OCT. 2021
Our Year-End Healthcare Decisions Guide for Open Enrollment
&
Mental Health the Workplace Are employers making health and well-being their priority?
Sales Review Is
Critical Due Diligence Hyperautomation This Month’s Guest Editor
Dr. Caroline Carney Chief Medical Officer at Magellan Health
Relies on People
Avoid Family Dynamics in Family-Run Business $7.95 INBUSINESSPHX.COM
THIS ISSUE Scottsdale Coalition of Today and Tomorrow (SCOTT)
Arizona: Where innovators turn for what’s next.
2020
TOP 10
GOLD SHOVEL
AWARD WINNER
MOST COMPETITIVE STATE
azcommerce.com
Site Selection Magazine Prosperity Cup, 2021
Bold and exciting advancements are 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, lean regulatory environment, and affordable operating costs provides an ideal platform for business growth and success. The state has announced investment from industry leaders including Intel, TSMC, Zoom Communications, ElectraMeccanica, Amazon, Align Technology and more. Ranked top two for fastest growing state, it’s clear why people are flocking here. Beyond being a place where you can achieve your professional goals, Arizona also provides an unmatched lifestyle that allows you to achieve your personal goals. It’s this perfect balance that makes life better here.
OCTOBER 2021 GUEST COLUMNISTS
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36 Ritoch Powell Associates Deomonstrates the Power of Partnership
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This month spotlighting the Ritoch Powell Associates, Tyler Butler’s series explores the myriad ways businesses give back and the positive ways their programs impact our community.
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41 Team Synergy: The Science behind HighPerforming Teams Jen Butler continues her series on stress’s impact on health and business.
42 Execute Wisely and Strategically Bruce Weber continues his series on Change: The Provider of Opportunity.
PARTNER SECTION
COVER STORY
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Mental Health & the Workplace: Are employers making health and well-being their priority?
As employers address well-being issues for their employees, mental health has become a growing concern. Valley professionals in healthcare, HR and employee benefits help us explore this issue. Plus: Three in-depth looks at stress actors and factors.
FEATURE
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The Secret for a Successful Family-Run Business
Being an entrepreneur is difficult enough on its own, but adding a family to the mix creates another layer of challenges. Liz Agboola discusses how to address the issues.
38
Hyperautomation Useless if Businesses Don’t Invest in Sold Foundation
Kevin Buckley examines the importance of – surprise! – people in our automated future.
DEPARTMENTS
47 Scottsdale Coalition of Today and Tomorrow (SCOTT)
SPECIAL SECTION
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INBUSINESSPHX.COM
Guest Editor
Dr. Caroline Carney, chief medical officer at Magellan Health, introduces the “Healthcare” issue.
10
Feedback
Angelina Flores, Jennifer Sellers and Stephanie Waldrop respond to In Business Magazine’s burning business question of the month.
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Healthcare Decisions – 2021 Guide
Startups
“Dovly Aims to Give Credit Repair a Good Name” and “ROXX Vodka – Refresh from Poland to Phoenix”
A Future-Forward Phoenix Debut of a series from Gensler Design on environments and workspaces.
By the Numbers
How well the CMO and CIO work together has a strong impact on MarTech outcomes.
Briefs
“Sports Betting’s Impact on Arizona’s Bottom Line,” “Dailies Top Stories,” “Local Standouts Recognized for Achievements and Philanthropy,” “Outsourced Document Shredding Helps Avoid Legal Issues and Theft” and “Demand Sparks Need for New Construction Management Division”
CRE
“Phoenix Apartment Construction Leads Nation,” “Construction Technology Lowers Concrete’s Carbon Footprint,” “Chamberlin + Associates Restoring Al Beadle Building for Its HQ,” “CapRock’s Infill Project Is Phoenix’s Largest Industrial Spec Development,” “Lincoln Property Co. SellsPark303 Phase I for Record-Breaking $186 Million,” “Developer Enters Phoenix Market with Glendale Industrial Project” and “Development Slated on One of Goodyear’s Last Large Industrial Parcels”
18
From the Top
Award-winning restaurateur Sam Fox evolves his hospitality empire.
20
Healthcare
“The Key to Normalcy Lies in COVID-19 Testing” and “Building an Ecosystem That Will Survive and Thrive”
22
Technology
“Tech Enables Car Theft Recovery” and “Boost Video Views for Business”
31
Books
New releases give fresh insights on business thinking.
32
En Negocios
Feature articles in Spanish and English on Finanzas / Finance
34
Economy
by Phil Wuollet discusses PPP loans, operating agreements and more to help business owners prepare for the next tax season.
35
Legal
Attorney Justin M. Brandt discusses the most important things a businessperson needs to know before starting a partnership.
43
Nonprofit
Businesses can help their communities prepare for a stronger future with the Arizona Endowment Building Institute.
44
Assets
2022 BMW X6 M Sports Activity Coupe Plus: Air purification answers healthcare issues.
45
Power Lunch
Ling’s Wok Shop: Different as Day and Night
66
Roundtable
Dr. Chris Croner explains how a high-impact sales team can represent significant revenue and valuation potential for a buyer.
Unicorn businesses are unique in the fact that they are independently owned, and have a business valuation of more than $1 billion. According to research by the business formation experts at ZenBusiness, the U.S. has the greatest number of unicorns (400; more than double second-place China’s 158). Largest one is San Francisco-based fintech company Stripe, valued at $95 billion. zenbusiness.com
Oct. 2021 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
Powerful insights from proven leaders
Jess Roman, Chief Executive Officer Arizona Small Business Association Central Office (602) 306-4000 www.asba.com Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org
Two free, online events this fall. The Economic Club of Phoenix (ECP) is a long-standing, Arizona-forged organization for local business leaders looking to tap into insights from the nation’s top business experts and executives. Our all-virtual format allows attendance and participation from wherever is convenient for you.
Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org Rosaria Cain, 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.
Wednesday, Nov. 10, 2021 Spirit of Enterprise Award Rebecca Clyde, CEO and co-founder, Botco.ai
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
To register, visit econclubphx.org or call 480-727-0596.
Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Equality Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com Phoenix Metro Chamber of Commerce phoenixmetrochamber.com Scottsdale Area Chamber of Commerce scottsdalechamber.com Surprise Regional Chamber of Commerce surpriseregionalchamber.com WESTMARC westmarc.org
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Oct. 2021
VOL. 12, NO. 10
Publisher Rick McCartney Editor RaeAnne Marsh
En Negocios Editor Edgar Rafael Olivo
Graphic Design Benjamin Little
CONTRIBUTING WRITERS
Simplified banking in a complex world. Explore BusinessSmart™ accounts.
Liz Agboola Alison Bailin
Danielle Baker Jan Bracamonte
Kevin Buckley Jen Butler Tyler Butler Joe Caradonna Patty Caradonna Dr. Chris Croner
Rob Gelb Don Henninger
Mike Hunter Kristen Mihaljevic
Ashley Pallathra Milan Patel
Dr. Kristen Ray Casey Strunk
Diana Vasquez Bruce Weber
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Justin M. Brandt Dr. Howard Brodkin
Phil Wuollet Dr. John Wynn
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More: Visit your one-stop resource for everything business at inbusinessphx.com. For a full monthly calendar of business-related events, please visit our website. Inform Us: Send press releases and your editorial ideas to editor@inbusinessphx.com
President & CEO Rick McCartney Editorial Director RaeAnne Marsh Financial Manager Tom Beyer Office Manager Allie Schimmel Accounting Manager Todd Juhl Corporate Office InMedia Company 45 W. Jefferson Street Phoenix, AZ 85003 T: (480) 588-9505 info@inmediacompany.com www.inmediacompany.com Vol. 12, No. 10 In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 45 W. Jefferson Street, Phoenix, AZ 85003. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 45 W. Jefferson Street, Phoenix, AZ 85003 or visit inbusinessphx.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@ inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. ©2021 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by any means without written permission by the publisher.
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DR. CAROLINE CARNEY, MAGELLAN HEALTH
Mindful Health
A board-certified internist and psychiatrist, Caroline Carney, M.D., is the chief medical officer at Magellan Health. She is a published author and co-author for more than 100 peer- and nonpeer-reviewed publications and frequently speaks about behavioral health, integrated and collaborative care and well-being. She earned her medical degree and masters’ degree from the University of Iowa, where she directed the Med-Psych residency program. Dr. Carney continues to practice clinical work with a behavioral health team at a federally qualified health center.
A topic that has traditionally been taboo, or at least stigmatized, has come to prominence over the past year: mental health. Maybe we can thank the pandemic for letting the topic become one that is openly discussed — although the pandemic is a big part of why. Even before the pandemic, the need for mental health and addiction services was on the rise. Look at the data regarding suicide rates, the increasing consumption of alcohol and the opioid epidemic, which clearly show that behavioral health concerns are paramount. Access to and availability of behavioral health services underpin the support of Americans. The industry has evolved rapidly, especially in the use of telehealth services to reach individuals who might not be able to attain care. At Magellan Health, we strongly promote the use of collaborative care, an evidence-based set of services designed to support providers, deliver mental healthcare and alleviate some of the pressure on the behavioral health system. Finally, through analytics, we can identify individuals at risk for suicide and addictions and usher them into behavioral healthcare. The pandemic exposed a hole in care delivery, but I am excited that our field is at the forefront in bringing needed change! While mental health impacts all aspects of our lives, the focus of In Business Magazine’s cover story is mental health as a workplace/workforce issue. Direct providers, insurance carriers and benefits experts discuss the increasing demand for mental health services as well as how and why employers are addressing this. Among the stressors business leaders deal with are taxes and partnership disagreements. As this month’s Economy feature, “Tax Tips in Prep for Next Season,” Phil Wuollet offers tips on the former; and Justin M. Brandt addresses the latter in the Legal feature “Put Your Plan on Paper – Avoid Partnership Disputes Later.” Stress itself has been the focus of Jen Butler’s series, which continues this month with Team Synergy: The Science behind High-Performing Teams.” Family is often the safe place to get away from the stresses of business. But what if the business is a family enterprise? In “What’s the Secret for a Successful Family-Run Business?,” Liz Agboola discusses approaches to relationships and responsibilities in a family business. A new series debuts this month on space — exploring architecture and interior design of the ever-evolving workplace. Articles on leadership, technology, commercial real estate and new business concepts are among the varied content that makes In Business Magazine a valued resource to help strengthen our business community. I’m pleased to help bring you this October edition, and believe you’ll find it a worthy read. Sincerely,
EN NEGOCIOS Manténgase informado sobre temas empresariales en español a través de En Negocios, artículos para los lectores de habla hispana en el área metropolitana de Phoenix. Visite inbusinessphx.com/ ennegocios para más información. Stay informed on business topics in Spanish through En Negocios, articles for Spanish-speaking readers in the Phoenix metropolitan area. Visit inbusinessphx.com/ ennegocios for more information.
Dr. Caroline Carney Chief Medical Officer Magellan Health
CONNECT WITH US: Story Ideas/PR: editor@ inbusinessphx.com
Well-Being as a Priority A few things over this past year and a half seem to have
cover story on mental health as an aspect
that had, prior to the pandemic, been almost foreign to us
of health in general can help to create
and employees and employers. Today, both employers and
awareness of this topic and help transform
employees are looking at things like remote work, Zoom
the workplace into a pro-active space for managing our
meetings and telehealth as the new normal. Mental health
mental health needs. As we come out of the pandemic,
and our mental well-being at work has also arrived and is
our new normal has new and added pressures, and, with
becoming a normal part of the discussion when it comes to
this honest discussion of mental health, we can address
benefits, human resources and management.
the changes and improve our productivity and work-life
We want to thank Dr. Carney for her leadership on this
Photo courtesy of
topic and in this issue. Our focus of this
taught many to look inward and to focus on certain things
DON’T MISS OUT!
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balance.
—Rick McCartney, Publisher
Let us know what you think of this issue of In Business Magazine. Email our publisher at feedback@inbusinessmag.com.
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SPEAKING OUT
As you prepare to offer healthcare benefits packages to your employees for 2022, what elements of coverage are you finding are most important?
FEEDBACK QUESTION: Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessphx.com
ANGELINA FLORES
JENNIFER SELLERS
STEPHANIE WALDROP
Chief Human Resources Officer Gila River Hotels & Casinos Sector: Hospitality
Senior Member The Cavanagh Law Firm Sector: Law
Principal Employee Benefits International Inc. Sector: Insurance
At Gila River Hotels & Casinos — Wild Horse Pass, Lone Butte, and Vee Quiva — the health and wellness of our nearly 3,000 employees are of utmost importance to us. We have always offered a robust benefits package, and in 2022, we’re focusing on medical and prescription drug plans that deliver quality, flexibility and value. On the medical side, we are making sure our team members have access to the largest provider network of physicians, hospitals and convenience care clinics. Our plans also offer reasonable annual deductibles and co-pays for primary care visits, specialist visits and preventive care. Technology is also an important aspect of our plans. Not only can team members navigate online for resources to help themselves and/or their family, but we also offer free telemedicine to all team members — even those who don’t participate in our medical plans. Finally, we unbundled our prescription drug plan from our medical plan in order to offer the lowest cost on prescription drugs for the generic, brand formulary, non-formulary and specialty drug.
Over the last several years, health insurance has become a huge enticement for keeping current employees and hiring new ones. During the pandemic, health insurance was a topic on everyone’s mind, and it became a huge priority for both employers and employees. Employees want their employers to offer a variety of healthcare plans. One healthcare plan does not fit the needs of all employees. Additionally, employees want to be able to select their desired providers. They may have one they’ve visited previously, or they may want to select a provider close to home or work. It is also important not to underestimate how valuable the open enrollment period is. It’s a time when employees can dig into the specifics of each plan and make an educated decision on the one that is best for them and their family. Employees who are educated about their plan options and how to save money feel empowered and make better healthcare decisions.
The COVID pandemic has fueled change in employees’ views and expectations for benefits offered through their employer. As employers consider the trends that are emerging, they must also consider the needs of an increasingly diverse workforce. Benefits that were once considered progressive and much less common are quickly finding their way to the mainstream. Many employees are seeking more flexible work arrangements, parental leave programs and more in their quest for an employment relationship. Providing employee’s more choices is quickly becoming an emerging trend. Having benefits administration technology that allows employees to engage and understand their benefit offerings while simplifying the administration of the benefits for the employer is a must in today’s environment. Employers should consider the needs of their workforce and provide a variety of choices tailored to the needs of the demographics. While older workers may want long-term disability, a younger workforce may be more interested in tuition reimbursement, for example. A benefits survey combined with a thorough review of benchmarking data is a great place to start when employers are trying to ensure they are offering the best possible employee benefits package for their budget.
Gila River Hotels & Casinos playatgila.com
For all past Feedbacks go online to inbusinessphx.com and see what Valley executives think on various business topics.
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Angelina Flores is entering her 18th year with Gila River Hotels & Casinos. As chief human resources officer, Flores leads the recruiting, training, retaining, guest service and benefits teams. As a member of Gila River Indian Community, she is fulfilled by sharing her purpose and passion.
The Cavanagh Law Firm cavanaghlaw.com
Jennifer Sellers is a senior member at The Cavanagh Law Firm. She specializes in employment and corporate law, both transactional and litigation, representing clients on a variety of employment matters that include contracts, covenants not to compete and restrictive covenants, severance agreements and employee issues. Sellers received a Master of Science in taxation prior to attending law school at St. Louis University School of Law.
Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessphx.com. Look for survey questions and other research on our business community.
Employee Benefits International Inc. ebint.com Stephanie Waldrop brings more than 20 years of insurance industry experience to her role as principal of Employee Benefits International, which provides consultant and brokerage services to employers of all sizes, offering extensive expertise in all aspects of risk management, program design, market review, renewal negotiation, financial budget projections, claims utilization analysis, wellness programs and compliance.
QUICK AND TO THE POINT
DAILIES TOP STORIES
‘In Business Dailies’ Most Views Last 30 Days Here are the stories with the most views over the past 30 days (prior to press time) that were features in our In Business Dailies. The In Business Dailies hit email inboxes twice each weekday — at 9:30 a.m. and updated at 4:30 p.m. Sign up today at www.inbusinessphx.com/dailies-signup PHILANTHROPY | INBUSINESSPHX.COM | SEPT. 13 2021
Piper Charitable Trust Awards $123 Million in Surprise Grants to 71 Nonprofits: The Largest Single-Day Grant Initiative in Arizona History
Sports Betting’s Impact on Arizona’s Bottom Line On Sept. 9, sports betting was legalized in Arizona. During an event to celebrate the legalization in partnership with the Arizona Diamondbacks and Caesars Entertainment — who have launched the Caesars Sportsbook app statewide and are in the midst of building a two-story, 20,000-square-foot sportsbook and sports bar adjacent to Chase Field set to open in early 2022 — Governor Doug Ducey joined Caesars Sportsbook chief trends officer and brand ambassador Trey Wingo, Arizona Diamondbacks legend Luis Gonzalez and D-backs CEO and president Derrick Hall, along with state dignitaries, to fete the occasion. In addition to Caesars donating $20,000 to the Arizona Diamondbacks Foundation to celebrate the partnership, the D-backs presenting commemorative jerseys to their new partners and ceremonial first bets being placed at Caesars temporary betting windows at the D-backs box office — which will remain in place seven days a week until the permanent sportsbook opens — Ducey noted the economic and tourism impact that sports betting will have on Arizona: “Sports fans, teams, gaming industry employees, visitors to our state — today is an exciting new day for Arizona,” said Governor Ducey. “Today marks the first day of legal sports betting in Arizona. This means new job opportunities, more tourism in our state and increased tax revenues that will benefit Arizonans and tribal communities. I was thrilled to welcome the Caesars Sportsbook
at Chase Field and the FanDuel Sportsbook at Footprint Center.” According to Ducey, gaming employs thousands of Arizonans and generates millions in tax revenue for state and local governments. The revenue from sports betting will, in fact, provide funding for K-12 education, help protect Arizona’s land by funding wildlife and habitat conservation, and help fund mental health and substance abuse treatment centers. Additionally, gaming facilities provide tribes with funding sources to support tribal education, healthcare, housing and other basic services such as clean water. The modernization of gaming in Arizona was the result of a multi-year effort by a diverse group of partners. The Governor thanked the teams, tribal partners, lawmakers, sportsbooks and community leaders who made it possible. “The tribal-state gaming compact and associated legislation I signed in April would not have happened without the good faith effort of many,” he said. “Their hard work paved the way for a new era in gaming for Arizona.” “I applaud the State’s leadership in legalizing sports betting,” said Diamondbacks President and CEO Derrick Hall. “This will enhance the engagement and interest levels for our fans with all of our local teams, but, more importantly, it will generate new revenues for the General Fund. The popularity of sports betting and fantasy sports will grow tremendously, and we will prioritize protecting the integrity of our industry and promoting the importance of responsible gambling.” —Alison Bailin
inbusinessPHX.com Trustees of Virginia G. Piper Charitable Trust today awarded a total of $123 million in surprise grants to 71 Arizona nonprofits—the largest single-day grant initiative in Arizona’s history. The grants were presented to the 71 awardees throughout the day on September 13, 2021—as a complete surprise. Trustees personally met with the CEOs and Board Chairs of the 71 organizations to thank them for their leadership and work and provide significant capital through grants that help secure their futures. MORE: https://inbusinessphx.com/?p=167384 GROWTH & ENTERPRISE | INBUSINESSPHX.COM | SEPT. 1 2021
The City’s Newest Hotel Also Debuts a Signature Restaurant & the Valley’s Highest Open-Air Rooftop Bar The Westin Tempe now open in the heart of the Downtown District inbusinessPHX.com As the largest new hotel to debut in Tempe, Ariz. in nearly four decades, The Westin Tempe is now open in the city’s vibrant downtown district, ushering in a refreshing biophilic energy to the neighborhood along with a new signature restaurant and the Valley’s highest open-air rooftop bar and lounge. MORE: https://inbusinessphx.com/?p=167304 GOVERNMENT & COMPLIANCE | INBUSINESSPHX.COM | SEPT. 9 2021
SBA Enhances COVID EIDL Program to Aid Small Businesses Facing Challenges from Delta Variant U.S. Small Business Administration Today, U.S. Small Business Administration (SBA) Administrator Isabella Casillas Guzman announced major enhancements to the COVID Economic Injury Disaster Loan (EIDL) program, a federal disaster relief loan designed to better serve and support our small business communities still reeling from the pandemic, especially hard-hit sectors such as restaurants, gyms, and hotels. MORE: https://inbusinessphx.com/?p=167366
According to Gov. Doug Ducey, gaming employs thousands of Arizonans and generates millions in tax revenue for state and local governments.
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LOOKING GOOD
Local Standouts Recognized for Achievements and Philanthropy ACHIEVEMENTS
HR Leader Bailey Honored for Making a Difference Eric M. Bailey, president of Bailey Strategic Innovation Group, was the 2021 recipient of the Ann Byrnes, SPHR Memorial Award for Professional Excellence at the Arizona Society for Human Resource Management State Conference Awards Luncheon in August. Each year, the Ann Byrnes award recognizes one HR professional who has taken the initiative to grow and support the profession, serving as a role model and setting standards for others. Even before the murder of George Floyd, Bailey has been facilitating workshops and meaningful conversations for organizations all over Arizona. Started in 2016, Bailey Strategic Innovation Group is one of the nation’s fastestgrowing communication consulting firms helping break down the barriers of human communication using brain science. baileyinnovationgroup.com
RETSY Selected to Join Coveted Luxury Real Estate Network Forbes Global Properties, a curated consumer marketplace of luxury homes and an invitation-only membership network of top real estate firms, has selected Scottsdale-based brokerage RETSY to join its exclusive network exposing millions of viewers worldwide to Arizona›s luxury properties. RETSY is a technology-based real estate brokerage comprised of agents boasting more than 300 years of combined experience and US $3.5 billion in sales. forbesglobalproperties.com • retsy.com
PHILANTHROPY
Angry Crab Shack Partners with Arizona Housing Coalition Locally owned and operated Angry Crab Shack, a restaurant specializing in seafood boils with Asian-Cajun flavors and signature sauces, raised $50,125 in July for its You Dine We Donate month-long promotion benefiting the Arizona Housing Coalition. The local nonprofit aids and provides resources to homeless veterans and their families, which includes clothing, hot meals, haircuts, hygiene items and a variety of other services. Angry Crab Shack has been partners with the Arizona Housing Coalition for five years and has raised more than $140,664 to date with the You Dine We Donate program. For the full month of July, every diner that entered one of the twelve locations statewide helped raise money for the organization. All the proceeds from the sale of Angry Crab Shack merchandise were also donated.
Demand Sparks Need for New Construction Management Division Phoenix-based property management leader Arcadia Management Group, which provides facility management and tenant/ capital improvement project management for more than 50 million square feet across the United States, has launched a new Construction Management Division. Industry veteran Mark Zimmerman has been hired to lead the launch and the division during this time of surging post-pandemic demand. As businesses begin to come back to life, property management firms such as Arcadia help them bridge that divide. Among the main factors underlying the demand are tenants jumping back into the market with plans they had prior to the pandemic, but had to put on hold, and tenants revising their space to account for changes in business because of the pandemic. A third, unique to our times, is tenants upgrading their amenities to encourage employees to come back from a work-from-home arrangement.
Zimmerman, in his new role, serves as the national director of Construction Management, overseeing a pipeline of $17 million in tenant and capital improvements for current Arcadia-managed properties. He will also pursue and direct projects outside the Arcadia real estate portfolio. “There was no notable downturn in construction demand during the pandemic. In fact, demand among Arcadia clients grew as tenants recognized the need to incorporate new technology and embrace and deploy flexible, amenity-heavy work environments,” says Zimmerman. “With this new division, we will be able to meet that demand and pursue new opportunities as an experienced team, within a very efficient, nimble and creative organization.” —Mike Hunter Arcadia Management Group arcadiamgmt.com
Outsource Document Shredding to Avoid Legal Issues Outsourcing a company’s document shredding ensures its documents will be destroyed safely and securely. It also ensures compliance with state and federal regulations. For many businesses, these regulations include the Health Insurance Portability and Accountability Act (familiarly known as HIPAA), the Fair and Accurate Credit Transaction Act, the Sarbanes-Oxley Act and the Gramm-LeachBliley Act. Each of these laws include heavy fines and penalties to businesses that fail to document destruction policies. Using a professional outsourced on-site shredding company helps businesses avoid repercussions of non-compliance. These shredding businesses will travel to an office, destroy the designated documents, and issue a Certificate of Destruction each time for the company to keep in its records as proof of compliance. Old, out-of-date and unneeded business, personal and tax documents can be destroyed. Tax documents should be kept for at least seven years and digitally scanned
for safe storage. After seven years, these documents can be destroyed to free up space in the filing system. On-site shredding companies are the safest option, helping with the security of sensitive information. Businesses shredding their own documents poses a security risk as they are placing the shredded papers into their dumpster where potential thieves can access them. Just because paper is shredded doesn’t mean sensitive information cannot be found. Use of a professional on-site shredding company ensures the documents are destroyed correctly and immediately sent to a recycling facility. And the on-site nature of the service is, itself, another element of security, as businesses can witness the process happening from beginning to end, keeping the chain of custody intact. —Joe and Patty Caradonna, owners of PROSHRED® Arizona (www.proshred.com/ greater-phoenix), located in Tempe, Ariz., and experts in document shredding for businesses and individuals
angrycrabshack.com • azhousingcoalition.org/avsa
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American workers are increasingly fearful of employer surveillance, according to a new study by Elements Global. The survey also found that two in three workers aren’t reporting issues to HR because they don’t think action will be taken and roughly half (49%) don’t report issues to HR for fear of retaliation. elementsgs.com/top-hr-complaints-statistics
METRICS & MEASUREMENTS
METHODOLOGY
MarTech Outcomes Depend on CMO-CIO Relationship
The report is based on a survey conducted this spring of more than 200 marketing leaders across 12 industries, such as financial services, retail, healthcare, telecom, consumer products, technology and manufacturing. In-depth interviews were also conducted with executives at PayPal, Comcast, GE Healthcare, Salesforce (Tableau), Fidelity Investments, Autodesk, eBay, and more.
The better the CMO-CIO working relationship, the better the MarTech performance by Mike Hunter
As companies emerge from the pandemic, marketing and MarTech lie at the heart of the recovery. To optimize MarTech investments, marketing needs to have a very effective working relationship with IT that spans strategy, selection and management. Yet fewer than one out of four marketing organizations has such a relationship. A new report from the Chief Marketing Officer Council entitled “Making MarTech Pay Off,” produced in collaboration with KPMG LLP, covers critical aspects of the marketing-IT relationship, how they’re structured and governed, what types of MarTech capabilities and outcomes they effectuate, and how marketers can take this relationship to the next level. The urgency to unearth actionable data insights and improve the customer experience through MarTech has never been greater. Much of a company’s future rests on revenue growth fueled by digital marketing and delivered by a technically savvy workforce. MarTech is fundamental to meeting both CMO and CIO objectives. The report found that “very effective” CMO-CIO relationships produce a comprehensive and highly effective MarTech capability. This consists of planning strategically, integrating strategic considerations into tactical decisionmaking, solidifying strategic considerations through holistic participation in selection and management stages, and measuring performance broadly and regularly. “CMOs in very effective relationships with IT, who get the most out of MarTech, also have the largest MarTech stacks and spend the highest percentage of their marketing budget on MarTech,” notes Donovan Neale-May, executive director of the CMO Council. “These CMOs are more likely to be responsible for digital transformation, customer experience and revenue generation — the ‘big three’ — and play a larger role in the future of the company.”
Noting that the new CMO Council report shows the majority of companies do not currently have an effective marketing-IT working relationship, Jason Galloway, marketing consulting practice lead at KPMG LLP, observes, “Presently, there is an urgent need for CMOs and CIOs to closely work together to maximize the return from MarTech, leading to necessary changes in innovation, data-driven metrics, governance, and alignment and integration.” The best CMO-CIO relationships lead the charge in innovation, data-driven metrics, governance, and alignment and integration. These are often the very traits needed to enjoy a competitive advantage from MarTech, yield greater returns on investment, and provide a more satisfactory MarTech experience for employees and customers.
CMO-CIO Relationship – Key Characteristics and Outcomes • Only 23% of companies have “very effective” CMO-CIO working relationships.
• 48% of CMOs in “very effective” relationships with IT have an equal partnership, compared to 21% of CMOs in “effective” relationships. • 60% of CMOs in “very effective” relationships with IT have a multi-year strategic plan for MarTech, compared to 29% of CMOs in “effective” relationships. • CMOs in “very effective” relationships with IT use an average of two innovation techniques, compared to 1.2 for CMOs in “effective” relationships. • 65% of CMOs in “very effective” relationships with IT regularly collect and distribute MarTech KPIs with insights and recommendations, compared to 36% of CMOs in “effective” relationships. Source: cmocouncil.org/thought-leadership/reports/making-martech-pay-off
To optimize MarTech investments, marketing needs to have a very effective working relationship with IT that spans strategy, selection and management.
The Chief Marketing Officer (CMO) Council is dedicated to high-level knowledge exchange, thought leadership and personal relationship building among senior corporate marketing leaders and brand decision-makers across a wide-range of global industries. The CMO Council’s 16,000-plus members control more than $1 trillion in aggregated annual marketing expenditures and run complex, distributed marketing and sales operations worldwide. cmocouncil.org. KPMG LLP is the U.S. member firm of the KPMG global organization of independent professional services firms providing audit, tax and advisory services. The KPMG global organization operates in 146 countries and territories and has close to 227,000 people working in member firms around the world. kpmg.com/us
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BY RAEANNE MARSH
ENTREPRENEURS & INNOVATORS
ROXX Vodka – Refresh from Poland to Phoenix
“The recipe for the vodka was unique and just amazing!” says Angela Nielsen, explaining what attracted her to founding ROXX Vodka. “I had built two other successful businesses, so my entrepreneurial spirit was definitely the motivating factor.” ROXX Vodka is an award-winning premium craft vodka imported from Poland, distilled six times using premium high-quality grains. ROXX Vodka has created a smooth and refreshing vodka by utilizing crystal clean water from Poland’s deepest natural springs plus a specialized filtration system for the removal of unwanted impurities. “I self-funded the company from 2012 to 2018,” Nielsen says. Explaining that ROXX is a vodka distilled in Poland using four pesticide free grains and has won many awards including a gold medal and 92-pt rating from Tastings.com., Nielsen shares that ROXX has been served at the Grammy’s party at the Playboy Mansion; was sponsor of the gifting suite at the VMAs; and was served to celebrities like Julia Roberts, Cindy Crawford, Adam Sandler and so many more at the ROCK4EB charity event in Malibu.
Nielsen founded the company in July 2012 but was held up for several years litigating a trademark infringement case filed by Exxon. She relaunched the brand in late 2018, just five months prior to COVID-19, and is currently distributing in the Metro Phoenix market. “The financial investment has been overwhelming but I have now found the right partners to finally grow the brand,” she says. ROXX Vodka roxxvodka.com
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Dovly is an automated credit repair engine that tracks, manages, and fixes consumer credit. “Our proprietary algorithm identifies the issues and automates the credit report dispute process, utilizing an approach that is proprietary customized at the individual level for optimal impact,” says Nirit Rubenstein, CEO and co-founder, explaining, “My co-founder and I both immigrated to the U.S. as children and witnessed first-hand the challenges our families faced lacking access to credit. As we were building our careers in the financial services and technology sectors, we decided there had to be a better way to solve a problem that is impacting the financial well-being of tens of millions of Americans.” But the problem they wanted to address went deeper than just access to credit. “We were up against the reputational challenge the entire industry has created over decades,” she says. The predatory methods of the traditional credit repair industry have made “credit repair” a dirty word in the minds of regulators and consumer advocates. Describing incumbents as “mostly disreputable businesses that take advantage of financially vulnerable consumers, strong-arming them into unaffordable service plans that do little to advance the consumers’ credit or financial positions,” Rubenstein says, “We’ve worked hard to show that Dovly puts the consumer
first, offering a technology-enabled solution that is transparent, legally compliant, affordable, and effective. This approach has helped us earn the trust of business partners and consumers who would otherwise steer clear of the industry.” Their purpose, she says, is to make a positive difference in each customer’s life. So, as the company grows, “We hire people who understand that every decision we make [must consider], ‘What will this do for our members?’” Recognizing that building a brand takes time, Rubenstein says, “Someone once told me to remember that things are never as good as they seem or as bad as they seem. I’ve taken that message to heart, keeping an even keel in the face of so many ups and downs – often in the same hour! Things can go wrong, but if we stay true to our mission, we’ll succeed in the long run.” Dovly dovly.com
The problem of inaccurate data is only getting worse. According to Dovly CEO Nirit Rubenstein, a story in Forbes earlier this year reported that credit report inaccuracies more than doubled during the pandemic — largely because of a mismatch between laws that were meant to give consumers relief and mistakes made in the way suspended payments were reported to the credit bureaus.
Photos courtesy of ROXX Vodka (top), Dovly (bottom)
Dovly Aims to Give Credit Repair a Good Name
BY RAEANNE MARSH
Phoenix Apartment Construction Leads Nation
According to RENTCafé by Yardi Matrix, apartment construction remains strong this year with more than 330,000 new rental units expected to be delivered nationwide — comparable to the previous four years of construction boom. And, despite challenges brought forth by the pandemic, eight metros are expected to hit five-year highs of new apartments — among them, the Metro Phoenix area. More precisely, 334,000 units are projected to be opened in the U.S. by the end of this year, according to Yardi Matrix’s proprietary algorithm, which includes confirmed and likely completions for 2021 based on the issuance of a certificate of occupancy. These figures reflect the striking difference between the aftermath of the pandemic crisis and that of the housing crisis of 2008: In 2021, there were nearly three times more apartments under construction than there were in 2011. The Phoenix metro area is set to build 15,846 new apartments this year, reaching a five-year high and claiming the third position nationally when looking at projected apartment count. This jump is 76% over last year’s 9,022 units, and a far cry from the lows of 2017 when only 6,758 apartments were built. Development, in fact, booms across the area, as Phoenix itself spearheads construction with 3,860 expected units. Mesa projections show 1,957 new apartments; Gilbert, 1,881; and Glendale, 1,667. RENTCafé rentcafe.com/blog/rental-market/apartment-construction-2021
Photos courtesy of Chamberlin + Associates Real Estate Management
Construction Technology Lowers Concrete’s Carbon Footprint
Sustainability is increasingly a priority for architects, engineers and developers as they urgently seek solutions that reduce embodied carbon in the built environment, which is generated by the manufacturing of building materials and construction. Coreslab Structures, a premier producer of precast/prestressed concrete products, can utilize a carbon dioxide removal technology supplied by CarbonCure Technologies in its day-to-day operations in Arizona to provide low-carbon, precast concrete solutions to customers upon request. This ensures architects and engineers in Arizona can secure concrete solutions that deliver a significantly reduced carbon footprint without compromising strength or quality. CarbonCure’s technology injects recycled carbon dioxide into precast concrete during mixing. Once injected, the carbon dioxide undergoes a process known as mineralization, chemically converting into a nano-mineral and becomes permanently embedded in the concrete. This mineralized carbon dioxide increases the strength of the concrete and enables the reduction of cement content in precast elements, further reducing the carbon footprint of the concrete. “CarbonCure provides us one more weapon in our sustainability arsenal, allowing even more cement reduction in our already lean high-performance concrete mix designs,” says Phil Richardson, SE, sales manager with Coreslab. “This, together with our low waterto-cement ratios and the reduction of mild steel reinforcing, replaced with prestressing technology, yields a green, sustainable building solution.” To date, across Coreslab’s plants in Arizona, Missouri and Texas, CarbonCure’s technology has saved a total of 726 tons of CO₂. That’s equivalent to taking about 150 cars off the road for a full year or the amount of carbon sequestered across 800 acres of forests in a year. Coreslab Structures coreslab.com
Carbon Cure’s partnership with Coreslab started at the company’s Austin, Texas, precast plant in August 2020. Based on the success of that partnership in Austin, Coreslab is now deploying the technology at its Arizona and Missouri locations.
PROPERTY, GROWTH AND LOCATION
GET REAL
by Mike Hunter
Chamberlin + Associates Restoring Al Beadle Building for Its HQ Chamberlin + Associates Real Estate Management has purchased the 21,000-square-foot office building at 500 E. Thomas Road, originally designed by Phoenix modernist master Al Beadle, to serve as its future corporate headquarters as it continues to grow in Arizona and other Southwestern states. Maintaining the original design of Beadle while bringing an open and inviting workspace, the renovation project led by Phoenix design firm Kaiserworks aims to pay homage to Beadle by restoring the building to a place of architectural prominence within the Central Avenue corridor while updating its ground floor, landscape and interiors to reflect contemporary design and business practices. Phoenix-based Restoration Rewind will lead the construction on the project. ca-mgmt.com • kasierworks.com
CapRock’s Infill Project Is Phoenix’s Largest Industrial Spec Development CapRock Partners, a leading industrial investor, developer and asset manager in the Western U.S., has commenced development of CapRock West 202 Logistics, the largest speculative industrial real estate project in the history of the City of Phoenix. CapRock is transforming one of the largest remaining infill land sites in the Southwest Phoenix submarket into a state-of-the-art, eightbuilding, Class A industrial warehouse complex totaling 3.4 million square feet. The project will be highly accessible to key logistics transportation routes and bring much-needed modern warehouse space to the Phoenix metropolitan statistical area as it continues to experience robust population and employment growth. caprock-partners.com colliers.com/en/united-states/cities/phoenix
Lincoln Property Co. Sells Park303 Phase I for Record-Breaking $186 Million Within one month of completing the project, leading developer LPC Desert West has sold the fully leased, 1.25-million-square-foot Park303 Phase I in Glendale, Arizona, to BentallGreenOak, a leading global real estate investment management advisor and real estate services provider. At $186 million, the transaction represents the highest single-building industrial sale price in Arizona history. lpc.com • lpcdesertwest.com
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BY MIKE HUNTER
PROPERTY, GROWTH AND LOCATION
Developer Enters Phoenix Market with Glendale Industrial Project Falcon Park 303 Phase I, a speculative industrial product located along the red-hot Loop 303 corridor in Glendale, broke ground last month. This project marks the entry into the Phoenix market of St. Louis, Missouri-based US Capital Development, which has several active projects on the other side of the Mississippi. Falcon Park 303 Phase I sits on 36.75 acres along Camelback Road at 152nd Avenue, just over a mile east of the Loop 303. The building will feature 40-foot clear heights, with 92 dock-height loading doors and four drive-in loading doors. The 599,468-square-foot space is divisible by half. The building is expected to be completed by August of 2022. The team working alongside US Capital Development includes Phoenixbased general contractor Willmeng Construction, Fountain Hills-based architect Gray Design Group and Phoenix-based civil engineering firm HILGARTWILSON. The leasing on the development is being handled by the Cushman & Wakefield team of Andy Markham, Mike Haenel and Phil Haenel. US Capital Development is also working on plans for Falcon Park 303 Phase II, which will be a 325,000-aquare-foot speculative industrial building. Along with Falcon Park 303, Managing Partner and CEO Scott Sachtleben says his firm is in various stages of planning at three other industrial developments across the Valley and expects to have 3 million square feet of industrial product coming out of the ground in the Phoenix market by the first quarter of 2022.
Nelson Grumney, who heads up development opportunities for US Capital in the Phoenix market, says, “The pandemic-fueled surge in e-commerce, increased consumer demand and the reshoring of manufacturing and warehousing has introduced a huge need for additional industrial product nationally. With the large growing population base in the Valley, probusiness regulatory environment and proximity to multiple markets, we feel that we are well-positioned in the Southwest Valley.” Cushman & Wakefield cushmanwakefield.com/en/united-states/offices/phoenix US Capital Development uscd.com Willmeng Construction willmeng.com
In a joint venture partnership, LPC Desert West, the Southwest regional office of Lincoln Property Company, and Scottsdale-based Harvard Investments have purchased 585 acres in Metro Phoenix’s West Valley submarket for a major new Class A industrial development called Goodyear AirPark. Situated next to the Phoenix-Goodyear Airport, it is one of the last large industrial-zoned land parcels remaining in the immensely popular Goodyear, Arizona, industrial market. It also sits immediately adjacent to a Dark Fiber line, making it highly attractive for data center development — a market sector in which Phoenix ranks as a U.S. leader. LPC and Harvard will break ground on Goodyear AirPark Phase I in Q1 2022, to include more than 1.6 million square feet of space in six buildings ranging from 81,000 square feet to 775,000 square feet. At completion, the park will have the capacity to deliver up to 7 million square feet of industrial space in as many as 20 buildings. It will also offer a retail component, providing approximately 10,000 square feet of in-line and retail pad opportunities. Buildings within Goodyear AirPark will offer up to 40-foot clear height, multiple points of ingress and egress, private truck courts and generous parking. The Goodyear AirPark site has a full utilities infrastructure and is zoned for industrial and commercial use. “Goodyear AirPark represents one of the all-time most well-located and amenitized, shovel-ready industrial sites in LPC’s Desert West portfolio, happening at a time when demand for modern industrial product has never been higher,” says Lincoln Property Company Senior Executive Vice
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President David Krumwiede. The site is generally bounded by Estrella Parkway, Bullard Avenue and State Route MC 85, a high-volume east/ west trucking route connecting Goodyear with Mexico. It is also directly south of Phoenix-Goodyear Airport and approximately three miles south of Interstate 10. Cerberus Capital Management is the equity partner for LPC and Harvard on the project. Greg Vogel of Land Advisors represented the land seller, Sun MP. The architect is Butler Design Group. The general contractor is yet to be selected. LPC Desert West will direct all leasing and property management. Harvard Investments, Inc. harvardinvestments.com LPC Desert West lpcdesertwest.com
More Industrial in the West Valley: Phoenix-based GO Industrial has embarked on its first Metro Phoenix development, purchasing 77 acres at the southeast corner of Buckeye Road and 99th Avenue, for $23.55 million for the development of GO | 99. The new project will total three buildings and more than 1.2 million square feet in one of the nation’s most active industrial markets. goindustrial.net
Photo courtesy of Cushman & Wakefield (top), PC Desert West (bottom)
Development Slated on One of Goodyear’s Last Large Industrial Parcels
MINDING THEIR BUSINESS
Sam Fox Evolves His Home-Grown Hospitality Empire Renowned restaurateur aims his talents at hostelry by Jan Bracamonte
SERVING HIS PASSION As one of the country’s leading restauranteurs and premier hospitality brand developers, Sam Fox has been named one of the 50 most influential people in the restaurant industry by Nation’s Restaurant News for five consecutive years. Fox’s newly formed hospitality company, Author & Edit Hospitality, is underway with two dynamic destinations: The Global Ambassador, an internationally inspired hotel in the Arcadia area of Phoenix; and a oneof-a-kind, multi-faceted destination, The Twelve Thirty Club in Downtown Nashville, in partnership with Justin Timberlake. globalambassadorhotel.com thetwelvethirtyclub.com
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Sam Fox was raised in the hospitality industry. Much of his childhood was spent in his parent’s Tucson restaurant, treasure hunting for change under the seats at night and, later, waiting tables and helping out in the kitchen. At 20, he dropped out of the University of Arizona and used his tuition money to open his first restaurant. In 1998, he launched his first FRC restaurant — Wildflower American Cuisine. Fast-forward to today, Fox is one of the country’s leading restauranteurs and premier hospitality brand developers. As a12-time James Beard Award nominee and a New York Times best-selling cookbook author, he has opened more than 100 restaurants with many more openings cooking for 2021 and beyond. In 2019, Fox announced the sale of his restaurant group, Fox Restaurant Concepts (FRC) to The Cheesecake Factory. As the founder of FRC, Fox remains responsible for its day-to-day operations, forming a one-of-a-kind partnership never before seen in the restaurant industry. In May, Fox made national headlines when he announced his foray into luxury hotels with The Global Ambassador, an internationally inspired hotel opening in late 2023, at one of the most high-profile intersections in Arizona: 44th Street and Camelback Road. “The Global Ambassador is a deeply personal, legacy project for me that furthers my pursuit of combining unmatched hospitality with culinary excellence,” said Fox, who will manage, operate and co-develop the hotel under his newly formed Author & Edit Hospitality company. “This is so much more than a hotel; it’s a luxury lifestyle brand that we hope will inspire and draw travelers from all over the world to explore Phoenix in a new way. The Global Ambassador is the natural evolution of my passion for creating memorable hospitality experiences.” Much of Fox’s success is often attributed to his keen ability to spot trends before anyone else. Unlike big hotel brands, Fox plans to play by his own set of rules just as he’s done for more than two decades in the restaurant business. “Hotels today have become a limited set of experiences. We’re not subscribing to the functional requirements of traditional hotel developers; if it doesn’t enhance the guest experience, I’m not interested in it. With The Global Ambassador, we’re bringing an all-encompassing set of experiences together with the restaurants, wellness offerings, a private member’s club and a luxury hotel. Long before we designed the 141 rooms, we honed in on the culinary offering, the programming, the community engagement aspect and so much more. This hotel is solely built on enriching, dynamic experiences that are constantly evolving. You just won’t want to leave.” What’s part of Fox’s secret sauce? Consistency. Fox attributes years of consistency in one of the toughest
businesses out there — the restaurant business — as a major factor in his success. “I’ve set high standards and my team has been able to uphold those standards day-in and day-out. It’s taxing, but it’s rewarding and really sets us apart in our industry. We’re now applying those same standards to the hotel business,” says Fox. Longtime guests of Fox’s restaurants will notice a common thread when they enter the doors of The Global Ambassador: the attention to detail. Every aspect of the well-appointed hotel has been meticulously pored over, studied and designed by Fox himself. Each hallway, tucked-away courtyard and amenity of the Global Ambassador is purposefully designed to elicit one cultivated experience that is rich in charm and sophistication. “I want to control the entire guest experience from start to finish. We are the ambassadors of every aspect of the hospitality in the building and I think that’s a pretty special thing,” says Fox. One mark that is often missed by hoteliers is the ability to create an outstanding food and beverage program that keeps guests on-property and drives hotel revenue. Fox already has that in the bag. A stellar lineup of inventive culinary offerings will define The Global Ambassador. The hotel will boast five original dining venues with cuisine influenced by the vibrant flavors from all over the world. The pièce de resistance will be the Mediterranean rooftop restaurant that overlooks the iconic Camelback Mountain. Fox is co-developing The Global Ambassador with his trusted collaborator, business partner and friend Brian Frakes of Common Bond Development Group, a company known for its notable lifestyle development projects. Over the past year, he and Frakes have been influenced by what society has most been lacking: socialization. “With The Global Ambassador, we wanted to lean into getting back to being social. We didn’t want to create to-go experiences or too many private areas that put up barriers and restrict gathering. This hotel is open and all-encompassing. We want people to reconnect and celebrate being together. Welcoming people into our neighborhood is the premise and foundation of The Global Ambassador.” Author & Edit Hospitality authorandedit.com
According to “Fortune Business Insights,” the luxury hotel market is projected to grow from $119.55 billion in 2021 to $238.49 billion in 2028 at a CAGR of 10.4% in the forecast period [2021-2028]. fortunebusinessinsights.com/luxury-hotel-market-104408
YOUR BENEFIT IN BUSINESS
WELL WELL WELL
The Key to Normalcy Lies in COVID-19 Testing More than 4.44 million lives have been lost since the pandemic began in 2020. Following a quiet period when many relaxed their guard, we’re now seeing spikes on graphs we thought — and hoped — had bottomed out. Despite efforts to put the pandemic behind us, our global population is vulnerable once again as SARS-CoV-2 variants spread. Under these circumstances, even after 1.5 years, testing for COVID-19 remains absolutely paramount.
MORE THAN ONE COVID-19 Four SARS-CoV-2 variants have officially been classified as Variants of Concern by WHO and the CDC. Compared to the original virus from Wuhan, China, these mutations are deadlier, more virulent and less responsive to treatment and vaccines. Today, only 51.5% of Americans are vaccinated, leaving 48.5% of our country’s population susceptible to serious infection by SARS-CoV-2 strains. That gives us no choice but to monitor infections with continuous diagnostic testing, not just for SARS-CoV-2 but for all variants.
PATHOGENDX SHIFTS FOCUS No matter how the pandemic ebbs and flows, PathogenDx has adapted lock-step with the virus to deliver the necessary diagnostics and surveillance testing for variants — even today. We’ve developed more sensitive, specific and extensive diagnostic assays and environmental detection systems than current FDA-authorized COVID-19 tests. Technologies like our Detectx-Cv assay, which can both diagnose an infection and identify the variant, are most needed today. With infections trending up, we need to be able to identify SARSCoV-2 variants if we hope to expand genomic surveillance, understand vaccine efficacy and administer the appropriate treatment. Thus we have the three components that need to work in unison in order to bring a conclusive end to the pandemic: testing, vaccinations and therapeutic medicines. Without one, the entire system collapses. We must keep COVID-19 variants under control. Keeping them contained requires constant surveillance. Constant surveillance means the continuation of COVID-19 testing. It’s the only path to reclaiming our pre-pandemic normalcy. —Milan Patel, CEO of PathogenDx (pathogendx.com), an Arizona-based biotech company on a mission to set the new standard in molecular-based testing through widespread
Building an Ecosystem That Will Survive and Thrive With a call to action from an increasing volume of buyers for integrated solutions that deliver improved, measurable results, many companies are demanding solution partners that will drive innovation and enhance value for a larger population of consumers. The primary means of delivering on this “new normal” are business ecosystems, which are now a foundational approach to most companies’ growth strategies. Ecosystems move beyond conventional organizational boundaries, forming strategic collaborations among multiple players that provide key benefits for every company engaged in the ecosystem. Through the sharing of data, resources and services, an ecosystem enables its members to offer unique cross reach, satisfy broader customer needs, and achieve business goals that would not be possible on their own. As reported by Deloitte Insights, “Ecosystem-driven portfolio strategy,” research also has shown investors place higher enterprise value on companies that prioritize and orchestrate business networks, as opposed to traditional industries and value chains. Business ecosystems position themselves competitively when they are appropriately constructed and managed, facilitating the development of complete customer solutions that align with the value and benefit each company needs. But once an ecosystem is created by the right partners with the right synergy, the work must begin to ensure the ecosystem is sustainable. Studies have shown many business ecosystems don’t experience longevity even after they become successful. Given the highly dynamic nature of a group of companies that have previously worked independently from each other, what is the most effective way to develop an ecosystem that will both survive and thrive? Be agile, not fragile: A successful ecosystem requires a nimble network of companies that isfluid in design. As an ecosystem evolves, its partners must continuously reevaluate strategy and adapt in real time for rapidly changing narratives, evolving workloads and shifts in the market that affect product lines or technology. In an era with an unpredictable global economy, there is no place in any business ecosystem for “We’ve always done it this way.” Agile ecosystems will capitalize on their shared resources and data to open new markets and grow their customer base — more quickly than their competitors — while they continue to build
from a position of strength. Contributions from all, value for all: A key economic advantage of an ecosystem is how it joins numerous companies of all types, often with different customers and goals, to collectively deliver solutions beyond the capacity of any single organization. Each member is a key part of the larger overarching system, with a clear presence in its value proposition and a specific role in driving its success — whether as a participant or orchestrator. For an ecosystem to thrive long term, each company must realize individual value as well, and they must work together to ensure that for each other. The concept of “We make each other individually better by being aligned working together” is critical to the ecosystem’s continuing viability. A human-centric culture of trust: The significance of an inclusive, respectful culture as an essential ingredient — both internally and externally — cannot be overstated. A complex ecosystem of strategic partners, vendors, suppliers, investors and customers will falter without the level of trust required for meaningful collaboration and persuasion. Partners must be on the same page regarding their objectives, processes and solutions, moving away from the old competitive obstacles and working in a fully transparent environment that engages all participants. Ultimately, an ecosystem is about relationships, which are only as strong as the weakest link among them. Corporate leaders largely view ecosystems and partnerships as the business organization model of the future. Although ecosystems require a significant shift from the standard mindsets and methods of the corporate world, business and industry leaders are already seeing the clear benefits through improved business outcomes, increased satisfaction and enhanced collaboration in accelerating new solutions — all of which drives growth and makes each partner in the ecosystem better and stronger than it might be when working alone. —Rob Gelb, chief executive officer of Vālenz® (www.valenzhealth.com), the industry-leading ecosystem offering self-insured employers unrivaled data transparency to pinpoint members at highest risk, address gaps in network designs, ensure appropriate and accurate charges, and expertly navigate members to optimal care solutions for substantial cost savings and improved health outcomes
adoption of its advanced microarray testing
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Four SARS-CoV-2 variants have officially been classified as Variants of Concern by WHO and the CDC. Compared to the original virus from Wuhan, China, these mutations are deadlier, more virulent and less responsive to treatment and vaccines.
INNOVATIONS FOR BUSINESS
TECH NOTES
by Mike Hunter
Tech Enables Car Theft Recovery As the car shortage continues to escalate, nearly two cars are stolen every minute according to the National Insurance Crime Bureau. Phoenix-based RecovR is an industry-leading service that locates and recovers a car for dealers as well as individual owners. Its 2-in-1, lot-management and theftrecovery solution has been developed by global tech and security leader Kudelski IoT, a Swiss company whose U.S. headquarters is in Phoenix. Multilocation dealerships in Arizona are among those nationwide that have already reported benefit from the product since its launch in February. Provided at no upfront cost to the dealer, RecovR also provides improved efficiencies and faster sales with its lot-management features, helps prevent theft or misplaced cars, gives a potential reduction on garage keepers insurance, and provides a highquality product that creates significant revenue at the Finance & Insurance desk. The RecovR locator is installed and associated with a vehicle in less than 60 seconds by placing it in a hidden location in the car and scanning the vehicle’s VIN. Because it doesn’t need to be wired into the vehicle, it doesn’t require professional installation and there is no risk of voiding the warranty as wired, battery-connected solutions can. And, because it is completely independent of the vehicle’s electronics system, it cannot be easily detected or disabled by thieves. RecovR is designed for ease of use by dealers, allowing them to use a powerful web portal or an individual mobile device to locate a specific vehicle in real time on or off the lot. RecovR data can also be integrated with a Dealer Management System or other software used by dealers. RecovR provides consumers the most advanced and reliable wireless theft-recovery solution, which can be used by the car’s owner to find a misplaced vehicle in a parking lot and also triggers immediate alerts if a vehicle is unexpectedly moved from its assigned location. Through RecovR’s app, consumers can instantly share vehicle location with law enforcement via a live tracking URL if stolen or misplaced. RecovR recovr.biz
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Boost Video Views for Business Video is a main driving force for business marketing success and has continued to grow exponentially. It is important that CEOs and marketing managers dive into this well-known platform to maximize the business’s exposure. According to a recent survey by Wyzowl, 93% of marketers who use video say that it is an important part of their marketing strategy, up from 78% in 2015. Below are some key aspects to mastering video content, quickly and efficiently.
make sure the audio of these short films is clear, audio should be focused on the interviewee and background noises that do not aid the storyline should be limited. An additional way to promote authenticity is to share behind-the-scenes videos of large projects. Interviewing people who are key players in the project and using short clips of what is happening backstage will help get consumers excited about the company’s product.
CAMERA CONTROL
FINALIZE FILM
Clear, quality audio; natural bright lighting; and engaging movement are all aspects that can help a video stand out. The best sound in video will come from an external microphone to pick up the desired audio. When using music, it’s important to check any licensing rights before posting. Lighting can be enhanced by moving a video shoot outdoors, purchasing a ring light or even shooting with light facing the subject, which can drastically enhance the visibility and feel of the video. Next, it is important to keep the video moving. Using a tripod or camera stabilizer will ensure the videos are steady while keeping them true to the video format. To film an interview of someone, having the person walk around the set can be much more engaging than just having the participant stand in one spot. While filming, it is beneficial to film all sorts of angles so there are multiple directions to choose from when the piece is being edited together, which makes the viewer experience more engaging.
PROMOTE PERSONALITY
Sharing a company’s unique storyline will help consumers relate and connect to that business. It is best to be authentic and to utilize positive customer interactions in the storytelling. It’s also good to have customers with impactful stories film short soundbite or highlight reels to share on social media and on the company’s website. To
According to a recent survey by Wyzowl, 93% of marketers who use video say that it is an important part of their marketing strategy, up from 78% in 2015.
Once the footage is complete, the video goes through a final editing process. At this point, those who are not professional videographers will need to connect with the right team or build their skillset. For a video to capture people’s attention, there are editing rules like not having too much space above a subject’s head and the rule of thirds to make sure the content is seamless. The rule of thirds divides the screen into thirds, and the dots where the lines intersect are the best place to position the subject. Having a clear goal and vision for the final product will help ensure the end product is exactly what was envisioned. It’s important to outline the target audience, overall mood of the film and distribution method. Social media is a powerful foundation for video content but can impact the editing process, depending on the video, so it’s important to investigate what specific dimensions and regulations are in place before hitting “post.” Video content is continuing to grow and utilizing the tools above will help businesses put their best digital foot forward. Throughout the continued evolution of video, it is important businesspeople using it keep their ear to the ground and continue to advance their skillsets. —John Wynn, D.Div., CEO of The Wynn Network (wynnnetwork.com), a platform he created to unite inspiration and entertainment and which is available on Roku, Apple TV, Amazon Firestick, iOS and Android devices
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&
Mental Health the Workplace
Are employers making health and well-being their priority? by RaeAnne Marsh
“Aside from a worker shortage, arguably the most significant issue facing employers is mental health,” says Peggy Chase, president and CEO of Terros Health. This reality has forced into the open a topic once too stigmatized to be spoken about. Arizona ranks 47th in the U.S. for access to mental health care, according to Sandra Zebrowski, M.D., corporate medical director of behavioral health at Blue Cross Blue Shield of Arizona. And the number of adults with frequent mental distress continues to increase — up 29% between 2015 and 2019, as reported in America’s Health Rankings 2020. The same rankings report places Arizona at 27th in the nation for frequent mental distress and 33rd for lives lost to suicide. Significantly, she notes, “These sobering statistics predate COVID-19.”
However, COVID-19 has helped bring discussion of mental health into the mainstream. “As one of the leading health insurance carriers in the state of Arizona, behavioral health has always been a priority for us,” Zebrowski shares, noting that, as COVID-19 began to storm our state, Blue Cross Blue Shield of Arizona began to see more and more inquiries from employers about behavioral health resources. Chase reports a similar experience at Terros, a healthcare company focused on the whole person that provides primary care and has specialized in mental health and substance use treatment for more than 50 years. “Locally,” she says, “Terros Health has seen a demand for mental health services during the past 16 months, too. This includes visits from individuals who have never had a mental health condition and members of our staff. “Wellness in the workplace has been gaining traction for some time,” Chase continues. “But until recently, many aspects of mental health — and especially the integration of employees’ physical and emotional well-being — have been largely overlooked. This has happened despite a surge in the number of U.S. adults reporting anxiety, depression and other mental health symptoms — 30% compared with 11% in 2019, according to the Kaiser Family Foundation.” Along with this, she notes there has also been a sharp rise in individuals with substance-use disorders and deaths from drug overdoses. “The pandemic certainly has contributed to a greater awareness of and emphasis on mental health in the workplace,” says Shawn Ellis,
vice president of human resources at Lovitt & Touché, who reports an increase — both internally and with clients — in the number of requests, discussions and programs aimed at improving employees’ mental health and wellbeing. “There is an understanding and recognition that many employees are struggling and need help to ensure they remain healthy, happy and productive.” The recent attention is arguably long overdue. Whatever the future may bring, Casey Strunk, president of Strunk Insurance Group, believes building resiliency is likely to remain a priority. “Employers are in a unique situation and may be able to champion mental health and well-being in the workplace,” he says, encouraging employers to focus on employees’ mental health needs. “Otherwise, anxiety, fatigue and burnout could further impact employee engagement, productivity and absenteeism.” As a business owner himself, Rhett Doolittle, CEO of Business Warrior, believes that one of the most important things he can do is put himself in the shoes of every member on his team. “Awareness of mental health is the key,” he says. Noting that his company seeks out formal training in emotional intelligence (EQ), he explains, “If our company as a whole has a high EQ, then it means that everybody is aware of their own emotions and making a concentrated effort to recognize and understand others’ emotions as well. This plays a big part in mental health, but the first step is to just recognize what’s going on with what’s working and what’s not.” His point is that an environment where everyone at the company has an outward focus
A Proactive Approach to Employees’ Mental Health By taking a proactive approach, organization leaders
could lower healthcare and disability costs in the
• Paid leave exclusively for caregiving
and HR professionals can focus on building a resilient
long run.
• Paid family medical leave
workforce, increasing the comfort around mental
Telemental Health Coverage: Telehealth options
• Sick, vacation or personal days
health conversations and designing benefits plans
have been expanding for years to offer employees
• Flexible scheduling
to meet current employee needs. The overall goal is
opportunities to seek nonemergency care from the
• Leave-sharing programs, which allow
to help today’s employees survive and thrive during
comfort of their own homes. Similarly, telemental
employees to “donate” accrued paid leave
uncertain times by cultivating a workplace that
health, or online therapy, can be useful to employees
time to their co-workers who are in need of
reduces the mental health stigma and demonstrates
during the pandemic and beyond. Employers should
additional paid leave
employee support through tangible benefits.
encourage employees to use telemental and
The following five mental health benefits trends may help employers develop a supportive and successful employee benefits strategy: Employee Assistance Programs (EAPs): An EAP
telehealth services to gain access to mental health providers for quick, convenient and affordable care. Online Mental Health Support Resources: For additional support, employers may consider
can be tailored to a workforce to provide critical
expanding employee access to virtual mental health
employee resources. Initially, the focus of EAPs
and emotional well-being services and resources
was drug and alcohol abuse, but many employers
such as apps, videos and articles. Online resources
have expanded programs to include a variety of
can address provider shortages and reduce the
issues. Employers may consider offering an EAP
stigma of seeking mental health care.
that incorporates behavioral health counseling,
Caregiving Support: As the baby-boom generation
mental health resources or therapist appointments.
continues to age, more and more workers will become
Depending on how an EAP is structured, it could
caregivers for elderly parents, in addition to others
offer employee education, evaluation, hotlines,
who will take on caregiving responsibilities for a
counseling and/or referrals.
number of different reasons. Employees may also be
The most effective EAPs offer more
faced with childcare and home schooling as a result
comprehensive services and integrate with the
of the pandemic. Balancing work and caregiving
employer’s health plan, prescription drug plan,
responsibilities can be difficult and can contribute
disability benefits and wellness program. Integration
to poor mental health and increased stress among
can allow the EAP to serve as a preventive measure
employees. Caregiving benefits can take many forms;
to address mental health and lifestyle issues that
some common caregiving policies include:
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OCT. 2021
Flexible Scheduling: Creating, expanding and promoting a workplace flexibility policy may help reduce the number of leave requests and support employees during the pandemic. With flexible scheduling, employers set designated “core” hours that an employee must be working (location irrelevant) and otherwise let employees work whenever they like. Or an employer may not have core hours but instead allow employees to work any combination of 40-hour workweeks. This can be a great way to accommodate working parents who must also act as stay-at-home teachers or daycare instructors. It can also free up time for parents so they can work earlier and see their families more in the evening. Additionally, an unlimited paid time off policy can give employees the guilt-free time off needed to take the vacation, sick and mental health days necessary to take care of themselves and their overall well-being. —Casey Strunk, president of Strunk Insurance Group (www.strunkgroup.com)
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on others helps them recognize any negative or positive shifts in people’s mental health. “Once we’re aware of a problem or something that is working well, then we can course-correct from there, seek outside help, or just keep doing more of what’s working.” Paying attention is where Zebrowski says BCBSAZ, too, is placing greater emphasis these days — paying close attention and providing resources for behavioral health issues. “We are living through a period of uncertainty and change, and that’s had a major effect on our everyday lives,” she says, pointing out that, historically, populations who have lived through pandemic events have experienced an increase in behavioral health concerns, substance use and deaths of despair long after the pandemic passes. “At BCBSAZ, we strive to be part of the solution in breaking down the stigma around behavioral health and fostering partnerships that allow easier access to care for our members.” However, Ellis points out that even as mental health awareness grows among the business community, there is no magic formula or one-size-fitsall approach to addressing the issue. Smaller employers, for example, might not have the resources to pay for and introduce a mental health program as extensive as a larger competitor or businesses in other industries. “But the good news is, there are numerous resources and solutions available that employers can explore to support their employees’ mental health,” she says, suggesting they speak with their benefits provider or insurance broker to see what tools and solutions might work for them. Accessibility is the issue Mind 24/7 specifically addresses, offering 24/7 walk-in crisis mental health and substance abuse services whenever an individual needs it, regardless of coverage. MIND 24-7 describes its approach as using innovations in value-based care models to improve and expand access to care, not only enhancing the quality of patient care, but reducing pressure on the system, reducing costly emergency room visits, in-patient treatment and readmissions. Says Jeff Spight, CEO and cofounder, “The increased access and focused services MIND 24-7 provides is crucial for the workforce, which has faced extraordinary mental health challenges. Employees spend a large part of their day — and lifetime — at work, increasing the effect that workplace environments can have on psychological well-being and increasing the need for employers to support their employees’ mental health.” He cites recent studies showing that onefifth of American adults experience a mental illness and 57% of them have their mental health needs unmet.
Vaccination Stress Dialogue between the vaccinated and unvaccinated can be fraught with stress, and the issue is gaining urgency as businesses are bringing employees back to the company workplace. How can those who are vaccinate best encourage their friends, family members or co-workers to get vaccinated against COVID-19 when they’re still reluctant? Some people don’t need much convincing — they were the ones who couldn’t wait to get vaccinated, based on the scientific, medical and public health recommendations. But for those who are ambivalent, the power of connection can make all the difference. The following are some steps to connect with a loved one or colleague hesitant to get vaccinated and keep an open dialogue: Adopt a stance of nonjudgmental listening. When you’re willing to listen to the other person, you may be surprised to find how much more likely they are to listen to you. Ask the person’s permission to share with them some information that you’ve learned about vaccination. If they give permission, then you can start to dive into some of the science and the facts, now with an audience that’s likely to be more receptive. Elicit from the other person their own thoughts on this. Find out what some of their own motivations for vaccination and preventing illness might be. Ask these things in an exploratory, open-ended way — building their motivation will work better if the ideas come from them, not you, because they know best what is important to them. For some people it might be a desire to travel more or to protect a loved one, but you can’t know for sure until you ask them.
Increased Stressors on Mental Health
Since the onset of the COVID-19 pandemic, Americans have reported increases in anxiety, depression and thoughts of suicide, Strunk says. Observing that the toll the pandemic takes on mental health increases daily, he points out, “Before the pandemic, 5% of employed workers reported poor or very poor mental health. Now, 18% of employed workers struggle with mental health issues.” While the reasons for the uptick in mental health conditions are wideranging, Chase points out that they include long-term effects of such pandemic-related issues as economic hardships, the fear of losing a job, and balancing remote work and remote schooling for the kids. In fact, the pandemic has contributed to a host of new stressors and pressures on mental health, observes Ellis. These range from increased
Be patient. Realize that the other person may not change their mind in one brief conversation, especially if they are very reluctant or worried about vaccination. By maintaining a stance of openness, respect and a willingness to listen, understand and share information with their permission, you foster the growth of connection and trust, and they may well be up for revisiting it with you. Use the power of attunement. Rather than getting caught up in a whirl of stress and anger about the other person’s vaccine hesitancy, you try to maintain your own stance of relaxed awareness. You listen to their thoughts and feelings, with an effort to understand. And you meet them where they are, by taking an interest in their own thoughts and their own motivations instead of immediately imposing your own. —Dr. Edward Brodkin, University of Pennsylvania tenured professor and Harvard M.D., and clinical researcher and therapist Ashley Pallathra, leading experts on human connection and authors of the best-selling book Missing Each Other: How to Cultivate Meaningful Connections (missingeachother.com), based on cutting-edge neuroscience research and years of clinical work
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OCT. 2021
27
feelings of detachment and loneliness to blurred lines between home and work. “For many of our employees who have children and larger families, working from home has been a challenge, especially if they have limited space to find peace and quiet to work,” she says. “Additionally, they are forced to wear multiple hats, like parent, employee and teacher, while never feeling like they have a moment to log out or recharge.” Employees with the opposite home situation reported a surprisingly similar reaction. “Our employees who live alone were most eager to return to the office earlier this year because many felt disconnected and lonely after working from home for so long.” Stress is coming not just from the pandemic but from returning to work after quarantine, Spight points out. Along with stresses such as isolation, loneliness, financial hardship, housing and food insecurity, interpersonal violence is also common. According to Spight, this has caused a 93% increase in adults seeking help with anxiety and depression. “Yet, tragically, 13.8 million adults have unmet mental health needs because of both cost and available providers.” Zebrowski cites additional sources that underscore the magnitude of the problem: The Kaiser Family Foundation reports that in January 2021, 41% of adults reported symptoms of anxiety and/or depressive disorder, and in a survey from the CDC, from June 2020, 13% of adults reported new or increased substance use due to coronavirus-related stress and 11% of adults reported thoughts of suicide in the past 30 days. “Now more than ever, mental health care needs to be normalized and employers should support their employees’ mental health the same way they do physical health,” Spight says, noting it’s not only the right thing to do but also can help businesses be more successful. “Depression and anxiety orders cost the global economy nearly $1 trillion each year in productivity alone,” he says. “Starting from a positive place in any situation is a great way to improve our personal mental health immediately,” says Doolittle, sharing his view that the place to start is appreciating things everyone in the United States has in common, “like freedom and equality … and a big one that is usually missed: small businesses. Small businesses are a part of what makes the United States unique and amazing, and it’s something that could help bring us together again.” Doolittle found that going fully remote last year initially gained his company a big increase in productivity, but the extended isolation has turned those results on their head. “The mixture of people being alone more, lots of negativity from the news, and a lack of a common goal as a community is driving people apart and probably a significant factor to people’s mental health right now. We’re working on establishing a mixture of working virtually and having an office or public place to collaborate.”
Programs Address Mental Health
The Mental Health Parity and Addiction Equity Act (known as the federal parity law), enacted in 2008, requires health plans to cover behavioral health services with the same or fewer restrictions than medical services. Noting that, previously, many employers relied heavily on their employee assistance programs and mental health coverages in healthcare plans when it came to support for employees’ mental health, Ellis says, “Since the pandemic, there’s been a shift from less passive offerings to more active
28
OCT. 2021
initiatives that seek to meet employees where they are — whether email, mobile apps, push notifications, etc. The emphasis today is much more on directly reaching out to employees and asking, ‘How are you feeling?’ rather than relying on the employee to say, ‘I need help.’” Zebrowski shares that BCBSAZ has also promoted the evidence-based program Mental Health First Aid class that helps employees learn how to recognize the signs and symptoms that may suggest a potential mental health challenge, how to listen nonjudgmentally and give reassurance to a person who may be experiencing a mental health challenge. Notably, the class works to reduce the stigma of mental health challenges. “Some of the signs of employees who may be in distress are a sense of withdrawal, a feeling of inadequacy and a change in their quality of work,” shares Chase, also noting there are myriad ways to help. She adds, “Through it all, COVID-19 has underscored the importance of integrated care, particularly as some employees have experienced a sense of isolation amid the transition to a remote workplace.” Zebrowski reports that BCBSAZ recently partnered with Quartet Health to help make it easier for patients with Blue Cross Blue Shield of Arizona health insurance, in Maricopa County, to quickly connect with mental health care services, including a therapist or psychiatrist. “This partnership extends BCBSAZ’s commitment to improving the health and wellness of all Arizonans, including an important focus on mental health,” she explains. It works through Quartet’s secure, virtual platform, which proactively screens BCBSAZ members who may need care; doctors in the network can seamlessly refer their adult patients to mental health care and offer access to timely appointments to in-network mental health providers. And Ellis reports that Lovitt & Touché launched a new mental health tool this summer called Modern Health that takes this new approach. App-driven, it provides for numerous touch points to engage employees in checking in about their well-being and mental health, and connects employees with help, if needed. “The program also provides self-guided resources on issues such as burnout and creating healthy habits,” Ellis says. Additionally, Lovitt & Touché offers a suite of mobile apps for employees focused on mental health, mindfulness, fitness and other areas as a way for employees to manage their unique stresses and challenges to mental health. MIND 24-7 offers Crisis Care, Express Care and Progression Care that address the workforce’s focused mental health needs. Spight describes Crisis Care as serving those who need more intense care, providing aroundthe-clock care until the patient feels ready to go home. Express Care is for those who struggle with a mental health issue and need to see a therapist or psychiatrist immediately. “With walk-ins, MIND 24-7’s team of expert providers can diagnose and develop a treatment plan, including any needed medications and coordinate any referrals or additional care with [the patient’s] providers of choice.” Progression Care is for those who are looking for but have yet to find a therapist, psychiatrist or long-term care option. “This fills the gap and provides outpatient therapy services while we find you your long-term providers and caregivers. “The MIND 24-7 model,” Spight explains, “requires a full multidisciplinary team led by a psychiatrist and fellow behavioral health medical professionals to determine the right care needs for each individual. MIND 24-7’s team works with you to solve some of the more difficult personal challenges — housing, nutrition and safety to enable you to focus on your mental health.”
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Purpose, Participation and Outcome
“To be most effective, mental wellness offerings should be holistic and address all types of needs that contribute to employee well-being,” Stunk says. He suggests employers prioritize focusing on the health of the whole body and employees’ mind-body connection. Chase reiterates that productive employees are those who adopt a healthy lifestyle, physically and mentally. And there is growing appreciation that this is as true for healthcare providers as for those in other business sectors — possibly even more so. “At Terros Health, we’ve learned that when our team members take care of themselves, they are better equipped to deliver exceptional care to those we serve,” Chase says. At the start of the pandemic, Terros Health stepped up its efforts by creating a “Caring for the Caregivers” program to provide added support to its workers on the front lines and in positions behind the scenes. Through the program, care teams composed of licensed professional counselors and members of Terros’s mobile crisis staff visited each of its health centers to provide positive assurance to employees that everyone would get through
this challenging time. “We offered words and small gifts of appreciation to our employees, and we served as a constant source of support.” Additionally, she says, “We also make a point to have fun, with monthly teambuilding exercises, as well as physical and mental health challenges as part of a larger wellness focus. And we lead meditation and mindfulness sessions to help people take time to breathe.” There are other options and opportunities, but Strunk emphasizes that, before introducing new benefits, it’s important to understand how current offerings are being utilized to find potential gaps. “As with any benefits changes, it’s crucial to share those updates with employees so they’re aware of all available resources. Educating employees to take more ownership of their mental health and well-being helps reduce costs for them and the organization overall.” Blue Cross Blue Shield of Arizona azblue.com Business Warrior businesswarrior.com Lovitt & Touché, A Marsh & McLennan Agency LLC Company lovitt-touche.com MIND 24-7 mind24-7.com Strunk Insurance Group strunkgroup.com Terros Health terroshealth.org
Healthcare Worker Burnout Affects Everyone Most business owners and managers understand the importance of workplace wellness and how that affects productivity. But what happens when the healthcare workers providing care to the employees are not well? Recently, it seems as though the discussion about healthcare workers and the pandemic doesn’t occur without the mention of “burnout.” World Psychiatry defines burnout as “a psychological syndrome emerging as a prolonged response to chronic interpersonal stressors on the job.” But what does this really mean for healthcare workers, their patients and our communities at large? And, most importantly, how do we (as healthcare workers) help
More concerning is that stress scores were
address active burnout. Here are some strategies,
ourselves, our colleagues and the healthcare system
highest among women and Black and Latinx
some of which are specific to healthcare workers and
overcome these challenges so that we may continue
healthcare workers.
others that may be appropriate for everyone:
to take care of our patients without sacrificing our own needs? To put the current status into perspective,
Knowing the risks of burnout and mental health issues for healthcare workers, it’s important to know how to recognize the signs in yourself or a healthcare
the American Medical Association and Hennepin
worker you know. One may be experiencing an
Healthcare in Minneapolis recently published a
overwhelming sense of exhaustion, feelings of
survey of 20,947 physicians and other workers
cynicism and detachment from the job, and a sense
(e.g., nurses, medical assistants, social workers,
of ineffectiveness and lack of accomplishment.
respiratory therapists, etc.) between May 28 and
Other signs and symptoms may include, but
October 1, 2020, regarding the pandemic, stress, and
are not limited to, significant changes in appetite
burnout. They found that:
(increase or decrease), trouble falling and/or staying
• 61% feared exposing themselves or their families to COVID-19, • 38% self-reported experiencing anxiety or depression,
asleep, increase in using drugs or alcohol, loss of pleasure in doing things that used to be enjoyable, and feeling a sense of hopelessness or feeling down. While it feels overwhelming to address the stress
• 43% suffered from work overload and
that is occurring due to the pandemic, it is possible
• 49% had burnout.
for healthcare to prevent the onset of burnout and
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• Obtain social support by joining a peer support group. • Utilize relaxation strategies (mindfulness, meditation, yoga, deep breathing). • Prioritize sleeping, eating nutritiously, and exercising. • Seek counseling with mental health counselors who specialize in helping helpers. As the pandemic heads into its second year of destruction, it’s imperative that we support our healthcare workers and address the chronic stress that we’ve been experiencing. And, like the old saying goes, “If not now, when?” —Dr. Kristen Ray, DBH, LPC, vice president of wellness at Bayless Integrated Healthcare (www.baylesshealthcare.com)
OCT. 2021
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DECISIONS THAT MATTER
What’s the Secret for a Successful Family-Run Business?
Mixing personal and business needs to be carefully coordinated by Liz Agboola
Liz Agboola is the CEO of three family-run organizations: Senior Placement Services, Moses Behavioral Care and FreshStart. She is a mental health and homelessness activist and philanthropist who has successfully spearheaded community efforts to ensure suitable housing is available for vulnerable veterans and homeless individuals who are unable to live independently due to medical or mental health conditions. She holds a Master’s in Education and Master of Business Administration. FreshStart freshstartagency.com Moses Behavioral Care mosesbhcare.com Senior Placement AZ seniorplacementaz.org
OCT. 2021
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Being an entrepreneur is difficult enough on its own, but adding a family to the mix creates another layer of challenges. Many family businesses struggle for a variety of reasons, including personal and professional conflicts, management hurdles, emotional stressors, lack of structure and a general loss of interest from one generation to the next. While family businesses encounter the same issues as organizations that aren’t run by relatives, confronting challenging family dynamics adds an extra layer of complexity and can be far more difficult than managing a “conventional” system. Below are tips on how to successfully grow a family business, avoid burnout and keep everyone on track and (somewhat) happy. Establish open, honest and consistent communication channels. Communication is essential in any business or relationship. Clear communication is critical to the success of a family business. Don’t make the mistake of assuming that family members know each other so well that no formal discussions are required. One of the reasons family businesses fail in today’s competitive business world is because of this. Consider holding weekly meetings to discuss progress, action items and any conflicts that may arise. Establish a system for members who are late or do not show up. ($20 for every five minutes late; they pick up the tab at the next family function; he/she dresses up as Santa for the next family function; and so on).
Define roles and duties clearly. Going into business with family may be difficult, and the lines between love and business can be blurry at best. It’s also common for family members to get sucked into a family business without having a clear idea of their long-term gain. It’s critical to explain individual roles and duties, clearly define expectations and ensure that everyone is on the same page to avoid wounded emotions or misinterpretation. Before signing on the dotted line, make sure to write formal job descriptions, define compensation and iron out every last detail. Having a clear plan and knowing who will be responsible for what will assist in getting the business up and running and will allow everyone to spend less time worrying about who will get the corner office and more time servicing the client. Hire for the job, not the individual. Many family-owned firms make the mistake of putting a family member into a role for which they lack the desire, credentials or interest. To no one’s surprise, this model rarely works. Instead, employment positions should be filled by someone who has the necessary credentials, expertise and track record of accomplishment. For talents and expertise that family members lack, the most successful family businesses turn to an outside talent pool. If there is a family member who is interested in the family business, bring them into an entry-level position and have them work their way up the ladder by demonstrating their enthusiasm to learn. For those who desire positions they are
While family businesses encounter the same issues as organizations that aren’t run by relatives, confronting challenging family dynamics adds an extra layer of complexity and can be far more difficult than managing a “conventional” system.
STRATEGIES FOR WORKING REMOTELY currently unqualified for, have them shadow those who are qualified so they are exposed to that line of business. Make a special effort to treat non-family personnel fairly. In a family business, it’s normal for non-family employees to believe they’ll never grow or enjoy the benefits that family members do. Because non-family personnel are necessary for a family business to flourish and develop, successful family-owned firms will treat everyone like family, whether they are related or not. Establish certain boundaries. It’s simple for family members involved in a firm to discuss shop 24 hours a day, seven days a week. However, combining work and personal life too much might lead to burnout. Setting limits is crucial to creating and maintaining success, as leaders of thriving family-owned businesses know. I propose keeping family matters out of the boardroom and limiting business discussions outside of the office as much as feasible. It’s easier said than done, therefore appointing a point person to ensure that everyone remembers this is vital. Be logical rather than emotional. When dealing with a family member, it can be difficult to maintain objectivity. Feelings can be quickly hurt, and it’s a typical reaction to become defensive with someone close rather than taking the time to consider the situation from a logical standpoint. Ask yourself, “How would I handle this scenario if I were dealing with a non-family member?” before coming to a decision. Asking oneself this question each time a decision needs to be made will train one’s mind to think logically, making it simpler to deal with more emotional circumstances in the future. Be objective. In a business, disagreements are unavoidable, no matter how much people love each other. If a workplace quarrel arises, it’s important to keep things formal and handle it like a business. Family spats, on the other hand, should be kept at home. It’s best to encourage family members to iron out their differences outside the office and avoid getting involved. In a family business, a common problem is putting too much emphasis on “family” and not enough on “business.” It’s crucial to present a united face in the workplace. Early on, involve youngsters in the family business. Allow younger family members to acquire a taste of entrepreneurship by having them work for the family firm during their summer vacations or as a part-time employment (aka, free labor). Ascertain that they have the opportunity to learn about various elements of the organization. Getting hands-on experience will help students decide whether or not they want to work in the industry when they finish their studies. Seek outside help frequently. Outside counsel are sought by successful businesses. It’s critical to keep learning, evolving and asking others for guidance on how to get to the next stage of success, whether it’s to help the business detect blind spots, set goals or work through difficult interpersonal issues. Outside of the office, make time for each other. All work and no play will actually have a negative impact on the business and relationships with family members. Make time for true family time and simply enjoy and appreciate one another as people. The bottom line is that we can have a lot of friends but only a limited number of family members. Ruining family relationships over trivial disagreements isn’t worth it in the end. In leading a family business, it’s important to make sure to maintain regular, clear communication and discuss issues even if they are minor. When they get big and everyone gets emotional, it’s difficult to agree on much. For families that do not constantly remind each other that they are loved and appreciated, start with a simple, “I love you” at the end of every phone call. It has a big impact
Navigating Your Journey We’ve all been in those moments when we feel stuck. It feels like life is just happening to us. Even in those hardest moments, there are always opportunities to take control and navigate purposefully toward our goals. In Navigating Your Journey, author Vicki Updike shares her personal experiences and lessons learned as she continues to help women in their careers. This book does not attempt to define what it means to “have it all.” Rather, it encourages women to define their own, personal “all” and helps them achieve that goal. One’s journey can be defined only by oneself. No one else can define it for another. Navigating Your Journey: Actionable Leadership Lessons for Women Who Want to Have It All Vicki Updike
136 pages
Advantage Media
Available 10/26/2021
$15.99
Skin in the Game Dermalogica founder Jane Wurwand shows readers how to turn their unique traits and experiences —especially the ones they may think are their biggest setbacks — into the tools needed to make their dreams a reality. This is not a memoir. By sharing her journey, Jane offers a guide to readers of how they can find themselves and their purpose by harnessing the resilience and creativity within themselves to drive their own success. She shares lessons learned, from starting a business on $14,000 of self-funding to growing a multi-million-dollar international brand with a cult-like following. Business leaders, professionals, entrepreneurs — no one needs to feel stuck or frustrated any longer. Skin in the Game: Everything You Need is Already Inside You Jane Wurwand
240 pages
HarperCollins Leadership
Available 10/26/2021
$27.99
Right Within In workplaces nationwide, women of color need frank talk and honest advice on how to deal with microaggressions, heal from racialized trauma, and find relief from invisible workplace burdens. Filled with Minda Harts’s signature wit and warmth, Right Within offers strategies for women of color to speak up during racialized moments with managers and clients, work through past triggers they may not even know still cause pain, and reframe past career disappointments as opportunities to grow into a new path. Harts includes advice from therapists and faith leaders of color on a full range of ways to heal. Right Within will help women of color strengthen their resolve across corporate America, ensuring that we can all, finally, rise together. Right Within: How to Heal from Racial Trauma in the Workplace Minda Harts Seal Press
In leading a family business, it’s important to make sure to maintain regular, clear communication and discuss issues even if they are minor. When they get big and everyone gets emotional, it’s difficult to agree on much.
288 pages Available 10/5/2021
$27
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En Negocios
ECONOMIA / ECONOMY
POR EDGAR R. OLIVO
Negocios Latinos: Cómo cerrar la brecha del bienestar económico entre generaciones una vez por todas por Edgar R. Olivo
Edgar R. Olivo es un educador empresarial bilingüe, asesor económico y colaborador de varios medios de comunicación. Es apasionado por la educación y comunidad. Está certificado en finanzas y análisis de datos y posee un título en negocios de la Universidad Estatal de Arizona.
Edgar R. Olivo is a bilingual business educator, economic advisor and contributor for several media outlets. He’s a nonprofit executive who is passionate about education. He is certified in finance and data analytics and holds a business degree from Arizona State University.
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Un factor importante que contribuye a la desigualdad económica en los Estados Unidos es la amplia e implacable disparidad racial y étnica que se encuentra en la propiedad de pequeñas empresas. Según el informe de la Administración de Pequeñas Empresas sobre la propiedad de empresas latinas, las oportunidades bloqueadas para que las minorías inicien y desarrollen negocios generan pérdidas en la eficiencia económica, especialmente a través de sus efectos sobre la limitación de la creación de empleo, la acumulación de bien estar económico, la innovación y el crecimiento económico local. ¿Cómo podemos establecer y acelerar la recuperación equitativa de las pequeñas empresas y estimular las oportunidades de crecimiento a largo plazo para las empresas y los empresarios latinos? Una investigación por parte de Latinos and Society del Instituto Aspen encontró que hay cinco áreas clave: 1. Diversidad de proveedores: Alineación de las adquisiciones con los objetivos de diversidad. 2. Apoyo empresarial: Se necesitan grupos de apoyo empresarial para ayudar en la formación y el crecimiento. 3. Acceso al capital: Los empresarios necesitan una financiación continua para sus productos y servicios.
4. Corredores comerciales: Se fomenta las geografías y comunidades locales que se pueden aprovechar. 5. Crecimiento y diversificación del sector: Crear estrategias de desarrollo económico que fomenten una fuerte diversidad del sector. Las empresas de propiedad de latinos son un mercado sin explotar. Según la misma investigación de Aspen, el 18% de la población de los Estados Unidos es latina (60.5 millones), y se prevé que constituyan el 26% para el 2050 (100 millones de latinos). Sin embargo, solo el 5% de las empresas de los empleadores son propiedad de latinos y sus ingresos son más pequeños. Si estas empresas crecieran tan rápido como el promedio de los EE. UU., podrían agregar $1.4 billones a la economía de los EE. UU. (agregando un 8% a la economía de los EE. UU. de $18 billones). Este es un momento para liderar un gran cambio porque la propiedad de una empresa es una forma fundamental de generar bien estar económico en la comunidad y en lo personal. Sin embargo, existen importantes brechas étnicas en el ecosistema empresarial, y COVID-19 golpeó más a las empresas latinas.
Según la SBA, existen grandes diferencias en las tasas de propiedad de empresas y los ingresos entre grupos minoritarios y no minoritarios. Esas diferencias han persistido en el tiempo y pueden ser un inhibidor del crecimiento económico. Los empresarios latinos en los EE. UU. hacen contribuciones importantes à la economía, generando $62.5 mil millones en ingresos comerciales.
ENGLISH TRANSLATION Según la Encuesta de Crédito para Pequeñas Empresas de 2021 realizada por la Reserva Federal de EE. UU., la pandemia de COVID-19 ha afectado profundamente a las comunidades de color y las pequeñas empresas de color, en muchos casos en mayor medida que sus homólogos blancos. Aproximadamente alrededor del 30% de las empresas propiedad de latinos permanecen cerradas hasta el día de hoy como resultado de la pandemia. Tanto para los negocios de propiedad de latinos como de blancos, los dirigidos por mujeres son los más afectados negativamente por la pandemia. El Instituto Aspen encontró que el doble de empresas lideradas por latinas experimentó cierres en comparación con las empresas lideradas por latinos (30% contra 16%). Los despidos también fueron más altos para las empresas lideradas por latinas (17% frente al 12%). Esta brecha de género también se mantiene entre las empresas propiedad de mujeres (WOB por sus siglas en ingles). Solo alrededor de 1 de cada 10 empresas propiedad de latinas tiene suficiente efectivo disponible para sobrevivir más de 6 meses en comparación con 2 de cada 10 empresas de propiedad latina. Esta brecha es menos pronunciada para los WOB. El crecimiento de las empresas propiedad de latinos puede reducir la brecha de bien estar económico en tres áreas clave: 1. Oportunidades de trabajo: La evidencia muestra que las empresas propiedad de latinos contratan principalmente a latinos. 2. Bien estar individual: Los propietarios de negocios latinos tienen más bien estar económico que sus contrapartes que no son dueños de negocios. 3. Movilidad social: El espíritu empresarial se considera un vehículo para la movilidad social ascendente, y los empresarios experimentan una mayor movilidad ascendente que los trabajadores. Estas estadísticas obstinadas no han mejorado en muchas décadas y requieren que todos los socios en todos los niveles de poder dentro del desarrollo económico se comprometan seriamente con un ecosistema de recursos empresariales diverso, equitativo y accesible. Las agencias financiadas por el gobierno como la Administración de Pequeñas Empresas y las organizaciones sin fines de lucro de negocios locales deberán analizar de cerca cómo cerrar la brecha a través de sus ofertas y crear un camino real sostenible, resiliente e inclusivo para crear más bien estar económico intergeneracional para todas las comunidades de color.
BY EDGAR R. OLIVO
Latino Business Ownership: How to Close the Gap on Intergenerational Wealth Once and for All by Edgar R. Olivo An important contributor to economic inequality in the United States is the wide and relentless racial and ethnic disparity found in small business ownership. According to the Small Business Administration’s report on Latino Business Ownership, blocked opportunities for minorities to start and grow businesses create losses in economic efficiency, especially through their effects on limiting job creation, wealth accumulation, innovation and local economic growth. How do you stabilize and accelerate equitable small business recovery, and stimulate opportunities for long-term growth for Latino businesses and entrepreneurs? The Aspen Institute’s Latinos and Society research found that there are five key areas: 1. Supplier Diversity: Aligning procurement with diversity goals. 2. Entrepreneurial Support: Business support groups are needed to help formation and growth. 3. Capital Access: Entrepreneurs need a continuum of funding for their products and services. 4. Commercial Corridors: Foster local geographies and communities that can be leveraged. 5. Sector Growth & Diversification: Create economic development strategies that foster strong sector diversity. Latino-owned businesses is an untapped market. According to the same research by Aspen, 18% of the U.S. population is Latino (60.5 million), and they are projected to make up 26% by 2050 (100 million Latinos). Yet only 5% of employer businesses are owned by Latinos, and they are smaller in revenue size. If these businesses grew as fast as the U.S. average, they could add $1.4 trillion to the U.S. economy (adding 8% to the $18 trillion U.S. economy). This is a moment for leading big change because business ownership is a critical way to build community and individual wealth. Yet, there are significant ethnic gaps in the business ecosystem, and COVID-19 hit Latino-owned businesses harder. According to the 2021 Small Business Credit Survey by the U.S. Federal Reserve, the COVID-19 pandemic has deeply impacted communities of color and small businesses of color, in many cases to a greater extent than their white counterparts. Roughly about 30% of Latino-owned businesses remain closed to this day as a result of the pandemic. For both Latino- and white-owned businesses, those led by women are most negatively impacted by the pandemic. The Aspen Institute found that twice as many Latina-led companies experienced closure compared to Latino-led businesses (30% versus 16%). Layoffs were also higher for Latina-led companies (17% versus 12%). This gender gap holds among woman-owned businesses (WOBs) as well. Only about 1 in 10 Latina-owned businesses have enough cash on hand to survive beyond six months compared to two in 10 Latino-owned businesses. This gap is less pronounced for WOBs. Growing Latino-owned businesses can reduce the ethnic wealth gap in three key areas: 1. Job Opportunities: Evidence shows that Latino-owned businesses hire mainly Latinos. 2. Individual Wealth: Latino business owners have more wealth than their counterparts who are not business owners. 3. Social Mobility: Entrepreneurship is considered a vehicle for upward social mobility, with entrepreneurs experiencing higher upward mobility than workers. These stubborn statistics have not improved in many decades, and they require every partner in all levels of power within economic development to make a serious commitment to a diverse, equitable and accessible entrepreneurial resource ecosystem. Government-funded agencies like the Small Business Administration and local business nonprofits will need to look closely at how to close the gap through their offerings and create a real sustainable, resilient and inclusive path to create more intergenerational wealth for all communities of color.
According to the SBA, large differences in business ownership rates and income exist between minority groups and non-minorities. Those differences have persisted over time and may be an inhibitor of economic growth. Latino entrepreneurs in the U.S. make important contributions to the economy, generating $62.5 billion in business income.
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Economy
DEVELOPING & GROWING BUSINESS DYNAMICS
Tax Tips in Prep for Next Season PPP loans, operating agreements and more by Phil Wuollet
Small businesses can be complicated entities so even those that have already filed their taxes for this year can start planning ahead for next year. In fact, it is important to start thinking about potential tax issues and benefits, whether preparing for next tax season or filing an extension for this year. Doing so will save a business money — and can save it from an unwanted audit if issues are caught early.
POTENTIAL CHANGES TO THE TAX LAW COULD OCCUR
Assisting extensively with Arizona smallbusiness owners, Phil Wuollet, CPA, is a partner at Epstein Schneider, PLC, an accounting firm in Scottsdale, Ariz. The staff at Epstein and Schneider helps clients with tax compliance as well as developing forward-thinking strategies for reducing and deferring taxes. Note: the information is this article is intended to be general education and not intended to be tax advice. Businesses should consult their tax advisor to determine the best strategy for their specific facts. epsteinschneider.com
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No significant changes to tax law have been announced, but it is important to know that the Biden administration signaled it would like to make significant changes to United States tax code. While there is no guarantee that changes to the tax code will occur, it’s a topic businesses should discuss with their accountant. There is an expectation that capital gains tax, as well as ordinary top tax rates, will increase in 2021 or 2022. This means businesses need to start planning a tax strategy now. Planning means talking with an accountant about potentially reporting income early in 2021 and deferring certain deductions in 2022. Properly timing when to report income and use deductions can save a business a lot of money if tax codes do change. There are no one-size-fits-all solutions for tax filings, so this advice won’t work for everyone but will apply to many small businesses. In the case of increases in tax rates, it may be wise for business to forgo any advanced depreciation until 2022 and just take a regular table depreciation. This could save them more money in the future. With the possibility of new tax laws, it may be wise for businesses to hold off on a cost segregation study until 2022. A cost segregation study identifies and reclassifies personal property assets to shorten depreciation time for tax purposes. This in turn reduces income tax obligations for the year. For those who are forgoing advanced depreciation in anticipation of a higher tax rate in the future, a cost segregation study is not needed this upcoming year.
UNDERSTAND PPP LOANS
The COVID-19 pandemic saw an unprecedented amount of financial assistance for business owners. The biggest form of assistance was the Paycheck Protection Program loan. This loan would be forgiven and turned into a tax-free grant as long as the loan was used to maintain payroll and make rent or mortgage payments for the business. It’s important to know requirements for PPP loans to ensure they will be forgiven. Businesses receive full loan forgiveness as long as they maintained employee compensation levels, spent at least 60% of that money on payroll, and used the rest of the money for business rent, lease or utilities. The point of the PPP loans was to enable businesses to keep employees and the building they work in. Businesses that did not use the money for these
purposes are required to pay back a percentage of that money. The most recent batch of PPP loans was eligible only for businesses with fewer than 300 employees, and they had to demonstrate they had a 24% reduction in gross receipts in 2019 and 2020. It is vital that business owners who accepted a PPP loan understand the terms and conditions of that loan. Not using the loan correctly could lead to their business being liable for some or even all the outstanding debt.
CAPITAL ACCOUNTS MUST BE MANAGED BASED ON THE OPERATING AGREEMENT
Businesses with multiple owners are a common occurrence. Multiple financers makes it easier to raise capital and allows people with a variety of different skills to help grow the business. Multiple partners in a business means there must be an operating agreement and the tax filings must match that operating agreement. Capital accounts should track the money each investor contributed, track undistributed preferred returns, and track those distributions based on how they were written in the operating agreement. Business owners in a limited partnership can sometimes do a debt finance distribution. This means the partnership secures debt then distributes a portion of the debt proceeds to the owners. Businesses that decide to do a distribution may be able to deduct some of that interest but, generally, can’t deduct all of it. It is also worth noting that smaller companies — any business whose gross receipts are $26 million or less — are exempt from the business interest expense limitations. However, this exception may not apply if the business is considered a tax shelter. Businesses may be considered a tax shelter if more than 35% of its losses are allocated to limited partners. It’s important business owners know their business’s operating agreement. It will help them out next tax season.
Businesses receive full PPP loan forgiveness as long as they maintained employee compensation levels, spent at least 60% of that money on payroll, and used the rest of the money for business rent, lease or utilities.
LAW MATTERS TO BUSINESS
Put Your Plan on Paper – Avoid Partnership Disputes Later
What are the most important things to know before starting a partnership? by Justin M. Brandt
Business partnerships, like marriages, can be a lifetime commitment, so choosing the right partner is an extremely important decision and should take significant vetting. Entering into business with someone who does not share the same vision, goals and strategic alignment can lead to unwanted issues in the future. It can, unfortunately, become costly and time consuming. There are a number of reasons why partnerships fail, but the most common reason is a falling out from poor planning — meaning not doing the due diligence prior to creating the partnership. First and foremost, it’s important to establish a strong and reliable relationship prior to creating a formal business partnership. Finding someone who has similar core values is key to forming a partnership for long-term success. Ensuring a partnership that is more aligned in the beginning will create a more unified front when dealing with outside parties. Also, understanding that people will sometimes take different paths toward the same objective is important as well — a different perspective can challenge participants in the right ways toward a better outcome for the company. Without being able to view an opposing perspective, creativity and innovation is thwarted and ultimately stalls the growth of the business. Next, investing in outside general counsel who will represent the newly formed company (as opposed to the individual principals) is important to keep the interests of the business at the forefront. Hiring counsel to memorialize the partnership should be viewed as an investment. Indeed, interests should be protected at the outset, and having an experienced lawyer prepare a comprehensive agreement that outlines each party’s rights and obligations will help mitigate potential partnership disputes down the road. At a minimum, the agreement should articulate a clear framework and iron out the details on responsibilities and who’s doing what within the company. Memorializing a partnership is not a one-size-fits-all endeavor. Template agreements should be avoided as they almost always fail to address matters unique to the business. For example, template agreements generally do not have
a framework for how issues should be addressed as the company grows and evolves — a topic often overlooked when a partnership is first formed. Another important component of any viable business partnership is communication. That might sound cliché, but the power of effective communication should not be overlooked. Most disputes (if not all) can be avoided or significantly mitigated if partners communicated better. Disputes often occur when partners keep their feelings bottled up and let differences fester. Partners who are able to check their egos at the door and foster transparency with each other are far more likely to succeed, so it’s important to not make the mistake of putting effective communication on the back-burner. So what’s the quickest way to end a dispute? Not shying away from conversations and being sure to take the time to have the discussions face-to-face, especially when tough decisions need to be made. In-person discussions will be more effective. It is important to keep the interests of the company at the forefront and not to make it personal, or it can go sideways fast. If things start to turn, partners should consider engaging the company’s lawyer to serve as a mediator between the parties — especially if the partners are not communicating well. If partners find they are at a stalemate and unable to advance the values and the mission of the company, it might be time to look for an exit strategy. One thing to always remember is that the business is the number one priority and should always come first. Everything should be put in writing and tailored to the company. Potential partners should take the time to get to know one another before creating an alliance. They should keep an eye out for any red flags, including any financial history issues or prior disputes with former partnerships. And partners should always keep an honest and open relationship that fosters respect and transparency. Most disputes can be worked out through conversation if caught early. Bianchi & Brandt bianchibrandt.com
Partnership disputes in any industry continue to be costly and time consuming. Nine times out of 10, disputes in the cannabis industry come from partnership issues, and can easily be avoided.
Award-winning business attorney and legal pioneer Justin M. Brandt is partner and shareholder of Bianchi & Brandt, a cannabisspecific law firm. He represents clients throughout all stages of litigation, handling a variety of business and corporate transactions, and advising clients on various day-to-day issues surrounding their business operations and compliance. Brandt also routinely serves as outside general counsel for various businesses throughout the country, leveraging his accounting and business economics background to guide clients through a variety of business issues with legal implications.
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Social Impact
BUSINESS GIVES BACK
Ritoch Powell Associates Demonstrates the Power of Partnership The Hance Park Conservancy Sixth Annual “Noche en Blanco” multicultural community dinner in celebration of Hance Park (116 E. Moreland Street in Phoenix) will take place on Saturday, October 30, from 5:00 to 10:00 p.m. The event is produced by the Hance Park Conservancy in partnership with the City of Phoenix Parks and Recreation Department and is a night of community fun where guests are invited to dress in white costume cocktail attire, enjoy live entertainment and dine under the stars on the lush east lawn of Hance Park. hanceparkconservancy.org
Tyler Butler is the head of Corporate Responsibility for Aventiv Technologies, where she leads programs that positively impact society. She is also founder and principal of 11Eleven Consulting and is often cited as a subjectmatter expert by Forbes, SHRM, Entrepreneur, U.S. News and World Report and more. 11elevenconsulting.com
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RPA’s participation fuels Hance Park’s Noche en Blanco by Tyler Butler
The hallmark of a great social impact partnership lies in the synergy between the cause and the company. When missions align, passions prevail and communities connect, powerful change can be possible. And this is most certainly the case between Ritoch Powell Associates and its support of the Hance Park Conservancy. As an award-winning civil engineering and surveying firm that specializes in transportation, public works, renewable energy and private development projects, RPA has good reason to focus on the communities it serves. After all, this is not only the firm’s purpose, but it’s the firm’s business. With a focus on arts, parks and public spaces, RPA is making its mark both economically and philanthropically. Through its grassroots approach to corporate citizenship, the firm engages employees and activates their interests through local support of worthy causes. For RPA, this strategy serves to inspire hyper-local connections that enhance the communities where it operates. And for Ritoch Powell Associates, its direct connections with the community have been the foundation of its corporate culture and have inspired the credo its leaders and employees live by: “Doing well by doing good.” RPA believes there is more than just taking pride in the quality of its work; there’s an aspiration to leave a lasting legacy that benefits the communities it works within. The firm enjoys a reputation for not only delivering services, but also for the value it places on both its people and its dependability. With its headquarters located in Phoenix’s bustling downtown, its offices are located within reach of the light rail, university campuses, parks and arts venues, providing everyone in the firm ample ways to connect to their community. The Hance Park Conservancy is but one of these close and precious partnerships.
RPA’s support of Hance Park has been a natural fit for the firm. Founded in 2010, HPC was formed to promote and advocate for the redevelopment of Margaret T. Hance Park in Downtown Phoenix. Its board of trustees is comprised of community, city and business leaders committed to the mission to activate and promote the creative use of this regional public space in support of a vibrant arts and cultural experience. RPA’s director of business development, Dorina Bustamante, has leveraged the firm’s employee volunteer program to support her role on the Hance Park Conservancy Board of Trustees and as chair of Noche en Blanco Gala. Support like that provided by Bustamante has enabled tremendous growth of the Noche en Blanco event and the HPC organization. In turn, HPC has been instrumental in developing the Hance Park Master Plan and supports the fundraising effort of the Hance Park Partner Coalition to fund the implementation of the plan and foster collaborations in support of sustainability, community programming and advancement of the park. “Community engagement and supporting causes that benefit all people, like parks and public spaces, are at the cornerstone of RPA’s company culture, and part of the work we do as civil engineers,” shares Karl Obergh, P.E., RPA founder. “The annual Noche en Blanco multi-cultural community dinner to benefit the Hance Park Conservancy is a perfect example of a special event raising awareness about an important organization supporting a great cause to preserve and enhance Hance Park.” Noche en Blanco takes place this year on Saturday, October 30, along with the dinner for Dignity to benefit the Central Arizona Shelter Services. This elegant and culturally diverse experience is inspired by a similar “dinner in white” that started in Paris more than 30 years ago and features long rows of tables draped in white linens, with strings of sparkling lights and stars overhead. Arizona’s version similarly features guests clad in white garb along with extravagantly decorated tables and expertly created picnic baskets. One hundred percent of the proceeds from the event will benefit the Hance Park Conservancy. Funds raised will be dedicated to the sustainability and future of Hance Park, ensuring its longevity so it can be a treasured space for generations to come.
Hance Park Conservancy was formed in 2010 to promote and advocate for the redevelopment of Margaret T. Hance Park in Downtown Phoenix as part of a vibrant arts and cultural experience.
Photos courtesy of Hance Park Conservancy
NOCHE EN BLANCO
INNOVATIONS FOR BUSINESS
Hyperautomation Is Useless if Businesses Don’t Invest in a Solid Foundation And, surprisingly, a big part of that foundation is people Kevin Buckley is a business automation executive with Technologent. He has more than 25 years’ experience as a technical and business consultant with a proven track record of delivering technical and business value in all numerous industries. He is skilled in understanding business workflow processes, robotic process automation, IT, business transformation, cloud enablement and digital transformation. technologent.com
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by Kevin Buckley
Hyperautomation is an idea being discussed and deployed by both the business and IT side of many businesses, large and small. In many cases, hyperautomation means different things to each group in terms of expected outcomes. I am often asked where and how business should invest to provide a solid foundation for hyperautomation. I think the answer may come as a surprise. Hint: It’s not technology. But first, let’s start with a definition of hyperautomation, because it can mean different things to different folks. Since Gartner named hyperautomation as the No. 1 trend on its list of top 10 strategic technology trends for 2021, I like to use its definition because Gartner is a source that both business and IT trust and rely on. Gartner defines hyperautomation this way: Hyperautomation is a business-driven, disciplined approach that organizations use to rapidly identify, vet, and automate as many business and IT processes as possible.
Hyperautomation is a business-driven, disciplined approach that organizations use to rapidly identify, vet, and automate as many business and IT processes as possible.
Hyperautomation involves the orchestrated use of multiple technologies, tools, or platforms, including: • Artificial intelligence (AI) • Machine learning (ML) • Event-driven software architecture • Robotic process automation (RPA) • Business process management (BPM) and intelligent business process management suites (iBPMS) • Integration platform as a service (iPaaS) • Low-code/no-code tools • Packaged software • Other types of decision, process, and task automation tools Much of this may, in fact, look like technology. But is that where the investment needs to be? We have found that most companies are already heavily invested in underlying
technology infrastructure, platforms and applications. In fact, most companies have too much of an investment in technology, something we call technical debt. We actually try to help companies reduce that technical debt. Many companies already have these tools or capabilities listed above. Incremental add-on technology that may be needed such as RPA or Machine Learning software is relatively inexpensive compared to the value and savings provided to the business. So, when it comes to hyperautomation, businesses may not necessarily need to make traditional technical investments. They have probably already made them! So, where do businesses need to invest to have a solid foundation for success in the cost and efficiency savings promised by hyperautomation? Two areas: 1.) They need to invest senior executive time to build a top-down strategy around business hyperautomation. 2.) They need to invest in their workers. “Wait, I thought automation will save money by eliminating jobs,” says almost everyone. People are still the greatest asset most companies have. Most employees want to make a positive difference for the companies they work for, but many don’t get the opportunity to do so. If companies try to force automation into the business without including and educating employees in the process, as well as getting their input, almost any attempt to do hyperautomation at scale will fail. And that is because the reasons for automation are not clearly articulated to the lines of business and the workers within those LoBs. I’ve outlined below four areas where I feel companies need to invest in advance of a hyperautomation journey in order to have a solid cultural
Most workers don’t know much about automation, which often leads to misconceptions about their jobs going away. Their jobs are not going away. The mundane tasks they do repeatedly are going away.
foundation that will ensure the business can improve profitability, customer satisfaction, efficiencies and compete in emerging markets. And it all involves getting the employees behind the effort. Get executive sponsorship. If automation is a corporate priority, then it should gain sponsorship from the CEO or CFO level. By doing this, it instills confidence in the initiative and ensures it remains a top priority. Individual departments and business functions will take on specific responsibility. But the overarching vison and sponsorship will assure greater success and expansion. Get stakeholders in early. The automation journey can seem daunting. In addition to senior leadership, businesses will need to map out who will be affected by automation. Typically, it will include project teams, department heads, IT, process owners, compliance and cybersecurity teams. By enlisting stakeholders early, businesses can deputize them as their automation ambassadors. This will also help build out a roadmap with input from stakeholders to assure additional value to the project. Get employee buy in! Communicate, communicate, communicate. Focus on the people, not just the technology and strategy. Many times, as mentioned above, the employees feel that the bots are stealing their jobs and they resist. Most workers don’t know much about automation, which often leads to misconceptions about their jobs going away. Their jobs are not going away. The mundane tasks they do repeatedly are going away. We have found that employees who learn that they are being given an opportunity to focus on higher-value tasks end up supporting the initiative and increase company morale. I often ask employees, “If you didn’t have to fill out that form or update that spreadsheet 30 times a day, what would you like to be doing for the company?” The answer would always be around using their skills to advance the business, be more productive and add value. They want to do more. Invest in building skills. Provide opportunities for training, participation in forums and achieving certifications. Encourage and democratize automation through employee-led development activities. Establish and get employees to participate in ideathons that allow them the opportunity to contribute their ideas on what needs to be automated to improve their job functions. This also contributes to job retention, as employees feel the company is investing in their growth and success. Upskilling and re-skilling employees is a way to improve work satisfaction and a great way for companies to retain talent. Implement a CoE Model. Setting up a Center of Excellence (CoE), where the stakeholders and expertise reside, can help businesses scale and roll out more effectively. It will drive strategy, subject matter expertise, messaging, change control, operating models, technology solutions and people skills. The CoE is the best way to handle governance and implement risk controls. This model helps in scaling the automation objectives and ensuring an endto-end view. Conclusion. A clear take away we have seen is that hyperautomation requires a different approach. Traditional companies might approach this initiative as they have other business initiatives: slowly and carefully and without employee input or interaction. But to reap the benefits of automation at scale, companies will require more inclusivity and ambition. By following the suggested guidelines above, an organization can prepare itself for the “automation at scale” journey. It does require planning and investment of time and resources. But we have seen over and over the return in savings far exceeds the investments. And the savings continue every year. It’s important to remember a business doesn’t have to do this alone. There are many partners that can help businesses pull together a cohesive strategy as outlined above, and assist them as needed to help them communicate and deliver a successful and scalable business automation campaign.
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ENVIRONMENTS & WORKPLACES
A Future-Forward Phoenix Design strategies for a resilient & thriving city by Diana Vasquez
As architects and designers, we are constantly recalibrating our approach to urban design with the goal of improving the quality of life and human experience. We believe that the future of our cities should combine socio-economic and ecological considerations that drive regeneration and shape communities where people and natural systems can coexist in balance. In a post-COVID world, we must also consider how the capacity of our natural systems are strained, as well as how racial, social and economic inequities are amplified. As we look to the future of Phoenix, we examine ways our city can become a thriving metro for everyone.
THE CONCEPT OF 20-MINUTE NEIGHBORHOODS
STRATEGIES FOR REGENERATIVE URBAN ENVIRONMENTS Diana Vasquez is the design director at Gensler. An architect with more than 15 years of experience, Vasquez has delivered projects ranging from branding and interiors to masterplans for corporate campuses and mixed-used developments. As design director, Vasquez pushes the boundaries of design through the integration of new technologies and diverse points of view. As Gensler’s regional race and diversity leader, she champions the firm’s diversity initiatives to create a more equitable world. gensler.com
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The COVID pandemic emphasized how a health crisis can quickly and severely impact our world economy. With climate change widely seen as the next crisis, we must ask: How can we create resilient urban environments? Investors, developers and building owners are recognizing the consequences and risks of climate change as they mobilize to address the negative impacts of the built environment. Yet these risks can also present an economic opportunity as the marketplace begins to seek out investment in long-term climate action strategies. There has been a renewed discussion of 20-minute neighborhoods as a framework for linking amenities within communities; for this concept to be successful, public and private sector investment strategies need to be implemented to attract development to growing neighborhoods and benefit the community. We have a timely opportunity to deliver tangible and sustainable strategies, especially crucial for large masterplans, mixed-use developments and residential projects. These strategies can range in investment, but all can create a measurable impact as we seek to mitigate the effects of climate change. For example, coupling large-scale dynamic shading
with evaporative cooling and proper material selections aid in improving the local thermal comfort and reduce urban heat island effect, all while reducing energy consumption. Designing for maximum site water management, like rainwater capture and reuse or open block parking surfaces with stabilized decomposed granite, ease burdens on already stressed municipal stormwater systems. Specifying low-flow fixtures, low- or no-irrigation plantings, or graywater reuse for non-potable systems also reduce project water demands. Lastly, alternative construction systems like timber structures and designing for adaptive reuse that enable space types to evolve with programming needs — including parking structures that can evolve into office or community space with the emergence of alternative transportation systems — are some of the major game changers aiming to reduce the overall carbon footprint of the built environment.
A TEMPLATE FOR LIVABLE DESERT CITIES
Phoenix represents a unique intersection of equity and climate change impacting our cities. Urban areas are a larger part of the global conversation than ever before. For Phoenix to become resilient and be equitable, the city can focus on counterbalancing the perceived negative effects of density by improving access to essential services such as water, affordable housing, education, open space, technology and healthcare. Repurposing existing buildings to new functions will form a significant part of such efforts. It’s possible to make cities healthier places without sacrificing the density that fuels their economies. New approaches to city-making should bring open spaces, watersheds, infrastructure and parks into the heart of how we plan and reshape our cities in the face of climate change and a future global crisis.
Global population shifts mean that over half the world’s population live in cities — a total of 4.2 billion people. Per the 2020 U.S. Census Bureau, Phoenix is the fifth-largest city, with a population of 4.7 million and growing.
Photo courtesy of Gensler
The pandemic caused many city dwellers, who are no longer tethered to a downtown office, to rethink life in large urban areas in favor of smaller, less dense up-and-coming cities. Through a confluence of lower costs of living, access to nature, diverse amenities and improved overall quality of life, the appeal of up-and-coming cities is increasing, according to findings in Gensler’s City Pulse Survey. A 20-minute city requires a densification of services like healthcare, affordable housing, education, healthy food options, retail and ample green spaces withing walking distance. In car-driven cities like Phoenix, this concept expands to 20-minutes access by car. Understanding the unique character of a desert city and the climate changes over the course of the year are key to delivering solutions that are appropriate and attractive to incoming residents that are discovering the balance of highly dense urban centers and post-urban (neither urban nor suburban) cities like Phoenix.
OUR SUBJECT IN-DEPTH
Team Synergy
A people strategy drives the science behind high-performing teams by Jen Butler
Team issues and drama are in the top five of all stressors for business managers and owners. According to several studies, as much as 56% claim team issues contribute most to their stress levels. With this high number of leaders being stressed out by the people they employ, the people they depend on to help them serve clients and the majority of people who impact revenue, it’s not a stressor to be avoided or put on the back burner. But too often that’s exactly what managers and owners do, and they start paying the mental, emotional and tangible cost for it. For business leaders to have the kind of team they’ve always wished they had — one that doesn’t complain, push buttons, expect more while giving less or be a financial draw on the business — requires a committed effort to building a people strategy that powers and propels every other business strategy.
PEOPLE STRATEGY BASICS
What is it? Set of specific, prioritized choices about where and how to invest in human capital When do I need it? 1. There’s a significant shift in business strategy (startup or build-out) 2. A major merger/acquisition (possibly buying an existing or joining up with another group) 3. Significant people problems (turnover, absenteeism, presenteeism, difficulty hiring) 4. There’s an opportunity to dominate a market What will it identify for the company? 1. Employee groups to grow or shrink 2. Which skills sets to invest in 3. What performance levels are required for optimal efficiency 4. The number of employees needed to achieve goals 5. Types of work to have in-house or outsource 6. The reward strategy that inspires and motivates employees What does it take? There are five key components to a thorough and effective people strategy: culture, information, communication, inspiration and motivation. Often, these terms are grouped together as synonymous, which is why companies rarely have the people strategy that works.
CULTURE
Culture is the inside-out of a business, where the company is clear with its identity so employees can use the culture to create who they are within the workspace. • Purpose: “Why we exist” (company) turns into “Why do I work here?” (employee) • Vision: “What we aim to achieve” (company) becomes “What I aim to achieve will make what kind of impact?” (employee)
• M ission: “How we plan to achieve it” (company) becomes “Which strategic plan of behaviors can I use today?” (employee) • Values: “What we stand for and how we behave” (company) turns into “What is my role and responsibilities?” (employee) • Positioning: “How we differentiate from our competition” (company) becomes “How can I stand out among my coworkers and clients?” (employee)
INFORMATION
A people strategy is solidified or destroyed by the information provided to employees. All policies, procedures, HR documents, emails, intranet and more must support the culture and the way in which workers interact within it. When information is displayed that goes against the identified culture, employees become confused and disoriented on which direction they are headed. Then one of the worst things occurs — distrust happens very quickly and even the most loyal workers doubt their reason for choosing that particular place of employment.
COMMUNICATION
Communication is not information, and vice versa. Effective communication plays a significant role in building and maintaining team synergy as it serves as the delivery tool for the other components. If team members participate in high levels of communication such as understanding, active listening, problem solving, conflict resolution and asking empowering questions, synergy rises and disharmony falls.
INSPIRATION
Inspiration is the internal connection a team member has to his/her job that propels them to achieve independently of their leaders and managers. Team member who are inspired are eagerly engaged from within their role and exceed expectations with high morale, while proactively looking for ways to experience personal growth in and outside their designated position.
MOTIVATION
Motivation or reason is the last component necessary to create a people strategy. Knowledge, abilities, skills and competencies are the elements that make up a team member’s reason. For team synergy to develop, each member must have similar levels of each element to be present so professional services are consistent within each department. Research proves that executive leaders spend very little time on culture but hyper-focus on performance data of human capital. If their sights were switched, they’d actually create the very team synergy they are hoping for within the organization.
According to several studies, as much as 56% of business managers and owners claim team issues contribute most to their stress levels.
Jen Butler, CEO of JB Partners, is the creator of Get SMaRT - Stress Management and Resilience Training for the workplace. Their SMaRT Club learning platform is the leading self-guided tool for all companies looking to reduce stress and increase profits. Butler also travels throughout the United States to provide business leaders with one-on-one, onsite guidance in managing stress; turning around their business; and achieving real, longlasting results. jbpartners.com
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Change
NEW OPPORTUNITIES
Execute Wisely and Strategically PREVIOUS ARTICLES IN THIS SERIES: “Making Sense of the Puzzle” (In Business Magazine August 2021) “Embrace the Unknown” (In Business Magazine May 2021) “Exploring the Possibilities” (In Business Magazine June 2021)
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
OCT. 2021
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The fourth article in a series on Change: The Provider of Opportunity by Bruce Weber
In my previous article, “Making Sense of the Puzzle” (August 2021), the topic was understanding how, once many ideas are generated, the ideation evaluation process occurs, and what remains and what goes. In this article, the focus is on the solid execution of those new ideas and moving the organization forward in creating the future it wants. In 1916, Spencer Penrose bought a site in Colorado Springs, Colorado, with a goal to create a world-class resort in the shadows of Pikes Peak. He built the Broadmoor Hotel with the utmost care and spared no expense with a focus on creating an impeccable experience for guests. Today, the Broadmoor holds the longest running record of 56 consecutive years as a AAA Diamond resort. One of the keys behind the Broadmoor’s success is its focus on service through careful, deliberate execution of the best experience anywhere. So, what are the steps in executing well? In previous articles, I have mentioned that everything begins with the organization’s mission and vision. It is worth repeating that any future priorities must lie within the scope of the “why” an organization exists and what outcomes its leaders are hoping to achieve. Clarity, reaffirmation and alignment of mission vision are paramount to continued success. Next is instilling a growth mindset while encouraging innovation in the process. Often, new approaches can appear daunting, intimidating and outside the reach of the organization. When that happens, it becomes difficult to inspire creativity and focus on growing and enhancing the business. Allowing individual creativity without judgement is critical in development of new ideas and approaches. Facilitating a growth mindset enables compelling execution to emerge rapidly. Step three is to assign responsibility to the process. Even the greatest of ideas can fall flat without careful, disciplined follow-up. Often, there is a tendency to allow “the other person” or “other department” to execute the idea and be responsible for its success. Sometimes, the thinking is, “After all, we came up with the idea — and we have to execute, too?!” Having clear ownership and responsibility is the only meaningful way success can be attained through strong accountability. Having an assigned owner eliminates any ambiguity over direction and project execution.
“Vision without action is a daydream. Action with without vision is a nightmare.” —Japanese proverb
Step four is having a clear understanding of the organization’s outcomes. Steven Covey, the author of Seven Habits for Highly Successful People, suggests beginning with the end in mind. It is often easy to get caught up in the mechanics of the process along the way without realizing where the organization is headed and that what is being done is meaningful to the process. Focusing early on clear outcomes and remaining on course throughout the process, the organization will end up where it intended. The fifth step is communication throughout the journey, thus keeping everyone informed. It is highly unlikely that everything will go exactly as planned (although we will take it if it does!), thus communication keeps everyone abreast of where the project is. Like elements discussed so far, it moves the organization closer to overall success, and facilitates mutual brainstorming and problem resolution along the way. It’s also important to remain aware of biases along the way that can impact the strategic initiatives. Last, but certainly not least, is — while building toward results and constructing sustainability practices — to not forget to celebrate milestones along the way and embrace success. A great deal of effort goes into building and maintaining a business, so when a milestone is achieved, it is truly important to be grateful for the accomplishment and to let everyone know how much their effort has impacted the overall success of the project and the organization. The journey may be long and difficult, so leaders need to prepare accordingly. Build rock-solid processes first, then increase the through-put and accuracy by introducing the right technologies needed where they make sense. Leaders should capture their own best practices and replicate them across the company. When Penrose decided to build a world-class resort in the middle of Colorado, everyone thought he was a foolish wealthy man. What they didn’t realize was, he was passionate in building the best resort experience he could deliver. His dedication to excellence and process resulted in one of the finest resorts in the world. Every organization with the right process and persistence can build, as Penrose did, something that works well and stands the test of time!
INVESTING IN COMMUNITY
Prepare for a Stronger Future with the Arizona Endowment Building Institute Surviving on limited resources, many organizations are unable to focus on critical planning for long-term growth by Kristen Mihaljevic
Nonprofit organizations provide essential services to our communities, stepping in to ensure people are housed, clothed, fed and feel safe. Yet, many nonprofits are surviving on limited resources. They must focus on running their operations, managing volunteers and communicating with donors, all while continuing to serve their clients. While many organizations are extraordinarily effective in balancing these conflicting priorities, they often rely on small annual gifts and are unable to focus on critical planning for long-term growth and sustainability. The thought of getting away from their operational responsibilities to focus on building for the future may seem like a pipe dream. Low endowment balances, coupled with a lack of understanding on the part of nonprofit boards regarding the importance of planned giving, can lead to programmatic instability. Endowments enhance financial stability while allowing charities to focus on delivery of quality programs. The organization becomes more effective when boards and staff can work together to build the needed capacity to develop planned gifts. Since 2005, the Arizona Endowment Building Institute has been laser-focused on addressing that challenge. AEBI, currently managed by the Arizona Community Foundation, offers tools and educational opportunities for Arizona nonprofit organizations that are looking to develop and implement their own endowment-building programs. AEBI’s structured curriculum provides each participating organization with a team of mentors to train board members, assist with developing policies and implement a specific plan of action. AEBI alumni also receive ongoing support for their programs to ensure long-term success. It is ACF’s Advanced Track for nonprofits with serious interest, capacity and resources to build an organizational endowment. Beginner and intermediate tracks, the Planned Giving Basics 100 and 200 series, offer an introduction to endowment building and assist participating nonprofits in preparing for future application to AEBI. During the 11-month AEBI program, nonprofit staff are paired with experienced volunteer AEBI mentors — development professionals or estate planning experts — and together they attend regular training sessions. In order to provide personalized instruction, each class is intentionally small and focuses on four or five participating nonprofit organization teams. All participants pay a $5,000 fee that covers instruction, data screening and the course textbook. Gifts from the estates of individuals who feel connected to the nonprofit’s mission are often the largest gifts an organization will receive. To cultivate estate gifts, nonprofit organizations must be prepared with: • Appropriate policies that assure the funds will be utilized and nurtured for the future;
AEBI PARTICIPATING ORGANIZATIONS These are some of the nonprofit organizations that have taken advantage of the learning offered through the Arizona Endowment Building Institute: • Banner Health Foundation • Big Brothers Big Sisters of Central Arizona
• A n understanding of who may become endowment donors; • A case for supporting endowment; • An overview of planned giving programs and the types of gifts that will build endowment; • An understanding of how to cultivate, market and steward endowment gifts; • A plan to report and measure success; and • The ability to engage and involve board members.
• Boys and Girls Club of Metro Phoenix • Child Crisis Arizona • Desert Botanical Garden • Free Arts for Abused Children • Herberger Theater Center • Lowell Observatory
Over the course of a year, the AEBI curriculum guides nonprofits through all these components and processes. After completing the program, organizations will have the necessary tools, resources and knowledge to move ahead with endowment building. To date, more than 60 nonprofit organizations have taken advantage of this opportunity. Many of the organizations that have completed AEBI share the following characteristics: • 10 or more years in operation, • Successful annual fundraising programs, • A donor and volunteer database with 1,000 or more contacts to consider planned giving, • A record of effective fiscal management over several years, • Regular communication with constituencies, • A team of staff members responsible for implementing the AEBI program’s assigned tasks, • Board members and executive leaders willing to participate in AEBI, and • Resources to cover the $5,000 participation fee.
• Musical Instrument Museum
“AEBI really helped our organization focus on creating and implementing a planned giving/ endowment program,” says Devonna McLaughlin, chief executive officer of AEBI participant Housing Solutions of Northern Arizona. “We didn’t know how to start. AEBI provided the road map that allowed us to create a Legacy Society and the support we needed to identify donors who already supported our organization. Because of the help we got through AEBI, endowment building is now a strategic focus for our board and our organization.”
Kristen Mihaljevic is the director of AEBI and the senior director of Planned Giving at the Arizona Community Foundation, a statewide family of charitable funds supported by thousands of Arizonans. azfoundation.org
• One.n.ten • Phoenix Zoo • Prescott Meals on Wheels • Sedona International Film Festival • St. Mary’s Food Bank Alliance • Yavapai Humane Society • Valley of the Sun United Way
Arizona Endowment Building Institute azfoundation.org/AEBI
AEBI is ACF’s Advanced Track for nonprofits with serious interest, capacity and resources to build an organizational endowment. Successfully activating the program, the Frank Lloyd Wright Foundation received the largest individual gift in its history.
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WE VALUE WHAT WE OWN
BY MIKE HUNTER
2022 BMW X6 M Sports Activity Coupe
2022 BMW X6 M SPORTS ACTIVITY COUPE MSRP: $109,400 City: 13 mpg Hwy: 18 mpg Trans: 8-speed M Sport Automatic
The 2022 BMW X6 M brings aggressive design enhancements, refined engineering and the latest technology together for one mission — to stand out. The optional Competition Package dresses up the X6 M with high-gloss black accents, exclusive upholstery and the M Sport Exhaust System while also increasing its horsepower. Drivers can unleash a precision-engineered 4.4-liter BMW M TwinPower Turbo V-8, delivering up to 617 horsepower with the optional Competition Package. Temperatures are regulated by a cooling system with four water pumps, six radiators and a dedicated transmission cooler. The standard 8-speed M Sport Automatic Transmission can go from smooth to aggressive with the three-stage Drivelogic system. Switching to manual mode allows the driver to take hands-on control with the steering wheel-mounted paddle shifters. The standard Adaptive M Suspension Professional features
0-60mph: 3.8 sec
M-specific Dynamic Performance Control, Dynamic Drive and additional settings customizable at the press of a button. The quick and responsive pedal offers the feel of standard 6-piston front M compound brakes with ventilated, drilled brake discs for maximum cooling and endurance. The intense front air intakes, M double-bar kidney grille and signature M mirrors give off a magnetic allure. The rear diffuser and M-specific roof spoiler direct airflow, while a wide rear stance and quad exhaust emphasize athletic looks. Standard M MultiFunctional Seats with illuminated M badges provide exceptional and customizable lateral support. The available Competition Package includes high-gloss black accents like the kidney grille, mirrors, and badging that add an extra touch of class. The standard Live Cockpit Professional with M View creates an ideal environment for performance-minded drivers with M-specific menus, vehicle information and digital design. The advanced iDrive 7.0 Operating System is fully integrated with the standard BMW Intelligent Personal Assistant and wireless Apple CarPlay™ and Android Auto™ compatibility — providing seamless access to favorite apps, navigation and infotainment. The new My BMW App enables the driver to lock and unlock doors, check vehicle status and get things running with available Remote Engine Start – all from a compatible mobile device. BMW bmwusa.com
Air Purification System Fights Airborne COVID-19 Virus and More With indoor air quality more essential than ever with the infectious
and reduces bacteria, microbes,
COVID-19 still active worldwide, eradicating the virus while it’s
pollen, dust, dander, allergens, spores,
airborne is crucial to mitigating its transmission. Hummingbird EQ,
fungi, mold, odors, smoke and toxic
an air purification system from cleantech company Energy Cloud,
fumes without producing any harmful
was proven to capture and deactivate the airborne COVID-19 virus
ozone or biproducts.
reducing it to undetectable levels. Unlike other air purification systems, Hummingbird does not
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and professional engineers assembled
of viruses. It can be installed and scaled to any size heating,
by Black & Veatch — a global
ventilation and air conditioning (HVAC) system or used as a stand-
infrastructure leader vastly experienced
alone unit in all types of commercial and residential settings.
in pathogen-tracking methods and
efficacy is an air purification technology that decomposes VOCs
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INBUSINESSPHX.COM
a distinguished team of epidemiologists
release or produce any airborne chemicals as part of its inactivation
Among Hummingbird’s additional benefits beyond its virus
OCT. 2021
Hummingbird EQ with Air Vaccine technology was independently tested by
construction of biological safety-related sites. Energy Cloud energycloudinc.com
The BMW M models are precisely engineered and built for performance driving. Details such as the seats, exhaust, suspension, steering, wheels and aerodynamics are designed with performance at the forefront. The X6 M, for example, demonstrates the pure power of the 4.4-liter V-8 BMW M TwinPower Turbo engine that delivers 617 hp, made possible by the optional Competition Package.
Photos courtesy of BMW (top), Energy Cloud (bottom)
on the first airflow pass through the system by 99.5% or greater,
MEALS THAT MATTER
Ling’s Wok Shop: Different as Day and Night Vibes transform from fast-casual lunch to full-service dinner
Photos courtesy of Ling’s Wok Shop
by Danielle Baker
What happens when outstanding Asian cuisine and a pandemic are combined in the brilliant brain behind foodie favorite Ling & Louie’s Asian Bar and Grill in Scottsdale: Ling’s Wok Shop, a flexible new dining concept. “The pandemic gave us an opportunity to capitalize on a changing marketplace,” says President and CEO John Banquil. “Even though we are not 100% sure how our industry is going to change, we know it’s going to change. Having a dynamic model like Ling’s Wok Shop allows us to remain flexible and provide our guests with the kind of dining experience they are seeking.” For more than a decade, Ling & Louie’s has been revered as one of Scottsdale’s top Asian restaurants. Using traditional Asian cooking techniques and ingredients in non-traditional ways, Ling & Louie’s has a reputation for creating bold, exciting flavors that appeal to all tastes. After modifying operations to survive and prosper through the COVID-19 pandemic, Ling & Louie’s team decided to use their newfound skills to create a new concept. The wok-centered kitchen at Ling’s Wok Shop ensures the food is fresh, clean and healthy. The culinary team has modernized wok cooking to maintain the integrity of the premium ingredients and to keep the freshness and snap of the vegetables. “When you use quality ingredients like antibiotic-free chicken breast, dry-packed scallops and grass-fed beef, you want to let the flavors speak for themselves,” says Corporate Executive Chef Greg Smith. “We simply highlight these ingredients with our signature, house-made sauces and fresh vegetables. The wok adds the right amount of magic to create something special.” Operating as a fast-casual restaurant during lunch — when guests are always on the go — Ling’s Wok Shop will provide fast, consistent and delicious menu options that are healthy and convenient. During happy hour and dinner service — when guests want to relax and unwind — Ling’s Wok Shop operates as a full-service restaurant, providing friendly and
BUDDHA’S BELLY WITH BEEF Mushrooms, onions, asparagus, green beans, radish, Thai basil and traditional stir-fry sauce $12
knowledgeable service with a slightly expanded menu as well as a full bar of hand-crafted cocktails, expertly selected wines and local beers. With an established menu at Ling & Louie’s featuring many local favorites, the team felt those favorites should be part of the menu at Ling’s Wok Shop as well. Dishes like the New Wave Pad Thai — a modern spin on the classic Thai dish — and Ling’s Seafood Hot Pot — a dinner choice of a savory green curry seafood dish filled with scallops, salmon and jumbo shrimp — found their way onto the menu at Ling’s Wok Shop, along with new dishes for patrons to try. Ling’s Wok Shop opened in September 2021 in the Hayden Peak Crossing shopping center on the southeast corner of Hayden Road and Thompson Peak Parkway in Scottsdale. “Our goal is to ensure long-time fans can enjoy their favorites, while also giving them an opportunity to venture out and try something new and exciting,” explains Banquil. “We’re going all in to give guests a bold, fresh taste of modern Asian cuisine.” Ling’s Wok Shop 20511 N. Hayden Rd., Scottsdale (480) 801-6524
KOREAN CAULIFLOWER Cauliflower with sesamesoy glaze, gochujang aioli $8
THAI QUINOA SALAD Fresh greens, red bell peppers, edamame, fresh herbs and Thai peanut dressing $10 with Jumbo Shrimp (pictured): $15
lingswok.shop
Opened in early September, Ling’s Wok Shop was already on Yelp’s “Best Restaurants in Scottsdale” list before the end of the month.
OCT. 45 2021 INBUSINESSPHX.COM
GROW YOUR SKILL SET & YOUR CAREER:
Career and Technical Education Scottsdale Community College provides 100+ degree, certificate and micro-certificate education programs designed to help you succeed in the workplace. SCC is proud to support the mission of the Scottsdale Coalition of Today and Tomorrow.
DATA ANALYTICS
SECURITIES INDUSTRY ESSENTIALS
COMMUNITY HEALTH WORKER
HOSPITALITY MANAGEMENT
Make it happen at Scottsdale (480) 423-6700 | scottsdalecc.edu |
scottsdalecc.edu/future-students
The Maricopa County Community College District (MCCCD) is an EEO/AA institution and an equal opportunity employer of protected veterans and individuals with disabilities. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, age, or national origin. A lack of English language skills will not be a barrier to admission and participation in the career and technical education programs of the District. The Maricopa County Community College District does not discriminate on the basis of race, color, national origin, sex, disability or age in its programs or activities. For Title IX/504 concerns, call the following number to reach the appointed coordinator: (480) 731-8499. For additional information, as well as a listing of all coordinators within the Maricopa College system, visit www.maricopa.edu/non-discrimination.
scottnow.com www.scottnow.com
About SCOTT
by Don Henninger The Scottsdale Coalition of Today & Tomorrow is a nonprofit, nonpartisan group that works to raise awareness, provide information
and create discussion that will help residents understand important issues and participate in decisions that affect their quality of life and Scottsdale’s future.
important to the city’s prosperity, economic
Scottsdale Ahead
health and quality of life and does that via
A big part of Scottsdale’s appeal is its unique geographic diversity, from its core
Created three years ago, SCOTT’s core mission is to be a positive voice for the city. It works to educate and advocate for issues
by Don Henninger
e-newsletters, weekly podcasts and social
urban setting in the south to the north with some of the most pristine desert in
media channels.
all of the Southwest. It didn’t happen by accident.
It also hosts the SCOTT Roundtable,
It started with city residents agreeing to tax themselves to buy the land to
an independent community forum with
create the McDowell Sonoran Preserve. Now, 20 years and $1 billion later, the
more than 70 business, civic and education
preserve stands as a signature draw that makes the city appealing to residents,
leaders united to work on issues to benefit
businesses and tourists. It will remain that way in perpetuity.
the city. The forum includes leaders from diverse groups that realize collaboration and consensus building is key to solving problems. It meets twice a month to identify issues and strategies needed to move the city forward. —Don Henninger is executive director for SCOTT.
Get connected with SCOTT: Website: http://scottnow.com Facebook: SCOTTnow Twitter: @scottnow_com
Podcast: Today and Tomorrow in Scottsdale: Apple: apple.co/3lfkwfS Spotify: spoti.fi/3z12dzD
It’s a perfect mix, appealing to preservationists who value what Mother Nature has provided while also serving as a signature draw for tourism and an amenity that attracts investors to the city. Over the years, city leaders also have implemented land use decisions that preserve open spaces throughout the northern half of the city, offering residents a single-family lifestyle with lots of elbow room. To sustain that geographic diversity while also providing the means to grow its economy — essentially to pay for it all without raising taxes — city leaders have focused development options for business growth to three areas: downtown, the McDowell Road corridor and the Airpark region. With the national economy now in a growth cycle for next few years with a pent-up post-pandemic demand for business expansion, community, business and city leaders are working on ways to ensure investors know the city is open for business. There is ample evidence to show that good ideas can stand the rigors required to get projects approved in Scottsdale — where quality and long-term sustainability have always required investors to bring their best to the city. Many outsiders may be surprised to see the scope and magnitude of activity happening in all three areas with projects already approved and in various stages of development:
Continued on Page 2
Downtown: A Strong Heartbeat Downtown encompasses about two of the city’s 185 square miles, giving it a focused urban core option that serves as the economic heartbeat of the city. Numerous projects have been through the bulk of the city approval process and soon are on track to come out of the ground — and that’s in addition to a revamped Civic Center. The Kimsey: The multi-use project will feature a 168-room hotel, 190 residential units, a restaurant and commercial space at 7110 E. Indian School Road. It also will preserve the Triangle
Camelback roads that could feature up to 400 hotel rooms,
building, designed by renowned architect Ralph Haver, which
100 apartments and more than 40,000 square feet of retail and
once served as Scottsdale’s City Hall.
restaurant space.
Caesars Republic Scottsdale: The luxury hotel at the corner
Marquee: A 150-foot-tall office building planned next to
of Highland Avenue and Goldwater next to Fashion Square mall
the Galleria Corporate Center, with 280,000 square feet of Class
is set to open in 2023. It will be the first non-gaming branded
A office space.
Caesars hotel in the United States. It will have 265 rooms at 11
Museum Square: A mixed-use development that includes a
stories and include a 7,000-square-foot ballroom and a large
hotel tower and four residential buildings, three of which will be
meeting space for conferences.
along the Goldwater Boulevard curve, and two public open-
Scottsdale Collection: The $450-million project will bring a new mix of uses over 10 acres in the entertainment district.
space plazas. Civic Center renovation: The city is starting work to revamp
It calls for replacing dated office and club properties with
the Civic Center Mall with $27.3 million in upgrades from the 2019
580,000 square feet of commercial space, and hundreds of
bond project, giving the open-space area a complete makeover. It
apartments and hotel rooms. The centerpiece is City Center,
also will be done in time to serve as a potential host event site for
a 150-foot building at the northeast corner of Scottsdale and
Super Bowl 23.
The Airpark Region Flying High The Airpark region, which covers nearly nine square miles around the Scottsdale Airport, is one of the largest employment centers in the state with more than 2,900 businesses and more than 51,000 employees. It’s home to a number of company headquarters: AXON (Taser), JDA Software, Nautilus Insurance, Quicken Loans, CVS Caremark and Vanguard. Adding to that lineup are these new projects: Cavasson: At full completion, the project’s mix of uses, which features a new office building for Nationwide Insurance, will include 1.8 million square feet of commercial office space, 1,600
Road and Loop 101. Its campus will cover about 250,000 square feet for up to 1,500 employees. One Scottsdale: A mixed-use development at the intersection
residences, a full-service hotel, retail and restaurants. The 134-
of Loop 101 and Scottsdale Road. One Scottsdale could total as
acre project is at the corner of Loop 101 and Hayden Road.
much as 2.86 million square feet at full build out with Class A
Axon: The company, formally known as Taser, is building its
offices as well as 400 hotel rooms and 2,000 residential units.
new headquarters building at the southeast corner of Hayden
McDowell Road Corridor In the past decade, more than $200 million of new investment
that fell into disrepair, is undergoing a redevelopment that
which now has more than 14,000 employees.
includes a 274-unit apartment building and a 118-room hotel
SkySong 7: A new Class A office building added to the project at the corner of Scottsdale and McDowell roads. It will
2
Papago Plaza: The plaza, a longtime shopping destination
has been made in this area, the southern gateway to Scottsdale,
along with 30,000 feet of retail and a grocery store. Scottsdale Entrada: The project at the northeast corner of
total 340,000 square feet and will be six stories tall. SkySong
64th Street and McDowell Road includes more than 250,000
already is home to 750,000 square feet of office space as well as
square feet of office space in addition to 7,500 square feet of
restaurants, apartments and a hotel.
retail space and 735 apartments, spread out across 33 acres.
SCOTT: SCOTTSDALE COALITION OF TODAY AND TOMORROW
Regional Impacts
What challenges must Scottsdale overcome? Scottsdale needs framework for its urbanization
by Don Hadder
that allows for surrounding development while
The City of Scottsdale is nearing buildout and future land uses essentially
provide a sustainable, livable, affordable place to live.
preserving that which makes it special. It needs to
are already established or soon will be. But there are three adjacent areas
Community policing begins with police who live in the community; ditto, teachers, first responders — all
surrounding the city that will impact future uses in Scottsdale. -- The first is the “Rio Verde Foothills” area east of Scottsdale and north of the McDowell Mountain Regional Park. The 23-square-mile area is not incorporated in any town or city and is regulated by Maricopa County. The Rio Verde Foothills Area Plan that the county has adopted accommodates only low-density singlefamily residential uses. No schools, offices, retail uses or other non-residential
who support Scottsdale. Great cities have hundreds of people rushing around without getting into an argument or a fight. We need to nurture a great, vibrant, civil society in Scottsdale. —Jim Ratcliff Chairman, Board of Directors, President and CEO
uses are part of it. Assuming one house for every two to three acres, the total number of homes
Rowpar Pharmaceuticals, Inc.
across this area could range from 5,000 to 7,500. Only two roads are entering this vast area: Rio Verde (from Scottsdale) and Mustang Way/Forest Road (from Fountain Hills). Assuming that traffic from this area splits in both directions, the impacts on Rio Verde/Dynamite Road would be roughly 25,000 to 38,000 trips per day. This traffic will also lead to a greater demand for service and retail uses in northern Scottsdale than what the resident population would typically support. -- The second area is the portion of northeast Phoenix bounded by the CAP aqueduct on the south, Cave Creek Road on the west, Jomax Road on the north and Scottsdale Road on the east. This area is roughly 24 square miles. In terms of planned and zoned land uses, it is much more intense. Currently approved plans in Phoenix would accommodate around 100,000 dwellings units
What is the biggest issue facing Scottsdale? Our future. We need leaders who will have the courage to make hard decisions to move Scottsdale forward. We can’t just say “we’re all done now, let’s stop growing and evolving.” High amenities, high property values, low property taxes; we have a winning formula, but it requires continual reinvestment in our community to maintain our wonderful quality of life. We need a bold vision and the courage and will to enact it. —Tammy Caputi
of all types. As an entire city, Scottsdale, with a land area of 185 square miles, has a
President • Yale Electric West, Inc.
little more than 110,000 residences. This area’s overall density could be six to seven
Scottsdale City Council member
times that of the entire City of Scottsdale. This area is also planned for a wide range of employment, service, retail and civic uses and would be one of the largest cities in Arizona at build-out. Of
What challenges must Scottsdale overcome? As more and more businesses locate to Scottsdale
particular note is that zoning at the northwest corner of Scottsdale Road and the
and/or expand their operations here, one challenge
Pima Freeway (101), allows for buildings up to 190 feet tall.
is ensuring a highly skilled, local workforce. SCC
There is substantial development already in this area, particularly at the Desert Ridge project, as well as the American Express and Mayo Hospital campuses.
is uniquely positioned to deliver the high-quality instruction needed to prepare students to secure in-demand jobs and grow their careers in Scottsdale.
As this area continues to develop over the next decades, it will significantly
—Chris Haines
impact transportation systems, visual character, retail and service provisions and
Interim President Scottsdale Community College
demands for public services.
-- The third area is the freeway corridor within the Salt River Pima Maricopa Indian Community. This area will have no residential units. Therefore, as can
Your vision for Scottsdale?
already be seen by current development along this corridor, the freeway
My vision includes a dynamic future-focused edu-
will be lined on both sides with employment, service, retail and recreational/
cational culture and climate that is responsive to
cultural uses. It will likely reduce the viability for some employment, service and
local, national and international workforce demands.
retail sites in Scottsdale’s southern and central parts. It will also create greater demands on the traffic carried by the Pima Freeway and tend to increase the
We remain responsible for our individual successes. However, we cannot succeed without each other’s support. To that end, I believe a dynamic future-fo-
demand for housing in nearby areas of Scottsdale.
cused educational culture and climate results from
The impacts of these areas will occur over the next 20 to 30 years. There are
collaboration and shared commitment. Collaboration
infrastructure limits and hurdles that will affect the development timing and
across sectors, industries and markets — enabled
patterns of each of these areas, but each one is of a magnitude that will impact
and supported at all levels of our community — can
parts of Scottsdale in both predictable and unpredictable ways.
help us realize the shared responsibility for making the city a continued success.
Don Hadder is a retired city planner, long-time resident of Scottsdale and a local historical resource.
—Libby Hart-Wells, Ph.D. Scottsdale Unified School District governing board member
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3
Economic Development Strategy by Rob Millar
Decades of planning and long-standing partnerships have
commercial developments to support business expansion and
cultivated a business community in Scottsdale that supports
provide technical resources to small business recovery and growth.
innovation, welcomes diverse talent and celebrates business
Additional strategies aim to diversify the economy by
growth. Now, we are ready to continue building on that
attracting new investment to ensure resiliency through site-
momentum with a new strategy to bolster Scottsdale’s economy.
selector engagement and continuing to work with our key
The past 18 months have been a trying time for everyone,
partners, and bolstering the startup ecosystem to accelerate
especially businesses, yet the Scottsdale Economic
the growth of high-tech startups by leveraging investment in
Development department found new ways to support the
Scottsdale’s Smart City Strategic Roadmap.
business community and continued to promote the city as a premier destination for business.
Further, the plan includes making inclusion and diversity an economic priority to ensure all residents and businesses have the
This spring, the City Council approved the economic
opportunity to thrive by working with our local partners to support
development five-year strategic plan, setting into motion new
Scottsdale’s diverse businesses, and by celebrating Scottsdale’s
ways to grow Scottsdale’s economic base. While business
arts, culture, heritage and diverse entrepreneurial success stories.
as usual is changing, so too is the way we approach and set
Lastly, the new economic development strategy will focus on
our goals. What remains, however, are the core values of this
building Scottsdale into the premier destination for talent in the
community that guides our work.
Southwest, through a remote worker campaign, for example, and
From supporting robust business retention and expansion efforts and encouraging business formation to advance economic prosperity for Scottsdale residents and businesses,
enhancing the city’s brand for business, capital and talent through a storytelling program that promotes Scottsdale’s economy. Our goal is to reflect upon the outcomes of this plan in five
to fostering resiliency through upskilling and talent attraction,
years and know that we worked collaboratively with the business
to highlighting Scottsdale’s quality of place, it was important to
community to diversify our industry base, spur innovation and
weave these values into the newest plan.
business formation, and created a business climate that is open,
Over the next five years, the plan will guide a phased-in approach to meeting a new set of goals. To begin, the team will look at
diverse and inviting to both talent and business. To read the entire strategic plan, visit choosescottsdale.com.
growing Scottsdale’s existing industry base to increase economic vitality by executing a retention and expansion strategy focused
Rob Millar is the economic development director for
on the six key industries in our business ecosystem, promoting
the City of Scottsdale and is a certified economic developer.
Airport a Billion-Dollar Lift Scottsdale Airport is an economic driver
months, and the airport recorded 195,852
services for business flights; airport
for both the city and the region, located
takeoffs and landings in 2020, an increase
administrative, U.S. Customs and Border
in a thriving airpark, one of three growth
of 10,000 over 2019.
Protection and Civil Air Patrol offices;
areas designated within the city. Aviation activity at the airport and the
and a historic PT-17 Stearman aircraft
Aviation Business Center, a $27-million
as one of Thunderbird Field II Veterans
Scottsdale Airpark created $1 billion in
redevelopment project. The
Memorial Exhibits.
economic benefits for the region in FY
23,800-square-foot building opened in
2019 and supported nearly 6,000 jobs with
2018 and replaced the airport’s outdated
projected growth, increase airport
incomes of $320 million. Visitors arriving at
terminal built in 1968. The center brought
revenues, ensure provision of additional
the airport spent $90 million in the region.
new amenities for tenants and the
premier services and enhance its
public, new revenue from recently built
already competitive amenities, several
decreased in March and April due to
hangars, reduced energy costs from high
initiatives are underway.
COVID-19, dropping 6% compared to
sustainability standards and more space
2019, according to flight data from the
for corporate aircraft.
The airport’s operations initially
Federal Aviation Administration. But activity quickly recovered in the following
4
Scottsdale Airport updated its
The complex includes Volanti’s restaurant that also provides catering
SCOTT: SCOTTSDALE COALITION OF TODAY AND TOMORROW
To accommodate continued
Included in that is the new runway, an $11-million project funded by the Federal Aviation Administration that was completed in August.
Bright Future
CITY OF SCOTT SDALE GENERAL PL AN 2035
Adopted by City Counc il on June 8, 2021 Resolution No. 12177
General Plan Highlights: A Vision for the City The city’s General Plan 2035 has been referred to the Nov. 2 ballot for voters. Highlights:
by Laraine Rodgers
• The vision for Scottsdale’s sustainable future: Scottsdale will continue to be a premier city that reflects the
Recent city surveys show
city’s exceptional Sonoran Desert experience, the
that the majority of
McDowell Sonoran Preserve, outstanding livability, a
residents are happy living
sustainable environment, diverse character areas, safe
in Scottsdale and like the
neighborhoods, inclusive communities, high-quality
direction in which the city is heading. They’ll get a chance to
design and architecture, enriched by an educated, highExperience. Livab
ility. Prosperity. Chara
cter.
vote to confirm that this fall. Arizona requires cities to adopt a comprehensive longrange general plan every 10 years. In June, the City Council adopted the Scottsdale General Plan 2035 and it will go to voters for ratification on Nov. 2. The plan updates the community’s long-term expectations for Scottsdale’s growth and development and revises existing plan elements, acting as a blueprint to enhance community aspirations over the next 20 years. Scottsdale is recognized nationally as a great place to live, work, do business and recreate, and residents recently seconded that in a survey. Late last year, the National Community Survey went to 1,700 Scottsdale households. Rated highest were the city’s overall quality of life, the value of services for taxes paid, economic development, preservation of natural areas, stormwater management, culture/arts/music activities and opportunities, recreation, open spaces and library services. Citizens assessed many of the facets of the economy as outstanding, with scores higher than the national averages for overall economic health, quality of business and service establishments and economic development. Scottsdale as a place to visit and a place to work ranked much higher than elsewhere in the country. The overall quality and variety of business and service establishments were first among all comparison communities. As Community and Public Affairs Director Kelly Corsette says, “Because this is the survey used throughout the country by more than 500 communities, we have benchmark data. We can see how we are performing in relation to peer cities. … If these results were your child’s report card, you would be very pleased.” See the General Plan at this link: https://bitly.com/3kk2DwT Laraine Rodgers is operations director for
wage workforce and entrepreneurs and businesses that foster innovation and prosperity. • Scottsdale will continue to be a vibrant city of high amenities, low taxes and high services, supported by plans to address its vision and goals. • Scottsdale will continue to be as resilient as it was during the 2008 recession, coming back strong with 2019 revenue levels at their highest, a diversified economic base and a triple A bond rating. • Scottsdale’s swift actions when the global pandemic hit in 2020 and throughout the pandemic set the stage for a stronger and more vibrant economy in 2021 that is already coming back. • Scottdale will continue to enhance its quality of place, re-imagining its everyday spaces, parks, downtown, the waterfront and plazas. • Scottsdale 2019 bond package of $321 million: 54 projects addressing key infrastructure needs in three areas: parks, recreation, and senior services; community spaces and infrastructure; public safety and technology. • One bond project under way is a $27.3-million initiative to rebuild the Scottsdale Civic Center Plaza as the community’s signature special event and public gathering space, creating a competitive new public space to attract large-scale events, such as Super Bowl 2023 activities. • Scottsdale is growing its focus on quality education and research, enhancing its strong high-wage, high-skill workforce through collaborations with SkySong/ASU, P-12 school systems and Scottsdale Community College. • Scottsdale’s Smart City plan is under way, using data to enrich the lives of citizens. Scottsdale already had some “smart” elements in place, including predictive analytics, traffic management and lighting sensors on top of streetlights. Scottsdale is building capacity to run pilot programs at SkySong.
SCOTT. scottnow.com
5
scottnow.com
5
A Steady Base
The Winning Formula
From the 19th century well into the 21st century,
In light of the challenges from COVID-19 and the fact that Scottsdale’s
tourism has been the backbone of Scottsdale’s local
economy is heavily supported by tourists who went missing for most of
economy. Though it has diversified with the expansion
the year’s high season, this is a good time to consider what makes the
of construction, high technology, healthcare and other
city tick.
by Rachel Sacco
industries, Scottsdale’s first industry, tourism, remains one of its largest — in jobs, tax revenue and economic impact. The industry’s beginnings were found at small inns and guest ranches and oiled-dirt golf courses tucked beneath
by Jim Derouin
To keep property values and amenities high and property taxes low, the city needs to generate economic activity from a variety of sources that produce sales tax revenue. Basically, 25% of Scottsdale’s area (about 47 square miles) comprises
Camelback Mountain. Over time, Scottsdale’s hospitality
the McDowell Sonoran Preserve, created when residents voted to tax
blossomed, becoming a hub for spring training baseball
themselves more than 20 years ago, generating nearly $1 billion to buy
in the 1950s, attracting Hollywood celebrities in the 1960s
that land.
and introducing luxury resorts in the 1980s and beyond. Through it all, people traveled great distances to relax
Yet, it is not a “bedroom” community from which residents flee during the day and return at night. Data shows that Scottsdale
and rejuvenate in Scottsdale. Today, people come to the
is a self-sufficient, economically strong city. Rather than being a
city to enjoy pristine hiking trails, lush golf courses, award-
retirement community, it is an employment hub, which is important to
winning restaurants, arts and cultural attractions.
support its lifestyle.
But unlike the visitors of yesteryear, today’s travelers
Each day, more than 160,000 workers enter Scottsdale to work
total nearly 11 million in number and generate $3.3 billion
while less than half that number (Scottsdale residents) leave to work
in direct economic impact for the community. As a result,
elsewhere in the Valley. In addition, 33,000 Scottsdale citizens live and
tourism is one of the most significant sources of revenue
work in the city. The city has more than 18,000 businesses and 800
for the city, with visitors accounting for 23% of its total
restaurants
privilege tax collections. That not only alleviates the tax burden on residents
Healthcare, finance, insurance and technology firms dominate the list of Scottsdale’s largest employers. Tourism, automobile dealerships,
but elevates Scottsdale’s overall quality of life. Visitor-
retail operations (large and small), entertainment (including
paid tax dollars are funneled into public services like
restaurants) and construction all add economic activity vital to
police, fire and transportation, as well as special events
supporting Scottsdale’s amenities while keeping property taxes low.
and capital projects. These tax dollars are responsible, in
By 2055, Scottsdale projects its resident population to be 316,700,
part, for Scottsdale Stadium, the spring home of the San
according to city planners. Had the city not acquired the Preserve,
Francisco Giants; the Smithsonian-affiliated Western Spirit:
its population could have been much greater. Although the most
Scottsdale’s Museum of the West; Canal Convergence, an
substantial growth occurred between 1980 and 2000, Scottsdale
annual celebration of international art; and more.
has seen a steady increase through today, with an estimated total
Travelers fund these amenities while generating demand for many others. Because of Scottsdale’s strong visitor economy, investors build new product in the
population of 250,903. There are about 15,000 acres (7.8%) of land not yet developed — out of the total 118,000 acres in the city. Most residents judge their community by a variety of characteristics.
market as well as update current product. In recent
What physical amenities does it provide? How do property taxes
years, the community has benefited from Scottsdale
compare with those in other communities? How do property values
Fashion Square’s expansion, Fairmont Scottsdale Princess’
compare? Scottsdale scores well in all of these categories.
upgraded spa, Nobu’s opening and others. Such additions
Scottsdale’s amenities are unparalleled in any comparable
make Scottsdale a vibrant and dynamic place to live, work
community in the Valley. In addition, it has the highest median
and visit.
housing price of any large Valley city (Phoenix, Mesa, Chandler,
Though COVID-19 impacted tourism, the industry has proven its resiliency. People are longing to travel, and Scottsdale is ready to welcome those 11 million visitors once again with warm sunshine and hospitality.
Glendale, Gilbert, Tempe and Peoria). Only 3% of the entire city budget is projected to come from property taxes. Innovative thinking, solid leadership and collaborative actions have stabilized the city. Continued focus on how to sustain and grow its economic viability is critical to keep Scottsdale special.
Rachel Sacco is president and CEO of Experience Scottsdale. To learn more, visit
Jim Derouin is a long-time Scottsdale resident, attorney
ExperienceScottsdale.com/Community
and member of the City of Scottsdale’s Districting and Charter review task forces.
6
SCOTT: SCOTTSDALE COALITION OF TODAY AND TOMORROW
HEALTHCARE DECISIONS Open Enrollment & Healthcare Guide for Business
Informing Our Business Community on Healthcare Options
Presented by
Doctors Plan of Arizona: Your new health plan experience In collaboration with Banner Health Network, Doctors Plan of Arizona is designed to provide a better health care experience for you and your employees. With lower out-of-pocket costs1 and an integrated approach to care designed for better outcomes, this health plan helps your employees and their families access a broad network with over 4,200 providers2 to choose from — right where they live, work and play.
Learn more
Call your broker or visit uhc.com/dpaz
1
Savings based on lower premiums for Doctors Plan compared to standard Choice Plus plans at the same deductible and coinsurance level as of 7/1/2020. This policy has exclusions, limitations and terms under which the policy may be continued in force or discontinued. For costs and complete details of the coverage, contact your broker or UnitedHealthcare sales representative.
2
UnitedHealth Network Access internal analysis, June 2020.
3
Additional copays, deductibles or coinsurance may apply when you receive other services — such as surgery and lab work.
Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan coverage provided by UnitedHealthcare of Arizona, Inc. B2B EI20236739.1 1/21 © 2020 United HealthCare Services, Inc. All Rights Reserved. 20-189173-B
0 copays
$
for primary care provider visits, urgent care visits, online visits and convenience care visits3
Prep for Open Enrollment
HEALTHCARE DECISIONS
Strategies for success by Stephanie Waldrop
For many, open enrollment is a dreaded time of year. With more than 20 years of open enrollment seasons under my belt, I have experienced my fair share of employers calling me in crisis because they just received their insurance renewals and do not have a good plan of action. The problem with this approach is that it leaves little time to properly plan for success. This year may be the most important open enrollment season many employers have faced. The war for talent is raging and employers are fighting more than ever to attract and retain quality employees. The most competitive and progressive employers develop a game plan well in advance for their short-term and long-term benefit goals and they develop a budget that will ensure that they achieve them. If employers don’t know their Employee Benefits Playbook, how will they execute during the upcoming renewal season? Waiting until they receive their renewals to start the planning process will only ensure they are scrambling to make decisions quickly. The following tips will help employers ensure they are not caught flat footed during the upcoming renewal and open enrollment cycle. Employers should: 1. Survey their employees to determine satisfaction levels and perceptions of their current benefits offerings. This is also a great way to learn about any new programs or benefit offerings that are important to the employees. 2. Review benchmarking data to better understand how their current benefit offerings compare to the competition. The best benchmarking reports will provide comparisons by employer size, industry and region. 3. Meet with their broker/consultant and learn about any new trends or programs available in the marketplace and recommended considerations for their benefit program structure. A pre-renewal strategy session to review short- and long-term goals is invaluable. It’s a great way to learn about new options/possibilities but also ensure that if they do market their current coverages, or even new ones, they receive the best possible options to align their goals with reality. 4. Agree upon a timeline that sets them up for success and keeps everyone working toward the same goal, and ensure it is clear who is running point for each step along the way. Open Enrollment requires HR, the broker/consultant and the executive team to work together and execute independently at different times. An open communication and clear framework for success will make accomplishing goals much
more likely. If the process gets off track, it will be much easier to pinpoint how to avoid the same mistake in the future. 5. Make sure they plan ample time to educate their employees about all of the benefits being offered to them. There is a direct correlation between an employee’s understanding of the benefits their employer offers them and their satisfaction with the benefits offered. It’s important to not miss out on the opportunity to be sure the employees understand their benefits and have an opportunity to ask personalized questions to help make the best decisions for themselves and their family during open enrollment. How far out an employer begins the process really does depend on the size of the employee population. Generally, an employee survey, benchmarking and meeting with the broker/consultant for a pre-renewal strategy session can easily take place six to seven months prior to renewal. For an employer with fewer than 100 employees, meeting four to five months prior to renewal provides ample time. Determining what a successful renewal timeline will look like for a given company’s renewal and open enrollment process will help minimize the surprises and allow more time for employee education. Stephanie Waldrop is CEO and principal consultant at Phoenix-based insurance brokerage company Employee Benefits International (www. ebint.com).
Editor’s note: We are reprising this article by Stephanie Waldrop, which ran in the August 2021 edition of In Business Magazine as “Prep Now for Open Enrollment – 5 Steps to Ensure Success,” to complement the information provided in this guide.
In Business Magazine’s Healthcare Decisions: Open Enrollment & Healthcare Guide for Business is a special section meant to remind company owners as to the options that are available in the upcoming individual marketplace open enrollment window — November 1, 2021, through January 15, 2022. Open enrollment timing can happen throughout the year for company policies, but with the national window open during this time, we feel it is important to highlight various opportunities and list those groups offering plans and/or services. Using healthcare as a tool to build productivity through a healthy workforce is an advantage to business regardless of regulation and/or mandates, and it is becoming ever clearer that healthcare will be a focus for business owners and not simply an outsourced option as it has been in the past.
INBUSINESSPHX.COM
OCT. 2021
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HEALTHCARE DECISIONS Associations & Government Many associations and government healthcare services give specific information on policies, open enrollment dates and services provided that may help employers understand the many options. Below is a list of local organizations. Arizona Dental Association 3193 N. Drinkwater Blvd., Scottsdale (480) 344-5777 azda.org Arizona Foundation for Medical Care 2700 N. Central Ave., Phoenix (602) 252-4042 azfmc.com Arizona Health Care Association 1440 E. Missouri Ave., Phoenix (602) 265-5331 azhca.org Arizona Health Care Cost Containment System (AHCCCS) 801 E. Jefferson St., Phoenix (602) 417-4000 azahcccs.gov
Arizona Hospital and Healthcare Association 2800 N. Central Ave., Phoenix (602) 445-4300 azhha.org Arizona Medical Association 810 W. Bethany Home Rd., Phoenix (602) 246-8901 azmed.org Arizona Pharmacy Association 1845 E. Southern Ave., Tempe (480) 838-3385 azpharmacy.org Maricopa County Medical Society 326 E. Coronado Rd., Phoenix (602) 252-2015 mcmsonline.com
Dental Insurance Getting the right coverage means truly investigating the best plans and supplemental plans. Here is a list of area companies offering dental insurance that have a great reputation and plan options for individuals and groups. American Dental Plan 1645 E. Bethany Home Rd., Phoenix (602) 265-6677 arizdental.com Breslau Insurance & Benefits Paul Breslau 8362 E. Via de Risa, Scottsdale (602) 692-6832 breslauinsurance.com Delta Dental of Arizona 5656 W. Talavi Blvd., Glendale (602) 938-3131 deltadentalaz.com Matsock & Associates 2400 E. Arizona Biltmore Circle, Phoenix (602) 955-0200 matsock.com
Employee Benefits Consultants (many offer insurance) Using a consultant to work though options and the many plans can alleviate much of the confusion surrounding healthcare these days. We have included a list of brokers and firms that are reputable and have a tremendous amount of experience working with businesses to provide plans and ensure compliance. Arizona Benefit Consultants, LLC 6245 N. 24th Pkwy., Phoenix (602) 956-5515 arizonabenefitconsultants.com Benefits By Design 4500 S. Lakeshore Dr., Tempe (480) 831-7700 benefitsbydesignaz.com Benefits Commerce Group 16220 N. Scottsdale Rd., Scottsdale (480) 515-5010 benefitscommerce.com Blue Water Benefits Consulting 7848 E. Davenport Dr., Scottsdale (480) 313-0910 employeebenefitcompliance.com
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OCT. 2021
Breslau Insurance & Benefits Paul Breslau 8362 E. Via de Risa, Scottsdale (602) 692-6832 breslauinsurance.com
Health Insurance Express, Inc. and Fidelis Consultants 1757 E. Baseline Rd., Gilbert (480) 654-1200 healthinsurance-express.com
Connect Benefits 1818 E. Southern Ave., Mesa (480) 985-2555 connect-benefits.com
Healthcare Solutions Centers 4831 N. 11th St., Phoenix (602) 424-2101 hcsonsite.com
FBC Services, Inc. 14201 N. 87th St., Scottsdale (602) 277-8477 fbcserv.com
Horizon Benefits Group 6245 N. 24th Pkwy., Phoenix (602) 957-3755 horizonbenefits.com
Focus Benefits Group 11022 S. 51st St., Phoenix (602) 381-9900 focusbenefits.com
Strunk Insurance Group 14425 N. 7th St., Phoenix (602) 978-4414 strunkgroup.com
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OCT. 2021
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LIFE CAN CHANGE PRETTY QUICKLY. LET US HANDLE THE OTHER STUFF, SO YOU DON’T MISS WHAT MATTERS MOST.
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HEALTHCARE DECISIONS Individual & Group Health Insurance Knowing what plan is right for your employees and understanding who is managing that plan can make all the difference for your company. We have included below a list of reputable and experienced insurance companies, many of which you will be familiar with, that can guide your organization to the perfect group or individual plans. Amenda Insurance Associates Ltd. 31048 N. Rancho Terra Dr., Cave Creek (480) 284-6400 douglasamenda.com American Family Insurance Multiple Valley Locations (800) 381-6789 amfam.com Banner Aetna 8362 E. Via de Risa, Scottsdale (800) 381-6789 banneraetna.com Blue Cross Blue Shield of Arizona 2444 W. Las Palmaritas Dr., Phoenix (602) 864-4899 azblue.com
Bowman & Associates 16042 N. 32nd St., Phoenix 600 W. Ray Rd., Chandler (602) 482-3300 bowmaninsurance.com Breslau Insurance & Benefits Paul Breslau 8362 E. Via de Risa, Scottsdale (602) 692-6832 breslauinsurance.com Cigna Multiple Valley Locations (800) 997-1654 cigna.com Farmers Insurance Group Kara Anspach 7077 E. Marilyn Rd., Scottsdale (480) 998-8070 farmersagent.com/kanspach
Lovitt &Touché 1050 W. Washington St., Tempe (602) 956-2250 lovitt-touche.com State Farm Arizona Multiple Valley Locations (877) 331-8261 statefarm.com Strunk Insurance Group 14425 N. 7th St., Phoenix (602) 978-4414 strunkgroup.com UnitedHealthcare 1 E. Washington St., Phoenix (800) 985-2356 uhc.com
Hospitals and Medical Centers Many of the healthcare providers listed below are part of specific networks or have created their own network to lower costs for businesses and individuals with the intent to provide all needed services for the patient. Abrazo Arizona Heart Hospital 1930 E. Thomas Rd., Phoenix (602) 532-1000 abrazohealth.com
Abrazo West Campus 13677 W. McDowell Rd., Goodyear (623) 882-1500 abrazohealth.com
Banner Estrella Medical Center 9201 W. Thomas Rd., Phoenix (623) 327-4000 bannerhealth.com
Abrazo Arrowhead Campus 18701 N. 67th Ave., Glendale (623) 561-1000 arrowheadhospital.org
Banner Baywood Medical Center 6644 E. Baywood Ave., Mesa (480) 321-2000 bannerhealth.com/baywood
Banner Gateway Medical Center 1900 N. Higley Rd., Gilbert (480) 543-2000 bannerhealth.com
Abrazo Central Campus 2000 W. Bethany Home Rd., Phoenix (602) 249-0212 phoenixbaptisthospital.com
Banner Boswell Medical Center 10401 W. Thunderbird Blvd., Sun City (623) 832-4000 bannerhealth.com/boswell
Banner Heart Hospital 6750 E. Baywood Ave., Mesa (480) 854-5000 bannerhealth.com
Abrazo Maryvale Campus 5102 W. Campbell Ave., Phoenix (623) 848-5000 maryvalehospital.com
Banner Del E. Webb Medical Center 14502 W. Meeker Blvd., Sun City West (623) 524-4000 bannerhealth.com
Banner Ironwood Medical Center 37000 N. Gantzel Rd., San Tan Valley (480) 394-4000 bannerhealth.com/ironwood
Abrazo Scottsdale Campus 3929 E. Bell Rd., Phoenix (602) 923-5000 paradisevalleyhospital.com
Banner Desert Medical Center 1400 S. Dobson Rd., Mesa (480) 412-3000 bannerhealth.com/desert
Banner MD Anderson Cancer Center 2946 E. Banner Gateway Dr., Gilbert (480) 256-6444 bannerhealth.com
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Access to comprehensive cancer care should always be an option.
Your employees deserve the best. That’s certainly true should they ever need access to comprehensive cancer care close to home. At Cancer Treatment Centers of America® (CTCA) in Phoenix, we specialize in the treatment of just one disease: cancer. We use the latest diagnostic tools to identify the molecular composition of each patient’s unique cancer, then develop personalized treatment plans that help patients fight their disease, and provide integrative oncology services that help them manage side effects as they progress through treatment. This is precision cancer treatment delivered in a uniquely compassionate environment, now in three locations across the greater Phoenix area: Goodyear, North Phoenix and Scottsdale. For more information about our services, please call 800 · 515 · 5603 or email employer-referrals@ctca-hope.com.
© 2018 IPB
HEALTHCARE DECISIONS Hospitals and Medical Centers (con’t.) Banner Thunderbird Medical Center 5555 W. Thunderbird Rd., Glendale (602) 865-5555 bannerhealth.com
HonorHealth Osborn Medical Center 7400 E. Osborn Rd., Scottsdale (480) 882-4000 honorhealth.com
Banner University Medical Center Campus 1111 E. McDowell Rd., Phoenix (602) 839-2000 bannerhealth.com
HonorHealth Shea Medical Center – Shea Medical Center 9003 E. Shea Blvd., Scottsdale (480) 323-3000 honorhealth.com
Cancer Treatment Centers of America at Western Regional Medical Center 14200 Celebrate Life Way, Goodyear (623) 207-3000 cancercenter.com
Mayo Clinic Hospital 5777 E. Mayo Blvd., Phoenix (480) 515-6296 mayoclinic.org/patient-visitor-guide/ arizona
Cardon Children’s Medical Center 1400 S. Dobson Rd., Mesa (480) 412-5437 bannerhealth.com
Mountain Vista Medical Center 1301 S. Crismon Rd., Mesa (480) 358-6100 mvmedicalcenter.org
Dignity Health Chandler Regional Medical Center 1955 W. Frye Rd., Chandler (480) 728-3000 chandlerregional.org
Phoenix Children’s 1919 E. Thomas Rd., Phoenix (602) 933-1000 phoenixchildrens.org
Dignity Health Mercy Gilbert Medical Center 3555 S. Val Vista Dr., Gilbert (480) 728-8000 mercygilbert.org Dignity Health St. Joseph’s Hospital & Medical Center 350 W. Thomas Rd., Phoenix (602) 406-3000 stjosephs-phx.org Gilbert Hospital 5656 S. Power Rd., Gilbert (480) 984-2000 gilberter.com HonorHealth Deer Valley Hospital 19829 N. 27th Ave., Phoenix (623) 879-6100 honorhealth.com HonorHealth John C. Lincoln Medical Center 250 E. Dunlap Ave., Phoenix (602) 943-2381 honorhealth.com
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St. Luke’s Medical Center 1800 E. Van Buren St., Phoenix (602) 251-8100 stlukesmedcenter.com Valleywise Health Medical Center 2601 E. Roosevelt St., Phoenix (602) 344-5011 valleywisehealth.org
Valleywise Community Health Center – South Phoenix/Laveen 5650 S. 35th Ave., Phoenix (833) 855-9973 valleywisehealth.org Valleywise Community Health Center – South Central Phoenix 33 W. Tamarisk St., Phoenix (602) 344-6600 valleywisehealth.org Valleywise Community Health Center – North Phoenix 2025 W. Northern Ave., Phoenix (602) 655-6300 valleywisehealth.org Valleywise Community Health Center – Mesa 59 S. Hibbert, Mesa (480) 344-6200 valleywisehealth.org Valleywise Community Health Center – McDowell 1101 N. Central Ave., Phoenix (602) 344-6550 valleywisehealth.org Valleywise Community Health Center – Maryvale 4011 N. 51st Ave., Phoenix (623) 344-6900 valleywisehealth.org
Valleywise Emergency – Maryvale 5102 W. Campbell Ave.,Phoenix (602) 344-5011 valleywisehealth.org
Valleywise Community Health Center – Guadalupe 5825 E. Calle Guadalupe, Guadalupe (480) 344-6000 valleywisehealth.org
Valleywise Comprehensive Health Center – Phoenix 2525 E. Roosevelt St.,Phoenix (833) 855-9973 valleywisehealth.org
Valleywise Community Health Center – Chandler 811 S. Hamilton St., Chandler (480) 344-6100 valleywisehealth.org
Valleywise Comprehensive Health Center – Peoria 8088 W. Whitney Dr., Peoria (833) 855-9973 valleywisehealth.org
Valleywise Community Health Center – Avondale 950 E. Van Buren St., Avondale (623) 344-6800 valleywisehealth.org
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Enrolling all generations. Open Enrollment Everyone deserves clinical expertise with humankindness. With your choice of doctors and specialists, you’ll be surrounded by people who truly care about you and your family’s health. So this year during Open Enrollment, choose a plan that includes Dignity Health’s physicians and hospitals. Enroll in humankindness at dignityhealth.org/dhmg-arizona/about-us/open-enrollment.
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HEALTHCARE DECISIONS Mental Health Services and Healthcare Amid COVID-19, bringing employees back to work has become just one aspect that has created a new awareness to mental health and the workplace. Here are some services that can help. Arizona Behavioral Health Center 2600 N. 44th St., Phoenix (602) 343-8232 azbhc.com
Terros Health Multiple Valley locations (602) 685-6000 terroshealth.org
CPES Behavioral Health Services 2525 W. Huntington Dr., Tempe (602) 685-1940
Valleywise Behavioral Health Center – Phoenix 2619 E. Pierce St., Phoenix (602) 344-5011 valleywisehealth.org/services/ behavioral-health
Devereux Advanced Behavioral Health 11024 N. 28th Dr., Phoenix (602) 944-6222 devereux.org Magellan Health Multiple Valley locations magellanhealth.com MIND 24-7 1465 N. Scottsdale Rd., Scottsdale (844) 646-3247 mind24-7.com Southwest Behavioral & Health Services 3450 N. 3rd St., Phoenix (602) 265-8338 sbhservices.org
Valleywise Behavioral Health Center – Mesa 570 W. Brown Rd., Mesa (602) 344-5011 valleywisehealth.org/services/ behavioral-health Valleywise Behavioral Health Center – Maryvale 5102 W. Campbell Ave., Phoenix (602) 344-5011 valleywisehealth.org/services/ behavioral-health
Urgent Care Walk-in, face-to-face, brick-and-mortar urgent care facilities remain an important element in the healthcare system, even as virtual options expand. Akos Urgent Care 5104 N. 67th Ave., Glendale (602) 962-6296 akosurgentcare.com
NextCare Urgent Care Multiple Valley locations (888) 381-4858 nextcare.com
Alliance Urgent Care 7 Valley locations (855) 887-4368 allianceurgentcare.com
Phoenix Children’s Urgent Care 4 Valley locations (480) 922-5437 phoenixchildrensurgentcare.org
Banner Urgent Care Multiple Valley Locations urgentcare.bannerhealth.com
Urgent Care Extra Multiple Valley locations urgentcareextra.com
Workplace Ergonomics Wellness includes how our bodies function in our work spaces, and is therefore greatly impacted by the physical elements of that space. These businesses provide solutions, from chairs to desks to lighting — and beyond. ESI Ergonomic Solutions 4030 E. Quenton Dr., Mesa (800) 833.3746 esiergo.com Goodmans Interior Structures 1400 E. Indian School Rd., Phoenix (602) 263-1110 goodmans.com
Workplace Wellness There are many companies working to orchestrate alternative healthcare plans and consulting to customize healthcare benefits programs and policies for companies. These organizations below offer consulting, program development and direct care programs for businesses of all sizes. Absolute Health 8360 E. Raintree Dr., Scottsdale (480) 991-9945 absolutehealthaz.com Healthcare Solutions Centers 4831 N. 11th St., Phoenix (602) 424-2101 hcsonsite.com
FastMed Urgent Care Multiple Valley locations (480) 545-2787 fastmed.com
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We’re Making Our Mark on Medicine OptumCare® believes that great health begins by providing forwardthinking leadership in the discipline of medicine. So we proudly serve Phoenix with advanced health care at 16 clinics with over 40 providers, all dedicated to putting the patient first. We’re here to stay—and to move care in our community in bold new directions. Find out more at professionals.optumcare.com.
©2020 Optum, Inc. All rights reserved.
Embracing culture. Empowering health. Equality Health is the nation’s leading integrated health delivery system focused solely on improving care for diverse communities through culturally sensitive providers and programs that improve access, quality, and trust.
The new culture of care Like, Follow, Share
equalityhealth.com
Bailey, Eric M., 12
Derouin, Jim, 52
Mihaljevic, Kristen, 43
Sachtleben, Scott, 16
Banquil, John, 45
Doolittle, Rhett, 24
Millar, Rob, 50
Sellers, Jennifer, 11
Bianchi, Justin M., 35
Ellis, Shawn, 24
Neale-May, Donovan, 13
Spight, Jeff, 24
Brodkin, Edward, Dr., 27
Flores, Angelina, 10
Nielsen, Angela, 14
Strunk, Casey, 24, 26
Buckley, Kevin, 38
Fox, Sam, 18
Pallathra, Ashley, 27
Updike, Vicki, 31
Butler, Jen, 41
Gelb, Rob, 20
Patel, Milan, 20
Vasquez, Diana, 40
Butler, Tyler, 36
Grumney, Nielson, 16
Penrose, Spencer, 42
Waldrop, Stephanie, 11
Caputi, Tammy, 49
Hadder, Don, 49
Ratcliff, Jim, 49
Weber, Bruce, 42
Carney, Caroline, Dr., 9
Haines, Chris, 49
Ray, Kristen, Dr., 29
Wuollet, Phil, 34
Carradona, Joe
Harts, Minda, 31
Richardson, Phil, 15
Wurwand, Jane, 31
Carradona, Patty
Hart-Wells, Libby, Ph.D., 49
Rodgers, Laraine, 51
Wynn, John, D.Div., 22
Chase, Peggy, 24
Henninger, Don, 47
Rubenstein, Nirit, 14
Zebrowski, Sandra, 24
Croner, Christopher, Ph.D., 66
Krumwiede, David, 16
Sacco, Rachel, 52
Zimmerman, Mark, 12
11Eleven Consulting, 36
Desert Financial Credit Union, 19
RecovR, 22
Stearns Bank, 8
Angry Crab Shack, 12
Dignity Health, 61
RENTCafé, 15
Strunk Insurance Group, 24, 26
Arcadia Management Group, 12
Dovly, 14
RETSY, 12
Technologent, 38
Arizona Commerce Authority, 2, 3, 68
Economic Club of Phoenix, 6
Ritoch Powell Associates, 36
Terros Health, 24
Employee Benefits International Inc., 11
Rowpar Pharmaceuticals, Inc., 49
UnitedHealthcare, 54
ROXX Vodka, 14
US Capital Development, 16
SalesDrive, 66
Valenz, 20
Scottsdale Coalition of Today and Tomorrow, 47
W. P. Carey School of Business, 6
Arizona Community Foundation, 37, 43
Energy Cloud, 44
Arizona Diamondbacks, 11 Arizona Manufacturing Extension Partnership, 68 Arizona State University, 6, 23 Author & Edit Hospitality, 18 Aventiv Technologies, 36 Bailey Strategic Innovation Group, 12 Bianchi & Brandt, 35 Blue Cross Blue Shield of Arizona, 24, 57
Epstein Schneider PLC, 34 Equality Health, 64 Experience Scottsdale, 52 Gensler, 40 Gila River Hotels & Casinos, 11 Hance Park Conservancy, 36 Harvard Investments, 16
BMW, 44
Kiterocket, 67
Business Warrior, 24.
KPMG LLP, 13
Caesars Sportsbook, 11
Lincoln Property Co., 15
Cake, 21
Ling’s Wok Shop, 45
Cancer Treatment Centers of America, 59
Lovitt & Touché, 24
Chamberlin + Associates Real Estate Management, 15
Scottsdale, City of, 50
Willmeng Construction, 16 Wynn Network, The, 22 Yale Electric West, 49
Snell & Wilmer, 7
Jive, 8 JLL, 17
Cavanagh Law Firm, The, 11
Scottsdale Unified School District, 49
Weber Group, 42
JB Partners, 41
BMO Harris, 5
CapRock Partners, 15
Scottsdale Community College, 46, 49
CHECK US OUT
LPC Desert West, 16 Magellan Health, 9 MIND 24-7, 24 Optum Care, 63
Chief Marketing Officer Council, 13
PathogenDx, 20
Coreslab Structures, 15
Prologis, 23
Cushman & Wakefield, 16
PROSHRED Arizona, 12
In each issue of In Business Magazine, we list both companies and indivuduals for quick reference. See the stories for links to more.
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A CANDID FORUM
BY
Are Investors Missing This Huge Opportunity in Their Private Equity Due Diligence? A high-impact sales team can represent significant revenue and valuation potential for a buyer by Dr. Chris Croner
Christopher Croner, Ph.D., is principal at SalesDrive and coauthor (along with Richard Abraham) of the book Never Hire a Bad Salesperson Again: Selecting Candidates Who Are Absolutely Driven to Succeed (The Richard Abraham Company LLC, ISBN: 978-0-97419961-0), which details his research and practice in identifying the nonteachable personality traits common to top producers. Dr. Croner received his B.A. in psychology from DePaul University and his master’s and Ph.D. in clinical psychology from Southern Illinois University at Carbondale. He developed the proprietary DriveTest® online sales test and The Drive Interview®, both used for hiring “hunter” salespeople. Using this methodology, he has helped more than 1,200 companies worldwide to hire and develop topperforming salespeople. salesdrive.info salesdrive.info/product/ never-hire-a-badsalesperson-again
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The competition to acquire high-quality companies is intense. Private equity firms each have their own methods for evaluating the current and future values of companies they wish to invest in: the product and service, leadership team, future scalability, and competition in the space. But there’s another piece that often gets overlooked, one that may hold the biggest key of all to valuation and future opportunity: the efficacy of the current sales team. Most sales teams are operating far below their potential as individual salespeople and as a unit. This is particularly true for mid-sized and smaller companies that may not have the management resources the larger companies do relative to developing high-performance recruiting and training. A high-impact sales team can represent significant revenue and valuation potential for a buyer. Unlike, say, replacing equipment or other large capital costs, raising salesperson and team performance can be achieved without a huge capital outlay, and the results can be significant. At SalesDrive, we have worked with more than 1,200 companies on their sales forces and we have found that the vast majority of companies are settling for and operating with compromised sales talent. Often, upon review, they are operating at 50% to 90% under capacity for revenue per salesperson. A typical scenario reveals 10% to 15% of top performers, 60% to 65% of average performers, and 25% of underperformers are virtually deadweight to the organization but are carried for any number of reasons. Companies fall into these patterns because highperformance salespeople are hard to find. Only about 18% of the population share the necessary characteristics to outperform as a salesperson, and companies need to fill positions, so they compromise. This is a huge mistake since the cost of hiring, managing and training an underperforming salesperson, along with opportunity cost, quickly exceeds $100,000 per person … often much more. My advice for private equity firms: Before buying, assess the sales team for drive. Drive is the most critical personality trait needed for success in sales. People either have it or they don’t. It’s made up of three nonteachable traits: need for achievement, competitiveness and optimism. SalesDrive’s proprietary DriveTest® — an assessment based on 90 years of research on the subject as well as SalesDrive’s own work — helps businesses identify this elusive trait in candidates.
Often, bad salespeople are hired because the sales manager had a “gut feeling.” But the “golden gut” doesn’t exist.
Administer this test as part of due diligence. If the sales team is high in drive, that’s assurance they are solid and poised for success. Ironically, it may be even better if the sales team isn’t high in drive because there’s more room for growth if mediocre sales talent is replaced with high-drive talent over time. Either way, it’s important to know upfront. After a buyout, get the right salespeople into the right roles. Obviously, it’s best to have high-drive salespeople (“hunters”) going after new business. But that doesn’t mean firing everyone who isn’t a hunter. A good team needs “farmers,” too. While hunters are great at hooking new clients, farmers are needed to transform that new client into a repeat buyer. Sometimes, companies have tremendous talent on their sales team but don’t realize it because they’re in the wrong roles. Just reshuffling roles can make a huge impact on sales numbers. Then, move to a data-driven hiring system to quickly hire sales superstars. Often, bad salespeople are hired because the sales manager had a “gut feeling.” But the “golden gut” doesn’t exist. It’s far better to apply a science-based sales aptitude test (not a basic personality test, which can be easily faked) early in the hiring process to capture high-potential candidates and avoid low-potential candidates. Then, follow it up with a well-conducted behavioral interview to get past the candidate’s initial impression and reveal what’s actually under the surface. Salespeople are masters at fooling their interviewer. Too often, the interview is the best sale an employer will ever see out of a candidate. And “demonstrated success” isn’t a good strategy either. For example, what if the products they represent have strong brand recognition and that’s what was doing the heavy lifting? There’s just no substitute for a good sales aptitude test to make sure to hire only superstars after the acquisition. The bottom line? Just by learning how to analyze and recruit talent with today’s powerful assessment technology, an investor can stack their acquisition’s bench with high-drive salespeople — which, in turn, sets them up to quickly reap great ROI. The sales team can make or break the future of a company that’s under consideration for purchase. The cost of investing in a solid, science-based assessment that will provide a much clearer picture of the company’s potential — and enable an investor to make decisions based on real data — is peanuts when considered against the payoff.
“Arizona MEP was very creative, looked at the individual opportunities and challenges, and supported what we needed to tackle the challenge and grow. They do it in a personal, creative, and helpful way.” Sherri Barry, Co-Founder, FABRIC
With decades of leadership, manufacturing and business expertise, the Arizona Commerce Authority’s Manufacturing Extension Partnership (Arizona MEP) helps small- and medium-sized manufacturers achieve their goals. This past year, Arizona MEP provided critical expertise to FABRIC in response to the impacts of COVID-19. The program enabled Tempe-based FABRIC to set up four socially distanced production lines, recruit more than 60 team members and pivot operations to produce more than 200,000 FDA-approved, reusable hospital gowns statewide.
Arizona’s manufacturers can leverage Arizona MEP’s programs to continue recovering. From responding to workforce and supply chain disruptions to making operational shifts to support the manufacturing of PPE and critical supplies, the Arizona MEP Emergency Assistance Program provides subsidized services to help manufacturers return stronger for the future. Applications for this one-time, CARES Act-supported program are open until late Spring 2021 and offered on a first come, first served basis.
Learn more about Arizona MEP and the Emergency Assistance Program azcommerce.com/programs/arizona-mep | 602-845-1256