IT Institute will support more than 30 certificate and degree programs in eleven different program areas that will meet workforce needs. This will be a place where new, continuing, or returning students can find and develop their IT skills and be readily employable,” says Maria Reyes, Phoenix College’s Dean of Industry and Public Service. In Maricopa County, there are at least 21 technology-based occupations that generate 8,750 new positions a year with 87,975 jobs already established. Arizona’s information technology employment opportunities are 15 percent above the national average. The MCCCD Workforce Development Office expects the pay in this profession to range from $26.09 to $53.21 per hour with a median earning of $38.60 per hour. Many professions would benefit from the IT institute. Among the professions with job demand and earnings above the median include computer and information systems managers, network architects, network and computer system administrators, software developers (applications and systems software), information security analysts and computer programmers. The Maricopa IT Institute at Phoenix College will serve as a collaborative space for all students in Computer Information Systems (CIS) classes, Microsoft Server Technologies (MST), and Information Technology Security (ITS) classes. The IT Institute will help prepare students for Arizona’s jobs of the future by utilizing cutting-edge tools that will help students familiarize themselves with vital technology before they enter the job market. The site will also serve as a convening location for workshops, industry advisory groups, meetups and networking functions. Classes will be offered during the day, evening, weekend, and in flexible formats, such as hybrid or online classes. The project received a $2.4 million grant this past May from the National Science Foundation. The funds will be allocated toward work-focused experiential learning in IT areas for STEM students. In collaborating with “Excelencia’s Seal of Excelencia,” Phoenix College joins a select few higher education institutions that will focus on accelerating the number of Hispanic students

with degrees by 2030. This year, 58 percent of the student body at Phoenix College is Hispanic. The school has been a melting pot of diversity in the Valley for 100 years now. The grant recipients will progressively facilitate the adoption of STEM evidence-based student serving framework at three urban and two rural Hispanic Serving Institutions, originating at Phoenix College. Principal Investigator, Maria Reyes expressed her excitement for this opportunity by saying, “We are eager to design this high-impact model that will build capacity to engage and retain Hispanic students throughout their higher education experience, as well as prepare them for STEM related positions in the workforce.” The multi-track design will focus on aligning priority areas and innovating cross-sector partnerships over a five-year time-frame, while placing an emphasis on capacity building through work-focused, experiential learning. This model aims to prepare underrepresented and under-served students to seamlessly enter the STEM workforce. On another technology-workforce front, MCCCD just last month announced a collaboration with Intel and the Arizona Commerce Authority to create Arizona’s first Artificial Intelligence certificate and degree program enabling tens of thousands of students to land careers in healthcare, automotive, industrial and aerospace fields. The Maricopa Community Colleges is among the first in the U.S. to train workers for the region’s driving demands in Artificial Intelligence technology, allowing access for more students to master skills valuable across many occupations and industry sectors and ultimately improving the nation’s workforce, economy and community. The AI program will begin virtually this fall. As physical distancing requirements are lifted and restrictions due to the COVID-19 pandemic lessen, classes will begin in-person at ChandlerGilbert Community College and Estrella Mountain Community College.

Looking at the broader occupational forecast, Arizona and Phoenix are projected to see 21,535 AI employment opportunities in 2020, which is 6 percent above the national average. Research done by MCCCD Workforce and Economic Development Office estimates an increase of 22.4 percent for these roles by 2029. cdn.maricopa.edu/documents/pdf/economic-impact/MCCCD_MainReport_1617_Finalv2.pdf

Photos courtesy of Porcher Industries (left) and Maricopa County Community College District (right)

MCCCD Is Committed to Expanding Our IT Workforce

TECH NOTES

JULY 2020

BY MIKE HUNTER

CRE

in Tempe Multifamily: West 6th cus & Millichap Mar of Photo courtesy

in the Time of 9 1 D I COV And what does that tell us about our economy? by RaeAnne Marsh

EAL ESTATE has always been a major

part of our economy. And, as a lagging indicator whose thread weaves through businesses of every type, size and

sector, it is also the perfect instrument with which to take the pulse of our economic health. Looking at how the pandemic is affecting the market, Jonathan Keyser of Keyser, LLC says, “There’s a lot of impact that’s happening,” and observes, “Just in the overall commercial real estate market, you’re seeing vacancies rise; sublease space continues to hit the market. Real estate is a lagging indicator, not a leading indicator, and so we’re just starting to see rates start to decline.” He expects there will be more decline in pricing, and notes, “Delinquencies on loans is rising across the sector.”

DISSECTING THE MARKET In breaking the discussion down sector by sector as to how the pandemic is affecting the market, Craig Coppola, a founding broker with Lee & Associates, starts with the “top of the food chain, that we all want to see come to Arizona, more and more of it” — which is manufacturing. “In terms of job creation,” he says, “all economic development people want manufacturing. And [real estate professionals] want it, too. We’ve allowed a lot of it to go overseas for cost reasons, and we’re finding out that might not necessarily have been a good situation for the country of America.” But he notes conditions are not what they were. “There’s a dramatic change in technology, so one of the things I’ve been saying in terms of manufacturing coming back is, I believe there will be a lot of manufacturing coming back that has the ability to be technology-based. Technology-based manufacturing is going to come back in a fairly big way because we’re going to see a lot of robotics and those kinds of things, in addition to U.S. security issues” – in such things, he says, as antibiotics. Viewed from another angle, “Sector-wise, e-commerce is driving the market, which makes the industrial sector extremely stable,” says Bob Mulhern, senior managing director with Colliers International in Arizona. Industrial’s strength is not new. Notes Terry Martin-Denning, CEO and designated broker of NAI Horizon Phoenix, “Industrial real estate in Phoenix has outperformed other asset classes for several years.” What’s different now? “The pandemic has made everyone aware of the importance of a safe and reliable supply chain. “The industrial real estate market is poised for continued growth as the United States moves toward bringing back manufacturing businesses that were moved to other countries for cheaper labor,” Martin-Denning

continues. “I expect there will be more ‘last mile’ distribution centers for groceries, produce and medical and hygiene supplies that consumers need quickly. Those new distribution centers are likely to be smaller and spread out throughout the metro area.” In fact, there has already been an increase in distribution and “last mile” facilities. Coppola points to Amazon, which he calls a “gorilla”: “They’re leasing tons of space, they have tons of divisions. So, we’re going to see more industrial, and industrial will do well.” In this regard, Mulhern notes that a focus on supply chain is attracting more companies to consider Arizona due to its proximity to both California and Mexico along with its reputation as a business-friendly state with a growing population of educated workers. However, Keyser adds somewhat of a cautionary voice in noting that, while industrial has held up the most of all commercial real estate sectors, a lot of the short-term industrial demand was driven business pivoting to having everyone work from home and the accompanying need to get them supplies and materials. “A lot of warehouse space and industrial space that the demand rose for in the short term was driven by that. So, I think we’ll see some settling-out there.” Next in line of strength comes multifamily. As Mulhern points out, “This is a basic need and, as a result of everyone sheltering in place, it has remained strong as a product type.” And rents have remained stable, he says, thanks to the CARES Act combined with our relatively low cost of living. “And in Arizona,” says Coppola, addressing multifamily and housing, “housing is going to be good for us because we had less housing than we needed before the pandemic.” Construction came to a grinding halt, “so that

2 N. 59th Avenue warehouse located at Industrial: distribution cus & Millichap Photo courtesy of Mar

JULY 2020

in Phoenix

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CRE C-19

Office: Chandler Corpor ate Center in Chandler Photo courtesy of Col liers International of Ariz ona

need is still there — and we’re going to increase it,” he observes, citing the fact that “the millennials continually get older.” He sees an increase in this area of real estate statewide and believes that will be good for all of Arizona as well “because we are in the business of growth.” Office is where pain starts to manifest. Says Martin-Denning, “Now and for the foreseeable short-term future, the office market is moving slowly, with less new leasing activity than pre-pandemic.” Although asking rates have not as yet shown a decline, she believes there will likely be some softening as companies review their office workforce models. “The perperson office space requirement, from a square footage perspective, will expand. The ‘work-at-home’ model that the pandemic forced on businesses is likely to become a more common option in the long-term, especially for companies where employees work independently rather than in collaborative teams.” In the long-term, she says, “I believe the Phoenix office market will be resilient.” Also remarking that businesses are considering less density and more flexible working policies and environments are being considered, Mulhern notes that companies are reconsidering their workspaces with the retention and recruitment of employees in mind. But he points to a few brighter spots. “Concerns about dense working submarkets, which we believe will continue to perform well, may provide some opportunities for suburban office options,” he says. “Medical space is also holding steady and, on the office side, there is good activity in the finance, insurance and tech spaces, depending on what verticals a company focuses on.” “It’s tempting to just get by right now,” observes Coppola. “If you’re not going to survive, then that’s a whole different conversation. But what I’ve found in our business, which is representing office tenants and landlords, it’s not nearly as dire as the retail tenants who have had to shut down and they’re still not open [at time of interview, May 18]. The office tenants, by and large, have some business going and are continuing that business. It’s more that they’re trying to be opportunistic as opposed to, ‘I’m really on the edge of my seat here. This could go a bad way if we don’t get the rent.’ And the landlords have tried to be opportunistic as well – ‘If I give you a couple

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months free, then I want you to extend your lease another year.’” But office, he says, “will not be as hurt as retail.” “Hammered” is the word Keyser uses to describe the pandemic’s impact on retail (and, he adds, on hotel kinds of product). Regarding retail being the hardest-hit sector, Mulhern finds those businesses are still working through strategies to serve the public’s changing shopping mindset. Restaurants, he believes will have the most difficulty surviving as the economy opens back up for business. Pointing out that big-box retailers and department stores were already struggling when the pandemic hit, Martin-Denning notes, “Most of the new retail developments under construction in Phoenix are continuing to move forward and some savvy tenants have used the ‘shut-down’ to build out new space to be ready to open when the lockdown is over. Phoenix has a large ‘foodie’ culture, and restaurants that are smart and creative are likely to fare well once people are able to go out to eat. The creativity of some businesses and their ability to pivot quickly to adapt to the social distancing rules has been impressive. Those businesses and new ones will survive and thrive. The businesses that were already struggling and were not able to adapt will likely close, opening up the opportunity for new concepts that work better in the post-pandemic retail environment.” “Nobody pro formas 100-percent loss in your business for 60 or 90 days,” Coppola observes. So, what may be upcoming? Says Coppola, “The trend has been retail to entertainment retail — theaters, indoor sky diving, pitchand-putt golf, Top Golf — and who knows what that’s going to come back and look like, because that’s typically around other people. So, they’ll have to modify how they do it, and they can, but it’s going to take some time to do that.” As to land itself as a real estate commodity, Mulhern says, “Since land transactions are more long-term in their nature, land transactions have seen the least disruption thus far.” While occupants of real estate space are the visible face of the market impact, landlords are no less impacted. Says Martin-Denning, “Landlords in Phoenix have been faced with challenges working out rent relief with

JULY 2020

tenants while at the same time working with their lenders for some relief on their debt service that will allow them to help the tenants get through this crisis. This is especially prevalent in the in the retail sector. We have helped our clients develop creative strategies to retain tenants and maintain the financial health of their properties for the long-term. The second round of the PPP loan program benefited more of the tenants in the properties NAI manages, allowing tenants to re-open and begin paying rent.” Overall, says Mulhern, “Arizona’s rent collection thus far in the pandemic, in all product types, has exceeded early expectations, and we are faring better than many other markets. The more active and communicative the owner, the better the collections have been.” It’s important to note, however, as Coppola points out, “Owners got nothing in the CARES Act. This is hurting owners, especially retail.” Regarding real estate investment, Ryan Sarbinoff, Marcus & Millichap’s vice president and regional manager for Arizona & New Mexico, shares, “We have experienced a wide variety of investor responses to this pandemic. Some investors see this as an opportunity while others are taking a ‘wait and see’ approach.” The biggest changes his office has experience center on financing. “Early on, many lenders pulled back on loan dollars for asset classes they felt would be most affected. Up front reserve accounts required buyers to have additional equity to close, and negatively impacted cash-oncash returns in the early months of ownership. As a result, we have seen a flight to quality, with investors seeking quality assets with predictable cashflows and strong guarantees. Some investors pulled away from valueadd opportunities due to additional capital requirements and difficultly supporting assumptions such as absorption, occupancies, and future rents.” Although it’s too early at this point to predict how the pandemic will affect the market in the long-term, there are challenges and trends that have begun to emerge.

CHALLENGES “Getting back to work seems easy, but in some locations there are challenges that companies will have to face that will either put them in a position to keep their workforces remote through at least the end of the year or phase them back into the office,” says Ruth Darby, a licensed real estate agent with Keyser, which is part of Exis, a global commercial real estate organization committed exclusively to representing tenants and end users. “In cities like Phoenix or even Seattle, though at varying levels, there will be fewer challenges depending on how much or how little your city relies on public transportation to get your employees back to the office.” Darby notes that in cities like New York, London or San Francisco, where the bulk of the employees rely on public transportation, getting everyone to work is literally impossible due to the inability for buses, subways and trains to load up to full capacity due to social distancing rules requiring less riders per trip. In fact, some companies are citing issues in getting even 10–15 percent of their employees back to the office. “Coupled with new standards inside the office, the challenge is compounded, as once you get the employees to the office there will need to be additional rules and regulations to comply with that are going to require more space per employee. “Add on top of that the unknown liability issues that have yet to be brought to the surface of employers providing a safe work environment. For this reason, some of the larger firms are opting to stay with their work-from-home initiatives at least through the end of 2020 as they try to figure out how to manage these new challenges and new rules.” Nor is that all. “Another consideration at the forefront of all of these decisions,” she says, “is how will we keep our culture intact while we navigate all of these new challenges.”

in Tempe Office: Playa Del Norte Associates & Lee of y Photo courtes

JULY 2020

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CRE C-19 TRENDS Coppola believes the pandemic will also make itself felt by accelerating trends that were already happening. One of those is flexible hours. “Flexible hours were just happening. Now, we’re going to see that happen faster. If you wanted to work from home one or two days a week, that’s going to happen now. You couldn’t do that before, but I think now people are going to say, ‘OK, I can allow that.’ So that’s going to happen. “Along with that is what we’ve all gone through, which is the technology. If you hadn’t been working from home, you had to get the technology up to speed, and it happened really quickly, and so now everybody has the technology.” Coppola anticipates office space users will continue to use that technology to either let people get remote or just hire people remote. “Remote work will become more widespread,” says Darius Green, a founding member of Keyser, who suggests it may help startups hire faster by bringing on people who live in other cities. “But this point is not limited to startups,” he says. “In fact, remote working may be an easier tool for established companies. Yes, a greater recruiting reach and deeper talent pool is a positive of remote working. But retaining a staff of digital nomads, having a lack of community or culture in the organization along with loss of productivity and security are challenges that remote working presents — which mature companies or startups with experienced executives are better equipped to address.” It’s not going to be a fit for every business and every employee, he observes. “More remote work for local employees should reduce the need for office space and ease traffic,” Green continues, “but in cities where public transportation is leaned on heavily, returning to work is still an issue.” He points to staggered schedules or shift work being used to combat this logistics challenge along with a phasing of employees based on essential need at the office and their individual vulnerability and willingness to return. A complication with that approach, Coppola points out, is the fact that one of the reasons people were going to open offices was for collaboration. “The minute you go onto a shift, there’s no collaboration going on. People have been doing Zoom calls, but it’s not the same as doing it in person. There’s a learning curve that has to happen and a culture that has to be changed.” Or maybe that learning curve would include recognizing when not to change. Daniel Klueger, also an Exis member — at The Tenant Agency in Washington, D.C. — relates, “In early March, when tenants began working from home and exploring new ways to collaborate, it worked out well and teams remained effective by way of technology. The pendulum has since shifted and we’re hearing more users looking forward to re-entering the workplace, noting that technology will never replace human interaction.” Coppola also identifies a category of trends that people have been trying to do but haven’t been able to effectuate, and feels that now might now be the time to give them another try. “Some will probably take place now that weren’t really doing great before.” One of these is hoteling. “People are going to work remote, but they want a little space in the office. It’s not theirs all the time, so they’re going to have a hotel space that they can go to.” Conceding that this has been tried a handful of times over the past 10 years but didn’t get a lot of traction, Coppola says, “I think it will effectuate this time.” Hoteling is not the same as a co-working operation, which Coppola explains is just flexibility. “There is a huge disconnect between what

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Retail: L A Fitness in Tuc son Photo courtesy of Mar cus & Millichap

corporations want, which is shorter-term flexible leases, and what owners of buildings want, which is long-term stable leases. The WeWorks of the world were created for that second situation: They would find long-term leases on your behalf and sublease them.” In a hoteling situation, Coppola explains, “The property owner says, ‘We have room for 10 people, and we have 30 people who share it. There’s a cube there, but we’re just not letting for than 10 people a day come in.” Another idea that has been around but Coppola feels may finally get its day is “remote workers anywhere.” This refers to employees who are interviewed and hired without anyone at the employing company actually meeting them. And they could be in a completely different city, being hired in Phoenix, for instance, while living in Cincinnati. “We’ve been seeing that happen, but not as much as I think we’re going to start seeing it,” says Coppola, relating, “We’ve been seeing it happen overseas. I know some accounting firms that have full-time employees in Bangladesh. I think we’ll see more globalization from these remote workers.” In that regard, Klueger says, “Remote work will become more widespread and may help startups hire faster by bringing on those people who live in other cities.” Trends in actual use of office space Coppola qualifies as uncertain, whether that’s a company going completely virtual or simply taking less square footage. “They may have fewer employees, or employees may

JULY 2020

le merce Center in Avonda Industrial: Avondale Com of Arizona al tion rna Inte s lier Photo courtesy of Col

be remote, but now they’re going to have to design the office space so employees are not within six feet of each other. Companies might even go back to more private offices; that’s one way to keep safe and socially distant,” Coppola says. Relates Green, “Our clients that are in the market to relocate or renew are definitely looking to reduce their footprint and re-imaging their work environment. For the companies that have realized that the forced remote working experience generally works for their business, the focus in their new space requirements is having defined space for key executives, operations and any key departments where working remotely does not

Manufacturing: Erickso n Construction in Cha ndler Photo courtesy of Mar cus & Millichap

JULY 2020

generally work and then focusing on flexibility for the remainder of the space, with various meeting rooms and touch-down/hoteling space for employees who generally work remotely to use when they need to come into the office.” What’s important for those companies not in the market currently, Green says, is to assess what is working and not working as we come out of the COVID-19 shutdown — but not overreact with their real estate plans when the opportunity comes. “They should also build in flexibility whenever possible from a term perspective as well as have the opportunity to expand if it becomes necessary years down the line when COVID-19 is, hopefully, a distant memory.” Also expecting the layout of space will be re-imagined and office space may be used differently, Green says, “The office would function more as a meeting space.” Regarding space needs specifically, Keyser says, “I think you’re going to see a lot less of the 8–5; you’re going to see more flex work. People are still going to need space — they’re still going to need offices, they’re going to need retail centers, they’re still going to need warehouses and manufacturing facilities. But I think that how they think about density, how they think about spacing, and at some level cleanliness — all that changes.” “Likely, the answer will be a mixed bag of work-from-home, staggered schedules and compressed work weeks as well as satellite offices to accommodate employees located in the suburbs,” says Darby. “We have seen companies that have decided they are going to be 100 percent work-fromhome and others that are deciding how they are going to piece together what combination will work best based on what type of business they conduct and how important it is for the employees to be in the office.” Are the trends going to be geographic or more broad-based? “We don’t know the answer yet,” Coppola says. “There was a huge trend for 20 years to the suburbs, and there was a huge trend over the last five years as the millennials came into the marketplace of going back to the urban core. And that’s the question: Are we going to see the trend continue to go back to the urban core or back to the suburbs? Nobody knows.”

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CRE C-19 CRE IS A BUSINESS SECTOR, TOO The CRE firms are also businesses in their own right. Relationships built on expertise remains the foundation of their business, with both elements valued even stronger as the clients they serve reel from the pandemic’s disruption. So how is the pandemic affecting their operations? Their responses also give further insight into the market’s equilibrium. “Lee & Associates has had no focus changes,” Coppola says, affirming the business is relationship-based. “Our clients need us now more than ever. And they want experience. While we have not ever lived through a pandemic, we have been in business since 1991, and worked our way through three major recessions. “In the last three to five years, as the economy was rolling, a lot of inexperience and some poor decision-makings could be covered up because the economy was rolling and you were going along with the tide. And what happens when you have something as dramatic as this and as sudden as this is, people start looking for experience. They want to know somebody’s been through … not necessarily this, but something similar, like the RTC days in the late ‘80s and early ‘90s. [The Resolution Trust Corporation was a temporary federal agency created to resolve the savings and loan crisis of that time.] Or, in our case, 2008/9 /10, when we’d just had a great recession and that happened fairly quickly. And so, clients are looking for way more experience from us, and then we are sitting there at our end having to work with clients and holding their hands and talking through it because we’re both experiencing this at the same time and there aren’t any answers.

“This morning,” Coppola continues, “I was on the phone all morning talking to a couple of tenants we represent, just going through options and how we’re going to handle it and what the pros and cons are and the shortterm effects and how it could affect the long-term. We’re doing a lot more hand holding, more consulting, a lot more of just bringing people to a place of comfort about where they are. “The relationship is trust. And trust on both ends: that we’re not out for the quick dollar and that we’re going to give them fair and sound advice, not [just] something that they want to hear. Like the calls this morning, tenants saying, ‘I just want to walk away from my lease.’ And you have to say, ‘That’s not a good strategy because you’ll have to file bankruptcy. And if you’re going to file bankruptcy, I get it, but if you’re just doing it because you want to save some rent, then you’re going to have to change your name, you’re going to have the landlord after you, and people are going to look at you differently when you rent in your next place.’” Shares Mulhern, “Colliers’ International’s emphasis on strategic partnering with our clients has allowed us to realize significant momentum during this pandemic. Since we are focused on our clients’ business needs more than just their real estate transactions, we have been able to help a number of them make important business decisions over the past few months. We have also earned significant new business assignments due to our consultative mindset.” “Our culture as JLL brokers has always been to serve as knowledgeable

ter in Phoenix Retail: Deer Valley Cen Horizon Phoenix I Photo courtesy of NA

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Tempe Multifamily: Harper in cus & Millichap Mar of y rtes Photo cou

advisors for our clients and to help shape the best possible future for commercial real estate,” says Ryan Bartos, managing director. “COVID has caused us to lean even heavier into that commitment. Tenants need our assistance with cash preservation strategies, landlords need guidance on rent relief protocols, and everyone is looking for best practices to keep buildings and employees safe and healthy. I expect that these concerns, particularly a focus on safety and stability, will continue as our market begins to re-open.” At Keyser LLC, “We still have a lot of traditional business,” Keyser says. “We still represent tenants and help them find space. There are a lot of sectors that are impacted less than others. End leases continue to roll, and companies continue to have to do something with that. So, we have a lot of just business that continues, and we have a lot of clients who are actually being benefited by this downturn.” In terms of purposeful changes by the firm, Keyser shares, “One of the biggest things we’ve done is pivot to helping organizations figure out rental relief. We’ve given webinars to help and coach and give and serve — to help orgs figure out how they navigate their commercial real estate in these crazy times. We’re also helping organizations strategically start thinking about how they can take advantage of the opportunities that are being created by this marketplace.” “NAI Horizon has not changed its focus or business strategy in response to the pandemic,” Martin-Denning says. “In our roles as ‘trusted advisors’

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to our clients, we have been spending a large amount of time helping our tenant and property-owner clients navigate the COVID-19 challenges. The mandated ‘shelter-in-place’ order all but eliminated in-person property tours, and conducting virtual tours became the norm. The most cautious business owners and investors who did not have an immediate need, hit the pause button, waiting for more information about how the pandemic will affect real estate and the economy long-term. Clients who wanted to open in a specific location moved forward with their transactions, and investors with cash to invest continue to buy properties where the numbers make sense.” At Marcus & Millichap, says Sarbinoff, “We have been entirely focused on the human element of this pandemic. Our number one priority remains serving clients. We want to ensure our investors and their tenants maintain a safe, clean environment. That has not changed and never will. What has changed is our execution. Our efforts now center on providing our clients with up-to-date information on trends and changes that affect them directly. Due to the uncertainty surrounding the world economy, real-time data regarding operations and investments is more valuable today than ever before. Our research department has responded by producing more than 50 special reports pertaining to every asset class. Furthermore, we have coordinated more than a dozen internal market response workshops and live client investment forecasts to help identify trends and best practices.”

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CRE C-19 LOOKING AHEAD “Arizona is in a strong position to rebound better than many other states,” says Mulhern. “Our momentum going into the pandemic, our steady leadership through the economic shutdown, and our draw as a businessfriendly state are all working in our favor.” In fact, he adds, “Arizona is benefiting from the strict regulations put in place by other states. People who have means are choosing to relocate to Phoenix. The fact that we were able to keep a lot of our industry open and quickly re-open the ones that were shut down has worked in our favor. Also, the diversity of our economy is showing our ability to weather storms more effectively than we have in the past.” COVID-19 brought most transactions to an immediate pause in March and April, but Bartos noted an uptick in interest as soon as Phoenix began its phased re-opening in May. Now, he relates, “While market activity is not nearly as robust as it was 90 days ago, we’re actively working with our clients as they prepare for re-entry, and JLL has developed a Return-to-Work Guidebook outlining best practices for transition to the ‘next normal.’” Bartos’ overall experience is that companies are moving forward. “We expect to see some lag in the market but, in general, Phoenix remains an attractive place to do business. We’re working right now with several big clients from major U.S. markets who are expediting their search here because, long term, they believe that our access to labor, cost of doing business, transportation infrastructure and quality of life make us the place to be.” Bartos believes it’s too early to formulate conclusions on the ultimate impact of COVID on our industry or our market, but he believes that – even in light of today’s challenges – Phoenix is in a good position. “We entered into the last recession with a significant amount of speculative product and it took us a long time to absorb that space. This cycle, we have maybe onethird of that speculative inventory and a much more diversified economy that includes not only real estate but also medical, tech and finance. We were in a strong position going into this pandemic and that gave us a great foundation from which to emerge strong.” Phoenix and, in fact, the western United States are better positioned for a strong recovery than many parts of the country, says Martin-Denning. The Great Recession hit Phoenix very hard, but she points out that since then, Phoenix has expanded and grown a very diverse economy with a highly educated workforce, making it attractive for industries not previously prevalent in Phoenix. Higher education, health care, financial industries, engineering, manufacturing, distribution and aerospace all have a large presence in the area. Concluding, “Phoenix is business-friendly and remains one of the fastest-growing cities in America,” Martin-Denning says, “I remain optimistic about the recovery of the overall economy and the long-term health of real estate in Phoenix. “I remain hopeful that we will not be forced into another ‘stay-at-home’ period, and that the rest of the country continues to recover and reopen.” While it’s too early to predict the long-term impact of the pandemic on business, Martin-Denning notes our economy was strong with good liquidity going into this crisis. “Because of that, I believe we are likely to have a strong recovery with businesses that adapt well and quickly to the ‘new normal’ coming through the crisis stronger and better positioned for the long-term.” Sarbinoff also emphasizes that it remains too early to tell the pandemic’s impact on business. “Real estate is reactive in nature,” he explains. “Therefore, we do not expect to see movement in pricing for at least

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six months after the bane. With that said, today more than 36 million Americans are out of work. This is a staggering number and must be our focus moving forward. Positive job and wage growth remain critical components to economic expansion. Tenants’ inability to pay rent will negatively affect cash flows and subsequently values of real estate assets.” Looking beyond the immediate, Sarbinoff says, “We are entirely focused on the month of August. The CARES Act and expanded unemployment benefits are set to expire, and kids are due back to school. These results will determine the depth of the negative impact and trajectory of our recovery. If parents go back to work and kids go back to school, we’re on the right path.” Colliers International in Arizona colliers.com JLL jll.com Keyser LLC keyserco.com Lee & Associates lee-associates.com Marcus & Millichap marcusmillichap.com NAI Horizon Phoenix naihorizon.com The Tenant Agency thetenantagency.com

Industrial: Corbins Ele ctric in Phoenix Photo courtesy of NA I Horizon

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YOUR BENEFIT IN BUSINESS

COVID-19 TESTING PROTOCOL Healthcare Solutions Centers’ COVID-19 protocol complies with CDC recommendations, taking them a step further by actually administering the PCR test at all “recommended” points: •E mployees testing positive or showing compatible symptoms of COVID-19 should remain home until 72 hours after all symptoms resolve without medication. • I f employee has a fever, cough or shortness of breath — or other symptoms that do not meet COVID-19 criteria — try to get the employee PCR tested. •T here are additional precautions if employee has traveled.And even if employee has NO symptoms of COVID-19, employee “meets” with an HCS clinician for a telehealth appointment to be cleared to return to work. [This is often on a Sunday, Ducar explains; employees traveling over a weekend will inform HCS prior to travel and schedule the telehealth appointment in time for them to return to work on Monday.] [Editor’s note: This is a very abbreviated version of the testing protocol. For full version, see this article on our website at inbusinessphx.com.]

JULY 2020

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At Work, Healthcare Starts with Testing Aiming to keep the workplace COVID-19-free by RaeAnne Marsh

Healthcare is arguably the most popular of employee benefits. COVID-19 has made this an even higher priority — while at the same time adding to businesses’ challenges in providing it. And addressing the need to keep the workplace and the workforce healthy has put COVID-19 testing front and center in business operations even while information changes on a nearly daily basis.

TESTING FOR COVID-19

Testing for COVID-19 remains a critical concern, even as our understanding of the virus increases. “There is no single ideal test for COVID-19,” says Jason Scalise, M.D., orthopedic surgeon and vice chairman at The CORE Institute, whose physicians and healthcare workers are on the front lines. “Diagnostic tests (e.g., the nasal swab) that detect the virus reveal only if the individual is currently harboring the virus. While antibody tests do not detect the presence of the virus itself, they can reveal if the individual has mounted an immune response to previous exposure.” It is that response which may impart a degree of protective immunity to the individual. Dr. Scalise emphasizes that it is still unclear to science what level of antibody response is truly protective — and that further research will be required. Regardless of the test results, however, social distancing and good hand hygiene should remain important for everyone. Organizations looking to safely deploy their workforce may consider using a rapid antibody testing strategy to serially screen employees on an ongoing basis. As time goes on, knowledge of who may have acquired a layer of protection against COVID-19 will be very helpful, according to Dr. Scalise. Furthermore, this type of screening program can help filter who those with an antibody response who may be indicated for additional viral testing, and potentially isolate them from the workplace until diagnostic test results have returned. Dr. Scalise points out this is a more practical yet still thorough approach for screening than frequent molecular

At press time for this July issue of In Business Magazine, the surge of cases in Arizona makes it one of hot spots for new cases of COVID-19.

tests whose results may not be available for 24 to 48 hours — and adds that this level of enhanced yet rapid screening can be an effective adjunct to other safety measures for businesses looking at instituting re-opening procedures.

COVID-19 TESTING AND WORKPLACE HEALTHCARE PROGRAMS

Businesses may rightfully be concerned also about liability and workers’ compensation. Programs like the COVID-19 Work Safety Program that Healthcare Solutions Centers offers may remove potential liability from human resources departments, which are often the ones directing employees regarding their medical issues. “This program directs all employees and family members (patients) who are feeling ill or have any symptoms of COVID-19 directly to HCS for a telehealth appointment,” explains Frances Ducar, founder and president of HCS. “HCS’s nurse practitioners are performing a telehealth appointment with these patients. Patients who have signs or symptoms of COVID-19 will be quarantined and directed to an HCS clinic for the nasopharyngeal swab to test for COVID-19. These patients will be placed under medical surveillance and treated by the nurse practitioner.” HCS is working directly with Sonora Quest Laboratories for all the tests, and Ducar expresses appreciation at being able to administer the tests as needed. “We’re testing all the time,” she says. “We’re using a lot of swabs.” Noting that the COVID-19 Work Safety Program follows CDC guidelines and was designed to assist HR so they would not need to handle medical issues, Ducar says, “Employees will only return to work when the nurse practitioner has cleared the employee to work and is safe.” She reports that the program was implemented on March 20th for all HCS’s clients and is working very well. Following CDC-recommended protocols for testing, HCS administers the PCR NP swab to individuals who show symptoms of COVID-19 or who are known to have been

STRATEGIES FOR WORKING REMOTELY exposed. Patients testing positive will be sent home for quarantine for 14 days, with medical surveillance by HCS. Once the patient is off quarantine and is asymptomatic, an HCS clinician may determine there is need for a follow-up IgM or IgG test before clearing them to return to work, such as if other members of their household had tested positive for the coronavirus. The Rapid COVID-19 Antibody IgM and IgG tests are for those who are asymptomatic — and for those looking to return to work following a COVID-19 quarantine. With an IgM positive, the patient is immediately sent home from work and sent to an HCS clinic for a PCR test. With an IgG positive, the patient remains at (or returns to) work but is to leave work and call HCS if symptoms arrive. If both tests are positive, the patient is sent home immediately and sent for a PCR test; if both tests are negative, the patient remains at (or returns to) work. HCS also uses the IgG Serology test, which detects antibodies in the blood that shows if the patients have had COVID-19. “All patients who have had a PCR-positive test will be sent for the IgG Serology test 60 days after their positive test to see if they have converted to IgG positive,” Ducar says. HCS will keep data on all testing, and, as the provider, is responsible for all documentation with regards to returning employees back to work. Employees must have a return-to-work note sent to their email, or a photo of the note texted to them, and will be directed to give or send their note to their HR department. These RTW notes cannot be given in advance; employees must be placed on a telehealth appointment and cleared the same day the note is given.

Pandemic, Inc. This is a difficult time, that’s for sure, but it’s also a time of enormous opportunity. Entrepreneurs, small business owners, and self-employed professionals need to leverage these 8 trends to thrive in tomorrow’s economy! Pandemic, Inc. offers a strategic roadmap for businesses navigating the Coronavirus COVID-19 pandemic and quarantine. The book details eight accelerating trends that form a convenient acronym: Change creates opportunity. Seize this moment! We have never needed business leadership more than we do today. This book shows you how to survive, rebuild, and thrive in the post-COVID-19 economy. Pandemic, Inc.: 8 Forces Driving Business Failure or Fortune in the Post-COVID-19 Economy Patrick Schwerdtfeger Authority Publishing

AdviNOW Medical advinow.com The CORE Institute thecoreinstitute.com Healthcare Solutions Centers hcsonsite.com

Changing directives regarding COVID-19 are a continuing challenge as we gain knowledge of the virus and must also respond to new surges and outbreaks.

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Why Wait? For those who want to get started as an entrepreneur and take advantage of being young, Why Wait? shares Rob Berk’s journey, from his first year at Hamilton through graduation day. This rollercoaster ride started when he decided to #SayYes and began working with The New York Times best-selling author and serial entrepreneur Dave Kerpen as his executive assistant.

AI AND AR POST-COVID-19

Telehealth has made such inroads into medical care that is it considered mainstream. AdviNOW Medical, a local company founded in 2016, has developed new advances to this healthcare option that benefits patients and providers. Benefits are especially timely during this COVID-19 pandemic, but the company sees them advancing healthcare post-COVID. AdviNOW’s artificial intelligence collects all the patient information and uses augmented reality to take measurements. This automation protects providers and patients from potential infection as the provider can complete a comprehensive examination without physical contact. The AI automates the patient experience by asking all of the questions that a doctor would need to diagnose and treat the patient. And the company’s augmented reality platform guides patients to take medical measurements with medical precision to give the provider the images and sounds required for the visit. Significantly, the automation that enables the low touch/no-touch medical visit also helps doctors spend more quality time with patients, as the AI does all the documentation that would usually take two-thirds of the doctor’s time. The system automates COVID-19 response by integrating telemedicine into the traditional clinic at a level that removes the location of care as a requirement for diagnosing and treating the patient. The system includes automated triage; virtual visits; and COVID-19-routed guidance to testing, AI-driven decision making, and prescriptions and directions to appropriate testing facilities if applicable. Seventy percent of the EMR documentation is completed upfront. Looking beyond the now to also a post-COVID world, AdviNOW Medical uses both AI and AR in offering what is now the only end-to-end automated healthcare system in the world that enables medical visits to be done from anywhere with the similar efficacy and billing level as in-person visits.

184 pages On Shelves and Online

In an effort to help fight the effects of the COVID-19 Pandemic, 50 percent of the profits from Why Wait will be donated to Feeding America. Feeding America has been in existence for more than 40 years and is America’s largest hunger-relief organization. Millions of people have lost their jobs and are at risk of going hungry; Feeding America supports food banks that are especially essential in times of national crisis. Why Wait?: How I Jump-Started My Entrepreneurial Journey Before Graduating Into a COVID-19 World – And How You Can, Too! Robert Berk

127 pages

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Coronavirus: Leadership and Recovery Lead through the crisis and prepare for recovery. As the COVID-19 pandemic is exacting its toll on the global economy, forward-looking organizations are moving past crisis management and positioning themselves to leap ahead when the worst is over. What should organizations be doing now to address today’s unprecedented challenges while laying the foundation needed to emerge stronger? Will they adapt or be left behind? Business leaders can get up to speed and deepen their understanding of the topics that are shaping their company’s future with the Insights You Need from Harvard Business Review series. Featuring HBR’s smartest thinking on fast-moving issues — blockchain, cybersecurity, AI and more — each book provides the foundational introduction and practical case studies an organization needs to compete today and collects the best research, interviews and analysis to get it ready for tomorrow. Coronavirus: Leadership and Recovery: The Insights You Need from Harvard Business Review Martin Reeves, Nancy Koehn, Tsedal Neeley and Scott Berinato

192 pages

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Available 7/28/2020

JULY 35 2020 INBUSINESSPHX.COM

Economy

DEVELOPING & GROWING BUSINESS DYNAMICS

Planning an Exit in Volatile Times How uncertainty impacts business owners’ succession planning by Suzie Eyrich

Succession planning comes down to one question: “How do you want to exit?” The reality is all business owners will eventually exit their business. Whether they retire to the beach, sell their company and move on to another venture or for health reasons can no longer be a part of the day-to-day operations, they need a plan that financially prepares them for the next phase of their lives while supporting a continued vision for the company. A successful exit plan creates a business model that is transferrable and lays the foundation for a seamless transition for the owner and employees. Yet, what happens to these plans when thrust into unexpected, volatile times?

WHEN UNCERTAINTY STRIKES

Suzie Eyrich is a senior wealth planner with BMO Wealth Management. She provides customized wealth planning solutions to high-net-worth individuals and families, assisting them with tax planning, business succession, asset protection and financial management strategies. Eyrich has more than 13 years of experience in the financial services industry. wealth.bmoharris.com

JULY 2020

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Under normal circumstances, succession planning often is a straightforward, though detailed, exercise in long-term goalsetting and strategy. This process involves the owners casting a clear vision for their future, creating a specific timeline to reach their goals, aligning business operations to support this vision and assembling a team of professionals to guide the plan and ensure it is executed successfully. However, when times are uncertain, emotions often get the better of us and can severely limit our ability to plan. Fear, particularly of the unknown in the current environment, often is a business owner’s greatest deterrent when it comes to planning for the future. The need to pivot focus toward shortterm and immediate business needs to ensure it can emerge stronger during volatile periods can make it difficult to have necessary conversations surrounding succession planning and longer-term exit strategy. This has played out during the current crisis. With the ongoing pandemic and economic impacts of COVID-19, many business owners have either hit pause on their existing succession plans or delayed the process around them in favor of focusing on immediate needs. Certainly, these reactions are understandable — especially considering the drastic effects of the present crisis. When revenue evaporates and a business must suddenly close or evolve — as has happened to thousands of businesses during the pandemic — zeroing in on short-term needs is a matter of survival.

BALANCING SHORT AND LONG TERM

Still, even in times of volatility, business owners should not completely abandon all focus on the long term. In fact, such circumstances can underscore the importance of having a strong plan in place. The good news is the basic tenets of succession planning — asking questions, setting clear goals, assembling a good team of advisors, etc. — remain the same even when uncertainty and volatility strike.

The key, then, is to find a balance between ensuring the business’s short-term needs are met during times of uncertainty and maintaining a focus on long-term direction.

DIRECTION MATTERS

Part of maintaining that balance lies in accepting that things are different, and that previous expectations, timelines and goals may have to change. For example, an owner who planned to sell her company and retire in the next few years must now consider if that goal is still feasible. What does the market value of the business look like today? Has the valuation been depressed? Is the owner willing to adjust her expectations and long-term goals to accept a lower price for a sale? Is the owner willing to hold off for another year or two? The answers to these questions are fundamental in determining the direction of the business and providing insight into any potential contingency plans that may need to be developed. This illustrates the importance of having a plan in the first place. Operating without one will create additional anxiety and fear, whereas having a clear vision provides an initial point of direction that can be recalibrated or changed if needed. So where to start? The first step is to get clear about personal and business goals. Then work with a valuation expert to value the business in the current environment and understand the variables that impact that value. Finally, work with a wealth planner and exit specialist to implement strategies to support the growth or sustainability of the business value that will ultimately secure the owner’s personal financial future. Ultimately, plans can and may change over time as unforeseen circumstances arise, but business owners must have a direction to succeed.

The basic tenets of succession planning remain the same even when uncertainty and volatility strike: Ask questions about the future, set clear goals focused on the why and assemble a good team of advisors.

LAW MATTERS TO BUSINESS

Rights of First Offer and of First Refusal Issues that may arise in real estate transactions by Bruce B. May

Bruce B. May, an attorney in the Phoenix office of Jennings, Strouss & Salmon, P.L.C., has devoted his entire career to all aspects of the law and practice of real estate and commercial transactions throughout Arizona. He has been listed in The Best Lawyers in America© and Southwest Super Lawyers in the category of real estate since the inception of both. In 1991, May was elected to membership in The American College of Real Estate Lawyers in honor of his statewide and national accomplishments. jsslaw.com

JULY 2020

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This article is a case study of a particular transaction in which the buyer agreed in a purchase agreement to grant the seller both a right of first offer (ROFO) and a right of first refusal (ROFR) to repurchase the property. Compliance with the terms of the ROFO and ROFR proved a bitter and extracted process for the buyer. The terms of the ROFO provided that before the buyer could offer the property for sale, it had to submit a ROFO offer to the seller. The seller had 30 days to notify the buyer if it accepted that offer. If the seller did not accept it, the buyer could seek offers from third parties — and if the buyer received an acceptable ROFO offer, it must first submit the ROFR offer, executed by the ROFR prospective purchaser. Both the ROFO offer and ROFR offer had to set forth “the purchase price, terms of payment and other material terms.” The buyer intended to list the property, so the broker was informed, and a standard form listing agreement executed. The listing agreement, however, failed to provide for all of the contingencies and expired before the ROFO and ROFR process would be completed. It was only through the good faith and integrity of the broker and the buyer that the broker remained meaningfully involved and received a commission. The buyer first made a ROFO offer to the seller on terms that were less favorable than those the broker was instructed to offer to prospective purchasers. The differences were entirely justifiable assuming that the seller would not need the same due diligence and other contingencies a third-party would; nonetheless, the seller insisted the ROFO offer was invalid. The seller also contended that if it did not accept the ROFO offer and the buyer wanted to market the property on different terms, the seller was entitled to a modified ROFO offer submitted for consideration for another 30 days, extending the timeframe of the transaction. A prospective purchaser was found, but did not fully understand how the process worked and submitted a Letter of Intent (LOI) with only the basic terms set forth. This seemingly straightforward event raised complications. The buyer convinced the prospective purchaser that the seller could insist that the LOI did not set forth all terms that the seller might consider “material” and would have to be resubmitted with the additional “material” terms. Moreover, the LOI provided that it was “non-binding and subject to further negotiations and documentation” — as an LOI typically does — and the seller would have a legitimate basis for claiming the LOI did not truly constitute an “offer.” To avoid any contention by the seller that a material term has been omitted, the ROFR offer would have to be submitted as a fully negotiated purchase agreement executed by the prospective purchaser. Most prospective purchasers, however,

In practice, rights of first offer in real estate transactions are rare; rights of first refusal, however, are fairly common.

will submit only an LOI, refusing to spend the time and incur the attorney fees in negotiating the purchase agreement, as the time and fees would be wasted if the seller accepts the ROFR offer. In this case, the prospective purchaser agreed to take the time and risk the fees, but the negotiations were needlessly lengthy because the prospective purchaser struggled to understand why the seller could reject a purchase agreement signed by both the buyer and the prospective purchaser and binding on both, subject by its terms, to a ROFR contingency. Ultimately, an acceptable purchase agreement was signed by the prospective purchaser and submitted to seller as a valid ROFR offer. The purchase agreement, not surprisingly under the circumstances, provided for a lengthy due diligence and a financing contingency of 90 days. The seller accepted the ROFR offer, and, as a result, enjoyed the right to terminate during the same contingency period. The seller closed, but if it had terminated the ROFR purchase agreement during the contingency period, and the ROFR purchaser, as well, terminated the purchase agreement during its 90 day contingency period, as many as eight or nine months would have passed from the date the buyer first submitted the ROFO offer to the seller. To put the property back on the market, the buyer would have had to submit another ROFO offer to the seller, with the process beginning anew and the possibility of another delay of equal length with no certainty that the property will be sold in the end. In this case, if the terms of the ROFO and ROFR had been more carefully considered and drafted, the buyer could have avoided what seemed an endless nightmare.

DARING TO BE BETTER

“Today we pay a lot of lip service to the idea of ‘bringing your whole self to work’ — yet the organizations that actually allow employees to do that are few and far between. . . . what I often observe is that many organizational cultures and leaders still subscribe to the myth that if we sever the heart (vulnerability and other emotions) from our work, we’ll be more productive, efficient, and (don’t forget) easier to manage …

Armored Leadership vs Daring Leadership There is no courage without vulnerability by Eileen Rogers

Leadership is about risk. For me, it began when I took a giant first step into the business ownership arena, full of hopes and dreams with no real idea what I was actually in for. How I faced the risks and challenges in the arena was what mattered. Getting up when I fell, dusting myself off and taking what I learned right back into the arena the following day. Dr. Brené Brown is the author of Dare to Lead and an academic researcher. As part of her work, she set out to define and understand types of leadership. After interviewing more than 150 leaders in dozens of industries, she identified two distinct models: Armored Leadership and Daring Leadership.

ARMORED LEADERSHIP

To understand the differences, let’s start with armored leadership. The way it sounds is exactly what it is: a leader who suits up every day in an emotional armor, ready to do battle at work. Once one knows what to look for, it’s easy to spot: • Armored leaders drive perfectionism and foster fear. • They operate from a scarcity mindset, and • because of that, they squander opportunities for joy and recognition, which are the foundation for collaboration and teamwork. • They concentrate on knowing all the answers (whether they do or not) and insist on being right. • Armored leaders tend to adopt a “power-over” style. (Power comes in at least three flavors: “power over” another person, “power to” accomplish or empowering others, and the power that is found within oneself.) • They protect themselves with cynicism and criticism. • They reward exhaustion as a status symbol. • Finally, they promote a culture of “fitting in,” which, sadly, tolerates discrimination. Armored leadership is common in organizations and governments. It can be effective, but at what cost? These are often the same businesses that struggle with issues of employee recruitment and retention, innovation, productivity, team building, and creating resilient organizational culture.

DARING LEADERSHIP

Daring leadership is very different. Rather that donning

Risk

armor, a daring leader chooses to live, love and lead with a whole heart. What exactly does that mean? • Daring leaders allow themselves to feel. They model clarity, kindness and hope. • They encourage healthy striving, empathy and selfcompassion. • Daring leaders are learners. Rather than displaying a need to be right, they acquire the skills to get it right. • They use “power with,” “power to,” and power within. • They are skilled at acknowledging, naming and normalizing collective fear and uncertainty. • They set appropriate boundaries by modeling and supporting rest, play and recovery. • Daring leaders cultivate a shared purpose and a culture of belonging, inclusivity and diverse perspectives. If someone had asked me 40 years ago, I’d have probably said these traits of daring leaders sounded soft, weak and ineffective. What I didn’t know at the time is, they were the definition of vulnerability. And vulnerability was not a term I’d have ever wanted to be associated with my leadership. Today, after having had thousands of experiences of falling face-down in the business arena, I’ve learned that vulnerability — defined as risk, uncertainty and emotional exposure — has become the regular diet of my most meaningful leadership experiences. As Dr. Brown put it: “The courage to be vulnerable is not about winning or losing, it’s about the courage to show up when you can’t predict or control the outcome.” As I said at the start, leadership truly is about risk. Whether we want to admit it or not, risk is almost always accompanied by fear. Yet, leadership fear does not miraculously go away as many seem to believe. In fact, all the leaders Dr. Brown interviewed in her research said they were afraid every day. It is not fear that gets in the way of courage — it is armor. Daring leaders do not armor up. I know now that courage is contagious and that we all have the capacity to learn it and practice it. There is no courage without vulnerability. By leaving my armor on the ground, I know I will show up with heart and create the opportunity to serve those I lead.

Leadership truly is about risk. Whether we want to admit it or not, risk is almost always accompanied by fear.

“These beliefs lead us to consciously or unconsciously build cultures that require and reward armor…. where heart and emotion, especially vulnerability, are seen as liabilities . . .” —Dr. Brené Brown

After 40 years as president of her print and marketing company, Eileen Rogers’ encore career is now as a leadership coach and business advisor through her company One Creative View. She is a seasoned and accomplished entrepreneur and recognized community leader who is fiercely passionate about supporting and growing more vulnerable and courageous leaders. She is a certified Dare to Lead™ facilitator, Integrative Enneagram practitioner and executive coach. onecreativeview.com

JULY 39 2020 INBUSINESSPHX.COM

Social Impact

BUSINESS GIVES BACK

All About Elevating People

As an interracial couple, the Mitchells have a perspective that inspires them to lead difficult conversations about diversity and inclusion by Tyler Butler

VISTA COLLEGE PREP MISSION Through academic rigor and leadership development, Vista College Preparatory Charter School will educate all K-8 students for achievement in high school and graduation from college. vistacollegeprep.org

Tyler Butler (“Tyler Butler | Giving in Style”), founder and CEO of 11Eleven Consulting, is a corporate social responsibility practitioner and expert leader in the corporate citizenship space. She has served on numerous national and local boards and is often cited as a subject matter expert by Forbes, Entrepreneur, U.S. News & World Report and more. 11elevenconsulting.com givinginstyle.net

JULY 2020

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Nearly two decades ago, power duo Sherri and Charles Mitchell joined forces in business. As founders of All About People, they have brought a unique perspective to executive placement and recruiting. For the Mitchells and their team, All About People is more than just their company name, it is their core belief. This group has been meeting recruiting needs for corporations large and small, delivering one remarkable candidate at a time. The All About People team is not only impacting the lives of those they directly serve, but their work has an incredible ripple effect that impacts the families and communities in which they live. Their experience, determination and valuedriven strategy combine to serve a plethora of needs. Their obsession to serve brings many of their goals to the forefront. It is the years of experience working with people and for people, coupled with their voice in the community, that has placed them in a position to be of service with some very necessary but very difficult conversations. As an interracial couple, the Mitchells have a perspective that inspires them to lead difficult conversations about diversity and inclusion. Because Sherri and Charles operate from a place of accountability and determination, they recognize that the current social climate in our country has presented them with a unique opportunity. The Black Lives Matter movement along with the current economic crisis going on in our country positions them to be a strong voice. Through their community involvement with organizations such as Young Presidents Organization, they are serving as a catalyst for change in many ways. They see an opportunity to elevate the Black Lives Matter movement conversations that are finally coming to the forefront. They recognize we all have a lot of work to do to open more doors and be more responsible to our local community. It is their goal to advocate for honest and real conversation regarding systemic injustice. They believe that by acknowledging the socio economic and racial discrepancies in our country, we will be able to create a space for sustainable change to happen. So, through its hefty roster of corporate clients, All About People has been socializing the concept of a greater focus on diversity and inclusion in corporate culture. And now there is greater opportunity to have a dialogue and really discuss matters of race and what it means for all of us. “Our goal is to operate in a space so there is equity in the work that we do, there is true diversity in the work that we do, there is true inclusion in the work that we do,” shares Charles Mitchell. All About People has been a Valley staple, placing talent in prominent roles for PetSmart, University of Phoenix, the State of Arizona and General Electric, to name just a few. And through their community efforts, the team is furthering their impact by being a catalyst for the diverse workforce they hope

to serve as a resource for and to. And so, Charles Mitchell took on the challenge when approached to help launch and elevate Vista Preparatory School and serve as its founding board chair. Vista College Prep runs free charter schools in Phoenix, with a longer-than-usual school day, small class sizes and teachers who firmly believe all students can achieve academic success if they have access to a high-quality education. Led by Julia Meyerson, the school has made tremendous headway in only a few years and has even been recognized by the U.S. Department of Education as a National Blue-Ribbon School. Vista holds true to the mantra that “demographics should not determine destiny.” Its approach is unique in setting an expectation that its kids explore college and attend if they so choose. Vista staff does this by starting the conversation about college early. Through this communication, they know they can move the needle on the educational divide. With 90 percent of students at Vista Prep being brown or black, the education these youth will receive will undoubtedly have a positive impact or ripple effect on the workforce of tomorrow. Thanks to the success of their Fund a Bus campaign, which enabled the school to add access to transportation for its mostly impoverished demographic, Vista is well on its way to changing the face of tomorrow. Thanks to the continued leadership and work of Sherri, Charles and their entire All About People team, this organization is working to take part in the difficult, racially motivated conversations being held today, all while serving as a voice and advocate championing a more diverse talent pool and thus providing communities with the talent that sometimes gets overlooked.

A 2018 study by Harvard Business Review found the most diverse companies were also the most innovative, allowing them to market a greater range of products to consumers. Calculating each company’s diversity across six dimensions — migration, industry, career path, gender, education and age — HBR found that industry, nation of origin and gender had the biggest impacts, but by thinking about diversity in a multidimensional way companies were able to lead in innovation.

FOR-PROFIT & NONPROFIT GROWTH

Capacity

The Next Normal: Change Your Game Plan or Become Irrelevant Change occurs, shift happens by Charlie Smith Change and disruption are the next normal. C-suites and boards of directors must learn how to become agile, make decisions fast and get ahead of the change curve. They will need to think and act differently. There is a lot we don’t know about what the near-term future holds for us. However, there are two things that we know to be true: There will be more, not less, disruption going forward; and operating budgets and strategic plans will need to flex — if not be totally revamped. Change occurs, shift happens. There are many ways to approach change. Here are five actions organizations can take to ensure their game plan will change. Work as one — virtually: CEO and board trust and transparency are mission-critical. En-visioning scenarios: Create “Step-Ahead” teams to role play and game-out scenarios. Identify key triggers for action: Develop action plans prior to events. Contingencies and processes need to be nimble. Make bold moves/no-regrets decisions with limited data: Understand business has been disrupted and will continue to be disrupted at an alarmingly fast pace. Constant contact and transparency between the CEO and board are required to enable rapid-fire decision making. Do it fast … change as needed.

Here is how one organization approached COVID-19 crisis planning. A major nonprofit found its business model upended and its client base evaporate, forcing its CEO to move into action immediately. SENS: Shock + Economic Engine + Next-Normal + Strategic Framework

When discussing its management teams’ actions over the preceding 90 days, the nonprofit’s CEO shared these lessons learned: Speed is essential. Transparency is a requirement. “I Don’t Know” is a sign of strength. As we think about the future — and the number of decisions that will need to be made — leaders should sit quietly for a moment and consider everything good that’s come out of the pivoting and crisis management they have done since the disruption started. They should think about how they and their team have responded. Decide to celebrate the things that have gone well and show grace in the lessons-learned. Then think about how to embrace and lean in to the next normal. They should take satisfaction in knowing they will continue to pivot and their team will develop agility and resilancy as new competencies. Make SENS out of the environment and keep charging forward.

“Crisis Leadership is about rapid innovation, amidst many unknowns in an environment that is constantly changing with your team embedded in stress and wrapped in fear.” —Adapted from JP Morgan Webinar: Nonprofit Board Leadership During the COVID-19 Pandemic. May 15, 2020.

Charlie Smith is managing partner at the Weber Group. Smith brings decades of experience in the financial services industry, including an extensive background working within organizations t o develop high-performance teams. His focus is working with nonprofit CEOs, executive directors and board chairs to build smarter high-performance organizations focused on strategy and execution. He is a BoardSource Certified Consultant, a certified 6 Sigma Black Belt and a Master Black Belt in planning. webergroupaz.com

JULY 2020

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OUR SUBJECT IN-DEPTH

New C-Suite: Why Companies Should Have a CHRO COVID-19 has highlighted HR’s influence in making board-level company decisions by Rhiannon Staples

HR WILL BECOME CULTURE LEADERS With remote work being the norm HR can no longer leave culturebuilding for the team managers alone, and HR is expected to use technology to implement culture-building exercises. HR can help staff build friendships and connections (especially when onboarding) by helping employees identify shared interests and facilitate creating groups with similar interests.

Rhiannon Staples is the chief marketing officer of Hibob, the company behind the transformative HR platform bob, which brings together employees and managers to help them communicate and collaborate more effectively. hibob.com

JULY 2020

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The COVID-19 pandemic is an event the likes of which hasn’t been seen since the flu outbreak in 1918, before coworking spaces and international travel on airlines. Strange is it may seem, the solution, for now, is to stay at home for work and play. With the increase in remote work, HR is fundamentally shifting into a higher-level decision-making position where HR technology will help drive critical analyses about the productivity and effectiveness of the distributed teams.

WHY SHOULD COMPANIES HAVE A CHRO?

In these unusual times, HR has the power to support employees on both professional and personal levels. There is no one C-level that can lead the process of sending employees overnight to work from home, dealing with who and how to furlough employees on a mega scale, and figure out the operational requirement of bringing teams back to the office safely and without disrupting productivity. Line managers of teams and other C-levels do not have the knowledge, experience, or information on how to deal with the massive people changes required and still keep everything working like never before. In times of crisis, employees at all levels are relying on HR for the most basic, and complicated, needs: Empathy — The impact of the COVID-19 pandemic isn’t limited to employees’ physical health. HR’s role is to strengthen the role of empathy in company culture: to keep an open-door policy for struggling employees (and maintain confidentiality!), make sure managers know how to identify warning signs for at-risk teammates, and implement organization-wide processes that relieve some stress, whether that be the occasional half-day, gifts sent home or even just encouraging messages. Communication — The transition from location-based teams to a fully distributed model highlights communication problems within and between teams. HR’s role is to help managers and employees learn best practices for remote communication, including how to take advantage of existing tech tools. Awareness — Especially in larger companies, the C-suite may have limited interaction with employees. HR’s role is to continuously advocate for employee rights and needs and to be the voice of those who can’t speak for themselves. Information — HR should be an organization’s single source of truth for organizational and government policy at this time. In order to feel secure, employees need to know they can trust HR to explain procedures for shelter-in-place, furlough and other unique-to-COVID needs.

Only HR can provide a bridge between employees and executives. As a liaison between the staff, C-Suite and the company board, the CHRO will be needed in the boardroom to make decisions on developing a return to the office process and plans.

HOW IS HR SIMPLIFYING WFH?

Without HR piloting the change, how could an entire company pivot to WFH? Quickly? Slowly? Actually, this kind of change takes more than time. It takes ability. Change has to start from above but make sense on the micro-level. When it comes to implementing remote processes, there’s no one better equipped than HR — for both the small tasks and the big ones. With many companies adopting work from home as the new norm, it is pretty clear that there will be more and more remote workforces, which means that everyday office operations will include the new offices that will be online. These offices of people working from home will have to be approached through HR technology to keep communications going, and their added value will be through organizing operations, building culture and boosting employee morale remotely. Tasks such as facilitating work-from-home office setup and remote management training may well become critical for HR employees. By establishing codes of conduct for WFH, from defining what remote management entails to pre-empting any dress code faux pas, HR will save the day for all team members working from home.

THIS IS HR’S TIME TO SHINE

HR is not there just for hiring and payroll but also to analyze payroll and gender gaps, diversity and morale. With modern HR technology, HR can now provide finance with information about payroll costs and performance measures.

HR TECHNOLOGY DATA IS AN ASSET FOR SENIOR MANAGEMENT DECISION MAKING

HR can utilize anonymous survey technology available on HR tech to get a feel for what’s important to employees so they can come back safely and where there is room for flexibility and improvement; this way HR knows well know before anyone which issues need to be addressed by senior management and the board. The feedback on HR surveys is authentic and direct and portray the truth about people’s feelings.

Quick and agile WFH policies taught organizations that HR can help company boards decide where additional costs can be saved — if teams can work from home effectively and productively perhaps rent, office supplies, computers, subscriptions, and travel can be saved to help companies decrease expenses and prosper.

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WE VALUE WHAT WE OWN

2020 BMW 8 Series Gran Coupé

BMW 8 SERIES GRAN COUPÉ

With perfect symmetry of space and sportiness, the BMW 840i xDrive Gran Coupé embodies elegance in every form. The heart of the 8 Series Gran Coupé is its TwinPower Turbo engine — particularly the very muscular V-8 found in the M850i xDrive model, which delivers up to 523 horsepower. When dynamics meet luxury, the result is something unique. Its design is aesthetics in its most thrilling form. It establishes a completely new design for luxurious sports cars, conveying power and impressive agility. This sedan is sporty on every mile of asphalt. As soon as the engine sends the rev counter soaring to new heights, passenger pulses start climbing, too — in all four seats — in an irresistibly exclusive and at the same time impressively sporty ambience. Sized like a sedans and designed like a sports car, the 8

MSRP: $84,900 Transmission: 8-speed Sport Automatic Hwy: 22 mpg City: 29 mpg 0-60 mph: 4.9 sec

Series Gran Coupé features chiseled lines and a graceful, low roofline in a four-door configuration. An illuminated path beckons driver and passengers to the doors. Once inside, six shifting shades of ambient lighting set the tone for the drive. The interior is appointed with nothing but the best. With Extended Merino Leather upholstery accompanied by Ash Grain Grey-Metallic Wood trim, this space feels like a wellappointed lobby. Dynamic Stability Control — which includes Brake Fade Compensation — along with Start-off Assistant, Brake Drying and Brake Stand-by features with Dynamic Traction Control give everything needed for performance, including stopping, taking curves and dodging obstructions. The Harman Kardon® Surround Sound Audio System with equalizer and powerful 464-watt amplifier is standard with the 16-speaker system that includes nine tweeters, five midrange speakers and two bass speakers for incredible sound throughout. Drawing inspiration from its agile two-door cousin, the 8 Series Gran Coupé embodies a refined class of sportiness that’s above and beyond the ordinary. Every digital display in the 8 Series Gran Coupé features clean, modern and precise design, delivering information at a visually pleasing glance. —Mike Hunter BMW bmwusa.com

JULY 2020

COMMERCIAL REAL ESTATE

CRE in the

Business Swag with a ‘Stay Healthy’ Message The days of welcoming employees to the office with T-shirts, mugs and other swag may be over. In

Time of

COVID-19

CHRO:

And what does that tell us about our economy?

The New C-Suite Testing, Testing:

JULY 2020

COVID at Work?

•

Employee Retiremen t

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Accounts for Small

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Business

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Alliance of Arizona Nonprofits

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a sign of the new normal as businesses begin to reopen while the country continues to grapple with the pandemic, COVID-style “back-to-work kits” are enabling companies to bring their teams back into the fold with items like face masks, gloves, hand sanitizer and antimicrobial products that would never have been considered a few months ago. iPromo has introduced nine kits for back-to-work use that can be branded with the business’s name and logo. Options include:

Return To Work Kit (pictured)

Out and About Kit

Lux Kit

A face mask, nitrile gloves, antimicrobial

Stylus pen for use on shared screens such

A 17-oz S’well stainless steel water bottle

wipes, hand sanitizer and hand lotion

as grocery store checkout terminals, ATM

with a Bluetooth tracker and an antimicrobial

packets, device wipes, tissues, mints and a

machines and elevator buttons to avoid

keychain attachment tool that eliminates the

candy bar packaged in a brandable pouch

spreading germs, plus a reusable face

need to touch ATM buttons, door handles,

$10.90

mask, nitrile gloves, hand sanitizer, tissues

grocery self-checkout screens and other

and brandable pouch $7.99

potentially contaminated surfaces $129.98 —Leo Friedman, CEO of iPromo (www.ipromo.com)

JULY 2020

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The BMW Individual Collection: The car is an expression of its owner’s personality as BMW offers custom colors, exclusive materials and personalized details. Anything is possible in the world of the BMW Individual. A virtually limitless range of options, from one-of-a-kind paint finishes to bespoke interior materials, allows for a custom vehicle that’s as unique as the driver.

Photos courtesy of BMW (top and far left), iPromo (bottom)

IN BUSINESS MAGAZINE

Pandemic Not the First Challenge for these Black Businessw omen

Arizona

TWO GREAT BANKS BECOME ONE. When it comes to furthering our state, it’s not just business. It’s personal. Which is why we merged two of Arizona’s most trusted banks—to give you a financial partner who

not only offers local decision-making, but the regional power and strength to keep pace with the growth of our state. Welcome to a new kind of banking experience. www.bokfinancial.com

— Dave Ralston Arizona Market CEO

Banking | Lending | Investments

MEALS THAT MATTER

MEDITERRANEAN CHICKEN SALAD Grilled, chopped, all-natural chicken breast; roasted bell peppers; cucumbers; taboule; seasonal mixed greens; corn; diced tomatoes; red onions; feta; golden raisins; toasted pine nuts; fresh cilantro; and Pita Jungle’s house-made lemon vinaigrette $11.99

Pita Jungle: A New Vision and Mission by Bassel Osmani

$39

Bassel Osmani is a cofounder of Pita Jungle. Celebrating 25 years in business, the locally based restaurant offers a menu influenced by tastes from around the globe, with the benefits of the Mediterranean diet always apparent through the use of healthy lean proteins, veggies, legumes, nuts, grains and fruit. pitajungle.com

JULY 2020

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Pita Jungle co-founder Bassel Osmani was featured in a “From the Top” profile in the March 2018 issue of In Business Magazine.

operations is crucial, it is hard to imagine a future that is not enhanced by a convivial dining experience. While the near term future seems riddled with tumult and uncertainty, with the help of our loyal employees and the support of our dear patrons we hope to ride these pandemic choppy waters and address the needs and wants of tomorrow’s demand, with a culinary product that is very good, and very good for you. Even if it doesn’t seem obvious today, we are staunch believers that tomorrow’s experience will not be exclusively delivered in to-go bags, as there will always exist the human longing for the basic restaurant “experientials”: the conviviality of basking in the energy of your favorite dining room, serenaded by the hubbub of clanking plates expediently handled by joyous expert staff, to the tune of Jazz, Rock ʼn’ Roll, EDM or whatever . . . but there will be a tune, a symphony of delicious food and harmony. Pita Jungle 20 Valley locations / 23 Arizona locations Now open for dine-in pitajungle.com

Photos courtesy of Pita Jungle

FAMILY MEALS Meal includes a generous starter of Pita Jungle’s signature hummus or Caramelized Cauliflower, a platter of selected ingredients (greens, protein, sauce) to “build your own” pitas or bowls with turmeric brown rice, a choice of a signature salad or large side dish, and a serving of Pita Jungle’s walnut baklawa. This meal deal feeds four people and is available for takeout only.

We believe Pita Jungle’s mission has never been more relevant: Placing every American within affordable reach of food that is healthful, freshly made and delicious. In addition to all mitigation efforts that reverberate around us — from the top pertinent authorities to whatever tall-tale prescription your Aunt Gertrude might have told you about — what is often omitted is the dietary and lifestyle advice for people to make their health better so they can fight better when exposed to COVID-19 or any other affliction. Founded with the mission of helping guests sustain a healthy and balanced lifestyle, our restaurants serve up a diverse menu of tasty, fresh, wholesome foods, including a variety of vegetarian, vegan and gluten-free options. When the shut-down of our state began, Pita Jungle adhered to its core values and quickly rolled out value pricing on the family meals because we knew that a lot of people were sitting at home with reduced or no income. It’s a way for Pita Jungle to give back, as we wanted all customers that supported us over the years to still be able to enjoy us at a price that is affordable and that “respects” their economic circumstances. In every sealed bag that left our restaurants, we hoped to include a dose of culture — culinary or otherwise — that would unfold through the senses of the consumer, and deploy a perfect Pita Jungle experience. The taste, the smell, the look of the food, the non-formulaic service from the curbside pick-up and the courageous optimism emanating from our industrious chefs and kitchen staff, all contributed to the packing — in a sealed bag — of a true Pita Jungle experience to go. While Pita Jungle was lucky to muster a considerable footprint within the realm of to-go and deliveries prior to COVID-19, the pandemic was truly a catalyst that precipitated the need to develop digital-based solutions to connect with our patrons and provide our services in an efficient and safe manner that integrates with their lifestyle restrictions (lockdown) or future consuming-style aspirations. Our business was severely affected, and, while optimizing the off-premises

SUMMER 2020

UNITING, STRENGTHENING, AND ADVANCING ARIZONA’S NONPROFIT SECTOR. ARIZONANONPROFITS.ORG

Expecting the Unexpected by Kristen Merrifield, CAE, CNAP, Chief Executive Officer

CONTENTS

Arizona Gives Day

Republic Bank of Arizona Steps Up for Nonprofits during Pandemic

Expect More Arizona

Nonprofits Need Funding Now More than Ever

Alliance News Updates

ALLIANCE OF ARIZONA NONPROFITS CONTINUED FROM PAGE 1

Arizona Gives Day by Jennifer Purcell, Vice President of Community Engagement Coming off a record-breaking Arizona Gives Day in 2019 that generated $3.6 million from donors statewide, expectations were sky high for the eighth annual Arizona Gives on April 7. And then came COVID-19. As the Alliance of Arizona Nonprofits, Arizona Grantmakers Forum and presenting sponsor FirstBank moved closer to Arizona Gives Day 2020, the state — and the country — struggled to cope with the pandemic’s impact. Workers faced job losses as businesses started closing; fundraising events and galas and arts and cultural seasons were cancelled; the stock market sank on the uncertainty; and governors across the nation debated stay-at-home orders. No one could really figure how it all would affect people’s ability or willingness to donate to the 24-hour online fundraiser as they justifiably focused on paying their own bills. “We maintained what we felt were reasonable outcome expectations, given the situation, and strategized ways to make the process and the experience even more beneficial for both donors and nonprofits,” said Alliance of Arizona Nonprofits CEO Kristen Merrifield. “In the end, everyone not only stepped up, but jumped in.” The effort included re-opening registration for nonprofits that originally opted out of this year’s event, adding an Arizona Gives Day Emergency

Relief Fund giving donors the option to increase donations as an add-on at checkout or through direct donation, and organizing a group of donors who provided funding to waive payment processing fees normally paid by participating nonprofits. “When Arizona Gives Day launched this year, we couldn’t stop watching the tally board on the website, because it was exploding,” said Merrifield. “We are still overwhelmed by the astonishing response and generosity from the people of Arizona to support nonprofits doing such great work in every community in the state.” The final numbers were, in a word, staggering: $6.1 million raised through 38,779 donations supporting 913 of the 983 registered nonprofits. At the same time, through Arizona Gives Day, 2,225 volunteers pledged 81,862 hours to Arizona nonprofits. Participating nonprofits also received an even share of the Emergency Relief Fund dollars, and $193,500 in prize-pool money was awarded. In total, Arizona Gives Day has generated more than $23 million over the past eight years “and no year was more critical than 2020 given the deep financial challenges so many nonprofits are facing,” Merrifield said. “On behalf of nonprofit organizations across Arizona, we are incredibly grateful for the widespread and selfless support.”

Put your plans to use. Once you’ve mapped out a few scenarios, start assessing which one feels the most likely or necessary. Start building a more specific plan from there that you can use as an implementation tool. Revise and communicate your plan. As more unknowns become known, and more knowns shift into the unknown, you will need to revise your plan. Eliminate those scenarios that are unlikely to be useful. Identify new scenarios to explore. Your leadership team should be clear on who is helping to inform the plan and who is making decisions. The only way out is onward. Planning for a future with so many unknowns, especially when people and communities depend on you in some way, is hard and draining work. We are in the “messy middle” between the old way and the new way. However, onward is the only way out. ALLIANCE OF ARIZONA NONPROFITS BOARD OF DIRECTORS BOARD CHAIR: Len Gutman, American Heart Association VICE CHAIRS: Torrie Taj, Child Crisis AZ SECRETARY: Yvonne Moss, Caritas Law Group, P.C. TREASURER: Mario Aniles, Housing Authority of Maricopa County Mesha Davis, Arizona Foundation for Women Maria Echeveste, Bank of America Roger Haston, Ph.D., The Institute for Animals Kate Jensen, Ronald McDonald House Charities of Southern Arizona Kelly McCullough, Contributor Development Partnership (CDP) Myriah Mhoon, New Life Center Sonia Perillo, Mayo Clinic Jeri Royce, Esperanca Ronald Stearns, CliftonLarsonAllen Torrie Taj, Child Crisis AZ Penny Allee Taylor, Valley of the Sun United Way Kate Thoene, Waste Not Arizona Glenn Wike, Arizona Community Foundation

WWW.ARIZONANONPROFITS.ORG

Republic Bank of Arizona Steps Up for Nonprofits during Pandemic by Karen Vitkovich, Vice President, Republic Bank of Arizona When the Paycheck Protection Program launched amid the COVID-19 pandemic, Republic Bank of Arizona made a conscious decision to roll out the welcome mat and do its best to help every Arizona small business and nonprofit organization asking for help. The bank proactively reached out to its existing customers, but went a step further in contacting its fellow Alliance of Arizona members to offer help and support. We were honored to help many nonprofit organizations with their PPP loans and funding. The bank is a staunch supporter of Arizona’s nonprofit community and offer a number of special services targeted to their specialized needs. I think the best way to say it is that we care about the community as much as you do. The bank’s support for the nonprofit community falls into several different areas: • Special services to help nonprofits reach their goals. The bank’s Not-for-Profit Banking program offers nonprofits an earnings credit allowance and CD rates above its normal rates. The services are geared specifically toward the needs of nonprofit organizations. • Increased visibility. The bank spotlights clients, including its nonprofit clients, whenever possible, providing additional outreach and exposure to the good works of Alliance of

Arizona members and other nonprofits throughout the community. We’re very proud of our nonprofit clients, and we like to share the great work they’re doing. • Educational opportunities. Through its ShopTalk program, the bank offers nonprofit organizations and other small businesses the opportunity to get valuable information from experts on various topics such as government oversight of boards, maximizing grant opportunities, tax credit tips and more. It’s informal, but very informative. • Volunteerism and fundraising. Community involvement is a core value for Republic Bank of Arizona. The bank’s Culture Club, an internal group of highly motivated employees, keeps the bank on track to meet its community involvement goals by planning and executing community outreach programs throughout the year, from food drives to book drives to toy drives, and lots more.

Expertise You Can Count On Republic Bank of Arizona has proven to be a valuable partner for Arizona’s nonprofit community. To learn more about how the bank can help your organization, contact Alliance of Arizona member and RBAZ banker Karen Vitkovich, the bank’s cash management officer and nonprofit expert. republicbankaz.com

ALLIANCE OF ARIZONA NONPROFITS

Expect More Arizona Schools adapted for closures, looking to future by Christine Thompson, President & CEO of Expect More Arizona The COVID-19 pandemic has laid bare some of the most pressing issues that Arizona schools face every day. While our state’s amazing educators have made every effort to support students and avoid a feared COVID-slide, some challenges have been more daunting than others, making even small wins especially sweet. • Food insecurity: While some schools were able to begin online learning immediately upon physically closing, most scrambled to first ensure students did not go hungry. Schools have faced unprecedented demand for free meals and stepped up to find innovative ways to procure and safely deliver food to students and their families. Nonprofit organizations have helped bridge gaps. Colleges and universities also made sure campus food pantries were stocked and available to serve students. Exposure to stresses outside of school, such as unreliable access to food, healthcare and stable housing have a huge impact on success in the classroom. As our state moves forward, we must do more to address poverty and its impact on achievement gaps. • Access to technology: As schools pivoted to distance learning, a significant digital divide had to be addressed. Rural and urban families alike lacked access to high-speed internet, the hardware to access it, or the technical expertise to access the new platforms. To help alleviate the gap, some districts made Wi-Fi-equipped buses available in communities, businesses coordinated laptop drives on behalf of students, and internet service providers stepped up to offer free broadband for families with school-age children. Federal relief funding has also helped cities provide such access. Education and business need permanent solutions to address access to technology, as these issues existed before the pandemic and will persist when it ends.

• Supporting students: Educators and students across the state pivoted to distance learning almost overnight, and have been did their best. Chances are good that when school resumes in the fall, things will look different, and parents, kids and educators will have to adapt again. Even with recent grants, there remain close to 900 students to every one counselor, a caseload that will be unimaginable as students return to school in the coming year with entirely new needs. In addition, lost learning time will require additional resources for students from support staff and interventionists to propel them forward. And let’s not forget about the strain this experience has had on our teachers. We need to make sure they are properly supported and cared for, as well.

The strength of Arizona’s economy is driven by the strength of our schools. But schools don’t just serve as the talent pipeline for Arizona businesses. Our education system allows parents and caregivers to work — beginning with access to quality early childcare and including afterschool care, summer programming and more. Schools — from early education through higher education — are an essential part of Arizona’s recovery efforts and must be treated as such. Arizona’s future depends on it. Christine Thompson is president & CEO of Expect More Arizona, a nonprofit, nonpartisan organization bringing communities together to create positive change in education at all levels.

WWW.ARIZONANONPROFITS.ORG

Nonprofits Need Funding Now More than Ever by Len Gutman, Foundation Relations Advisor, American Heart Association The coronavirus pandemic exposed a great many underlying issues across America, perhaps none more eyeopening than the fact that underserved communities were harder hit than most. Minority communities, the poor, the homeless and the elderly all saw more than their share of cases, and the pandemic exacerbated disparities. While most businesses found it difficult to make ends meet throughout the spring and into the early summer, nonprofit organizations struggled mightily to serve their constituents and keep their doors open. Nonprofit organizations rely almost exclusively on fundraising to support their missions, and with so many Americans out of work or furloughed, the work of nonprofit fundraisers became even more critical. Unfortunately, fundraising for most nonprofits was made even more difficult because so many donors redirected their donations to urgent community needs, including food banks and medical supplies. And while this is understandable, most nonprofits provide services that are not directly tied to the pandemic. No less important to a healthy and viable community, not too many people felt the same urgent need to fund animal shelters, environmental groups, legal services, and arts and culture groups, to name a few. Across the country, nonprofits have been forced to cancel or rethink fundraising events like galas and walks, while at the same time private and corporate foundations have either paused grantmaking or redirected funds to the COVID-19 response. The Coronavirus Aid, Relief and Economic Security (CARES) Act helped in the short term for those nonprofits that were able to get help, but, as it was widely reported, those funds ran out quickly. Despite these challenges, Arizonans stepped up in a big way earlier this

year during the state’s annual giving day on April 7. Arizona Gives Day 2020 raised more than $6 million for Arizona nonprofits, shattering last year’s total of $3.6 million. Nearly 39,000 Arizonans donated to a record-shattering 913 nonprofit organizations during the drive, which included $150,757 donated directly to the Nonprofit Emergency Relief Fund in response to COVID-19. This record-breaking fundraiser proved that even during a time of crisis the citizens of Arizona understand the important role of nonprofits in the state. But this should not surprise anyone given the nature of philanthropy in America. In fact, not long after Arizona Gives Day, Fidelity Charitable conducted a survey of philanthropic individuals to see how they are thinking about philanthropy in response to the pandemic and how the situation could affect their giving and

volunteering behaviors moving forward. The survey showed that most individual donors planned to maintain — or even increase — the amount they donate to charity this year. The majority of donors surveyed also said that, while they are worried about the impact of COVID-19 on the health and human services sector, the concern is also high for organizations in all charitable sectors. For nonprofit organizations to continue their critical work in Arizona, they will continue to rely on donations from individuals, foundations and the business community. These philanthropic relationships are more important than ever in the post-pandemic environment. Supporting nonprofits is not just an altruistic endeavor, but a thriving nonprofit sector is a powerful economic driver that impacts the overall success of Arizona itself.

ALLIANCE OF ARIZONA NONPROFITS

ALLIANCE OF ARIZONA NONPROFITS STAFF Kristen Merrifield, CAE, CNAP Chief Executive Officer KristenM@arizonanonprofits.org

Alliance News Updates by Liz Garlieb, Executive Assistant The Alliance of Arizona Nonprofits has completed a series of strategic steps to broaden its reach and impact through advocacy and availability of programming and resources for the state’s more than 20,000 nonprofits. In February, the Alliance opened an office in Northern Arizona under the leadership of new Regional Director Angela Palmer. With support from a grant from the Satterberg Foundation, the Alliance will coordinate programs in Flagstaff and Northern Arizona that include: • Advocacy roundtables; • Nonprofit Summits providing timely, relevant information and education about important issues impacting local nonprofits; and • Networking and information-sharing events, as well as information about membership benefits. These opportunities are in addition to Business on Board, a program already offered in Flagstaff that prepares professionals and community members for participation on nonprofit boards of directors and offers a refresher course for current board members and organization leaders. “Providing access to these resources and programs reflects the growing number of nonprofits doing great work in Northern Arizona,” said Alliance CEO Kristen Merrifield. The Alliance also diversified its ability to engage, prepare and grow nonprofit

leadership by adding the Organization for Nonprofit Executives (ONE) as an Alliance program. Michael Barry, who had served as ONE’s executive director, is managing ONE programming and also is handling responsibilities as the Alliance’s new Director of Capacity Building. Alliance Board Chair Kelly McCullough said that “bringing ONE under the Alliance umbrella offers both strategic opportunities and enhanced benefits for our members and creates significant efficiencies. It also underscores our belief that permanent supportive collaborations like this one pay tremendously diverse dividends both financially and in practical application.” As Director of Capacity Building, Barry will be responsible for developing and managing existing and new Alliance educational programs, trainings, events and capacity building resources throughout the state. To accommodate the organization’s administrative growth, the Alliance has moved to a new office that provides additional office space and conferenceroom capabilities not possible in its previous location. The new address is 333 E. Osborn, Suite 245, in Phoenix. Currently, Alliance staff is working remotely due to COVID-19 and will operate out of the new office at the appropriate time. For information about the Alliance of Arizona Nonprofits, visit www.arizonanonprofits.org.

Michael Barry Director of Capacity Building MichaelB@arizonanonprofits.org Jennifer Blair Director of Membership JenniferB@arizonanonprofits.org Jennifer Purcell Vice President of Community Engagement JenniferP@arizonanonprofits.org Robin Hanson Program Director – AmeriCorps VISTA RobinH@arizonanonprofits.org Tanya Burgess AmeriCorps VISTA Leader Tanyab@arizonanonprofits.org Lexis Reid AmeriCorps VISTA LexisR@arizonanonprofits.org Liz Garlieb Executive Assistant to Kristen Merrifield LizG@arizonanonprofit.org Angela Palmer, Regional Director, Northern Arizona, AngelaP@arizonanonprofits.org Robyn Reff Membership Manager RobinR@arizonanonprofits.org Lauren Haggerty Capacity Building Manager Laurenh@arizonanonprofits.org Tiffany Harvey AmeriCorps VISTA Leader TiffanyH@arizonanonprofits.org

Alliance of Arizona Nonprofits 333 E Osborn Rd #245 Phoenix, AZ 85012 Phone: (602) 279-2966 www.ArizonaNonprofits.org

Presents

COVID-19 and the

Workplace

PREPARE TO IMPLEMENT BASIC INFECTION PREVENTION MEASURES

Containing the Spread of COVID-19 As with anything new, we are still learning about how the virus spreads and the severity of illness it causes. The following information is from the CDC update June 16. COVID-19 is thought to spread mainly through close contact from person-toperson. Some people without symptoms may be able to spread the virus. In general, the more closely a person interacts with others and the longer that interaction, the higher the risk of COVID-19 spread. Source: CDC

COVID-19 is a dynamic topic, with information — and therefore guidelines — changing frequently as knowledge and critical situations change.

INBUSINESSPHX.COM

JULY 2020

COVID-19 and the

Workplace

CONTINUED

DEVELOP POLICIES AND PROCEDURES FOR PROMPT IDENTIFICATION AND ISOLATION OF SICK PEOPLE, IF APPROPRIATE

• P rompt identification and isolation of potentially infectious individuals is a critical step in protecting workers, customers, visitors, and others at a worksite. • Employers should inform and encourage employees to self-monitor for signs and symptoms of COVID-19 if they suspect possible exposure. • Employers should develop policies and procedures for employees to report when they are sick or experiencing symptoms of COVID-19.

Person-to-Person Spread The virus is thought to spread mainly from

SAFE WORK PRACTICES

Safe work practices are types of administrative controls that include procedures for safe and proper work used to reduce the duration, frequency, or intensity of exposure to a hazard. Examples of safe work practices for SARS-CoV-2 include: • Providing resources and a work environment that promotes personal hygiene. For example, provide tissues, no-touch trash cans, hand soap, alcohol-based hand rubs containing at least 60 percent alcohol, disinfectants, and disposable towels for workers to clean their work surfaces. • Requiring regular hand washing or using of alcohol-based hand rubs. Workers should always wash hands when they are visibly soiled and after removing any PPE. • Post handwashing signs in restrooms.

person-to-person: • Between people who are in close contact with one another (within about 6 feet). • Through respiratory droplets produced when an infected person coughs, sneezes, or talks. • These droplets can land in the mouths or noses of people who are nearby or possibly be inhaled into the lungs. • COVID-19 may be spread by people who are not showing symptoms. Source: CDC

PERSONAL PROTECTIVE EQUIPMENT (PPE)

COVID-19 is a dynamic topic, with information — and therefore guidelines — changing frequently as knowledge and critical situations change.

While engineering and administrative controls are considered more effective in minimizing exposure to SARS-CoV-2, PPE may also be needed to prevent certain exposures. While correctly using PPE can help prevent some exposures, it should not take the place of other prevention strategies. Examples of PPE include gloves, goggles, face shields, face masks, and respiratory protection, when appropriate. During an outbreak of an infectious disease, such as COVID-19, recommendations for PPE specific to occupations or job tasks may change depending on geographic location, updated risk assessments for workers, and information on PPE effectiveness in preventing the spread of COVID-19. Employers should check the OSHA and CDC websites regularly for updates about recommended PPE. All types of PPE must be: • Selected based upon the hazard to the worker. • Properly fitted and periodically refitted, as applicable (e.g., respirators). • Consistently and properly worn when required. • Regularly inspected, maintained, and replaced, as necessary. • Properly removed, cleaned, and stored or disposed of, as applicable, to avoid contamination of self, others, or the environment.

JULY 2020

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Protect Yourself and Others The best way to prevent illness is to avoid being exposed to this virus. You can take steps to slow the spread. • Maintain good social distance (about 6 feet). This is very important in preventing the spread of COVID-19. • Wash your hands often with soap and water. If soap and water are not available, use a hand sanitizer that contains at least 60% alcohol. • Routinely clean and disinfect frequently touched surfaces (www.cdc.gov/ coronavirus/2019-ncov/prevent-getting-sick/disinfecting-your-home.html). • Cover your mouth and nose with a cloth face covering when around others. Source: CDC

Employers are obligated to provide their workers with PPE needed to keep them safe while performing their jobs. The types of PPE required during a COVID-19 outbreak will be based on the risk of being infected with SARS-CoV-2 while working and job tasks that may lead to exposure. Workers, including those who work within six feet of patients known to be, or suspected of being, infected with SARS-CoV-2 and those performing aerosol-generating procedures, need to use respirators: • National Institute for Occupational Safety and Health (NIOSH)approved, N95 filtering facepiece respirators or better must be used in the context of a comprehensive, written respiratory protection program that includes fit-testing, training, and medical exams. See OSHA’s Respiratory Protection standard, 29 CFR 1910.134 at www.osha.gov/laws-regs/regulations/ standardnumber/1910/1910.134. • When disposable N95 filtering facepiece respirators are not available, consider using other respirators that provide greater protection and improve worker comfort. Other types of acceptable respirators include a R/P95, N/R/P99, or N/R/P100 filtering facepiece respirator; an air-purifying elastomeric (e.g., half-face or full-face) respirator with appropriate filters or cartridges; powered air purifying respirator (PAPR) with highefficiency particulate arrestance (HEPA) filter; or supplied air respirator (SAR). See CDC/ NIOSH guidance for optimizing respirator supplies at www.cdc.gov/coronavirus/2019-ncov/ hcp/respirators-strategy. • Consider using PAPRs or SARs, which are more protective than filtering facepiece respirators, for any work operations or procedures likely to generate aerosols (e.g., cough induction procedures, some dental procedures, invasive specimen collection, blowing out pipettes, shaking or vortexing tubes, filling a syringe, centrifugation). • Use a surgical N95 respirator when both respiratory protection and resistance to blood and body fluids is needed. • Face shields may also be worn on top of a respirator to prevent bulk contamination of the respirator. Certain respirator designs with forward protrusions (duckbill style) may be difficult to properly wear under a face shield. Ensure that the face shield does not prevent airflow through the respirator. • Consider factors such as function, fit, ability to decontaminate, disposal, and cost. OSHA’s Respiratory Protection eTool provides basic information on respirators such as medical requirements, maintenance and care, fit testing, written

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respiratory protection programs, and voluntary use of respirators, which employers may also find beneficial in training workers at www.osha.gov/SLTC/ etools/respiratory. Also see NIOSH respirator guidance at www.cdc.gov/niosh/ topics/respirators. • Respirator training should address selection, use (including donning and doffing), proper disposal or disinfection, inspection for damage, maintenance, and the limitations of respiratory protection equipment. Learn more at www.osha.gov/SLTC/respiratoryprotection. • The appropriate form of respirator will depend on the type of exposure and on the transmission pattern of COVID-19. See the NIOSH “Respirator Selection Logic” at www.cdc.gov/ niosh/docs/2005-100/default.html or the OSHA “Respiratory Protection eTool” at www.osha.gov/ SLTC/etools/respiratory. Information from OSHA’s publication “Guidance on Preparing Workplaces for COVID-19” (www.osha.gov/Publications/OSHA3990.pdf)

Spread between Animals and People • At this time, the risk of COVID-19 spreading from animals to people is considered to be low. Learn about COVID-19 and pets and other animals at www.cdc.gov/coronavirus/2019-ncov/animals/pets-other-animals.html. • It appears that the virus that causes COVID-19 can spread from people to animals in some situations. CDC is aware of a small number of pets worldwide, including cats and dogs, reported to be infected with the virus that causes COVID-19, mostly after close contact with people with COVID-19. The CDC provides guidelines for pet owners at www.cdc.gov/coronavirus/2019-ncov/daily-life-coping/pets.html. Source: CDC

JULY 2020

Albrechtsen, Sharmi, 14

Ducar, Frances, 34

Merrifield, Kristen, 47

Reyes, Maria, 22

Al-Maskari, Khalid, 20

Eaves, Tina Marie, 57

Meyerson, Julia, 40

Rogers, Eileen, 39

Bartos, Ryan, 24

Eyrich, Suzie, 36

Mitchell, Charles, 40

Sarbinoff, Ryan, 24

Berinato, Scott, 35

Friedman, Leo, 44

Mitchell, Sherri, 40

Scalise, Jason, 34

Berk, Robert, 35

Green, Darius, 24

Mohan, Bhavya, 11

Schwerdtfeger, Patrick, 35

Brown, Brené, Dr., 39

Gutman, Len, 51

Mulhern, Bob, 24

Smith, Charlie, 41

Bryant, Adrienne, 9

Keyser, Jonathan, 24

Neal, Stephanie, 16

Staples, Rhiannon, 42

Buell, Ryan, 11

Klueger, Daniel, 24

Neeley, Tsedal, 35

Tarver, Charlene, 10

Butler, Tyler, 40

Koehn, Nancy, 35

Ng, Frankie, 12

Tatum, Spencer, 13

Clarke, Brandon, 14

Mangum, Lachele, 57

Osmani, Bassel, 46

Thompson, Christine, 50

Coppola, Craig, 24

Martin-Denning, Terry, 24

Price, Kris, 20

Trujillo, Robert, 18

D’Andrea, Michael, 18

May, Bruce B., 38

Ramachandran, Parbhu, 17

Vitkovich, Karen, 49

Darby, Ruth, 24

McAllister, Clarence, 10

Reeves, Martin, 35

Waddell, Oye, 10

11Eleven Consulting, 40

Colliers International, 17

iPromo, 44

SmartGurlz, 14

ABI Multifamily, 18

CORE Institute, The, 34

Jennings, Strouss & Salmon, PLC, 38

Snell & Wilmer, 3

ACA, 2, 60

Cox Communications, 12

Jive, 8

AdviNOW Medical, 34

Cryoshift, 20

JLL, 19, 24

Southwest Behavioral & Health Services, 12

Alerus, 7

Culdesac, 17

Keyser LLC, 24

All About People, 40

DDI, 16

Kiterocket, 59

Alliance of Arizona Nonprofits, 47

Divvy, 6

LAM Holdings, 57

Alterations & Creations, 57

Equality Health, 5

Lee & Associates, 24

American Heart Association, 51

Expect More Arizona, 50

Marcus & Millichap, 24

Arizona Commerce Authority, 2

Facilio Inc., 17

ARIZONA@WORK, 60

First Bank, 8

Maricopa County Community College District, 22

AvAir, 12

Fortis, 10

BMO Harris Bank, 43

FSW Funding, 5

BMO Wealth Management, 36

Giggrabbers, 11

BMW, 44

GradeMyVideo, 11

BOK Financial, 45

Harvard Business School, 11

Bryant Commercial Real Estate, 9

Health Information Management Systems, 20

Business.org, 12 Cake, 23 Centers for Disease Control, 34, 53 Cigna, 37 Clutch, 16 Colliers International in Arizona, 24

JULY 2020

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StartupAZ Foundation, 14 Tenant Agency, The, 24 U-Haul, 12 UnitedHealthcare, 21 University of San Francisco, 11 Vista College Prep, 40 Waterfall Villa Residences, 17

Maricopa IT Institute, 22

Weber Group, 41

NAI Horizon Phoenix, 24

Women’s Economic Institute, Inc., The, 10

One Creative View, 39 OSHA, 53 Pederson Group, 18 Phoenix College, 22

Zello, 11

CHECK US OUT

Pita Jungle, 46

Healthcare Solutions Centers, 34

Porcher Industries, 22

Hibob, 42

Quarles & Brady LLP, 15

/InBusinessPHX

Hines, 18

Related Group, 18

@InBusinessPHX

Hustle PHX, 10

Republic Bank of Arizona, 49

Ignite THP, 13

SGS, 12

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

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A CANDID FORUM

Black- and Woman-Owned: Business in the Shadow of COVID-19 Creating opportunity by RaeAnne Marsh

Building their businesses here in Phoenix, these two black women business owners had little in common — until the COVID-19 pandemic wrought disruption indiscriminately throughout the economy and put us all in the same boat. Retail is commonly acknowledged to be the hardest-hit sector. As a concessionaire with gift stores in airport terminals, Lachele Mangum’s retail enterprise is tied to travel, which piles on additional challenge. “The way airports work now, they’re like malls. It’s a shopping experience,” Mangum says. “You’re not just traveling but spending a little more dwell time in the airport so you can have time to shop. And there’s some great shopping, great restaurants, great places to purchase wonderful gifts.” PreCOVID, she means. The owner of concession stands in terminals 3 and 4 — where, she says, more than 98 percent of locations are closed — and terminals 1 and 2 at San Diego, Mangum says, “It’s probably going to take us a couple of years to get back to 2019 numbers. It’s going to take some time for travelers to regain their confidence and start traveling again. Experts in the aviation industry are estimating it’s going to take a couple of years. Possibly even 2023. It’s going to be a slow climb back.” She points to the airport’s efforts in providing signage for people to wear their protective gear as one way to build up travelers’ confidence.

Rebuilding travelers’ confidence may be the biggest challenge, but it’s not the only one. Says Mangum, “It’s tough right now. There’s a challenge from supply chain because trucks aren’t supplying the way that they did pre-COVID, so getting supplies when you need them is definitely a challenge. From employee standpoint, the unemployment people are getting makes it difficult to get them to come back to work. I think that will change when unemployment is up. That will probably make it a little easier to get workers. I’ve tried to get people to come back to work, and many have said they’d rather wait until their unemployment is done.” Realizing it’s also important they feel safe coming to work, she has hand-sanitizer stations withing the stores, installed guards at the counter, supplied employees with face masks and hand sanitizer, and is providing time for them to wash their hands. And of course, debt service has to be paid whether the business is open or not. “So far, the bank is working with us,” Mangum says. “But how long can the bank work with us? We don’t know.” Getting a bank to work with her was part of the challenge launching her business. The Airport Concessionaires Disadvantaged Business Entity program, established in 1987 to level the playing field for minority- and woman-owned businesses to get into airport concessions, helped open the

TINA MARIE EAVES Owner and Operator Alterations and Creations 214 W. Roosevelt St., Phoenix (602) 277-9952

LACHELE MANGUM

"I've been established here for so long. I've been in business for 31 years. … This is a very inclusive area." —Tina Marie Eaves

Lachele Mangum was one of the first black women to own a concession at Phoenix Sky Harbor Airport.

President and CEO LAM Holdings 4960 S. Gilbert Rd., Chandler linkedin.com/in/lachelemangum-mba-0984386b

JULY 57 2020 INBUSINESSPHX.COM

A CANDID FORUM opportunity for her but winning the bid gave her no edge for funding. One of the hurdles: “Banks want to know what your collateral is. At the airport, you don’t own that property; the city does.” Lack of collateral and experience weighted heavier than her MBA and several years in business as general manager of a consulting company, and the major bank with which she had been a customer for more than 20 years turned down her loan application. “And that’s sad,” she observes. But she found a smaller bank and credits its help of mentors and supporting special programs designed for concessions. “Establishing a new business can be difficult for anybody; but being a black woman creates some additional challenges as well,” says Mangum, who was one of the first black women to own a concession at Phoenix Sky Harbor Airport. There are many black-owned and Hispanic-owned businesses at Phoenix Sky Harbor Airport, Mangum says, but it’s not something that is generally known. “It’s different from a street-side business, where you’re standing there all the time and people kind of figure that out, that you own the business.” Sharing that she feels it’s important for people to know there are black-owned businesses at the airport, she says, “But we don’t publicize it.” For Alterations and Creations owner Tina Marie Eaves, retail was part of her solution when COVID-19 disrupted her drycleaning business. “The pandemic affected us because not many people are getting their dry cleaning done every day,” Eaves says. So, she cut her business’s hours of operation and scaled back on pickup and delivery from daily to Monday-Wednesday-Friday. And she started printing bags and T-shirts for individuals and organizations, with a direct-to-garment printer. “We stepped up on that to augment the business and keep our doors open.” She is also manufacturing masks for sale, taking orders and mailing them out all over the country from her location on Roosevelt Row. “And we’ve donated lots of masks, in particular to the Navajo Nation and the military.” Her clientele help boost those donations. “We’re a very tight-knit community,” she says. “As they come in to get masks, they donate also.” With the Black Lives Matter movement prominently in the headlines currently, In Business Magazine asked Eaves if being black and female had erected their own challenges to her business. “I don’t have any additional challenges, if you really want to know the truth,” she shares. “I’ve been established here for so long. I’ve been in business for 31 years.” And she notes, “This is a very inclusive area.

JULY 2020

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Tina Marie Eaves opened one of the first businesses on Roosevelt Row in 2001.

“There are many black-owned and Hispanicowned businesses at Phoenix Sky Harbor Airport, but it’s not something that is generally known.” —Lachele Mangum

“Every now and then we’ll get somebody who gets a little snippy. I just put them out; I tell them ‘I don’t need your money.’” Although she says, “I’ve been very fortunate all this time,” she notes, “This isn’t luck — I worked at it.” That includes going to college for business courses. A Phoenix transplant, Eaves is originally from Minnesota. “When I came here, I was coming through here,” she relates, “and I was at the airport. I was looking at the kind of cars they drove, looking at the kind of lifestyle they had, looking at the people, and I looked at how many people had alterations/ dressmaking [businesses]. Now mind you, I have a reputation. I worked for Prince in Minnesota, so I came with a reputation. And I used it to my advantage.” Eaves is completely self-funded. “I’ve paid my way all this time. Never taken a loan from anyone,” she says. Using money she had saved from previous employment, Eaves opened her business in 1989, starting with contract work doing the alterations for all the JC Penney stores in the Valley. “JC Penney was the No. 1 men’s suit seller in the world at that time. So I knew I needed to have a nice location — nice dressing room, nice ambience, professional looking — so that I could not just do the men’s suits at JC Penney, but if the men had to come to me personally I would get them as my personal clients also. At that time,” she recalls, “there was no other business down here. Just me. And the homeless.” Eaves was one of the first businesses to open on Roosevelt Row, where she moved from her first address in 2001, coincidentally within days of the opening of the area’s iconic Mon Orchid, which mirrored on the east side of Central Avenue her own address to the west. “I’ve been established long enough to have a core clientele and I’m very grateful to them. I’ve always been able to maintain a level of quality that they’re looking for. That’s what people in this area are looking for. These are all professionals down here. … Professors, doctors, lawyers, police officers, other business owners. I’m very fortunate to be in this location.”

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July 2020 issue of In Business Magazine

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Armored Leadership vs Daring Leadership

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