AUG. 2016
Special Section: Business Owners’ Legal Services Guide
Our
Humor
a Better Workplace
Can Data Breach Be an Inside Job?
Food Scene Making ‘Authentic’ the New Norm
Personnel Files —
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THIS ISSUE National Association of Women Business Owners – Phoenix
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AUGUST 2016
COVER STORY
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Many of the Valley’s great restaurant concept business owners give insights on the local trends as they pertain to development of new and unique concepts.
Pomelo at The Orchard
FEATURE
32 ON THE COVER
No Joke: Humor Is Vital to Workplace Culture
Nathan Gilroy discusses how humor, used well, is a communication tool par excellence. DEPARTMENTS
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Guest Editor
Sam Fox, founder and CEO of Fox Restaurant Concepts, introduces the “Restaurants” issue. Postino’s in Gilbert
PARTNER SECTIONS Celebrating 30 years of serving the women business owners of Phoenix
12
Feedback
Sarah Groen, Frank Lara and David Long respond to In Business Magazine’s burning business question of the month.
Summer 2016 • nawbophx.org
Message from the President
When I first visited NAWBO Phoenix back in 2004, I knew I had found my tribe. It was my district manager who had handed me a newspaper clipping a few weeks earlier and thought I might be interested in the group. I didn’t hesitate to become involved and started volunteering on a committee, and, finally, the board! I am so grateful to have the women of NAWBO in my life — they are my friends, my mentors and women who just get me. I found at NAWBO, you’re surrounded by women and men who understand the joys and struggles of being a business owner — they’re some of the most supportive people I could have met on this journey. Last year I saw that district manager at a function and have felt such gratitude for my experience in this organization, I just had to ask him, “Do you even know what a gift it was that you gave me five years ago? Thank you. Just thank you.” The National Association of Women Business Owners (NAWBO) has a mission that propels women entrepreneurs into economic, social and political spheres of power worldwide by working to: STRENGTHEN the wealth-creating capacity of our members and promote economic development; CREATE innovative and effective changes in the business culture; BUILD strategic alliances, coalitions, and affiliations; and TRANSFORM public policy and influence opinion makers.
#NAWBOFirst
Last year we based our entire focus on the mission above, as we will continue to do this year but with the addition of our 2016/17 theme: “#NAWBOFirst.” This theme has several meanings, but mostly it’s that we put our membership first. This is a member-led organization; we are here to serve them. NAWBO is so much more than just a place for networking; it’s THE place for women business owners to reach their highest potential through fostering individual and professional growth and providing the education that is not available anywhere else, public policy awareness, and business growth opportunities in an environment that is truly uplifting and supportive. Another #NAWBOFirst is when we started back in 1975 in Washington DC. Twelve brave women set out to challenge the business landscape and fight for gender equality in business ownership. We were one of the first women’s business groups to formally organize, and today we’re the unified voice for the 10 million women business owners across the nation, with more than 5,000 members and 60 chapters. Our national organization is stronger than it’s been since our strongest advocacy days at the beginning of this great movement and we are fortunate to have the power and strength of our large organization with us on this journey. Lastly, we are #NAWBOFirst because we should be supporting each other as women in business, and supporting the male-owned businesses that support us. We have a member presence to pull from throughout Arizona and also access to the national website — think #NAWBOFirst whenever you need a service or product in your personal or business lives! I am honored to serve as the president of NAWBO Phoenix this year, and I ask that you join me on this journey making #NAWBOFirst a priority this year for Arizona Women Business Owners. If you are interested in membership or becoming a corporate partner, please reach out to me or any one of our directors.
Phaedra Earhart 2016-2017 President NAWBO Phoenix Chapter Farmers Insurance 1425 S. Higley Road, Suite 107 Gilbert, AZ 85296 480-289-5768 phaedra.earhart@gmail.com Years in Business: 6 Joined NAWBO: 2011
ABOUT NAWBO
—Phaedra Earhart, 2016 – 2017 President NAWBO Phoenix
NAWBO® prides itself on being a global beacon for influence, ingenuity and action and is uniquely positioned to provide incisive commentary on issues of importance to women business owners. NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power.
We host networking and education events throughout the valley each month, open to both members and guests. Check out our calendar at NAWBOphx.org and join us! Take advantage of this great networking opportunity by bringing business cards and making connections.
For more information, please visit NAWBOphx.org.
Phoenix Metropolitan Chapter of the National Association of Women Business Owners 7949 E Acoma Dr., #207, Scottsdale, Arizona 85260 480-289-5768 • info@NAWBOphx.org
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nawbophx.org
NAWBO NEWS
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National Association of Women Business Owners – Phoenix
SPECIAL SECTION A BUSINESS OWNER’S RESOURCE TO LEGAL SERVICES
LEGAL GUIDE 2016
A comprehensive guide to local firms & their areas of specialty for business
14
Briefs
“Bolster Business with Bolste,” “Granted, So Awarding,” “Savings for Small Business,” “A New Dimension,” “GCU Launches Business Resource for Students and Community,” “Ak-Chin Casino Expands,” “Luxury Multifamily in Glendale,” “Kickstarter for Expansion” and “Making Referrals Matter”
18
By the Numbers
Middle market companies nationwide are fueling economic growth — but how does that look for Arizona?
20
Technology
“A Shorter ‘Last Mile’ in Distribution,” “STEM under the Hood” and “Phoenix Sited as Second Global Headquarters”
FEATURING
Buchalter Nemer
Our Food Scene: Making ‘Authentic’ the New Norm
24
Healthcare
“Valley Hospitals in the Forefront of Breakthrough Treatments,” “PCHF Engages Business against Childhood Cancer” and “Healthcare Partnership Takes Aim at Cost”
33
Books
New releases give fresh insights on business thinking.
34
Nonprofit
Understanding the varied ways in which today’s individual donors give can benefit both nonprofits and their donors.
38
Assets
2016 Cadillac CT6 PLUS: Sunglasses aren’t just eye protection; the right style can say, “I am in charge.”
40
Power Lunch
Tommy V’s PLUS: Hit the streets for lunch and find many options in the “downtowns” of the Valley.
66
Roundtable
The human story behind the world’s biggest data breach should be a cautionary example to management that employee disengagement can be a powerful negative force. ON THE AGENDA
Engelman Berger Fennemore Craig The Frutkin Law Firm Greenberg Traurig Wilenchik & Bartness
See more online inbusinessmag.com/legalguide
49
2016 Legal Guide A business owner’s resource to legal services
22
Legal
Attorneys discuss the complexities of collecting and storing private employee information against considerations of authorized vs. unauthorized access.
35
Spotlight
‘Hacking the Human’ Webinar Series — itSynergy Marketing Technology Summit — Arizona Technology Council
36
Calendar
Business events throughout the Valley
AUG. 20 1 6
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INBUSINESSMAG.COM
There are more than 217,000 food services and drinking places in Arizona, with about 152,900 of them in the Phoenix-Mesa-Scottsdale Metropolitan Statistical Area, as of the June 2016 report by the Arizona Office of Administration — an increase over June 2015 of 3 percent and 2.6 percent, respectively. doa.az.gov
“Without the support of“Without Liquid Capital, we may very well have the support closed ourCapital, doors. we Now ourvery outlook is better than ever.” of Liquid may well have Kevin M. Berry, President The Inc. closed our doors. Now our outlook is Berry betterBest, than ever.” Kevin M. Berry, President - The Berry Best, Inc.
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August 2016
Read conference calls in real time.
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 Rick Murray, CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org
Now, Deaf and hard of hearing participants can be actively involved in multi-party calls. Relay Conference Captioning (RCC) is free to Arizonans, streaming live text to any Internet-connected computer, tablet or mobile device worldwide.
Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org
LEARN MORE ABOUT RELAY CONFERENCE CAPTIONING AT ARIZONARCC.COM
Phaedra Earhart, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org
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Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.
ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com Arizona Hispanic Chamber of Commerce azhcc.com The Black Chamber of Arizona phoenixblackchamber.com Chandler Chamber of Commerce chandlerchamber.com Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce gpglcc.org
For more information about Fennemore Craig, visit FennemoreCraig.com or contact Joe Chandler, Real Estate Practice Group Chair, at 602.916.5403 or jchandler@fclaw.com.
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
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VOL. 7, NO. 8
Publisher Rick McCartney
Editor RaeAnne Marsh
Art Director Benjamin Little
Contributing Writers Nathan Gilroy
Mike Hunter Mike Saucier Richard Tollefson Luke Treglown ADVERTISING
Operations Louise Ferrari
Business Development Louise Ferrari
Ray Inclan Maria Mabek Sara June Kelly Richards Cami Shore Events Amy Corben
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Accounting Manager Todd Juhl Corporate Offices 4455 E. Camelback Road Building C, Suite 135 Phoenix, AZ 85018 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com Vol. 7, No. 7. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You June send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/ or financial professional. © 2016 InMedia Company, LLC. All rights reserved. No part of this magazine June be reproduced or transmitted in any form or by any means without written permission by the publisher.
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SAM FOX, FOX RESTAURANT CONCEPTS
Conceptualize This
Sam Fox is the creative and entrepreneurial visionary behind Fox Restaurant Concepts. Driven by an undying love for food and a sharp eye for design, he has grown one restaurant into an empire that now spans eight states and counting. Fox is a third-generation restaurateur, and the hospitality business runs in his blood. He first ventured into the industry in 1993 when he opened Gilligan’s Bar & Grill in Tucson. He sold that restaurant in 1998 and opened the doors to Wildflower American Cuisine, which soon became the catalyst to his current restaurant empire. He moved to Phoenix in 2001 to expand his business, and has since grown the group to include 15 innovative concepts with nearly 50 locations across the United States.
We locals know the Valley has been a dining destination for some time. Now, the rest of the country is taking note. We’re finally being recognized as a city that’s driving dining trends by way of some incredible culinary talent. Truth is, we’re tired of not being seen as the food-centric market we’ve become. Phoenix has earned its seat at the table and I’m more excited than ever about the innovation and creativity emerging from Arizona. The talent here is impressive and, while the list of veteran restaurateurs in the Valley is long, so too is the list of fresh, homegrown talent. The Valley’s restaurant growth is proof that locals and visitors alike are seeking experiential dining in Arizona. Guests are exploring new neighborhoods and tapping into the local food scene. Today, there’s a great range of successful restaurateurs in Arizona. Whether it’s a James Beard Award-winning restaurant, a cool local dive bar, or a place that serves family favorites in a creative atmosphere, there’s quality in the kitchen, hospitality on the floor, creativity in design, and a million reasons out there to love our growing restaurant scene. Arizona is a dining scene, and we are only going to get better. This month, In Business Magazine editor RaeAnne Marsh has spoken to many of the great restaurant concept business owners in the Valley and asked them about their successes and the local trends as it pertains to development of new and unique concepts. The business behind dining these days has evolved to a creative and innovative industry of which I am happy to be a part here in the Valley and throughout the United States. In this issue’s By the Numbers article, Mike Hunter analyzes how middle market businesses, which make up only 1 percent of all business, are leading the way for job growth. The findings are incredible and are fueling economic growth to the extent other small and large businesses are taking note. Nonprofits are looking at giving in a whole new light, as Richard Tollefson indicates in his article on the different ways individuals give and how the systems behind nonprofits benefit from working more closely with these donors’ interests. Organizations are seeing that the simple “checkbook” payment is not enough to engage donors. Annually, In Business Magazine produces a comprehensive legal guide with business owners in mind. This year’s guide includes many top firms, their practice areas and an interactive online guide that can help businesses of all sizes find the best fit for legal expertise. Many strong local firms are profiled this year and have provided some useful information about choosing a firm to work with. I am pleased to have been asked to lead this issue of In Business Magazine, as my industry is showcased in many ways this month. I hope the information provided further helps to enrich business here in the Valley. Sincerely,
Sam Fox Founder and CEO Fox Restaurant Concepts
Our Food Scene Phoenix has been known for golf, tourism and sunshine. Now,
I am very thankful to my friend Sam Fox for leading this
the rest of the country realizes we have a culinary culture that is
issue. His innovation and conceptual success has led the
not only bringing great concepts from around the country here,
market and put him (and Phoenix) on the map internationally.
it is, more importantly, a virtual feeding ground for developing,
As his concepts expand to other cities, so has his success
implement and succeeding in the restaurant concept world. It has
allowed others in our own market to flourish, as this month’s
become big business for us — and, as residents, it has become a
cover story attests. —Rick McCartney, Publisher
new wave of culture and culinary delight.
Let us know what you think of this issue of In Business Magazine. Email our publisher at feedback@inbusinessmag.com.
CONNECT WITH US: Story Ideas/PR: editor@ inbusinessmag.com Business Events/ Connections: businessevents@ inbusinessmag.com Marketing/Exposure: advertise@ inbusinessmag.com Visit us online at www.inbusinessmag.com
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VALLEY LEADERS SOUND OFF
Q:
FEEDBACK QUESTION: Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessmag.com
For all past Feedbacks go online to inbusinessmag.com and see what Valley executives think on various business topics.
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“To go” has been a growing part of the restaurant industry. The delivery side of that has largely been focused on pizza, but there seems to be increasing interest in expanding this aspect of the food service industry. What is your take on this trend, and how are you responding to it?
SARAH GROEN
FRANK LARA
DAVID LONG
General Manager Uber Sector: Transportation
VP of Operations Chompie’s Sector: Restaurant
With the advent of smartphone apps, we know that consumers are increasingly inclined to use their mobile device for on-demand services. Food delivery is no exception. Knowing this, our team at Uber sought a way to use our ridesharing technology to provide access to food from favorite local restaurants, at the push of a button. Months later, UberEATS was served! Fundamentally, UberEATS utilizes technology to expand the “to go” aspect of the food service industry, creating a new way for people to get the food they love, using their smartphone app. It also opens up new economic opportunities for drivers who hope to make some extra money. And most importantly, as consumers yearn for more convenience than ever, UberEATS allows restaurants to take part in the rapidly growing on-demand economy by connecting them to more customers.
Chompie’s looks at all possible revenue streams, including delivery. Food quality and speed were some of our big concerns, as well as managing the operations. We decided it was much easier to outsource delivery than to have another department manage it. We wouldn’t have to worry about drivers, vehicles and the problems associated with that. We researched and found that the DoorDash service had a strong, logistical way of ensuring hot food and quick service. Its limited range of service around each of our restaurants means food won’t sit for 20–25 minutes, as it had with previous delivery companies. We found that has worked very well for customer service and guest satisfaction. Finding a good delivery program has been a good venture for Chompie’s. We are actually reaching people we know we would not normally get any business from. We’ve seen delivery revenues increase 200 percent in the last six months. The program is still in its infancy, but we don’t see the demand for delivery slowing down anytime in the near future.
Co-Owner and VP of Business Development Blue Mountain Restaurant Services Sector: Restaurant
UberEATS ubereats.com/phoenix Sarah Groen is passionate about building and growing innovative companies that expand economic opportunity. She is currently a general manager at Uber in charge of UberEATS in Phoenix and Houston. Groen previously served as a vice president at a technology-focused oil service company and as co-founder and director of SURGE, a startup accelerator. She holds an MBA from Stanford Graduate School of Business and a BBA in finance from University of Texas Austin.
Chompie’s chompies.com Frank Lara has worked with Chompie’s since 1982, learning the industry from the trenches as a dishwasher and into his role as Vice President of Operations. He is an Arizona native who has seen Phoenix and its restaurant industry expand exponentially in his nearly 35 years in the business.
We launched our delivery service in May as a direct result of feedback we received from our Corner Bakery Café customers in Tempe. Many of our customers are the professionals who work in the downtown office complexes, and it is either too hot or they are too busy to leave for breakfast or lunch. We investigated a number of thirdparty delivery services but, ultimately, we decided to handle the program ourselves. We wanted to ensure that once food left our restaurant it would promptly make it to our customers with the same high quality we offer in the café. We spent several months testing various processes, packaging and delivery methods, and ended up getting a golf cart because it can quickly get to most of the places our customers work. We are now making dozens of deliveries each week and demand continues to grow. A small portion of that business has cannibalized counter traffic, but it has been incremental. Corner Bakery Café cornerbakerycafe.com David Long joined Blue Mountain Restaurant Services in 2012 and is responsible for both marketing and business development. Prior to joining the company, he was a retained executive search consultant focused on recruiting corporate officers and board members for a variety of global clients in both the hightech and consumer brand sectors. Long earned a bachelor’s degree in economics from Brigham Young University and an M.B.A. from the S.C. Johnson Graduate School of Management at Cornell University. He resides in Phoenix.
Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessmag.com. Look for survey questions and other research on our business community.
Come home to local banking.
It’s been 10 years. And we’ve made local banking something worth coming home to. This anniversary isn’t about us, it’s about you: Arizonans who wanted a better banking experience. After all, you’re not just clients. You’re our neighbors, our friends and the businesses that power our local economy. And with the accolades we’ve received—#1 Community Bank, Top 200 Healthiest Bank, 5-Star Superior Rating—it’s clear we’ve earned your trust with our easier, more personalized, local banking service. Here’s to 10 years as your hometown bank. Bank local. Bank Pinnacle.
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QUICK AND TO THE POINT
BYTES
BY MIKE HUNTER
Bolster Business with Bolste Bolste™ recently launched a new business operating system (BOS) that brings numerous tools together into one system. It was designed to simplify communication, collaboration and productivity in contrast to apps that are complicated, fragmented and too difficult to learn for business to gain dramatic efficiency benefits. It is available in a free version, or users can upgrade to the Bolste Pro package for $9.99/month for unlimited project channels, unlimited guest users, 7GB of secure storage and user interface branding. Bolste also offers an Enterprise package that features unlimited channels, unlimited secure storage, third-party integrations, onboarding and training. Pricing for the Enterprise package is customized. bolste.com
Granted, So Awarding Award Alley is a Web-based software created by Arizonabased media88, Inc. to help organizations improve the grant or award applications process, save time and cost, and enhance brand image for professionals or organizations. It provides an integrated suite of userfriendly widgets for award or grant providers to easily manage their award or grant application process in four easy steps — administration, application, judging and reporting. awardalley.com
Savings for Small Business SRP is the oldest multipurpose federal reclamation project in the United States. It has been serving central Arizona since 1903, nearly 10 years before Arizona became the 48th state. As part of its commitment to our community, SRP has a website dedicated to helping businesses save on energy costs. It offers information on rebates and energy savings, and provides energy tools and information that will demonstrate how to get
GCU Launches Business Resource for Students and Community
Grand Canyon University will open its Small Business Consulting Center this fall as a free resource for students, alumni and community businesses. It differentiates itself from other business consulting centers — incubators and accelerators — by using the resources of GCU’s faculty and students as well as Grand Canyon University’s Eduardo Borquez speaks with MBA student drawing on the expertise of Phoenix’s Natalia Diaz (left) and undergraduate business students Gianni De Bruyn entrepreneurial ecosystem with guest and Linette Fonsea at the Colangelo College of Business speakers from organizations that include SEED Spot, Local First Arizona and the Glendale different tracks — undergraduate students, Chamber of Commerce, explains Eduardo graduate students and alumni, and community. Borquez, the center’s manager. And through his active involvement in the Although part of GCU’s Colangelo College of community, he says, “I will get to know these Business, the center seeks to serve all students local business owners and their needs, so I who have an entrepreneurial spirit — not just can better partner students with them to help those with a business major. It could help a with real-world application” of the business student in the Nursing Practitioner program, topic. “It’s a win-win-win for the students, the for instance, learn the business side so as to be business community and the college.” able to open an independent business, Borquez “We wanted to make a difference for the West explains. And it specifically welcomes local Valley, and get students and faculty involved — businesses, says Borquez, who developed the and, while helping businesses, help students program in Spanish as well as English. Those with a real-world application,” says Randy Gibb, who complete the program receive a Certificate Ph.D., dean of the Colangelo College of Business, of Achievement that “helps their resume and observing the center will fulfill the need to help helps them get funding” so they can go back students follow through on entrepreneurial to their business and “hire local and make an ideas. Actively involved with the Arizona chapter economic change.” Borquez relates that, of of Conscious Capitalism, he developed the center the local businesses that participated in the with the ideals of conscious capitalism and recently completed beta test of the curriculum, “servant leadership” — encouraging participants 80 percent had never been on a college campus. to see that the leadership of an organization “It was rewarding for us to give them the formal needs to take care of all stakeholders, including training to start their training or grow their employees, and have a higher purpose as well as business,” he says. a profit goal. —RaeAnne Marsh Program content focuses on the “business gcu.edu/colangelo-college-of-business/ model canvas,” Borquez says, but notes it business-resources.php will be tailored to the need of each of the
started. srpnet.com/menu/savingsbiz
VISUALIZE
A New Dimension Attracting customers’ attention is a tall order these days with so many formats in which production and marketing company, uses its expertise in attracting customers and retaining their interest to bring its client’s business to the forefront. With “explainer” videos and custom animation, the team understands that differentiating each business’s story from others is key. d5prod.com
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Conscious Capitalism is based on four principles: Higher purpose, stakeholder orientation, conscious leadership and conscious culture.
Photo courtesy of Grand Canyon University
to attempt to engage them. Video marketing can be captivating, and Dimension 5, a video
WE PUT SOME OF THE VALLEY’S TOP BUSINESS EXPERTS IN ONE PLACE. Business Resource Center. You need timely, relevant information to help you manage your business. But finding it can be a hassle. That’s why SRP has partnered with local business organizations to bring you professional insights on everything from marketing and human resources to financing and forecasting. All in one place. All from experts in their fields. SRP is happy to provide this free service, because what’s good for business is good for all of us. Learn more at srpbizresource.com.
QUICK AND TO THE POINT BY MIKE HUNTER
Ak-Chin Casino Expands The Ak-Chin Indian Community has broken ground on a multi-million-dollar expansion of Harrah’s Ak-Chin Casino that will include a spa, a conference center with multi-use ballroom space, a parking garage, additional restaurants and more than 200 additional rooms. According to Robert Livingston, general manager of Harrah’s Ak-Chin Casino, this expansion will not only increase room availability and accommodate additional hotel guests, but also enable the property to host largescale entertainment, conventions and other meetings. The general contractor for the project is Sundt|Yates; Thalden Boyd Emery is the architect. ak-chin.nsn.us
Kickstarter for Expansion Solar Pool Technologies turned to Kickstarter not to launch a new business but, based on interest expressed by existing customers, to launch a new version of its solar-powered, robotic swimming pool cleaner and chemical dispenser Solar-Breeze. “It’s really hard for early-stage companies to secure capital to grow their business,” observes CEO Paul Sim. So last July, with a new product on the boards — encouraged by existing customers and incorporating design feedback from them — the company launched its Kickstarter campaign. “Within 24 hours, we had pre-sold about 200 units — between $120,000 and $150,000.” This was enough capital to finish engineering the design and to pay suppliers to get the product into production, Sim relates. Improvements are internal, focused on performance and durability. According to Sim, 30–40 percent of the new orders are from the company’s existing customer base, but the company also expanded its customer base as a result of the Kickstarter campaign. “We’ve built 2,400 units this season — all of them were pre-sold, so we were able to recycle the funds and put another 1,200 units in production.”
The Tempe-based company sources many of its electronic components from overseas, and currently assembles overseas. But Sim says the company plans to evaluate “what makes sense regarding manufacturing in the future.” He notes that, because the product is so seasonal, “shipping time associated with building overseas presents a challenge.” Customers are not just in the U.S. “sun belt” but are in 44 states plus 18 countries. “I didn’t know there were so many pools in Norway,” Sims shares, also naming other countries that span the globe from France to Australia and Canada to Singapore. Sim believes there will be demand next year for 8,000-10,000 units, which will again require ongoing working capital. “So we’re considering doing another crowdfunding campaign — focused on an equity raise.” Solar Pool Technologies, Inc. solar-breeze.com
Making Referrals Matter Luxury Multifamily in Glendale P.B. Bell has opened Velaire at Aspera, a nearly 13-acre luxury apartment community within the long-awaited Aspera mixed-use development in Glendale. Velaire at Aspera, the third new community P.B. Bell has opened since late September, offers one-, two- and three-bedroom luxury apartment homes in a resortlike setting, with amenities that include a theater, dog agility park and dog salon, and a 2,000-square-foot fitness facility, in addition to a luxury pool and outdoor entertainment pavilion, and nearby recreational and sports opportunities. The 286 apartments come in floor plans that range in size from 726 square feet to 1,281
The name proved to be key to Bill and Eric Skoog expanding their roofing business. The company they’d built on new construction and custom homes suffered in the housing market downturn in 2007, and they felt residential and commercial reroofing would be a more stable market, Eric Skoog explains. Sunvek had the name, and the Skoogs bought it out of bankruptcy in 2008. Their assessment was that the bankruptcy was the result of that company getting into residential remodeling, but that “in reroofing, it had no problem,” according to Skoog. “It was an opportunity for us to move into a new market with a company that has a good reputation and a well-known name — and a customer base,” he says. “The
square feet, all with modern features and both cool and warm aesthetic options. The company’s burst of development activity reflects a multifamily housing market that is striving to keep pace with the needs of two influential groups of consumers — baby boomers and millennials — according to P.B. Bell CEO R. Chapin Bell. pbbell.com
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Moneyrates’ analysis of eight economic factors and amenities to determine which states are the best (and worst) for millennials placed Arizona tied with Virginia for second-worst. money-rates.com/research-center/best-states-for-young-adults
day we turned on the phones, we got a call for a commercial project in Downtown Phoenix, and that project paid for our investment.” However, they worked for two years to rebuild Sunvek’s name recognition, then officially changed their company name from Skytop to Sunvek in 2010. The roofing work itself didn’t change, but there was a learning curve associated with the new market. Skoog relates that, since they had previously worked on new homes, they had to learn to be more conscientious about not disturbing the occupants during a reroofing project. Another big difference between the new home and reroofing markets has been referrals. Says Skoog, “We noticed in new construction it’s not so easy to get referrals; one contractor is not going to refer you to another contractor.” With building owners and homeowners, “referrals are very nice,” Skoog says, noting the business has doubled in the past four years. Sunvek Roofing sunvekroofing.com
Photos courtesy of Ak-Chin Indian Community and P.B. Bell (left, top to bottom) and Solar Pool Technologies and Sunvek (right, top to bottom)
GET REAL
BY RAEANNE MARSH
GROWING YOUR BUSINESS? We’re here for you.
When you’re looking for a commercial real estate loan, choose a local lender with a personalized approach. • No application fees or prepayment penalties 1 • Purchase or refinance up to $5,000,000 2 • Owner or non-owner-occupied 3 • Competitive fixed rates • Terms of 5, 10 or 15 years • Amortizations of 15 or 20 years
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Open to sole proprietorships, partnerships (including LLPs), LLCs, corporations, trusts and non-profit entities that have been in existence for three years. Start-up and business acquisition transactions are ineligible. Property must be located in Arizona. First or second lien position. Subject to credit approval. 1 Approximate 1% origination fee. 2 Minimum loan amount $250,000; maximum 80% loan-to-value. 3 Owner-occupied applies if the business member or affiliate occupies not less than 51% of the usable, net rentable space; non-owner-occupied applies if the tenant occupies 51% or greater of the usable, net rentable space.
Municipal Bonds — A Core Holding for Income Investors Morgan Stanley has a dedicated team of municipal bond specialists, strategists, researchers and credit analysts who can help your Financial Advisor develop customized strategies tailored to your financial goals. Our services and products include: Michael Vantusko Financial Advisor 14850 N Scottsdale Road, 6th Floor Scottsdale, AZ 85254 480-368-6588 michael.vantusko@morganstanley.com morganstanleyfa.com/michael.vantusko
• Complimentary municipal bond portfolio review1 • Actionable buy and sell ideas • Access to Morgan Stanley’s wealth management and institutional municipal bond trading desks • Investment strategy and research publications Contact your Morgan Stanley Financial Advisor to learn more about how Morgan Stanley can help develop an investment program that is centered on you.
Reviews are subject to portfolio size minimums. Interest on municipal bonds is generally exempt from federal income tax. However, some bonds may be subject to the Alternative Minimum Tax (AMT). Typically, state tax-exemption applies if securities are issued within one’s state of residence and if applicable, local tax-exemption typically applies if securities are issued within one’s city of residence. The tax-exempt status of municipal securities may be changed by legislative process, which could affect their value and marketability. The value of fixed income investments will fluctuate and, upon a sale, may be worth more or less than their original cost or maturity value.
1
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FIX015 CRC 797054 01/14 CS 7884973 07/14
METRICS & MEASUREMENTS
Growing from the Middle Middle market companies are fueling economic growth by Mike Hunter
Despite comprising only 1 percent of the total number of commercially active firms in the country, middle market companies have led national job growth over the past five years, employing nearly 53 million workers — more than double the number employed by this segment in 2011. Middle market firms are also contributing $9.3 trillion to the U.S. economy, according to the “Middle Market Power Index” from American Express and Dun & Bradstreet. Using Dun & Bradstreet’s proprietary database of commercially active U.S. firms, the latest report in the Middle Market Power Index series analyzes the characteristics and economic impact of middle market enterprises — defined as businesses generating between $10 million and $1 billion in revenues — focusing on growth trends over the past five years. According to the report, while the total number of all commercially active firms declined between 2011 and 2016, the number of middle market firms nearly doubled, with an increase of nearly 87 percent. Middle market firms generate just over one in four dollars (26%) of U.S. business revenues and employ more than one in four workers (27%) in the private sector. Since 2011, middle market companies have outpaced both smaller businesses (less than $10 million in revenues) and the largest companies (more than $1 billion in revenues) in both employment and revenue growth. “Over the last five years, middle market companies have led the way in economic growth,” says Brendan Walsh, executive vice president for the U.S. with American Express Global Commercial Payments. “This report highlights the often overlooked economic might of these companies, which contribute over $9.3 trillion to the U.S. economy and are growing faster than any other sector.” “Middle market firms continue to have an outsized influence on the U.S. economy,” says Jeff Stibel, vice chairman of Dun & Bradstreet. “These firms have led the charge hiring Americans and now employ nearly 53 million people. The middle market plays a pivotal role in our rapidly changing economy.” Sadly, Arizona ranks among the seven states in which middle market companies are under-represented compared to the national average, according to the report. In the years While there’s been an 87-percent increase in the number of middle market firms nationally over the past five years, four states saw the number of middle market enterprises more than double during that timeframe: Ohio (+106%)
Arizona vs. the Nation Number of Firms Small (<$10M) Arizona Total U.S.
Indiana (+102%)
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Large ($1B+)
Total
414,352
2,717
48
417,117
18,910,859
182,578
3,025
19,096,462
Share of Firms
Texas (+106%) Michigan (+103%)
Middle Market ($10M–$999M)
Small (<$10M)
Middle Market ($10M–$999M)
Large ($1B+)
2011–2016, while the number of middle market companies increased nationally by 86.8 percent, the increase in Arizona was 80.1 percent. Middle market firms span all industries, but are more likely to be found in the manufacturing sector (18% vs. 3% overall), followed closely by wholesale trade (17% vs. 4% overall). Twelve percent of middle market firms are found in retail trade, compared to 11 percent of all commercially active businesses in the country. Within the services sector, both educational services and health services are home to 6 percent of middle market firms, respectively. Altogether, nearly 60 percent of middle market firms are found in these five industries. Among the 18.9 million firms with less than $10 million in annual revenue, there are roughly one million that generate revenues between $1 million and $9.9 million, signifying the greatest potential to approach the middle market. These firms make up 5% of the population of commercially active small businesses, generate $2.8 million in revenues and employ 28 workers on average. These small businesses that have reached $1 million or more in revenue are more likely to be women- or minority-owned (10% and 6%, respectively) and also more likely retail trade or construction businesses than any other business size group — two segments (women- and minorityowned, and construction) that are gaining strength or are historically strong in Arizona. Middle Market Power Index bitly.com/gcp-middle
Middle Market Concentration Greatest
State/Entity
Least Middle Market as Percentage of Companies
Puerto Rico
5.8%
Florida
0.5%
U.S. Virgin Islands
3.6%
Colorado
0.6%
Wash., D.C.
2.1%
Louisiana
0.6%
Illinois
1.5%
Montana
0.6%
Wisconsin
1.5%
Arizona
0.7%
Michigan
1.3%
New Mexico
0.7%
New Jersey
1.3%
Oregon
0.7%
Indiana
1.2%
Kansas
1.2%
Massachusetts
1.2%
North Dakota
1.2%
Arizona
99.3%
0.65%
0.01%
New York
1.2%
Total U.S.
99.1%
0.96%
0.02%
Ohio
1.2%
Roughly 6 percent of all commercially active firms are majority women-owned, compared with 7 percent of middle market firms that have majority women-ownership.
State/Entity
Middle Market as Percentage of Companies
This report is based on an analysis of all of the U.S. firms in Dun & Bradstreet’s commercial databases of more than 19 million (19,096,462) businesses between March 2011 and March 2016.
Looking at minority ownership across all commercially active firms, only 2 percent are minority-owned, compared with 5 percent among middle market firms.
INNOVATIONS FOR BUSINESS
TECH NOTES
BY MIKE HUNTER
A Shorter ‘Last Mile’ in Distribution Progistics Distribution, a leading “last mile” distribution and logistics company, has launched eDEMAND, a Web app that enables Progistics Distribution to tap into its network of over 700 professional drivers, connecting them via their mobile devices to enable communication between businesses, drivers and brokers. eDEMAND, powered by Progistics, provides an interface that “shortens” the last mile — optimizing the process of planning and routing of operations (such as time constraints, vehicle constraints, driver rules, and customer requirements). With eDEMAND, Progistics can provide superior same-day and on-demand deliveries to retail, ecommerce, small package and bulk shipment companies anywhere within a 200-mile radius of the major metro areas it serves.
STEM Under the Hood Cars today have upward of 200 computer modules, and, adding to the complexity of repairing these vehicles, the technology used varies with the different manufacturers. The hybrid technology of Tesla and Nissan, for instance, uses different operating systems, different processes and different energy management systems. Noting the need for trained individuals who understand how the car functions as well as how to do the repair, Mike Romano, president of Universal Technical Institute’s 248,000-squarefoot Avondale facility, says, “We’ve been dealing with STEM forever, and coupling it with problemsolving.” While advancements in technology have produced scanners that can zero in on a failed part, Romano points out it is also necessary to follow the functionality of the components. The need for trained technicians is very high. The U.S. Department of Labor predicts there will be 1.2 million jobs in automotive, diesel, collision, motorcycle and marine repair. “These are the primary areas we train for,” Romano shares, pointing out also the curriculum includes manufacturer-specific advanced training programs. More than 50 years old and headquartered in Scottsdale, UTI, he says, is “one of the biggest players in this sector,” with about 15,000 students in the process at any given time, but graduating 10,000 a year is “not coming close to the amount
needed within the industry.” Having a partnership with more than 30 manufacturers as well as aftermarket dealerships “gives us a good idea of what the needs are for technicians and the type of training.” And, as technology is ever-changing, training must continue to be ongoing. “Over the last 20 to 30 years, there has been a low emphasis on these types of careers as real opportunities,” Romano observes, noting not only the number of job openings but also the potential to grow up through the ranks. “Organizations want management to understand what it’s like to work on the ground level, to understand how products move through the distribution systems, and the value of technicians’ time.” —RaeAnne Marsh Universal Technical Institute uti.edu
“People don’t realize how challenging of last mile delivery should be when done right,” says Joel Ritch, CEO of Progistics Distribution. “That’s why we are seeing so many failing delivery startups. The tech venture capitalists and startup companies underestimated the resources needed in building a successful logistics-driven business from the ground up.” According to The Council of Supply Chain Management Professionals, as much as 28 percent of all transportation costs occur in the last mile. The eDEMAND solution helps reduce the expense and complexity of last mile deliveries — making the connection between professional drivers and those in need of sameday delivery services more efficient. Additional eDEMAND features include real-time order tracking, live customer support, digital signature capture and delivery verification. eDEMAND services are now available to businesses in Chicago, Dallas, Las Vegas, Los Angeles, Oakland, Phoenix, Portland, San Francisco and Seattle. progisticsdistribution.com
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Phoenix Sited as Second Global Headquarters Kudelski Group, a global leader in digital content distribution and security and in access control security solutions, has selected Phoenix for its second global headquarters. The Group will retain its corporate headquarters in Cheseaux-sur-Lausanne, Switzerland, which will also continue to serve as the company’s center of excellence for security technology research, development and innovation. The Phoenix facility will act as the headquarters for the Kudelski Group’s cybersecurity business, Kudelski Security, which is led by renowned technology CEO and Arizona resident, Rich A. Fennessy. This in addition to, as André Kudelski, chairman and CEO, says, “Opening a second Kudelski Group headquarters in Phoenix will provide the Group with better access to the world’s largest market and will enable us to serve more effectively our existing and future customer base in the Americas.” The Kudelski Group’s technologies are
used in a wide range of services and applications requiring access control and rights management. Its three main activity sectors include digital television, cyber security solutions and public access solutions. Greater Phoenix’s business-friendly environment, proximity to other technology hubs, developed infrastructure and access to highly skilled professionals were key factors that influenced the Group’s decision to locate its second global headquarters in the area. Says Kudelski. “Since its creation in 1951, the Kudelski Group has been a thought pioneer, and in the 21st century, Arizona is the place of choice for digital-age pioneers.” —Mike Hunter Kudelski Group nagra.com
Universal Technical Institute participates in the nationwide STEM Education Coalition and is committed to interweaving science, technology, engineering and math skills throughout its curriculum. And UTI has been designated a 2016 STEM Jobs Approved College by Victory Media, the leader in helping America’s military veterans transition to civilian life. stemedcoalition.org • uti.edu • victorymedia.com
Photo courtesy of Progistics Distribution (top left), Universal Technical Institute (top right)
logistics really is and how complex the process
LAW MATTERS TO BUSINESS
File this Under: The Complexity of Managing Personnel Documents Single files just won’t do, as businesses need to consider who sees what By Mike Saucier
D. Samuel Coffman is an attorney with Dickinson Wright in Phoenix. He practices primarily in the area of employment law, including the representation of private businesses, tribal entities — including casinos and telephone companies — and municipalities. His practice emphasizes advising employers in employment-related law, and his experience includes conducting investigations; handling discrimination charges; and defending all types of employment-related litigation in state, federal and tribal courts. dickinson-wright.com
Sherry Janssen Downer is the owner of the Law Office of Sherry J. Downer PLLC, a law firm specializing in employment and labor law. She has been recognized as one of the Best Lawyers in America for Employment Law-Management since 2014, is rated AVPreeminent, the highest Martindale-Hubbell peer rating available, and has been recognized as a Southwest Super Lawyers “Rising Star” in Employment Litigation: Defense since 2013. sherrydownerlaw.com
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The basic management of personnel files used to be pretty simple: Collect some basic information and stick the files on a shelf somewhere. Today, the matter of collecting and storing private employee information is not as simple, even with the available option of going digital. For example, today’s employers and human resources managers have to track immigration forms, Equal Opportunity Employment records, hiring records (including interview notes), payroll and tax records, medical records, investigation or litigation records. Those have to be separated from job descriptions and records related to promotions, demotions, discipline and termination, as well as performance evaluations, education and training documents and letters of recognition. That adds up to a mass of files and hundreds of hours of storing, sorting and tracking. So companies have to be on the lookout to ensure they are following the law and to avoid the increasingly common business mistake of not including the right information or of improperly storing their personnel files. “The failure to properly maintain personnel files creates the potential liability for employers with state and federal governmental agencies in a wide variety of circumstances,” says Sam Coffman of Dickinson Wright law firm in Phoenix. “For example, the failure to properly maintain time records could lead to potential liability under the Fair Labor Standards Act in actions brought by the Department of Labor or civil actions by employees.” Sherry Downer of Fennemore Craig law firm, which has offices in Phoenix, Tucson and Nogales, represents companies on employment matters and helps them understand how critical it is to properly maintain files — from documenting employee performance to making sure that documentation is filed in the proper place and is accessed by the right people. “Documenting personnel matters, first of all, is especially critical. And once you’ve documented what’s going on, employers need to make sure that that documentation is properly maintained,” Downer says. “So the actual documentation and the maintaining of the personnel file is important because it impacts the employer’s ability to manage and discipline employees. Also, it affects their ability to make personnel decisions and can affect audits and employee claims.”
So it follows that if an employer fires someone, he’d better have documented a record of poor performance and properly stored the file. Downer notes that juries aren’t typically sympathetic to companies whose personnel file management isn’t up to snuff. “I’m aware of past studies showing that 90 percent of jurors believe the company’s negligent if it does not properly document performance problems,” she says. One of the more common mistakes made by employers, according to Downer, is the improper storage of medical and confidential files and restricting who has access to that information. “Some medical and confidential files should be kept separately from the regular personnel file, and then access to that medical confidential file should be restricted to those only with a need to know,” she says. Coffman points out a potential discrimination claim could come from an employee whose employer had private medical information in a file and allowed unlimited management access to it. A supervisor, acting on that confidential medical information, might take adverse action against the employee as a result, opening the possibility of a legal claim by the employee. In order to avoid potential liability, Coffman emphasizes sharing medical information only with those who “need to know.” In fact, Coffman cites the storage of medical records as the most common example of improper file storage. Smaller companies tend to “throw everything in one bag,” he says. “Medical records should be kept separate for a variety of reasons. Employers who are covered by the Americans with Disabilities Act (ADA) are required to store medical records separately from other personnel records. Under the Health Insurance Portability and Accountability Act (HIPAA), an employer who offers group health plans may have confidentiality requirements as well. Also, if you do drug testing under Arizona law, those results should be kept separate.” How companies decide to store their files can vary. The key is being aware of and following legal requirements. Says Downer, “Employers often have their own unique file practices. It may be paper, it may electronic, it may be a combination of both — but what’s most important is not necessarily the number of people overseeing the storage system but the actual maintenance, security and access requirements that are established and followed.”
Personnel File No-Nos The following documents
• Immigration Form (I-9) and related documentation
should not be
• Equal Employment Opportunity (EEO) records
kept in the
• Hiring records, such as subjective interview notes,
personnel file:
employment test results and background checks • Payroll and tax records
The Society for Human Resource Management offers an audit checklist for personnel files. bitly.com/shrm-fileaudit
• Medical, insurance and benefits records and workers’ compensation injury claims, such as medical questionnaires, benefit enrollment forms and claims, and doctors notes • Investigation or litigation records and court orders — in fact, court orders relating to child support or garnishments should also be maintained separately
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YOUR BENEFIT IN BUSINESS
WELL WELL WELL BY MIKE HUNTER
Valley Hospitals in the Forefront of Breakthrough Treatments A procedure recently performed at HonorHealth Scottsdale Shea Medical Center used a revolutionary heart stent that dissolves completely over time. Manufactured by Abbott Vascular, the stent is a small polymer tube that opens clogged arteries and helps restore blood flow to the heart. The stent dissolves completely in the body two to three years after implantation. “With the fully dissolving stent, we believe there will be less scarring or inflammation,” says David G. Rizik, M.D., an HonorHealth interventional cardiologist who was a principal investigator for the device during clinical trials at HonorHealth Research Institute. “The artery can return to a more natural state, expanding and contracting with exercise or exertion. A metal stent is permanent and restricts motion by caging the vessel, giving it no opportunity to grow or enlarge.” HonorHealth cardiac researchers spent the past 10 years working with the manufacturer to bring this technology to market, performing clinical trials and publishing numerous scientific papers that eventually led to approval from the U.S. Food and Drug Administration early last month. “This is a game changer in coronary disease management,” says Rizik. Another game changer is in the works, with Valley hospitals again helping lead the way. Abrazo Community Health Network’s Abrazo Arizona Heart Hospital is one of 80 sites nationwide and the only one in Arizona participating in advanced clinical trials on the Transcatheter Aortic Valve Replacement (TAVR) procedure on low-risk patients. TAVR is a minimally invasive alternative to openheart surgery that enables a surgeon to implant a replacement valve through a small incision near the femoral artery in the groin, eliminating the need to crack open a patient’s chest. Currently, the procedure is available only to certain high-risk patients. The trial will include 1,200 patients who have a less than 3 percent risk of operative mortality, as determined by a heart team. The trial, which began last month, has a two-year endpoint and allows for a one-year analysis for early FDA submission. abrazohealth.com • honorhealth.com
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PCHF Engages Business against Childhood Cancer Phoenix Children’s Hospital Foundation is gearing up for a September fundraising program it designed with the business community in mind. First and foremost, of course, is the goal of $1 million to support the hospital’s Center for Cancer and Blood Disorders — a critical pediatric focus, considering that every three-and-a-half minutes a child is diagnosed with cancer yet only 4 percent of federal funding is earmarked for childhood cancer research. But Go Gold aims specifically to involve the business community as part of National Childhood Cancer Awareness Month. The flexible program allows businesses to “get behind it in whatever way makes sense for that business,” notes Tim Harrison, who, as director of cause-related marketing, oversees the hospital’s corporate relationships and partnerships. The Arizona Diamondbacks are dedicating the game on September 17 to Go Gold, and doing what Harrison describes as “a lot of ‘gold’ activation.” Coulter Motor Co. on Camelback will donate a portion of every car it sells for that month. The T-shirt company State Forty Eight will sell a special “Go Gold” T-shirt. IHOP will change its “Silver Dollar” stack of pancakes to a “Golden Stack.” Clean Freak Car Wash will donate 10 cents from every car wash; Miracle Mile Deli, $1 from its signature sandwiches. Arizona Central Credit Union is among businesses that will sell bracelets or icons (papers that customers sign and businesses then commonly post on walls or
windows to commemorate the donation). But selling an item is not the only way a business can support Go Gold. CenturyLink will include a message to its customers when it sends them their bill, and CityScape plans to turn the spotlight atop its tower gold throughout September. “We were looking for ways to engage our corporate partnerships and build something they can get behind and feel they can make a difference,” Harrison says, sharing also, “We are trying to create a movement [with] potential to make it a national program others could take and adapt to their own market.” Appreciative of the fact that Phoenix Children’s Hospital is a very recognizable brand in our marketplace and enjoys a lot of support — especially if employers go to their employees and ask what charities are important to them — Harrison alludes to the “six degrees of separation” concept and observes, “Many people are, at most, only 4 degrees separated from the hospital.” Through Go Gold activities, businesses can be PCH’s voice in the community. The activation comes through corporate partners letting their customers and employees know about the fundraising campaign and how they can get behind it. —RaeAnne Marsh Go Gold gogold4pch.org • #gogold4pch
Healthcare Partnership Takes Aim at Cost Hospice of the West, a leading communitybased hospice and palliative care organization in Maricopa County, has partnered with Turn-Key Health, the market leader in advanced illness population health management, in a collaboration that aligns community-based palliative care providers with Medicare ACO and Medicare Advantage plans and beneficiaries through technology and process to solve the problem of poor quality, low satisfaction and extreme high cost during the last 18 months of life. According to Turn-Key Health, 4 percent of Medicare patients annually will experience greater than $24,000 in avoidable excess care. Hospice of the West is committed to serving individuals living
with life-limiting illnesses, and providing ongoing support to their loved ones. Dr. Ken Cable, M.D., medical director of Hospice of the West, underscores the importance of this partnership for Maricopa County. “As the first and only hospice organization in the region to offer such advanced capabilities, we are now empowered with predictive analytics to identify beneficiaries who may receive overly aggressive care, which compromises the quality of their remaining life. This solution provides much-needed support, education and care coordination.” —Mike Hunter Hospice of the West hospicewestaz.com Turn-Key Health turn-keyhealth.com
Cause Related Marketing (CRM) is the cooperative efforts of a for-profit business and a nonprofit organization for mutual benefit. CRM efforts by a corporation are a part of its overall Corporate Social Responsibility of the business and to the community in which it does business.
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THE VIG UPTOWN
“With the exception of one, all of our locations are in older buildings that in one way or another are either architecturally significant, historic or in some regard or have a ‘soul,’” says Tucker Woodbury. “The Vig Uptown is an example of how we’ve adaptively reused an iconic and award-winning example of mid-century modern architecture.” Noting the former Arizona Bank branch was built in 1961 and designed by Ralph Haver, he says, “Although it wasn’t on the historic register and could therefore have been demolished, we chose instead to transform it back to a restaurant. Guests regularly come in and mention that they used to bank there, or their parents did — so eating and drinking in places like that adds another layer to the experience.”
Our
Food Scene Making ‘Authentic’ the New Norm
Concept restaurants keep the industry fresh by RaeAnne Marsh Our pocket of paradise has more than a fair share of celebrity and award-winning chefs spicing up the culinary scene, but what of the restaurateurs whose vison drives the development of our restaurant industry? The Valley is blessed with a plethora of innovators intent on creating unique dining experiences for residents and visitors alike. In these pages, In Business Magazine spotlights four leaders in making “eating out” a broader experience.
Sam Fox Founder and CEO Fox Restaurant Concepts “What can I say? I get bored easily, and if I do, it’s safe to assume majority of diners do, too,” says Sam Fox. “In reality, it’s actually more like a ‘catch 22.’ On one end, we are respectful of mainstays, signature dishes that guests repeatedly come back for, and we are careful not to rock that boat. But on the culinary end, we are constantly challenging our chefs to create that next, big, great dish. We want it to intrigue our guests enough so that they try something different, too. Listen to your guests and push the envelope just enough so they’ll try a new dish and maybe discover a new favorite.” On the sustainable food movement, Fox notes, “The Valley may not experience four seasons
Styles vary, but the underlying theme is universal: authenticity. This starts with location. Says Tucker Woodbury, a partner in Genuine Concepts, “We love to build neighborhood spots, what writer Ray Oldenburg refers to as ‘your third place’ in his book The Great Good Place. He talks about work, home and your third place — a local bar or neighborhood tavern that’s welcoming, affordable and comfortable, and where you know you’ll find old friends and regulars, and meet new ones.” Importance of neighborhood is echoed by fellow restaurateurs. “Our business concept nine years ago was all about bringing community together,” says Lucia Schnitzer, who, with husband Ken, opened Luci’s Healthy Marketplace in central Phoenix. “It’s always been like that since we first began to conceptualize.” “Take a look around, and you’ll be surprised with how much real estate potential there is in Phoenix — historical buildings and shopping centers ready for a refurbish, empty lots begging for something cool to open, and neighborhoods that haven’t even been tapped into yet,” says Sam Fox, founder and CEO of Fox Restaurant
Concepts, one of the Valley’s most prolific restaurant concept developers. “Sometimes you have to take a risk, like we did with The Yard at 7th Street. There wasn’t much energy over there, or a ton of reason to head that way for a night out — especially if you lived in Arcadia or Scottsdale. Now, it’s transformed into a major restaurant and bar mecca that people from all over the Valley are going to, to check out.” It was a building, in fact, that was the impetus for the now-profusion of Postino Wine Cafés, which took its name from the first Postino being in an old, historic post office building. Sharing, “We always had a passion for architecture, a passion for our community, a passion for our neighborhood,” Craig DeMarco — who co-owns Upward Projects with wife Kris and friends Lauren and Wyatt Bailey — relates, “We found an old brick building at 40th Street and Campbell, down the street from where we lived. It was the spark that brought the Baileys and DeMarcos together to form Upward Projects.” Continues DeMarco, “Our values are to find neat, historically or architecturally relevant buildings in great communities we can become
throughout year, but that doesn’t mean we aren’t able to eat seasonally all year long. We are farmers who provide produce and product as much as possible to restaurants.” And he points
“Health and wellness is a major part of conversation and community today,” says Sam Fox. “Restaurants have responded by adhering to guests’
out, “Not only is it healthier to eat with the
dietary needs and diet philosophies, and simply serving fresh food. Like
seasons, but also, from a cost perspective it can
anything else, there is not just one restaurant that can meet every dietary
be way less expensive — a win-win if you ask me.”
requirement and do it well. The key is to find a simple approach to healthy dining and do it better than anyone else. For example, at True Food Kitchen, we base our menu on Dr. Weil’s anti-inflammatory diet. Everything we serve has anti-inflammatory properties, but also tastes really, really good.”
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TRUE FOOD KITCHEN
so lucky to have a local collation of passionate
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POSTINO WINECAFE
Noting the building where Postino Highland now resides had been designed by name architect Frank Henry and had been Valley National Bank’s 100th location, DeMarco shares that its mid-century modern architecture had first caught the eye of partner Lauren Bailey more than six years ago and they had continued to watch the site until a change in the building’s ownership made it available. “It was the easiest ‘yes’ we ever made,” he says. “The architecture is beautiful, and we got to go in there and create an experience for people.”
part of.” Believing that adds character and soul to a diner’s experience, he says, “We constantly search for those types of sites — not to change it, but to bring it back to its glory.” “We’ve always striven to differentiate ourselves by creating unique experiences for our customers, identifying niches that haven’t been filled yet in our market, and, typically, it’s the building that drives the concept and the design direction,” says Woodbury. “Call us crazy, but I don’t think we’ve ever referred to a traffic study or demographic information citing average family incomes within a specific radius when we pick a spot. If the location and neighborhood feel right, more often than not we buy the building, or sign and lease and build a spot.” That was how dining destination The Orchard came about. Schnitzer shares that Luci’s Urban Concepts’ first endeavor, Luci’s Healthy Marketplace, had been received well from the neighborhood and members of the community, and the company was being asked by other developers to duplicate the concept in
neighborhoods in outlying cities. “We didn’t feel ready for those neighborhoods.” But then Venue Projects (which had worked with Upward Projects on its Windsor restaurant) invited them to tour The Orchard. “It was overgrown, not developed,” she recalls, “but when I set foot on the property, I really felt the roots of the ground just wrapping themselves up on me and saying, ‘You have to commit to this.’” The reaction was shared by her husband and their partner, Jerry Mansoor. “When we had three people feeling the same voice, there was no doubt — we knew this was where we’d have to develop.” And observing, “The world is so fast-paced,” Fox identifies another hot trend in the restaurant industry. “There’s this need for a type of restaurant that can keep up with today’s guest but still provide an enjoyable experience. That’s why the fast-casual segment is booming. It’s a setting where dates, meetings, families and friends all feel comfortable. When I’m in a rush for dinner, I like to say, a good fast-casual restaurant is always the answer.”
Craig DeMarco Co-Founder and Co-Owner Uptown Projects “Our site selection is family- and pedestriandriven, including dogs,” Craig DeMarco says, sharing, “It’s rewarding to be such a big part of the neighborhood mixed community.” Uptown Projects stores are Postino Winecafe, Churn, Windsor, Federal Pizza and Joyride Taco House, all developed with an eye to being innovative. “They are different cuisines, and we work with different types of food and chefs,” DeMarco says, noting that, in their Mexican restaurant, “We cook more from scratch. And that takes a lot more skilled labor.” Noting that each concept is a distinct brand, DeMarco shares, “And we continue to grow.”
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In developing The Orchard, Lucia Schnitzer says, “We discussed what to put where, and why.” But in many ways, the choices were simple. “We knew it was about community.” As a mother of small children, she observers, “It’s hard to take the family anywhere as a family.” So they added an ice cream great place to take our [own] kids.” The concept of events — birthday parties, weddings, corporate parties — developed in great part on its own. “We were getting calls even before we opened,” Schnitzer says, adding the phones have not stopped ringing. “It’s so exciting. We never thought that would be such a big part of our business.”
Lucia Schnitzer Co-Founder and Co-Owner Luci’s Urban Concepts Starting with Luci’s Healthy Marketplace, the focus for Lucia Schnitzer and her husband, Ken, is “bringing community together” and “making moments that really count,” she emphasizes, sharing, “Being a breast cancer survivor, that’s what inspired the business to start evolving the healthy market.” Schnitzer explains they developed the concept around “giving people back their choices, with good ingredients and healthier foods.” And she says, “We’re excited to bring something to our own community [in Central Phoenix],” which she describes as “a beautiful community with a lot of history and a diverse demographic — multiple communities within the community.”
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THE ORCHARD
store (Splurge) and a splash pad, with the result: “Oh my gosh, this is a
Building Ambience “We believe to be successful, restaurants should have a personality and tell a story,” Fox says. “If we can get our guests to experience this, then the value we provide during their time dining with us is so much greater.” When designing The Henry, Fox Restaurant Concepts’ restaurant on Camelback Road at 44th Street, Fox says, “We knew it was going to be a community space used for much more than a typical restaurant. I wanted it to feel warm and welcoming, so I probably over-thought every detail — from every ingredient on the menu to fabric on the curtains to the bookshelf display to all the natural lighting. We call ourselves “The Best Neighborhood Restaurant,” so it better feel like that to our guests when they walk through the doors.” Making sure the ambience is authentic to the period is a cornerstone of Genuine Concepts.
Says Woodbury, “If it’s a 1914 bungalow, like Vig Fillmore, the ambience will align itself with that period. If it’s the 1917 F.L. Hart Garage that’s the current location for the Crescent Ballroom, then the ambiance will be spare, much like it was 100 years ago. We never try and feel overly ‘themed’ or contrived. The more understated, the more interesting, in our opinion. We don’t believe people want to be in ‘Disneyland’ when they go out to drink or dine.” It’s important each store has “its own personality and soul,” shares DeMarco, explaining, “We’re sensitive [to that] because we cluster our stores — at Central and Camelback, you can see all our brands in one afternoon.” Differentiating interiors — down to paint colors and lighting — to make each feel special, DeMarco says, “We can’t replicate what we’ve done in the past; we’ve got to innovate all
INBUSINESSMAG.COM
the time.” But he emphasizes, “We don’t change the exterior of the buildings very much; in fact, we try to keep them as original as possible.” Building new would have been much less expensive than the adaptive reuse project that took The Orchard three-and-a-half years to come to fruition. The building that now houses finedining restaurant Pomelo dates to the 1920s, when it was “a home for the orchards,” Schnitzer says. “We considered what was happening in this house, walking ourselves through the life of the family, and asked, ‘How can we duplicate that?’” Pomelo’s “Green Room” is the original dining room, and features a table made from a 100-year-old eucalyptus tree that had stood on the property. The living room, with its fireplace, became a lounge area. The basement is used
for private dining or a meeting room, and an extension was added to the building for a bar. The Orchard is, however, more of a destination than just a restaurant. “It’s close to our first location, but we knew we could do something different, a new experience,” Schnitzer says. The core was still about community. “We niched right into a neighborhood,” she says. She and her partners wanted to create a place that would be welcoming for families of all kinds, for date nights, for people coming by themselves or with a party — where they could “celebrate life and each other.” Fox Restaurant Concepts foxrc.com Genuine Concepts genuineconcepts.us Luci’s Urban Concepts lucisurbanconcepts.com Upward Projects upwardprojects.com
Tucker Woodbury Partner Genuine Concepts The impetus to develop different ideas, says Genuine Concepts partner Tucker Woodbury, is opportunity. “Some of it has to do with the Phoenix market; some has to do with exposure and living in other markets, both Denver and New York. So there’s always been a lot of ideas and concepts running through my head. “And Phoenix was always somewhat of a blank canvas — meaning no one had done some of the things we’ve always thought about doing. We just
THE LITTLE WOODY
think, ‘I bet Phoenix would love a place like this ...’
The Little Woody “has been a bar since 1945 and was originally known as the Trails End Tavern,” Tucker Woodbury says. But some projects are built from the ground up, such as a Vig location near Taliesin West that is “an homage to Frank Lloyd Wright’s architectural style — so even when we build something new, its design direction has a connection to the neighborhood,” he says. “I can’t think of many chains that go to that length or expense when building their stores.”
— whether it be a live music venue, basement bar, speakeasy, whatever — and then we create it.” On menu creation, Woodbury says, “I wouldn’t say our menu are overly ‘foodie’ or trendy; although we try and source locally when we can, weaving in buzz words like ‘farm-to-table’ and” ‘sustainability’ doesn’t really apply to us.” He notes, however, the company’s value proposition includes “fresh ingredients, interesting flavor profiles, and delicious choices that are affordable and approachable” and he credits Executive Chef, Jorge Gomez as being “as creative and talented as any Chef in the Valley.” Says Woodbury, “We’ve made a conscious decision at all of our stores to create menus and experiences that allow our guest to visit us several times a month.”
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LOUDER THAN WORDS
No Joke: Humor Is Vital to Workplace Culture Used well, it’s a communication tool par excellence by Nathan Gilroy
Comic actor Charlie Chaplin famously said, “A day without laughter is a day wasted.” This philosophy can be applied directly to the workplace. A Gallup study (bit.ly/monday-not-blue) found that people laugh significantly less on weekdays than on weekends. And a study by Happify (bit.ly/millennials-think-work) found that millennials — who represent the largest generation in the U.S. workforce — are obsessed with their jobs, something that contributes to stress and a relatively negative state of mind. But the office doesn’t have to be all work and no play. Injecting a little fun into the workplace can help make employees more
The Key to a Good Joke In the 2014 book The Humor Code, authors Nathan Gilroy is a regional manager at Halogen Software. He helps HR professionals plan and implement customizable solutions to improve their talent management processes to achieve measurable business outcomes. Halogen Software’s talent management solutions help companies put nextgeneration performance management at the heart of their talent strategy. This ensures all talent programs — recruitment, learning, succession and compensation — are connected to and reinforce improved, ongoing performance and brilliant business outcomes. halogensoftware.com
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Peter McGraw, Ph.D., and Joel Warner set out around the world to discover what makes things funny. While they note that humor is very subjective, they do have some recommendations to help people be funny while still being work-appropriate: 1. When telling a joke, be honest and authentic. People can spot a phony a mile away. 2. It doesn’t have to be “ha-ha” funny; it can be “aha!” funny. Cleverness is sometimes good enough. 3. Good comedy is a conspiracy. Create team and organizational in-jokes. 4. It pays to chuckle at yourself because it signals to the team that everything is OK. 5. Laughter is disarming. Poke fun at the stuff everyone’s worried about. Just remember to be honest and respectful when making a joke, and pay attention to how people react. To tell if an employee’s laughter is real, the answer is in the eyes. A true laugh will come with a smile that crinkles the skin around the eyes — a “Duchenne” smile, so named because of the French physician who identified it.
The Pan Am smile, also known as the “Botox smile,” is the name given to a fake smile, in which the corners of the mouth are voluntarily raised but the muscles around the eyes stay flat. …
engaged, positive, connected and productive — all of which contribute to organizational success and the creation of a highperformance culture. In fact, humor is valued by higher-ups: A Robert Half International survey found that 91 percent of executives believe a sense of humor is important for career advancement, while 84 percent feel that people with a good sense of humor perform better in their job. The ability to be funny is also associated with intelligence and creativity. And since these are highly valued qualities in the workplace, it makes sense that humor could be have a positive impact on an employee’s performance. Creating a strong workplace culture where employees and managers feel comfortable sharing a joke, giving each other open and honest feedback, and working closely together not only builds relationships but also helps improve communication and productivity. All of these things give an organization an edge on the competition. That means humor in the workplace is no laughing matter. Let’s take a closer look at the benefits of tickling the funny bone.
A PRESCRIPTION FOR PRODUCTIVITY: LAUGH MORE AT WORK
The expression “laughter is the best medicine” is more than just a cliché. The Mayo Clinic is one of many healthcare clinics singing the praises of a good giggle with friends, family and colleagues (bitly.com/stress-laughter). Laughter actually has many proven health benefits. Among its short-term effects, laughter lowers blood pressure; gives the diaphragm, abs and facial muscles a workout; and reduces stress hormones such as cortisol and adrenaline. Its longterm effects include improving the immune system, which, in turn, lowers workplace absenteeism; reducing physical symptoms associated with stress; and improving mood by lowering anxiety.
FOUR DIFFERENT STYLES OF FUNNY
Humor is deep seated in history, and it’s now believed that humor comes from the higher levels of the brain. According to Psychology Today, researchers have distinguished four types of humor (bit.ly/four-styles-humor):
BETTERING YOUR BUSINESS
Navigating the Talent Shift
1. Affiliative humor — used to enhance one’s relationships with others. This may consist of telling a joke, or partaking in witty banter to improve relationships with others. 2. Self-enhancing humor — a “bright side of things”-type of humor. It can be used to defuse a trying situation and add a positive spin on things. 3. Aggressive humor — characterized by the use of sarcasm, putdowns, teasing, criticism, ridicule and other types of humor used at the expense of others. 4. Self-defeating humor — humor at one’s own expense. It may be a way to gain approval from others by making oneself the “butt” of the joke. Which type of humor works best in the workplace or with colleagues? Well, context is important, but on the whole, affiliative, self-enhancing and self-defeating humor tend to yield the most positive outcomes. Because of its inclusive nature, affiliative humor has been shown to increase group cohesiveness, nurture interpersonal relationships and enhance learning. Self-enhancing humor can promote creativity and reduce stress as it tends to encourage people to change their perceptions of negative situations. And, finally, self-defeating humor shows flexibility and that people don’t always take themselves so seriously, which is a valuable leadership quality. Aggressive humor is the least beneficial to a work culture since its primary function is to segregate and boost oneself by bringing down someone else. In fact, it may be considered a form of harassment, and should be actively discouraged. The bottom line: Humor in the workplace works only works if employees work at building trusting relationships and communicating clearly. Managers in particular must work on their conversational skills, leadership abilities and mentoring savvy. When it comes to leadership, studies show that teams perform better under leaders who make high use of humor. For one, humor helps bridge the social distance between leaders and their employees or peers. By sharing a laugh with employees, leaders fortify their social influence, enabling them to achieve their transactional and relational goals. After all, people are more inclined to go the extra mile for someone they like. Leaders who use humor also help lower their teams’ anxiety and stress levels. When people have a good laugh, they release tension, enabling them to concentrate on their work more efficiently. This can be particularly effective when discussing performance. Making a joke about something that went wrong — as long as it doesn’t come across as meanspirited — can help put a mishap in perspective. Leaders who also share their own funny stories of workplace mistakes are not only seen as more human but also build a better rapport with their employees. Humor doesn’t help only leaders gain influence. Employees can also use humor as an effective discourse strategy to challenge their superiors. Sometimes, a light jab about a certain decision or task can open a dialogue about an issue that may have otherwise gone unvoiced.
By 2020, 40 percent of the workforce won’t want to be someone’s employee. That means managers and executives have to forget the old recruit-and-searchfor-months methods to acquire talent and revise their perception that “talent” is only full-time employees. The good news is that this talent allows businesses to achieve the biggest impact on projects in the fastest time possible. In Navigating the Talent Shift, author Lisa Hufford introduces readers to SPEED: a fast and flexible talent strategy that shows companies how to access the 65 million people who make up the ondemand, specialized talent pool. Title: Navigating the Talent Shift: How to Build On-Demand Teams that Drive Innovation, Control Costs, and Get Results (1st ed. 2017 Edition) Author: Lisa Hufford Publisher: Palgrave Macmillan
… According to Wikipedia, it is named after the now-defunct Pan American World Airways, whose flight attendants would always flash every passenger the same perfunctory smile.
Available: 8/17/16
Pages: 145
Scrappy Paying one’s dues and plugging away may gain a person enough experience through “the school of hard knocks” to be successful. But for those who want to reach their goals faster, earn more, beat the odds — and do it with class and style — it’s time to get scrappy. Scrappy people see big problems and come up with big solutions. Or they see ordinary challenges and find a new path to extraordinary results. They’re like the entrepreneur who turned his home into an indoor jungle — complete with waterfalls, tropical birds, and a live baboon — to sell investors on the now-famous Rainforest Café restaurant chain. Or the Girl Scout who skipped the usual door-to-door cookie sales and set up a table outside a medical marijuana dispensary, selling 117 boxes in just two hours. Title: Scrappy: A Little Book About Choosing to Play Big (Hardcover) Author: Terri L. Sjodin
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5% More 5% More presents a painless route to change, with results that can last a lifetime. Whether the goal is to boost health, wealth or wisdom, this book reveals a key technique that makes it stick. Breaking big goals into small chunks makes them easier to achieve, but the trick is in making those chunks large enough to be productive yet small enough to be sustainable. This book shows
SMILE FOR SUCCESS
Humor can certainly help lighten the atmosphere at work, but it can also help improve communication, improve interpersonal relationships, and promote engagement and happiness among employees. Because people are an organization’s biggest competitive advantage, this can make an enormous difference to a company’s bottom line. Having a fun workplace, then, is much more than just a way to make Mondays a little brighter. By creating a culture that encourages open dialogue, constructive feedback, teamwork and a good laugh, a company shows it’s investing in its employees and cares about their success. And that will make any employee smile.
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Pages: 208
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INVESTING IN COMMUNITY
It’s Not Just Checkbook Giving Anymore Understanding the varied ways in which today’s individual donors give can benefit both nonprofits and their donors by Richard Tollefson
Sept
UP NEXT MONTH Telling the Nonprofit’s Story
INDIVIDUAL GIVING VEHICLES IN THE U.S. According to Giving USA, the annual report on American philanthropy, 72 percent of the $373.25 billion in charitable giving during 2015 came from individuals who gave through their checkbook or convertible assets. When adding giving through DAFs, family foundations, or bequests, that percentage jumps to 87 percent of all charitable giving in the United States.
Richard Tollefson is founder and president of The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists. phoenixphilanthropy.com
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In the past, the most common way for individual donors to support their favorite nonprofit was to open their checkbooks once per year in response to the annual fundraising campaign. They wrote checks from discretionary income, and, on occasion, donated stock or other appreciated assets. They still do, but today they have a wider array of giving vehicles at their fingertips, including inkind gifts and, increasingly, donor advised funds (DAF) or individual or family foundations. Donors who own closely held companies also may give through their corporation or its foundation, and those who wish to continue a philanthropic legacy while optimizing investments can select bequests and planned giving vehicles (including charitable trusts) at the end of life. When CEOs and executives sitting on nonprofit boards work with individual prospects, their awareness of these varied vehicles — and their encouragement of donors and the development staff to consider them — can result in substantially increased giving.
WHERE TO START?
“Nonprofits usually have a document about preferred ways of giving,” says University of Arizona’s Jennifer Flores, associate vice president and chief health sciences development officer. “The first thing board members should do is know that document.” If some options (like those above) are missing, the board member might ask why. Boards also should understand their strengths, says Matt Nash, senior vice president at Fidelity Charitable, an independent public charity. “They are most adept at telling the nonprofit’s story — who they are, what they do — and getting donors engaged and interested.” And while seasoned development officers best understand the mechanisms of getting money to their charities and how to leverage things like complex assets, boards still need to understand funding basics. Consider, for instance, gifts made through family foundations. Knowing that family foundations are geared toward a particular cause or mission, the board member whose prospective donor suggests this instrument will compare the family foundation’s mission with the nonprofit’s. If it doesn’t match, he may recommend a DAF as an alternative because he knows that DAFs allow donors to redirect their donation to any number of qualified nonprofit organizations. Board volunteers also should look for clues when speaking with donors. “When a donor says, ‘I’m thinking about getting rid of some real estate,’ board members should suggest a development officer or an estate planner who can join in on the conversation,” says Flores. “Board members can ask key
questions, like ‘Have you talked to your financial advisor?’ or ‘Have you let your charity of choice know?’” Guiding donors early and often means nonprofits face fewer restrictions on gifts, and the donor can realize greater tax advantages.
THE ‘CASH IS BEST’ DEBATE
An unequivocal “no” to any gift that isn’t cash is a surefire way for nonprofits to lose donated revenue. Nash points to DAFs. “With this vehicle, the charity receives more funds from appreciated securities and private asset donations than if a donor were to sell them first, turn them into cash and then gift them,” he says. “And donors realize better tax advantages.” Another advisable gift for nonprofits is a mutual fund that has gained value since the financial crisis. “Many charities can accept it directly,” says Nash, “and if they can’t, it can still be processed through an intermediary — like a DAF that can turn it into cash for the nonprofit.” Yet board members and staff must be strategic in their acceptance, because not all gifts are right to all nonprofits. “We try never to turn down a gift,” says Flores, “but we have to fundraise for things that will have net benefits for the organization. A gift that takes 500 hours of time to transfer as an asset may not be the best choice.” Sometimes, property or in-kind gifts, for instance, don’t offer net benefits. “Sometimes you have to say, ‘We can’t use that, but perhaps another organization can.” Showing the time and resources needed to convert a gift — on paper — can be helpful. “Donors get it when you’re honest with them,” says Flores, adding that facts or even a simple explanation of the nonprofit’s long-term mission may lead a donor to consider different — and more useful — giving options. “It’s always about honoring your donor’s intent, though,” says Flores. In the end, educated boards can help their nonprofits realize greater gains. It’s really that simple.
Grant-making from DAF accounts to qualified charities totaled an estimated $12.49 billion in 2014, representing an increase of 27 percent compared with 2013, according to National Philanthropic Trust.
BY MIKE HUNTER
AUGUST 2016
itSynergy
‘Hacking the Human’ Webinar Series Monthly, second Thursdays, continuing through December 11:30a – 11:45a Cyberattacks among small and medium-sized businesses are on the rise, but with a little education, employees can be trained to spot sneaky hackers and malicious threats before it’s too late, according to Michael Cocanower, founder and president Michael Cocanower of Phoenix-based itSynergy. Phoenix-native Cocanower, who has been recognized nationally and locally for his IT expertise, has launched a new, free, monthly webinar series, “Hacking the Human.” The average cost to a business for a cybersecurity attack is $9,000, according to a 2013 small business technology survey commissioned by the National Small Business Association. And an alarming 59 percent of small and medium-sized businesses do not have a contingency plan that outlines procedures for responding to and reporting data breach losses, according to staysafeonline.org. In addition, according to a study by IBM, 95 percent of all security incidents involve human error. “There’s a misconception that only the very large companies get hacked, but in fact, smaller companies are like low-hanging fruit to hackers. They’re quicker to get in and easier targets,” Cocanower says. Each webinar will provide useful tips to ward off phishing scams and more complex social engineering schemes that result in theft and corporate espionage. The “Hacking the Human” webinars are geared toward non-technical end users in business at any level in the company. Produced by itSynergy with host Michael Cocanower, the free 15-minute webinars will take place on the second Thursday of every month at 11:30 a.m. Upcoming webinars are “Passwords and Password Management” (Aug. 11), “Recognizing and Avoiding Email Scams” (Sept. 8), “Working Remotely” (Oct. 13), “Ransomware” (Nov. 10) and “Security Updates” (Dec. 8). Free
SAVE THE DATE
Upcoming and notable SOCENT Summit
Arizona Technology Council
Marketing Technology Summit Thurs., Aug. 18 | 12:30p – 6:00p The eighth annual Marketing Technology Summit, hosted by the Arizona Technology Council and the Phoenix chapter of the Business Marketing Association, will be held at ASU SkySong. With more than 200 public policy leaders, legal professionals, educators and marketers, marketing and public relations agency leaders, venture capitalists, bank managers, and CMOs and CIOs of high-tech organizations expected to attend from throughout Arizona, the event offers great networking opportunities with industry leaders in both organizations in addition to its valuable educational content. The event will include two keynote addresses. Jon Miller, co-founder of Marketo and CEO and co-founder of Engagio, an account-based platform that orchestrates outbound interactions across departments and channels, will speak on “Account-Based Marketing + Account-Based Sales Development = Account-Based Everything.” And Eileen Gibson, VP of Market Management with Avnet, will present “No Shortcuts to Growth: Plan Your Work and Work Your Plan.” An interactive panel discussion on the year’s most important B2B marketing trends, “Trends in B2B Marketing in 2016: Research, Digital, Advertising,” will feature Al Maag, executive director of BMA and founder of MaagComm+; Sheila Kloefkorn, CEO and president of KEO Marketing Inc.; Bruce Petillo, director of marketing for Insight; Rick Flowers, managing partner of Kpmh Digital; and John Fraser, CMO of Tiempo Development. There will also be two breakout sessions. “Trends in Applications 2016: What Is Having the Biggest Impact on Marketing” will be moderated by Kendall Matthews, CMO of AppointmentPlus. And Amy Protexter, VP of marketing for Insight, will present “Inside Out: A Story about Refreshing a Brand.” The day will conclude with a cocktail reception from 5 p.m. to 6 p.m.
Webinar
Members: $40; non-members: $60
itsynergy.com
ASU SkySong – Building 3
Sept.
Tues., Sept. 20
20
Local First Arizona presents the SOCENT (Social Entrepreneur) Summit, which will focus on Arizona’s businesses that are interested in incorporating corporate social responsibility into their businesses. Keynote speaker is Vincent Stanley, director of philosophy at Patagonia. localfirstaz.com 2016 AZBio Awards Sept.
Wed., Sept. 21
21
The AZBio Awards Ceremony celebrates Arizona’s leading educators, innovators and companies. azbio.org 2016 Annual Golf Classic Sept.
Fri., Sept 30
30
WESTMARC’s Oktoberfest Golf Classic provides an opportunity to golf with government and business leaders from the West Valley. business.westmarc.org
1745 N. Scottsdale Rd., Scottsdale
AUGUST 2016
aztechcouncil.org
S M T W T F S
bmaphoenix.org
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NO AUGUST 2016 NOTABLE DATES
35 20AUG.1 6 INBUSINESSMAG.COM
AUGUST 2016 Wed. – Sat., Aug 3 – 6
4:00p Wed. – 5:00p Sat.
‘INSIDE EDGE’ Conference Arizona Commerce Authority INSIDE EDGE is an annual conference designed for smallbusiness owners whose customers are mid-size and large corporations. Leading sales, marketing and mindset experts and FORTUNE 500 decision makers share the latest strategies for growing a business. $497 Fairmont Scottsdale Princess 7575 E. Princess Dr., Scottsdale insideedgeevent.com Mon., Aug. 8
6:00p – 9:00p
School Boards GPS and JUSD Candidate Forum Gilbert Chamber of Commerce Learn more about the candidates running for school board positions on behalf of Gilbert Public Schools and Higley Unified School District. Free Higley Performing Arts Center 4132 E. Pecos Rd., Gilbert gilbertaz.com
3
8
Wed., Aug 10
11:30a – 1:30p
Adaptive Reuse/Transforming Distressed Spaces into Vibrant Places Arizona Green Chamber This is a rare opportunity to learn from Jon Kitchell and Lorenzo Perez, who have excelled at sustainable design with their adaptive reuse projects that take distressed spaces and transform them into magical places.
Mon., Aug 15
Arizona Small Business Association A jam-packed day full of breakout sessions, lunch, networking and happy hour.
Members: $20; non-members: $30
Members: $35; non-members: $45
The Newton Phoenix
Arizona Small Business Association
300 W. Camelback Rd., Phoenix
4600 E. Washington St., Phoenix
thegreenchamber.org
asba.com
10
15 Wed., Aug 10
8:00a – 10:00a
2016 CEO Retreat – ‘Reshaping Arizona’s Future’ Arizona Technology Council
Members: $550, with golf package: $700; non-members: $650, with golf package: $800 Enchantment Resort
Association of Corporate Growth – Arizona
INBUSINESSMAG.COM
Escape the heat in the cool confines of the Casablanca Lounge. It’s a mix of great food and drink and exceptional networking with fellow professionals. Members: $59; non-members: $79; after Aug. 9: add $10 Casablanca Lounge
1 E. Washington St., Phoenix
7134 E. Stetson Dr., Scottsdale
phoenix.globalchamber.org Wed. – Fri., Aug. 10 – 12
All day
Environmental and Sustainability Conference Arizona Chamber of Commerce and Industry Hear cutting-edge information, participate in lively discussions, and network with colleagues and regulators from around the state. Members: $170; non-members: $200 Prescott Resort and Conference Center azchamber.chambermaster.com
aztechcouncil.org
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CityScape
1500 AZ-69, Prescott
525 Boynton Canyon Rd., Sedona
Please confirm, as dates and times are subject to change.
5:00p – 7:30p
Global Chamber Phoenix
acg.org/arizona
The ninth annual CEO Retreat is themed “Shaping Arizona’s Future.” Escape the heat and head up to Red Rock Country for this two-day event that gathers business owners, presidents and CEOs for speakers, workshops, keynote presentations, golf and networking.
AUG. 20 1 6
Tues., Aug 16
Summer Social
Members: free; non-members: $30 All day
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Phoenix Women in Global Leadership Secrets to global business success shared by Phoenix-area leaders who just happen to be women. Moderated by Jaime Daddona, a partner with Squire Patton Boggs. Speakers are Racquel Moses, president of InvestTT, and Lisa Kocks, Western sales manager with Vi Technology. Mon. – Tues., Aug. 8 – 9
10:30a – 6:00p
Marketing Bootcamp
For more events, visit “Business Events” at www.inbusinessmag.com
Fri. – Sun., Aug. 19 – 21
6:00p Fri. – 8:00a Sun.
Women Entrepreneurs of America National/ International Women’s Business Conference 2016 Arizona Commerce Authority WEA’s “Living Legacy Leadership” Conference 2016 will coincide with the 2016 Living Legacy Leadership Campaign and is designed to bring female entrepreneurial leaders from all of WEA Global Chapters together to discuss the past, present and future of women’s leadership on a global level. This tenth annual conference is built upon four pillars: networking, education, empowerment and diversity. $75 Thurs., Aug. 18
9:00a – 1:00p
2016 Back to Business Expo
The Saguaro
Sat., Aug. 27
Free Chandler Chamber of Commerce chandlerchamber.com
8:00a – 5:00p
The 10th annual Empowering Today's Accountant Seminar. Attendees can earn eight hours of continuing professional education hours and network with local professionals throughout the day. AFWA/IMA members: $150, other association members: $200; non-members: $250
Four Points by Sheraton Ahwatukee
Desert Willow Conference Center
10831 S. 51st St., Phoenix
4340 E. Cotton Center Blvd., Phoenix
ahwatukeechamber.com
mesaeastvalleyafwa.org 19
24
5:00p – 7:00p
Business After Business Chandler Chamber of Commerce Monthly evening mixer includes a chance to win the “Chamber Cash Pot” (sponsored by Thorobred Chevrolet). Members: $5; non-members: $15 Schnepf Farms 24810 S. Rittenhouse Rd., Queen Creek chandlerchamber.com bmaphoenix.org Wed., Aug 24
Bill Montgomery, Maricopa County attorney, will be on hand for the August “Ask an Expert.” He will talk about fraud and identify theft, how to collect bad checks, and other Maricopa County criminal trends that affect business as well as address questions from attendees.
The Accounting & Financial Women’s Alliance
Members breakfast: $25; general public breakfast: $35; breakout sessions: $10
Thurs., Aug. 18
Chandler Chamber of Commerce
2016 Empowering Today’s Accountant Seminar
Expo starts with a breakfast, at which Secretary Reagan will speak. The expo will present more than 50 booths plus breakout sessions that will help attendees enhance their business.
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Noon – 1:00p
‘Business Legal’ with Bill Montgomery
25 S. Arizona Pl., Chandler
4000 N. Drinkwater Blvd., Scottsdale
azcommerce.com
Ahwatukee Foothills Chamber of Commerce
Tues., Aug. 30
7:30a – 9:00a
‘Breakfast with a side of … Recreational Marijuana’ Scottsdale Area Chamber of Commerce “Breakfast with a Side of...” is a series of forums that provides an excellent opportunity to learn about the issues affecting the Scottsdale area business community. The forum is structured on dialogue between those leaders making policy decisions and chamber members. A moderator and will allow plenty of time for questions and answers. Registration includes breakfast. Members: $20; non-members: $30; at the door: add $5
25 Thurs., Aug. 25
27
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7:15a – Noon
Boardroom Basics: Nonprofit Board Leadership Workshop for Young and Emerging Professionals National Bank of Arizona Designed specifically for young and emerging professionals interested in serving on a nonprofit board, this half-day in-person workshop will explain the roles, responsibilities and expectations involved, before committing to board service. Attendees will hear from Alliance of Arizona Nonprofits CEO Kristen Merrifield about what nonprofits are, how they operate, and their role in our community, plus get personal board service tips from a panel of nonprofit experts.
Thurs., Aug. 25
4:00p – 7:00p
West Valley Biz2Biz Expo Peoria Chamber of Commerce
6001 N. 24th St., Phoenix
The West Valley Biz2Biz Expo brings business connections, snacks, cash bar and prizes. This is an opportunity for attendees to develop relationships with businesses in the West Valley cities Buckeye, Surprise, Glendale, Avondale, Wickenburg, Peoria, Goodyear, Youngtown, El Mirage, Phoenix, Sun City, Litchfield Park and Tolleson.
arizonanonprofits.org
Free
$39 National Bank of Arizona Conference Center
DoubleTree Paradise Valley
Wigwam Resort
5401 N. Scottsdale Rd., Scottsdale
300 Wigwam Blvd., Litchfield Park
scottsdalechamber.com
peoriachamber.com
If your event is directed to helping build business in Metro Phoenix, please send us information to include it in the In Business Magazine events calendar. Full calendar online. Events@inbusinessmag.com
37 20AUG.1 6 INBUSINESSMAG.COM
WE VALUE WHAT WE OWN
BY MIKE HUNTER
2016 CT6 Cadillac Sedan Introducing a new standard for excellence, the reinvented sedan by Cadillac is the 2016 CT6. With advanced technology and the latest in engine technologies, this performance luxury sedan is turning heads. With a twin turbo 3.0-liter V6 engine, acceleration is impressive. The 400 horsepower and 400 pound-feet of torque make for an exceptional response off the line. With automatic stop/start technology and the “industryfirst” cylinder deactivation, this vehicle is as powerful as it is tech savvy, and is amazingly efficient. The entirely new vehicle structure is light and offers an incredible driving experience. Agile, solid and secure are how it is described — giving an economic edge and a reason to pay attention.
2016 CADILLAC CT6 SEDAN MSRP: $53,495 City: N/A Hwy: N/A
Cadillac cadillac.com
Transmission: 8 speed automatic 0-60: 6.5 sec
Style and luxury come together, as one may expect from Cadillac, but in a new cabin environment that will please the senses and allow for every pleasure while touring in this sedan. There are seven available interior combinations to create the perfect custom experience. Stained exotic woods, custom woven carbon fiber elements and Galvano chrome accents provide a rich look. Comfort is not lost, either. The seats are exceptionally soft, front and back, with optional individual climate control and five massage settings. The Bose Panaray® Sound System, featuring 34 speakers, is an added delight that will mean more road trips. Technologies will impress any techy. Speedy and easy to control is the front touchscreen sized 10.2 inches and equipped to put all of the car’s functionality at the driver’s fingertips. The cursor can be felt under the user’s finger to ensure placement, and the responsiveness of the technology makes for smooth workings of the control, audio, navigation and other systems. Handwriting recognition makes it easy to put in an address and large icons make decisions simple and mindless. There is wireless charging for mobile phones, which will power the phone anytime it is in the car.
Out in the Open circumstance, given the number of days of sunshine, is a great pair of sunglasses that say, “I am in charge.” Here are our picks:
Metal/Wood/Acetate Sunglasses by Ermeneglido Zegna
Vintage Celebration by Persol
Wayfarer by Ray-Ban
Known for its sterling silver temple
The Wayfarer family comes in different
The interplay of dark metal and wood
arrow, the Persol has been a standard
flavors: Original Wayfarer from the ‘50s, and
with finely crafted details makes these
since the original Thomas Crown Affair
New Wayfarer, an updated version of the
sunglasses a sleek and stylish everyday
with Steve McQueen. $154
same iconic shape. From $150.
accessory. $295
persol.com
ray-ban.com
zegna.com
AUG. 20 1 6
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Get Charged: Inductive charging (also known as wireless charging) uses an electromagnetic field to transfer energy between two objects. This is usually done with a charging station. Energy is sent through an inductive coupling to an electrical device, which can then use that energy to charge batteries or run the device.
Photos courtesy of Cadillac (top), Ermeneglido Zegna, Persol and Ray-Ban (bottom, l to r)
Going to the Phoenix Open? Have a golf date this Friday? Embarking on a long, cathartic walk with your number two? A necessity in this
MEALS THAT MATTER
Tommy V’s Urban Kitchen & Bar AHI TUNA SALAD Sesame seared ahi tuna with baby field greens, sweet peppers, avocado and mustard vinaigrette $15
TIRAMISU Espresso coffee, lady fingers and mascarpone cream $7
Urban Italian in the heart of Old Town Scottsdale makes for great lunchtime fare. This simple, modern establishment off Indian School Road is all about the best ingredients and fresh and innovative urban Italian dishes in an atmosphere that is open and vibrant. Known for its live music and great nighttime menu, Tommy V’s translates beautifully in the daylight as an equally bustling hot spot with dishes that are reminiscent of evening options. The menu is full of combinations from light and healthy salads to truly creamy and flavorful pastas and entrées. Start with the Chef’s Board, which is made up of artisan meats and cheeses and is a refreshing way to begin the experience. The Carpaccio Tenderloin is the traditional thinly sliced tenderloin beef under a bed of arugula, shaved parmesan and drizzled with a citruscaper aioli. Not to miss is the Bistro Tender & Panzanella Salad with grilled beef tenderloin, drizzled with balsamic reduction and tossed in a Chianti mustard vinaigrette with tomatoes, red
onions, olives, romaine and croutons. There are numerous other salads, from the traditional to the whimsical, that include seafood, fruits and vegetables. Then there are the pasta and risotto dishes, so well-prepared and delicious, with plenty to choose from — including the Penne Vodka made with chicken in a vodka tomato cream sauce. The Risotto Carbonara is perhaps the best dish in the place, with the braised pancetta, sweat peas and Parmigiano. Heavier dishes include the Braised Short Ribs and an assortment of burgers and paninis. If wine at lunch appeals, then this is the place. There’s an impressive array of labels by the glass and knowledgeable servers to advise on the wine as well as the food and specials of the day. Tommy V’s 7303 E. Indian School Rd., Scottsdale (480)-427-2264 tommyvscottsdale.com
Urban Dining Hit the streets for lunch and find many options in the “downtowns” of the Valley. From the office, spill out onto the street and voila! There
Downtown Phoenix — Hanny’s
AUG. 20 1 6
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INBUSINESSMAG.COM
Built in the old Hanny’s
Old Town Scottsdale — ZuZu at Hotel Valley Ho
Historic Downtown Glendale — Cuff
Department Store
Retro-chic Hotel
Here, find
location and making full
Valley Ho houses this
comfort
use of that fact is this
ultra-urban café-
food with
ultra-urban hot spot
style restaurant and
a Southern
for lunch. An extensive
lounge that serves
twist served
menu includes pizzas,
innovative, upscale
in casual digs
grilled meats, salads and desserts. It’s a great bar
American comfort food and cocktails. The
with a patio and adjoining event space.
by night and a “Mad Men” look-alike hang-out for
menu includes some old favorites from the ’50s
This is an Old World building with great
lunch (yes, you may want to enjoy a cocktail …)
with culinary inspiration for the present day.
character and even better food.
40 N. 1st St., Phoenix
6850 E. Main St., Scottsdale
5819 W. Glendale Ave., Glendale
(602) 252-2285
(480) 421-7997
(623) 847-8890
hannys.net
hotelvalleyho.com/zuzu
cuffdowntown.com
Carbonara Begins. The Italian dish made with bacon, peas and cheeses may get its name from carbonaro (the Italian word for “charcoal burner”); some believe the dish was first made as a hearty meal for Italian charcoal workers. In parts of the United States, the etymology gave rise to the term “coal miner’s spaghetti.”
Photos courtesy of Tommy V’s (top), Hanny’s, Hotel Valley Ho and Cuff (bottom, l to r)
are multiple options of all kinds for that midday meal. Here are our picks, by downtown:
Celebrating 30 years of serving the women business owners of Phoenix
Summer 2016 • nawbophx.org
Message from the President
When I first visited NAWBO Phoenix back in 2004, I knew I had found my tribe. It was my district manager who had handed me a newspaper clipping a few weeks earlier and thought I might be interested in the group. I didn’t hesitate to become involved and started volunteering on a committee, and, finally, the board! I am so grateful to have the women of NAWBO in my life — they are my friends, my mentors and women who just get me. I found at NAWBO, you’re surrounded by women and men who understand the joys and struggles of being a business owner — they’re some of the most supportive people I could have met on this journey. Last year I saw that district manager at a function and have felt such gratitude for my experience in this organization, I just had to ask him, “Do you even know what a gift it was that you gave me five years ago? Thank you. Just thank you.” The National Association of Women Business Owners (NAWBO) has a mission that propels women entrepreneurs into economic, social and political spheres of power worldwide by working to: STRENGTHEN the wealth-creating capacity of our members and promote economic development; CREATE innovative and effective changes in the business culture; BUILD strategic alliances, coalitions, and affiliations; and TRANSFORM public policy and influence opinion makers.
#NAWBOFirst
Last year we based our entire focus on the mission above, as we will continue to do this year but with the addition of our 2016/17 theme: “#NAWBOFirst.” This theme has several meanings, but mostly it’s that we put our membership first. This is a member-led organization; we are here to serve them. NAWBO is so much more than just a place for networking; it’s THE place for women business owners to reach their highest potential through fostering individual and professional growth and providing the education that is not available anywhere else, public policy awareness, and business growth opportunities in an environment that is truly uplifting and supportive. Another #NAWBOFirst is when we started back in 1975 in Washington DC. Twelve brave women set out to challenge the business landscape and fight for gender equality in business ownership. We were one of the first women’s business groups to formally organize, and today we’re the unified voice for the 10 million women business owners across the nation, with more than 5,000 members and 60 chapters. Our national organization is stronger than it’s been since our strongest advocacy days at the beginning of this great movement and we are fortunate to have the power and strength of our large organization with us on this journey. Lastly, we are #NAWBOFirst because we should be supporting each other as women in business, and supporting the male-owned businesses that support us. We have a member presence to pull from throughout Arizona and also access to the national website — think #NAWBOFirst whenever you need a service or product in your personal or business lives! I am honored to serve as the president of NAWBO Phoenix this year, and I ask that you join me on this journey making #NAWBOFirst a priority this year for Arizona Women Business Owners. If you are interested in membership or becoming a corporate partner, please reach out to me or any one of our directors.
Phaedra Earhart 2016-2017 President NAWBO Phoenix Chapter Farmers Insurance 1425 S. Higley Road, Suite 107 Gilbert, AZ 85296 480-289-5768 phaedra.earhart@gmail.com Years in Business: 6 Joined NAWBO: 2011
ABOUT NAWBO
—Phaedra Earhart, 2016 – 2017 President NAWBO Phoenix
NAWBO® prides itself on being a global beacon for influence, ingenuity and action and is uniquely positioned to provide incisive commentary on issues of importance to women business owners. NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power.
nawbophx.org
We host networking and education events throughout the valley each month, open to both members and guests. Check out our calendar at NAWBOphx.org and join us! Take advantage of this great networking opportunity by bringing business cards and making connections.
For more information, please visit NAWBOphx.org.
Phoenix Metropolitan Chapter of the National Association of Women Business Owners 7949 E Acoma Dr., #207, Scottsdale, Arizona 85260 480-289-5768 • info@NAWBOphx.org
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NAWBO NEWS
NAWBO PHOENIX Presidential Corporate Partners SRP Western International University Executive Corporate Partners Border States Electric Cox Business GoDaddy Lewis Roca Rothgerber Christie Wells Fargo
Announcing the New NAWBO 2016/2017 Board of Directors The Phoenix Chapter of the National Association of Women Business Owners (NAWBO) recently installed its new board of directors for 2016-17. This board will be responsible for fulfilling the mission of the 5,000-strong women in NAWBO to: strengthen the wealth-creating capacity of its members and promote economic development; create innovative and effective changes in the business culture; build strategic alliances, coalitions, and affiliations; and transform public policy and influence opinion makers. Serving on the Board’s Executive Committee: President: Phaedra Earhart, Farmers Insurance President Elect: Julie Cook, Idea Three Creative Immediate Past President: Nancy Sanders, Maricopa SBDC Treasurer: Ronit Urman, Urman Enterprises LLC Secretary: Wendy McClellan, Structure for Success Executive Director – NAWBO Phoenix Office: Suzanne Lanctot, SOS-Association Management Solutions
The New Conversation of NAWBO First
Other members serving on the NAWBO Board: Director of Corporate Partners: Julie Grubbs, Jule’s Jewels Director of Membership: Clarisse Ringwald, Clarisse Color Creations, LLC Director of Marketing: Kristi Church, Infinite Reach Agency Director of Programs: Melanie Dunlap, Peaceful Spirit Enrichment Center Director of Mentoring Program: Cindy Gordon, Culture Shock Coaching Director of Public Policy: Mike Bull, Women’s Business Institute Director of Community Alliance: Colleen Dellolio, UPS Director of Strategy and Development: Lynda Bishop, Relationship Insurance
The Phoenix Chapter recently developed a new marketing initiative of #NAWBOFirst in hopes of creating an awareness of support among the chapter members, corporate partners and board of directors — to bring value and make NAWBOPHX the premier place for women business owners of Arizona to learn, share and support one another inside the chapter first, before looking elsewhere. So please join us and share #NAWBOFirst!
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NAWBO NEWS
Business Corporate Partners Arizona Bank & Trust Arizona Fire & Water Restoration Bank of America Benjamin Franklin Plumbing IKEA Business Kolbe Corp Microsoft Store Orchard Medical Consulting Phoenix Country Club Schmeiser, Olsen & Watts LLP UPS Strategic Media Partners Hollister Design Group Independent Talk 1100 KFNX MoneyRadio 1510 NetworkingPhoenix.com Phoenix Business Journal Splash Printing & Marketing Executive Media Partners Beaver Pond Enterprises, LLC CITY Sun Times InBusiness Magazine Infinite Reach Agency Community Alliance Partners Arizona Small Business Association Arizona Small Business Development Center Scottsdale Area Chamber of Commerce Visit Phoenix Women’s Enterprise Foundation
What to Do when Disaster Strikes by Tracy Michelle Klein, Agency Consultant, Arizona Fire & Water Restoration, Inc.
Have you ever heard the phrase “better safe than sorry”? Having a disaster plan is one step in making you safe. As a business owner, the last thing you want to think about is a disaster striking. Today’s disasters are not the same as those of previous generations. We not only have natural disasters which everyone seems to think about, but, with our world being run and controlled by computers, we have IT disasters, data breaches, white hat hacking, black hat hacking and more. I have to impress upon you that, as a business owner, the first thing you need to think about is what to do when a disaster strikes. You put together a business plan to make yourself successful; you should also put together a disaster plan to ensure you will be safe and not sorry.
The Importance of Being Prepared – Create A Plan
One important fact to keep in mind is, according to the Red Cross, 40 percent of small businesses never reopen after a disaster. So let’s get prepared and make sure your business does not become another statistic. I am going to give you a few things to keep in mind when putting together your plan. 1. Consult with Your Insurance Agent The first step in being prepared for a disaster is a worst-case scenario conversation with your insurance agent. Your insurance agent should be considered a partner in your business. Don’t ever purchase insurance on price, especially for your business. Make sure you have an agent whom you know, you trust and you can sit down with before disaster happens, and go over everything. Make sure you have proper liability coverage for neighboring businesses, contents coverage, loss-of-business coverage, cyber coverage and so on. Also ask your agent straightforwardly, “Are you going to be there for me if something happens? 2. Who Is Ultimately Responsible for What? The second item you need to consider is, do I own or rent my building? If you rent, what does my lease cover? And who is responsible for what if something happens? Make sure you know these details ahead of time. If something happens to the structure, who is responsible, and whom do you need to call? Who is your landlord’s contact? Maintenance? How do you shut off the electric? How do you shut off the water? Who are the companies you need to contact? Make sure you have all of those numbers handy somewhere other than your office. If you own the building, make sure you have all the information gathered into one place and make sure that your employees have it. I would suggest a Google doc that is shared, so if there is an emergency and you are out of town, your employees know who to contact. 3. Have a Photo Archive of … EVERYTHING The third thing to complete is photos of everything you own. Take time out and photograph all your equipment, furniture, wall hangings, signs, etc. — especially any high-dollar items such as collectibles or memorabilia — along with serial numbers and invoices to have as a permanent record. Store those photos in a cloud labeled “office equipment,” and then, when you see your adjuster at the time of loss, there is no question as to contents and what you have lost.
nawbophx.org
4. Don’t Underestimate the Power of Backing Up The fourth thing you need to consider: Your computers are the most vital portion of every business. If you are not backing up every day, start doing so. If you are backing up on a flash drive, make sure that flash drive does not stay inside the building at night. It will not do you any good if a fire happens in the middle of the night and the backup for all of your company’s information was burned up as well. 5. How Will You Handle Your Staff? The fifth item you need to consider is having a plan with your employees. If a fire breaks out, if a monsoon hits, if they need to get out of the building in a hurry, how are they going to do it? Also make sure that you designate a meeting spot for your office. 6. Will You Need an Alternate Location? The sixth item you want to make sure to have in your plan is where you will be running the business as an alternate if needed. Would you be able to convert a room in your home? Would you be able to reach out to someone who has extra space? You want to make sure you know ahead of time where you are going to plug in and go while your office is being put back into action. 7. Communication Is Key You also want to make sure you have a communication-with-staff plan put into place. Make sure you have a virtual meeting space ready to go if needed so employees can have a meeting together after the fact. This will not only keep your employees in the loop but also keep peace of mind moving forward. Remember, your employees are your team, and they need to know what is going on in order to function appropriately. Remember, your employees are your team and there is no better way to see what a team is made of than when faced with unfortunate circumstances. Lastly, if you find yourself in the middle of water damage, smoke damage or fire, always call a reputable restoration company that can come out immediately and help you put your business back together. A restoration company is well versed in insurance and what is covered and what is not covered. It can assist in property documentation at the scene. It can assist in trying to save equipment and furniture and, most of all, it is there to assist you in getting back to pre-loss condition as quickly as possible, because, as I said, time is money. Arizona Fire & Water Restoration, Inc. azfirewater.com
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What Fortune 100 Firms Know about Teambuilding that Women Business Owners Need to Know! by Laurie D Battaglia, CEO & Workplace Strategist, Aligned at Work™
Remember when you started your business a few years ago? You may have had visions of scaling up, living large, having a large team of people, or a company with more than a thousand employees. Or you may have decided to pursue your passion and see where it leads you. You could be a team of one or two. Either way, sooner or later, you can’t do it all alone. You’ll need to hire people to help you. They could be sitting in the same location with you, or in a totally different country and time zone. They may be full-time employees or hourly contractors. Let’s assume that you’ve hired people and now you are charged with bringing them all together into a smoothly functioning, cohesive team. How do you do that?
Extraordinary Teams Have These Things in Place
Here are the common themes that Extraordinary Teams share: • People know why they are part of the team. What are they expected to bring to the role: personality, intellect, experience, skills, education? • Team members, including the leader, need to build and maintain trust. Without strong trust, a team will never accomplish as much as it could. The job may get done, but it is accelerated with a strong foundation of trust. • Team members need to understand the goals, mission, vision, the “why” of the team. What is the common mission that they are there to support? Does each of them buy into that mission? People want to champion a cause or goal that they endorse.
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• There is organizational commitment to the goal/mission/vision. Companies provide finances and resources to support the mission. There is sponsorship and a decision-making process from leaders. • People understand their individual and team roles. They know who is supposed to do what, when, where and how. They have the tools they need to do their work. • There is incentive to stay with the team. Each person knows what’s in it for them.
How Do You, the Leader, Make this Happen?
Let’s use an example from gardening. If you wanted to grow specific vegetables in your garden, you could take an easy approach and throw old vegetables out into your yard. You could even buy a pack of seeds and do the same thing. With any luck, something would take root. But birds, animals, sun and rain would take a toll, and you may or may not have the garden you want. A better approach would be to set aside a spot in your yard with the right amount of sun and shade for what you want to grow. Do a little research — what will grow well in your area? What’s the right time of year to plant? What kind of seeds or seedlings should you buy? Do you have animals or predators that will eat your plants before they provide a crop? Netting and poles may need to be purchased. And when it all goes right, you get a lovely crop of vegetables and get to eat healthy and clean. What Does that Have to Do with You and Your New Team? Your new team is just like that vegetable garden. You get a better result when you
provide the time and opportunity for each team member, plus all of them together, to create a trusting environment where people know the value they bring to the team. When you bring that team together, in person or virtually through faceto-face technology, you can create your mission and vision together. People naturally support what they had a hand in creating. You can talk about roles and assignments together so each one knows what the others are doing. You, the leader, can provide that time and space, plus the facilitation needed to get people aligned and working together.
How Can You Create Your Extraordinary Team?
Rest assured, you can do this alone. Here are some points to consider when you decide to DIY. • Do you have the expertise to facilitate a team-building session with your own team? I’ve done it, but it’s not easy. You can’t really “play along” on equal footing with your team. • Do you know how to build trust quickly within the group? No matter how much we think others trust us, the leader is still “the boss” to many and it’s tough to step in and out of that role during a team session. • Do you have a process in place already to walk the team through what they need to do, know and understand? A professional facilitator knows the process to take people through to get where you need to go. • Can you afford the time and resources to potentially do it wrong, and then regroup? Leaders often call in an expert to help them by facilitating a team-building session or retreat. Great results come from these sessions, and leaders get
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to participate as equals with their teams. Their goals get met. And a strong foundation is set in place for future work by the team.
What Can You Expect to Gain through Teambuilding?
Here are some of the results we’ve achieved working with leaders: • Ten percent increase in leadership engagement; 31 percent increase in team member engagement. • New startup team builds new functions and processes while changing norms and culture. • Leaders now make decisions together and report back to their senior leader, rather than waiting for him to solve the problems.
Your results should always be based on your own definition of success. What do you need to do to build a stronger team? Laurie D Battaglia, MS-OD and associate certified coach, is CEO and Workplace Strategist with Aligned at Work™ (alignedatwork.com) in Scottsdale, Ariz. A NAWBO Phoenix Chapter member, she partners with her husband and their team to provide consulting, facilitation, training and coaching to leaders and their teams. As a Certified Leadership Ambassador for Take the Lead Women (taketheleadwomen.com) she specializes in working with women in the workplace, especially around the issue of power. Contact her at (602) 888-0975 or coach@alignedatwork.com. @alignedatwork • linkedin.com/in/lauriebattaglia • facebook.com/alignedatwork
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The Technology Paradox: Are You Hooked into Technology or Is Technology Hooked into You? by Sara Regester, Directions 4 Wellness
I was recently traveling in the Colorado Rockies “off the grid” with no cellular service and no Internet access — unless I took a hike up the hill to the pasture and stood under the big pine tree, where I was able to access three bars on my smartphone. I wonder if this is how the indigenous felt when they sent out their smoke signals. … It’s amazing how much technology rules our life and distracts our focus, yet, as business owners, how dependent we have become to staying plugged in and connected to our phones and our devices 24/7. Being a problem responder and not a problem reactor is at the core of stress resilience techniques and strategies that I offer through my stress management programs. The downside of our technology dependency is that it often pulls us out of presence and distracts our attention from those around us.
Technology as a Source of Stress
As important as technology is to our workflow, it can also be the source of our stress. The paradox is that we rely on our technology tools to track the many things on our to-do list and to communicate with others, but, just when we are in a productive rhythm, an email comes in that we need to respond to or our phone alert goes off with a text or social media alert. The distraction from our devices as we stay connected to our business demands a constant split attention that can be energy draining and derail our efficiency. Ultimately, the resulting competing priorities will lead to overwhelm and lack of productivity, which will create burnout and suppress our creativity. This is the downside of how technology efficiency tools can contribute to our stress.
#TheStruggleIsReal
So where is the balance of staying connected to your business and focused on the task at hand? This is a real issue among many in our society. Technology has completely taken over the time together, and disconnection on the human level takes place. And, as we communicate more and more to each other over our devices, how often do we miscommunicate the tone through text messages and email? Clear communication requires listening with presence and focus so we can support the needs of our customer or client.
Removing the Paradox
We can invest in our SELF-Care by setting personal boundaries around our technology tools. Many of us have a subconscious habit, like an addiction, to mindlessly check our smartphones for alerts and calls frequently during the day. What if you apply some mindfulness practices around your smartphone and try to remove the paradox? Below are six tips to help establish Technology Self-Care practices to free yourself from distraction and step outside the technology paradox. No need to add to your stress by tackling these all at once! Choose a few
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to try out, and see how establishing some healthy boundaries around your devices can relieve stress and free your mind from distraction, allowing you to have more energy to spend that focus on other things — like those you enjoy spending time with!
6 Tips to Free Yourself from Technology Distraction
1. Take your lunch break away from your desk. Eat lunch without your phone or computer to distract you. Taking a technology break in your day can help you to gain an energy boost and to reset your mind from all the noise. 2. Turn off your phone when you go to bed at night and leave it in another room. Don’t bring your business calls into your sanctuary. 3. When exercising, leave your phone in the locker so you can stay focused. 4. Turn your phone to silent while at the table. You can be more mindful with your food and more present with your table companions. 5. Set a timer for 20- to 30-minute segments of focused project time to not allow any distractions such as email or text messages for that window of time. Sara Regester, stress mastery expert, is the founder of Directions 4 Wellness, and creator of the “Turn Your Stress into Success” programs that promote Stress Resiliency to support success-driven individuals in how to be successful without wiping themselves out from stress. Her highly transformative programs are available to individuals and businesses. Visit www.Directions4Wellness.com to download her free e-book, The True Cost of Stress.
Rights of Publicity: A Potentially Catastrophic Pitfall for the Unwary Marketer by Cindy Villanueva, Associate of Lewis Roca Rothgerber Christie
Business owners and marketing departments need to have at least a basic understanding, if not a proficient grasp, of the legal vetting necessary before using an image in an ad or marketing piece. A marketer needs to know not to use trademarks owned by other companies, when to obtain a copyright license before using a photo, and how to avoid using trademarks in her own company’s advertisements that are confusingly similar to a competitor’s mark. Importantly, a marketer needs to also understand a concept known as “the right of publicity,” which may be lurking in a properly licensed image. When marketing forgets to consider the rights of publicity, businesses are exposed to potentially dramatic legal liability. As explained below, Michael Jordan won $8.9 million against Dominick’s (now Safeway) because Dominick’s ran a print ad in Sports Illustrated without following the rules.
So What Is the Right of Publicity?
The right of publicity is the right of every person to control the commercial use of his or her identity.1 Identity goes beyond how a person looks. It also includes an individual’s “persona,” which includes such indicia of identity as name, voice (including sound-alikes), signature, distinctive phrases and biographical information. For example, Dominick’s got slammed when it used an ad (shown below), even though it did not include a photo of Michael Jordan — it featured only his name and jersey number 23. As innocent as this may seem, Dominick’s didn’t have permission to use the name or the jersey number in its ad.
How Did the Jury Arrive at an $8.9 Million Damage Award?
The right of publicity is protected by statutes and/or case law, and the law can vary from state to state. Generally, a plaintiff is required to show that a defendant used the plaintiff’s identity for “commercial purposes.” And it is safe to assume that the use of an individual (or her persona) in an advertisement will be considered commercial use. Michael Jordan’s case is an interesting one. By all accounts, the $2-off voucher on Dominick’s ad featured above was a total flop. The voucher was redeemed by only two customers! However, damages in a right of publicity case are not based on the success of the ad. Instead, the award is based on the value of the plaintiff’s identity, which is evaluated under formulas recognized by the courts. Jordan presented evidence that he highly values his image and does not sign endorsement deals for less than $10 million. Although a staggering number, the jury seemingly used this rate to find that the value of Jordan’s right of publicity equated to $8.9 million.
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That award is not altogether isolated. Dustin Hoffman was awarded $1.5 million in compensatory damages as fair market value for use of his name and likeness (although the case was later overturned on appeal for other reasons). Tom Waite was awarded $375,000 after Frito-Lay used of soundalike of his voice without his permission. As the verdicts in these cases demonstrate, infringing a person’s right of publicity can be a costly mistake.
Bottom Line: How Do You Protect Yourself?
To avoid a potentially costly right of publicity claim, begin legal vetting of an image with obtaining a photo license. But don’t stop there. Also consider the content of the photo. If the photo includes an identifiable individual, a name, or some other indicia of identity, consider whether a right of publicity release is necessary. A license for use of the photo will not protect you should an individual pictured bring a right of publicity claim. Finally, you should be careful to obtain permission from all the proper parties. Rights of publicity, especially for deceased individuals, may have been inherited by a few descendants. Thus, make sure that all parties with rights have signed a proper release.
Ms. Villanueva is an associate in Lewis Roca Rothgerber Christie’s Intellectual Property Practice Group. Her IP practice primarily focuses on trademarks, copyrights, and rights of publicity. She helps clients with cases involving trademark infringement and dilution, copyright infringement, trade secret misappropriation, unfair competition and cybersquatting. To learn more, please visit her website at lrrc.com/Cindy-Villanueva.
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Protection from Hackers; Network Security for Your Business Jenny DeLapp, CEO and Owner of DeMille Global As more home and office products become Wi-Fi enabled, having a robust network becomes a must. With all the hacking reports in the news, many of our clients have become very aware of network security concerns. There are several best practices that can help secure your home and office networks. The first step is having the right network installed.
Different Types of Networks
Mid-tier network gear has difficulty with security, performance and handoff. Once you reach more than 6,000 square feet of office or home space, the network has difficulty covering the space and managing handoff. Clients using a device walking through the space will have calls drop, or they will lose connection to important devices. Higher tier networks can have more people connected to the network and still perform. Even smaller businesses do not want to install a network only to find that a device or service they use requires more bandwidth than they have. Most offices and homes need three layers to the network: a guest network for Internet use only, interoffice networks for standard office communication, and an executive network for confidential information. These networks are created in the firewall. It’s important to change the default login to the management port. Anyone with the manufacture’s default port information could easily log into your system if you keep it at the default.
Protecting Important Data
Every office seems to have that one person who isn’t tech savvy. One office we worked with had a salesperson who completely deleted several Dropbox folders. While this data can sometimes be recovered, it takes time and resources away from business. NAS (Network Attached Storage)
drives became popular as some cloud-based services became hacked or too expensive to hold large amounts of data. NAS is also recommended for most offices as it allows full control of your internal data. The drives can do a redundant backup of the other drives automatically. We would educate the admin to create groups and guests. The users would then be assigned as read only or with limited access to certain drives.
Here are a few of our hacking prevention best practices:
• Change all the default passwords, making them 8 to 32 characters with a mix of capitals, special characters and spaces. Hackers and hacking practices will see the space and think that is the end of the password. Having multiple spaces in a password keeps them confused. • Change default ports on firewalls, switches, printers and any network device. • Create user rights in the NAS drive. • For firewall rules, only allow VPN connections and schedule VPN times. Have certain staff to have access during their typical working hours or allow CXO level to have access at all times. • Control access to exported files. For example, Google Drive has excellent tools for file sharing. Look for a tool that allows you to delete a shared file from another computer. • Keep security patches and software up to date.
Jenny DeLapp is the CEO and owner of DeMille Global, a world-wide home and business automation company based in Scottsdale, Arizona. Please visit our website at www.demilleglobal.com to see all the latest technology and contact us for more information on how we can help you create the perfect home or business network.
A BUSINESS OWNERâ&#x20AC;&#x2122;S RESOURCE TO LEGAL SERVICES
LEGAL GUIDE 2016
A comprehensive guide to local firms & their areas of specialty for business FEATURING
Buchalter Nemer Engelman Berger Fennemore Craig The Frutkin Law Firm Greenberg Traurig Wilenchik & Bartness
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Gallagher & Kennedy The prime location for attorneys who know real estate law and how to get deals done.
DEALS WE DO Complex to routine transactions, including land use & zoning, litigation, construction, secured lending, leasing, acquisitions, sales, eminent domain/condemnation, valuation, distressed assets, refinancing, sale-leasebacks, permanent loans, tax planning, liquor licensing and land banking
FOR YOU Developers, home builders, contractors, lenders, landlords, tenants, investors, syndicators, owners, buyers, sellers and individuals
Lawyers. When Results Matter.
AND YOUR PROJECTS Mixed use developments, master planned developments, commercial, office projects, sports facilities, shopping centers, retail, industrial, multi-family, mini-storage and master sign plans
2575 East Camelback Road | Phoenix, Arizona 85016-9225 | P: 602-530-8000 | www.gknet.com
Legal Services Guide
Advocating for Business
Specialized legal expertise serves our business community by RaeAnne Marsh
Doing things right at the outset can save time and money down the road. This truism is especially relevant in business. Working with an attorney to ensure a business is on the right track, in compliance and negotiating with protection in mind is why working with an attorney is so beneficial. It is also why In Business Magazine has compiled this Legal Guide to showcase local firms who strongly support the business community and offer their specialized practice areas, to help business owners make decisions on what firm to use locally. There are many ways a business could get off on the wrong foot without proper advice. A common problem, alluded to in many of the monthly “Legal” articles in In Business Magazine, is businesses taking a DIY approach thinking it will save them money. This often backfires, making things more complicated — and, thus, more costly — when they later do get an attorney involved. It’s not just a matter of knowing how to deal with certain matters; there may be requirements or implications of which the business owner is unaware. Laura A. LoBianco, a former chair of the Arizona Bar Association’s Business Law section executive council and a partner at Fennemore Craig, puts it succinctly: “Especially when starting a business, most business owners don’t know what they don’t know.” In the case of protecting a company’s intellectual property, if the ongoing business owner has created something — from a name to a piece of machinery — but not appropriately protected it, establishing ownership rights over someone else at a later date is much harder and may require costly litigation. And business owners tend to underestimate their IP in the first place, says Lee Fraley, a partner in the Phoenix office of law firm Snell & Wilmer who specializes in IP and works with many emerging businesses in acquisitions and related transactions. “They tend to think IP only includes patents, but it’s much more than that — it’s almost anything that gives a company a competitive advantage.” Or perhaps the business has been approached by another regarding a transaction. The owner may try to reach agreement on the business terms before getting an attorney involved, and then just ask the attorney to write it up. Law relies heavily on precedent, and there may be implications and ramifications to certain terms the business owner may be unaware of — this on top of the potential for missed opportunities for the business. SERVICES
LEGAL GUIDE About This Section
A BUSINESS
OWNER’S
RES
LEGAL OURCE TO
HOW TO CHOOSE A LAWYER The State Bar Association of Arizona’s website offers these valuable tips: •G et recommendations from friends and family members who have had positive experiences with lawyers. •S earch for lawyers by practice area or location at the State Bar’s online Find a Lawyer feature on its homepage.
When exiting a business, as well, there are many factors to be considered that an owner may not have dealt with. These include tax ramifications, transfer of intellectual property rights, and how to structure proceeds to be most beneficial for future income. And there may be regulatory requirements such as getting permission from the Federal Trade Commission if the sale exceeds a certain threshold. “If the company is in breach or violation of that law, the transaction could be revoked or fines and penalties assessed,” LoBianco says. What an attorney brings to businesses, then, is a view to avoid both pitfalls and missed opportunity. This In Business Magazine 2014 Legal Guide has been created to help businesses connect with the appropriate resources for their needs and to be a reference should a specific expertise be needed. Fennemore Craig fclaw.com Snell & Wilmer swlaw.com State Bar of Arizona azbar.org
•V isit the lawyer’s website; see if they will answer some basic questions before you commit to meeting with them. Ask about their experience in handling your particular issues, and their availability to take client phone calls and respond to emails. Some lawyers insist that clients make appointments and will not answer client calls and emails. You will want someone who is accessible when you need them. •C onsult a list of Certified Legal Specialists. The State Bar can provide a list of specialists in the areas of Bankruptcy, Criminal, Estate and Trust, Family Law, Injury and Wrongful Death, Real Estate, Tax and Workers’ Compensation. There are also lawyer referral services, which, for a small fee, will help in finding a lawyer. State Bar of Arizona azbar.org
2016
hensive A compre al guide to loc ir areas the & s firm for lty cia spe of business G
FEATURIN
Nemer Buchalter Engelman
Berger
Fennemore The Frutkin
Wilenchik
Craig
Law Firm
Greenberg
Traurig
s & Bartnes
In Business Magazine is proud to connect the legal community with businesses throughout the Valley with this annual Legal Guide. The law firms included in this guide are firms that are familiar to In Business Magazine, have reputable practice areas specific to business and support the business community in several ways. We have included profiles of our supporting firms, providing even more information of their services and top attorneys. Please visit (inbusinessmag.com/legalguide) to get a more detailed list of attorneys with these firms and to search by practice areas.
online See more om/legalguide inbusinessmag.c
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Legal Services Guide
Buchalter Nemer At the top
ARIZONA PARTNERS
Steve Fox Will Gelm Buzzi Shindler Paul Weiser
Buchalter Nemer is a full-service business law firm that has been teaming with clients for six decades, providing legal counsel at all stages of their growth and evolution, and helping them meet the many legal challenges and decisions they face. Buchalter Nemer clients are engaged in the diverse global economy governed by complex laws and regulations, and they trust us as advisers and business partners because we are involved in their world. They rely on our forward-thinking to help them resolve problems before they arise. Our founding principle — providing our clients with the best business solutions — continues to lead us. We value each client relationship, recognizing that their success is our success. Our overarching goal — getting the best results for the client in a timely manner with sensitivity to cost — has engendered client loyalty, and the firm has grown from that loyalty.
Our lawyers are accessible, resourceful, skillful and adept at responding to change. We strongly believe that technology is a tool that furthers the practice of law, and we have used that belief to develop a cutting-edge platform for our firm. Unlike many firms, we have the capacity to process e-Discovery inhouse, reducing client costs. Our technological capabilities keep case law and rule changes at our fingertips and client communications current, enabling us to create efficient, superior outcomes. Buchalter Nemer lawyers are also active members of the communities in which they live and work. Leadership is a value the founding partners practiced and passed on to the current generation of attorneys. Our lawyers sit on the boards of prominent organizations, teach and lecture frequently. We actively participate in
many associations and groups in each of our office locations, including the Public Law Center, San Francisco Legal Aid Society, Practicing Law Institute, California State Bar Association, the Los Angeles County Bar Association and the LACBA Domestic Violence Project, the Sojourner Center, the Boys and Girls Club of Greater Phoenix and many others. Buchalter Nemer’s commitment to reflecting and enhancing the rich diversity of the clients and communities in which we practice is more than six decades strong. The firm’s diversity of attorneys and staff provides clients with a greater array of creative talent and alternative thinking, benefiting all.
At-a-Glance MAIN LOCAL OFFICE ADDRESS:
OFFICES IN METRO PHOENIX: 1
YEAR ESTABLISHED LOCALLY: 2005
16435 N. Scottsdale Rd., Suite 440 Scottsdale, AZ 85254
NATIONALLY HEADQUARTERED: Los Angeles
PRACTICES:
PHONE: (480) 383-1800 WEBSITE: www.buchalter.com
MANAGING PARTNER: Paul Weiser NO. OF YEARS WITH FIRM: 11
Real Estate, Litigation, Corporate, Tax & Estate Planning, Labor & Employment, Charter Schools
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Legal Services Guide Ballard Spahr L.L.P.
Bryan Cave L.L.P.
Burch & Cracchiolo, P.A.
One E. Washington St., Suite 2300 Phoenix, AZ 85004 (602) 798-5400 ballardspahr.com Bankruptcy, Business & Finance, Employment, IP, Real Estate
One Renaissance Square Two N. Central Ave., Suite 2200 Phoenix, AZ 85004 (602) 364-7000 bryancave.com Bankruptcy, Business & Commercial Litigation, IP, International Trade, Real Estate, Labor
702 E. Osborn Rd., Suite 200 Phoenix, AZ 85014 (602) 274-7611 • bcattorneys.com Business, Commercial Litigation, Estate Planning, Family Law, Insurance Defense, Real Estate, Tax Controversy, Zoning & Land Use, Equine, Personal Injury, Labor & Employment
Buchalter Nemer
Carpenter, Hazlewood, Delgado & Bolen P.L.C.
Bowman and Brooke L.L.P. 2901 N. Central Ave., Suite 1600 Phoenix, AZ 85012 (602) 643-2300 bowmanandbrooke.com Product Liability, Commercial Litigation, Healthcare & Nursing Home Negligence, Alternative Dispute Resolution, Class Actions
16435 N. Scottsdale Rd., Suite 440 Scottsdale, AZ 85254 (480) 383-1800 buchalter.com Real Estate, Litigation, Corporate, Tax & Estate Planning, Labor & Employment, Bank & Finance, Healthcare
For a more detailed listing of our recommended firms and a complete list of their attorneys and Areas of Practice, please visit inbusinessmag.com/legalguide.
1400 E. Southern Ave., Suite 400 Tempe, AZ 85282 (480) 427-2800 • carpenterhazelwood.com Community Association Representation, Construction Defect Litigation, Insurance Defense, Churches & Nonprofits, Business, Employment Law, Bankruptcy & Reorganization
The Cavanagh Law Firm 1850 N. Central Ave., Suite 2400 Phoenix, AZ 85004 (602) 322-4000 • cavanaghlaw.com Litigation, Family, Real Estate, Insurance Defense, Bankruptcy & Creditors’ Rights, Healthcare, Corporate
»
Engelman Berger Engelman Berger is comprised of experienced lawyers who are well recognized for their expertise and committed to resolve commercial disputes and assist clients in preventing legal problems through proper planning. Our clients are national and local lenders, borrowers, lessors, tenants, family-owned businesses, developers, franchise owners, municipalities and investors. We provide creative and focused representation in all federal and state courts, bankruptcy court, arbitrations, mediations and settlement negotiations. We facilitate business and real estate transactions through counsel and negotiations. We are problem solvers and focused on client goals.
At the top
FOUNDING PARTNERS
David Wm. Engelman Steven N. Berger
At-a-Glance MAIN LOCAL OFFICE: 3636 N. Central Ave., Suite 700 Phoenix, AZ 85012 PHONE: (602) 271-9090 WEBSITE: www.eblawyers.com David Wm. Engelman and Steven N. Berger
Industries served include lending, credit unions, construction, restaurant, hospitality, medical, retail, wholesale, agricultural and real estate, among others. We regard the clients’ goals as the foremost motivation in providing our services, and listen to ensure success. Our lawyers are recognized in Martindale Hubbell AV ratings, “Super Lawyers,” and U.S. News & World Report’s “Best Lawyers in America,” among other ratings. We are locally owned and our lawyers take an active role in community activities.
OFFICES IN METRO PHOENIX: 1 NATIONALLY HEADQUARTERED: Phoenix MANAGING PARTNERS/YEARS WITH FIRM: David Wm. Engelman – 15 years Steven N. Berger – 15 years Patrick A. Clisham – 7 years YEAR ESTABLISHED LOCALLY: 1999 PRACTICES: Business Disputes, Real Estate Disputes, Bankruptcy, Reorganization, Creditors’ Rights, Business Transactions, Real Estate Transactions, Water Law, Appeals, Loan Workouts, Mediation
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Legal Services Guide Clark Hill
Davis Miles McGuire P.L.L.C.
Fennemore Craig P.C.
14850 N. Scottsdale Rd., Suite 500 Scottsdale, AZ 85254 (480) 684-110 clarkhill.com Litigation, Corporate, Healthcare, Real Estate, Creditors’ Rights, Bank & Finance, Family, Immigration
80 E. Rio Salado Pkwy., Suite 401 Tempe, AZ 85281 (480) 733-6800 davismiles.com Commercial Litigation, Real Estate, Tax, Corporate, Mergers & Acquisitions, Corporate Bankruptcy
2394 E. Camelback Rd., Suite 600 Phoenix, AZ 85016 (602) 916-5000 fennemorecraig.com Real Estate, Mergers & Acquisitions, Business Litigation, Natural Resources, Healthcare, Immigration, International
Coppersmith Brockelman P.L.C.
Dickinson Wright P.L.L.C.
The Frutkin Law Firm
2800 N. Central Ave., Suite 1200 Phoenix, AZ 85004 (602) 224-0999 cblawyers.com Healthcare, Employment, Litigation, Corporate & Real Estate, Governmental Investigations
1850 N. Central Ave., Suite 1400 Phoenix, AZ 85004 (602) 285-5000 dickinsonwright.com Alternative Dispute Resolution, Bankruptcy, Commercial Litigation, Employment, Family Law, Tax, International
15205 N. Kierland Blvd., Suite 200 Scottsdale, AZ 85254 (602) 606-9300 frutkinlaw.com Corporate & Business Law, Bankruptcy, Taxation, Trust & Estate Planning, Real Estate, Asset Protection, Litigation
Engelman Berger P.C.
Gallagher & Kennedy P.A.
3636 N. Central Ave., Suite 700 Phoenix, AZ 85012 (602) 271-9090 eblawyers.com Debtor & Creditor Rights, Bankruptcy, Commercial, Licensing, Real Estate, Auto Dealership, Credit Union
2575 E. Camelback Rd., Suite 1100 Phoenix, AZ 85016 (602) 530-8000 gknet.com Business Law & Transactions, Litigation, Real Estate, Tax Law, Environmental, Insurance, Healthcare, Sports Law
DLA Piper 2525 E. Camelback Rd., Suite 1000 Phoenix, AZ 85016 (480) 606-5100 dlapiper.com Corporate, Employment, Tax, Litigation, International Arbitration, Real Estate
Fennemore Craig Fennemore Craig is a full-service business law firm with nearly 200 attorneys with offices in Phoenix, Tucson, Nogales, Denver, Las Vegas and Reno. With a history that spans more than 130 years, Fennemore Craig has been involved in many of the issues that have shaped the Southwest. As one of the largest 250 law firms in the nation, the firm helps entrepreneurs and businesses pursue solutions and, when necessary, aggressively defends clients’ interests with extensive trial experience in federal and state courts, administrative agencies, and in arbitration proceedings. Our litigation skills extend to virtually every area important to business, including Natural Resources, Energy, Environmental and Utilities; Labor and Employment; Healthcare Litigation and Regulations; and Intellectual Property.
At the top
TOP REPRESENTATIVE ATTORNEYS
Jay Kramer, Amy Abdo, Sarah Strunk, Steve Good, Chris Byrd, James Goodnow
At-a-Glance
Our substantial business practice covers Business Finance; Business Litigation; Real Estate; Estate Planning; Government Relations; Financial Restructuring, Bankruptcy and Creditors’ Rights; Mining; and Emerging Business and Technology. Fennemore Craig’s commitment to quality is confirmed in its ratings from third parties, including U.S. News Media Group, Chambers USA, Best Law Firms Rankings in America® and Ranking Arizona, which lists Fennemore Craig in national practice areas as well as in numerous firsttier rankings for the Phoenix metropolitan area.
MAIN LOCAL OFFICE: 2394 E. Camelback Rd., Suite 600, Phoenix, AZ 85016 PHONE: (602) 916-5000 WEBSITE: fennemorecraig.com OFFICES IN METRO PHOENIX: 1 NATIONALLY HEADQUARTERED: Phoenix MANAGING PARTNER: Steve Good NO. OF YEARS WITH FIRM: More than 20 years YEAR ESTABLISHED LOCALLY: 1884 PRACTICES: Real Estate, Mergers & Acquisitions, Business Litigation, Natural Resources, Mining
ADVERTISING PROFILE
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Legal Services Guide Gammage & Burnham P.L.C.
Gust Rosenfeld P.L.C.
Jaburg Wilk
Two N. Central Ave., 15th Floor Phoenix, AZ 85004 (602) 256-0566 gblaw.com Business Organizations & Commercial Transactions, Collections & Bankruptcy, Health Care, Litigation, Real Estate, Zoning & Land Use
One E. Washington St., Suite 1600 Phoenix, AZ 85004 (602) 257-7422 gustlaw.com Franchise, IP, Bankruptcy, Construction, Corporate, Creditors’ Rights, Employment, Real Estate
3200 N. Central Ave., Suite 2000 Phoenix, AZ 85012 (602) 248-1000 • jaburgwilk.com Administrative Law, Appellate, Bankruptcy, Business/Corporate, Business Divorce, Collections, Construction, Defamation, Employment, Estate Planning, Family Law, Foreclosure, Healthcare, Insurance Law, Intellectual Property, Internet Law, Litigation, Probate Litigation, Real Estate
Gordon & Rees 111 W. Monroe St., Suite 1600 Phoenix, AZ 85003 (602) 794-2460 gordonrees.com Civil Appeals, Commercial Litigation, Construction, Employment, Insurance Defense, Privacy & Data Security, Real Estate
Hymson Goldstein & Pantilinat P.L.L.C. 16427 N. Scottsdale Rd., Suite 300 Scottsdale, AZ 85254 (480) 991-9077 scottsdale-lawyer.com General Practice, Litigation, Family Law, Personal Injury, Real Estate, Bankruptcy
Greenberg Traurig L.L.P. 2375 E. Camelback Rd., Suite 700 Phoenix, AZ 85016 (602) 445-8000 gtlaw.com Litigation, Tax, Labor, Construction, Corporate, Securities, Intellectual Property
Jackson White P.C. 40 N. Center St., Suite 200 Mesa, AZ 85201 (480) 464-1111 • jacksonwhitelaw.com Commercial Litigation, Construction Law, Criminal Defense, Disability Law, Elder Law, Intellectual Property Law, Labor & Employment Law, Personal Injury, Real Estate Law, Tax Law
»
For a more detailed listing of our recommended firms and a complete list of their attorneys and Areas of Practice, please visit inbusinessmag.com/legalguide.
The Frutkin Law Firm The Frutkin Law Firm, PLC was founded in 2007 by attorney Jonathan Frutkin with the goal of providing exceptional legal representation to clients throughout Arizona. The firm helps businesses, individuals and families with corporate and business law, bankruptcy, taxation, asset protection, wills, trusts and Principal, Jonathan Frutkin, Partners: Stephanie Fierro, Carolyn Tatkin, estates, and litigation needs. Its real Adam Buck, and Ben Himmelstein (pictured left to right) estate legal services include tax lien Metro over the last 12 months. The firm has foreclosures, HOA law, transactions and litigation. been recognized for its accomplishments in Most recently, The Frutkin Law Firm added estate planning by the Phoenix Business Journal solar and energy law to its resources. Located at and was named, for a fourth time, a Best of Our Kierland Commons in Scottsdale, its 10 attorneys Valley winner by Arizona Foothills magazine. In are sought-after specialists by local media. They 2012, Jonathan Frutkin became the first Arizona have been quoted in nearly 100 television, radio, recipient of the Distinguished Service Award from newspapers and magazine articles in Phoenix the National Association of Consumer Bankruptcy Attorneys for his work to address the issue of PARTNER ATTORNEYS excessive student loan debts and bankruptcy. He is also a frequent panelist for crowdfunding Principal, Jonathan Frutkin conferences, most recently in Silicon Valley and Partners: Adam Buck, Stephanie Fierro, Washington, D.C.
At the top
At-a-Glance MAIN LOCAL OFFICE: 15205 N. Kierland Blvd., Suite 200 Scottsdale, AZ 85254 PHONE: (602) 606-9300 WEBSITE: frutkinlaw.com OFFICES IN METRO PHOENIX: 1 NATIONALLY HEADQUARTERED: Scottsdale MANAGING PARTNERS: Jonathan Frutkin NO. OF YEARS WITH FIRM: 9 YEAR ESTABLISHED LOCALLY: 2007 PRACTICES: Corporate & Business Law, Bankruptcy, Taxation, Trust & Estate Planning, Real Estate, Asset Protection, Litigation
Ben Himmelstein and Carolyn Tatkin
ADVERTISING PROFILE
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Legal Services Guide Jennings, Haug & Cunningham 2800 N. Central Ave., Suite 1800 Phoenix, AZ 85004 (602) 234-7800 jhc-law.com Banking, Construction, Creditors’ Rights, Environmental, Estate Planning, Family Law, Insurance Defense, Litigation, Medical Malpractice, Personal Injury, Professional & Lawyer Liability, Real Estate, Surety & Fidelity Law
Jennings Strouss & Salmon One E. Washington St., Suite 1900 Phoenix, AZ 85004 (602) 262-5911 jsslaw.com Bankruptcy & Reorganization, Corporate & Finance, Intellectual Property, Labor & Employment, Litigation, Real Estate, Tax & Trusts & Estates
Lewis Roca Rothgerber Christie, L.L.P.
Ogletree, Deakins, Nash, Smoak & Stewart P.C.
201 E. Washington St., Suite 1200 Phoenix, AZ 85004 (602) 262-5311 lrrlaw.com IP, Bankruptcy, Corporate & Securities, Commercial litigation, Labor & Employment, Real Estate, Regulatory Affairs, Healthcare
2415 E. Camelback Rd., Suite 800 Phoenix, AZ 85016 (602) 778-3700 ogletreedeakins.com Employment, Traditional Labor Relations, Litigation, Unfair Competition & Trade Secrets, Immigration
Littler
Osborn Maledon P.A.
2425 E. Camelback Rd., Suite 900 Phoenix, AZ 85016 (602) 474-3600 littler.com Management-side Employment Advice & Counsel, Labor & Management Relations, Employment Litigation, Immigrations & Global Migration, International Employment & Labor
2929 N. Central Ave., 21st Floor Phoenix, AZ 85012-2793 (602) 640-9000 omlaw.com Commercial Litigation, Corporate & Securities, IP, Technology, Real Estate, Criminal, Bankruptcy
May Potenza Baran & Gillespie Jones, Skelton & Hochuli P.L.C. 40 N. Central Ave., Suite 2700 Phoenix, AZ 85004 (602) 263-170 jshfirm.com Insurance Defense, General Civil Litigation, Appeals, Alternative Dispute Resolution, Transportation, Criminal Defense, Medical Malpractice
201 N. Central Ave., 22nd Floor Phoenix, AZ 85004 (602) 252-1900 maypotenza.com Administrative Adjudications, Alternative Dispute Resolution, Appeals, Bankruptcy Reorganization, Commercial Creditors & Debtor’s Rights, Employment & Labor Law
Nussbaum Gillis & Dinner Koeller, Nebeker, Carlson & Haluck, L.L.P. One E. Washington St., Suite 400 Phoenix, AZ 85004 (602) 256-0000 knchlaw.com Business & Corporate, Civil Litigation, Construction Litigation
Lewis Brisbois Bisgaard & Smith L.L.P. 2929 N. Central Ave., Suite 1700 Phoenix, AZ 85012 (602) 385-1040 lbbslaw.com Medical Malpractice, Construction Defect Litigation, Products Liability, General Liability, Professional Liability
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14850 N. Scottsdale Rd., Suite 450 Scottsdale, AZ 85254 (480) 609-0011 ngdlaw.com Business Litigation, Bankruptcy, Construction Law & Litigation, Real Estate Law, Transactional Law, Trusts & Estate Planning, Insurance Law
Perkins Coie L.L.P. 2901 N. Central Ave., Suite 2000 Phoenix, AZ 85012 (602) 351-8000 perkinscoie.com Business Litigation, Patent & IP, Business & Licensing, Real Estate, Criminal Defense
Polsinelli One E. Washington St., Suite 1200 Phoenix, AZ 85004 (602) 650-2000 polsinelli.com Business Litigation, Corporate, Financial Services, Health Care, Real Estate, Life Sciences & Technology, Immigration, Tax
Quarles & Brady L.L.P. One Renaissance Square Two N. Central Ave. Phoenix, AZ 85004 (602) 229-5200 quarles.com Commercial Bankruptcy & Restructuring, Business Law, Environmental, Franchise, Healthcare
For a more detailed listing of our recommended firms and a complete list of their attorneys and Areas of Practice, please visit inbusinessmag.com/legalguide.
INBUSINESSMAG.COM
Legal Services Guide
Greenberg Traurig At the top
PHOENIX SHAREHOLDERS
Michael Aguirre, Laurent Badoux, Brian Blaney, Mary Bruno, Rebecca Lynne Burnham, Michael Cafiso, David Cleary, John Cummerford, William DeHaan, Jerry Fellows, Karl Freeburg, Robert Goldich, Nicole Goodwin, Brigitte Finley Green, Jean Harris, Dana Hooper, Robert Kant, Leslie Klein, Bruce Macdonough, Kevin Morris, Clifford Neimeth, James Nelson, Pamela Overton, Gil Rudolph, Brian Schulman, Jeffrey Verbin, E. Jeffrey Walsh, Quinn Williams, Jeremy Zangara
Greenberg Traurig’s Phoenix Attorneys are an Integral Part of Arizona Legal Landscape Greenberg Traurig’s Phoenix attorneys are regularly recognized by publications and associations honoring those they call “the best in the profession.” Given their representation of a variety of companies and individuals doing business in Arizona, these attorneys are an integral part of the state’s vibrant legal, economic, and civic landscape. Greenberg Traurig’s Phoenix attorneys are trusted advisors to clients, offering multiple disciplines and decades of experience within the business, real estate, municipal, and financial arenas, and Arizona courts. The attorneys, several of whom are award winning in the areas of delivery of elite-level legal services, client service, and charitable work, can offer clients tailor-made resources. The office is part of one multi-disciplinary business-oriented law firm, with a robust national and international footprint and a focus on real-world legal advice. Clients trust Greenberg Traurig’s Phoenix attorneys for legal guidance on the matters most important to doing business transactions and
disputes in Arizona. These include such issues as securities, mergers and acquisitions, litigation, construction, labor and employment, real estate, tax, bankruptcy and intellectual property, and corporate transactions at every stage of the business lifecycle. Founded in 1967 by three attorneys in Florida, the firm has grown quickly but prudently. Its offices, including Phoenix, have grown by attracting high quality legal talent looking to meet the needs of clients who range from middle market public and private clients, to some of today’s most progressive entrepreneurs. Today, Greenberg Traurig is home to approximately 1950 attorneys and government law and policy professionals in 38 locations in commercial centers across the United States, Latin America, Europe, Asia, and the Middle East. We offer our clients: • An Integrated Approach Greenberg Traurig provides integrated legal services for clients. We offer a multidisciplinary team with the strategic business, legal and political experience required to address the increasingly complex needs of companies.
• Fast-Moving Service Our culture promotes innovation and fast-moving, tireless dedication to our clients, resulting in practical, business-focused legal services. • A Commitment to Efficiency Greenberg Traurig builds teams around client needs, ensuring lean staffing, front-end planning and flexible billing where appropriate.
22 attorneys in the firm’s Phoenix office have been recognized in the latest edition of in The Best Lawyers in America®; 7 in the Chambers USA Guide; and 17 in Southwest Super Lawyers, including 4 shareholders who were included in that publication’s “Top 50 Lawyers in Arizona”.
At-a-Glance MAIN LOCAL OFFICE ADDRESS:
OFFICES IN METRO PHOENIX: 1
2375 E. Camelback Rd., Suite 700 Phoenix, AZ 85016
MANAGING SHAREHOLDER:
PHONE: (602) 445-8000 WEBSITE: www.gtlaw.com
Bruce Macdonough NO. OF YEARS WITH FIRM: 29
PRACTICES:
Corporate & Securities; Litigation; Intellectual Property & Technology; Real Estate; Public Finance; Labor & Employment
YEAR ESTABLISHED LOCALLY: 1999 ADVERTISING PROFILE
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Legal Services Guide Renaud Cook Drury Mesaros P.A.
Sanders & Parks, P.C.
Steptoe & Johnson L.L.P.
One N. Central Ave., Suite 900 Phoenix, AZ 85004 (602) 307-9900 rcdmlaw.com Personal Injury, Wrongful Death, Medical Malpractice, Product Liability, Insurance Coverage, Appeals, Business & Real Estate
3030 N. Third St., Suite 1300 Phoenix, AZ 85012 (602) 532-5600 sandersandparks.com Civil Litigation, Personal Injury/Wrongful Death, Corporate, Professional Liability Litigation, Insurance Defense, Public Entity/ Municipal Defense, Intellectual Property
201 E. Washington St., Suite 1600 Phoenix, AZ 85004 (602) 257-5200 steptoe.com Commercial Litigation, Insurance Coverage & Bad Faith, Labor & Employment, Media & Communications, IP Protection & Litigation, Taxes
Schneider & Onofry P.C.
Stinson Leonard Street L.L.P.
3101 N. Central Ave., Suite 600 Phoenix, AZ 85012 (602) 230-8857 soarizonalaw.com Administrative, Business, Employment, Alternative Dispute Resolution, Civil & Commercial, Construction Litigation, Civil Rights, Family
1850 N. Central Ave., Suite 2100 Phoenix, AZ 85004 (602) 279-1600 stinsonleonard.com Commercial & Class Action Litigation, Bankruptcy & Creditors’ Rights, Corporate Counseling, Banking & Financial Services, Real Estate
Sherman & Howard L.L.C.
Tiffany & Bosco P.A.
201 E. Washington St., Suite 800 Phoenix, AZ 85004 (602) 240-3000 shermanhoward.com Real Estate, Labor & Employment, Estate Planning, Bankruptcy, Mergers & Acquisitions, Litigation, Banking & Finance, Immigration, Tax
2525 E. Camelback Rd., Suite 700 Phoenix, AZ 85016 (602) 255-6000 tblaw.com Banking, Employment, IP, Tax, Real Estate, Commercial Litigation, Construction
Rose Law Group P.C. 7144 E. Stetson Dr., Suite 300 Scottsdale, AZ 85251 (480) 505-3936 roselawgroup.com Real Estate, Land Use & Zoning, Tax, Family, Estate Planning
Ryley Carlock & Applewhite One N. Central Ave., Suite 1200 Phoenix, AZ 85004 (602) 440-4800 rcalaw.com Energy & Environment, Real Estate & Development, Creditors’ Rights & Banking, Estate Planning & Probate, Corporate & Securities, Litigation, Document Control & e-Discovery
Sacks Tierney P.A. 4250 N. Drinkwater Blvd., 4th Floor Scottsdale, AZ 85251 (480) 425-2600 sackstierney.com Banking, Business & Corporate, Civil Litigation, Commercial & Public Finance, Construction, Employment, Estate Planning, Indian & Tribal Relations, Real Estate, Healthcare
Salmon, Lewis & Weldon P.L.C. 2850 E. Camelback Rd., Suite 200 Phoenix, AZ 85016 (602) 801–9060 slwplc.com Business & Finance, Commercial Litigation, Commercial Law, Corporate Real Estate, Electric Power & Utilities, Environmental Law
Snell & Wilmer One Arizona Center 400 E. Van Buren St., Suite 1900 Phoenix, AZ 85004 (602) 382-6000 swlaw.com Bankruptcy; Commercial Finance; Corporate & Securities; Employee Benefits & Compensation; Healthcare; Intellectual Property; International; Labor & Employment; Litigation; Natural Resources, Environmental & Energy; Political Law & Government Relations; Real Estate; Tax
Squire Patton Boggs 1 E. Washington St., Suite 2700 Phoenix, AZ 85004 (602) 528-4000 squirepattonboggs.com Corporate, Environmental, IP, Litigation, Public Finance, Restructuring, Real Estate
Warner Angle Hallam Jackson & Formanek P.L.C. 2555 E. Camelback Rd., Suite 800 Phoenix AZ 85016 (602) 264-7101 warnerangle.com Commercial & Business Law, Construction, Real Estate, Commercial Loans, Divorce & Family, Trusts & Estates, Probate, Personal Injury
Wilenchik & Bartness P.C. 2810 N. Third St. Phoenix, AZ 85004 (602) 606-2810 wb-law.com Civil Litigation, White Collar Criminal Defense, Mediation, Tax Litigation
For a more detailed listing of our recommended firms and a complete list of their attorneys and Areas of Practice, please visit inbusinessmag.com/legalguide.
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Legal Services Guide
Wilenchik & Bartness Founded in 1991 by Dennis Wilenchik and Becky Bartness, the law firm of Wilenchik and Bartness provides high-level litigation services to a select group of clients. The firm also provides commercial arbitration and mediation services and works closely with businesses to manage their legal needs. Dennis Wilenchik is rated Martindale-Hubbell AV®-Preeminent™, the highest rating available under the Martindale-Hubbell rating system, and he is listed in the national Bar Register of Preeminent Lawyers. Wilenchik has been a nationally certified civil trial advocate by the National Board of Trial Advocacy for more than 15 years. He is an Arizona Bar Foundation Fellow and was elected a Fellow to the American Board of Professional Liability Attorneys. Wilenchik has served as a civil judge pro tem of the Superior Court, President of Maricopa County Bar Association Young Lawyers Division, board member of the Arizona Bar Journal, chairman of the Civil Trial Practice Committee
At the top
PRINCIPAL PARTNERS
Dennis I. Wilenchik • Becky A. Bartness
At-a-Glance Dennis I. Wilenchik
and member of the Superior Court Civil Study Committee of the State Bar. Becky Bartness is rated Martindale-Hubbell AV®-Preeminent™ and is listed in the Bar Register of Preeminent Women Lawyers. She was a real estate specialist for over 15 years and also practices commercial arbitration and mediation. Ms. Bartness is licensed to practice law in all Arizona state and federal courts and the Ninth Circuit. She concentrates her practice in the areas of real estate, commercial, banking and environmental law, and commercial mediation and has represented lenders, developers and homebuilders in real estate and environmental matters, commercial and real estate loan transactions, loan restructures, bank regulatory and compliance matters, general corporate matters, and loan work-outs.
MAIN LOCAL OFFICE: 2810 N. Third St. Phoenix, AZ 85004 PHONE: (602) 606-2810 WEBSITE: wb-law.com OFFICES IN METRO PHOENIX: 2 NATIONALLY HEADQUARTERED: Phoenix MANAGING PARTNER: Dennis I. Wilenchik NO. OF YEARS WITH FIRM: 25 YEAR ESTABLISHED LOCALLY: 1991 PRACTICES: Civil Litigation, White Collar Criminal Defense, Mediation
Wilenchik and Bartness provides complex civil and criminal litigation and mediation services to a select group of clients in the real estate, business, and construction sectors, with an emphasis on large and small business disputes. Martindale-Hubbell Rated AV® Preeminent™.
Contact Dennis I. Wilenchik at diw@wb-law.com
602-606-2810
www.wb-law.com ADVERTISING PROFILE
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Alden, Michael, 33
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LoBianco, Laura A., 51
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Frutkin, Jonathan, 55
Long, David, 12
Stibel, Jeff, 18
Clisham, Patrick A., 53
Gibb, Randy, Ph.D., 14
Macdonough, Bruce, 57
Tollefson, Richard, 34
Cocanower, Michael, 35
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Miller, Jon, 35
Treglown, Luke, 66
Coffman, D. Samuel, 22
Gilroy, Nathan, 32
Nash, Matt, 34
Villanueva, Cindy, 47
DeLapp, Jenny, 48
Good, Steve, 54
Regester, Sara, 46
Walsh, Brendan, 18
DeMarco, Craig, 26
Groen, Sarah, 12
Ritch, Joel, 20
Weiser, Paul, 52
Downer, Sherry Janssen, 22
Harrison, Tim, 24
Rizik, David, G., 24
Wilenchik, Dennis I., 59
Earhart, Phaedra, 41
Hufford, Lisa, 33
Romano, Mike, 20
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Engelman, David Wm., 53
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HonorHealth Scottsdale
Scottsdale Area Chamber of Commerce, 37
Women’s Alliance, The, 37 Affinity Technology, 64 Ahwatukee Foothills Chamber of Commerce, 37 Ak-Chin Indian Community, 16 Aligned at Work, 44 Alliance Bank of Arizona, 3 American Express, 18 APS, 5 Arizona Chamber of Commerce and Industry, 36 Arizona Commerce Authority, 36, 37 Arizona Diamondbacks, 21 Arizona Fire & Water Restoration, Inc., 43 Arizona Green Chamber, 36 Arizona Relay Service, 8 Arizona Small Business Association, 36 Arizona Technology Council, 35, 36 Association of Corporate Growth – Arizona, 36 Award Alley, 14 Banner Health Network, 67 Blue Mountain Restaurant Services, 12 Bolste, 14 Buchalter Nemer, 52 Business Marketing Association – Phoenix, 35
Shea Medical Center, 24
Chompie’s, 12
Sherry J. Downer PLLC, 22
CopperPoint Insurance Companies, 60
Hospice of the West, 24
Snell & Wilmer, 51, 68
Cuff, 40
Infusionsoft, 62
Solar Pool Technologies, 16
Cushman & Wakefield, 19
itSynergy, 35
SRP, 14, 15
DeMille Global, 48
JTiP, 66
State Bar of Arizona, 51
Desert Schools Federal Credit Union, 17
Kudelski Group, 20
Sundt Yates, 16
Dickinson Wright, 22
Lewis Roca Rothgerber Christie, 47
Sunvek, 16
Dimension 5, 14
Liquid Capital, 7
Thalden Boyd Emery, 16
Directions 4 Wellness, 46
Luci’s Urban Concepts, 26
ThinkSmallBiz, 62
Downtown Phoenix Inc., 63
Maricopa Community Colleges, 4
Tommy V’s, 40
Dun & Bradstreet, 18
Mayer Hoffman McCann P.C., 25
Uber, 12
Engelman Berger, PC, 53
Mayo Clinic, 32
Universal Technical Institute, 20
Ermeneglido Zegna, 38
MereStone, 39
University of Arizona, 34
Fennemore Craig, 8, 51, 54
Morgan Stanley, 17
Upward Projects, 26
Fidelity Charitable, 34
Mossack Fonesca, 66
Vermillion Photo, 63
Fox Restaurant Concepts, 11, 26
National Association of Women
Wilenchik & Bartness, 59
Frutkin Law Firm, The, 55 FSW Funding, 61 Gallagher & Kennedy, 50 Gallup, 32 Genuine Concepts, 26 Gilbert Chamber of Commerce, 36 Global Chamber Phoenix, 36 GPS Insight, 2 Grand Canyon University Small Business Consulting Center, 14 Greenberg Traurig, 57
In each issue of In Business Magazine, we list both companies and indivuduals for quick reference. See the stories for links to more.
Business Owners - Phoenix, 41 National Bank of Arizona, 37 NewSpring Pharmacy, 62
Wilkes University, 23 ZuZu, 40
Peoria Chamber of Commerce, 37 Persol, 38 Phoenix Children’s Hospital Foundation, 24 Phoenix Philanthropy Group, The, 34 Pinnacle Bank, 13 Progistics Distribution, 20 Protection Group International, 66 Ray-Ban, 38
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65 20AUG.1 6 INBUSINESSMAG.COM
A CANDID FORUM
BY
Employee Disengagement Underlies Saga of Sabotage The human story behind the world’s biggest data breach should be a cautionary example to management that employee disengagement can be a powerful negative force by Luke Treglown
Luke Treglown is an analyst and marketing executive with JTiP. His background is in psychology, with a specialization in scientific enquiry to understanding human risk, capability and threat in an organizational and intelligence setting. With JTiP, Treglown offers insight into how organizations can reduce disenchantment and the insider threat within their workforce. jtip.co.uk pgitl.com
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The recent arrest of a Mossack Fonesca employee in Geneva has called into question the motivations behind insider threats. Over the past four months, MF, a Panama-based law firm, has experienced two major breaches in data security. The first of these, dubbed the “Panama Papers scandal,” has broken records as the largest leak in history. In April of this year, 2.6 terabytes of private data were leaked under the uninspired pseudonym “John Doe.” To put the size of the leak into context, 2.6 terabytes would take just over 16 months to download on a typical home broadband connection. The data breach amounted to around 11.5 million documents, detailing the financially dubious activities of politicians, bankers and businesspeople. The reputational fallout from the leaks has been pervasive for those named in the documents. Geopolitical leaders have been pressured or forced to resign: Iceland’s Prime Minister resigned after political protests and oppositional pressure, while David Cameron was forced to defend his inheritance in Parliament after his father was named in the papers. MF vehemently ruled out the notion that an insider leaked the documents. Ramon Fonesca, one of the law firm’s founders, stated that it was a hack from an external source. According to the firm, none of its employees could possibly be behind such a scandal. Fast-forward to June 15th. A mere two months after the Panama Papers scandal was publicised, MF experienced a second data breach. An IT worker of MF’s Geneva office was arrested on suspicion of data theft, unauthorised access, and breach of trust. The big question surrounding the arrest still remains: Did the same person commit these breaches? Was the Panama Papers scandal an insider attack committed by one of MF’s IT workers? Perhaps the answer is not important. If “John Doe” was an external hacker, it is unlikely he would have had such a level of access without the help of an MF employee. If “John Doe” is the IT worker, then the man behind the world’s biggest data breach acted with the intention to sabotage the organization he worked for. Whatever the case, the take-home message for MF stays the same: As an organization, MF is fostering an environment that is increasing its vulnerability to an insider attack. Most insider threats are made, not born. Employees do not often join the world of work with overt intentions to steal from, damage or sabotage their organization. Instead, they are
jaded after a sequence of disenchanting events, leaving them cynical, angry, and driven to balance the scales. Disenchantment is not a solitary existence, but instead clusters around ineffective and damaging management practice. Managers account for nearly 70 percent of the reasons an employee is disenchanted. Organizations are often unaware of how their culture increases their vulnerability to the insider threat. Ramon Fonesca was adamant that the Panama Papers scandal was not instigated by one of MF’s employees. But what was the foundation of his certainty? Organizations often experience comparative optimism when it comes to insider threat: “This type of thing only happens to other companies, not to ours.” It is unlikely this is the only instance of MF employees intentionally harming their organization; it is merely the biggest and most public. Employee deviance does not solely represent such large-scale events that captivate our newspaper headlines. They range from small acts of deviance — arriving to work late, leaving early, and intentionally doing work wrong — to more costly endeavours — fraud, theft, and sabotage. Disenchantment ebbs away at organizations’ productivity, efficiency and profitability. Identifying where insider threat might emerge is not a witch hunt. It is not about scouring staff to root out malevolent individuals. It should be an inquisitive self-reflection into how a business’s organizational culture and management practices may be causing resentment and disenchantment among its workforce. Only by identifying and rectifying the source of disaffection can an organization remedy its internal vulnerability and bolster its personal security.
The Harvard Business Review reported that an Interact/Harris poll found more than half of respondents said their biggest complaint was their bosses didn’t have time to meet with them in person (52%) while a similar percentage (51%) said their bosses refused to speak to them at all. hbr.org
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