April 2016 Issue of In Business Magazine by InMedia

APR. 2016

Special Section: The 2016 Business Healthcare Services Guide

HEALTH CARE Can employers make it good for business?

Digital

Forces Change in

Business

Hidden

Roadblocks to Innovation

PPACA’s

Employer Shared

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THIS ISSUE National Association of Women Business Owners – Phoenix

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APRIL 2016

COVER STORY

Healthcare and Good Business

Delving into coverage programs and delivery models currently in place, the role of employers and individual healthcare consumers, and emerging opportunities to improve healthcare, industry leaders share their insights and expertise with In Business Magazine editor RaeAnne Marsh. FEATURES

Releasing the Hidden Innovation Brakes

Does a business get in its own way on new ideas? Answering in the affirmative, Stuart Cross discusses how this happens and how to avoid it.

Digital Forces a Change in World of Work

Companies are compelled to radically change their organizational structure and talent strategies. DEPARTMENTS

9 PARTNER SECTION

Guest Editor

Steve Purves, president and CEO of Maricopa Integrated Health System, introduces the “Healthcare” issue.

Celebrating 30 years of serving the women business owners of Phoenix

Spring 2016 • nawbophx.org

Message from the President The Valley’s Premier Event for Women Entrepreneurs is Now Presented by NAWBO! About NAWBO NAWBO® prides itself on being a global beacon for influence, ingenuity and action and is uniquely positioned to provide incisive commentary on issues of importance to women business owners. NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power. We host networking and education events throughout the valley each month, open to both members and guests. Check out our calendar at NAWBOphx.org and join us! Take advantage of this great networking opportunity by bringing business cards and making connections.

Photos courtesy of Grassroots Kitchen & Tap (top), Morning Squeeze (bottom)

For more information, please visit NAWBOphx.org. Phoenix Metropolitan Chapter of the National Association of Women Business Owners 7949 E Acoma Dr., #207 Scottsdale, Arizona 85260 480-289-5768 info@NAWBOphx.org

Change is one of the few constants in life and especially in business. That’s why it’s so important for entrepreneurs to invest

Feedback

regularly in their personal and professional growth. For busy women business owners, however, there’s no time for events that are full of fluff and non-stop sales pitches. That’s why Susan Ratliff’s Women Entrepreneurs’ Small Business Boot Camp is now in its 12th year — it’s the hard-hitting, no-fluff, get-down-to-business event where women business owners can get practical tips they can use now to excel in marketing, selling, prospecting, networking and technology. It’s also the place where phenomenal women come together to forge powerful business relationships. There’s plenty of time for networking and browsing the exhibitor hall to discover new businesses and reconnect with old acquaintances. And now, the Phoenix Chapter of the National Association of Women Business Owners is proud to be the presenting sponsor of this one-of-a-kind event. For this issue we asked the experts who will be workshop presenters at the Boot Camp to share a slice of their expertise with you. So mark your calendars now for the Women Entrepreneurs’ Small Business Boot Camp on May 7th! You can register at WomensBusinessBootCamp.com. The registration price goes up on April 15, so lock in your spot now if you want to save some dough.

Nancy Sanders 2015-2016 President NAWBO Phoenix Chapter Maricopa Small Business Development Center Regional Center Director 480.784.0596 nancy.sanders@domail.maricopa.edu Years in Business: Joined NAWBO:

20 2008

Exhibit space and sponsorships are also available; exhibit space usually sells out and is on a first-come, first-serve basis.

Noted business leaders Chad Falkenberg, Carson Holmquist and Nathan Perrins respond to In Business Magazine’s burning business question of the month.

We look forward to seeing you on May 7th!

NAWBO NEWS

National Association of Women Business Owners – Phoenix

SPECIAL SECTION

Briefs

“Global Payments,” “Talent Captured,” “Top Temp Talent,” “Financially Serving the Hispanic Market,” “Making Change through Innovation,” “Whiskey Row with Aggie Roots,” “Entrepreneurial Lifestyle,” “‘Millennial Mindset,’” “The Expanding ATM Network” and “New Model in Real Estate”

Legal

Business owners have a need-to-know about the Employer Shared Responsibility of the Affordable Care Act.

Books

New releases give fresh insights on business thinking.

Nonprofit

Nonprofits may find partnerships with community foundations and investment counselors fruitful for their endowments.

Assets

2016 Ferrari 488 Spider PLUS: We make the case for a mailed thank-you over an emailed one.

Nancy Sanders

nawbophx.org

Power Lunch

Craft 64 PLUS: Here are where breakfast and lunch meet.

Roundtable

There are positive ways a salesperson can embrace being No. 2 when the prospect says “no.”

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2016

Business Healthcare Services Guide Associations & Government

By the Numbers

Three Phoenix-area cities rank among the nation’s hardestworking, but is that really a good thing?

Employee Benefits Consultants

ON THE AGENDA

Spotlight

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• Nine business-building sessions • Continental breakfast, 3-course lunch & Meet the Speakers reception • Valuable resources from exhibitors • Charity raffle with great prizes

Enjoy two inspiring keynote speakers: Joan Koerber-Walker & Heidi Fogelsong

Urgent Care Workplace Bundled Health Programs Workplace Wellness Workplace Ergonomics

Join us for our event on April 27, 2016 • www.inbusinessmag.com

2016 Business Healthcare Services Guide

The Valley’s most comprehensive guide to healthcare services for businesses

APR. 20 1 6

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From the Top

Lovitt & Touché CEO Charles A. Touché focuses on building relationships and adopting new technologies.

Technology

“Phoenix Synergy Attracts DoubleDutch” and “RAADR: Using Technology Against Cyber Threats”

The New Healthcare and Healthcare EXPO — In Business Magazine 58th Annual Black & White Fashion Gala and Business Awards — Arizona Hispanic Chamber of Commerce

Calendar

Business events throughout the Valley

According to new findings from Experian, 76 percent of consumers are familiar with identity theft (up almost 20 percent over the past two years) and 28 percent have been a victim themselves. But despite awareness, almost half (45%) aren’t aware of the IRS-issued Identify Protection PIN, and only 30 percent of actual victims requested the IRS-issued IP PIN last year. experian.com

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April 2016

LAW THAT LEADS®

ADVOCATES FOR YOU

In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

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Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org Nancy Sanders, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org

Read conference calls in real time.

Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.

ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com Arizona Hispanic Chamber of Commerce azhcc.com The Black Chamber of Arizona phoenixblackchamber.com Chandler Chamber of Commerce chandlerchamber.com

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INBUSINESSMAG.COM

“Without the support of“Without Liquid Capital, we may very well have the support closed ourCapital, doors. we Now ourvery outlook is better than ever.” of Liquid may well have Kevin M. Berry, President The Inc. closed our doors. Now our outlook is Berry betterBest, than ever.” Kevin M. Berry, President - The Berry Best, Inc.

Liquid Capital - The A/R Funding Alternative Liquid Capital Factoring At one point or another, every business is confronted with cash flow problems. When the traditional Every eventually the the needprocess for financing. This isextended because financing so much of wealth meansbusiness of funding seem tofaces dry up, of acquiring cana businesses’ become a lengthy, is tied-upand in Accounts Receivable (A/R), making itThat’s difficult for owners take new orders. arduous sometimes impossible experience. where we can to help.

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Experts & Colleagues Speak in 3 Panels on The Net Effect of Coverage, Benefits and Money

April 2016

VOL. 7, NO. 4

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Art Director Benjamin Little

Contributing Writers Andrea Aker

Tim Brown Stuart Cross John Hornick Mike Hunter Kathy Steadman Dan Streeter Deborah Whitehurst

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Steve Kulick Maria Mabek Sara May Kelly Richards Cami Shore Events Amy Corben More: Visit your one-stop resource for everything business at www.inbusinessmag.com. For a full monthly calendar of business-related events, please visit our website. Inform Us: Send press releases and your editorial ideas to editor@inbusinessmag.com.

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Accounting Manager Todd Juhl Corporate Offices 4455 E. Camelback Road Building C, Suite 135 Phoenix, AZ 85018 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com Vol. 7, No. 4. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/ or financial professional. © 2016 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.

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STEVE PURVES, MARICOPA INTEGRATED HEALTH SYSTEM

The Healthcare Agenda

Steve Purves is president and CEO of Maricopa Integrated Health System, Arizona’s only public healthcare system and Maricopa County’s largest training center of physicians and other healthcare professionals. Purves works with the publically elected fivemember board of directors, who represent the Maricopa County Special Health Care District, to plan, direct and manage the current operations, future growth and program development for MIHS. Purves is actively involved in the community as member of the board with a variety of organizations that include the Arizona Hospital and Health Care Association and the Arizona Chamber of Commerce. He received his master’s degree in healthcare administration from Trinity University in San Antonio, Texas, and his bachelor’s degree in health education, cum laude, from Springfield College in Springfield, Mass, and is a Fellow of the American College of Healthcare Executives.

Employers have long recognized the importance of healthcare as an issue in their business operations. Today’s federally mandated requirements have added to their responsibilities, to not only provide the level of healthcare benefits that makes their company competitive in attracting and retaining talent but also meet the ongoing roll-out of compliance provisions. Add to those the concern of keeping the company’s workforce healthy, whether for bottom-line productivity or higher philosophical reasons, and the healthcare landscape is a minefield of complications. I think it goes without saying that for anyone seeking an employment opportunity, employersponsored health coverage is most likely the major incentive benefit tied to an employee’s compensation package. At Maricopa Integrated Health System, we are not immune to the reality of the increasing cost of healthcare, today’s Federal mandates and the impact they are having on increasing the cost of providing benefits to employees — but as a healthcare provider ourselves, we place particular importance on healthcare in the workplace. Obviously, we, too, have to remain competitive and retain our best talent, but we also understand that to lower our costs and to reduce employee absenteeism we have to continue to focus on our employee wellness and preventive health programs. At the end of the day, it’s a win-win situation when you have happy and healthy employees. This month’s cover story delves into this subject as it looks at coverage programs and delivery models currently in place, the role of employers and individual healthcare consumers, and emerging opportunities to improve healthcare. In Business Magazine editor RaeAnne Marsh shares insights from leaders in our healthcare industry. And the legal aspect of healthcare coverage responsibilities and liabilities is addressed specifically in this issue’s Legal feature. How hard-working is our business community? That is the question explored in the By the Numbers feature this month. More statistics permeate the Focus article on trends in human capital. Stuart Cross explores various internal processes and mindsets that businesses may not recognize as obstacles even as they strive to innovate and grow, and offers suggestions to overcome them. And Tim Brown and Dan Streeter take a new look at sales from the standpoint of capitalizing on opportunities presented by not being No. 1. In addition to its signature mix of business-related topics relevant to decision makers, from startup entrepreneurs to executives at major corporations, this issue of In Business Magazine includes an update of its Business Healthcare Services Guide, a comprehensive reference for healthcare-related services in the Valley. Please enjoy this issue of In Business Magazine. Sincerely,

Steve Purves President and CEO Maricopa Integrated Health System

Let us know what you think of this issue of In Business Magazine. Email our publisher at feedback@inbusinessmag.com.

CONNECT WITH US: Story Ideas/PR: editor@ inbusinessmag.com

Health Factors In Many have to be tired of the healthcare discussion and its relationship to business after four years of mandates and added responsibility for employers. However, as things begin to settle on the subject, both employers and employees are beginning to see benefits to this recent focus. Our efforts over the past years on healthcare through articles, events and having added an ongoing healthcare page have enlightened us on the impact it is having on business.

Maricopa Integrated Health System includes the Maricopa Medical Center, the Arizona Burn Center, the Arizona Children’s Center, a Level I Trauma Center, two behavioral health centers and a network of 12 neighborhood clinics that serve the entire county.

We are very happy to have Steve Purves as this month’s guest editor. His expertise and efforts to transform Maricopa Integrated Health System are a great example of how the changes and focus on healthcare are making a difference. Business has to pay attention to the things that these institutions are doing and the effect it has on our community and on our employees. MIHS is a strong partner to this community through honest influence, great new programs and an expertise that any metropolitan area would be envious of. —Rick McCartney, Publisher

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

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VALLEY LEADERS SOUND OFF

FEEDBACK QUESTION: Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessmag.com

For all past Feedbacks go online to inbusinessmag.com and see what Valley executives think on various business topics.

APR. 20 1 6

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What is the most notable need your employees have expressed regarding healthcare and wellness since the implementation of the Patient Protection and Affordable Care Act?

CHAD FALKENBERG

CARSON HOLMQUIST

NATHAN PERRINS

Chairman and CEO Soilworks Sector: Manufacturing

Co-Founder and CEO Stream Logistics Sector: Logistics and Transportation

Co-Owner Zerorez of Phoenix Sector: Cleaning Services

At Soilworks, offering a choice in healthcare plans is very important to our employees. They appreciate having three quality healthcare choices available to them. Last year, we offered two different options. We looked at many healthcare options prior to selecting the three current plans. We tried to select plans that would meet our employee needs, while trying to control the cost increase we would have to pay in order to provide them. Most of our employees not only trust the healthcare plans we selected, but appreciate the due diligence we did in selecting them. The healthcare industry is such a complex landscape right now that many of them didn’t feel as confident in their ability to choose their best available plan if we had stopped providing coverage. In addition, our employees are appreciative of the Employee Benefits Helpline available to them when they have specific health insurance questions. Having as much information as possible in front of you helps you make the best possible healthcare decision, whether you’re the employer or employee.

The most prominent need expressed by employees of Stream Logistics is overall cost reduction, which is comprised of the employee’s individual premium contribution amount, deductibles and co-pays. When we designed our healthcare plan, we made sure all three factors were considered. First, we focused on individual premium contributions, since these costs are recurring and predictable. As a company, we only ask our employees to contribute $80 per month toward their premium while we pay for the remainder of the premium costs. Although this is a significant cost to the company, we know the employee satisfaction outweighs the capital commitment. After committing to the premium contribution structure, we carefully selected a plan that offers competitive deductibles and co-pays for access to a vast healthcare network. The cumulative result of these choices is a healthcare offering which is high-quality and low-cost to the employee. Healthcare is a necessary but frustrating expense, which means cost reduction will remain the primary need for our employees.

Our employees would love to have affordable health coverage for themselves and their families. Since the implementation of PPACA, it has been difficult to find programs that meet the needs of all employees. PPACA puts all companies and employees into a onesize-fits-all program. The biggest need from our employees is to find coverage that meets the needs of their family. Unfortunately, those programs don’t exist through an employer-provided system. Employers are limited on what they can offer to groups, and our employees have found the Affordable Care Act not so affordable when they look on their own. As an owner and a participant in this new program, I’ve seen their same issues. My new coverage under PPACA was nine times more than my previous insurance. Even with Zerorez covering a bulk of the cost for the employee, it is still an increase in monthly cost to the employee. I feel many still make the sacrifice of choosing no insurance at all, which defeats the whole purpose of PPACA.

Soilworks soilworks.com Soilworks provides engineered solutions to meet the broad needs of the dust control and soil stabilization industry. Whether the market is commercial, industrial or military, Soilworks has the innovative tools, unmatched technical support, and environmentally friendly technologies to fulfill specific requirements. Soilworks’ international sales network, global distribution centers and integrated customer service provide an ideal platform to satisfy all its customers’ needs.

Stream Logistics streamlogistics.com Entrepreneur, co-founder and CEO Carson Holmquist is the business mastermind behind freight and transportation management firm Stream Logistics. With a background in operations management and process improvement, Holmquist has designed Stream Logistics to run efficiently and perform consistently. In a very competitive industry, Stream Logistics has created a differentiated experience for carriers and clients.

Zerorez of Phoenix zerorezphoenix.com Nathan Perrins co-owns Zerorez of Phoenix with his brother-in-law, Casey Ashdown. With two locations in Gilbert and Deer Valley, Zerorez has been Arizona’s environmentally friendly carpet cleaning business since 2004. Over the past decade-plus, the business has grown to more than 70 employees and has won the 2015 Better Business Bureau Ethics Award and its Spirit of Service Award.

Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessmag.com. Look for survey questions and other research on our business community.

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QUICK AND TO THE POINT

BYTES

BY MIKE HUNTER

Global Payments Bitwage combines cloud, mobile and blockchain technology to make international payments faster and simpler. The average to pay employees, freelancers and contractors across borders is five days and 8 percent. With Bitwage — founded in 2014 by a team of former Oracle employees — wage payments can be as fast as same day and as low as 1 percent. Companies can use Bitwage to pay out their global workforces without being required to load funds prior. bitwage.com

Talent Captured Social apps have defined the way we communicate and form relationships, and HR leaders are beginning to adopt day-to-day technology to complement this 21stcentury platform of communication. One area that has been slow to adopt to the changing times is recruitment. Addressing this is getTalent, a talent relationship management engine that helps HR teams build a strategic, real-time talent pipeline where employers can find, engage and hire more qualified candidates faster by applying the social-app mentality to the job market. gettalent.com

Top Temp Talent BlueCrew’s on-demand staffing platform automates the screening and matching of the most-qualified and -trusted candidates to the right jobs. Its algorithms empower employers to cut through the clutter of thousands of temporary job candidates to hire top temporary talent at the click of a button for positions that include movers, drivers, forklift operators, warehouse staff, data entry personnel and customer service reps. bluecrewjobs.com

Financially Serving the Hispanic Market

There’s more to serving the Hispanic market than simply translating messaging into Spanish. Language is a component, “but you need cultural relevance,” explains Luis Soto, a driving force in Vantage West’s recent designation of “Juntos Avanzamos” (“Together We Advance”) from Texas’s Cornerstone Credit Union League. “Vantage West is the first credit union outside the Cornerstone CUL states that joins Juntos Avanzamos, and we salute their leadership, vision and commitment to financial inclusion that will increase asset-building opportunities for the Hispanic community,” says Pablo DeFilippi, vice president of membership and business development for the National Federation of Community Development Credit Unions. In order to earn the prestigious Juntos Avanzamos designation, credit unions must complete an extensive application, requiring information about products and services the credit union offers to specifically address the needs of the Hispanic market, as well as strategies they are utilizing to serve this important demographic group. More than 90 percent of Arizona’s Hispanic market is “banked,” with an account at a bank or

credit union, Soto observes, but it is different from other states, so “our efforts are based on understanding our specific market.” Vantage West is headquartered in Tucson, where its community outreach includes working with the Mexican Consulate for Financial Literacy Week. It is also active in the Phoenix area, where it has two branch offices; it is a corporate partner with the Arizona Hispanic Chamber of Commerce and sponsors Datos, “the most important report on the Hispanic market in Arizona,” Soto explains. Arizona’s population is more than 30 percent Hispanic, and, according to U.S. Census predictions, will be the majority by 2030. Noting there are 167,000 Hispanic-owned business in Arizona — a majority of the 100,000 minorityowned businesses — Assistant Vice President Jill Casey says Vantage West has seen a 7 percent growth in the Hispanic market, compared to 2.7 percent in the general market. Offering business lending and services to the Hispanic market, she says, is an important part of the company’s growth. Vantage West vantagewest.org

ACHIEVEMENTS

Making Change through Innovation Changemaker Challenge is an opportunity for

announced at the 2015-2016 Changemaker Challenge

undergraduate and graduate students from all four

Awards dinner. The winners were LetsChat ($10,000),

Arizona state university campuses to make a difference

BISTEG ($7,500), Leadership Society of Arizona

in local and global communities through innovation.

($5,000), Terrainial ($4,500), Grey Box Collective

Students can win up to $10,000 to make innovative

($3,000), The Talent Network ($3,000), and the

project, prototype, venture or community partnership

People’s Choice Award – Women of Hope ($500).

ideas happen. This year, more than $40,000 was

changemaker.asu.edu

LetsChat $10,000 winners

handed to several organizations. The winners were

APR. 20 1 6

INBUSINESSMAG.COM

Since the October 1, 2015, deadline set by Visa and MasterCard for the transition away from magnetic-stripe to smart-chip card security, 42 percent of retailers have not updated the terminals in any of their stores — although merchants that do not implement the necessary EMV-compliant payment terminals are now liable for fraudulent purchases made in their stores. cardhub.com/edu/emv-adoption-survey

BY RAEANNE MARSH

QUICK AND TO THE POINT

The Expanding ATM Network

GET REAL

Entrepreneurial Lifestyle SOHO Scottsdale, designed in collaboration by renowned architect Bing Hu of H&S International and Irene Clary of Catclar Investments, is a first- ofits-kind, mixed-use, live-work residential project designed for the professional or entrepreneur. These stylish, modern live-work units are uniquely dualzoned; giving owners the ability to enjoy the lifestyle North Scottsdale has to offer from their luxury space that is conveniently located just above ground-floor professional space where they can operate their business. sohoscottsdale.com

‘Millennial Mindset’

Allpoint recently added QuikTrip as a retail partner to serve the Phoenix area. The company works with banks and credit unions to provide surcharge-fee ATMs to the institutions’ customers at convenient, premier retail locations — the kind of well-known and trusted retail brand names that are already part of people’s daily routines. Financial institutions are moving to a selfservice model where account holders can manage many of their day-to-day banking needs with mobile tools on their smart phones as well as online, notes Bill Knoll, managing director of the Allpoint Network. “But what about cash access?” he asks. “You can’t do that on a smartphone, and with self-service comes fewer branch visits and customers increasingly expecting to be able to access their cash whenever and wherever they want — and without having to pay a surcharge fee.” Allpoint addresses this trend by offering banks, credit unions and prepaid card programs a way to instantly and cost-effectively meet this demand by offering their members thousands of surcharge-free ATMs, conveniently located at premier retailer locations. Additionally, Allpoint offers its members value-added customer outreach programs, such as the recent “Welcome to Feenix” campaign that aimed to inform residents and visitors of free events and activities throughout the city (while promoting

its ability to “nix” ATM fees), and the “Clutch Cash Sweepstakes” it ran last summer. The 100-plus QuikTrip locations, added to existing ATMs in CVS, 7-Eleven, Costco, Safeway and Target stores, bring the total of the Allpoint Network’s surcharge-free ATMs in Greater Phoenix to more than 330, and 55,000 worldwide. Allpoint allpointnetwork.com

Contour on Campbell Ave. represents a new typology in condominium communities, with amenities catering not to a particular age group but to the homebuyer looking for a specific urban lifestyle, and Liv URBN and design partners Gould Evans Associates keep localecentric design and neighborhood integration at the fore of their decision-making on this project. “We think of our buyer as possessing a ‘millennial mindset’ — they seek authenticity, quality, and connection to the greater community on their terms,” says Scott Fisher, principal of Liv URBN. contourcondos.com

Whiskey Row with Aggie Roots Ground has broken on a new Dierks Bentley’s Whiskey Row in downtown Gilbert that has been designed to connect with the town’s agricultural roots. “We were influenced by Gilbert’s agricultural roots and the feeling of a barn or trading post,” says Artie Vigil, architect and urban designer with AV3 Design Studio of Phoenix. The new restaurant will include patio, dance floor and areas for families and friends to spend time together. Construction by LGE Design Build is expected to be completed near the end of this year. lgedesignbuild.com

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New Model in Real Estate

A new model of real estate brokerage firm debuted in the Valley earlier this year. Local real estate entrepreneur John N. Vatistas created Launch Real Estate with, initially, a handful of personally selected top-producing real estate brokers. “While it is common among traditional real estate brokerages to house agents of varying skills sets and experiences, from novice to tenured part-timers, we’ve chosen to take a sniper’s approach in hiring vs. a shotgun approach,” he says. What began as five in January has grown to nearly 50 by mid-March. Launch is an invite-only agency, with each of the co-founding agents involved in the decision and vetting the prospective agents with the goal of retaining what the company describes as the most cultured, reputable, skilled and professional agents in the market. The intent is to encourage agents who were once fierce competitors to collaborate, sharing the best market insights and access for the benefit of

their clients. Eschewing the “franchise” model of typical brokerage firms, where, according to a Launch spokesperson, top priority was often given to corporate branding efforts, Launch allows its agents to effectively focus on marketing their clients’ listings and not the brand of the brokerage. And, in addition to compensating agents beyond the standard split, the brokerage ensures them exposure to more than 130,000 top-producing luxury professionals in more than 70 countries around the world through an affiliation with The Who’s Who in Luxury Real Estate network, a global collection of the finest luxury real estate brokers in the world. Says Vatistas, “We’re building a framework that gives greatest strength to the client-broker relationship and creates an environment where the best of the best can —RaeAnne Marsh flourish.” Launch Real Estate azhomes.com

According to the latest housing report released from the W. P. Carey School of Business at Arizona State University, the top developers ranked by closed revenue for 2015 included locally based Taylor Morrison and Meritage Homes first and third place, respectively. wpcarey.asu.edu

METRICS & MEASUREMENTS

Are We Really Hard at Work?

Local municipalities rank among our country’s hardest-working cities by Mike Hunter Americans outwork many of their foreign peers by hundreds of extra hours per year, a fact that sometimes intrudes into discussion of healthcare coverage as a workplace issue. Personal-finance website WalletHub conducted an in-depth analysis of 2016’s Hardest Working Cities in America to identify where Americans work the hardest, comparing the 116 largest cities across six key metrics that include “labor force participation rate,” “average hours worked per week” and “number of workers with multiple jobs.” The report points out that our strong work ethic is, after all, what helped to build the world’s most powerful economy — a status that is likely to remain unchallenged. In fact, according to the Bureau of Labor Statistics, we are 400 percent more productive today than in 1950 (although midcentury Americans worked nearly 205 hours more per year than we did in 2011). Rapid technological growth that allowed us to increase automation and efficiency has been responsible for our productivity gains in recent decades, according to research by The Heritage Foundation (bit.ly/labor-market). Still, research cited by WalletHub shows we work 20 percent more hours yet are still less productive than our European peers. “America’s obsession with higher output has indeed landed our nation at the top of the global food chain, but it’s also led to our image as workaholic robots, working longer days, taking fewer vacations and retiring much later,” it notes, pointing out that only one in five Americans even step out for lunch these days, while Spaniards enjoy up to three-hour midday breaks to eat, nap and smell the rosas, and other countries follow a similar daily ritual of R&R. Loukas Karabarbounis, associate professor of Economics and Public Policy Scholar at the University of Chicago Booth School of Business, explains there are three reasons Americans work so much more than their European counterparts: “Taxes on labor income are lower in the U.S., value of non-market time is higher in Europe where family ties are stronger, and regulation of hours worked is more stringent in Europe.” The report includes an analytical view of this phenomenon by other thought leaders at top university business schools. Addressing productivity only, Michael H. LeRoy, a professor

in the School of Labor & Employment Relations & College of Law at University of Illinois at Urbana-Champaign, observes, “Worker productivity falls after 50 hours a week. When a worker exceeds 55 hours a week, he or she produces about the same as someone who works 70 hours a week, according to a recent Stanford study. In other words, when fatigue is reached, nothing is accomplished — only time accumulates, not productivity.” And Gerald Friedman, professor of Economics at University of Massachusetts at Amherst, says, “I think that in many cases, productivity falls because workers are stressed, come to work sick, and are preoccupied with the home responsibilities that they are neglecting while working late.”

TOP 10 HARDESTWORKING CITIES

of the 116 cities identified as “most populated” 1

Anchorage, Alaska

Virginia Beach, Va.

Plano, Texas

Sioux Falls, S.D.

Irving, Texas

Scottsdale, Ariz.

In the top 15 Hardest-Working Cities, Greater Phoenix is

San Francisco, Calif.

represented by three of its cities: Scottsdale, Gilbert and

Cheyenne, Wyo.

Chandler. Below are the rankings of each of them, together with

Washington, D.C.

the top metrics.

Charlotte, N.C.

WalletHub bitly.com/wallethub

Greater Phoenix’s ‘Hardest-Working Cities’

Scottsdale ranks 6th Hardest-Working City 3rd – Average Hours Worked per Week 24th – Labor Force Participation Rate 27th – Volunteer Hours per Resident

Gilbert ranks 11th Hardest-Working City 7th – Labor Force Participation Rate

of the 116 cities identified as “most populated”

15th – Average Hours Worked per Week 21st – Commute Time

107 Fresno, Calif.

Chandler ranks 15th Hardest-Working City 6th – Labor Force Participation Rate

108 Cleveland, Ohio 109 Toleda, Ohio 110 Tucson, Ariz.

23rd – Average Hours Worked per Week

111 Columbia, S.C.

27th – Volunteer Hours per Resident

112 Buffalo, N.Y.

Cities chosen for the study were among those identified as America’s most populated cities. Other Arizona cities in this study were Mesa (82nd), Phoenix (52nd) and Tucson (110th).

Other lists of note: Cvent’s ranking of Top 50 Meeting Destinations in the United States puts Phoenix at No. 10 (up one from 2014) and Scottsdale at No. 18 (down two from 2014). bitly.com/cvents-top50

BOTTOM 10 HARDEST-WORKING CITIES

Source: WalletHub

113 San Bernardino, Calif. 114 Providence, R.I. 115 Detroit, Mich. 116 Burlington, Vt.

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MINDING THEIR BUSINESS

Charles A. Touché: Embracing Change as Path to Innovation Lovitt & Touché CEO focuses on building relationships and adopting new technologies to solidify firm as local insurance industry leader by Andrea Aker

LOVITT & TOUCHÉ AT A GLANCE • Founded in 1911 in Tucson — a year before Arizona became a state. • Offers comprehensive employee benefits solutions, property and casualty insurance, specialty insurance and risk solutions for business, personal insurance, and bonds and surety. • Manages $500 million in annual premiums. • Employs 198 people in Tempe and Tucson. • Is family-owned and minority-owned. • Consistently honored by professional organizations, chambers, research entities and media for expertise, workplace culture and community involvement.

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It’s often said that change is the only consistency in life. And in the insurance industry, this adage is true now more than ever. An evolving economy, rapid emergence of new technologies and a rocky healthcare landscape are among the industry’s most difficult issues to navigate. It’s Charles A. Touché’s ability to adapt to such change — quickly and fearlessly — that has helped transform Lovitt & Touché into a leading insurance brokerage. The insurance industry, in general, is a crowded space. There is an abundance of independent brokerages that cater to businesses and individuals alike, offering seemingly similar products and services. Some last, some do not. Standing out can be a challenge. Touché says the longevity of the firm, founded in 1911 in Tucson, speaks volumes about its reach, product offerings, client loyalty and eagerness to innovate. “We continue to thrive because our succession of leaders have chosen to embrace change, rather than fight it.” However, embracing change is easier said than done. Touché has had his fair share of challenges and even naysayers. For instance, growing the business in the Phoenix market was met with some opposition. “In 1995, I decide to move from Tucson to Phoenix to build our presence in the region. I can’t tell you how many people advised against this. However, I knew our potential and our people. I knew we could become a statewide insurance and benefits leader if we went for it,” he says. When the company started to execute its growth strategy in the Phoenix market, Touché served as president. He took over as CEO shortly after the expansion in 1998 when his father, Carlos Touché, retired. Carlos — an innovator in his own right — started working in the insurance industry in the 1950s. He had immigrated to the United States from Mexico when he was 14 years old, committed to fulfilling the American Dream. Insurance provided him an avenue to do that, and his family followed in his footsteps. “One of the reasons my father was so successful is because he always put people first,” says Touché. “My brother [Steven Touché, who serves as president] and I continue that tradition when things are looking up and when we’re faced with new challenges.” When Touché assumed the role of CEO, the company had 90 employees and annual revenues of $10.5 million. Today, Lovitt & Touché employs nearly 200 and brings in $35 million annually. Getting steeped in the local community, Touché says, contributed significantly to this growth. “I was able

to assimilate to the business community early on because I entrenched myself in the charitable community. I felt it was both a responsibility and a privilege to get involved.” Community involvement is engrained in the Lovitt & Touché culture. So much so, the company rebranded itself to embrace the slogan “Business Minded. Community Focused” in 2014. Living up to this brand, the company contributed more than $500,000 to local charitable and professional organizations throughout Arizona last year alone. Plus, employees actively participated in charity walks and hosted fundraisers on their own. “The community-minded mantra runs deep throughout the company,” he adds. Looking forward, Touché says the industry mainstays will lead through technological and product innovation. The company’s private healthcare exchange, ClearPath Prime, serves as an example. It utilizes a Web-based portal where employees can log in and choose their own benefits packages based on their individual needs. The ClearPath Prime suite of tools provides a personalized shopping experience along with sophisticated statistical modeling, educational tools and simplified plan summaries. “As healthcare costs continue to rise, employers are demanding insurance products and services that are customtailored to their workforces and offer them more control. A private exchange does just that. We hear our clients loud and clear, and we are investing in the time and technology to meet their evolving needs,” Touché says. Even as insurance technologies get more sophisticated and widely adopted, Touché insists the human element will not lose its value. “Insurance is and always will be a people business. We’re developing new technologies to help our clients maintain more control and save more money, yet I want to make sure our personal relationships remain intact. I believe we can use technology to enhance these relationships, not replace them.”

A Legacy of Trailblazers The Touché family has the world as its roots in a 200-year journey from France to Mexico, America to Argentina. The family’s story includes extraordinary encounters with some of modern history’s most notorious figures, including Pancho Villa and Juan Perón.

SRP Smart Business Series

SERVING OTHERS LEADS TO SUCCESS The Dhaba Restaurant is part of a small Indian cultural center that evolved 15 years ago. We keep it small because I take care of my employees — I treat them like family. My goal with the Dhaba was to create a culture of community, because it’s important to give yourself to people. Serving others will help you succeed in life. When faced with challenges, I’ve had to find creative ways to keep my commitments, keep the restaurant open and make employee payroll. At the end of the day, I have always pursued my vision, not my profits. When you pursue your vision long enough, profits will follow. —Raveen Arora, Owner of the Dhaba Restaurant

For free information on ways to help grow your business, visit srpbizresource.com.

INNOVATIONS FOR BUSINESS

BY RAEANNE MARSH

Phoenix Synergy Attracts DoubleDutch DoubleDutch has seen record growth as a company that builds mobile apps for conferences, events and tradeshows. Its platform enables “live engagement marketing,” which CEO Lawrence Coburn explains is a new kind of product that tries to “engage attendees on their smartphones.” A paper guide can’t keep up with changes, he points out, but the mobile platform offers additional advantages to both the event attendee and the event planner. As the user interacts with the program on the phone, it generates data such as making recommendations on sessions to attend, companies to check out, and who to meet. There’s also an analytics dashboard, exhibitor tools and other features that are useful to an event planner. “It will help them learn how to throw better events,” Coburn says. “We’re riding off the mobile wave,” he says, using advances in technology that enable highquality cloud programs over the Internet, and the social networking and messaging craze. “It feels like Facebook and Instagram on purpose. We want people interacting and making it a two-way conversation at these events.”

The San Francisco-based company chose Phoenix as home for its major expansion, after a six-month search. Access to talent was one reason; Coburn notes particularly the 15,000 students who graduate every year from ASU. “We’ve seen other Silicon Valley companies be successful — such as Yelp and Weebly — and that’s a sign of quality for us.” And the atmosphere in Downtown Phoenix “resonated with us,” he says. “We felt real momentum with the entrepreneur community.” Phoenix’s cost of living is another advantage, especially for entry-level employees, Coburn explains, observing that the cost of living in San Francisco is “out of control.” Phoenix is conveniently close for trainings and to allow officers and managers to visit the operations here. “Culture is important; it’s the reason people join [our company] and stay. The short trip from San Francisco is important to make sure there’s a lot of back and forth between the two offices.” DoubleDutch doubledutch.me

RAADR: Using Technology Against Cyber Threats Bullying and stalking in the cyber world is not only easy to accomplish, it’s easy to hide. Jacob DiMartino took the expertise he’d gained in helping businesses engage effectively in social media, and developed RAADR as a platform to, he says, “arm parents with a snapshot of what’s going on with their kids.” His concern, he explains, is “kids don’t know how exposed they make themselves.” Proprietary software is programmed to recognize key “threat” words, based on 20 topics such as sex, drugs, ISIS recruiting — including related sub-key words — and send those posts to the parents. A facial recognition feature allows the client to upload a photo, and it then scours the Net for unauthorized use, including bogus accounts using that picture with someone else’s name. An extension within the platform allows parents to see messages, such as on Instagram and Facebook. RAADR updates the keyword database every day, and its users can update it as well. “We review [the words submitted by users], then, if we approve them, we add them,” DiMartino explains. “Words are tagged to what kids are posting,” DiMartino says, noting, “That and private

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messaging is where you see the bullying. That’s where it starts.” DiMartino is pursuing RAADR’s potential in B2B application as well. Debuting an initiative to work with police departments throughout Arizona, the company has partnered with the Buckeye Police Department with a more robust law enforcement portal that allows the police to monitor a wider range of information to help them fight cybercrime as well as protect kids at school from shootings and bullying. The apps for parents and law enforcement are revenue-generating, but RAADR also offers a free “bullying” app that kids can download for free. “They can report abuse in real-time,” DiMartino says. “Who’s going to know first if there’s a shooting? The kids.” He has been working with the Buckeye School District, speaking at school assemblies to help educate the students about bullying. RAADR, which grew out of three-year-old social media marketing company Pitooey!, was launched late last year. Noting it is currently in review with Apple, DiMartino says he hopes to launch it soon on the iOS platform. RAADR, Inc. raadr.com

CBS reported last year that there are 1.5 million cyber attacks annually, which breaks down to more than 4,000 cyber attacks every day, 170 attacks every hour, or nearly three attacks every minute. bitly.com/cbs-cybercrime

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. SRP is happy to provide this free service because what’s good for business is good for all of us. Learn more at srpbizresource.com.

“Highest Customer Satisfaction with Business Electric Service in the West among Large Utilities” Salt River Project received the highest numerical score among 13 large utilities in the West in the J.D. Power 2016 Electric Utility Business Customer Satisfaction Study, based on 21,852 responses, and measures the experiences and perceptions of business customers surveyed March-November 2015. Your experiences may vary. Visit jdpower.com.

LAW MATTERS TO BUSINESS

The Employer Shared Responsibility of the Affordable Care Act Provisions, definitions and liabilities business owners need to know about by Kathy Steadman After considerable fits and starts, the employer responsibility provisions of the Patient Protection and Affordable Care Act (PPACA) are now in full play. While implementing regulations and related notices can be complex, business owners should understand the basics in order to avoid penalties, identify the best-suited healthcare solutions for their workforce and remain compliant as they grow.

WHAT IS EMPLOYER SHARED RESPONSIBILITY? Since January 1, 2016, employers that generally employ 50 full-time employees (or a combination of full-time and parttime employees that is equivalent to 50 full-time employees) are subject to the employer shared responsibility requirements of PPACA. This includes for-profit, nonprofit and government employers. The U.S. Treasury Department estimates approximately 96 percent of employers in the United States are small businesses (49 or fewer full-time employees), which means the employer mandate doesn’t apply to them. However, it’s prudent for owners of such businesses to understand the law if they plan to grow or are nearing the cusp. Under the law, applicable large employers may face financial penalties if they don’t offer coverage to at least 95 percent of their full-time employees that is also “affordable” and meets “minimum value” standards. Coverage is considered “affordable” if it is less than 9.66 percent of an employee’s household income. “Minimum value” covers at least 60 percent of the total cost of medical services for a standard population, as well as substantial coverage such as inpatient hospitalization and physician services. Since January 1, 2015, employers with more than 100 full-time employees have been subject to the shared responsibility requirements. Since the start of this year, those requirements were extended to employers with more than 50 full-time employees. An employer will be subject to the penalty if at least one full-time employee receives a premium tax credit for purchasing individual coverage on a health insurance exchange.

WHO IS CONSIDERED A FULL-TIME EMPLOYEE? Kathy Steadman is a shareholder with Coppersmith Brockelman in Phoenix. She primarily practices in the areas of employee benefits, public pension, insurance and other regulatory matters. cblawyers.com

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Generally speaking, a full-time employee is employed on average at least 30 hours per week. Employers utilize employee hour data from the prior year to determine full-time status. However, an employer that wasn’t in business the prior calendar year is considered an applicable large employer if it was reasonably expected to employ an average of at least 50 full-time employees. PPACA also requires that an employer examine the number of part-time and seasonal employees to determine how those employees calculate to “full-time equivalents.” For example, if an employer has 40 employees working an average of 30 hours

The Kaiser Family Foundation offers a simple flow-chart to help employers understand their PPACA shared responsibilities: bit.ly/employers-ppaca.

per week and 20 working an average of 15 hours per week, the employer would have 50 full-time equivalents. Thus, the employer would be an “applicable large employer.” Essentially, in addition to offering coverage to at least 95 percent of its full-time employees and their dependents, an employer must offer affordable, minimum-value coverage to its employees and their dependents. For purposes of PPACA, a spouse is not considered a dependent.

PENALTIES FOR FAILURE TO COMPLY Again, what triggers an employer shared responsibility payment is a full-time employee obtaining coverage through a health insurance exchange and receiving a premium tax credit. And, while the employer is required to offer coverage, employees are not required to enroll for such coverage. However, the individual PPACA mandate may likewise create penalties for the employee. The penalties can be complex and confusing. In that regard, employers could face two different penalties — one for failure to offer coverage to 95 percent of employees and eligible dependents, and one for failure to offer coverage that’s affordable and provides minimum value. However, it’s anticipated the Internal Revenue Service will adopt procedures so employers receive a notice that one or more employees have received premium tax credits on a health insurance exchange. The IRS will then contact employers to notify them about the potential liability/assessment and provide them an opportunity to respond. From a practical standpoint, most employers still purchase employee benefits from insurance companies authorized to do business in Arizona. Those insurers are intimately aware of the PPACA employer shared responsibility provisions. Thus, the easiest course is to procure insurance from a reputable, licensed insurer that clearly identifies their policies as PPACA compliant. At that point, offering that coverage to all full-time employees and their dependent children should keep companies on track for avoiding employer shared responsibility penalties.

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Reviews are subject to portfolio size minimums. Interest on municipal bonds is generally exempt from federal income tax. However, some bonds may be subject to the Alternative Minimum Tax (AMT). Typically, state tax-exemption applies if securities are issued within one’s state of residence and if applicable, local tax-exemption typically applies if securities are issued within one’s city of residence. The tax-exempt status of municipal securities may be changed by legislative process, which could affect their value and marketability. The value of fixed income investments will fluctuate and, upon a sale, may be worth more or less than their original cost or maturity value.

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HEALTH CARE

AND GOOD BUSINESS How can employers derive the best benefit for their company and their employees? by RaeAnne Marsh

The paced roll-out of the Patient Protection and Affordable Care Act is, for the most part, a fait accompli. But many businesses are still wrestling with myriad considerations in implementing programs for the greatest benefit to their company and their employees. And what worked a year ago might not be the best option as their situation changes and as new options become available. Leaders in the healthcare industry share their insights and experience as well as some best practices with In Business Magazine. There are legal concerns as well, and, although the so-called “Cadillac Tax” on high-value health insurance is not yet in force, the other requirements and potential penalties are covered in our Legal feature “The Employer Shared Responsibility of the Affordable Care Act” on page 20.

ENGAGING THE CONSUMER

The most significant shift has been from the fee-for-service model to outcomebased, value-based care that rewards providers for managing patients and getting the patient better, observes Dave Allazetta, president and CEO of UnitedHealthcare of Arizona. A delivery system built around this model is the accountable care organization (ACO), through which care providers are eligible for incentives based on meaningful improvements in measures such as hospital readmission rates, disease management and prevention, patient safety and car delivery, as well as total cost savings and patient satisfaction. UnitedHealthcare launched its first in Tucson in 2013; in the Phoenix area, in May 2014 in partnership with Arizona Care Network to improve transitions of care for patients and facilitate better communication with all who are involved in a patient’s treatment. UnitedHealthcare followed this ACO two months later with another in partnership with Banner Health Network, which was one of the first care provider networks in Arizona to adopt the principles of accountable care — and one of the original 32 organizations nationally selected by the Centers of Medicare & Medicaid Services to demonstrate the Medicare Pioneer Accountable Care Model. Nationwide, more than $30 billion of UnitedHealthcare’s annual physician and hospital reimbursements are tied to accountable care programs, centers of excellence and performance-based programs. The company projects this will reach $65 billion by 2018. “From my perspective, the big headline is engaging the consumers,” Allazetta says. The ultimate intent is helping providers engage their patients — UnitedHealthcare’s clients — but Allazetta sees it from the other direction as well: “We want the employer and employees to engage providers for preventive diagnostic care.” So there is no out-of-pocket cost for such things as mammograms and regular physical exams. And Allazetta observes many employers incentivize their employees to make sure they get the direct diagnostic care. It’s important, he points out, “to determine if they’re at risk for [health] conditions they will need to manage.” One way to facilitate engagement is to provide a platform and tools that allow the user to see the various options available and the approximate cost. A scenario he describes is a patient in the doctor’s office, getting a referral to an MRI, who can pull up information right then and there. “He can show the doctor it’s cheaper somewhere other than where he’s making the referral, and can ask, ‘Does that work for you?’ Usually, it’s fine,” Allazetta says.

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MULTIPLE CHOICES

Allazetta sees as part of the challenge in healthcare the fact that patients have more choice than they realize. “Our concern is how best to provide a plan that makes sense for the employees and offers the security that it will be there the next year.” In working with employers, then, “We try to create a relationship that will go beyond the renewal to provide consistency and predictability for the employer as he provides his benefits.” He feels some regulations try to relegate health insurance to more of a commodity, but UnitedHealthcare’s focus is on the customer experience. “We try to engage the consumer in a way that helps them get the best care at the best price with the best outcomes.” Businesses are well served by working with a good consultant or broker, but he emphasizes the importance of an employer knowing his plan’s actuarial value — where the plan falls on the continuum in terms of cost of the premium and how much the patient will pay out of pocket. UnitedHealthcare, for instance, provides a decisionsupport tool that employers can offer their employees to help them understand their individual healthcare need by looking at such details as how many times per year they have been to a doctor. Noting that, usually, no one plan fits all the needs of all employees, Allazetta says, “The more they understand what’s expected for an employee out-of-pocket, the better they can design a program that’s appropriate for the employee and is cost effective.” Additionally, “When they do select a plan, they need to have resources and tools for information regarding their own healthcare.” UnitedHealthcare designed an app to serve this function, also providing guidance to the individual as to how best to use his health plan. This includes incentives to stay healthy, and wellness plans and health risk assessments to help engage employees in their own health needs.

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PRIMARY HEALTH

A 2014 report from UnitedHealth Center for Health Reform & Modernization found that adding primary care physicians leads to fewer hospitalization and emergency room visits. “Primary care is essential to building a higher-performing healthcare system that promotes personal well-being and saves consumers and taxpayers money,” said Richard Migliori, M.D., executive vice president of Medical Affairs and Chief Medical Officer of United Health Group when the report was released. “This research shows the value of improving primary care capacity, not only in terms of improving patients’ health but also in catching problems early and avoiding unnecessary and costly hospital services.” Evidence from UnitedHealthcare’s medical home programs in four states showed average third-year net savings of 6.2 percent of medical costs, resulting in a return on investment of six to one, largely due to a payment model that rewards value. The report included a warning that primary care was limited in areas with lower incomes and higher rates of uninsured, and although that is not of great concern for the Valley, it’s still important to note the need to encourage primary care visits. Gaining more attention now is the concept of total cost of care. Rather than looking at just how much one visit or treatment will cost, this involves measuring guidelines of treatment to understand the total cost. A knee replacement, for instance, involves an MRI, surgery and rehabilitation. UnitedHealthcare considers quality an important factor; noting, “The [cost of the] one treatment may seem higher than elsewhere in the marketplace, but this provider has a high level of success,” Allazetta explains there is less in the way of complications due to care being more efficient with a highertier provider. Another factor is location of the procedure; is in-patient the most appropriate, or does a stand-alone surgery center fit the bill? Says Allazetta, “The total cost of care must include the right provider at the right location at the most appropriate cost.”

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FOCUSING ON BUSINESSES AND INDIVIDUALS

“There is significant attention being paid to challenges in the individual market, but it’s important to note that the majority of people are enrolled through group plans,” says Jeff Stelnik, senior vice president of strategy, sales and marketing with Blue Cross Blue Shield of Arizona. Noting, “We consistently hear that employees are looking for choice, tools and ownership,” he says BCBSAZ developed its Benefits Starter program to support its employer partners. The program was designed to help employers streamline their benefits choices, Stelnik says, explaining, “Administrative complexity was the biggest challenge to giving employees choice.” Benefits Starter gives different plan choices to individuals, helping them “manage their money and their health-spend as effectively as possible.” Describing it as “like a private exchange,” Stelnik says it gives employees more choices on the medical plan and specialty product like vision, dental, disability, life and accident, while enabling either a defined contribution or defined benefit model. “Employees are empowered to choose plans that make the most sense for them,” including leveraging smart technology that helps them choose the products that meet their needs. “Rather than having one choice, this enables the employer to give a wide variety of medical plans and specialty products that empower employees to use their dollars in the most beneficial way,” Stelnik says, noting this is a growing trend. There’s also a set of tools that give employees access to information on how they are using their healthcare dollars, such as what costs are involved — at the time of service. “Using a transparency too, they can get multiple pieces of information, in one place, personalized to their plan, such as whether a doctor is in their network, the cost to go to that doctor for a specific diagnosis based on their plan, and where they are in their deductible level,” Stelnik explains. The focus is on empowering individuals to keep themselves healthy and moving through the entire spectrum of health — which also, Stelnik points out, helps control cost. The concept of “moving health forward” encompasses helping healthy individuals understand their level of health and how to stay there — “If they’re on the healthy end of the spectrum, they can get forgotten,” Stelnik observes — as well as working with the one in six people who have a chronic condition, to help them manage that condition and move on the spectrum to being healthier. The three key components are insights, relationships, and proven results. “Insights” involves anticipating the health needs of individuals, such as managing pre-diabetes before it becomes a high-cost and health risk issue. “When we get high-risk individuals into an office, visit, it improves their health and reduces cost,” Stelnik says, citing annual care management cost per member of $670. Discussing “relationships,” Stelnik notes, “As a local carrier, we’ve been able to foster collaboration with hospital systems that lead to unique programs.” One such is the “Transition of Care” program, which involves working closely with the hospital in its discharge process, following up with patients after they leave the hospital to make sure they get to their doctor within seven days and fill their script right away. “Those two components reduce readmission by 38 percent.” There is also the focus on the proven results of addressing the six most common chronic conditions that can be influenced by behavior: asthma, congestive heart failure, chronic obstructive pulmonary disease, coronary artery disease, diabetes and hypertension. Again seeing the discarding of the fee-for-service model, BCBSAZ pays based on the patient’s improvement in the status of the chronic condition rather than on whether the doctor sees the individual. “These are chronic conditions that can be significantly

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influenced by strong employee engagement and a strong partnership on the primary-care side,” Stelnik explains. “Most insurance products are focused on the adult,” notes Chad Johnson, senior vice president and executive director of Phoenix Children’s Care Network, observing that families find out only “after the fact” when their child gets sick that they can’t see the doctor they want nor get care at Phoenix Children’s Hospital. “We feel it is detrimental to create an insurance product that’s narrow in scope.” Phoenix Children’s Care Network created a pediatric product that can plug into any other product available. It is an integrated model, with the patient at the center, that gets rid of silos and segmentation of care. “We can follow the patient throughout the care continuum — primary care, hospital and specialists,” Johnson says. With more than 850 doctors in its network — spanning more than 60 percent of primary care and 80 percent of specialists, along with the nationally recognized Phoenix Children’s Hospital — “We can handle any type of pediatric need.” Johnson characterizes PCCN as an enterprise model of pediatric care. “We work with individuals, employers and insurance companies.” Acknowledging there may be some “bits and pieces” of overlap with other policies, he notes, “This is a whole system.” Explaining that PCCN co-builds and manages the care and the product, and “the insurance company delegates the pediatric responsibility to us to manage,” Johnson notes PCCN assumes some of the risk by taking the burden from the insurance company and the employer with a joint partnership. “We manage [the care] in a cost-effective manner and have excellent outcomes, and can show the employer group where they have an opportunity for cost-effective and improved care for their employees.” According to Mercer, a global leader in the health and benefits marketplace, provider groups like Phoenix Children’s Care Network are emerging as attractive partners in the delivery of high-quality, coordinated, multispecialty care to large employers with self-funded health plans. Especially in regard to children who have a greater need, Johnson says, “We reduce the anxiety and stress of care and navigating the healthcare system.” And access to this level of high-quality, cost-effective, comprehensive care, Mercer contends, improves employee attendance, productivity and morale while enabling employers to save costs associated with its healthcare spend. Johnson, noting PCCN benchmarks itself against national figures, says, “With our model, we are 16 percent lower than the national average in how we deliver pediatric cost.” Furthermore, he says, “I believe we can lower it further with our robust integration between the primary care community, the specialist community and the hospital.”

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GAME CHANGER?

And then there’s Arrowhead Health Centers, which this year began providing free healthcare to its employees and their families. “This evolved over a decade — the realization that we had developed a healthcare model to offer superior care at a lower cost,” says Ken Levin, CEO of Arrowhead Health Centers. The key was, “we could keep people healthy, and the healthier people are, the lower the cost of care is.” The decision to become self-insured as an employer was in 2008, Levin relates. “With premium prices going up 20 to 30 percent a year, it takes a toll on a small business’s ability to invest in its future and grow. [Then-CEO David] Berg looked into self-insurance, and developed a plan model for employees that consistently brought down cost per insured.” According to Levin, the annual price per insured that leading national healthcare company Kaiser quotes is $6,500; Arrowhead’s annual price per insured is $2,500. Over and above what Levin calls the “tried and true practice of taking care of our employees,” Arrowhead’s leadership “came to realization that we could reframe healthcare as being an expense of being in business to become an asset to recruit and attract the best employees in the marketplace.” Free healthcare, then, is a tool for recruitment — and, perhaps not surprisingly, applications in February 2016 were triple the number in February 2015. Levin emphasizes that healthcare is not free to Arrowhead. “We do spend a substantial amount of operating income on making healthcare free to employees,” he says, adding, “We believe other employers can create a similar model for their business.” Arrowhead currently employs about 195 people, and Levin shares the cost of their healthcare is 2.5 to 3 percent of revenue — which he estimates is about one-third what it would cost to buy insurance on the open market. What’s at the core of the employee program is the healthcare delivery system, the same that Arrowhead provides all of its patients. “We don’t let the patient’s or employee’s conditions exacerbate to where it becomes an expensive endeavor,” Levin says. And there is neither co-pay nor deductible. “Out-of-pocket expenses are a barrier to early entry to care,” he notes. In the same vein, Arrowhead treats chronic disease in proactive manner, for instance with nutrition counselling or behavioral therapists. Patient compliance is improved with same-day or next-day guarantee for appointment enabling patients to see a doctor when they first suffer symptoms, and having, for the most part, all services under each respective clinic roof. “Having no barrier to following the health plan is how people get better faster,” Levin says. Since the free healthcare is new this year, Arrowhead is currently building the metrics to measure the return on investment. But Levin notes the value of being able to attract employees who are fully engaged and who take as their personal mission every day to ensure the patient’s experience is positive: “The more we can do to attract and retain the best employees, the better we’re going to perform and the greater our growth is and the greater our success is going to be.” He has already seen a higher level of productivity, which increases efficiency and revenue and reduces turnover. “I expect this will pay for itself,” Levin says.

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SAVE MONEY, ADD VALUE

Another route for business is to offer employer-sponsored, voluntary non-insurance benefits. It can add value to employee benefit programs with little cost to the employer. While the employee pays for the instances of care, the employer’s contribution is leveraging volume of individuals so as to provide access to either programs or special rates not available in the individual marketplace. This is the realm that John Richards, CEO of chiropractic clinic The Joint, sees opportunity to serve, with a form of direct primary care. Chiropractic is increasingly considered part of the healthcare continuum, especially for back pain — chiropractic represents about 25 percent of the more than $50 billion spent annually on back pain, according to Richards, who says the general consensus among the medical community is that back pain is best treated by the chiropractor’s repeat, non-invasive approach. But “restrictive codes on insurance lead to co-pays that are more expensive, and insurance allows only so many visits,” Richards says, explaining the advantage of noninsurance package plans as a supplement benefit to healthcare insurance. “The No. 1 barrier to care is financial,” states David Berg, D.C., chairman of Redirect Health. While a few years ago, such a statement might have been taken to refer to cost of health insurance, Berg is talking about co-pays and deductibles. But there is opportunity now to shine a light on cost, and get away from an employee-benefit-covered individual taking the attitude, “I don’t know the cost, and the employer is paying anyway.” Dr. Berg’s focus now is on ways to avoid overpaying for care. “I’ve been a diligent student of healthcare since 2007, and I’ve seen a lot of waste and overpricing,” he says. In fact, he adds, “We can free up so much money, we can provide free healthcare to more people.” Contributing to the problem is the fact that cost is not transparent because it also involves proprietary information. Dr. Berg supports his statement about overpricing with an example of price disparity in one familiar drug: amoxicillin. He has seen a certain generic form of amoxicillin sell for $11 and $36 — and the brand name, in the same store, for $960. What many consumers may not realize, he points out, is that pharmacies are allowed to replace a doctor’s prescription with an equal drug, so if they don’t have the generic form, they can upgrade to the expensive brand name. And while some pharmacies do this very seldom, he says some do it regularly. Which is why Redirect Health includes on every prescription the notice, “no substitutions.” Hospital charges is another area rife with overpricing, according to Dr. Berg. For hospitals, an issue may be infrastructure cost of equipment. Additionally, Dr. Berg acknowledges that emergencies can cost a lot. But, he says, “Make sure the pricing is appropriate.” A blood test would cost $20 in an office setting and more than $1,000 in a hospital setting — “Therefore, the hospital is the wrong place for that service.”

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Yet hospitals may be funneling services to themselves where other options have been available. According to Dr. Berg, a hospital loses about $150,000 per year when it hires a doctor; up to $300,000 a year per specialist. “So why do they do it?” he asks. “They do it to funnel elective services to themselves.” Self-insurance is one way to manage healthcare cost, and Redirect Health helps businesses leverage this model. “Whether it’s the business owner buying a plan or the individual getting care, it’s important they understand the care they need, their care plan, and how to navigate the system,” Dr. Berg says. Smaller companies may be priced out of traditional insurance, yet they may need it in spite of the allowance PPACA makes exempting companies with fewer than 50 employees from the requirement to provide health insurance. In today’s business world, companies are in a war for employees, so even those exempted small companies need to offer healthcare coverage in order to compete. While not an insurance company, Redirect Health’s healthcare plans fall under a portion of the law that enables employers to self-insure, and they do provide companies with an avenue to meet Minimum Essential Coverage (MEC) and Minimal Value Plan (MVP) requirements stipulated by PPACA. The plans start with the philosophy of first tending to the routine 90 percent of care that most people need most of the time. Another part of Redirect Health’s program — which Dr. Berg says some companies opt to use by itself — is a care logistics team that helps members navigate the system and identify the most efficient and affordable route for treatment — without sacrificing the quality of care and, in many cases, even improving it. Redirect Health also offers Premium Plans that use health insurance companies to supplement risks specific to a company’s workforces, such as coverage for specialists, hospital stays and drug benefits. Employers can also add voluntary coverage such as vision, dental, disability, critical illness and accident. So, how can employers derive the best benefit for their company and their employees? As changes continue to take place in how healthcare is consumed, how it’s delivered and how it’s paid for, the industry continues to expand its efforts to provide employers with options that strengthen healthcare as an investment that helps them grow their business. In this shifting landscape, businesses are wise to evaluate the tried and true alongside what’s innovative and new. Arrowhead Health Centers arrowheadhealth.com Blue Cross Blue Shield of Arizona azblue.com Phoenix Children’s Care Network pccn.org Redirect Health myredirecthealth.com UnitedHealthcare of Arizona uhc.com/contact-us/arizona

APR. 2016

RISKS & REWARDS

Releasing the Hidden Innovation Brakes Does a business get in its own way on new ideas? by Stuart Cross

Stuart Cross is the founder and president of Morgan Cross Consulting. Based in the UK, his firm has helped marketleading clients, including Walgreen Boots Alliance, GSK, Masco Inc., Avon and Aimia Inc. His latest book, First & Fast: Outpace Your Competitors, Lead Your Markets and Accelerate Growth, published by Business Expert Press, is available now in bookstores. morgancross.co.uk

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The senior vice president for product development and his team had spent nearly 18 months developing a new range for an international cleaning products business. Initial customer research in two European markets had identified a need for office cleaning machines with a more efficient use of the cleaning agent, and the project had passed through the company’s structured product development process with flying colors. Yet, a year later, sales were only 60 percent of the initial targets and fewer than half of the company’s 50 country managers had actually included the range in their product offer. As the chief executive looked for answers as to why the new launch had failed so badly, he realized the issue was not the innovation process itself — all the procedures and decision “stage-gates” had been followed — but, instead, reflected three wider organizational problems. First, the marketing function, where the product development team sat, had different objectives and agenda from the country sales teams. While the growth in new product sales was a fundamental element of the product development team’s bonus, country managers were focused on overall sales and profits from their territory. Second, the dosage system that formed part of the new machines involved new technology and not all the countries had in-house service teams with the capability to support the new product, reducing the incentive of the country sales teams to adopt and promote the new range. Third, many country managers believed that these new, smaller machines, with a lower price tag, would cannibalize the sales of their larger and highervalue products, reducing their ability to hit their targets.

Seventy percent of American workers admit to being disengaged at work, resulting in a loss of productivity the Gallup Organization values at $500 billion annually.

In other words, it was not the quality of the idea or the company’s innovation process that inhibited the success of the new product. Instead, internal, almost invisible, organizational and cultural structures had acted as a brake on its potential. So, what can management teams do to remove those brakes and accelerate innovation in their businesses? There are five critical steps to consider: 1. Build a leadership team. The emphasis here is on the word “team.” Business leaders are constantly implored to hire top talent, but this approach merely creates competing functional agendas and silos unless the “top talents” are brought together to pursue a common goal. At a major UK retailer, for instance, there had been years of mutual antipathy and mistrust between successive chief commercial officers and chief marketing officers. Consequently, each function pursued its own agenda almost irrespective of the other’s priorities. A newly appointed CEO decided to address the issue, however, and promoted two new directors on the basis of their existing working relationship. The pair’s mutual trust and respect led to joint initiatives and strategies, and created an environment where their teams were willing to cooperate on new, emerging ideas. Within a few months of the new directors’ appointment, a new customer strategy and plan had been agreed, compared to the previous five years when no real change in customer focus had been possible. 2. Have everyone focused on the same goal. The more that everyone in the entire organization is pursuing the same goal, the greater the chance to remove functional silos and build a single organizational community. Conversely, breaking down the No. 1 goal into functional and departmental

BETTERING YOUR BUSINESS goals will increase the probability of different priorities across the organization’s different functions. At one client, a PVC window business, all the departments’ goals are focused on delivering the company’s No. 1 goal of achieving sales of 15,000 windows each week. As the CEO observed, one of the positive side effects of this move has been to stepchange the level of interaction and integration between manufacturing, sales and marketing, so that issues are resolved more quickly and new ideas that can help the company achieve its goal faster are developed more rapidly than happened in the past. 3. Pursue a “monofocused” agenda. I once led a consulting project for a UK homewares retailer to identify new priorities for growth, and, like all good consultants, proposed three different opportunities that the business could develop and test. The CEO listened politely to my recommendations before saying, “There’s only one of these opportunities that I want to pursue. It’s far bigger than the other ideas, it fits best with who we are, and we know how to pull it off. We need to focus on this one so that we can really get going.” The atmosphere in the meeting was instantly transformed. The other executives and managers immediately started discussing how they could work together to develop an initial prototype as well as how they could bring the ideas into some of the new stores they would soon be opening. Focus had instantly generated pace and effectiveness. 4. Destroy functional silos. There are no perfect organizational structures. Every solution has its own set of weaknesses and limitations. The key is to create an environment and culture where colleagues look to work across structural boundaries and reporting lines in pursuit of shared corporate goals. There are pragmatic ways to make this happen. Possible actions include creating cross-functional career development paths, using cross-business mentors to provide independent and confidential feedback and support to key managers, promoting processled performance improvement programs that cut across functional structures, celebrating and rewarding shared victories, and removing silo “imperialists.” 5. Ensure the same person runs R&D and sales. As at the cleaning products business, the teams responsible for R&D and product and service innovation commonly report into a chief marketing officer or chief technology officer. Innovation, it seems, is seen as too important to be placed under the responsibility of operators. A simple, straightforward organizational solution to this issue is, therefore, to bring innovation, research and development, and sales under a single team. After all, it is the sales teams that are closest to the customers and have the best understanding of their needs. Bringing innovation and sales under the same leadership provides a direct linkage between customer opportunities and new product and service possibilities. It is exactly how the best, most entrepreneurial businesses operate; it can enable organizations to step-change the pace and take-up of new products and services by both its sales teams and its customers. The cleaning products business may offer an extreme example, but it is not an unusual one. Hidden organizational brakes affect many companies’ ability to innovate and grow. Removing these brakes is not a bottom-up process, but demands top-down leadership to establish the structures, rewards and culture that promote cross-functional collaboration and organization-wide commitment to shared goals and priorities. These five steps provide the basis for organizational leaders to make fast and lasting improvements to the speed and effectiveness of their corporate innovation programs, enabling their companies to accelerate growth and move into the innovation fast lane.

Everydata While everyone is talking about “big data,” the truth is that understanding the “little data” (stock reports, newspaper headlines, weather forecasts, etc.) is what will help business owners and executives make smarter decisions at work, at home and in every aspect of their life. The average person consumes approximately 30 gigabytes of data every single day, but has no idea how to interpret it correctly. Everydata explains, through the eyes of an expert economist and statistician, how to correctly interpret all of the small bytes of data we consume in a day. Readers will become effective, skeptical consumers of everyday data. Title: Everydata: The Misinformation Hidden in the Little Data You Consume Every Day Authors: John H. Johnson and Mike Gluck

Price: $27.95

Publisher: Bibliomotion

Pages: 240

Available: 4/12/2016

Sandler Enterprise Selling Competitively pursuing large, complex accounts is perhaps the greatest challenge for selling teams. To keep treasured clients and gain new ones, one needs a system to win business with profitable enterprise clients, serve them effectively and grow the relationships over time. The only enterprise selling system based on the proprietary Sandler Selling System methodology created by David H. Sandler, this practical, step-by-step book is designed specifically for selling teams committed to high achievement in the enterprise environment. Title: Sandler Enterprise Selling: Winning, Growing, and Retaining Major Accounts Authors: David Mattson and Brian Sullivan

Price: $32

Publisher: McGraw-Hill Education

Pages: 240

Available: 4/15/2016

Return on Integrity Core values have been featured in countless books over the last decade, but none has taken the search as deep or has focused on the intersection of leaders’ personal values and those of their organization. At this intersection, Return on Integrity reveals the linchpin of leadership and legacy. Core values are not just a guide; they should be the basis of every decision and action in an organization. The new ROI is the value built between personal and organizational core values — a stronger organization built on a stronger base. The new ROI is also the return CEOs and leadership teams experience by living and leading with integrity. Title: Return on Integrity: The New Definition of ROI and Why Leaders Need to Know It Author: John G. Blumberg Publisher: Greenleaf Book Group Press

Cost: $25.95 Available: 4/19/2016

Nearly three-quarters (72%) of chief HR officers say they are not satisfied with the level of insight they extract from their company data, to help find the right talent and help drive the growth of their companies, according to a recent survey by Consero Group, an international leader in creating high-level, invitation-only events for senior executives. consero.com

Pages: N/A

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OUR SUBJECT IN-DEPTH

Digital Forces a Change in World of Work Companies are compelled to radically change organizational structure and talent strategies Responding to disruptive changes in digital technology, business models and workforce demographics, 92 percent of business and HR leaders have identified the critical need to redesign their organization to meet global business demands. This is according to Deloitte’s fourth annual report, “Global Human Capital Trends 2016: The new organization, Different by design.” Yet only 14 percent of executives believe their company is ready to effectively redesign their organization. “By empowering teams, creating a new management model and developing a younger and increasingly inclusive leadership structure, organizations are reinventing themselves to innovate, compete and thrive” says Josh Bersin, principal of Bersin by Deloitte, part of Deloitte Consulting LLP.

TECHNOLOGY AND BUSINESS DISRUPTION ARE FUELING THE DEMAND FOR A ‘NEW ORGANIZATION’

Conducted among more than 7,000 HR and business leaders in 130 countries, Deloitte’s Global Human Capital Trends 2016 survey is one of the largest-ever global studies of workforce, leadership and HR challenges. In the first three years of the study, companies placed a high priority on increasing employee engagement and retention, improving leadership and building a meaningful culture. The 2016 study found, for the first time, nearly half of respondent companies (45%) are either in the middle of a restructuring (39%) or planning one (6%). Global Human Capital Trends 2016 report bitly.com/human-capitaltrends

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This year’s research clearly indicates that companies are overhauling their organizational structure and shifting away from hierarchical, functional business models toward cross-functional “networks of teams” in an effort to become more agile, collaborative and customer-focused. Despite the enormous interest in this shift, however, only 21 percent of business and HR executives feel expert at building crossfunctional teams, and only 12 percent understand the way their people currently work together. In addition, generational diversity is increasing as millennials with high expectations for personal growth work side by side with baby boomers, many of whom are delaying their retirement. A new social contract, driven by demands for rapid career growth, flexible work arrangements and an increase in the number of contract and part-time workers, is dramatically changing the employer-employee relationship. The new digital world of work is further fueling these changes. Almost three-quarters of executives (74%) have identified digital HR — the complete redesign of HR tools and services around digital technology — as a top priority. Fortytwo percent of companies are redesigning their HR systems to support mobile, just-in-time learning and 59 percent are shifting their back-office HR systems to mobile in an effort to make them easier to use by employees. Design thinking, a developing new discipline focused on employee-centric strategies, has emerged as a major new trend that is transforming companies’ approach to managing, supporting and training their workforce. Looking beyond the focus on transactions and processes, companies are studying employees’ behaviors to help develop interventions, applications and tools that are intuitive and easy to use, mitigate stress and boost their productivity. In fact, 79 percent of executives rank design thinking as a top priority for 2016.

EMPLOYEE EXPERIENCE IS PRIORITY The balance of power continues to shift in favor of the employee, causing business and HR leaders to focus on

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enhancing the employee experience to help attract and retain top talent. Nearly 9 in 10 respondents (86%) rate challenges with corporate culture as “important” or “very important.” In addition, 85 percent rate challenges with employee engagement as “important” or “very important.” To address these issues, new roles are emerging within the HR function, such as “chief experience officer” and “chief listening officer,” and companies are working on improving learning opportunities for all employees and closing the skills gap within the HR function. Four in 10 executives report their companies are ready to address the skills gap in HR — an increase of 25 percent since 2015. Moreover, people analytics is gaining speed to help improve this culture and engagement crisis. This year, the percentage of executives who believe they are fully capable of developing predictive models doubled from 4 percent in 2015 to 8 percent in 2016, indicating rapid growth in analytics as a core discipline within HR. In terms of learning, forward-thinking organizations are putting the employee at the center and adopting new, open learning technologies. The percentage of companies that feel comfortable incorporating massive open online courses (MOOCs) into their learning platforms rose to 43 percent from 30 percent last year. In connection with the growing adoption of MOOCs, Deloitte, together with Columbia University’s School of Professional Studies and Dean Jason Wingard, Ph.D., is collaborating on offering a MOOC later this year to help HR and business professionals deepen their awareness and knowledge of the topics in Deloitte’s Global Human Capital Trends 2016 report.

LEADERSHIP MODELS ARE CHANGING Deloitte’s report reveals the traditional leadership pyramid is not producing leaders fast enough. Fifty-six percent of respondents report their companies are not ready to meet their leadership needs, and more than one in five respondents (22%) report having no leadership programs for millennials. To address this issue, the large majority of executives (89%) cite strengthening, reengineering and improving organizational leadership as an important priority in the year ahead. “Companies must make and sustain investments in identifying and nurturing leaders earlier in their careers,” says Brett Walsh, global human capital leader at Deloitte Touche Tohmatsu Ltd. “Turning the traditional corporate hierarchy on its head, in a disciplined way, will help develop networks of teams and spawn leadership. Senior leaders and traditional organization structures will need to evolve to take full advantage of a —Mike Hunter re‑energized leadership pipeline.” Deloitte Touche Tohmatsu Ltd. deloitte.com Global Human Capital Trends 2016 bitly.com/human-capital-trends

Josh Bersin will share additional insights with more than 600 HR, talent and learning leaders at IMPACT 2016 Different by Design: The New Organization, a research-based executive conference, April 25-28 in Hollywood, Florida. impact.bersin.com/Registration.aspx

SAVE THE DATE

2016 Rosie’s House 20th Annual Gala Performances & Powerful Testimonials Silent Auction & Raffle Specialty Wine & Hors d’Oeuvres

WHEN

CREATING MUSIC

Changing Lives Rosie’s House is one of the largest free after-school music programs nationwide and is a local Phoenix nonprofit organization.

May 14, 2016 4 p.m. – 6:30 p.m.

WE PROVIDE 12,000 free music lessons annually

WHERE

WE DELIVER free access to music education for students from low-income families

Arizona Opera 1636 N. Central Ave. • Phoenix

COST

$95

WE IMPACT student success – 96% of our senior students have achieved college goals WE UPHOLD accreditation by the National Guild for Community Arts Education WE CERTIFY for the Arizona Charitable Tax Credit

FOR MORE INFORMATION, VISIT ROSIESHOUSE.ORG

INVESTING IN COMMUNITY

Who Manages the Endowment? MAY

UP NEXT MONTH The Role of Brand in Fundraising

QUESTIONS TO ASK A POTENTIAL INVESTMENT MANAGER Russell Goldstein, senior vice president of U.S. Trust, Bank of America Private Wealth Management, suggests nonprofits do their homework before embarking on an investment management relationship. Ask potential partners: • What investment model is best for our organization (Outsourced Chief Investment Officer, Consultant, Broker, Investment Advisor, Custody)? • How will you engage our investment/finance committee members to “the highest and best use” of their time? • How are decisions made in manager selection, economic and market forecasts? • What is the investment management process at your firm: Who do you work with, report to and rely on for information, ideas and investment perspective? • How can we easily understand we are on track via your reports?

Deborah Whitehurst is a senior consultant for The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists. phoenixphilanthropy.com

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Nonprofits may find partnerships with community foundations and investment counselors fruitful for their endowments by Deborah Whitehurst Though they are only one part of a nonprofit’s cash equation, endowments provide a predictable source of income and may be a lifeline during economic downturns. They allow nonprofit entities to produce income as well as growth. But who should manage the assets in an endowment? It might seem a single executive or executives seated at the boardroom table are best suited. After all, they might share decades of investment leadership experience and understand the current endowment theory of drawing a 4-percent income stream from assets. But not so fast. Imagine the potential conflict of interest and difficulties. The board as a whole, after all, has the fiduciary responsibility to fire that person if investments consistently perform poorly or if problematic choices are made that decrease the organization’s assets. The role of the board, rather, is to ensure the nonprofit has the financial resources it needs to fulfill the mission, including, as a best-case scenario, a large enough endowment. That means, first, selecting an oversight committee — either an already established finance committee or a separate investment committee consisting of those board members with finance and investment knowledge. This group will work to create an investment policy for the organization, spelling out the types of investments favored and rejected, as well as determining the oversight role of the committee and its members. Beyond that, the board must ensure the endowment is well managed by the investment fund. Most often, this means hiring an advisor to assist the nonprofit as it looks to diversify its endowment dollars among fixed-income instruments and equities investments.

COMMUNITY FOUNDATIONS Especially for small-to-midsize nonprofits with modest endowments ($5 million or smaller), community foundations offer high-quality money management services. Because they almost exclusively manage endowments (and often many of them), community foundations offer broad investment diversification options for the nonprofit that it otherwise couldn’t access. Executive Director JoAnn Turnbull of Handi-Dogs Inc., a dog-training assistance program in Tucson, lauds the work of community foundations. “Having our endowment fund at the Community Foundation for Southern Arizona means it is invested by trusted experts, allowing us to benefit from pooled funds to maximize our investment outcomes.” Turnbull also cites the community foundation’s planned giving services as invaluable. “That support has helped us secure and manage future planned gifts to build our endowment.” According to Clyde Kunz, vice president of development and donor services at the Community Foundation for Southern

Arizona, many nonprofits have turned to the Foundation to help with the administrative, investment and accounting of their endowed funds.

INVESTMENT COUNSELORS Organizations with larger endowments may seek investment management from private investment counselors or banks. Selected for their expertise in endowment, long-term asset management and fiduciary oversight, these partners often work only with nonprofits of sizeable endowments ($5 million or larger). Russell Goldstein, senior vice president of U.S. Trust, Bank of America Private Wealth Management, says that before larger nonprofits seek an investment management partner, they first need to ask, “Would we hire ourselves as an investment manager?” This question invariably leads to an introspective look at the nonprofit’s resources and its committee and investment process to determine strengths and weaknesses. With today’s greater dependence on the investment portfolio as a funding source for nonprofits, the general consensus after these discussions is often a need for third-party investment management. “Once a partner is selected,” says Goldstein, “reporting is key for board members to adhere to their fiduciary responsibilities and to best understand the important questions of ‘How are we doing?’ and ‘Are we on track?’” While every organization will require customized reporting and detail, Goldstein says nonprofits should expect, at a minimum, online access to retrieve reports on any given day and quarterly in-person investment meetings. “Reporting should be tailored to each committee report,” he cautions. “The finance committee may need more detail on money flow in and out of accounts versus the reports for board members.” Because nonprofits have a fiduciary responsibility and public duty to manage endowment funds appropriately, they must be diligent when assessing an institution’s tolerance for investment risk. They also must be cognizant of charitable fund law. Consider, for instance, Arizona’s Management of Charitable Funds Act, which permits nonprofits to expend or accumulate endowment or other charitable funds in a “prudent manner.” Investment professionals familiar with the law are often the most skilled at making these prudent decisions.

Investment Policy Template. Consider this template when drawing up an investment policy, provided by the Council of Nonprofits: councilofnonprofits.org (Use “investment policy” in search field.)

APRIL 2016

Arizona Hispanic Chamber of Commerce

58th Annual Black & White Fashion Gala and Business Awards Sat., May 7 | 6:00p – 12:00a With the distinction of being the longest-running formal gala in Arizona, the Arizona Hispanic Chamber of Commerce’s Black & White Ball draws an ethnically and demographically diverse audience of about 1,200 of the state’s most important Latino community and business leaders as well as non-Latino leadership, including mayors, governors, small-business owners and major corporate leaders. This year’s theme ties in the gala with Phoenix Fashion Week, and prompted the name change from “Ball” to “Fashion Gala.” During the first part of the evening, when guests mingle in the lobby, there will be male and female models displaying some of the wardrobes of Fashion Week. “Everyone always dresses to the hilt anyway, so it’s nice to give them a chance to see some of the designers in the area,” says Communications Director James Garcia. And there will be a fashion show as entertainment during the dinner. The Chamber’s single largest fundraising event, the evening includes the announcement of business awards for Man of the Year, Corporation of the Year, Woman of the Year, Legacy, and Entrepreneur of the Year. The focus on entrepreneurs is another point of connection with Fashion Week, Garcia explains, noting Fashion Week’s entrepreneurial project to help new designers learn how to deal with the business side of their work helps connect it to the Chamber, with its membership of small businesses and entrepreneurs. “This year’s Black & White Fashion Gala and Business Awards is the perfect blend of business and fun,” says Gonzalo A. de la Melena Jr., president and CEO of the Arizona Hispanic Chamber of Commerce. “We expect another sold-out event. So mark your calendars for an evening that will honor local business leaders, while capturing the flair and excitement of the Valley’s —RaeAnne Marsh vibrant fashion world.” Members: $300; non-members: $400 Arizona Biltmore

2400 E. Missouri Ave., Phoenix

azhcc.com

In Business Magazine

The New Healthcare: Making It Work for Business & Individuals Wed., April 27 | 11:00a – 2:00p Join In Business Magazine as we present our 4th Annual New Healthcare Event and Expo. “The New Healthcare: Making It Work for Business & Individuals” event and expo is a gathering of business owners, managers, professionals, decision makers and leaders. The program includes an in-depth business discussion with three panels. The panels are made up of the top business and healthcare leaders in the Valley, including Blue Cross Blue Shield of Arizona, Redirect Health, Healthcare Solutions, Arizona Hospital and Healthcare Association and more. The symposium-style event will include a gourmet lunch and panel discussion. Attendees will have an opportunity to mingle with the panelists at a VIP reception prior to the program. Moderated by Ted Simons of “Arizona Horizon,” this robust and informative discussion will encompass many of the compliance issues facing business as well as the benefits for business owners who want to create incentive programs for their employees. Panelists will include top executives from the major insurance carriers, local hospitals, healthcare associations and healthcare companies to speak about some of the trends that are changing the face of healthcare for individuals, which is adding to the pressures businesses are feeling on the various mandates. The first panel will be focused on the various changes in coverage and what major hospitals and carriers are doing to better work with businesses to fully cover employee needs. Our second panel will discuss the various options, compliance fees and other expenses and cost savings that are affecting businesses. Our third will address alternative programs for businesses and individuals, savings and management. At the expo prior to the summit, exhibitors will introduce attendees to their top local executives and provide information —Mike Hunter about their businesses and services.

SAVE THE DATE

Upcoming and notable

WOMEN ENTREPRENEURS’ BOOT CAMP May

Sat., May 7

Day-long event designed to give woman business owners powerful, world-class insights and cutting-edge strategies. nawbophx.org

ARIZONA FORWARD STEWARDSHIP SUMMIT May

Thurs., May 12

Half-day forum focusing on the impact of the built environment on public health and wellness. arizonaforward.org

$65 Camelback Inn & Resort

APRIL 2016

5402 E. Lincoln Dr., Scottsdale

S M T W T F S

inbusinessmag.com

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

APRIL 2016 NOTABLE DATES

Fri., April 15 – Tax Day Fri., April 22 – Earth Day

Sat., April 23 – First Day of Passover

33 20APR.1 6 INBUSINESSMAG.COM

APRIL 2016 Fri., April 8

Start: 6:30a

35th Annual Luke Shoot Out Golf Tournament Glendale Chamber of Commerce Join the Glendale Chamber of Commerce for the 35th Annual Luke Shoot-Out Golf Tournament and SALUTE our TROOPS! $110 Falcon Dunes Golf Course 15100 W. Northern Ave., Waddell glendaleazchamber.org

Thurs., April 7

Tues., April 9

Shotgun start: 1:00p

Thurs., April 14

9:00a – 1:00p

Veteran’s Mentor Entrepreneur Seminar

7th Annual Golf Tournament

Surprise Regional Chamber of Commerce

Gilbert Chamber of Commerce

$150

Free event open to all veterans who live in the region as well as Luke Air Force Base personnel and families considering acquiring or starting a business in the West Valley, who will be able to speak with local representatives for information and guidance on important business aspects, including banking, legal considerations, accounting, marketing, online advertising, traditional advertising and operational logistics.

Seville Golf & Country Club

Free

6683 S. Clubhouse Dr., Gilbert

Park Wood Assisted Living

gilbertchamber.com

surpriseregionalchamber.com

Presented by San Tan Ford, this signature event is an opportunity to enjoy the company of professionals in a fun and relaxing atmosphere.

Wed., April 6

8 7:30a – 9:00a

Ambassadors Coffee Chat and Morning Blend Networking Arizona Hispanic Chamber of Commerce and Greater Phoenix Chamber of Commerce In addition to the networking opportunity, event includes a presentation by a representative from Costco, who will discuss their management and leadership style that has proven success. Light refreshments will be provided. Members: free; non-members: $10

14581 W. Parkwood Dr., Surprise

9 Fri., April 8

8:00a – 9:30a

Costco Business Center

3801 N. 33rd Ave., Phoenix

azhcc.com

phoenixchamber.com

Tues., April 12

9:30a – Noon

11:30a – 1:00p

Grow Your Business: Local Search Engine Marketing

Breakfast Mixer

Small Business Workshop

Phoenix Metro Chamber of Commerce

Gilbert Chamber of Commerce

Morning networking event. $10

Workshop on “Referral Marketing,” presented by 910 West. Speaker: Victoria Trafton

The Haymaker Restaurant

Members: $25; non-members: $40

4717 E. Bell Rd., Phoenix

Saint Xavier University

Attendees will learn from industry leaders new and practical tips to employ in the success of their businesses. Lunch is included and networking adds an additional dimension to this educational event.

phoenixmetrochamber.com

92 W. Vaughn Ave., Gilbert

Members: $15; non-members: $25

gilbertchamber.com

MVPita Mediterranean Grill Fri., April 8

Mesa Chamber of Commerce

Start: 7:30a

Classic Golf Tournament

1066 N. Power Rd., Mesa mesachamber.org

Tempe Chamber of Commerce The tournament returns to spring weather, a morning tee time and a brand new home. Invite key clients or reward your highperforming staff with a morning round of golf at the beautiful Raven Golf Club. Members: $125; non-members: $150 Raven Golf Club 3636 E. Baseline Rd., Tempe tempechamber.org

APR. 20 1 6

INBUSINESSMAG.COM

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

For more events, visit “Business Events” at www.inbusinessmag.com

Tues., April 19

10:45a – 1:30p

Mayor’s State of the City Address & Luncheon Greater Phoenix Chamber of Commerce Phoenix Mayor Greg Stanton will provide an update on the city’s progress and outline his vision for our city, our businesses and our economy. From critical transportation initiatives to economic development efforts, Mayor Stanton has led Phoenix’s economy in becoming innovation-based, export-focused and designed to lead in today’s global marketplace. Members: $75; non-members: $90 Sheraton Grand Phoenix – Ballroom

340 N. 3rd St., Phoenix

phoenixchamber.com Wed., April 20

Wed., April 27

6:00p – 8:00p

Business Mixer Local First Arizona Hear the latest from Local First Arizona while you network with local entrepreneurs from around the Valley. Live radio interviews, raffle prizes and Pulse Radio station tours. (Must be a local business to attend.)

Thurs., April 28

11:00a – 1:00p

Young Women’s Forum: Maneuvering the Workplace and Charting Your Career Path

PHX Solar Impulse Landing in the Southwest

The Arizona YWCA of Metropolitan Phoenix

“The Solar Impulse Journey,” featuring pilots Bertrand Piccard and André Borschberg, the crew and Solar Impulse 2 — which continues its flight around the world, taking off from Honolulu and landing in Phoenix in early spring.

Global Chamber of Commerce

Free

Learn strategies and tools on how to sail through difficult dynamics in the workplace. Whether you have struggled with a difficult boss, employee or work site, or you might encounter this in the future, this is a must-attend event for all professional women.

Pulse Radio

$20

1601 W. Main St., Mesa

YWCA Conference Room

localfirstaz.com

ywcaaz.org

Sky Harbor Airport

11:30a – 1:00p

3400 E. Sky Harbor Blvd., Phoenix

globalchamber.org

27 Thurs., April 21

Due to the nature of Solar Impulse’s flight, the exact date and time of landing is still up in the air (pun intended). Stay tuned. Price TBD

2999 N. 44th St., Phoenix

Thurs., April 21

8:00a – 10:00a

11:30a – 1:30p

Wed., April 27

29 9:00a – 11:00a

Executive of the Year Luncheon

Strategic Business Solutions

Economic Club of Phoenix

eWomen

Honoring the 2016 Executive of the Year: John Hammergren, chairman, president and CEO of McKesson Corporation. Members: free; non-members: $85

This intimate networking event focuses on new client acquisition, marketing and promoting your business, connecting you with needed resources, and providing help and guidance to your business.

Camelback Inn

Members: $50; non-members: $75

5402 E. Lincoln Dr., Scottsdale

TBD

wpcarey.asu.edu/economic-club

ewomennetwork.com

Hot Topics & Lunch Tempe Chamber of Commerce

Fri., April 29

Tempe Mayor Mark Mitchell shares his perspective on the social and economic climate of Tempe at this special luncheon. He will discuss the present business environment and share his vision for the growth and future of the city. The public and business community are welcome to attend.

2016 Golf Tournament

Members: $25; non-members: $35

$175; reception only (5:30p – 7:30p): $30

Four Peaks Tasting Room

McCormick Ranch Golf Club

2401 S. Wilson St., Tempe

7505 McCormick Pkwy., Scottsdale

tempechamber.org

scottsdalechamber.com

If your event is directed to helping build business in Metro Phoenix, please send us information to include it in the In Business Magazine events calendar. Full calendar online. Events@inbusinessmag.com

1:00p – 7:30p

Scottsdale Area Chamber of Commerce The Scottsdale Area Chamber Open golf tournament attracts golfers from some of the Valley’s most influential companies. Play a great course and enjoy business-to-business networking at its best.

35 20APR.1 6 INBUSINESSMAG.COM

WE VALUE WHAT WE OWN

BY MIKE HUNTER

2016 Ferrari 488 Spider The quintessential sports car is the Ferrari, and this model is the one everyone is talking about. Pricy, fast, highest quality and style to rival none is what is heard about this intensely tech’ed-out vehicle. With a 3902cc turbo-charged V8 engine with 661 horsepower and more than 560 lb.-ft. of torque, this rocket is impressive by all measures. Clocked at 0–62 mph in just 3.0 seconds, the 488 Spider hits the streets with little chance of being seen. The entire car was developed, according to Ferrari, around the retractable hard top and has set countless technological benchmarks. Its roar and precision engineering give way to

2016 FERRARI 488 SPIDER Combined MPG: 24.8 0–60: 3.0 sec MSRP: $255,000

power and grit like no other Ferrari of this type. The Variable Torque management system allows for progressive torque delivery heightening performance and making for smooth transition of higher gears, resulting in impressive speed and snapshot-like movement. The behavior of this exceptional model is elevated through multiple electronic systems, which now includes Ferrari’s Side Slip Control 2(SSC2) to manage slip angle control — resulting in response times that are 9-percent more rapid than previous editions of the Spider. With a top that retracts and deploys in just 14 seconds, the conversion to open air is as easy as driving this beast. More comfortable than previous model-years, the hard top seals to eliminate sound, and, when stored away, allows for smart wind dynamics and minimal in-cabin disruption — even at high speeds. A small electronic window works independently of the top and holds three positions to ensure wind blockage, sound muffling, or the “open road” experience that allows sounds of the exhaust system to be heard. The styling is what one would expect of Ferrari — crouched and set for speed. This new model is more dramatic in its styling and the contemporary curves give it more detail. Ferrari ferrari.com

A Thank You by Any Other Name In today’s world, the thank you has become an immediate email sent to express gratitude or congratulations for a special moment. For high

Paperjoy

Paper Source

Papyrus

Specializing in all things custom,

Online or in person with two

Known for fine art pieces

from prepackaged thank yous

locations, this stationery store will

and prints, this store’s

to custom, and elaborate

personalize and offer countless

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editions and art pieces, this

options, from personal to business

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2035 E. Camelback Rd., Phoenix

be placed online.

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(602) 840-0738

2502 E. Camelback Rd.,

4410 N. 40th St., Phoenix

15323 N. Scottsdale Rd., Scottsdale

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(602) 667-6227

(480) 219-1640

(602) 957-7356

paperjoy.com

papersource.com

papyrusonline.com

urce Paper So

APR. 20 1 6

INBUSINESSMAG.COM

The Ferrari 488 GTB replaced the 458 in 2015 and is the base for the new 2016 retractable hard-top edition, the Ferrari 488 Spider. The former models are similar technologically, with the top and lighter weight due to an aluminum chassis as the most notable changes.

Photos courtesy of Ferrari (top), Paper Source (bottom,)

impact, though, it’s still the mailed note or thank you card that stands out. Here are our picks for personalized cards.

april 16th | 6pm to 11pm

Gather together to raise (and shake) some booty for the Children's Museum of Phoenix! This evening of island fun benefits the Museum's Every Child Program. Featuring: Craft Cocktails | Restaurant Wars | Live and Silent Auctions | Sit-Down Dinner | DJ | Dancing Tickets: $275/person www.childrensmuseumgala.org Tables and sponsorships available. Please contact Debbie Paine at dpaine@childmusephx.org or call 602.648.2743

MEALS THAT MATTER

BY MIKE HUNTER

Craft 64

Fresh tomato, olive oil

MARGHERITA PIZZA WITH PROSCIUTTO

Craft 64 6922 E. Main St., Scottsdale

Fresh, house-made mozzarella, tomatoes, basil

(480) 946-0542 craft64.com

Breakfast and Lunch Spots A great new trend is the restaurant that focuses on only the mornings and early afternoons. All kinds of concepts are popping up. Here are some of the most fun. Morning Squeeze

Morning Squeeze

Scramble

Snooze

Eclectic and fun, this bright

Scramble is a fresh take at

Snooze serves creative

morning and lunch spot

breakfast and it all begins with

twists on America’s favorite

serves up many of the “old

using the freshest ingredients

breakfast classics in a

diner” plates with a bit of a

around. The owners take pride

casual, friendly and vibrant

gourmet twist. With a full

in using local farmers and

atmosphere. The passion of

coffee and liquor bar, this

vendors whenever possible.

its customers is contagious

is the perfect weekend

Open 6 a.m. to 2 p.m.

as they enjoy fresh

spot as well. Open

9832 N. 7th St., Phoenix

ingredients, a full coffee bar

6:30 a.m. to 2:30 p.m.

APR. 20 1 6

INBUSINESSMAG.COM

The classic Margherita smothered in tomato sauce, fresh mozzarella and basil leaves is so flavorful and light. The Spain is made with fresh mozzarella, La Mancha chorizo, Spanish almonds, cured olives and mild Harissa sauce. The Fico pizza is a true must that is topped with fresh mozzarella, buratta and Parmigiano Reggiano cheeses; truffle oil; arugula; and a sweet fig sauce. Other dishes that the restaurateurs are known for are the bruchettas, like the classic Tomato and Mozzarella, the Apple Brie and the Mascarpone and Fig all on a brushed Italian bread toasted to perfection each time. Whether patrons start with the Charcuterie Board, enjoy a fresh-made salad with local produce or enjoy one of the pizzas described above, this comfortable, casual eatery beckons them to want to enjoy one of the craft beers on tap or take a noontime break and have a glass of wine that will fully complement the meal. The service is a joy and the creative additions to the menu will mean that each visit offers the opportunity to enjoy something new.

(602) 374-2294

and creative dishes to “liven” the start of any day. Open

4233 N. Scottsdale Rd.,

6590 N. Scottsdale Rd.

Scottsdale

from 6:30 a.m. to 2:30 p.m.

(480) 945-4669

(480) 404-7264

Four Valley locations

morningsqueeze.com

azscramble.com

snoozeeatery.com/locations

Peoples around the world have been creating varieties of flatbreads with toppings since the Neolithic Age. Today’s standard pizza, with red sauce and cheese, was more a sweet dish than a savory one until about 100 years ago.

Photos courtesy of Mike Hunter (top), Morning Squeeze (bottom)

HOUSE MADE MOZZERELLA CAPRESE

Craft beer and modern Italian fare is a great way to not only describe this new Old Town Scottsdale hot spot, but a great way to entice patrons. Artisan wood-fired pizza is going to be the lunchtime crowd attraction, however. Quickly becoming known for offering more than 30 craft beers and a sommelier on staff offering up great wines, owners Josh Ivey (the resident sommelier), Roger Carpenter, Scott Hagen and James Swann are all well versed in the local beer scene and have created this establishment to impress even the most elite of aficionados. The pizzas are a gift from heaven as they are crafted with the finest ingredients and wood-fired for that great crispy texture and spot-charred crust. Covered with zesty sauces and added ingredients, these make the perfect lunch item.

Celebrating 30 years of serving the women business owners of Phoenix

Spring 2016 • nawbophx.org

Change is one of the few constants in life and especially in business. That’s why it’s so important for entrepreneurs to invest regularly in their personal and professional growth. For busy women business owners, however, there’s no time for events that are full of fluff and non-stop sales pitches. That’s why Susan Ratliff’s Women Entrepreneurs’ Small Business Boot Camp is now in its 12th year — it’s the hard-hitting, no-fluff, get-down-to-business event where women business owners can get practical tips they can use now to excel in marketing, selling, prospecting, networking and technology. It’s also the place where phenomenal women come together to forge powerful business relationships. There’s plenty of time for networking and browsing the exhibitor hall to discover new businesses and reconnect with old acquaintances. And now, the Phoenix Chapter of the National Association of Women Business Owners is proud to be the presenting sponsor of this one-of-a-kind event. For this issue we asked the experts who will be workshop presenters at the Boot Camp to share a slice of their expertise with you. So mark your calendars now for the Women Entrepreneurs’ Small Business Boot Camp on May 7th! You can register at WomensBusinessBootCamp.com. The registration price goes up on April 15, so lock in your spot now if you want to save some dough.

20 2008

Exhibit space and sponsorships are also available; exhibit space usually sells out and is on a first-come, first-serve basis. We look forward to seeing you on May 7th! Nancy Sanders

nawbophx.org

NAWBO NEWS

Hell in High Heels by Lynda Bishop

Learning to be a great leader takes training. There are countless leadership training courses, classes, videos, books and even degrees available for people who truly want to be great leaders. Much of the training available is excellent; however, when you look at the majority of the great training out there, it was developed by men for men. Women can still use it, of course, but very little of it addresses the differences between male and female energy and how that changes leadership. With all of the great training resources out there on leadership, why do we have to look so hard to identify and name great female leaders to learn from? Women make great leaders. And women have been banding together with some very exceptional men to level the playing field and open the doors of opportunity into leadership for everyone for a very long time. Yet, progress has been slow. What in the world is truly in our way? Being a person without a victim mentality (oh, I am sure I had one once, but I have long forgotten where I left it), the question I like to ask even more than what is stopping me is, “How am I stopping myself?” So, since I am a woman, but am not ALL women, the question then becomes, “How are we stopping us?” One of the biggest blocks I have seen in my many years of working with women entrepreneurs and women executives (all of them leaders!) comes down to this: We have been trained this way. Since we were little girls, we have been getting messages that have created blocks to leadership not only for us, but for nearly all women. How do the messages do this? By pitting women against women. How do you

NAWBO NEWS

stop the most powerful force there is? Get it to fight itself. We have been trained to do this and we all are affected. From the time we were three years old, we started to learn the difference between boys and girls and what was expected of each. We were taught to be pretty (but not too pretty), to be smart (but not too smart), and to be polite so that others would think well of us. What other people thought of us was ingrained as more important than what we thought about ourselves. That’s just bad training, isn’t it? Let’s unlearn it. Once we got to school where there were other girls, we were quickly trained to protect ourselves from them. Girls fight differently from boys. Boys yell, they hit, they get bigger and in your face. Girls fight with carefully placed words and social hierarchy of inclusion and exclusion. Judgment is our sword, where boys are more apt to use fists. Girls smile and gather together and, if she is a mean girl, she will be your friend until that fateful moment when she is NOT and you run the risk of being ostracized from the entire group. You learn quickly that the fastest way to stay “safe” is to play the game (joining in on the gossip and trying to stay in favor of the girl in charge) or you separate and identify yourself as someone who “doesn’t belong.” The message of “you are not good enough” is a strong one and we are trained to feed it to each other. We are taught that our worth is something determined by someone else. The older we get, the better we get. We either learn to embrace and support each other, or we hone our skills of manipulation, sabotage and exclusion to mastery levels. While this might move one mean girl to an elevated status, it bogs down the progress of women’s leadership as a

whole. It keeps the stereotype of women leaders as “troublemakers” or “untrustworthy” alive in a male-dominated business world looking for a reason to keep us at bay. We must un-train from this thinking through choosing different actions. It is no big secret: A band of powerful, well-connected and strong women moving together for the good of everyone is exactly what the world needs. It begins with awareness. We must be courageous enough to identify within ourselves where we are too much the Good Girl and where we slipping into the Mean Girl within our own thoughts, attitudes and behaviors. One of the keys to this is understanding your own power and how you use it. Are you aware of where you have the power to influence of affect others? Are you consciously using it to promote and grow other women? All the leadership training on the planet isn’t going to create more women leaders if there are not people in power willing to use their power to get the door open. Another key is accurately assessing your own level of self-esteem. It is well known that “hurt people, hurt people.” Your courage to un-train will require you to find the parts of you that need to be strengthened and then make a firm choice to support women — starting with yourself. Third, we must all get better at identifying the gaps around us and be brave enough to speak up. Stop the gossip, the cliques, the exclusionary tactics that divide us and find a way to reach across to other women and build them up. The change begins with us, every one of us. We can change this in ourselves, assist our women friends in shifting, too, and lead the way for the next generation of women coming up. Lynda Bishop, MPC, CEC, is an International Women’s Leadership Development specialist, trainer, speaker and author. She is also the founder of Relationship Insurance, www.relationshipinsurance.guru, a boutique relationship focused coaching/counseling practice. Learn more about Lynda at www.lyndabishop.com.

Attend Lynda’s workshop “Hell in High Heels” at the 12th Annual Women Entrepreneurs’ Small Business Boot Camp on May 7.

nawbophx.org

Close the Sale at Hello! by Lorraine Bossé-Smith

HELLO !

Some people feel they aren’t cut out for sales while others love it, thriving on the adrenaline of a closed deal. The bottom line is that we are all selling something: an idea, our opinion, a product, service or decision. Whether at work, on the road, with family or with friends, we tap into the ability to persuade and negotiate with others. That, my friends, is sales. Some people are naturally better at sales than others. Some individuals can appear to sell the infamous “ice cube to the Eskimo” while someone else can’t seem to sell a fan to a person in the blazing-hot desert. It starts with understanding people: how they are wired, how they think, and why they do what they do. Many people have slowly learned this principle through trial and error while others continually struggle. Well, I’m about to take the guesswork out of it and provide a “sure-fire way” to sell with style no matter what your level of sales, title, role or position. We start by first seeking to understand how the world is divided. If we were to take the population and split it into two groups of people, some would be outgoing while others would be reserved. Think of it as an “Internal Motor” that causes us to be one way or the other. The same population is then split into two sub groups: those who are drawn toward tasks and those who are drawn toward people. This “Internal Compass” points us toward completing tasks or being with people. By recognizing these basic points in your customer, you can adapt your selling style to meet their needs. The four types of customers are: The Decisive Buyer, representing about 10 percent of the total population. They are outgoing, with their “Internal Compass” directing them toward tasks. They seek power and control. These success-oriented, results-driven individuals have money and will spend it with someone who doesn’t waste their time. The Impulsive Buyer, representing about 25–30 percent of the total population. They are also outgoing but their “Internal Compass” points them toward people. These interactive, expressive individuals seek popularity and want to have fun. They enjoy the entire shopping experience when it involves people, but they can be easily distracted from their original intent. The Steady Buyer, representing about 30–35 percent of the total population. They are quiet and shy individuals with an “Internal Compass” leading them toward people. They require stability and avoid change of any kind. Because of their slow pace, chances are they have procrastinated their buying decision, which stresses them out. The Cautious Buyer, representing about 20–25 percent of the total population. They are reserved, with their “Internal Compass” preferring tasks. These reserved individuals of few words are analytical by nature and are processing machines. They take in everything and sift it through a screening device called logic. After identifying your customer, your goal is to adapt your message to work for them. In essence, you speak their language. You know your product or service — now understand how you can DOUBLE your sales by delivering your message properly. Come see me at the NABWO Boot Camp at 10:45 a.m. to 11:30 a.m. on Saturday, May 14, 2016! I look forward to seeing you then. Attend Lorraine’s Lorraine Bossé-Smith is the founder of the F.I.T. Leader Formula and a certified professional behavior analyst (CPBA) who has appeared on numerous radio and TV programs across the country. She is a motivational speaker, corporate trainer, business consultant, executive coach, behavioral-wellness expert, and author of eight published books who helps companies rewire their business for success and inspires people toward a healthier, more balanced life. She can be reached at www.lorrainebosse-smith.com

workshop “Close the Sale at Hello!” at the 12th Annual Women Entrepreneurs’ Small Business Boot Camp on May 7.

NAWBO NEWS

Save the date for Women Entrepreneurs’ Boot Camp on May 7 NAWBO Phoenix is sponsor for day-long event

MAY

Women Entrepreneurs’ Boot Camp

by Laurie W. Anderson, Cactus Creative Where can a woman business owner get powerful, world-class insights and cutting-edge strategies? At the 12th Annual Women Entrepreneurs’ Small Business Boot Camp presented by the National Association of Women Business Owners (NAWBO), Phoenix Chapter. “The May 7, full-day conference includes two keynote presentations, nine workshops and resources from 50 sponsors and exhibitors, all providing practical tips and ammunition to ‘fire up’ your business,” says Jackie Wszalek, Boot Camp Chair and owner of Splash Printing and Marketing. “The May 7 event has a simple theme — speakers provide strategies and information that women entrepreneurs can take back to their businesses Monday morning,” Wszalek explains. Heidi Fogelsong, local personality and small-business owner, headlines the event at the Embassy Suites, Scottsdale, with humor and wisdom along with tips for “Building Your Empire — Where Content is Queen.” The session will show attendees how to be savvy promoters, marketing agents and media makers. The morning Blast Off will be followed by nine workshops with topics designed to help attendees understand the dynamics that support business growth and to focus their energy and attention on the things that lead to greater profitability. Workshop speakers and topics include: 1. “Brain Boosting Fun” by Amy Rosner, Amy Rosner Clinical Hypnotherapy. Learn to boost the creativity and problem-solving capacity of yourself and your team to increase innovation and productivity. 2. “Are You Out of Your Mind” by Susan F. Moody, U-Succeed. Discover the personality traits, characteristics and mindset of entrepreneurism along with your gaps and weaknesses to help you start the business of your dreams. 3. “Hell in High Heels” by Lynda Bishop, Summit Alliance LLC and Relationship Insurance. Uncover ways to close the gap in gender equality in this honest, edgy workshop about female rivalry.

4. “Educate, Automate and Dominate with Video” by Deborah M. Burris, Arizona Video Studio. Workshop will give you the knowledge to create an action plan to create a powerful connection with your prospects and customers through video. 5. “Close the Sale at Hello!” by Lorraine Bossé-Smith, Concept One, Inc. Double your sales with knowledge to bridge your selling style with that of your buying customers. 6. “Step into Legacy Leadership” by Tom Zender, CEO of Mentor. Master the art of leadership by asking questions, embracing authenticity and defining power. 7. “Get More Leads and Sales Online — Fast!” by Marcia Bench, Marcia Bench Enterprises. Learn a simple four-step process to get started or get better results from your online marketing. 8. “Get Noticed, Known and Called Upon” by Felicia R. Davis, FRD — Inspiring Women to Lead. Uncover the common mistakes that women make on their leadership journey. 9. “Help! I Need Somebody, Not Just Anybody!” by Cindy Gordon, Culture Shock Coaching, and Isabel Banerjee, GroYourBiz and The Encore Catalyst. Learn the difference between a mentor, advisor, peer group, mastermind, coach and consultant to choose which one is right for you. Joan Koerber-Walker of Core Purpose, Inc., will give the Luncheon keynote presentation about “Having it All — Five Secrets for Entrepreneurial Success.” The session will cover commonsense strategies for making smart choices to get what you want while running a business, leading in your community and building relationships.

Registration for the day-long event (8 a.m. to 5 p.m.) is only $99 until April 15 and includes continental breakfast, lunch and networking, brainstorming and a Meet the Speaker reception to end the day. To register, visit www.womensbusinessbootcamp.com/registration.html

NAWBO NEWS

Three Lessons for Lasting Leadership by Tom Zender

Too much. Tired of reading long lists about how to be a leader? A better leader? An effective leader? But, think about the few, core characteristics that create lasting leaders. Not the job jumpers, but leaders who stay and create sustainable success. Who are they? Simple searches will provide the lists of attributes associated with lasting leaders. You have read these lists — ad nauseam. The top ten articles in an Internet search produced more than two-dozen traits of successful leaders. But the three most frequent characteristics of lifetime leaders are Honesty, Communications and Positivity.

The best policy

Honesty: This leadership quality is at the top of the list for real reasons: • It breeds openness, trust, and human bonding. • Honesty is at the root of good ethics. • Telling the truth opens up two-way communications. • Others will be honest, too. • Customers will become more appreciative and loyal. • Vendors will be better partners. • Honesty means doing the right thing, no matter what. Yet honesty does not mean that the leader has to tell everyone everything — that can create a new set of problems. Just tell the truth in all open communications. Dishonesty breaks people, organizations and businesses. Don’t risk it. Ever.

Let’s get together

Communications: Leaders who cannot communicate, cannot lead. And the forms and forums of communications are many: • Effective communications is two-way. • The form can be in person, telephone, email, text and videoconference. • Good listening is a superior form of communications. • Body language, tone of voice and facial expression are communications.

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• Let everyone involved know what is happening — avoid doubt and distrust. • Share bad news before it happens, and good news as it happens. • Communicating well means soliciting and receiving inputs. And good leaders are sensitive to what is being communicated, to whom, why, where, when and how. These set the critical context for communicating. Obviously, honesty reigns in all communications. That is the truth. Always.

On the high road

Positivity: No leader can get away with being downbeat, depressed, anxious and withdrawn. Not for long. But an upbeat leader can work miracles: • Employees, customers, vendors and other stakeholders become positive. • Appropriately added humor helps build a more fluid and fun culture. • Positivity helps overcome periodic disappointments with resiliency. • Heavy workloads become less of an issue and more of a “can do” outlook. • Teamwork is greatly accelerated; politics are diminished. • Growth of the business is accelerated. • Best employees are retained and new employees are attracted. Positivity does not mean never being serious. Strong leaders must be appropriately serious while remaining positive overall. But they are not Pollyannas pretending that nothing is ever wrong. Never.

organized, initiative, responsible, accountable, courage, tenacity, patience, humility, presence, visionary, ethical, values, culture, visible, authentic, and many more.

Superhuman!

Point. The three must-have qualities are honesty, communications and positivity. Period.

A recent revelation

“As we look ahead, leaders will be those who empower others.” —Bill Gates

The bottom lines

Three traits. These are the ones that build lifetime leaders. Yes, there are many more characteristics of strong leaders. But three that are most often listed are honesty, communications and positivity. Master these three first. Then lead on.

Tom Zender is an experienced CEO mentor, Amazon bestselling business author, a guest writer for the Phoenix Business Journal and a professional speaker. He held leadership roles at General Electric and Honeywell, was the CEO of a global nonprofit and a senior VP in NYSEand NASDAQ-listed corporations. Tom has been a leader in startups, small and midsize companies. He mentors students at ASU’s SkySong startup business incubator and is on the advisory board of Paradise Valley Community College. He just published his third book, The Bottom Lines 2016: 52 Unforgettable Lessons in Leadership.

More …

The top ten lists of great leader characteristics also include: delegation, confident, commitment, creative, intuitive, inspiring, empathy, consistency, flexible, conviction, respectful, resourceful, rewarding, knowledgeable, open to change, receptive,

Attend Tom’s workshop “Step into Legacy Leadership” at the 12th Annual Women Entrepreneurs’ Small Business Boot Camp on May 7.

NAWBO NEWS

Why Video Should Be Part of Your Business Strategy by Deborah Burris

Despite the fact that most brands know they should be using video as a part of their business strategy, most aren’t. Here are some of the most important reasons why you should be using video, which will help give you the push you need to finally use this powerful technique for reaching your target customers.

Videos are More Compelling than Other Forms of Content

We are hardwired to pay attention to faces and movement — and the only way to incorporate both of those in your marketing is to use video. Feature real people in your videos to grab the attention of your audience. Consider featuring yourself or another representative of your company in a video that allows you to share your brand’s message in a way that makes whomever is in the starring role likable. This will allow your audience to feel like they know you or your company rep in a way that they simply can’t through the written word, or even via audio alone. People tend to buy from people they know and like, so conversions and profits tend to go up when you use this powerful tactic.

It’s the Perfect Way to Demonstrate Complicated Ideas

Show, don’t tell. If you have a complex product or service, the easiest way to explain to your audience exactly how it all works and how it can benefit them is via a well-thoughtout video demonstration. Additionally, video demonstrations are far more interesting than a dull list of features and benefits, and are easier to understand.

Videos are Perfect for Sharing Testimonials

Not only are videos the best way to share a customer testimonial, but your audience is more

likely to put their trust in it if they can actually see and hear the person who is giving you such a glowing recommendation. Most people won’t say they love your company on camera for the whole world to see unless it’s true, and your customers know it. Use the increased believability that videos bring by asking satisfied customers to share any positive feedback about your company on camera. If you have the budget for it, have a pro help you put it together. Alternatively, if you want to make it easy for as many people as possible to share a video testimonial, ask your satisfied customers to post their reviews on YouTube, and send you the link so you can share it!

Videos are Great for Storytelling

Everyone loves a good story, and smart marketers are using stories to share their marketing message and build brand awareness. We all know movies are popular because it’s far more interesting to watch a story take place on screen then to simply read it and try to imagine how everything unfolds. The same principle applies to advertising. Grab the attention of your audience by combining video with a compelling story built around your marketing message. This dynamite combination will make your message far more memorable and attention-getting compared to a bland list of features and benefits.

Use Video as Part of Your Business Strategy

Videos have many uses, including getting the word out about your latest products, educating your audience about how your company can serve them, and spreading glowing testimonials from satisfied customers. Start thinking about how you’ll use video as part of your business strategy going forward. You’ll be glad you did!

Attend Deborah’s workshop “Educate, Automate and Dominate with Video” at the 12th Annual Women Entrepreneurs’ Small Business Boot Camp on May 7.

NAWBO NEWS

NAWBO PHOENIX Presidential Corporate Partners SRP Western International University Executive Corporate Partners Allstate Insurance Border States Electric Cox Business GoDaddy Lewis Roca Rothgerber Christie Wells Fargo Business Corporate Partners Arizona Bank & Trust Arizona Fire & Water Restoration Benjamin Franklin Plumbing Friendly Auto Center IKEA Business Kolbe Corp Microsoft Store Orchard Medical Consulting Phoenix Country Club Schmeiser, Olsen & Watts LLP Southwest Gas UPS Strategic Media Partners Hollister Design Group Independent Talk 1100 KFNX MoneyRadio 1510 NetworkingPhoenix.com Phoenix Business Journal Splash Printing & Marketing Executive Media Partners Beaver Pond Enterprises, LLC CITY Sun Times InBusiness Magazine Infinite Reach Agency Community Alliance Partners Arizona Small Business Association Arizona Small Business Development Center Scottsdale Area Chamber of Commerce Visit Phoenix Women’s Enterprise Foundation

Be Bold and Courageous “Be bold and courageous. When you look back on your life, you’ll regret the things you didn’t do more than the ones you did.” —H. Jackson Brown Most of us have something we promised ourselves we would do in this lifetime that we haven’t done yet. We tell ourselves it is because we don’t have the money, we don’t have the time, and we don’t have the right support or resources to make “it” happen. If you are holding off on starting your own business waiting for that perfect time when your success is 100-percent guaranteed, then you may as well give up on that dream right now. Because, as Benjamin Franklin said, “In this world, nothing can be said to be certain, except death and taxes.” What you can do instead is minimize your risk of failure. Prepare yourself to the best of your ability, be sure you have a fall-back plan in place, and consider the worst-case scenario and decide if you can live with that outcome. If you can, then go for it!

If you can’t, re-explore your options. Perhaps instead of being a solopreneur, buying into a franchise on taking on a partner is a more comfortable choice for you. The thing I know for sure after having started more than 10 small businesses is that it takes more than capital and a business plan to create a successful company. To learn the character traits of a successful entrepreneur, join my breakout session “Are You Out of Your Mind?” at the Women Entrepreneurs Small Business Boot Camp on Saturday, May 7th. For more information go to www.womensbusinessbootcamp.com. There is a big difference between wanting to do something and being able to make a living doing it. Join your NAWBO sisters and come to this Boot Camp breakout session to find out if you really have what it takes to be a bold and courageous entrepreneur. Here’s to your success and happiness! Susan

Photo credit: andyi via Foter.com / CC BY-NC-ND

by Susan F. Moody

Attend Susan’s workshop “Are You Out of Your Mind” at the 12th Annual Women Entrepreneurs’ Small Business Boot Camp on May 7.

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3/4/16 2:27 PM

NAWBO NEWS

ATTEND • EXHIBIT • SPONSOR presents

Saturday May 7, 2016 7 a.m. - 5 p.m. Embassy Suites Scottsdale (formerly Chaparral Suites Resort)

5001 N. Scottsdale Road Scottsdale, AZ 85250 #1 conference for cutting-edge success strategies, valuable business connections & priceless friendships

EXHIBITOR SPACE Showcase your products and services to hundreds of buyers. SPONSORSHIP OPPORTUNITIES Expand your marketing reach to new prospective clients. • Networking with 100s of attendees • Nine business-building sessions • Continental breakfast, 3-course lunch & Meet the Speakers reception • Valuable resources from exhibitors • Charity raffle with great prizes

Enjoy two inspiring keynote speakers: Joan Koerber-Walker & Heidi Fogelsong

PRESENT

2016

Business Healthcare Services Guide Associations & Government Employee Benefits Consultants Dental Insurance Individual & Group Health Insurance Hospitals Urgent Care Workplace Bundled Health Programs Workplace Wellness Workplace Ergonomics

Join us for our event on April 27, 2016 â&#x20AC;˘ www.inbusinessmag.com

Do you really want to tell your employees the best pediatric care is not in their network? Your employees and their families deserve the best care. Phoenix Children’s is among a select group of pediatric care providers recognized for excellence in meeting the highest standards for patient safety, quality and value. Make sure your plan includes Phoenix Children’s Hospital and Phoenix Children’s Care Network, its network of physicians, so the best is available for your employees and their families.

For more information visit:

PhoenixChildrens.org

2016 BUSINESS HEALTHCARE SERVICES GUIDE

Vote for Healthcare in 2016 Healthcare may not generate the boldface headlines of immigration and the economy, but it should definitely be top of mind when you make your way to the polls this campaign season. The fact is, the next administration in Washington, D.C., figures to have a sizable impact on the quality and accessibility of care you receive here at home in Arizona. Consider the 2008 election. That contest ushered in the Obama administration and the most sweeping change in federal healthcare policy this country had seen in decades with the Affordable Care Act. The fate of that law may now hang in the balance, with GOP candidates promising to repeal it and one Democrat — Bernie Sanders — favoring a single-payer-style universal system. Meanwhile, other potential changes in health policy also loom with this election, including regulatory moves to get a handle on soaring drug prices and the possible overhaul of Medicaid and Medicare — federal programs that deliver healthcare for tens of millions of Americans. As a voter, you owe it to yourself to learn the issues and candidates’ positions before casting a ballot. Your healthcare may depend on it! Here at the Arizona Hospital and Healthcare Association (AzHHA), we’re doing our part to keep the healthcare dialog going. Our blog — AZHealthiestState.org — is a clearinghouse for the latest news related to healthcare and health policy. Drop by and join the conversation.

Greg Vigdor has served as the president and CEO of the Arizona Hospital and Healthcare Association since March 2013. He has brought extensive healthcare experience from a variety of leadership roles over a 35-year career in several states. Since arriving in Arizona, Vigdor has been a forceful

We’re also closely following the national healthcare policy debate and engaging with appropriate state and federal policymakers, as well as our national partner — the American Hospital Association — to ensure the interests of Arizona patients and healthcare providers are well represented.

leader for advancing Arizona’s

With that, I invite you to read the important information included with this Healthcare Services Guide. My thanks go to In Business Magazine for providing this important reader service to business owners and executives.

patient safety and end of life care

Sincerely,

healthcare system through policy leadership, improving care for patients through membership programs, and working with his members and others to advance AzHHA’s vision of making Arizona the Healthiest State in the Nation.

Greg Vigdor President and CEO Arizona Hospital and Healthcare Association

SPONSOR

aturday ay 7, 2016

PRESENT

a.m. - 5 p.m.

y Suites Scottsdale

Chaparral Suites Resort)

. Scottsdale Road sdale, AZ 85250

2016

Business Healthcare About this Guide Services With healthcare front and foremost on the mind of many business owners and executives, and recognizing that Guide healthcare and wellness programs involve the whole community working together, the editorial staff of In Business Associations & Government

Employee Benefits Consultants Dental Insurance

Hospitals Urgent Care

oy two inspiring note speakers: Koerber-Walker eidi Fogelsong

ssBootcamp.com

Magazine has compiled the 2016 Business Healthcare Services Guide. Presented on the following pages are listings of

Individual & Group Health Insurance

companies in the healthcare industry, organized by category.

Workplace Bundled Health Programs Workplace Wellness Workplace Ergonomics

Join us for our event on April 27, 2016 • www.inbusinessmag.com

INBUSINESSMAG.COM

APR. 2016

2016 BUSINESS HEALTHCARE SERVICES GUIDE

Associations & Government Many associations and government healthcare services give specific information on policies, open enrollment dates and services provided that may help employers understand the many options. Below is a list of local organizations.

Employee Benefits Consultants Using a consultant to work though options and the many plans can alleviate much of the confusion surrounding healthcare these days. We have included a list of brokers and firms that are reputable and have a tremendous amount of experience working with business to provide plans and ensure compliance. Arizona Benefit Consultants, LLC

Employee Benefits Exchange

6245 N. 24th Pkwy., Suite 201, Phoenix

1745 S. Alma School Rd., Suite 210, Mesa

(602) 956-5515

(480) 839-6100

abcllc.com

ebxaz.com

(480) 344-5777

Benefits By Design

FBC Services, Inc.

azda.org

8631 S. Priest Dr.,Â Tempe

14201 N. 87th St., Scottsdale

(480) 831-7700

(602) 277-8477

benefitsbydesignaz.com

fbcserv.com

(602) 252-4042

Blue Water Benefits Consulting

Focus Benefits Group

azfmc.com

14301 N. 87th St., Suite 306, Scottsdale

4120 N. 20th St., Suite B, Phoenix

(480) 313-0910

(602) 381-9900

employeebenefitcompliance.com

focusbenefits.com

(602) 265-5331

Breslau Insurance & Benefits

Health Insurance Express, Inc.

azhca.org

Paul Breslau

Superstition Marketplace

8362 E. Via de Risa, Scottsdale

1155 S. Power Rd., Bldg. 101, Mesa

Arizona Health Care Cost Containment

(602) 692-6832

(480) 654-1200

System (AHCCCS)

breslauinsurance.com

healthinsurance-express.com

(602) 417-4000

Connect Benefits

Horizon Benefits Group

azahcccsa.gov

1818 E. Southern Ave., Mesa

6245 N. 24th Pkwy., Suite 216, Phoenix

(480) 985-2555

(602) 957-3755

connect-benefits.com

horizonbenefits.com

Arizona Dental Association 3193 N. Drinkwater Blvd., Scottsdale

Arizona Foundation for Medical Care 326 E. Coronado Rd., Phoenix

Arizona Health Care Association 1440 E. Missouri Ave., Phoenix

801 E. Jefferson St., Phoenix

Arizona Hospital and Healthcare Association

Âť

2800 N. Central Ave., Suite 1450, Phoenix (602) 445-4300 azhha.org Arizona Medical Association 810 W. Bethany Home Rd., Phoenix (602) 246-8901 azmed.org Arizona Pharmacy Association 1845 E. Southern Ave., Tempe (480) 838-3385 azpharmacy.org Maricopa County Medical Society 326 E. Coronado Rd., Phoenix (602) 252-2015 mcmsonline.com

APR. 2016

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2016 BUSINESS HEALTHCARE SERVICES GUIDE

Dental Insurance Getting the right coverage means truly investigating the best plans and supplemental plans. Here is a list of area companies offering dental insurance that have a great reputation and plan options for individuals and groups. American Dental Plan

JDH Insurance Brokerage Services

1645 E. Bethany Home Rd., Phoenix

Heather Wunderle

(602) 265-6677

20403 N. Lake Pleasant Rd., Suite 117-234,

arizdental.com

Peoria (623) 594-0926

Benefits By Design

jhdinsurance.com

8631 S. Priest Dr., Tempe (480) 831-7700

Matsock & Associates

benefitsbydesignaz.com

2400 E. Arizona Biltmore Circle, Phoenix (602) 955-0200

Breslau Insurance & Benefits

matsock.com

Paul Breslau 8362 E. Via de Risa, Scottsdale

Powers-Leavitt Insurance

(602) 692-6832

14301 N. 87th St., Suite 308, Scottsdale

breslauinsurance.com

(480) 348-1100 powers-leavitt.com

Delta Dental of Arizona 5656 W. Talavi Blvd., Glendale

Southwest Dental Group

(602) 938-3131

6601 S. Rural Rd., Tempe

deltadentalaz.com

(480) 456-0821 southwestdentalgroup.com

Individual & Group Health Insurance Knowing what plan is right for your employees and understanding who is managing that plan can make all the difference for your company. We have included below a list of reputable and experienced insurance companies, many of which you will be familiar with, that can guide your organization to the perfect group or individual plans. Aetna 4645 E. Cotton Center Blvd., Phoenix (800) 225-3375 aetna.com Amenda Insurance Associates Ltd. 5046 E. Redfield Rd., Scottsdale (480) 284-6400 douglasamenda.com American Family Insurance Multiple agents Valley-wide (877) 777-4804 amfam.com Benefits By Design 8631 S. Priest Dr., Tempe (480) 831-7700 benefitsbydesignaz.com Blue Cross Blue Shield of Arizona 2444 W. Las Palmaritas Dr., Phoenix (602) 864-4899 azblue.com Bowman & Associates 16042 N. 32nd St., Bldg. A, Phoenix (602) 482-3300 bowmaninsurance.com Breslau Insurance & Benefits Paul Breslau 8362 E. Via de Risa, Scottsdale (602) 692-6832 breslauinsurance.com

APR. 2016

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Healthcare costs bleeding you dry? Say “NO” to overpaying. Many business owners, like you, are already keeping their companies and their people healthier and happier. And they’re learning how to comply with Obamacare for as little as $0.

Find Out How:

888-455-6224

RedirectHealth.com/ZeroCostObamacare

2016 BUSINESS HEALTHCARE SERVICES GUIDE Individual & Group Health Insurance (con’t) Cigna

Humana Health Insurance of Phoenix

Reseco Insurance Advisors

Multiple locations Valley-wide

20860 N. Tatum Blvd., Suite 400, Phoenix

Todd Newton

cigna.com

(480) 515-6400

7901 N. 16th St., Suite 100, Phoenix

humana.com

(602) 753-4250

Farmers Insurance Group

resecoadvisors.com

Kara Anspach

JDH Insurance Brokerage Services

15849 N. 71st St., Suite 255, Scottsdale

Heather Wunderle

State Farm Arizona

(480) 998-8070

20403 N. Lake Pleasant Rd., Suite 117-234,

Multiple agents Valley-wide

farmersagent.com/kanspach

Peoria

(877) 331-8261

(623) 594-0926

statefarm.com

4455 E. Camelback Rd., Suite 260D,

Powers-Leavitt Insurance Agency

UnitedHealthcare

Phoenix

Charlene Powers

1 E. Washington St., Suite 1700, Phoenix

(602) 952-1202

14301 N. 87th St., Suite 308, Scottsdale

(800) 985-2356

glassfinancialgroup.com

(480) 348-1100

uhc.com

Glass Financial Group

powers-leavitt.com HealthNet 1230 W. Washington St., Suite 401, Tempe (602) 286-9194

healthnet.com

“Healthy Employees Are Productive Employees” Reduce your Company’s overall Healthcare Cost… • Wellness & Preventative care On-Site • Dramatically reduce healthcare claims Our Nurse Practitioners & Staff

• Your company’s healthcare advocate

On-Site Healthcare at Work • 602-424-2101 • www.hcsonsite.com

APR. 2016

INBUSINESSMAG.COM

Community Care

Maricopa Integrated Health System

A strong public hospital is as much a mark of a healthy community as good universities, modern transportation systems and thriving arts organizations.Yet the Maricopa Medical Center is just the most visible part of the Maricopa Integrated Health System, which includes the Arizona Burn Center, the Arizona Children’s Center, two psychiatric hospitals, 12 neighborhood health clinics and the region’s only HIV/AIDS clinic. Our vital work in caring for patients, preventing disease and training the next generation of physicians reaches across generations and touches nearly every corner of Arizona.

(602) 344-5011 • mihs.org INBUSINESSMAG.COM

APR. 2016

2016 BUSINESS HEALTHCARE SERVICES GUIDE

Hospitals Many of the healthcare providers listed below are part of specific networks or have created their own network to lower costs for businesses and individuals with the intent to provide all needed services for the patient.

Dignity Health St. Joseph’s Hospital & Medical Center 350 W. Thomas Rd., Phoenix (602) 406-3000 stjosephs-phx.org

Abrazo Arizona Heart Hospital 1930 E. Thomas Rd., Phoenix (602) 532-1000 abrazohealth.com

Banner Gateway Medical Center 1900 N. Higley Rd., Gilbert (480) 543-2000 bannerhealth.com

Gilbert Hospital 5656 S. Power Rd., Gilbert (480) 984-2000 gilberter.com

Abrazo Arrowhead Campus 18701 N. 67th Ave., Glendale (623) 561-1000 arrowheadhospital.org

Banner Heart Hospital 6750 E. Baywood Ave., Mesa (480) 854-5000 bannerhealth.com

Honor Health Deer Valley Hospital 19829 N. 27th Ave., Phoenix (623) 879-6100 jcl.com

Abrazo Central Campus 2000 W. Bethany Home Rd., Phoenix (602) 249-0212 phoenixbaptisthospital.com

Banner Ironwood Medical Center 37000 N. Gantzel Rd., San Tan Valley (480) 394-4000 bannerhealth.com/ironwood

Honor Health John C. Lincoln Medical Center 250 E. Dunlap Avenue, Phoenix (602) 943-2381 jcl.com

Abrazo Maryvale Campus 5102 W. Campbell Ave., Phoenix (623) 848-5000 maryvalehospital.com

Banner MD Anderson Cancer Center 2946 E. Banner Gateway Dr., Gilbert (480) 256-6444 bannerhealth.com

Abrazo Scottsdale Campus 3929 E. Bell Rd., Phoenix (602) 923-5000 paradisevalleyhospital.com

Banner Thunderbird Medical Center 5555 W. Thunderbird Rd., Glendale (602) 865-5555 bannerhealth.com

Banner Baywood Medical Center 6644 E. Baywood Ave., Mesa (480) 321-2000 bannerhealth.com/baywood

Banner University Medical Center Campus Medical Center 1111 E. McDowell Rd., Phoenix (602) 839-2000 bannerhealth.com

Banner Boswell Medical Center 10401 W. Thunderbird Blvd., Sun City (623) 832-4000 bannerhealth.com/boswell Banner Del E. Webb Medical Center 14502 W. Meeker Blvd., Sun City West (623) 524-4000 bannerhealth.com Banner Desert Medical Center 1400 S. Dobson Rd., Mesa (480) 412-3000 bannerhealth.com/desert Banner Estrella Medical Center 9201 W. Thomas Rd., Phoenix (623) 327-4000 bannerhealth.com

APR. 2016

Honor Health Osborn Medical Center 7400 E. Osborn Rd., Scottsdale (480) 882-4000 shc.org Honor Health Shea Medical Center Shea Medical Center 9003 E. Shea Blvd., Scottsdale (480) 323-3000 shc.org Maricopa Medical Center 2601 E. Roosevelt St., Phoenix (602) 344-5011 mihs.org

Cancer Treatment Centers of America at Western Regional Medical Center 14200 Celebrate Life Way, Goodyear (623) 207-3000 cancercenter.com

Mayo Clinic Hospital 5777 E. Mayo Blvd., Phoenix (480) 515-6296 mayoclinic.org

Cardon Children’s Medical Center 1400 S. Dobson Rd., Mesa (480) 412-5437 bannerhealth.com

Mountain Vista Medical Center 1301 S. Crismon Rd., Mesa (480) 358-6100 mvmedicalcenter.com

Dignity Health Chandler Regional Medical Center 1955 W. Frye Rd., Chandler (480) 728-3000 chandlerregional.org

Phoenix Children’s Hospital 1919 E. Thomas Rd., Phoenix (602) 933-1000 phoenixchildrens.org

Dignity Health Mercy Gilbert Medical Center 3555 S. Val Vista Dr., Gilbert (480) 728-8000 mercygilbert.org

St. Luke’s Medical Center 1800 E. Van Buren St., Phoenix (602) 251-8100 stlukesmedcenter.com

INBUSINESSMAG.COM

Big options for small business

With our flexible plans, we can offer a solution for every business. At UnitedHealthcare, we offer health care plans that surround employees with innovative tools and resources to help make it easier to achieve a balanced lifestyle. And with our broad portfolio of plan options, our goal is to help every business get the right coverage at the right price. Contact your broker or UnitedHealthcare representative for more information.

ÂŠ2015 United HealthCare Services, Inc. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Health Plan coverage provided by or through UnitedHealthcare of California. Administrative services are provided by United HealthCare Services, Inc. and its affiliates. UHCAZ745454-000

INBUSINESSMAG.COM

APR. 2016

2016 BUSINESS HEALTHCARE SERVICES GUIDE Hospitals (conâ&#x20AC;&#x2122;t)

Workplace Bundled Health Programs In focusing on creating the perfect plan for your company, these local providers offer direct benefits that your organization may rely on to ensure a strong healthcare program and policies for yourÂ employees. Arrowhead Health Centers

Workplace Wellness There are many companies working to orchestrate alternative healthcare plans and consulting to customize healthcare benefits programs and policies for companies. These organizations below offer consulting, program development and direct care programs for businesses of all sizes. Absolute Health

Orchard Medical Consulting

8360 E. Raintree Dr., Suite 135, Scottsdale

Robin Orchard

(480) 991-9945

3033 N. Central Ave., Phoenix

absolutehealthaz.com

(602) 942-4700

Multiple locations

orchardmed.com

(623) 334-4000

Healthcare Solutions Centers

arrowheadhealth.com

4831 N. 11th St., Phoenix

Redirect Health

(602) 424-2101

16222 N. 59th Ave., Suite A-100, Glendale

hcsonsite.com

(623) 521-9406

Surgical Specialty Hospital 6501 N. 19th Ave., Phoenix

redirecthealth.com

(602) 795-6020

LifeCore Group

thesurgicalhospital.com

P.O. Box 10264, Glendale (602) 235-2800 myhealthdividends.com

APR. 2016

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Allazetta, Dave, 22

DeFilippi, Pablo, 12

Kunz, Clyde, 32

Stelnik, Jeff, 25

Berg, David, D.C., 27

DiMartino, Jacob, 18

LeRoy, Michael H., 15

Streeter, Dan, 66

Bersin, Josh, 30

Falkenberg, Chad, 10

Levin, Ken, 26

Sullivan, Brian, 29

Bishop, Lynda, 40

Friedman, Gerald, 15

Mattson, David, 29

Swann, James, 38

Blumberg, John G., 29

Garcia, James, 33

Migliori, Richard, M.D., 25

Touché, Charles A., 16

Bossé-Smith, Lorraine, 41

Gluck, Mike, 29

Moody, Susan F., 45

Turnbull, JoAnn, 32

Brown, Tim, 66

Goldstein, Russell, 32

Perrins, Nathan, 10

Vatistas, John N., 14

Burris, Deborah, 44

Hagen, Scott, 38

Purves, Steve, 9

Vigdor, Greg, 49

Carpenter, Roger, 38

Holmquist, Carson, 10

Richards, John, 27

Vigil, Artie, 14

Casey, Jill, 12

Johnson, Chad, 26

Sanders, Nancy, 39

Walsh, Brett, 30

Coburn, Lawrence, 18

Johnson, John H., 29

Simons, Ted,

Whitehurst, Deborah, 32

Cross, Stuart, 28

Karabarbounis, Loukas, 15

Soto, Luis, 12

Zender, Tom, 43

de la Melena, Gonzalo A., Jr., 33

Knoll, Bill, 14

Steadman, Kathy, 20

1100 KFNX, 45

Conquest Systems, Inc., 21

Maricopa Integrated

Affinity Technology, 64

Coppersmith Brockelman, 20

Alliance Bank of Arizona, 3

Craft 64, 38

Mayer Hoffman McCann P.C., 11

Allpoint, 14

Deloitte Touche Tohmatsu Ltd., 30

Mesa Chamber of Commerce, 34

Tempe Chamber of Commerce, 34, 35

APS, 5

Deloitte, 30

Morgan Cross Consulting, 28

Terrainial, 12

Arizona Diamondbacks, 17

Dierks Bentley’s Whiskey Row, 14

Morgan Stanley, 21

The Talent Network, 12

Arizona Hispanic

DoubleDutch, 18

Morning Squeeze, 38

ThinkSmallBiz, 62

Downtown Phoenix Inc., 63

National Association of Women

United Health Group, 25

Chamber of Commerce, 33, 34 Arizona Hospital and Healthcare Association, 49, 60 Arizona Relay Service, 6 Arizona YWCA of Metropolitan Phoenix, 35 Arrowhead Health Centers, 26 AV3 Design Studio, 14 Bank of America Private Wealth Management, 32 Bank of the West, 13 Banner Health Network, 67 Bersin by Deloitte, 30 BISTEG, 12

Health System, 9, 55

Business Owners – Phoenix, 39

Economic Club of Phoenix, 35

National Federation of Community

eWomen, 35

Development Credit Unions, 12

F.I.T. Leader Formula, 41

NewSpring Pharmacy, 62

Fennemore Craig, 6

Paper Source, 36

Ferrari, 36 FSW Funding, 61 getTalent, 12 Gilbert Chamber of Commerce, 34 Glendale Chamber of Commerce, 34 Global Chamber, 35 Greater Phoenix

Bitwage, 12

Chamber of Commerce, 34, 35

Blue Cross Blue Shield of Arizona, 25, 51 BlueCrew, 12 Insurance of Arizona, 59

Grey Box Collective, 12

Cathy Hotchkiss, 63 CBIZ, 11

Launch Real Estate, 14 Leadership Society of Arizona, 12 LetsChat, 12

Changemaker, 12 Children’s Museum of Phoenix, 37 Community Foundation for Southern Arizona, 32 Contour on Campbell Ave., 14

LGE Design Build, 14 Liquid Capital, 7 Local First Arizona, 35 Lovitt & Touché, 16

In each issue of In Business Magazine, we list both companies and indivuduals for quick reference. See the stories for links to more.

UnitedHealthcare, 22, 57 University of Chicago Booth School of Business, 15 University of Illinois at Urbana-Champaign, 15 University of Massachusetts at Amherst, 15

Papyrus, 36

Vantage West, 12

Phoenix Children’s Hospital, 48

Vermillion Photo, 61

Phoenix Children’s Care Network, 26

WalletHub, 15

Phoenix Metro Chamber of Commerce, 34

Women Entrepreneurs’ Small Business Boot Camp, 46

RAADR, 18

Women of Hope, 12

Redirect Health, 27, 53

Zerorez of Phoenix, 10

Reliable Background Screening, 63

Handi-Dogs Inc., 32 Infusionsoft, 62

Chamber of Commerce, 34

Relationship Insurance, 41

Healthcare Solutions Centers, LLC, 54

Brown & Brown

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Paperjoy, 36

Phoenix Philanthropy Group, The, 32

GPS Insight, 2

Stream Logistics, 10

Rosie’s House: A Music Academy, 31 Scottsdale Area Chamber of Commerce, 35 Scramble, 38 Snell & Wilmer, 68 Snooze, 38 SOHO Scottsdale, 14 Soilworks, 10 Sonora Quest Laboratories, 58

CHECK US OUT /inbusinessmagphx @inbusinessmag

SRP, 18, 19

Bold listings are advertisers supporting this issue of In Business Magazine.

65 20APR.1 6 INBUSINESSMAG.COM

A CANDID FORUM

Sales: Embrace Being No. 2

How to handle rejection when the prospect says ‘no’ by Tim Brown and Dan Streeter

Tim Brown and Dan Streeter are the co-authors of Old School with New Tools: The Extra 5% That Takes You to the Top of Your Sales Game and Keeps You There. After carrying a sales bag throughout the world, Brown has grown to become one of the most sought-after business leaders in the country. Streeter is an awardwinning educator and workshop designer with a pretty strong sales lineage of his own. Their podcast “Old School with New Tools” is located on iTunes and Stitcher. oldschoolwithnewtools.com

APR. 20 1 6

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In the 2008 Olympics, Michael Phelps won the Gold Medal in the Men’s 100-meter butterfly, beating out Milorad Čavić by a mere .01 second. Literally, in 1/30th of the time it takes to blink, Phelps’s dreams were realized and Čavić’s dreams were dashed. Over the course of a salesperson’s lifetime, it’s inevitable that you will face this same struggle. You will be told no, be rebuffed and even be harshly rejected due to the difference between you and your competitor over what may seem to be a minor or even trivial difference. The difference is that Čavić at least won the silver medal and has something to place on his mantel for future generations of Čavić family members to view, admire and be awed by. In your struggle to win sales, when you earn second place, you get nothing, nada, the big goose egg, and it’s possible that once that client is locked up with your competing vendor, he may never relinquish that relationship and that relationship may never come up for bid again. So how do you avoid this harsh reality and always finish first? The truth is, you can’t. It’s time to build what our colleague, Kendall Colman, calls your “rejection muscle,” because it’s going to happen. In fact, in the sales world, you will likely find that you will be told “no” way more often than not. Even a relatively high closing ratio of 20–30 percent means you are being told “no” 70–80 percent of the time. Now that you are comfortable with the fact that you are going to be told “no,” it’s time to consider some ways to handle this rejection. Understand that “no” is not negative; it’s only feedback. Life is neutral. The only one who is placing a label on this event is you. Labels are sticky. Once a rejection occurs, it’s easy to move the label from the event to then labeling ourselves by saying: “I suck … I am a terrible sales person … I am such a loser … Why would anyone buy from me?” Breathe and stop with the labels. Instead, interrupt that thinking with, “It’s just experience.”

“Reflection” is not just a three-syllable word. Most salespeople make the same mistakes over and over again because they never ask themselves or their customers what they could have done differently. Prospects, when asked, many times will be incredibly open with you about the reasons they chose a competitor. Embrace being No. 2. We once visited a coffee roaster who said, “Our company likes being No. 2. We know that our competitor’s best clients are just one mistake away from calling us.” Never burn a bridge; keep in contact with them (but avoid the “just checking-in” call), keep visiting with them at networking events and act as their resource broker (see below). Be a Resource Broker. Want the fastest way to become No. 1? Send your prospect “a trickle” of contacts they need to know either personally or professionally. Almost guaranteed no one else is doing this! Realize you are not the Godfather. In the movie The Godfather Part II, Michael Corleone famously mumbles, “Keep your friends close and your enemies closer.” Remember, the workplace is not the mafia. Make friends with your competitors. This may go against every dog-eat-dog, business-world, spidey-sense you have, but remember, your competitors are just like you. At times, they are overwhelmed; not every customer fits their business model; they need the help of outside expertise; and, who knows, they may even be in need of a subcontractor from time to time. And if they don’t know, like and trust you, they won’t call you. So here’s the point: Remember that when you say “yes” to one customer, you are saying “no” to 10 other possible customers. Yes, there are customers you consider whales or elephants, but ultimately, our global economy is built with literally more possibilities than you could pursue in 100 lifetimes. According to a Dun and Bradstreet article from 2013, there were 235 million companies across 200 countries of the world. Based on the five rejections you received today, you have only 234,999,995 more companies to go. The possibilities are limitless.

In a study examining sales hiring and recruitment challenges within the technology industry, recently released by ToutApp, the sales software platform, 70 percent of HR managers reported that finding experienced sales talent is “very competitive,” and, after engineers (69%), sales was the hardest role to fill (17%). toutapp.com

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