16 minute read
Legal
Hani Sayed is a partner and is chair of the Intellectual Property and Automotive Practice at Rutan & Tucker, LLP. His experience is technology extensive and covers products, processes and designs in mechanical, healthcare, information technology, material sciences, medical devices, computer networking, memory devices, electronics, gaming, apparel, nutritional supplements and biotechnology along with entertainment, sports and media. rutan.com/locations/ scottsdale
Legal Challenges in These Arizona Boom Times
Protect intangible assets and more
by Hani Sayed
Over the last 40 years, Arizona has grown rapidly and has become increasingly attractive for businesses and individuals. While this growth has been steady and predictable given a variety of factors such as weather, economics and affordable housing, the arrival of COVID accelerated such growth. In turn, Arizona has revealed itself as a thriving high-tech hub with a proficient talent base, and world-class higher learning institutions. Arizona is today a vibrant market largely made of privately held, middle-market companies.
So what are the legal issues that are now most relevant to growing businesses in the Arizona business community?
CORPORATE STRUCTURE CONSIDERATIONS
The pandemic pushed many traditional brick-and-mortar businesses to pivot to an e-commerce platform, resulting in greater exposure and exponential growth. With that growth, corporate ownership, management and operations change (e.g., bringing on additional stakeholders or raising rounds of funding). Even without extraneous events, it’s not uncommon for companies to simply outgrow their initial corporate structure.
One of the many problems is operating a business under the wrong entity type (e.g., operating as an LLC when a better structure may be a S Corporation). This can create potential legal problems and might restrict further growth of the company. The type of entity through which a business operates determines factors such as liability and taxation of both the stakeholders and the business.
Businesses often discover that the originally formed entity at startup is no longer the appropriate type for the business as it operates today. An experienced corporate lawyer can evaluate a business’s corporate structure “fit” and assist in any necessary adjustment.
PRIVACY AND DATA SECURITY
Data privacy is one of the biggest concerns facing businesses today. Many companies are not aware of the limitations and regulations surrounding the routine data they collect by simply conducting routine business. While major data hacks occasionally make the evening news, smaller everyday events such as onboarding a new employee or clicking a link in a seemingly benign email implicate data security issues.
The rapidly evolving landscape of regulations governing companies’ handling of consumer data has put obligations on companies to protect that data and regulates how they can use such data. Most laws require that permission be obtained from the customers to gather their data and provide options to the customer regarding the permissive uses of their data.
The bulk of privacy laws are state-enacted and apply to businesses conducting operations in that state — even if the business itself is not located in that state (e.g., an Arizona company selling a product into Utah or providing a service online to a customer in Virginia). While comprehensive federal legislation is still pending, there are existing federal laws that implicate data privacy in specific industries or in regard to specific types of data.
The importance of consulting a data privacy expert cannot be understated, particularly in today’s online business environment.
EMPLOYMENT MATTERS
We all see the “HELP WANTED” signs everywhere we look. Employees are in demand and there is a more mobile workforce. With this, unfortunately, comes an increase in employment-related disputes such as discrimination, harassment, overtime or other wage-related issues. A growing company must take a conscious step from operating under informal HR practices to adopting more formal employmentrelated policies and operations.
The employer-employee relationship is governed by both state and federal laws, which cover a wide variety of matters. Many of these laws have notice requirements, meaning that employers are required to notify their employees of their rights.
A good employment lawyer will assist a business in formalizing its employment practices to reduce the likelihood of an employment dispute and the business’s potential liability.
TECHNOLOGY, BRANDING AND PROPRIETARY INFORMATION
In today’s economy, intangible assets provide the largest competitive advantage. This includes, for example, technology, processes, proprietary information or branding that is unique to one’s company. This is the area the businesses often spend the most resources developing. But just having that competitive advantage is not enough. Protecting that advantage is imperative; otherwise, someone else is more than happy to just copy another business’s success!
This type of intangible asset is typically protected as “intellectual property,” and includes patents, which protect inventions (most things considered to be “new” products or “technology”); trademarks, which protect branding and brand identity; copyrights, which protect creative works; and trade secrets, which protect proprietary information that is beneficial to the company by the nature of it being known only to the company (such as customer lists and internal processes). An IP attorney can evaluate a business as a whole and determine not only what IP it has but what IP it could obtain, to both protect what a business has while increasing its competitive advantage.
Equality Health Foundation Focuses on Forging Connections
Its purpose-driven mission aims to reduce health disparities
by Tyler Butler
Convene, collaborate and build. These are the three principles that guide Equality Health Foundation’s social impact work. The organization’s bold goal to advance access to health and well-being in diverse and under-resourced communities has elevated its ability to influence positive change. And with the lens of its diverse board, Equality Health Foundation is eliminating health disparities, expanding access to care, accelerating health education and building a network of partners, supporting overall healthier and more vibrant communities throughout Arizona.
As the dueling pandemics of 2020 hit, the Foundation recognized it was at a crossroad. The community’s needs had shifted overnight and, with this, the foundation’s focus. The need was clear: Efforts had to focus on closing disparity gaps and opening doors to good health. So, the Foundation pivoted efforts to center on COVID-19 and inequalities in access to testing and vaccines, as well as on the societal unease and awareness of social justice, racism and inequalities in the state.
Through an unparalleled community partnership strategy, Equality Health Foundation mobilized resources to meet the physical, mental and socioeconomic needs of individuals and families where they were in life while concurrently designing long-term solutions to address root cause issues. Hugh Lytle, founder and board member of Equality Health Foundation, shares, “Thanks to the Foundation, we have even more opportunities to support collaborations, innovations and programs. I believe that, together, we can effect lasting change that will ensure equal health for all.”
One such partnership brought Equality Health Foundation to collaborate with Chicanos Por La Causa and the R.A.P.I.D Community-Based COVID-19 Testing Coalition. The Foundation convened more than 100 diverse public- and private-sector partners with the mission to align resources and meet COVID-19 head-on in communities with the greatest need and least access to resources. Yet another collaboration partnered Equality Health Foundation and the HeroZona Foundation with the One Community Initiative to launch comprehensive COVID-19 testing and vaccination operations targeting the hardest hit neighborhoods and communities.
The Foundation’s RADx-UP Grants have highlighted the crucial role and work of community health workers (CHW) as essential to addressing disparities in care, delivery and health outcomes in vulnerable populations. Through a partnership with Arizona State University, the Foundation designed a culturally competent, CHW-led COVID-19 testing model: “Addressing Healthcare Barriers with a Community-University Led Response to COVID-19 in Arizona.” This partnership and innovative model led to securing four multi-year federal grants from the National Institutes of Health, bringing nearly $2.5 million in resources to Arizona.
These grants enabled expanded efforts, creating an opportunity to engage and contract with several CHW organizations. With support from the Arizona Community Health Workers Association in the counties of Maricopa, Yuma and Pima, as well as the San Carlos Apache Tribe, this program administered saliva-based testing and provided essential sociocultural support services. These partnerships helped maintain the CHW workforce and ensure public health during a pandemic when CHW organizations struggled to secure grants and donations to sustain their workforce.
“Equality Health Foundation is creating meaningful and lasting change by improving health and the quality of life in communities, and we’re excited to explore innovations that create a better today and tomorrow for all residents. Higher well-being and health are key to help the entire city of Phoenix rise from the pandemic stronger and better than before,” says Kate Gallego, mayor of Phoenix.
The most impressive recent accomplishment for Equality Health Foundation is perhaps its Blue Zones Activate initiative. This work focuses on the single largest determinant of health: the place where we live. This comprehensive place-based approach has the potential to boost well-being of the entire region and reduce health disparities that impact quality and longevity of life and community resilience for current and future generations.
As Tomás León, president of Equality Health Foundation, has said, “Growing evidence is showing that our zip code is a bigger predictor of our health, well-being and longevity than our genetic code. Equality Health Foundation supports a focus on improving the whole health and resiliency of diverse populations.” With Equality Health Foundation joining forces with Greater South Phoenix residents, community stakeholders and policy makers, in partnership with Blue Zones, the region will achieve its highest potential in being a healthy place to live, work, learn, play, pray and thrive.
Through a purpose-driven mission centered on reducing health disparities, expanding access to care and accelerating health education, the Foundation is committed to advancing health equity for all individuals. The impact of Equality Health Foundation’s initiatives continues to create a positive, hopeful, lasting, ripple effect within the community. And will continue to do so for many generations to come thanks to their connected model of cooperation and partnership.
Equality Health Foundation equalityhealthfoundation.org
EQUALITY HEALTH FOUNDATION STANDOUT STATS
• Healthy Fall Festival events provided nearly 20,000 children, seniors and families with access to health-enabling resources to help reach their highest potential for health. • The comprehensive COVID-19 testing and vaccination operation, focused on the hardest hit neighborhoods, helping nearly 90,000 residents become more fully protected from the virus. • During the COVID-19 program, Equality Health Foundation contracted with 51 woman- and minority-owned businesses struggling to survive, among them All About Food, Arvizu Advertising and Promotions, Bencomo Rentals, El Portal Restaurant, Helping Families in Need. These entrepreneurs not only stayed in business but helped meet a vital need in the community. • The Blue Zones Activate Greater South Phoenix initiative has enabled more than 240,000 residents to experience greater wellbeing, optimal health and improved longevity.
Tyler Butler is a chief social impact officer for a publicly traded corporate portfolio where she leads programs that positively impact humanity. She is also the founder of 11Eleven Consulting and she is often cited as a subject matter expert by Forbes, SHRM, Entrepreneur, U.S. News & World Report and more. linkedin.com/in/tylerbutler
Bruce Weber is founder and president/CEO at Weber Group. Weber brings more than 20 years of experience to the for-profit 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. webergroupaz.com
Allow teams to have opportunity and autonomy
by Bruce Weber
In my previous article (“Leading from Abundance – The Power of Positivity,” In Business Magazine, September 2022), the topic was the notion of the power of positive leadership and its impact on the success of the organization. Leadership positivity and leading from abundance is only one aspect of how a leader can grow the organization with the intent of driving impact in meaningful, opportunistic ways. Creating positive leadership among all employees is a terrific goal, but how does that occur? How do positive leadership principles permeate throughout the organization? Let’s begin.
Building leadership is the key ingredient to helping build one’s team and impact one’s productivity. Often, the organizational structure can impose the philosophy on the direction of the team, suffocating any opportunity for creativity and positivity to flourish. Allowing teams the opportunity and autonomy is the first step. People in general feel suffocated when they have little latitude to do the things they feel are necessary to work toward the goal. Eliminating that obstacle will enable groups to understand more clearly what is needed and allow them to dream of possible outcomes in new and exciting ways. Leaders should encourage teams within to engage in those discussions without intimidation or hesitance to speak up and, for the moment, worry less about process and budget. Passing the power to the teams allows them the opportunity to do just that. Team empowerment is the key to positive engagement.
Next is to solicit and care about the input from the team. Often, we facilitate brainstorm sessions to “engage” everyone in the process. While at first glance intentions are good, we often walk away and do something entirely different and don’t incorporate the thoughts of the participants. That alone breeds a negativity toward the organization’s goals and direction and insults those who participated as being a complete time waster. It immediately robs everyone of a feeling of empowerment! Corey Wong is a Grammy-nominated American guitarist, bassist, songwriter and producer. His background spans genres jazz, rock and funk. When Cory performs with the band, it’s obvious early on that he is the leader of the group, while also empowering each bandmember to add the elements needed to produce a quality performance. Cory clearly confesses that the music is not about him but about the collective power each member brings to the sound. You can see by the smiles on the musicians faces and interaction with each other that they thoroughly enjoy their effort and appreciate the value that Cory’s empowerment brings to the group’s success and the trust that is created.
True empowerment creates a level of trust that instills confidence in the staff of any organization and allows the team to flourish. No one leads an organization to success on their own. It is the collective excellence of many that builds success. All of us lead based on the considerable work of everyone on the team who has labored, contributed and committed to the same commonly stated goals.
As Colin Powell has stated, “Trust from leader to led, and trust between everyone on the team. Empowerment invests in people, and there is no greater ROI in any profession!” Leaders can start now to engage and empower their teams, and begin building a positive future.
Lindsay Boyajian Hagan is the VP of marketing at Conductor, managing all demand generation and go-to-market activities. With more than 10 years of experience in the B2B software-asa-service (SaaS) space, Hagan’s strengths lie in scaling marketing teams and building cross-channel campaign strategies. She began her career by launching her own company, WeareverYouGo. conductor.com
A Successful International Marketing Strategy Can Make a World of Difference
Where to start: research
by Lindsay Boyajian Hagan
I get it: Expanding internationally can seem daunting. But it doesn’t have to be. In a world more connected than ever, technology and infrastructure make international growth incredibly accessible for organizations.
By having the right outlook and asking the right questions, expanding globally can accelerate next-level growth — helping companies extend their reach beyond an overly-saturated market, remain competitive on a global scale and substantially grow their revenue. New markets, while unfamiliar at first, can drive profitable opportunities for brands looking to build their client base and offer more products and services.
On the flip side, launching in a new market without preparing can be a colossal drain on resources — with little return to show for it. Nearly half the companies that attempt international expansion conduct no formal research before launching, making it no surprise that most of these expansion efforts fail. To avoid these blunders, it’s critical businesses research in advance to prepare for their foray.
In order to see international expansion success, these are the most critical elements marketers and their partners should focus on:
KNOW YOUR MARKET
To establish their marketing objectives when expanding, marketers should first ask themselves a few questions: How big is the market? How many and which products do we want to deploy in the new market? What is the perceived value of our product to service in this market? Is it economical, valuable, premium or ultra-premium? Who are our competitors? Do we want to be a market leader or a follower? Is our brand best-inclass or on par with local and international competitors? Are there any regulatory or economic factors to consider?
Teams should also consider using third-party data to determine their total addressable market (TAM). Segmenting the markets by demographics and specific locations can further assist in focusing their efforts more effectively.
When a company knows its position in the market, it is able to make better decisions about strategy and execution — which is critical in saving precious resources like time and money.
KNOW YOUR AUDIENCE
Regardless of where a business is expanding, it is imperative for marketers to know their audience and what their pain points are. Having a good grasp on audience sentiment and preferences makes it more likely that the content they create resonates with those they are aiming to reach — often producing stronger results.
From an international lens, depending on where the business is looking to expand, marketers need to consider nuances with language and local/cultural differences. Understanding the customer — and the potential contrasts to a marketer’s home customer — will allow marketers to best connect with their new audience, deliver stand-out customer experiences and motivate people to build a relationship with the brand.
KNOW YOUR GOALS
Oftentimes, brands dive headfirst into international markets without any clear, defined goals, leading to issues down the road. The goals that marketers have in their home market may be different in another country.
To give themselves the greatest chance, companies need to determine their definition of success and build objectives around that vision. Marketers should ask themselves: What are we trying to accomplish? What does a win look like to us? What are our revenue targets? How many customers do we need to acquire to achieve those targets? Where can our marketing efforts yield the greatest ROI? By defining these goals early and having clear markers of success, marketers can create longterm objectives and determine how best to track progress.
KNOW WHAT’S WORKING (AND WHAT’S NOT)
Like goals, the channels and strategies deployed in a home market may not translate in another country. It will likely be a series of trying new things, seeing if they worked and then adapting. By keeping a constant pulse on their company’s progress, they can determine what’s working and what’s not so they can be agile and avoid wasting valuable resources on a channel or content that’s not delivering.
THE BOTTOM LINE
The choice is often up to us. If we’re willing to put in the work, we see the rewards. International expansion can be incredibly beneficial — or costly and ineffective, if not prepared for properly. By doing the research ahead of time and understanding the market, audience and goals — and then being willing to adapt — marketers can have the whole world in their hands.
