February 2013 In Business Magazine

FEB. 2013

Find Your Unique Niche, and Beat the Competition by Ignoring It!

Women at the Top

Are They Making a Difference in Business? power Lunch by the numbers business Calendar

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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.

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WOMEN IN BUSINESS

22

FEB. 2013

IN BUSINESS MAGAZINE

Contents

Find Your Unique Niche, and Beat the Competition by Ignoring It!

February 2013

Women at the Top

Are They Making a Difference in Business? power Lunch by the numbers business Calendar

FEBRUARY 2013 • inbusinessmag.com

Women at the Top: Are They Making a Difference in Business?

$4.95 INBUSINESSMAG.COM

This Issue Tempe Chamber of Commerce Arizona Technology Council

What type of personality traits and leadership skills does a woman need to climb to the top of the corporate ladder or run her own company as a successful entrepreneur?

And do women inherently possess leadership styles that, in the business world of today, give them an edge over men? Sue Kern-Fleischer spoke with women leaders in a variety of industries, who shared the fruits of their experience and research.

Departments

9 Guest Editor

Features

Susan Clark-Johnson, executive director of the Morrison Institute for Public Policy, introduces the “Women in Business” issue.

18 The ROI of Training Programs

Top Valley businesses reveal to J. Rentilly the benefits of investing in employee training.

31 Take Service to the Stratosphere

10 Feedback

31

12 Briefs

Although customer service gets a lot of lip service, it generally falls far short of where it could be. Ron Kaufman offers 12 keys to creating uplifting service in today’s marketplace.

38

Bill McBean identifies and discusses facts of business life that affect us as entrepreneurs.

40 Find That Unique Niche in the

16 By the Numbers

Boost to Business

Marketplace

Beat the competition by ignoring it, says R. Kay Green, Ph.D., offering concrete suggestions for creating an environment in which a business stands out by standing alone.

Special Sections

47 Tempe Chamber of Commerce

57 Arizona Technology Council

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1

Steven

A New Leaf Phoenix Children’s Hospital

42

Noted business and community leaders Lorraine Bergman, Erin Graham and Julie Robinson respond to IBM’s burning business question of the month.

“Find More Like This,” “Education & Business Alliance,” “Firewall & Storage Offered,” “What’s in a Name?

Arizona Law Firms Gain Marketable Options,””C-Span Video Library,” “Loan Modification May Be Option if Loan Is Current,” “Manufacturing Company Expands, Works with Schools to Fill Void in Work Force” and “Critical Time Window for Federal Energy Efficiency Tax Incentives”

38 Entrepreneurial Truths Give

34 Nonprofit

CFO survey indicates positive outlook on U.S. economy for the near future.

20 Trickle Up

View from the top looks at Sandra Watson’s commitment to lead the Arizona Commerce Authority to grow and strengthen Arizona’s economy.

33 Books

New releases explore strategies of customer service.

42 Assets

The New Range Rover Plus: Writing instruments worthy of signing the deal

44 Power Lunch

Central Bistro serves an inspired French/Italian menu in surroundings of casual sophistication.

Plus: Lunch spots with French flair and an intimate ambience

66 Roundtable

With the prevalence of fake blogs and Web news sites, building an online presence of authenticity matters.

On The Agenda

35 Spotlight

Center for Entrepreneurial Innovation ASQ Lean and Six Sigma Conference

36 Calendar

Business events throughout the Valley

Managem

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Staff

SciTech

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Vol. 4, No. 2. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251 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. © 2013 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.

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F e b r u a r y 2013

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Susan Clark-Johnson, Executive Director, Morrison Institute for Public Policy

Guest Editor

Women Move Business

Susan Clark-Johnson, retired president of the publishing division of Gannett Co. Inc., is currently executive director of the Morrison Institute for Public Policy at Arizona State University.

She served a term as chairwoman of the Newspaper Association of America and has been recognized by numerous organizations, including lifetime achievement awards from The Washington Women’s Center and the National Association of Minority Media Executives.

A member of the Council on Foreign Relations, she also serves on the boards of public companies Pinnacle West Capital Corp. and Chyron Co. as well as a variety of nonprofits that include the Translational Genomics Research Institute (TGEN).

Arizona’s history is rich in contributions from women — in business, in politics, in education, in philanthropy — in every aspect of Arizona’s evolution as a state. In business, whether as independent entrepreneurs or after ascending to the corporate C-suites, women bring diverse talent and drive to the economic fabric of our state.

We are fortunate here that women indeed have the influence, the respect, even the power, to change policy, to improve, to grow, to nourish, to motivate and to develop others. This state has remarkable young women who want to make a difference. It also has some remarkable seasoned women who care deeply about Arizona and want to contribute to making it a great state some day. One only has to look at the gubernatorial office — occupied by women who have shaped (whether you agree with them all or not) this state for the past decade. One has only to look at the power of innovative philanthropic work being done by women who run foundations and funds. Or at the number of women who run companies, large and small.

Women continue to strengthen economic development throughout the state. In her cover story, “Women at the Top: Are They Making a Difference in Business?” Sue Kern-Fleischer explores leadership styles of women in today’s globally connected business world as well as the entrepreneurial challenges of women small-business owners, and the contributions of women-owned and women-led businesses to the Arizona economy.

A reality of human resources management in today’s business environment is the mobility of the younger work force continually job seeking to advanced opportunities. J. Rentilly delves into the challenges of businesses trying to retain and develop its work force and leadership in “The ROI of Training Programs.” Ron Kaufman offers 12 keys to creating uplifting service in today’s marketplace in this issue’s Focus feature on customer service. And in the Roundtable feature, Marsha Friedman discusses the proliferation of fake blogs as a marketing ploy on the Internet and the importance — and value — of a business establishing credibility in its website messaging.

In Business Magazine is a strong tool for businesspeople from the entrepreneur to the chairman of the board, focused on bringing its readers relevant and useful information on subjects important to business.

Enjoy the read.

Sincerely,

Susan Clark-Johnson Executive Director Morrison Institute for Public Policy

Building Business, Not Barriers

Connect with us:

We are past the days of the obvious barriers in business for women. In fact, today, women have become such a strong part of business and business leadership that our cover story this issue discusses some of the elements that women inherently bring to business that are now appreciated as assets to business. While some believe it is all in the “eyes” of the successful to succeed, this issue celebrates how women are empowering business in Arizona.

Story Ideas/PR: editorial@inbusinessmag.com

inbusine ssmag.com

Thank you to Sue Clark-Johnson for her leadership and insight in working with us on this issue. As head of the Morrison Institute and a former leader in business here with Gannett, she is a terrific guest editor for our “Women in Business” issue. As leaders, we build businesses because of our passions and our interests in servicing, producing or managing something. Arizona is becoming a hub for growth in business — whether you are a man or a woman. Here’s to success.

—Rick McCartney, Publisher

Business Events/Connections: businessevents@inbusinessmag.com Marketing/Exposure: advertise@inbusinessmag.com Or visit us online at www.inbusinessmag.com

F e b r u a r y 2013

9

Feedback

Valley Leaders Sound Off

Executives Answer

As a business owner or corporate executive, what do you see as the biggest challenges to running a business in Arizona today?

Lorraine Bergman President and CEO Caliente Construction Inc. Sector: Construction

Erin Graham President Professional Employment Solutions, Inc. Sector: Human Resources

One of the biggest challenges facing Arizona businesses today is the lack of a qualified, skilled and educated work force. With the downturn in the economy, many people in the construction industry opted to change professions or move to states where construction was not as greatly impacted. At the same time, SB 1070 was passed and Arizona lost additional skilled laborers. As we recover, many Arizona businesses are unable to find qualified workers at every level. The lack of good candidates from degreed professionals to support personnel and skilled tradesmen has the potential to negatively impact the ability of businesses to expand. Without a concentrated effort and investment in education, this problem will only become more prevalent. It is important that business, community and educational leaders, as well as our state and local governments, work together to address this issue. The efforts should be focused on all levels of education, from elementary school through higher education, and include vocational training and a reasonable response to the immigration issues that impact our work force.

Businesses today are strained by the loss of political public confidence, combined with business pressures to survive, increasing competition and the government’s compliance requirements.

Many business owners like myself are asking the question, “What direction is our country headed?” and, more importantly, “How does a business owner have prosperity when our government is not in the position to lead?” Running a business takes the combination of investing in human capital and technology advancements with the assurance the government is working for business owners. The government has lost touch with businesses today.

Government needs to restore confidence and forgo the unnecessary tax hikes. The government has shifted its focus to special interest factors, not business interest. The problem is not getting any better; the less responsive the government is, the less likely it is to restore both business and public interest. Another issue businesses face is the lack of business resources. The government has become a great divide on business equality — there is no longer equality for businesses.

Caliente Construction Inc. calienteconstruction.com

Erin Graham is president and managing principal of Scottsdale-based Professional Employment Solutions, Inc., a full-service provider of business solutions to companies that range in size from small, privately held companies up to Fortune 100 organizations.

PES places accounting/finance, information technology, administrative and healthcare professionals into temporary and direct hire positions. Prior to founding PES in 2003, Graham had earned performance awards with a $4-billion international staffing firm, where she became its youngest as well as first female regional vice president.

Arizona native Lorraine Bergman is the president of Caliente Construction Inc., one of Arizona’s 50 largest construction companies and Arizona’s fourth-largest womanowned company. Bergman has a degree in business administration and finance from the University of Phoenix. Involved in many civic and charitable organizations, she is a twotime Athena Award nominee, was the Arizona Corporate Excellence Award recipient for Most Admired CEO in 2010 and is the incoming president of Arizona Builders Alliance.

Julie Robinson President Jani-King Southwest Sector: Commercial Cleaning, Franchising Although there are many contributing factors, I find that one of the most significant challenges facing business today is the tenuous stability of the economy.

This lack of certainty, even in the face of slow improvement, contributes to a lack of confidence, which presents significant issues in planning for growth.

As a franchisor in the commercial cleaning industry, my company has a unique perspective on the marketplace as our franchisees provide services to businesses and organizations in all market segments. In

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F e b r u a r y 2013

Professional Employment Solutions, Inc. pesinc.com

speaking with clients and other business leaders, one of the continuing challenges I hear many face remains the issue of raising capital to invest in future growth.

Most executives I speak with agree that too many of the challenges we face today come from Washington, D.C. Complicated and unclear policies that increase taxes on businesses and their customers place a heavy burden on those who are attempting to push the economy forward.

In this climate, it is more important than ever to develop and strengthen relationships within our marketplace to achieve growth for everyone.

Jani-King Southwest janiking.com/southwest

Julie Robinson is owner and president of Jani-King Southwest, Arizona Master Franchise of Jani-King International. Jani-King Southwest markets and supports unit franchisees, providing a full range of commercial cleaning services to more than 1,200 satisfied clients across the state of Arizona. Robinson holds a B.S. in telecommunications and marketing from Indiana University, and spent more than a decade in retail management and outside sales positions before joining Jani-King in 1995.

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opportunities and educational organizations with business throughout Arizona.

The webpage showcases partner organizations and links to the education groups, connecting business and education to engage each to collaborate and improve the Arizona work force. alliancebankofarizona.com/education2013

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Go online for more!

What’s in a Name? Arizona Law Firms Gain Marketable Options

As of last month, law firms in Arizona have the option to name themselves a trade name rather than being required to use the attorney’s surname, with the limitation that the trade name must be truthful and accurate and not be misleading, such as implying an affiliation with a government office. This brings Arizona in conformity with a majority of the other states nationwide on this ethics rule change.

“It’s easier to be descriptive and accurate with a [trade] name,” observes Billie Tarascio, who opened a law firm in Oregon seven years ago as “Modern Law” — expressive of her business model that replaces retainers with a pay-as-yougo structure and provides services to people who choose to represent themselves — but had to use “Tarascio Law Group” for the Phoenix office she opened three years ago. Marketing her second office was challenging, she says, “because I couldn’t use the name, website or logo that I had already established.”

Lee Fraley, a partner in the Phoenix office of regional law firm Snell & Wilmer, expects the new legislation to impact smaller, less-established firms, which can use a trade name to gain some competitive advantage by creating a unique identity in the marketplace, and boutique firms such as products liability defense firms, for which the name of a person doesn’t associate the firm with anything in particular. The Arizona Bar Association’s membership includes 295 one- or twomember firms and 7,725 sole proprietorships.

A strategy law firms big and small have been using in Arizona is promoting their tag line or Web domain name to help communicate their identity. But an important benefit to the use of trade names, Tarascio points out, is developing good-will value to the firm’s name that will make it an asset for selling the business. The limitation of the old rule was the name could not be used for the firm if that attorney was no longer part of it (the only exception was for “continued succession” — new partners continuing the firm’s practice even after the named attorney was deceased). However, says Fraley, “When we acquire smaller firms, we just merge them into Snell & Wilmer because our brand is already known.”

—RaeAnne Marsh Modern Law mymodernlaw.com Snell & Wilmer swlaw.com

Visualize This

Seeing Is Believing C-Span Video Library

For those who love to keep up on policy,

initiatives and all that surround them from Washington, D.C., this site will intrigue.

Start off with this panel on U.S.-Mexico Border issues with City of Phoenix Mayor Greg Stanton. c-spanvideo.org/program/310475-1

Visit our “Briefs” link online.

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F e b r u a r y 2013

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Photo courtesy of xxxxx

Briefs

Quick and to the Point

Briefs

Quick and to the Point

Loan Modification May Be Option if Loan Is Current

Manufacturing Company Expands, Works with Schools to Fill Void in Work Force

As the economy slowly turns itself around for many, small businesses that have been hanging on even if struggling may have more financing options available to them than they’re aware of. For a business to be able to get any concessions from a bank, however, it’s imperative that it start talking to the bank before getting behind in payments on its business loans. That goes against instinct for many entrepreneurs, who may feel they’ll turn the corner if they funnel their resources toward paying vendors for supplies to keep the business going, believing they’ll then be able to pay their business loan, observes Joan Brubacher, CFO of Resolute Commercial Services, who has seen many small businesses take this approach and get in a hole they couldn’t dig themselves out of. “Once you’ve gotten to the point where you’re not making payments, you have severely limited your ability to come up with creative solutions to manage the problem,” she says.

Banks’ operations depend on their capital ratio, which is impacted by the health of their loan portfolios. Under the DoddFrank Act, once a debt has been classified a troubled loan — which is what a couple of missed loan payments will create — even the slightest loan modification must be reported to regulators. It then becomes an item considered in calculating a bank’s efficiencies.

Banks are, therefore, loathe to have troubled debt restructurings (TDRs) to report. But Brubacher notes that options banks can’t offer after a business’s loan has been classified a TDR they have the flexibility to offer before it gets to that point, such as extending the loan, allowing interest-only payments for a period of time and reducing the interest rate.

—RaeAnne Marsh

Anticipation of increased market demand drove the decision

by LAI International — a strategic supplier of precision components and subassemblies for original equipment manufacturers — to consolidate its three Arizona manufacturing plants and expand its Arizona presence into a 32,400-square-foot facility in Tempe. “It’s a ‘perfect storm’ when customers are telling you, ‘You need to tool up and get ready to rock ’n’ roll’ and when you’re also seeing all the market indicators that are showing the same kind of growth.

That’s a good position to be in,” says president and CEO Patrick Gruetzmacher.

Gruetzmacher expects to increase the company’s employee base by at least 12 percent, and is working with local trade organizations and schools to prepare the necessary skilled work force. “The appropriate skills are not in the work force, so we have to develop the skill sets.” Tactics include aligning the company with the Minority Enterprise and Arizona Technology councils and partnering with ASU and local community colleges and high schools to promote and work with them on industrial arts. “I have specific goals and objectives for the leadership at all sites,” Gruetzmacher says, noting that, among other actions, LAI International engineers are mentoring in science and math classes.

The advantages of Tempe as the company’s Southwest location include proximity to its customers, with Honeywell and others just down the street and LA a quick hop away by air. “We do a lot of technical business, and customers like to speak with the engineers in the same time zone and the same language,” Gruetzmacher says. LAI International’s products support aerospace and defense engine manufacturers; industrial gas turbines, which convert and generate power; the medical field; and industrial oil and gas, for exploration.

—RaeAnne Marsh

Resolute Commercial Services resolutecommercial.com

LAI International, Inc. LAIco.com

Prep for Taxes

Critical Time Window for Federal Energy Efficiency Tax Incentives The IRS tax code that provides federal tax incentives on energy improvement investments, §179D, expires at the end of 2013. While energy efficiency upgrades need to be completed by Dec. 31, 2013, to qualify, opportunities exist in two areas: accelerating future projects into 2013 and reviewing projects dating back to Jan. 1, 2006, that resulted in energy savings. Either of these can allow the building owner, occupant or designer to qualify for the deduction. §179D of the Internal Revenue Code supported by the Energy Policy Act of 2005 includes full and partial tax deductions for investing in commercial building improvements that are designed to increase the efficiency of energy-consuming functions such as lighting, HVAC and building envelope. The deduction available is up to $.60 per square foot for each function — a potential for $1.80 per square foot if all three components or subsystems qualify. Factors that need be taken into consideration are whether the building owner can take the deduction and whether the project qualifies.

To take advantage of the allowable deduction for energy saving projects, consider accelerating future projects into 2013. Also, review projects

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F e b r u a r y 2013

completed since Jan. 1, 2006. Energy improvements may have resulted from a renovation that improved lighting and/or cooling efficiency, an upgrade to mechanical equipment as part of a maintenance program and/or improvements to the building envelope. This deduction may be taken on renovations and retrofits to existing buildings as well as new construction. §179D requires a reduction in annual energy and power consumption per subsystem (listed above) to the American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) Standard 90.1-2001.

And as we head into this year’s tax season, it can be beneficial to review those energy projects completed since Jan. 1, 2006, for any incentives that may apply.

—Wayne Haggstrom, Capital Review Group Capital Review Group capitalreviewgroup.com

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10/25/11 3:29 PM

By the numbers

Metrics & Measurements

Survey: CFOs See Stability in U.S. Economy’s Near Future Nearly 70 percent of chief financial officers of U.S. companies believe the U.S. economy will either improve or remain stable during the next six months, according to the recently released 2012 Fall CFO Survey from Grant Thornton LLP. The survey findings reveal that 39 percent of respondents believe the state of the U.S. economy will remain the same in the first half of 2013, while 30 percent believe it will improve. The latter is a 5 percent increase from the firm’s 2012 Summer CFO Survey, while the percentage expecting it to worsen also rose, from 21 percent to 31 percent.

The high expectation of stability extends throughout the survey findings, with CFOs predicting industry financial prospects (42 percent), pricing or fees charged (51 percent) and head count (49 percent) will all remain the same in the next six months.

Of headline issue “the fiscal cliff,” 60 percent of respondents reported they did not consider the uncertainty of its resolution an obstacle to making business decisions. “The turbulent years of the recent past have made businesses more adept at managing through economic uncertainty,” says Stephen Chipman, CEO of Grant Thornton. “It is reassuring to see that

CFOs are confident that we will not take any steps backward in our progress.”

Beyond simply remaining the same, it’s also encouraging that 34 percent of respondents believe industry financial prospects will improve, 35 percent believe pricing or fees charged will increase, and 34 percent say head count will increase. In addition, according to the survey findings, CFOs are committed to keeping several employee benefits the same as last year, including bonuses (55 percent), stock options (69 percent), 401K match (85 percent), and other company-matched retirement contributions (82 percent). On a positive note, 59 percent plan to increase salaries.

“While many companies don’t foresee the economy taking a turn for the worse in the next six months, there is still an absence of improving economic conditions that are needed to propel our country into growth mode,” Chipman adds. “Only 34 percent of companies expect their financial prospects to improve in the next six months, which means that reluctance to increase hiring and make capital investments will continue to bog down our economy.”

—Mike Hunter Grant Thornton L.L.P.

0.02

2,512.1

0.01

No. of Housing Permits (Dec. 2012)

2,365

130.73

Consumer Confidence (Q3 2012) (Arizona)

71.3

32.04

Average Hourly Earnings (Dec. 2012)

$22.82

0.03

Eller Business Research

Retail Sales (Arizona) Retail Sales (in thousands)

Oct. 2012

Nov. 2012

Total Sales

$6,588,229

$6,872,355

7.03%

5.47%

Retail

$3,973,952

$4,295,797

Food

$1,011,261

$1,029,972

Restaurants & Bars

$842,616

$817,069

Gasoline

$760,399

$729,515

Contracting

$873,795

$837,120

Change Y0Y

Real Estate Commercial: Office*

Increase/Improve

29%

Decrease/Worsen

2% 2%

32%

… in the pricing or fees charged by your industry?

92,786

1,256,546

Rental Rates (Class A)

$23.45

$23.27

Q4 2011

Rental Rates (General Industrial)

Residential: Total Median Sale Price

13% 34%

F e b r u a r y 2013

$0.51†

$0.46†

Dec. 2012

7,801

7,531

$129,054

$168,903

736

928

$227,598

$259,868

7,065

6,603

$120,000

$155,000

* Cassidy Turley Arizona †

16

1,776,184

New Median Sale Price Resale Sales Volume

Survey Demographics from Grant Thornton L.L.P. The Fall 2012 survey includes responses from company executives across the nation.

11.2%

2,853,602

New Build Sales Volume

Resale Median Sale Price

51%

Q4 2012

12.3%

Dec. 2011

Total Sales Volume

1% 1%

… in your industry’s financial prospects?

25.7%

Net Absorption (in SF)

Net Absorption (in SF)

49%

Q4 2012

27.9%

Vacancy Rate

Significantly Decrease/Worsen 39%

Q4 2011

Vacancy Rate

Commercial: Indust.*

Remain the same 32%

42%

YOY % Change

7.9

Job Growth (in thousands) (Dec. 2012)

Significantly Increase/Improve

1% 2%

… in your headcount?

22%

Number

Unemployment (Dec. 2012)

CFO’s give their six-month take on the economy

16% 28%

Economic Indicators (Arizona)

grantthornton.com

What change, if any, do you expect to see …

3% 1%

Key indicators for our state economy are provided in each issue to identify those key numbers that give readers a sense of the health of our local economy.

Eller Business Research

State of the Economy Is Viewed Positive … in the U.S. economy?

Key Indicators

Industrial rents are expressed as triple net.

Latest data at time of press

inbusine ssmag.com

“They have the strength we needed” John Bloom, R&D Specialty Manco Alerus Bank & Trust Commercial Banking Customer

When John Bloom switched banks, he was looking for financial strength. He found it in Alerus Bank & Trust. “I’m looking forward to a long-term relationship with them.

I’ve been very happy since I made the change.”

Read the R&D Specialty Manco story—and others—at alerusbiz.com.

480.905.2430

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| 17045 N Scottsdale Road | Scottsdale, AZ 85255

F e b r u a r y 2013

17

HR

People Are Key

McCarthy Building Companies training includes Building Information Modeling

The ROI of Corporate Training

Gains in employee productivity and leadership succession outweigh even turnover losses Before long, veteran construction worker Frank Scopetti will become a division president of McCarthy Building Companies, Inc., an accelerated in-house promotion made possible by the 150-year-old, employee-owned company’s state-of-the-art training programs, last year ranked in the Top 10 nationwide by Training Magazine.

In an era of economic uncertainty, increased globalization and near-record unemployment, an increasing number of area businesses are investing in sophisticated employee training programs, which can include grooming current staff for promotion, boosting morale, generating a positive and connected workplace culture, improving productivity, reducing layover and hiring costs, improving in-house leadership and communication, and enhancing customer loyalty.

While difficult to measure a dollars and cents return on investment (ROI) for corporate training, Corporate Voices for Working Families, the leading national business membership organization representing the private sector voice on public policy issues involving working families, suggests it be

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F e b r u a r y 2013

calculated by subtracting the cost of investment from the present value of benefits, multiplying by 100, then dividing by the cost of investment — with the caveat that a great many ROI factors cannot be monetized. Everyone interviewed for this story — not least of all McCarthy’s Scopetti, a seven-year veteran of the company currently serving as senior vice president of operations and business unit leader for water services in the Southwest — says the corporate training, whatever the cost, is, to paraphrase the Mastercard commercial, priceless.

“A better question than ‘what does training cost?’” says Nancy Stephens, associate professor of marketing at the W. P. Carey School of Business at Arizona State University, “is ‘what is the cost of not doing this training?’”

Three years ago, Stephens developed an eightcourse sequence aimed at improving customer experience, available exclusively online to clients worldwide, including Arizona-based Honeywell, the global, multinational, Fortune 100 company. The aerospace juggernaut has run some 1,400 employees through the ASU training program at a cost of “six-figures,” according to Pat Cramer, Honeywell’s

director of aerospace learning, to resounding success. “It’s difficult to calculate a return on investment with dollar figures,” says Cramer, “but, by our evaluations, this has been a very positive experience for everyone involved.”

Honeywell also offers their worldwide employee base some 4,000 training programs through Skillsoft, a leader in e-learning courseware for business skills, leadership skills training and IT certification. “What we’re seeing is clarity and practice of very specific company goals, and a uniformity of passion and commitment within our company,” says Cramer.

“Trainings like we offer provide our team with a common language, mindset and trajectory.

That’s only a positive thing for business.”

At Phoenix-based Avnet, Inc., a Fortune 500 company, one of the world’s largest distributors of electronic components, computer products and embedded technology worldwide, the focus is always on enhancing employees’ skills and “encouraging employee engagement,” says Linda Burridge, global director of learning and development. “Engaged employees are willing to give ‘something extra’ each day because they are committed to the company and understand inbusine ssmag.com

Photo courtesy of McCarthy Building Companies

by J. Rentilly

Photos courtesy of Avnet, Inc. (top); McCarthy Building Companies (bottom)

their role in the company’s success. In turn, engaged employees are more valuable to the company because they contribute more.”

Burridge says Avnet has provided employee training for decades, but has stepped up its offerings to provide “a broader base of systems, technical, functional and professional skills development” in part to answer an employee survey that placed career development their third priority, behind only compensation and benefits. That said, increased training inarguably yields improved job performance and a more positive work culture. “Avnet sees a direct correlation between employee engagement and enterprise performance,” says Burridge, who reports that employees who completed training programs at Avnet increased by 40 percent from 2011 to 2012, with an 8-percent increase in employees completing from two to four classes.

Avnet’s training has been critical to the success of the company’s expansion in Latin America. To prepare South American and U.S. employees for the transition, Avnet offered participants a course on teamwork, collaboration and networking, simultaneously in English, Spanish and Portuguese. The efforts made a “huge difference,” Burridge says, in the creation of a new Latin American force, enhancing teamwork, support, communication and efficiency.

McCarthy, which bills itself “the best builder in America,” launched a comprehensive training and development program in the late ’90s, but revamped it in 2008, rebranding it as McCarthy Build U, offering “in person, online

Mentoring at Avnet Electronics Marketing Programming Center in Chandler

and self-directed training opportunities.”

This includes more than 325 instructor-led classroom sessions; 135 instructor-led virtual classroom sessions; and 250 online, self-paced modules. Last year, 100 percent of McCarthy employees received at least 12 hours of formal training. The workplace culture, job efficacy and performance, and employee engagement are at all-time highs at McCarthy, while the dollars and cents of training, more rigorously tracked at McCarthy than at many companies, makes good business sense.

“It is less expensive to grow talent from within our company,” says Robin Renschen, McCarthy’s director of training and development.

“Depending on a number of factors, turnover

costs can be anywhere from one times to three times a person’s salary. The annual cost of training someone is far less than that.”

The company’s dedication to its employees through training, Renschen says, allows McCarthy to “retain the best professionals in the business and continually raise the bar on performance, while truly training our company’s future leaders.”

Frank Scopetti, who currently oversees all aspects of the division’s water/wastewater treatment plant projects in the West, was thrilled to be invited to participate in 2011 in the company’s Advanced Leadership training, an add-on to the company’s rigorous, six-month-long Foundations of Leadership program, designed to “identify a group of potential McCarthy leaders and provide them with the skills needed to step into their next role faster,” according to Renschen.

“Not only is the [Advanced Leadership] program exceptional in terms of the skills training, but knowing my career path will take me to the position of division president, and McCarthy making that kind of investment in me is a real honor,” says Scopetti. “I know this is the company I will be with for the remainder of my career.”

Which, whatever the checkbook cost, makes it a win-win situation for both company and employee.

Avnet avnet.com

Training at McCarthy Building Companies extends to the annual employee-shareholder meetings

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Honeywell honeywell.com McCarthy Building Companies, Inc. mccarthy.com W. P. Carey School of Business wpcarey.asu.edu

F e b r u a r y 2013

19

Trickle Up

A View from the Top

Sandra Watson: Guiding the ACA to Build Business Arizona Commerce Authority’s president continues 16-year focus on supporting business

by Gremlyn Bradley-Waddell

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F e b r u a r y 2013

on business development, business attraction and marketing. Later, working with Gov. Jan Brewer, the state’s elected leaders and former ACA president and CEO Don Cardon, she helped facilitate the Department of Commerce’s transition to the ACA, which she describes as “a labor of love.”

“I have been part of an incredibly talented, visionary leadership team that has helped create an organization that essentially puts Arizona ‘on the map,’ ” Watson says. “We are achieving sustainable business success in ways this state has never seen. That’s something every citizen can be proud of, and it’s certainly one of my most crowning achievements.”

Noting that one of the pillars of successful economic development is “growing our own” by supporting and encouraging a startup community, Watson says she’s proud of her Department of Commerce days when she worked with policy makers and business leaders to encourage the state to focus on startup innovation and technology. As a result of that collective effort, Watson says Arizona developed programs that accelerate business growth and creation like the Angel Investment tax credit, the AZ Fast Grant, the Arizona Innovation Accelerator Fund and the Arizona Innovation Challenge.

“I am proud to say that Arizona’s focus on innovation is now known across the country,” she says, adding, “The Kauffman Foundation ranks Arizona the No. 1 state for entrepreneurial activity.”

Next up, according to Watson, she and the ACA will spearhead a statewide, multimedia marketing and branding campaign, “Arizona Know-how.” Even though Arizona is an epicenter for next-generation research and development, cutting-edge technology and significant industry advancements, she says

Sandra Watson at the Helm ■■ With her ACA teams, Sandra Watson ■■

■■ ■■ ■■

has attracted to Arizona hundreds of companies that have invested billions of dollars in capital and created more than 65,000 quality jobs.

Watson has worked with business leaders to create the Arizona Technology Council and the Governor’s Celebration of Innovation, which recognizes the state’s most innovative companies and individuals.

Watson represented Arizona on the national State Science and Technology Institute Board of Trustees.

Watson was recognized by the Phoenix Business Journal in 2004 as an up-and-coming Arizona leader in its “Forty Under 40” category.

Watson has received the Arizona Technology Council Chairman’s Award twice, in 2004 and 2010.

many folks aren’t aware of the state’s assets.

And she plans to change that. “We are home to greatness, and we are going to tell that story of greatness to our citizens, to the rest of the country and to the rest of the world,” she says.

“This campaign will get people talking. It will move the needle for Arizona.”

Arizona Commerce Authority azcommerce.com

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Photo courtesy of Arizona Commerce Authority

Sandra Watson may have only recently been tapped as president and CEO of the Arizona Commerce Authority in October, but she hardly needs an introduction to those in the business industry. After all, she was the agency’s interim chief for several months last year and has served the organization — in its current incarnation and its earlier one as the Arizona Department of Commerce — in a wide range of capacities, including COO, for 16 years. Although her role has changed, however, Watson notes her mission remains that of the ACA’s: to grow and strengthen Arizona’s economy and facilitate the creation of quality jobs. “I truly look forward to leading efforts to encourage and support innovative entrepreneurs, assist Arizona-based businesses to expand, and aggressively market Arizona in the global marketplace as the best possible place to do business,” she says.

In fact, Watson says if other business leaders can learn anything from her, it’s “the importance of focus.” She’s exhibited that by seeing to it that everything done within the organization “must point directly to the achievement of that mission and our clearly defined goals.”

And, though she considers herself a hands-on, pro-active, collaborative leader, she says she has faith and confidence in her colleagues “to execute in a big way.”

While the Grand Canyon State is now home, Watson began her career in economic development in Canada, where she worked at the Ministry of Industry, Trade and Technology and developed a passion for promoting business growth. When her husband was transferred from North Bay, Ontario, to Chandler in 1992, she continued in economic development, adding Chandler to her client list. By spring of 1996, she was with the Arizona Department of Commerce, now the ACA, and took on positions concentrating

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F e b r u a r y 2013

21

Women

at the Top Are They Making a Difference in Business?

by Sue Kern-Fleischer

Running a company is a function of leadership, not simply gender or ethnicity. Below the surface stories of glass ceilings and sacrifices made on the altar of advancement are issues of the global economy’s changing needs of leadership, different views of how to wield it and the impact of women in that realm of today’s world of commerce.

See advice on negotiation and risk from leading Valley businesswomen throughout this article.

“Negotiation is equal parts science and art. Science can be taught and art comes with practice.

If you’re afraid of it and don’t practice, you won’t be skilled at negotiating.”

—Anne Mariucci Private Equity Investor and Former President Del Webb Corporation

Yahoo’s recent appointment of Marissa Mayer to CEO when she was pregnant with her first child had many women cheering and others wondering just how effective she will be juggling a high-pressure job and a new baby. One thing is for sure: It opened up more dialogues about women breaking the barriers and advancing to the C-suite. Missing from the discussion, however, was any analysis of leadership character.

So, what type of personality traits and leadership skills does a woman need to climb to the top of the corporate ladder or run her own company as a successful entrepreneur? And do women inherently possess leadership styles that, in the business world of today, give them an edge over men?

“The nature of today’s work is much more conducive to women’s style of leadership. People are looking for empathetic leaders. There’s a need for more employee engagement, empowerment and consensus building,” says Amy Hillman, ASU’s executive dean of the W. P. Carey School of Business, which, with 10,000 students and 230 faculty, was recently ranked by U.S. News & World Report in the Top 30 schools in the nation for undergraduate business, full-time MBA and parttime MBA programs. A renowned management professor and former editor of the Academy of Management Review, Hillman takes the helm as dean of the W. P. Carey School of Business on March 1, succeeding retiring dean, Robert Mittelstaedt. “We’ve broadened our perspective about what a leader should behave like,” Hillman says.

Changes in the work environment and a focus on the “knowledge economy,” which produces ideas and innovation, have contributed to this shift in attitudes toward women advancing to the top. “It used to be that women who advanced were more masculine and authoritarian in their leadership styles. They had to act like a man to get the job,” Hillman says.

Do Women Lead Differently from Men?

“Be observant.

Watch what the big boys do and do it better. Never think you will fail; you won’t. Nothing is irreversible except death.”

—Francine Hardaway Co-founder Stealthmode Partners

24

F e b r u a r y 2013

Francine Hardaway believes the way women lead and manage is a contributing factor to why we are seeing more women advance to the C-suite level. “We have stopped considering employees as chattel and begun realizing talent is scarce and has to be nurtured. Women are much better at team building and nurturing. Ironically, that doesn’t come from sports; it comes from mothering and leading a family. Women make most of the decisions in the family, and they learn to get to consensus among all the kids including the spouse,” she says. As co-founder of Stealthmode Partners, a 13-yearold accelerator for entrepreneurs and intrapreneurs, Hardaway has consulted with more than 700 companies, helping them both as a marketer and a mentor. She blogs about technology, entrepreneurship and healthcare policy issues on her company’s website and is also a contributing writer for Huffington Post and Fast Company. “I spent almost 20 years being the only woman in the room full of community leaders, and having them roll their eyes when I spoke. I only changed the perception with incredible performance and total authenticity,” she says. “I was never afraid to say what I thought.

Ask Jerry Colangelo, who was the big community hot shot during most of my business career. I was on a board with him and he constantly had to deal with my raised hand and interruptions as I tried to set the great man straight.”

She also believes there is a big difference between men’s and women’s management styles, stating that “women are surreptitious in their power, whereas men totally telegraph theirs — and telegraph it even when they don’t have any.” Hardaway encourages women to rely on their intuition. “Women have more modest goals, which means they fail less often and swing for the fences less often. They are more willing to collaborate, and that’s where they have the edge,” she says. “Men are now beginning to realize they have to deal with women, so they are beginning to emulate our management styles. In a few more generations, after more of them have been house husbands, they will be better managers and leaders.” inbusine ssmag.com

Sarah Strunk is a director at Fennemore Craig and one of four on the firm’s management committee, which runs the 127-year-old law firm. When she was a child, her grandfather told her, “Girls aren’t lawyers,” so she is particularly proud that 26 percent of her firm’s equity partners are women. The firm was recognized last September in New York with the 2012 Women in Law Empowerment Forum Gold Standard Certification award. Strunk says because she is wired in her job to find commonalities, she’s not convinced that women are advancing to the top because of their different leadership styles, but rather because it has taken this much time for more women to enter the work force as highly educated job candidates. “There’s a larger pool of talent to draw from,” she says.

Collaboration and nurturing are two critical traits for anyone who wants to be successful, male or female. “You have to bring on people who want to help you and if you don’t nurture them, they won’t stay,” Strunk says, pointing out that good leaders understand when it is time to step aside and let others take the lead. “A lot of lawyers like the limelight and have a hard time stepping away from it. But you can’t focus on being the center of attention at the expense of building your business. You have to be willing to turn over the responsibility for business to the younger lawyers in order to ensure longevity,” she says.

Mary Juetten is founder and CEO of Traklight.com, a cutting-edge website and software program that provides inventors, creators and small businesses with the tools to identify, secure and manage their intellectual property. A resident incubator client of the Center for Entrepreneurial Innovation at GateWay Community College, Traklight.com is gaining attention for its pioneering technology, including the IP Vault, which allows customers to store and time-stamp ideas and inventions, such as songs, scripts, videos and photos. A native of Nova Scotia, Juetten was the youngest vice president in the British Columbia college system and she helped save the largest college from receivership. She also worked for a law firm in Vancouver as a director of finance before moving to Phoenix in 2005 and attending law school at Arizona State University.

Juetten recalls working as a financial auditor in the 1980s, when there were no female partners in her firm or others like hers. “They were trying desperately to create ways for women to advance but it boiled down to hours in the office. Most of >>

“If you don’t take a risk, you may as well close your doors and go home. As for negotiating, be a bit fearless. You rarely get anything that you don’t ask for.”

—Sarah Strunk Director Fennemore Craig

“You need drive to get to the C-suite and a little hint of narcissism. You have to have the drive to continue even in the face of failure.”

—Amy Hillman Executive Dean ASU’s W. P. Carey School of Business

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“Risks that are more apt to turn out well are those where one takes on an area of responsibility that is not in one’s comfort zone but that is highly visible and gets attention. As for negotiation tips: Be prepared and know your numbers. Know what the market commands for your skill set and know your ‘walk away’ point.”

—Suzanne Peterson Assistant Professor ASU’s W. P. Carey School of Business

us did not wish to have an affirmative action plan to advance; everyone wanted to be promoted on merit,” she says. As for management styles, she doesn’t believe gender plays a role. “I have worked with female and male leaders, and, reflecting back, their styles of management seem to have been independent of gender. Sometimes I think it is a large mistake to assume that women collaborate more or men are more direct; I think it is a personality or leadership style,” she says.

Slow Trend

Looking back to 2000, there were only three female CEOs running Fortune 500 companies. By 2009, there were 15 female CEOs running Fortune 500 companies, including Ursula Burns, CEO of Xerox, the first African-American female CEO in the United States. In November 2012, there were 40 female CEOs in the Fortune 1000. That translates to only 3.8 percent of Fortune 500 CEO positions filled by women and 4.0 percent of Fortune 1000 CEO positions filled by women.

“A lot of press goes to the Marissa Mayers of the world, but they are exceptions rather than the rule. While these numbers represent an improvement from years past, it is a very slow trend and is still a pretty small percentage,” says Suzanne Peterson, assistant professor in the management department at Arizona State University’s W. P. Carey School of Business. Peterson is a contributing author to the Handbook of Top Management Teams Research by Edward Elgar and she has published articles in Personnel Psychology, Journal of Applied Psychology, The Leadership Quarterly and other academic publications. Her current CEO leadership research broadly focuses on the impact of CEOs and other top managers’ leadership styles, traits and experiences on the performance of those individuals and teams that report to them. “Women now represent about half of the total work force so, in some cases, it may just be sheer numbers that are getting women in the seats,” she says, stating that diversity in gender becomes a recruiting tool for other great women. “It is typically a trend that a company with a female CEO or female board members will have more female emerging leaders.”

Changes in the board room are moving at a slower pace. According to a USA Today report citing women’s issues research group Catalyst, women held 15.2

“Be very clear in your communication. Don’t muddy the waters with too many words.”

—Lynne King Smith CEO TicketForce

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percent of Fortune 500 board seats in 2009, and in both 2009 and 2010, 12 percent of Fortune 500 companies had no women as directors on their boards. Studies show that firms with more female management leadership tend to be more profitable. A 2007 Catalyst report revealed that there was a 16.7 percent return on equity for companies that have at least three female board members; the average for all companies analyzed was 11.5 percent.

Trailblazers

Count Anne Mariucci among the many people expecting to see more women in the boardroom and an accelerated pace of women advancing to the C-suite. A private equity investor, Mariucci serves on the boards of multiple companies and organizations, including the Arizona Board of Regents, and she is best known for her 23-year tenure with Del Webb Corporation, where she advanced to president and CEO of the large-scale community developer and homebuilder. “The pipeline is stacked with women who are well-educated, committed and have wonderful communication and relational skills. There’s no reason why boardrooms today should remain dominated by white males. Fortunately, there is a tremendous focus now among boards, large shareholders and board search firms that diversity is not only aspired to but is expected,” Mariucci says.

Mariucci grew up in Omaha, moving around as child and learning how to adapt to change.

She excelled in competitive sports and moved to Tucson upon securing a golf scholarship to the University of Arizona. Her first full-time job, at age 19, was in public accounting in a firm that is now KPMG. After three years, she joined American Continental, which, at the time, was Arizona’s largest home-building company. She accepted a ground-level position with Del Webb in 1984 and spent the next two decades “growing up professionally” and achieving all of her corporation ambitions and titles before she turned 50. As for her leadership style, she had to conform to what the business culture demanded at that time. “Toughness and aggressiveness was expected and rewarded,” Mariucci recalls. Women were also expected to work harder and there was less tolerance for mistakes. There was a fear that women might be soft, so she and others like her had to go to the other extreme in order to fit in. “In some cases, we had no choice but to become that person. It was an era in which the corporate culture defined us as people,” she says. It was also an era in which she became a trailblazer. “When I started in my career, there were very few role models and few women in senior management. There were no female board members. By the time I reached 30, there were no women working in anything I did. It was easy to be noticed as the only female executive, but it was lonely,” she says.

Watching today’s female leaders invigorates Mariucci, and she is particularly proud of watching women she has mentored advance to the C-suite. “Women are more free today to be true to themselves. Some may be naturally more aggressive, but you see plenty of examples of women who don’t lead with aggressiveness — they are tough, performing and demanding, like [Facebook COO] Sheryl Sandberg, but she gets the job done and is a nice person at the same time,” she says.

More Women Going into Business for Themselves

Arizona is one of the fastest-growing and most thriving states for women-owned businesses, according to the State of Women-owned Business Report, which was commissioned by American Express OPEN. In 2012, an estimated 8.3 million women-owned businesses were operating in the United States, generating nearly $1.3 trillion in revenue and employing nearly 7.7 million people.

Arizona ranked within the top five states in which the number, revenues and employment of womenowned firms have increased well above the national average between 1997 and 2012.

Georganne Bryant exemplifies what the statistics tell us. She opened Frances, a vintage boutique, in central Phoenix in 2006 and Smeeks, a candy store, in 2009. Since launching her modern vintage boutique, which carries a whimsical mix of apparel, paper goods and other items, sales have increased steadily by 10 percent. She moved Smeeks to the Biltmore Fashion Park two months ago and business has been going well. >>

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“Don’t downplay past accomplishments.

I have banned the use of the word ‘little’ after I once stated that I had a ‘little startup’ and wished I could take the words back. And never do business on a handshake with a partner.”

—Mary Juetten Founder & CEO Traklight.com

“It is imperative to take risks in order for your business to move forward. And have passion for what you do — it shows and people will take notice.”

—Georganne Bryant Owner Frances and Smeeks

Bryant says she has never encountered any big differences when working with men versus women. She secured her loan for the Smeeks move with no challenges and she credits male and female mentors for helping her along the way. “I love to collaborate with other businesses and do so regularly,” she says. “I really feel small businesses have to band together to succeed in the community.”

Great Leaders Spend Time with People, Not Tasks

W. P. Carey’s Peterson is quick to point out that men and women are naturally different in some ways, but the issue is less about the fact that the differences exist than it is about how those differences are perceived. “If men get heated in a meeting, they are labeled passionate while women are labeled emotional. If men say what they think, they are direct while women who do the same are considered aggressive. Men who don’t have time to focus on relationships are task-masters or results-drivers while women are unapproachable. So, are men and women really doing things differently or is it more that doing the same things looks different on men versus women? That is a big empirical question,” Peterson says.

Peterson’s research also reveals that men do more informal networking than women and women tend to stay in their offices to get work done. “This frequency of communication plugs men into their networks and keeps them ‘in the know’ when jobs come up or key opportunities present themselves. Women may also be more likely to hide behind email believing it’s efficient. The question is whether it is effective,” she says, stating the irony is that women may be somewhat more natural relationship-builders but often don’t make the time to showcase that strength. “The pressure to get results often hinders great leadership. Great leaders spend time with people, not with tasks,” she says.

Lynne King Smith and her husband Brad Smith are a great example of Peterson’s theory that great leaders spend time with people, not tasks — only in this case, Lynne is the people person and Brad is better with tasks. The married couple founded TicketForce 10 years ago and have expanded their ticketing service to 49 states and Canada. With 15 employees, TicketForce works with more than 100 contracted clients and some 400 clients of one-time events, providing them with ticketing software and marketing assistance to promote their events.

When they first launched the business, Brad served in the CEO role until he pushed for Lynne to take over as CEO in 2010 and he resumed work as chief business development officer. “Brad is more entrepreneurial than I am and we have different styles of leadership,” Lynne King Smith says. “It is tough to make generalizations between men and women, [but] I think women are generally more about being … who you are as opposed to what you do. For Brad, it’s about doing.

A good day for me is having a great conversation with an employee or a client. For him, it has to do with how many tasks he checked off his list.” As for more women advancing to the C-suite, Smith believes it has more to do with a generational shift.

“The barriers continue to come down, more women are graduating from college and there’s more talent out there. My kids’ generation doesn’t look at gender at all. In 20 years, we’ll see a vast change,” she says.

Fennemore Craig fclaw.com Frances francesvintage.com Smeeks smeeks.com Stealthmode Partners stealthmode.com TicketForce ticketforce.com Traklight traklight.com W. P. Carey School of Businesswpcarey.asu.edu

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For more information, visit uhctogether.com/AZNavigate UnitedHealthcare Navigate available only in Maricopa County. ©2012 United HealthCare Services, Inc. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or its affiliates. Health Plan coverage provided by or through UnitedHealthcare of Arizona, Inc. UHCAZ604599-000

Our Subject In-Depth

Focus

Take Service to the Stratosphere Twelve keys to creating uplifting service in today’s marketplace

by Ron Kaufman

Service is everywhere. But there is a vast disconnect between the volume of service we need and the quality of service we are giving and receiving. Businesses have turned a very simple human concept into a catastrophic cliché. They remain blind to the fact that true service comes not from demands and dashboards, but from a basic human desire to take care of other people.

With service at airports commonly experienced as unpleasant, the case of Changi Airport in Singapore can be instructive. The airport is immaculate, with walkways as wide as roadways and not a speck of litter anywhere. As travelers move deeper into the terminal, they see a butterfly garden, an outdoor swimming pool, playground equipment, a four-story slide, napping rooms, spa treatments and entertainment venues that include movie theaters and video-gaming stations. But aside from the physical attractions, Changi Airport’s employees eagerly offer a greeting and a smile and ask how they can help.

This oasis of pleasure is the perfect illustration of what service can (and should) look like in our global economy. With the following building blocks, businesses can create a sustainable culture that delivers outstanding service every day.

1.

Common Service Language. The whole domain of service suffers from weak clichés, poor distinctions, and inaccurate common sense. “Oh, you want service?” an employee asks. “Well, you’ll have to talk to our service department.” This is as true internally as it is with customers. “It’s not my job to make you happy,” says a manager. “Talk

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to human resources if you’ve got something to say.” An executive might even say, “It’s not personal. It’s just business.”

Using and promoting a Common Service Language is the first building block because human beings create the world in which we live by using language. We create meaning with language, and we can change our world by inventing or adopting new language. A business’s Common Service Language should be meaningful and attractive — a shared vocabulary to focus the attention and the actions of its team.

It should clarify meaning, promote purpose, and align everyone’s intentions and objectives.

2.

Engaging Service Vision. “Many Partners, Many Missions, One Changi.” That’s the Engaging Service Vision that unites everyone who works at Changi Airport. A coffee shop worker can tell travelers the departure gate locations and the fastest ways to get there.

Airline employees know where to buy last-minute souvenirs. Airport police can say how to find the post office and what time it opens. At this remarkable gateway, everyone works together to create positive experiences every day.

That’s what Engaging Service Visions do — they unify and energize everyone in an organization. They pose a possibility each person can understand and aim to achieve in his or her work, role, team and organization. Call it a service vision, mission, core value, guiding principle, credo, motto, slogan, saying or tagline, but what matters is that a business’s Engaging Service Vision is engaging.

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Focus

Our Subject In-Depth

3.

Service Recruitment. Are you “Googley”? Are you able to “Create Fun and a Little Weirdness” at work? These important considerations are made during the hiring process at Google and Zappos, respectively. These companies know it is much easier to build a strong culture by hiring new people with the right attitude than to hire people for their skills alone and then try to align them around a common service vision.

Every new hire sends a message to everyone else. Either a business is committed to a service culture and hires good people to prove it, or its commitment is shallow lip service only, and the next hire also proves it.

4.

Service Orientation. Unfortunately, many company orientation programs are far from uplifting. Often they are little more than robotic introductions: “This is your desk; this is your password; those are your colleagues; these are the tools, systems, and processes we use; I am your boss; and if you have any questions, ask. Welcome to the organization. Now get to work.” These basic introductions and inductions are important, but they don’t connect new employees to the company or the culture in a welcoming and motivating way.

Service Orientation goes far beyond induction. Zappos really gets this. Its four-week cross-department orientation process is an example of new-hire orientation at its finest — deeply embedding and delivering on the company’s brand and core value, “Deliver WOW Through Service.” Zappos understands that new team members should feel informed, inspired and encouraged to contribute to the culture. It even offers an out for new hires who realize the culture isn’t for them, paying them for the hours they’ve put in so far plus a cash bonus to leave with a smile. The point is not paying people to go, but making sure the right people choose to stay.

5.

Service Communications. A company’s Service Communications can be as big and bold as a sign in the front of a store proclaiming that the customer is always right or as simple as including employees’ hobbies or passions on their nametags. Service Communications are used to educate and inform; to connect people; and to encourage collaboration, motivate, congratulate and inspire.

They’re essential because they can be used to promote a company’s service language, expand its service vision, showcase new hires, announce the latest contest, explain measures and service metrics, and give voice to customers’ compliments and complaints. Service Communications keep a company’s people up-to-date with what’s happening, what’s changing, what’s coming next and, most of all, what’s needed now.

6.

Service Recognition and Rewards. Service Recognition and Rewards are vital building blocks of service culture. They are a way of saying “thank you,” “job well done” and “please do it again” all at the same time. Recognition is a human performance accelerator and one of the fastest ways to encourage repeat service behavior.

Recognition and rewards are great ways to show gratitude from customers, admiration from colleagues and strong approval from leaders of the organization. They can drive service commitment and behavior to even higher levels and are more memorable and emotional than simply receiving money.

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7.

Voice of the Customer. Key drivers of satisfaction at Microsoft include product quality, value for money, security, accuracy and speed of solutions. But that’s not everything the company’s customers and partners value. Microsoft carefully studies the millions of words and phrases people type into free-form comment fields every year. Through careful analysis of these “verbatim” comments, the company discovered other drivers that also make a difference, including “Microsoft is easy to do business with,” “Microsoft cares about me” and “Microsoft helps me grow my business.”

Whether the voices come through formal means such as survey forms or focus groups, or through social channels like Facebook, the value gained from the Voice of the Customer is achieved only when this river of input connects with a team that wants to hear it, understand it and do something about it.

8.

Service Measures and Metrics. Surveys are notoriously unpleasant for customers to complete and difficult for people in organizations to decipher. These evaluations are a great example of how Service Measures and Metrics can become disconnected from the practical levers of power. Collecting data and crunching numbers can easily become a separate function or department, fueled by the urge to gather ever more data. Service Measures and Metrics are most effective when they help to prioritize what’s most important, from customer satisfaction to customer loyalty to employee engagement. Measure what matters to focus attention, design new action and create positive service results.

9.

Service Improvement Process. This is where customer complaints are wanted and welcome, where survey reports are carefully examined for new ideas and insights. A Service Improvement Process creates synergy by connecting people between levels and functions. Some issues require ownership on the front line, involvement from the middle and sponsorship from above. Other service issues are quickly solved by teams working across silos.

A well-designed Service Improvement Process promotes communication across functions, divisions, and departments; stimulates collaboration across levels, languages and locations; and can even tap the creative energy of customers, vendors, distributors and government or industry regulators.

10.

Service Recovery and Guarantees. Would you log a customer complaint into a system if it might get you into trouble? Probably not. This was exactly the problem one of the Xerox companies found it was having with its Customer Care Management System. So the company changed courses and created Bounce! Instead of blame and shame, Bounce! presents shortcomings as an opportunity to elevate service.

When a problem occurs, employees are encouraged to make it bounce by raising the level of the company’s service much higher than it had been to start. Now, rather than ignore customer complaints or try to cover them up, employees see them as opportunities to be recognized and excel. While the number of complaints logged into the Bounce! system has increased substantially, the company’s “satisfaction with service recovery” scores have also risen dramatically.

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Books Confidence is the key. When customers are confident about the service a company delivers, they will return, refer and recommend.

When team members are confident about the company’s commitment and culture, they will work enthusiastically to deliver uplifting service.

11.

Service Benchmarking. Best practices are waiting to be discovered everywhere. Where is it enjoyable to test or try a sample? Häagen-Dazs wants customers to sample every flavor.

Which organizations are great at teaching new customers how to get the most from their products and their service? In Portland, Ore., Apple buses senior citizens from the local community center to its stores and teaches them to use a computer, some for the very first time. Which company is best at bouncing back if the customer is not completely happy? L.L. Bean makes it guaranteed.

Service Benchmarking reveals others’ best practices and points to new ways a business can upgrade its own. Remember, the objective is a self-sustaining culture distinguished by uplifting service, not just valuable data points for tactical service improvements, with a focused team of service providers who seek to understand: How do other leaders create uplifting service experiences for their customers and colleagues? What can we learn, then adapt, adopt and apply to improve the service we deliver to our customers and to each other?

12.

Service Role Models. Four times a year, the general manager of a well-known, exclusive hotel becomes a bellman. The refined gentleman greets guests at the roadside, places their bags on a luggage trolley and escorts them to their rooms. He uses these opportunities to get feedback from guests about what they do and don’t like about the hotel and any other suggestion they’re willing to share. On these days, he eats in the basement cafeteria with the rest of the staff and talks with them about their jobs, answering any questions they might have. He cherishes these four days, as do the members of his team.

Being a service role model is not just for senior managers and members of the leadership team. Leaders, managers and frontline staff must “walk the talk” with powerful personal actions every day. Everyone is a service role model. It is what happens every time people see or hear what an employee does, writes or says in an internal or external service situation.

When all the blocks are in place, any business can create an uplifting service culture where everyone is fully engaged, encouraging each other, improving the customer experience, making the company more successful and contributing to the community at large.

UP! Your Service upyourservice.com

Ron Kaufman is the author of The New York Times bestseller Uplifting Service: The Proven Path to Delighting Your Customers, Colleagues, and Everyone Else You Meet (www.UpliftingService.com; dynamic case studies and perspective-changing insights of how the world’s best-performing companies have changed the game in their industries through service).He is the founder of UP! Your Service, a global service education and management consultancy firm with offices in the United States and Singapore, and brings powerful insights from working with clients all over the world in every major industry for more than 20 years.

Customer Service

Can’t Buy Me Like: How Authentic Customer Connections Drive Superior Results Today’s brands face an apparent choice between two evils: continue betting on their increasingly ineffective advertising or put blind faith in the supposedly mystical power of social media, where “likes” stand in for transactions and a mass audience is maddeningly elusive. But in today’s world, where people have become desensitized — even disillusioned — by ad campaigns and marketing slogans, that maxim needs an update: Money can’t even buy you “likes.” We’ve entered the “Relationship Era,” when the only path for businesses seeking long-term success is to create authentic customer relationships. Not through hip social media promotions, viral videos or blizzards of micro-targeted online ads.

Those tactics, which simply disguise old ways of thinking with new technology, just don’t work in the long run.

Bob Garfield and Doug Levy $25.95 • Portfolio Hardcover • March 2013

The Customer Rules: The 39 Essential Rules for Delivering Sensational Service The former EVP of Walt Disney World shares indispensible rules for serving customers with consistency, efficiency, creativity, sincerity and excellence. Lee Cockerell knows that success in business — any business — depends upon winning and keeping customers. In 39 digestible, bite-sized chapters, Cockerell shares everything he has learned in his more than 40-year career in the hospitality industry about creating an environment that keeps customers coming back for more. Here, Cockerell shows not only why the customer always rules but also the rules for serving customers so well they’ll never want to do business with anyone else.

Lee Cockerell $19.99 • Crown Publishing Group • March 2013

Clients First: The Two Word Miracle Throw out the sales manual. Get off the motivation elevator. Clients First is a life-changing two-word miracle. This book outlines a powerful path to riches that authors Joseph and JoAnn Callaway used to sell a billion dollars in real estate in just 10 years — a feat never before achieved.

Here, they explain the three keys to their approach, each of which is important and can stand on its own. However, the full success of the Clients First program can be reached only when all three keys are used in coordination. This book explains how honesty ensures a strong client relationship, details the ways in which competency pervades all aspects of a client’s perception, and shows how being a caring individual can win over a client on a personal level.

Joseph Callaway and JoAnn Callaway $21.95 • John Wiley & Sons, Inc. • On shelves & online

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NonProfit

by RaeAnne Marsh

Actions to build Community

A New Leaf: A New Beginning for At-risk Youth and Families

Live-auction bidding on the opportunity to donate equipment needed by a designated New Leaf program has become a hallmark — and highlight — of the organization’s Camaraderie Gala fundraiser, this year being held March 2 at the Arizona Grand Hotel. “It’s the most exciting part [of the gala]. We auction off items people can’t take home, like buying beds for the program and the clients we’re helping,” says Torrie Taj, chief operating officer, noting it’s also a great way to recognize people for their support.

Not all items are for altruistic reward. This year’s auction slate will tempt bidders with a variety that also includes a trip to Paris — appropriately capping this year’s gala’s “Springtime in Paris” experience.

The evening starts with a social hour and silent auction, followed by dinner during which guests will see a three-minute video that, says president and CEO Michael Hughes, “brings home the reason they’re there.” The live auction is next, then the evening continues with casino games and dancing, hosted by a DJ who mixes it up with a musical variety from oldies to contemporary. Not only are photos posted in real time on Facebook but guests receive a professional portrait to take home.

A New Leaf turnanewleaf.org

Snapshot

■■ A New Leaf began in 1971 as ■■

■■ ■■ ■■ ■■ ■■

PREHAB of Mesa, focusing on the PREvention and reHABilitation of troubled youth.

Now reaching families and youth countywide, the organization’s programs range from affordable supportive housing and shelters for domestic violence victims and the homeless to youth services, foster care services and outpatient counseling.

Most of its 350 staff, which include social workers and staff for its 22 sites, are behavioral health professionals.

Volunteers donated nearly 20,000 hours in 2012.

A New Leaf serves about 19,000 people per year, most of them children.

The Camaraderie Gala supports those programs that do not get enough funding, this year focusing on the shelter services and affordable housing.

The 29-year-old event is expected to net between $150,000 and $200,000.

Snapshot

■■ Therapy animals go through a national ■■

■■

■■

certification program. This is different from service animal training.

Currently in the program are 52 therapy dogs — which range from a four-pound teacup yorkie to a 250-pound English mastiff — one therapy cat and 120 volunteers. The animals are personally owned, and they and their owners go through a registration process to become a therapy team as well as an orientation process to become a volunteer at Phoenix Children’s Hospital.

Rehabilitation therapies include speech, walking and mood enhancement (which changes hormone levels to enhance healing).

Explains Wittstock, patients who don’t respond to a nurse’s efforts to get the child to speak or to move a limb because it is painful may do it without thinking if it’s part of interacting with a dog, under encouragement such as, “I bet he’d shake your hand if you ask him.”

One full-time staff manages the otherwise all-volunteer program, which has been in place since 2004.

To support the animal-assisted therapy program for its pediatric patients (newly rebranded as PetSmart Paws Can Heal), Phoenix Children’s Hospital presents its sixth annual Dine with Your Dog fundraiser on Saturday afternoon, 4 – 7 p.m., on April 13 at the PERA Club in Tempe. The event showcases how integral animals are in the healing process, explains Denise Wittstock, manager of volunteer services and animal-assisted therapy.

Both current supporters and animal lovers who may not have previously been aware of it “become more familiar with the successes of the program,” she says. “Through interaction with the animals and volunteers and speakers, they’ll share the progresses and the depth of the physical and emotional benefits.”

Attire is casual, but guests are encouraged to dress up their dogs. In addition to a gourmet dinner — for the animals as well as their humans — there will be a fashion show of canine couture as well as activities and demonstrations that will allow attendees to interact with the therapy animals and “expose people to the additional ways animals are making a difference in healthcare,” says Wittstock.

Phoenix Children’s Hospital phoenixchildrens.com

In business to do good for the community, nonprofits enrich the lives of those who contribute as well as those who receive. In Business Magazine showcases two nonprofits in each issue, focusing on their business organization and spotlighting an upcoming fundraising event.

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Photos courtesy of A New Leaf (top), Phoenix Children’s Hospital (bottom)

Paws Can Heal: Positive Outcomes for PCH’s Young Patients

www.inbusinessmag.com

February 2013

O n t h e Ag e n D a

Photo courtesy of Center for Entrepreneurial Innovation

A listing of Greater Phoenix business organizations and their events. Visit www.inbusinessmag.com for an expanded monthly calendar of educational, networking and special business events.

Center for Entrepreneurial Innovation

American Society for Quality

Lunch and Learn

2013 Lean and Six Sigma Conference

Thurs., Feb. 7 & 21 (and ongoing) — 11:30a – 1:00p

Mon. & Tues., March 4 & 5 — all day

The Business incubator Center for Entrepreneurial Innovation regularly offers Lunch and Learn seminars on aspects of starting and operating a business. Tapping into its extensive network of mentors with the Maricopa Small Business Development Center, also onsite at GateWay Community College, as well as local business professionals all across the Valley, CEI gives attendees access to a wide array of expertise from different fields.

“Our speakers go through a vetting process to make sure their expertise is high quality in order to provide substantive presentations to our audience,” says CEI spokesperson Gregory Bullock. Lunch is included in the free Lunch and Learn seminars, the center using the onsite catering service as part of GateWay. “We have a small budget for these seminars … It’s a little bit of an add-on to get someone through the door, out of their office or house,” explains Bullock.

This month’s Lunch and Learns will be held on Thursday, Feb. 7 and Feb. 21. Feb. 7’s topic is “Lifecycle Marketing: A Handson Workshop to Develop Your Customer Base,” presented by Eric Keosky-Smith, Arizona regional development director at Infusionsoft. On Feb. 21, attorney Ruth Carter, founder of Carter Law Firm, will present “The Legal Implications of Social Media.”

Opened in January 2012, CEI will celebrate the completion of Phase II of its construction with a formal Grand Opening on March 7. In addition to presenting its own Lunch and Learn seminars at the facility, CEI schedules presentations by other organizations to offer workshops and other entrepreneurialfocused events. The facility’s technology enables live streaming of the events, but Bullock notes “the presenters like being in the room because they often provide handouts and they can interact with the attendees.” The center is located at 275 North GateWay Drive, Phoenix, on the campus of GateWay Community College.

—RaeAnne Marsh Center for Entrepreneurial Innovation ceigateway.com

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Focusing on “Sustaining Results,” the American Society for Quality will hold its 13th annual Lean and Six Sigma Conference in Phoenix this year, at the Pointe Hilton Tapatio Cliffs Resort. ASQ is a global community of people dedicated to quality who share the ideas and tools that make our world work better, and conference attendees will learn how their organizations can achieve results and extend achievements. More than 50 sessions will provide new and unique applications of Lean and Six Sigma, examine the future of these methodologies and show how they can be applied to various industries. Among the sessions, led by experts in their fields, will be “Risk Management as a Lean/Six Sigma Enabler,” “The Lean Compass: Direction for Cultural Change,” “Building a Sustainable Competitive Advantage: Learning with Lean,” “Power Tools for Six Sigma” and “Putting Six Sigma to Work for Affordability.”

Keynote speakers will be Jeffrey K. Liker, Ph.D., professor of industrial and operations engineering at the University of Michigan, author and president of Liker Lean Advisors; and Stacy Aaron, a partner at Change Guides LLC with more than 24 years’ experience in change management. Liker is the author of best-selling book The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer, and his articles and books have won 11 Shingo Prizes for operational excellence. Aaron has spent the past seven years providing change management consulting and training to organizations in all industries and is cited as an expert in the field of organizational change. He has co-authored The Eight Constants of Change and The Change Management Pocket Guide, has authored numerous articles. Prior to co-founding Change Guides LLC in 2005, Aaron helped Deloitte Consulting shape its change-leadership practice.

Cost to attend the conference is $1,295 for ASQ members and $1,495 for non-members.

—RaeAnne Marsh American Society for Quality asq.org

Notable Dates This Month Sat., Feb. 2 Groundhog Day Tues., Feb. 12 Lincoln’s Birthday Thurs., Feb. 14 Arizona Statehood Day Valentine’s Day Mon., Feb. 18 Presidents’ Day Agenda events are submitted by the organizations and are subject to change. Please check with the organization to ensure accuracy. See more events online at www.inbusinessmag.com.

F e b r u a r y 2013

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O n t h e Ag e n d a AHWATUKEE FOOTHILLS CHAMBER OF COMMERCE Marketing Workshop Series: “Using Social Media to Grow Your Business” Tues., Feb. 5, 19 8:00a – 10:00a

Sessions 2 and 3 of three-session series Members: $10 per session; nonmembers: $20 per session First American Title — Conference Room 100 4435 E. Chandler Blvd., Phoenix (480) 753-7676.

Chamber Day of Champions Awards Breakfast Fri., Feb. 8 8:00a – 10:00a

Featuring speakers Senator John McComish, City Councilman Sal DiCiccio and Chamber President Anne Gill. Includes breakfast.

Members: $40; guests: $50 Arizona Grand Resort 8000 S. Arizona Grand Pkwy., Phoenix ahwatukeechamber.com

ARIZONA HISPANIC CHAMBER OF COMMERCE Young Professionals Network Thurs., Feb. 28 5:30p – 7:00p

“Introduction to Global Influence & Leadership, PART I,” presented by Joy Lubeck from Executive Core. Learn the basics of innovative and creative leadership.

Free Arizona Hispanic Chamber of Commerce 255 E. Osborn Rd., Phoenix (602) 279-1800

ARIZONA SMALL BUSINESS ASSOCIATION Creating Your Effective Networking Commercial Tues., Feb. 12 2:00p – 3:00p

Craft a unique and attention-grabbing commercial for networking events and when meeting prospective customers for the first time at this hands-on workshop.

Members: free; non-members: $10 ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com/events

We Heart Our Members Mixer Thurs., Feb. 28 5:00p – 7:00p

A portion of the net proceeds from the evening will be donated to the Arizona Heart Association. $20 Scottsdale Center for the Performing Arts 7374 E. 2nd St., Scottsdale asba.com/events

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February 2013

ARIZONA TECHNOLOGY COUNCIL

MESA CHAMBER OF COMMERCE

Lunch and Learn: An Entrepreneur’s Guide to Creating Apps

Business Roundtable with the Mayor

Tues., Feb. 5 11:30a – 1:00p

Discussion is geared toward entrepreneurs and startups looking to build Web apps or mobile apps. Presented

by SerpicoDEV. Lunch is provided.

Members, free; non-members: $15.

Eller College of Management 16425 N. Pima Rd., Scottsdale aztechcouncil.org

CENTRAL PHOENIX WOMEN Luncheon

Mon., Feb. 11 11:30a – 1:00p

“Relationships as the Road to Revenue” interactive session on team building and creating trust with clients and colleagues, presented by Joelle Hadley, owner and founder of The Culture Coaches. $75 The Ritz-Carlton, Phoenix 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org

CHANDLER CHAMBER OF COMMERCE Advanced Simple Steps Thurs., Feb. 21 3:00p – 5:00p

Session will cover HR, business planning, marketing strategic planning, crowd funding, social media, Quick Books, effective networking, legal.

Free Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler business.chandlerchamber.com

ECONOMIC CLUB OF PHOENIX Luncheon

Tues., Feb. 12 11:30a – 1:30p

Speaker: Charles Redfield, Sam’s Club executive vice president of merchandising.

Members: fee varies with membership; non-members: $75; advance registration required JW Marriott Desert Ridge Resort 5350 E. Marriott Dr., Phoenix econclubphx.org

GREATER PHOENIX CHAMBER OF COMMERCE Phoenix State of the City Address Thurs., Feb. 28 11:00a – 1:30p

Luncheon and Phoenix Mayor Greg Stanton’s State of the City address.

Members: $70; non-members: $85 PhoenixSheraton Phoenix Downtown Hotel — Phoenix Ballroom 340 N. 3rd St., Phoenix phoenixchamber.com

Tues., Feb. 12 11:30a – 1:00p

Enjoy a great lunch and network with other local businesspeople.

Members: $15; non-members: $25 Waxie Sanitary Supply 4136 E. McDowell Rd., Mesa mesachamber.org

NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS Luncheon

Wed., Feb. 13 11:00a – 1:00p

“4 Factors that Open the Floodgates to More Sales, Better Clients & Higher Profits,” presented by Loretta Love Huff, creator of the Bamboo Approach to Bountiful Business Growth.

Members: $38; non-members: $48; after Feb. 8, add $15 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org

NAWBO University Wed., Feb. 13 9:30a – 11:00a

“Strategies for Attracting Investment Capital,” presented by Dena Riddel.

Members: free; non-members: $30 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org

NORTH PHOENIX CHAMBER OF COMMERCE Business Resource and Networking Luncheon Tues., Feb. 12 11:30a – 1:00p

“The Solution to Any Business Problem is ALWAYS Within Your Four Walls,” presented by Gray McQuarrie, author of Change your DAM Thinking — How to Design a Company that FLOWS and GROWS. Members: $15 prepaid online; guests: $20 prepaid online, $25 cash at the door Moon Valley Country Club 151 W. Moon Valley Dr., Phoenix northphoenixchamber.com

SCOTTSDALE AREA CHAMBER OF COMMERCE Breakfast with a Side of Branding Wed., Feb. 13 7:15a – 9:00a

Get actionable tools specific to your business, built on best practices, case studies and bottom line benefits from some of Scottsdale’s smartest marketers.

Members: $20; guests: $30; day of event: add $5 Doubletree Paradise Valley Resort 5401 N. Scottsdale Rd., Scottsdale scottsdalechamber.com

SOUTHWEST VALLEY CHAMBER OF COMMERCE Lunch and Learn Thurs., Feb. 21 11:30a – 1:00p

Interested in doing business with Luke Air Force Base? Bring your lunch and come meet Mary Peetz, director of business operations, small business specialist, for the inside scoop. RSVP required.

Free Southwest Valley Chamber of Commerce 289 N. Litchfield Rd., Goodyear Danielle, 623-932-2260

SURPRISE REGIONAL CHAMBER OF COMMERCE Spirit of Community Awards Banquet Thurs., Feb. 21 5:30p – 9:00p

Recognize and celebrate our local businesses and their leaders. Business attire. $75 Arizona Broadway Theatre 7701 W. Paradise Ln., Peoria surpriseregionalchamber.com

Business Education Seminar Fri., Feb. 22 8:30a – 10:00a

Greater Phoenix SCORE presents “Ways to Make Your Marketing Reach More Buyers With Less Effort Today.” Continental breakfast, prizes and networking.

Free; prior registration required Communiversity @ Surprise 15950 N. Civic Center Plaza, Surprise Mary Orta, 623.583.0692

TEMPE CHAMBER OF COMMERCE Igniting Your Personal Adventure Speaker Series Fri., Feb. 1, 8 8:00a – 9:30a

On Feb. 1, speaker Karen Gridley presents “Spark, Ignite and Fuel Your Inner Pilot Light: A Success Mindset to Sustain Women in Business.” On Feb. 8, speaker Delia “Dee Dee” Tapson presents “The One Minute House,” an activity focused on having a vision, organization, planning, setting goals and the importance of details. Light breakfast and coffee/juice bar provided.

Members: $20; non-members: $30 Homewood Suites by Hilton 4750 E. Cotton Center Blvd., Phoenix. tempechamber.org

WEST VALLEY WOMEN “Bring a Gentleman to Lunch” Tues., Feb 5 11:30a – 1:00p

$35 Arizona Broadway Theatre 7701 W. Paradise Ln., Peoria westvalleywomen.org

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Please confirm, as dates & times are subject to change.

WOMEN OF SCOTTSDALE

Infusionsoft. Lunch is provided.

Free The Center for Entrepreneurial Innovation at GateWay Community College 275 N. Gateway Dr., Phoenix ceigateway.com (See article on page 35)

Luncheon

Fri., Feb. 15 11:30a – 1:00p

$35 The Westin Kierland Resort and Spa 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org

Women Entrepreneurs Small Business Boot Camp Sat., Feb. 9 7:00a – 4:00p

OTHER BUSINESS EVENTS “Stone Cold Global Growth: Becoming a #1 Importer from Arizona” Mon., Feb. 4 7:30a – 9:00p

Growth Nation presents Arif Surmen, CEO of Phoenix-based QDIStone, an Inc. 5000 company, the largest importer of travertine and limestone natural stone in the U.S. $20 SkySong — Global Room 1475 N. Scottsdale Rd., Scottsdale growthnation.com/azigg

Center for Entrepreneurial Innovation — Lunch and Learn Thurs., Feb. 7 11:30a – 1:00p

“Lifecycle Marketing: A Hands-On Workshop to Develop Your Customer Base,” presented by Eric Keosky-Smith, Arizona regional development director at

Successful local business experts will share relevant, valuable tricks, tips and tools to help your business grow and make money. Attend the reception to mingle with speakers and sponsors.

Camp: $99; camp plus reception: $125 Chaparral Suites Resort, Scottsdale 5001 N. Scottsdale Rd., Scottsdale womensbusinessbootcamp.com

Innovations in Marketing Seminar Series Thurs., Feb. 14 11:30a – 1:00p

“Define Your Customer Experience” presented by Leap Innovation and New Angle Media.

Free; advance registration required New Angle Media — Grand Canyon Conference Room 2601 E. Thomas Rd., Phoenix Donovan Hardenbrook, Leap Innovation principal, (480) 264-9009

Center for Entrepreneurial Innovation — Lunch and Learn Thurs., Feb. 21 11:30a – 1:00p

“The Legal Implications of Social Media,” presented by Ruth Carter, attorney, founder of Carter Law Firm. Lunch is provided.

Free The Center for Entrepreneurial Innovation at GateWay Community College 275 N. Gateway Dr., Phoenix ceigateway.com (See article on page 35)

Critical Obligations for 401k Plan Sponsors Thurs., Feb. 21 11:30a – 1:00p

Arizona Wealth Management’s workshop will teach business owners how to be in full fiduciary compliance in this climate of stepped-up audits by the Department of Labor. Presented by Don Jones AIFA®, PRP®, RF®, GFS®, Founder of Fiduciary Doctors, LLC. Lunch is provided.

Free; RSVP, as seating is limited First Financial Equity Corp.

7373 N. Scottsdale Rd., Scottsdale Jim Wilkerson, (480) 778-2005

Keeping it Local Thurs., Feb 21 11:30a – 1:30p

The City of Peoria welcomes Kimber Lanning of Local First Arizona to share information about the importance of shopping local, how that impacts the State of Arizona when we don’t, and what we can do to support our local businesses and Arizona’s economy.

Free Point of View Room 9875 N. 85th Ave., Peoria debbie.pearson@peoriaaz.gov

ASQ Lean and Six Sigma Conference Mon. & Tues., March 4 & 5 All day

Fifty-plus sessions will provide new and unique application of Lean and Six Sigma, examine the future of these methodologies and show how they can be applied to various industries.

ASQ members: $1,295; non-members: $1,495 Pointe Hilton Tapatio Cliffs 11111 N. 7th Street, Phoenix asq.org/conferences/six-sigma (See article on page 35) 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.

Email the information to: events@inbusinessmag.com.

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info@inbusinessmag.com 10:16 AM37 F e b r u11/26/12 a r y 2013

ENTERPRISE

Risks & Rewards

Entrepreneurial Truths Give Boost to Business Just as there are facts of life that affect us personally, there are facts of business life that affect us as entrepreneurs

by Bill McBean Doomed from the start. Entrepreneurs and entrepreneurhopefuls may find it difficult to keep those four words from causing them to second guess their every move as they plan and run their business — especially considering that fewer than 30 percent of businesses last more than 10 years and most failures happen within the first few years of operation. The truth is, many things could go wrong: an ill-conceived business idea, poor planning, lack of capital, ineffective leadership and more. In the high-stakes world of running a business, those are the facts.

But there are other important facts about business ownership that could help entrepreneurs avoid the mistakes and pitfalls that trip up so many others and go on to achieve success. These are the “facts of business life.”

Of course, there are a variety of skills owners need to know in order to make a business work. But decades of running my own successful businesses and learning how other successful owners have created success has shown me that these facts are the seven essential concepts needed to create a successful business life. There are no guarantees for entrepreneurs — and, to add to the challenge, each business is one of a kind, in terms of how it competes, its constraints and how it operates — but what entrepreneurs can do is tilt the odds in their favor.

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Fact 1: If you don’t lead, no one will follow. At first, this statement seems mind-numbingly obvious. But often, “leadership” is one of those words thrown around by people who haven’t given much thought to what it looks like in action. Good business leadership begins with defining the destination and direction of the company and deciding how the business should look and operate when it arrives.

But it doesn’t stop there. It also involves developing and continuously improving on a set of skills in order to move the business from where it is today to where the entrepreneur wants it to be tomorrow.

Without effective leadership, managers and employees have no idea what is important to the owner, what to manage or what success and failure look like. In order to have effective employees, a business first has to have effective leadership, which has to include defining success and failure based on the eventual destination. Another important aspect of being a good leader is developing a company culture that’s expectationsbased, and rewards those who meet and exceed those expectations.

The good news about leadership is, the most important aspects can be learned. It’s essential that owners do so. inbusine ssmag.com

Fact 2: If you don’t control it, you don’t own it. Control is the owner’s management reality. If the owner doesn’t control the company by defining key tasks and dictating how they must be handled, and “inspect what he expects,” then he doesn’t truly “own” the business because all he is, is a spectator watching others play with his money.

There are two overriding or macro concepts successful owners understand over their unsuccessful competitors. First, great procedures and processes need controls, and these in turn create great employees.

Procedures and processes operate the business, and employees operate the processes.

Secondly, the owner should not stop at pointing out what should be done and how. He should also clearly state and emphasize that there will be consequences when standard operating procedures and processes aren’t followed. Business owners who don’t do this will be “leading” a group of individuals who follow their own rules and judgment, rather than a cohesive company working toward a common goal.

Fact 3: Protecting your company’s assets should be the first priority. Readers may be surprised the instruction isn’t to first protect their company’s sales, profits and growth. But assets — tangible and intangible — are what power sales, profits and growth.

Usually, owners and soon-to-be owners understand the need for insurance on assets like their buildings and equipment. In fact, bankers insist on insuring specific assets they lend money on, like facilities, equipment and, sometimes, even an owner’s life. However, successful owners don’t stop at protecting obvious assets. They understand the importance of every asset because assets represent invested cash, which should be managed to produce exceptional and maximized profits.

Companies whose owners ignore this business fact will underperform — if they can even survive the continual asset write-offs and writedowns, customer abandonment and employee indifference. The key is to understand what all of the company’s assets are, both tangible and intangible, and then guard them closely and work to maximize the profits they represent.

Fact 4: Planning is about preparing for the future, not predicting it. Nobody knows what tomorrow, next week or next year will bring for a business. But business owners can make educated guesses based on the most current, accurate information available as well as their own past. experience, and this should be an ongoing process. Effective planning is a mix of science (gathering pertinent information) and art (taking that information and turning it into a plan that will move a business from “here” to “there” over a specific time period).

Being able to plan better than competitors can provide a significant competitive edge in the market. Ford Motor Company is a great example.

In 2008 and 2009, its competitors GM and Chrysler ran out of cash and needed taxpayer bailouts to avoid bankruptcy. But not Ford. Years prior to the credit crunch, Ford began to restructure its debt and raised billions as it continually added to cash reserves. Was this luck or good planning?

Industry insiders will say good planning. Ford knew, as all business owners should, that planning is valuable because it focuses owners on what’s important and prepares them for what lies ahead.

Fact 5: If you don’t market your business, you won’t have one.

Maybe working to market and advertise the company’s product isn’t the inbusine ssmag.com

owner’s cup of tea. Or maybe the owner believes the product is so great it should speak for itself. Forget the excuses; the bottom line is, if people don’t know about its product, a company won’t be successful.

New business owners, especially, are nervous about marketing because money is already so tight at this stage. But entrepreneurs have to make the necessary effort to connect consumers to their company.

When they do, they’ll begin to see marketing as the investment it actually is rather than the expense less successful competitors think it is.

Fact 6: The marketplace is a war zone. Every company has competitors, and if it doesn’t and it’s successful, it soon will.

Successful owners know they have to fight not only to win market share but to retain it as well. That’s why entrepreneurs must develop a warrior mentality and maintain it for as long as they’re at the head of their business.

Selling and sales in any industry is serious business. It’s “take or be taken from.” If that isn’t a business war zone, then I don’t know what is. In order to be successful and remain that way, entrepreneurs have to continually focus on the market, react to it and fight for what they believe should be theirs. If they don’t, their competition will win the war. Great marketing has to be followed up by a company being “on its game” in order to capture every customer the marketing attracts.

Fact 7: You don’t have to know just the business you’re in; you have to know business. Yes, of course entrepreneurs need to know the inner workings and nuances of their particular industry if they want to be successful. But they also need to understand the various aspects of business as it is more broadly defined, such as accounting, finance, business law, personnel issues and more, and how all of these impact each other and the decisions the entrepreneurs make.

Having tunnel or limited vision as far as business knowledge is concerned is akin to dropping out of high school, limiting the possibilities for success and how great that success could be. But what is most important for entrepreneurs is not how much they know but what they know and what they do with that knowledge. For example, it’s important an entrepreneur know not only what’s going on in his or her market but what to do with that information and how to translate it into more sales and gross and net profits — something that can’t be done with limited business knowledge. And it’s an owner’s responsibility to make sure what he or she is learning is correct and relevant.

As important as it is to know, understand and apply these seven “facts of business life,” it’s equally important to understand how these facts are interrelated. Being able to develop strategic plans or market a product will mean little if the company’s owner doesn’t have a good grasp of business in general. Entrepreneurs should also be prepared for implementation of these facts to change as their business goes through its inevitable life cycle.

The Facts of Business Life: What Every Successful Business Owner Knows That You Don’t factsofbusinesslife.com

Bill McBean authored The Facts of Business Life: What Every Successful Business Owner Knows That You Don’t based on decades of experience in a variety of industries. He is currently general partner of McBean Partners, a family-owned investment company, as well as partner and chairman of Our-Mentors, a company that works with owners to improve their businesses for long-term success.

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Commerce

cultivating industry

Find That Unique Niche in the Marketplace Beat the competition by ignoring it

by R. Kay Green, Ph.D.

It is no secret that competition today has become increasingly intense. In fact, in today’s highly competitive marketplace, the competition is so deadly fierce that the best and the brightest don’t always succeed. Sometimes the best and brightest are annihilated by the competitors in the industry.

In situations from starting a business or building a brand to trying to get that promotion at work, competition can do a couple of things.

First, it can provide a false sense of what the industry is. That is, when trying to determine market needs, health and trends by studying everything the competition is doing, how can a business owner possibly expect to get an accurate picture about anything? It’s not industry truth that’s being studied; it’s the competition’s propaganda.

There is no company that would portray itself in a negative light on its website or in its marketing materials. So a businessperson conducting research into the health and strategies of competitors might be getting

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a picture that’s healthier than reality; gauging oneself against one’s competitors, it’s difficult to get a realistic picture of what the market is really about.

How avoid these concerns? Make the competition irrelevant. A company can open up new — and uncontested — market space by focusing on improving its own value to both customers and itself. In considering these factors, the better strategy is for a company to form and maintain its own unique standards and determine what it will and won’t do. In essence, the best approach is to stop thinking about simply trying to beat the competition and start thinking about enhancing oneself, one’s business and one’s brand.

Redirect the business’s focus. The goal here is not to figure out how to fit into an established market. It’s about creating an environment in which a business is the only competitor, an environment in which inbusine ssmag.com

means trying to improve holistically. The latter leads to more positive momentum and longer-term personal gain.

Build a culture of improvement. The best way to break free from the bonds of one’s natural competitive nature is to concentrate all energy on improving oneself. No matter what an entrepreneur has done or gained, it’s necessary to keep looking for ways to get better. One can’t just rest on accomplishments. An entrepreneur has to get up, keep moving and keep improving!

Be okay with “no.” To truly ignore what the competition is doing, accept the fact that sometimes the competition will just be a better fit for certain people. A businessperson has to understand that “no’s” are natural.

Don’t compete and defeat. The thing about business is that customers are going to go with their preference, no matter what. A business owner who can figure out ways to bridge gaps with the competition — and even go so far as to do the unthinkable and work with the competition — might find the business in a better position to reach more customers than it ever could before. The same is true for the traditional work environment. Instead of trying to beat a competitor for that promotion, working with him or her might improve one’s chances of getting noticed by the managers who do the hiring.

Focus on the bigger picture. The cookie-cutter approach doesn’t work for everything. What worked in the old environment might not necessarily work in the new. The goal in focusing on the bigger picture should be to figure out how authentic strengths and values might apply to a market that is far larger and much less refined than the one left behind. Don’t be afraid to do things differently. Don’t be afraid to be oneself. Don’t be afraid to accept clients from backgrounds never before even anticipated.

its owner is the go-to person for the product or service. In essence, one should start thinking about oneself as the best and brightest. A businessperson who focuses inward will be much more likely to become the next innovator who changes the market — and who wouldn’t want to be that next innovator?

For an entrepreneur, redirecting the focus means ignoring a competitor’s predefined rules and values and starting to broaden the understanding of what one’s value is. Instead of worrying about what other people bring to the table for the customer, worry about what one brings to the table oneself. Then, with strengths and unique attributes clearly defined, one can begin to look at ways to accentuate them for prospective customers.

For the traditional work environment, the task is to do things to make oneself more authentic. If competing with someone else, it’s necessary only to be better than that person. Competing with oneself, however, inbusine ssmag.com

Declare independence. The most promising factor that lies at the center of all this is independence. One is not just positioning oneself advantageously in the marketplace; one is freeing oneself from the bonds of competition and rules. Free from the same rules as everyone else, don’t be afraid to shake it up. Innovate wherever possible. Project unique value onto the world. Never stop learning, growing, adapting and evolving.

The bottom line is, in order to succeed (in order to attract customers; in order to land that big promotion), you should always concentrate on delivering value. Always. The task here is, while your competitors continue to spend all their time and effort trying to figure out how to be better than you, to figure out how to maximize the value you bring to the table. Your competitor will be worried about your business’s performance; you will be worried only about how to better yourself. In the end, it will be this factor above all others — your concentration on yourself and the value you have to offer — that will lead to success.

I’ve Been Called the B* Word…Now What Do I Do? ivebeencalledthebword.com

R. Kay Green, Ph.D., is president and CEO of RKG Marketing Solutions, a professor of marketing and author of the new book I’ve Been Called the B* Word… Now What Do I Do? 13 Rules for the New-Age Professional Woman.

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by Mike Hunter

We Value What We Own

Redesign With Style: The New Range Rover The well-known SUV that started the craze, making it cool to own a luxury SUV that not only impresses but manages the off-road experience, has been completely re-engineered to be lighter and more fuel-efficient. Like most SUVs will become, the Range Rover uses new materials that make it lighter and stronger, offering more room with less bulk. The allaluminum body shell has made the vehicle 39 percent lighter than its predecessor — a definite trend shaping the SUV market.

The New Range Rover, as it is called, also has a fresh new look, making it the fourth-generation redesign. Featuring what will likely become an iconic “Dark Atlas” front grill, this model also includes a body-colored front bumper, vent blades on the sides and a “new look” door handle. Options include more paint colors, interior colors and wheel sizes that range from 19-inch to 22-inch, to further personalize the vehicle, setting them apart from one another.

The LR-V8 5.0-liter engine powers this lighter model with exceptional refinement and precision. The mechanical technologies have been reinvented with an eight-speed automatic transmission. It has been designed to match driver requirements with mechanical performance to take advantage of fuel economy and delivery of power. Other features include intelligent 4WD for performance off-road and exceptional traction capabilities on-road.

The interior styling is made to be easier and more convenient than past generations. The driver has a screen for instrumentation while a second console screen manages all other controls. Threezone climate controls, navigation, communications and entertainment are all managed on a single screen with high-definition clarity and The New Range Rover touchscreen technology. The exclusive sound system is by Meridian and is optimized for City MPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 passenger enjoyment.

Hwy MPG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 0-60 MPH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5 sec Transmission. . . . . . . . . . . . . . . . 8-speed Automatic MSRP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $83,545

Penmanship In an age when electronic devices do it all, it still takes a handwritten letter or a strong signature to solidify big business.

Here are some writing instruments that will get the job done:

Cartier Roadster Rollerball

Available in lacquered, leatherencased, mother-of-pearl, solid gold and hardstone versions, this Cartier pen will stop any negotiation and get straight to signing the deal. Start at $440. cartier.com

Montblanc Meisterstück Classique Rollerball

With a rollerball, barrel and cap made of black precious resin inlaid with the Montblanc emblem, goldplated clip and rings, this classic will seal the deal. $415. montblanc.com

Omas Lamborghini Aventador

This Aventador Limited Edition pen inspired by the new, futuristic jewel of the well-known car manufacturer, the V12 700-horsepower Aventador, will impress and ensure fast signing of deals. $1,300. omas.com

S.T. Dupont Elysée Roller

Elysée was imagined by S.T. Dupont as one masculine and traditional line with generous and established proportions to show strength when signing on the dotted line. $530. st-dupont.com

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inbusine ssmag.com

Photos courtesy of Range Rover (left), Cartier, Montblanc, Omas S.T.DuPont (right, top to bottom)

ASSETS

COMMERCIAL REAL ESTATE LOANS

Your passion is what builds communities.

Now’s an excellent time to purchase or refinance commercial property.

With a Commercial Real Estate Loan from BBVA Compass, you’ll enjoy: • Low fixed rates for the entire term • No balloon payments • 80% LTV for owner-occupied property; up to 95% LTV with SBA financing Act now and save with these limited-time offers: • Up to $5,000 off closing costs on loans $1 million and up • Up to $1,000 off closing costs on loans under $1 million Plus, you can trust the commercial lending experts at BBVA Compass to make your loan experience simple and easy. Offer expires December 31, 2012.

For more information, or to apply, visit any of our 46 branches in Phoenix.

1-800-COMPASS • bbvacompass.com

Application must be received between 09/20/2012 and 12/31/2012 and loan must be booked by 03/31/2013 to be eligible for this special offer. All loans subject to eligibility, collateral and underwriting requirements, and approval, including credit approval. Special closing costs offer available for a limited time only on qualifying commercial real estate loan applications received and booked within the specified offer dates. Up to $5,000 off closing costs on loans $1 million to $5 million; up to $1,000 off closing costs on loans under $1 million. Your actual closing costs discount may vary based on several factors. Offer applies to qualified types of owner-occupied commercial real estate and qualified borrowers. Offer not valid in conjunction with any other discount or offer. Customer is responsible for any closing costs and fees outside of any special promotions and reimbursement of any third party costs if loan is paid off within 36 months of loan closing. All promotions and offers subject to change without notice. Please contact a BBVA Compass banker for details. BBVA Compass is a trade name of Compass Bank, a member of the BBVA Group. Compass Bank, Member FDIC. #1027

Power Lunch

by Mike Hunter

Meals that matter

French Fare At these well-known, intimate hot spots, the influence of French cuisine makes for a great place to have a rich and delicious meal or a flavorful salad and soup.

Coup des Tartes

With all the charm promised by a Frenchinspired restaurant, this intimate old home has been serving delectable dishes for years. Lunch is impressive, offering salads, sandwiches and some of the classic dishes. Start with a Brie Brûlée, caramelized apples served warm with toasts and seasonal fruits.

Casual sophistication with great taste

At Central Bistro, the new modern French and Italian eatery located at 32nd Street and Camelback, it’s all about handcrafted pastas, fresh-made dishes and quality foods to please the most sophisticated palette.

Built to suit its owners’ concept of a comfortable, modern space, warm with the latest in décor and an open kitchen floor plan, Central Bistro sits in the spot of the famed Zen 32, which was such a popular sushi night spot for years. Completely redone and featuring the latest trends in design and restaurant/bar floor plans, Central Bistro will, no doubt, become the local upscale hang out.

For lunch, diners can rely on a menu dedicated to flavor and comfort, made up of local purveyors’ ingredients and creations that have long been favorites among foodies. Starters include fried calamari, tuna tartare, steak tartare, a fois gras mousse and other French-Italian goodies. The main dishes include wood-fired pizzas made in the Mediterranean tradition of thin and dense crust with ingredients that come together to delight. Try the Gorgonzola & Prosciutto with white sauce or the Duck Sausage with red sauce. Paninis are a favorite at lunch as well. The Croque Madame is based on the classic Monsieur with a twist. Pastas are handmade and are inspired by authentic Italian recipes. The gnocchi with fried sage is a light yet creamy dish that has become a house favorite. Other delicate but intense dishes include the tagliatelle with forest mushrooms, white wine and truffled cream sauce.

The atmosphere is sophisticated casual with a warm simplicity that makes the space very airy and inviting. The dining room is open to the exhibition kitchen replete with modern accoutrements, and the sense of openness in the bar area is accentuated by the windows surrounding it. A spacious terrace is built off of the bar, making for a fun space to gather.

Servers are well trained and, at lunchtime, work hard to get patrons through their meal feeling well-served and informed.

4626 N. 16th St., Phoenix (602) 212-1082 nicetartes.com

Petite Maison

Chef James Porter has created a gem here with this Old Town Scottsdale cozy French bistro. Enjoy a sampling of some of his best-known creations at lunch, like the Fois Gras, the Salmon Niçoise or one of the Pissaladières, which are rustic pizzas.

7216 E. Shoeman Ln., Scottsdale (480) 991-6887 petitemaisonaz.com

Zinc Bistro

Patterned after a typical Parisian bistro, this authentic eatery located in Kierland Commons is a true European experience. Tastes of France come together over lunch with Bouillabaisse, a classic omelette, salmon and more. Try the European and domestic cheese platters with olives, nuts and fruit.

15034 N. Scottsdale Rd., Scottsdale (480) 603-0922 zincbistroaz.com

Central Bistro 3160 E. Camelback Rd., Phoenix (480) 646-8560 centralbistroaz.com

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Photos courtesy of Central Bistro (left), Zinc Bistro (right)

Central Bistro: Inspired French/Italian

TEMPE CHAMBER

What Do Women Want?

Advantage Feb. 2013 – May 2O13 • tempechamber.org

By Jan Whalen, President of WhalenVoices, LLC, Women in Business Council Chair “What do women want?” is an age-old question, a riddle – even a movie. What do women want? And more noteworthy, what do women need to be successful in 2013? Who cares enough to ask? Marketing folks ask; professional speakers ask; men continue to ask. The Tempe Chamber’s Women in Business (WIB) Council took the initiative to ask (and answer) this question.

The WIB Council follows the legacy of many successful Arizona women: first female Supreme Court Justice Sandra Day O’Connor; Sharlot Hall, a dynamic historian of the past; Polly Rosenbaum, Arizona’s longest serving State Representative; former Governor Janet Napolitano, now serving as Secretary of Homeland

Security; and Governor Jan Brewer to name a few.

Since the mission of the WIB Council is to support business women today, we felt the need to dig into what is currently in the minds and hearts of the women of 2013. We solicited information from our members who represent a variety of work environments from large companies to consultants and everything in between. What we found has provided us direction to achieve our organization’s mission. Words and themes came to the surface.

“Igniting Your Personal Adventure” best describes our 2013 mission.

Life is filled with contradicting events, emotions and situations. By setting our imaginations and minds on fire, life transforms from a drab existence of overcoming challenges and problems into an adventure ready for our exploration.

And what do women want specifically? We boiled it down to 10 points that center around four overlying themes: self-awareness, balance, overcoming obstacles, and being part of a supportive team. All fundamental in nature, yet as in basketball or ballet, to strive for mastery, we return to the basics for a life well lived.

Here’s our top 10 list: 1. Self-awareness is the first step in getting what we want and need.

Since we are constantly in transition, we face a new woman in the mirror each Jan. 1.

2. We need to build our self-esteem through education and reflection. With an increased level of esteem our confidence grows and we are more likely to take risks, thus expanding our comfort zone.

3. We want an unconditional belief in ourselves. This belief is the empowering ingredient we want to bring to the work place, the home and any social setting.

4. This leads us to balance. We want physical, financial, mental and spiritual balance. When we achieve this balance, we have peace; an inner peace that clears the mind and ignites the imagination to go about our daily routine with a fresh, free perspective. We need balance in order to be in touch with our passions, hopes and dreams.

5. Some look at life as a game, and all games have challenges. So what stands in the way of women reaching their potential? What limits us? We need awareness of what’s going on, appropriate tools to deal with road blocks and a strategy to overcome anything thrown our way.

6. We want to be recognized for what we’ve accomplished yet realize that our happiness is an inside activity. Setting our own goals rather than letting others define our potential is critical.

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7. We want to avoid complacency and be conscious of not falling into a rut – always embracing positive ideas and ideals motivates us to new paths of growth.

8. At the end of the day, we need a support team in our professional and personal lives made up of trustworthy people who give honest feedback. We need to be masters of delegation and learn to say “yes” when help is offered. No one reaches success alone.

9. We also need to learn to say “no” without feeling as if we’ve let everyone down. Stepping back from a job may facilitate growth for others. As Kenny Rogers sings, “…know when to walk away, know when to run.” Saying “no” frees us to do what aligns with our mission and purpose.

10. And most importantly, we women need to put away professional jealousy and think beyond the old glass ceiling theory. There are plenty of opportunities for all of us. Together we can do anything!

In knowing what women want and need, we are better able to deliver programs and opportunities for today’s woman. We are able to chart a course that ignites not only the individual woman, but also serves the greater good for our businesses, the city of Tempe, the state of Arizona and beyond.

One woman on fire can affect thousands. Won’t you join us in our adventure?

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Participants of last year’s inaugural Mentoring Program. Top row, from left: Julie Jakubek, Allstate Insurance Company-Julie Jakubek, MBA; Marla Hampton, Expert Tax & Accounting Services, LLC; Lorraine Bergman, Caliente Construction; Stasy Click, Law Office of Stasy Click, P.C.; Bobbie Cassano, Tempe Community Council; Kristy Lockhart, Veolia Transportation; Jackie Thompson, Southwest Airlines; Melody Johnson, Association for Supportive Child Care; Jan Whalen, Personal JAZ; and Linda Kalaf, immediate past chair of the Women in Business Council, Veolia Transportation. Seated, from left: Magdalena Johnson, SRP, and Bill Goodman, Morgan Stanley Smith Barney. Photo by Jay Mark

Mentoring Program Provides Guidance, Support

By Linda Kalaf, Director of Human Resources, Passenger Relations & Community Engagement, Veolia Transportation Tempe People often seek out opportunities to learn from more experienced individuals who have achieved success in their personal or professional life and who are willing to share their story with others. This is often referred to as mentoring, and the relationship is typically between an experienced person (the mentor) and a less experienced person (the protégé) for the purpose of helping the protégé achieve his or her personal and/ or professional goals. The protégé seeks the advice and support of the mentor. Mentors answer questions concerning the tasks that their protégés need to succeed in order to reach their goals and provide wisdom, guidance and counseling as mentees advance their lives and careers.

In 2011, the Tempe Chamber of Commerce’s Women in Business Council spearheaded a pilot “Mentoring Program,” which is six months in duration. The program provides a monthly workshop December through April, each with its own guest speaker. The presentations focus on life-coaching experiences and leadership preparedness. The program culminates in a graduation ceremony at the Tempe Chamber’s annual Women in Business Conference and Trade Show, where all program

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participants are recognized and honored.

The program’s goals include self-discovery and being open to understanding your true self, your personality style and values; learning roles in which individuals are encouraged to take control of their professional development by creating personal and professional development plans; connections in which protégés will further develop their networking and communications skills, understand the importance of creating meaningful relationships and create their personal board of directors; experience – protégés are encouraged to discuss differences in terms of personal background/history and share ideas of goal attainment; and legacy – participants will explore what they would like to leave as their legacy.

Our 2011-2012 Mentoring Program had six mentor/protégé pairs, and four of the mentors have returned to participate in the 2012-2013 program.

We are grateful to have former Business Women of the Year recipients Julie Jakubek, Allstate Insurance; Vicki Kringen, The Centers for Habilitation; and Jackie Thompson, Southwest Airlines, returning to share their expertise and Continues on T.C.A. 6

2013 Business Excellence Awards Finalists Announced Photos by Jay Mark

The Tempe Chamber of Commerce presents the 16th Annual Breakfast for Chamber Champions on Feb. 21 from 7:30 to 9 a.m. at the Embassy Suites Tempe, 4400 S. Rural Rd. This event honors those individuals and businesses that have gone above and beyond in their efforts to make Tempe a thriving community. Awards to be presented include The Business Excellence Awards, Spirit of Tempe Award, Volunteer of the Year Award and Outstanding Community Leadership Award.

The Business Excellence Awards honor companies whose practices in business growth, employee development, community involvement and customer service exemplify excellence.

The 2013 finalists are: Allstate Insurance, Julie Jakubek, MBA Julie Jakubek’s agency started from scratch 17 years ago and has since expanded to represent the insurance needs of 1,700 families and businesses. In 2011, Jakubek purchased three other local agencies and brought them into her existing location. Previously, the agency has been recognized for its success and has received the Best In Company - All Lines and the Chairman’s Inner Circle awards. www. juliejakubek.com AlphaGraphics at Kyrene and Elliot Since its founding in 1997, Eric Adams’ AlphaGraphics location has grown to become a successful communications and printing firm

2012 Business Excellence Award recipient Four Peaks Brewing Company

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2012 Business Excellence Award recipient Children’s Dental Village. From left: Dave Long of Edward Jones, Immediate past chair of the Tempe Chamber; Dr. Mercedes Padilla; Dr. Alan Longfellow; Joyce Anne Longfellow; and Tempe Chamber of Commerce President/CEO Mary Ann Miller

which, through its services, customer support and dedication, has evolved repeatedly to meet the changing needs of business. It has seen annual growth since its inception and has expanded its services to include business solutions and marketing communications along with standard printing work. www.us436. alphagraphics.com Henry & Horne Henry & Horne is a public accounting firm that was founded in 1957 with just two employees.

Today the multi-million dollar organization employs 114 people and is Arizona’s largest locally owned accounting firm. The firm offers a broad base of services, including estate specialists and international tax experts, and is a member of the Leading Edge Alliance. www. henryandhorne.com Southwest Airlines In 1971, Southwest Airlines started with service to only three cities within the state of Texas. Today it operates more than 3,100 daily flights and serves communities around 78 airports. During the past four decades, it has grown from 195 employees to approximately 46,000, 4,300 of whom live and work in the Phoenix metro area. Today, Southwest flies the most passengers nonstop of any U.S. airline. www.southwest.com

Statera Statera is a business and technology services and solutions provider that helps companies map strategic goals and objectives to information technology initiatives. It began by providing experts on a particular technology, and today oversees the complete management of specific platforms for its clients. It embraces a geographically centric business model to offer its local clients a strong customer service experience. www.statera.com Tempe Camera Founder and owner Joe Wojcich started Tempe Camera in 1972. Over the past 40 years, the business has grown from a one-man repair shop to being named one of the top rental houses in the nation by Resource Magazine.

It offers rentals, sales, a photo imaging center, classes and workshops, making it Arizona’s only one-stop imaging store with these resources. www.tempecamera.com The award recipients will be announced and honored at the Breakfast for Chamber Champions on Feb. 21 at the Embassy Suites Tempe. Call (480) 967-7891 or visit www. tempechamber.org to RSVP.

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As members of the Tempe Chamber of Commerce, you and your employees have access to exclusive discounts and programs. Through a variety of partnerships and affiliations, we are able to provide our members with discounts on legal services, identity theft protection, e-mail marketing and more, as well as provide access to educational programs and services.

Visit www.tempechamber.org to take advantage of these great benefits.

Last year’s Business Woman of the Year Award recipient Robin Trick, owner of House of Tricks Restaurant in Tempe. Photo by Jay Mark

18th Annual Women in Business Conference and Trade Show to Take Place in May Each year, this powerful event brings together hundreds of business leaders in a setting that celebrates success, facilitates network development and offers incredible opportunities for personal and business growth. A trade show featuring local and national organizations, businesses and companies provides the backdrop to a luncheon and presentations by powerful keynote speakers.

The half-day event culminates with the presentation of the prestigious Business Woman of the Year award. This award recognizes an individual who exemplifies the character and traits of a highly successful business woman. It’s the most anticipated moment of the event, as some of our past recipients recalled.

“Winning was a truly overwhelming experience because it validated the hard work I’ve done over the years and was a very gracious acknowledgement by my peers,” said 2010 Business Woman of the Year Margaret Hunnicutt, president/CEO of Tempe Schools Credit Union.

2008’s Business Woman of the Year Angela Creedon, assistant VP with ASU’s Office of Public Affairs, agreed. “I was not only humbled by the acknowledgement, but I will remain forever grateful for the recognition,” she said. “I still look at my award with pride and gratitude. It was one of the most incredible days of my life!”

Visit our website at www.tempechamber.org for more information about this event and to learn how you can nominate someone for our Business Woman of the Year.

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In Their Words Question: What impact has being involved in the Tempe Chamber’s Women in Business Council had on you, both professionally and personally?

“Becoming an active member of the Tempe Chamber’s Women in Business Council is one of the best decisions I have made.

The women who participate are sharp and business savvy. Being involved allows me to volunteer my skills which promotes and brings me business. Planning and participating in activities such as the mentoring program and leadership series improve and grow my leadership ability. I’ve developed a personal board of directors from this group who support me in all of my business endeavors.

Personally, working with members who are dedicated to creating programs that support the growth of business women is extremely fulfilling.” – Arlene Rosenberg, The Rosenberg Group “Being a part of the Tempe Chamber of Commerce’s Women in Business Council goes far beyond the ability to promote the business I work in. The Council has improved my life, both professionally and personally through opportunities and new experiences; seminars; and the established relationships that allow me to be who I am and help me to grow in all areas of my life. I believe that one of the best things about the Council is the chance to work with amazing, courageous, inspirational women (and men) who provide support to achieve goals and be successful in everything we do.” – Dawn Hocking, TCH/The Centers for Habilitation

“I joined the Women in Business Council in March of 2012, but have been a member of the Tempe Chamber for over six years.

The Council is one of the most amazing experiences I’ve enjoyed within the Chamber.

I have made friends, secured new business relationships, and grown tremendously in my professional development. I discovered the Women in Business Council after attending the incredible Leadership Speaker Series offered at the start of the year. Attending was transformational. It inspired me to take the next step in going after one of my personal long-term goals of becoming a professional speaker. It has been an amazing journey since!” – Jennifer Castro, Dave & Buster’s

Ken Blanchard College of Business | College of Education | College of Nursing | College of Arts & Sciences | College of Fine Arts & Production

Campus • Evening • Online

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/ ).

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Continued from T.C.A. 2 vast experience with our protégés. In addition, Bill Goodman of Morgan Stanley Smith Barney is an active Women in Business Council member and has participated both years. We are fortunate to have a male’s perspective and someone who is an advocate for women’s initiatives.

At the 2012 Women in Business Conference and Trade Show we showcased two of our program pairs with a panel question-and-answer period allowing participants to share their experiences and program success.

We were fortunate to expand our 2012-2013 program to eight pairs and kicked off the initial workshop with Lory Fischler, co-author of The Mentee’s Guide: Making Mentoring Work for You. Fischler provided a variety of activities which helped prepare the pairs for mentoring success. She

defines mentoring as “a reciprocal learning relationship in which mentor and mentee agree to a partnership where they will work collaboratively toward achievement of mutually defined goals that will develop a mentee’s skills, abilities, knowledge and/or thinking.”

We are looking forward to this year’s great adventure and journey for our program participants. We are also proud of the program’s success and recently had a protégé make a career transition to become the Tempe Chamber of Commerce’s vice president of membership. Congratulations to Melody Johnson!

If you are interested in learning more about the Mentoring Program, please contact Sachiyo Spires, Communications Director, Tempe Chamber of Commerce, at sachiyo@tempechamber.org.

Here’s what participants in last year’s Mentoring Program had to say: “My mentor took very seriously his mentoring responsibilities. He was always ready to meet with me outside of the program hours. He was very professional and personal. Bill is a great person who I can trust.” – Magdalena Johnson

“The interaction between Jackie and I was very high quality for two reasons: 1) I was very specific about what I was hoping to gain from the experience, and 2) Jackie took the time to develop content and exercises in order to meet my objectives. During each meeting, we referenced each activity back to how that activity could benefit me and help get me to where I wanted to go.” – Melody Johnson

“This program set me on a new course in life!

The very first week of the program I had some major breakthroughs about my own personality and how I had been hiding who I really was to please others. After that session I went straight to Barnes and Noble to buy an ‘ideas book’ and have kept it ever since, and it has helped me to rediscover who I am and brought me great joy and confidence!” – Jennifer Wagner

Connect with the Tempe Chamber!

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Read our monthly e-newsletter tempechamber.org/advocateonline

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twitter.com/tempechamber

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Representing Business ECONOMIC DEVELOPMENT The long-term viability of the state is dependent upon the successful development of new and existing business and industry. Government should establish policies that provide incentives to foster a competitive business environment to increase growth and development opportunities.

Economic Development Tools The Tempe Chamber supports allowing local governments to use economic development tools to attract new business and implement redevelopment programs, including tax increment financing, establishment of special districts to coordinate and implement economic redevelopment plans, creation of public/private partnerships, and targeted local incentives.

Employment of People with Disabilities The Chamber supports the creation of a program which would require that the State purchase products and services offered by people with disabilities, capped at 1% of State purchases.

EDUCATION/WORKFORCE PREPAREDNESS A quality education system is an essential part of a productive workforce. Working relationships between students, educators, administrators, government officials and businesses will build the most effective K-20 educational system to provide the business community with a workforce that is prepared to meet the challenges and demands that face business.

High Technology The Chamber urges a greater emphasis on science, technology, engineering and mathematics in the Arizona public education system to enable greater competition in the global economy.

K -12 Funding The Tempe Chamber supports development of a simpler, transparent educational funding formula that maximizes the use of the taxpayers’ money.

EMPLOYEE RELATIONS An educated, well-trained workforce is essential to maintain a vibrant economy. A supportive regulatory environment that provides the flexibility to explore and formulate ways for our workplace policies to create an “economy of opportunity” can address today’s challenges to both the employee and the employer and keep our state competitive into the future.

The Tempe Chamber’s Arizona Policy Agenda will guide our efforts to watch out for your interests. We’ll work to develop a strong economy where your business can thrive. Below are some of the highlights.

To read the document in full, visit www.tempechamber.org.

Immigration The Chamber believes that immigration issues should be resolved at the federal level. The Chamber supports programs that provide for an adequate legal workforce while maintaining the integrity of our national borders, protects the rights and benefits of legal residents, and protects businesses that operate in an open, above-board manner.

ENVIRONMENT The Tempe Chamber of Commerce is committed to economic development and environmental protection. Economic development goals should not be achieved at the cost of our environment. Environmental preservation adds to the quality of life in the region. Appropriate environmental policies can enhance the diversification of Arizona’s economy and expand the state’s growing biotech sector. Business and environmental organizations should work toward a common vision of public policies that protect the environment as well as grow the economy.

Air Quality The Tempe Chamber believes that any legislative measures to improve our air quality should provide businesses and citizens with incentives and a variety of practical options.

State Regulatory System The Tempe Chamber supports a state regulatory system that encourages voluntary compliance and incentives as an alternative to mandates whenever possible.

GOVERNMENT The Tempe Chamber of Commerce believes that governments at all levels should strive to streamline processes and provide maximum service at minimal cost. The Chamber encourages State government to eliminate debt financing, increase oversight of agency budgets and to make the public reporting of state spending transparent.

Ballot Referendums and Initiatives The Tempe Chamber supports efforts to reform ballot referendums and the initiative process, including permitting legislative changes to initiatives with voter ratification and requiring legislative council to review and title initiatives prior to signature collection.

Formula Review The Chamber supports a legislative review and modernization of budgetary formulas, including those for AHCCCS and education.

HEALTH INSURANCE The passage of a federal health care bill has left much uncertainty in the business community; the future cost of care and its effect on operational budgets are dependent on as yet-unwritten rules.

While we will monitor federal developments in order to educate businesses, there are aspects of health insurance costs and availability that are within the purview of the State.

Health Care Coverage Mandates The Tempe Chamber opposes legislation that would require mandatory employer-provided health insurance benefits.

Liability Reform The Chamber urges significant tort reform measures to reduce the costs of health care and health insurance and encourage retention of a qualified health care workforce.

TAXES The Tempe Chamber advocates for fair and cost-effective tax policies that are a part of a comprehensive tax plan to reduce the cost of doing business, thereby making the region more competitive for private investment and spurring economic growth.

Business Personal Property Tax The Tempe Chamber strongly encourages increasing the business personal property tax threshold.

Cost Shifts The Tempe Chamber opposes shifts in State budgeting to local governments, businesses and individuals resulting in increased fees.

TRANSPORTATION The Tempe Chamber of Commerce is a leading advocate for a multi-modal transportation system.

The efficient transportation of goods and people is critical to growing our economy. A balanced transportation system reduces pollution, relieves traffic congestion and increases the quality of life, availability, and efficiency of the area workforce.

Equitable Representation The Tempe Chamber supports true equity in the distribution of resources and metro area representation on the State Transportation Board.

High Capacity Transit The Tempe Chamber of Commerce supports establishing a new, permanent, dedicated, statewide funding source for public transportation.

The Tempe Chamber of Commerce supports the efforts to identify, fund and implement a commuter rail system as an effective solution to an overburdened road infrastructure.

For more information, contact Mary Ann Miller, president/CEO of the Tempe Chamber, at maryann@tempechamber.org or (480) 736-4280.

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Board of Directors Chairman of the Board: Jack Pisano Chair-Elect: Jeff Mirasola Mary Ann Miller, President and CEO, maryann@tempechamber.org Sean Donovan, Vice President, Media and Program Development, sean@tempechamber.org Donna Dzatko, Operations Manager, donna@tempechamber.org Allison Goodman, Membership Development, allison@tempechamber.org Melody Johnson, Vice President Membership Development melody@tempechamber.org Renee Lopata, CAE, Senior Vice President, renee@tempechamber.org Sachiyo Ragsdale, Communications Director, sachiyo@tempechamber.org Heidi Santos, Bookkeeper, heidi@tempechamber.org

Treasurer: Phil Howard Vice-Chairs: Margaret Hunnicutt, Kristine Kassel, Tim Ronan Immediate Past Chair: Dave Long Directors: Steve Eberhart, Joe Hughes, Kelly Lorenzen, Mark Masten, Mary Palomino, Laura Robertson, Aqeel Shahid, Jackie Thompson, Brian Wood, Liz White Ex-Officios: Tanya Chavez, Charlie Meyer, Stephanie Nowack, Virgil Renzulli Committee Chairs: Neil Chitel, Harvey Gibson, Jim Hall, Vicki Kringen, Dave Long, Kelly Lorenzen, Al Shipley, Jan Whalen Tempe Chamber of Commerce 909 E. Apache Blvd.

Tempe, AZ 85281 (480) 967-7891

The latest business news on inbusinessmag.com and on twitter @inbusinessmag

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@inbusinessmag

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Arizona Technology Report Arizona Technology Council: The Voice of the Technology Industry

In This Issue Strategic Plan…Page 2 SciTech Festival…Page 4 Help for Startups…Page 7

Who We Are The Arizona Technology Council is Arizona’s premier trade association for science and technology companies.

Phoenix Office

One Renaissance Square 2 N. Central Ave., Suite 750 Phoenix, Arizona 85004 Phone: 602-343-8324 Fax: 602-343-8330 info@aztechcouncil.org

Tucson Office

The University of Arizona Science and Technology Park 9040 S. Rita Road, Suite 1150 (near I-10 and Rita Road) Tucson, Arizona 85747 Phone: 520-829-3440 Fax: 520-829-3441 tucson@aztechcouncil.org

President’s Message A new year always brings the promise of a fresh start. When it comes to the technology community in Arizona, this spirit of renewal promises plenty of good news to look forward to in nearly all of the state’s tech sectors in 2013.

This is not to say 2012 was a bad year for technology. By December, the jobless rate in the state dropped to 7.9 percent. But keep in mind the employment picture isn’t like that for the rest of the economy. The unemployment rate for technology is typically half, so even in bad times the workers in this segment have options. I’m optimistic the situation should be Steven G. Zylstra, even better this year President and CEO, Arizona Technology Council as the economy picks up steam.

Positive indicators already are evident.

What had been a sluggish semiconductor industry already is showing signs of rebounding. At the same time, the software and biotechnology clusters are growing.

Management and Staff Steven G. Zylstra

Leigh Goldstein

Don Ruedy

President and CEO

Managing Director, Programs and Events

Executive Emeritus, Tucson Office

Don Rodriguez

Doug Reid

Editor

Director, Arizona Innovation Institute

Deborah Zack Director, Membership Services

Merry Lake Merrell

Ron Schott

Director, Marketing and Communication

Executive Emeritus

Phillip Huebner

Anne Rody

Alex Rodriguez

Director, Arizona Science and Engineering Fair

Director, Tucson Office

Director, Finance and Administration

Justin Williams Executive Emeritus, Tucson Office

aztechcouncil.org

Feb. – May 2O13 aztechcouncil.org

And as things heat up, there will be an even tighter supply of workers, so tech workers can expect plenty of options to consider.

The only sector that I expect to see struggle is renewable energy. As you recall, there was a glut of cheaper solar products when Chinese manufacturers dumped them onto the global market. The world’s inventory of those products will have to shrink to the point where replacements are needed, which in turn will signal a recovery era for the state’s renewable energy industry.

Two upcoming events show Arizona is already working on keeping technology hot well into the future. This month marks the return of a statewide event that showcases the value of technology while planting the seeds of inspiration for young people who will get their chance to make up our next tech workforce. The second annual Arizona SciTech Festival launches Feb. 9 for a fiveweek celebration marked by events expected to again attract entire families throughout the state. (Look for details inside this section.)

As the Festival winds down, another annual event returns to serve the state’s aerospace and defense industry. The Second Annual Aerospace, Aviation, Defense and Manufacturing Requirements Day on March 14 in Scottsdale offers the chance for manufacturers and service providers to connect with defense contractors who are looking for subcontractors to help meet the military’s needs. The result will be Arizona’s A&D sector gets the chance to get through a period threatened by the risk of budget cuts.

This is just a sample of what to expect in a new year with a reviving economy. And there are no resolutions to keep — just plenty of solutions to expect.

Jeremy Babendure, Ph.D. Director, Arizona SciTech Festival

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New Year, New Direction Council sets priorities to help group reach new heights Voice of an industry. Stellar reputation.

Growing membership. These achievements in the Arizona Technology Council’s first decade would be considered exceptional by any professional group. But because strategic planning offers the potential for the group to reach an even higher level, an

effort is underway to reach a new vision and direction for the Council as it starts a new decade.

As the Council has changed in the past decade, so has the Arizona technology community in becoming “one of the fastestgrowing technology centers in the nation,”

says Steven G. Zylstra, the Council’s president and CEO. That means the time has come for a Council agenda that reflects the needs of a ramped-up tech community.

In a series of meetings, the Council’s board and staff have been working to create a strategic plan for priorities

Vision Statement and Strategic Pathways Vision Statement The Arizona Technology Council is the driving force behind making our state the fastest growing technology hub in the nation; connecting and empowering Arizona’s technology community.

Priority 1 Pathways A. Create and Articulate Member Value • How to make tech companies see AZTC membership as a “must have” • How to articulate the importance of initiatives to our constituents • What are all the ways we can influence that would create greater business opportunities for members • How to help members generate more business • How to refocus the events to drive our vision • How do we infuse youth into the council • How to articulate ROI for membership • How might we create services that our members rely upon to fulfill business functions • How to grow membership • How to make membership invaluable

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Arizona Technology Report

B. Attract, Create and Connect Innovation Capital • How to improve venture capital and entrepreneurial capital availability and connections between companies and investors • How do we raise more capital in Arizona • How might we facilitate connection of private equity with Arizona companies • How to enable capital attraction in Arizona equal to Austin, TX C. Build a World-Class Board of Directors and Maximize Its Impact • How to leverage a great board of directors • How to facilitate Arizona technology leaders becoming the community leaders to identify and develop the technology programs the state needs • How to more systematically engage board members in ongoing planning and impactful activities

during the next three years. Facilitating the process is Doug Reid, an expert in organizational development who specializes in creativity and innovation.

He has worked with a number of Fortune 500 companies in areas of leadership development and executive coaching. Reid currently serves as director of the Arizona Innovation Institute, a part of the Arizona Technology Council Foundation.

Applying a process he has used for more than 20 years in various situations, Reid led a series of meetings with Council board members and staff “to do strategic thinking together and come up with a plan” that features critical objectives. The idea was to set an agenda for only a three-year span instead of longer “because the world in changing so fast, he says. The Council “only has so many resources, so much time,” Zylstra says.

The first step was to create a compelling vision statement. Using a graphical exercise, the group drew a cloud representing the desired future state, or vision. Problems that need to be solved were listed below the cloud. To reach the desired future state, the problems were framed as questions starting with such phrases as How to. “When it’s framed as a

question, it invites new thinking,” Reid says.

Arrows drawn from the problems to the cloud represented the strategic pathways.

Needless to say, with a large group there were scores of questions to address. They were whittled down to a manageable set of nine strategic pathways. While “it’s hard to say one is more important than another,” Reid says, the pathways were divided into three groups to determine priorities.

“In many ways, the priorities were time-bound,” Zylstra says. Priorities were set to reflect how the long the board expected it would take to achieve outcomes: short-term (one year), mid-term (two years) and long-term (three years). “Five years is too long of a horizon,” he says. “Three years is optimal for our situation.”

Reid says it’s understood that some priorities will experience results sooner and some will be addressed simultaneously.

Council board members and staff will serve on committees that address the pathways.

“One of the objectives is to get the board engaged,” Zylstra says. “The board is dedicated to developing itself to be a worldclass board.”

Priority 2 Pathways A. Create, Attract, Develop and Retain Talent • How to attract talent to the state • How do we keep the top university graduates in our state • How to align all STEM initiatives • How might we help to improve STEM education • How to effect STEM education excellence in Arizona • How to improve match-up between K-12 and higher education curriculum with real market skill requirements.

B. Maximize Our Public Policy Impact • How might we have Arizona leadership more involved with AZTC • What are all the ways to improve the business environment for existing businesses • How to create a revenue benefit to being in Arizona C. Promote Our Technology Assets For Our Stakeholders • How do we get hold of critical success factors used by best-in-class technology hubs • How to influence technology firms’ relocation decisions • How we make use of social media and millennials to showcase Arizona nationally • How do we change world opinion about Arizona • How do we change Arizona brand to science and technology

aztechcouncil.org

The resulting visions statement and strategic pathways are presented here.

If any members would like to assist with areas that interest them, they can contact the Council at 602-343-8324.

• How to collect and disseminate the necessary information to help Arizona be recognized as a tech leader • What are all the ways that we can market Arizona as a premier tech location creating a draw to the state

Priority 3 Pathways A. Align and Collaborate With the Community To Achieve Our Vision • How to build community support to our vision • What are all the ways that we can connect and empower the tech community • How to have other groups help drive our initiatives B. Improve Technology Transfer Communication and Collaboration • How to improve tech transfer from our universities • How to simplify rules for tech transfer process from universities • How to harness a large number of universities to achieve tech C. Develop Sector-Based Cluster Initiative • How might we create silos to effectively devote attention to certain segments’ growth • How do we have sector support for our verticals • How might we create a toolkit to support new business startups or relocating businesses • How to create a world-class cluster initiative Arizona Technology Report

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Hometown Heroes Cities embracing the spirit of annual celebration

By Charlotte Hodel There’s a change going on and it’s picking up STEAM. Chandler, Tempe, Glendale and Scottsdale are examples of municipalities on the move with science, technology, engineering, arts and mathematics (STEAM) plus innovation. Following a trend arising in other states and a growing number of countries pushing the boundaries to move themselves ahead in the global marketplace, Arizona has created and embraced a way to celebrate this head of STEAM: the Arizona SciTech Festival.

Returning this month for its second year, the Festival offers a multitude of ways to get a close look at how municipalities in the state are reaching the most significant goals through community outreach projects. These are some examples of

offerings at this year’s Festival, which runs Feb. 9 through March 17.

The Chandler Science Spectacular created specifically to run during the Festival boasts three days of intense yet colorful and lively STEAM-related programs that attract and appeal to all ages. One such program the staging of a Tech Crawl

by local manufacturers and innovators to open their doors and provide an inside look at the work being accomplished, interactive demonstrations of the businesses’ day-to-day operations, and access to behind-the-scenes resources for career opportunities.

Tempe’s Geek Week and Geeks’ Night Out – the Science of Fun celebrates “smarts”! The events blend science, technology and fun to celebrate the Festival. With about 20 percent of the jobs in the city being tech-related, Tempe celebrates geeks. After all, the city’s view is geeks have cured diseases, built robots and yes, even helped get us to Mars. Being home to many geeks is a label that this city embraces!

Chocolate, Too!

The science of baseball will be explored when the Spring Training Festival returns as part of the Arizona SciTech Festival.

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Arizona Technology Report

For those with a powerful sweet tooth, Glendale’s Chocolate Affaire, the Science of Chocolate promises participants in the weekend signature event can expect much more than chocolatecovered bacon. Cerreta’s, Arizona’s own candy maker, sponsors the event, so its factory will be open for tours. The Feb. 8-10 event also will offer an innovative approach to learning about chocolate’s scientific properties through a number of experiments and activities. As an example of mixing fun with science, one presentation will be “Chocolate: Good Food, Good Medicine or Both?”

Attendees will learn which chocolates have been scientifically proven to

Schedule Highlights For details about these and other Arizona SciTech Festival events, go to azscitechfest.org.

Feb. 9 The Science of Ballistics and Armor (Scottsdale) Everything you ever wanted to know about firearms, rockets, and other ballistics! remedy some common diseases. Since only certain types of chocolate are beneficial, there will be a taste test of various cocoa concentrations to guess which are good for you and how much to eat to make chocolate a healthy part of your diet.

Baseball is not just for sports enthusiasts anymore when Scottsdale features its Spring Training Festival – The Mad Science of Baseball. This Feb. 16-17 event will integrate arts, culture, social science, bioscience, health and medicine, chemistry, physics, mathematics, technology and computer science. The Scottsdale Charros, City of Scottsdale, Society for American Baseball Research and the Arizona SciTech Festival bring in experts to explain what it’s like to experience a 100 mph baseball whiz by your field of vision as well as present debates and displays of baseball trends and innovations. The experiments and demonstrations are designed to engage fans of all ages and will be part of the larger celebration of baseball and Spring Training in the city.

These examples along with hundreds of other STEAM-related activities taking place during the Festival all point in the same direction: Arizona is a haven for world-renowned work, inventions and career opportunities, and all can be found in our own backyard! And the action’s not restricted to the Phoenix metro area. Other Arizona cities from Flagstaff to Tucson to Yuma are making strides as well and will offer proof during the Festival.

By understanding our state’s treasures and educationally equipping our workforce to fill the roles that are being generated by our competitive work base, Arizona will make its mark as a major and global competitor in science, technology, engineering, mathematics and innovation.

aztechcouncil.org

Feb. 15 Art + Science = Innovation Art Exhibition (Phoenix) Maricopa Community Colleges will present an exhibition of original artwork by students on the theme of science.

Carl Hayden Falcon Robotics Science Festival (Phoenix) The Falcon robotics team will be hosting another science festival! This year with more attractions and hands-on activities. There will be electric vehicles, fun demos with model rockets, robotics and more.

Feb. 17 Get a little bit louder now! The Science of Sound at MIM (Phoenix) Programs include a rare tour of Musical Instrument Museum’s Conservation Lab (for those over age 10) and a Gallery Walk, featuring the music and engineering of mechanical instruments. Other programs encourage you to discover unique electronic instruments, explore the science of sound with some hands-on experiments, and enjoy some great local music.

Feb. 27 Gears and Galaxies – NASCAR meets NASA, Featuring the NASA Night Rover Challenge Invention Experience (Peoria) A special event combining NASA and NASCAR! Meet a NASCAR driver and an astronaut, and participate in the NASA Night Rover Challenge Invention Experience.

March 12 Hands-on Healthcare: Blood, Spit and Tears (Glendale) Be a doctor, dentist or optometrist for the night! Experience Midwestern University’s hightech healthcare campus and try your hand at interactive activities in our medical, dental and sports vision simulation workshops.

March 13 Grand Canyon University Forensic Science Day (Phoenix) Witness a mock crime scene, listen to experienced speakers from forensic science fields and learn more about GCU!

March 13-17 Spark! Mesa’s Festival of Creativity Immerse yourself in a fantastic environment full of amazing things to see and do! Festival features include international performers incorporating original instruments, interactive technology and giant puppets; interactive projects in which the community helps build the art, including a giant Lego project, build-your-own instruments, and a community art installation made out of cardboard cores; and a large Rube Goldberg machine created by students of Arizona State University’s College of Technology and Innovation.

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Fueling the Future Competitions give students a head start on their tech careers Students who want to put the lessons of science, technology, engineering and math to work now rather than wait until they start their careers already are getting their chance, thanks to initiatives supported by the Arizona Technology Council Foundation.

The upcoming Arizona Middle School Science Bowl, Arizona Science and Engineering Fair and Intel International Science and Engineering Fair, which will be held this year in Arizona, offer outlets for young to showcase what they already know.

All competitions are open to the general public. Who knows? You may get a chance to see the birth of the next great idea.

Craig Barrett, former CEO of Intel, at a recent Intel International Science and Engineering Fair. Barrett is an ongoing supporter of the Fair.

Arizona Middle School Science Bowl March 9 9 a.m. to 5:30 p.m.

Arizona State University’s West Campus 4701 W. Thunderbird Road, Glendale For the seventh year in a row, middle school students statewide will come together for this fast-paced competition to solve technical problems and answer questions in all branches of science and math. The contest is a question-and-answer format similar to the television game show “Jeopardy.” The winners will go on to participate in the national Science Bowl in Washington, D.C. The Science Bowl provides an opportunity for science and technology professionals to become involved in shaping the workforce of the future. There are a number of positions open to volunteers: scorekeepers, timekeepers, moderators, science/rules judges, room proctors and liaisons between event officials.

Anyone wishing to participate as a volunteer should contact Ron Schott at 602-343- 8324, ext.109, or RSchott@AZTechCouncil.org. For more information, go to azsciencebowl.us.

Arizona Science and Engineering Fair Phoenix Convention Center 111 N. Third St., South Hall April 2 • Technology showcase • Judging for elementary (grades 5-6), junior (grades 7-8) and senior (grades 9-12) divisions • General session for teachers and parents April 3 • 9 a.m. to 3 p.m.: Public viewing (free admission) • 5 to 7 p.m.: Awards ceremony For more information, go to azsef.org.

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Arizona Technology Report

Intel International Science and Engineering Fair May 12-17 Phoenix Convention Center 111 N. Third St. The Intel International Science and Engineering Fair, a program of the Society for Science & the Public, is the world’s largest international, pre-college science competition. Each year approximately 7 million high school students around the world develop original research projects and present their work at local science fairs. Ultimately, 1,500 promising young innovators in grades 9-12 from 65 countries, regions and territories are invited to share ideas, showcase cuttingedge research, and compete for more than $3 million in awards and scholarships.

Awards include: • Gordon E. Moore Award “Best of the best” honor and a prize of $75,000 is awarded to the top Best of Category winner(s) for outstanding and innovative research as well as the potential impact of the work.

• Intel Foundation Young Scientists Award Two Gordon E. Moore Award runners-up in the Best of Category winners are awarded $50,000 each • Dudley R. Herschbach SIYSS Award Three finalists are selected to receive all-expenses-paid trips to attend the Stockholm International Youth Science Seminar, including attendance at the Nobel Prize ceremonies in Sweden.

• Intel ISEF Best of Category Awards Best of Category projects in the competition’s 17 categories receive $5,000 awards from the Intel Foundation. Grants worth $1,000 are awarded to the winners’ schools and affiliated fairs they represent.

• Intel ISEF Grand Awards The Intel Foundation provides Grand Awards for first through fourth places in each category. Awards range from $500 to $3,000.

For more information, go to www.societyforscience.org.

From the Beginning New committee targets startups and entrepreneurs It’s no surprise that sometimes the best idea is right under your nose. But for a new wave of entrepreneurism, the best opportunity can be where you already are. The intrapreneur, or inside entrepreneur, is finding that a large organization still can offer the environment to take a good idea all the way to market without the risks that can derail even the best creation.

What it takes to tap into mindset of an intrapreneur will be the topic in a session planned for March 18 at ASU SkySong, 1475 N. Scottsdale Road in Scottsdale. It is the first presentation of the new Startup & Entrepreneur Committee of the Arizona Technology Council.

The intent of the committee is to bring together early stage and growth-oriented technology companies in Arizona and build a new tech ecosystem through connecting and collaborating within existing organizations.

The committee’s focus is on two key areas: formation and resourcing. Formation includes opportunities for education and enrichment of entrepreneurs and key operators. Resourcing

provides entrepreneurs with information and connectivity to Arizona’s best resources for corporate partners, talent acquisition, promotion, services and funding, including mentoring and educational events.

Committee co-chairs are Mary Juetten, founder & CEO of Traklight, and Jerrod Bailey, vice president of business development, business development practice manager for Tallwave.

The meetings are held the third Thursday of the month. For more information about the committee, go to www.aztechcouncil.org.

High Flying Delegation heads east to share concerns with Congress Sometimes it’s not enough to wonder whether lawmakers on Capitol Hill are really listening. That’s why a delegation from Arizona Technology Council is joining peers from across the country to share the interests and goals of the technology industry in conversations with congressional leaders in Washington, D.C. Council President & CEO Steven G. Zylstra will lead the group when it participates Feb. 13 in the annual TechVoice DC Fly-In organized by TECNA, the industry national trade association, in partnership with CompTIA, a trade group advancing the global interests of IT professionals and companies. This will be the fourth year the Council will participate in the event.

Joining Zylstra will be Joel E. Barthelemy, founder and managing director of GlobalMedia Group; CEO Scott Salkin and President Rachel Salkin, co-founders of IDS Technology Marketing; Scott Selle, executive vice president of Nammo Talley; and Christopher J. Yoo, CEO of Yoo and Company.

The group will arrive Feb. 12 in time for a dinner to prepare for meetings with Congress the next day. The activities continue the evening of Feb. 13 with the TechVoice Champion Awards and end Feb. 14 with the all-day Tech Policy Summit.

As of press time, there were a few openings left for the trip.

Participants are responsible for flight and hotel expenses.

aztechcouncil.org

Registration is available at www.comptia.org but the Council asks that any additional participants RSVP to Leigh Goldstein, managing director, programs & events, at lgoldstein@ aztechcouncil.org because he will set up meetings with the Arizona members of Congress.

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Thursday, March 14, 2013 Scottsdale Hilton Resort & Villas Cost to Attend: AZTC, SME or ATMA Member, $40 Non-Member, $60 For more info, please visit

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Index Index by Name

Cramer, Pat, 18

Johnson, Melody, 52

Scopetti, Frank, 18

Aaron, Stacy, 35

Creedon, Angela, 50

Juetten, Mary, 22, 61

Selle, Scott, 63

Adams, Eric, 49

Fischler, Lory, 52

Kalaf, Linda, 48

Smith, Brad, 22

Bailey, Jerrod, 63

Fraley, Lee, 12

Kaufman, Ron, 31

Stanton, Greg, Mayor, 12

Barthelemy, Joel E., 63

Friedman, Marsha, 66

King Smith, Lynne, 22

Stephens, Nancy, 18

Bergman, Lorraine, 10

Garfield, Bob, 33

Levy, Doug, 33

Strunk, Sarah, 22

Brubacher, Joan, 14

Goodman, Bill, 52

Liker, Jeffrey K., Ph.D., 35

Sullivan, Bob, 66

Bryant, Georganne, 22

Graham, Erin, 10

Mariucci, Anne, 22

Taj, Torrie, 34

Bullock, Gregory, 35

Green, R. Kay, Ph.D., 40

Mark, Jay, 49

Tarascio, Billie, 12

Burns, Ursula, 22

Gruetzmacher, Patrick, 14

Mayer, Marissa, 22

Wagner, Jennifer, 52

Burridge, Linda, 18

Hardaway, Francine, 22

McBean, Bill, 38

Watson, Sandra, 20

Callaway, JoAnn, 33

Hillman, Amy, 22

Peterson, Suzanne, 22

Weintraub, Jay, 66

Callaway, Joseph, 33

Hocking, Dawn, 51

Reid, Doug, 58

Whalen, Jan, 47

Castro, Jennifer, 51

Hodel, Charlotte, 60

Renschen, Robin, 18

Wittstock, Denise, 34

Chipman, Stephen, 16

Hughes, Michael, 34

Robinson, Julie, 10

Wojcich, Joe, 49

Clark-Johnson, Susan, 9

Hunnicutt, Margaret, 50

Rosenberg, Arlene, 51

Yoo, Christopher J., 63

Cockerell, Lee, 33

Jakubek, Julie, 49

Salkin, Rachel, 63

Zylstra, Steven G., 57, 58, 63

Colangelo, Jerry, 22

Johnson, Magdalena, 52

Salkin, Scott, 63

Index by Company

Del Webb Corporation, 22

National Bank of Arizona, 68

Traklight.com, 22, 63

1-800-Got-Junk?, 8

Delta Dental, 29

New Angle Media, 37

United Healthcare, 30

5 Arts Circle, 4

Driver Provider, The, 21

New Leaf, A, 34

UP! Your Service, 31

Ahwatukee Foothills Chamber of Commerce, 36

Economic Club of Phoenix, 36

North Phoenix Chamber of Commerce, 36

Veolia Transportation Tempe, 48

Alerus Bank & Trust, 17

EMSI Public Relations, 66

Omas, 42

W. P. Carey School of Business, 18, 22

Fennemore Craig, 22

Omni Hotels & Resorts Tucson, 67

Waste Management, 55

Ford Motor Company, 38

Our-Mentors, 38

Wells Fargo, 15

Frances, 22

Peoria, City of, 37

West Valley Women, 36

FSW Funding, 56

Petite Maison, 44

WhalenVoice, L.L.C., 47

GateWay Community College, 22

Phoenix Children’s Hospital, 34

Women of Scottsdale, 37

GlobalMedia Group, 63

Phoenix NAP, 12

Xerox, 22, 31

Google, 31

Professional Employment Solutions, Inc., 10

Yoo and Company, 63

Grant Thornton, L.L.P., 16

Range Rover, 42 Resolute Commercial Services, 14

Zinc Bistro, 44

Greater Phoenix Chamber of Commerce, 36

RKG Marketing Solutions, 40

Growth Nation, 37

Rosenberg Group, The, 51

Häagen-Dazs, 31

S.T. Dupont, 42

Henry & Horne, 49

SCF Arizona, 3

Holmes Murphy, 4

Scottsdale Area Chamber of Commerce, 36

Alliance Bank of Arizona, 2, 12 Allstate Insurance, 49 AlphaGraphics, 49 American Express OPEN, 22 American Society for Quality, 35, 37 Apple, 31 Arizona Board of Regents, 22 Arizona Commerce Authority, 20 Arizona Hispanic Chamber of Commerce, 36 Arizona Small Business Association, 36 Arizona State University, 9, 18, 50 Arizona Technology Council, 36, 57, 64 Arizona Wealth Management, 37 AT&T, 13 Avnet, Inc., 18, 46

Grand Canyon University, 51

Honeywell, 18 IDS Technology Marketing, 63

Scottsdale Business Institute, 45 Smeeks, 22

C-Span, 12

Institute for the Study of Coherence and Emergence, 12

Snell & Wilmer, 12

Caliente Construction, Inc., 10

Jani-King Southwest, 10, 17

Southwest Airlines, 49

Capital Review Group, 14

L.L. Bean, 31

Cartier, 42

LAI International, 14

Southwest Valley Chamber of Commerce, 36

Cassidy Turley, 27

Leap Innovation, 37

Catalyst, 22

Maricopa County Attorney’s Office, 8

Center for Entrepreneurial Innovation, 22, 35, 37

McBean Partners, 38

Centers for Habilitation, The, 51

Mesa Chamber of Commerce, 36

BBVA Compass, 43

Central Bistro, 44 Central Phoenix Women, 36 Chandler Chamber of Commerce, 36 Changi Airport, 31 CompTIA, 63 Coup des Tartes, 44 Cox Business, 11 Dave & Buster’s, 51

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McCarthy Building Companies, Inc., 18 Microsoft, 31 Modern Law, 12 Montblanc, 42 Morgan Stanley Smith Barney, 52 Morrison Institute for Public Policy, 9 msnbc.com, 66 Nammo Talley, 63 National Association of Women Business Owners, 36

Statera, 49 Stealthmode Partners, 22 Stearns Bank, 7 Stoney-Wilson Business Consulting, 21 Surprise Regional Chamber of Commerce, 36

Zappos, 31

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Tallwave, 63 Tarascio Law Group, 12 TECNA, 63 Tempe Camera, 49 Tempe Chamber of Commerce, 36, 47 Tempe Schools Credit Union, 50 TicketForce, 22

F e b r u a r y 2013

65

Roundtable

A Candid Forum

Online: Honest Businesses vs. the ‘Fakeosphere’ Build an online presence that passes the crucial truth test

by Marsha Friedman The fastest-growing marketing trend on the Internet is the “fakeosphere.”

Yes, fake blogs (called “flogs”), fake Web news sites and fake testimonials. They look like the real thing, right down to comments posted by “bloggers” and their supposed readers. Those comments appear to be written by people discussing the pros and cons of a particular product or service, and they even include some naysayers.

“But in the end, the bloggers and their readers always win over the skeptics and persuade them to buy the product from a convenient nearby link,” writes Bob Sullivan in his blog on msnbc.com. He cites Internet marketing analyst Jay Weintraub, who believes the fakeosphere has become a $500-milliona-year industry. These fake sites and phony conversations are often more than simply misleading — OK, fraudulent — marketing. For consumers, they can be downright dangerous.

“The end game for most of these sites — no matter what they sell — is to persuade a consumer to sign up for a ‘free’ trial of a product, then make it incredibly difficult to cancel before the trial period ends,” Sullivan writes. “A similar technique ... is to offer a free product and charge a Web user a token shipping and handling fee, just to get the consumers’ bank account information. Larger charges soon follow.”

To look like the real deal rather than a potential cyber threat to an increasingly wary consumer population, here are some ways a business can ensure it passes the reality test — and some missteps that would ensure it didn’t.

On a Website Real people have text that informs and entertains users while offering them helpful information. The copy is professionally written — no typos or other mistakes — and provides answers to anticipated questions. It’s easy to learn more about a business and to find contact information. Testimonials are from real people whose existence can be verified

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through a simple Internet search. They write blogs that are updated regularly and/or post articles with helpful information.

Fake people have websites with lots of pop-up advertising banners and text urging users to “Buy my product!” Testimonials are from untraceable people with vague titles or credentials. The site may be hard to navigate; contact information may be missing or difficult to find; and there’s no link to media about the person or company.

In a Newsletter Real people share valuable information in their newsletters (which can be as minimal as a “tip of the week” email). Their newsletter includes no overpowering sales pitch or selfpromotion — or, at least, includes that only occasionally. It conveys a personality, whether warm and friendly, authoritative, or humorous.

Fake people blast newsletters and promotional emails that may identify a problem but offer as the only solution hiring them or buying their product. They may seem unprofessionally written (errors, etc.) and lack personality. They offer nothing of value to the reader.

On Social Media Real people have real friends and family among their connections. They can’t resist sharing photos of their vacation, the newest baby in the family and their genius dog (not necessarily in that order). They have interests that may have nothing to do with what they’re

trying to market, and they comment about them (“I shot a hole in one today!”) or share a photo (“Here I am buying everyone drinks after my hole in one today.

That was the most expensive golf shot ever!”).

They also respond to all comments, even if it’s just to say, “Thank you.”

Fake people generate mostly sales copy (“Buy my product! It’s great!”). They don’t engage in conversation and they don’t appear to have a personality — or friends or loved ones or hobbies, for that matter.

All of these things will help create an online personality that conveys authenticity.

But the No. 1 thing a business can do is to actually be genuine.

Whatever it is that led a person to start a business is what makes that businessperson genuine. Identify it and make it a part of the online message, and no one will ever call that business a fake.

Celebritize Yourself: The 3-Step Method to Increase Your Visibility and Explode Your Business celebritizeyourself.com

Marsha Friedman, author of Celebritize Yourself: The 3-Step Method to Increase Your Visibility and Explode Your Business, is a 22-year veteran of the public relations industry and the CEO of EMSI Public Relations (www. emsincorporated.com), a national firm that provides PR strategy and publicity services to corporations, entertainers, authors and professional firms. She can be heard weekly on her Blog Talk Radio show, EMSI’s “PR Insider”.

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