JAN. 2015
Cyber Insecurity: Internet Threat & Digital Vulnerability
: N O I T ULA
G E R
r o s s e n si u B g n i d l i u B t en n? m w n o r D e t v I o g n i Is G k a e Br Bad Mood Is Bad Business You as a Brand: Make It Matter Super Bowl
Is All About
Super Business THIS ISSUE Global Chamber Arizona Small Business Association
Arizona’s
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JANUARY 2015
COVER STORY
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Regulation: Is Government Building Business or Breaking It Down?
For this perennial hot-button topic, Don Harris explores the situation in Arizona with leaders in the business community and those who influence legislation, including newly elected political office-holders. FEATURE
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Company-wide “Bad Mood”? Boost the Entrepreneurial Spirit
When bad mood pervades a company, employees don’t feel they have a stake in its future — and that’s a problem. Michael Houlihan and Bonnie Harvey discuss how to recognize it and rectify it. DEPARTMENTS
11
Guest Editor
Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry, introduces the “Regulation” issue.
12 SPECIAL SECTIONS GLOBAL CHAMBER® Global Chamber Events ®
www.globalchamber.org/events
Global Chamber Tucson Tues., Jan. 13 “Funding for Exporters” Special program for exporters on new and traditional funding options, 7:30am to 10am. RSVP to events@globalchamber.org
Global Chamber Phoenix Tues., Jan. 20 “International Documentation” Training seminar on international documentation needed to successfully and legally grow your business globally, 8am to 4pm. RSVP to events@globalchamber.org
Global Chamber Tucson Wed., Jan. 21 Seminar on NAFTA and 3 New Free Trade Agreements Get up to speed on new developments with free trade agreements that will impact your business and open new opportunities, 8am to 4pm. RSVP to events@globalchamber.org
Spotlight Event Global Chamber Phoenix Thurs., Jan. 12 “Funding for Exporters” Special program for exporters on new and traditional funding options, 7:30am to 10am. RSVP to events@globalchamber.org
Inside this section
2 Find Capital for Exporting
through a New Investment Platform
3 CEO Peer Advisory Boards Support Global Growth 4 Faster Global Growth with World-Class Systems
5 Enhance Personal Skills to Improve Teamwork and Results
6 Compete More Effectively In
the International Marketplace
14
JANUARY 2015 - APRIL 2015
To Export: Connect, Embrace and Commit Doug Bruhnke, CEO and Founder of Global Chamber®
Exporting is not easy. Less than 1 percent of U.S. companies export. But at least 20 percent of U.S. companies have operating systems in place to be successful with international expansion. Here are three tips to help you be more effective in your global growth. 1) Connect. Start your global journey on the right foot with good ideas and resources, and then stay connected to those resources as you go. Too few companies get started with international business, and fewer still do the right things down the road. Because three months later, when there’s a bump in the road, you’ll need to see the bump and respond effectively to it. 2) Embrace. Love this journey you’re embarking on. It is a world of new culture, countries, differences, complexities, food,
logistics, marketing, law, accounting — all of the key areas that will support your business success. Wrap your brain and arms all around it. You may not like some of these things — like international tax. Yikes. But someone in your world should love it, know it, and keep you on the straight and narrow. 3) Commit. Too many of us have had global ideas and, because they seemed too scary, too risky and too much for us to tackle, period, we stopped. Often what’s missing is the commitment to your idea, your business and your opportunity to grow. It’s challenging and daunting to export. But you can do it, and it’s something any business can do if you’re connected to the right people and you make the commitment to see it through. Global Chamber globalchamber.org
Global Chamber Launched to 500 Metro Areas
“All roads lead through the Global Chamber.” —Kyle Walker, Green Card Fund
Arielle Cottrell, Marketing Manager of Global Chamber®
Global Chamber® has officially launched globally, serving companies throughout the world looking to grow across borders. Our team keeps you engaged with information and resources you need to grow. Every successful global executive will admit that they could have done it better and faster, and we’re gaining techniques every day to help you be more successful. The benefits of Global Chamber individual and organization memberships include enabling you to: • Access customers and growth opportunities around the world to grow your business; • Access partners, leaders, professionals and business services to grow a global team to be successful; • Access executives, professionals and interns to build your global team; • Gain insights from other executives to assist your global business journey; and • Gain mentoring and consulting to open doors, reduce risk and increase profit.
“If (companies) don’t have the experience, there’s the Global Chamber’s resources to use.” —Lee Benson, Able Engineering and ETW “Over 95 percent of the world’s population is somewhere else, and that portion is growing faster than the U.S. portion. It’s important for every community to tap into the increasing wealth of the world, and it’s important for the world because cross-border business increases wealth and understanding everywhere.” — Doug Bruhnke, Global Chamber
GlobalChamber.org
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45 Global Chamber Partner section
by Rick Murray, Chief Executive Officer, ASBA
The Arizona Small Business Association (ASBA) is the largest trade association in the state representing 10,000+ member businesses, and over 1/2 million employees in all 15 counties. ASBA members enjoy access to significant group discounts, countless opportunities to do business with each other, a wide array of insurance products, and active advocacy efforts on public policy issues to protect their businesses. Discover more at www.asba.com. Join ASBA. Be amAZed®
Before the Affordable Care Act (ACA), large groups like the Arizona Small Business Association (ASBA) had the ability to negotiate specific plan designs and rates with carriers based on underwriting requirements.
In most
cases, it created a preferred buying opportunity for our
ASBA’s sole purpose for existing is to help small businesses be
20
successful. Negotiating preferred rates on healthcare was a huge part of why some business owners chose to be part of ASBA. With that taken away, we had to figure out what role ASBA would play, if any, in helping small business obtain healthcare coverage. The Affordable Care Act has been part of the healthcare landscape for a year now. While much of the confusion still exists around the mandates and tax credits of the ACA, the marketplace shopping experience never materialized…at least until now. That’s why I am excited to announce that the Arizona Small Business Association has partnered with ConnectedHealth to launch Connect2CoverageAZ, a co-branded version of ConnectedHealth’s award-winning Smart Choices™ Marketplace.
It is an online health
employees, and their family members to shop for health insurance plans and other ancillary products from national and regional health insurance companies based on their personal preferences and financial goals.
benefits, while helping them understand the total financial impact of their benefit options. The new portal is also fully integrated with the federal marketplace and allows members and their
Phoenix, AZ 85034
employees to determine if they are eligible for government financial support for their health
p. 602.306.4000
coverage.
Southern Arizona 1022 W. Ina Rd. Tucson, AZ 85712 p. 520.327.0222 © 2015 ASBA. A publication of the Arizona Small Business Association. For more information or to join ASBA, please contact us at www.asba.com. Section designed by the Arizona Small Business Association.
Healthcare
36
Nonprofit
Evaluating the CEO is one of the most important things nonprofit boards can do.
42
Assets
2015 Mercedes-Benz GLA 45 AMG Plus: Easy-to-wear health monitors
44
Power Lunch
Cuff Plus: Where to watch the game
66
Roundtable
Your personal brand is a business commodity, too. ON THE AGENDA
Connect2CoverageAZ will help ASBA participate in delivering relevant benefits to our members and their employees. ASBA launched the new service in December and I am excited to also offer this new technology to everyone in the Arizona business community, whether members or not, so they can make informed decisions about their families’ insurance. Small business owners need flexible solutions when it comes to benefits coverage for their employees and Connect2ConverageAZ delivers it simply and efficiently. This effort will also continue to position ASBA as a forward-thinking organization helping not only its members but
22
Businessman & Businesswoman of the Year Luncheon — Gilbert Chamber of Commerce
01
Business Association
Partner section
Spotlight
“Primary Need for Primary Care,” “Growing the Scottsdale Cure Corridor,” ”Personal Health Files” and “Diagnosis by Crowd”
all Arizonans to stay healthy and attract top talent to grow their businesses.
53 Arizona Small
39
2015 Legislative Forecast Luncheon — Arizona Chamber of Commerce and Industry
insurance and benefits shopping platform where someone can have health insurance can be purchased in as little as 12 minutes. Connect2CoverageAZ allows business owners, their
This new offering assists users in navigating the complexities associated with selecting health 4600 E. Washington Street, Suite 340
Books
New releases give fresh insights on business thinking.
Care Act, that opportunity has been largely neutralized
ThinkSmallBiz. . . . . . . . . . . . . . . . . pg. 4 Central Arizona
35
by requiring certain minimum benefits and no
(or shopping experience), has begun to take shape. The idea of a one-stop, easy-to-use
About Healthcare Exchanges . . . . pg. 3 Arizona: It’s Time to
Technology
Legal
Attorneys discuss what constitutes business slander and how businesses can evaluate response strategies.
underwriting based on previous medical history.
ASBA’s 2015 Legislative Forecast . . . . . . . . . . . . . . . . . . . . .pg. 2
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members. With the implementation of the Affordable
In This Issue
3 Things You (Probably) Didn’t Know
Briefs
“LifeLock as Employee Benefit,” “Small Business Resource Network,” “Taking the Headache Out of Hiring,” “Tech Project Team Includes Kids,” “Tool for a Business Mind,” “High Times in North Phoenix,” “More Up at Park Place,” “Marijuana Site-ings,” “Construction Funding on Credit” and “CO+EXCHANGES: Global Collaboration”
“The FBI’s 10 Internet Safety Tips” and “Cyber Security or Digital Vulnerability?”
Small businesses need flexible solutions when it comes to benefits coverage About Us
Feedback
Noted business and community leaders Michelle Ahlmer, Tim Lawless and Greg Vigdor respond to IBM’s burning business question of the month.
DEPARTMENTS
By the Numbers
Arizona will be in the global spotlight leading up to Super Bowl XLIX on Feb. 1, which many hope translates to a boost in our economy.
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40
Calendar
Business events throughout the Valley
From the Top
View from the top looks at how Marie Sullivan expanded AWEE’s funding and programming.
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I N B U S I N E S S M AG . CO M
The PHX Sky Train® now connects all three airport terminals with the regional Valley Metro Rail as well as Sky Harbor’s East Economy Parking.
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January 2015 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 Rick Murray, CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org Dorothy Wolden, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org Rick Kidder, President & CEO Scottsdale Area Chamber of Commerce (480) 355-2700 www.scottsdalechamber.com Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.
ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com
Conquest Training Systems is Giving Away $ 1 , 0 0 0 , 0 0 0 in Sales Training to Veterans
100 selected veterans will each receive $10,000 in sales training through Conquest’s “Selling System” that will give veterans opportunities to acquire six-figure sales positions in a variety of industries. The development platform will consist of Training, Coaching, and Real World Experience. Conquest will even assist in placement of a sales position!
Arizona Hispanic Chamber of Commerce azhcc.com Chandler Chamber of Commerce chandlerchamber.com Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Black Chamber of Commerce phoenixblackchamber.com Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com
Applications are now being accepted. For more information please email
WESTMARC westmarc.org
i n f o @ c onqu e s t t r a i n i ng . c om Untitled-3 1
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3/20/14 9:00 AM I N B U S I N E S S M AG . CO M
January 2015
VOL. 6, NO. 1
Publisher Rick McCartney
Editor RaeAnne Marsh
Art Director Benjamin Little
Contributing Writers Bonnie Harvey Michael Houlihan Mike Hunter Julie Iacobelli Sue Kern-Fleischer Alexandra Lyon Charles Shillingburg Alison Stanton Contributing Photographer Camron McCartney ADVERTISING
Operations Louise Ferrari Business Development
Louise Ferrari Alex Goff Craig Jeffries Steve Kulick Maria Mabek Sara May Kelly Richards Cami Shore
Events Amy Corben More: Visit your one-stop resource for everything business at www.inbusinessmag.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@inbusinessmag.com.
Post Your Local Jobs at inbusinessmag.com Read by those vested in business here, In Business Magazine and inbusinessmag.com have become the resource for business owners and executives in the Valley and beyond. Now, business owners can post their open positions in a place where they are guaranteed to be seen by top candidates.
Visit inbusinessmag.com now to post your open positions!
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President & CEO Rick McCartney Editorial Director RaeAnne Marsh Senior Art Director Benjamin Little Financial Manager Donna C. Mitchell, CPA Office Manager Savanah Holmgren Accounting Todd Juhl Corporate Offices 4455 E. Camelback Road Building C, Suite 135 Phoenix, AZ 85018 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com Vol. 6, No. 1. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You 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. Š 2015 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 the publisher.
I N B U S I N E S S M AG . CO M
GLENN HAMER, ARIZONA CHAMBER OF COMMERCE AND INDUSTRY
Sense and Regulation
Glenn Hamer has been president and CEO of the Arizona Chamber of Commerce and Industry since 2006. He has overseen the organization’s development into one of the most respected pro-business public policy entities in the state, and has led the business community’s successful advocacy for passage of landmark economic competitiveness packages that have dramatically improved Arizona’s job creation prospects. He was named Best Powerbroker by the Arizona Capitol Times in 2013 and 2014, among other recognitions. The experience he brought to the Chamber includes having served in high-profile leadership positions in the solar industry, as chief of staff to Arizona Congressman Matt Salmon, and as executive director of the Arizona Republican Party during a winning U.S. Senate race.
Regulation is a framework for business. It can be a strong support by which businesses can grow and thrive, but conversely can be a tight mesh of barriers that obstruct efforts by businesses to develop. Arizona is widely viewed as a state whose regulatory environment is conducive to business. Former Gov. Jan Brewer made regulatory reform a hallmark of her administration. One of her first official acts as governor was to implement a moratorium on new regulations. Working closely with the legislature, she ushered through a number of initiatives to help make doing business in Arizona easier and more predictable, such as the MyDEQ Web portal, which allows business to more easily secure environmental permits and make payments online. Arizona’s business community is excited to get to work with new Gov. Doug Ducey, whose business background building an internationally recognized brand has given him expert insight on the negative effect red tape can have on a company’s ability to grow. I spoke with Don Harris for his cover story on this subject, as he reached out to business and government leaders to explore the regulatory climate in Arizona. All share their views and experience on where regulation can provide opportunity for business growth and where it can be a detriment to that growth. Newly elected Gov. Ducey and other newly elected state officers also offer their views on the impact to business in the next few years. The upcoming Super Bowl is a hot topic, and this issue’s By the Numbers feature spotlights Phoenix’s hosting of this iconic sporting event and the past and forecasted benefits to our economy. An article on the Technology page addresses cyber security concerns of business, including areas cyber security expert Hoyt Kesterson sees as dangerously misunderstood. Business slander is the focus of this month’s Legal feature. And for the Roundtable discussion, marketing professional Charles Shillingburg considers an often-overlooked aspect of branding: the businessperson’s personal brand. In a feature on Leadership, Michael Houlihan and Bonnie Harvey ask businesses to assess the pervading attitude among their work force. Recognizing how this impacts productivity, they offer strategies to kindle an entrepreneurial spirit that can create a positive energy throughout the company that, in turn, creates a positive impact on its bottom line. Presenting a broad range of topics, In Business Magazine continues to be a relevant resource with in-depth articles to serve the Valley’s business community from startups to major corporations. I hope you enjoy this January issue, and here’s to a prosperous 2015. Sincerely,
Glenn Hamer President and CEO Arizona Chamber of Commerce and Industry
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Don’t miss the Arizona Chamber of Commerce and Industry’s 2015 Legislative Forecast Luncheon on Jan. 9 (see page 39 for details).
CONNECT WITH US: Story Ideas/PR: editor@ inbusinessmag.com Business Events/ Connections: businessevents@ inbusinessmag.com
Factors in Building Business So much goes into making a state a great place to do business.
In addition to the discussion in this issue’s cover story (page 28), please see “Regulation: Q&A with Glenn Hamer and Farrell Quinlan” online at www.inbusinessmag.com for more on this topic.
in this regard. His knowledge and ability to bring people together
Many kicked into gear after the devastating recession, but the
is making a difference and is empowering others to see that, with
true leaders are those who understand the inner workings of
a little bit of heavy lifting, we can come together to affect our
regulations, incentive and opportunity to grow an economy and
economic picture overall and demonstrate a level of success that
who can focus on sustainable efforts to continue the growth and
will, in turn, bring further business to the Valley. Also, his work to
opportunity. We are fortunate that many business organizations
empower those doing business here and elevating critical sectors,
and city and state leaders are so focused on making Arizona an
such as manufacturing, has exponentially benefited us here in
authentically viable place to do business.
Arizona.
Marketing/Exposure: advertise@ inbusinessmag.com Visit us online at www.inbusinessmag.com
—Rick McCartney, Publisher
We want to thank Glenn Hamer for all of his incredible leadership
Let us know what you think of our redesign for In Business Magazine. Email our publisher at feedback@inbusinessmag.com.
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VALLEY LEADERS SOUND OFF
Q: What state government act or action has impacted (for good or bad) your industry?
FEEDBACK QUESTION: Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessmag.com
For all past Feedbacks go online to inbusinessmag.com and see what Valley executives think on various business topics.
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MICHELLE AHLMER
TIM LAWLESS
GREG VIGDOR
Executive Director Arizona Retailers Association Sector: Retail
President NAIOP Arizona Sector: Real Estate
The retail industry in Arizona is poised to receive some long-awaited relief from one of the most complicated sales tax systems in the nation. The majority of states conduct sales tax audits through a state agency; however, Arizona has allowed cities to audit businesses within their jurisdictions. This approach has put businesses in the position of having multiple audits and being subject to varying interpretations of tax liability. As of January 1, 2015, the Arizona Department of Revenue has begun administering a standardized state audit program as a result of historic legislation passed in 2013. Governor Brewer supported the legislation and Representative (now Senator-elect) Debbie Lesko championed HB 2111, Sales Tax Reform, which created the standardized audit program that requires all state and city auditors be trained and certified by ADOR. Additionally, business will be subject to only one audit that will include state, county and city sales tax liabilities. Furthermore, city audits will be limited to taxpayers engaged in business in only one city, and multijurisdictional taxpayers will be audited only by ADOR.
The current state budget deficit and a daunting structural deficit the following year will be felt by all. One harm it causes commercial real estate is it negatively impacts the ability to develop a wellqualified work force due to education cuts. The budget situation, however, creates the opportunity to reform many aspects of state and local government service delivery. Certainly, we can do a better job of getting more money as a percentage of every dollar spent into the classroom than we did since the passage of Proposition 301 in 2000. Because of the budget, our top state priority will be to preserve the assessment ratio reduction savings for commercial property taxation passed into law in 2011 (HB2001). We need to send the signal that we will continue to address our top impediment to economic development, which are high property taxes. Along with Governor Ducey, we will fight any effort to impose new taxes on business. This includes a new temporary sales tax rate increase or expanding the sales tax base to include goods and services currently exempted from the state base, such as commercial leases.
President and CEO Arizona Hospital and Healthcare Association Sector: Healthcare
Arizona Retailers Association azretailers.com
Tim Lawless joined the Arizona chapter of NAIOP as its president in November 2005. The Arizona Chapter of NAIOP is the statewide voice of the Arizona commercial real estate community at the legislature and before regulatory agencies. NAIOP’s membership is more than 700 strong and includes developers, brokers and commercial real estate service professionals.
Executive director of the ARA since 1996, Michelle Ahlmer administers its legislative and government affairs program on behalf of national, state and local retail companies. She is the spokesperson for the association — whose 1,400-plus members range from an independent confectioner to the largest retailer in the world — and a resource for ARA members as well as policy makers.
NAIOP Arizona naiop-az.org
Without a doubt, the re-opening of Medicaid rolls and restoration of coverage for the working poor has been the most impactful state action for Arizona hospitals and the healthcare industry at large. Medicaid Restoration, enacted by Governor Brewer and the Arizona Legislature in 2013 but implemented in 2014, has allowed 300,000 eligible Arizonans to access quality, affordable care. It has also reversed a troubling trend of spiraling costs borne by hospitals to provide care to the uninsured. As of October 2014, the cost of uncompensated care in Arizona had declined one-third from a year ago — a significant savings for hospitals, especially safety-net and rural providers. This isn’t the whole story, of course. More than one-third of Arizona hospitals who responded to a recent AzHHA survey reported they continue to operate at a loss. There are real questions about whether a provider assessment paid by hospitals as part of the Medicaid Restoration plan is properly calibrated or unduly burdensome. This analysis is ongoing. But there can be no denying the reopening of Medicaid enrollment was an instance when state government took action to the benefit of hospitals, health providers and Arizona families. Arizona Hospital and Healthcare Association azhha.org Greg Vigdor is president and CEO of AzHHA, the state’s largest and most influential organization representing hospitals, health systems and affiliated organizations across Arizona.
Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessmag.com. Look for survey questions and other research on our business community.
QUICK AND TO THE POINT
BYTES
LifeLock as Employee Benefit Help employees stay protected, satisfied and productive at work, knowing they’re getting the industry-leading identity theft protection benefits. An entirely new form of value to bring to employees, this service offers the best-in-class detection of identity theft. With LifeLock, employees have a proactive partner that constantly monitors their identity, scanning for threats and responding on their behalf. A tool that results in greater employee satisfaction and retention — and security. lifelockbusinesssolutions.com
Small Business Resource Network The AZSBDC Network is an innovative partnership between the state’s community college districts, the Microbusiness Advancement Center in Tucson and the U.S. Small Business Administration. It is fully accredited by the Association of Small Business Development Centers, a national system that connects 63 SBDC networks across the country. The AZSBDC Network has 26 locations across the state, including regional Centers in Casa Grande, Flagstaff, Kingman, Phoenix, Prescott, Show Low, Sierra Vista, Thatcher, Tucson and Yuma. azsbdc.net
Taking the Headache Out of Hiring Chandler-based HiringSolved is an online search directory that employers browse through pre-built searches across a wide range of candidate types. Search for a game developer, executive chef, registered nurse, data scientist, wellhead designer and many more with one click. The search directory is another time-saving feature that allows users to spend less time hunting for the right candidate and more time contacting, collaborating and closing them. hiringsolved.com
Tech Project Team Includes Kids Software designers and developers at the Chandler offices of Pearson, a global company that provides education products and services to institutions, governments and individuals, are working on an early literacy mobile app for preschoolers — and part of the multi-generational project team are kids in grades 3 through 7. “We brainstorm with them to uncover the needs for learning to read,” says Lisa Maurer, manager of product design research at Pearson’s Research & Innovation Network Center for Product Design Research & Efficacy. Pearson created the KidsTeam to work collaboratively on solutions with real-world applications in an environment that fosters skill-building in subjects such as technology and math through hands-on learning and infuses insights beyond the reach of the adult mind. The initiative is the result of Pearson’s long-term collaboration with the University of Maryland’s Human Computer Interaction Lab, where the KidsTeam approach to technology design was launched in 1998. The students meet regularly throughout the school year in the Pearson iDEA Innovation Center, a digital laboratory focused on user-centered design, usability testing and user experience research. Each week, the students have a different design challenge — from building a new interface for a learning management system to sharing insights on what makes digital curriculum engaging. They will storyboard the sequencing on the app and help build its interactive technology. And they will see the project through to usability studies, observing four-year-olds using the app. By involving kids in the design process for technologies that will be used by students, Pearson aims to better understand what
students want from new learning technologies in terms of features, functionality and overall experience. The kids get to see “behind the curtain,” Maurer says. A former kindergarten teacher, she notes the benefit to the students in understanding the different roles involved in bringing the technology to life. There is also a long-range benefit to business. According to the U.S. Department of Education, jobs in science, technology, engineering and math (STEM) are growing at 1.7 times the rate of non-STEM jobs, and the United States is not producing enough candidates to fill them. The creativity, collaboration and problem-solving skills that Pearson’s KidsTeam members are building gives them unique preparation to pursue higher education and careers in the STEM fields. Says Maurer, “It’s empowering — seeing their ideas come to life.” —RaeAnne Marsh Pearson pearson.com Pearson iDEA Innovation Center dev.ideainnovationcenter.com
VISUALIZE
Tools for a Business Mind Established in 1996, Mind Tools Ltd. presents videos on business management tools that help more than 21 million people each year, as well as providing cloud-based training solutions to companies and government agencies worldwide. Its teams are comprised of career experts, businesspeople, coaches, writers, editors and journalists. Each video is about a specific topic and is presented in various series by category. Used together, these skills can help individuals become exceptionally effective, be a great mindtools.com/pages/main/videos.htm
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Last summer, the Maricopa Community Colleges received $1.4 million to bolster educational efforts in Science, Technology, Engineering and Math (STEM) and Workforce areas. This additional funding, part of the State’s FY 2015 budget, was the first State appropriation for Maricopa in areas of the STEM and Workforce since 2009.
Photos courtesy of Pearson
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High Times in North Phoenix Developed as a dynamic, mixed-use destination in the Northeast Valley, High Street is ringing in the New Year with an infusion of varied businesses. The contemporary urban streetscape fronts 628,000 square feet of retail, services, Class A office space, luxury apartment homes, and dining and nightlife that includes La Boca Wine Bar & Urban Kitchen and Kona Grill. Recent additions are Sprouts Corporate, Barbershop Jacks and Firehouse Subs, and newly signed office tenants include Alliance Home Loans, Impact Global, Hanover Insurance and WJ Bradley. highstreetaz.com
More Up at Park Place Three new projects are slated for immediate construction in Douglas Allred Company’s Park Place office complex, a 150-acre, mixed-use development located in prime center location in Chandler’s Price Road Corridor. These projects include Drury Hotel, a state-of-the-art business hotel; a retail/restaurant project; and a 92,000-square-foot cuttingedge, Class A office building. Completion of restaurant and office projects is expected this summer; construction of the hotel will begin in third quarter of 2015, with delivery in early 2017. douglasallredco.com
Marijuana Site-ings Medican Enterprises Inc. is in the process of acquiring a 67,000-square-foot facility on 2.55 acres of industrial-zoned land in Phoenix. Expected to close in first quarter 2015, this will launch Medican’s real estate and leasing services business under which the company would lease real estate that is outfitted with turnkey solutions for legally compliant growing facilities to licensed growers. At current market rates the property is estimated to produce annual lease revenues of approximately $1,400,000. medicaninc.com
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CO+ECHANGES: Global Collaboration CO+EXCHANGES, an Arizona nonprofit launched in September of 2014 and operating via the CO+HOOTS Foundation, is the first coworking and entrepreneurial cultural exchange program. Designed to bring together the most innovative entrepreneurs and co-workers, it is centered on a wide variety of goals, from driving economic development internationally and promoting worldwide business collaboration to social change and community growth. “We believe young talent today has a very strong ‘give back’ desire,” says CO+HOOTS co-founder and executive director Kristin Romaine of the inspiration behind the program. “We wanted to provide a vehicle for spreading this message to others around the world by working side by side with them on community issues. We want to create a network of global innovators who are banding together their talents to change the world via local and global talent working together towards solutions.” Phoenix is one of eight host cities among which collaborations have been established. Others include Tucson, Arizona; Hermosillo, Mexico; Sao Paulo, Brazil; and Catania, Italy. Local entrepreneurs and business owners are encouraged to participate in
the global exchange, traveling with the “CO+EXCHANGERS” internationally and exercising their expertise in their given field to better a local nonprofit, community program or issue in the hosting city. There is no fee to join and travel is covered by CO+EXCHANGES; however, individuals have to pay for meals during the exchange. Speaking of Phoenix as a host city, Romaine says CO+EXCHANGES’s goal is to “showcase Phoenix in a positive light on a global platform.” Describing the organization’s relationship with local city government as “unparalleled,” she says, “We want people to know that Phoenix is a place where entrepreneurs can thrive and that we have local expertise that is at a global caliber.” —Alexandra Lyon CO+EXCHANGES cohoots.com/coexchanges
Construction Funding on Credit
CreditSuppliers, an Arizona-based liability company, recently developed a FinTech (finance technology) designed for the needs of the construction industry — providing revolving lines of credit to contractors, subcontractors, merchants and suppliers. The new lending platform will provide contractors with Web-based help to jump-start their business and complete development projects, providing them with the necessary capital to purchase materials and an easy-to-use Web interface to track purchases. “I thought, ‘What if I had a specific credit-type card specifically for contractors that I could run through the cloud that would pay suppliers, but tailored for the construction industry?’” says CreditSuppliers CEO James Nielson of his inspiration. “It solved many problems that we faced, [such as] credit, collections, money flow and growth capital.” CreditSuppliers is able to provide credit lines to contractors that banks and supply
houses are unable or unwilling to do and offer multiple payment options to fit an individual business’s needs. Contractors qualify for credit using the CreditSuppliers website and are able to use the credit as a type of credit card to purchase necessary materials without the high costs associated with bank loans. The website will provide payments to suppliers for material purchases in a timely manner, guaranteeing quick and efficient turnaround and promoting an increase in sales. In addition, local businesses can apply to be a CreditSuppliers merchant supplier and ensure they are being paid on time, track and monitor any outstanding or completed jobs and grow their individual business. Currently located in Scottsdale, CreditSuppliers is looking to expand its services nationwide, starting with neighboring Southwest states. —Alexandra Lyon CreditSuppliers creditsuppliers.com
CNNMoney’s housing forecast for 2015 ranks Metro Phoenix in the top 10 hottest areas nationally. money.cnn.com/2014/12/04/real_estate/hot-housing-markets
Photos courtesy of High Street and Douglas Allred Company (left, top and middle, respectively), CO+EXCHANGES (right, top)
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TECH NOTES
Cyber Security or Digital Vulnerability?
Vigilance is just the start for businesses to protect themselves by RaeAnne Marsh
Use reliable anti-virus software, and set it to update.
Ensure the system’s personal firewall is active. Update patches on operating systems. Use complex passwords, and make sure the system does not have default passwords. Think carefully about information shared on social networking sites. FBI Special Agent Paul Schaaf offers an example of a post not to make public: the proud announcement, “I’ve just been promoted to bank manager. I’m the only one who has access to the back-up security vault.” Beware of pop-ups on anti-virus alerts. “These are usually trying to redirect you to another site,” says Schaaf. Avoid chain emails. Never send personal information via email — or at least encrypt it — in case the email account gets compromised. Think before downloading files and before clicking on a provided link. And pay attention to the URL revealed when the cursor hovers over the link. There might be code to display one site but actually go to another. “Type in the URL rather than use the link,” Schaaf suggests. Report suspicious email activity to the company’s IT department.
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The common advice — and practice — about passwords is wrong, says cyber security expert Hoyt Kesterson. The former chairman of the international committee involved in creating digital signature credential protocols, the current senior security architect for Scottsdale-based Terra Verde Services points out that oftentimes, being required to frequently change their password puts people in the position of having to write them down somewhere to remember them — and yet there are programs that make it very easy for computers to break them. In fact, tables have been generated that contain all possible combinations for seven- or eight-character passwords, so whatever “new” password a user creates already exists. Criminals may gain access to the files of a bank, credit card company or other authenticator — such as by an employee opening a perhaps innocent-looking email — and get into the virtual vault where passwords are stored. “The only thing of value is long passwords, or passphrases the user could easily remember. Not complexity, not frequent change,” Kesterson says. Most systems will allow long passwords even though they may ask for only seven or eight, but Kesterson says they deal with them in a way that defeats the effort: “They take a 14-character password and break it into two sevencharacter passwords,” he explains. Since those sequences are already known, criminals can simply try the finite combinations of the two sequences. For individuals, passwords may be broken through social engineering — the attacker simply studying a person’s postings on Facebook or other social media sites. Businesses that conduct transactions through wire fund transfers are susceptible to significant losses because of these password breaches. “By a variety of technical means, people can pretend to be a company and tell the bank to wire transfer funds,” Kesterson says. He recommends businesses use dual-factor authentication with their financial institution, for instance having the bank verify the transaction via both phone and computer. “It’s hard [for criminals] to compromise two devices at
the same time.” While this is more expensive than single-factor authentication, a risk assessment by the business should also consider impact beyond just the loss of funds. Shares Kesterson, “It has put companies out of business.” Kesterson also notes that a business’s IT staff may not have security expertise, pointing out that, usually, “the IT staff is just focused on getting the company’s job done.” Paul Schaaf, special agent with the Phoenix Division of the FBI, describes three trends in security attacks: distributed denial of service, compromises of Web-based applications and credit card point-of-sale compromises. Phones and tablets are as susceptible as computers. “If it has code in it, it can be corrupted and written to,” Schaaf says. Denial of service attacks result in a computer being simply overwhelmed by commands. “Hacktivist groups rent bot-nets (a bunch of computers),” says Schaaf, describing them as Internet bullies. Companies can get denial of service protection through their Internet service provider or can hire another company to provide it. Compromises of Web-based applications, such as payroll service in the cloud, occur through viruses on individual computers. “They’re not hitting the application, but an individual account such as the person in a pizza shop who logs in.” Schaaf notes that two-factor authentication can thwart these attacks, a strategy that is also valuable when working with companies remotely. “To verify an IP address, have them send a code to your phone [for you] to type in.” With credit card point-of-sale compromises, the malicious code is on the device at the check-out stand, and grabs account information when a credit card is swiped. Another problem Schaaf identifies is ransom-ware, whereby the attack encrypts a person’s files and a ransom payment is demanded to decrypt them. ”They do a two-factor encryption. You have the public key, but they have the private key [that they introduced]. So back up your system, either off-site or in the cloud — and use a read-only copy.”
In electronic transfer of funds, individuals have the protection of the federal government’s Regulation E (“Reg E”), but Hoyt Kesterson notes an important distinction: It does not cover businesses. “The assumption was that businesses are informed and therefore do not need protection,” he says. federalreserve.gov/bankinforeg/regecg.htm
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WELL WELL WELL
Primary Need for Primary Care In its report “Advancing Primary Care Delivery: Practical, Proven and Scalable Approaches,” UnitedHealth Group’s Center for Health Reform & Modernization cites new research that shows a clear relationship between more primary care physicians practicing in a local healthcare market and lower rates of avoidable hospital admissions and emergency department visits. The report examines existing best practices and key solutions that — if expanded at scale — can help close the primary care gap and improve care delivery, including: • I mplementing innovative payment models that reward value. •E xpanding the roles of nurse practitioners and physician assistants. •A ssembling multidisciplinary care teams to deliver care more efficiently. •U sing electronic health records and other health information technology (HIT) to share information across the delivery system in real time. unitedhealthgroup.com/reform
Diagnosis by Crowd Spurred by his sister’s prolonged suffering with a medical condition that eluded diagnosis by top doctors, Jared Heyman founded CrowdMed to “harness the wisdom of crowds,” especially to help people with rare or difficultto-diagnose conditions. He observes, “The crowd is collectively smarter than even the smartest people in the world.” Individuals complete a questionnaire and have the option to upload other files — with identifying information redacted. HIPAA restrictions to do not apply, as the law allows individuals to share their own medical information. “Medical detectives” — Heyman’s term for doctors who have registered to participate on the site — then submit their diagnosis, and the site ranks them based on a patented prediction market technology developed for the program that works in a way similar to a virtual stock market. Explains Heyman, each diagnosis has a “stock price” on the back end, and, as the medical detectives bet on the likely outcome, that stock price rises and falls. “The system looks at the point-betting behavior, and assigns probabilities to the diagnoses.” While all of the responses are provided to the patient, Heyman says, “The final report highlights the most probable diagnoses or solutions — the ones that have the most support
or consensus among our medical community as measured by the point-betting behavior.” Launched at a medical conference in April 2013, the site operates as an information resource. This circumvents issues of malpractice insurance. Notes Heyman, “We give the patient a short list of the most probably diagnoses or solutions to discuss with their own doctor. We are not providing definitive diagnoses or treatment plans.” Patients purchase one of three levels of service for a flat fee, and Heyman accepts a limited number of cases pro-bono. Patients have the option to offer an additional cash incentive to the medical detectives, but Heyman says the doctors report it is more motivating to them to help people who have been suffering with a difficult medical condition. “It’s why they got into medicine in the first place, without having to worry about malpractice and reimbursement,” he says. CrowdMed crowdmed.com
Personal Health Files
Growing the Scottsdale Cure Corridor The City of Scottsdale’s directed effort to expand the presence of medical-related business is focused on a T-shaped geography that runs along Scottsdale Road from the Airpark to Thomas Road and along Shea Boulevard from Scottsdale to the Mayo facility at 136th Street, which it has branded the “Cure Corridor.” The city created a YouTube video, The Scottsdale Cure Corridor, to promote the area and that Christian Green, Scottsdale’s economic development manager, says companies also use to recruit. The city focuses on five industries within the healthcare sector: bio-life sciences, clinical trials, patient care delivery, pharmaceuticals and education. “Growth is exponential, because of the bio-life-science clusters that [already] exist in Scottsdale,” says Green. Citing an average wage of $60,143 Green says Scottsdale’s 21,000-plus jobs in the bio-life-science sector represents 13 percent of all such employment throughout Metro Phoenix.
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“Anywhere there’s an Internet, members can access their health records,” says Arnold Curry, M.D., MBA, who began developing Medical Records Systems about eight years ago and launched it in 2012. Although electronic health records are becoming the norm for health providers, individuals may not have access to files kept by their doctor. HIPAA (the Health Insurance Portability and Accountability Act) gives patients the right to request their medical records, and Dr. Curry points out people may need their records if the need for medical care arises when they are traveling or in case of emergency. The service includes a secure ICE (In Case of Emergency) program to download onto the member’s mobile phone through which emergency responders can have vital information about an individual even as they are transporting him or her to the hospital. But the information, Dr. Curry emphasizes, is not stored on the phone itself. “It’s a benefit for businesses to offer their
employees, especially those who travel a lot,” Dr. Curry says. Speaking with many years’ experience in hematology and oncology, Dr. Curry notes healthcare providers are required to keep medical records for only seven years, yet patients may need a more complete medical history. Keeping track of health records allows patients to review for inaccuracies and incompatibilities across medical specialties, which can be especially helpful for families seeing multiple doctors, travelers, individuals with a complex health history or during emergency situations. Patients can upload any type of file into the system, or the system can securely upload on their behalf. Also, says Dr. Curry, “We were given permission by the National Library of Medicine to link our site to theirs,” giving members access to reliable information about such things as drug interactions and specific diseases. Medical Records Systems trustmrs.com
Even with an aging and sicker population and reductions in the uninsured, primary care office visits declined between 2012 and 2013.
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METRICS & MEASUREMENTS
2015 Super Bowl in Arizona: What’s Different This Time? Among other expectations, Super Bowl’s impact is expected to exceed $500 million by Sue Kern-Fleischer
During Super Bowl weekend, more than 50 invited business executives from around the world will participate in a CEO Forum to discuss opportunities and challenges that will shape our future communities and businesses. The CEO Forum is unique to the Arizona Super Bowl Host Committee. The 2008 program brought more than 20 CEOs to Arizona for Super Bowl weekend and resulted in more than 1,000 jobs and more than $400 million invested in the state.
Arizona will be in the global spotlight leading up to Super Bowl XLIX on Feb. 1, which many hope translates to a boost in our economy. A lot has changed since we hosted Super Bowl XLII seven years ago, when the economy was declining. “Downtown Phoenix doesn’t look anything like it did in 2008,” says Jay Parry, president and CEO of the Arizona Super Bowl Host Committee.“When visitors walked out of the Hyatt, the Phoenix Convention Center and Valley Metro light rail were both under construction. Now, we are operational, and in the case of the Phoenix Convention Center, it is three times the size it was back then, so those are significant investments that will be showcased.” Since 2008, $4 billion has been dedicated to revitalizing and energizing the infrastructure, hotels, restaurants, transportation and parking enhancements in Downtown Phoenix. CityScape and the Westin and Sheraton hotels are also new. The statewide economic impact for just the week of Super Bowl is anticipated to be in excess of $500 million, resulting from the estimated 100,000 visitors coming to experience the festivities and Arizona. Additional economic impact is expected from hosting Pro Bowl 2015, the week preceding Super Bowl. “From a foundation standpoint, we are able to give back more than $2 million to nonprofits in Arizona through our Legacy Grant Program in partnership with Host Committee sponsors and the NFL Foundation. Those funds support regional nonprofits focused on education, youth health and wellness, sustainability and overall community enhancements,” Parry says. “In addition to the financial boost, there will also be increased community pride as a result of being a part of something as big as Super Bowl and Pro Bowl.” The Big Game’s host city, Glendale, has budgeted $2.1 million in support of the Super Bowl, compared to $2.8 million spent in 2008. Since the last Super Bowl, Glendale has added more than
90 new company locations or expansions, attracted or retained more than 11,000 jobs, and absorbed or constructed more than 6.3 million square feet, which is the equivalent of adding more than five Arrowhead Town Centers. After the last Super Bowl, it was reported that Glendale lost $1.8 million, but Jean Moreno, Glendale’s Super Bowl project manager, says that number came from using the City’s economic impact study number in comparison to actual expenditures. “The intent was to provide some general information, but such a comparison cannot be relied upon in terms of accuracy because it is not comparing apples to apples,” Moreno says. “It is impossible to determine actual revenue increases that result from an event because the data cannot be isolated and there are too many confounding variables. But in general, hosting an event like the Super Bowl is certainly an economic driver for the entire business community, ranging from hotels and restaurants to private transit providers, event planners and mom-and-pop shops.” However, $500 million is the figure generally recognized as the revenue Phoenix’s previous Super Bowl brought to the state. In addition to the direct economic benefits of hosting the Super Bowl, Arizona is looking forward to increased exposure to a wide variety of markets and visitors. Glendale’s marketing department tracked media contacts and stories during the 2008 Super Bowl and estimates that, in the week before the game, Glendale alone had more than 3,000 broadcast stories, which equates to approximately 350 million impressions at an estimated publicity value of $16 million. Arizona Super Bowl azsuperbowl.com
Super Bowl XLIX nfl.com/superbowl/49
Looking Back at 2008 Super Bowl is based on that figure. Other findings of economic impact studies include: Arizona Super Bowl Host Committee and Verizon plan to transform Downtown Phoenix into a hub of free, family-friendly, football-themed activities throughout the four days leading up to the game. azsuperbowl.com/verizonsuper-bowl-central
Super Bowl Visitor Profile & Economic Impact
Phoenix Lodging Performance Indicator Average occupancy Average daily rate Average revenue per available room
Change from 2007 (same period)
Visitors
Average Number of Nights
Spending Per Person/Per Day
Economic Impact
83.4%
+ 18/3%
Ticketed
3.5
$765
$269.8 million
$306.12
+ 108.6%
Non-ticketed
4.6
$367
$78.6 million
+ 145.9%
Total direct
3.9
$617
$218.0 million
2008 (Jan. 31 – Feb. 3)
$255.47
Source: Smith Travel Research
Induced
$130.4 million
Indirect
$152.2 million
Total with indirect and induced
$500.6 million
Source: Super Bowl XLII Economic Impact Study by the W.P. Carey School of Business
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Glendale will host more than 10 big events during Super Bowl weekend, including DIRECTV’s Super Fan Fest food and music festival Jan. 28-30 and Super Saturday Night on Jan. 31. glendaleazevents.com
Photo courtesy of Slingshot Photography/Arizona Super Bowl Host Committee
When Phoenix hosted the Super Bowl in 2008, it generated revenue of about $500 million. The revenue projection for the upcoming 2015
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MINDING THEIR BUSINESS
Marie Sullivan: Leading AWEE by Positive Example There’s a positive approach to even negative situations
Since its inception 32 years ago, AWEE has helped more than 160,000 men, women and young adults who are currently employed or reentering the work force. Beginning in 1998, Marie Sullivan led AWEE to expand its program services — first to domestic violence victims, followed by creating and expanding programs for women who were in prison and ex-offenders. AWEE is now recognized as the expert in serving special populations of women in their workforce development needs. AWEE offers case management and support services, career services, client training workshops and educational guidance. Sixty-nine percent of the people AWEE helps are women, and 31 percent are men. Forty-six percent are minorities and 29 percent are educated above the high school/ GED level.
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by Alison Stanton
When Marie Sullivan became president and CEO of Arizona Women’s Education & Employment (AWEE) in 1997, the nonprofit organization’s funding was holding steady in the $400,000 range. “Today it fluctuates between $2.9 million and $4.5 million,” Sullivan says. Referring to nonprofits as “curious beasts” that have to rely on a lot of sources for their funding and subsequently stay afloat, Sullivan says her job can be like a teeter-totter. “One year we will have a lot of public funding, and then the next year it will teeter to the other side.” To be as intentional as possible about finding diverse funding for AWEE — which provides a variety of programs and services to both women and men in Maricopa and Yavapai counties who want to better their employment opportunities — Sullivan says it has been crucial to surround herself with an outstanding team of people who share her vision and passion. “You have to find people who are willing to go the distance with you and be flexible — strong in their own sense of being aligned with your mission, believe in the same outcomes and similar culture, and believe in their own ability to be flexible.” Finding these like-minded people, Sullivan says, involves being exceptionally clear during the interview process about what the job entails. “I always try to be as clear with my expectations as possible and articulate what I want them to do from the beginning,” she says, adding that this is true regardless of whether she is hiring someone for a specific job or a series of tasks. “But beyond the tasks, I’m also looking at their energy level, and if they have critical thinking skills, and if they are team players. This will all help to inform me if they will be a strong member of my staff.” In addition to her outstanding team, Sullivan says she was able to improve AWEE’s funding situation by paying attention to and being cognizant about the community they are serving, as well as both predicting and analyzing the data about the nonprofit. “Whatever your mission is and the product, you want
to be sure it is relevant to the community and its needs and wants. You have to pay attention and try to forecast where the teetering and tottering will happen. You also have to be willing to be flexible as to what you have observed and what the data is telling you,” she says. Being a positive role model is important, especially when bumps in the road come along, Sullivan says. She recalls a time when AWEE literally lost $1.2 million overnight after a funder ran into some issues and was unable to donate the money. Knowing that the way she handled the situation would have a huge impact on her team, Sullivan says she was very careful about how she told them what had transpired. “I didn’t say, ‘I have bad news,’ but instead I said, ‘We’re going to get through this’ and where and how we could start.” Sullivan and her team got to work looking at the various components that the funder had planned to support and determining who else might be willing to take them over. “We looked at which pieces would be attractive to other funders and then took them and found multiple funders for many things. We also kept our relationship with the funder so that, over time, we would still be in their good graces, so we stayed in conversations with them.” An important part of Sullivan’s success, she believes, is being acutely aware that her staff is watching her at all times, explaining this knowledge inspires her to be outwardly positive and passionate about her work at all times. “You have to be sure you are walking the walk as well as talking the talk; in a lot of ways it’s like mentoring,” she says. In fact, individuals tell her how much she inspired them. “I often think, ‘I never had a formal conversation with you,’ but you really are mentoring people without ever knowing it. People have to be inspired by your own passion, which in itself is motivating.” Arizona Women’s Education & Employment awee.org
AWEE is the only Arizona nonprofit organization focused solely on workforce development for women. There are other organizations that serve women that concentrate on workforce development, but women are not their primary target audience.
Photo courtesy of AWEE
AWEE: TRANSFORMING THE LIVES OF ARIZONANS
SEDAN SUV EXECUTIVE VAN LIMOUSINE SPRINTER MINI BUS MOTORCOACH
LAW MATTERS TO BUSINESS
Slander Lawsuits: Complicated and Costly Proving and prosecuting slander can be a risky business decision by Sue Kern-Fleischer
Dan Barr, a partner in Perkins Coie’s Litigation practice, has nearly 30 years of experience in the area of civil litigation involving constitutional, employment, media and political law issues. He represents several news media organizations, including the First Amendment Coalition of Arizona. Books he has authored include Arizona Reporter’s Handbook on Media Law, and Survey of Arizona Libel Law.
Roger Hall is an attorney with the Scottsdale office of Buchalter Nemer, and is co-chair of the firm’s Litigation Practice Group. He has a multifaceted practice, with experience in commercial litigation and appeals; lender litigation and appeals; education law; employment and wage & hour law; bankruptcy (creditors’ side); and First Amendment cases.
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Someone is defaming you or your firm … what action should you take? Before even considering legal action, it’s important to understand what defamation is. “Defamation is making a false statement about someone that causes damage to his or her reputation,” says Daniel Barr, a partner in the Phoenix office of Perkins Coie, LLP. “Libel is written defamation and slander is spoken, but because there is little difference in the law between the two, libel and slander have come to mean the same thing.” Barr says his firm handles fewer defamation cases than years ago. “This is in part because the online world gives people a less expensive way to respond far more effectively,” he explains. “Thirty years ago, a business owner would demand a retraction or a clarification if he or she believed a newspaper story was libelous and would have to wait days for a response. In today’s world, however, an unfavorable or libelous story can be responded to or corrected instantaneously online, often in the same news cycle. In many ways, the technology has stripped away the need to file a libel suit.” To prove defamation, there first needs to be a written or spoken statement that can be proven true or false. “It has to be a statement of fact concerning the plaintiff and then communicated to a third party. It also has to injure the person’s reputation,” Barr says, adding that under Arizona law, a “true” statement doesn’t have to be absolutely true, but it has to be substantially true. A statement is substantially true when minor inaccuracies do not cause any further harm than the absolute truth. For instance, Barr says, imprecisely describing a violation of securities laws as “fraud” or stating that someone was “suspended” when he was placed on administrative leave have been held by courts to be substantially true statements and therefore not libelous. Libel becomes even more difficult to prove when it involves a public figure or public official. “Even when this involves a limited purpose public figure, such as a high-profile businessperson, actual malice needs to be proven. You need to prove by clear and convincing evidence that the person making the statement knew it was false when it was published,” he says. If the libel or slander is directed at a business as opposed to a person, it could be described as “business slander” or “business libel,” but the law does not recognize a separate
tort for that. “It is very easy for a business to think that it has been defamed. It is much harder to prove,” says Roger Hall, an attorney with Scottsdale-based Buchalter Nemer. “Opinions are generally not subject to defamation actions, so the focus of a lawsuit would have to be on proving that specific facts were false. It is also difficult to prove damages. How would a business ‘prove’ that a particular statement by a particular individual harmed its reputation? Even if sales or traffic drop, it might be hard to prove the precise cause of that,” he says. It’s a different situation for defamatory statements about a business’s executives. “The executives might have tort claims against someone making defamatory statements separate and apart from the claims the business itself has. And it’s easier, but by no means easy, for an individual to prevail in a defamation case than it is for a business,” Hall says. In Arizona, there is a one-year statute of limitations, after the act occurs, to file a defamation lawsuit. As with any litigation, Hall says businesses should carefully consider the pros and cons before getting involved in a defamation lawsuit. “Defamation cases can be very fact-intensive, thus requiring multiple depositions, which are time-consuming to prepare for and take or defend. They may require electronic discovery of information on computers and in emails, which can mean hiring special firms that have expertise in doing that. Expert witnesses might also be needed, which also costs a lot of money,” he says, adding that a case going to trial could cost anywhere from $40,000 or higher just in attorneys’ fees and related litigation costs and expenses. “An appeal would drive those fees even higher, perhaps adding another $20,000 or more to the total,” he says. As for how litigation affects the goodwill reputation of a firm, Hall says it depends on many factors, including the size of the business, it’s prior reputation, if it is a niche business, whether it is already high-profile or not, and the number of people the defamatory statements reached, including if the statement or story went viral. “It is important to act quickly,” he says. “If it is a relatively straightforward case, it might be possible to settle or resolve it with a cease and desist letter.” Buchalter Nemer buchalter.com Perkins Coie, LP perkinscoie.com
The 2012 Steve Wynn vs. Joe Francis lawsuit resulted in a $40 million verdict against Francis for slander. “Girls Gone Wild” creator Francis alleged that casino mogul Wynn threatened via email to kill him over a gambling debt.
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G N I D L I U B ? N T W N O E D M N T R I E G V N O I G K A IS E R B R marks, O d o S o g S BUSINE usiness climatee gets don ’s b e a b n o o z t i Ar s more ’ e r e h but t
Harris by Don
Government regulations can be
a double-edged sword — either they cut off business from a lucrative market or they slice through red tape, enhancing the bottom line. Either way, the purported goal is to protect the public from less-than-honest merchants, but overzealous regulators can take a wellintentioned rule and use it to cause privatesector headaches. As we explore in more detail throughout this article, one top state official gives the state’s regulatory climate a “B” and has some ideas on how to improve conditions, while a key lawmaker promises to take an in-depth look at existing regulations to determine where job-creating changes can be made. Business-related organizations generally consider Arizona’s regulatory climate conducive to their interests, with some caveats, and are confident that good times will continue under the leadership of Gov. Doug Ducey, who has pledged to renew the regulation freeze that Gov. Jan Brewer ordered six years ago. “Arizona’s regulatory climate is very competitive,” says Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry. “Unlike other states around the country, Arizona’s leaders have made a concerted effort to lessen the regulatory burden on job creators.
Governor Brewer’s first act upon taking office was to institute a regulatory moratorium. She rightly recognized that job creators face enough challenges without confronting new rules at every turn. We’re encouraged that Gov.-elect Ducey has given every indication that he intends to extend that moratorium.”
The Good and the Bad Arizona’s regulatory conditions have changed for the better in recent years. The state put systems in place that “encourage businesses to take corrective actions in areas such as workplace safety and environmental mitigation before being forced into legal proceedings,” Hamer says. He hails the 1980 Groundwater Management Act for its positive regulatory features. “Arizona does a great job in managing its water compared to other Western states, such as California,” Hamer says. “Water use in 2011 was essentially the same as it was in 1957, despite population going up several times over. No other state has a comparable groundwater management strategy that not only protects the state’s economy, but ensures its future economic stability.” The groundwater law was developed with the assistance of the three major water-using sectors — agriculture, municipal and mining. “It’s
y, ound the countr ar es at st r he d “Unlike ot made a concerte ve ha s er ad le on Arizona’s gulatory burden re e th en ss le effort to of the esident and CEO job creators.” —Glenn Hamer, pr dustry In of Commerce and Arizona Chamber
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been smart water regulation and management that has helped our arid desert region grow a dynamic economy,” Hamer says. Farrell Quinlan, Arizona state director of the National Federation of Independent Business, agrees on the positive nature of Arizona’s regulations, but says the system is “frustrating in enough areas to justify a continued emphasis on reform and improving the ‘corporate culture’ among some agencies.” He applauds Brewer’s moratorium as refreshing and says it “halted the state’s steady slide into a California-style administrative regime that was making it more difficult for small businesses to succeed.” But Quinlan says regulations and regulators can hurt small businesses in myriad ways. “In one category are the moronic policies that seem to be written by someone with absolutely zero familiarity with the situation they have promulgated rules for,” he says. “These regulations can be self-contradictory, unintelligible or unfeasible — the classic instances of ‘Catch-22.’ There is another way regulations can hurt small businesses, one that Arizona hasn’t gotten control over yet. It’s when individual enforcement officers, auditors or inspectors bring to their work a deeply held disdain or contempt for the regulated community they’re charged with overseeing. Too many of these bullying regulators think all the small-business owners they encounter are at some level crooks and it’s the regulator’s job to punish them.” However, Quinlan concedes that small businesses find regulations to be a net positive when rules are properly deployed. “Such regulations can serve to help the business catalyze certain processes so the market can function more efficiently,” he says. “But we also must recognize that too much of a ‘good’ thing can become highly toxic and possibly deadly when overused — be it a dietary supplement or government regulation.” The overriding problem small businesses have with regulations, Quinlan says, “is when they cease being beneficial to the free market and … [seek] to micromanage things that shouldn’t be dictated by government bureaucrats.” At the Goldwater Institute, a frequent critic of government overreach and particularly tax breaks for specific businesses, Byron Schlomach has no problem with regulations — or laws — that protect the public against fraudulent practices. “If you’re a businessperson, you can’t be dishonest,” says Schlomach, director of Goldwater’s Center for Economic Prosperity.
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From the Governor me any wants to co mp co an di na Ca “If a to nothing is done , ng ni mi r fo here of the make it easy.” on, founder/CEO —Glenn Williams
l Business Counci Canada Arizona
Governor Doug Ducey State of Arizona
Newly elected Gov. Doug Ducey has always stated that the best thing government can do to help businesses grow and create jobs is to get out of the way. His goal is a growing, thriving economy in which every worker and businessperson can find opportunities of their own. “Our country is still struggling through its Despite having a fairly positive regulatory climate, business in Arizona is hampered by zoning restrictions imposed by cities, Schlomach says. “Zoning restricts development and business activity,” he says. “I don’t think there should be zoning.” He recommends deed restrictions that are more targeted and specific to a particular property. “Let individual property owners determine how their property should be used instead of government or a citizens committee appointed by government.” Even so, some environmental regulations have made a positive contribution to the health of individuals and to society in general. “But, there certainly are negatives,” Schlomach says. “Look at the federal level — the environmental policy has gone overboard to the point that development has been stifled.”
How Others View Us Canadian businesses are interested in doing business in the United States, but big government, high taxes and an increasingly restrictive regulatory environment are viewed with hesitancy, according to Glenn Williamson, founder and CEO of the Canada Arizona Business Council. Federal regulations governing mining are particularly troublesome for Arizona, Williamson says. “If a Canadian company wants to come here for mining, nothing is done to make it easy. The U.S. has managed to roadblock and stymie anyone who tries to put mining concerns in Arizona.” For example, he cites the proposed Rosemont Copper Mine in southern Arizona as “a horrifying experience,” bogged down by federal regulations
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for seven years. The biggest obstacle involves environmental issues, mostly water concerns and air pollution. “Arizona needs to have a strong backbone in fighting the protectionist environment in Washington,” Williamson says. Controversial legislation dealing with illegal immigration or a bill that was deemed to target the gay community apparently doesn’t concern international businesses. “Arizona has good local politics,” Williamson says. “Bills that have caused pain and angst — international companies don’t care about that. I have not seen or heard major corporations make a decision on whether they’re going to set up operations in the States based on those things. If there are business opportunities in a region, business decisions outweigh the local color of politics and the trend du jour. “Arizona has done a decent job of giving the state a business-friendly environment,” Williamson continues. “Regulations at the state level are not hindering Arizona’s growth. We need to do a better job of selling our product to the world.”
slowest economic recovery largely because federal tax and regulatory policies are hostile to free enterprise, job creation and the dignity of work,” Ducey, former CEO of Cold Stone Creamery, told In Business Magazine last month. “We can’t afford to make that same mistake as a state. I want businesses across America to know that if they plan to build, expand and create more jobs — and want minimal hassle from government — then Arizona is the best place to do business. “Ask small businesspeople what makes their lives difficult, and — after taxes — they inevitably say it’s the cost and uncertainty of complying with so many regulations. Regulatory compliance almost always requires hiring a lawyer or some other specialist, and it costs money and takes time. We need a government-wide review of regulations. My goal is to eliminate bureaucratic regulations that are unreasonable and unfair to small-business owners and employees.”
“We cert ai from wro nly want to prot ect cons ng um licensur -doing, but if t here are ers e requir em reduced or elimi ents that can be n ated, we seriousl should y consid er doing s o.” — Michel e Reag an, inco ming Sec retary o f State
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becomes onerous on ti la gu re te ma “Any legiti ges overseeing it enga if the department ve a way to be puniti their activities in ation.” byist during the investig —Barry Aarons, lob
New Leadership: New Regulatory Environment? Incoming Secretary of State Michele Reagan gives Arizona’s regulatory climate a “B” and she, too, supports a continuation of the Brewer moratorium. “As someone who ran a small, family business, I know firsthand how damaging burdensome regulations can be,” says Reagan. “The state should do everything it can to reduce costs for what I believe is the backbone of Arizona’s economy.” Reagan, a Scottsdale Republican who served in the Arizona Legislature since 2003, plans to be an outspoken advocate for needed reforms to the state’s workers’ compensation system. “In addition, I will push toward consolidating business-related filings within the Secretary of State’s office to make it easier and more efficient to start a business,” she says. Regarding workers’ comp bills, Reagan served as chair of the House Commerce Committee for six years and sponsored about 80 percent of those measures. Key ones focused on making applications uniform so it’s easier for small businesses to apply for coverage, and trying to eliminate or curb prescription drug abuse to reduce workers’ comp costs, she says. “The most notable bill, I helped write the enabling language that allowed the State Comp Fund to completely privatize so they could later become CopperPoint Mutual.” Reagan recalls other legislation to improve the regulatory process. “One of the better bills we passed in the Legislature permitted state agencies to conduct expedited rulemaking if its goal was to streamline existing rules in
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order to increase the quality and efficiency of state agencies — all while protecting public health, safety and the environment,” Reagan says. “It was a great example of government partnering with the private sector to move the state forward.” That legislation, which removed confusing or outdated provisions, is Arizona Revised Statutes, Chapter 41-1027. An area that needs improvement involves occupational licensing. “Over the years, Arizona has imposed some of the most stringent rules and regulations that inhibit job growth,” Reagan says. “We certainly want to protect consumers from wrong-doing, but if there are licensure requirements that can be reduced or eliminated, we should seriously consider doing so.” Newly elected House Speaker David Gowan puts Arizona’s regulatory climate “somewhere in the middle,” despite improvements in recent years. “The Legislature has focused on creating a much more business-friendly climate by cutting red tape and repealing overly burdensome regulations that make it difficult for companies already in the state,” Gowan says. “I am firmly committed to continuing to make it easier for businesses to locate, expand and start up in Arizona.” Among the improvements, Gowan cites fundamental changes in the administration of Arizona’s transaction privilege tax system. “These changes are still in the process of being implemented, and as they come online they will work to streamline tax collection and eliminate the need for multiple state and local tax licenses, multiple tax returns and multiple tax audits,” he says.
Gowan, a Sierra Vista Republican, plans to target and repeal regulations that harm local businesses and Arizona citizens. At the federal level, Gowan says “changes continue to be proposed that add additional regulatory burden that will cost jobs and make it harder for Arizona business to grow.” For example, the Environmental Protection Agency released two proposals, one addressing carbon and the other dealing with water, which Gowan says “could devastate an already fragile economic recovery.” Gowan explains that the Clean Power Plan sets target emissions reductions for Arizona that will require nearly all coal-powered generating units in the state to shut down or convert to natural gas. Additional capital investments will be required for those utility operators that remain in business to meet the new targets. That additional cost will be borne by customers, including businesses, Gowan says. Any utility operators, such as rural cooperatives, that are forced to close as a result of the rule will have to let their current employees go. “If those employees have to move to find work, small businesses lose their customer base,” he says. “Small businesses often operate on thin margins, and any changes in their costs can have a huge impact on their ability to compete and continue to operate.” The proposed change to the definition of “waters of the United States” under the Clean Water Act dramatically expands the authority of federal agencies to stop development or improvements on virtually any land, which has serious repercussions for private property owners. For instance, Gowan says it could prevent a rancher from adding a stock pond for cattle on his own private property. It could also preclude a business from expanding because it owns land that could be designated as a “wetland” under this new definition, even though it rarely sees water. “Those examples do not even account for permitting nightmares that are likely to occur, given that the new definition is designed to be applied on a case-by-case basis,” Gowan says. “The uncertainty that is created under that type of structure does not make it easy for businesses to operate, let alone grow. In short, it adds a level of regulatory burdens that will almost certainly increase costs for businesses.” The most important thing the Legislature could do in 2015 to help businesses in Arizona, Gowan says, would be “to enact a structurally balanced budget that includes economic development policies to strengthen the recovery
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and get us back on track to historical job and revenue growth.” He goes on to say that a balanced budget should make “strategic investments in government to aid in future economic growth, review the expenditure side of the budget to make sure taxpayers are getting the greatest return on their investment, and adopt stronger budget reforms that guarantee that one-time revenues are used with one-time expenditures.” Basically, a balanced budget favored by Gowan would give businesses confidence in how government is handling the state’s economy. Meanwhile, Rep. Warren Petersen, R-Gilbert, says he plans to bring back an anti-regulatory measure that Brewer vetoed in 2013. It would have imposed civil penalties on overzealous government officials who make licensing decisions based on requirements that aren’t authorized by statute or rule. In her veto letter, Brewer said the bill was “punitive and unnecessary” because the law already forbids such licensing decisions, and there is an administrative process to remedy abuses. Petersen disagrees that the legislation was unnecessary and is hoping that, if the bill passes again, Ducey agrees with him. “What’s great about Ducey is, he knows what it’s like to work in the real world and run a business and deal with red tape,” Petersen says. “So when it comes to government accountability, I see him signing anything in that fashion that crosses his desk.”
Aarons is critical of any regulatory agency that “decides punitive action against practitioners is more of a goal than protecting the public.” Aarons sees both sides of the regulatory issue. “You probably could make a case that the regulations are too steep,” he says. “But you could also make a case that the Governor’s Office — and I expect it to continue under Ducey — and the Legislature have been responsive to over-regulation and have tried to modify the law so as to enable business to be less pressured by unnecessary or overdone regulations or overly pursued regulatory authority. Any legitimate regulation becomes onerous if the department overseeing it engages their activities in a way to be punitive during the investigation. I see the Legislature doing a really good job of being responsive to industry in areas where they think either the regulation in and of itself or the pursuance of regulatory action by the agency has been over the top.” During his 30-plus years at the Capitol, Aarons says he has seen a ratcheting up of businesshindering regulations, especially in areas of health, safety and the environment. “I now see them beginning to level out and I see a legislature trying to make things better and less onerous for business,” Aarons says. Chris Herstam, a former legislator who has held key positions with three Arizona governors and currently is a lobbyist with Lewis Roca Rothgerber, is a bit cautious in his assessment.
“Arizona already has a superb business climate,” Herstam says. “We have lowered taxes in Arizona for 23 of the last 25 years. We are extremely competitive with other states.” But Herstam says the Great Recession resulted in budget reductions at several regulatory agencies. “There is probably less peer regulation of the business community today than several years ago,” he says. “I find it hard to believe that you can improve on the business regulatory climate very much. If you go much farther, then you’ve got to start tipping the scale too much in favor of business and against consumer protection.” The Aarons Company, LLC theaaronscompany.wordpress.com Arizona Chamber of Commerce and Industry azchamber.com Arizona Governor azgovernor.gov Arizona House of Representatives azhouse.gov Arizona Secretary of State azsos.gov Canada Arizona Business Council canaz.net Goldwater Institute goldwaterinstitute.org Lewis Roca Rothgerber LLP lrrlaw.com National Federation of Independent Business nfib.com/arizona
For more, see “Regulation: Q&A with Glenn Hamer and Farrell Quinlan” online at www.inbusinessmag.com.
Impact in Action Longtime lobbyists have varying views on the impact of regulations. Barry Aarons of The Aarons Company recalls examples involving members of the Construction Trades Coalition, which was formed in 2003 by a group of subcontractor associations. Aarons says the Registrar of Contractors at times acts as “investigator, judge, jury and executioner.” The agency licenses and regulates residential and commercial contractors and investigates and resolves complaints against licensed and unlicensed contractors. One example involved an investigation of a contractor that turned up no violations, but the agency wanted to suspend its license for one day anyway, Aarons says. Another example was when the agency sought power of attorney over contractors’ tax records, but Aarons says he was able to get legislation passed restricting such access that could have led to “all kinds of witch-hunts.”
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“Too many of t hese bullying regulators think all the small business owners they encounter are at some level crooks and it’s the regul ator’s job to punish them.” —Farrell
Quinlan, Arizon a state direct or of the National Federa tion of Indepe ndent Business
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A PATH TO FOLLOW
Company-wide “Bad Mood”? Boost the Entrepreneurial Spirit Michael Houlihan and Bonnie Harvey are co-authors of The Entrepreneurial Culture: 23 Ways to Engage and Empower Your People, the companion to The New York Times bestselling business book The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The Barefoot Spirit chronicles Barefoot’s journey from its humble beginnings in the laundry room of a rented Sonoma County farmhouse in 1986 to the boardroom of E&J Gallo, where the brand was successfully sold in 2005. From the start, with virtually no money and no wine industry experience, Houlihan and Harvey employed innovative ideas to overcome obstacles and create new markets and strategic alliances. Widely used as a case study in schools of entrepreneurship, they now consult with Fortune 500s and other companies. TheBarefootSpirit.com
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When bad mood pervades a company, employees don’t feel they have a stake in its future — and that’s a problem by Michael Houlihan and Bonnie Harvey When a company is in a bad mood, the signs aren’t always overt. People aren’t biting each other’s heads off or glaring sullenly across the conference table. Instead, it feels like everyone is just … coasting. Rather than digging for solutions, they make a cursory effort and then lay the problem at their manager’s feet. They’re not cage-rattlers and idea-sharers; they’re “yes men” and passive compliers. That’s “bad mood” in workplace parlance. Those apathetic clock-punchers are the creations of a culture that’s set up to squelch their inner entrepreneur. Jeff Hayzlett, who wrote the foreword of our new book, says bad mood comes from employees believing their best days are behind them, not ahead of them. And, of course, it’s culture that creates that belief — and it’s leaders who create the culture. Sometimes a culture’s mood sours over time, before the company’s leaders even know it’s happening. A stifling rule here, an ignored idea there, and before long they’ve zapped the entrepreneurial spirit that enabled their employees to create great things at their company in the first place. The only cure is to make the employees realize they really do have a stake in their future and the ability to make it a great one. Of course, before a company can shift a bad mood, its leaders need to know it has one. Here are some red flags to look for: Everyone plays the blame game. As soon as a ball is dropped, the finger-pointing and blame-dodging begins — because employees are afraid of what the consequences will be for whoever is left holding the bag. At Barefoot, our approach to mistakes was to say, “Congratulations! You found a new way to screw up, and that’s a good thing. We didn’t know that this could happen, but now that it has, we can keep it from happening again.” This attitude gave our employees the
freedom to take risks, encouraged entrepreneurial thinking, and led to an all-around better mood. Employees are paid for attendance, not performance. In organizations that are overshadowed by bad moods, most employees come to work each day and perform the tasks within their job description, but no more. At Barefoot, we found the key to turning worker bees into solutions-oriented entrepreneurs was simplifying our structure into just two divisions — Sales and Sales Support — and linking everyone’s pay to the performance of Sales. The reasoning behind this decision is simple: Everyone gets paid from sales. Without sales, there is simply no money to pay salaries, bonuses or benefits. When we began giving our Sales Support people bonuses based on quarterly sales amounts, Barefoot became more efficient, more responsive, and even closer-knit. For instance, if a salesperson in Michigan needed statistics to convince a store owner to place an order, the office staff hustled out a report. If our crew needed signs and posters for an event in Seattle, the marketing folks jumped right on it. Income was at stake for everyone — and everyone responded accordingly! Customers are “dealt with,” not served. Most companies’ “customer service” department would more accurately be named “complaint resolution department.” Employees take calls or answer emails from unhappy customers and then try to resolve the problem as quickly as possible (often relying on a script or protocol), then move on to the next. Give employees more freedom when they deal with customers. Let them feel they are trusted to use their best thinking by giving them room to do what they think is necessary to satisfy the customer. Not only will they begin to really hone their entrepreneurial thinking skills, they’ll
Low morale is one of several ways stress spills over into the workplace, hurting companies’ bottom line to the tune of $200–$300 billion in the United States every year in net effect, according to Health Advocate, Inc., the nation’s leading healthcare advocacy and assistance company.
BUSINESS PRINCIPLES AND PRINCIPALS end each day with the satisfaction that comes from knowing they transformed a disgruntled customer into a happy, loyal one. There’s an attitude, but it doesn’t involve gratitude. Even if they never say so, workers want to know they’re doing well and their efforts are valued. Don’t take it for granted when employees put in extra hours, land a coveted client, or turn out an incredibly well-thought-out proposal, for example. Leaders who let them know they noticed these efforts and are grateful for people’s knowledge and help will gain their buy-in, loyalty, enthusiasm and over-and-beyond efforts. People can’t seem to execute. When a company isn’t able to meet its goals, its leaders’ first inclination might be to blame the employees for being unable to execute. That blame will probably make an already bad mood worse. So before doling out accusations, consider whether it’s a leadership style that is keeping people from getting things done. Delegate more; avoid micromanaging. Trust employees to make important decisions and do important work. This not only gives them the freedom they need to help move the company forward, but the leaders gain time and energy for themselves, too. Nobody bothers to contribute new ideas. If most of their ideas get stuck in compliance limbo or are slapped down (or appropriated) by supervisors, even the most innovative employees will eventually become discouraged or frustrated to the point of not speaking up with future ideas. So give every employee idea fair consideration. And it’s smart to proactively ask for their thoughts on how the company can grow and improve. Your turnover is high. There’s a myth that when company cultures are serious and businesslike, productivity improves. But the reality is, productivity improves when people enjoy being at work and enjoy the work they’re doing. That doesn’t mean having to put a basketball court and bowling alley in the work place. Employers who strive to make it fulfilling and fun to work for them create productive, loyal employees. At Barefoot, we covered “fulfilling” by putting serious thought into matching employees with positions that utilized their strengths and skills, and asking for their input regarding how they thought they could be most valuable to the company. It’s every man for himself. Generally, all but the most frustrated, burned-out employees can manage to turn on the charm when they’re interacting with clients, so a better way to gauge an organization’s overall mood is to observe how employees interact with each other. Employees who aren’t invested in their organization’s future usually won’t go out of their way to give pointers to the new hire or proofread a colleague’s report, for example. One way to start cultivating more team spirit is to match new employees with more experienced mentors who can advise, teach, challenge and encourage them. The rookie will appreciate the personalized guidance and will be encouraged to form meaningful bonds with his or her colleagues right out of the gate. Plus, all but the most cynical veterans will soften when they see how fulfilling it can be to pass on their knowledge and expertise! Strategic partners don’t want to work with the company. The reason: Employees who aren’t invested in their company’s future are much more likely to treat these partners with a lack of respect, to withhold information and tell white lies, and to be slow to respond. Fortunately, it often takes only one leader to break this pattern by setting a better example. When a company treats third parties as valuable allies who can significantly influence its bottom line, they often will. And that’s good for the morale of everyone involved. Mood matters. Cultivating a good mood in an organization is the key to unleashing a transformative entrepreneurial spirit in its work force.
The entrepreneurial spirit is strong in Arizona — the state has ranked at the top of the Kauffman Index of Entrepreneurial Activity for startups.
The Reputation Economy Your reputation defines how people see you and what they will do for you. And today, thanks to rapid advances in digital technology, anyone can access huge troves of information about you at any time. In a world where technology allows companies and individuals alike to not only gather all this data but also aggregate it and analyze it with frightening speed, accuracy and sophistication, our digital reputations are fast becoming our most valuable currency. Here, Michael Fertik shows how to capitalize on the trends the Reputation Economy will trigger to improve your professional, financial and even social prospects. Title: The Reputation Economy: How to Optimize Your Digital Footprint in a World Where Your Reputation Is Your Most Valuable Asset Authors: Michael Fertik and David C. Thompson
Price: $25
Publisher: Crown Publishing Group
Pages: 256
Available: 1/20/2015
Fairness Is Overrated During the 20 years Tim Stevens served as executive pastor at Granger Community Church near South Bend, Indiana, the ministry grew from a congregation of 300 to more than 5,000; from a staff of five to more than 130; with a preschool, restaurant, three campuses and more than 1,800 new churches planted in southern India. Stevens, now an executive with the Vanderbloemen Search Group, knows that creating a healthy and successful organization requires throwing out the conventional instruction manual and writing one that balances practical lessons, spiritual truths and 21st Century realities. This is a manual of doing, not talking. Title: Fairness Is Overrated: And 51 Other Leadership Principles to Revolutionize Your Workplace Author: Tim Stevens
Price: $22.99
Publisher: Thomas Nelson, Inc.
Available: 1/6/2015
Pages: 256
The Ultimate Competitive Advantage People are what sustain — or ruin — your brand. If your people are not excited about the company, indifferent or even alienated from it, your competitive advantage will disappear. When you promote a company of proactive and engaged employees who create a winning culture, sustain it, leverage it, and make it work no matter what comes your way, your business rises above the rest. This book offers six highly effective practices that will propel your company to success by unleashing the potential of your people. Each practice is based on fundamental principles that hold true across all industries. Title: The Ultimate Competitive Advantage: Why Your People Make All the Difference and the 6 Practices You Need to Engage Them Authors: Sean D. Moon and Sue Dathe-Douglass
Price; $29.95
Publisher: BenBella Books, Inc.
Pages: 224
Available: 1/6/2015
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INVESTING IN COMMUNITY
Evaluating the Nonprofit CEO’s Performance Evaluate the CEO: It’s often the last thing executives sitting on nonprofit boards want to do, but also one of the most important by Julie Iacobelli
UP NEXT MONTH: Making Board Members Better Fundraisers
NONPROFIT BOARD MYTHS The executive director is doing such a good job, there’s no need for a review this year. False. A good leader realizes there is always room for improvement. Executive sessions are called only by boards in nonprofit organizations with poor board-CEO relations. False. Executive sessions build confidence in shared visions and allow for the exchange of opposing views as well as evaluation of the nonprofit CEO.
Nonprofit boards are notorious for dragging their feet when it comes to evaluating the leaders of the nonprofits they serve. For starters, the process is perceived as a time-consuming endeavor. But mostly, boards aren’t really sure how to conduct the evaluation. Nonprofits are, after all, measured beyond profit margins to their community outreach efforts as well as their social and economic impact. Even so, the value of evaluation cannot be overlooked. It’s a path toward success for not only the nonprofit CEO, but also the organization, those served, and the community as a whole. The best news is that the process need not be complicated. Evaluations are easier, however, when the organization has a solid strategic plan against which to evaluate the CEO’s performance. Print the plan out, review it, and assess: Under this leader, have objectives been met? Is the organization impacting the quality of life of its constituents? Is it engaged with the community? Have fundraising goals been exceeded? Has the organization gained favorable publicity? Are publicprivate partnerships evolving? Is the nonprofit becoming self-sustaining? What deliverables — specific to the strategic plan — have been met under the CEO’s leadership? While the nonprofit CEO isn’t responsible for every action item on the plan, he or she is responsible for moving that plan forward. “As a former nonprofit CEO, the board and I — on an annual basis — would set three to four goals that flowed from the strategic plan,” says Fred Chaffee, retired president and CEO of Arizona’s Children Association. “These goals had different weights assigned to them, and the goals were cascaded out across the entire agency.”
Chaffee, now a member of numerous community boards of directors, suggests that goals set mutually by the board and CEO, as well as their accompanying metrics, be reviewed every few months. The CEO uses those goals to drive the agency, and the results are part of his evaluation. Another key to evaluation is comparing the leader’s performance against the previous year’s review. How did he or she respond to specific action items identified last year?
GETTING STARTED If a board doesn’t have an existing evaluation blueprint, its members often don’t know where to begin. Decide who is in charge. A board committee should manage the evaluation process. Many times the executive committee takes on this role; other times, human resources committees and governance committees lead the evaluation process. Set timelines. Build backward from the fiscal yearend or performance review deadline. What specific tasks need to take place before the year ends to evaluate the organization’s leader? Assign responsibilities. Who is responsible for reaching out to the organization’s most engaged stakeholders, for reviewing the updated strategic plan and coming back with
Why Evaluate, Anyway? What message does an organization send when it assesses the
plan. It’s also a barometer of the overall health of the organization,
performance of employees, but not its top leader? Not a good one.
as well as a valuable tool allowing the board to assess its own role
Leadership studies show that nonprofit CEOs actually clamor for
in guiding the nonprofit.
feedback, often pushing boards to administer evaluations. Julie Iacobelli is a principal with The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists.
Tips for Successful Evaluations
By conducting a performance evaluation, the board:
■■ Offers a professional development opportunity to the CEO; ■■ Provides a written record and documentation of strong
Having at hand these key tools will help lessen the burden of performance evaluations:
raises as well as gain recognition for the institution and its
■■ A current job description for the nonprofit CEO, ■■ An organizational strategic plan and related operational plans,
employees; and
and
performance, which allows the nonprofit leader to receive
■■ Reduces the possibility of legal liability by a nonprofit leader
■■ Annual and long-term fundraising plans. Without an
claiming wrongful termination without cause.
understanding of how much money will be needed to achieve institutional goals — or how the organization will raise those
Most importantly, the CEO’s performance is a measure of the organization’s ability to accomplish its mission, vision and strategic
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funds — a strategic direction cannot be fully developed, making the leader’s effectiveness that much more difficult to measure.
An organization’s nonprofit status is at risk when CEOs behave unethically or illegally, yet a CompassPoint nonprofit executive leadership study found only 45 percent of nonprofit CEOs have reviews.
evaluation recommendations? Committees may assume these roles, or they may be parceled out to individuals.
DEVELOPING THE EVALUATION TOOL One of the first steps is to build a tool — preferably one with a list of deliverables for measuring the CEO’s performance. To get started: Assess organizational values. Are the CEO’s actions aligned with the values of the organization? Do his actions show a respect for the organization? Does he respect the clients served by the organization? To measure, conduct interviews. Talk to constituents and volunteers. Assess internal opinions. Do staff members feel supported and heard? What are their general opinions of the organization? Encourage employee feedback that is not anonymous. Put in place a plan whereby employee responses are routed to an identified board member with the promise of confidentiality. Seek clarification from those employees when necessary and in cases of significant concern. Review annual client surveys. These yearly surveys, offered in some organizations (especially health and human services) can provide useful organizational performance feedback. Review accreditation standards, key performance indicators and quality assurance committee feedback. Licensing bodies, grant providers and funders of the organization use various performance metrics in assessing awards and accreditations. Review those reports and flag areas of concern. Contact funders, licensing bodies and others for further clarification. In organizations with quality assurance committees, seek the insight of this group relative to the CEO’s — and the organization’s — performance.
LOGISTICS OF THE FINAL EVALUATION Once the evaluation tool has been developed, responsibilities have been assigned and data has been collected into a final report, it’s time for the evaluation committee to reconvene. Their findings should be presented to the board’s executive committee (if this group isn’t already spearheading efforts) during an executive session, then next to the full board, without the CEO. This protocol allows all board members to react to the evaluation results and determine action items to be discussed directly with the CEO. Finally, the board chair (or the entire executive committee) meets with the CEO to discuss areas of strength and measurable suggestions for improvement. The Phoenix Philanthropy Group phoenixphilanthropy.com
37 20JA1N5. I N B U S I N E S S M AG . CO M
THE MORE YOU KNOW. Free business workshops. Knowledge is power. And nowhere is that more true than in the business world. That’s why SRP offers free periodic workshops on a variety of topics — everything from marketing and raising capital to social media strategy and cyber security. We focus on topics suggested by people like you, so ideas on future workshops are greatly appreciated. To sign up for workshops and view highlights from past workshops, visit srpbizresource.com.
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602.380.2478 . info@PhoenixPhilanthropy.com . www.PhoenixPhilanthropy.com
JANUARY 2015
On the Agenda
Arizona Chamber of Commerce and Industry
Gilbert Chamber of Commerce
2015 Legislative Forecast Luncheon
Businessman & Businesswoman of the Year Luncheon
Fri., Jan. 9 | Noon – 1:30p The Arizona Chamber of Commerce and Industry will host its annual Legislative Forecast Luncheon at the Phoenix Convention Center. Open to the public, the event will feature discussions with Governor Doug Ducey, Senate President Andy Briggs, Speaker of the House David Gowan, Senate Minority Leader Katie Hobbs and House Minority Leader Dr. Eric Meyer. “This is an opportunity for the state’s business community to come together to hear from the governor and the legislative leadership about what the upcoming legislative session has in store,” says the Arizona Chamber of Commerce and Industry vice president of Government Relations Garrick Taylor. Attendees will also hear from the Arizona Chamber of Commerce and Industry about its business agenda for the year of 2015. This will be one of Gov. Ducey’s first major speeches as Arizona Governor and his first Legislative Forecast Luncheon. “We anticipate that Governor Ducey will touch on a few of the themes he will have touched on in his inaugural address,” says Taylor, “and perhaps give an indication of what to expect in his State of the State address.” Attendees will be able to participate in a Q&A discussion with the panel of legislative leaders. The discussion will be moderated by Arizona PBS host Ted Simons. The House and Senate leaders will discuss what big issues will command the most attention during the 2015 legislative season. “It’s rare to get an opportunity to hear from the governor and legislative leaders all at one event,” says Taylor. “That this will be Governor Ducey’s first Legislative Forecast Luncheon makes the event even more special.” —Alexandra Lyon Members: $90; non-members: $105 Phoenix Convention Center – West Building Ballroom 100 N. Third St., Phoenix azchamber.com
Wed., Jan. 28 | 11:00a – 1:00a The Gilbert Chamber of Commerce will host its annual Businessman & Businesswoman of the Year awards luncheon at the Doubletree by Hilton Phoenix-Gilbert. The event will recognize and celebrate local business leaders and their contribution to the local business community over the last year. The Chamber has awarded a Businesswoman of the Year since 2010; this will be the second year for the Businessman of the Year award. “We are excited to honor all the nominees at the luncheon,” says event coordinator Sarah Watts. The nominees for the 2015 Businessman of the Year are: Tim Bricker, Dignity Health – Mercy Gilbert Medical Center; Andrew John, John’s Refrigeration; JW Rayhons, Rayhons Financial Solutions; Ralph Willett, Ralph Willett CPA; and Tony Yantos, Walmart at SanTan Village. The first recipient of this award was Dan Sleezer, owner of Maddy’s Pool Supply & Service. The nominees for the 2015 Businesswoman of the Year are: Jasmine Holmes, 910 West; Elaine Kessler, Elaine Kessler Photography; Joan Krueger, RE/MAX SOLUTIONS; Alissa O’Neil, Paradise Bakery & Café; Shannon Tingom, Edward Jones Investments; and Stacey Waddell, 20 Volume Salon and Spa. Previous winners include Gayle Schmidt of Buffalo Wild Wings, Pam Nenaber of Banner Health, Adelaida Severson of Bushtex and Paige Modlin of National Bank of Arizona. “Winners have not been notified,” says Watts, “and will not be announced until the event.” Honorees are nominated by the business community and selected by a panel of four to six Chamber members and peers. The nomination forms are posted on the Chamber website in September of each year and are accepted through October. The event is open to the public. —Alexandra Lyon Members: $35; guests: $50 Doubletree by Hilton Phoenix-Gilbert – SanTan Elegante Conference & Reception Center 1800 Santan Village Pkwy., Gilbert gilbertaz.com
JANUARY 2015 S M T W T F S 1 2 3 4 5 6 7 8 9 10 Jan. 1 – New Year’s Day 11 12 13 14 15 16 17 Jan. 19 – Martin Luther King Jr. Day 18 19 20 21 22 23 24 25 26 27 28 29 30 31
INAUGURATION DAY Monday, January 5, 2015 The inauguration will begin at 11:00 a.m. of: Governor-elect: Douglas A. Ducey Secretary of State-elect: Michele L. Reagan Attorney General-elect: Mark Brnovich Treasurer-elect: Jeffrey J. DeWit Superintendent of Public Instruction-elect: Diane M. Douglas State Mine Inspector-elect: Joe Hart 2015azgtc.com/inauguration
Photos (top to bottom): Tim Bricker, Andrew John, JW Rayhons, Ralph Willett, Tony Yantos, Jasmine Holmes, Elaine Kessler, Joan Krueger, Alissa O’Neil, Shannon Tingom, Stacey Waddell; courtesy of Elaine Kessler Photography
39 20JA1N5. I N B U S I N E S S M AG . CO M
On The Agenda
JANUARY 2015 Tues., Jan. 13
8:00a – 9:00a
Wake Up Ahwatukee Morning Mixer Ahwatukee Foothills Chamber of Commerce Attend the Wake Up Ahwatukee Morning Mixer and you’ll get more done before 9:00 a.m. than some people do all day! The Morning Mixer provides a chance for quality networking in a relaxed, group environment with other business professionals from the Ahwatukee area. Get a jump start on your day at a program where you are the program. Come prepared with your 30-second commercial and share information about your products and services. This event is sponsored by The Beauchamp Law Office. Tues., Jan. 6
Members: $5; general admission: $15
9:00a — 1:15p
Economic & Workforce Development Symposium
New Paths to Healthcare LLC
13838 S. 46th Pl., Phoenix
ahwatukeechamber.com
Arizona Association for Economic Development
Fri., Jan. 9
Jason Rowley, president of the Phoenix Suns, will be the keynote speaker. Paul Shannon, assistant director of Budget and Resource Planning for the State of Arizona, will present “Arizona by the Numbers,” addressing Arizona’s competitiveness in attraction and retention and sharing what labor market data exists, and where and how to get it. “Business Keeping Score,” a panel led by Mesa Community College Provost Patrick J. Burkhart with representatives from four industry sectors — manufacturing, healthcare, utilities and technology — will cover what they need to succeed in Arizona and will also touch on the new Workforce Innovation and Opportunity Act (WIOA) that will be a game changer for economic development.
Small Business Workshop – Building a Referral Base
ASBA Speed Networking (Phoenix)
Gilbert Chamber of Commerce
Arizona Small Business Association
What Do You Say After You Say “Hello”? Victoria Trafton, owner of Victoria Trafton Presents, helps non-sales professionals sell themselves and their services. She helps business owners customize a sales process and practices that work for them and keeps them on track to achieve their revenue goals. As an expert in referral marketing, she offers a customized networking strategy and plan to assure they find the right referral sources and get the right exposure to their ideal clients.
“Get New Leads Fast!” Be our guest for a fastpaced format of networking that allows you to make vital business connections in increments of only 90 seconds! Get tips from Pro Sales Coach Mike Leeds and learn the craft of fast, relevant, effective networking. Join us; we host this event every second Tuesday of the month.
Members: $60 (bring a guest at no additional charge); non-members: $70; late registration: $85 Phoenix Arizona Country Club
10:00a – 11:30a
Cooper Crossing Executive Suites
2901 N. 7th St., Phoenix
Sara Clifton, (480) 941-6321
6
8
7
ASBA’s Business Education Center
1820 E. Ray Rd., Chandler
4600 E. Washington St., Phoenix Gabe Salcido, (602) 306-4000
9 Fri., Jan. 9
11:30a – 1:00p
3:00p – 4:30p
$15
Members: $15; non-members: $40
aaed.com/events
Wed., Jan. 7
Tues., Jan. 13
13
14
11:00a – 1:00p
Chamber Chat
Chamber Luncheon
Gilbert Chamber of Commerce
Greater Phoenix Gay & Lesbian Chamber of Commerce
This informal gathering is a fun way to share conversation with other professionals and learn more about businesses in our community. No agenda, no script — just good food, great company, and friendly conversation. Presented by Town & Country Office Cleaning.
Join us to celebrate and kick off our 35th anniversary celebration for GPGLCC! Network with past GPGLCC volunteers, board members and community leaders for this unique luncheon in a new venue. Current GPGLCC members may enjoy a complimentary luncheon. The Graduate Hotel in Tempe features a completely renovated and new property in the heart of Tempe and ASU. Your intellectual curiosity meets your favorite place to stay at The Graduate Hotel.
Free to attend; does not include cost of meal Firehouse Subs
2894 S. SanTan Village Pkwy., Gilbert
gilbertaz.com
Members: free; non-members: $30 Graduate Hotel
Thurs., Jan. 8
225 E. Apache Blvd., Tempe
gpglcc.org Wed., Jan. 14
11:00a – 1:00p
11:00a – 1:30p
Mentoring: A Give & Get Equation to Accelerate Success
“Accelerated Networking” Luncheon
Greater Phoenix Chamber of Commerce Professional Women’s Alliance
eWomenNetwork – Phoenix/ Scottsdale – AZ
Today’s workforce wants a more active role in the talent management process, and companies are looking for unique ways to promote conversations that inspire and engage employees so they can perform and achieve their goals. MaryAnn Miller, senior VP, Chief Human Resources Officer and Corporate Communications for Avnet and named one of the top 50 most powerful women in technology, will describe how multi-billion-dollar global technology distributor Avnet, Inc. approaches mentoring, sharing her perspective from experience on both sides of the equation.
Experience the excitement and power of Accelerated Networking, a unique eWomenNetwork process that assures you have an opportunity to promote who you are and what you do, ask for what you specifically need from others, develop new business alliances and friends, and learn new ideas and strategies for promoting your business and generating more revenue. You also have the opportunity to display your products and services at the event if you register as an exhibitor.
Members: free; members lunch: $25.00; non-members: $45.00 (lunch included); advance registration required for lunch Phoenix Country Club
2901 N. 7th St., Phoenix
Members: $38; non-members: $48; after Jan. 10: $58
Brittney Conklin, (602) 495-2194
Raven Golf Club
3636 E. Baseline Rd., Phoenix
Johnell McCauley, (623) 256-4486
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Please confirm, as dates and times are subject to change.
For more events, visit “Business Events” at www.inbusinessmag.com
Tues., Jan. 20
Wed., Jan. 21
7:30a – 8:30a
5:30p – 8:00p
Business Before Hours
Local First Arizona Networking Mixer
Tempe Chamber of Commerce
Local First Arizona
Breakfast, networking and a chance to give a 30-second commercial about your business. Members: free; general public: $10
Local First Arizona networking mixers are a great opportunity to meet and connect with local business owners and representatives from around the Valley!
Arizona Fun Services
Free
1938 E. Broadway Rd., Tempe
West Valley Arts Council – The Arts HQ
Meghan Dorn, (480) 736-4285
16126 N. Civic Center Plaza, Surprise localfirstaz.com/news/events
Wed., Jan. 14
Tues., Jan. 20
11:30a – 1:30p
Economic Club of Phoenix Speaker Series Economic Club of Phoenix Speaker will be Walter Robb, co-CEO of Whole Foods Market Inc. The Economic Club of Phoenix speaker series — hosted by the W. P. Carey School of Business — is celebrating its 30th anniversary. The club is now the preeminent Arizona forum for the exchange of ideas about business and the economy. Its monthly luncheons and other activities offer business leaders and others a chance to network and engage.
11:30a – 1:00p
Women In Business Luncheon Ahwatukee Foothills Chamber of Commerce This monthly educational luncheon raises money for a scholarship fund. A new speaker presents each month in order to provide programs and opportunities in leadership, development, education, and networking. This month’s speaker is David Cooke, CEO of Strategic Resource Group, LLC.
Members: free; non-members: $75 (includes lunch)
Members: $15; general admission: $30 (RSVP required by January 16th to info@ahwatukeechamber.com)
JW Marriott Scottsdale Camelback Inn Resort & Spa
Foothills Golf Club
5402 E. Lincoln Dr., Scottsdale
2201 E. Clubhouse Dr., Phoenix
econclubphx.org
ahwatukeechamber.com
14
19
Wed., Jan. 14
5:30p – 8:00p
20 Wed., Jan. 21
21
23
8:30a – 3:00p
21st Annual Martin Luther King Jr. Dinner Celebration
2015 Phoenix Golf Tournament
Community Celebrating Diversity
Arizona Technology Council
Class of 2001 Pro Football Hall of Famer and former Buffalo Bills head coach Marv Levy will be the keynote speaker. Levy, who earned a Master’s from Harvard University, is best known for his intelligent and analytical football coaching. He retired from the National Football League in 1997 after 47 years of coaching. Levy will share his experiences coaching during the civil rights movement and his appreciation for Dr. King’s ideals. Diversity Champions are individuals who exemplify the philosophy of Dr. Martin Luther King Jr. and who have enriched and impacted the Scottsdale community through their work and/or volunteerism by empowering others.
Join the business and technology community at beautiful Troon North Golf Club in Scottsdale for the Arizona Technology Council’s sixth annual Phoenix Golf Tournament. This scramble format tournament brings industry leaders and technologists together for a day of networking and sportsmanship. The tournament will be followed by lunch, raffle prizes and the awards presentation.
$60
Chaparral Suites
AZTC members: $150; non-members: $175 Troon North Golf Club
10320 E. Dynamite Blvd., Scottsdale
aztechcouncil.org
5001 N. Scottsdale Rd., Scottsdale
ScottsdaleMLK.org Mon., Jan. 19
30
Fri., Jan. 23 & Fri., Jan. 30
8:00a – 9:30a
WIB Speaker Series
11:30a – 1:00p
Chandler Chamber Lunch Club
Tempe Chamber of Commerce
Chandler Chamber of Commerce
Focusing on The Big Game and aligning with the energy and timing of the Feb. 1 Super Bowl XLIX here in Arizona, this series will guide participants on becoming leaders through positive transformation. Hear powerful guest speakers inspire, educate and motivate attendees to win big in life and at work.
The goal of the Chandler Chamber Lunch Club is to network and promote each business while having a great meal at one of Chandler’s hometown restaurants. Lunch Club will meet at different Chandler Chamber restaurants and promote each other’s businesses while networking and getting to know new friends. We all eat lunch; why not support community businesses at the same time? Bring a door prize! Bring a guest! Bring an appetite! Free
Social Box Neighborhood Eatery
1371 N. Alma School Rd., Chandler
chandlerchamber.com
If your event is directed to helping build business in Metro Phoenix, please send us information to include it in the In Business Magazine events calendar. Full calendar online. Events@inbusinessmag.com
Members: $20; general public: $30 Western International University
1601 W. Fountainhead Pkwy., Tempe
tempechamber.com
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WE VALUE WHAT WE OWN
BY MIKE HUNTER
On the Go: All-New 2015 GLA45 AMG
MERCEDES-BENZ GLA 45 AMG
All-new for Mercedes-Benz is its 2015 GLA 45 AMG, a small SUV that Mercedes-Benz has dubbed “the next best thing.” This model is more powerful and contains many performanceenhancing features — known as the AMG edition. The inline 4-cylinder, 2.0-liter turbo engine maximizes with 355 horsepower and 332 lb.-ft. of torque. The 0-60mph acceleration is an impressive 4.8 seconds. The AMG comes standard with the 4MATIC® all-wheel-drive transmission, with enhanced agility through the 3-stage ESP® and torquevectoring Curve Dynamic Assist for dependable cornering and handling, making this a worthwhile small, luxury SUV. The design and concept is Mercedes-Benz’s latest in the market of sporty, small, SUV crossover vehicles. While the style and brand are there, the usual luxury appointments are minimal for this “starter” SUV. The smaller cabin is
City: 23 mpg Hwy: 29 mpg 0-60 mph: 4.8 sec Trans: 7-speed dual clutch MSRP: $48,300
surprisingly roomy, and has a very modern design with a focus on convenience and technology. The free-standing monitor protrudes from the dash almost like an oversized smartphone — and includes many of the same features — making this a unique bend on the latest technology. The dash is sporty, with circular air vents and center-console controls managing climate, audio and gearbox. Sporty Black MB-Tex bolster seats have racing-inspired DINAMICA inserts on each of the four sport-contoured outboard seats. The seat inserts feature horizontal fluting and red top-stitching to match the racy red seatbelts for this AMG model. The exterior is tough-looking and boasts a strong stance that denotes a confident, well-handling machine. The side-wing curved shell is very stylish and includes the latest technology in lighting and aerodynamics. The bold, wide, redesigned grille is Mercedes-Benz iconic, only enhanced by the AMG doublecrosswing design, which is tagged with the AMG logo, set against the black mesh background. The Bi-Xenon headlamps offer greater-visibility lighting and are surrounded by LED turn signals and daytime running lamps. The distinctive rear lamps are fiber-optic tail lamps that make for instantaneous response when breaking and brilliant design encompassing the newest shape identifying the Mercedes-Benz look. Mercedes-Benz www.mbusa.com
Wearable Tech year is occasion for many to focus on their health. With technology, we can get some great assistance to not just
Garmin Forerunner 15
Pebble Steel Smartwatch
By tracking distance,
offers glance-able notifications for
pace, heart rate, calories and other activities with this device, users will be truly aware of where
stay fit but receive
they are and what their condition is
reminders and even
through these essential stats. GPS
“direction” in our lives. Here are some tech devices to do just that.
mode allows for about eight hours of battery; in activity mode, it is up to five weeks. $139.99 buy.garmin.com
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Sleek and subtle, this smartwatch email, texts and more. It even has a music control. All this on a very readable display that is fully customizable and allows for many apps. Battery charge lasts up to seven days.$199 getpebble.com
Fitbit Surge Called the “fitness super watch,” this device tracks GPS, the user’s continuous heart rate, all-day activity stats and sleep. It includes smart notifications and music control as well. Available in multiple colors and sizes. $249.95 fitbit.com
The 2015 Mercedes-Benz GLA45 AMG is the carmaker’s fourth and smallest SUV to wear the AMG badge. AMG is the high-performance division of Mercedes-Benz.
Photos courtesy of Mercedes Benz (top and far left), Garmin, Pebble Fitbit (bottom, left to right)
The start of the new
AWEE Works!
Changing Lives Through the Dignity of Work AWEE’s focus – our only focus – is workforce development. We help women and men, young adults and mature workers find jobs, keep their families together, become financially stable, and contribute to the community. AWEE provides the tools for change, economic independence, self-reliance and community revitalization to advance Arizona’s workforce. Our success depends on the investment of our corporate and community partners. To learn more about AWEE’s programs and how to impact their success, visit awee.org or call Jamie Craig Dove at 602-223-4333.
We Teach. We Coach. We Connect. AWEE Works!
640 North First Avenue, Phoenix, Arizona 85003-1515 t 602-223-4333 f 602-223-4338 awee.org
MEALS THAT MATTER
BY MIKE HUNTER
Cuff: A Glendale Game Changer
$12.00
Cuff 5819 W Glendale Ave., Glendale (623) 847-8890 • cuffdowntown.com
CHARCUTERIE BOARD Sliced meats, pâté, marinated olives, grilled ciabatta, grain mustard, fig preserve, a bit of cheese $11.00
For lunch, try any one of the classic dishes with flavorful spins. The Classic Caesar is a refreshing and light start with roast garlic croutons and shaved grana padana cheese over romaine. The Deviled Eggs are a great start, made to perfection with pecan smoked bacon for an added heartiness. Sandwiches include the Fried Shrimp Po’Boy, which is made with a delicious remoulade, lettuce and tomato. The Eggplant Parmesan sandwich is a real prize with the pan-fried eggplant, Matteo’s tomato sauce, basil and mozzarella — then broiled and sprinkled with parmesan. The Amalfi-Style Lemon Chicken is the reason to go back time and time again. The combined flavors of the lemon parmesan broth and the chicken is light and very flavorful. It is accompanied by grilled ciabatta and baby broccoli. The pièce de résistance is the Cuff Posole. This pot sticker-style roasted pork dumpling is in a tomato-chipotle broth with hominy cotija and cilantro that results in a light and flavorful dish. Not only making Cuff the place to be in historic Downtown Glendale, Harvey has established it as a nice fixture for advancing this area.
A Super Place to Be
ARCADIA TAVERN
MAJERLE’S SPORTS GRILL
RED THAI
With Super Bowl coming to town and the
Under new ownership, this
This former Suns player’s
The creation of Johnny Chu,
neighborhood, Irish-style
namesake bar is all about
this newer Thai restaurant is
tavern is still the hot spot
sports, and on the big day,
as authentic as Thai can be.
for sports. Equipped with
these places will be hoppin’.
The food is incredible, but
the latest and largest HD
TV screens blanket the walls
the three 10-foot screens
TVs at every angle, this
and the focus will be on the
will show off the game like
“tavern” is all about the
game. The food is sports
no other establishment in
big game. The food is the
grill stepped up, and include
town. With clear lines of
highest quality comfort food
great specials and paired
sight, they cover the entire
and the drinks and beers are
items to fill the hungry over
space above the long bar;
extensive and plentiful.
a three-hour period.
there will be no seat that will
4801 E. Indian School Rd.,
4 Valley locations:
not have the best view.
Phoenix
Chandler, Downtown
7822 N. 12th St., Phoenix
(602) 840-3950
Phoenix, Old Town
(602) 870-3015
arcadiatavern.com
Scottsdale and Goodyear
facebook.com/redthaiphx
televised experience almost as good as going to the game itself, we offer these dining establishments as super places to catch the game and have some great food as well.
Arcadia Tavern
majerles.com
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Historic Downtown Glendale restaurants serve up a nightly feast of worldly flavors, with tastes ranging from traditional German or Polish fare to contemporary Chinese and home-style Mexican. visitglendale.com/downtowndiningdistrict/
Photos courtesy of Cuff (top and far left), Arcadia Tavern (left)
SHRIMP & GRITS Andouille Tomato gravy, poached egg
This charming and American urban eatery in historic Downtown Glendale is a breath of fresh air and the creation of Chef Tom Harvey. Touted as an area leader to look to for transforming downtown, Cuff is a welcome twist on some great American dishes and drinks served up with savvy in a neighborhood setting in the Humphrey-Davidson Building, built in 1895. The room is quaint and denotes the famed streets of old Glendale well. The urban, upbeat ambiance allows for a casual comfort that is enhanced by the food, the attitude and the standard of high-quality eats at the right price. The servers are knowledgeable and the small number of menu offerings begs for coming back soon as the menu and specials change frequently.
GLOBAL Global Chamber® Events www.globalchamber.org/events
Global Chamber Tucson Tues., Jan. 13 “Funding for Exporters” Special program for exporters on new and traditional funding options, 7:30am to 10am. RSVP to events@globalchamber.org
Global Chamber Phoenix Tues., Jan. 20 “International Documentation” Training seminar on international documentation needed to successfully and legally grow your business globally, 8am to 4pm. RSVP to events@globalchamber.org
Global Chamber Tucson Wed., Jan. 21 Seminar on NAFTA and 3 New Free Trade Agreements Get up to speed on new developments with free trade agreements that will impact your business and open new opportunities, 8am to 4pm. RSVP to events@globalchamber.org
Spotlight Event Global Chamber Phoenix Thurs., Jan. 12 “Funding for Exporters” Special program for exporters on new and traditional funding options, 7:30am to 10am. RSVP to events@globalchamber.org
Inside this section
2 Find Capital for Exporting through a New Investment Platform 3 CEO Peer Advisory Boards Support Global Growth 4 Faster Global Growth with World-Class Systems 5 Enhance Personal Skills to Improve Teamwork and Results 6 Compete More Effectively In the International Marketplace
® CHAMBER JANUARY 2015 - APRIL 2015
To Export: Connect, Embrace and Commit Doug Bruhnke, CEO and Founder of Global Chamber®
Exporting is not easy. Less than 1 percent of U.S. companies export. But at least 20 percent of U.S. companies have operating systems in place to be successful with international expansion. Here are three tips to help you be more effective in your global growth. 1) Connect. Start your global journey on the right foot with good ideas and resources, and then stay connected to those resources as you go. Too few companies get started with international business, and fewer still do the right things down the road. Because three months later, when there’s a bump in the road, you’ll need to see the bump and respond effectively to it. 2) Embrace. Love this journey you’re embarking on. It is a world of new culture, countries, differences, complexities, food,
logistics, marketing, law, accounting — all of the key areas that will support your business success. Wrap your brain and arms all around it. You may not like some of these things — like international tax. Yikes. But someone in your world should love it, know it, and keep you on the straight and narrow. 3) Commit. Too many of us have had global ideas and, because they seemed too scary, too risky and too much for us to tackle, period, we stopped. Often what’s missing is the commitment to your idea, your business and your opportunity to grow. It’s challenging and daunting to export. But you can do it, and it’s something any business can do if you’re connected to the right people and you make the commitment to see it through. Global Chamber globalchamber.org
Global Chamber Launched to 500 Metro Areas
“All roads lead through the Global Chamber.” —Kyle Walker, Green Card Fund
Arielle Cottrell, Marketing Manager of Global Chamber
®
Global Chamber® has officially launched globally, serving companies throughout the world looking to grow across borders. Our team keeps you engaged with information and resources you need to grow. Every successful global executive will admit that they could have done it better and faster, and we’re gaining techniques every day to help you be more successful. The benefits of Global Chamber individual and organization memberships include enabling you to: • Access customers and growth opportunities around the world to grow your business; • Access partners, leaders, professionals and business services to grow a global team to be successful; • Access executives, professionals and interns to build your global team; • Gain insights from other executives to assist your global business journey; and • Gain mentoring and consulting to open doors, reduce risk and increase profit.
“If (companies) don’t have the experience, there’s the Global Chamber’s resources to use.” —Lee Benson, Able Engineering and ETW “Over 95 percent of the world’s population is somewhere else, and that portion is growing faster than the U.S. portion. It’s important for every community to tap into the increasing wealth of the world, and it’s important for the world because cross-border business increases wealth and understanding everywhere.” — Doug Bruhnke, Global Chamber
GlobalChamber.org
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Find Capital for Exporting through a New Investment Platform Kati Suominen, CEO and Founder of TradeUp Capital Fund
As the global economy rebounds, American small businesses are going global. While less than 1 percent of U.S. companies currently export, three-quarters of those and almost one-quarter of non-exporters are looking to expand their global sales. Timing is right, with growing markets worldwide and small-business optimism at the highest level since 2007. But going global is an investment. Capital is required to cover up-front costs such as creating distributor networks and meeting foreign product standards. In addition, exporters must finance the costs of export transactions, such as shipping, logistics and trade compliance. Perhaps toughest of all is for exporters to secure adequate capital to expand production capacity to serve the global customer base and fulfill large international orders. Few companies feel that capital is amply available. And most smallbusiness owners have limited time to travel the fundraising trail; they are already stretched to grow their organization and build the systems to bring in new clients. This is where crowdfunding can help. Equity crowdfunding, where companies can raise several million dollars in debt and equity financing online, is a rapidly growing industry. This is traditional fundraising applied online: Companies can use equity crowdfunding platforms to connect with a wide range of accredited investors and funds who, upon investing, become owners or shareholders of the company, or receive interest payments on a loan to the company. TradeUp Capital Fund is an equity crowdfunding platform based in the Southwest for export-driven, globalizing companies and savvy, globallyminded investors. Through TradeUp, globalizing companies and accredited investors (angels, superangels, VCs, PE funds, family offices and lenders) can connect and transact on debt and equity deals of $100,000 to $20
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Global Chamber®
million, providing much-needed capital to fund export growth. TradeUp primarily works with proven companies that are already in business, have at least $500,000 in revenue, and are already exporting — or have very clear plans on how to globalize. And TradeUp doesn’t stop at financing. In collaboration with the Global Chamber®, the fund offers companies expert guidance to enter and thrive in the international markets, and access to a growing network of service providers in international trade. If you are an exporter seeking capital to grow your business, TradeUp offers another option for you to be visible across a range of investors. To contact TradeUp for more information and to get on the platform, please email me at kati@tradeupfund.com. If you are a fund or an accredited investor, TradeUp helps you access proven, pre-screened companies that have mitigated downside risk and global growth potential. Globalizing companies are a stand-out asset offering a unique portfolio diversification strategy — countless academic studies show that globalizing companies consistently outperform the broader market in revenue, productivity and stability. To browse deals on TradeUp, please visit tradeupfund.com. To sign up and see company documents and interact with companies, go to http://tradeup.platform.crowdvalley.com/sign-up and select your role as “investor.” More options for raising capital to export is a good thing. Companies can access critical gap capital to export and expand in international markets. Savvy lenders and investors access pre-screened assets with superior growth prospects. And in the end, economies gain through export-led economic recovery, growth and competitiveness. TradeUp Capital Fund tradeupfund.com
It Takes a Village to Grow Globally Doug Bruhnke, CEO and Founder of
Global Chamber®
It takes a village to grow globally. You need partners, customers, employees and functional professionals in logistics, operations, international tax law, intellectual property and more. The bar is a little higher for selling internationally than selling down the street. For our hundreds of speakers over the years, we’ve heard two quotes over and over: “Why did we wait 10 years to go global and export? We could have done it much sooner.” and “If we knew then what we know now, we’d have done in five years what took 15 years.” All of us who are part of the international business tribe can relate to these frustrations. We waited too long to jump in because we had easier things to do. We chose and trusted a regional partner and stuck with him or her too long. We hadn’t done the proper due diligence and didn’t see, or ignored, the signs that things were falling apart. You can benefit from staying engaged with the latest tips and tricks of the international trade. The Global Chamber® is here to help share the information and resources you need to optimize success. We’re here to help and are dedicated to help members. Don’t wait! The opportunity is now. For U.S. companies, the fourth quarter will likely be an all-time record for exporting. As a country, the U.S. has gone from 5 percent of GDP being exports in the 1950s to 14 percent today. But countries like China, Germany, the U.K. and many others outperform the U.S. by this measure. Jump in! The biggest challenge is that company leaders like you are either not getting engaged with global business or are doing it sub-optimally. It takes perseverance, cleverness and flexibility — and staying engaged with resources that are doing it every day helps invaluably. Engage with our global business tribe, and then stay engaged! It takes a village to grow globally. Pull up a chair and join the Global Chamber.
CEO Peer Advisory Boards Support Global Growth S usan Giles Bischak, CEO of Giles & Company Strategic Business Consultants; Vistage Chair
Your company is scaling for growth, going global and managing outcomes. Or, as many of our CEOs call it, “navigating the voyage.” But who has your back? And who are the comparable peers who can ask tough questions and be a sounding board when the ship may need to make a 180-degree turn in another direction? That’s most important when you’re exporting and going global, because you need all the experienced and skilled help you can get to navigate some rough waters, at times. One option to consider is joining a CEO Peer Advisory Board like Vistage International. The CEO Peer Advisory Board concept is a framework for executive success. Boards typically bring together members from non-competing industries focused on revenue growth, examining issues and taking on opportunities to enhance business and the lives of employees. If growth and profits are at the top of your agenda, critical questions for our CEOs include but are not limited to: • How will you capture new opportunities in new markets? • How will your team maintain existing sales while new global markets open? • How will you finance the global growth? • What are the impacts of currency exchange and how will you compensate for exchange rates in pricing? • Do you have the right employees, and will they grow with your growth?
CEO Advisory Boards are a dynamic process for leadership and growth. The cornerstone is trust and accountability. CEOs share ideas, undertake group processing of issues and opportunities, challenge one another, offer solutions typically based on several hundred years of combined experience and expertise, and ask for and receive accountability from each member. The boards are by invitation only, and the groups often have about 15 members who meet monthly and have individual coaching sessions with the Group Chair. Five key benefits of CEO Peer Advisory Boards are: 1. Members work together with experienced CEOs who have no other agenda than to help each member succeed. 2. They bring expertise and examples of best practices to other CEO members. 3. Members process issues and opportunities with trust and confidentiality. 4. Members challenge one another and offer solutions as part of the community of CEOs. 5. Members ask for and receive accountability from each member. CEO Peer Advisory Boards serve an important function in the life of the organization. Boards bring a different set of tools for learning, encouraging and growing businesses. Within the community of non-competing CEOs, members work together and learn from experts.
CEO Confidence High The confidence level of CEOs with small and mid-sized businesses remains very strong. In a survey conducted by Vistage International Inc. for Third Quarter 2014 (9/8/2014–9/17/2014, with 1,359 respondents): • 75 percent of all CEOs anticipated revenue gains over the next 12 months. Only 4 percent anticipated declines in their revenues, the lowest ever recorded. • 52 percent of CEOs reported an improving economy, up from 50 percent one quarter ago and 46 percent one year ago. • 58 percent planned to increase their workforce, while just 4 percent planned reductions. Giles & Company Strategic Business Consultants giles-company.com Vistage Internaitonal, Inc. vistage.com
GlobalChamber.org
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Faster Global Growth with World-Class Systems Oren Tabib, Founder and CEO of Pioneer B1
Like any business owner or top-level executive, you think twice about the investments you make. You want to be wise and focus on growing revenue, reducing cost, improving processes and optimizing your human resources. That’s even more important when growing globally. The bar is high, and you elevate to it. More and more successful companies are deciding to go beyond their local markets and look for ways to expand to new markets outside of their country. Pursuing these new markets, and going global, can be challenging. It requires big investment, knowledge and understanding of the new market, and the ability to communicate not just in a different language but also to understand local behavior and culture. While the cross-border cultural challenges are not insignificant, often it is the operational needs that make the process of globalization overly complex and expensive. For this reason, many distribution and manufacturing companies feel that operational challenges can often be a barrier to growth. Business owners ask questions like this when growing globally: • How do I follow and maintain different
government rules and changing legal and accounting requirements? • How can I get visibility on results, performance and reports from their systems in a way I can understand as we grow? • How can I integrate all of this information with the information and the systems I already have in place? You are right not to underestimate the challenge of integrating different systems between different countries. Generally, it requires a lot of initial effort and a lot of maintenance, and many companies find themselves with a team of developers, bookkeepers and various subcontractors to be able to support this structure. But there is a better way. What if one platform could manage all of the above? And, is that platform available and affordable for small and mid-sized businesses that want to go global? The answer is yes. Enterprise Resource Planning (ERP) systems offer you the ability to operationalize your global growth. When the systems sing together, you and your team grow together. SAP® Business One is an example of a robust ERP solution that assists scaling a
company’s growth across borders. Just think of how efficient it would be to have every market use one platform that will support almost any country’s accounting and business requirements. Business One helps you move faster, innovate, create a competitive advantage, drive efficiencies and empower the employees. Most importantly, it is a completely unified platform that runs all of your business. Tens of thousands of businesses worldwide recognize the benefits of using the SAP® Business One application. It was designed specifically for small and mid-sized businesses; the software lets you integrate all the critical functions you need to run your entire business — from sales and customer relationships to financials and operations. It enables you to make decisions based on the most updated information, streamlines processes and accelerates profitable growth. Whether you choose SAP® Business One or another ERP system, it is important that you and your team scale your business effectively as you grow overseas. Pioneer B1 pioneerb1.com
Launched in Phoenix, Tucson, Salt Lake, Kathmandu, and More Dakota Drake, Operations Manager of Global Chamber®
“The Global Chamber will help
Company leaders may join the Global Chamber® from anywhere expand exports and imports.” in the world and get value. A new customer, partner or trusted —Mayor Jonathan Rothschild, resource is only a Skype call away. We are focused on growing out City of Tucson members in 500 metropolitan areas around the world. “Welcome Global Chamber! In addition, we are establishing chapters in dozens and then We’re proud and happy to have hundreds of cities, and we’ve already rolled out to Phoenix, your global headquarters right Tucson, Salt Lake City, Kathmandu and, this month, Portland. here in Phoenix.” —Mayor Greg We appreciate the mayors in all these cities and those coming up Stanton, City of Phoenix who have greeted us with open arms and plenty of ideas to inspire companies to consider global growth and to help them over the borderline. From wherever you are, and wherever you’re going, join us.
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Global Chamber®
Enhance Personal Skills to Improve Teamwork and Results Stephanie Sherman Dolan, Coordinating Coach at Brandon Barber Coaching
Expanding your business on the global stage requires a well-tuned organization with high-performance people consistently making good decisions all along the way. As you navigate new markets and develop your global business plan, teamwork is crucial to the execution of your company’s vision. Successful teamwork relies upon open communication, accurate goal setting and effective problem solving. Executive coaching can improve your team’s performance in all three areas by creating behavioral changes that have a profound impact on global organizational outcomes. A recent example for our team is a corporation that previously had struggled to unite their sales, service and accounting teams. Instead of working with one another, they often felt at odds, each pursuing departmental goals, unable to find a common vision. That caused discord within the organization, disrupted productivity and detracted from overall job satisfaction. Has that ever happened in your organization? After engaging in coaching individually and collectively, all three teams were able to align their goals and objectives. They acquired the skills necessary to communicate effectively and started to see other employees
as assets, not obstacles. Participants reported feeling more valued in their roles and better equipped to handle difficult discussions, and the world! Their sales and production quickly reached their highest levels ever. More effective teamwork made the difference. Having enhanced personal and interpersonal skills leads to less conflict and greater productivity. Through coaching, leaders learn how to better communicate with their team to CONTINUED ON PAGE 7
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Compete More Effectively In the International Marketplace Kevin Hull, Senior Relationship Manager with BMO Harris Bank
U.S. companies continue to increase their foreign export sales, and the opportunities are plentiful for future expansion into foreign markets. Arizona companies are increasing, too, but at a lower rate than average, from a lower base than average. The recent U.S. Census Bureau data indicated Arizona exports have grown 44 percent during past 10 years. However, the U.S. as a whole increased exports by 100 percent and neighboring Utah increased exports by more than 200 percent during that same 10-year period. In recent media appearances, Governor-Elect Doug Ducey stated economic growth through export-oriented industries is a key component for adding jobs to Arizona. For growing companies, finding capital to support the costs associated with increasing revenue (inventory purchases, production labor, etc.) can be a challenge. When exporting to entities based outside the U.S., capital sources can be few and far between. Compounding this problem is the fact that many lenders refuse to include foreign accounts receivable as collateral. Fortunately, there are programs available from entities such as the EX-IM Bank and the U.S. Small Business Association that can help U.S.based exporters. The SBA’s Export Working Capital Program (EWCP) has been designed to assist small and medium-sized businesses who are exporting product but are unable to secure the necessary working capital financing to support the foreign sales. The SBA has established Export Assistance Centers throughout the U.S. that work closely with lenders and eligible businesses. The EWCP currently offers three types of working capital financing programs: 1. A “single” transaction, non-revolving line of credit that finances working capital requirements for one single transaction.
2. A “transaction-based” revolving credit facility that can be used to support multiple transactions or a single approved transaction on a continuous basis 3. The “asset-based” revolving line of credit, which is supported by a borrowing base agreement. With the “asset-based” facility, eligible accounts receivable and inventory used for the foreign sales are allowed as collateral for the revolving facility. The borrower submits a monthly borrowing base certificate to the lender. There are several requirements for the accounts receivable and inventory to be considered as “eligible” collateral. Therefore, the company, lender and SBA EWCP representative will work closely together to
Best International Restaurants in Phoenix Doug Bruhnke Many of us “globies” (members of the global tribe) embrace great international food. We remember that first look and amazing taste of sushi at Tsukiji Fish Market, and still savor our grandmother’s favorite dish from the Old Country. It is with foodie passion that we recently updated our “best of” international food blog on the Global Chamber® site for Phoenix. Watch for similar posts in other cities. What do you think? From www.globalchamber.org, click on Locations, Phoenix and then Global Blog. globalchamber.org/blog/2014/11/22/phoenix/best-international-restaurants-in-phoenix
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determine the eligibility. Unlike the EX-IM Bank programs, the EWCP is not credit insurance; therefore, underwriting does include an analysis on the account debtor. In some but not all cases, account receivable insurance may be required in order to deem the receivable as eligible collateral. The maximum loan amount available under the EWCP program, in aggregate, is $5,000,000 and the maximum SBA guarantee for the lender is 90 percent. The following is an actual scenario in which a West Valley manufacturing company benefitted from the EWCP program: The growing company had several foreign-based customers in Europe and Asia, and historically self-financed the working capital requirements associated with the foreign-based accounts. Last year, the company experienced a surge in new product orders and could no longer self-finance these orders. This presented an opportunity for the EWCP “asset-based” program. Our bank worked with the company and the SBA EWCP office, identified the eligible accounts and inventory, and provided an asset-based working capital revolving credit that helped the company secure and fund the new orders. By being able to fund these new orders, the company experienced a greater than 50 percent increase in annual revenue and hired 35 new employees for its West Valley manufacturing facility. For companies considering diversifying their revenue sources by expanding their foreign sales, a review of the EWCP programs is a necessity.
achieve optimum cooperation and productivity. Understanding how to set appropriate expectations and effectively communicate those expectations is a crucial part. In addition, team members become better equipped to both give and receive feedback, allowing for constant improvement and flexibility as they implement global growth. Effective communication creates trust, diminishes redundancy and improves client services. Within the team dynamic, open communication empowers individual team members. It encourages everyone to provide input drawing from their unique strengths and allows for a free exchange of ideas. Effective team engagement leads to higher job satisfaction and greater quality of work. It encourages a safe space for creativity and maximizes a team’s options when troubleshooting or problem solving — critical when you’re looking for an edge — on the global stage. By understanding an individual’s thought processes, one can identify inaccurate schemas that can derail progress. This awareness helps an individual ask more productive questions of themselves and others and will lead to better problem solving, greater productivity and increased confidence for the individual and the global team. This is another successful outcome of effective executive coaching. Your people are the key to the successful execution of your company’s goals and objectives. As your business expands, being able to communicate effectively beyond cultural borders becomes an imperative. As you enter the global market, fostering effective and efficient teamwork through coaching will greatly enhance overall satisfaction for your team as well as your clients. Coaching strengthens your global positioning by improving your team’s ability to communicate, plan, and problem-solve. As you look outward to grow, look inward to support your optimum success.
BMO Harris Bank bmoharris.com U.S. Small Business Administration sba.gov
Global Initiatives in Your Community We’ve found that the deeper we dig, the more really interesting international initiatives we find that include business, government, education and nonprofits. For instance, it took many hours of research to list out global, Canada, Mexico and related initiatives for Phoenix, and when we presented that list to a group of local leaders, we found many more initiatives that we had missed. This goes to the fact that many global activities are “below the radar screen,” and yet many of us involved with global business either wish to engage with some of these, or recognize that some may be able to help us grow our business. And so one of our tasks is to understand the global initiatives in each metropolitan area and work to collaborate in support of company and community success. And when jobs are involved, we impact global careers, too. Join us in our world by attending in-person and virtual events, connecting to the career center, watching global business videos, reading articles and joining the Global Chamber®. Global Chamber globalchamber.org
Brandon Barber Coaching brandonbarbercoaching.com
Global Chamber®
Global Chamber Phoenix and Tucson Chairman/CEO Sponsors
President Sponsors
Snell & Wilmer LLP Growth Nation Polsinelli Thunderbird Online
Galbut & Galbut PC Alliance Bank of Arizona DIRTT Environmental Solutions Arizona State University Special Global Advisors
Keith Galbut, Galbut & Galbut PC Bob Bingham, Bob Bingham Companies
Glenn Williamson, Canada Honorary Consul in Arizona
Hank Marshall, UK Honorary Consul in Arizona
Brett Johnson, Snell & Wilmer
Melissa Sanderson, Freeport McMoRan
Lee Benson, Able Engineering
Don Henninger, DH Advisors
Committees Asia Canada Careers Europe Exporting Mexico Contacts Founder/President: Doug Bruhnke, doug@globalchamber.org Community Developer: Shiena Amigo, shiena@globalchamber.org Media Contact: Arielle Cottrell, arielle@globalchamber.org Membership: Dakota Drake, dakota@globalchamber.org
GlobalChamber.org
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Small businesses need flexible solutions when it comes to benefits coverage by Rick Murray, Chief Executive Officer, ASBA
About Us The Arizona Small Business Association (ASBA) is the largest trade association in the state representing 10,000+ member businesses, and over 1/2 million employees in all 15 counties. ASBA members enjoy access to significant group discounts, countless opportunities to do business with each other, a wide array of insurance products, and active advocacy efforts on public policy issues to protect their businesses. Discover more at www.asba.com. Join ASBA. Be amAZed®
Before the Affordable Care Act (ACA), large groups like the Arizona Small Business Association (ASBA) had the ability to negotiate specific plan designs and rates with carriers based on underwriting requirements.
In most
cases, it created a preferred buying opportunity for our members. With the implementation of the Affordable Care Act, that opportunity has been largely neutralized by requiring certain minimum benefits and no underwriting based on previous medical history. ASBA’s sole purpose for existing is to help small businesses be successful. Negotiating preferred rates on healthcare was a huge part of why some business owners chose to be part of ASBA. With that taken away, we had to figure out what role ASBA would play, if any, in helping small business obtain healthcare coverage. The Affordable Care Act has been part of the healthcare landscape for a year now. While much of the confusion still exists around the mandates and tax credits of the ACA, the marketplace (or shopping experience), has begun to take shape. The idea of a one-stop, easy-to-use
In This Issue
shopping experience never materialized…at least until now.
ASBA’s 2015 Legislative
That’s why I am excited to announce that the Arizona Small Business Association has
Forecast . . . . . . . . . . . . . . . . . . . . .pg. 2
partnered with ConnectedHealth to launch Connect2CoverageAZ, a co-branded version of
3 Things You (Probably) Didn’t Know About Healthcare Exchanges . . . . pg. 3 Arizona: It’s Time to
ConnectedHealth’s award-winning Smart Choices™ Marketplace.
It is an online health
insurance and benefits shopping platform where someone can have health insurance can be purchased in as little as 12 minutes. Connect2CoverageAZ allows business owners, their employees, and their family members to shop for health insurance plans and other ancillary products from national and regional health insurance companies based on their personal preferences and financial goals.
ThinkSmallBiz. . . . . . . . . . . . . . . . . pg. 4 This new offering assists users in navigating the complexities associated with selecting health Central Arizona
benefits, while helping them understand the total financial impact of their benefit options. The
4600 E. Washington Street, Suite 340
new portal is also fully integrated with the federal marketplace and allows members and their
Phoenix, AZ 85034
employees to determine if they are eligible for government financial support for their health
p. 602.306.4000
coverage.
Southern Arizona
Connect2CoverageAZ will help ASBA participate in delivering relevant benefits to our members
1022 W. Ina Rd. Tucson, AZ 85712 p. 520.327.0222 © 2015 ASBA. A publication of the Arizona Small Business Association. For more information or to join ASBA, please contact us at www.asba.com. Section designed by the Arizona Small Business Association.
and their employees. ASBA launched the new service in December and I am excited to also offer this new technology to everyone in the Arizona business community, whether members or not, so they can make informed decisions about their families’ insurance. Small business owners need flexible solutions when it comes to benefits coverage for their employees and Connect2ConverageAZ delivers it simply and efficiently. This effort will also continue to position ASBA as a forward-thinking organization helping not only its members but all Arizonans to stay healthy and attract top talent to grow their businesses.
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ASBA Board of Directors Ben Himmelstein | Chair The Frutkin Law Firm Nick Petra | Vice Chair Strategic Duck Jamie Low | Secretary Low & Johnson Business Insurance Rick Danford | Treasurer BMO Harris Bank Donna Robinson | Past Chair Network Dogs, Inc. Karen Karr Clark Hill Ryan McMullen RSI Enterprises, Inc. Kim Marie Branch-Pettid LeTip International Jess Roman Johnson Bank Jack Lunsford The Lunsford Group, LLC
ASBA’s 2015 Legislative Forecast by Jerry Bustamante, Sr. VP, Public Poiicy & Southern Arizona, ASBA
For the first time in a number of years, forecasting the upcoming legislative session is pretty straightforward. The state budget will be the single biggest issue that will dominate most of the legislature’s time, energy and focus. Our state budget woes have returned and it will feel like 2010 once again. Arizona is doing better, and our economy continues to rebound, but just not fast enough. Arizona is projecting a $520 million shortfall this fiscal year and is facing a looming $1 billion budget shortfall the following year. So, how did this happen you ask? First, Arizona’s voter-approved, temporary one-cent sales tax that helped Arizona recover from its economic tailspin expired in May 2013, and its repeal has been felt. Next, state revenue projections were a bit optimistic, therefore tax collections for the state are behind budgeted expectations. To make matters worse, Arizona now has a huge problem as Arizona schools are now calling for $1.3 billion they say the state owes the children of Arizona. Expect a long, challenging legislative session in 2015.
Brannon Hampton Arizona Public Service
We can expect the state legislature to take on the budget by first tackling the core budget issue, how
John Ragan Arizona Chamber of Commerce & Industry
deciding how to divide those dollars between K-12, community colleges, universities and other career
David Bones Kenrich Group
during this legislative session. The debate on Common Core is far from over and the potential to put an
Brent Cannon National Bank of Arizona
and technical training. On the topic of education, expect to see Common Core strongly under attack end to it has increased. A significant number of anti-Common Core lawmakers and state officials now occupy key positions of leadership in Arizona.
Chris Compton Blue Cross Blue Shield of Arizona
A topic that will be more exciting to follow than the budget will be what to do about new business models
Patrick Harter Provision Team, Inc.
is innovation and the free market working at its very best. However, what happens when lawmakers are
Allan Himmelstein Sales Coach AZ
that now threaten existing Arizona industries, including tech companies like Uber and Lyft. This indeed faced with dealing with the consequences of innovation that threaten existing industries that employ many people, and generate sales tax revenues? We will soon find out.
Jerry Houston HPISolutions
Let’s talk beer for a moment. Are you a fan of craft breweries and thrilled that Arizona may be the center
Patty Hughes Vertical Measures, Inc.
how much beer a microbrewery should be allowed to produce. Expect to see efforts from some of the
Luke Johnson Legend Capital Group
opposition may come from small brewers to keep the larger ones from guzzling up market share.
Mike Leeds Pro Sales Coaching, LLC
of the microbrewery universe? There is more than beer brewing in Arizona; there is a battle brewing over larger breweries to ask the legislature to increase its cap on how much beer they can produce, while
Perhaps the biggest challenge in forecasting the upcoming legislative session is the direction and theme that will be taken by the Ducey Governorship. As I write this column, Governor-Elect Ducey is busy
Sandra Luke Warnick + Company
working with his Transition Committee to build his
Rich Murphy Horizon Management Consulting
I am eager to hear what Governor Ducey will say
Jonathan Rosenberg Levrose Commerical Real Estate
2015 legislative session begins on January
Jason Trujillo Principal Financial Group Andrew Westle Gurstel & Chargo
02
much to put into education. Once funding for education has been decided, the next challenge will be
administration and prepare for the upcoming session. in his first State of the State address when the 12th. In the meantime, ASBA has its legislative priorities established for 2015, and I invite you to visit asba.com/advocacy to view our current Legislative Agenda.
2015
3 Things You Should Know About Healthcare Exchanges by Carol Mangen, Director, Member Benefits, ASBA
You’re going to hear a lot more about open enrollment in the coming
ConnectedHealth’s marketplace gives the employees much more
weeks, and, in particular, one critical component of the open
flexibility and control than traditional benefits over how they spend
enrollment process: healthcare exchanges.
their benefit dollars, and also provides a Recommendation Engine
In a nutshell, an exchange is a secure online marketplace available to employees: full-time employees, part-timers and sometimes 1099 contract workers, specifically. The Arizona Small Business Association
and other resources (videos, knowledge center, FAQs, live call center support) that make choosing and enrolling in a plan option quite simple.
is now working with ConnectedHealth as our exchange provider to
3. “Everyone else is still offering traditional benefits; I won’t be
offer you and your staff a wide range of individual plan options.
able to attract and keep talent if I use an exchange to deliver
ConnectedHealth’s Leadership Team sat down with us recently to address some of the top questions and comments about exchanges. 1. “I really don’t want to throw my employees to the wolves and make them figure out benefits by themselves.”
my benefits.” The same benefits (or better) that you are offering today can be offered on exchanges. You can still choose to cover everythingbut start to introduce “choice” to employees. They can choose the plans that are right for their family and life stage (whether they’re having a baby, getting married, etc.).
An effective benefits marketplace can provide an online retail experience – something consumers are very comfortable with. With an exchange, you can offer a similar shopping experience to different people, too – making the process for everyone seamless.
We believe that the employer’s role as the gateway to employee benefits will continue, and mechanisms – specifically exchanges – that make it easy for employers to administer benefits while
2. “If it takes an entire benefits organization to figure this out,
reducing administrative hassles will play a critical role.
how are our employees expected to deal with this on their own?”
Ken Blanchard College of Business | College of Education | College of Nursing & Health Sciences | College of Liberal Arts | College of Fine Arts & Production
Online • Campus
A R I Z O N A’ S P R I VAT E U N I V E R S I T Y S I N C E 1 9 4 9 Get started today! 855.287.0174 | www.gcu.edu/inbusiness Grand Canyon University is regionally accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. (800-621-7440; http://www.ncahlc.org/ ).
03
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Arizona: It’s Time to ThinkSmallBiz. By Kristen Wilson, COO, Arizona Small Business Association
The Facts
The Call to Action
We’d be willing to bet you own a small biz, work for a small biz, shop at
It takes a village to … support a small business. That’s where you
a small biz. know a small biz… or know someone who does. With 97%
come in!
of businesses in Arizona classified as small (500 employees or less), it’s
businesses.
Help support the ThinkSmallBiz movement, and small
not surprising. What you may not know, though, is that small business is the state’s largest employer, employing 45 percent of the private-
Small Businesses: Be sure you can be found! Create your FREE
sector labor force. In fact, more than half of Americans either own or
basic profile listing on the ThinkSmallBiz Directory by visiting
work for a small business, and they create 60-80 percent of new jobs in
thinksmallbiz.org.
the country. Now, that’s job creation and retention if we’ve ever seen it. Chambers, Associations, and others who support small biz: We So, I guess you could say, supporting small biz is all of our jobs. We
have exciting opportunities to partner and support your small
hope you agree.
business members!
The Movement
Corporate Partners: Consider becoming an official sponsor of the
The ThinkSmallBiz movement provides a powerful and engaging
movement and showing your support for the small business commu-
platform to encourage consumers, businesses, and public officials to
nity and your small business clients.
support and patronage small businesses, with the goal of strengthening economic stability by increasing sales, tax revenue and securing and
Everyone with a pulse: UseThinkSmallBizAZ.com as your first stop
creating jobs. The basic message is before you make a purchase
for purchasing decisions, and remember to spread the ThinkSmallBiz
decision, or legislative decision, we encourage you to ThinkSmallBiz.
message.
Ok, that sounds great, but how do we get it done?
For more information on any of these opportunities, contact Rhette Baughman at rbaughman@asba.com or 602-306-4000.
Statewide media and grassroots marketing campaign: In January 2015, the Arizona Small Business Association, along with our partners, will be launching an extensive media and grassroots
ThinkSmallBizAZ.com
marketing campaign to encourage everyone to “ThinkSmallBiz”. ThinkSmallBiz Directory: ThinkSmallBizAZ.com is a public-facing online directory of small businesses. All small business with 500 employees or less, with at least one location in Arizona, are invited to create a FREE listing on the directory. The statewide media campaign will drive businesses and consumers to this directory. ThinkSmallBiz.org Online Small Biz Community: Launching in Spring 2015, ThinkSmallBiz.org will be THE hub for all things small biz – free social media profiles, small business events, news and articles, and much more.
05
Can your small business survive a data breach? By Mark Pribish, Vice President & ID Theft Practice Leader, Merchants Information Solutions, Inc.
While big company data breach events make big headlines – small
What can a small business do? Every small business – whether your
businesses and their customers are the new targets for data breach
business has 1 employee, 5 employees or 10 or more employees –
and ID Theft.
should complete a data assessment, understand the regulatory environment and implement some basic risk management concepts.
Small businesses were the most victimized of all companies, where 31% of organizations with fewer than 100 employees experienced a
• Data Assessment – Every small business should complete a
data breach, according to the 2013 Verizon data breach
comprehensive data assessment of the type of information that is
investigations report.
being collected, used, stored and transmitted. This will help every small business determine their best practices for an effective
When a small business experiences a data breach, the small
information security and governance plan.
business and its customers may not even know it for months and even years, resulting in far more serious consequences to both the
• Regulatory Environment – Every small business needs to
small business and the customer.
understand its responsibility with federal and state notification laws and where it conducts business. You can find the list of the
There are two risk factors when a small business experiences a data
forty-seven states that have notification laws at ncsl.org.
breach event. First, the small business itself could lose business account information such as the Employer Identification Number
• Risk Management – This concept is typically ignored by small
(EIN), business bank account information and proprietary company
business owners, which is a big mistake. Small businesses can
information – all of all which can be fraudulently used against the
minimize their exposure to ID Theft and data breach events by
business resulting in financial loss.
increasing employee education on safeguarding information, the implementation of baseline safeguards/controls, adding cyber
Second, employee and customer data such as credit card numbers,
insurance and vigilance including pre-employment screening
checking account numbers, social security numbers, and/or driver’s license numbers can be stolen to commit both financial and
Being a small business means you are a big target for ID Theft
non-financial ID Theft.
criminals. Protect yourself; protect your business; and protect your customers.
The primary difference between small business ID Theft and consumer ID Theft is that small businesses DO NOT receive the
Mark Pribish is Vice President and ID-theft Practice Leader at
same consumer protections as individual consumers.
Merchants Information Solutions Inc., a national ID-theft and background-screening provider based in Phoenix.
Lunch & Learns held Monthly for Small Businesses Each month ABSA welcomes the smalll business community for the ASBA 101 Lunch and Learn. This workshop is provides networking opporunities, an introduction on how you can maximize your membership with ASBA and more. Register for the next lunch by visiting asba.com/101 today.
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ASBA is preparing for the largest small business event in Arizona By Julie Armstrong, Business Development Manager, Arizona Small Business Association
AZ Small Biz Con 2015 will be held on May 19 & 20, 2015 at the
business development.
Renaissance Glendale Hotel & Spa. ASBA hopes to reach the entire
everyone: two keynote presentations, twenty-five breakout sessions,
The conference will have something for
small business community through relevant educational sessions,
one-on-one business mentoring and the ThinkSmallBiz Expo with
valuable mentoring and effective business networking.
over 150 exhibitors.
The 22nd Annual Enterprise Business Awards Luncheon will kick off
ASBA’s dedication to supporting small business growth allows
the conference and expo on Tuesday, May 19th. The day will include
business owners to be more productive, profitable and thrive in the
interactive breakout sessions, rounded off by a high-energy
communities they serve. We look forward to seeing you at AZ Small
networking mixer. On Wednesday, May 20th the conference will open
Biz Con 2015!
with a Keynote General Session followed by a day filled with educational breakout sessions. The ThinkSmallBiz Expo will also be open for business both days. Your attendance will show support and commitment to small business, allowing ASBA to be identified as Arizona’s leader in small
Master Your Social Position!
Social Media that gets noticed, backed by the credibility of In Business Magazine… Marketing Automation | Social Media | Digital Products www.inbusinessmag.com 480.588.9505
07
ASBA Staff Rick Murray Chief Executive Officer Kristen Wilson Chief Operating Officer
Understand Your Business, Not Just What You Do. By Brittany W. Troop
Jerry Bustamante, Sr. VP, Public Policy + Southern Arizona Debbie Hann, VP, Finance + Administration Rhette Baughman, Director, Client Relations Robin Duncan Director, Membership Carol Mangen Director, Member Benefits
How much is your business worth? Millions of dollars? Pints of blood? Liters of sweat? Gallons
Gabe Salcido Marketing Manager
Many entrepreneurs spend years building their companies, hoping industry expertise will carry
of tears?
them through all the details of ownership (human resources, accounting, benefits, etc.). And many times, it does….at least as long as you stay in the business and at the top. But what if you
Julie Armstrong Business Development Manager Ron Janicki Business Development, Southern Arizona Laura Bassett Member Benefits Coordinator Ashley Mills Administrative Coordinator
retire, sell, take on a partner, become disabled, or get divorced? Suddenly, those little details can become critically important. Donna Robinson, Chairman of ASBA’s Board of Directors, recently sold her IT consulting business after more than 15 years. During sale preparation, she experienced firsthand the benefit of diving into the details to better understand her business. “As small business owners, we often think our business is worth a lot more than it is,” Robinson said. “We wear a lot of hats, and so, to us, it is worth more. We’ve put so much of ourselves into it.” Robinson knew she needed help finding a realistic starting point for negotiations. So she contacted her financial advisor, who provided an informal, complimentary business valuation. Although the buyer paid thousands to prepare a similar value analysis during due diligence, the valuation amounts were about the same, according to Robinson. “The buyer had a CPA doing their assessment,” Robinson said. “Our company sold for almost exactly what our advisor said, so both sides came back with the same answers, except our valuation was free.”
Central Arizona Office 4600 E. Washington Street, Suite 340 Phoenix, AZ 85034 p | 602.306.4000
Robinson recommended that all small businesses engage in a valuation analysis and suggested updating it frequently so owners are able to evaluate less obvious opportunities. “If we’d done it regularly throughout the years,” Robinson added, “We might even have sold it sooner.”
Southern Arizona Office 1022 W. Ina Rd. Tucson, AZ 85712 p | 520.327.0222
08
ASBA has teamed with The Arizona Business Center of The Principal Financial Group to offer members the same complimentary business valuation service used by Donna Robinson during the sale of her company. For more information about this service, please contact info@asba.com.
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ThinkSmallBiz is a movement promoting the support and patronage of small businesses. Make sure your business can be found in the new ThinkSmallBiz directory by creating your free listing today. We encourage everyone to “ThinkSmallBiz”!
Visit ThinkSmallBiz.org Today! 64
JA N . 20 1 5
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JANUARY 2015
Aarons, Barry, 28 Ahlmer, Michelle, 12 Armstrong, Julie, 59 Barr, Daniel, 26 Benson, Lee, 45 Bischak, Susan Giles, 47 Brewer, Jan, Governor, 28 Bricker, Tim, 39 Briggs, Andy, President of the Senate, 39 Bruhnke, Doug, 45 Bustamante, Jerry, 54 Chaffee, Fred, 36 Cottrell, Arielle, 45 Curry, Arnold, M.D., 20 Dathe-Douglass, Sue, 35 Dolan, Stephanie Sherman, 49 Drake, Dakota, 48
20 Volume Salon and Spa, 39 910 West, 39 Aarons Company, The, 28 Able Engineering, 45 Affinity Technology, 17 Ahwatukee Foothills Chamber of Commerce, 40, 41 Alerus Financial, 13 Alliance Bank of Arizona, 3 APN Staffing, 66 Arcadia Tavern, 44 Arizona Association for Economic Development, 40 Arizona Chamber of Commerce and Industry, 11, 28, 39 Arizona Diamondbacks, 62 Arizona Hospital and Healthcare Association, 12 Arizona Retailers Association, 12 Arizona SBDC Network, 14 Arizona Small Business Association, 40, 53 Arizona Technology Council, 41 Arizona Women’s Education & Employment, 24 Arizona, State of, 28 Arizona’s Children Association, 36 Arizona Women’s Education and Employment, Inc., 43 Banner Health, 39, 68 Barefoot, 34 BMO Harris Bank, 50 BNC National Bank, 7 Brandon Barber Coaching, 49 Buchalter Nemer, 26 Buffalo Wild Wings, 39 Burch & Cracchiolo, P.A., 27 Bushtex, 39 Canada Arizona Business Council, 28 Chandler Chamber of Commerce, 41 CO+EXCHANGES, 16 Community Celebrating Diversity, 41
Ducey, Doug, Governor, 28, 31, 39 Fertik, Michael, 35 Gowan, David, Speaker of the House, 28, 39 Green, Christian, 20 Hall, Roger, 26 Hamer, Glenn, 11, 28 Harvey, Bonnie, 34 Hayzlett, Jeff, 34 Herstam, Chris, 28 Heyman, Jared, 20 Hobbs, Katie, Senator, 39 Holmes, Jasmine, 39 Houlihan, Michael, 34 Hull, Kevin, 50 John, Andrew, 39 Kessler, Elaine, 39 Kesterson, Hoyt, 18 Krueger, Joan, 39 Lawless, Tim, 12
Mangen, Carol, 55 Maurer, Lisa, 14 Meyer, Eric, Dr., Representative, 39 Modlin, Paige, 39 Moon, Sean D., 35 Moreno, Jean, 22 Murray, Rick, 53 Nenaber, Pam, 39 Nielson, James, 16 O’Neil, Alissa, 39 Parry, Jay, 22 Petersen, Warren, Representative, 28 Pribesh, Mark, 58 Quinlan, Farrell, 28 Rayhons, JW, 39 Reagan, Michele, Secretary of State, 28 Robinson, Donna, 60 Romaine, Kristin, 16 Schaaf, Paul, 18 Schlomach, Byron, 28
Schmidt, Gayle, 39 Severson, Adelaida, 39 Shillingburg, Charles, 66 Sleezer, Dan, 39 Stevens, Tim, 35 Sullivan, Marie, 24 Suominen, Kati, 46 Tabib, Oren, 48 Taylor, Garrick, 39 Thompson, David C., 35 Tingom, Shannon, 39 Troop, Brittany, 60 Vigdor, Greg, 12 Waddell, Stacey, 39 Walker, Kyle, 45 Watts, Sarah, 39 Willett, Ralph, 39 Williamson, Glenn, 28 Wilson, Kristen, 57 Yantos, Tony, 39
Conquest Training Systems, Inc., 8 CopperPoint, 2 Core Institute, The, 21 CreditSuppliers, 16 CrowdMed, 20 Cuff, 44 Desert Schools Credit Union, 38 Dignity Health – Mercy Gilbert Medical Center, 39 Douglas Allred Company, 16 Downtown Phoenix Partnership, 64 Driver Provider, The, 25 Economic Club of Phoenix, 41 Edward Jones Investments, 39 Elaine Kessler Photography, 39 Enterprise Technology Services, 19 ETW, 45 eWomenNetwork – Phoenix/Scottsdale, 40 FBI, 18 Fitbit, 42 FSW Funding, 64 Garmin, 42 Gilbert Chamber of Commerce, 39, 40 Giles & Company Strategic Business Consultants, 47 Glendale Convention & Visitors Bureau, 5 Glendale, City of, 22 Global Chamber, 45 Goldwater Institute, 28 Goodwill, 63 Grand Canyon University, 55 Greater Phoenix Chamber of Commerce, 40 Greater Phoenix Gay & Lesbian Chamber of Commerce, 40 Green Card Fund, 45 High Street, 16 HiringSolved, 14 Infusionsoft, 52, 63 John’s Refrigeration, 39 KTAR News Talk 92.3, 9 Lewis Roca Rothgerber, 28
LifeLock, 14 Local First Arizona, 41 LocalWork.com, 25 Maddy’s Pool Supply & Service, 39 Majerle’s, 44 Maricopa Community Colleges, 52 Medical Records Systems, 20 Medican Enterprises, Inc., 16 Mercedes-Benz, 42 Merchants Information Solutions, Inc., 58 Mind Tools Ltd., 14 NAIOP Arizona, 12 National Bank of Arizona, 39 National Federation of Independent Business, 28 OneNeck IT Solutions, 61 Paradise Bakery & Café, 39 Pearson, 14 Pebble, 42 Perkins Coie, L.L.P., 26 Phoenix Children’s Hospital, 4 Phoenix Children’s Hospital Foundation, 7 Phoenix Philanthropy Group, The, 36, 38
Pioneer B1, 48 Polsinelli, 49 Ralph Willett CPA, 39 Rayhons Financial Solutions, 39 RE/MAX SOLUTIONS, 39 Red Thai, 44 Reliable Background Screening, 64 Scottsdale, City of, 20 SRP, 37 Super Bowl Host Committee, 22 Target Commercial Interiors, 67 Tempe Chamber of Commerce, 41 Terra Verde Services, 18 ThinkSmallBiz, 64 TradeUp Capital Fund, 46 U.S. Small Business Administration, 50 UnitedHealth Group, 20 Veridus, 15 Vermillion Photo, 17 Vistage International, Inc., 47 Walmart, 39 Waste Management Phoenix Open, 23 Wells Fargo, 5
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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65 20JA1N5. I N B U S I N E S S M AG . CO M
Roundtable
A CANDID FORUM
Who Are You – What’s Your Brand? Your personal brand is a business commodity, too by Charles Shillingburg As a professional recruiting and staffing executive, I am amazed at how few business owners and corporate executives have consciously built their personal brand. Perhaps they don’t think of themselves as a brand, but in the competitive business marketplace, they can ill afford not to do so. The American Marketing Association (AMA) defines a brand as a “name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.” But it is more than this. It is the sum of all the characteristics, personalities, behaviors and associations made with goods and services that differentiate them, either positively or negatively, and this includes tangibles and intangibles like openness, quality, caring, trust, social consciousness, reliability and followthrough. Brands simplify choices. Whether you know it or not, you are a brand, just like a company, because people have already formed opinions of you. And those aware of you have already differentiated you. The question is, “Are you in control of these perceptions?” If not, you had better start thinking about it and start controlling it. When someone Googles you, what comes up? Nothing? Something? Is it good or is it questionable? Same thing with Facebook, Twitter and YouTube. What kinds of pictures come up? Do they show you partying or are you doing something socially redeeming? What about your narratives — are your conversations negative or positive? Stand back and look at all of your communications objectively. Do you see someone who is mature, positive, a problem solver, and someone who
Charles Shillingburg is vice president of Marketing and Business Development at APN Staffing and Employment Solutions (www.apnusa.com), a national recruiting firm based in Phoenix that has been providing personnel to the automotive, transportation, motorcycle and healthcare industries. An expert in operational excellence, sales and service delivery, marketing and branding, he co-authored Driving Operational Excellence: Lean Six Sigma Secrets to Improve the Bottom Line.
Personal Brand Identities There is the individual who, when you
scolding and criticizing. I have seen this
professional picture. Their profile is
Google his or her name, literally nothing
in my alumni blogs — individuals whose
complete, with an overview of who
comes up. No LinkedIn, No Facebook, no
gift-giving had made them appear initially
they are and what they stand for. Their
link to a company, nothing. As a brand, this
as caring, giving individuals suddenly
work history is complete, full of positive
person is a nonentity.
became uncaring bullies due to their
contributions and benefits to those they
scathing criticisms and attacks against
served. Their affiliations relate to their
even with entries on LinkedIn or elsewhere
others on the blog. Their good works and
history, their interests and contributions.
if his or her name comes up on a Google
giving (sometimes in the millions of dollars)
They provide articles and books they have
list with others sharing that name and
were undone because of their attacks, and,
written, recommendations from others and
there is no picture or details of information.
as the alumni community turned against
recommendations for others. Also, their
Without some link to a company or some
them, they became more defensive and
other accounts, such Twitter and Facebook,
other identifier, you have no idea which —
abrasive. It will take a demonstrable effort
deliver a consistently positive message.
if any — is the person you are looking for.
for these individuals to redeem themselves
When you Google these individuals,
and be viewed positively again. Better to
you see a consistently positive profile
partying pictures. Sometimes they do
treat all with respect and provide positive
of work accomplishments and personal
depict a sophisticated connoisseur, but
solutions. Don’t make personal attacks.
achievements in the areas they care
usually the person comes across as an out-
Keep to the facts and/or ask questions
about and that make a difference to their
of-control lush.
others can consider.
organizations, community and maybe the
A person may be a de facto nonentity
Everyone can relate to the drinking,
There is the critic and complainer. Everything this person writes is negative,
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will make or is making a positive difference? Or do you see someone who is immature, negative, a complainer and a poor influence on others? All of your social media conversations and pictures are out there forever. Whatever you have done to date, it isn’t too late to alter your image. You can change the tone of your conversations to be more constructive and your pictures to be more inspiring. Your future content will begin to dominate your old content and you will become a changed person. Importantly, you need to think about how you want to be perceived, so you can build and reinforce this image. For those who do have a positive image, keep reinforcing your image and broaden your base, and you’ll definitely find it makes dollars and sense.
Then there are those who have
world at large.
a detailed LinkedIn profile with a
Forbes identifies Apple as the most valuable brand in the world (brand value $124.2 billion). Mercedes-Benz (whose latest SUV model is this issue’s featured Assets automobile, page 42) stands at 17th (brand value $23.8 billion).
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