August 2022 issue of In Business Magazine by InMedia

AUG. 2022

Unconscious Bias: Symptoms and Solutions

Sustaining

Profits The environment and its challenges are driving business success

Preparing

for Continuity

Past Disruption Tough Talks This Month’s Guest Editor

Joy E. Seitz

Owner and CEO American Solar & Roofing

with Employees Some

BANKRUPTCY

Options

$7.95 INBUSINESSPHX.COM

THIS ISSUE Global Chamber

In Arizona, small business is a big deal.

The Arizona Commerce Authority offers a wide range of programming to support entrepreneurs and small business owners. Find tools to help launch, operate and scale your business with our online, interactive Small Business Checklist. View webinars in our Small Business Boot Camp to help you master everything from finances, to leadership, to business plans. If you want to improve your digital footprint, our Small Business Digital Academy offers hands-on training to help grow your presence online. Plus, we’ll connect you with fellow Arizona business leaders who can share valuable insights and growth strategies to help you find success. Whether you have questions about getting started or you’re looking for a strategic plan to take your business to the next level, we’re here to help.

azcommerce.com/small-business

YOUR COMPANY’S ENERGY USAGE COULD ACTUALLY EARN YOU MONEY. SRP’s Business Demand Response (BDR) program pays participants to reduce energy use temporarily in response to peak conditions on the grid! By participating, your company can earn payments without sacrificing operational reliability, which helps strengthen the grid and increase sustainability efforts. This could mean anything from rescheduling required maintenance to shutting off nonessential equipment when called upon and could result in significant earnings.

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Our exclusive BDR provider, Enel X (formerly EnerNOC), works with customers to develop custom energy reduction strategies designed to minimize disruption in your facilities and maximize your program earnings.

To learn more about the program and all of the benefits, in addition to monetary payments, contact Eric Chang at eric.chang@enel.com or visit srp.net/BDR

AUGUST 2022

COVER STORY

GUEST COLUMNIST

Biased? What We Don’t Know Can Hurt In and Out of the Workplace With a personal experience as her starting point, De’Shay discusses unconscious, implicit bias — source and consequences, and opportunity to advance DEI.

Strunk Insurance Group – A Legacy of Giving This month spotlighting Strunk Insurance Group, Tyler Butler’s series explores the myriad ways businesses give back and the positive ways their programs impact our community.

From an overabundance of sun to an underabundance of water, the natural environment has become the elephant in the room for the business community. But In Business Magazine spoke with many who see it as big opportunity — for end products such as electric vehicles, transformative items along the supply chain, and choices in the way of doing business.

FEATURE

Disruption & Continuity – Preparing the Business Response

Diane Thomas examines how companies can make business continuity planning their ace in the hole.

Tough Talks – How to Have Difficult Conversations with Employees

Dr. Tricia Groff explores strategies for getting past the hesitation and awkwardness.

DEPARTMENTS

Guest Editor

Joy E. Seitz, owner and CEO of American Solar & Roofing, introduces the “Environmental Economy” issue.

Feedback

Sherri Barry, Dr. Tricia Loscher and Jack Nagy respond to In Business Magazine’s burning business question of the month.

PARTNER SECTION Global Chamber® Events

SUMMER 2022

globalchamber.org/events

At Global Chamber®, we have many signature events coming up this summer, fall and ongoing.

Briefs

“Virtual Assistants Are Changing the Remote Worker Landscape,” “Dailies Top Stories,” “Local Standouts Recognized for Philanthropy,” “Fennemore Continues Its Western Expansion” and “Two Restaurants Coming to Downtown Mesa as the City’s Revitalization Continues”

GLOBAL CHAMBER®

By the Numbers

by Alicia Dominguez Women in Global Leadership – These are signature events at Global Chamber, ongoing from our early days, spotlighting women leaders and their challenges and opportunities. International State of the Metro – Discussing how well a region is becoming more global, including with exporting, foreign direct investment, immigration and more. Grow Globally Fair – All the global business resources for a region, all together, one time per year, to assist those leading global growth activities including exporting. Export League – We spotlight members who are exporters to get their take on the challenges and opportunities and help them find new clients in new markets. Young Global Leaders – We connect young global leaders looking to make more of a global impact with others in trade to increase everyone’s success. Global Innovation Summit – We give global leaders an opportunity to discuss their innovative approaches, to share success, and expand success to others. Global Logistics and Supply Chain – These are regular events that cover the evolving situation with ocean freight, air freight, resourcing products and more. Global Leadership – We discuss all aspects of business leadership, talent retention, leading extended teams, work from home and much more.

Photo courtesy of Global Chamber

Digital Transformation – Reaching clients is easier than ever through the internet and e-commerce, and we feature regular programming on taking your business direct. Equity, Diversity and Inclusion – Leaders doing global business share ideas and success with equity, diversity and inclusion, to increase fairness and success. On Clubhouse – Global Chamber has regular discussions on Clubhouse and on Zoom, on the topics of exporting, global business, foreign direct investment and more.

Global Is Good by Doug Bruhnke

“Global” doesn’t get the love that “local” does, but it should. Only 1 in 100 U.S. companies exports to global markets, where 85% of new business opportunities are. That means 99 out of 100 U.S. companies compete for only 15% of available opportunities. That results in only 12% of U.S. Gross Domestic Product being exports, whereas countries that embrace global and compete effectively have more than 50% of the GDP as exports, like Germany. What’s going on here? This doesn’t make logical sense because besides prosperity, global is just a good thing. Why? Thinking and acting globally in business and personally creates connectivity, prosperity and additional benefits for those who engage. Those benefits include advancing mutual understanding and common good. Global success requires ‘win-win’ thinking, not just one side winning, and leaders competing globally not only benefit from more market access, but they think differently and better, which helps them in home markets, too. Are Americans not as intelligent as Germans, or in some way naturally

disadvantaged to gain more success? I don’t think so, and as a German American, I’m looking at it from both sides! Geographically the U.S. is more logistically challenged for some markets, but not others. Germany has a few years head start in its government supporting exports. Both countries require to overcome the basic issue that “foreign” can be perceived as lost jobs, war, risk, et cetera, whereas “local” can feel good, close and safe. This is partially due to “proximity” bias, which encourages any of us to care more for things that are close by. We encourage everyone who is reading this to consider prioritizing their global approach, and gain more access, create more jobs and change the world for the better by becoming more engaged globally. We’ve started an initiative to encourage more leaders to access and gain the value from going global, and so to research, plan and grow globally, more successfully. Americans and good businesspeople anywhere are smart enough to do it, and Global Chamber is standing by to support achievement of more success. Continued on page 2

Alicia Dominguez is student at Thunderbird and a summer intern at Global Chamber.

GlobalChamber.org

Global Chamber

Sustaining Profits: The Environment and Its Challenges Are Driving Business Success

CFOs focus on mitigating risk and costs while tapping into the global talent pool.

Startups

“Why Do Many Startups/Businesses Fail Quickly?”

CRE

“Speed-to-Market Design,” “Mohr Capital Develops Industrial Project in Surprise,” “New North Scottsdale Luxury Community from Camelot Homes” and “IndiCap Bringing 110-Acre Industrial Park to Glendale” and “Surprise Power Center Development Powers over Challenges”

From the Top

Powering economic mobility and social impact for the next generation of Arizonans, NAU President José Luis Cruz Rivera champions access through the university’s campuses throughout the state.

Healthcare

“Holistic, Longitudinal Care for Chronic Conditions” and “Joint Venture Health Plan Delivers Results in the Arizona Market”

Technology

“Arizona Emerging as New Tech Hub with 25% Job Growth” and “Understanding Social Media for Business”

Books

New releases give fresh insights on business thinking.

En Negocios

Feature articles in Spanish and English on Liderazgo / Leadership, Finanzas / Finance, Estrategias / Strategies and Ventas / Sales

Economy

Steve O’Neill discusses a faster, more flexible and less expensive alternative to bankruptcy.

Legal

Carrie Tatkin discusses what the new law on Subchapter V and Chapter 13 debt-relief cases means for businesses.

Nonprofit

Although giving reached a new high last year, organizations need strategies to address the growing wealth divide.

Assets

2022 Lexus LC 500 Plus: Relax and regenerate with a calming headset.

Power Lunch

Phoenix City Grille: A Hidden Gem in the Heart of the Valley

Roundtable

Lisa Marrocchino advocates for investors to pay more attention to social enterprise companies.

AUG. 2022

INBUSINESSPHX.COM

Arizona’s economy has the third-most racial equality in the U.S., according to WalletHub’s State Economies with the Most Racial Equality report it released in June. wallethub.com/edu/state-economies-with-most-racial-equality/75810

Together, we’ll find new possibilities The health and well-being of your employees matters. UnitedHealthcare is here to help you guide them toward brighter days ahead. From finding new ways of controlling costs to connecting them with medical care and mental health support, it’s good to have a health plan that’s on their side — and in your corner.

Learn more at uhc.com

Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan coverage provided by or through UnitedHealthcare of Arizona, Inc. B2B EI211205447.0 12/21 © 2021 United HealthCare Services, Inc. All Rights Reserved. 21-1202769-A

Words

OUR CONTENT CREATORS

Aug. 2022

VOL. 13, NO. 8

RaeAnne Marsh Editor, In Business Magazine RaeAnne Marsh became editorial director of Phoenix-based InMedia Company in 2010 and helped launch Valley-wide business resource In Business Magazine. Her journalism career began more than 20 years ago, when she left California and 12 years of teaching to transplant in Phoenix’s vibrant entrepreneurial environment, and includes incorporating her own business, Grammar & Glitz, Inc., through which she has taken writing and editing gigs with business and media clients nationwide. Holding the magazine to strong editorial standards, she says, “New businesses are founded, out-of-staters bring new strengths, established businesses evolve and expand — all of which contributes to the dynamic vitality that I see as the mission of In Business Magazine to be the voice of and vehicle to nurture, in each monthly edition. It is my challenge to ensure each edition is packed with relevant information on a broad spectrum of issues, aimed at a readership that runs the gamut from entrepreneurial startup to major corporation.”

Publisher

Rick McCartney

Editor

RaeAnne Marsh

En Negocios Editor Web Editor Graphic Design

Edgar Rafael Olivo Jake Kless Benjamin Little

CONTRIBUTING WRITERS Randall Averitte

Crystal Jennings

Jon Brodsky

Christina Johnson

Tyler Butler

Merilee Kern

Jack Diehl

Lisa Marrochino

Edgar R. Olivo

Joanna De’Shay

Steve O’Neill

Editor, En Negocios

James Goodnow

Joshua Simon

As editor of the Spanish section of In Business Magazine, Edgar R. Olivo shares weekly content for Spanish-preferred small-business owners in Phoenix. As a first-generation Latinx and native-Arizonan, Olivo’s upbringing was filled with similar challenges that Latino communities in Arizona face when they engage with the economy. An entrepreneur and nonprofit executive, he is leading the charge to help strengthen a diverse, inclusive and sustainable entrepreneurial ecosystem in Arizona. His work is nationally recognized for establishing programs that help advance equitable economic recovery, and increase generational wealth for Latinx/Hispanic small business owners in Arizona. “I believe today is a moment for leading big change. Business ownership is a critical means to build community and individual wealth. I hope my work will demonstrate to the Latino community that the entrepreneur ecosystem in Arizona has their back.”

Guest columns are feature articles presented as a special, limited series as well as regular, ongoing series in In Business Magazine.

Tyler Butler

Dr. Tricia Groff

Molly Cerreta Smith

Tom Grote

Carrie Tatkin

Jacob Hess

Diane Thomas

Mike Hunter

Richard Tollefson

ADVERTISING Operations Louise Ferrari Business Development Louise Ferrari Cami Shore Events

Amy Corben

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

Guest Columnist – Social Impact

A long time corporate social responsibility practitioner, Tyler Butler is known for her expertise in creating, launching and developing successful social impact programs. Her commitment to rallying people together to make a positive difference has created sustainable signature programs empowering people to give back in a myriad of ways globally. Butler operates under the ethos of “each one teach one,” and so her contributions to In Business Magazine provide her with an outlet to share the best of what companies are doing to aid humanity. Butler looks to shed light on good corporate citizens and share stories about the magic they are creating through their generous outreach efforts.

Joanna C. de’Shay

Guest Columnist – DEI

Joanna C. de’Shay is executive director of Diversity Leadership Alliance, the premiere education training organization in Arizona dedicated to eradicating racism, bias and prejudice. DLA’s goal is to create an inclusive community where each person is equally respected and empowered. De’Shay is an avid servant leader who was born in Accra, Ghana, on the western coast of Africa to a Nigerian father and a Russian mother. An immigrant herself, she believes in being a part of the solution to disrupt systems and is on a mission to create bridges and partnerships by educating companies, nonprofits and educational organizations on the vital need for diverse voices and fresh perspectives.

Don Henninger

Guest Columnist – Metro

As a 35-year newspaper veteran in Arizona, Don Henninger has always made journalism his passion as well as his career. Facts matter — especially in this day and age — and information is the foundation that enables citizens to be positive participants in their communities at all levels. Henninger has been fortunate to serve as a community leader and continues in that role today as director of the Scottsdale Coalition of Today & Tomorrow, which convenes leaders to work on issues in that city, and as a member of several nonprofit boards in the Valley.

Bruce Weber

Guest Columnist – Capacity

Bruce Weber sees In Business Magazine as a valuable forum for topics relevant to our business and nonprofit community. “I am deeply interested in organizational capacity and what makes organizations successful and impactful in the work they do. In my work in the community for more than 16 years, I have worked with all sizes of organizations and leaders in helping their businesses grow and expand their impact. My previous careers with Microsoft and Hewlett Packard involved working with business

President & CEO Editorial Director Financial Manager Office Manager Accounting Manager

Rick McCartney RaeAnne Marsh Tom Beyer Allie Schimmel Todd Juhl

Corporate Office InMedia Company 45 W. Jefferson Street Phoenix, AZ 85003 T: (480) 588-9505 info@inmediacompany.com www.inmediacompany.com Vol. 13, No. 8 In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 45 W. Jefferson Street, Phoenix, AZ 85003. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 45 W. Jefferson Street, Phoenix, AZ 85003 or visit inbusinessphx.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/ or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. ©2022 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by any means without written permission by the publisher.

integration partners to design strategies to engage new markets. In today’s complex world, I enjoy exploring the possibilities and opportunities that change can bring.”

Our guest columnists are taking a break this issue. More to come from them in coming months.

AUG. 2022

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Aug. 2022 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

National Average Account

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

Stearns Bank Account

Why not choose more?

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

Our already-above-average interest rates just got even better. So, you can earn even more. It’s your choice.

Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org

Checking | Market Savings | CDs Learn More,Visit StearnsBank.com /Phoenix

Ania Kubicki , President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org

Member FDIC | Equal Housing Lender

Colin Diaz, 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@inbusinessphx.com.

ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com Arizona Hispanic Chamber of Commerce azhcc.com The Black Chamber of Arizona phoenixblackchamber.com Chandler Chamber of Commerce chandlerchamber.com Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Equality Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com Phoenix Metro Chamber of Commerce phoenixmetrochamber.com Scottsdale Area Chamber of Commerce scottsdalechamber.com Scottsdale Coalition of Today and Tomorrow (SCOTT) scottnow.com Surprise Regional Chamber of Commerce surpriseregionalchamber.com WESTMARC westmarc.org

AUG. 2022

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JOY E. SEITZ, AMERICAN SOLAR & ROOFING

Environment: Challenge & Opportunity

Joy E. Seitz is the CEO and owner of Phoenix-based American Solar & Roofing. For more than a decade, she has been advocating in both Arizona and Washington, D.C., to advance the solar industry and accelerate solar adoption as we transition to a clean energy future. Her company, American Solar & Roofing, has been a leader in Arizona residential, grid-tied solar installations for more than 21 years.

Is it business vs. Mother Nature? The better question is, “What are the new pathways to economic success?” Turns out, Mother Nature offers an abundance of opportunities for businesses innovative enough to recognize appropriate prospects. For example, as a national leader in solar power, Arizona has the potential to become one of the country’s largest exporters of clean, renewable energy. This is no longer a nascent idea waiting on data and technology to be viable. Continued investment in clean energy infrastructure - at all levels - saves Arizonans money, strengthens our grid, and creates more high-paying jobs. Another opportunity is the electrification of vehicles in all sectors, including business. This transition, in conjunction with on-site solar, is a win for companies, employees, and their customers. Imagine pulling into a covered parking space at work and charging your EV with the solar power system shading your space! Employees want to work for companies investing in clean technology and customer awareness of a company’s contribution to a cleaner future, or lack thereof, can be a deciding factor in their patronage. The cover story this month explores the economic benefits in sustainability through a variety of responses from businesses across the spectrum, from those providing products that enable further sustainable advantages to those that are incorporating significant sustainable options into their operations. And, as other experts share in this article, technology promises further sustainability opportunities in the future. A more equitable future is the topic Joanna De’Shay address in her feature article “Biased? What we don’t know can hurt in and out of the workplace.” With a personal experience as her starting point, De’Shay discusses unconscious, implicit bias — source and consequences and opportunity to advance DEI. Among this edition’s other significant features are “Tough Talks: How to Have Difficult Conversations with Employees,” in which Dr. Tricia Groff offers suggestions to get past the all-too-common hesitation and awkwardness, and “Disruption and Continuity – Preparing the Business Response,” in which Diane Thomas discusses businesses’ need for a proactive approach to ensuring their ability to continue to deliver their products or services following a disruptive event. As in each edition of In Business Magazine, content includes business-relevant topics in Economy, Legal, Healthcare, Technology, and Commercial Real Estate, where to share a table for a Power Lunch and an insightful From the Top business profile. I’m pleased to have been able to contribute to the cover story and help bring this August edition to you. Enjoy the read.

EN NEGOCIOS Manténgase informado sobre temas empresariales en español a través de En Negocios, artículos para los lectores de habla hispana en el área metropolitana de Phoenix. Visite inbusinessphx.com/ ennegocios para más información. Stay informed on business topics in Spanish through En Negocios, articles for Spanish-speaking readers in the Phoenix metropolitan area. Visit inbusinessphx.com/ ennegocios for more information.

Sincerely,

Joy E. Seitz Owner and CEO American Solar & Roofing

Economic Climate No, not that climate, the one that is changing for the worse. As

We are so pleased to have Joy Seitz as

we look at how sustainable our ways of business are, we must

this month’s Guest Editor. Her breadth of

also look at being a sustainable business when it comes to natural

experience in this space and her company’s success makes her the

resources. More and more companies in Arizona are innovating new

perfect person to lead this issue on the environment and profitable

ideas and services that seek to improve outcomes for resources

business here in the Valley. While we have merely scratched the

like power and water. There are so many areas of business that are

surface, those involved in this month’s cover story truly deserve

succeeding in strategizing sustainability — like solar and electric

to be congratulated on doing great things for Arizona’s future.

vehicles, but also recycled materials for construction, policies that

—Rick McCartney, Publisher

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

Photo courtesy of

achieve net zero carbon footprint and more.

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AUG. 2022

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SPEAKING OUT

What results have you realized from environmental sustainability measures you’ve put in place?

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

SHERRI BARRY

DR. TRICIA LOSCHER

JACK NAGY

Owner and CEO Arizona Fashion Source, LLC DBA The Fashioneer Sector: Fashion

Assistant Museum Director – Collections, Exhibitions, and Research Scottsdale’s Museum of the West Sector: Arts

President MTA360 Sector: Marketing

The Fashioneer was created as a sustainable, technology-driven alternative to traditional apparel manufacturing. This alternative allows fashion brands to create fashion in way that is most considerate of humanity and the environment, reducing the environmental impact wherever possible. Substantial technology investments were made to create this sustainable solution. These include a digital, roll-to-roll fabric printer, which employs zero water waste; computeraided design and resource planning software; and an automated cutter. This technology allows us to take the brand’s personalized print, engineer it into their patterns, create a 3D rendering (no physical samples required); print on demand; auto cut the printed pattern; sew, pack and ship the brand’s order direct to their customer. These investments to create a sustainable business model has resulted in attracting exciting new clients, created the ability to personalize and customize products, provided new revenue streams, reduced waste, reduced costs, garnered media attention, and nurtured our corporate culture of environmental responsibility.

Scottsdale’s Museum of the West is dedicated to telling stories of the Western Spirit to “illuminate the past to enlighten the future.” We tell stories of the past and bridge to today and the future, and a great story of today’s West can be seen in our sustainable building that houses the museum’s various always-rotating collections. The building is LEED® Gold certified and has exciting “green” features that reduce energy consumption by 38% and water savings by 40% — two immensely important aspects of any business today based in the West. Key features include our outdoor sculpture courtyard’s “weeping wall,” which collects rainwater from the roof and 100% of the condensation from the HVAC system and redistributes the water via a bioswale to our low-wateruse landscaping. The building has selfshading features such as the concrete ribbing on the museum’s façade that mimics the ribs of the saguaro cactus and provides “passive” vertical shade cross the building’s exterior. Our building is a true work of art!

The Fashioneer thefashioneer.com

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

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The struggles of manufacturing her own fashion brand sustainably and profitably ignited Sherri Barry’s passion for creating a better, 21st century resource — a place where digitally native designers and brands can create, sell and manufacture. In 2021, Barry launched The Fashioneer so designers and brands could utilize state-of-the-art technology to design, print, cut, sew and ship on demand.

Scottdale’s Museum of the West scottsdalemuseumwest.org Tricia Loscher, Ph.D., is assistant museum director of Collections, Exhibitions and Research at Western Spirit: Scottsdale’s Museum of the West. She has been the museum’s chief curator since 2014. She earned her doctorate in art history with a minor in Latin American art at University of Arizona.

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

Out of necessity, we became a virtual company during the pandemic and strategically made the decision to remain that way, which is delivering significant sustainability benefits. We have 100-plus team members — from creatives and graphic designers to digital marketing experts and client services professionals — across the nation working from their homes in three different time zones. We effectively leverage today’s collaboration technology, including Zoom (video, messaging and phone), Dropbox and Google drive-based library for digital assets to meet the Google SEO needs of our thousand-plus home improvement/HVAC clients nationwide. Key sustainability benefits of this move include the fact that our associates aren’t driving to work, reducing fuel consumption, and we aren’t using energy to run office spaces. We have progressive programs in place, too, for our associates whereby MTA360 pays for all their in-home office equipment, as well as Wi-Fi and other services our associates use from their home office to do their jobs. We even send our team members and clients group lunches to foster the camaraderie that formerly took place in our offices. MTA360 mta360.com Jack Nagy is president of MTA360, a leading digital marketing agency and a virtual company that used to have its headquarters office in Scottsdale and additional offices in Jacksonville and Tampa Bay, Florida; and Buffalo, New York. A pioneer in the social media marketing industry, Nagy has more than four decades of experience in the industry, and is a leader in digital marketing, training and advertising.

QUICK AND TO THE POINT

DAILIES TOP STORIES

‘In Business Dailies’ Most Views Last 30 Days Here are the stories with the most views over the past 30 days (prior to press time) that were features in our In Business Dailies. The In Business Dailies hit email inboxes twice each weekday — at 9:30 a.m. and updated at 4:30 p.m. Sign up today at www.inbusinessphx.com/dailies-signup Economy & Trends | Cover Story | July 2022

Are You Game? How Gaming and Sporting Events Are a ‘Big Win’ for Our Economy by RaeAnne Marsh Gaming and sports have gone together for a long time; the new trend in sportsbooks brings it out of oddsmakers’ back rooms and into prominent display.

Virtual Assistants Are Changing the Remote Worker Landscape As more companies move away from physical workplaces to embrace hybrid to fully remote structures, the demand for virtual assistance is increasingly on the rise. In fact, Gartner predicts that by 2025, 50% of knowledge workers will be employing virtual assistants on a daily basis. Virtual assistants are independent contractors who offer a vast number of services to businesses remotely. Because they come with different skills and specializations, they are a particularly flexible solution for businesses that need help with a specific function or department or need someone to handle multiple responsibilities at once. Proving to be an efficient, adaptable and cost-effective benefit, virtual assistants can aid businesses across various industries — including healthcare, finance and communications — in achieving their goals. One of the primary benefits of virtual assistants is they are available to address tedious, repetitive tasks such as bookkeeping, appointment scheduling, monitoring email correspondence, social media management and recruiting, freeing up time to focus on more high-value tasks. By making more time available, virtual assistants allow organizations to focus their energy and make strides on critical projects. There is also the benefit of increased efficiency in work production due to a limited amount of distractions and the ability

to schedule work time when it is best for the assistant. Introducing a virtual assistant to the business to handle data entry, schedule management and take care of accounting also frees up attention for more collaboration and creative pursuits. With a virtual assistant available, businesses work to create space for employees to thrive by ensuring they don’t take on too much responsibility but, instead, are able to focus fully on the specifics of their role. Virtual assistants can also widely reduce employer costs, saving businesses 50 to 70 percent on average. Because virtual assistants are independent contractors, businesses have the opportunity to hire for long-term service or project-related tasks, giving them flexible options that can decrease staffing costs. The pandemic has shown that it is possible to maintain, and even accelerate, success by working virtually. Virtual assistants provide a cost-effective and efficient solution to managing the digital workplace and can provide flexibility and targeted expertise to help businesses adapt to and succeed in a remote work style. —Randall Averitte, president and CEO of Scottsdale-based Remote Raven (hireremoteraven.com), an affordable and flexible staffing company that connects business owners with highly qualified remote workers to quickly fill positions

“With nearly $2.8 billion wagered, the positive economic boosts from regulated sports wagering have been vast and should only trend upward as the market matures,” says Christopher Boan, analyst with BetArizona. “Sports wagering has contributed than $8 million to state coffers, bolstering the economic impacts of COVID-19.” Leadership & Management | Roundtable | July 2022

Brainstorming – Is Online or InPerson More Creative? by Susan Robertson The short answer? BOTH. Or NEITHER. It’s solely dependent on how the meeting is structured and managed. Commercial Real Estate & Development | Guest Columnists | July 2022

The Future of Work: Dynamic Environments by Rory Carder

As we think about the future of work, we know we’re not going back to the old ways of doing things. We have an opportunity to explore new possibilities, bringing the best of how we worked during the pandemic to work better post-pandemic. We can imagine a new workplace ecosystem that puts the focus on what’s best for individuals and teams based on how they do their best work. Leadership & Management | Feature | July 2022

Succession Planning: Preparing for the Expected or Unexpected by Jeff Friesen With an aging population of baby boomers in ownership roles, succession planning has become an ongoing priority. Although some of the activities were paused due to uncertainties related to the pandemic, the ideas have been brought back to the table with interest rates remaining relatively low and liquidity relatively available to deploy.

In order to see where employers are struggling the most in hiring, WalletHub compared the 50 states and the District of Columbia based on the rate of job openings for both the latest month and the last 12 months. At No. 43 on WalletHub’s 2022’s States Where Employers Are Struggling the Most in Hiring, Arizona comes out in the top 10 of states struggling the least. wallethub.com/edu/states-employers-hiring/101730

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QUICK AND TO THE POINT

LOOKING GOOD

Local Standouts Recognized for Achievements and Philanthropy PHILANTHROPY

Taylor Morrison Helps Provide Essential Needs Locally based homebuilder Taylor Morrison and HomeAid’s Phoenix division joined forces earlier this year in a charity drive called “Seats & Feet” to collect sock and underwear donations benefitting neighbors in need — essential and high-need yet least donated items for those experiencing homelessness. Taylor Morrison’s Phoenix office donated 1,000 total pairs of socks and underwear. taylormorrison.com • homeaid.org

Babbo’s Day of Giving Raises $105,634 Babbo Italian Eatery celebrated its 20th anniversary on April 7 with the grand opening of its Goodyear location and a Day of Giving to benefit the Seena Magowitz Foundation, a nonprofit committed to the awareness, prevention, and cure of pancreatic cancer. All Babbo locations donated 100% of that day’s profits, and funds were matched by the local family-owned business as well as by Roger E. Magowitz personally. babboitalian.com • seenamagowitzfoundation.org

Arizona Federal Focuses Philanthropy Hyper-Locally Nine nonprofits received grants recently from Arizona Federal Credit Union through the hyper-locally focused Local Causes Visa Debit Card program it launched in 2020. Unlike the other rounds of funding, representatives from Arizona Credit Union’s employee resource groups participated in the selection of the Local Causes recipients, allowing employees the chance to participate directly in the impact Arizona Federal makes. arizonafinancial.org

TruWest Donates Supplies-Filled Backpacks TruWest Credit Union continues to be a dedicated partner in education through the support of K-12 schools and universities throughout the local community. As part of its recent annual school supply backpack drive, TruWest employees delivered 96 backpacks filled with supplies to students at Galveston Elementary School in Chandler, Arizona. Additionally, 30 laptops were donated to the school for student use. truwest.org

Larry H. Miller Dealerships Support Food Banks With the price of groceries soaring, local food banks are feeling the strain, and anticipate back to school expenses next month being especially difficult on families who are already stretched financially. In response, Larry H. Miller Dealerships has kicked off its second annual monthlong “Food Fuels Learning” campaign, to support the after school and weekend food programs at St. Mary’s Food Bank in Phoenix and the Community Food Bank of Southern Arizona in Tucson. lhmauto.com

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Fennemore Continues Its Western Expansion Fennemore is continuing its strategic Western expansion, combining with the San Francisco Bay Area’s Wendel Rosen LLP. The tie-up puts Fennemore on track to crack the Am Law 200 list, a ranking of the 200 top-grossing U.S. law firms, in 2022. The combination, which became effective July 1, will create a firm with approximately $140 million in annualized gross revenue. In all, 56 attorneys and 45 allied legal professionals from Wendel will join Fennemore, bringing the firm’s total roster to 250 attorneys across the Western United States. The combined firm will be called Fennemore Wendel in Northern California and Fennemore across the rest of its footprint in Arizona, Southern California, Colorado and Nevada. The Bay Area represents one of the largest technology and business centers in the world. Together with the team from Wendel, Fennemore will work to help its clients capitalize on this region’s phenomenal economy. Fennemore’s move is consistent with the firm’s

core strategy to go where businesses and people are moving while becoming a key legal services provider in the areas of real estate, land use, litigation and trusts & estates. In 2021, Law.com named Fennemore the fastest-growing BigLaw firm in the country. Over the last two years, Fennemore has completed three other major onboardings that include a merger with the Central Valley California firm Dowling Aaron, the addition of the Reilly LLP litigation team in Denver and a mass lateral hiring of approximately 50 attorneys and allied legal professionals in Southern California. Fennemore’s march forward is supported by a commitment to technology and a client-centric and people-first culture as evidenced by the firm’s 96% job satisfaction rating among all employees. The firm’s industry-leading 91.4% year-over-year attorney retention figure stands in stark contrast to the headcount loss of other firms during the “Great Resignation.” —James Goodnow, CEO at Fennemore (www.fennemorelaw.com)

Two New Restaurants Coming to Downtown Mesa as the City’s Revitalization Continues As Arizona’s third-largest city, Mesa is known for its charm, diversity and affordable high standard of living. Downtown Mesa has experienced a renaissance with the introduction of light rail service, redevelopment of its historic core, and the new Arizona State University Campus at Mesa City Center. Located within a federal qualified opportunity zone, Downtown Mesa has become an increasingly attractive location for real estate and business investment. Opportunity Zone funds provide investors with diversified exposure to real estate projects that are impactful to the local communities and the potential for significant tax benefits. Scottsdale-based CaliberCos Inc., an Opportunity Zone investor, announced the leasing of two more of its properties in Downtown Mesa as part of the Company’s ongoing redevelopment efforts in the city. Level 1 Arcade Bar will be moving into 48 W. Main Street, bringing a family-friendly environment for all ages to enjoy a retro arcade experience along with a full menu and bar. In addition, Copper City Spirits will occupy 155 W.

Main Street. The restaurant’s owners operate another location in Tempe, under the name AZ Distilling Co., which is known for its locally sourced products and award-winning spirits, including Copper City Bourbon, the first legally produced bourbon in Arizona. “Mesa is a vibrant, dynamic city and these new businesses will be well supported by its booming population growth. We’re proud to be part the redevelopment efforts in Mesa, which are providing our investors with the opportunity to invest in meaningful, high-impact projects with competitive returns,” says Chris Loeffler, chief executive officer of Caliber. Caliber began acquiring several buildings in and around Downtown Mesa in 2017. Today, the Company is developing 10 buildings and approximately 160,000 square feet of mixeduse space. These projects are all part of Caliber’s Opportunity Zone Fund and are central to the redevelopment of Downtown Mesa. —Mike Hunter CaliberCos Inc. caliberco.com

SmartAsset released a study of the places experiencing the most growth in their local economy. According to the analysis, Maricopa County ranked among the top places for GDP growth in Arizona from 2020 to 2021. smartasset.com/investing/investment-calculator#arizona/gdpGrowth-1

METRICS & MEASUREMENTS

CFOs Share Globalization Plans and Concerns The aim is to mitigate risk and costs while tapping into the global talent pool by Globalization Partners

Among CFOs, there is near universal agreement that the ability to capture market share through global expansion is a hot button for their industry and their stakeholders. However, mounting concerns over rising wages, talent and international affairs are causing companies to rethink their globalization strategies. According to data drawn from the fourth annual CFO survey conducted by Globalization Partners and CFO Dive in spring 2022, nearly half of CFOs report that recession and inflation pressures are impacting their global expansion plans. Yet, despite these rising concerns, 83% of CFOs say their companies’ long-term growth strategies include potential (or ongoing) growth into countries where they do not currently operate. A total of 260 CFOs across APEC, AMEA and North America participated in the research, all of whom work for organizations with more than $100 million in revenue (with two out of five working for organizations with more than $1 billion in revenue). The results give us a view to emerging global themes, including how CFOs plan to mitigate risks and leverage opportunities. An emphasis on international expansion is at the heart of the findings and is cited as a way to mitigate risk and costs while tapping into the global talent pool. At the survey close, most CFOs said they are still moving forward with globalization and remain surprisingly bullish on growth. In fact, 83% say their long-term plans will stem around expansion into new countries (up by 2% from 2021). The data revealed that the key focus area for this international expansion is the United Kingdom, with one out of three CFOs (33% in the next 12 to 18 months and 37% over the next five years) making plans for the UK. This is followed by the Asia Pacific region, North American region and the European Union. While CFOs are looking to expand their borders into these areas, none of these regions is safe from global concerns like inflation pressures and talent retention. While there is clearly some uncertainty among CFOs, there’s also the opportunity to expand strategically and turn resistance into resilience, which includes capitalizing on international growth. International expansion often requires a partner that can smartly and swiftly help companies establish a borderless workforce. Partnering with an Employer of Record (EOR), for example, is a highly sought-after strategy for the overwhelming majority of CFOs. More than nine out of ten CFOs (93%) agree that having a go-to resource like an Employer of Record to support global talent management in the face of uncertainty would be

something stakeholders in their organizations would consider. Other tactics include workplace flexibility, with an emphasis on remote-first work, benefit expansion, learning and development opportunities and enhanced recognition schemes.

Key concerns for CFOs in 2022 Hiring & Talent Retention • More than seven out of ten CFOs (72%) are concerned about wages rising to stay competitive. • Almost nine out of ten CFOs (88%) agree that the Great Resignation and retaining current employees is a chief concern for key stakeholders in their organizations. Human Capital Management • More than four out of five CFOs (83%) agree that human capital/talent issues that come with hiring talent globally, such as setting up foreign subsidiaries, managing unfamiliar international HR, and payroll processing, are burdensome to business administration and management. Global Disruption & Inflation Pressure • Well over half of CFOs (56%) say the COVID-19 pandemic is the global disruptor that has had the most impact on companies’ growth goals over the last year. • Other global disruptors that are said to have had the most impact on companies’ growth goals are: ∘ Global affairs (12%)

∘ Economic uncertainty (11%) ∘ Talent shortages (10%)

∘ Supply chain disruption (7%)

• Three out of ten CFOs (29%) say the biggest challenge impeding their companies’ international expansion over the next 12 to 18 months is inflation pressure. Still Positive on Growth Opportunities • More than two out of five CFOs (45%) say that their companies are in an accelerated growth mode, versus only 40% who said the same thing in 2021. • Fifty-four percent of CFOs believe their companies will exceed goals and expectations in 2022. Source: https://bit.ly/gpartner-inflation-concerns

More than four out of five CFOs (83%) agree that human capital/talent issues that come with hiring talent globally are burdensome to business administration and management.

Globalization Partners provides employers with the ability to hire international talent quickly and easily. Its AIdriven, automated, Global Employment Platform™ is supported by its in-house, worldwide human resources experts. globalizationpartners.com

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ENTREPRENEURS & INNOVATORS

Why Do Many Startups/Businesses Fail Quickly? Pitfalls to navigate for success by Jack Diehl

Across the country, many people are leaving their jobs and starting their own businesses. People may want to start their own business to follow their passion, have control over their lifestyle and schedule and pursue financial independence. However, according to Entrepreneur.com (“The True Failure Rate of Small Businesses”; January 3, 2021), the failure rate of small businesses remains high: 20% fail within the first year, 50% after five years, and 70% go under after 10 years.

ENTREPRENEURS NOT DOING THE NECESSARY RESEARCH FOR THEIR MARKET Any upcoming businessperson should be making sure they diligently research their target consumers and additional audiences before beginning public operations. Knowing the local or regional market is crucial to sales, growth and workforce availability. If the business is slated to be a brick-and-mortar, the location should be highly visible and easily accessed by foot so there’s a better chance that the community will interact with the brand. In addition to knowing the local or regional market, businesspeople need to analyze what is happening across their supply chain. For example, if the United States is experiencing a gas/energy price spike, starting a trucking business or a delivery business that uses lots of petroleum may be bad timing and result in failure.

HIRING THE WRONG PEOPLE

Hiring a group of people can be easy, but business owners need to make sure that team members are experts in the market they are going into. The hiring team should diligently review applications and have steps in the interview process that determine if the candidate has the introductory knowledge needed to succeed in the role. They should reach out to an applicant’s previous employer for a reference. Also crucial to success is the cohesion and loyalty between team members. Results are driven by compatibility and capability. Jack Diehl is president of Association for Entrepreneurship USA, which serves independent and small business leaders across all 50 states through community involvement, peer mentoring and education, and an opportunity to join forces for greater purchasing power. afeusa.org

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SPENDING A HIGH BUDGET FROM THE START

Financial challenges are a top cause contributing to the rapid decline of a business. Business owners should know their daily costs to run their business and how much is needed to break even. Most entrepreneurs are aware of their daily operational costs like rent, overhead expenses and payroll. Funding becomes an issue when there is a disconnect between how much revenue is created from sales and the daily operational expenses. Soon after, debt begins to rise, and the shortfall leads to a shuttered business. Financial shortfalls could also stem from not properly pricing services and products. Businesses that leave prices too low

Businesspeople must identify how to meet their customers’ needs by analyzing the current market and understanding what they are spending money on.

for too long will spend more money on production costs and delivery, not matching what is being generated in revenue, leading to a potential shut down. Finally, business owners must be on top of paying payroll taxes. If this is backed up, the government can garnish their bank account, which could put other bills in jeopardy.

IMPROPER MARKETING STRATEGIES

No matter what product or service a businessperson plans to sell, marketing is a crucial step to the success of the concept. Owners should hold off on hiring an in-house marketing staff when launching to keep the overall budget down and focus on growing sales, not debt. Hiring freelancers or an external agency early on is cost-effective and short term, giving the business more flexibility. It is also helpful to study the competition and how they are effectively using social media to reach out to their audience. Other examples of improper marketing strategies include not creating and growing a website, ignoring search engine optimization methods and targeting the wrong audience.

FAILING TO PUT THE CUSTOMER FIRST

Entrepreneurs can have a well-rounded business plan and budget, but if placing the customer first isn’t part of it, they could see a possible decline in sales. Businesses have a moderate chance of failure if they focus too much on the product and not enough on the wants of the customer, who generates sales and external growth. Businesspeople must identify how to meet their customers’ needs by analyzing the current market and understanding what they are spending money on. Entrepreneurs should spend their energy turning the customer into a fan of the product or service. Repeat business and purchases drive at least 20 to 40 percent of average sales. Therefore, a high Google review is important. Business owners should be open to providing refunds or a free service/product if they receive a negative review to remedy the situation. There are going to be many challenges during the first year of business, so it’s important the entrepreneur ride those waves and follow the correct strategies at a steady pace until the business begins to succeed.

PROPERTY, GROWTH AND LOCATION

GET REAL

Mohr Capital Develops Industrial Project in Surprise Mohr Capital, a Dallas-based privately held real estate investment firm, acquired 46.26 acres in one of Arizona’s fastest-growing cities to develop a Class A industrial business park in the West Valley. Breaking ground this month and slated for completion next summer, Summit Business Park will offer a combined space of

Photos courtesy of Private Label International (left), Ware Malcomb, IndiCap (right, top to bottom)

Speed-to-Market Design

High demand for rental units has contributed to the most stable supply-and-demand condition for any property type for the past several years. Multifamily properties are underbuilt and in high demand, and rental rates have increased in double-digit percentages based on that demand. Under these circumstances, we’ve seen a larger emphasis placed on speed-to-market design. Speed-to-market, in terms of design and construction, can refer to multiple scenarios. In this instance, we’re mainly referring to speed-to-market in terms of existing assets that are long-term holds. The properties have the goal of current cash flow, but also a focus on appreciation of returns over the next five to ten years. Under past market conditions, we saw more short-term holds than we are seeing now. With an increase in long-term holds, we also see an increasing need for capital improvements, either to keep a luxury rental property relevant to the large influx of new builds or to reposition an asset to allow it to be competitive. We offer a deliverable to our clients that are wanting to do just that. We refer to it as a Property Positioning Plan that assesses the property holistically, strategically lays out priorities for improvement based on the current market and the targeted demographic, and applies aesthetic and program trends to the property at hand. This plan has been used in conjunction with a developer or property manager’s business plan to finalize yearly budgets and determine the areas of attention for the most promising return on investment. The speed-to-market aspect comes into play when we address the property from the standpoint of quick updates with the most impact. By assessing the property as a whole, developers can prioritize funds based on market conditions and what will appeal the most to their prospective resident base. One thing to consider when making these decisions is the difference between capital improvements and perceived capital improvements. For example, we had a project several years back that we were repositioning and the client was holding a large budget number to completely replace the parking awnings. They were in good condition and mainly needed only new paint and signage. When we talked to them about prioritizing those funds somewhere else, it ended up making sense because the residents would not see that upgrade as an actual upgrade. When residents perceive it as an upgrade, they are willing to pay more in rent and it’s a higher return on investment. Not all improvements will do that. If there is a choice, it’s always beneficial to lean toward resident needs and wants to gain a higher return. We’ve also found that when it comes to residents, aesthetic holds a lot of weight and new furniture and finishes can have a huge impact. —Christina Johnson, the creative director of Phoenix- and San Francisco-based Private Label International (privatelabelintl.com), a full-service interior design studio that develops hospitality environments and lifestyle brand experiences for clients worldwide

704,472 square feet of leasable industrial space with 453,960 square feet in Building 1 and 250,512 square feet in Building 2. These state-of-the-art buildings will be ideal for distribution, manufacturing and logistics companies throughout the Southwest with capabilities to serve numerous large urban areas located within a one- or two-day delivery zone. mohrcap.com

New North Scottsdale Luxury Community from Camelot Homes Camelot Homes continues to expand its presence in North Scottsdale with the recent purchase of 77.5 acres, located east of the northeast corner of Lone Mountain Parkway and East Joy Ranch Road in Scottsdale. The family-owned luxury homebuilder plans to break ground on the new 52-home community called Joy Ranch in Q2 2023, offering floor plans from 4,500 to 6,500 square feet, with 4–6 bedrooms and 4.5–6.5 baths. camelothomes.com

IndiCap Bringing 110-Acre Industrial Park to Glendale Boutique commercial real estate company IndiCap continues its formidable Metro Phoenix industrial development push with Virgin Industrial Park, which it will develop in partnership with Invesco. Located on the northwest corner of Olive and Reems roads in Glendale, Arizona, within the nationally recognized Loop 303 industrial corridor, the two-phase, 110-acre Class A development will total more than 1.5 million square feet in five buildings at build-out. Construction on Phase I of Virgin Industrial Park begins November 2022, with completion expected by December 2023. Completion of Phase II is anticipated by Q1 2024. indicapinc.com

We are in a rather unique time for multifamily real estate. The high costs of materials and shipping, as well as supply delays make building from the ground up riskier than it would be under more predictable conditions. Current investment rates, cap rate compression and inflation also are key factors in assessing the risk level for multifamily investors.

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PROPERTY, GROWTH AND LOCATION

Surprise Power Center Development Powers over Challenges

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Distributors have been providing cement strictly on allocation, which has slowed many projects around the country. SimonCRE and its building partners responded by taking the rationed cement that they individually received and establishing a batch-plant on-site to mix and pour for the project in stages. This required deliberate planning and precision to ensure that the project continued to move forward. Concrete did not pose the only issue, as service entry sections and electric panels are currently on extremely long delays, presenting another roadblock on the horizon if not properly planned for. SimonCRE made the decision to source two copies of each service entry section and electric panels needed to complete the first phase of construction from different suppliers. This accomplishes a few things. First, it provides a safety net to ensure the appropriate delivery of the materials in the event one shipment is delayed by unforeseeable circumstances. Second, it provides a track record of which supplier is faster or more reliable. Third, if both pairs arrive on time, backup units can be stored for the next phase of the construction project, ensuring there are no further delays. Roofing has also presented possible issues for builders and has required more creative problem-solving to address. SimonCRE shifted from using metal trusses, which are currently on an extended back-order; instead, utilizing wooden trusses and opting to use alternative roofing materials to complete these projects. The entire construction process has required creative partnerships with builders and tenants to source materials, as well as developing working solutions for roadblocks so that retail spaces can be completed and delivered to tenants as promised. Village at Prasada has presented an immense project and opportunity, one that many did not imagine possible. The land sat undeveloped for years, originally intended to be an indoor shopping mall before that project was scrapped. Bringing this project to fruition has allowed SimonCRE to develop many industry partnerships and continue to develop large-scale projects going forward. —Joshua Simon, CEO of SimonCRE (simoncre.com)

Prior to Village at Prasada, SimonCRE’s largest project was a $15 million medical office building, so this has required a monumental change in how the developer has approached projects.

Photos courtesy of SimonCRE

Village at Prasada, the 700,000-square-foot retail power center developed by SimonCRE for residents of Surprise, Arizona, has proven to be a massive undertaking that has continued to move forward in the face of mounting supplychain and labor issues. This will be the West Coast’s first power center constructed in more than a decade; currently, residents need to travel an average of 10 miles to reach the closest retail center that has comparable retail options. It is unlikely the Valley will see another center of this scale for a while, and more amenities are continually being added to the project, such as the upcoming joint venture to develop more than 500 apartments on the property. Construction on these apartments is scheduled to begin later this year, and Village at Prasada is expected to continue to grow along with it. With completion anticipated for fall, SimonCRE expects to begin delivering to its tenants then. Their successful progress, regardless of the setbacks plaguing the construction industry, is largely thanks to the creative problem-solving utilized by the developer and the developer’s building partners. The project will provide a range of quality retail and restaurant options to an underserved community in the West Valley. The developer has worked closely with the City of Surprise’s Department of Economic Development to source highly desirable tenants, many of which represent retailers heavily requested by Surprise residents. SimonCRE has also partnered with another developer, Carefree Partners, to develop the nearby Surprise City Center, which is intended to be more than 30 acres of mixed-use development, to provide more local activities, entertainment and lifestyle options to the residents of Surprise. This development is one that has been years in the making and is highly anticipated by Surprise residents for how it will change the landscape of their growing community. These projects have moved forward regardless of mounting supply-chain issues affecting the construction industry, which have required quick thinking and adaptability. After the country went into lockdown in 2020, many cement manufacturing plants were temporarily shut down, leading to the current cement deficit that many builders are seeing.

We don’t just see another workplace. We see an award-winning culture. At Colliers International in Arizona, we are committed to teamwork, service, expertise, and fun. Our people live these core values, providing the trustworthy foundation of client service. Colliers’ dedication to supporting our family, both at work and home, catapults our team to unparalleled levels of performance. Each team member’s commitment to client relationships takes them beyond business achievement to create a passion for shaping the future. Partner with the innovative professionals at Colliers who dream big and see what could be.

Visit colliers.com/arizona to learn more.

Bev Jensen Regional Operations Manager

Accelerating success.

MINDING THEIR BUSINESS

President José Luis Cruz Rivera: Championing Access and Equity in Higher Education Powering economic mobility and social impact for next generation of Arizonans to participate in state’s booming economy

ACTIVE ADVOCATE A leading national advocate for policies to expand opportunities and improve educational outcomes for all students — especially those who have historically been underserved — NAU President José Luis Rivera Cruz is a frequent keynote speaker and writer on higher education issues. He has testified several times before the U.S. Congress, and his work has been covered by many media outlets, including The Chronicle of Higher Education, the New York Times, the Washington Post, and Univision. Cruz Rivera chairs the board of directors of The Education Trust and serves on the board of the Data Quality Campaign, the American Association of State Colleges and Universities (AASCU) Board of Directors, the Western Interstate Commission for Higher Education (WICHE) and the steering committee of the Presidents’ Alliance on Higher Education and Immigration.

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It has been a busy first year for President José Luis Cruz Rivera, who began his tenure as the 17th president of Northern Arizona University on June 14, 2021. At that time, NAU was facing a number of challenges far beyond a transition in leadership. “We needed to bring students and faculty safely back during COVID, while also addressing issues of trust, a desire for consultative leadership, a call to re-center NAU’s student-first values and the need to articulate a distinct and differentiated value proposition,” Cruz Rivera says. As a leader who deeply values listening and learning, Cruz Rivera committed to “hit the ground learning” and spent the months leading up to his start date meeting with stakeholders at NAU, in the Flagstaff community and across the State of Arizona — a wide presence that includes several locations in the Phoenix area, among them the beautiful Phoenix Bioscience Core. Cruz Rivera wasted no time in leading with complete transparency by ensuring the community was involved from its six Phoenix campuses to its many locations across the state. He engaged any and all who were willing to share their NAU story. This involved open office hours, one-on-one and group conversations, listening sessions and meetings, hundreds of emails and thousands of survey responses, all providing a compelling glimpse into NAU, its history and its potential for the future. “Our community didn’t just want to hear that change was coming — they wanted to see the change and be a part of the change,” shares Cruz Rivera. Engaging faculty, staff and students every step of the way, Cruz Rivera quickly earned the trust of the community, which led to a campus-wide engagement process to create a new strategic roadmap, organizing the work of a new NAU charter for the next three years. Leading numerous iterations and reviewing thousands of points of feedback culminated in a new charter and course for the university, NAU 2025 – Elevating Excellence. This charter identifies the university’s strategic priorities of academic excellence, student success, commitment to Indigenous peoples, impactful scholarship, mission-driven and diverse faculty and staff, community engagement and sustainable stewardship of resources. Opportunity and equitable postsecondary value have been the north star of the president’s life in higher education. “I have spent my life engaged in the work of eradicating disparities in educational access and attainment, seeking to facilitate and drive the generational change a higher education can provide,” says Cruz Rivera. “I’ve realized it in my own life, I’ve seen it in the lives of my children, and I’ve had the privilege

of helping countless students — as a faculty member and administrator — write new futures for themselves as a result of postsecondary education.” Cruz Rivera is a living value statement who encourages his leadership team to think boldly and boundlessly. In less than a year on the job, he has spearheaded the launch of two transformative programs that embody the aspirations and values of the new charter. The first is Access2Excellence, which assures hard-working, Arizona-resident students with a household income of less than $65,000 and who qualify for admission to NAU can attend NAU tuition-free thanks to adjustments to financial aid and scholarship awards. With the median household income in Phoenix sitting at $60,914 as of 2020, this program is poised to positively impact many in the direct community. The second initiative is a new pilot program that aligns admission standards with Arizona high school graduation requirements, providing a clear pathway to college for thousands of qualified Arizona students and removing longstanding roadblocks caused by lack of high school course availability for many rural communities. This forward-thinking innovation has already secured $81 million in new public and private investments in the university to broaden participation, improve completion and strengthen post-college outcomes — powering the attainment of future Lumberjacks. The president’s work extends to the national stage in higher education, where he draws on his experience as a first-generation student and long-time administrator in Hispanic-Serving Institutions (HSIs) to advocate for access to high-quality education for all students. In March, Cruz Rivera testified in front of a U.S. House subcommittee, in which he discussed five steps the U.S. government can take to make higher education more equitable for all Americans, especially historically underrepresented groups. “Investing in HSIs can help us expand the number of students who can receive the equitable access and support services they need to complete quality, affordable credentials — offering them increased economic mobility and providing the nation with broader economic prosperity,” Cruz Rivera says. With an exceptional 122-year history of NAU student success, Cruz Rivera is using his leadership to build upon the strength of the institution to become the transformative higher education model for the City of Phoenix, the State of Arizona and beyond. Northern Arizona University nau.edu

NAU has increased its investment in Hispanic-Serving Institutions, part of its efforts to create a transformative model for access in Phoenix — where the largest population group is Hispanic/Latino — and across the state. nau.edu

Photo courtesy of Northern Arizona University

by Kimberly Ann Ott

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Expecting Your Organization to Win While Stuck in Reverse? Problem Solving & Innovation? Different Gear. Creative & Collaborative Mindset? Different Gear. Mental & Physical Health? Different Gear.

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YOUR BENEFIT IN BUSINESS

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Holistic, Longitudinal Care for Chronic Conditions Alanté recently launched a strategic partnership with patient care platform eCare21 that simultaneously addresses the health risks and economic challenges associated with chronic condition treatment. This program demonstrates Alanté’s commitment to embracing innovative solutions for patient care. “Through the coordination of care plans within eCare21’s virtual care ecosystem, Alanté chroniccare patients will experience lower costs of care, streamlined communication with providers, and a reduced risk of hospitalization,” says Alanté Executive Director of Operations Carrie Wheeler. Based on CDC data, approximately 85% of older adults have at least one chronic health condition, and more than half of them have at least two. Heart disease, cancer, Alzheimer’s, diabetes and strokes — all chronic conditions — are the leading cause of death among older adults. When not managed properly, they hinder one’s independence, often resulting in hospitalization and institutional care. Moreover, multiple chronic diseases account for a majority of all healthcare costs and more than 90% of Medicare spending. Traditionally, healthcare organizations have addressed the challenge of managing at-risk patient populations with remote monitoring methods that are too costly and complex to deploy across acuity levels and to the lowest-cost setting of care, the home. This antiquated approach reinforces existing data and communication silos across the spectrum of care, resulting in increased costs and reduced outcomes. “For many chronic care patients, communication between families, doctors and caregivers presents a roadblock leading to a host of poor outcomes,” said Alanté CEO Mark Hansen. “eCare21 circumvents this issue with a centralized platform that pulls together electronic medical records, remote patient monitoring and telehealth visits. Through this patient-centered approach, all members of a care team remain informed of a patient’s current health care plan.” Wheeler notes, “In the world of chronic care, the vast majority of time and money is typically spent on the treatment of the condition. By leveraging eCare21’s platform, Alanté is now in a position to not just treat an existing condition, but to emphasize preventive measures through education and remote patient monitoring.” —Mike Hunter alantehealth.com

AUG. 2022

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Joint Venture Health Plan Delivered Results in the Arizona Market Can health insurers and providers work together to deliver care as partners, not adversaries, with financial interests aligned? One local joint venture health plan shows it’s possible, and in doing so has transformed how health coverage is delivered in Arizona since it was formed in 2017. Created by Banner Health and Aetna, a CVS Health company, Banner|Aetna has become an example of the power of collaboration and shared risk. Joint ventures like Banner|Aetna are designed to split financial risk between the parent companies, allowing them to focus together on innovative ways to provide access to high-quality care and a better member experience at a lower cost. This approach is unique since care providers and insurers are often at odds and consumers are stuck in the middle. The five-year results of this model speak for themselves — Banner|Aetna has been the fastest-growing health plan in Arizona. In 2022, Banner|Aetna expanded offerings to include Affordable Care Act individual and family plans which are available again in 2023 through the open enrollment period.

COST SAVINGS WITHOUT COMPROMISE

The Banner|Aetna quality performance network delivers both quality care and cost control with access to providers at Banner Health, Honor Health, Tucson Medical Center and Northern Arizona Healthcare. The performance network has achieved significant member participation and savings of approximately 14%.

KEEPING CARE IN THE HANDS OF CLINICIANS

Health insurance joint ventures like Banner|Aetna can also take a unique approach to helping at-risk members through care management programs. These programs are most often delivered directly by insurers to support members with serious health conditions like heart disease and diabetes. In the case of Banner|Aetna, the organization’s unique structure meant it could put these services in the hands of its experts — Banner Health doctors, social workers, case managers, dieticians and pharmacists. These care providers are familiar with the clinical needs of the patient and are tapped to coordinate care for patients across many different services.

LOCAL FOCUS, NATIONAL RESOURCES

Keeping care decisions closer to providers isn’t the only way joint venture health plans can improve care for members. For Banner|Aetna, support from parent companies like Banner Health and

Multiple chronic diseases account for a majority of all healthcare costs and more than 90% of Medicare spending.

Aetna means the health plan can access valuable, national resources to close gaps in care for members. Care gaps include missed appointments for recommended treatments or preventive and support services and can be particularly damaging for members with serious health issues. For example, at the start of the COVID-19 pandemic, CVS pharmacists were able to reach out to members with chronic conditions who were at risk of delaying care due to COVID-19. By encouraging these members to schedule their regular appointments, they could stay on top of their health.

MEETING MEMBER NEEDS

Joint venture health plans based in local markets are also able to quickly adopt new technologies to improve care. Banner|Aetna was innovative in its early use of several virtual care/telehealth solutions, which allow members to seek care from their computer or smart phone. The plan also partnered with diabetes-reversal solution Virta Health to help members with prediabetes and diabetes manage their health, in many cases without the need for long-term medications. Finally, joint venture plans like Banner|Aetna are in a unique position to improve the member experience by alleviating the pain that comes from complex medical billing. Traditionally, consumers receive separate bills from providers and Explanation of Benefits (EOBs) directly from their insurer. Banner|Aetna designed a streamlined bill that incorporates information from the insurance company and care providers. Its “frictionless billing” initiative is also supported by an integrated customer service team to guide members through all their billing questions — with visibility into both care delivery and the insurance side. If this Arizona organization is any indication of where healthcare may be headed, joint ventures may be the future of healthcare. These unique entities may be able to better support the people who need it most, while easing the burdens of navigating healthcare for everyone. —Tom Grote, CEO of Banner|Aetna (www.banneraetna.com)

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INNOVATIONS FOR BUSINESS

TECH NOTES

Arizona Emerging as New Tech Hub with 25% Job Growth by Jacob Hess

A Barron’s study projects tech jobs will grow at twice the national jobs rate in the next decade. The largest growth will occur in the Southwest, Arizona alone growing 25% as folks — no longer tied to a Silicon Valley cubicle — flee California. Phoenix’s growth has increased year after year as one of the hottest hubs for job growth in the tech sector as more companies relocate their headquarters to the Valley. Our labor force is changing as the digital economy and workforce rapidly transform, fueling the demand for tech-related jobs, including information technology, network engineering and cybersecurity. Right now, there is a high demand for IT engineers, and the astounding prediction by Cybersecurity Ventures back in 2014 that there would be 3.5 million unfilled cyber jobs in the United States by the end of 2021 actually came to be. The need for networking engineering overall is important because that’s the core of a cybersecurity professional, indicating that we need more trained talent in this space. Headquartered in Phoenix, NGT Academy, a cybersecurity and network engineering online training platform, is solving this large demand in the IT market by providing its students with the capabilities and knowledge necessary to succeed in the industry with zero to little experience. Through their affordable, immersive and militarystyle training platform, NGT is looking to bridge that gap, with a mission to help 1 million people get tech jobs by 2030. In addition to its main programs — Network Engineer and Cybersecurity Accelerator — NGT Academy has launched its newest course: the Sales Engineer program that trains students to work on the leading edge of technology IT solutions and mastering the art of selling techbased products and services. —Jacob Hess, CAO at NGT Academy, which he co-founded with other former tech instructors from the U.S. Air Force who trained thousands of engineers for the military with top security clearances

AUG. 2022

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Understanding Social Media for Business Social media is one of, if not the, most popular ways companies communicate with their audience. With that in mind and the fact that social media is so visible, companies need to be careful when navigating these platforms. However, it’s far too easy to decide to have a voice on social media that misses the mark. A neutral voice for general information and a catered voice for specific demographics is important. How companies often mess up is crafting a catered voice based on stereotypes, which can backfire quickly. This might result in an offensive message or campaign being put out to the public that does more harm than good, as happened earlier this year to the Children’s Museum of Indianapolis when it offered a “Juneteenth watermelon salad” it is food court. Most issues pass quickly, and the internet has a short attention span. However, if a company regularly offends its customers on social media, that can follow a company around for years to come. One of the biggest mouthpieces for companies is Twitter. It’s quick, fairly simple to post and generally used for quick announcements and updates. Unfortunately, once something is put on Twitter, there’s no edit button. This means that businesses should have a team to check what is going out before it is released and treat messages as they would an article headline or general press release, with checks and edits. Companies don’t have to stick to just promoting the business. In fact, if that’s all their social media consists of, they might begin to lose their audience. Social media is a place for content and engagement. One option to consider is communicating with the audience via polls and surveys. Surveys and polls are also a good way to avoid saying potentially offensive things that might not resonate with the masses, since they enable

the business to see what they like and don’t like. Businesses can shout out and tag other brands they are working with to expand their audience and symbiotically collaborate beyond the general affiliate relationship, for instance going live via apps that allow it, such as YouNow, which has a number of brand-safety measures in place that include live moderation. I went live not too long ago to poke fun at some of the bad reviews our app had gotten, similar to a Celebrity Reads Mean Tweets. Surprisingly, this resulted in a material number of downloads for us, and that is saying something given that we have 55 million users. Depending on the company and product, businesses may not need to spend any energy trying to monitor their employees’ personal social media. Generally speaking, there should be a separation between work life and personal life, and it’s more important that employees come to work ready to go. If an employee is found to be engaging in harmful content on their social media and they have a very public connection to their employer’s organization, the employer does need to address it. The internet might have a relatively short attention span but its sleuthing skills are impeccable, and employee-based social media tends to take on a life of its own.. If an employee broadcasts or posts on their behalf they need to know a lot about the product and services. That sounds obvious but it’s surprising how often that’s not taken into consideration. They should not fall back on scripted talking points if live, as it becomes inorganic and consumers can pick up on that. —Jon Brodsky, CEO of top 40 social media app YouNow (www.younow.com), one of the world’s largest live-streaming social networks, ad-free, algorithm-free and with more than 55 million users

There were 817 publicly reported data compromises in the U.S. in the first half of 2022, a 4% decrease compared to the same period in 2021, according to the data breach report released last month by the Identity Theft Resource Center. idtheftcenter.org/post/h1-2022-data-breach-report-shows-decrease-in-compromises-victim-rates/

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Sustaining

Profits The environment and its challenges are driving business success by RaeAnne Marsh

From an overabundance of sun to an underabundance of water, the natural environment has become the elephant in the room for the business community. But many see it as big opportunity.

“Like many regions in the Southwest, Greater Phoenix is addressing environmental issues from water and drought to urban heat,” says Chris Camacho, president and CEO of Greater Phoenix Economic Council, following this dismal observation with the confident assessment, “However, proactive policies have given Greater Phoenix an advantageous position over cities like Reno, San Francisco, Las Vegas and Salt Lake City. In 2016 the Phoenix City Council adopted eight 2050 Environmental Sustainability goals that articulate the community’s desired long-term environmental outcomes. These fall under the categories of transportation, waste, water, building and land use, parks, air quality, and food systems. Phoenix also employs many sustainability officers and employees, including the new position of heat officer.” This represents a change in focus that Carrie Kelly, executive director of Arizona Association for Economic Development, puts into perspective: “For a long time, the measure of a strong economy in Arizona has been jobs, jobs, jobs. As unemployment rates have declined and we have seen an influx of new companies to Arizona, there is a shift taking place in economic development as well.” That shift has raised the importance of such factors as how economic progress is measured and what nourishes the quality of life in communities. “Just a few years ago, subjects like housing, workforce development, and sustainability were not a large focus of economic developers. The shift we have seen is to a more holistic approach to economic development and one that encompasses things like workforce development, housing, equity, creative industries, and sustainability. Kelly has seen a concurrent shift in the priorities of companies. “Those entering the market in Arizona understand the landscape and the need to be sustainable. Those companies coming to Arizona are also carrying values of sustainability, and they come with the expectation that Arizona also holds those values.” She believes the competitiveness of Arizona also depends on our ability to establish clear and concise sustainability goals and share those goals across the state with development partners. And a business’s environmental choices impact its success, from growth and revenue to employment. “The perception of consumers in regard to sustainable business practices is positive and leads to more loyal customers,” Camacho says, citing a Maryville University study that found 63% of Americans want corporations to drive social and environmental change in the absence of government action, and 70 to 80 percent of Americans make purchasing decisions based on whether or not a business represents their values. “Environmental sustainability also affects businesses’ ability to attract and retain talent,” he adds. “IBM found that 67% of prospective employees were more willing to apply for and accept positions from environmentally sustainable companies.” Camacho shares that many of the largest companies in Greater Phoenix have reported savings by switching to sustainable practices, with the most common savings coming from the reduction of facility costs by switching to renewable energy sources. According to the consulting firm McKinsey, a strong environmental and sustainable plan correlates with higher equity returns, a reduction in risk, lower loan and credit default swap spreads and higher credit ratings.

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“With every solar system we install, our state becomes less reliant on fossil fuels to power our energy grid, which in turn reduces our state’s overall carbon output, all while adding resiliency in a world increasingly prone to supply chain and price shocks.” —Joy Seitz

“All GPEC member communities have similar sustainable goals,” Camacho says. And he credits local universities as a valuable resource in this arena, continually researching and implementing new sustainability solutions. Arizona State University, for instance, incorporates eight overarching sustainability goals: circular resources, climate positive, collaborative action, community success, food reconnection, optimized water, personal action, and resilience. These goals are implemented in all ASU operations and advocated for at the local, state and national levels. “Additionally,” Camacho shares, “ASU’s School of Sustainability has the goal of educating over 1,000 students in its programs and advocating for sustainable practices in all facets of life. Grand Canyon University’s rapidly expanding campus also adheres to sustainable practices when new buildings are constructed and offers a bachelor’s degree in environmental science.” Commercial real estate company JLL has taken the position that climate change offers opportunity. JLL’s research found that companies have reported opportunities arising from the low-carbon transition to be worth $2.1 trillion compared to around $1 trillion of downside risk, according to CDP. And The World Bank released an estimate in 2019 that investing in new resilience infrastructure generates around $4 in benefit for every $1 invested. Also informing JLL’s approach is the institutional investor survey Morrow Sodali released in 2020, which found investors are also interested, with 100% of institutional investors considering ESG risks and opportunities in their decision making in the past year. Helping to build opportunity, JLL became a founding partner of Bloomberg Green, the first global media brand for the climate change era. And JLL Global CEO Christian Ulbrich is a member of the World Economic Forum Alliance of CEO Climate Leaders, a group of CEOs committed to actively engaging in global efforts to create market opportunities for tackling climate change.

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NOW IS A SHINING TIME FOR SOLAR Solar power is one of the biggest pieces in sustainability efforts here. Solar panels are a common sight on roofs of businesses and homes as well as many a parking lot. “My company, American Solar & Roofing, has been in business for more than 21 years, installing thousands of solar systems on Arizona homes,” says President and CEO Joy Seitz. “With every solar system we install, our state becomes less reliant on fossil fuels to power our energy grid, which in turn reduces our state’s

overall carbon output, all while adding resiliency in a world increasingly prone to supply chain and price shocks.” According to Seitz, solar accounted for 7,346 jobs in Arizona last year, all while generating about 9.16% of our state’s electricity. Research from the Solar Energy Industries Association places Arizona fifth last year in the nation for solar. “This is a good start and only the beginning, we have more potential to grow, especially if we are focused on meeting our climate goals,” Seitz says.

BUSINESS OPPORTUNITY IN ENABLING As innovation opens up new economic markets, it goes hand in hand with opportunity for new businesses and expansion of existing businesses. In an interview that underscored his passion for this topic and the tremendous technology opportunity it offers, Arizona Technology Council President and CEO Steve Zylstra pointed to Footprint as one example of an enabler, making products available to other businesses. “Footprint is one of the big companies in town. All products are green and made from recycled materials.” Li-Cycle is another business finding opportunity in making a difference for other businesses. Noting that batteries need to be recycled, Zylstra describes Li-Cycle’s operation in Gilbert that takes everything from a lithium-ion hearing aid battery to a 700-kilowatt battery from one of the Nikola trucks, sends it up a conveyor belt, breaks it down into its constituent materials, sends it to a foundry, breaks 100% of it down to its original materials – Nickle, Cobalt,

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Magnesium, Lithium– for reuse. “These are rare earth materials that are harsh on the environment to mine. Also, a lot of them are processed in China, and our relationship with China is not getting better. So, it’s important from that standpoint, too. It allows us to create an electric transportation system that is part of a circular economy — take all the original materials and you reuse them.” Making big news recently is KORE Power’s announcement that the coming months will see the company break ground on the KOREPlex, its 12 gigawatt-hour lithium-ion battery cell production facility near Phoenix, which is designed to be the first net-zero carbon U.S. gigafactory producing cells in multiple formats and chemistries. It will also deploy the first Nomad Transportable Power Systems and will unveil a portfolio of new products for the EV and ESS markets. The KOREPlex is expected to come to Buckeye and be the anchor to the development of the Sustainable Valley by the end of 2024.

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“At KORE Power, we believe environmental stewardship is central to business, not an impediment to it. We are committed to making the KOREPlex the world’s first net-zero gigafactory, using strategic partnerships and on-site solar energy plus storage. We are working to bring additional businesses to the area to create a full-life ecosystem for battery cells, from supply chain materials to end-user and through recycling,” says Lindsay Gorrill, CEO and co-founder. “And our vision of sustainability includes building

a workplace culture that offers training and opportunities for advancement, so we can attract and keep employees. “The battery cells that we manufacture power clean transportation and bring grid reliability and stability as renewables become a larger part of our energy mix. Advancing a strong economy and a healthier planet is central to everything we do,” Gorrill says.

BUSINESS OPPORTUNITY IN ADOPTING Real estate accounts for a significant percentage of total carbon emission; figures range from 33 to 49 percent. JLL reports that just 100 companies are responsible for more than 70% of the world’s greenhouse gas emissions, and a mere 25 corporations and state-owned entities were responsible for more than half of global industrial emissions in the last three decades, according to CDP. In JLL’s view, with businesses bearing responsibility for the majority of our world’s carbon footprint, they represent both the problem and the solution for the climate crisis. Sustainability, then, is one of five macro-trends framing JLL’s long-term growth strategy. The company believes its sustainability efforts will benefit from stakeholders’ increased focus on purpose, and through greater awareness of the fragility of our society and ecosystem. JLL is committed to partnering with its clients to create and implement solutions and shares many of the same goals: They want to enhance the value of their real estate assets and drive operational efficiencies and cost savings. Clients also seek to attract and retain a productive, healthy and diverse workforce, and achieve positive impacts in their communities. And, like JLL, many of its clients have their own sustainability goals and are seeking partners who can help them achieve their objectives. Barry Chasse, founder of CHASSE Building Team, says his company is always looking to identify sustainable opportunities within construction, navigating clients through the process, and educating everyone involved how sustainability can be affordable. “We pride ourselves on being leaders in innovation when it comes to green and other environmentally friendly solutions, as well as dedicated advocates of green building across Arizona. In fact, our team has created an industry-wide standard.” Among the projects CHASSE has completed in recent years are two LEED Platinum multi-family housing projects, Urban Living on 2nd Avenue and Stepping Stone Place, two LEED Silver facilities for the Boys & Girls Club of the East Valley and ICAN, and the first LEED Certified Walgreens in the state of Arizona. “Additionally, we have retrofitted multiple K12 campuses with Energy Management Systems for optimal energy usage and decreased costs, along with installing solar panels on over 15 educational campuses. We’re always looking to partner with organizations focused on sustainable solutions,” Chasse says. CHASSE’s energy efficiency elements include high-efficiency mechanical units. “Our mechanical system is a Variable Refrigerant Flow system. Through the use of one main compressor working multiple indoor cassette units, we are able to achieve an extremely high SEER rating and offer our team ultimate zone control. This reduced our energy consumption by over 30%

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when compared to typical split mechanical equipment.” And in environmental impact, “We achieved our goal of diverting 75% of our construction waste from the landfill.” One of the local businesses setting an example in its adoption of sustainability measures is Harrah’s Ak-Chin. Among those measures are Harrah’s investment in and implementation of environmentally efficient technologies and processes that mitigate the property’s impact by increasing energy efficiency, water conservation, and reducing waste and recycling. “We acknowledge the science behind human-induced climate crisis and combat its effects with science-based targets and strategies that reduce our greenhouse gas emissions within our own operations and through our value chain,” says April Stovall, director of surveillance and facilities at Caesars Entertainment, Inc., Greater Phoenix Area. It’s a long-term view of what Stovall considers a facet of the new pathways to economic success. “Economic growth and environmental sustainability must go

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hand in hand. Thinking outside the box along with embracing technology and diversity is key to our success,” she says. “There are a number of examples of Greater Phoenix businesses developing environmental sustainability policies that are impacting the region in a major way,” affirms Camacho, who, as president and CEO of Metro Phoenix’s most impactful economic development organization, has both a broad view and detailed knowledge of business activity here. He notes that businesses invest in regions where they can meet sustainability goals, and believes the policies put in place by industry leaders in this market today will allow for a reliable grid that can support future growth. Three examples he shares of businesses whose environmental sustainability policies are reverberating through our community and economy are Banner Health, Intel and SRP. Banner Health sustainably procures supplies for its staff and patients, sourcing PPE gowns and masks from local providers — cutting down on transportation emissions and protecting them from supply chain slowdowns. Over the last decade, Banner Health has saved $3.8 million and more than 14 million kilowatt-hours annually by maximizing energy conservation at its 25 hospital facilities. Intel’s 2030 RISE commitment takes a four-pronged approach to sustainability, focusing on water, energy, waste and climate. This includes achieving net positive water by 2030 by conserving 60 billion gallons of water and funding external water restoration projects, achieving 100% renewable electricity use across all global operations and conserving 4 billion kilowatt-hours of electricity by 2030. Intel is also working to achieve zero waste to landfills and implement circular economy strategies for at least 60% of its manufacturing waste streams by 2030 in collaboration with its suppliers.

SRP has created a 2035 Sustainability Program aimed to reduce the amount of carbon dioxide emitted per megawatt-hour 65% from 2005 levels by 2035. SRP has an additional goal to cut carbon dioxide megawatt-hour by 90% by the fiscal year 2050. Additionally, the company has pledged to reduce carbon emissions from facilities and fleet vehicles by 30%. SRP is working to reduce water use at its facilities by 45% on a mass basis, achieve a lost and unaccounted for water rate of less than 5%, and store 1 million acre-feet of water supplies underground. And the utility is working to enable its customers to achieve savings of their own. Kelly Barr, chief sustainability executive at SRP, explains SRP’s commercial energy efficiency programs range from offering common facility upgrades to customized solutions with review of customer projects for potential energy-efficient upgrades unique to their facilities and operations. Zylstra notes that all the big tech companies that have recently moved here in the last 10 years — Meta, Google in Mesa, Microsoft with three data centers on the west side — are requiring the utilities provide them clean energy only, only from clean sources. “So, the utilities must dedicate a certain amount of their solar or hydro or nuclear (a lot of people consider nuclear clean because it doesn’t create any carbon emissions). All the utilities have had to accelerate their movement toward clean energy because of the demand that’s being created by these massive companies.” SRP continues to improve the ongoing development of its renewable program through strategic, research-based partnerships with organizations and coalitions, such as the Electric Power Research Institute, which are pushing the envelope in low-carbon resource technologies.

“We pride ourselves on being leaders in innovation when it comes to green and other environmentally friendly solutions, as well as dedicated advocates of green building across Arizona. In fact, our team has created an industry-wide standard.” —Barry Chasse

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AUG. 2022

“Arizona has probably the biggest economic development opportunity in a generation with EVs... EVs have the potential to bring tens of thousands of jobs to the Arizona area.” —Joel Levin

As an example, Barr relates that a recent commercial renewable energy program SRP offered is now delivering solar energy to 33 large companies and municipalities across 19 diverse industries. The first phase of the offering was initially announced in 2018, and since then, three 100-MW solar plants have been constructed under this program that deliver clean energy benefits to these customers. At peak production, the combined energy from these facilities is enough to power approximately 67,500 average homes. The three solar facilities will jointly create a reduction in carbon dioxide emissions by about 1.6 million tons, which is equivalent to the amount produced by more than 300,000 passenger cars driven in a year. SRP recently began reporting to The Climate Registry, which is North America’s largest voluntary registry for greenhouse gas (GHG) emissions. Any company can report into this compliancereporting organization that designs and operates voluntary and compliance GHG reporting programs globally. These assist organizations in measuring, reporting and verifying the carbon in their operations in order to manage and reduce it. A lot of AzTC members that have data centers have stakes in the ground to become zero carbon in short periods of time, like 2023, 2025, 2030, Zylstra reports. “AmEx, PayPal, onsemi are all companies that have been around for a long time and they’re going to be a zero-carbon impact — which is a big deal because the biggest consumers of energy, period, in the world today are data centers. And we are second only to Virginia in total number of data centers.” “With our net-zero 2040 commitment, we are driving towards 100% renewable energy by 2040. We are in the process of developing near-term goals to ensure interim progress towards these longer-term goals,” says Kim Luu, senior director and head of Sustainability and Environmental Social Governance at onsemi.

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This, of course, throws the ball into the court of energy providers like SRP and APS. In addition to making an impact on the supply chain serving it, the company is making an impact on the supply chain it serves. “Onsemi is driving disruptive innovations to help build a better future,” Luu says, explaining that, with a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. “Our intelligent power technologies enable energy efficient solutions across all applications by providing improved power factor, enhanced active-mode efficiency and reduced standbymode power consumptions. Our intelligent sensing technologies support the next generation of industry allowing for smarter factories and buildings while also enhancing the automotive mobility experience with imaging and depth sensing that make advanced vehicle safety and automated driving systems possible.” Luu believes businesses are in a unique position to be able to drive new product development and market solutions that help solve problems. “As an engineering and technology company, that is what onsemi does. The climate and environmental crisis presents to us a calling to drive disruptive innovations to help build a better future.” And onsemi can claim success in the more traditional business markers: In 2021, onsemi had more than $5.011 billion in sustainable product revenue. Its total revenue in 2021 was $6.7 billion. At the core of onsemi’s marketecture is the sustainable ecosystem that drives growth in the industrial, automotive and 5G and cloud power markets; driving innovation with intelligent power and sensing technologies to solve the most challenging customer problems in key applications that extend from charging, energy infrastructure, factory automation through to advanced vehicle safety and electric vehicles.

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THE BURGEONING ELECTRIC VEHICLE SECTOR Issues of energy, sustainability, innovation and business opportunity come together in electric vehicles. Another plus for our economy: It also has big employment potential. “Arizona has probably the biggest economic development opportunity in a generation with EVs,” says Joel Levin, executive director of Plug In America, a nonprofit, supporter-driven advocacy group that Levin describes as a cross between a consumer organization and an environmental group. As an economic opportunity for business and entrepreneurs, “EVs have the potential to bring tens of thousands of jobs to the Arizona area.” Levin notes that, when a company sets up shop to do automotive manufacturing, it has a huge impact on the surrounding area. As an example, he points to how the Tesla factory outside Reno has completely reshaped the economic landscape there. “Tesla set up there, and then all their suppliers had to set up there as well. The whole economics of northern Nevada — it’s just exploded economically.” He believes Arizona could easily experience that result. “Opportunities in Arizona are tremendous,” Levin stresses, pointing out that three big electric vehicle manufacturers — Lucid, Nikola and ElectraMeccanica — are already here. “Lucid, in Casa Grande, requires hundreds of different parts for their cars that they don’t build themselves. They’re going to buy them from someone , and the people who are going to supply them will probably set up smaller plants within a short drive of the assembly plant,” Levin explains. “It drives a tremendous amount of

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economic activity aside from the plant itself. In the auto industry, when you have an assembly plant, you outsource all kinds of the smaller pieces of the car, and the people who are going to build those tend to set up shop near the assembly plant.” SRP has also been helping advance the electric vehicle market here. In fact, due to the success of many of SRP’s EV incentive programs that help encourage EV adoption and EV infrastructure growth, SRP recently surpassed its goal to have 23,000 EVs in the SRP service territory by the end of its fiscal year 2022, with a total of more than 29,200 EVs leased or purchased within the area as of April 30, 2022, according to Barr. “This brings an estimated carbon reduction savings of more than 101,000 tons of carbon dioxide,” she says. “The program helps business customers learn more about the benefits of electric vehicles, supports employee EV adoption, accelerates the transition of corporate vehicle fleets, and helps companies meet corporate sustainability goals.” On the transportation electrification end, Barr notes SRP’s Business Electric Vehicle Charging program offers commercial, multifamily and fleetowning customers rebates and services to support the installation of networked EV charging infrastructure at their facilities. The charging infrastructure promises to be another big employment generator. And Camacho relates that, in early June this year, the Phoenix City Council unanimously passed the Transportation Electrification Action Plan, known as the “EV Roadmap.” “The goal of the project is to place 280,000 city electric vehicles on the streets over the next eight years by installing 500 public charging stations, converting some city vehicles to electric and more.” According to Camacho, EVs made up more than 5% of all cars purchased in Phoenix in the past year and EVs’ share of North American vehicles is accelerating. Zylstra notes we also have the bipartisan infrastructure package, which Congress passed last November, and much of that federal money will be administered by ADOT, “particularly around recharging infrastructure — all the highways and the rural areas.” Zylstra foresees all this funding coming our way will create massive numbers of jobs for electricians and construction workers as well as, of course, “enable us to recharge electric vehicles throughout Arizona.” But one factor he sees that will have to be addressed is interoperability, so that anybody can charge from anywhere. Although observing that jobs created in the building out of electric charging stations tend to be high-paying ones, Levin cautions that at least for now “The limitation is they can’t find enough electricians.” There’s another side to the growth of the electric vehicle industry, which is in terms of people driving EVs. “When people in Arizona drive gasoline cars, you have to bring that gasoline from somewhere else,” Levin says. Since Arizona is a net energy importer, “that’s all billions of dollars that flows out of your economy.” But instead of buying gasoline, if people bought electricity instead, that all by and large comes from within the state.” Money spent on electricity, he points out, stays locally and it spends on energy production like solar and wind and building out the electric grid and building out charging infrastructure. “It’s much more jobs-intensive and it’s much more located where the demand is. So, instead of sending those billions of dollars out of state buying petroleum from other states and from other countries, that money would be staying inside the state. It would be, basically, building out the electric grid. So, there’s a real economic benefit there as well.”

AUG. 2022

WATER: ASSET OR INVESTMENT? “In the Southwest, long-term economic success will be driven to a large degree by solutions to water scarcity,” says Sean Hood, a litigator and water lawyer. Speaking from 20 years’ experience advising Fortune 500 companies and other businesses on a broad range of disputes involving water rights, the Fennemore director observes, “We’re in the midst of a significant long-term drought, and no one knows when or if Mother Nature will ease our water crunch. Development and growth are already being stifled in myriad ways.” Hood believes the answer to water scarcity is both water conservation and water augmentation. From his perspective as associate vice president of research advancement and knowledge enterprise and director of the Global Institute of Sustainability and Innovation at Arizona State University, Dave White observes, “It’s critically important for us in Arizona and in the Southwest more generally to be looking at a variety of different solutions to address issues related to the drought, our water supply shortage and just the general water scarcity in the region as well as the issues that will be increasingly affecting our region as a result of climate change.” White believes that, for water in particular, business innovation and technology development will yield some of the solutions. “It’s important for us in the Southwest to look at this as an opportunity where we can develop new technology and new innovations,” he says, looking at the global opportunity for innovators here to “potentially create solutions that could be economic development activity and/or export those solutions to other arid regions around the world. Intel set the bar high when it announced last month that its operations in the United States, Costa Rica and India are officially net positive on water use — meaning Intel restores more freshwater than it takes in. In Arizona, fifteen Intel-funded projects helped restore 890 million gallons to the watershed in 2021. For instance, one of the projects Intel funded incentivized farmers near the Verde River to switch out crops that require heavy irrigation in the summer months for barley, which is harvested earlier in the year and requires less water. As part of the project, an investment in a local malt house lowered the transaction costs involved in malting barley, which can then be sold to local breweries that previously had to use out-of-state suppliers.

“In the Southwest, long-term economic success will be driven to a large degree by solutions to water scarcity.” —Sean Hood

AUG. 2022

“Intel was one of the first tech companies to make a public commitment around water restoration, but we’re not alone in this. In the years since we announced our water commitment, we’ve had conversations with other companies who have come to us for help or advice with setting their own water stewardship goals,” says Fawn Bergen, corporate sustainability manager at Intel. “Although water challenges are local, the partnerships, collective actions and investments are global.” White sees global opportunity for local efforts, describing Arizona’s current water crisis as an innovation moment. “We at the University are trying to help develop and, in partnership with other corporate entities and other folks across the region and the state, trying to help position Arizona as an international hub for water technology and water conservation innovation,” he says. “I’m very excited about the work that is being done in industrial water conservation,” White shares. He cites Intel as among the industry leaders working to reduce the total water demand necessary for each unit of production. “Intel and other corporate leaders are looking to determine how can they become more and more efficient to reduce the total water demand necessary to produce each chip. And also to figure out how they can be more efficient at recycling and reusing the water that they draw on for that activity.” Noting that water is a critical element of the production process for semiconductors and for microchips, White observes, “Anything they can do to become more efficient in the use of that resource will help lower their input costs for their products. So, it’s an important business op for them.” White points to similar efforts in agricultural water conservation, with exciting innovations to reduce the total water consumed per unit of output. This is happening in conventional agriculture, such using more drip irrigation technology and different ways to reduce the water demand. Efforts are also being directed to developing alternative forms of agriculture like vertical farming, and pinpointing targeted water-consuming approaches to agriculture. And White is excited about a new company being spun out from ASU is SOURCE. “SOURCE is creating hydro panels, essentially combining the power of solar panels with technology to help draw water out of the atmosphere. Create water from air.” It’s a distributed technology, with small installations that use renewable energy to help extract water from the atmosphere. “It’s a modest amount of water, not enough to offset the needs of a whole farm or a city, but in distributed areas like rural areas, tribal communities in remote parts of the state, other remote rural communities, these technologies may be a part of a set of solutions,” White says. SRP sees partnerships as the key to ensuring a successful sustainable future, which must also translate to finding collaborative ways to remain water resilient across the state. One example Barr offers is the underground water facilities SRP manages on behalf of nine Valley cities. The Granite Reef Underground Storage Project and the New River Agua Fria Underground Storage Project has recharged more than 1 million acre-feet of water since 1994. The water storage projects have become an instrumental component of SRP’s water resource management tool kit and a real-life, working example of how SRP and Arizona have been preparing for drought.

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“Arizona’s water history is distinguished by the impact of strategic water infrastructure partnerships that remains true today,” Barr says. “The seven reservoirs and dams built over the last 120 years are just a few examples of the forward-thinking planning on an infrastructure that continues to provide affordable and reliable water to the Phoenix metropolitan area.” White suggests we consider water as an investment. Posing the question, “What is the best value that we can get from that?” he says it’s not always economic. There are environmental values that are critically important to think about — protecting aquatic and riparian ecosystems are really important. And social benefits — water provides recreation opportunities and other amenities like public parks and gathering places. And then economic activity, to provide the most jobs; the best, highest paying jobs; and the jobs that have the best quality of life for the residents. Says White, “If

we’re going to say we have a limited amount of water supply, we have lots of different benefits that we’re trying to produce, then we need to be very thoughtful about how we invest that water to get the best return across environment, economy, and society.” But he emphasizes again the goal of being able to use the challenges we face being in an arid environment, a water-stressed environment, as an opportunity. After all, he notes, we are not alone. “Some the largest and fastest-growing cities in the world are in arid environments, and, as climate changes continues to impact communities around the world, there will be more communities that are facing the similar kinds of challenges that Arizona is facing now,” White says. “So, the faster that we can develop solutions to these, the more that we can be of benefit to other communities around the world — and that’s actually an economic benefit to the state as well.”

WHERE ARE WE GOING FROM HERE? “There’s so much going on in this space right now, it’s just mind-boggling,” Zylstra says. He foresees it creating tens of thousands of jobs, among other benefits to our community and economy. “At least once a year, I go to Washington and meet with a congressional delegation. I did that in May of this year. Lots of issues to talk with them about, but one of them I did talk to all of them about was the importance of accelerating our transition to clean energy.” Kelly points to the Green Metrics study that the International Economic Development Council published in 2017. These metrics included categories such as equitable growth, sustainable workforce, local and small business growth, and transportation. Metrics included electric vehicle charging stations, broadband access, workforce training programs, retail leakage, and transitoriented development. “You can easily look across Arizona and see where there has been a focused effort on these issues,” she says. “What is most exciting in the investment in technology and sustainable businesses in Arizona,” Kelly says. “We have passionate leaders and investors that recognize the importance of sustainability to the state and are pouring their heart and soul into making improvements in the quality of life for everyone is incredible. Companies like Footprint that bring the Footprint Sustainability Summit to Phoenix or ASU housing the Global Institute of Sustainability and Innovation are true investments in the future of a more sustainable Arizona.” JLL believes business can take responsibility and make a difference in environmental issues. “There will be increased scrutiny on how companies respond to threats such as climate change. Those companies that are positive stewards of the environment and promote sustainability through their operations will likely outperform businesses that continue along a businessas-usual trajectory,” it says on a website. SRP’s Barr suggests that developing a stakeholder review process of a company’s sustainability goals is a more comprehensive and inclusive way to progress forward, and shares the experience at SRP. “After SRP developed its initial 2035 Sustainability Goals, we hosted a public commenting period to solicit feedback from customers to update the goals and ensure they considered all perspectives. This effort generated more

than 4,000 comments, many of which were integrated into our updated, outlined initiatives.” Continues Barr, “Companies from all industries and of all sizes are also now given many more platforms and opportunities to join interdisciplinary efforts to bring more sustainability to our state, which thereby reflects within each participating organization.” An example she offers is a new cross-industry initiative called the Transportation Electrification Activator, developed to advance electric transportation in Arizona. SRP is a member among organizations of all sizes and industries. “Those involved have substantial interest in reducing carbon emissions and improving the well-being of Arizonans, and there is ongoing opportunity to join in on this effort.” While observing that business is as affected by the fundamental challenges of environmental issues as the everyday population, Camacho sees business being able to make an impact at a larger scale than the individual. Among the benefits, he believes becoming an industry leader in sustainability can give companies an edge over competitor businesses. Furthermore, he says, “Businesses have been responsible for many of the sustainable innovations that have occurred in this market and around the world. Continued dedication and a corporate commitment to sustainable practices will determine whether creating a sustainable environment for future generations succeeds.” American Solar & Roofing americansolarandroofing.com Arizona Association for Economic Development aaed.com Arizona Technology Council aztechcouncil.org Caesars Entertainment caesars.com CHASSE Building Team chasse.us Fennemore fennemorelaw.com Global Institute of Sustainability and Innovation sustainability-innovation.asu.edu Greater Phoenix Economic Council gpec.org Harrah’s Ak-Chin caesars.com/harrahs-ak-chin JLL us.jll.com KORE Power korepower.com onsemi onsemi.com Plug In America pluginamerica.org SRP srpnet.com

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AUG. 2022

DEI

DIVERSITY, EQUITY AND INCLUSION

Biased?

What we don’t know can hurt in and out of the workplace by Joanna C. de’Shay, MAOM, M.F.A.

AUG. 2022

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Please don’t ask to touch a person of color’s hair, say they speak well or ask where they are really from and other harmful and egregious implicit bias acts. It’s the same early morning grind that most Americans participate in on a weekday morning, the dreaded coffee run! Not glamorous or exciting, it becomes a necessary part of kicking the day off right, says every coffee lover nationwide. It’s 7:00 a.m. and too early to be smiling and entertaining the usual stares, but there I was in the coffee line, minding my own business, when out of the corner of my eye, I felt eyes glaring my way. I shrugged it off as nothing more than a fellow coffee lover waiting patiently for their caffeinated elixir of choice. The only difference about my usual coffee run that day is that JOJO, what I affectionately named my monstrous curls, was out and in her full and natural glory. I loved these days when I felt comfortable enough in my skin to rock my naturally curly hair in the workplace. What was to be a crowning day for me ended up more like an experiment in exploration. As I stood there, hoping the barista would call me next, I felt it — a pair of unfamiliar hands invading my space — and a stranger was touching JOJO, my hair. I was shocked, mortified and confused about how this behavior could be acceptable. How was this stranger bold enough to reach over and attempt to run her hands through my hair? When did it become acceptable to touch another person without their permission? My eye widened and my mouth opened, but I seemed to be the only person in complete disbelief or even uncomfortable with this situation. The stranger then caught herself and pulled her hands away. Before I could say anything, she blurted out, “I just love your hair texture, that’s all; it’s so exotic, and I just couldn’t help myself,” as she giggled. At that, my disbelief turned into anger and frustration as I am not an animal, and a stranger touching my hair is not a compliment and simply not okay.

UNCONSCIOUS BIAS — WHAT IT IS

This real-life example is one of the hundreds of unprovoked incidents that marginalized individuals face

daily and often also experience in the workplace. This behavior, a form of unconscious or implicit bias, is deeply rooted in ignorance and stems from an individual’s limited personal experience and negative or sometimes even positive associations about an individual or group’s identity. According to the Kirwan Institute for the Study of Race and Ethnicity, unconscious bias, also known as implicit bias, is a set of attitudes, stereotypes, beliefs and associations that affect understanding, actions, judgments and decisions in an unconscious state of mind. Although its existence is largely unrecognized, it causes one to have feelings about individuals based on nothing more than a set of visual characteristics such as race, gender, ethnicity, age and appearance. These systemic, automatic actions are detrimental in the workplace and significantly contribute to the lack of workplace diversity. Decades of research have shown that everyone has unconscious biases that stem from their upbringing, environment, belief systems, family structure, culture and lived experiences. The danger in having it and being largely unaware is it causes one to take that information and use it to make quick assumptions based on limited data points.

UNCONSCIOUS BIAS — WHY IT MATTERS

Unconscious bias, especially in the workplace, is harmful and can create an equity gap, develop preferential treatment and even contribute to forming in and out groups that exhibit exclusionary behaviors. These long-term effects are harmful and people unknowingly create a separate set of “rules” in various systems. Directly connected to systemic and structural inequity, implicit biases are pervasive and even affect people like judges or elected officials, who have avowed commitments to impartiality. Implicit bias, including implicit racial bias, predicts behavior in the real world by placing us on autopilot. This behavior can harm the members of marginalized groups, often the subjects of these negative implicit bias assumptions. It’s known simply as having a blind spot, where

Decades of research have shown that everyone has unconscious biases that stem from their upbringing, environment, belief systems, family structure, culture and lived experiences. The danger in having it and being largely unaware is it causes one to take that information and use it to make quick assumptions based on limited data points.

BETTERING YOUR BUSINESS we judge quickly who is trustworthy, capable, intelligent, competent or even deserving of a job or promotion. One of the best ways to overcome that blind spot is to be brave enough to ask questions continually and be open to views and perspectives that are different from one’s lived experience. According to research from Diversity Resources.com, there are many different types of common unconscious biases we see in the workplace. A few to take note of and observe include Ageism, Affinity, Attribution, Beauty, Conformity and Gender bias. Think about it: We meet the new director of HR, who happens to have an accent and wears a Hijab. How would any of us describe this new employee as we talk to other employees about meeting him? Do we use visual cues as clues to fill in data we may not have, such as the person’s race or religion? What do we do when we meet someone of a different race, with a different hairstyle or accent, or even dress? Are we open to their lived experience, or do we find ourselves trying to fill in the gap of information that we don’t have? That is the harmful effect of making a judgment: It leaves little to no room for the truth to unfold and for the person to share their philosophy and true lived experience?

Unlock Your Potential In Unlock Your Potential, author and entrepreneur Jeff Lerner shows readers how the failings of our education, employment and retirement systems have opened doors most people didn’t even know exist. And, most important, he shares how to step through those doors — where they exist, how they work, what it takes to go through them, and what’s on the other side. Unlock Your Potential can serve as the blueprint — a master key for individuals to unlocking their full potential and living a life no one told them was possible. Herein lies the key for anyone, anywhere in the world to escape the broken system and create a quality of life that was unimaginable a generation ago. Unlock Your Potential: The Ultimate Guide for Creating Your Dream Life in the Modern World

Matt Holt

368 pages

Business owners may ask themselves, “Does my business own me more than I own it?” What if, instead, the company could run on automatic while it continued to grow and turn a profit? Most entrepreneurs started their company so they could be their own boss, make the money they deserve, and live life on their own terms. They may find, in reality, they’re bogged down in the daily grind, constantly putting out fires, answering an endless stream of questions, and continually hunting for cash. In Clockwork, Revised & Expanded, entrepreneurship expert Mike Michalowicz improves on his step-by-step method for getting more done by doing less — making it easier than ever for owners to have their business run itself. Clockwork, Revised and Expanded: Design Your Business to Run Itself Mike Michalowicz

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Portfolio; Expanded edition

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The Wise Investor The Wise Investor is an inspiring parable about building what author Rich Fettke calls Real Wealth, the foundation of financial freedom. It tells the story of Ryan Brooks, a husband, father, and CaptivSoft’s hard-working lead coder who, with

CHALLENGE OUR OWN ASSUMPTIONS.

Being aware of our own biases is a significant first step to being able to challenge our assumptions. We need to ask ourselves critical questions about the data points we use to determine who to trust, promote, confide in or collaborate with. It’s a continuous process of seeing people for who they truly are individually and not the stereotypes we each have embedded in our psyche. Workplaces can play an essential role in this process by being a safe place and space for employees to explore and communicate these biases based on their lived experiences. A great way to do that is by bringing in a DEI professional that trains specifically around unconscious or implicit bias. This formal training is challenging but effective, especially when done across various departments, job functions and titles. Once a workplace is aware of any biases that may exist, it can then begin the critical work of dismantling them and developing programs and policies that are more inclusive.

Available 8/2/2022

Clockwork, Revised and Expanded

UNCONSCIOUS BIAS — THINGS TO DO TO MITIGATE IT

Raise awareness through education. The Harvard Implicit Association test (accessed at implicit.harvard.edu) is a tool to learn about our unconscious beliefs. The project has two different versions of the test and I would encourage everyone to take both to get a full spectrum of understanding in many different areas. The first test examines social attitudes and implicit associations around race, gender and sexual orientation. The second looks at Health implications around exercise, anxiety, alcohol, eating and marijuana use. Project Implicit is a 501(c)(3) nonprofit organization and an international collaboration of researchers interested in implicit social cognition. Founded in 1998 by three scientists, its mission is to educate the public about bias and provide a virtual lab to collect this empirical data. Being able to identify how unconscious bias can be toxic to a workplace can be pivotal in moving the needle on DEI work. Another great tool and resource for managers is from SHRM.com. SHRM, the Society of Human Resource Management, has a robust “implicit bias guide” that lists articles, videos, books and even a glossary of terms that explains the various types of unconscious and implicit biases that employees could be exhibiting or experiencing.

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Jeff Lerner

the help of a new friend and mentor, finds a different path to financial security for himself and his family and becomes wealthy in more ways than he thought possible. Those who have ever sought to build wealth, secure their financial future, and live a life that aligns with their values and dreams sooner rather than later, this heartwarming story about one family’s financial transformation will help shine the way. The Wise Investor: A Modern Parable About Creating Financial Freedom and Living Your Best Life Rich Fettke Highline Press

Implicit bias, including implicit racial bias, predicts behavior in the real world by placing us on autopilot. This behavior can harm the members of marginalized groups, often the subjects of these negative implicit bias assumptions.

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256 pages

AUG. 37 2022 INBUSINESSPHX.COM

En Negocios

Edgar R. Olivo es un educador empresarial bilingüe, asesor económico y colaborador de varios medios de comunicación. Es apasionado por la educación y comunidad. Está certificado en finanzas y análisis de datos y posee un título en negocios de la Universidad Estatal de Arizona.

Edgar R. Olivo is a bilingual business educator, economic advisor and contributor for several media outlets. He’s a nonprofit executive who is passionate about education. He is certified in finance and data analytics and holds a business degree from Arizona State University.

AUG. 2022

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LIDERAZGO / LEADERSHIP

Cómo redactar su declaración de capacidad de una página para su pequeña empresa por Edgar R. Olivo

Crear un currículum para encontrar trabajo es uno de los primeros pasos que dan los candidatos para atraer empleadores. Las pequeñas empresas deben hacer lo mismo para conseguir un gran contrato mediante la preparación de una declaración de capacidad. Una declaración de capacidad es un documento conciso de una página de sus competencias comerciales. Sirve como un currículum para su negocio. Proporciona información específica que convencerá a sus clientes potenciales de comprar con usted. Cuando está bien escrito, diferenciará su negocio de la competencia. Su declaración de capacidad responde a las siguientes preguntas: 1. ¿Que hace su compañía? 2. ¿Cuáles son sus competencias básicas (habilidades clave, características y beneficios que su empresa aporta al mercado)? 3. ¿Cómo es su empresa única, diferente y distinta de sus competidores al responder a las necesidades del mercado?

Una declaración de capacidad debe ser breve y solo relacionada con las necesidades del comprador al que se dirige. Por lo general, es de una sola página y de una sola cara. Puede usar dos lados, pero solo si es necesario. Su declaración de capacidad es un documento vivo que cambiará con el tiempo dependiendo de a quién planee vender. Recuerde guardar el documento con el nombre de su empresa en el nombre del archivo. Envíe su declaración de capacidad a los compradores solo en formato PDF, no en Word, PowerPoint u otro formato. Muchas agencias grandes bloquean los documentos de Word y Publisher, por lo que un archivo PDF es más seguro, generalmente más pequeño y permanecerá visualmente consistente cuando lo envíe por correo electrónico. Dado que tiene espacio limitado, asegúrese de enfatizar sus competencias, elegibilidad y desempeño anterior. Esta es su oportunidad de destacar los aspectos positivos de su pequeña empresa. Estas son las cinco áreas clave incluidas en una declaración de capacidad efectiva:

Una declaración de capacidad es un documento de perfil comercial que se utiliza para comenzar a construir relaciones con clientes potenciales, especialmente en oportunidades de negocio a negocio. Una declaración de capacidad comunica lo que su empresa tiene para ofrecer. Ayuda a las pequeñas empresas a generar confianza como proveedores confiables de bienes o servicios.

ENGLISH TRANSLATION

1. Competencias básicas: Esta sección incluye las habilidades clave, la experiencia o el equipo necesario para hacer el trabajo. No es necesario que incluya todo lo que hace en su negocio. Use frases y breves declaraciones de su experiencia en relación con las necesidades específicas de su comprador objetivo. 2. Diferenciadores: Aquí, enumerará los factores y beneficios únicos de sus productos o servicios que lo diferencian de la competencia. ¿Cómo se adapta mejor su negocio a las necesidades de su comprador? Agregue una declaración clara que se relacione con las necesidades específicas del comprador para ayudarlo a comprender por qué debe elegir su negocio. 3. Desempeño pasado: Esta será una lista de clientes clave para los que ha realizado un trabajo similar. Es posible que le pidan referencias, así que pida permiso antes de enumerarlas. Las imágenes valen más que mil palabras y pueden ahorrarle espacio si las encuentra relevantes. Si sus proyectos anteriores no se relacionan con las necesidades del comprador objetivo, no los incluya en la lista. 4. Datos de la empresa: Aquí, incluirá una o dos oraciones cortas de la descripción de su empresa, incluida la cantidad de empleados y su capacidad. Además, enumere su número DUNS, código CAGE, códigos NAICS, capacidad de vinculación y cualquier elegibilidad reservada que tenga su empresa, como la certificación comercial diversa. 5. Información de contacto: Luego agregará su información de contacto, incluido el sitio web y el nombre de contacto específico. Los compradores visitarán su sitio web para obtener más información; por lo tanto, asegúrese de que se actualice constantemente y proporcione un “enlace” para el acceso directo. Además, incluya su correo electrónico profesional porque los grandes compradores a menudo bloquean las cuentas de Hotmail, Yahoo y Gmail como correo no deseado. Su proveedor de Internet normalmente ofrecerá direcciones profesionales con su suscripción. Una vez que tenga lista su declaración de capacidad, pídale a alguien que revise su declaración de capacidad y obtenga comentarios antes de compartirla con sus compradores potenciales. ¡Asegúrese de revisar la ortografía y la gramática! Una declaración de capacidad bien escrita le abrirá las puertas a oportunidades de contratación y lo diferenciará de sus competidores. Vale la pena el tiempo y el esfuerzo para asegurarse de que se haga bien.

How to Write Your One-Page Capability Statement for Your Small Business by Edgar R. Olivo

Creating a résumé to find a job is one of the first steps candidates do to attract employers. Small businesses must do the same to land a big contract by preparing a capability statement. A capability statement is a concise, one-page document of your business competencies. It serves as a résumé for your business. It provides specific information that will convince potential customers to do business with you. When written well, it will differentiate your business from the competition. Your capability statement answers the following questions: 1. What does your company do? 2. What are your core competencies (key skills, characteristics and assets that your company brings to the marketplace)? 3. How is your company unique, different and distinct from your competitors in responding to the needs of the market? A capability statement should be brief and only related to the needs of the buyer you are targeting. Typically, it is only one page long and single-sided. You can use two sides, but only if necessary. Your Capability Statement is a living document that will change over time depending on whom you plan to sell to. Remember to save the document with your company’s name in the file name. Send your Capability Statement to buyers as a PDF only, not in Word, PowerPoint or another format. Many large agencies block Word and Publisher documents, so a PDF file is safer, usually smaller and will stay visually consistent when you email it. Since you have limited space, be sure to emphasize your competencies, eligibility and past performance. This is your opportunity to shine a spotlight on the positives of your small business. Here are the five key areas included in an effective capability statement: 1. Core Competencies: This section includes the key skills, expertise or equipment necessary to do the job. It does not need to include everything you do in your business. Use bullet points and short statements of your expertise as it relates to your target buyer’s

specific needs. 2. Differentiators: Here, you will list the unique factors and benefits of your products or services that set you apart from the competition. How is your business best suited for the needs of your buyer? Add a clear statement that relates to the specific needs of the buyer to help the customer understand why they should choose your business. 3. Past Performance: This will be a list of key customers for whom you have done similar work. You may be asked for references, so ask permission before listing them. Pictures are worth a thousand words and can save you space if you find them relevant. If your past projects do not relate to the targeted buyer’s needs, do not list them. 4. Company Data: Here, you will include one or two short sentences of your company description, including the number of employees and your capacity. Also, list your DUNS number, CAGE Code, NAICS codes, bonding capacity and any set-aside eligibility that your business holds, such as diverse business certification. 5. Contact Information: You will then add your contact information, including website and specific contact name. Buyers will visit your website for more information, so make sure it is constantly updated and provide a “link” for direct access. Also, list your professional email because large buyers often block Hotmail, Yahoo and Gmail accounts as junk mail. Your internet provider will typically offer professional addresses with your subscription. Once you have your capability statement ready, have someone proofread your Capability Statement and get feedback before sharing it with your potential buyers. Be sure to check spelling and grammar! A well-written Capability Statement will open doors to contracting opportunities and set you apart from your competitors. It is worth the time and effort to make sure it is done right.

A capability statement is a business profile document used to start building relationships with prospective clients, especially in business to business opportunities. A capability statement communicates what your company has to offer. It helps small businesses build confidence as a reliable supplier of goods or services.

AUG. 39 2022 INBUSINESSPHX.COM

En Negocios

AUG. 2022

INBUSINESSPHX.COM

FINANZAS / FINANCE

Las pequeñas empresas propiedad de latinos enfrentan obstáculos para acceder al capital para hacer crecer sus negocios por Edgar R. Olivo

El acceso al capital está frenando las empresas propiedad de latinos, según una encuesta reciente publicada por la Reserva Federal de los Estados Unidos. Los latinos tienen tres veces más probabilidades que la población general de iniciar un negocio, pero los factores culturales y económicos han obstaculizado el crecimiento de los negocios propiedad de latinos a un costo de billones de dólares. El camino para acceder al capital tiene muchos baches para los empresarios latinos que históricamente carecen de los recursos, las relaciones o el apoyo técnico adecuados para prepararse para un préstamo para sus pequeñas empresas. Según la encuesta de la Reserva Federal de EE. UU., “la pandemia ha impactado profundamente a las comunidades de color y las pequeñas empresas de color, a menudo en mayor medida que sus contrapartes blancas. Antes de la pandemia, las pequeñas empresas propiedad de personas de color, en conjunto, enfrentaron mayores desafíos que las empresas propiedad de blancos”.

El informe proporciona evidencia de que la pandemia exacerbó esos desafíos, un hallazgo importante a medida que esas empresas continúan capeando el impacto de la pandemia de COVID-19. Aquí hay siete hallazgos clave sobre los desafíos de los dueños de negocios propiedad de latinos. 1. Aproximadamente 1 de cada 10 empresas propiedad de personas de color no utiliza servicios financieros. 2. Aproximadamente el 57% de las empresas propiedad de latinos acudieron con más frecuencia a los grandes bancos para obtener financiamiento para pequeñas empresas. a. Para las empresas propiedad de latinos, el 49% busca servicios financieros en los grandes bancos. b. Para las empresas propiedad de latinos, el 31% busca servicios financieros en bancos pequeños. c. Para las empresas propiedad de latinos, el 12% busca servicios financieros en cooperativas de crédito. d. Para las empresas propiedad de latinos, el 9% busca servicios financieros en prestamistas en línea.

Los latinos son el segmento más emprendedor en los Estados Unidos y tienen tres veces más probabilidades que la población general de iniciar un negocio. Según una encuesta de crédito para pequeñas empresas de 2021 realizada por la Reserva Federal en 2021, solo el 32 % de las empresas propiedad de latinos cuentan con aprobación total para préstamos, líneas de crédito y adelantos en efectivo para comenzar su negocio.

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3. A proximadamente el 65% de las pequeñas empresas propiedad de latinos tenían más probabilidades de haber utilizado fondos personales en respuesta a los desafíos financieros de sus empresas. 4. El 75% de las empresas solicitaron financiamiento superior a $25,000 para cubrir los gastos operativos y expandir el negocio, buscar nuevas oportunidades o adquirir activos comerciales. 5. Una cuarta parte de las empresas de propiedad latina que solicitaron financiamiento buscaron $25,000 o menos para cubrir los gastos operativos y expandir el negocio, buscar nuevas oportunidades o adquirir activos comerciales. 6. Aproximadamente el 38% de las empresas propiedad de latinos tienen necesidades de financiación insatisfechas. 7. Solo el 32% de las empresas propiedad de latinos están completamente aprobadas para préstamos, líneas de crédito y adelantos en efectivo. Hay muchas oportunidades para ayudar a los dueños de negocios propiedad de latinos, y la responsabilidad no recae únicamente en las instituciones financieras, aunque pueden generar el mayor impacto. Al igual que cualquier propietario de una pequeña empresa, las empresas propiedad de latinos necesitan apoyo con el desarrollo del plan de negocios, la comprensión de los programas respaldados por la SBA, la creación de estados financieros y más. Como dice el famoso proverbio africano, “si quieres ir rápido, ve solo. Si quieres llegar lejos, ve acompañado”. Para ayudar a los propietarios de negocios de habla hispana a acceder al capital, la Fundación Compass CBS lanzó el Programa A2C, un acelerador financiero que ayuda a los propietarios de pequeñas empresas de Arizona a comprender los pasos para calificar para préstamos e inversiones de la SBA, así como a estar más preparados financieramente para futuras oportunidades y en cualquier situación económica. Este acelerador financiero gratuito tiene una duración de 10 semanas y solo se ofrece en español. Durante la capacitación, los empresarios de habla hispana seleccionados tendrán la oportunidad de reunirse en persona con expertos para recibir orientación y podrán participar en seminarios web en vivo en línea. Para obtener más información, visite minegocioaz.com.

Latino-Owned Small Businesses Face Hurdles in Accessing Capital to Grow their Businesses by Edgar R. Olivo

Access to capital is holding Latin-owned business back, according to a recent Small Business Credit Survey on firms owned by people of color, released by the United States Federal Reserve. Latinos are three times as likely as the general population to start a business, but cultural and economic factors have hampered the growth of Latino-owned businesses at a cost of trillions of dollars. The path to access capital has many potholes for Latino entrepreneurs who historically lack the right resources, relationships or technical support to prepare for a small business loan. According to the survey by the U.S. Federal Reserve, “the pandemic has deeply impacted communities of color and small businesses of color, often to a greater extent than their white counterparts. Before the pandemic, small businesses owned by people of color, in aggregate, faced greater challenges than white-owned firms.” The report provides evidence that the pandemic exacerbated those challenges, an important finding as those businesses continue to weather the impact of the COVID-19 pandemic. Here are seven key findings about the challenges faced by Latino-owned business owners. 1. About 1 in 10 firms owned by people of color do not use financial services. 2. Approximately 57% of Latino-owned firms more often turned to large banks for small business financing. a. For Latino-owned firms, 49% seek financial services at large banks. b. For Latino-owned firms, 31% seek financial services at small banks. c. For Latino-owned firms, 12% seek financial services at credit unions. d. For Latino-owned firms, 9% seek financial services at online lenders. 3. About 65% of Latino-owned smallbusinesses were most likely to have used

personal funds in response to their firms’ financial challenges. 4. Seventy-five percent of firms applied for financing greater than $25,000 to meet operating expenses and expand business, pursue new opportunities or acquire business assets. 5. One-quarter of Latino-owned firms that applied for financing sought $25,000 or less to meet operating expenses and expand business, pursue new opportunities, or acquire business assets. 6. Approximately 38% of Latino-owned firms have unmet funding needs. 7. Only 32% of Latino-owned firms are fully approved for loans, lines of credit and cash advances. There are many opportunities to help Latinoowned business owners, and the responsibility does not solely land on financial institutions, although they can create the biggest impact. Like any small business owner, Latino business owners need support with business plan development, understanding SBA-backed programs, creating financial statements, and more. As the famous African proverb says, “if you want to go fast, go alone. If you want to go far, go together.” To help Spanish-speaking business owners access capital, the Compass CBS Foundation launched the A2C Program, a financial accelerator that helps Arizona small business owners understand the steps to qualify for SBA loans and investments, as well as be more financially prepared for future opportunities and any economic situation. This free financial accelerator lasts for 10 weeks and is offered only in Spanish. During the training, selected Spanish-speaking entrepreneurs will have the opportunity to meet in person with experts for guidance and will be able to participate in live online webinars. To learn more, please visit mybizaz.com.

Latinos are the most entrepreneurial segment in the United States and are three times as likely as the general population to start a business. According to a 2021 small business credit survey done by the Federal Reserve in 2021, only 32% of Latino-owned firms are fully approved for loans, lines of credit and cash advances to start their business.

AUG. 2022

INBUSINESSPHX.COM

En Negocios

ESTRATEGIAS / STRATEGIES

6 consejos para climatizar su negocio para el verano en Arizona por Edgar R. Olivo

AUG. 2022

INBUSINESSPHX.COM

Tenemos un clima cálido en Arizona, y viene con aumentos sustanciales en nuestras facturas de servicios públicos. Según la Agencia de Protección Ambiental, las pequeñas empresas del país gastan más de $60 mil millones al año en energía. Sin embargo, mantener su negocio fresco durante los meses de verano no tiene por qué resultar en un aumento de sus gastos de energía. Las pequeñas empresas que invierten en eficiencia energética pueden reducir los costos de los servicios públicos entre un 10 y un 30 por ciento sin sacrificar el servicio, la calidad, el estilo o la comodidad, al mismo tiempo que realizan contribuciones significativas a un medio ambiente más limpio. Al volverse más eficientes energéticamente, las pequeñas empresas ayudan a reducir las emisiones de gases de efecto invernadero y mejoran sus propios resultados financieros. Por lo general, las pequeñas empresas pueden ahorrar tanto dinero y evitar tanta contaminación, por pie cuadrado, como las grandes corporaciones. Para comenzar, aquí hay seis consejos para ayudar a preparar su pequeña empresa para el intenso calor del verano en Arizona. 1. Use sus ventanas para evitar el calor. Al instalar cortinas gruesas en las ventanas, una pequeña empresa puede

evitar la entrada de calor a través de las ventanas durante los días de verano. Hay una variedad de tratamientos para ventanas y cubiertas para explorar que pueden mejorar la eficiencia energética durante el horario comercial. Controle la luz solar directa a través de las ventanas tanto en verano como en invierno para evitar o fomentar la acumulación de calor. 2. Use ventiladores y estrategias de ventilación para enfriar su espacio. Dependiendo de la pequeña empresa, puede generar calor en diferentes habitaciones y de muchas maneras. Las cocinas, los cuartos de lavado y otros requerirán una ventilación adecuada para evitar que el calor se propague a otras habitaciones. Use un ventilador de techo para distribuir el aire fresco creando un efecto de sensación térmica. Pero recuerde apagarlos cuando salga de una habitación o cierre el negocio por el día. Encuentre ventiladores Energy Star para obtener la máxima eficiencia energética. 3. Mantenga su sistema de enfriamiento y termostato funcionando de manera eficiente. Poner a punto su sistema de calefacción y aire acondicionado (HVAC) con mantenimiento o actualizaciones anuales puede ayudar a su pequeña empresa a ahorrar miles de dólares a largo plazo. Cambie o limpie regularmente los filtros HVAC e instale un termostato programable. Hoy en día, existen muchas tecnologías

Según la Agencia de Protección Ambiental, las pequeñas empresas del país gastan más de $60 mil millones al año en energía. Hay muchas herramientas disponibles para que las pequeñas empresas protejan su lugar de trabajo contra el calor del verano, como actualizaciones de equipos, reembolsos para ayudar a pagar las actualizaciones y mantenimiento de servicios públicos.

ENGLISH TRANSLATION emergentes y dispositivos inteligentes para ayudarlo a monitorear el rendimiento de su sistema HVAC desde su teléfono. Ajuste su termostato a una temperatura que le resulte cómoda y que proporcione control de la humedad, si es necesario. Cuanto menor sea la diferencia entre las temperaturas interior y exterior, menor será su factura total de refrigeración. 4. Considere una variedad de opciones de electrodomésticos y luces que funcionen a temperaturas más frías. La iluminación eficiente de los espacios ha recorrido un largo camino. Use sensores de movimiento para controlar el interruptor de encendido y apagado, instale atenuadores para usar menos energía para iluminar su espacio o use tecnología compatible con dispositivos móviles para controlar sus luces o electrodomésticos desde cualquier lugar. En cuanto al equipo, considere comprar electrodomésticos con certificación Energy Star y evite usar equipos que produzcan calor durante las horas más calurosas del día. 5. Evite que el aire caliente se filtre en su negocio. En Arizona, el aire caliente inevitablemente ingresará a su espacio de trabajo cuando abra la puerta o la ventana. Selle todas las grietas y aberturas para evitar que el aire caliente se filtre en su pequeña empresa. Agregue masilla o burletes para sellar las fugas de aire alrededor de puertas y ventanas. 6. Reduzca sus costos de calentamiento de agua durante el verano. El calentamiento de agua representa alrededor del 18% de la energía consumida en su negocio. Aprovechar el poder del sol también puede ayudarlo a mantener el agua caliente sin usar combustión o electricidad. Considere invertir en dispositivos de calefacción solar o usar agua a temperatura ambiente para los usos diarios. Esto puede tener un gran impacto en sus facturas de calefacción. La Comisión de Seguridad de Productos del Consumidor recomienda configurar su calentador de agua a no más de 120 grados Fahrenheit para evitar quemaduras. La configuración más baja también conservará energía y ahorrará dinero. Las pequeñas empresas tienen la oportunidad de volverse más resistentes al clima, y Arizona es el lugar perfecto para comenzar a transformarse en una operación más respetuosa con el medio ambiente. Tómese un momento para explorar el Programa Going Green and Going Smart para aprender cómo puede transformar su pequeña empresa uniéndose a la comunidad #GreenBizAZ. Esta iniciativa tiene como objetivo educar a los propietarios de pequeñas empresas en prácticas comerciales sostenibles para un futuro más limpio y verde en Arizona.

6 Tips to Help Small Businesses Become Ready for the Summer in Arizona by Edgar R. Olivo

We have warm weather in Arizona, and it comes with substantial surges in our utility bills. According to the Environmental Protection Agency, the nation’s small businesses spend more than $60 billion a year on energy. However, keeping your business cool during the summer months does not have to result in increasing your energy expenses. Small businesses that invest in energy efficiency can cut utility costs 10 to 30 percent without sacrificing service, quality, style or comfort, all while making significant contributions to a cleaner environment. By becoming more energy efficient, small businesses help reduce greenhouse gas emissions and improve their own financial bottom line. Small businesses can typically save as much money and prevent as much pollution, per square foot, as large corporations. To get started, here are six tips to help prepare your small business for the intense summer heat in Arizona. 1. Use your windows to keep out the heat. By installing thick window coverings, a small business can prevent heat gain through windows during the summer days. There are a variety of window treatments and coverings to explore that can improve energy efficiency during business hours. Control the direct sun through windows in both summer and winter to prevent or encourage heat gain. 2. Use fans and ventilation strategies to cool your space. Depending on the small business, it can create heat in different rooms and in many ways. Kitchens, laundry rooms and others will require proper ventilation to avoid heat spreading to other rooms. Use a ceiling fan to distribute cool air by creating a wind chill effect. But remember to turn fans off when you leave a room or close the business for the day. Find Energy Star ventilating fans for maximum energy efficiency. 3. Keep your cooling system and thermostat working efficiently. Tuning up your heating and air-conditioning (HVAC) system with annual maintenance or upgrades can help your small business save thousands of dollars in the long run. Regularly change or clean HVAC filters and install a programmable thermostat.

Today, there are many emerging technologies and smart devices to help you monitor the performance of your HVAC system from your phone. Set your thermostat at a temperature you find comfortable and that provides humidity control, if needed. The smaller the difference between the indoor and outdoor temperatures, the lower your overall cooling bill will be. 4. Consider a range of appliance and light options that operate at cooler temperatures. Efficient lighting for spaces has come a long way. Use motion sensors to control the on-off switch, install dimmers to use less energy to light your space, or use mobile-friendly technology to control your lights or appliances from anywhere. As for equipment, consider buying Energy Star-certified appliances and avoid using heat-producing equipment during the hottest parts of the day. 5. Keep hot air from leaking into your business. In Arizona, hot air will inevitably enter your workspace when you open the door or window. Seal any cracks and openings to prevent warm air from leaking into your small business. Add caulk or weatherstripping to seal air leaks around doors and windows. 6. Lower your water heating costs during the summer. Water heating accounts for about 18% of the energy consumed in your business. Harnessing the power of the sun can also help you keep your water warm without using combustion or electricity. Consider investing in solar heating devices or using room temperature water for everyday uses. This can have a big impact in your heating bills. The Consumer Product Safety Commission recommends setting your water heater at no more than 120 degrees Fahrenheit to prevent scalding. The lower setting will also conserve energy and save money. Small businesses have an opportunity to become more climate resilient, and Arizona is the perfect place to start transforming into a more environmentally friendly operation. Take a moment to explore the Going Green and Going Smart Program to learn how you can transform your small business by joining the #GreenBizAZ community. This initiative aims to educate smallbusiness owners in sustainable business practices for a cleaner, greener future in Arizona.

According to the Environmental Protection Agency, the nation’s small businesses spend more than $60 billion a year on energy. There are many tools available for small businesses to weatherize their workplace against the summer heat, such as equipment upgrades, rebates to help pay for upgrades, and utility maintenance.

AUG. 43 2022 INBUSINESSPHX.COM

En Negocios

AUG. 2022

INBUSINESSPHX.COM

VENTAS / SALES

5 preguntas para ayudar a los empresarios a realizar estudios de mercado por Edgar R. Olivo

Cuando está iniciando un negocio, conocer a sus clientes es una de las cosas más importantes que debe hacer. Sin este conocimiento fundamental, la creación de planes de marketing se volverá difícil y sus proyecciones de ventas siempre estarán fuera de lugar. Tener una intuición sobre su mercado solo le traerá más dolores de cabeza. En su lugar, esfuércese por desafiar sus suposiciones con datos y verá una diferencia en sus ventas. Es fácil descartar la importancia de la investigación de mercado. Después de todo, cuando piensa por primera vez en una idea de negocio, pasar horas investigando el mercado es lo último que le pasa por la cabeza. La mayoría de nosotros preferimos comenzar a fabricar y vender productos de inmediato que pensar en el valor de la investigación de mercado. Es posible que aún se pregunte: “¿Mi empresa realmente necesita realizar una investigación de mercado?” Responda las siguientes cinco preguntas para averiguarlo: ¿Está sirviendo a un mercado principalmente local? Comprender si está enfocado en vender localmente o globalmente marcará la diferencia en su mensaje y

proyecciones de marketing. Muchos propietarios de pequeñas empresas se dan cuenta de que pueden vender fuera del mercado local, pero aquellos que compran localmente buscan negocios dentro de su comunidad para apoyarlos. Considere quién es su mercado y decida el enfoque que mejor funcione para esa audiencia. ¿La categoría de negocio que está iniciando ya existe? Lo más probable es que usted no sea el único en el mercado que ofrece una solución a una necesidad. Pero la única forma de averiguarlo es investigando en su área para ver quiénes son sus competidores. Es posible que sus clientes ya lo estén comparando con otros competidores. Esta información puede ayudarlo a afinar su estrategia para atraer negocios y crecer dentro de su mercado. ¿Tiene un plan para diferenciarse de su competencia? Una vez que sepa quiénes son sus competidores, puede escribir lo que lo separa de la competencia. ¿Es la forma en que proporciona su servicio? ¿Cómo cree su producto? ¿Su precio? Sin reinventar la rueda, encuentre los mejores elementos dentro de su negocio que otros no tienen.

La planificación y realización de estudios de mercado es un componente crítico de cualquier negocio. Proporciona a los responsables de la toma de decisiones información importante para crear una nueva estrategia, lanzar un nuevo producto o mantenerse informados sobre los intereses de sus consumidores.

ENGLISH TRANSLATION

5 Questions to Help Small Business Owners Do Market Research by Edgar R. Olivo

¿La gente gasta lo suficiente en su tipo de negocio para apoyarlo a usted y a su competencia? Muchos clientes buscarán la mejor calidad y precio. ¿Tiene el precio correcto? Muchos propietarios de pequeñas empresas piensan que deben competir en precio y la verdad es que es una mala idea. Las guerras de precios solo dañan a las pequeñas empresas, así que asegúrese de comprender cómo gastan sus clientes en su tipo de producto o servicio. ¿Ya conoce muy bien su industria gracias a su experiencia laboral previa? Muchos profesionales con habilidades comercializables dan el salto de carrera a propietario de una pequeña empresa. Pero tener una habilidad no es suficiente para hacer crecer una pequeña empresa. Necesita saber si puede mejorar la industria investigando dónde, cómo y por qué su cliente ideal querría comprarle. Hacer estudios de mercado es la tarea de aprender más sobre sus clientes. El tiempo dedicado a comprender su mercado objetivo le ahorrará dinero y le hará ganar dinero a largo plazo. El tiempo que dedique al frente será un tiempo bien invertido porque sus estrategias y proyecciones estarán mucho más enfocadas en el láser para el éxito.

When you are starting a business, getting to know your customers is one of the most important things you need to do. Without this fundamental knowledge, creating marketing plans will become difficult and your sales projections will always be off. Having a gut feeling about your market will only bring you more headaches. Instead, strive to challenge your assumptions with data and you will see a difference in your sales. It is easy to dismiss the importance of market research. After all, when you first think of a business idea, spending hours on market research is the last thing on your mind. Most of us would rather start making and selling products right away than think about the value of market research. You may still be wondering, “Does my business really need to conduct market research?” Answer the following five questions to find out: Are you serving a primarily local market? Understanding whether you are focused on selling locally or globally will make a difference in your marketing message and projections. Many small business owners realize they can sell outside the local market, but those who shop locally look for businesses within their community to support. Consider who your market is and decide on an approach that works best for that audience. Does the category of business you are starting already exist? Chances are you may not be the only one in the market offering a solution to a need. But the only way to find this out is by doing research in your area to see who your competitors are. Your customers may already be comparing you to other competitors. This information can help you sharpen your

Planning and conducting market research is a critical component of any business. It provides decision-makers with important information to create a new strategy, launch a new product, or stay informed on the interests of their consumers.

strategy to attract business and grow within your market. Do you have a plan to differentiate yourself from your competition? Once you know who your competitors are, then you can write out what separates you from the competition. Is it the way you provide your service? How you create your product? Your pricing? Without reinventing the wheel, find the best elements within your business that others do not have. Do people spend enough on your type of business to support you and your competition? Many customers will shop around for the best quality and price. Are you priced right? Many small business owners think that they should compete on price and the truth is, that is a bad idea. Price wars only hurt the small business, so ensure you understand how your customers spend on your type of product or service. Do you already know your industry extremely well from prior work experience? Many professionals with marketable skills make the leap from career to small business owner. But having a skill is not enough to grow a small business. You need to know if you can make the industry better by researching where, how and why your ideal customer would want to buy from you. Doing market research is the task of learning more about your customers. Time spent understanding your target market will save you money while making you money in the long run. The time you spend up front will be time well spent because your strategies and projections will be much more laser focused for success.

AUG. 45 2022 INBUSINESSPHX.COM

Economy

DEVELOPING & GROWING BUSINESS DYNAMICS

The Bankruptcy Alternative You’ve Likely Never Heard Of ABC: The faster, more flexible and less expensive alternative to bankruptcy by Steve O’Neill

There is a quicker, less expensive and more flexible alternative to a business bankruptcy and liquidation that most business owners have never heard of — the Assignment for the Benefit of Creditors, or ABC. More than 13,000 businesses in the United States, including 210 businesses in Arizona, filed for bankruptcy between March 2021 and March 2022, many of which could have benefitted from an ABC.

WHAT IS AN ABC?

An ABC is a trust created by a contract between a distressed business that is ready to wind down, known as the assignor, and an independent third party known as the assignee. The assignor assigns its assets to the assignee, who holds those assets in trust for the benefit of the assignor’s creditors. The assignee is then responsible for monetizing those assets and distributing the proceeds to secured and unsecured creditors. This process follows state law, rather than federal bankruptcy law.

WHY CHOOSE AN ABC?

Steve O’Neill has been one of the leading national experts on Assignment for the Benefit of Creditors (ABC) for the last 20 years. O’Neill’s most recent ABCs include the infamous Theranos, Imax, Allume, Hired, Gigster, Common Networks, Teradact and Sutter Gold Mining. O’Neill currently serves as a senior advisor to Phoenix-based independent business advisory firm Resolute Commercial Services. resolutecommercial.com

AUG. 2022

INBUSINESSPHX.COM

There are several reasons why companies should choose an ABC instead of a traditional bankruptcy or receivership. • The cost of an ABC is usually less than half the cost of a bankruptcy. • The company, rather than a court, appoints the assignee to oversee the liquidation of assets and satisfaction of creditor claims. This allows the company to interview multiple candidates for the position of assignee, determine which candidate is the most qualified and experienced, and which one is the most cost effective. • Court procedures and oversight in an ABC are not as complex as those in a bankruptcy or receivership. This means fewer administration costs and a substantially quicker process. As a result, creditors can typically expect to receive their distributions in an average of about one year. Creditor distributions in a bankruptcy case, on average, take place three years after the bankruptcy begins. An ABC also gives management and board members the opportunity to move on more quickly to their next endeavor. The liquidation of a business can take months or, in some cases, years to complete. Most business owners cannot afford to, or simply do not want to, spend months or years selling off what remains of their business. Because the assignee liquidates the business’s assets and pays creditors on behalf of the business, owners can move forward with their lives almost immediately. Finally, the ABC process minimizes negative publicity, embarrassment and potential liability for management. Unless

sealed by federal law, all documents filed during a bankruptcy become public record. Because an ABC process does not go through the federal court system, records can be kept private.

WHO QUALIFIES FOR AN ABC?

With so many benefits, it seems like all businesses should choose an ABC instead of a bankruptcy liquidation. However, to move forward with the ABC process, a company will need authorization from its board of directors and approval from its shareholders. Securing that shareholder approval can sometimes be an obstacle to moving forward with an ABC and is one of reasons an ABC may not be appropriate for a public company. The ABC process is also not recommended for distressed companies with significant wage claims, large tax issues or important contracts that may not be assignable outside of bankruptcy.

WHEN SHOULD BUSINESSES CONSIDER AN ABC?

Each of the following warning signs may indicate that a company is in financial distress: • Four to six months of cash, or less, left on hand; • Loss of a major source of revenue, such as a major customer; • A significant judgment rendered against the company; • Failure, or a delay, in obtaining governmental approval of a product; • Breach of a major contract; • Breach of financial covenants; and • Fraudulent activity by management or board members. • A business experiencing any of these symptoms should meet with a business advisory firm or an attorney to see if an ABC or other alternative could be the right next step. To make the most of the meeting, company representatives should prepare the following information: • A cash flow forecast, because a consultant will need to understand the organization’s cash flow and projections for the next six months in order to make the best recommendations for a company; • A list of liabilities, including tax claims, wage claims and contingent claims; • Information about whether the company is able to raise additional capital; and • Information about whether the company or its assets can be sold. A good consultant will review legal issues and options with legal counsel and will work with management to evaluate alternatives to an ABC or bankruptcy so that management can make an informed decision about next steps.

An Assignment for the Benefit of Creditors (ABC) can cost less than half and be completed in one-third of the amount of time of a traditional bankruptcy. These benefits have caused an increase in popularity for the out-of-court ABC process in the past 25 years, especially with tech and venture funded companies with $1 million to $30 million in assets.

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LAW MATTERS TO BUSINESS

Increased Debt Limits for Both Subchapter V and Chapter 13 Cases Now, additional relief for companies and individuals by Carrie Tatkin

Carrie Tatkin is a partner at Radix Law, with a practice focused on consumer and business bankruptcy, representing both creditors and debtors. With more than 35 years of legal experience, Tatkin is adept at handling all aspects of her clients’ bankruptcy matters. radixlaw.com

AUG. 2022

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The Small Business Reorganization Act, commonly referred to as “Subchapter V,” is a streamlined, flexible process for small businesses to reorganize in bankruptcy. Subchapter V is a type of Chapter 11 case designed for debtors (an entity or individual) engaged in business where at least half their total debt is business related. Less procedurally complex than a traditional Chapter 11 case, a typical subchapter V case is quicker, less expensive, more debtor-friendly and more efficient. As part of the CARES Act, the debt limit for Subchapter V eligibility had been temporarily increased from its original amount of $2,725,625 to $7,500,000 to help small businesses through unprecedented times. That provision expired on March 27, 2022. With bipartisan support, on June 21, 2022, the Bankruptcy Threshold Adjustment and Technical Corrections Act was signed into law by President Biden. The Act once again increases the total debt threshold (as defined in the Act) for determining the eligibility of a debtor to proceed under Subchapter V to $7,500,000, effective retroactively to cases commenced on or after March 27, 2020, through June 21, 2024 (two years after the date of enactment of the Act). This extension of the higher debt limit in subchapter V cases will help address post-pandemic issues, such as the end of certain government assistance programs that include eviction and foreclosure moratoriums. As inflation and interest rates continue to rise, more companies and individuals may look to this reorganization option to protect themselves as creditors become more proactive in attempting to recover from their own pandemic losses. This new law also significantly increases Chapter 13 debt limits for two years, to $2,750,000. Chapter 13 cases are for individuals, not business entities. In addition to raising the debt limit, the Act makes important changes to eligibility under

With bipartisan support, on June 21, 2022, the Bankruptcy Threshold Adjustment and Technical Corrections Act was signed into law by President Biden.

Chapter 13 by changing the definition of an eligible debtor to “an individual with regular income that owes, on the date of the filing of the petition, noncontingent, liquidated debts of less than $2,750,000 or an individual . . . and such individual’s spouse . . . that owe . . . noncontingent, liquidated debts that aggregate less than $2,750,000.” There will no longer be separate debt limits for unsecured and secured debts, but rather one single limit for all debts. Like the Subchapter V increase, the increased debt limits for Chapter 13 will also sunset in two years. This increase will allow more individuals to reorganize without the need to file a generally more complex and expensive individual Chapter 11 case. Debtors with large mortgage debts will be able to cure defaults and maintain payments. Large judgments, tax liabilities or large deficiencies from foreclosures or repossessions will be less likely to exclude someone from Chapter 13 relief. With the expanded debt limits, more debtors who would have had no option but to file a traditional Chapter 11 case can choose the more streamlined Subchapter V case. And many debtors will be eligible to file a Chapter 13 who would have been disqualified merely because either their unsecured debts or their secured debts happened to exceed the prior debt limits. These revisions have taken into consideration the economic realities of small businesses and individuals, where owners, for example, have routinely guaranteed significant business debt. Business closures during the pandemic have triggered related liabilities that their owners never contemplated. Bankruptcy filings remain at historically low levels, but that tide is expected to change. Pandemic-related subsidies are expiring, creditors are becoming more aggressive, and interest rates and inflation are rising. Congress acted, providing better bankruptcy options to address the many scenarios threatening personal and business financial stability.

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Social Impact Running through October 2022, the Cystic Fibrosis Foundation’s Arizona’s Finest is a unique and fun fundraising campaign for the best and brightest young professionals of Arizona. Those who participate are given the opportunity to display their community leadership, acknowledge their employer, highlight their professional achievements and get creative, while raising funds to provide all people with cystic fibrosis the opportunity to lead full, productive lives. This year’s campaign kicked off in June and concludes in October, giving candidates five months to work together to hit their individual and group fundraising goals. Throughout the campaign, the Finest have the opportunity to learn about the CF Foundation and our community, understand the power of giving back, and utilize their leadership skills to connect and grow together as future leaders. finest.cff.org/azsfinest

AVP of Corporate Social Impact at Weedmaps, Tyler Butler is a corporate responsibility practitioner, social impact professional and contributor for several media outlets. She is a social impact executive who is passionate about sustainability. She is certified in ESG and corporate citizenship and holds degrees from ASU and Boston College. linkedin.com/in/tylerbutler

AUG. 2022

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Strunk Insurance Group – A Legacy of Giving And a culture of caring by Tyler Butler

Arizona loves its home-grown businesses. Many of them reciprocate this sentiment by giving back to society. For 40 years, the Strunk Insurance Group has served as one of these strong local leaders. Family-owned and -operated, SIG has a commitment to contribute and serve. The insurance company was founded in 1982 by Greg Strunk, a former Big 10 and NFL Football player with a young family to support and a dream. Today, SIG is a multi-generational, familyowned business. And, while SIG has grown a lot since it was started, its commitment to clients has never wavered. As a leading employee benefits and human resources consulting firm servicing clients across Arizona and the Southwest, SIG crafts comprehensive corporate benefits packages with a robust range of employee benefits services. It aids in education, enrollment, compliance and administration for its clients, and currently serves a few hundred clients. It’s been philanthropy, though, as an underpinning of SIG that has distinguished the group locally. Greg Strunk became a Phoenix Thunderbird in 1985 and was very active in the organization throughout the ’80s, ’90s, and 2000s. He recognized that the Thunderbirds would provide a fantastic opportunity to expand his network in Phoenix and give back to the community where he was raising his family. It was Greg who created a culture of caring that would transfer to his son Casey when he, later, took on the business. In fact, it was even philanthropy that brought together the next generation at the Strunk Insurance Group when, in 2011, Casey met his wife Teresa through a charity fundraiser. The couple met through the Arizona’s Finest campaign, which supports the Cystic Fibrosis Foundation of Arizona. In 2018, Casey and Teresa purchased the business from Casey’s father, Greg, keeping their ethos in line with the community-centric values the company was founded upon. “Giving back to our community with our time, talent and treasure is equally important to us as operating a successful business,” shares SIG president Casey Strunk. And this philosophy will remain a major pillar for SIG as the Strunks raise their daughters to become the next generation of community helpers. Weaving philanthropy into the business, SIG focuses on women’s, children’s and education-based causes. Often, SIG’s support is visible, sponsoring events or supporting nonprofits endeavors throughout the Valley. This financial support translates into community stewardship as well. SIG’s service as community also includes its team members. While SIG does not have an official volunteer program in place, the company organizes an “Adopt-A- Family” program around the holidays. Additionally, leadership encourages and supports volunteerism throughout the year and grants time off for

community or board of director service. The family hopes to someday have a family foundation to drive their dedication to charity further. Matt Davis, executive director of Executive Council Charities, shares, “As past president of Executive Council Charities, Casey’s leadership has inspired others to deliver superior results, and we can’t thank him enough for all that he has done to help the group and charity grow year after year.” As philanthropists at heart, both Casey and Teresa have served the community on several boards and committees, Casey with the 20/30 Club of Phoenix and Teresa the Big Brother Big Sister’s organization. SIG’s belief in paying it forward and helping others who need a hand up for a stronger community is a commitment its leadership takes seriously. “Since joining our board of directors in 2014, Teresa has made an immeasurable impact on our organization. As board chair, she led our agency through the uncertainty of a pandemic and helped us emerge stronger. Teresa is a compassionate and thoughtful leader, and we are grateful for her service to BBBS,” says Laura Capello, president and CEO of Big Brothers Big Sisters of Central Arizona. With a hyper local focus, the second generation of the Strunk group is poised as leaders in the Arizona community, Casey serving as the board chair for Special Olympics and on the board of directors for PCH50, a men’s charity group for Phoenix Children’s Hospital; Teresa serving as the board secretary for Academic Opportunity of Arizona, the Phoenix Committee Chair for KNOW Cares, in addition to her role as board chair for BBBS of Central Arizona. SIG’s multi-generational commitment to serve and lead continues to evolve along with the Arizona community. The current generation of Strunk leaders plans to serve the community where and when called upon. Serving as local stewards, dedicated to the great State of Arizona, their leadership will continue to foster a richer, more connected community. Strunk Insurance Group strunkgroup.com

The insurance company was founded in 1982 by Greg Strunk, a former Big 10 and NFL Football player with a young family to support and a dream. Today, SIG is a multi-generational, family-owned business.

Photo courtesy of Strunk Insurance Group

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A PATH TO FOLLOW

Disruption and Continuity – Preparing the Business Response Business continuity planning can be a company’s ace in the hole by Diane Thomas

Diane Thomas is president of Premier Sales, Inc., a business sales, merger and acquisitions firm located in Scottsdale, Arizona. For more than 30 years, Premier Sales’ client-centric focus and creative win-win mentality has produced extraordinary results with one of the highest industry success rates. premiersalesaz.com

AUG. 2022

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Business continuity planning is an essential piece of business planning. Continuity plans are created to ensure that the company is capable of continuing delivery of products or services at pre-defined acceptable levels following a “disruptive incident or circumstance.” A disruptive incident or circumstance includes a wide range of potential threats to a company — natural disasters, death or disability of a key employee or owner/founder, major incident involving the company that will become public, even a pandemic. One significant takeaway from COVID is companies were forced to be resilient. From our observations, the companies that came out stronger had similar characteristics: a written business plan with assigned responsibilities, accountabilities with completion dates; clearly defined vision, mission and value statements; company culture that valued its people, inside and outside the company; and leadership. So, what does all of this have to do with business continuity planning? While these companies may or may not have had a formal business continuity plan, they did have some of the key elements of such a plan that allowed the company to act swiftly and responsibly — consistent with past practices. Business continuity planning is a process that involves leaders within an organization. This is a team event. It’s a combination of business and disaster recovery planning that assumes the founder/owner is not available to lead the charge. The leadership team identifies potential threats to the company’s ability to withstand an unexpected, disruptive incident. Once the threats are identified, then the leadership team ascertains possible mitigation strategies and immediate action items. Mitigation strategies can include key-man life insurance, cyber security insurance coverage, multi-location cloud-based routine backup protocol, on-site first aid and CPR training, and a policy that certain key employees are not allowed to be on the same air flight, to name just a few. Here are items to review as part of the discovery and identification of potential threats: • Bank loan agreements — it’s important to understand the covenants, guaranty, security. • Company organizational documents — it’s important to understand authority parameters. • Organizational chart — it’s important to identify key positions. • Key customer contracts — it’s important to understand restrictive, default, assignment, performance and payment provisions. • Key supplier agreements — it’s important to understand guaranty, credit limit and payment provisions. • Insurance policies — it’s good practice for businesses to review their policies annually with their professional to

ensure they have appropriate coverage. • L ease agreement — it’s important to understand guaranty, terms and conditions. Here are items to consider in a business continuity plan: • Letter from founder/owner to employees and family — to communicate that a plan has been created to address the situation; that the owner has taken the time to ensure the business will continue to operate smoothly going forward; and that the owner has confidence in the leadership team or named successor to carry the company through this situation. • List of trusted advisors and contact information. • Action item list that details who will be contacted, by whom from within the company and what will be the communication. This includes external communication to key company relationships, such as customers, suppliers and banks. This also includes filing insurance claims for cyber security, fire or key man. • Business continuity details: ∘ Name of the person who will lead and manage in the interim period; ∘ Strategy for long-term reassignment of key employee or founder/owner responsibilities; ∘ Disaster recovery plan that includes established ad hoc meeting protocols and internal and external communications (public relations, image, customer perspective); ∘ Founder death or disability plan that may include the named owner, buy-sell agreement, business valuation, who will facilitate sale/transfer, employee stay bonuses, and internal and external communication; ∘ Secured protocol to retrieve passwords; and ∘ Protocol to protect data, processes, confidential materials, intellectual property, etc. Having a written business continuity plan gives the leadership team and founder/owner peace of mind. And, in the event it is necessary to deploy the plan, people will lead with confidence. While it’s not possible to identify and plan for every possible threat, the process of developing the business continuity plan strengthens the team’s ability to work collaboratively on difficult topics. But this is not a stagnant document; it requires continual updating and review because change today is happening as such a fast pace. What looked benign yesterday could be catastrophic unaddressed. This process will mirror how people will respond in the throes of an unexpected incident. And a company may find its people will pull together especially when they have the same shared vision, mission and values.

While it’s not possible to identify and plan for every possible threat, the process of developing the business continuity plan strengthens the team’s ability to work collaboratively on difficult topics.

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LOUDER THAN WORDS

Tough Talks – How to Have Difficult Conversations with Employees Getting past the hesitation and awkwardness by Dr. Tricia Groff

One of my clients, a business owner, reached out to me and said, “How do I tell this person that they need to keep their personal stressors from impacting everyone at work without sounding like a jerk?” The situations may change, from telling employees they are underperforming to telling them their attitude is alienating everyone around them to telling them they are being fired. (My perennial favorite is how to handle bad breath and body odor). Leaders across all levels of experience, age and title often feel inept about how to address difficult conversations. They are smart and skilled, and their reluctance often stems from their strengths: kindness, a desire for harmony, and insight into the downstream impact of conversations.

GUIDELINES THAT HELP

Tricia Groff, Ph.D., is an executive advisor and executive coach who works with high achievers and their organizations. She is also a licensed psychologist who brings 20 years of behind-thescenes conversations to her recommendations for workplace wellness and profitability. Dr. Groff is the author of Relational Genius: The High Achiever’s Guide to Soft-Skill Confidence in Leadership and Life. drtriciagroff.com

AUG. 2022

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Difficult conversations with employees may never feel easy, but here are some guidelines to make leaders feel less alone as they walk through them. Waiting makes it worse. The longer leaders wait, the more time, energy and focus they lose worrying about the impending meeting. Everyone knows this at a logical level, but most people rationalize delaying the conversation by waiting for the right time. I always ask myself, “Will I ever want to have this conversation?” and “Will waiting make it better?” Usually, the outcomes of waiting include more stress, a worse situation, an erosion of patience and fewer chances for a positive outcome. All conversations should have a goal and a followup plan. Whenever I help leaders prepare for a difficult conversation, I ask them what they are trying to achieve. The goal governs the approach, creates clear expectations about outcomes, and provides a path for follow-up. The follow-up plan needs to include the timeframe and what action items will be reviewed. Follow-up provides emotional safety for employees because they know where they stand. Time and place matter. Leaders can best help the employee in question and others in the organization by paying attention to the unique variables that govern time and place. For example, Friday afternoons are great times to meet with particularly disruptive employees who may need the weekend to cool down. If an employee has two important meetings, one may want to avoid scheduling a difficult conversation in the middle of them. Coffee or lunch outings are never appropriate for difficult conversations — the social atmosphere lacks privacy and sends mixed messages. Consult with HR or other trusted advisers. Many initial difficult conversations can happen one on one, with appropriate documentation. In some situations, leaders may want HR present. The upside to having only two people in the room is increased openness and vulnerability. The downside is

that it makes the organization legally vulnerable in he said/she said scenarios. Small companies without dedicated HR may want to consult with another leader who is stable and trustworthy. This person can also act as a witness if necessary. Single business ownerleaders should document everything and consult with an adviser or attorney as appropriate. Deal with emotions. Many people try to mask all emotion or hold it in until they explode. When leaders are angry, it can be helpful to vent to someone else first. If leaders are nervous or frustrated, they can let the employee know that the conversation is difficult. I’ve had people tell me first-hand that an employer’s own stress or empathy made difficult conversations easier. Leaders who are uncomfortable with emotion themselves often have difficulty tolerating it in others. If they rush to make an employee’s emotions go away, they risk coming across as cold, glossing over an issue, divulging too much or making promises they can’t keep. There’s power in encouragement. Difficult conversations with well-liked employees can be especially hard. Leaders can honor good employees with a straightforward approach that integrates tough feedback with encouragement. This combination of honest and specific feedback helps employees feel valued and respected. Difficult conversations require a leader’s utmost courage. When leaders can step up to the plate, they help their employees grow, protect other people on the team and allow their organizations to thrive.

PITFALLS TO AVOID

On the flip side are things I tell people to not do. Do not ask people to lunch or coffee and fire them. Do not set a meeting five days ahead. It’s one thing if oneon-ones are regular items. However, if such meetings are not normal occurrences with an employee, they will raise anxiety. By the time the meeting occurs, the heightened anxiety will guarantee that it will be much muddier than it needed to be. Do not reprimand people in public (unless you are purposely trying to shame them, and you want them to hate you). Some people have said to me, “I’m so angry, I don’t care.” The problem is that this mindset makes the leader and the company more liable to negative ramifications.

Leaders across all levels of experience, age and title often feel inept about how to address difficult conversations. They are smart and skilled, and their reluctance often stems from their strengths: kindness, a desire for harmony, and insight into the downstream impact of conversations.

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INVESTING IN COMMUNITY

Fueled by Economic Recovery, Giving Reaches a New High But the wealth divide grows in 2021 by Richard Tollefson

Strong increases in individual, foundation and corporate giving highlight the overall philanthropic picture in 2021. The largest-ever one-year increase in corporate giving was driven by an upswing in the Gross Domestic Product and growth in stock and financial markets. Overall giving in the U.S. increased 4% in 2021 to a new high of $484.85 billion. But, while the stock market surged, unemployment dropped and philanthropy increased, 2021 is also a story of the rich getting richer and the poor getting poorer. The need for food, housing, healthcare and social and racial justice increased for those of lower socio-economic status. Fortunately, wealthier Americans continued to provide the critical philanthropic support to address the increasing challenges facing society’s most in-need and at-risk. Last year’s giving saw a return to normal giving patterns, following 2020’s crisis-response activities: • Funding for arts and cultural institutions increased nearly 22%. • Individuals accounted for 67% of all philanthropy, with foundations at 19%, bequests 9% and corporations 4%. • Seven of nine sectors benefiting from U.S. philanthropy saw increased support. • The largest five sectors are religion, education, human services, grantmaking foundations and public society benefit organizations.

Richard Tollefson is founder and president at 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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What can we learn from this? Here are our key takeaways: Economic recovery is strong but mixed. Despite challenges, the economy performed well in 2021. The economic stimulus kept many afloat and helped fuel a rapid rebound from COVID. Yet, recovery has not been distributed equally. It’s important for organizations to understand where needs are greatest and align priorities and goals around those individuals and issues. Be aware of persistent challenges. The economic, social and political events during 2020 continued to impact giving in 2021, with increased inflation adding to the mix in 2022. Nonprofits should stay attuned to these issues and authentically share how their organization is addressing them. Consider the global impact. We live in a global economy and an interdependent world where the effects of war, climate change and natural and man-made disasters are experienced worldwide. Nonprofits should understand where their organization fits in and makes an impact both in their own backyard and around the world. Prepare to navigate challenges. Organizations will face new and ongoing internal challenges such as staffing and workforce development, supply chain management, technological changes and elevated levels of demand. To effectively navigate these ongoing issues, organizations will need flexibility and innovation.

Diversify fundraising. Giving from individuals, foundations and corporations all increased in 2021. Nonprofit organizations can leverage this trend by accelerating efforts to grow and diversify fundraising in 2022 and beyond. Know how donors want to give. Individual giving has become more diverse and complex. It’s essential to know donors’ passions and goals, as well as their preferred instruments and means of giving. This in-depth donor understanding allows nonprofits to structure the right gift at the right time and leads to greater fundraising success. Pursue expansive relationships. The rise in corporate giving presents new opportunitiesto pursue deeper relationships such as s ponsorships, cause-related marketing, workplace giving, employee engagement, C-level leadership and impact and sustainable investments. Focus on the greatest potential. Gifts are bigger, donors are fewer and, at most levels, retention is challenged. Yet, the need is still great. Nonprofits should focus fundraising efforts where the potential and return are the greatest, while also building their base for future support. This is best achieved by creating a direct and compelling case that shows needs persist and support is vital. Don’t rest. Continue to ask. While seven of nine sectors rebounded and some reached all-time highs, organizations must continue engaging donors and asking for support. Particularly those that did not see an increase, keep the faith! American generosity is resilient. A year of continued growth is a testament to the resiliency of American philanthropy. Nonprofits can appeal to donors’ passions, values and desires to create impact. And, as always, don’t forget to ask. These findings from the 2022 Giving USA Report measure the state of philanthropy in 2021. The Giving USA Report is the longest-running and most comprehensive report on philanthropy in the U.S. and is published and supported by the Giving USA Foundation, the Indiana University Lilly Family School of Philanthropy and The Giving Institute.

IN SUMMARY

Giving in 2021 reminds us of the resiliency of philanthropy and the continued generosity of the American people. While the wealth divide grew, the affluent did not turn their backs on those in need, continuing to support human services and public society benefit organizations.

The 2021 numbers from Giving USA, which produces the nation’s longest-running annual report on philanthropy, show seven of nine sectors benefiting from U.S. philanthropy saw increased support.

WE VALUE WHAT WE OWN

2022 Lexus LC 500 Power is meaningless if it doesn’t make us feel something. With a naturally aspirated 5.0-liter V8, a 7,300-rpm redline and a blistering 4.4-second 0-to-60 time, this is a truly visceral driving experience. The engine channels sound through the cabin from front to rear as it accelerates, creating unique frequencies calibrated to elicit specific emotional responses. Specifically designed for the LC, this exclusive transmission has one of the fastest shift times among conventional automatic transmissions, changing gears in 0.12 seconds. The system also adapts to the driver’s driving style by selecting the

optimum gear based on vehicle speed, acceleration and the driver’s driving habits. The high-performance braking system in the LC boasts massive monoblock aluminum six-piston front calipers with two-piece brake rotors, as well as large, high-frictioncoefficient brake pads for serious stopping power. The stunning taillamps were inspired by the dramatic glow of a jet’s afterburners. Crafted to produce an infinite mirror effect, they feature 80 LEDs on either side. This evocative design creates even, dimensional illumination with impressive depth and no visible grain. And, when turned off, a sleek gray surface is revealed. The available full-color Head-Up Display can project key information about audio, speed, current gear and RPM onto the windshield. Display information can be adjusted to suit the driver. The motion of the flush exterior door handles was inspired by the welcoming gesture of having a door courteously held open. On approach to the vehicle, the handles gracefully extend outward, and inset LEDs illuminate. As the doors close, or after 15 seconds, the lighting fades. —Mike Hunter

2022 LEXUS LC 500 MSRP: $100,725 City: 16 mpg Hwy: 25 mpg Trans: 10-speed automatic 0-60: 4.4 sec

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Regeneration via Headset There’s no time like the present to invest in tomorrow, which means taking control of our health today. The Cove headset and companion IOS app are a great way to track our health and improve our body’s regeneration through sleep and relaxation. Cove is a wearable technology that uses gentle vibrations to mimic human touch, providing feelings of calm so the body and mind function at the

Photos courtesy of Lexus (top), Cove (bottom)

highest and most efficient level. It activates our “seventh sense” of interoception (the perception of sensations from inside the body)

mentally stronger after each session. Cove comes equipped with

that enables us to detect our body’s internal needs and regulate them

a best-in-class PPG heart rate sensor and a 3D accelerometer.

accordingly. Being in tune with our body helps improve our efficiency

Weighing only 20 grams, Cove sits comfortably behind the ears and

during the day, as well as relaxation and renewal at night, the result

uses dual-mode Bluetooth 4.2 to pair wirelessly with a smartphone.

being better sleep, less stress and the ability to be more resilient and

—Merilee Kern, a Forbes Business Council, Newsweek Expert

adaptable in life, including a better ability to handle emotions.

Forum and Rolling Stone Culture Council member

Backed by scientific studies and research from Brown University and Harvard Medical School, Cove allows its users to become

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Membership plan: 6-, 12- or 18-month Cove feelcove.com

App for That Owners can manage their vehicle on the go with the Lexus app, which makes it possible to do everything from starting the vehicle remotely from a smartphone to scheduling a service appointment with a few simple taps, and much more. The Lexus app is available for download from the Apple App Store® or Google Play™ store.

AUG. 57 2022 INBUSINESSPHX.COM

MEALS THAT MATTER

P.C.G. GREEN CHILE SKILLET CORNBREAD Skillet: $12; slice: $3

RAMONA FARMS SUPER FOOD SALAD Tepary beans, Sonoran wheat berries, arugula, dried cranberries, pumpkin seeds, chickpeas, organic winter squash and panela cheese with chiltepinDijon vinaigrette Large: $12; small: $8

BUTTERMILK PIE Sweet buttermilk custard and caramel sauce $10

Phoenix City Grille: A Hidden Gem in the Heart of the Valley by Molly Cerreta Smith

Phoenix City Grille has been quietly experiencing success as a locals’ and visitors’ favorite since it opened its doors in the iconic Bethany East shopping center in 1997. Nestled into the Madison neighborhood with many surrounding historic districts, Phoenix City Grille is owned and operated by Sheldon Knapp while Executive Chef Micah Wyzlic, who has worked for the restaurant for nearly 15 years, heads up the kitchen. Simply known as PCG to many, the restaurant boasts a friendly neighborhood tavern vibe and an unpretentious fine dining menu, which is complemented by an excellently curated wine selection, specialty cocktails, full bar (including a scotch, whiskey and bourbon list) as well as bottled beers and beers on tap, many of which are from local Arizona breweries such as 4 Peaks, Lumberyard and Mother Road. The restaurant even offers innovative mocktails for those who prefer a nonalcoholic libation. In addition to local craft brews, Phoenix City Grille sources local ingredients whenever possible, seeking products that are grown and produced locally throughout the state. A few of the vendors’ ingredients they incorporate into their menu come from the likes of Crow’s Daily, Schreiners Sausage, Ramona

Farms, Rhiba Farms, Mount Hope Spices, Mediterra Bakehouse, La Sonorense, Shamrock and Passport Coffee. The restaurant is open for lunch and dinner and offers brunch on Sundays. Diners can start with PCG’s Green Chile Skillet Cornbread, which is not only gluten-free (in fact, many dishes on the menu are) but award-winning. And no meal should ever end without a slice of the restaurant’s famous Buttermilk Pie. The all-day menu maintains regulars’ favorites and the restaurant’s most popular dishes — ranging from eclectic to classic comfort. However, Chef Wyzlic also incorporates new dishes with the season, utilizing fresh and at-peak ingredients to keep things exciting for diners. Over the years, PCG has grown to become a true neighborhood restaurant, with many regulars who come in time and again for their favorite meals. During COVID closures and seating restrictions, the restaurant offered family-style meals to go in order to still accommodate its clientele. Doing everything it could to remain open to not only continue to employ its staff but to provide for its regulars, Phoenix City Grille continued to modify its offerings to stay open and continue to thrive to overcome those challenges. Phoenix City Grille continues to thrive today, welcoming newcomers and regulars alike every day of the week. Phoenix City Grille is open Monday and Tuesday from 11 a.m. to 8 p.m., Wednesday through Saturday from 11 a.m. to 9 p.m. and Sunday from 10 a.m. to 8 p.m. (including brunch hours 10 a.m. to 3 p.m.). Happy hour is offered in the bar and patio seven days a week — Monday and Tuesday from 3 p.m. to close and Wednesday through Sunday from 3 p.m. to 6 p.m. Phoenix City Grille (602) 266-3001 phoenixcitygrille.com

AUG. 2022

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Phoenix City Grille is a rarity in the restaurant business with its long-time employees and low turnover.

Photos courtesy of Phoenix City Grille

5816 N. 16th St., Phoenix

GLOBAL CHAMBER

Global Chamber® Events

SUMMER 2022

globalchamber.org/events

At Global Chamber®, we have many signature events coming up this summer, fall and ongoing. by Alicia Dominguez Women in Global Leadership – These are signature events at Global Chamber, ongoing from our early days, spotlighting women leaders and their challenges and opportunities. International State of the Metro – Discussing how well a region is becoming more global, including with exporting, foreign direct investment, immigration and more. Grow Globally Fair – All the global business resources for a region, all together, one time per year, to assist those leading global growth activities including exporting. Export League – We spotlight members who are exporters to get their take on the challenges and opportunities and help them find new clients in new markets.

Global Is Good

Young Global Leaders – We connect young global leaders looking to make more of a global impact with others in trade to increase everyone’s success.

Global Innovation Summit – We give global leaders an opportunity to discuss their innovative approaches, to share success, and expand success to others. Global Logistics and Supply Chain – These are regular events that cover the evolving situation with ocean freight, air freight, resourcing products and more. Global Leadership – We discuss all aspects of business leadership, talent retention, leading extended teams, work from home and much more.

Photo courtesy of Global Chamber

by Doug Bruhnke

Continued from page 1

World peace is a natural result of global trade. Trade encourages discussion, listening, understanding, flexibility, resilience, reasonableness, negotiation, compromise, commerce, sustainability and success. Global trade across economies also drives the investor “portfolio effect,” smoothing out the edges and impacts of recessions. My first time living overseas was in Japan, responsible for Asia, at a booming economic time for that region. It happened that there was a recession during those years for the U.S., and I wasn’t able to see it, except for some bad decisions made by U.S. managers who didn’t have a global view, presuming everyone on the world was struggling. Absolutely not! Everyone is busy, but none of us should be too busy to not stop for a moment and do the right thing. Most exporters have holes in their international activities, and that’s OK because we’ll make it through together. The opportunity is there, and the result will make everything better, if we collaborate and work together on growing globally. Global is good. Not taking action is bad, especially right now as the world is particularly challenged on multiple levels. Invest now and get the benefit for yourself and your business. Doug Bruhnke is founder and CEO at Global Chamber. Global Chamber is a registered trademark of Global Chamber, LLC since 2014.

Global Chamber®

Global Chamber Phoenix and Tucson Global Chamber® is a growing and collaborating community of CEOs, executives and leaders in 525 metro regions around the world taking on global business and advancing growth and success. Contact us at info@globalchamber.org or (480) 595-5000. Chairman/CEO Sponsors Bank of America Gazelle.ai Spencer Fane Squire Patton Boggs Thunderbird School of Global Management Velocity Global President Sponsors City of Peoria City of Phoenix City of Scottsdale City of Surprise Cresa Phoenix General Southwest Insurance Lee & Associates PNC Bank Sunflower Bank Tetakawi Special Global Advisors Hank Marshall, UK Honorary Consul in Arizona Melissa Sanderson Michael Patterson, Spencer Fane Kiyoko Toyama, Japanese Friendship Garden Jimmy Douglas, Tesla Electric Cars Eduardo Gonzalez, 258 Consulting Susan Shultz, The Board Institute Committees All Metros, Industries and Regions Contacts

Business Services: Cesar Trabanco, cesar@globalchamber.org Membership: Yvonne Luker yvonne@globalchamber.org Deputy Director: Mike Langley mike.langley@globalchamber.org

Global Chamber®

Photos courtesy of Global Chamber

CEO/Founder: Doug Bruhnke, doug@globalchamber.org

Doing Business in … Asia by Alexandra Scott and Hailey Jiwon Baek

Global Chamber® is growing in 525 metropolitan areas around the world, and this summer we took extra steps to grow in key Asian countries, including Japan, South Korea, India and China. In Japan, we identified 12 more chapters besides Tokyo, from Fukuoka in the south (Kyushu) to Sapporo in the north (Hokkaido). We’re meeting with leaders in all the cities to ramp up the activities. We also held a “Doing Business in Japan” globinar that included market overviews and more opportunity analyses, and we held more events, including a virtual dining session with a focus on Japanese sake. A summary in English and Japanese is shown below for one of the chapters in Japanese. A similar approach is being used in South Korea, with five chapters already forming — Seoul, Busan, Daegu, Daejeon and Gwanju — led by Dr. Wonsok Yun. We had held a “Doing Business in South Korea” session earlier in the year with Dr. Yun. Welcome to Global Chamber Fukuoka! Members of Global Chamber Fukuoka gain access to millions of prospective customers, employees, partners and trusted connections in 525 metropolitan areas around the world. By offering proactive support, Global Chamber helps member firms export, import, invest and be more successful with their cross-metro and cross-border business. We’re the only organization in Japan with hundreds of locations outside the country that support attraction, landing, exporting, importing and investment. Our network of more than 100 million trusted connections is a key asset to companies looking to grow ... from Fukuoka to anywhere. Join us at Global Chamber Fukuoka.

グローバルチェンバーⓇ福岡へようこそ. グローバルチェンバーⓇ福岡のメンバーは、世界中の525の大都市圏で活躍する、何百万もの潜在顧客や従業員、パートナー、信頼できるコネクションへアクセスすることができます。グローバルチェンバーⓇ の積極的なサポートによって、メンバー企業の輸出入や投資、都市圏や国境を超えるビジネスを更に成功へと導くお手伝いをします。私たちは日本で唯一の、海外に数百もの拠点を有する組織で、集客から成約、輸出入や投資に至るまでをサポート致します。1億超の信頼できるコネクションから成る私たちのネットワークは、福岡から世界に向けて成長を目指す企業の重要なツールになるでしょう。グローバルチェンバーⓇ福岡へのご参加をお待ちしております。ご質問やご連絡は以下のメールアドレスまでお願い致します。 Alexandra Scott is a student at Pomona College and an intern at Global Chamber. Hailey Jiwon Baek is a graduate of Daegu University and an intern at Global Chamber.

Doing Business in … Mexico and Latin America by Cesar Trabanco

Photos courtesy of Global Chamber

We have regular events both in English and Spanish for our members located in Mexico and across Latin America. We’ve begun events around the world in other languages, too, although most of our activities, especially the virtual globinars, are in English.

Last month, among our launched chapters was San Salvador, El Salvador, and Carolina Moreira, executive director of Global Chamber, led a discussion about the value of global business and began to conduct connecting opportunities for regional leaders including members in other regions open to new opportunities in El Salvador. We also have been holding technology conversations that spotlight new opportunities, like the recent conversation at Global Chamber on bitcoin mining in Costa Rica, and last month we discussed NFT markets in Latin America. Opportunities exist throughout the region in traditional

segments like agriculture, manufacturing, industrial, infrastructure and healthcare, and in new areas including fintech, cannabis and much more. Welcome! Cesar Trabanco is VP of Business Services at Global Chamber. GlobalChamber.org

Adapting Research & Development to the New World by Maimun Mustafa

Microsoft (USD 19.3 billion), Apple (USD 18.8 billion), Samsung (USD 18.8 billion) and Facebook (USD 18.5 billion). Their innovations have created stockholder value along the way, generally keeping them one step ahead of competitors in a faster moving world. Matthew Stanton, Forbes Councils member of the Forbes Business Development Council, wrote about important steps to deploy effective and successful R&D strategy: First, it’s important to have a clear strategic framework. Stanton wrote that the primary step toward building an organization’s strategic framework is to comprehend which aspects need R&D focus. When there are objectives and goals, intrinsic issues of success, measurements

and reporting can be dealt with. It’s about the allocation of scarce resources, so it’s vital to be selective, test appropriately, analyze metrics, identify what doesn’t work and allocate resources to resolve any of the most important subsequent issues. Second, there should be a dedicated R&D strategy management team. The devoted team must have carefully assigned roles, responsibilities and accountability to help determine whether or not the R&D program is implemented effectively and make changes along the way. Designated individuals should work with the group to have a defined research, design and new product process, with assigned roles. Moreover, they need to have a rigorous testing methodology. In fact, the conclusive part of understanding the effectiveness of R&D organizations is to ensure the right test environment. A proper test environment will take all these factors into account to ascertain when a product tweak is needed. Given the exponential rate market changes along with technology advancement, more modern approaches to R&D are important for companies to stay competitive. The risk of stagnation is greater than the risk of innovation, so executing defined and dynamic R&D strategies is a necessary part of surviving and thriving in 2022 and for the future.

Photos courtesy of Global Chamber

Research & Development approaches as we’ve known them can no longer provide the needed results in today’s dynamic, “VUCA” (Volatile, Uncertain, Complex, Ambiguous) global business ecosystem. Improving R&D approaches is an absolute necessity. Leaders must become more aware of faster changes, and subsequently to be nimble and stay one step ahead, using technologies that include artificial intelligence to lead the way. R&D is linked to innovation in the corporate arena and the public sector as well. The end goal is to take new products and services to market by allowing a company to stay ahead of its competition by designing new solutions and improving current offerings, based on evolving market needs. With longterm profitability in mind, R&D divisions seek patents, copyrights and trademarks as innovations generate value to meet new market needs. This requires companies to innovate and employ R&D supported by substantial capital, directly or outsourced. Software technology companies tend to spend the most on R&D. According to public company filings, the following well-known companies carried out the greatest research and development expenditures in 2020: Amazon (USD 42.7 billion), Alphabet, Inc. (USD 27.6 billion), Huawei (USD 22.0 billion),

Maimun Mustafa is the executive director of Global Chamber® Dhaka.

Global Chamber®

Global Chamber at Thunderbird by Yvonne Luker

Global Chamber® has moved our global headquarters into the new headquarters of Thunderbird School of Global Management in Phoenix, Arizona, USA. Over the past few months, we have held inperson and virtual events that continue our global business activities, and have introduced our global tribe to Thunderbird through CEO/ Dean Sanjeev Khagram, who spoke to our members about the school and about what this upgrade means for the global tribe. You may find the discussions, including CEO Khagram’s presentation, on the Global Chamber blog. Thunderbird School of Global Management is the world’s premier leadership and management school. More than a school, Thunderbird is a worldwide network of leaders, managers, entrepreneurs and intrapreneurs innovating across the private and public sectors to shape the Fourth Industrial Revolution.

In addition to events, Global Chamber is pleased to support the activities of the school. For instance, this summer we’ve had six interns at our headquarters, and four of them are Thunderbird students. And there is a special scholarship for members of Global Chamber, the “Phoenix Global Rising Scholarship.” Any member or staff of Global Chamber may receive a $30,000 scholarship toward Thunderbird’s Master of Global Management degree, or $20,000 toward the Executive Master of Global Management for Fall 2022 and Spring 2023. “Welcome members of Global Chamber as we move to the next level of collaboration,” said CEO Dr. Sanjeev Khagram, director general and dean of Thunderbird School of Global Management since 2018. Dr. Khagram has overseen a dramatic revitalization of Thunderbird, now part of Arizona State University, ranked No. 1 “Most Innovative School.” Yvonne Luker is founder and CEO at Global Chamber.

Just Say NO to Networking Photos courtesy of Global Chamber

by Cesar Trabanco

We don’t require members of Global Chamber to “network” in order to find new clients and resources. That can feel like a needle in a haystack adventure and isn’t productive unless it is designed properly. Networking can be useful for younger leaders as they build their networks, but should it be necessary for more experienced leaders? Not always. The alternative? “Connecting” — being connected through warm introductions and tailored events like the Global Chamber “League of Extraordinaries,” “League of Opportunities,” “Export League” and more that are designed to create focused connections just right and in the targets of members. As a member of Global Chamber, there’s no need to network, but by being connected through warm introductions and focused introductions, magic and business growth result. Cesar Trabanco is VP of Business Services at Global Chamber. GlobalChamber.org

Intel, Arizona and Asia in SemiConductor We held a special event on “Semiconductor Security and Supply Chain: Global Investments and the View from Japan” with the support of Thunderbird and the Consulate General of Japan in Los Angeles. Thank you, Consul General Muto, for your leadership on many fronts. You may watch the program on the Global Chamber YouTube channel. The promise of rising investment from Japan, joining industry leaders from Taiwan and Europe, was also explored. Special thanks to Jason Bagley of Intel Corporation for his leadership and contributions, including an outstanding industry overview. Special thanks as well to Mayor Kate Gallego and Senator Mark Kelly, and all the attendees and participants. Doug Bruhnke is founder and CEO at Global Chamber®.

Juneteenth and Global Opportunities by Dana Austin

Juneteenth is a national holiday in the United States and one in which there is an opportunity to educate the world about the end of slavery in the U.S. Slavery officially ended in Galveston, Texas, two years after President Abraham Lincoln freed the slaves. So this year we held a first conversation at Global Chamber® about Juneteenth — a remembrance, a celebration and a discussion on how we can make more progress around the world. This year, we remembered the day by addressing how to increase the business growth of Black businesses in America. How do we move from Juneteenth to an initiative to help us grow collectively around the world? True growth and progress can be achieved if we connect the relationships that were broken from slavery and build companies

Global Chamber®

from continent to continent in unity. With the Global Chamber platform and the growth of technology, we have the best opportunity to grow together. We invite you to join us on this journey as we host additional events on

business growth throughout the year. Watch for more from several of us leading this. Dana Austin is executive director at Global Chamber Atlanta.

Photo courtesy of Global Chamber

by Doug Bruhnke

Austin, Dana, 64

Fettke, Rich, 37

Luker, Yvonne, 63

Strunk, Greg, 50

Averitte, Randall, 13

Gorrill, Lindsay, 26

Luu, Kim, 26

Strunk, Teresa, 50

Barr, Kelly, 26

Groff, Tricia, 54

Marrocchino, Lisa, 66

Tatkin, Carrie, 48

Barry, Sherri, 12

Grote, Tom, 22

Michalowicz, Mike, 37

Thomas, Diane, 52

Brodsky, Jon, 24

Hansen, Mark, 22

Mustafa, Maimun, 62

Tollefson, Richard, 56

Bruhnke, Doug, 59

Hess, Jacob, 24

Nagy, Jack, 12

Trabanco, Cesar, 61, 63

Butler, Tyler, 50

Hood, Sean, 26

O’Neill, Steve, 46

Ulbrich, Christian, 26

Camacho, Chris, 26

Johnson, Christina, 17

Rivera, José Luis Cruz, 20

Wheeler, Carrie, 22

Capello, Laura, 50

Kelly, Carrie, 26

Seitz, Joy E., 11, 26

White, Dave, 26

Chasse, Barry, 26

Kern, Merilee, 57

Simon, Joshua, 18

Zylstra, Steve, 26

Davis, matt, 50

Lerner, Jerr, 37

Smith, Molly Cerreta, 58

De’Shay, Joanna, 36

Levin, Joel, 26

Stovall, April, 26

Diehl, Jack, 16

Loscher, Tricia, 12

Strunk, Casey, 50

Alanté, 22

Global Institute of Sustainability and Innovation, 26

Private Label International, 17

Stearns Bank, 10

Prologis, 47

Strunk Insurance Group, 50

ProTech Detailing, 21

Taylor Morrison, 14

Proteus Ocean Group, 66

Tiffany & Bosco, 9

PXG, 51

TruWest Credit Union, 14

Radix Law, 48

UnitedHealthcare, 7

Remote Raven, 13

Weedmaps, 50

Resolute Commercial Services, 46

Willmeng, 53

Scottsdale’s Museum of the West, 12

wtsmtv, 47

SimonCRE, 18

YouNow, 24

American Solar & Roofing, 11, 26

Globalization Partners, 15

Arizona Association for Economic Development, 26

Greater Phoenix Economic Council, 26

Arizona Commerce Authority, 3

Harrah’s Ak-Chin, 26

Arizona Community Foundation, 68

HomeAid, 14 IndiCap, 17

Arizona Federal Credit Union, 14

Jive, 10

Arizona Technology Council, 26 Association for Entrepreneurship USA, 16

JLL, 26 Kinessage, 21

Babbo Italian Eatery, 14

Kiterocket, 67

Banner|Aetna, 22

KORE Power, 26

Blue Cross Blue Shield of Arizona, 23

Larry H. Miller Dealerships, 14

BMO Harris, 4 CaliberCos Inc., 14 Camelot Homes, 17 CHASSE Building Team, 26 Colliers, 19 Cove, 57 Cox Business, 55 Diversity Leadership Alliance, 36 Fashioneer, The, 12 Fennemore, 14, 26 Global Chamber, 59

Snell & Wilmer, 49 SRP, 26, 5

Lexus, 57 Lovitt & Touché, 2

CHECK US OUT

MarshMclennan Agency, 2 Mohr Capital, 17 MTA360, 12 NGT Academy, 24 OneAZ Credit Union, 25 onsemi, 26 Phoenix City Grille, 58 Phoenix Philanthropy Group, The, 56 Plug In America, 26

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Premier Sales, Inc., 52

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A CANDID FORUM

Investing in Purpose-Driven Companies Why and how investors can rethink their approach by Lisa Marrocchino In a recently released book, Net Positive: How Courageous Companies Thrive by Giving More Than They Take, the authors posit that a net positive company is one that “improves wellbeing for everyone it impacts and at all scales — every product, every operation, every region and country, and for every stakeholder … and even future generations and the planet itself.” While there is an urgent need for the solutions and capabilities that innovative companies can generate, investors haven’t perfected their approach to supporting such social enterprises.

June marked a record-breaking jump in the Earth’s atmospheric greenhouse gas levels with the highest-ever average measurements of methane and carbon dioxide, according to the National Oceanic and Atmospheric Administration. April 2022 was the first month in human history that CO2 levels exceeded 420 parts per million. These sustained increases in CO2 concentrations will continue to drive climate change, harming our oceans and life on Earth in increasingly devastating ways in years to come. At its worst, without functional ecosystems, our life support systems — including the ocean’s ability to produce half the oxygen we breathe — could fail, rendering our planet uninhabitable. Such dire outcomes must and can be avoided by directing strategic investment to solutions that move us quickly toward a greener, more sustainable future. Social enterprises must be at the forefront of developing innovative solutions to today’s social and environmental issues, addressing challenges such as climate change and pollution via crucial research and technology initiatives. Smart investors know and understand that investing in environmentfocused companies must be a priority. In fact, in 2021, climate tech startups raised a collective $40 billion in funding. The global impact investing market has reached $715 billion and is expanding rapidly, according to a 2020 survey by the Global Impact Investing Network.

SUCCESS THROUGH AUDIENCE REACH Lisa Marrocchino is CEO at Proteus Ocean Group, Ltd., the social enterprise building PROTEUS™, the world’s most advanced underwater station — in essence, the International Space Station of the Ocean. PROTEUS™ is built to enable research seeking to address the most pressing issues the Earth faces. With more than 20 years’ experience, Marrocchino is expert in capital raise, business optimization, strategic planning, researching and investing in public, private and alternative investments. She believes the ocean is the lifeblood of our planet and to restore it and protect it we must live symbiotically with it. proteusoceangroup.com

AUG. 2022

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One metric that investors can leverage when considering purpose-driven companies is the ability to engage key target audiences in an impactful and effective way. Does this company have a clear understanding of how it will reach partners or consumers? How much of the general population could be impacted by the company’s offering? By shifting the initial focus from dollars to reach, investors can better understand the immediate impact of a company — the number of people and/or planetary natural systems impacted — in addition to standard monetary metrics. Companies can strategically engage key audiences through potential outreach, educational or entertainment initiatives and corporate partnerships. In fact, partner buy-in is a key metric in showing initial success, especially as more and more companies are prioritizing ESG (Environmental, Social and Government) initiatives and investments.

SUCCESS THROUGH DATA

Another impactful metric that investors should prioritize is “return on data.” We are living in a data-driven world and purpose-driven companies can drive massive amounts of essential data. Novel, data-driven insights can do far more than impact companies’ bottom line; they can drive solutions for a more sustainable future for the entire planet. By developing a clear understanding of the types of data companies can provide, along with strategic data-driven

June saw the highest methane and carbon dioxide levels ever recorded; social investments are critical to see traction in tackling climate change.

products, investors can draw a clearer line to potential capital. Data, measurement, monitoring and reporting are critical to any successful business and its ability to implement change.

SUCCESS THROUGH IMPACT BUSINESS MODELS

Returns for companies that prioritize impact on the environment and society can be the same as in the broader market; socially conscious investing can be very profitable. And, with more companies emphasizing the importance of some element of ESG criteria or purpose-driven work, the demand for solution-driven enterprises will continue to rise. Recent United Nations research shows that green investing efforts will pay off significantly when investors are willing to take risks and make steps toward adopting sustainable business plans. Although there’s a long way to go in adjusting to and normalizing purpose-driven investing, there is hope, and changes are already taking place in the market. As more companies create sound and impactful business plans, investors must adjust the way they measure success to ensure growth among these companies and a sustainable future for society and the world. Industry leaders have already begun to explore alternative methods for measuring impact. This has resulted in the creation of metrics such as social return on investment, which assigns monetary value to social or environmental change generated by organizations, and The RISE Fund’s impact multiple of money, which estimates the financial value of the social and environmental good that is likely to result from each dollar invested. To successfully invest in the future of humanity, investors must consider a broad range of innovative technologies at an earlier stage, establishing new benchmarks to drive sustainability and return. Now is the time to prioritize diverting a portion of investment portfolios to social enterprises and funds that leverage capital to advance solutions. These types of investments have tremendous potential to deliver social and monetary returns. In fact, research shows that every $1 invested in sustainable ocean solutions yields at least $7 in return. Specifically, investing $2–$3.7 trillion globally across key areas would generate $10.3–$26.5 trillion in total benefits from 2020 to 2050. The success of an investment doesn’t require a choice between one or the other. Real change will happen when investors change how they measure and weigh social return on investment more equal to monetary return on investment.

Strengthening • • commun1t1es through charitable • • g1v1ng. Since 1978, the Arizona Community Foundation has provided charitable advice and fund management to thousands of individuals, families, and businesses in communities across Arizona. Together we have invested over $1.1 billion in grants and loans to local nonprofit organizations and scholarships for local students. When you are ready to take the next step in your personal charitable giving journey, we are here to help you achieve your goals.

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ARIZONA COMMUNITY FOUNDATION

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