FEB. 2014
Valley’s Most Comprehensive Guide for Corporate Events
Are Teams
Obsolete? Manage Distracted
Employees SCF Stronger as CopperPoint Mutual
Power Lunch By the Numbers Business Calendar $4.95 INBUSINESSMAG.COM
This Issue Meetings & Conventions Guide
is becoming
Their name is changing, but their team is still committed to providing the great customer service and workers compensation insurance expertise you’ve come to expect. Make CopperPoint a part of your team. Call 602.631.2600 or 800.231.1363 and put CopperPoint to work for you.
Arizona
Point
is becoming
Mutual Insurance Company
602.631.2600 | Get a Quote 1.888.706.4070 | En espaĂąol 602.631.2302 | copperpoint.com
February 2014
Are you prepared for the unexpected risks of business travel?
www.inbusinessmag.com In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce. Partner Organizations
Rick Murray, CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com
WorldWide Air AmbulAnce membership
Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 • www.aztechcouncil.org
ENROLL TODAY MEMBERSHIPS START AT $100 Call (855) 612-4016 www.TAPglobal365.com/inBUSINESS
Key Man | executive Benefits | RecRuiting | Retention
Jackie Wszalek, President NAWBO Phoenix Metro Chapter (602) 772-4985 • www.nawbophx.org
*Travel Assurance Promise™ is not insurance. Angel MedFlight is the exclusive worldwide air ambulance provider. See terms and conditions.
Rick Kidder, President & CEO Scottsdale Area Chamber of Commerce (480) 355-2700 • www.scottsdalechamber.com
Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 • www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.
Associate Partners Ahwatukee Foothills Chamber of Commerce www.ahwatukeechamber.com Arizona Chamber of Commerce & Industry www.azchamber.com Arizona Hispanic Chamber of Commerce www.azhcc.com Chandler Chamber of Commerce www.chandlerchamber.com Economic Club of Phoenix www.econclubphx.org Glendale Chamber of Commerce www.glendaleazchamber.org Greater Phoenix Black Chamber of Commerce www.phoenixblackchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce www.gpglcc.org Mesa Chamber of Commerce www.mesachamber.org North Phoenix Chamber of Commerce www.northphoenixchamber.com Peoria Chamber of Commerce www.peoriachamber.com Westmarc www.westmarc.org
4
F e b r u a r y 2014
inbusine ssmag.com
Contents
February 2014
18
Entrepreneurs & Innovators: How Franchise, Invention & Technology Propel Our Economy From interviews with individuals in a variety of fields, including those following their passion to create something new as well as business leaders whose programs provide assistance or instruction to help these businesses succeed, Don Rodriguez looks at where this development activity may be taking our economy. Departments
9 Guest Editor
Bob Parsons, founder and executive chairman of GoDaddy and founder and CEO of YAM Worldwide, introduces the “Entrepreneurs & Innovators” issue.
Features
14 CopperPoint Mutual Emerges from
10 Feedback
SCF Arizona
CEO Don Smith discusses with RaeAnne Marsh the company’s background and future, and how its broader scope of activity promises a more vital insurance company.
Noted business and community leaders William Brennan, Jack Eberenz and John Leonesio respond to IBM’s burning business question of the month.
24 Manage Distracted Employees
11 Briefs
Distractions may be sapping employees’ productivity, and Marty Martin, Psy.D., suggests ways to evaluate whether the employee may be the victim rather than the problem.
24
32
“Beacon Technology Application: Service Tool with Money Stream,” “Head Start for Start-ups,” “Get Local and Compare,” “Don’t Track Me,” “Be FlightAware,” “Medical Dispensing System Gets Boost from Marijuana,” “Amateur Sports League Follows NBA Business Model” and “Subscription Model Makes the Cut for Barbershop”
13 By the Numbers
AMEX OPEN Success Index quantifies advantage of positive attitude in business success.
32 Are Teams Obsolete?
Glenda Eoyang, Ph.D., describes how coordinated adaptive action networks are replacing this traditional mainstay of business.
View from the top looks at Oregano’s founder Mark Russell’s recipe for the restaurant’s success.
25 Books
Special Section
37 In Business Magazine
It ’s Al Uniq l Abou t Be ue & Crea ing tive
Prese
nts
Meetings & Conventions Guide
Vall
ey
New releases offer the latest best practices in management.
and bottom),
26 Nonprofit Photos courtesy DeFalco of ’s Italian Z’Tejas Southwe Eatery, Grocery stern Grill (left, top & Deli (right)
The Valley’s most comprehensive guide to events venues in the Metropolitan Phoenix area
16 Trickle Up
A Gui
Elegant Tables & Ballroom
de to
Secti
Your
Next
Great
on Spon
Even
Events
t
sor
100 Club of Arizona Girl Scouts–Arizona Cactus-Pine Council
30 Legal
Local attorneys share insight on “free speech” issues that may confront businesses through online media.
34
34 Assets
2014 BMW X5 xDrive50i Plus: Advances in technology to process point-of-sale purchases
36 Power Lunch
Z’Tejas Southwestern Grill Plus: Local stand-outs on “Diners, Drive-Ins and Dives”
50 Roundtable
Make the most of the growing trend of stakeholders pushing a social responsibility agenda. On The Agenda
27 Spotlight
Urban Land Institute Real Estate Trends Day Glendale Chamber of Commerce Dinner & State of the City Address
28 Calendar
Business events throughout the Valley
State-of-the-art Presentations
Impressive Locations: W Scottsdale
6
F e b r u a r y 2014
inbusine ssmag.com
Because differences matter.
TM
Understanding what makes you unique.
TM
www.swlaw.com DENVER | LAS VEGAS | LOS ANGELES | LOS CABOS | ORANGE COUNTY | PHOENIX | RENO | SALT LAKE CITY | TUCSON SNELL & WILMER | ONE ARIZONA CENTER | 400 EAST VAN BUREN STREET | SUITE 1900 | PHOENIX, AZ 85004
February 2014 • Vol. 5, No. 2
Publisher Rick McCartney
Editor RaeAnne Marsh
WEDnESDAy, APRIL 30, 2014
The New Healthcare
INSURANCE, PREVENTION & YOUR BOTTOM LINE
Hear from the experts:
Health Insurance Companies – Healthcare Providers Health Benefits Consultants – Legal & Financial Experts Medical Marijuana Implications & Workplace Safety This is the most comprehensive event on the subject. As business owners and managers, it is important to get informed, forge partnerships and make Healthcare a true benefit to your employees and to your Bottom Line!
Art Director Benjamin Little
Contributing Writers
Glenda Eoyang, Ph.D. Mike Hunter Marty Martin, Psy.D. Don Rodriguez Kristian Seemeyer
Photographer-at-large Dan Vermillion Advertising
Operations Louise Ferrari
Business Development
Chris Bowers Louise Ferrari Alex J. Goff Brock Gorubec Craig Jeffries Maria Mabek Sara May Katie Pacioni Kelly Richards Cami Shore
More: Visit your one-stop resource for everything business at www.inbusinessmag.com. For a full monthly calendar of business-related events, please visit our website. Inform Us: Send press releases and your editorial ideas to editor@inbusinessmag.com.
SAVE THE DATE: WEDnESDAy, APRIL 30, 2014 11:30 a.m. Registration & VIP Reception 11:50 a.m. – 1:30 p.m. Lunch & Panels
Individual Lunch: $65 Sponsor Table of 10: $1,000 Corporate Sponsorships Available For more information: Phone: 480-588-9505 x213 Email: info@inbusinessmag.com
Register today at inbusinessmag.com 8
F e b r u a r y 2014
President & CEO Rick McCartney Editorial Director RaeAnne Marsh Senior Art Director Benjamin Little Financial Manager Donna C. Mitchell, CPA Office Manager Matthew D. Whitmire
Corporate Offices 6360 E. Thomas Road, Suite 210 Scottsdale, AZ 85251 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com Vol. 5, 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. © 2014 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.
inbusine ssmag.com
Bob Parsons, Founder & Executive Chairman, GoDaddy
Guest Editor
Entrepreneurial Power
Bob Parsons founded GoDaddy in 1999, and currently holds the position of executive chairman. He is also CFO and founder of HarleyDavidson of Scottsdale, Spooky Fast Customs, Scottsdale National Golf Club and YAM Capital, among a number of other businesses. Parsons’ first endeavor was Parsons Technology, a software company he started in his basement in 1984 and which sold to Intuit, Inc. in 1994 for $64 million. Among his business awards is the 2013 Visionary Award in the Greater Phoenix Area. He is a U.S. Marine Corps Vietnam veteran and a recipient of the Combat Action Ribbon, Vietnamese Cross of Gallantry and Purple Heart Medal. In 2012, Parsons and his wife founded The Bob & Renee Parsons Foundation, which has awarded more than $30 million to charitable organizations.
One of Arizona’s economic strengths is its wealth of entrepreneurial activity. In fact, our state ranks among the highest in the nation for start-up enterprises. Businesses span the gamut from service to high-tech. Entrepreneurs from all walks of life start and develop businesses, feeding our economic engine with the fuel it needs to grow. This entrepreneurial activity provides much-needed job creation and development activities within our communities, ensuring sustainability and continued growth. As capital markets continue to open up and access to funding becomes more readily available, communities with strong entrepreneurial drive, such as the Greater Phoenix area, will further benefit from a surge in investments and innovation. However, no longer limited by geographical boundaries, business models must be creatively adapted and scaled to suit the ecosystem that best fits it. As the title of this issue’s cover story, “Entrepreneurs & Innovators: How Franchise, Invention & Technology Propel Our Economy,” clearly implies, a big part of our economic development stands on the vision and energy of individuals taking the risk to follow their passion and start their own company. Don Rodriguez spoke with individuals in a variety of fields, some who are building their business around an idea of their own creation and some who are taking advantage of the experience of a franchise operator, as well as business leaders whose programs provide assistance or instruction to help these businesses succeed. From their input, the article looks at where this development activity may be taking our economy. Other articles deal with such management and human resource issues, as distracted employees, and the advantages of a “coordinated adaptive action network” over the traditional team approach to projects; strategies for working with sales leads; and how social responsibility is increasingly a concern in corporate boardrooms. Regular features include Trickle Up, which in this issue spotlights Mark Russell, the man behind the success of Valley restaurant Oregano’s; Nonprofits, who benefit from the support of our business community; and Power Lunch, for a well-rounded business day. And in a special section, “Meetings and Conventions,” this issue provides a resource for businesses planning their “next great event.” I’m pleased to welcome you to the February issue of In Business Magazine. Sincerely,
Connect with us: Bob Parsons Founder & Executive Chairman of GoDaddy Founder & CEO of YAM Worldwide
inbusine ssmag.com
Business Events/Connections: businessevents@inbusinessmag.com Marketing/Exposure: advertise@inbusinessmag.com
New Economy We looked at what made our entrepreneurial spirit thrive in these past few years and noted that franchise growth, unique invention and technology have played a great role in changing the way cities and economic development officials are working to create jobs and leverage economic growth. With regions competing for big business and corporate growth, many of the successes are
Story Ideas/PR: editorial@inbusinessmag.com
being found in these areas. Our cover story by Don Rodriguez digs into this topic and bring to the forefront some interesting and anecdotal findings. We want to thank Bob Parsons for his help on this issue and in working with In Business Magazine. He is a true friend to small business and an advocate of some of the new and innovative tactics to building business
Or visit us online at www.inbusinessmag.com
success these days. A strong example for those young in their business efforts, Bob’s story is clearly serving as inspiration and his local efforts to encourage economic development are helping to make a difference in Arizona and the Valley. —Rick McCartney, Publisher
F e b r u a r y 2014
9
Feedback
Valley Leaders Sound Off
Executives Answer What was the one thing about your initial concept or product that made franchising a good option?
William Brennan
Jack Eberenz
Co-founder and CEO Kalologie Sector: Health & Wellness
Chairman of the Board Precision Holdings of Brevard Sector: Home Repair
Kalologie is a word that, translated, means “aesthetics.” Our company, Kalologie 360 Spa, focuses on spa services in the aesthetics industry. We offer an array of membership-based spa services that include massage and facials, and we manufacture the award-winning Kalologie Skincare line of products. Traditional growth in the retail/service space can be capital-intensive. Because Kalologie is a product manufacturer, economies of scale are particularly important to us. As a result, franchising provides a tremendous growth platform for us to leverage. Our regional developers contract with us to develop territories throughout the United States. As with most franchise systems, franchisees incur the cost to build out and operate franchise locations, which creates an opportunity for accelerated growth. And, unlike hired senior and middle managers at most corporate-owned chains, franchisees of a franchise system are true stakeholders. Their investment helps facilitate an alignment of interests with a franchisor. For Kalologie, this has yielded a stronger commitment to our longterm growth objectives while mitigating the need for cumbersome outside investors or burdensome debt financers.
When Precision Door Service (Precision Holdings of Brevard, Inc.) started 12 years ago, we envisioned a national company that would consolidate a highly fragmented business in repairing garage doors. The idea was to bring fast, professional service to major metropolitan markets. To be successful, we felt we needed rapid market penetration (a nice way to say “fast growth”), and franchising was chosen primarily for this reason. By finding highly qualified franchisees to manage each market, we were able to greatly decentralize control and save overhead while adapting quickly to local market conditions. The results have been a national company repairing more than $100 million in garage doors a year — that is more than 1,000 garage doors every day. Most of our franchisees run companies with several million dollars in revenue and many of them could not repair a garage door if they tried. Their job is to run a quality company and hire professional technicians that repair doors to Precision Door standards.
Kalologie 360 Spa kalologie.com
William Brennan is co-founder and CEO of Kalologie. Formerly an executive with a leading Los Angeles-based investment banking firm, he is experienced in the areas of investment banking and private equity financing. An entrepreneur, Brennan co-founded MusicNow, the Internet’s first online-recorded music promotion company, which was acquired by CDnow; the combined company went public on NASDAQ. Brennan holds an MBA from Harvard Business School and a Bachelor of Science, magna cum laude, in Finance from Virginia Polytechnic Institute & State University.
John Leonesio Chairman of the Board The Joint Corp. Sector: Healthcare I am motivated by finding unique business niches that fill a void for the consumer and provide recurring revenue for the franchisee. I enjoy identifying products and services not readily available and providing for their delivery within a turn-key system. In the health club industry, we did this by offering extended hours, child care and other conveniences not found elsewhere. With Massage Envy, we transformed massage from elite and expensive to a membership-based delivery system that made it affordable and convenient for most everyone. The Joint…the chiropractic
10
F e b r u a r y 2014
Precision Door Service precisiondoor.net
Jack Eberenz is chairman of the board of Precision Holdings of Brevard, Inc. and a nationally known franchise consultant. He is manager of Integrated Franchise Partners, an outgrowth of Franchise Integration (www.franway.com), with clients from coast to coast. He is often identified by his tag line, “If someone says ‘Franchising’ you say ‘Call Jack.’”
place replicates the Massage Envy model, making chiropractic accessible so people can take control of their own health. The Joint doesn’t take insurance, so decisions about care remain between the patient and doctor — where they should be. I believe this is the way of the future for health services. RedLine Athletics goes back to my health club roots but focuses on training young athletes to hone their skills in competitive sports. I believe there will always be a business that can be modified or developed within this successful franchise model. The Joint…the chiropractic place thejoint.com RedLine Athletics redlineathletics.com
John Leonesio has more than 40 years’ experience in the health, wellness and franchise industry, which includes Scandinavian Health Spas (co-founded and sold to Bally’s) and The Q, the Sports Club (co-founded and sold to 24 Hour Fitness). In 2002, Leonesio founded Massage Envy, taking it in six years from concept to a $300-million operation with more than 800 licenses awarded. As CEO, he took The Joint…the chiropractic place from a wavering concept to nearly 500 units in three years.
inbusine ssmag.com
Quick and to the Point
SightCompass was conceived as a solution for blind and visually impaired individuals needing to navigate in unfamiliar locations. But in the short time since beginning to build the technology — in 2011 — founders Briggs Cunningham, Ken Hirsch and Steve Lippert have identified much broader application in the marketplace, with tremendous revenue-generating potential, and are rebranding the company as World Beacon Technologies, with SightCompass a subsidiary. The SightCompass tool uses audio signals to provide a detailed map of an environment. “We are bringing it into stadiums, malls, workplaces — places the blind visit outside of the schools that have already bought into this concept,” says CEO Lippert about the technology that enables them to map out any site and feed that information to the user on his or her smartphone. Being text-based, it can also accommodate hyperlinks, photos, “any kind of data we can put in this field,” Lippert says. In a stadium, for instance, in addition to mapping out the entire facility for the blind and visually impaired, it makes available a convenience the stadium can also offer sighted patrons: They can place an order for food and pay for it from their seat, creating a different money stream for the stadium and a different experience for the patron. Malls, where the interest had been lukewarm when the men had tried to show how their technology would bring more visually impaired people to shop and spend their money, showed excitement about the tool enabling them to do real-time
Visualize This
marketing to people in its proximity. “It’s a push of information, versus responding to people looking for information,” Lippert says, explaining the advantage. Among other applications, the technology can provide information translated in different languages, useful in situations from transit stations to restaurants. Lippert recently met with the mayor of Park City, Utah, and says the mayor “sees the ability to map out the whole city in the major languages spoken there as a big deal.” Relating that his company had to wait three weeks for Apple to catch up with them so they could build a back end to make their technology fit Apple’s phones, Lippert notes that beacon technology is one of the fastestgrowing technology industries and that his company — with its tool invented, created and manufactured here in Arizona — is the only one with a product in the marketplace at this moment. —RaeAnne Marsh World Beacon Technologies WorldBeacon.com
Bytes Get Local and Compare Founded in 2011, Locality is a service that businesses can use to create an online profile and publish their company information for free to be accessed by services worldwide. Locality.com provides comprehensive pricing and store hours and information for more than 60 local service types in 10,000 cities across the U.S. Consumers can find and compare services like hair salons, manicure salons and dry cleaners just as easily as they can compare flights on Kayak or products on Amazon. locality.com
Don’t Track Me From a Chicago-based technology company whose mission is to make mobile call management more efficient, CallSnap is a new Android application that provides call recipients the chance to prove that “a picture’s worth a thousand words” by responding instantly to an incoming call with a photo rather than a message. The Android app is was created to fill the growing interest by people to avoid leaving a trail of their actions online; more people are using applications like the new Instagram Direct or CallSnap whose technology cannot be tracked. callsnapapp.com
Be FlightAware FlightAware, the world leader in flight tracking, offers the only free flight tracking/flight status app for a personal electronic device.
Seeing Is Believing
The app is rated as one of the
Head Start for Start-ups
cancellations. It also tracks charter
Mastery Media Marketing recently broadcast the
first episode of “Behind the Business Card,” which focuses on introducing entrepreneurs to the show’s concept of educating start-up business owners by sharing stories from those who have built successful businesses, as well as by sharing strategies, tips and information on how to become the “go to” expert and authority in their field. behindthebusinesscard.com
inbusine ssmag.com
best and tracks all airline flights, gate information, delays and and private aircraft, and uses GPS to see nearby aircraft flying overhead. flightaware.com
Go online for more! Visit our “Briefs” link online.
F e b r u a r y 2014
11
Photo courtesy of NextFort
Beacon Technology Application: Service Tool with Money Stream
Briefs
Briefs
Quick and to the Point
Medical Dispensing System Gets Boost from Marijuana
Amateur Sports League Follows NBA Business Model
The emerging and high-profile marijuana industry — medical and otherwise — has provided a big boost to a company whose technology was initially patented for broad-scope use across the traditional pharmaceutical industry. Medbox is a biometrically controlled dispensing and storage system into which pharmacy staff places the prescribed drug and from which the patient retrieves it after paying and verifying identity at an ATM-style kiosk. The system “was tailored to fit the many rules of the marijuana legislation in California, to be the most compliant way to operate,” says CEO Bruce Bedrick, M.D. “That got us a name and a foothold.” And, he adds, because people looked to them for their expertise — based on having the technology — “we became medical marijuana consultants to the industry.” Bedrick, a Scottsdale physician who had been a licensee of the system, became CEO of Medbox in 2011 and helped take the company public. A year later, after the states of Colorado and Washington passed a recreational marijuana law and the Wall Street Journal ran a story on Medbox, the company saw its stock price jump from $2-$4 per share to $215 per share. In addition to dispensing the prescriptions, the system can generate coupons and other promotional reminders, offering retailers targeted marketing opportunities. “The technology is focused on retail pharmacies, and can fully integrate into what they’re doing,” says Bedrick, who describes the company’s current connection to marijuana dispensing as “priming the pump and laying the foundation to make headway in traditional pharma.” —RaeAnne Marsh
Calling it a “grassroots marketplace,” Jamar Johnson is bringing to Phoenix his concept of Community Basketball Leagues as a platform that connects amateur basketball players and sports-related marketing opportunities for small businesses. Basketball has always been his passion, says Johnson, who went to college on a basketball scholarship and played professionally although not making it to the NBA. He conceived the concept for his Community Basketball Leagues in 1996 and realized the business in 2008, modeling the organization after the NBA while building the model on amateur players, who, he says, number 30 million in the United States. Offering businesses an opportunity to market and brand themselves with a team while providing a program to help young athletes, Johnson launched CBL in his hometown of Elkhart, Ind., and expanded the next year to six more cities. CBL is structured to have different revenue generators: players registration, sponsorship, apparel sales, admission and concessions. In addition to the games, CBL produces a magazine and a podcast. Businesses or individuals interested in becoming owners can license a team for 12 months, and share in the profits generated by their team. Johnson relies on existing CBL participants to help expand the leagues. He holds a weekly conference call with players and owners to keep everyone informed as to what’s happening in the organization, and encourages them to spread the word to friends in other cities. “We go where there’s demand,” he says, explaining players can go to the CBL website to register for a team. “When we see registration, we know there’s demand.” The next step is to secure sponsors for the teams. The CBL program includes youth and adult leagues, welcoming men and women. With registration currently filling 11 teams in the Phoenix area, Johnson hopes to launch CBL here when the season begins in May. —RaeAnne Marsh
Medbox Inc. thedispensingsolution.com
Community Basketball Leagues cblhoopsusa.com
The concept of a subscription-based barbershop is modeled on NetFlix, according to co-owner Josh Thorsvik, who explains it works because it’s something people “want
12
F e b r u a r y 2014
more of.” In fact, it was the business model itself that came first, and then “we considered what types of business would fit.” Thorsvik and Jacob Meltzer, already business partners with a Liberty Tax franchise, decided haircuts was the answer, and focused on men because it is a demographic “we could understand.” Keep It Cut offers different levels of subscription, from haircuts only to haircuts and wash and grooming. Clients can come in as frequently as they wish for the monthly fee, says Thorsvik, sharing that one client comes in every four days. “People can come in lastminute for a date, holiday picture, or if the boss is coming to town.” Thorsvik and Meltzer opened shop this past September, and gave free haircuts that month
to get people to try it. “We had 100 people sign up who had never heard of us; who just came in off the street,” Thorsvik relates. “That was encouraging. This was one of those things that, on paper, sounded great, but you never know how it’ll be received.” Finding the right location was crucial. Says Thorsvik, “There’s not a tax place on every corner, but there are barbershops all over town.” The shopping center at Indian School Road and 28th Street appealed because they are promoting themselves as a local business and the Arcadia area is one they had identified as supportive of local enterprises. —RaeAnne Marsh Keep It Cut keepitcut.com
inbusine ssmag.com
Photos courtesy of Medbox Inc. (top); Keep It Cut (bottom)
Subscription Model Makes the Cut for Barbershop
Metrics & Measurements
Success Follows Attitude
2013 Small Business Success Index The index evaluates attitudes of “high achievers,” “strivers,” “sustainers” and “strugglers” to reveal formula for entrepreneurial achievement. The four entrepreneurial levels represent scoring ranges on the Success Index.
inbusine ssmag.com
Strugglers (0-40)
Sustainers (41-60)
Strivers (61-80)
High Achievers (81-100)
Business owners who have a positive view of the business environment generally are more successful, according to a study released last month by American Express. “This is proof that business owners who are zeroing in on positive aspects are having the greatest success,” says Alice Bredin, small business advisor to American Express OPEN. The Success Index was developed based on responses to questions regarding business growth and characteristics proven to be emblematic of high-performing entrepreneurs. Based on a 100-point scoring scale, four distinct levels emerged: “strugglers” (scoring 0-40 points), “sustainers” (scoring 41-60 points), “strivers” (scoring 61-80 points) and “high achievers,” who scored highest on the Index (81-100 points). The Index underscores the value of attitude, identifying the ingredients for being a “high achiever” entrepreneur and indicating a formula for entrepreneurial success. In the area of economic improvement, a full 93 percent of high achievers have a positive view of the economy, and the percentage who share that view drops in step with the level of optimism: 71 percent of strivers have a positive view of the economy, 46 percent of sustainers and 34 percent of strugglers. Regarding revenue, 87 percent of high achievers say revenues will increase over the next six months, compared to 53 percent of strivers, 32 percent of sustainers and 32 percent of strugglers. Among other key findings, 66 percent of high achievers say they will offer employee bonuses/raises, compared to 42 percent of strivers, 37 percent of sustainers and 24 percent of strugglers. Fifty percent of high achievers say employee morale has improved since last year, compared to 30 percent of strivers, 12 percent of sustainers and 13 percent of strugglers. Regarding social media use, the numbers don’t flow in exact accord with attitude, but high achievers still demonstrate the strongest attitude: 72 percent of high achievers use social media for business, compared to 54 percent of strivers, 42 percent of sustainers and 47 percent of strugglers The American Express OPEN Small Business Monitor, released each spring and fall since 2002, is based on a nationally representative sample of small business owners and managers of companies with fewer than 100 employees. The “Small Business Owner Success Index,” created as part of the Monitor, takes into account tangible measures of business growth as well as the business owner’s mindset in the way they approach the success of their business.
Small Businesses Overall
American Express OPEN identifies the ingredients of being a ‘high achiever’ entrepreneur by RaeAnne Marsh
By the numbers
Have a positive view of the economy
56%
34%
46%
71%
93%
See the glass as “half-full”
87%
85%
84%
90%
96%
Plan to grow
72%
61%
69%
77%
87%
Have a greater appetite for risk
35%
32%
30%
38%
50%
Have capital investment plans
54%
51%
48%
57%
71%
Have cash flow concerns
52%
62%
57%
40%
52%
Over next six months feel confident revenues will increase
43%
25%
32%
53%
87%
Have a business mentor
38%
36%
36%
39%
47%
Have hiring plans
35%
32%
28%
41%
47%
Say employee morale has improved
22%
13%
12%
30%
50%
Will promote employees
19%
11%
14%
20%
45%
Will offer raises/bonuses
39%
24%
37%
42%
66%
Outlook
Hiring and Employees
Connecting with Customers and Boosting Demand Provide excellent customer service
90%
89%
91%
88%
95%
Offer discounts
48%
43%
47%
50%
57%
Offer loyalty rewards
25%
20%
26%
22%
39%
Offer differentiated products/services
36%
41%
36%
30%
47%
Use feedback to improve products/ services
94%
88%
95%
95%
97%
Ask for advice on new products and services
9%
36%
51%
51%
60%
Ask for new client referrals
65%
61%
64%
67%
73%
Ask for advice on how to better service them
65%
49%
65%
71%
79%
Ask for positive reviews on relevant review sites and social media
33%
25%
31%
34%
50%
Using Social Media for Their Business Use social media
50%
47%
42%
54%
72%
Use it to attract new customers
71%
70%
68%
72%
75%
Use it to drive sales
59%
51%
59%
61%
66%
Use it to create dialogue with customers
55%
53%
50%
59%
60%
Use it to create customer communities
36%
29%
38%
36%
39%
Source: American Express OPEN
F e b r u a r y 2014
13
Focus
Our Subject In-Depth
CopperPoint Mutual Emerges from SCF Arizona
Broader scope of activity promises a more vital insurance company by RaeAnne Marsh “It seemed like a natural to turn the insurance business over to the people it was created for,” says Don Smith, CEO of what is now CopperPoint Mutual Insurance Company. His 14 years with the state’s workers’ compensation insurance company included leading SCF Arizona through its transition from a state fund to a private company, officially launched this past January. Establishing itself as a mutual company, he explains, “allowed us to maintain a lot of the same philosophy around who and why we exist without necessarily being restricted by an enabling statute that limited what we could do with the financial resources we had to manage.” The “enabling statute” was the one passed by the state legislature in 1925 that created SCF Arizona as a state workers’ comp fund. Workers’ comp coverage for employees is required of every company doing business in Arizona, so it would seem a great business
14
F e b r u a r y 2014
arrangement — the insurance is required, and SCF Arizona had a virtual lock on the market. As Smith explains, other carriers were allowed to operate here but only at rates higher than the state fund. One downside of the situation, he points out, is that the lack of competition discourages the company from being innovative. Additionally, being limited by the statute as to what it could do with its financial assets resulted in its being under-leveraged. Over the course of its existence, SCF Arizona had returned $350 million in dividend money, partly due to good investing and partly due to the nature of workers’ comp, which is paid out over an extended period of time rather than in quick payments, Smith explains. “We thought we could do more for the business community and the community at large if we could use the financial leverage. To maximize benefits this organization could produce for policyholders, we needed to be out of the auspices of the government,” Smith says.
Every state agency has a sunset provision, requiring a regular review of whether it should continue to exist. SCF Arizona was sunsetted and instructed to form a private mutual insurance company. Assets and liabilities previously with the state fund flowed to the new entity as of Jan. 1 last year and the organizational transition was completed as of Jan. 1 this year. As a private company, CopperPoint can get licensed in other states as well as Arizona. “That’s a benefit to companies that have operations in other states,” Smith says. Previously, those companies had to get separate policies for their operations outside of Arizona. While SCF Arizona had developed a work-around for this situation — working with insurance carriers in the other states to “front” the coverage — that arrangement created more expense for the policyholder. Additionally, becoming a private company has enabled the organization to address the inbusine ssmag.com
issue of sustainability. “‘Spread of risk’ is what makes insurance work,” Smith explains. “We had been insuring one type of coverage in one geographical area. Therefore, we were vulnerable if anything bad happened in Arizona; if any kind of legislative, judicial or regulatory issue occurred that made this line of business unprofitable.” Smith describes the “perfect storm” he says the company narrowly avoided in 2008 that could have spelled disaster for SCF Arizona: an economic downturn of monumental proportions; a bad regulatory, judicial or legislative decision; having the financial markets tank; and heavy competition. “All but the second of these did occur, but, fortunately, the financial markets rebounded quickly.” Even as the only real player in the state, SCF Arizona had never been required to write policy for everybody; businesses that posed too high a risk, it referred to the state’s Department of Insurance, which maintains an assigned risk pool. Guaranteeing coverage to all, regardless of situation, disincentivizes people who should be aware of what’s needed to maintain a safe workplace, Smith says. “That’s not fair to those businesses that do all the right things and earn the rates they have.” Noting the assigned risk pool is still available, Smith states CopperPoint “will never just walk away from the vast majority of businesses just because of the business they’re in. We will continue to work with businesses to establish safe workplaces.” Businesses need “consistency in underwriting appetite regarding [the insurance company’s] willingness to write policy,” Smith asserts, relating that insurance companies of the stockholder business model have moved in and out of the Arizona market, and the lack of consistency that created for policyholders has caused disruption for them. As a mutual agency, owned by the policyholders rather than stockholders, Smith says, “We’re here for the long-term and we’re here for the policyholder,” offering what he identifies as the key elements of affordability, availability and a good customer experience. Noting CopperPoint’s plans to be a regional carrier, Smith says the new name and identity “is important to separate the company from the state, to show that the state is no longer subsidizing or influencing its operations.”
WE PUT SOME OF THE VALLEY’S TOP BUSINESS EXPERTS IN ONE PLACE. Business Resource Center. You need timely, relevant information to help you manage your business. But finding it can be a hassle. That’s why SRP has partnered with local business organizations to bring you professional insights on everything from marketing and human resources to financing and forecasting. All in one place. All from experts in their fields. Learn more at srpbizresource.com.
CopperPoint Mutual Insurance Company scfaz.com
inbusine ssmag.com
F e b r u a r y 2014
15
Trickle Up
A View from the Top
Mark Russell: Translating Training to Guest Experience His original standards still drive Oregano’s founder
“Training. It’s all about training.” So says Mark Russell, CEO and founder of Oregano’s Pizza Bistro, when asked about how he stays ahead of the pack. His office is a wonderland of street signs, old marketing signs and wooden barrels, and he’s got a pinball machine behind his desk. It’s a décor not unlike that of his restaurants — hardly surprising, as he actually decorates them with items from his collection. As for business challenges, he sees one of his greatest challenges right in front of him: the influx of new restaurants opening as the economy grows. Russell was motivated to open Oregano’s to memorialize his parents. He lost both of them within two years to cancer. “It was a really difficult time and I really didn’t know what to do,” he says. “These restaurants are a tribute to them. We play my dad’s favorite music in all the restaurants; all the memorabilia you see reminds me of my childhood. And you’ll find a photograph of my parents in each Oregano’s.” The first Oregano’s Pizza Bistro opened in 1993 in a building that was a converted adobe farmhouse in Scottsdale. The goal was to serve authentic Italian comfort food in a casual bistro setting with reasonable prices. The goal was met and, 20 years and 12 locations later, Russell is still working hard to preserve his original standards. He has a mantra with regard to expansion: “We won’t grow unless we can take care of the guest.” He means from top to bottom: service, prices, quality of ingredients, tasty dishes. “We did great during the recession,” says Russell. “I think people were not so much eating out at their steakhouses and their fine-dining establishments, but they still wanted to get out and have that great service and that experience of dining out. We provided that.” But now, says Russell, an improvement in the economy means more restaurants are opening and that means more competition for hungry diners. “We’re seeing more restaurants pop up in the new economy.”
Side Dish
■■ Oregano’s celebrated its 20 Year Anniversary on November 18, 2013. On opening day, the restaurant earned $777. ■■ As a locally owned and operated “neighborhood pizza joint,” ■■ ■■
16
Oregano’s strives to use as many Arizona ingredients as possible. “We’re just a local chain,” says Russell, “and we want to stay as close as possible.” Oregano’s food has won multiple awards, including ABC15 The A-List for Best Desserts in Phoenix. Oregano’s supports a variety of local causes, including American Cancer Society, The V Foundation for Cancer Research, Phoenix Children’s Hospital, Childhelp, Juvenile Diabetes Research Foundation International, and Boys and Girls Clubs of Tucson.
F e b r u a r y 2014
So while Oregano’s had fairly smooth sailing during the recession, now, with so many competitors for the dining dollar, Russell sees the present as the time to hunker down and focus. And he’s placing his focus on training. “We’ve always had great guest services, but now is the time to shore up and polish. We’ll put more of a dollar into training. And it’s kind of our way. We don’t call it the restaurant business here; we call it the Oregano’s business. But it’s our way of finding efficiencies for the quests, to improve their experience without raising prices. And one way to do that is through training.” The training will take place across the restaurant, from kitchen staff to front-of-house staff. Another benefit of extensive training? Less turnover in an industry famous for high staff turnover. “I just love when I see a server at a table and he can rattle of the ingredients of all the pizzas and he knows with confidence what’s in each dish. That is going to bring great value to the diner’s experience,” says Russell. “And those are the servers who, across the board, are going to bring home better tips. So they’re going to stay with us.” Every part of the training will translate into an improved experience for the guest, says Russell. From the moment they walk in the door, to their first drink, their entrée and dessert, training affects their entire stay at Oregano’s. And that’s the payoff Russell hopes will keep Oregano’s ahead of the pack as new restaurants seem to be popping up in vacant spaces everywhere. When it comes to hiring the right employees, Russell looks for two things: friendliness and that certain spark. “If they don’t have that genuine friendly disposition and that spark, those are things we can’t teach, we can’t train. So that has to be there.” Another tweak diners will see to keep up with current health trends will be reflected on the menu. “We’ve always had vegetarian fare,” says Russell, “but now we’re adding gluten-free items and whole grain crusts. And it’s not easy. You can’t just throw those things out there and say, ‘Here they are!’ They have to taste great. So there is a lot that goes into putting new items on the menu.” Russell says he’s learned a lot working for US Airways in the guest services department and in restaurants over the years where he sharpened his cooking skills. But it’s his attitude that carried him. “I developed an ‘I will not fail’ attitude. And I was relentless in the pursuit of guest satisfaction.” Oregano’s Pizza Bistro oreganos.com
inbusine ssmag.com
Photo courtesy of Oregano’s Pizza Bistro
by Kristian Seemeyer
inbusine ssmag.com
F e b r u a r y 2014
17
Entrepreneurs & Innovators: How Franchise, Invention and Technology Propel Our Economy by Don Rodriguez To recover from an injury, any boxer will credit being fit as critical to a speedy comeback. That’s not unlike an Arizona economy counting on being FIT to get it back to fighting form. Only this FIT stands for three pillars: franchise, invention and technology.
Entrepreneurs and innovators from these three economic drivers are contributing to a new economy that is proving a success for us — making it possible for our growth to be about more than home construction. And members of each group are thinking beyond just catching up; they’re already taking the steps to raise their businesses to new levels that should keep entire supply chains working while creating profits that, in turn, feed local economies.
Franchise: Entrepreneurship on a Proven Track Small business is a vital sector of Arizona’s economy, and, while there are those who create their own start-up, other businesspeople choose to take the franchise route — working with an enterprise that has a proven track record and a built-in support system. According to the latest National Franchise Report from the ADP Research Institute, which studies crucial trends in work environments to provide insights that could impact organizations’ overall business performance, there were 13,070 more people employed in November 2013 by franchises in the nation compared to October. That was also a 2.7 percent year-over-year growth rate, compared to the 1.9 percent increase in all non-farm private employment. That growth should continue this year. The International Franchise Association, the world’s oldest and largest education and advocacy organization representing franchising worldwide, forecasts the number of franchise establishments in the United States to increase 1.7 percent. Related employment should grow 2.3 percent, which means more than 8.5 million people will be working in franchises. By the time 2014
ends, the annual output by U.S. franchise establishments should be valued at $839 billion, a 4.7 percent increase. More people working and more money making its way into the economy reflects the economic powerhouse that franchises have become. If there’s a niche to fill, odds are there’s a business for that. Building a business by way of a franchise means the model is proven and the success is likely. An example of an entrepreneur who took this route is Heather Owens, who identified a great need for a pet boarding facility and looked to a franchise like so many are doing locally. She opened a Camp Bow Wow franchise. Camp Bow Wow was named to the Inc. 5000 “Fastest Growing Companies” list and was on Entrepreneur’s “Franchise 500” list in 2012. Her judgment is paying off as she realizes success. Owens’ franchise is on its own fast track for job growth: Adding in-home care with the new Home Buddies program, Owens grew her business from two to five sitters in six months, and she plans further expansion later this year. “We stay very busy with our boarding pups, but it is amazing to see our day camp numbers continuously growing,” she says. While job growth is not the impetus for many who are starting these franchises, it is the net effect. As many are developing their own businesses, they are contributing in a great way to this new economy. Many other existing franchise operations have purposely directed efforts to establish locations in Arizona, and some specifically in the Greater Phoenix area, due to this perceived opportunity for growth. Such is the case with Orangetheory Fitness. There are, currently, nine Orangetheory studios, all in Metro Phoenix. Becky Renner, who owns two franchises herself, is an Arizona regional developer for the company, helping make Arizona its second-most popular state for franchises, further demonstrating a level of success that is clearly propelling franchise as a way of doing business.
More people working and more money making its way into the economy reflects the economic powerhouse that franchises have become.
20
F e b r u a r y 2014
inbusine ssmag.com
With groups like the Arizona Workforce Connection and the Arizona Commerce Authority focusing on job opportunities for veterans, franchises like this are finding it easy to enter into growth areas like Arizona.
One of many examples of businesses specifically targeting military veterans as a desirable entrepreneurial — or employment — pool and creating opportunity for that segment of our population, WIN Home Inspection Thunderbird opened last July to serve the north Phoenix area around Norterra. Leonard Curto, the franchisee for this Madison, Alabama-based company, is an Air Force veteran, and he was attracted by WIN Home Inspection’s special program aimed at veterans. With groups like the Arizona Workforce Connection and the Arizona Commerce Authority focusing on job opportunities for veterans, franchises like this are finding it easy to enter into growth areas like Arizona. Another aspect of franchises as a pillar for growth in Arizona is the support provided by these larger organizations. Mother/daughter entrepreneurial team Sandi Fleming and Lovely Unique Mitchell recently bought an existing PostNet franchise in Tempe. While their business focuses on providing back-office help to other businesses in their area, they get their own operational help from PostNet, which also has 16 other franchises in the Valley that offer services ranging from receiving packages to creating marketing campaigns. With such support as national ad campaigns, Mitchell says they don’t feel like they’re on their own, so their business can “move in the right direction with the demands of the economy.” It is just such support that contributes to the attraction of franchise and encourages many entrepreneurs to establish a business, helping to expand business creation and job development.
Invention: New Economy in Creativity Many new businesses are being launched on the foundation of a single new product. What started as a small group in Tucson has evolved into the 110-member Inventors Association of Arizona, with people driving to Phoenix from as far as Yuma and the White Mountains for meetings
inbusine ssmag.com
twice a month, says Executive Director Laura Myers. Lately, more members are joining “to have control over their financial futures by investing in themselves and their own ability to make things happen.” Some have made money by licensing their products to larger companies while one trio from Sedona has attracted interest of an oil company with their suite of products. The success of members has attracted the interest of state Rep. Andrew Sherwood, who sees group members’ creating products as future revenue for Arizona, Myers says. He has helped her introduce the group to other possible partners as well as discussing potential future legislation that could support the inventors’ community. Myers is also working with leaders of some of the state’s incubator programs who realize their programs will be the step to real growth after a final product is patent protected and soundly designed. For inventors looking for practically daily support, they can always stop by Gangplank in Chandler. The group offers a collaborative workspace where people from various backgrounds come together to create. “It is about connecting people to their inner creator and the community they create in,” says co-founder Derek Neighbors. “A by-product of that is developing talent and creating businesses.” Thanks to Gangplank lighting the fires for success, new companies have launched, and these are hiring workers in the Valley who, in turn can spend their money where they live. One new launch is Athlinks, a social media site that keeps track of race performances and was recently purchased by Lifetime Fitness. And in time for a recovering job market, there is Hiring Solved, a recruiter’s dream with access to millions of candidates and backing by new investors. There’s also Pagely, Forty, Heat Sync Labs — Neighbors’ list goes on and on. The results have been a new type of discussion where it comes to economic development, Neighbors says. There is no longing for the good ol’ days of Arizona’s 5 C’s. “It has shown the state that investing in people and place is more sustainable than waiting for old economies to revive,” says Neighbors. “Most, if not all, implementations of new co-working spaces and incubators cite Gangplank as an influence of their work.” »
F e b r u a r y 2014
21
That influence already goes beyond Chandler as more communities support the concept. Gangplank also has sites in Avondale; Tucson; Richmond, Va.; and even Canada. “The next level is a Gangplank in every city around the globe,” Neighbors says. “Our economy benefits because our communities will be radically transformed to be more antifragile.” He points out that, for Chandler, that meant encouraging better infrastructure such as high-speed wireless Internet for its downtown neighbors like the library, while in Avondale it was influencing education with stronger science and technology components — all of which lead to a better-prepared future work force in those areas. Strength for the start-up is the big idea behind the Entrepreneurship & Innovation Group of Arizona State University. Based at SkySong in Scottsdale, EIG is on track in 2013-2014 to increase the depth of our business community by creating 48 start-ups for students, 15 to 18 for faculty and 10 for alumni/external entities, says Gordon McConnell, assistant vice president of entrepreneurship and innovation. As part of the university’s Office of Knowledge Enterprise Development, McConnell heads the three-year-old group that works closely with Arizona Technology Enterprises (AzTE), ASU’s technology transfer arm run by Charlie Lewis, vice president of venture development. There is a lot riding on the inter-university partnership succeeding. After all, 50 percent of start-ups with no support system fail in the first year and 90 percent by the third year, McConnell says. With EIG, the failure rate has plunged to 10 percent over the last two-and-ahalf years, he says. “That’s way better than the norm.” In addition to gainfully employing the companies’ founders, 68 jobs also have been created directly and indirectly during the same period in the Phoenix metro area. As the program evolves, so should its impact on economic development, with even more jobs.
Results like these are the reasons behind EIG being named one of the top 20 university incubators in the world for 2013 by the UBI Index (10th in the U.S.) and winner of the national award for emerging technologybased economic development by the State Science & Technology Institute. According to AzTE, spinout companies based on technologies developed by ASU researchers raised $68 million during the 2013 fiscal year from venture capitalists betting on seeing returns for their investments. Further, companies that have licensed ASU discoveries have raised nearly $400 million in total venture funding since AzTE’s launch in 2003. This comes from venture capital groups, most of which are private but some of which are set up through quasi-governmental agencies. Behind the economic powerhouse is the impact that program participants’ inventions have had on people’s lives. With 50 percent of the start-ups in manufacturing, McConnell says a program like his offers the support for the needed years of development to occur. This is especially true with such items as medical devices and diagnostics that have been created. “We’re building real companies,” he says. “We’re building technology that’s important.” It is that new technology which creates new businesses with new jobs.
Technology: Hotbed for Innovation, Economic Development Vaidy Iyer, founder and CEO of Chandler-based appsFreedom, knows there’s a lot at stake when it comes to his business. According to the 15th edition of Cyberstates from the TechAmerica Foundation, a nonprofit organization whose mission is to educate executives, policymakers and opinion leaders on the scope and impact of technology, Arizona’s
According to AzTE, spinout companies based on technologies developed by ASU researchers raised $68 million during the 2013 fiscal year from venture capitalists betting on seeing returns for their investments.
22
F e b r u a r y 2014
inbusine ssmag.com
Iyer sees the nation’s economic recovery tied to innovation and, “needless to say, the technology sector is now and will continue to be the hotbed for innovations.”
technology industry employed 110,700 people in 2012, up by 1,350 jobs from 2011. This employment accounted for 5.5 percent of Arizona’s entire private-sector work force. There were 7,600 technology companies in 2012, ranking the state 18th nationwide. Arizona also was 18th with a technology payroll of $9.9 billion for the year. This translated into an annual average wage rate of $89,300, compared to $43,700 for the entire private sector. You bet Iyer wants his company to be a player in that action! His company offers a multi-channel, multi-device platform-as-a-service. In short, appsFreedom offers a way for mobile users to be productive without sitting in the office. (And, yes, he has the apps for that.) The product has drawn attention as one of the best mobile products of the year by the mobile technology news and directory site MobileVillage. com. Closer to home, the Arizona Commerce Authority granted the company $250,000 in its Innovation Challenge to support the work. Iyer sees the nation’s economic recovery tied to innovation and, “needless to say, the technology sector is now and will continue to be the hotbed for innovations.” With the coordinated effort of the Authority, the Arizona Technology Council and the private sector, “I do share the feeling that technology and innovation will further fuel the state’s economic recovery,” he says. He’s already getting ready for what’s to come. Last year, appsFreedom hired six new Arizona-based employees while it outsources various aspects of the business to local vendors. And, like the saying in real estate, the strategic mission is tied to location, location, location. The company is based at Innovations, a technology incubator owned by the City of Chandler, which Iyer credits with providing an excellent ecosystem and resources for technology start-ups like his. “We do intend to stay in Arizona, and as we grow, we will continue to generate a positive impact on the local economy,” he says. Just as Iyer turns to outside companies, so do the bigger companies like Honeywell Aerospace, which has three sites in the Valley. “We need to rely on a lot of sub-tier suppliers and their expertise,” says Robert Witwer, vice president of advanced technology. Like a lot of companies,
inbusine ssmag.com
Honeywell Aerospace has become less vertically integrated than it was 20 years ago. By turning to suppliers, the company can take advantage of “economies of scale of flowing work out,” he says. There should be quite a bit of work to come for those suppliers. Witwer’s group has created a business jet engine that emits 40 percent less oxides of nitrogen, which causes smog; an electric “green” taxi system that will move jets to the runway without the need for running and idling engines, ultimately saving hundreds of thousands of dollars in fuel costs for each jet; and a next-generation air traffic management system to efficiently get jets in the air and to the gate, allowing more planes to fly at a time. Besides putting wasted dollars back in consumers’ pockets, carbon footprint also can be cut. In his job and in his role as board chairman of the Arizona Technology Council, Witwer has a front-row seat to invention and innovation, which should not be considered the same. The latter is “something new that is of value; someone is willing to pay for it.” And sometimes it doesn’t have to be all that new. For example, data storage has led to more ways to use that data, as Amazon shoppers know when they get recommendations. “[That innovation] spawned new innovation,” he says. Like many types of technology, “it’s a virtuous cycle.” ADP Research Institute adp.com appsFreedom appsFreedom.com Arizona Commerce Authority azcommerce.com Arizona Technology Council aztechcouncil.org Arizona Technology Enterprises azte.com Camp Bow Wow (Avondale) campbowwow.com/us/az/Avondale Entrepreneurship & Innovation Group entrepreneurship.asu.edu Gangplank gangplankhq.com Honeywell Aerospace aerospace.honeywell.com Innovations Incubator chandleraz.gov Inventors Association of Arizona azinventors.org Orangetheory Fitness orangetheoryfitness.com PostNet (Tempe) postnet.com/az154 TechAmerica Foundation techamericafoundation.org WIN Home Inspection Thunderbird winhomeinspectionthunderbird.com
F e b r u a r y 2014
23
Management
Decisions that matter
Manage Distracted Employees
Distractions may be sapping productivity – and the employee may be the victim rather than the problem by Marty Martin, Psy.D. As all managers know, workday distractions are everywhere, stealing employees’ precious time and productivity. Between new technologies that beg for people’s attention to the prevalence of shortened attention spans, everyone on your team has the opportunity to be more distracted today than in the past. Of course, being distracted at work creates numerous problems, from missed opportunities to strained business relationships. Therefore, you need to effectively manage your employees so their distractions are minimized. First, realize that there are two categories of distraction. One is internal distraction, and the other is external distraction. Internal distractions include any physiological, emotional, attitudinal, biological or physical discomfort. Some examples include having an upset stomach or a headache, worrying about a personal or professional matter, feeling overwhelmed with tasks, sitting in an uncomfortable chair, experiencing anger toward a co-worker and grieving a loss. Any of these things can quickly take an employee off track from his or her tasks. External distractions include other people and technology. Some examples include coworkers who stop by someone’s office to chat, social media and text alerts ringing on a smart phone, email notifications popping up on a computer screen, and other employees who talk loudly in the office. These seemingly innocuous items easily divert people’s attention. The real problem is, most employees aren’t experiencing just one or two of these distractions. They’re facing multiple distractions each day. Consider this common scenario: A customer service representative is responsible for telephone, email and chat communications. When a customer calls in, the rep has scripts to follow for each scenario. In addition to working from the memorized scripts, she is also instant messaging with customers and answering emails. In fact, her computer screen is divided into quarters: One quadrant has the details of the caller on the phone, and the other three quadrants are active chats she’s engaging in simultaneously. She’s also in an office space where the physical
24
F e b r u a r y 2014
difference between her and the next customer service representative may be five to eight feet. Even though she’s wearing a headset, she can still hear the other reps talking. The person to her right likes to stand while he talks, so that visually distracts her. The chair she is sitting on is old and uncomfortable. And because the company is trying to save money, they have the thermostat set to 80 degrees in the middle of summer. The distractions seem never-ending! On top of all the internal and external distractions, organizational structures have changed over the years, packing in more duties and responsibilities to every job description. That means employees today have to spread their attention thin just to complete their expected workload. With all of these factors, it’s no wonder so many people feel distracted at work. Fortunately, most distractions can be eliminated from the workplace, if supervisors take the time to manage them. Here’s how.
Design or redesign a job from a distractibility point of view. When a manager has a distracted employee, it’s natural to blame the person and say things like, “He’s not a team player,” “She’s not motivated” or “He doesn’t work well here.” The manager may even reprimand the individual for poor performance. But before going that route, it’s worth taking a good look at the job and environment to see if it is making the employee distracted. In other words, the manager should look at the job from a distractibility point of view. What are the job duties, both the ones explicitly stated in the job description and the ones that person just always seems to do? What’s the working environment like? What visual or auditory distraction triggers are present? How is the office set up? How are the lighting, the chair and the desk layout? What other factors impact the employee’s efficiency, effectiveness and performance? inbusine ssmag.com
Books Realize that if the work environment and the job are poorly designed, the company will continue to bring in highly talented individuals who will not do well — not because of them, but because of the bad job design. Therefore, before reprimanding, analyze! What you find may surprise you. Create a Distraction Elimination Plan for distracted employees. Think back to your elementary school days. You likely had a few kids in the class who always bothered others, threw spit balls or just stared out the window for hours. What did the teacher do? She had a plan. If the kids were disruptive to the class, she’d move them up front near her. If they were window gazers, she’d orient their desk so they could no longer see the window. No matter what the disruptive behavior, she knew what to do because she had a plan in mind for it. Good managers do the same. They sit down with the distracted employee and, together, create a Distraction Elimination Plan (DEP). By working together, they may decide on some physical changes in the office that can help, such as moving to a new cubicle or changing the lighting, or they may figure out some strategies the employee can use to maintain focus, such as not having an email program always open or disabling smartphone alerts. The great thing about a plan is that it gives the manager something concrete to reference and use as a benchmark to gauge progress. Additionally, all organizations have risk management plans, strategic plans, operational plans and business plans — so why not also have distraction elimination plans? Remember, distractions rarely selfresolve. So the better the plan, the better the results. Offer other resources when needed. Sometimes, even with the manager’s help and a solid DEP in place, the employee is still distracted. In these cases, the manager has to know when to offer additional resources. If the organization has an employee assistance program, the manager may want to consider making a recommendation to an appropriate resource or service. If the organization does not have an employee assistance program, the manager can present the idea of additional help in a supportive and neutral fashion — even suggesting it as a step in the DEP, as in, “If the outlined steps in this plan don’t resolve the issue, then the employee will seek outside assistance in the form of a counselor or therapist.” The key is to help the employee find the needed resources in order to determine if his situation is more serious than simple distractions. If an employee seems to be underperforming, instead of immediately reprimanding him, the manager may find a more effective solution by taking the time to determine if there’s something the company can do to remove distractions from the workplace. Distractions don’t have to be a major part of the workday, and managers have the opportunity to help minimize them. Remember, the fewer distractions people have, the more productive they’ll be. William Marty Martin drmartymartin.com
Marty Martin, Psy.D., known for his state-of-the art content presented in an engaging, dynamic fashion, has been speaking and training nationally and internationally for many years. His book, Taming Disruptive Behavior, was recently published by The American College of Physician Executives. Dr. Martin is the director of the Health Sector Management MBA concentration and associate professor in the College of Commerce at DePaul University in Chicago.
inbusine ssmag.com
Manage to Lead
How to be an Even Better Manager: A Complete A-Z of Proven Techniques and Essential Skills This ninth edition of How to be an Even Better Manager covers more than 60 essential topics across the three key areas in which any manager needs to be competent: managing people, managing activities and processes, and managing and developing oneself. Thoroughly revised and updated, with 10 new chapters providing timely advice on topics such as coaching, developing emotional intelligence, innovating and effectively using financial ratios and balance sheets, this is an invaluable handbook for current and aspiring managers. How to be an Even Better Manager provides sound guidelines that will help managers to develop a broad base of managerial skills and knowledge. Michael Armstrong $22.95 • Kogan Page, Ltd • April 2014 (9th Edition)
Flex: The New Playbook for Managing Across Differences Renowned executive coaches and global leadership strategists Jane Hyun and Audrey S. Lee offer lessons on the vital skill of “Flexing” — the art of switching leadership styles to more effectively lead people who are different from oneself, allowing managers to successfully manage the multicultural workers of today and tomorrow. The book shows managers how to understand the power gap, the social distance between oneself and those in the workplace of different cultures, ages and gender; flex one’s management style by stretching how one works and communicates with others; and multiply the effect by teaching these skills to others and closing the power gap with clients, customers and partners to create innovative solutions. Jane Hyun and Audrey S. Lee $27 • HarperCollins Publishers • March 2014
Ready to Be a Thought Leader: How to Increase Your Influence, Impact, and Success With the author’s proven seven-step process — and starting from wherever they are in their careers — readers can set a course for maximum impact in their field. These guidelines, along with stories, tips, and success secrets from those who have successfully made the transition to high-profile thought leader, allow readers to create a long-term plan and start putting it into action today, even if they have only 15 minutes to spare. The book offers a step-by-step process for becoming a recognized thought leader in any given field. Denise Brosseau and Guy Kawasaki $27.99 • John Wiley & Sons, Inc. • On shelves and online
F e b r u a r y 2014
25
NonProfit
by RaeAnne Marsh
Actions to build Community
100 Club of Arizona: Caring When It Hurts “This year’s Tribute to Heroes will be different,” says 100 Club of Arizona executive director Sharon Knutson-Felix, noting that in 2013 “we lost 22 officers and firefighters in the line of duty.” The Tribute is one of the organization’s two major fundraisers, supporting its efforts to “stand behind the men and women who stand behind the badge.” The event March 7th at the Orpheum Theatre will start with a social hour outside when guests can enjoy heavy hors d’oeuvres prepared by 15 local chefs. Moving inside, the program will start with a flag ceremony honor service. National inspirational
speaker Bob Welsh has prepared a special tribute for the occasion, and he will be followed by concert pianist William Joseph performing. Says Knutson-Felix. “People walk away feeling they want to express thanks to those who serve us; those who serve feel appreciated.” Funds are used to provide a financial contribution to families of public safety employees who have suffered a tragedy. Knutson-Felix, who has personal experience of what this support — “being their first responders” — means to them, has worked to expand the program to cover employees in all
■■ The 100 Club of Arizona — formerly the 100 Club of Phoenix
Snapshot
■■
in Detroit by a businessman who asked 100 of his friends to give $100 to a fund for the pregnant wife of a young officer who had been killed in the line of duty. A financial contribution is given to families at the time of the tragedy, which helps relieve some of the financial stress
100 Club of Arizona 100club.org
and also “shows someone cares,” says 100 Club of Arizona
— was started in 1965, established as a nonprofit in 1968, and became statewide in 2002.
■■ It was patterned after the first 100 Club, which was founded
areas of public safety throughout the state and respond not just to tragedy but help families suffering “anything life-altering.”
■■
executive director Sharon Knutson-Felix, noting that other financial benefits that may apply all take time to become available. Other services the organization offers are classes that “provide assistance to the whole person,” says Knutson-Felix. Subjects include critical incidence stress management, suicide awareness, healthcare, and courses through the Financial Peace University.
The Girl Scout Cookie Sale is in full swing now, running from Jan. 27 to March 9, and Girl Scouts–Arizona Cactus-Pine Council is running it all as direct sales — eliminating the pre-sale stage of previous years. Evidenced by the experience of other councils, eliminating pre-sales and doing direct sales only is expected to increase sales by about 15 percent, according to Heather Thornton, communications manager. While cookie sales fund a lot of Girl Scout program, the sale itself is part of the program
— involving goal-setting, money management, decision-making, people skills and business ethics. It’s the largest financial literacy and entrepreneurial training program for girls in America. Additionally, Thornton notes, it opens the opportunity to travel for a lot of girls because they are able to earn their own way. “We aim to build leaders with a philanthropic heart — who have eyes to see the needs and hands willing to take on the work,” says Tamara Woodbury, CEO of GSACPC.
■■ Last year, Girl Scouts–Arizona Cactus-Pine Council sold 2.9
Snapshot
■■ ■■
million boxes of cookies, grossing $11.6 million. This year’s goal is 3.3 million boxes. All proceeds stay within the local council. In addition to raising money for the troops and council, the cookie sale includes a community service “buy a box, give a box” program whereby the customer purchases a box that the troop or council will deliver to its chosen recipient, such as U.S. military stationed overseas or St. Mary’s Food Bank. The Girl Scout program encompasses girls from age 5 to 17 or through high school. There are more than 25,000 girls
■■
“Girl Scouting and the cookie program provide opportunities for girls to seize through their own hard work; teaches girls the value of service and skills to set and attain goals.” Girl Scouts–Arizona Cactus-Pine Council girlscoutsaz.org
registered in the Arizona Cactus-Pine Council, and more than 11,000 adults who volunteer as leaders, cookie chairmen, trainers, board members and other positions. Built around the focus areas of STEM, financial literacy, global citizenship, civic engagement, healthy living and environmental leadership, Girl Scouting is the only national leadership program developed as outcome-based. It focuses on girls’ achievement in personal growth and skills and values that promote interpersonal and community relationships.
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.
26
F e b r u a r y 2014
inbusine ssmag.com
Photos courtesy of the 100 Club of Arizona (top), Girl Scouts—Arizona Cactus-Pine Council (bottom)
Girl Scouts–Arizona Cactus-Pine Council: Achieving Girl Leadership
by RaeAnne Marsh
www.inbusinessmag.com
February 2014
O n t h e Ag e n D a
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.
Glendale Chamber of Commerce
2014 Annual Dinner & State of the City Address Thurs., Feb. 27 — 5:30p – 8:00p Glendale Chamber of Commerce’s 63rd annual dinner and State of the City address on Feb. 27 will highlight last year’s accomplishments while honoring individuals with Volunteer of the Year and Achievement awards. Held at the Renaissance Glendale Hotel & Spa, the evening will start with a cocktail reception, and the informative program will be presented during the dinner
Photo courtesy of Jay Mark
that follows. City of Glendale mayor Jerry Weiers will deliver his address acknowledging advances over the past year and challenges anticipated for the coming year. This event is also an opportunity for Robert W. Heidt Jr., who took over the position of chamber president and CEO last October, to highlight his vision and the direction he aims to lead the organization. “I see a lot of optimism for growth of the chamber,” he says, sharing that the chamber will be adding benefits and programs to improve opportunities for members and sponsors. Giving a recap of the chamber’s activities for 2013 will be outgoing Chairman of the Board Dawn Johnson, of Arizona State Credit Union. Dave Mitchell, founding partner of Ideal Insurance Agency, will be introduced as the incoming chairman of the board and will share the goals and objectives he hopes to achieve for 2014. Registration for the dinner event is $70. Glendale Chamber of Commerce glendaleazchamber.org
inbusine ssmag.com
Urban Land Institute — Arizona
ULI Arizona Real Estate Trends Conference Wed., Feb. 19 — 7:30a – 5:00p ULI Arizona’s Real Estate Trends Day, being held at the Sheraton Downtown Phoenix on Feb. 19, will address such diverse topics as capital markets, employment and economic development, and healthcare Keynote speaker Presenter Alex Steffen Jay Parry impacts, as well as more typically “real estate” subjects as the prime drivers in office, industrial and retail segments. With the theme “Spreading Prosperity: Innovation and Job Growth for Arizona’s Future,” the program is a broad discussion of elements that could affect the landscape of land use and real estate development in Arizona, including Metropolitan Phoenix and Tucson specifically. ULI’s mission is to foster leadership in responsible use of land, to create and sustain thriving communities, says Debra Sydenham, executive director. The annual Real Estate Trends Day’s broad scope is developed because, she explains, “maybe it will cause someone to ask themselves a question — maybe they need to do another analysis and take another look at their business model, maybe there are some options they didn’t consider that Trends Day will spark an interest to look into a little bit further, because that could be a good direction to take the business or development.” Founded in 1936 as a nonprofit think tank, ULI is a worldwide organization; Arizona is one of the largest of the district councils in the United States. ULI has no agenda of its own; rather, it provides holistic and comprehensive information “so all sides are informed when they go about making a decision,” Sydenham says. On the Trends Day panels, this can lead to lively discussions, as not everyone on the panel will agree as to what’s going to happen and how to approach certain opportunities and challenges. Keynote speaker Alex Steffen is internationally renowned as the founder of Worldchanging, a magazine that looks at what the cities of the future will be like and how we will get there. Among other presenters is Jay Parry, CEO of the Arizona Super Bowl Host Committee, who will give an update on plans for the Super Bowl. ULI Global chairman Lynn Thurber will be at the event in the morning, and CEO Patrick Phillips will attend in the afternoon. Registration for members in the private sector is $275; in the public sector, $150; under age 35, $175. Corresponding rates for non-members are $370, $200 and $240. After Feb. 7, all fees increase $25. Urban Land Institute — Arizona arizona.uli.org
Notable Dates This Month Sun., Feb. 2
Groundhog Day
Wed, Feb. 12
Lincoln’s Birthday
Fri., Feb. 14 Arizona Statehood Day Valentine’s Day Mon., Feb. 17
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 2014
27
O n t h e Ag e n d a ARIZONA SMALL BUSINESS ASSOCIATION Creating Your Effective Networking Commercial Tues., Feb. 11 1:45p – 2:55p
Get tips to develop an effective 30-second networking commercial in this hands-on workshop. Put your 30-second commercial to practice immediately following this workshop at ASBA’s original Fast & Curious Speed Networking event. Members: free; non-members: $10 ASBA’s Business Education Center 4600 E. Washington St., Phoenix Sarah Corradino, scorradino@asba.com
Fast and Curious Speed Networking Tues., Feb. 11 3:00p – 4:30p
Join us for a fun, fast-paced format of networking that allows you to meet other businesses at 3-minute intervals. Members: free; non-members: $25 ASBA’s Business Education Center 4600 E. Washington St., Phoenix Sarah Corradino, scorradino@asba.com
Women’s Biz Connection Wed., Feb. 12 3:00p – 4:30p
Meets monthly to build marketplace visibility for our local businesses and support other women business owners to be successful. Free ASBA’s Business Education Center 4600 E. Washington St., Phoenix Sarah Corradino, scorradino@asba.com
ARIZONA TECHNOLOGY COUNCIL Maximizing your Company’s Value Thurs., Feb. 6 7:30a - Noon
Institute for Strategic Development’s “Maximizing Your Company’s Value” is a 4-hour workshop that will help prepare your company for growth, capital infusion and eventual sale. Free Polsinelli One E. Washington St., Phoenix (602) 343-8324
Lunch and Learn Thurs., Feb. 27 11:30a – 1:00p
Prism Global Marketing Solutions and HubSpot’s presentation on how to generate leads and convert those leads into customers utilizing effective inbound marketing strategies. Members: free; non-members: $15 Eller College of Management (in the Quicken Loans building) 16425 N. Pima Rd., Scottsdale (602) 343-8324
28
F e b r u a r y 2014
February 2014
CENTRAL PHOENIX WOMEN Central Phoenix Women Luncheon Tues., Feb.18 11:30a – 1:00p
The meeting will feature a presentation by Robin Milne, executive director of Phoenix Suns Charities. $35 The Ritz-Carlton, Phoenix, 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org
CHANDLER CHAMBER OF COMMERCE Small Business Counseling
Feb. 3, 4, 7, 10, 11, 14, 17, 18, 24, 25 Times vary – contact Chamber for availability
Experienced mentors provide help for your small business. Sessions at the Chandler Chamber are available by appointment only. Free Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler info@chandlerchamber.com
Small Business Development Center Academy Class Tues., Feb. 4, 11, 18, 25 4:00p – 6:00p
Come take advantage of these weekly free classes to learn various skills to help start your business. Free Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler info@chandlerchamber.com
What’s Trending in ’14? Fri., Feb. 7 8:45a – 10:30a
This month’s topic is, “How to Find Ideal Customers and Land Bigger Deals.” Free; pre-registration requested Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler info@chandlerchamber.com
Technology Lunch Seminar Series Thurs., Feb. 13 11:30a – 1:00p
Members: free; non-members: $15; includes complimentary lunch. Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler info@chandlerchamber.com
Public Policy Meeting Fri., Feb. 14 8:00a – 9:30a
The Chandler Chamber of Commerce is a representative on local, regional and state issues. The Chandler Chamber discusses issues that can be vital to the success of your business. Free; register online Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler info@chandlerchamber.com
Women in Business Tues., Feb. 18 10:30a – 1:00p
“Million Dollar Tips For Positioning Your Business For Success,” presented by Sandy Cowen, National/International Strategic Positioning Consultant. Members: $25; non-members: $35 SoHo63 63 E. Boston, Chandler info@chandlerchamber.com
Public Policy Meeting Fri., Feb. 28 8:00a – 9:30a
The Chandler Chamber of Commerce is a representative on local, regional and state issues. The Chandler Chamber discusses issues that can be vital to the success of your business. Free; register online Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler info@chandlerchamber.com
ECONOMIC CLUB OF PHOENIX Luncheon
Thurs., Feb. 13 11:30a – 1:30p
Punit Renjen, chairman of the board of Deloitte LLP, will share his views on corporate governance in today’s business environment. He will also share business lessons learned. Members: free; non-members: $75; introductory members: $60 Camelback Golf Club 7847 N. Mockingbird Ln., Scottsdale wpcarey.asu.edu/economic-club
GLENDALE CHAMBER OF COMMERCE First Friday Networking Fri., Feb. 7 7:30a – 8:30a
Chamber’s Networking leads group $5 for breakfast Bitzee Mama’s 7023 N. 58th Ave., Glendale glendaleazchamber.org
Business After Hours Thurs., Feb. 20 5:00p – 7:00p
Refreshments, raffle prizes and excellent networking as well introduction of the Chamber’s newest members. Members: free; future members: $25 The Native Grill and Wings 7322 W. Bell Rd., Glendale glendaleazchamber.org
Mayor Jerry Weiers State of the City Address Dinner Thurs., Feb. 27 5:30p – 8:00p
$70 Renaissance Glendale Hotel & Spa 9495 W. Coyotes Blvd., Glendale (623) 937-4754 (See article on page 27.)
GREATER PHOENIX CHAMBER OF COMMERCE Love Your Life: Strategies for Happiness & Success Tues., Feb 4 11:00a – 1:00p
Professional Women’s Alliance brings businesswomen together by hosting a different, dynamic female leader in the community each month to share insights into leadership, career growth, community involvement and women’s issues Members: free, with lunch: $20; nonmembers: $40 (lunch included) Phoenix Country Club 2901 N. 7th St., Phoenix phoenixchamber.com
Day at the Capitol Thurs., Feb. 6 8:45a – 2:00p
Day at the Capitol is a fun and informative day that helps Chamber members learn about Arizona’s legislative process, explore the importance of civic duty to the business community and engage with state legislators. Lunch is included. Members: $15; non-members: $25 State of Arizona Capital 1700 W. Washington St., Phoenix Miranda Cain, (602) 495-6473
After 5 Mixer: Kincaid’s Thurs., Feb 27 5:00p – 7:30p
Free Kincaid’s American Classic Dining 2 S. 3rd St., Phoenix (602) 495-2182
NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS Luncheon
Wed., Feb. 12 10:45a – 1:00p
Program on the Science and Power of Imagination is designed to enhance and inspire your imagination. Members: $38; non-members: $48 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org
PEORIA CHAMBER OF COMMERCE Connecting the Community and the Chamber Thurs., Feb. 27 5:00p – 6:00p
Join the Peoria Chamber for a night of networking. Free Johnny Fox’s Public House 16100 N. Arrowhead Fountain Center Dr., Peoria Holli Gill, (602) 653-5316
inbusine ssmag.com
Please confirm, as dates & times are subject to change.
SCOTTSDALE AREA CHAMBER OF COMMERCE
TEMPE CHAMBER OF COMMERCE
Arizona Broadway Theatre 7701 W. Paradise Ln., Peoria lisap@westvalleywomen.org
Women in Leadership 2014
Networking @ Noon
WOMEN OF SCOTTSDALE
A “no fluff ” educational luncheon about managing work and life while excelling in the professional world! Featuring Sara O’Meara, co-founder, chairman and CEO of Childhelp, and Yvonne Fedderson, cofounder and president of Childhelp. Members: $50; non-members: $60 Silverleaf Club 18701 N. Silverleaf Dr., Scottsdale Anna Mineer, (480) 355-2708
Learn the art of relationship building, enjoy a fantastic lunch and have fun promoting your services at this “speed dating for business” event. Members: $25 in advance, $30 day of event; general public: $35 Location TBD tempechamber.org
Woman of the Year Celebration
Wed., Feb. 12 11:30a – 1:00p
SURPRISE REGIONAL CHAMBER OF COMMERCE Legacy in Business Excellence Awards Thurs., Feb. 20 Noon – 1:30p
Now more than ever, thriving local businesses will lead the way as our regional and national economy gets back on the path to recovery. Recognizing and celebrating our local businesses and their leaders is an exciting part of this process. $20 The Colonnade 16126 N. Civic Center Plaza, Surprise Maria Espejo, (623) 242-4075
Thurs., Feb. 13 11:30a – 1:00p
Breakfast for Chamber Champions Fri., Feb. 28 7:30a – 9:00a
$35 The Westin Kierland Resort & Spa 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org
OTHER BUSINESS EVENTS Three Global Business Heroes
This event honors those individuals and businesses that have gone above and beyond in their efforts to make Tempe a thriving community. Members: $50; general public: $60 Embassy Suites Tempe 4400 S. Rural Rd., Tempe Sachiyo Spires, sachiyo@tempechamber.org
WEST VALLEY WOMEN West Valley Women “Bring a Gentleman to Lunch” Tues., Feb. 4 11:30a – 1:00p
$35
Fri., Feb. 21 11:30a – 1:00p
Mon., Feb. 3 7:15a – 9:00a
AZIGG presents three global business leaders discuss their success, failure and recommendations for others about growing globally. $20 ASU SkySong, Global Room 1475 N. Scottsdale Rd., Scottsdale Yvonne Luker, (480) 595-5000
Canada Week Business Networking Wed., Feb. 5 5:30p – 7:30p
Business networking event for Canadian and other international company leaders looking to connect with other leaders in
the Valley. Free; $50 donation encouraged to CABC charity DIRTT Environmental Solutions 836 E. University Dr., Phoenix Doug Bruhnke, (480) 595-5000
2014 Real Estate Trends Day Wed., Feb. 19 8:00a – 4:00p
Urban Land Institute presents a forum on land use and real estate trends and how they affect public- and privatesector organizations. Non-member public sector: $200; non-member private sector: $370; non-member under 35: $240; discount for ULI members Sheraton Downtown Phoenix, Valley of the Sun Ballroom 340 N. 3rd St., Phoenix arizona.uli.org (See article on page 27.)
The Science & Business of Imagination March 5 8:00a – noon
Explore the power, process and purpose of imagination in business and life. $35; at the door: $50 Phoenix Convention Center 100 N. 3rd St., Phoenix thestateofillusion.com
Prepare for 2014 and get Exposed!
Special Sections
Events Online
Email Magazine
Your company deserves to be fit. Performance Marketing: Print. Online. Email. Social Media. Events. (480) 588-9505 inbusine ssmag.com
|
www.inbusinessmag.com
|
info@inbusinessmag.com F e b r u a r y 2014
29
Legal
Legal Matters to Business
Business, Social Media and the First Amendment What can a business do when customers rant online? by RaeAnne Marsh A recent court case that upheld a business’s right to fine a customer for posting a negative review on social media may have some businesses questioning: Do we have legal recourse when someone bad-mouths us? Does the First Amendment protect people who say bad things about our company? What is often overlooked in these discussions is the fact that the First Amendment does not apply to private companies — it protects individuals against action by the government. There are, however, rules of common law that govern if an individual speaks critically about a business, says John J. Balitis Jr., a director in the Phoenix office of Fennemore Craig whose practice specialties include labor and employment law. If someone says something critical online and it’s false and the business is damaged, it may have a claim for damages for defamation against the individual. There is also the concept of “contractual interference,” under which the statement doesn’t even have to be false — the ruling element in this case is intent. A business may have a claim if it “can show the person making the statement had malicious intent — [saying it] not because he wants to share his opinion but because he deliberately wants to actually hurt the business,” Balitis explains. Frequently, the issue is identifying the person making the post, as most such posts are anonymous, points out Jimmie W. Pursell Jr., an attorney in the Phoenix office of Jennings, Strouss & Salmon whose practice areas are commercial litigation and intellectual property litigation. However, he adds, “Mechanisms are available to pierce Internet anonymity, including subpoenas to the website to determine the IP address of the poster and subpoenas to the Internet service provider to determine which customer is assigned that particular IP address.” Before opting to sue, Pursell suggests the business owner weigh the potential benefits against potential negative outcomes. While posts live on forever online, they usually move quickly into obscurity as newer posts supplant their position on page one. “A suit keeps people talking,” Pursell observes. An alternative to suing, if the customer who posted the
30
F e b r u a r y 2014
negative review is known, is reaching out to him or her and resolving the issue from the standpoint of customer service. Also impacting any discussion of protected speech is specific contractual provisions. “Some Internet companies are inserting penalties in their terms of service in an attempt to quell negative reviews,” Pursell says. A site’s Terms and Conditions serves as a “boilerplate” contract in which would be buried the proverbial “fine print” that binds the site’s users to the terms of the contract. “If they’ve been on your site, you might have a right of action.” This does not require active acquiescence by the consumer. However, the enforceability of such contracts is questionable and may vary among jurisdictions. Such defamation cases should not be seen as money-makers, Pursell notes, explaining, “You can’t have a penalty provision in a contract, but if it’s a good-faith estimate of damages not easily ascertainable, the court will enforce the provision.” A business may use language to the effect of “User agrees to never say anything bad about this company on any online review site. We would be harmed by that, but the harm may be hard to quantify, so we agree to specified liquidated damages.” Liquidated damages are a specific amount agreed upon ahead of time when the company would not be able to quantify actual damages. The concept of protected speech also does not apply in employer/ employee relations. “The First Amendment does not protect against actions taken by employers in response to employees’ ‘inappropriate’ social media postings. This is especially true in fields such as education,” says Pursell. And he observes, “It’s difficult to separate your private life from your public life when you post your private life for the world to see.” It’s advisable for businesses to develop written social media policies with regard to employee accounts and public perception. Fennemore Craig fclaw.com Jennings, Strouss & Salmon
jsslaw.com
inbusine ssmag.com
HR
People Are Key
Are Teams Obsolete?
Coordinated adaptive action networks are replacing this traditional mainstay of business by Glenda Eoyang, Ph.D. Ten years ago, the business world couldn’t stop talking about teams. Remember all those slightly cheesy posters that showed rowers rowing in perfect sync or maybe just close-ups of interlocked hands? As we saw it then, teams of smart, innovative people were how work would get done in the “organization of the future.” Well, here we are in the future, and teams — at least as we knew them then — are becoming as obsolete as fax machines and desktop Rolodexes. Why? Because, like antiquated office tools, teams were set up to fit a workplace environment that no longer exists. In the past, we played finite games, where boundaries, goals, rules and winning could be constant and reliable. Back then, it made sense that teams had lists of members, regular times to meet, specific goals, schedules, plans and predictable products. Today, this kind of stability is rare. Therefore, teams built on that stability are anachronisms. They just don’t work. Today’s organizations don’t just play winnable games; we also engage in infinite games. Those games are characterized by many different tasks at the same time; diverse resources and skill demands; global and virtual connections; tight timelines, emergent targets;
32
F e b r u a r y 2014
evolving rules. Radically different relationships and structures are required to accomplish complex tasks in chaotic environments. Taking my own schedule as an example, last week I had 21 meetings, not counting the weekend. Each meeting involved different people, goals, products, timelines. Members of what Fast Company has called “Generation Flux” may thrive with this pace and flexibility, but I’m from a slower-paced era. Yet, I have to function in this new kind of work, and so do all the people my life intersects with in all these meetings. So how do we bridge the gap between the old way of doing business and the new? The answer is Adaptive Action. A model based on a cycle of three questions that are repeated again and again — What? So what? Now what? — it allows both individuals and organizations to engage intelligently with a fast-paced and uncertain world. And it helps groups come together quickly and seamlessly to accomplish tasks — then move on. Where old-school companies depended on traditional teams to get work done, today’s more flux-friendly organizations are embracing these “Coordinated Adaptive Action Networks” (CAANs). What is a CAAN? Basically, it’s a group
of individuals or institutions who recognize how a shared interest will be served by sharing resources. Addressing a specific goal, they come together for a short period of time to coordinate data collection (What?), understanding (So what?), and action (Now what?). After a brief encounter, the components are free to pursue other potentially fruitful CAAN engagements. Recently, a hospital used this approach when it was planning to add a new facility. Over time, the number of people involved in decisions — the project team — got larger and larger. Some people were waiting around for their work to be needed. Others had finished their contributions but still were required to attend team meetings. Managing the players became a full-time job that no one wanted to do. The group met all together to consider other ways to manage their work. They created a CAAN when they: 1. Posted the current project plan online and updated it whenever plans needed to change, 2. Published detailed agendas three days before any team meeting, 3. Expected people who needed to be involved in those particular items to inbusine ssmag.com
show up prepared to focus and work and released others from attending, and 4. Supported communication among diverse players by posting minutes, questions and conversations about relevant issues on an electronic bulletin board. This arrangement allowed people to know what was going on but to be involved only when they had something significant to contribute. The approach works across industries and projects. We are currently supporting clients in CAANs to create learning communities in schools, build coherence across prevention networks, harvest lessons from healthcare innovations, deliver revolutionary leadership training, and help build credible influence for a foundation. These groups use Adaptive Action in coordinated networks to accomplish challenging and complex tasks quickly, cheaply and efficiently. It is simple, even when it isn’t easy. Consider these rules to turn stodgy teams into CAANs: Synchronize work; don’t delegate (even more!) tasks. Traditional teams generated tasks that would be added to members’ to-do lists. Today, people’s plates are already full to overwhelming. They do not need a team to add to the workload. Instead, when a group comes together, focus on synchronizing their various work rather than creating new task lists and agendas. Align with others to leverage the tasks that are already on the list. A CAAN adds synergy to current work without significantly expanding demands. For example, when I discovered that a colleague was visiting the U.S. from Finland in the coming month, we recruited him to teach us about a new technology that would accelerate the work on our project while providing feedback and support for him and his CAAN back home. Same time and same place created a synergy that would have been impossible otherwise. This CAAN produced maximum reward for everyone involved with minimum additional investment. Assess and exploit differences; don’t merely accommodate them. Various kinds and levels of expertise, divergent perspectives and multicultural sensibilities mark the difference between excellent and mediocre performance. And while such diversity maximizes performance in a chaotic environment, it has to be handled wisely. Old-style teams developed skills in “managing diversity,” but that’s no inbusine ssmag.com
longer enough. The new model is to access unique skills and features as they’re needed, use them to their fullest potential, then release the resources to serve elsewhere. A CAAN leverages the best of people’s talents by drawing them into one project when they’re needed and sending them to another as needs change. People with special gifts and unique talents are not forced to work outside their expertise, and CAANs aren’t burdened with trying to force-fit people to tasks over the long term. Meanwhile, resources that don’t fit a particular task are not wasted or ignored; they are just invested in parallel CAANs where they can make a real difference. For example, I recently excused myself from a project when it became clear that art and poetry were required. Neither of those is my gift, so I found it easy to leave that CAAN to others and move on to work that was a better fit for me — and me for it. Move information; don’t accumulate and hoard it. A sacred service of traditional teams was to collect and document information. Too often, they became “black holes” where important information disappeared forever. The free flow of information is what allows a CAAN to come together, do its work, and move on. Negotiating opportunities, giving and getting feedback, connecting to additional resources, explaining what is (or is not) required — all these functions are central to working in a CAAN. All depend on the fast and reliable transfer of information. As I prepare for meetings these days, I make two lists: What do I need to know? and What do I know that others need? This simple discipline helps me be a valued player as we share resources to meet shared interests in an ever-increasing variety of CAAN relationships. Expect self-interest, not dogged loyalty. Even the most fundamental rules of the CAAN game are different from those for a team. Team members felt loyalty and commitment and identity with their mates. They would do their best to meet the needs of their team community. CAAN members have a different motive. They are committed to a larger level of performance that reaches beyond this project or this task, but they also are wisely self-interested. In a CAAN, people constantly gauge what they have to offer and what they have to gain from the connection. They get and stay involved as long as they are acknowledged for their contributions and are getting what
they need. That’s not a bad thing, because CAANs are designed to organize work and maximize productivity, not to provide a sense of social connection or meet the personal and emotional needs of their members. We are able to use Adaptive Action to build relationships and improve how we leverage uncertainty in our personal and professional lives. We also use Adaptive Action to build effective task-oriented networks, CAANs. It’s just that we don’t always do both at the same time. Even in the most chaotic of times, work will sometimes demand a stable, loyal and familiar group of people, so teams will always have a place in the workplace. In the future, however, these situations will be rare because technology, economy and environment push work to the edge of chaos, and infinite games will become the rule rather than the exception. CAANs provide an alternative for collaborative group work that is adapted to the flux of the future to provide the benefits of shared work and avoid the dangerous pitfalls. In our chaotic world, old-school teams are going the way of fax machines and desktop Rolodexes. What’s replacing them is a whole new animal of CAANs’ quick-coalescing, quick-dissolving groups. Businesses whose work has already moved into the new and emergent pattern of the infinite game will recognize the benefits and challenges of CAANs, which will help them develop their adaptive capacity. For those who struggle with the transformation of their teams, CAANs will provide a path through the chaos and into a new clarity. Human Systems Dynamics Institute hsdinstitute.org
Glenda Eoyang, Ph.D., and Royce Holladay are coauthors of Adaptive Action: Leveraging Uncertainty in Your Organization. Dr. Eoyang, founder of Human Systems Dynamics Institute, is a pioneer in the field of human systems dynamics and helps people see patterns in the chaos that surrounds them, understand the patterns in simple and powerful ways, and take practical steps to shift chaos into order. Her clients include Merrill Lynch and Cargill, as well as local, state and federal government agencies in the U.S. and abroad. Holladay, network director at Human Systems Dynamics Institute, serves as a consultant and coach to help individuals, groups and organizations cope with uncertainty, and her deep understanding of the dynamics of human systems has been a springboard for the development of a number of models and methods.
F e b r u a r y 2014
33
ASSETS
by Mike Hunter
We Value What We Own
New 2014 BMW X5 xDrive50i The third-generation BMW X5 is empowered by this xDrive50i edition for 2014. While the new appearance is notable, it is the latest technologies and fuel efficiencies that are the true benefit in the next edition. With a 2-mpg gain in highway fuel efficiency, a lighter overall weight and some aerodynamic redesign, this driving machine is a “sports activity vehicle” to check out. The 50i is equipped with a 4.4-liter TwinPower Turbo V-8 that achieves 445 horsepower and a 0-60 mph in less than five seconds. Weighing less than 5,000 pounds, the X5 50i is more about speed and performance than the lesser models. The intelligent all-wheel drive, BMWs xDrive, is designed to optimize handling and fuel efficiencies. Also aimed at improving fuel efficiency, the 8-speed transmission provides for a more efficient shifting sequence that evolves to seamless performance, resulting in a controlled and comfortable drive. Not all are pleased with the new look of the X5. The redesign was with purpose (a more aerodynamic body), which some feel has “dumbed down” the look. A larger, “meaner-looking” grill and more curves running down each side result in a more wedge-shaped profile. The stance is still tough-looking, and, while some of the newer features appear to be dated, they are all about improving the overall performance of this vehicle. With BMW, luxury is job one. The interior boasts an impressively large 10.5-inch display that is the center of this interior space. Dakota Leather upholstery and luxury appointments that are expected of BMW make comfort and convenience a priority. The Harman Kardon surroundsound system is second to none and the touch screen iDrive navigation and an advanced online system are sure to be in the forefront of technology for years. Communications systems include BlueTooth technology and data capture that will keep mechanical and maintenance records and BMW X5 xDrive50i alerts, ensuring timely service. City MPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Hwy MPG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 0-60 MPH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.9 sec Transmission. . . . . . . . . . . . . . . 8-speed automatic MSRP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $68,200
BMW bmw.com
Point-of-Sale at Its Best Improving and advancing technologies are making the point-of-sale purchase process so much easier and accessible for small businesses and for small spaces. Here are our picks.
MagTek iDynamo Card Reader
Ideal for merchants and mobile users, it combines the MagneSafe Security Architecture with the power of iOS devices. Assures convenience and cost savings while maximizing card data protection and transaction security from the moment the card is swiped all the way to authorization. Apple 30-PIN and Lightning Interface Options available. $95 magtek.com
RuggedJet Mobile Printers by Brother
This provides reliable mobile receipt printing, invoice printing, and printing of other small documents and labels up to four inches wide from handhelds, PDAs, tablets and laptops — all wirelessly. It can easily be vehicle mounted, carried on shoulder straps or hooked to belts and worn comfortably for extended periods. Available with card reader. $995 – $1,095. brother-usa.com
This completely reinvented cash box is specially designed by Phoenix-based Dean Heckler of Heckler Design. It maximizes space and looks great holding an iPad for display, managing all of the necessary cords and securing to a countertop or desk. Available in black grey, grey white, bright red, bright yellow, emerald and deep orange. Made of steel to protect money and important documents. $399. hecklerdesign.com
34
F e b r u a r y 2014
inbusine ssmag.com
Photos courtesy of BMW (left), MagTek, Brother, Heckler Design (right, top to bottom)
Windfall Box Set by Dean Heckler
Work here, there, anywhere — Regus workspace solutions
Get 2 months free* on a Regus Office or Virtual Office. Regus provides innovative workspace solutions that give you everything you need to work your way. No lease. No long-term commitments. No worries. • Fully furnished and equipped offices • A receptionist to answer your calls • On-site IT support • Access to professional meeting rooms • State-of-the-art video communications studios • Access to over 1,500 business lounges and cafes worldwide
Visit one of our 15 locations throughout the Phoenix area .
Call 1-800- OFFICES or visit regus.com. *Terms and conditions apply. Offer not valid in all Regus locations. Twelve-month term required. Offer applies to initial term of agreement and may not be combined with other offers. Promotion available to new customers only. Offer expires 12/31/13.
SEDAN SUV EXECUTIVE VAN LIMOUSINE SPRINTER MINI BUS MOTORCOACH
inbusine ssmag.com
F e b r u a r y 2014
35
Power Lunch
by Mike Hunter
Meals that matter
As Seen on TV Do lunch where the experts say it’s the best. Below are our picks for a top lunch as seen on TV’s “Diners, Drive-Ins and Dives.” Unique dishes, the best taste and some darn good cooking is why these three hot spots were chosen to appear. We quote what the website says Guy Fieri discovered.
DeFalco’s Italian Eatery, Grocery & Deli
The Southwestern grill original
A Valley favorite for more than 20 years, Z’Tejas Southwestern Grill is known to many as an original that was developed right here in Scottsdale — but, actually, the first location was in Austin, Texas. The concept was to create a fresh and seasonal menu using Southwestern ingredients found in Arizona, California, New Mexico, Texas and even Louisiana. Born of the fiery and aromatic spices of the region and the cooking style that fusion chefs know best, the menu at Z’Tejas is a culmination of some known dishes fused with these flavors and styles. These results are what make this recognized establishment a 20-year success. Appetizers include the Grilled Shrimp and Guacamole Tostada Bites on house-made crispy tostada rounds topped with fresh, hand-hacked guacamole, a dash of chipotle and cilantro-pesto-marinated grilled shrimp. The Cast Iron Skillet Dumplings are spicy shrimp and pork wontons, seared and served in a cast-iron skillet with a sweet ginger soy sauce. Lunch favorites are the original version of the Southwestern Caesar Salad made with romaine lettuce, Parmesan cheese and house-made Navajo croutons, topped with grilled chicken. Try the Green Chile Barbacoa Enchiladas made with low-roasted beef barbacoa and Jack cheese rolled in corn tortillas, finished with green chile sauce, sour cream and nopalitos salad, and served with seasonal rice and black beans. The menu includes more salads, burgers and a variety of delicious appetizers, of which many will make a table-wide meal. The décor is different at each location. They are all modern Southwestern with comfort and style well in mind. Guests love the service and the attention the staff continues to pay to each guest’s needs. Professionally dressed wait staff well versed in the menu completes a perfect setting for a lunch meeting with top clients or colleagues. The newest location, at Bethany Home and 16th Street, is brighter and much more modern than the others. It is convenient to Downtown Phoenix and offers a quick lunch experience.
La Piazza Al Forno
“A father-son operation, the duo churns out delicious pizzas and Italian favorites. Guy couldn’t keep his hands off of the Italian Stallion, a pizza loaded with sopressata, Parma prosciutto, Italian sausage, and pepperoni. Still hungry? Try the baked spaghetti pie topped with fresh mozzarella.” 5803 W Glendale Ave., Glendale (623) 847-3301 • lapiazzaalforno.com
St. Francis
“Chef Aaron Chamberlin likes to cook everything over an open fire just like when he was a Boy Scout. Guy adored the smoky and creamy Pig Dip filled with pork, prosciutto and fennel onion marmalade. The rustic Iron Skillet Pancake with berry compote and the Moroccan meatballs also impressed.” 111 E. Camelback Rd., Phoenix (602) 200-8111 stfrancisaz.com
Z’Tejas Southwestern Grill
Phoenix, Scottsdale, Tempe and Chandler ztejas.com
36
F e b r u a r y 2014
DeFalco’s Italian Eatery, Grocery & Deli
inbusine ssmag.com
Photos courtesy of Z’Tejas Southwestern Grill (left, top and bottom), DeFalco’s Italian Eatery, Grocery & Deli (right)
Don’t Forget Z’Tejas Valley-wide
“At DeFalco’s in Scottsdale, Ariz., the Italian sausage is made with a nearly century-old family recipe that has brought in locals for decades. The Centurion calzone truly is a meal fit for a warrior, with two layers of mozzarella and sliced sopressatta — Guy said it rivals most NYC delis.” 2334 N. Scottsdale Rd., Scottsdale (480) 990-8660 • defalcosdeli.com
It’s All About Being Unique & Creative
Presents
Valley
Section Sponsor
A Guide to Your Next Great Event
Elegan
ents
room Ev
& Ball t Tables
State
ons
esentati
rt Pr -of-the-a
Impre
sdale
: W Scott
cations ssive Lo
Events Mean Building Business
Presents
About Our Guide:
Valley
Photos courtesy of Z’Tejas DeFalco’ Southwe s Italian Eatery, Grocery stern Grill & Deli (right)(left, top and bottom),
We hope that you will enjoy this comprehensive compilation of the Valley’s top sites for business events, conventions and meetings. We are home to some of the best properties, with state-of-the-art technology and facilities to ensure the success of your next great event. In Business Magazine compiled this guide so companies could compare amenities and make choices for their local events. This guide will be online at inbusinessmag.com for a full year.
It ’s Al l UniqueAbout Bein g & Crea tive
Section
A Guide
to Your
Next G
reat Ev
Sponsor
ent
Elegant Tables & Ballroom Events State-of-the-art Presentations Impressive Locations: W Scottsdale
38
F e b r u a r y 2014
inbusine ssmag.com
Photos courtesy of Rawhide Western Town and Steakhouse, Thunderbird Executive Inn, K1 Speed, Glendale Convention & Visitors Bureau (top to bottom, left to right)
Over the past few years, Arizona has begun to rebound as a major event destination. Always a favorite among tourists and snowbirds, the Valley of the Sun is home to some of the best resorts, performance venues, conference centers and hotels. In Business Magazine presents this year’s guide, showcasing some of the top locations and unique opportunities for a great meeting, convention or corporate event. As in other cities across the country, there is a concerted effort after the recession for many of these properties to look to locals. The word “staycation” spoke to residents vacationing in their home town. Similarly, in an effort to provide business growth, encourage employee satisfaction or enlighten potential clients about services, businesses are looking to their home turf to put on some amazing corporate events. These full-service events range from intimate meetings in a “celebrity chef” restaurant space to a banquets or awards dinner at one of the Valley’s full-sized convention centers or resorts. Businesses here are taking advantage of the major events that we attract. Since the Super Bowl in 1996 and another in 2008 and our latest coming in 2015, as well as the ongoing annual Phoenix Open, NASCAR and other arts & cultural events, corporations locally are spending money and coordinating their own events around these iconic affairs. Hotels report an increase in room occupancy as well as banquet and catering revenue. Surprisingly, much of the hotel banquet and meeting space is occupied by local business. “We have been focusing on marketing our property to local companies for their events,” says Jerry Jensen, director of sales and marketing at The Scottsdale Resort and Conference Center. “More and more companies want to use the incredible assets right here in their own backyard to draw outsiders, build business and put on great events economically.” Jensen notes that this is a new model for many local resorts because properties traditionally focused only on corporate packages out of state. “Local companies are doing regional events that include rooms, catering and banquet facilities.” Efforts to promote and market Arizona are impacting the overall experience as well. “Your tourism industry is working hard to position our state for success and to welcome visitors who, in turn, often become residents and even our state’s top business leaders,” says Debbie Johnson, president and CEO of the Arizona Lodging & Tourism Association. “Creating positive marketing opportunities for Arizona is critical for business attraction and for attracting the world’s top minds and talent to our state,” she adds.
Phoenix
21
5,169
50,000
n/a
Greater Phoenix Convention & Visitors Bureau 125 N. 2nd St., Phoenix, AZ 85004
(602) 944-0569
(602) 254-6500
blackcanyonconferencecenter.com
visitphoenix.com Phoenix
11
5,360
40,000
n/a
Scottsdale Convention & Visitors Bureau
4340 E. Cotton Center Blvd., Phoenix, AZ 85040
4343 N. Scottsdale Rd., Scottsdale, AZ 85251
(602) 431-0001
(480) 421-1004
desertwillowconferencecenter.com
experiencescottsdale.com
Poco Diablo Resort & Conference Center
Sedona
7
3,300
9,000
137
Tempe Tourism Office
Largest Room (in square feet)
# of Meeting Rooms
City Greater Phoenix
62,000
Scottsdale
100,000+
14,000
Tempe
65,000
5,300
Mesa
49,000
5,000
Scottsdale
21
11,200
25,000
312
Phoenix
12
5,472
10,000
295
Phoenix
17
3,500
10,000
242
Phoenix
4
3,696
10,000
232
Tempe
5
4,000
10,000
268
51 W. 3rd St., Tempe, AZ 85281
1752 Arizona 179, Sedona, AZ 86336
(480) 894-8158
(928) 282-7333
tempetourism.com
pocodiablo.com Thunderbird Executive Inn & Conference Center
900,000
Convention & Visitors Bureaus (Cont.)
9440 N. 25th Ave., Phoenix, AZ 85021
Desert Willow Conference Center
# of Sleeping Rooms
Black Canyon Conference Center
Total Meeting Space (in square feet)
Conference Centers
Venue
# of Sleeping Rooms
Total Meeting Space (in square feet)
Largest Room (in square feet)
# of Meeting Rooms
City
Venue
A Guide to Your Next Great Event
Visit Mesa Glendale
30
3,450
45,000
134
120 N. Center St., Mesa, AZ 85201 (480) 827-4700
15249 N. 59th Ave., Glendale, AZ 85306
visitmesa.com
(602) 978-7987 thunderbirdexecutiveinn.com
Hotels
(Profiled on page 47.)
Chaparral Suites Scottsdale 5001 N. Scottsdale Rd., Scottsdale, AZ 85250
Convention Centers Glendale Civic Center
Glendale
22
12,788
50,000
5750 W. Glenn Dr., Glendale, AZ 85301
4300 E. Washington St., Phoenix, AZ 85034
glendaleciviccenter.com Mesa
15
39,150
40,000
263 N. Center St., Mesa, AZ 85201
(602) 273-7778 ichotelsgroup.com
(480) 644-2178
DoubleTree Suites by Hilton Hotel Phoenix
mesaconventioncenter.com Phoenix Convention Center
chaparralsuites.com Crowne Plaza Hotel Phoenix Airport
(623) 930-4300
Mesa Convention Center
(480) 949-1414
Phoenix
90
123,500
> 100,000
320 N. 44th St., Phoenix, AZ 85008
100 N. 3rd St., Phoenix, AZ 85004
(602) 225-0500
(602) 262-6225
doubletreephoenix.com
phoenixconventioncenter.com
Embassy Suites Phoenix Biltmore 2630 E. Camelback Rd., Phoenix, AZ 85016
Convention & Visitors Bureaus Glendale Convention & Visitors Bureau
Phoenix
612,500
60,000
(602) 955-3992 embassysuites3.hilton.com
5800 W. Glenn Dr., Glendale, AZ 85301
Embassy Suites Phoenix - Tempe
(623) 930-4500
4400 S. Rural Rd., Tempe, AZ 85282
visitglendale.com
(480) 897-7444
(Profiled on page 41.)
embassysuites3.hilton.com
inbusine ssmag.com
F e b r u a r y 2014
39
Total Meeting Space (in square feet)
# of Sleeping Rooms
3,000
10,000
242
Sheraton Phoenix Airport Hotel Tempe (480) 967-6600
hotelpalomar-phoenix.com
sheratonphoenixairport.com Phoenix
5
4,500
9,000
128
202 N. Central Ave., Phoenix, AZ 85004
10
3,450
10,000
209
Sheraton Phoenix Downtown Hotel
Phoenix
47
28,256
80,000
1,000
Mesa
12
3,650
9,000
114
Scottsdale
7
10,000
10,000
431
Phoenix
76
24,576
100,000
736
Phoenix
56
20,000
> 100,000
740
Carefree
32
14,950
20,000
223
Carefree
17
11,000
35,000
224
340 N. 3rd St., Phoenix, AZ 85004
(602) 253-4121 hotelsancarlos.com
(602) 262-2500 Scottsdale
14
4,000
15,000
233
6850 E. Main St., Scottsdale AZ 85251
sheratonphoenixdowntown.com Windemere Hotel & Conference Center
(480) 248-2000 hotelvalleyho.com
5750 E. Main St., Mesa, AZ 85205 Phoenix
32
12,000
45,000
693
(480) 985-3600 windemerehotelmesa.com
122 N. 2nd St., Phoenix, AZ 85004 (602) 252-1234
Zona Hotel & Suites Scottsdale
phoenix.hyatt.com Phoenix Marriott Mesa
Largest Room (in square feet)
10
1600 S. 52nd St., Tempe, AZ 85281
Hyatt Regency Phoenix
# of Meeting Rooms
Phoenix
(602) 253-6633
Hotel Valley Ho
Tempe
Hotels (Cont.)
2 E. Jefferson St., Phoenix, AZ 85004
Hotel San Carlos
City
Hotel Palomar Phoenix, a Kimpton Hotel
Venue
# of Sleeping Rooms
Total Meeting Space (in square feet)
Largest Room (in square feet)
# of Meeting Rooms
City
Venue
Hotels (Cont.)
Mesa
27
9,200
 60,000
274
200 N. Centennial Way, Mesa, AZ 85201
7677 E. Princess Blvd., Scottsdale, AZ 85255 (480) 585-1234 zonascottsdale.com
(480) 898-8300 marriott.com Radisson Hotel Phoenix Chandler
Chandler
7
1,800
7,000
159
Resorts
7475 W. Chandler Blvd., Chandler, AZ 85226
Arizona Biltmore, A Waldorf Astoria Hotel
(480) 961-4444
2400 E. Missouri Ave., Phoenix, AZ 85016
radisson.com Renaissance Phoenix Downtown Hotel
Phoenix
20
20,020
60,000
527
(602) 955-6600 arizonabiltmore.com
50 E. Adams St., Phoenix, AZ 85004
Arizona Grand Resort & Spa
(480) 336-8129
8000 Arizona Grand Pkwy., Phoenix, AZ 85044
marriott.com Renaissance Phoenix Glendale Hotel & Spa
Glendale
17
30,000
> 100,000
320
9495 W Coyotes Blvd, Glendale, AZ 85305
34631 N. Tom Darlington Dr., Carefree, AZ 85377
renaissanceglendale.com Scottsdale
13
1,380
8,000
243
(480) 488-9009 theboulders.com
7325 E. 3rd Ave., Scottsdale, AZ 85251
Carefree Resort & Conference Center
(480) 945-1550 marriott.com Sheraton Crescent Hotel
arizonagrandresort.com Boulders, A Waldorf Astoria Resort
(623) 937-3700
Scottsdale Marriott Suites Old Town
(602) 438-9000
Phoenix
15
30,000
30,000
342
37220 N. Mule Train Rd., Carefree, AZ 85377
2620 W. Dunlap Ave., Phoenix, AZ 85021
(480) 488-5300
(602) 943-8200
carefree-resort.com
sheratoncrescent.com
40
F e b r u a r y 2014
inbusine ssmag.com
CVB Profile
Glendale Convention & Visitors Bureau
The Glendale Convention & Visitors Bureau prides itself on creating the ultimate experience for meeting planners; one that results in a compressive approach from conception to implementation of an event or meeting. Staff can assist with a meeting planner’s every need, whether it’s arranging accommodations, coordinating transportation, scheduling dining or developing an itinerary with day and night activities for meeting attendees. It’s not “all work and no play” in Glendale, where visitors can immerse themselves in a wide array of activities outside of workrelated business. World-renowned facilities, attractions and signature festivals attract millions of tourists each year. This is, in part, due to Glendale’s Sports & Entertainment District, including Westgate City Center and Cactus League Spring Training, but it’s also because the Glendale Convention & Visitors Bureau has worked to present our
At-A-Glance Offices Address: 5800 W. Glenn Dr., Suite 140, Glendale, AZ 85301 Phone: (623) 930-4500 • (877) 800-2601 Website: www.visitglendale.com
community as a well-rounded destination point for travelers, highlighting not just professional sports, but also festivals, arts and cultural amenities as well as family-oriented entertainment options. The Glendale Convention & Visitors Bureau is ready to help with your research and coverage of Glendale and West Valley travel destinations. For more information, call (877) 800-2601 or visit visitglendale.com.
Most Distinguishing Feature: Multiple city events and cultural attractions. Home of the Phoenix Coyotes and Arizona Cardinals. Year Established Locally: 1997 Event Planning Services: Yes Food & Beverage: Many local and nationally known restaurants and bars. Transportation & Access: Yes Parking / Valet: Accessible parking through the many attractions.
For an extraordinary meeting, start with an amazing place. Glendale and the West Valley have plenty of unique spaces for groups of 7 to 70,000. Our year-round golf, world-class entertainment, pro sports and endless outdoor recreation raise excitement to a whole new level. And best of all, we’re just minutes from Sky Harbor International Airport in one of the nation’s top travel destinations. Ready for a meeting that’s hard to top? Contact the Glendale Convention & Visitors Bureau today.
GLENDALE , AZ CONVENTION & VISITORS BUREAU Showcasing the West Valley
Visitglendale.com 623-930-4500 inbusine ssmag.com
Urban ExcitEmEnt
Shopping & Dining
SportS
rElaxation aDvEntUrE
F e b r u a r y 2014
41
8,000
32
JW Marriott Scottsdale Camelback Inn Resort & Spa
Scottsdale
23
12,064
40,000
378
Millennium Resort & Villas Scottsdale 7401 N. Scottsdale Rd., Scottsdale, AZ 85253
(480) 947-5400
(480) 948-5050
doubletree.hilton.com
millenniumhotels.com Scottsdale
47
22,500
> 100,000
648
The Phoenician
7575 E. Princess Dr., Scottsdale, AZ 85255
6000 E. Camelback Rd., Scottsdale, AZ 85251
(480) 585-4848
(480) 423-2449
fairmont.com
thephoenician.com Scottsdale
6
2,925
8,000
162
7300 E. Gainey Suites Dr., Scottsdale, AZ 85258
Phoenix Marriott Tempe at The Buttes
(480) 922-6969
2000 W. Westcourt Way, Tempe, AZ 85282
gaineysuiteshotel.com
(800) 228-9290 Grand Canyon
3
3,425
5,000
250
Pointe Hilton Squaw Peak Resort 7677 N. 16th St., Phoenix, AZ 85020
grandcanyonsquire.com
(602) 997-2626 Maricopa
4
4,784
5,000
300
Pointe Hilton Tapatio Cliffs Resort
(480) 802-5000
11111 N. 7th St., Phoenix, AZ 85020
harrahsakchin.com
(602) 866-7500 Scottsdale
7
1,989
6,000
 34
(602) 955-8614 hermosainn.com
(480) 948-2100 Scottsdale
32
14,280
70,000
493
6
2,365
10,000
125
Scottsdale
26
20,533
> 100,000
643
Tempe
15
10,000
40,000
354
Phoenix
46
9,760
48,000
640
Phoenix
26
20,000
65,000
584
9
5,500
9,000
105
Scottsdale
21
10,080
40,000
404
Scottsdale
50
11,000
50,000
326
sanctuaryoncamelback.com Scottsdale Plaza Resort
7500 E. Doubletree Ranch Rd., Scottsdale, AZ 85258
7200 N. Scottsdale Rd., Scottsdale, AZ 85253
(480) 444-1234
(480) 948-5000
scottsdale.hyatt.com
scottsdaleplaza.com Phoenix
40
33,218
> 100,000
950
Scottsdale Resort & Conference Center
(800) 228-9290
7700 E. McCormick Pkwy., Scottsdale, AZ 85258
marriott.com
(480) 991-9000
5350 Marriott Dr., Phoenix, AZ 85054
Scottsdale
tapatiocliffshilton.com
5700 E. McDonald Dr., Paradise Valley, AZ 85253
JW Marriott Phoenix Desert Ridge Resort & Spa
453
Sanctuary Camelback Mountain Scottsdale
5532 N. Palo Cristi Rd., Scottsdale, AZ 85253
Hyatt Regency Scottsdale Resort and Spa at Gainey Ranch
40,000
squawpeakhilton.com
15406 N. Maricopa Rd., Maricopa, AZ 85139
Hermosa Inn
19,968
marriott.com
(800) 622-6966
Harrah’s Ak-Chin
20
marriott.com
5401 N. Scottsdale Rd., Scottsdale, AZ 85250
74 Arizona 64, Grand Canyon Village, AZ 86023
# of Sleeping Rooms
6,000
(480) 948-1700
Grand Canyon Squire Inn
Total Meeting Space (in square feet)
2
copperwynd.com
Gainey Suites Hotel
Largest Room (in square feet)
Fountain Hills
5402 E. Lincoln Dr., Scottsdale, AZ 85253
Fairmont Scottsdale Princess
Scottsdale
Resorts (Cont.)
(480) 333-1900
DoubleTree Resort by Hilton Hotel Paradise Valley Scottsdale
# of Meeting Rooms
13225 N. Eagle Ridge Dr., Fountain Hills, AZ 85268
City
CopperWynd Resort and Club
Venue
# of Sleeping Rooms
Total Meeting Space (in square feet)
Largest Room (in square feet)
# of Meeting Rooms
City
Venue
Resorts (Cont.)
thescottsdaleresort.com
42
F e b r u a r y 2014
inbusine ssmag.com
Special Venue Profile
K1 Speed
Since 2003, K1 Speed has become the nation’s largest indoor kart racing chain, with 23 indoor race tracks at 18 centers nationwide and more locations to open in the future. We are proud to offer you the largest indoor race cart track in the U.S., along with high-performance, zero-emission European electric karts. Our nationwide indoor go kart racing locations are open to the general public seven days a week when not reserved for a private event. You can race against the clock or race against a friend — our Arrive and Drive
allows individuals to come in and shoot for the best fast lap against friends, family and other racers. With each race, you’ll receive a Race Result Sheet based on our K1RS system that allows you to compare your times and rank against other drivers, and you can even check your results online to see how you fare against the best of the week or month. Each Arrive and Drive session lasts for about ten minutes and may include 1-12 drivers, depending on the location and track size. First-time drivers will receive a mandatory briefing session on rules and safety.
At-A-Glance Venue Address: 2425 S. 21st St., Phoenix, AZ 85034 Phone: (602) 275-5278 Website: www.k1speed.com Most Distinguishing Feature: 100% Emissionsfree European-styled Electric Go Karts. Total Exhibit Hall/Space (in sq. ft.): 50,000 Largest Contiguous Space (in sq. ft.): 1,000 Year Established Locally: 2011 Number of Events in 2013: 364 Food & Beverage on Property: Yes Parking / Valet: Yes
AMERICA’S PREMIER INDOOR KARTING CENTER 100%
ELECT RIC
SPACIOUS LOBBIES
ARRIVE & DRIVE . ADULTS AND JUNIORS 48” AND UP
(602) 275-5278 K1SPEED.com
CORPORATE EVENTS
K1 SPEED PHOENIX 2425 SOUTH 21st ST, PHOENIX, AZ 85034
AZ - PHOENIX, CA - CARLSBAD . IRVINE . ANAHEIM . TORRANCE . ONTARIO . SANTA CLARA . SAN FRANCISCO SACRAMENTO . SAN DIEGO, FL - FT LAUDERDALE . MIAMI, IL - BUFFALO GROVE . ADDISON, TX - AUSTIN HOUSTON . SAN ANTONIO . DALLAS, WA - SEATTLE
inbusine ssmag.com
F e b r u a r y 2014
43
Total Meeting Space (in square feet)
# of Sleeping Rooms
17,374
> 100,000
500
Babylon Banquet Hall
2
10,000
10,000
Phoenix
1
22,000
22,000
Phoenix
2
10,000
10,000
2
1,800
3,000
8035 N. 43rd Ave., Phoenix, AZ 85051 (623) 930-9049 babylonbanquethall.com Bentley Projects Scottsdale
22
24,556
100,000
496
9800 E. Indian Bend Rd., Scottsdale, AZ 85256
215 E. Grant St., Phoenix, AZ 85004 (480) 946-6060 bentleygallery.com
(866) 877-9897
Boojum Tree
talkingstickresort.com
16026 N. 36th St., Phoenix, AZ 85032 Scottsdale
15
3,700
10,000
224
7277 E. Camelback Rd., Scottsdale, AZ 85251
(602) 867-8975 boojumtree.com The Carnegie Center
(480) 970-2100
Phoenix
1101 W. Washington St., Phoenix, AZ 85007
wscottsdalehotel.com Scottsdale
65
24,541
> 100,000
732
6902 E. Greenway Pkwy., Scottsdale, AZ 85254
(for nonprofits only)
(602) 926-3604 azlibrary.gov Castles ‘n’ Coasters
(480) 624-1000
Phoenix
2
3,935
5,000
Phoenix
1
3,600
3,600
Phoenix
5
7,500
12,000
Phoenix
5
40,000
80,000
Phoenix
2
2,500
5,500
Phoenix
5
4,200
5,000
9445 N. Metro Pkwy. E., Phoenix, AZ 85051
kierlandresort.com Wigwam
Largest Room (in square feet)
40
wildhorsepassresort.com
Westin Kierland Resort & Spa
# of Meeting Rooms
Chandler
(602) 225-0100
W Scottsdale
Phoenix
Special Event Venues (Cont.)
5594 W. Wild Horse Pass Rd., Chandler, Arizona 85226
Talking Stick Resort
City
Sheraton Wild Horse Pass Resort & Spa
Venue
# of Sleeping Rooms
Total Meeting Space (in square feet)
Largest Room (in square feet)
# of Meeting Rooms
City
Venue
Resorts (Cont.)
Phoenix
25
10,800
45,000
331
300 E. Wigwam Blvd., Litchfield Park, AZ 85340
(602) 997-7575 castlesncoasters.com The Cedars Banquet Hall
(623) 935-3811
1702 E. Northern Ave., Phoenix, AZ 85020
wigwamarizona.com
(602) 944-2566 cedarsbanquethall.com Children’s Museum of Phoenix
Special Event Venues Arcadia Ice Arena
215 N. 7th St., Phoenix, AZ 85034 Phoenix
2
15,000
15,700
(Ice Rink)
3853 E. Thomas Rd., Phoenix, AZ 85018
childrensmuseumofphoenix.org
(602) 957-9966
Comerica Theatre
arcadiaice.com Arizona Center
Phoenix
400 E. Van Buren St., Phoenix, AZ 85004 (602) 271-4000
Outside Space only
n/a
21
39,600
45,000
Phoenix
400 W. Washington St., Phoenix, AZ 85003 (602) 379-2800 comericatheatre.com
arizonacenter.com Arizona Diamondbacks Chase Field
(602) 253-0501
> 100,000
Cutler-Plotkin Jewish Heritage Center 122 E. Culver St., Phoenix, AZ 85004
401 E. Jefferson St., Phoenix, AZ 85004
(602) 241-7870
(602) 462-6500
azjhs.org
azchasefield.com Arizona Science Center 600 E. Washington St., Phoenix, AZ 85004
Desert Botanical Garden Phoenix
9
n/a
n/a
1201 N. Galvin Pkwy., Phoenix, AZ 85008 (480) 941-1225 dbg.org
(602) 716-2000 azscience.org
44
F e b r u a r y 2014
inbusine ssmag.com
Special Venue Profile
Rawhide Western Town & Steakhouse
Rawhide Western Town & Steakhouse is the Valley’s premier western venue, offering groups a unique journey back in time. Encompassing more than 160 acres of beautiful Sonoran Desert, Rawhide is nestled in the center of the Wild Horse Pass area, located in Chandler and in close proximity
to Phoenix, Scottsdale, Tempe and Mesa. Rawhide Western Town & Steakhouse is the perfect place to host a private event whether you are a group of 10 or 10,000, offering 14 distinct private venues, all providing a true western flare to any event. Rawhide’s Frontier Hall is the East Valley’s largest special event venue, offering 45,000 square feet of continuous indoor space adjacent to the 50,000-square-foot Sonoran Lawn. Rawhide’s Group Sales team will provide complete service, which includes planning from the vision to the execution of the event, personalized group menu creation, and access to top-notch unique entertainment. We look forward to welcoming you to our 1880s western town with a true taste of the Old West you’ll not find anywhere else in Arizona! For additional information, visit www.Rawhide.com or call the Group Sales Department at (480) 502-5600 for availability and menus.
At-A-Glance Venue Address: 5700 W. North Loop Rd., Chandler, AZ 85226 Phone: (480) 502-5600 Website: www.Rawhide.com Most Distinguishing Feature: Western Town & Steakhouse Largest Contiguous Space (in sq. ft.): 45,000 Year Established Locally: 1970 Number of Events in 2013: 243 Nearest Hotel: Sheraton Wild Horse Pass Resort & Casino Event Planning Services: Yes Food & Beverage on Property: Yes Transportation & Access: Yes Parking / Valet: Yes
Bring your next corporate event West! Rawhide Western Town & Steakhouse in Chandler — in close proximity to Phoenix, Scottsdale, Tempe and Mesa — is the perfect place to host a private event.
Groups of 10 to 10,000 Distinct private venues available
Provide a True Western Flare to any event… Frontier Hall is the East Valley’s Largest Event Venue. • 45,000 sq. ft. of continuous indoor space • Adjacent to the 50,000-sq.-ft. Sonoran Lawn • Full-service facility with Catering & Event Planning
Contact the sales department: info@rawhide.com or (480) 502-5600 inbusine ssmag.com
rawhide.com F e b r u a r y 2014
45
n/a
3
2,500
n/a
Phoenix Art Museum
10,000
Phoenix Zoo Phoenix
7
5,293
20,000
n/a
Phoenix
16
4,000
4,300
Chandler
10
46,000
> 75,000
Phoenix
4
2,500
3,000
Phoenix
2
6,500
9,000
Phoenix
2
n/a
n/a
Phoenix
3
4,600
6,400
Phoenix
1
2,500
2,500
Phoenix
1
2,250
2,250
Phoenix
13
1,075
3,000
phoenixzoo.org
Herberger Theater Center
5700 W. North Loop Rd., Chandler, AZ 85226
Phoenix
6
2,980
9,000
222 E. Monroe St., Phoenix, AZ 85004
(480) 502-5600
(602) 254-7399
rawhide.com
herbergertheater.org
(Profiled on page 45.) Phoenix
1
1,000
1,000
Secret Garden
2425 S. 21st St., Phoenix, AZ 85034
2501 E. Baseline Rd., Phoenix, AZ 85042
(602) 275-5278
(602) 268-5522
k1speed.com
secretgardenevents.com
(Profiled on page 43.)
Stand Up Live Phoenix
3
4,500
6,000
50 W. Jefferson St., Phoenix, AZ 85003
214 E. Roosevelt St., Phoenix, AZ 85004
(480) 719-6100
(602) 253-0339
standuplive.com
monorchid.com
Turf Paradise Phoenix
4
9,908
14,000
1501 W. Bell Rd., Phoenix, AZ 85023 (602) 942-1101
1431 E. Dunlap Ave., Phoenix, AZ 85020
turfparadise.com
(602) 943-2656
University of Arizona College of Medicine
mprc.net Phoenix
6
9,300
30,000
550 E. Van Buren St., Phoenix, AZ 85004
4725 E. Mayo Blvd., Phoenix, AZ 85050
(602) 827-2001
(480) 478-6000
medicine.arizona.edu
mim.org
Valley Youth Theatre Phoenix
2
1,920
3,000
525 N. 1st St., Phoenix, AZ 85004 (602) 253-8188
3131 S. Central Ave., Phoenix, AZ 85040
vyt.com
(602) 468-6470
Venue at the Grove
riosalado.audubon.org
7125 E. Chauncey Ln., Phoenix, AZ 85054
n/a
(602) 273-1341
Rawhide
Penske Racing Museum
4
455 N. Galvin Pkwy., Phoenix, AZ 85008
heard.org
Nina Mason Pulliam Rio Salado Audubon Center
Phoenix
14424 N. 32nd St., Phoenix, AZ 85032 thephoenixlodge.com
(602) 252-8840
Musical Instrument Museum
(602) 482-2339
2301 N. Central Ave., Phoenix, AZ 85004
Mountain Preserve Reception Center
6,600
phxart.org
gameworks.com
MonOrchid
n/a
(602) 257-1222
(480) 839-4263
K1 Speed
5
1625 N. Central Ave., Phoenix, AZ 85004
5000 S. Arizona Mills Cir., Tempe, AZ 85282
Heard Museum
# of Sleeping Rooms
Outdoor picnicstyle only
The Phoenix Lodge Phoenix
Phoenix
Special Event Venues (Cont.)
enchantedisland.com GameWorks - Tempe
Total Meeting Space (in square feet)
(602) 254-1200
Largest Room (in square feet)
1202 W. Encanto Blvd., Phoenix, AZ 85007
# of Meeting Rooms
Phoenix
City
Enchanted Island Amusement Park
Venue
# of Sleeping Rooms
Total Meeting Space (in square feet)
Largest Room (in square feet)
# of Meeting Rooms
City
Venue
Special Event Venues (Cont.)
Phoenix
2
2,500
5,000
7010 S. 27th Ave., Phoenix, AZ 85041 (602) 456-0803 venueatthegrove.com
(480) 538-4444
The Wrigley Mansion
penskeracingmuseum.com
2501 E. Telawa Trail, Phoenix, AZ 85016 (602) 955-4079 wrigleymansionclub.com
46
F e b r u a r y 2014
inbusine ssmag.com
Hotel Profile
Thunderbird Executive Inn
Thunderbird Executive Inn is located on the corner of 59th Avenue and Greenway in Glendale. The hotel is located on the campus of the renowned Thunderbird School of Global Management. The school was once an airbase established to train American, Canadian, British and Chinese pilots during World War II. Several landmark buildings, including the airfield control tower, barracks and airplane hangar, can still be seen on campus. Then, in 1946, the base was transformed into the first-ever graduate business school to focus exclusively on international management. The school is a landmark in Glendale; however, the hotel remained a secret. In 2006, Thunderbird Executive Inn opened its doors to the public. The hotel offers 134 newly renovated guestrooms, an outdoor saltwater pool and access to the YMCA. Additional amenities, such as the complimentary 24-hour snack lounge, complimentary parking and wireless
At-A-Glance Hotel Address: 15249 N. 59th Ave., Glendale, AZ 85306 Phone: (602) 978-7987 Website: thunderbirdexecutiveinn.com
Internet, brands the hotel as the “Hidden Gem” of Glendale. With many tiered auditorium-style meeting rooms, a 14,000-square-foot pavilion, numerous outdoor venues and a full-service catering department, Thunderbird Executive Inn is the ideal location in the West Valley for meetings and events. Call (602) 978-7987 for more information.
Most Distinguishing Feature: Located on the historic campus of Thunderbird School of Global Management with 40,000 square feet of meeting space, including six state-of-theart auditoriums and 24 breakout rooms. Year Established Locally: 1996 Event Planning Services: Yes Food & Beverage: Yes Transportation & Access: Yes Parking / Valet: Yes
Thunderbird Executive Inn & Conference Center | Glendale, Arizona
1 Global
Thunderbird Executive Inn & Conference Center is a unique Arizona destination serving clients from around the world. Nestled on the historic campus of Thunderbird School of Global Management, the recently renovated Thunderbird Executive Inn will surprise and delight you with: 4 134 upscale guest rooms 4 More than 40,000 square feet of meeting space, including six state-of-the-art auditoriums and 24 breakout rooms 4 Unique diversions such as the world famous Thunderbird Pub, located in an historic WWII military airfield control tower Whether you’re planning a conference, business meeting, training program, trade show or simply a vacation escape to sunny Arizona — our hotel and conference center is an exceptional choice.
www.thunderbirdexecutiveinn.com 1 Global Place, Glendale, AZ 85306 Inquiries: 602.978.7987 Email: hotelsales@thunderbird.edu
inbusine ssmag.com
F e b r u a r y 2014
47
CONSIDER US THE LAST RESORT. BECAUSE YOU’LL NEVER NEED TO LOOK ANYWHERE ELSE You’ll know you’ve made the right choice before the meeting even begins. Because we listen. We never rest. Our facilities and support staff handle your meeting with effortless elegance. And we stay focused on you, your vision and your clients. It’s how we work. So it never feels like work to you. It just feels right.
FOR MORE INFORMATION, VISIT KIERLANDMEETINGS.COM OR CALL 480.624.1000
© 2014 Starwood Hotels & Resorts Worldwide, Inc. All rights reserved. Westin is a registered trademark of Starwood Hotels & Resorts Worldwide, Inc., or its affiliates.
Index Index by Name Armstrong, Michael, 25
Heidt, Robert W. Jr., 27
Martin, Marty, Psy.D., 24
Renner, Becky, 18
Balitis, John J. Jr., 30
Hirsch, Ken, 11
McConnell, Gordon, 18
Russell, Mark, 16
Bedrick, Bruce, M.D., 12
Holladay, Royce, 32
Meltzer, Jacob, 12
Shireman, Bill, 50
Bredin, Alice, 13
Hyun, Jane, 25
Mitchell, Dave, 27
Smith, Don, 14
Brennan, William, 10
Iyer, Vaidy, 18
Mitchell, Lovely Unique, 18
Steffen, Alex, 27
Brosseau, Denise, 25
Johnson, Dawn, 27
Myers, Laura, 18
Sydenham, Debra, 27
Cunningham, Briggs, 11
Johnson, Jamar, 12
Neighbors, Derek, 18
Thornton, Heather, 26
Curto, Leonard, 18
Kawasaki, Guy, 25
Owens, Heather, 18
Thorsvik, Josh, 12
Eberenz, Jack, 10
Knutson-Felix, Sharon, 26
Parry, Jay, 27
Weiers, Jerry, Mayor, 27
Eoyang, Glenda, Ph.D., 32
Lee, Audrey S., 25
Parsons, Bob, 9
Welsh, Bob, 26
Fieri, Guy, 36
Leonesio, John, 10
Piasecki, Bruce, Ph.D., 50
Witwer, Robert, 18
Fleming, Sandi, 18
Lippert, Steve, 11
Pursell, Jimmie W. Jr., 30
Woodbury, Tamara, 26
Glendale Chamber of Commerce, 27
SCF Arizona, 3, 14
Travel Assurance Promise, 4
Glendale Convention &
Scottsdale Area
Urban Land Institute, 27
Index by Company 100 Club of Arizona, 26 ADP Research Institute, 18
Visitors Bureau, 41
Chamber of Commerce, 28
West Valley Women, 28
AHC Group, 50
Glendale, City of, 27, 28
SightCompass LLC, 11
Alerus Financial, 5
GoDaddy, 9
Snell & Wilmer, 7
Alliance Bank of Arizona, 52
Greater Phoenix Chamber of
SRP, 15
WIN Home Inspection Thunderbird, 18
St. Francis, 36
Women of Scottsdale, 28
Surprise Regional
World Beacon Technologies, 11
American Express OPEN, 13
Commerce, 28
Westin Kierland Resort & Spa, The, 48
appsFreedom, 18
Heckler Design, 34
Arizona Commerce Authority, 18
Honeywell Aerospace, 18
Arizona Small Business Association, 28
Human Systems Dynamics Institute, 32
TechAmerica Foundation, 18
YAM Worldwide, 9
Arizona State Credit Union, 27
Ideal Insurance Agency, 27
Tempe Chamber of Commerce, 28
Z’Tejas Southwestern Grill, 36
Arizona Super Bowl
Innovations Incubator, 18
Thunderbird Executive Inn &
Host Committee, 27
Integrated Franchise Partners, 10
Arizona Technology Council, 18, 28
Inventors Association of Arizona, 18
Arizona Technology Enterprises, 18
Jennings, Strouss & Salmon, 30
Bibby Financial Services, 4
Joint Corp., The, 10
BMW, 34
K1 Speed, 43
Brother, 34
Kalologie, 10
CallSnap, 11
Keep It Cut, 12
Camp Bow Wow, 18
KTAR News Talk 92.3, 31
Central Phoenix Women, 28
La Piaza Al Forno, 36
Chandler Chamber of Commerce, 28
Locality, 11
Community Basketball Leagues, 12
MagTek, 34
CopperPoint, 3, 14
Massage Envy, 10
Cox Business, 51
Mastery Media Marketing, 11
DeFalco’s Italian Eatery,
Medbox, 12
Grocery & Deli, 36 DePaul University, 24 Economic Club of Phoenix, 28
Oregano’s Pizza Bistro, 14
Entrepreneurship &
Peoria Chamber of Commerce, 28 Polsinelli, 17
FlightAware, 11
PostNet, 18
Future 500, 50
Precision Holdings of Brevard, 10
Gangplank, 18
Rawhide Western
inbusine ssmag.com
this issue of In Business Magazine.
Check Out
/inbusinessmagphx
@inbusinessmag
It's THE Hub to Building Business
Phoenix Suns, 2
Fennemore Craig, 30
Cactus-Pine Council, 26
Bold listings are advertisers supporting
Women Business Owners, 28 Orangetheory Fitness, 18
Girl Scouts–Arizona
Conference Center, 47
Worldchanging, 27
National Association of
Driver Provider, The, 35
Innovation Group, 18
Chamber of Commerce, 28
Town and Steakhouse, 45 Regus, 35
F e b r u a r y 2014
49
Roundtable
A Candid Forum
Companies Must Be Open to Stakeholders Who Criticize “Social responsibility” has become a powerful force that, combined with social media and the Internet, is forcing global corporations to change the way they do business. by Mike Hunter Now is a new age of stakeholder activism. From single billionaires seeking to disrupt boards to activist “Davids” in the field launching stones at the temple of these global Goliaths, more and more passionate — and very vocal — critics are scrutinizing how corporations handle issues like energy, water use, conservation and social justice. “‘Corporate mansions’ have taken on the role formerly held by nation states like France or England,” says Bruce Piasecki, who holds a doctorate in Environmental Management from Cornell University and is the author of the new book Doing More with Teams: The New Way to Winning. This new role implies an expanded sense of responsibility that reaches far beyond the old “making money for shareholders” focus. Says Bill Shireman, co-founder and CEO of Future 500 and author of Engaging Outraged Stakeholders, stakeholders — who include investors, regulators and citizens — are looking beyond immediate gains to how corporate decisions might impact their children’s future.
Humanizing Stops Demonizing Stakeholder engagement breaks the hold of corporate demonization, say Shireman and Dr. Piasecki. The first objective, when dealing with outraged activists, can be summed up in one word: humanize — yourself, your company, even your adversary. It’s only by displaying its place and awareness in the neighborhood of concerns that a company can be trusted again. Corporate strategy, once the realm of only the general council, the business P and L leaders, and the board, is now something more available for inspection. “We do not advocate disclosing your corporate strategy, your competitive advantage,” clarifies Dr. Piasecki. “Instead, companies like Coca-Cola, Toyota, and even Warren Buffett firms are beginning to offer stakeholders a chance to reply to key public
50
F e b r u a r y 2014
choice points about their supply chain, their choices of energy selection and, at times, even glimpses into their product redesign choices.” Of course, disclosure is only the start. According to Shireman, the essence of sophisticated and successful stakeholder engagement is dialogue and sustained structured exchange. “That is why it is a mistake to begin engaging your stakeholders in a formal, scripted manner,” he notes. “What we recommend is more like a dance of dialogue, what the best trial attorneys call ‘structured discovery’ or mutually derived ways to outsmart an impasse.” The key to a successful “dance of dialogue”? Shireman and Dr. Piasecki say it is understanding the emotional make-up of human beings. “Some social scientists believe humans are wired to respond to challenges with six major core emotions,” notes Dr. Piasecki. “They are anger, fear, disgust, surprise, sadness and happiness. As Darwin pointed out, ‘The same state of mind is expressed throughout the world with remarkable uniformity.’ The fact that we’re all hardwired to be emotional in fundamental ways is as applicable in business as it is in the realms of poetry, theater and literature. As you seek to redesign your corporate mansion, it’s good to keep these fundamentals in mind.”
Redesigning the Steps from the Corporate Mansion into the Neighborhood So how does one engage stakeholders? These are ten steps Future 500 and the AHC Group often follow when helping companies and stakeholders find common ground: 1. Set the business objectives. 2. Inventory and map the stakeholders — by category, risk, opportunity and modes of engagement. 3. Select priority and strategic stakeholders — a business cannot work with everyone in the neighborhood, but it must have balanced representation. 4. Plan the engagement process — so as to
seek quick wins, add momentum and anchor change in the results. 5. Train the team — there is a magic in teams that is inclusive and best run when transparent. 6. Engage informally. 7. Engage formally only when necessary. 8. V alidate leadership opportunities; share ownership. 9. D evelop a shared vision — this offers the neighborhood a set of shared actionable understandings. 10. Follow through: Lead change and share credit.
“In all cultures, people tell stories about Davids and Goliaths,” says Shireman. “They recite poetry about the quest for social justice. … They wonder about the causes of good and bad fortune. And they concoct theories of the universe and how we think.” “But in the end, it is only through participation in the actions of the neighborhood that corporate leaders can regain trust and be given the license for further growth,” adds Dr. Piasecki. Noting it is the job of stakeholders to remind business owners and managers of their world view and preferences, he says, “The corporations that survive, profit and grow in the near future will be more open, transparent and responsive than ever before.” AHC Group, Inc. ahcgroup.com Future 500 future500.org
Dr. Bruce Piasecki is the president and founder of AHC Group, Inc., a management consulting firm specializing in energy, materials and environmental corporate matters whose clients include Suncor Energy, Toyota and other global companies in his Corporate Affiliates training workshops. Bill Shireman is the president and CEO of Future 500, which helps the world’s largest companies and most impassioned activists — from Coca-Cola, General Motors, Nike, Mitsubishi and Weyerhaeuser to Greenpeace, Rainforest Action Network and the Sierra Club — work together to improve the profits and performance of business.
inbusine ssmag.com
Get to know the
BUSINESS SIDE OF COX. Cox Business has built a robust Arizona infrastructure with 23,000 miles of 99.99+% reliable Hybrid Fiber/Coax connecting to a fully redundant national backbone. Cisco-certified technicians on the ground and continuous monitoring from our Regional Operations Center resolve problems before they impact your enterprise. It’s a network designed to exceed business continuity requirements and service designed to exceed expectations. That’s how we do business.
623-594-5238 coxbusinessaz.com
Internet. Data. Phone.