In Business Magazine December 2019

DEC. 2019

New Tax Statutes Even the Playing Field for Online vs Brick-and-Mortar

LEADERSHIP IN BUSINESS Profiles of Those Who Support Valley Business

Is Brand Obsolete in the Amazon Age? Healthcare: Vital Component of AZ Economy Explore Line of Credit Financing

THIS ISSUE Alliance of Arizona Nonprofits

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DECEMBER 2019 COVER STORY

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Great Leaders Driving Our Business Community

Top business leaders in our community talk with In Business Magazine about how they are steering the challenges of 2019 into successes for 2020.

FEATURES

34 14 STARTUPS N7 Delivery: “Got Liquid Nitrogen?”

Rebel Rock Accounting: “Accounting Aims to Serve Cannabis Businesses”

Is Brand Obsolete in the Amazon Age?

Lindsay Pedersen makes a case for the democratizing nature of the web making brands even more crucial.

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Create Capacity through People

Bruce Weber and Charlie Smith’s series examines developing and sustaining organizational capacity.

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Leadership Disrupted

Andy Maurer’s series addresses the phenomenon of trauma in the business world of entrepreneurship and leadership.

DEPARTMENTS

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Guest Editor

Tammy McLeod, Ph.D., president and CEO of the Flinn Foundation, introduces our “Business All-Stars” issue.

PARTNER SECTION

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Robyn Barrett, Heather Bednorz and Brady Breese respond to In Business Magazine’s burning business question of the month.

11 49 Alliance of Arizona Nonprofits

Feedback

Briefs

“Before Disaster Strikes,” “Tool Tracks Company Alumni,” “ReEngineering the Media Supply Chain,” “Engagement Platform for Mobile Workforce,” “Local Standouts Recognized for Achievements and Philanthropy,” “Eco-Friendly Dry Cleaners” and “‘Local’ Drives Boutique Retail Concept”

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From the Top

Technology

“Tech Innovation and Entrepreneurship under Avnet’s Wing” and “Paranoia and the Big Attention Gap”

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Books

New releases give fresh insights on business thinking.

36

Nonprofit

Optimizing the role of the CEO in fundraising, spirit matters.

38

Economy

Local financial industry professional explores financing options to fit one’s business.

40

Legal

New tax statutes even the playing field for online and brickand-mortar for Arizona retailers.

42

Social Impact

Focusing this month on the Fiesta Bowl, Tyler Butler’s series explores the myriad ways that businesses give back and the positive ways their programs are impacting our community.

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Mind Matters

Leadership Disrupted. How trauma impedes our work and relationships

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Audi e-tron SUV Prestige Plus: Exercise tips help travelers stay fit.

By the Numbers

CRE

“Opportunity Zones: Maximizing Potential while Protecting against Risk,” “Spotlight Shifts from Mega to Smaller Warehouses,” “Taylor Morrison in New Gilbert Community,” “ViaWest Developing Industrial in Goodyear,” “New Mark Kia Largest Image Facility in Arizona,” “First-of-its-Kind U.S./ Mexico Inland Port and Customs Processing Hub” and “Novus Innovation Corridor Gaining Six-Story Class A Office”

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Healthcare

“Filling the Care Gap between Care Visits,” “Scottsdale Cure Corridor Gains Neuro Center,” “$4-Million Dementia Care Addition” and “Partnership Prepares for Flu Season”

Shannon Quagliata’s experience in real estate led her to groundbreaking tech.

The healthcare sector has become a vital component of the Arizona economy and a key contributor to the state’s growth.

DEC 2019

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Assets

Power Lunch

Agave del Scottsdale Celebrates Southern Mexican Plus: Local restaurateurs put meatballs on top.

58

Roundtable

by Glenn Llopis considers how a corporation’s biggest threat may be its leaders.

The Arizona Commerce Authority recently reported that a new comparison from the American Enterprise Institute shows Arizona is No. 1 in the nation for inbound migration, and that, in categories of tax and regulatory friendliness, business climate, affordability and job opportunities and found inbound states like Arizona vastly outperform their peers.

Experience Onederful.

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DECEMBER 2019 In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

PARTNER ORGANIZATIONS Kristen Merrifield, CEO Alliance of Arizona Nonprofits (602) 279-2966 www.arizonanonprofits.org Jess Roman, Interim Chief Executive Officer Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org Doug Bruhnke, Founder & President Global ChamberÂŽ (480) 595-5000 www.globalchamber.org Angela Garmon, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org Anne Gill, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities.

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

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

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Something big, bold and exciting is happening in the Grand Canyon state. Cutting-edge companies are launching, testing and scaling new technologies in Arizona. Our culture of innovation, highly skilled talent pool, lean regulatory environment, and affordable operating costs provide the perfect platform for business growth and success. Beyond being a place where you can achieve your professional goals, Arizona also provides a lifestyle that allows you to achieve your personal goals. With year-round sunshine, endless outdoor activities, and a positive outlook, we play as hard as we work. It’s this perfect balance that makes life better here.

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© Enterprise 2018

DECEMBER 2019

VOL. 10, NO. 12

Publisher Rick McCartney Editor RaeAnne Marsh Graphic Design German Wegbrait

Nicolas Barrios

NATIONALLY RANKED.

Benjamin Little Contributing Writers Tyler Butler

LOCALLY FOCUSED.

Kelly Chance Ryan Donahue Kevin Fox Mike Hunter Cat Kom Glenn Llopis Andy Maurer Elizabeth Parra Lindsay Pedersen Otto S. Shill III Charlie Smith Tony Tanner

Enterprise Bank & Trust was recently ranked number 14 out of 161 nationally-ranked banks1. And while we’re proud of that fact, it’s just part of who we are. Whether your focus is on your business, your family or the quality of life in your community, you’ll find us there. We’re committed to supporting dreams, securing financial futures and delivering on community investment.

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Operations Louise Ferrari

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Member FDIC 1. Bank Director, 3rd Quarter 2017, Volume 27, Number 3

Events Amy Corben

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www.inmediacompany.com Vol. 10, No. 12 In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 45 W. Jefferson Street, 7th Floor, Phoenix, AZ 85003. To ubscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 45 W. Jefferson Street, 7th Floor, Phoenix, AZ 85003 or visit inbusinessphx.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You July 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. © 2019 InMedia Company, LLC. All rights reserved. No part of this magazine July be reproduced or transmitted in any form or by any means without written permission by any means without written permission by the publisher.

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TAMMY McLEOD, PH.D., FLINN FOUNDATION

Business All-Stars

Tammy McLeod, Ph.D., is the president and CEO of the Flinn Foundation, with a mission to improve the quality of life in Arizona to benefit future generations. Previously, she held executive roles for Arizona Public Service, including responsibilities for customers, marketing and economic development.

Dr. McLeod’s community board service includes the Arizona Community Foundation, Desert Botanical Garden and Expect More Arizona. She holds a doctorate in sustainability from Prescott College and an MBA from the Wharton School.

The continuing strength of our economy and growth of business goes hand in hand with agile and innovative leadership in Arizona’s business community. Increasingly, in fact, business sectors overlap and intertwine, requiring an ever-broader perspective from those at the helm of their company.

Since arriving at the Flinn Foundation two years ago, I have confirmed what two decades in the public-utility sector taught me: Individual institutions cannot reach their potential without an authentic commitment to the good of the greater community.

For business leaders, the mandate is creativity, persuasion, and hustle. We have to bring our organizations’ unique assets to the table and work to define community needs. We have to cultivate partners beyond those we’ve always turned to. We have to inspire our teams and our boards to try more rigorous and audacious approaches. And we must work harder every day to strengthen our communities throughout Arizona.

In this issue’s cover story, In Business Magazine shines a spotlight on the heads of some of the more prominent businesses in various sectors. Their candor about the challenges they identified in their industry and the calculations behind their decisions — which offers valuable insights to benefit other business decision-makers — underscores a strong shared interest in supporting our community.

Leadership is not without its own challenges. Glenn Llopis discusses many leaders’ inability to empower their employees to contribute at their fullest capacity despite a professed interest in doing so, in Roundtable feature “A Corporation’s Biggest Threat Is Its Leaders.” And Andy Maurer continues his “Mind Matters” series on the repercussions of trauma, an often unrecognized companion of C-suite perks.

With its signature broad focus on business topics, In Business Magazine in this issue offers articles on marketing (“Is Brand Obsolete in the Amazon Age?”), technology and security (“Paranoia and the Big Attention Gap”), commercial real estate (“Opportunity Zones: Maximizing Potential While Protecting Against Risk”) and legal matters (“Tax Issues for Arizona Retailers and Taxpayers”), among other regular departments, including even introducing a new restaurant in Power Lunch (“Agave del Scottsdale Celebrates Southern Mexican”).

I’m pleased to help bring you this December issue of In Business Magazine, and look forward to sharing it with you. Enjoy the read..

Sincerely,

Tammy McLeod President and CEO Flinn Foundation

CONNECT WITH US:

It Starts at the Top Leadership is certainly an important piece to the overall success of an organization. There are so many sayings and quotes attributed to that notion. It is funny how things like Conscious Capitalism, capacity building, vulnerabilities in business and even the psychology of leaders has been so dissected lately and are a huge part of what we write about at In Business Magazine. We have, therefore, made this our annual Leadership issue to put emphasis on many of the challenges that leaders face in today’s business climate. From diversity and inclusion, changes in structure, technology and healthcare contribute to what leaders must lead in to do right

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by their people and the bottom line.

We are so grateful to Tammy McLeod for leading this issue. Her service to this community and the importance of leadership training made her the perfect guest editor this month. What she is doing at Flinn Foundation is so important and is a great model emphasizing the importance we are placing on becoming strong leaders, to become a strong business community, to become a strong economy.

—Rick McCartney, Publisher

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

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

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SPEAKING OUT AS A SMALL-BUSINESS OWNER, WHAT WAS ONE OF YOUR TOP CHALLENGES OVER THIS PAST YEAR AND HOW DID YOU ADDRESS IT?

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

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

DEC 2019

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ROBYN BARRETT

HEATHER BEDNORZ

BRADY BREESE

Managing Member and Founder FSW Funding Sector: Finance

Principal, Graphic Designer and Illustrator Heather Bednorz Design Sector: Creative Services, Advertising

Co-Owner and Lead Baker Urban Cookies Sector: Retail

Finding the right people — this is a continuing, nagging problem and I am sure there is no simple solution. Your team can make or break you, so I take careful consideration when hiring. FSW Funding recruits from across the U.S. to find the right employees, and we are constantly looking for good talent because FSW Funding is only as good as our employees.

When we find good employees, we do all we can to retain them. We do the obvious: competitive compensation, tuition reimbursement, 401K and medical benefits. We celebrate big life milestones and small workplace accomplishments. I also empower employees and give them autonomy, as no one wants to be micromanaged. This has helped me hire and retain the best team in the commercial lending industry.

Even though we have hired the right people, we are still growing, so I don’t see a solution to this issue anytime soon. And that is a good thing.

This year’s biggest challenge has been implementing marketing activities to attract new clients. If I use my time exclusively on client projects, my own company’s marketing lags. Other business owners tell me they have the same problem. A solution that’s working for us is scheduling brainstorming sessions, project production and social media activities for in-house needs the same as we would for a client.

For example, I offer a free illustration download on my website that is changed periodically. Scheduling each step on my calendar helps make that happen.

A business friend hired someone to handle her Instagram to ensure she posts weekly. In the past, she posted sporadically because she couldn’t always get to it. Similarly, I need to reach out to those who have viewed my LinkedIn profile or visited my web site. Having a prepared message available makes it much easier to respond quickly and professionally.

Your company really is your most valuable client. I’ve shared this concept with clients and see it working for them as well.

The greatest challenge our business faced in 2019 was learning how to adjust to continued double-digit growth. In 2017, we relocated to a new retail storefront in central Phoenix and, as a result, have experienced tremendous growth in 2018 and into 2019.

It's a wonderful problem to have, but it brings a lot of new challenges. Our goal is always to accommodate the growth without allowing customers to see us struggle through the process.

The main change we made was streamlining our processes and procedures.

As our growth ramped up, it was easy to see cracks in old processes, which typically resulted in costly mistakes. We also streamlined our production processes in our bakery so that bakers began working in more efficient teams rather than working alone to accomplish tasks. Streamlining even affected our menu, as we looked at reducing our offerings to focus on bestsellers and more efficient ways to produce our current items.

As always with more growth, we also had to add more equipment and a layer of management to stay on top of our game.

FSW Funding fswfunding.com Robyn Barrett is the managing member of FSW Funding, an independently owned and operated factoring firm. She helps small to mid-sized business-to-business companies secure funding that may not otherwise be available. By giving them access to the capital needed to grow, FSW Funding is helping shape the business community.

Heather Bednorz Design heatherbdesign.org Heather Bednorz has served as principal, graphic designer and illustrator at Heather Bednorz Design for more than 20 years, creating business identity packages (logos, business cards, stationery and brochures), advertising, illustration and web design solutions. Bednorz has additional experience providing project and print management and custom illustration. Her clients include hospitals/health systems, local businesses, regional and national builders, resorts and startups.

Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessphx.com.

Look for survey questions and other research on our business community.

Urban Cookies Bakeshop urbancookies.com Pro football was one of many careers Brady Breese thought would be his calling in life; instead, he became co-owner and lead baker of his own bakery in Phoenix — Urban Cookies Bakeshop — specializing in gourmet, made-fromscratch pastries. A self-taught culinary artist, Breese, in 2011, competed in and won Food Network's Cupcake Wars, a match-up of cupcake bakers from across the country who have a chance to win $10,000.

QUICK AND TO THE POINT

BYTES

by Mike Hunter

Tool Tracks Company Alumni ENGAGE Talent, an AI software company that offers the Total Talent Intelligence™ solution to help companies improve talent acquisition, engagement and retention and predict company and market performance, has released a new alumni engagement product that aggregates and tracks alumni data, mapping talent and analyzing movements in the industry, to provide companies with high-quality, real-time, non-self-reported data. “People strategies are at the heart of a business’ success — or failure,” says Joseph Hanna, CEO of ENGAGE Talent. “Now enterprises can recruit, engage and retain employees, align internal data, and keep track of their alumni from one unified platform.”

Before Disaster Strikes Business leaders and managers should develop, finalize and distribute an emergency response plan well in advance of a disaster.

This strategy helps ensure all managers and employees know what to expect when faced with a crisis and outlines clear expectations and roles in the wake of a disaster. This plan should include a clear chain of command, necessary emergency functions and responsibilities, specific evacuation procedures and processes for checking in with employees during an emergency.

Insure for regional threats. Company owners should communicate regularly with insurance agents to ensure policies are up to date and reflect the necessary coverage for regional disasters, such as hurricanes, wildfires or flooding. By assessing the types of disasters that are most likely to impact operations, business leaders and their insurers can protect the company and its employees, potentially saving money in the future.

Protect important data and documents.

Losing key business documents can be devastating for companies of any size, but particularly for small and medium-sized businesses. To prepare for the worst, leaders and managers should work with teams to ensure all important documents are stored securely and digitally to ensure safety. This strategy also allows staff members to access documents remotely, enabling them to stay connected from safe locations in the event of a disaster.

Build a network of support. Teams at small and medium-sized businesses can

sometimes feel more like a family than just co-workers. To ensure all team members are supported in the event of an emergency, managers may consider creating a system to contact all employees during a disaster to ensure their safety and determine any immediate needs. If possible, companies may also consider establishing employee support funds and processes to provide financial, emotional and physical support to any team members who may be impacted by crisis.

Keep customers informed. Just as it is important to communicate with internal teams, companies should also have a strategy in place to share updates with clients and customers in the event of an emergency. This system may utilize direct email outreach, social media or phone calls, where needed. To prepare for a crisis, it may be helpful to create templates for sharing any changes to standard business hours, safety and travel conditions around the business location and impacts to remote customer service availability.

Preparing for a disaster situation can feel harrowing, but having plans and processes in place can help businesses cope with the aftermath. Implementing policies and procedures well in advance of an emergency can enable managers to efficiently navigate the situation while providing needed support to employees, customers and other members of the community. —Kelly Chance, manager of HR services at Insperity (www.insperity.com), which provides an array of human resources and business solutions

Key in dealing with disasters: preparation ahead of time, and communication after.

engagetalent.com

Re-Engineering the Media Supply Chain

Research by the company across more than 60 campaigns over the past two-plus years has shown that digital advertising wastes some 47 percent of impressions. Commerce Signals gives brands the marketing reflexes they need to redirect that inefficient spend toward more effective approaches, doubling media effectiveness.

Commerce Signals is just beginning to unleash the power of purchase card data to eliminate marketing waste. The company is currently focused on supporting major retail and restaurant chains, and has plans to extend its platform reach and data insights to other markets and industries. commercesignals.com

Engagement Platform for Mobile Workforce

StaffConnect, a leading provider of mobile employee engagement solutions for the deskless workforce, recently released its Series 3. Redesigned from the ground up, the new SaaS platform transforms the way organizations engage with their workforce and delivers an entire employee engagement solution-in-apocket. Powerful feedback tools such as pulse surveys reported in minutes are among new features that help organizations to more effectively promote a culture of inclusion, improve the employee experience, give everyone a voice regardless of role or location, reduce the silos that can exist between office-based and deskless workers and increase brand advocacy through greater employee loyalty. staffconnectapp.com

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QUICK AND TO THE POINT

LOOKING GOOD

Local Standouts Recognized for Achievements and Philanthropy ACHIEVEMENTS

Mailing.com Earns Stevie Award Mailing.com recently won a Stevie Award for customer service, rather a rarity among printing/direct mail companies. The company credits it passion for direct mail as its spark, and is finding a revival in interest by agencies to build business and expand services as part of a comprehensive marketing strategy. mailing.com

Queen Creek Olive Mill Honored Queen Creek Olive Mill was recently awarded the Queen Creek Chamber of Commerce 2019 Business of the Year Award, a recognition presented annually

Eco-Friendly Dry Cleaners During its 20-year history, Lapels Dry Cleaning has pioneered an eco-friendly dry cleaning experience. The partnership agreement with GreenEarth®, the dry cleaning industry’s only nontoxic cleaning alternative, is the latest evolution of that experience, and Jeff Kline recently converted his Gilbert and Chandler franchise locations to the GreenEarth process.

For most Lapels Dry Cleaning plants, converting to GreenEarth requires an equipment upgrade to accommodate the detergent. That requires an investment in the neighborhood of $10,000. “Lapels Dry Cleaning made a commitment to bring an environmentally friendly method of dry cleaning to the communities it serves. You simply don’t get more environmentally friendlier than GreenEarth,” says Jeff Kline. “GreenEarth is virtually odorless. So,

to a chamber member who provides excellence in customer service, has experienced progressive sales and marketing growth, offers innovative products or services, demonstrates economic support of the Queen Creek area business community, and participates in community volunteerism. Environmentally conscious, Queen Creek Olive Mill is Arizona’s only working olive farm and mill, with a 100-acre farm and more than 7,000 olive trees. queencreekolivemill.com

PHILANTHROPY

BCBSAZ Partners with Fiesta Bowl to Revitalize Margaret T. Hance Park Dedicated to giving back to the community and supporting programs that help to improve the health and quality of life for Arizonans, Blue Cross Blue Shield of Arizona (BCBSAZ) has partnered with the Fiesta Bowl to support the Margaret T. Hance Park Revitalization Project, which will bring a new, 20,000-square-foot playground to the space. azblue.com

B of A Grant Funding to Two Arizona Nonprofits St. Vincent de Paul and United Food Bank have been selected as 2019 Bank of America Neighborhood Builder award recipients for their work to fuel economic and social progress in low- and moderateincome communities. Through the award, in addition to $200,000 each in grant funding to expand their programs, they will also receive leadership development, join a network of peer organizations across the U.S., and have the opportunity to access capital to expand their impact in the Phoenix community. about.bankofamerica.com

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no matter how challenging the dry cleaning job, clothes will come back smelling like a beautiful day with no detergent smell lingering.”

GreenEarth is made from 100-percent pure D5 liquid silicone, which is a by-product of sand and is safe for people and the environment. Its low surface tension allows it to gently penetrate fabric fibers and carry away dirt in a way that is gentle on fabric, making it a safe, effective way to clean even the most delicate garments. Unlike many other cleaning methods, GreenEarth won’t cause shrinkage, colors stay bright and clear, and clothes stay newer looking longer; using this method, Lapels is one of the few dry cleaners able to boast that there is no hazardous waste in its process.

—Mike Hunter Lapels Dry Cleaning

mylapels.com

‘Local’ Drives Boutique Retail Concept Celebrating the essence of Scottsdale’s Old Town in the historic building that was home to Saba’s Western Store for more than 60 years, The Merchantile of Scottsdale is a new 5,400-squarefoot boutique marketplace featuring a curated mix of more than 40 merchants — all of which are locally owned, Metro Phoenix-based, independent businesses — that include clothing, accessories, home décor, bath and beauty products, art, and one-of-a-kind gifts. This retail startup concept allows small companies to share space and foot traffic in a bustling brick-andmortar setting.

"The vision behind The Merchantile's co-retail concept is to help small, local businesses grow by offering a trendsetting destination retail space with an ever-changing mix of hip products cultivated by Arizona tastemakers and artisans," says founder Kimberly Pak. From beautifully handmade products by local artisans to designer vintage clothing, The Merchantile is home to a number of notable permanent shops that include Porter Home Decor, Truly Blessed Jewels, The Glamorous Nomad and Redemption Market. An onsite coffee shop and a co-working space augment the shopping destination.

Offering more variety will be numerous popups that will change almost daily, with even more on weekends than on weekdays. Ever-changing crafting events and hands-on instruction will

reflect the seasons. And on weekends, music and food offerings will help create a farmers market vibe.

Aligning with global retail trends creatively adapting traditional to evolving market trends, The Merchantile of Scottsdale is a beautifully curated concept store where locals and visitors alike can gather, shop an array of high-quality goods, and meet the craftspeople, designers and artisans fueling the next generation of retail small business in Arizona. The Merchantile will also function as an event space by partnering with community organizations and brands looking to host public and private functions and branded pop-up events. The marketplace will be open year-round every day —Mike except Tuesday and major holidays.

Hunter The Merchantile of Scottsdale themerchantileofscottsdale.com

Dry cleaning can be a very profitable business; Typically, the dry cleaning industry has been least hit by the downturn or impacted economy. With the right system in place, dry cleaners can be and are very profitable, as Kevin Dubois, CEO of Lapels Dry Cleaning, highlights this in the book he co-authored, entitled Entrepreneurial Insanity in the Dry Cleaning Business. mylapels.com

MINDING THEIR BUSINESS

Shannon Quagliata: Op for App for Open Houses Real estate career led to groundbreaking tech

by Elizabeth Parra

On a quiet summer afternoon in 2017, then-realtor Shannon Quagliata sat in an empty open house and couldn’t understand why there were no interested homebuyers in sight. The open house signs and directions she had organized led directly to the house and still it was deserted. What she didn’t know was that, while her client’s property was very popular and had all the components to sell quickly, the prospective buyers sat outside the gated neighborhood unable to enter. By the time Quagliata realized her note with her contact information and on how to get the gate code had been removed from the entrance, the buyers were angry and frustrated and had lost interest in seeing the home altogether.

“I remember sitting in that open house, alone, waiting for homebuyers, thinking, ‘There has to be another way. There has to be a better way,’” Shannon recalls.

This wasn’t the first obstacle with open houses Shannon faced during her real estate career. Communicating gate codes, time changes and even directions was impossible because often the agent holding the open house was not the listing agent, and, therefore, could not be found anywhere by the homebuyer wanting more information. As Arizona became a booming market for real estate, first-time homebuyers were also having issues purchasing and even seeing a home because the house sold prior to it even hitting the market.

Having built her real estate career by hosting open houses, she understood how important they were in the homebuying journey and knew the open house process needed to change.

That’s where the idea for PRE Open House was born. The idea seemed so simple: a user-friendly app and website that not only showed details for all open houses within a city, neighborhood or zip code, but also provided a way for the potential buyer to connect instantly and directly with the agent holding the open house. To Quagliata’s surprise, there was no platform available to consumers that provided all these features in a convenient one-stop, one-click website and app.

She developed PRE Open House to provide a live feed straight from the Multiple Listing Service of all open houses on any day to enable buyers to plot their trips to open houses in one convenient location, rather than driving around neighborhoods searching for signs and going into homes that don’t fit their search criteria.

After a long career in real estate, Quagliata was now running a startup tech company — something she never would have imagined herself doing in a million years. “This venture was so far out of my comfort zone, but I was so passionate about my idea and the need for this in the marketplace that I knew I had to at least try,” Quagliata says. “I aimed to create something that would really change and improve the open house process for both homebuyers and real estate agents.”

Like many startups, Quagliata faced countless challenges starting her company. She quickly learned the value of fostering a strong team of dedicated individuals who are equally passionate about the idea and the mission of the company. Together, they handle technical issues, updates and making sure every feature of the app and website is completely user-friendly.

“There are so many learning curves with starting any new company, but tech is an entirely different journey,” she says.

“Technology is constantly changing, meaning as a business owner you have to be innovative and ahead of the curve, and constantly changing as well.”

Quagliata uses this approach in fostering relationships as well. As in any new company, her team has dedicated their time to sharing their idea with the public and learning what they can do to improve their product. Their priorities are both the homebuyer as well as the realtor, protecting both of their interests equally.

“It’s a learning process,” Quagliata says. “From the start, you have to be ready to dedicate your life to your idea, and never lose your vision or your why. There won’t always be as many supporters as there are people trying to bring you down, but there will also be your team pushing you forward and having faith in you, and that’s what matters the most.”

The ‘PRE’ in PRE Open House

To help first-time buyers attain homes, PRE Open House users have access to new listings and offmarket, coming-soon properties not yet on the market. This feature gives homebuyers an opportunity to view a home and attend an open house prior to it going on the market. The housing market in Arizona is at an all-time high, and finding affordable homes for sale is harder than it has been in years.

PRE Open House users can find all open houses on the website or mobile app that is available for download on Android and iOS devices.

PRE Open House preopenhouse.com

Open houses are seen as one of the most effective tools to sell a home. According to Realtor Magazine, 77 percent of home buyers go to open houses prior to deciding which house they want to buy.

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BY RAEANNE MARSH

ENTREPRENEURS & INNOVATORS

Got Liquid Nitrogen?

Rebel Rock: Philosophically Straight Crediting valuable advice to be consistent regarding their own business’s internal requirements, Rebel Rock Accounting CFO Melissa Diaz says, “We wanted to make sure we were helping businesses whose philosophies aligned with ours; we didn’t want to help those who are only in it to get rich and get out. Cannabis can be messy and difficult to manage, there are tons of stringent regulation, and a lot of accounting systems simply aren’t built for the industry.

So, we must work with people we trust and can collaborate with on a dayto-day basis. We don’t waver from our initial intent when starting Rebel Rock — and having a clear vision of who we are as a company has paid off every single time.” rebelrock.co

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That is the question prominently lettered on the side of the N7 Delivery truck that seeks to answer it. Inspired by the need for nitrogen delivery to service their Creamistry locations, business partners Andre Wadsworth and Ryan Zeleznak launched N7 Delivery this past summer to provide nitrogen delivery services to local retail businesses around the Valley in addition to their Creamistry locations.

Creamistry relies on liquid nitrogen to make its unique ice cream desserts, which are handmade and frozen to order, as the customer watches. “When we learned how difficult it was to not only get nitrogen service at our Creamistry locations, but also to get it on a consistent and affordable basis, we decided to start N7 with the thought that other companies are also in need of an affordable, consistent nitrogen delivery service,” says Wadsworth. They invested in a truck and nitrogen tank that was custom built to their specifications by a company in the Midwest and brought out to Arizona. N7 now delivers to cryotherapy companies, and local eateries and coffee shops as well as serving their needs at Creamistry.

“When setting out into a new industry, lack of knowledge can be a challenge,” Wadsworth admits. “We meet these

challenges by continuing to learn about the industry, this business and, most importantly, what our customers need and how we can be the best and most reliable company to fill that need.”

Wadsworth shares that the most valuable piece of advice given them is to be patient when it comes to consistency and diligence, noting, “It takes time to do something right, and we’re committed to doing right by our customers.”

N7 Delivery, LLC

info@N7delivery.com

Accounting Aims to Serve Cannabis Businesses Rebel Rock Accounting provides cannabis businesses nationwide with specialty accounting solutions, tax services, CFO/controller services and business system implementation, filling what CFO Melissa Diaz describes as “a clear void in the fast-paced, ever-evolving industry.” From grow operations and seed-to-sale businesses to dispensaries and beyond, she says she and her fellow co-partners Liz Mason and Katie Kane founded Rebel Rock earlier this year to help cannabis operations “achieve success-driven management while working within the stringent regulatory environment.”

To do this, the team utilizes the latest cloud-based technologies in ways that make sense for each client to improve business efficiencies, ensuring best practices are implemented with accounting, records management, accounts payable, expense reporting, receipt tracking and full-cycle reconciliations. “We do research to find the best possible tech solutions for each of our individual clients.”

One of two primary inspirations for starting Rebel Rock came from a close friend who was a general counsel to multiple cannabis companies. “He expressed to us that the industry really needed legitimate accounting if it was going to grow sustainably.” Attending MJBizCon Vegas, the cannabis industry’s largest trade show, the partners found there were

no firms that cannabis businesses could go to and have all their accounting needs met.

The other impetus? “The cannabis industry is extremely male-dominated. We wanted to change that!”

Gaining credibility in the cannabis industry they found to be a big hurdle. Explains Diaz, “There are many people in the industry who have been working with cannabis well before it was legalized, and they have a lot of skepticism when it comes to lawyers, accountants or the IRS. There’s a perception that those in the professional industry don’t know what’s going on.” Their approach was to collaborate closely with business owners to find solutions that work for that business’s longterm financial goals. Says Diaz, “We’ve developed some really strong, rewarding professional relationships in this industry — even if it took a little more work to gain trust initially.” With an interest in helping the industry expand legitimately and sustainably, Diaz says of Rebel Rock Accounting, “Ultimately, we want to help eliminate the stigma surrounding cannabis, because the industry has a ton of positive potential.”

Rebel Rock Accounting rebelrock.co

Liquid nitrogen does not need to be pressurized to remain in its liquid state, but its temperature must be kept below its boiling point of –320 degrees Fahrenheit.

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METRICS & MEASUREMENTS

Backdrop: Economy + Jobs

In a recent U.S. Bureau of Labor Statistics report, Arizona employment grew 2.8 percent between June 2018 and June 2019, ranking second in the nation.

Arizona added 80,000 new non-farm jobs in this period.

The biggest sector increases took place in Education and Health Services (23,200 jobs), Construction (18,200 jobs) and Professional and Business Services (13,500 jobs).

A recent study showed from 2006–2018 that the share of employment in the Education and Healthcare Services sector within Arizona rose the fastest relative to the overall U.S. average, while the share of construction employment in Arizona fell the most.

Construction still provides 5 percent of the state’s employment base, down from 10 percent just prior to the onset of the great recession in 2008, which is a healthy sign that the employment base is becoming more diverse. This exemplifies how the state’s economy is becoming more diversified, a development that can help moderate the impact of any prospective national economic declines.

Anthony Tanner, CFA®, is senior vice president of Aquila Investment Management and the lead portfolio manager of Aquila Tax-Free Trust of Arizona.

He has more than 30 years of experience in municipal bonds investing. aquilafunds.com

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The Ascension of Arizona’s 21st Century Healthcare Economy

The healthcare sector has become a vital component of the Arizona economy and a key contributor to the state’s growth

by Anthony Tanner, CFA

An advanced, diverse, and thriving healthcare industry is critical to Arizona, serving both as a magnet for attracting new residents, and providing world-class medical care to a state population that surpassed 7 million last year. The expansion of the Arizona healthcare sector is necessary to serve a population that continues to expand faster than the national average while capturing a significant share of the shifting national population. In 2018, the state ranked fourth in the nation for population growth, with an increase of 1.7 percent, and third in the nation for net migration, as Arizona continues to attract a significant portion of those who relocate from other parts of the country.

The healthcare sector has proven to be both an engine of growth and employment stability in Arizona. Healthcare employment expanded during the Great Recession, at a time when Arizona shed nearly 300,000 jobs and total employment contracted 11 percent (Nevada was the only state with a steeper decline).

Provider Expansion The expansion of medical facilities is indicative of the vibrancy of the statewide healthcare economy. Within Maricopa County, several hospital organizations are adding new facilities throughout the Valley. The Honor Health Sonoran Medical Center is a $120-million project located adjacent to its John C. Lincoln emergency center that is expected to open next September. This will deliver essential medical services to the rapidly growing suburbs in Phoenix’s north valley corridor. Other projects include the $648-million expansion of the Mayo Clinic’s Phoenix campus and a new $150-million Banner Health Medical Center in Chandler.

Across the state, hospitals in Flagstaff, Prescott and Yuma have also completed in recent years or established sizeable

capital projects to modernize and expand the medical services available to these outlying regions of the state.

A Growing Medical Education and Innovation Hub Compared to other regions of the country, Arizona has a relatively short history in medical education. While most areas of the country have had medical schools for more than a century, Arizona did not have a medical school until University Medical Center in Tucson was established in 1971. Arizona has a relatively low number of medical students per capita, a primary reason growth of the physician population in the state has not kept up with overall population growth.

In a key development that squarely addresses this need, Creighton University recently broke ground for its new Phoenix Health Sciences Campus, slated to open August 2021, which will include a four-year medical school. When completed, it is anticipated the medical school will train almost 500 medical students, providing a home-grown pipeline of physician talent to the state. This should help address the persistent doctor shortage in Arizona. The state ranks 38th for active primary care physicians per capita and 32nd for active physicians per capita.

Beyond medical education, the state has evolved into a hub for health sciences and innovation, with groundbreaking research taking place at the Phoenix Biomedical Campus downtown, Barrow Neurological Institute and Translational Genomic Research Institute. Advancements made in health sciences and technology by these organizations does more than simply impact the quality of life for Arizona residents.

They complement the state’s burgeoning healthcare infrastructure, which, taken together, serve to attract companies that are evaluating relocation options and the skilled workforce necessary to fill new jobs.

ARIZONA’S EMPLOYMENT GROWTH – HEALTHCARE VS. OVERALL The first graph shows employment growth in the healthcare sector in Arizona while the second graph shows the growth of employment in all sectors in Arizona. Side by side, these graphs help illustrate how the healthcare sector has provided employment stability, even during the great recession when total employment dropped off.

Source: Lendio (www.lendio.com)

Healthcare employment expanded during the Great Recession, at a time when Arizona shed nearly 300,000 jobs and total employment contracted 11 percent.

PROPERTY, GROWTH AND LOCATION

Opportunity Zones: Maximizing Potential while Protecting against Risk Opportunity Zones and Opportunity Funds create much excitement as powerful new economic development tools for many businesses and investors as well as communities looking to develop (or redevelop) areas that could become economic drivers. They were created specifically to spur economic development through the benefit of capital gain deferment to incentivize an injection of capital in communities previously red-lined for investment.

However, it’s important to note the relative high risks to which investors can potentially be exposed when investing in these new vehicles.

First, investors need to consider unforeseen risks a Qualified Opportunity Fund (QOF) could face. From natural disasters to risk of fire or flooding during the development or redevelopment process, there is a full gamut of unpredictable pitfalls that could devastate the QOF’s investments.

Next, management, or rather mismanagement, of the fund could prove damaging to returns, or even the decertification of a fund. As a relatively new vehicle, poor execution of the fund strategy that falls into noncompliance is a very real threat.

Lastly, and one of the hardest to predict, is changing market conditions. As commercial development has become synonymous with Opportunity Zones, so too is the need to be ready for economic downturns and unexpected labor market responses that could drive up costs or otherwise disrupt projects.

Spotlight Shifts from Mega to Smaller Warehouses The growth of e-commerce has lifted the entire industrial and logistics real estate sector, with warehouses smaller than

To hedge risk, QOFs can utilize a specialized insurance program to protect against the tremendous liability with such projects. For instance, Lovitt & Touché’s Opportunity Zone Insurance Program (OZIP) — among the first programs of its kind nationwide — was developed in tandem with some of the most highly qualified attorneys in the space who understand these unique risks to help fill traditional voids and excluded insurability. Programs for QOFs can provide fund investors with insurance for tax liability in the event of recapture, which is typically excluded from E&O coverage, and can ultimately protect an investor in the event of a successful challenge by the IRS. Construction delays, political football, market instability, fund mismanagement and climate change all pose potential threats to a QOF’s ability to stay in compliance with the law. Investors need to consider the possibility that the capital gains being invested into the fund could —Ryan Donahue, risk management advisor at be at risk.

Lovitt & Touché, A Marsh & McLennan Agency LLC Company (www.lovitt-touche.com), who oversees the Opportunity Zone Insurance Program

120,000 square feet

by Mike Hunter

120,000 square feet

GET REAL

occupying the sweet spot.

These “light industrial” properties outperformed other property types over the past five years, according to CBRE’s analysis, by size, of industrial buildings nationwide.

Specifically, light industrial warehouses measuring 70,000 to 120,000 square feet registered the biggest decline in availability, down 3.9 percentage points, and the largest gain in average rents, 33.7 percent.

In metro Phoenix, light industrial properties outperformed industrial properties larger than during the same five-year period. The vacancy rate for properties 120,000 square feet and smaller decreased

Photos courtesy Evergreen Devco, Nationwide Realty Investors and ASU Biodesign Institute (l to r)

by half from 9.0 percent

Taylor Morrison in New Gilbert Community

ViaWest Developing Industrial in Goodyear

New Mark Kia Largest Image Facility in Arizona

Leading national builder and developer Taylor Morrison is opening its Greenfield Ranch community in Gilbert. It will offer four floor plans from its Summit Collection, with single-story homes ranging in size from 2,764 to 3,396 square feet, and, from its Capstone Collection, three floor plans that range in size from 3,534 to 4,333 square feet.

Greenfield Ranch is located near San Tan Village Mall and Marketplace and a new 272-acre Regional Park — which opened its first phase last September with children’s playgrounds, a splash pad, ramadas and picnic areas. taylormorrison.com

ViaWest Group has closed on the acquisition of a 25.91-acre parcel at Elwood St. and Sarival Ave. in Goodyear, which will be developed into three industrial buildings totaling approximately 410,000 square feet.

Construction is set to begin in March 2020 with a delivery in early 2021.

“The rapidly expanding Goodyear industrial market is a strategic location for a long-term investment,” says Gary Linhart, founding partner at ViaWest Group. The site is directly adjacent to buildings occupied by large industrial tenants such as Amazon and Macy's. viawestgroup.com

Western States General Contracting is nearing completion on the new, stateof-the-art, $13-million Mark Kia on 8.9 acres at the Scottsdale AutoShow at Salt River development. This is the third car dealership in the Scottsdale-based contractor’s automotive project portfolio and is expected to be completed this month.

Slated to be the largest image facility in Arizona and the Western region to date, the 56,112-square-foot, two-story dealership will include sales, service and body repair services. Mark Kia will include 478 display spaces, 57 customer spaces and 266 service and inventory spaces. wsgeneral.com

Programs for Qualified Opportunity Funds can provide fund investors with insurance for tax liability in the event of recapture, which is typically excluded from E&O coverage, and can ultimately protect an investor in the event of a successful challenge by the IRS.

to 4.5 percent at the end of Q3 2019. Despite the decline in vacancy, only 16.5 percent of the industrial product under construction in Phoenix is below the 120,000-square-foot threshold. The vacancy rate for buildings above 120,000 square feet dropped 560 basis points (bps) to 8.3 percent, which is more than 200 bps above the marketwide vacancy rate.

CBRE (www.cbre.com)

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PROPERTY, GROWTH AND LOCATION

BY MIKE HUNTER

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Novus Innovation Corridor Gaining Six-Story Class A Office The L-shaped office building — 777 Tower at Novus — is under construction by Ryan Companies US, Inc. The 160,000-square-foot, multi-tenant structure, designed by local architect DAVIS,will feature an open floor plan with penthouse office space and about 8,000 square feet of retail space on the first floor. There also are plans to create a plaza area for event usage.

Located at the southwest corner of S. Rural Road and Sixth Street in Tempe, the building will be within walking distance of dining options, sports venues, ASU’s Tempe Campus, downtown Tempe and the Rural Road light rail station.

Tempe-based DAVIS is the architect of record, designing the project to complement ASU’s campus character while meeting the needs of the dynamic and forward-looking tenants that will occupy the building. Completion is expected in June 2020.

Catellus Development Corporation is the master developer

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four bays each totaling approximately 18,000 square feet and approximately 2,500 square feet of administrative and conference space. All bays will have full foam fire suppression systems and the ability to accommodate aircraft as large as a G650 business jet.

Architectural firm ADM Group and engineering firm HilgartWilson will serve as Graycor’s design-build partners for SkyBridge. Jackie Orcutt and Pete Wentis of CBRE have been selected as the project’s exclusive leasing brokers.

At build-out, SkyBridge is slated to include 2 million square feet of warehouse space; 200,000 square feet of office space; 1.7 million square feet of light industrial, flex and cargo operations; and 100,000 square feet of retail and restaurant space. The development is targeting a range of tenants that include air cargo, e-commerce, manufacturing and aviation and defense specialists. cbre.us graycorconstruction.com

of the Novus Innovation Corridor — a 350-acre, multiphased development that, at completion, will encompass approximately 10 million square feet of urban mixed-use opportunities — which was enabled through legislation that was passed and signed into law in 2010. The legislation permits the Maricopa County Board of Supervisors to work with ASU to establish a district in which all land is owned by the university and assessments are imposed on developments locating within the district, the proceeds from which are then used to construct and improve ASU intercollegiate athletic facilities, rather than funding them from state revenues and taxpayers. asu.edu catellus.com novusasu.com ryancompanies.com

The major master-planned development SkyBridge Arizona, located on 360 acres southwest of the runway at Phoenix-Mesa Gateway Airport, will serve as the nation’s first-ever joint U.S. and Mexico inland port and customs processing hub.

Photos courtesy of Graycor Construction Company (top) and Ryan Companies US, Inc. (bottom)

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SkyBridge Arizona and leading general contractor Graycor Construction Company have broken ground on the first two buildings at SkyBridge Arizona. The major master-planned development will serve as the nation’s first-ever joint U.S. and Mexico inland port and customs processing hub. SkyBridge has selected Graycor for the design-build of the first two buildings.

Located on 360 acres southwest of the runway at PhoenixMesa Gateway Airport in Mesa, Arizona, SkyBridge will use Unified Cargo Processing (UCP) to complete on-site cargo inspection and processing so that shipments between the U.S. and Mexico can be expedited directly to their destinations in Mexico.

Graycor will begin construction at SkyBridge with a fully speculative flex industrial building and a new hangar facility.

The flex industrial building will total 60,000 square feet suitable for light industrial and warehouse use by one or two occupants. It will feature 24-foot clear height, up to four docks and storefront entries with administrative offices, conference space and break areas.

The aviation hangar will total 82,500 square feet, with

YOUR BENEFIT IN BUSINESS

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Scottsdale Cure Corridor Gains Neuro Center HonorHealth has broken ground on a $44-million Neuroscience Institute, located at the Scottsdale Osborn Medical Center campus. The 120,000-square-foot, five-story multidisciplinary neurological care center will provide the local community with a centralized hub for spin and neuro-related conditions, like ALS and MS. The comprehensive, multidisciplinary neurological care center will house a variety of specialties dedicated to providing coordinated neurological, neurosurgical and support services for movement disorders, as well as offer back and spine intervention and management. The New center will add healthcare job opportunities for Scottsdale as part of the growing Scottsdale Cure Corridor. —Mike Hunter honorhealth.com

$4-Million Dementia Care Addition Senior living community Brookdale Central Paradise Valley recently opened a new Alzheimer’s and dementia care program. This project represents a more than $4 million investment and the creation of 18 new jobs in the Phoenix area.

There were 140,000 people in Arizona living with Alzheimer’s and dementia in 2018, according to the Alzheimer’s Association, which estimates this figure will reach 200,000 by 2025.

Recognizing the need for quality memory care, Brookdale Central Paradise Valley has expanded its continuum of care and added the Clare Bridge program, which was created more than 30 years ago and embraces the latest research in dementia care. —Mike Hunter brookdale.com

Partnership Prepares for Flu Season Every year, the flu affects hundreds of thousands of people; Valley companies Veyo and FastMed Urgent Care have teamed up to provide complimentary flu shots to all Veyo drivers this season.

FastMed Urgent Care — which performs more than 10,000 flu shots every year — has 30 clinics located in Arizona, making it convenient for Veyo drivers to stop by and get their flu vaccination.

This is one of a number of benefits Veyo — which provide riders with quick and efficient transportation for medical appointments — offers its drivers. —Taylor Tiner fastmed.com veyo.com

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Filling the Care Gap between Care Visits IMNA Solutions, an Israel-based software company with its U.S. headquarters in Scottsdale, provides real-time monitoring and interventions in-between clinic visits to support ongoing relationship between patients and care teams. Its IMNA Health platform optimizes recommendations for patient management that improve quality of care and reduce hospital visits and cost of care.

“One of the primary ways we achieve this is by filling the treatment gap for chronic illness patients,” explains co-founder Meirav NaorWeinstock. “It’s typical for these patients to go weeks or months without seeing their physician, and a lot can go wrong during that time. Because of this, IMNA Solutions provides real-time data monitoring and automated decision support to keep track of patient conditions and combat issues as they arise. We track everything from sleep patterns, dehydration, perspiration and more while patients are at home, and we alert physicians and care teams of any potential concerns.” Treatment, she notes, can then be updated in-real time to ensure optimal patient outcomes without having to wait until the next visit.

The system is also able to look at each condition agnostically, not as “underlying conditions” that can lead to poor healthcare outcomes. “Our platform is able to do this by using predictive analytics and artificial intelligence to collect and extract patient healthcare information from multiple sources,” Naor-Weinstock explains, noting, “By having all relevant data readily available, physicians are more equipped to choose the best treatment path for patients. For example, if records indicate the patient is a piano player, the doctor would be more likely to choose a treatment approach that doesn’t affect hand movement.”

The company was initially founded by Israel Haikin in 2014 to fill the need for secure communication. He has an extensive background in cybersecurity, and, as the former head of the Israeli CIA, , saw first-hand what can happen when communication isn’t secure. NaorWeinstock joined the company in 2016 and extended Haikin’s concept to the healthcare space. “A person’s medical records is incredibly valuable information, and I understood the need

for secure communication between patients and providers,” she says.

“What inspired me to extend the technology to the healthcare industry was my experience as a cancer caregiver to my late husband. I saw the holes in the treatment process, and I knew I could create a solution to make treatment more seamless for patients and their care teams. It’s not uncommon for patients and caregivers to take the lead role in understanding their treatment and discovering the options that are the best fit for them. Patients and caregivers are forced to spend hours navigating the incredibly complex healthcare landscape alone, and IMNA Solutions exists to prevent that. IMNA actually stands for ‘I am Not Alone,’ because we don’t want anyone going through a chronic illness to ever feel like they’re not supported. Communicating with physicians is a hardship in itself, and IMNA aims to make the process easier for physicians and patients alike.”

In founding and growing the company, Haikin and Naor-Weinstock sought help from leaders across Arizona and Israel to provide the guidance needed to accelerate the growth of IMNA Solutions, and continue to seek engagement with VCs and angel investors, as well as leaders in healthcare and technology to help raise the visibility of their solution in the marketplace.

Another challenge, shares Naor-Weinstock, is finding partners in healthcare who aren’t skeptical of tech. “We’re currently working on convincing clinics and providers that we’re working with them, not telling them what to do.

We understand that for our solution to provide value, it must be synergetic with existing tools, as well as the day-to-day lives of patients and providers.

Earning numerous recognitions as company and for its founders, the IMNA Health platform has yielded impressive results since its founding in 2014. Naor-Weinstock reports an average increase in patient engagement of 39 percent by clinicians who use IMNA Health have shown, a 48-percent increase in patient adherence to treatment, a 60-percent decrease in administrative work and a 35-percent decrease in unnecessary doctor visits. —RaeAnne Marsh IMNA Solutions imnasol.com

Co-Founders Recognized: Israel Haikin was chosen as the CEO of the Leading Innovative Company in the Middle East in 2017 and Meirav Naor-Weinstock was selected as one of Israel’s 10 leading female entrepreneurs in 2017.

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INNOVATIONS FOR BUSINESS

TECH NOTES

Paranoia and the Big Attention Gap The problem with industrial espionage is not only that is growing in volume and complexity every day, but that its threat is being used by rivals and governments to discredit perfectly honest and legitimate businesses that do not deserve the slur.

What is also curious is that the danger need not be only non-existent, but not even something an individual rival is greatly concerned about. All it takes is a Twitter from a deranged politician for the whole panoply of suspicion and distrust to be set in action.

The overall economic costs of espionage are considerable. Even back in 1997, the American Society for Industrial Security estimated that, in that year alone, U.S. industry lost US$300 billion through espionage targeting proprietary information. Worldwide, even then, it was near US$700 billion. Over the two decades since then, we can expect the total to have doubled or even trebled.

To the extent that the weakest points are the direct infiltration by informers, paid informants, leaks from disaffected staff in situ, the poaching of key staff, inadvertent divulgence by staff when chatting to friends or colleagues in public places and variants of cyberattack, the natural lead must necessarily come from the Human Resources Department. However, how many companies have trade secret policies written and enforced by HR? How many HR departments have Commercial Confidentiality Managers who carry out preemployment checks to identify candidates who are possibly working for a rival? How much ongoing monitoring for internal informers takes place — to the extent that it is lawful? How many companies have even closely defined what their trade secrets actually are and operate strict right-to-know policies?

In the UK, it is now established through common law precedent that if a company takes sufficient steps to protect its trade secrets then their loss is actionable by law. Since 2016, the EU has had a tough new Trade Secrets Directive in place. In the USA, most individual States have adopted the Uniform Trade Secrets Act, whilst the even tougher Economic Espionage Act makes it a criminal act to steal sensitive data for commercial or economic purposes. The Defend Trade Secrets Act is the latest Federal Measure that allows the courts to seize property to prevent the spread of a trade secret. — Federation of International Employers (fedee. com), a leading organization for multinational companies

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Tech Innovation and Entrepreneurship under Avnet’s Wing Avnet, a leading global technology solutions provider is committed to supporting innovation and entrepreneurship at every stage. The company continues to sponsor the ASU Innovation Open, and continues to make its Ask Avnet program available for engineers. This is part of Avnet’s long history of actively encouraging innovation in the technology sector. “As nextgeneration technologies such as IoT, AI and deep learning drive innovation, developers need specific support and expertise to manage the complexity of bringing products to market around the world,” says Avnet CEO Bill Amelio. “At Avnet, we’ve created a unique end-to-end ecosystem that helps take innovation from idea to design, and from prototype to production.”

At the present time, Avnet is working with a connected health company, Vital, on a product that can capture seven key vital signs in one application.

Nearly 1 billion people around the world suffer from high blood pressure or heart failure, and diabetes. They need to check their vital signs one or two times each day, and share that data with their doctors to review remotely. For patients with these chronic diseases, and many others like it, those vital signs can offer immediate clues to lifesaving measures — but it takes at least five dedicated devices to capture one individual’s core vital signs. Each device takes time and money, even for those patients who can afford their own at-home equipment.

Enter the Vital team, who had an idea for a much easier and more interactive approach for

monitoring vital signs with a single, integrated device. The team developed a prototype device: one single finger cuff that could capture key vital signs, attach to a smartphone, connect to the internet via Bluetooth or Wi-Fi, and transmit vital signs to a mobile app.

Vital then turned to Avnet to organize a team of electrical and mechanical experts to help the company refine the prototype’s design, source the components and bring the products to scale.

Avnet’s experience with IoT product development helped Vital create a product that can capture seven key vital signs in one single application: temperature, blood pressure, respiration, oxygen saturation, pulse/heart rate, variability and profusion index (the amount of blood flow that goes through the vascular system). Currently, Avnet is working with Vital on productizing this innovative and potentially life-saving technology, while Vital is working on FDA approval and clinical trials to help the billions of patients around the world who manage chronic diseases every day live a little easier. “We’re also working on adding a new feature that will make life easier for patients with diabetes: the ability to measure blood glucose — non-invasively,” Amelio says.

The work with Vital demonstrates how Avnet’s unique end-to-end ecosystem can bring innovation to life and get products to market.

—RaeAnne Marsh Avnet avnet.com

Avnet continues to sponsor the ASU Innovation Open. Semi-finalists for the 2019 ASU Innovation Open were announced November 14; the semi-finals and finals will take place January 31, 2020. asu.io

LEADERSHIP IN BUSINESS Profiles of Those Who Support Valley Business

Great Leaders Driving Our Business Community

Steering the challenges of 2019 into successes for 2020

by RaeAnne Marsh In a business world where sectors increasingly overlap and intertwine — and are buffeted unremittingly by the stresses from continuous and increasingly rapid technological changes and unpredictable political forces — it’s the leadership that counts in keeping a company strong and moving forward.

In its annual tradition, In Business Magazine reached out to some of the Valley’s leading businesses and asked the men and women at the helm to share the experience they’ve gained over the year just ended. Especially, we asked them to look externally and consider what significant changes in the economy or their industry their company needed to address this past year and how they addressed those challenges, and look internally to review the best thing they’ve done over this past year in regard to management of their employees.

As our guest editor, Flinn Foundation President and CEO Tammy McLeod, notes in her letter (page 9), the mandate for business leaders is creativity, persuasion and hustle. The following pages offer great insights.

LEADERSHIP IN BUSINESS

Profiles Of Those Who Support Valley Business

When There’s Not Enough Talent to Go Around: Non-Traditional Recruitment from Kathleen Duffy President of Duffy Group, Inc.

Ask today’s corporate leaders what keeps them up at night and chances are good that recruiting and retaining employees are near the top of the list.

With the national unemployment rate hovering around 3.6 percent, there simply isn’t enough talent to go around.

At Duffy Group, we turned this dilemma into an opportunity for companies to look at recruiting differently.

Through a model called “recruitment research,” we take a deep dive into our clients’ businesses, workplaces and talent. Then, with insights in hand, we use rigorous sourcing techniques to find and contact the right candidates who can hit the ground running on Day 1 and whose personalities mesh with the hiring companies, too.

It’s a non-traditional approach that brings research to the forefront of the recruitment process. And — good news — it is paying dividends for our clients while propelling Duffy Group to an even higher level.

In fact, 2019 was Duffy Group’s best year yet. Not only did our company post record earnings, but we also were enlisted as a trusted recruitment partner in a greater number of C-level searches. We added five recruiters to our team and invested time and resources into our existing staff, too.

ADVANCING A WORKFORCE OF LEADERS

In the 1990s, Duffy Group was one of the first companies to innovate and lead a virtual workforce of long-tenured recruiters.

Although we do not see each other in a traditional office environment every day, we continue to work hard at building a close-knit, cohesive culture, with “intrepreneurs” interested in marshaling their talents and leading one of the company’s 11 dedicated recruitment practices. Last year, we launched a new Pathways program to groom members of our team for positions of greater responsibility while helping to grow our business.

Through training, coaching and mentoring, Pathways enables our recruiters to hone their leadership skills and leverage their business development expertise.

Along with training, we continued to build a culture of respect, integrity and collaboration. And importantly, we devoted even more time giving back, lending our time and collective expertise to a plethora of community causes and philanthropic endeavors.

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About Duffy Group, Inc. Duffy Group Inc. is a global recruitment firm whose innovative model called “recruitment research” helps unearth top talent with not only the skills to do the job but who are a cultural fit for hiring companies, too.

Since its founding in 1991, Duffy Group has grown from a startup into a flourishing company with a reputation that is second to none.

Of course, becoming a premier recruitment firm did not happen by accident. Rather, it was Kathleen Duffy’s single-minded dedication to help individuals find joy in their work that became her life’s mission. After all, she believes that people deserve to be enriched by the activity to which they dedicate more than 500,000 hours of their lives.

Along with her passion for guiding individuals on a path to workplace fulfillment, Duffy and her firm’s 28 recruitment leaders have an unyielding desire to help companies fill critical roles on their teams.

Acting as a virtual extension of their clients, Duffy Group employs a rigorous, five-pronged search process that is guided by two core values — trust and integrity — that are missing from many recruitment firms nationwide. The idea is to deliver real-world, actionable knowledge to employers.

It’s a model that is effective and economical.

That’s because, unlike retained or contingent search firms that charge a fixed percentage of the candidate’s salary, Duffy Group develops a customized recruitment strategy for each search, doing only as much or as little as each search requires and billing only for time spent.

The result: Clients pay only for the time dedicated to their searches instead of a hefty retained or contingency fee.

As an added benefit, Duffy Group provides clients with a detailed report with the results of its research — a proprietary targeted and

qualified talent pool, including all the market intelligence gathered — that they can use for future recruiting.

This winning approach to business is what attracts new companies to Duffy Group and also keeps existing clients coming back again and again. On average, 82 percent of Duffy Group’s clients come from repeat business and the company also enjoys a healthy referral business.

Headquartered in Phoenix, Duffy Group has an extensive global network that allows its team to source and recruit candidates in the United States, Canada, Mexico, Central America, Europe and Asia. The firm specializes in a wide range of industries, including highgrowing fields such as renewable energy, higher education, nonprofit, construction and manufacturing.

IN A NUTSHELL Company address (HQ location): 4727 E. Union Hills Dr., Suite 200, Phoenix, AZ 85050 Year founded in the Valley: 1991 Industry: Recruiting Top local executive/position: Kathleen Duffy, President and CEO Number of years with company: 28 Number of Valley employees: 24 (Four employees live outside of Arizona) Company contact information (website): www.duffygroup.com Top 5 services/products: Recruitment Research, an innovative, proactive approach of targeting and reeling in the best possible candidates.

Recruitment Research is precisely and successfully targeting the people that are the best match for a

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company’s open positions. Equal parts detective and skilled salesperson, each of Duffy Group’s highly trained practice leaders uses a flexible, multistep methodology that begins with learning our clients’ business and ends with a list of interested, qualified candidates.

Greatest 2018 milestones for the company: • Record year, exceeding revenue goal • Continued growth/expansion into executivelevel searches, particularly in the nonprofit sector • Significant growth in recruiting higher education professionals • Added investment and laser focus on staff training and development • Increased outreach and work by the entire Duffy Group team in community service and philanthropic endeavors

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LEADERSHIP IN BUSINESS

Profiles Of Those Who Support Valley Business

Reshaping the Future of Healthcare from Hugh Lytle Founder, Chairman and CEO of Equality Health The fragmented healthcare industry still doesn’t have a solution that helps independent healthcare providers deliver higher-quality care at a lower cost while addressing the whole-health needs of individuals across entire populations. When you start looking at the whole person, you have to reimagine how and when care is delivered to address physical, behavioral and social factors that impact overall health. An increasing number of health plans require healthcare providers to take on more risk for quality of care and cost containment. However, providers are experiencing higher administrative burdens, technological barriers and burnout, leaving very little time for advancing the doctor-patient relationship and the care people deserve and want.

To connect a fragmented healthcare system and treat the whole person, you have to design a delivery system that brings together a team of partners to proactively integrate and coordinate care. We designed a comprehensive network comprised of physical, behavioral and community-based organizations to do just that. We are not only the fastest-growing network in Arizona but the first to intentionally integrate behavioral health and community-based organizations into a tech-enabled delivery process. Our industry-leading care coordination technology, combined with our community resources platform, connects the team, gives a 360-view of the patient health status and enables providers to efficiently coordinate care.

Technology alone is not enough, so we added support service for providers, with training and aligned incentives to help doctors be their best and also make the entire practice efficient and sustainable as a business. This platform-as-a-service model is proving to be effective at serving nearly 200,000 Medicaid and Medicare Advantage lives under contract with eight health plans across Arizona. We took the route to transform healthcare delivery to help health plans partner with and evolve providers in this current risk-based environment. In the end, it’s what’s best for the individuals served.

This year, we initiated the replication of our model in Southern California.

WALKING THE TALK: LIVING OUR MISSION

As Equality Health engages with the community, it is equally important that our employees are engaged with our mission and our values.

In Q4 2019, we rolled out our core set of company values to our employees; these values were developed by the Trailblazer executive team with input from our employees in a collaborative approach — not just driven by me. We administered a values survey mid-year to our employees to gauge how our employees perceived us living up to our values. This not only provided data into how we are performing

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as a team with our values but also gave us insight into our employees’ engagement level. Overall feedback demonstrated that we are collectively committed to living our mission and values internally as well as externally with our customers, our partners and our members.

As a healthcare company, we are equally committed to rolemodeling healthy behaviors, as we see that as part of our value system as well. This includes both physical and mental well-being, which we believe being engaged at work contributes to.

Initiatives contributing to a healthy and engaged workforce are our Wellness A to Z participation (Platinum member); Lunch for 10 Strangers — bringing employees together from different departments, genders, ages and ethnic backgrounds so they get to know each other, thus creating collaboration; encouraging healthy living through onsite tools of free health snacks in our kitchens, onsite biometric screenings and flu shots, and bikes to ride around downtown Phoenix; and company-provided transit passes to contribute toward and promote healthier air quality.

Measures of an engaged workforce often come from levels of participation in events outside of normal work hours. This year, we participated for the first time in Greater Phoenix Chamber Foundation’s Wellness Wonders competition and took fourth place among other companies in the Valley, with more than 40 of our employees participating as well as their family members.

We also had the highest number of volunteers, with more than 60 employees participating in the annual Healthy Fall Festival hosted by the Equality Health Foundation.

The best onboarding programs equip new hires with the knowledge they need to succeed in their roles. But all too often, onboarding focuses on paperwork rather than people, culture and performance. That’s why we created the Equality Health University to provide training and a more comprehensive onboarding experience, utilizing industry best practices that help engage employees and reduce the length of time it takes to get new hires proficient and productive in their roles.

Innovation without fostering diversity and inclusion leaves untapped ideas on the table that could help a company scale and perform at high levels. We believe in embracing culture to empower health, and know our employees hold the keys to reshaping the future of healthcare. We created a Diversity, Inclusion and Equity Committee comprised of employees across the organization to provide insights, guidance and recommendations to the CEO and executive team, giving employees a seat at the table to shape winning strategies.

This culture of wellness, innovation, inclusion and collaboration is attracting local and national talent and contributing to the 35-percent workforce growth that we are experiencing.

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About Equality Health Equality Health, LLC is an Arizona-based wholehealth delivery system focused on improving care for all populations, increasing access to quality care and establishing member trust. Through an integrated care coordination technology and community platform, culturally competent provider network and unique cultural care model, Equality Health helps managed care plans and health systems improve care delivery while simultaneously making the transition to risk-based accountability.

Equality Health was founded by Hugh Lytle, a self-described serial entrepreneur and healthcare rebel. The common thread throughout his 25 years of healthcare leadership is a focus on health service innovations with a strong social mission and a desire to bring systemic change to the U.S. healthcare system.

As founder, chairman and CEO of Equality Health, Lytle works with managed care plans, employers and health systems to deliver a new level of care for hard-to-reach communities.

Equality Health's new primary care model encompasses culturally competent, wholeperson care that improves patient outcomes for more than 200,000 health plan members across a network of 4,000 physicians throughout Arizona and Southern California.

Prior to founding Equality Health, Lytle cofounded Univita Health, a care management business that improves the coordination and effectiveness of home care delivery. As president and CEO, he helped build Univita into a national platform, serving more than six million commercially insured, working-age Medicare

and Medicaid patients. He also co-founded Axia Health Management, the nation’s leading population health management company, and the first true single-source provider of preventive health and wellness benefits for employers and health plans.

In addition to creating three successful health management companies, Lytle’s experience includes executive positions at CVS Health and Xerox. He holds an MBA from Butler University (1995) and a BA in economics from the University of Indianapolis (1989). Lytle is a guest lecturer at the University of Arizona Eller School of Management and serves on the Arizona State University Health Future’s Council as well as numerous healthcare advisory boards.

IN A NUTSHELL Company address (HQ location): 521 S. 3rd St., Phoenix, AZ 85004 Year founded in the Valley: 2015 Industry: Healthcare Top local executive/position: Hugh Lytle, Chairman, Founder and CEO Number of years with company: Since founding the company in 2015 The New Culture of Care

Number of Valley employees: More than 250, with an overall growth rate of 35% Company contact information (website): www.equalityhealth.com

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Top 5 services/products: • Care coordination technology • Provider network management • Management services organization • Care coordination services • Retail clinic and telehealth services Greatest 2018 milestone for the company: Recognition by the Greater Phoenix Chamber of Commerce as Innovator and Business of the Year (www.equalityhealth.com/ equality-health-named-business-ofthe-year-by-the-greater-phoenixchamber).

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LEADERSHIP IN BUSINESS

Profiles Of Those Who Support Valley Business

A Holistic View to Mission Accomplishment from Kim Reedy President and CEO, OneAZ Credit Union

OneAZ Credit Union is committed to our mission of truly improving the lives of our members, our associates and the communities we serve. In 2019, OneAZ put a strong emphasis on making our members’ experience easy, enjoyable and effective, supporting Arizona businesses and making our associates’ jobs more efficient.

In 2019, we focused on member satisfaction by taking a holistic look at how we serve our members and making their feedback a priority. Gathering their input helps us understand member interactions and discover areas for opportunity. Thanks to our members, we are optimizing processes and improving associate-tomember communication.

Every organizational improvement we make serves not only our members, but also our associates. In order to ensure that we are hearing our associates’ feedback, we launched several internal surveys in 2019 to gauge associate satisfaction, communication and internal service. We learned a great deal from their helpful responses and are continually using this feedback to improve internal processes and enhance our organizational cohesion.

We continue to identify ways to improve OneAZ’s company culture and introduce exciting new benefits for our associates.

In addition to our competitive compensation, healthcare and lifestyle benefits, we are also introducing new perks like paid time off for pet care and 100-percent gym membership reimbursement. In 2019, we began offering student loan repayment assistance, and, thanks to the positive response from our associates, we are increasing the payment amount.

OneAZ strives to continually support and strengthen the Arizona economy. In 2019, we established a Legacy Partnership with Local First Arizona that has opened doors for OneAZ to connect with Arizona’s small-business community on a new level. As a local financial institution, we provide vital products and services to Arizona’s small-business owners. Decisions are made locally, with Arizona’s needs in mind.

We are proud to be Arizona’s credit union. From our founding in 1951 to 2020 and beyond, we are here for Arizonans whenever they need to call on their local financial experts.

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About One AZ Credit Union OneAZ Credit Union offers a full suite of financial products and services, from mortgages and auto loans to checking, savings and business accounts.

An Arizona mainstay since 1951, the credit union was co-founded by state employees who included the Honorable Rose Mofford, former governor of Arizona. OneAZ now serves the entire state with 21 branches and a robust online and mobile banking system that allows all Arizonans to become member-owners.

In partnership with OneAZ Community Foundation, the Credit Union supports Arizonans by offering financial support for natural disaster victims and grants for local nonprofits that improve the community. Through its flagship Community Impact Grants program, OneAZ has provided more than $280,000 in grants to nonprofits across the state.

OneAZ employs nearly 500 Arizonans at branches throughout the state, including its

Phoenix-based corporate office. The associatefocused credit union is committed to providing associates with competitive wages, exceptional benefits, a friendly work environment and opportunities for growth. OneAZ is a seventime recipient of the Peter Barron Stark Companies Award for Workplace Excellence, as well as Phoenix Business Journal’s Healthiest Employers and Arizona’s Most Admired Companies.

IN A NUTSHELL Year founded in the Valley: 1951

Contact: OneAZcu.com

Industry: Financial

Top Five Services/Products: • Home loans • Auto loans • Credit cards • Checking & savings • Business banking

Top local executive/position: Kim Reedy, President and CEO Number of years with the company: 8 Number of Valley employees: 330

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LEADERSHIP IN BUSINESS

Profiles Of Those Who Support Valley Business

Helping Employers Solve Their Healthcare Dilemma from Scott M. Wood Managing Partner and Principal, Benefit Commerce Group As an employee benefits consulting firm, Benefit Commerce Group is involved in one of the country’s hottest topics — healthcare. Our core business is focused on one of the most significant challenges facing employers in the Valley and the nation: providing costeffective health insurance for employees. When these benefits are normally the second- or third-highest expense on a company’s P&L statement, it is a constant dilemma.

For most employers, the cost of health benefits continues to rise at twice the rate of wage increases and three times general inflation. And, on average, 10 years of family income growth has largely been lost by increases in healthcare costs.

In the recession years, the focus was on reducing benefits and saving on premiums. Now, in our current full-employment economy, the conversation has shifted to the critical need to attract and retain employees. However, employers still need to control costs.

Many business leaders believe their health plan costs are due to economic factors beyond their control. At BCG, we disagree with this. We have proven time and again that, with a sustainable strategy that relies on data-driven decisions, employers can have control. Proof that our solutions work lies in the millions of dollars our clients have saved — without reducing benefits.

How are we, at BCG, solving this challenge for our clients? By providing the following: properly designed benefit plans, some of which include account-based plans (HSA or HRA); alignment of incentives/disincentives; high-performance provider networks; management of prescription drug costs; cost transparency tools; education and communication for employers and employees; a best-in-class member service and support platform; wellness programs that focus on measurable health improvement; and data analytics that can identify employees’ gaps in care, predict future claims levels and focus programs on what the employer’s actual workforce needs.

BCG has been a leader in developing user-friendly programs for employees that encourage and reward a focus on health and consumerism. This includes an exclusive program that guarantees lower renewal premiums and is available only through BCG. Another example, combining a high-performance provider network with a multi-disciplinary care team for those individuals who are high-risk/high-utilizers of healthcare, can reduce medicalcare needs and costs. This solution means that an employee with diabetes may have the help of an RN case manager, a behavioral health/social worker, a clinical pharmacist and diabetic education

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team. This patient-centered approach closes gaps in care, reduces duplication, and coordinates care among medical providers and community resources.

BCG customizes the solutions that work for each client’s specific situation. We are committed to controlling costs for employers, employees and their families, while protecting the value of the benefits they receive. We believe that is the way to attract and retain employees.

2019: A YEAR OF TRANSFORMATION & GROWTH

For any well-run company, formal perpetuation planning is critical. During 2018, BCG began this process with clear objectives: We did not want someone else dictating how we were going to do business, we wanted to reward our team for their achievements, and we wanted collaboration with a larger organization to continue to bring greater value to our clients.

On August 1, 2019, we joined Alera Group, a national company that is now 80-plus firms and 2,000-plus employees strong and growing. Alera Group is built on the concept of collaboration, which has been part of the DNA of BCG from our beginnings.

This is a perpetuation solution that will yield even greater growth for our firm, greater opportunities for our staff and enhanced resources for our clients.

The transaction created the opportunity for the BCG partners to reward every BCG employee with a significant transaction bonus. In addition, the partners agreed to share 20 percent of our earn-out dollar proceeds with our employees. There is also a profit interest structure (similar to an equity position in Alera Group) for our leadership team and other key staff. None of our management and staff has left or been removed as a result of this transaction.

Alera Group’s commitment to its “Collaborative Way” includes training for all our employees on: Listening Generously, Speaking Straight, Being for Each Other, Honoring Commitments and Acknowledging and Appreciating.

The future for BCG is even brighter now than at the start of 2019, and we can’t wait to see what new heights we achieve for our employees and our clients.

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About Benefit Commerce Group Benefit Commerce Group, an Alera Group company, is a progressive and results-driven employee benefits consulting and brokerage firm. The company is committed to creating benefit plans and strategies that make life easier and better for HR teams and that provide the best cost-effective value for employers, employees and families. It accomplishes this through collaboration — with its clients, its own experienced team and other Alera Group firms across the nation.

Alera Group is among the nation’s top 20 privately held insurance agencies, providing powerful solutions in employee benefits, property and casualty, and wealth management for clients across the country. It thrives through collaboration.

BCG believes collaboration is much more than choosing something off the shelf for its clients or

sharing best practices; it means identifying the experts in its ranks, finding the starting point of a solution and then working together to make it even better for its clients.

Benefit Commerce Group has a proven track record of developing long-term, sustainable strategies that help its clients and their employees and families save money, year after year. Its typical client has saved more than $10,000 per employee over a five-year period, without reducing benefits for employees and their families.

BCG’s corporate mantra is, “We say what we’ll do and we do what we say.”

While BCG has been growing, it also helps its clients receive the honors and recognition they deserve for their work to improve the workplace

and lives of their employees. It has assisted its clients in receiving more than 200 awards in the past five years for employee benefits and wellness programs. In addition, Benefit Commerce Group itself has been named a “Healthiest Employer” each year since 2014 by the Phoenix Business Journal, and has been ranked among the “Best Places to Work” since 2015. BCG is a four-time honoree on the Inc. 5000 listing among the fastest-growing private companies in America.

BCG is also the title sponsor of the Phoenix division of Accelerent, a business development organization that works to bring companies together to build strategic business relationships throughout their community.

IN A NUTSHELL Year founded in the Valley: 2009 Industry: Insurance/Employee benefits consulting Top local executive/position: Scott M. Wood, Managing Partner and Principal Number of years with company: 10 Number of Valley employees: 45 Top 5 services/products: • Employee benefits strategy • Actuarial support, data analysis & program design • Wellness programs • HR/Benefits technology • Employee communication/engagement/ education

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Company contact information (website): benefitcommerce.com Greatest 2019 milestone for the company: On August 1, 2019, we joined Alera Group, a company of more than 80 collaborative firms designing employee benefits, property and casualty, and wealth management solutions. With 2,000 teammates across the nation, Alera Group was created in 2017 for the purpose of collaboration. Benefit Commerce Group, from its beginnings, has collaborated to develop the best solutions for our clients. We found in Alera Group an opportunity to expand that culture of collaboration. As part of Alera Group, we maintain our unique corporate culture and our growing local reputation while we leverage our national network of experts to help our clients to an even greater extent.

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Feature

MARKETING

Is Brand Obsolete in the Amazon Age? Or does the democratizing nature of the web make brands even more crucial?

by Lindsay Pedersen

Has the rise of e-commerce sites — Amazon in particular — made brands obsolete? Some people think so. In the Digital Age, or so the theory goes, customers don't even notice brand names. Online retailers offer endless supplies of in-stock products with plenty of user opinions to recommend them (or not). All the customer has to do is click through web pages and comparison-shop products by price, delivery time and customer reviews. No need to purchase only according to which brand has most loudly promoted itself.

But this is a dubious argument at best. Amazon hasn't introduced a new world order in which brand is irrelevant.

Quite the opposite! They have simply added a new frontier to the landscape that the excellent brands out there are already skilled in traversing.

Before the Digital Age, the media and brick-and-mortar stores operated via scarcity, awarding advertising and shelf space to high-budget businesses. The Internet changed all that. Today, deep merit — not deep pockets — drives business success. No longer does a company need a huge budget for its products to compete with others on the shelf.

But here's the thing: Human nature hasn't changed. In a time of ever-increasing choices fighting for a foothold in our ever-decreasing attention spans, customers desperately need mental shortcuts like brand.

Here are six reasons why brand differentiation is actually more meaningful than ever: A cluttered marketplace disperses customer attention. Brand helps one’s message break through

BRAND MYTH-STATEMENTS

Lindsay Pedersen is the author of Forging an Ironclad Brand: A Leader's Guide. She is a brand strategist, board advisor, coach, speaker and teacher known for her scientific, growth-oriented approach to brand building. She developed the Ironclad Method for value-creating brands while working with billiondollar businesses like Starbucks, Clorox, Zulily, T-Mobile and IMDb, as well as many burgeoning startups. ironcladbrandstrategy.com

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Certain very pervasive myths spring up around brand. We must confront these myths and knock them down if we are to make decisions that unleash our competitive advantage and ultimately drive sustainable growth.

brand strategy have little to do with one another. Brand can help a business attain earned media through PR outreach, which is typically free or inexpensive because successful PR requires a compelling story — in other words, a compelling brand idea.

MYTH: Brand is only a business's name or a logo.

TRUTH: Name and logo are merely expressions of brand. The name identifies the brand with words while the logo does so with image and color; they are the most visible and concrete expressions of brand but they are not brand in its entirety.

MYTH: Brand is irrelevant for businesses that use performance marketing tactics.

TRUTH: Brand strengthens all marketing tactics, including performance marketing tactics.

When brand informs performance marketing, these tactics can not only amass clicks and sales in the near term but can accrue brand affinity and enduring growth in the long term.

MYTH: Brand is only advertising.

TRUTH: Advertising is a tactic to express brand. Since advertising is shouting a business's message and what it stands for, advertising is, quite literally, an expression of brand — but advertising alone is not brand.

MYTH: Brand is only for businesses with large media budgets.

TRUTH: Marketing budget and

MYTH: Brand is spin.

TRUTH: Brand prevents the need for spin. An ironclad brand doesn't have to use spin because it finds the intersection between what truly serves the customer and what truly serves the business, and then transparently communicates and builds toward that.

MYTH: Brand is only for B2C companies, not B2B companies.

TRUTH: Brand is for businesses that have relationships with human beings, whether B2B or B2C. Both B2C and B2B serve human beings, so brand is relevant to both.

Whether buying as a representative of a household or of a corporation, a human being is in a relationship with the other business in the transaction, and brand facilitates and reinforces that relationship.

MYTH: Brand is not for "product companies."

TRUTH: Brand and product work together, not separately. While product is vitally important, it is the means, not the end. Customers don't care about one’s neat-o product; they care about what they get as a result of that product — what's in it for them.

Businesses should care most about that, too. Building an ironclad brand strategy puts what customers care about into sharp relief for everyone.

Before the Digital Age, the media and brick-and-mortar stores operated via scarcity, awarding advertising and shelf space to high-budget businesses. The Internet changed all that. Today, deep merit — not deep pockets — drives business success.

BETTERING YOUR BUSINESS and grab them. Brick-and-mortar stores are built on scarcity, which customers actually prefer (though they may not realize it). Studies show it's easier for us to make decisions when we have fewer choices.

So the fact that the Internet provides infinite shelf space and allows businesses to compete with every other product in the world is actually a disadvantage for customers. Brand comes to our rescue. A laser-focused brand cuts through the clutter and helps businesses earn the right to a customer's purchase.

As helpful as customer reviews are, they still don't displace brand. E-commerce sites like Amazon provide more access to information, including customer reviews. Yes, transparency around millions of customers' product preferences is a new occurrence — but brand played a role in whether those customers found those products compelling, as it always has. What all these customer reviews can do is shed a light on a brand's flaws.

For instance, when I learned from online customer reviews that Brother printers were more reliable than HP printers, I switched brands.

However, I did this because of the democratization of information and reviews, not because Amazon killed the HP brand. The lesson here is for companies to pay attention and take action to solve the problems customers raise. As customers, we want the businesses in our lives to earn our trust. Amazon can't change human nature.

Strong brands mitigate risk for customers. Good brands, like good relationships, build trust and therefore offset risk. This trust is especially important with big purchases, such as vacations or cars. When someone is investing in something expensive, there is both a high financial cost and a high emotional cost to getting the decision wrong. If people rely on strangers on the Internet to choose a hotel room for them, they put their long-awaited vacation at risk: After all, what one person looks for in a hotel may be very different from what someone else looks for.

Consider how complicated and risky it is to plan a two-week vacation to Italy, complete with airfare, hotels, food, museum fees, and car rentals. When I did this with my family, I engaged several brands beyond the review sites like TripAdvisor. I also used Lonely Planet, Rick Steves, Frommer's and Fodor's. These brands have skin in the game. They give a detailed and helpful review. They offer specific pointers. By relying on these trusted brands, I felt better about zeroing-in on what mattered to me.

Brand also saves time. This is an important subset of risk.

Bombarded with options, many people breathe a sigh of relief to be able to choose a brand they know and trust. They don't want to have to perform a cost-benefit calculation with every purchase they make.

People count on brand in tough economies to ensure their (scarcer) money is well spent. When money is tight, people become more risk conscious and are often willing to pay more to ensure that the money they do spend won't be wasted. Even during recessions, branded products often outperform unbranded ones, provided that businesses have built an ironclad brand strategy prior to the economic downturn.

This is a powerful example of brand mitigating risk.

Brands earn trust by repeatedly keeping big, meaningful promises, and by delivering on those promises, with the big things and the small ones. If there is no chance of repeated interactions, if the purchase is a “one-night stand” between business and customer, there is less need for a relationship, and therefore less need for a brand. But most of us do want repeat business — so we need to do everything possible to earn the customer's trust and keep them coming back. Stand for a meaningful promise and deliver on that promise faithfully.

Be a Startup Superstar This book is for anyone who feels underemployed or is struggling to find a fulfilling career; stuck on a low rung of the corporate ladder and seeing no way up anytime soon.

Steven Kahan’s message: “You’re not alone.” From recent college grads to people who feel stuck in their corporate jobs, many people probably never considered working for a technology company that’s just starting out, especially if they are not a tech whiz. That doesn’t matter. Tech startups are desperate for talent and creativity in all kinds of fields from people with leadership skills and new ideas.

Be a Startup Superstar: Ignite Your Career Working at a Tech Startup Steven Kahan

176 pages

Wiley

Available 12/5/2019

Dynamic Digital Marketing Dynamic Digital Marketing teaches any business or individual how to increase online visibility and presence, attract their target audience, generate leads and convert them into profitable customers. Author Dawn McGruer is an expert at making businesses and brands shine online. Most entrepreneurs and businesses fully understand the importance of digital marketing, yet many do not know where to start or, worse, continue to spend time, money and effort on strategies that fail to provide the best results for their investment. To remedy this situation, McGruer developed her multi-award-winning digital marketing framework, Dynamic Digital Marketing Model. Offering step-by-step guidance, this book shows readers how to use this model to market their business online whilst transforming themselves into proficient digital marketers.

Dynamic Digital Marketing: Master the world of online and social media marketing to grow your business Dawn McGruer Wiley

440 pages Available 12/9/2019

$32.50

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Nonprofit CEO Key in Fundraising Collaborative Leadership is the term for leadership that is generated and sustained by the CEO. This is one of the four key pillars of fundraising success, according to Peter Smits, senior consultant with The Phoenix Philanthropy Group and Senior Fellow at the Council for Advancement and Support of Education, who has spent years studying the key characteristics of an organizational “culture of philanthropy.”

Richard Tollefson is founder and president, and Michal Tyra is director of client and community engagement 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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Optimizing the Role of the CEO in Fundraising Spirit matters

by Richard Tollefson and Michal Tyra Today’s nonprofit CEOs and presidents are expected to set the strategic direction of the organization, ensure organizational efficiency and accountability, inform and be answerable to the board and key stakeholders, and serve as the public face of the organization. With so much on their plate, it may seem logical to delegate the responsibility for fund development to the chief development officer (CDO).

That is their job, after all, right?

While that may be true, confining fundraising within the development department can be a significant mistake. A donor’s decision to give, and to give repeatedly, often depends on the overall spirit of the organization. This spirit — which is comprised of an organization’s vision, values and culture — is what creates the environment that enables and sustains giving. More than any other executive, it is the CEO who creates and sustains this positive environment, and who, consequently, is critical to the fundraising process.

Despite this, it should come as no surprise that many CEOs are not optimizing their role as “chief fundraiser.” Some intentionally shy away from the role due to fear. Others try to overcome their discomfort by forcing themselves to adopt a fundraising persona that is entirely unnatural. Neither scenario benefits the organization or the development team and can even be counterproductive to fundraising success.

It doesn’t have to be this way. Every CEO, regardless of personality or experience, can become an effective fundraiser. #1: One Size Does NOT Fit All Every chief executive is different. Each embodies different strengths, weaknesses, interests and fears — and the successful ones embrace this diversity of personality, rather than shying away from it. The same principle applies to fundraising. Forget any preconceived notions about what a fundraising CEO is or is not supposed to be. Finding and optimizing the ideal fundraising role is a reflective process — one that involves a degree of blunt honesty. An organization is best served by a CEO who knows what she is — and is not — good at and crafts her fundraising identity accordingly. #2: Develop a Close Partnership with the Chief Development Officer The CEO should not be alone in this reflective process. The chief development officer represents more than just another C-suite-level advisor. The CDO is both a partner and resource that the CEO can lean on to discover her ideal fundraising role

and then to optimize it. An excellent CDO will recognize the unique talents and expertise the CEO possesses and how these can be employed to the greatest impact. Together, this partnership can have transformational results for an organization’s fundraising performance.

Solidifying this relationship will take effort and patience.

Sherri Mylott, vice president of university advancement at the University of La Verne, emphasizes that this process is reciprocal, with give and take on both sides. “Our president makes the effort to write contact reports after meeting with prospects, which simplifies my job immensely. In return, we in the advancement office always try to remain a step ahead of her in the fundraising process, allowing the president to remain focused and on track.” #3: Prioritize an Organization-Wide Culture of Philanthropy The CEO should not just consider her own fundraising identity, but also that of the organization as a whole.

Everyone, from program officers to the board of directors, plays a role in the fundraising process — and the most successful organizations are the ones that not only recognize this, but take steps to optimize its potential. The CEO can supercharge this process by creating an atmosphere of collaborative leadership and philanthropic purpose. This can include any activity that helps to bring fundraising beyond the walls of the development office and infuses everyone with passion and purpose for fundraising success. At the University of La Verne, Mylott says this open and philanthropic atmosphere has had a transformative impact on fundraising success: “President Lieberman, though a very strategic thinker herself, always ensures that there is space for everyone to contribute. She makes sure that ideation and strategy development is a highly collaborative process.” #4: Engage Outside Counsel to Help Often, the above advice is more easily acknowledged than acted upon. This is especially true when either the CEO or CDO is new to the organization. When in doubt, engaging outside counsel can help smooth the transition and ensure that the onboarding process lays the foundation for a healthy working relationship. Additionally, in situations where counsel has been previously engaged by the organization, counsel can help to provide a historical link and bridge any knowledge gaps, thereby eliminating landmines or wasted time on repetitive conversations and issues that were previously resolved.

When engaging outside counsel, also consider investing in executive coaching. CEOs who are struggling to find their fundraising identity can often benefit best from the counsel and advice of an unbiased third-party expert.

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Economy

DEVELOPING & GROWING BUSINESS DYNAMICS

Finding Financing to Fit One’s Business There’s a time and place for a line of credit

by Kevin Fox

For smaller businesses, debt sometimes gets a bad rap. But for many businesses, access to a business line of credit may be not only necessary, but a smart move. Knowing how to select the right line of credit and manage it wisely, rather than managing everything on a cash basis, can help a successful small business become a larger successful business.

Financing options can be complex, however, so it’s worth taking the time to go through one’s cash and financing options with a business banker who can take the time to understand what one is trying to do.

Kevin Fox joined Alerus in January 2018, bringing with him more than 22 years of financial industry and banking experience.

As a business advisor, Fox works to understand the needs and goals of his clients, then acts as a trusted advisor to provide solutions that make sense and add value.

Often, his role involves bringing in experts from within Alerus, including retirement specialists, treasury specialists, mortgage bankers and wealth advisors, to form a team and craft solutions tailored to the client’s specific needs. alerus.com

Cash Reserves – “The First Line of Defense” Most people have heard the personal finance adage that they should have on hand an amount of cash equal to six months of expenses, in case they lose their job or have an emergency expense. But does this hold for businesses? And is it realistic or wise to have that much capital sitting around?

The short answers: Yes and yes. How much one needs will depend a lot on one’s business and cash flow, so it is helpful to talk with a banker or business advisor who can draw on experience working with similar types of business.

Smoothing Out Irregular Business Cycles and Protecting Capital with a Line of Credit Many businesses have expenses and income on different cycles. Buying inventory weeks ahead of a shopping season, or raw materials that take months to turn into finished products the business can sell are classic examples. Managing ebbs and flows by saving cash in rich times to spend later makes it hard for a business to grow since it won’t have enough capital to expand significantly if the market is ripe. Lines of credit enable more flexibility than a credit card and often have better terms, and a business can cover ongoing expenses with less stress.

With a line credit, a business is financing the gap between the placement of the order and the delivery of the product or service.

Using Term Loans for Capital Expenses instead of Paying Cash Buying a large-ticket item is stressful for smaller businesses. Purchases like major machinery or real estate can cost a lot, but they enable a company to make money over a long period of time and have an intrinsic value that improves a

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business’s balance sheet (and can be used to secure the loan).

Saving up cash takes a long time and carries an opportunity cost. More importantly, term financing frees up cash to use for more productive purposes, like hiring people to run the machine or more inventory to sell at a store.

Weighing the Cost of Financing against Gains in Efficiency Business owners should think of purchases in terms of value to the business, not just price plus interest. Some purchases are more valuable than others. If the monthly payment for one piece of equipment is twice as much as another but triples productivity, that would be a good place to take on more financing — as long as there is a market for the increased output. Seizing such opportunities isn’t as risky as it might seem if the business has a good business plan and a good lender who will help validate these kinds of cost/benefit equations.

Using Financing to Help Manage Changes in Ownership Succession planning helps businesses — and people. Many businesses delay or avoid talking about succession plans. They shouldn’t. In many companies, talk of succession planning may seem unnecessary or even “bad luck.” But planning what happens to one’s business not only ensures business continuity, it relieves families of the burden of sorting out ownership and is crucial for the well-being of employees and partners, too.

Buying, selling and passing down a business are situations as unique as the people involved. An owner may want to take on a partner or sell to a buyer who doesn’t have the cash available. Or perhaps it’s time to set up an Employee Stock Ownership Plan (ESOP) so the owner can make the employees owners. In both cases, loans and payouts can be structured in lots of ways beyond a simple bank loan to make the opportunity attainable for all the parties involved.

Business owners shouldn’t expect to be experts in finance as well as running their own business. Financing options are more varied and specialized than many people might expect.

For those who have generally run their business on cash, credit card and simple charts of accounts and are ready to take the next step, a business advisor can help them learn about the possibilities that are available.

Managing ebbs and flows by saving cash in rich times to spend later makes it hard for a business to grow since it won’t have enough capital to expand significantly if the market is ripe. Lines of credit enable more flexibility than a credit card and often have better terms.

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Otto S. Shill III is an attorney with Jennings, Strouss & Salmon, P.L.C. For more than 30 years, he has helped businesses, business owners and individuals comply with tax and other government regulations, navigate government investigations, and build wealth through business transactions and longterm business and estate planning. jsslaw.com

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Tax Issues for Arizona Retailers and Taxpayers Changes even the playing field for online and brick-and-mortar

by Otto S. Shill III

In the summer of 2018, the U.S. Supreme Court officially recognized our country’s significant shift from local to online sales of goods by overruling the longstanding precedent that previously prevented state and local governments from imposing sales taxes unless a seller had a physical connection or “nexus” with the state. While earlier decisions had determined that physical presence was not required to establish minimum contacts required by the Due Process Clause of the U.S. Constitution (see Quill Corporation v. North Dakota), in South Dakota v. Wayfair, Inc., the Court determined that a seller’s economic presence within that state rather than just its physical presence was a sufficient connection or nexus to allow taxation, as long as the taxing scheme otherwise satisfies the requirements of the Commerce Clause of the United States Constitution. The question for the Court was whether physical presence was the only way in which a state could satisfy the requirement that, “a state tax must be applied [only] to an activity with a substantial nexus with the taxing state.” (Complete Auto Transit v. Brady) The Court considered South Dakota’s new statute that conditioned taxation on a remote seller reaching defined sale benchmarks of either: (i) One hundred thousand dollars or more in sales, or (ii) Two hundred transactions for the delivery of taxable goods or services. The state’s objective was to level the playing field between brick-and-mortar stores and online sellers. Under prior law, local merchants competed with difficulty with online sellers because of the cost of physical facilities, sales that were always taxable and compliance audits, while on-line sellers did not pay or report tax unless they had a physical location in the state.

The Court recognized that customers who purchase products provided by their online sellers enjoy the benefits provided by their state governments. Consequently, online sellers have a direct economic relationship to the services provided by their respective customers’ states of residence.

In Wayfair, the Court decided that the “physical presence” standard, “must give way to the far-reaching systemic and structural changes in the economy and many other societal dimensions caused by the Cyber Age … The Internet’s prevalence and power have changed the dynamics of the national economy.”

The Court listed the several characteristics of the South Dakota statute that ensured its compliance with the Commerce Clause of the U.S. Constitution, including:

1. A safe harbor for small sellers,

2. Prospective application of the statute,

3. Single state-level tax administration,

4. Uniform definitions of products and services,

5. Simplified tax rate structures, and

6. Uniform rules.

Since Wayfair, all states must conform their sales tax statutes to the new standards. Arizona had two challenges in meeting this mandate. Firstly, Arizona has a complex transaction privilege tax system with 16 different tax classifications with separate definitions, rates and exemptions. Secondly, Arizona allows each municipality to adopt its own version of a model tax code, so no city code matches the state statutes.

Arizona law now taxes both remote (online) sellers and large online “marketplace facilitators” that provide a sales platform to multiple individual online sellers, all with standards intended to comply with Wayfair. Remote sellers with sales of more than $200,000 in 2019, $150,000 in 2020 and $100,000 for all years thereafter must report their sales and pay tax. Marketplace facilitators must report and pay tax if sales exceed $100,000 in any year. A remote seller reaching the threshold must commence reporting and paying tax on the first day of the month after that event. If sales volume decreases, the remote seller can discontinue reporting and tax payment after being below the threshold for one year.

The new Arizona law now governs all retail sales transactions in this state, subject to a few necessary exemptions for select items like food sales and college textbooks, which municipalities can still independently tax.

Otherwise, Arizona law preempts separate city regulation of retail sales. Municipalities must tax marketplace sellers at the same rate as local retailers, but can vary the rate for both.

As with any major legislation with nationwide attention and controversial impact, legal challenges can be expected. We should learn in the next few years how Arizona’s transaction privilege tax reform will hold up.

Undoubtedly, things are changing every day, but a solid understanding of the applicable laws, proper training and a relationship with employment counsel will ensure employers remain on the right side of the law.

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Social Impact

Catch the 2019 Fiesta Bowl Events • Cheez-It Bowl will take place on Friday, December 27th.

• PlayStation Fiesta Bowl will take place on Saturday, December 28th.

• The Desert Financial Fiesta Bowl Parade, presented by Cheez-It, provides attendees the chance to join 100,000 spectators in Central Phoenix. It has featured a “Who’s Who” as Grand Marshals and includes 2,500 individuals who participate as volunteers, marching bands and community groups, plus automobiles, equestrian acts, balloons, floats and much more. The Parade is free to the public and is held on the final Saturday of December. fiestabowl.com

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

11elevenconsulting.com givinginstyle.net

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BUSINESS GIVES BACK

The Fiesta Bowl: More than Just a Game Among bowl games, it leads the nation in community charitable giving

by Tyler Butler

In only a few short weeks, the Fiesta Bowl will once again bring a national focus to our local community. Who will face off at that time is not yet known, but Arizona can count on the immense impact that this event will have on the community as a result. With partners like PlayStation, Cheez-It, Wells Fargo and more, the organization is powered by some household names while helping causes of all sizes locally.

Many people associate the Fiesta Bowl with only high-level college football. It is, however, making a mark for itself in so many more meaningful ways. “When the Fiesta Bowl was created in 1971, our founders made a commitment that the Fiesta Bowl would be Arizona’s largest and most important community effort in history,” says Fiesta Bowl Chairman of the Board Patrick Barkley. “We live that every day through our community impact to enhance the lives of Arizonans by championing charitable causes, creating innovative experiences and driving economic growth.”

Giving back has been at the core of the Fiesta Bowl since the organization was founded. Through its Fiesta Bowl Charities and fueled by the spirit of competition, the organization continues to be dedicated to serving the community. Through year-round activities that include charitable giving, volunteer service throughout the state, donations and more, the Fiesta Bowl is contributing to enhancing the lives of Arizonans.

To make the deepest impact, the organization focuses on nonprofits that serve in the areas of youth, sports and education.

The Fiesta Bowl’s public-facing programs enable it to make positive change possible. It is through a robust grant process that includes a month-long application period and a thorough evaluation and deliberation period that Fiesta Bowl Charities decides which worthy charitable organizations will receive funding. Fiesta Bowl Charities offers different levels of grants: $25,000, $50,000 and $100,000. With that tiered level of giving, the beneficiaries can create meaningful programming and make a deeper impact within their spheres.

One instance of immediate positive impact is the eight playgrounds across the state that Fiesta Bowl Charities has built in partnership with KaBOOM! to give children a stateof-the art playground that provides health and wellness for thousands of youth. Also, from the 70,000-square-foot field that the Cheez-It Bowl is played on, the turf is donated to a community in need after it is pulled up from Chase Field. This donation alone gives Arizona youth the unique chance to play on the same surface as some of college football’s best players.

All Fiesta Bowl events and Fiesta Bowl Charities activities fulfill Fiesta Bowl’s mission of giving back to the community while having fun. The organization’s mantra of “More than Just a Game” defines all it does on a daily basis and is the core of its events and charitable activities. Through its focus on partnership, the organization has been able to launch many amazing programs.

DriveTime joined as the title partner of Fiesta Bowl’s Wishes for Teachers program — which grants $1 million to Arizona’s teachers — because of its shared commitment to education.

Blue Cross Blue Shield of Arizona is involved in several nongame-related endeavors, such as being the title partner of Fiesta Bowl’s volunteer program, a World Record community activity and other philanthropic efforts. “Charitable giving is core to the Fiesta Bowl mission, as all we do throughout the year with our events and games helps us build a base that we donate back to the community,” says Mike Nealy, executive director of the Fiesta Bowl. “I love seeing how each nonprofit puts its funds into action. From building playgrounds to laying new turf in communities, we have seen some impressive projects.”

This commitment has now positioned the Fiesta Bowl as the largest bowl-game donor to community in charitable giving nationally. This proud tradition of giving back and engaging the community will continue as the Valley of the Sun hosts the 2019 College Football Playoff Semifinal at the PlayStation® Fiesta Bowl.

The Kroger Co. thekrogerco.com

Program Spotlight: Through Wishes for Teachers, powered by DriveTime program, the organization provided a $5,000 wish to 200 teachers in the 2019-20 school year for the second straight year and has donated $3.2 million to teachers in the four-year history of the program. fiestabowl.org/index.aspx?path=wishesforteachers

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Capacity

Bruce Weber is founder and president/CEO at Weber Group.

Weber brings more than 20 years of experience to the forprofit and nonprofit community, working with startup, growth and mature organizations.

His focus is in strengthening organizations through strategic planning, organizational development, leadership and board development. He is a BoardSource Certified Governance trainer and a founding partner of the Nonprofit Lifecycles Institute.

Charlie Smith is managing partner at the Weber Group.

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

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FOR-PROFIT & NONPROFIT GROWTH

Create Capacity through People

The second of a six-part series on developing and sustaining organizational capacity

by Bruce Weber and Charlie Smith Every month, organizations prepare financial statements reconciling their “numbers” for the accounting period. One of those line items — salaries — typically represents one of the largest expenditures for the business and is a significant investment for the firm. Behind those dollars are real people who are the lifeblood of the organization and one of the key drivers of economic growth. It is necessary for the staff to maintain high levels of productivity, engagement and focus to have a positive impact and ensure solid programmatic and financial performance. One of the best ways to accomplish high-level performance is to deeply embed a solid culture and core values within the organization. Creating this culture is a system-wide effort and takes time, but is well worth the investment.

What is culture? Culture, according to Alison T. Brill, public health and inclusion specialist with the Massachusetts Department of Health, “is the way things are done, how people are treated, the values that are upheld, and the power structures that are maintained.” Culture is the shared beliefs and values that are established by leadership and then permeated throughout the organization. These cultures and the values that support them set the stage for everything that lies ahead. Positive culture allows individuals to bring forth new ideas that challenge the norm in a productive way. Culture becomes the foundation that all good organizations rest upon.

Failure to focus upon building strong culture and values can have adverse effects in leadership success and result in high turnover and poor customer service, while impacting success in achieving the organizations goals/bottom line.

Now that we know the importance of building strong culture and values, how does one go about doing it? According to the SHRM Foundation, a leading voice in sustainable HR practices, it begins with identifying the core components of a good culture. One of the best examples of a company with a solid culture is Costco, a place where many of us have spent many weekend afternoon shopping for giant-sized anything!

Despite those oversized products and tasty samples, Costco

offers quality service that is consistently rated highly and their employees are among the best. Costco management began with seven powerful strategies: 1) Share information about the organization and its strategy, keeping the team current on direction and outcomes. 2) Provide decision-making discretion and autonomy by empowering people with freedom to get the job done while holding them accountable. 3) Create a civil culture with positive relationships and have zero tolerance for incivility while celebrating success and having fun. 4) Value diversity and establish an inclusive atmosphere by encouraging acceptance of those who might differ from the majority. 5) Offer performance feedback by encouraging an open dialogue of two-way communication and creating opportunities for learning. 6) Provide a sense of meaning by sharing stories and highlighting success and impact. 7) Boost employee well-being by encouraging staff to take care of themselves through flexible work schedules and breaks.

What all of these strategies have in common is, they value the employees as partners in the business and strive for inclusiveness in everything they do. This translates into a strong “who we are” and “what we do.” This becomes the barometer for gauging success and impact in an organization and deeply values the contributions of everyone in building the human capacity within the organization. Fundamentally, organizations are collectives of people, so one must invest in building the best bench possible.

The key to building organization culture and values is to get started! Some of the strategies mentioned above require minimal financial investment but reap significant returns.

The impact on an organization’s people is a more engaged, inclusive, and productive team that is working to a collective set of goals. Those whom the organization serves will notice the distinct difference between that organization and others like it. Building a solid culture and core values is a key ingredient in overall organizational capacity and should not be overlooked. Get started today!

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Mind Matters

BUSINESS OF THOUGHT

Leadership Disrupted How trauma impedes our work and relationships

by Andy Maurer

Andy Maurer brings wholeness to the fragmented lives of leaders. As a keynote speaker and licensed therapist, he works with high performance leaders, including CEO’s, founders, entrepreneurs, professional athletes, and TV personalities, educating and equipping them on the issue of toxic stress and trauma and its impact on their work and relationships. He holds both a Master of Divinity from Phoenix Seminary and a master’s degree in marital family therapy from Fuller Theological Seminary. andymaurer.com

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At its core, leadership is about cultivating relationships, building trust and inspiring influence. Leadership guru Dale Carnegie was so convinced of this reality that he spent his lifetime teaching people how to “win friends and influence people.” Leadership development consultants Jack Zenger and Joseph Folkman studied 300,000 business leaders and identified 10 key qualities to a successful leader. Not surprisingly, more than half of the qualities that emerged were relational in nature. Even employees want and expect their leaders to be relationally intelligent. Research by the Pew Research Center found that 89 percent of adults say it is essential for today’s business leaders to create safe and respectful workplaces.

While relationship-based research around psychological safety, emotional intelligence and interpersonal neurobiology are brought to the foreground of leadership, the discussion of trauma still remains in the background. This is shocking considering trauma is one of the greatest threats to connection and perceived feelings of safety. At its core, unresolved trauma always breeds disconnection — from ourselves, from others and from our work. According to the International Society for Traumatic Stress Studies, trauma often occurs within relationship and, therefore, wires our subconscious to distrust even when someone is trustworthy.

Trauma literally reinforces our neural synapses to believe that relationships will result in wounding, especially with people who are in authority above us.

Trauma’s Impact on Work While interpersonal skills are important for success, there are other prized qualities of high-level leadership. The CEO Genome Project — a 10-year study of 17,000 C-suite executives, which included 2,000 CEOs — found four qualities that set successful CEOs apart. Firstly, decisive CEOs were 12 times more likely to be high-performing CEOs because of their ability to make decisions earlier, faster and with greater conviction. Secondly, successful leaders gather buy-in from others by being actively aware of their emotions and body language. Thirdly, the ability to adapt to rapid changes in the environment by having a long-term perspective made a CEO 6.7 times more likely to succeed than those who remained inflexible and myopic. Lastly, the capacity to reliably produce results over the long haul was one of the most essential

behaviors of CEOs. In fact, those who scored high on reliability were 15 times more likely to succeed in their role. While these four behaviors are highly coveted among C-suite executives, trauma has been shown to impede every one of them.

Firstly, decisive decision making — the benchmark quality of a successful CEO — is made possible by the activation of the prefrontal cortex, which is petitioned to assess, analyze and make well-reasoned and logical decisions. Brain scans of individuals who have experienced trauma reveal an underactivation in this region of the brain and an over-activation in the amygdala, the fear center of the brain. As a result, decision-making becomes delayed and logic and reason are unclear, at best.

Secondly, while emotional intelligence — the ability to recognize, understand, manage and influence our own emotions as well as those of others — was pivotal to success as a CEO, research has shown that trauma disrupts the social and emotional engagement centers of the brain. For example, the insula, a small region of the cerebral cortex that is primarily responsible for self-awareness and the detection of emotional cues in others, has been shown to be under-developed in trauma survivors.

Thirdly, adaptation as a leader requires long-term planning, which is controlled predominately by the prefrontal cortex.

Trauma re-routes energy away from the prefrontal lobe and, instead, activates the amygdala, resulting in a “fight, flight or freeze” response. As a form of survival, the amygdala restricts, rather than expands, our perspectives, resulting in myopic and rigid thinking patterns.

Lastly, trauma limits our ability to produce reliable results over the long haul. Due to the prolonged and increased activation of the stress response system, often seen in trauma survivors, individuals often collapse emotionally, physically and relationally. Stable energy and mood states are extremely difficult due to trauma’s impact on the body and brain, and survivors often fluctuate — sometimes rapidly throughout the day — between anxious and depressive states.

If the business community is going to support the professional and personal development of leaders, it must address the facet that is most disrupting leadership: trauma. Only when trauma is brought to the forefront of these conversations can leaders tap into their full capabilities.

In their studies of 300,000 business leaders, leadership development consultants Jack Zenger and Joseph Folkman identified 10 key qualities to a successful leader — more than half of which were relational in nature.

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The e-tron has unparalleled driving dynamics due to its low-positioned battery and dual motors set on each axle. Each motor is designed to distribute power efficiently and output nearly instantaneous torque.

This is the next generation of quattro®. Building on decades of engineering, the e-tron's new electric quattro all-wheel drive provides exceptional control and confidence in all kinds of driving conditions. The e-tron battery has been carefully engineered to account for heat generated from fast increases in speed and repeated

acceleration, ensuring consistent performance and an excellent driving capability. Engineered for durability, safety and driving dynamics, the Audi e-tron battery is covered by an eightyear or 100,000-mile (whichever occurs first) limited warranty for added peace of mind.

Drivers can control their life on the go with in-car Amazon Alexa integration.

They can control their Alexa-enabled devices, access Amazon music and more, as well as easily manage an array of functions that include navigation, entertainment and ride dynamics with 10.1" screen of the Audi MMI® touch response system. Audi Virtual Cockpit Plus is a high-definition digital instrument display with gauges designed to help the driver maximize efficiency, recuperation and range.

Drivers can access their phone to

connect to their favorite apps, music, maps, messages and more, as it’s compatible with Android Auto™ and Apple CarPlay®.

Five years in the making, the e-tron represents a new era of the electric vehicle — and a new era of Audi. The engineers designed the e-tron to be the first purely electric Audi worthy of the rings. In it, the driver moves like the wind, through the wind. An aerodynamicallyoptimized design with a low drag coefficient of 0.30 helps get the most out of every charge. Drivers can transcend everyday driving with a luxurious interior that includes high-quality leather appointments, remote climate control, an optional air ionizer package and standard ventilated front seats with optional —Mike Hunter massage feature.

AUDI e-tron SUV Prestige

MSLP: $79,100 0-60 mph: 5.5 sec.

402 hp / 300 kW Air Suspension with five modes, including off-road 150 kW DC charging Range: 204 miles (EPA est.)

Audi audiusa.com S MAGAZIN

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Photos courtesy of Audi

HEALTHC

for workouts, as for any other business meeting or plan for the day.

Stay active and eat properly. Even if there’s no opportunity to really exercise, there are other ways to stay active, such as walking (get out and explore the city) and using stairs rather than elevators. And, above all, maintain a healthy and balanced diet.

Create a homemade workout challenge. Track steps toward an individual goal each day with a Fitbit or even just any smartphone.

Choose the right hotel, with the right equipment.

Before the trip, research to find a hotel with a gym that meets individual workout needs. —Cat Kom, a celebrated expert in the fitness world and founder of Studio SWEAT OnDemand (www.studiosweatondemand.com)

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Sticking to a normal workout routine while traveling can be challenging. Studio SWEAT OnDemand allows travelers to stream online workouts like yoga and Spinning classes from the comfort of their hotel.

Other tips: Pack the right stuff. Planning workouts away begins at home. Packing the right stuff for a trip will make life much easier while traveling. Start with attire: lightweight clothes that dry fast and, of course, running shoes. Add a lightweight yoga mat that folds into a square and can be squeezed into the suitcase to avoid having to exercise on the hotel room’s floor. Instead of weights, throw a couple of resistance bands or a TRX strap into the suitcase, for strength exercises.

Schedule those workouts. Whether traveling on business or vacation, it’s best to set a predetermined time

2019

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e-tron® Brand Two models are available: the SUV (above) and, coming soon, the GT concept sedan. Pioneering charging technology allows the current e-tron SUV to charge at speeds of up to 150 kW at high-speed public chargers, with future models anticipated to be able to reach charging speeds of up to 350 kW.lifestyle needs, such as golf, skiing, cycling, field and adventure sports. Practical load space size and shape ensures DBX can carry luggage, equipment or pets with ease for a truly custom vehicle.

DEC 47 2019 INBUSINESSPHX.COM

MEALS THAT MATTER

Ceviche de Atun Fresh tuna, lime juice, mango, habanero, red onion and sliced avocado $14

Filete Cuchos 8-oz Prime Filet Mignon covered with melted Manchego cheese, served on a corn tortilla with potatoes, fresh vegetables and house chipotle sauce $34

BY RAEANNE MARSH

Agave del Scottsdale Celebrates Southern Mexican Mexico boasts a variety of cuisines that go farther “south of the border” than cheese-drenched enchiladas and fried street tacos. Delivering that broader culinary experience is the mission of the restaurateurs behind Agave del Scottsdale, where the dishes reflect flavor traditions of areas from Mexico City south.

Several ceviche dishes offer many flavors “del mar” such as octopus, shrimp and fresh tuna. Appetizers range from the familiar (guacamole and queso fundido) to the more exotic Tlacoyos de Huitlacoche — a blended mix of yellow corn kernels, huitlacoche “kernels,” cheese, cilantro and chives mounded on a hand-patted, pancake-thick blue corn flour tortilla and drizzled with queso fresco.

Among the assorted tacos is Gobernador — made with shrimp that’s been coarsely chopped and sautéed so that it’s thoroughly coated in a mildly spicy sauce.

Atun is one of Agave del Scottsdale’s gourmet burritos — thick chunks of seared yellowfin tuna wrapped with plentiful salad greens in a jalapeno tortilla and served with a cilantro, tomatillo and serrano chile aioli for dipping or pouring.

Vegetarians will find several flavorful menu choices from salads to entrées — such as vegetarian enchiladas made with

carrots, mushrooms, squash and potatoes in a potosino sauce; and steak lovers will be tempted with Filete Mestizo — steak that’s been pounded to thinness to be stuffed with pork chicharrón and topped with manchego cheese, caramelized shallots and epazote frito.

Tequila is not just an ingredient for Agave del Scottsdale’s varied margaritas and other drinks but is an eye-catching design element, with crystal clear bottles standing in stately array on open wooden étagères that serve to define dining areas within the restaurant. The muted décor eschews frenetically vivid color schemes to offer a relaxing atmosphere of neutral shades and airy spaciousness. Its patio exemplifies the design aesthetic of bringing the outside in, with a wall of glass panels that fold completely to the side to open the restaurant to the covered patio overlooking a fountain courtyard.

Agave del Scottsdale

8390 E. Via de Ventura, Scottsdale (480) 248-6901 agavedelscottsdale.com

Local Restaurateurs Put Meatballs on Top Tortillas filled with shredded pork, with anchiote sauce, wrapped in a banana leaf, with a red-onion relish $13

DEC 2019

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Two of our Valley’s favorite restaurateurs have taken what used to be just an add-on to a spaghetti dish and made meatballs a culinary category of their own.Here are three in Metro Phoenix that rated a visit from traveling gourmand Guy Fieri.

The Sicilian Butcher From The Maggiore Group – which opened its first restaurant, Tomaso’s Italian Restaurant, in Phoenix in 1977 – is this build-your-own meal experience that puts an emphasis on craft meatballs. Eggplant, lamb, crab and shrimp, and steak are only a few of the choices that diners can smother with any of 10 varied sauces, served on a bed of … well, of course there’s more than just pasta choices for this part of the entrée.

15530 N. Tatum Blvd., Phoenix (602) 775-5140 thesicilianbutcher.com

Tomaso's Sicilian Meatballs on Paccheri Pasta with Marinara Sauce

Meat the Ball From Stefano Fabbri of Pomo Restaurant Group’s Pomo Pizzeria, is recently opened Meat the Ball.

Notable dishes include The Flower, a vegan and gluten-free roasted cauliflower ball dish with spiced tomato and curry sauce over curried broccoli rice, and The Flanker, a short-rib ball plate with grass-fed beef braised overnight with gravy over creamy polenta, as well as Pomo’s signature Spaghetti & Meatballs, with grass-fed beef and pork balls and secret tomato sauce.

16211 N. Scottsdale Rd., Scottsdale (480) 687-9117 meattheball.com

Meatball flight

Huitlacoche are also called “Mexican truffles”; similarly revered in cooking and harvested as a delicacy, they grow as a fungus on corn.

INBUSINESSPHX.COM

Craft Meatballs

Photos courtesy of Agave del Scottsdale (top and far left), The Sicilian Butcher and Meat the Ball (bottom)

Tacos de Cochinita

WINTER 2019

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

Moved Beyond Measure

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

CONTENTS

p. 2 Building a Bright Future Together: The Nonprofit Sector & The Arizona We Want p. 3 Arizona Gives Day 2020 – Invest In Arizona p. 4 2020 Arizona Legislative Outlook p. 5 Three Questions with a Board Member p. 6 Building Better Nonprofits Builds Healthier Communities p. 8 Nonprofits: Just Like For-Profit Businesses and Completely Different

The air moving in and out of our lungs is something that, while we cannot see it, moves us — it provides us with critical, life-giving breath that allows us to live and do all the things we love most in life. It even gives us the strength and endurance to confront and overcome life’s most difficult moments. This unseen yet powerful force is always present, yet not often considered until we stop for a moment and allow ourselves to focus on it.

Just like our breath, the work and impact of charitable nonprofits is interwoven into every aspect of our lives, from birth, through life, and even in death. All of us benefit from nonprofits’ work more than we may ever know. The challenge is, nonprofit work is just like our breath: We may take it for granted because we don’t see it, and, therefore, we don’t value it accordingly. We often value only the Kristen Merrifield, CAE, CNAP things that we can measure — those very tangible things that we can see and touch in our currently reality.

You don’t think you’ll lose your job and your home, so you don’t focus on the nonprofits that provide employment services or that build low-income housing or that run food banks. You don’t think you’ll end up with a disability, so you don’t think about the nonprofits that work tirelessly to make sure buildings are accessible. You don’t think your kids will ever get bullied, so you don’t consider the nonprofits working to end bullying in schools.

It is in those moments that we realize the most important things in life cannot be measured. And, just like we can’t count the number of breaths we have left in life, we can’t measure the value of nonprofits until we move beyond the data and the numbers. It is then we have the opportunity to be moved beyond measure.

What would happen tomorrow if you woke up and nonprofits were all gone?

Nonprofits are the fifth-largest non-government employer in the state of Arizona — responsible for 167,000 direct jobs, and 325,000 indirectly when you consider the impact on vendors and suppliers, which could include many of you who own your own businesses.

Nonprofits generate $10.4 billion of Arizona’s Gross State Product — which balloons to $12 billion when you consider the ripple effect when we pay our employees who spend their wages in the economy. Without the contribution of nonprofits, all of these dollars and jobs would be gone.

What would that impact be to you, your family, your friends, your neighbors?

If you appreciate all the free art and music all around you, it’s probably because there nonprofits supporting amazing artists and musicians in the CONTINUED ON PAGE 3

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ALLIANCE OF ARIZONA NONPROFITS

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community. If you own your own business, you may be hiring people who have been helped by nonprofits who provide job readiness skills and employment services. If you or anyone you love has a serious illness, there’s probably a nonprofit working hard to find the cure.

All of the nonprofits gone, overnight? That of course won’t happen. But … what happens when just one person who needs our help doesn’t get served? What if that one person is you, your spouse, your child, your friend? What would the impact be to you?

How do you even begin to measure that impact? It can’t be

measured. At that point, all the numbers don’t matter. We are moved beyond measure to get the resources we need for ourselves and our person. Here’s the thing — nonprofits view every person as you view your person.

We all have the opportunity to be moved beyond measure.

We are empowered to ensure that nonprofits will always be there when we need them the most, and that, just as our breath, we choose not to take them for granted. And we, as nonprofits, choose to not take all of you for granted, either. What you may not realize is that YOU are the breath to nonprofits, enabling them to give this support to our communities that we all need.

Building a Bright Future Together: The Nonprofit Sector & The Arizona We Want

by Sybil Francis, Ph.D., President and CEO, Center for the Future of Arizona The nonprofit sector plays a critical role in advancing the issues that matter most to Arizonans and helping us realize The Arizona We Want.

At the Center for the Future of Arizona (CFA), we are committed to bringing Arizonans together to build a bright future for our state. This commitment is embodied in The Arizona We Want, a shared vision of success around what matters most to Arizonans and that expresses their highest aspirations for the future. This vision has been developed through a 10-year journey of polling, dialogue, listening and expressing what Arizonans say matters most to them.

But this journey has prompted an interesting question: If we know what Arizonans want, how do we know what progress we are making? CFA has launched a robust set of tools — the Arizona Progress Meters — that help us measure and report on how we are doing in the eight priority areas identified by Arizonans of critical importance to the future of our state: jobs, education, young talent, health and well-being, natural resources, infrastructure, civic participation, and connected communities.

The Arizona Progress Meters are designed to be easily understood, supported by regularly updated publicly available and trusted data, and useful as a guidepost for assessing policy and practice. CFA is working across the state to introduce the progress meters as tools to frame conversations, support longterm planning efforts, provide measurable benchmarks and support data-driven decision making statewide, regionally and locally. All in service of The Arizona We Want.

Arizona’s nonprofit sector will continue to play a critical role

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in moving the needle on the issues critical to Arizona’s success.

Research from the Alliance of Arizona Nonprofits has shown us that “Arizona nonprofits contribute 7.9 percent of Arizona’s GSP and are responsible for 12.1 percent of its jobs, 11 percent of its wages and 9.5 percent of its taxes.” Moreover, we know the power of the social return on investment of the nonprofit sector has yet to be fully captured.

This echoes what we are learning nationally, where research has found that states with stronger nonprofit sectors have seen greater economic resilience. In fact, one study found that for individuals who held jobs in 2008, “the odds of becoming unemployed were cut in half if they lived in a community with many nonprofits rather than in one with a few.”

The nonprofit sector plays an essential role as part of our civic and community fabric. At CFA, we believe that we need strong civic health and problem-solving capacity statewide to achieve success on the issues that matter most to Arizonans. We know that our communities are home, how we connect to others, and are at the center of collective decision-making. And we know that nonprofits are often at the center of our communities.

One thing has become very clear to us through our work: We all want to be listened to. We are hungry for data to help make informed decisions. And we want to come together to solve problems. Nonprofits across the state of Arizona will be critical partners in that journey.

Sources: www.azfoundation.org/Portals/0/Uploads/Documents/ Publications/az_noprofit_impact_2018_final.pdf;www.ncoc.org/wpcontent/uploads/2011/09/2012IssueBrief_CivicHealth_UnemploymentII. pdf

WWW.ARIZONANONPROFITS.ORG

Arizona Gives Day 2020 – Invest In Arizona

by Jennifer Purcell, Director of Community Engagement April 7, 2020, will mark the eighth year of Arizonans investing and rallying behind the nonprofit community for Arizona Gives Day, a day of statewide online giving that has raised more than $17 million for Arizona nonprofits. Any qualified Arizona nonprofit can register to participate, and any person can find their cause to donate to at AZGives.org — 365 days a year.

Each year, nonprofits compete for additional prize money based on “most dollars” or “most donations” raised in various categories and can even structure their fundraising efforts around “power hours” to receive the most donations above a set dollar amount within a 60-minute period. Participating nonprofits can win hourly random drawing prizes for donations of $25 or more, too.

This is where every Arizonan and the power of collective giving comes into play. Any donation made, no matter what the amount, is truly an investment being made in our communities.

At the end of the day, these investments will total millions for the nonprofit sector to make our state a better place to live, work and play. We encourage every Arizonan to find their cause at AZGives.org. (For donors’ convenience, pre-scheduled donations can also be made beginning in March.)

2019 Results: Total Raised: $3.6M (May18-Apr19) Average raised per nonprofit: $5,578 Average donation size: $163 Total Donors: 22,228 Total Nonprofits: 723 Why Arizona Gives?

The program was created by the Alliance of Arizona Nonprofits and Arizona Grantmakers Forum to create awareness, connect the public and businesses, and increase financial support for these important, and often critical,

organizations. FirstBank has been the presenting sponsor and significant partner to the program since inception.

It is important to remember nonprofits are more than “charity.” Collectively, Arizona’s nonprofits are a powerful, economic engine* that: • employ more than 171,000 workers (5th largest nongovernment employer in the state, above manufacturing, finance and insurance, and construction industries); • generate more than $23.5 billion in revenues annually, on par with what is generated by the construction sector in the state (nearly 8 percent of the state’s Gross State Product); and • generate more than 9 percent of Arizona’s state and local tax revenue. *Source: Arizona Nonprofits: Beyond The Bottom Line Report 2016 (www.aznonprofitvalue.org)

We need all Arizonans and businesses operating in Arizona to understand that their philanthropic donations make our economy stronger. Below are some ways that your business and employees can get involved, build a spirit of philanthropy in our state, and ensure a successful future for Arizona’s community by getting involved in Arizona Gives Day on April 7, 2020!

How your business can get involved: • Sponsor Arizona Gives • Provide In-Kind Donation of Advertising • Contribute to the Incentive Prize Pool • Provide a Matching Gift • Create a Fundraising Page for one nonprofit • Create an Employee Giving Page for your entire staff • Send communication to employees and customers about Arizona Gives Find out more at www.azgives.org/businesses.

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ALLIANCE OF ARIZONA NONPROFITS

2020 Arizona Legislative Outlook

by Brandy Petrone, Senior Associate, Goodman Schwartz Public Affairs While our collective focus turns toward the holidays and the new year, the nonprofit sector also needs to be thinking about the upcoming state legislative session. State lawmakers will be back on the job on January 13th with many issues to tackle, including education, healthcare and transportation.

So, what should the nonprofit sector’s New Year’s resolutions be, heading into the next legislative session?

First, the nonprofit sector should resolve to continue to educate our lawmakers about the impacts state and federal tax law changes are having on giving behavior.

Are you keeping track of what you are hearing from your donors? Nonprofits need to listen to their donors about why they may be giving less or not at all this year, if this happens. The Alliance needs to hear what you are hearing so it can share that with lawmakers.

And with that, resolve to continue to educate your donors about the tax law changes. The nonprofit sector needs to continue to educate its donors about the

4

fact that Arizonans can still see a benefit from their charitable giving on their state taxes even after the state tax law changes increased the Arizona standard deduction.

With the hard work of the Alliance and its partners, the Arizona Legislature and Governor allowed for charitable deductions to be taken, even if the Arizona income taxpayer takes a standard deduction for their filings.

Make this message a part of your holiday donation information and throughout the year — there is still a tax benefit to giving for Arizona taxpayers that they should ask about.

Second, resolve to get involved in the process. The Alliance will be supporting funding for the state’s 2-1-1 system, a statewide system that connects Arizonans to needed services. Today, this system has no live person to answer calls of people in need, and that needs to change.

The Alliance also anticipates seeing legislation to provide a scholarship for individuals who complete an approved term of a national service program such

as AmeriCorps. An additional scholarship incentive could help bring additional interest in the AmeriCorps VISTA program, whose members build capacity in nonprofit organizations and public agencies to help them more effectively generate the commitment of private sector resources, encourage volunteer service at the local level, and empower individuals and communities.

Lastly, resolve to advocate. Our state legislators and Governor should hear from you about the positive and negative impacts potential legislation could have on the nonprofit sector, or on your sector of the nonprofit world that you serve. If you do not tell them about the impacts, who will?

So, as you look toward next year, remember to include in your resolutions a plan to educate and advocate — be involved in the state legislative process with the Alliance. Let’s continue to make the nonprofit sector’s voice heard at the state capitol.

WWW.ARIZONANONPROFITS.ORG

Three Questions with a Board Member

Meesha Davis Company: Arizona Foundation for Women Job Title: CEO

What drew you to the Alliance of Arizona Nonprofits board?

First, our foundation is an Alliance member, and I immediately volunteered to serve on the public policy committee. I am impressed with the work the committee does for nonprofits in our state and keeping everyone informed about what is happening on a local, state and federal level and how it impacts our missions. Second, I am impressed with Kristen Merrifield and hearing her speak at a few Alliance conferences. Lastly, I was simply asked to join the board by another Alliance Board member. It’s just like fundraising; most people ask why they made a donation and they say it was “because someone asked them to give.” I was already impressed with and a part of the Alliance, so it was easy to say yes.

What would you say to someone considering joining a nonprofit board?

Specifically for nonprofit leaders, I want them to know that being an Alliance member comes with intangible benefits.

You may not be able to actually see the work of the Alliance but you will feel it. For example, nonprofits that qualify for the Arizona Charitable Tax Credit feel the positive impact of increased donor participation and giving. Nonprofits would feel the not-so-pretty impact to their nonprofit work if there was no Alliance. The Alliance is a collective force that advocates on behalf of all Arizona nonprofits no matter their size. The board and committee are made up of volunteers who are working at everyone’s best interest.

List your three favorite books: • Memoirs of a Geisha • A Thousand Splendid Suns • Charlotte’s Web (Crazy, I know, but true. I made my mother read it to me every night.)

Kate Maguire Jensen Company: Ronald McDonald House Charities of Southern Arizona Job Title: President & CEO

What drew you to the Alliance of Arizona Nonprofits board?

I’m inspired by the work the Alliance is doing — raising the visibility and highlighting the important work of every kind of nonprofit organization in Arizona.

What would you say to someone considering joining a nonprofit board?

Serving on a nonprofit board provides all kinds of benefits. It can expand your world view, your personal and professional network, and allows you to use your talents for the greater good.

List your three favorite books: • Tatoos on the Heart by Gregory Boyle • How to Cook a Wolf by M.F.K. Fisher • West with the Night by Beryl Markham.

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ALLIANCE OF ARIZONA NONPROFITS

Building Better Nonprofits Builds Healthier Communities

by David Martinez III, Director, Capacity Building & Community Engagement, Vitalyst Health Foundation No business is an island. Businesses are successful as a community — at least in part as a result of partners and suppliers with whom they work. The nonprofit sector is the same way.

There are more than 22,000 registered nonprofits in Arizona. While they are the fifth largest non-governmental employer in the state, fewer than 3,000 nonprofits employ people full- or part-time. The nonprofit community must be successful together, and the opportunity to make the most of passionate volunteers and paid employees in the service of improving the well-being of Arizonans statewide is enormous.

That’s why building the capacity of community-based leaders, organizations and coalitions is a key goal for Vitalyst Health Foundation (vitalysthealth.org).

Our portfolio of resources take form as Technical Assistance Partnership, or TAP Tools (vitalysthealth.org/TAP-Discovery).

This suite of options is now available to any Arizona-based organizations working to improve health and well-being.

Tools that Enable Mission Focus Vitalyst partners with organizations of

6

all kinds — from small startups providing key services to multi-million-dollar operations holding federal contracts.

Regardless, they may find themselves in need of crucial support. “Back office” functions such as accounting, grant application assistance, cashflow management and more are key features of our fiscal sponsorship platform (tapaz.org).

Tools that Tap into Nonprofit and Community Expertise Like any company does, nonprofits benefit greatly from organizational consulting — known in the nonprofit sector as technical assistance.

Vitalyst invests directly in convening, development and growth of a diverse, multi-faceted group of consultants who provide assistance ranging from a short strategic facilitation to a monthslong engagement that transforms organizational impact.

Tools that Bring Partners Together Just like in the business world, nonprofit leadership can be lonely at the top. That’s why Vitalyst hosts — and

partners with organizations to host — frequent free workshops for nonprofit leaders and managers. These gatherings directly address challenges, provide practical steps and spark valuable sharing and networking.

All of Vitalyst’s investments recognize nonprofits as a crucial catalyst in improving the health of all Arizonans.

Where nonprofit leaders are often strapped for time and funds for organizational capacity, Vitalyst offers solutions. And we continually adapt over time, based on direct community feedback.

Healthy communities need healthy nonprofits. The work to ensure everyone has the opportunity for health — physical, mental, economic, and social — simply cannot be done by one entity.

Vitalyst stands ready to help build capacity, and the first step to accessing these solutions is an easy one. Visit www.

VitalystHealth.org/TAP-Discovery.

Complete the TAP Discovery form, and in short order we will get back to you on how Vitalyst can help.

WWW.ARIZONANONPROFITS.ORG

ALLIANCE OF ARIZONA NONPROFITS BOARD OF DIRECTORS

BOARD CHAIR: Kelly McCullough R Kids/R Entertainment

Mario Aniles Housing Authority of Maricopa County

Mesha Davis Arizona Foundation for Women

SECRETARY: Yvonne Moss Caritas Law Group, P.C.

Karl Gentles Back to School Clothing Drive

Kate Jensen Ronald McDonald House Charities of Southern Arizona

VICE CHAIRS: Sonia Perillo Mayo Clinic Glenn Wike Arizona Community Foundation TREASURER: Ron Stearns CliftonLarsonAllen

Len Gutman American Heart Association/American Stroke Association Donnette Hermes Ameliorate, LLC Penny Allee Taylor Valley of the Sun United Way

Deborah Turcott PetSmart Charities EX-OFFICIO: Kristen Merrifield, CAE, CNAP Alliance of Arizona Nonprofits

Mentoring Month.

Today, and every day, we thank our New Pathways for Youth

mentors for their

the adversity of other youth. They are

yet, become one! New Pathways has 100 mentor right now.

To learn more go to npfy.org or call 602-258-1012.

Transform a LIFE. Be a MENTOR. 7

ALLIANCE OF ARIZONA NONPROFITS

Nonprofits: Just Like For-Profit Businesses and Completely Different

by David Thompson, Vice President, National Council of Nonprofits Many a budding film writer will pitch a movie idea to a producer by saying it’s just like such-and-such blockbuster and completely different. That’s basic marketing to appeal to the familiar (and profitable) and the different (perhaps new and improved). The distinctions between for-profit businesses and charitable nonprofits can be described similarly, but for substantive and constitutional reasons. And the similarities/differences matter most in the area of government policymaking.

Starting with the obvious similarities: For-profit and nonprofit entities contribute mightily to the economy of Arizona and the nation. Nonprofits generated $23.5 billion in economic activity — nearly eight percent of GSP in 2016. This, according to data collected by the Alliance of Arizona Nonprofits (https://cdn.ymaws.com/ arizonanonprofits.site-ym.com/ resource/resmgr/files/az_noprofit_ impact_2018_fina.pdf). The nonprofit sector directly employs nearly 200,000 employees, making it the fifth-largest non-governmental employer in Arizona.

Nonprofits also generated approximately $2.3 billion in state and local taxes, which equals 9.1 percent of all state and local tax revenues in Arizona in 2016.

That last point may seem surprising, since by definition, nonprofits are exempt from most federal and state taxes. But they’re not exempt from all taxes, and nonprofits engage on tax debates because of the impact on their operations and the people they serve. For instance, nonprofits share the view that pro-business tax policies can promote investment and profits in businesses and help advance nonprofit missions. Arizona’s new 25-percent nonitemizer deduction is a perfect example of how tax policy can reduce tax burdens

8

while encouraging giving to important charitable works in the state.

Government contracting is another prime example of similarities and differences. Governments at all levels hire businesses, for-profit and nonprofit alike, to perform services that are better provided by the private sector. Think roadbuilding, job-training programs and human services. No knock on bureaucrats intended, but people specializing in certain types of work and grounded in the community tend to be more efficient and effective. A difference, of course, is that roadbuilders are paid based on bids and are expected to make a profit. Nonprofits typically operate under grants with governments and are expected to break even, and sometimes are required to raise additional funds — either as matching funds or unspoken subsidies of government.

Finally, one would assume that employers of all stripes cast a wary eye on any proposals to increase worker protections or mandate benefits. That would be an overgeneralization, of course, but it’s particularly off base for nonprofits. A notable recent example is the U.S. Labor Department’s new Overtime Final Rule that will raise the minimum salary that white-collar employees must be paid to remain exempt for overtime. During the rulemaking process, many smallbusiness representatives pushed for a carve-out for employers under a certain size or a different set of labor standards. Except in a very few instances, charitable organizations urged the Labor Department to treat us like every other employer. The reason is, nonprofits don’t want to become employers of last resort; we don’t want our employees to be looked at as second-class citizens.

ALLIANCE OF ARIZONA NONPROFITS STAFF

Kristen Merrifield CAE, CNAP, Chief Executive Officer KristenM@arizonanonprofits.org

Michael Barry Director of Capacity Building michaelb@arizonanonprofits.org Jennifer Blair Director of Membership JenniferB@arizonanonprofits.org Jennifer Purcell Director of Community Engagement JenniferP@arizonanonprofits.org Robin Hanson Program Manager – AmeriCorps VISTA RobinH@arizonanonprofits.org Tanya Burgess AmeriCorps VISTA Leader Tanyab@arizonanonprofits.org Catherine Hogan-Holmberg Member Services Coordinator Catherineh@arizonanonprofits.org Belen Konesky Member Services & Events Coordinator Belenk@arizonanonprofits.org Lexis Reid AmeriCorps VISTA lexisr@arizonanonprofits.org

Alliance of Arizona Nonprofits 360 E. Coronado Road, Suite 120 Phoenix, AZ 85004 Phone: (602) 279-2966 www.ArizonaNonprofits.org

Amelio, Bill, 22

Duffy, Kathleen, 26

Lytle, Hugh, 28

Petrone, Brandy, 52

Tollefson, Richard, 36

Barrett, Robyn, 10

Fox, Kevin, 38

Martinez, David, III, 54

Purcell, Jennifer, 51

Tyra, Michal, 36

Bednorz, Heather, 10

Francis, Sybil, Ph.D., 50

Maurer, Andy, 46

Quagliata, Shannon, 13

Wadsworth, Andre, 14

Breese, Brady, 10

Jensen, Kate Maguire, 53

McGruer, Dawn, 35

Reedy, Kim, 30

Weber, Bruce, 44

Butler, Tyler, 42

Kahan, Steven, 35

McLeod, Tammy, Ph.D., 9

Shill, Otto S., III, 40

Weiss, Alan, 35

Chance, Kelly, 11

Kline, Jeff, 12

Merrifield, Kristen, 49

Smith, Charlie, 44

Wood, Scott M., 32

Davis, Meesha, 53

Kom, Cat, 47

Naor-Weinstock, Meirav, 20

Smits, Peter, 36

Zeleznak, Ryan, 14

Diaz, Melissa, 14

Linhart, Gary, 17

Pak, Kimberly, 12

Tanner, Anthony, 16

Donahue, Ryan, 17

Llopis, Glenn, 58

Pedersen, Lindsay, 34

Thompson, David, 56

11Eleven Consulting, 42

Commerce Signals, 11

Jennings, Strouss & Salmon, PLC, 40

Ryan Companies, 18

Agave del Scottsdale, 48

DAVIS, 19

Jive, 6

Sicilian Butcher, The, 48

Alerus, 39

Desert Financial Credit Union, 23

JLL, 20

StaffConnect, 11

Alliance of Arizona Nonprofits, 49

Duffy Group, Inc., 26

Joint Chiropractic, The, 8

Studio SWEAT OnDemand, 47

APS, 45

ENGAGE Talent, 11

Lapels Dry Cleaning, 12

Taylor Morrison, 17

Aquila Investment Management, 16

Enterprise Bank & Trust, 8

Lovitt & TouchĂŠ, 17

Urban Cookies, 10

Arizona Commerce Authority, 7

Equality Health, 3, 28

Mailing.com, 12

Veyo, 20

Arizona Diamondbacks, 59

FastMed Urgent Care, 20

Meat the Ball, 48

ViaWest Group, 17

Arizona Foundation for Women, 53

Federation of International

Merchantile of Scottsdale, The, 12

Vital, 22

N7 Delivery, LLC, 14

Vitalyst Health Foundation, 54

National Council of Nonprofits, 56

Waste Management Phoenix

Employees, 22

Audi, 47

Fiesta Bowl, 42

Avnet, 22 Bank of America, 12 Benefit Commerce Group, 32 Blue Cross Blue Shield of Arizona, 12 BMO Harris Bank, 37 BOK Financial, 41 Brookdale Central Paradise Valley, 20 Catellus Development Corporation, 18 CBRE, 17, 18 Center for the Future of Arizona, 50 Cigna, 60

First Bank, 6

New Pathways for Youth, 55

Flinn Foundation, 9

Novus Innovation Corridor, 18

FSW Funding, 10

OneAZ Credit Union, 5, 30

Goodman Schwartz Public Affairs, 52 Graycor Construction, 18

Phoenix Philanthropy Group, The, 36 PRE Open House, 13

Heather Bednorz Design, 10 HonorHealth, 20

Open, 15 Weber Group, 44 Western States General Contracting, 17 World Photo Exhibit, 2

CHECK US OUT

Quarles & Brady LLP, 43 Queen Creek Olive Mill, 12

IMNA Solutions, 20

Rebel Rock Accounting, 14

Insperity, 11

Redirect Health, 21

Ironclad Brand Strategy, 34

Ronald McDonald House Charities of

/InBusinessPHX @InBusinessPHX www.inbusinessphx.com

Southern Arizona, 53

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

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

57

DEC 2019

INBUSINESSPHX.COM

A CANDID FORUM

BY

A Corporation’s Biggest Threat Is Its Leaders Celebrating employee variances is key in today’s world

by Glenn Llopis

Most organizations and leaders say they want to empower people to contribute at their fullest capacity. But most leaders are never taught how to do that.

Those who started their corporate careers 20 years ago or more were given a formula for success by their bosses: Do these 10 actions to drive these 20 outcome; multiply those actions and outcomes across a department, and then across an enterprise.

Those outcomes gave the organization success. Silos were acceptable and even welcomed as a key part of the organizational structure because it made it easier and efficient to predict and focus on those actions that would drive those outcomes.

That’s how most leaders were raised in the corporate world.

And that’s how most leaders try to lead today.

But that level of standardization works only when those standardized actions can produce predictable results. If A + B = C every time, then sure — put A’s over here and B’s over there, combine them with some regularity to produce as many C’s as possible, as efficiently as possible. But nothing today is that predictable anymore.

This is a world with mass variance in people. But most leaders formed their identities as leaders in the previous age — the age of actions, outcomes and boxes; the age of standardization.

As a result, leaders are stifling employees, putting them in boxes, controlling their contributions by enforcing standards no one believes in but everyone is accountable to.

Glenn Llopis is a Cuban American entrepreneur, best-selling author, speaker and senior advisor to fortune 500 companies and organizations in healthcare, financial, consumer packaged goods and beyond. ageofpersonalization. com/book

DEC 2019

58

INBUSINESSPHX.COM

Value What People ‘Solve For’ over Title and Department If someone from Engineering has an idea for Marketing, what would happen? Would that person be ignored for having a lack of expertise? Resented for having the nerve to step into someone else’s lane? Snickered at for having the naiveté to think an “outsider’s” opinion should matter? Or welcomed for having creativity and the boldness to act on it?

Beyond experience and credentials, all individuals have certain things they solve for.

Solve for is an unusual phrase and certainly not anything the metrics and KPIs from the age of standardization were ever designed to measure or value. It’s deeper than a job title or description. It’s a combination of interests, capabilities, personal values, skills and experiences. It’s what someone

enjoys and consistently thinks about in a big way.

That person from Engineering might solve for making complex topics clear and understandable. If the Marketing team resents the intrusion from an outsider, they might miss out on valuable input that would make the marketing materials compelling.

Leading in this way requires a new skill: constructive interruption. Interrupt standardized ways of thinking and acting in order to escape the traps.

Here are a few standards to interrupt: • Prioritizing company mission — Every organization has a mission, a vision or value statement, and employees will buy into it on the surface because there is no freedom not to. What is most meaningful to people is to know they have a chance to contribute their unique skills and strengths — no matter the mission.

Start prioritizing individual contribution.

• Prioritizing brand identity — This one goes back to Henry Ford, who not only standardized work, but also standardized workers. There was no individuality on the assembly line, and no identities but the Ford brand. The goal was efficiency, and efficiency required a certain level of standardized thinking and standardized action. And that means brand comes first. It also means brand comes at the expense of the individual.

Start prioritizing individual identities.

• Prioritizing results — A sales leader said she wanted to shake things up, so she ditched the mandatory 9-to-6 workday and relaxed the dress code. But she said the biggest impact came when they stopped measuring their days by how many sales they closed but, instead, by how many great conversations they had. Her team had a 25-percent increase in revenues the following quarter. All because she took the first step to measure the methods, not reinforce the old results-based approach.

Start prioritizing methods.

Offices are filled with frustrated and exhausted employees, expected to comply with norms that are no longer relevant in today’s reality. People are more informed and diverse than ever. Employees and consumers are proud of their individuality and seek influence, a sense of contribution and purpose like never before.

Let them contribute.

This is a world with mass variance in people. But most leaders formed their identities as leaders in the previous age the age of actions, outcomes and boxes; the age of standardization

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