MAY 2016
Commercial Real Estate: Spotlight on the Valley’s Best
COMMERCIAL REAL ESTATE:
Is Multifamily 3-D Printing: Revolutionary
Force
To Litigate,
Moving
the Market?
or Not to Litigate?
Unknowing
Mistakes that Lose Customers $4.95 INBUSIN ESSMAG.COM
THIS ISSUE Alliance of Arizona Nonprofits Arizona Small Business Association
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MAY 2016 COVER STORY
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Commercial Real Estate: Is Multifamily Moving the Market?
Multifamily is the most visible segment of commercial real estate, but with input from economists, developers and other real estate professionals, In Business Magazine editor RaeAnne Marsh also explores financing options, innovations in design, how developments impact the surrounding business community and what the particular strengths are today in commercial real estate. FEATURE
26 PARTNER SECTIONS SUMMER 2016
UNITING, STRENGTHENING, AND ADVANCING ARIZONA’S NONPROFIT SECTOR. ARIZONANONPROFITS.ORG
Finding Common Ground For Greater Impact I know what you’re thinking: “Why is there a nonprofit section in a ‘business’ magazine?” But my hope is that it will become increasingly clear as you navigate through this inaugural section where our goal is to strengthen the critical connection between the for-profit and nonprofit sectors in Arizona. Let’s explore together how we can create strong, meaningful and strategic partnerships and cross-sector collaborations in order to exponentially increase our impact. The nonprofit sector is a vibrant economic engine whose contributions go far beyond the critical work it does to support our citizens, our communities and our environment in this beautiful state we call home. And, at the Alliance, our mission is to unite, strengthen and advance the more than 20,000 strong nonprofits in Arizona. In the newly released report, Arizona Nonprofits: Economic Power, Positive Impact, we outline just how powerful the nonprofit sector is in our local and state economy. The key findings of this report show that nonprofits generate $22.4 billion — more than 8 percent of the state’s Gross State Product — and are the fifth-largest non-government employer, responsible for 325,000 jobs. We also want to help debunk some of the myths circling nonprofits and their work in our communities and showcase the phenomenal bench of talent, expertise and passion residing in our nonprofit leaders and volunteers. “Nonprofit” is, at its very core, a tax status, but we intimately understand that we must be revenue positive in order to be sustainable. We must advocate for fairly paid staff, competitive benefits and professional policies and procedures — just as you would expect in your business. It’s time for nonprofits to stop talking about having a seat at the table and instead set the table of opportunity for collaboration across all sectors. At the core, we all face similar challenges of running an organization, employing a workforce, increasing revenue, being innovative and finding new solutions to challenges. Join us on this journey, and let’s partner and invest in making Arizona the best place to live, work and play.
The Alliance of Arizona Nonprofits is an action-oriented group of partners across Arizona — both nonprofits and those in the community who support them — dedicated to uniting, strengthening and advancing Arizona’s nonprofit sector. The Alliance envisions an Arizona where all nonprofits are valued, empowered and thriving.
CONTENTS p. 2
The Right Board Member for the Right Board
p. 3
On the Board and In The Spotlight
p. 4
Fact or Fiction: Nonprofit Myth-Busters
p. 5
It’s All Connected: The Nonprofit/For-Profit Connection
p. 6
Arizona Gave! Arizona Gives Day Results
Thank you,
Director of the Year Award Winners p. 7
What Businesses Should Know About Working With Nonprofits
Kristen Merrifield, CAE Chief Executive Officer Alliance of Arizona Nonprofits
p. 8
Economic Impact Study Arizona Nonprofits: Economic Power, Positive Impact
Photos courtesy of
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Alliance of Arizona Nonprofits
ASBA for the convenience and efficiency of our products and services, to engage and advocate for public policy that ignites small business growth, and to foster a positive economic direction for Arizona powered by entrepreneurism. By bringing thousands of small businesses together, ASBA has created greater value for all members and is proof positive that our mission of supporting small businesses through an active and connected community is working.
Once a frontier state specific to mining and agriculture, Arizona has since thrived over the decades, now home to more than 400,000 registered small businesses in industries such as technology, medicine, finance and real estate. With Phoenix ranked as 14th in start-up companies1 we are seeing more and more small-business owners relocate to Arizona to get their small businesses off the ground. As encouraging as this is, we know as small business owners that running a small business can be tiring, hard work and even discouraging at times. After all, 8 out of 10 small businesses fail within the first 18
Join ASBA. Be amAZed®
months2. What does it take to beat that statistic? What type of team should you be building to have a business that is not just successful, but booms?
In This Issue
2
3 4 5 7
When I look at my team here at the Arizona Small Business Association (ASBA), I find a
How to Improve Your SEO Score and Why You Need to Do It
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Guest Editor
close-knit group of hard-working and dedicated individuals. Creating the right team for your business is the most important thing you can do for your company. Without a cooperative
Made Easy
your environment is equally as important. A successful team is one that encourages and Choosing team members with skills needed, but also strengths and weaknesses that align with the culture you endeavor to create, is vital. It’s not uncommon for the typical “what do you do” question to come across as you go to events and make contacts. What I have learned over the years is to stop answering. More specifically, share your story or your purpose for why you do what you do. People connect
Why DIY Estate Planning Is a Bad Idea for the People You Love
11
better to emotions, making it so important that you are clear on aspects such as your values and mission statement. More importantly, as business owners, we have to ensure that our team also understands our purpose as an organization. A good team and leader understands how all of the tiny, day-to-day pieces fit into your larger picture. Whether or not you consider yourself to be in a fairly standard industry, creativity has the means to take you to a completely different level in your business. Innovative thinking
p. 602.306.4000
on a daily basis is one of ASBA’s goals as we try to continuously improve what we’re doing. Changing the way you market yourself, spicing up your current events, or even
Southern Arizona
just updating your documents and filing systems, can do wonders. Instill this in your team.
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Innovative thinking involves risk. It demands taking chances and the willingness to fail in
Tucson, AZ 85716
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p. 520.327.0222
what makes you successful.
© 2016 ASBA. A publication of the Arizona Small Business Association. For more information or to join ASBA, please contact us at www.asba.com. Section designed by the Arizona Small Business Association.
Briefs
1. Metropolitan Area Rankings for Startup Activity (2015) Ewing Marion Kauffman Foundation 2. Five Reasons 8 out of 10 Businesses Fail (2013) Forbes.com
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Arizona Small Business Association
“Dropbox,” “HotSchedules: Work Schedules with Ease,” “Scanner for Me,” “The Hard-of-Hearing Workforce” and “Closed Captioning for Business”
12 SPECIAL SECTION
By the Numbers
How important are strategy and high-level thinking skills compared to tactical?
PRESENTS
Commercial Real Estate SPOTLIGHT ON THE BEST
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MAY 2016
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Legal
Litigation isn’t necessarily a sign of failure, but business owners need learn to evaluate whether or not to go that route.
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Books
New releases give fresh insights on business thinking.
A greater understanding of brand and messaging can bolster a nonprofit’s fundraising efforts.
Feedback
motivates one another, celebrating successes, and getting back up from losses together. Employees in the Workplace Networking Should Be Worthwhile, Not Work
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and effective team, your business goes nowhere. Qualifications of each teammate are
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Healthcare
“Fighting Medical Identity Fraud,” “UA Cancer Center in Phoenix,” “Rolling Out a Retail Healthcare Concept” and “‘Cold’ Lasers a Fair Way to Treat Golf Pain”
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important, yes, but that is not all that should be considered when hiring. The culture of
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In Business Magazine’s editor takes the post of “Guest Editor” to introduce this “Commercial Real Estate” issue.
Noted business leaders Chris Chamberlain, Alvaro Sande and Patricia Watts respond to In Business Magazine’s burning business question of the month.
The Courage to Thrive by Rick Murray, Chief Executive Officer, ASBA
The Mission of the Arizona Small Business Association is to be THE statewide resource for small business. Business owners join
In businesses struggling to hold onto customers, the blame may lie in practices, processes and priorities. Joseph Michelli, Ph.D., examines these forces and suggests ways to combat them. DEPARTMENTS
Businesses can support the Alliance of Arizona Nonprofits and its member organizations in a variety of ways, including joining as a business member, becoming a sponsor, or making a tax-deductible financial contribution. For more information about how you can support the Alliance or about becoming an Alliance Member, contact Director of Membership Jennifer Blair at (602) 682-7593 or via email at JenniferB@ArizonaNonprofits.org.
About Us
Are Unknowing Mistakes Driving Away Customers?
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From the Top
Tim Riester leads his company from a belief that advertising and marketing is a dynamic, constantly evolving, high-pressure industry.
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2016 BMW Z4 Roadster PLUS: New gadgets add the flexibility of portability for the business company man or woman.
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Power Lunch
ZuZu at Hotel Valley Ho PLUS: Patio lunching is part of our life here — even at 100 degrees or higher.
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Roundtable
We are still on the road to honest recognition and remuneration for women in the workforce. ON THE AGENDA
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Commercial Real Estate
Spotlight on the best
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Technology
“3-D Printing Is Rocking Manufacturing,” “Professional Tech Certification” and “Automating Asset Verification”
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Spotlight
‘How to Win the War for Talent’ — Enterprise Bank & Trust Women in Business Conference — Tempe Chamber of Commerce
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Business events throughout the Valley
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The recently released annual list of top hotels for meetings and events in the U.S. by Cvent, Inc., a leading cloud-based enterprise event management company, puts Phoenix/Scottsdale among the major players — with eight hotels on the list, six of which rose in ranking from last year. cvent.com
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LAW THAT LEADS® COVERS MORE GROUND
May 2016 In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.
PARTNER ORGANIZATIONS Kristen Merrifield, CEO Alliance of Arizona Nonprofits (602) 279-2966 www.arizonanonprofits.org
REAL ESTATE ATTORNEYS AT FENNEMORE CRAIG are a part of one of the largest Real Estate practice groups in the Mountain West, which encompasses all aspects of real estate, from acquisition and finance, through development, leasing and sale. Our attorneys have significant experience in: • Commercial, Retail & Industrial Projects • Commercial Property Leasing • Health Care Real Estate • Production Home Builders • Joint Ventures & Syndications
• • • • • •
Rick Murray, CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com
Property Tax Real Estate Finance Real Estate & Lease Litigation Workouts & Restructurings Land Use Planning & Zoning Master-Planned Communities
Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org
For more information about Fennemore Craig, visit FennemoreCraig.com or contact Joe Chandler, Real Estate Practice Group Chair, at 602.916.5403 or jchandler@fclaw.com.
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
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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
Now, Deaf and hard of hearing participants can be actively involved in multi-party calls. Relay Conference Captioning (RCC) is free to Arizonans, streaming live text to any Internet-connected computer, tablet or mobile device worldwide.
Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com Phoenix Metro Chamber of Commerce phoenixmetrochamber.com
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INBUSINESSMAG.COM
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May 2016
VOL. 7, NO. 5
Publisher Rick McCartney
Editor RaeAnne Marsh
Art Director Benjamin Little
Contributing Writers Christine Borrego
John Hornick Mike Hunter Rebecca Kalogeris Carlynne McDonnell Joseph Michelli, Ph.D. Leon Silver Richard Tollefson ADVERTISING
Operations Louise Ferrari
Business Development Louise Ferrari
Steve Kulick Maria Mabek Sara May Kelly Richards Cami Shore Events Amy Corben More: Visit your one-stop resource for everything business at www.inbusinessmag.com. For a full monthly calendar of business-related events, please visit our website. Inform Us: Send press releases and your editorial ideas to editor@inbusinessmag.com.
Post Your Local Jobs at inbusinessmag.com Read by those vested in business here, In Business Magazine and inbusinessmag.com have become the resource for business owners and executives in the Valley and beyond. Now, business owners can post their open positions in a place where they are guaranteed to be seen by top candidates.
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President & CEO Rick McCartney
Editorial Director RaeAnne Marsh
Senior Art Director Benjamin Little
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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. 5. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/ or financial professional. Š 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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CRE Building Our Economy
RaeAnne Marsh has been editor of In Business Magazine since its inception in 2010. With a mission of informing the business community with relevant and timely information, she seeks out the latest in a variety of subjects and purposely avoids confining any monthly edition to a single theme. Marsh attributes the success of In Business Magazine to her and InMedia Company’s ability to connect with the Valley’s business community. Marsh has been writing and editing for Valley — as well as national — publications and organizations for 18 years. She started her editorial career with Arizona Corridors in 1998.
The commercial real estate truism of the boom days of single-family housing developments was “retail follows rooftops.” Today’s housing market is dominated by multifamily projects, and the hot trend now is to concentrate them near employment centers. So, although construction is no longer the key economic foundation of the heyday of Arizona’s famous “Five C’s,” commercial real estate is still a bellwether for our economy. The question of whether it’s a driver of our economy is explored in this issue’s cover story, which looks in-depth at our local real estate market. I spoke with developers, economists, architects and other real estate professionals who helped me explore financing options, innovations in design, how developments impact the surrounding business community and what the particular strengths are today in commercial real estate. I also had the pleasure of meeting with Sue Kay Kneifel, statewide coordinator for deaf and hard-of-hearing services with the Arizona Department of Economic Security, and Michele Michaels, hard-of-hearing specialist with the Arizona Commission for the Deaf and Hard-ofHearing. Committed advocates for that population, they shared an eye-opening view of this disability as a workforce issue. We present this in the Briefs section on page 11 as we recognize May as Better Hearing and Speech Month. In another compelling feature article, Joseph Michelli offers an eye-opening assessment of common business practices, processes and priorities that may be actually driving customers away. Leon Silver shares a legal perspective on how to know when to litigate that may surprise business owners. In the “candid forum” of this issue’s Roundtable feature, Carlynne McDonnell offers her perspective on the hot-button workforce topic of equality for women. And John Hornick discusses changes businesses will likely be dealing with as 3-D printing continues to expand its applications. Presenting the annual Commercial Real Estate special section as well, we offer you our In Business Magazine’s guide to the best in commercial real estate services. The guide will be available on www.inbusinessmag.com for a full year. We strive, as always, to bring you relevant and timely articles directed to strengthening our business community. I trust you’ll find much that’s interesting and useful to you in your business in the varied topics that fill these following pages. I am pleased to take the post of “Guest Editor” this month, as many have asked, “Why haven’t you joined the ranks of this group?” I am excited to present this (and every) issue of In Business Magazine to our dedicated subscribers. Sincerely,
RaeAnne Marsh Editor, In Business Magazine
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Location, Location, Location The old saying rings true. But it’s usually the residential market we refer to. In this issue, we are looking at commercial real estate. The past decade has proven to rattle the industry every which way. Today, we find ourselves in a much more stable market being led by the multifamily side of things. As this issue’s cover story reports, that sector is becoming a hotbed of deals, development and attraction in conjunction with the renters and the millennial markets.
Let us know what you think of this issue of In Business Magazine. Email our publisher at feedback@inbusinessmag.com.
I asked RaeAnne Marsh, our editor, to be the “guest” editor for this issue. We usually invite a business or community leader who works in the realm of whatever topic our cover story explores, to provide additional perspective. But I want to recognize that she does that in every issue, making sure we reach out to respected sources and that the coverage is balanced. And I want to thank her for the incredible detail and for the depth of this issue’s cover story. I also want to thank her for her more than five years of editorial excellence with In Business Magazine. I look forward to many more years together. —Rick McCartney, Publisher
Story Ideas/PR: editor@ inbusinessmag.com 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
do you feel are the main drivers for projects like yours? How is your project Q: What indicative of trends in the current commercial real estate market?
FEEDBACK QUESTION: Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessmag.com
For all past Feedbacks go online to inbusinessmag.com and see what Valley executives think on various business topics.
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CHRIS CHAMBERLAIN
ALVARO SANDE
PATRICIA WATTS
Real Estate Developer North American Development Group Sector: Real Estate
Chief Operating Officer Sencorp, North American Region Sector: Real Estate
Senior Partner and Director of Planning Deco Communities Sector: Real Estate
With the growing demand in the Valley for truly great live/work spaces in our urban areas, North American Development Group identified Downtown Scottsdale’s urban arts district as a prime location for developing a new multi-family concept. After years of market research and evaluation, NADG conceived Eldorado on 1st for the discerning buyer seeking the vibrancy of city life with the sanctuary of quiet, peaceful privacy at home. Combining quality materials and innovative design, Eldorado on 1st is a collection of seven ultra-luxurious private urban residences in the heart of Scottsdale. Led by Will Bruder Architects, the Eldorado on 1st design team placed a high value on elements such as steel and concrete construction, oversized attached garages, custom Bulthaup kitchens, private elevators and private landscaped roof decks. Each home sits perched above street level office studio space, the private residential lobby, and the community pool and spa, and looks out over treetops and rooftops toward the downtown skyline and Camelback and the McDowell Mountains.
We believe prospective Downtown Phoenix residents are driven by an all-encompassing experience built on connectivity, community and efficiency. We refer to this as thoughtful living — the guiding principles for our new condominium project. As proponents of urban living, our team was inspired to contribute to the growth and prosperity of our city. En Hance Park is a modern, 49-unit condominium development featuring efficient, well-organized floor plans with designer fixtures and finishes starting at $150,000. Situated directly across the street from the expansive Margaret T. Hance Park and adjacent to the vibrant Roosevelt Row arts scene, it is both a city sanctuary and a hub connecting residents to renowned cuisine, art, entertainment, sporting events and more. We recognize the growing trend for living in the center of our city’s burgeoning arts and entertainment district, and we’re are acutely aware of the responsibility, consideration and commitment involved in purchasing a new home. Our goal is to satisfy this need with attainable, quality housing in a premier downtown location that offers an excellent value proposition.
For years there was pent-up demand for high-quality residential in highly desirable infill locations, and it’s incredible to see how these key neighborhoods have already transformed with the addition of our residential projects and others. In Scottsdale, our ENVY Residences building is located in the heart of Downtown Scottsdale, where there is a unique resort-livingmeets-urban lifestyle emerging. Our real estate market is in the midst of the “fifth migration” of homebuyers desiring properties with a more urban lifestyle that is close to all the destinations and amenities that make city living so appealing. With new construction in infill areas, other new businesses are emerging to serve the new residents that will be moving to the area, including restaurants, retail, entertainment and nightlife. We are seeing the exact same phenomenon with our Central Phoenix projects, most notably Edison Midtown. Central Phoenix has been evolving over the last several years and has truly become a destination in the Valley — not just for baseball games and special events, the scene is exciting and exhilarating for those who want to feel connected to the pulse of a city.
Sencorp sencorp.com
Deco Communities decocommunities.com
en Hance Park Condominiums enhancepark.com
Patricia Watts co-founded Deco Communities and Starpointe Communities, and has been extensively involved in real estate and operating businesses since 1986. Prior to founding Starpointe, Watts was the vice president of real estate investment for Anthem Properties, Ltd., a Vancouver, B.C.based real estate investment, development and management company.
North American Development Group nadg.com Eldorado on 1st eastvalleyurban.com/ scottsdale/eldorado-on-1st Chamberlain joined NADG in 1999, and since that time has been directly responsible for more than $300 million of real estate construction, acquisition and financing. NADG is actively involved in the identification, acquisition, development and management of major real estate projects across the U.S. and Canada.
Alvaro Sande is the chief operating officer of the North American region of Sencorp and is responsible for all North American operations. He holds an MBA from Babson College, with expertise in financing and marketing. Before moving to Phoenix in 2008, Sande, a native of Chile, lived in Boston, Miami and New York.
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QUICK AND TO THE POINT
The Hard-of-Hearing Workforce Accommodating hard-of-hearing or deaf employees need not be the intimidating effort many employers anticipate, points out Sue Kay Kneifel, statewide coordinator of the Arizona Department of Security’s Deaf and Hard-ofHearing Services, which has made educating employers on this workforce issue its focus this year. In Arizona, 1.145 million people age 20 and older are affected with a hearing loss of at least 25 decibels (ear plugs, by comparison, dampen sound by about 20 decibels). Accommodating their needs may be as simple as using text messaging through Relay Conference Captioning, a free phone relay service offered by the State of Arizona; having adjustable blinds to block glare so an employee can read lips; or, if the work space is a cubicle, either reconfiguring it so the desk faces the entry or adding a mirror — “which you can pick up at the Dollar Store,” Kneifel says — angled to the entry. There are also special telephones that can amplify sound and can connect via Bluetooth to the user’s hearing aid. Emphasizing the importance of attitude, Kneifel says, “Friendly goes a long way” — as does willingness of supervisors and co-workers to learn some basic friendly communication. Even if the impetus for the hiring is changes in the law, “once they have the employee there, an attitude change follows,” Kneifel relates. What is the law now? Seven percent of a company’s workforce — at every employment level — must be a person with a disability. And the Office of Federal Contract Compliance is starting to closely monitor businesses that contract with the federal government, says Kneifel. Whether or not a business needs to hire an interpreter depends on the need of the individual. Kneifel recommends first talking to the employee. “The employee wants to fit in,
BYTES
BY MIKE HUNTER
Top apps are a best practice when on the run and using mobile devices and tablets. Here are some that we have found to be most useful.
Dropbox Nothing new here, but anyone not using it is likely not truly working mobile. It is the place for photos, documents, videos and other files. The files are safely backed up and available everywhere and on all devices. Open PDFs and nearly all other formats of files easily. Manage the location and folders as well. Free
to not be out of the norm.” However, she points out, with a business situation in which the employer will hold the employee accountable for the job, it may be wise to provide one. This also covers the employer should there be any question as to whether that employee was told what he needed to know. Boeing, for one, has an interpreter on staff full time. This was a project of now-former Boeing executive Bill Kipper, relates Michele Michaels, hard of hearing specialist with the Arizona Commission for the Deaf and the Hard of Hearing. “He saw how being deaf isolated employees, so he created this pilot project … to make sure employees feel integrated and valued, for both meetings and quick one-on-ones with a boss or conversation with a co-worker. And he found it works out more cost-effective than just bringing one in for a specific meeting.” The loyalty of an employee with a disability is greater, so turnover is less, Kneifel says, noting that produces a cost reduction that benefits the employer, as does the niche market created through the loyalty of that employee’s friends and family. —RaeAnne Marsh Arizona Commission for the Deaf and Hard of Hearing acdhh.org Arizona Department of Economic Security des.az.gov
dropbox.com
HotSchedules: Work Schedules with Ease Communicate about work schedules and employee time through this dynamic app. Users can check schedules and send email alerts to notify staff about changes and other important information. It is available for the Apple Watch as well, with easy-to-see displays and messaging to communicate fully. Team members can swap, pick-up or release shifts. $2.99 hotschedules.com
Scanner for Me With this app, users can scan, print and manage documents with iOS devices. Using only an iPhone or iPad, instantly scan and print any written, printed or graphic material. Works great for receipts, notes, fliers and more. Documents can be managed and sent through email, text and more. $4.99 apalon.com
VISUALIZE
Closed Captioning for Business Hearing loss is the biggest disability group, and last
confidentiality. This may be used by a person physically
fall Arizona implemented a free service employers
in attendance at a meeting or telecommuting. RCC
can use throughout the state: Relay Conference
uses the same high-quality captioners that provide
Captioning. Offered weekdays from 8 a.m. to 6 p.m.
closed captioning for live television, news, sports and
(and arrangements can be made for use at other times),
weather to deliver live, real-time text streamed to an
this provides a caption of the conversation displayed
Internet-connected computer, mobile device or tablet.
wirelessly to the person’s PC. Transcripts may also be
arizonarcc.com/Arizona/
provided — or not, if the employer is concerned about
The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. It can cover 50 percent of such costs as a wheelchair ramp or sign-language products, with the maximum tax credit ranging from $1,200 to $9,600, depending on the employee hired. doleta.gov/business/incentives/opptax/
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METRICS & MEASUREMENTS
Aligning Skills and Expectations What skill will team managers and marketers need to futureproof their careers? by Rebecca Kalogeris
Professionals across all industries are expected to do more with less. As such, strategy and high-level thinking often
Time and Money
take a back seat to the tactical. It’s easy for days to turn into reactionary spirals rather
Key findings of the 2015-2016 ‘Product
than proactive, purposeful ones. A recent
Management and Marketing Survey’
Pragmatic Marketing survey of product managers and marketers shed light on this very trend that is seen across all industries, and revealed the skills sets required to rise above the busy worker bee mentality. What skill sets separate the highwage-earning product managers from the average? Turns out there are a few superhero traits that help product managers ignite their career and drive them toward advancement — and these can be applied to nearly any industry. According to Pragmatic Marketing’s 16th annual “Product Management and Marketing Survey” results, there are seven key characteristics that separate the superhero product managers from the rest. The survey, which polled more than 2,500 product managers and marketers from around the globe, revealed the Rebecca Kalogeris is vice president of marketing at Pragmatic Marketing, Inc., which was founded in 1993 and has become the authority on technology product management and marketing. The company has trained more than 100,000 product management and marketing professionals, with more than 25,000 becoming Pragmatic Marketing Certified. Pragmatic Marketing’s team of thought leaders produce blogs, webinars, podcasts and publications that product professionals around the world turn to for industry insights. pragmaticmarketing.com
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following skills were in top demand among product managers: • Truth to power — being able to raise uncomfortable issues to leadership; • Synthesis — beyond gathering data, the ability to synthesize it down to a call to action; • Pitch artist — the ability to stand up to peers, managers and executives, and sell them on ideas and conclusions; • Executive debater — being a strong advocate for what is right in the market and challenging executive teams when necessary; • Consensus builder — aligning the organization to solve a problem together; • Empathetic — the ability to understand what others are going through, both inside and outside the company; and
• Inspire others — the ability to inspire others to action. Of these seven characteristics, there were three in particular that were most rewarded by companies. They are pitch artist, executive debater and inspired others. Expert-level skill in these three areas correlated to 25 percent higher wages, on average. Incidentally, the skills most rewarded by companies didn’t necessarily match up with what product managers thought were most essential to their career growth. The skills product managers ranked as most important
• Of the types of companies represented (78 percent of which operate in the B2B space), 80 percent offer software solutions, and 54 percent offer a hosted or cloud product. This underscores the trend in companies moving toward SaaS, applications and cloud products. • While it’s improving, product teams reported 72 percent of their time is spent on tactical vs. 28 percent strategic activities. • The survey showed that the average
were the ability to inspire others, synthesis
product team member earns
and being a consensus builder. Pitch artist
$100,000–$120,000 per year with
and executive debater fell lower on the
an annual bonus of $9,850.
totem pole. On a broader level, having technical expertise is also highly valued among product teams today. On average, 92
• Switzerland product managers and marketers have the highest average salary, at $115,600.
percent reported having a high degree of
• Product managers and marketers
technical acumen in their role, an increase
in the Pacific region bring home
from previous years. When asked about the
higher average salaries ($121,800)
evolution of the role, product managers
than those in any other region. The
and marketers talked about the increasing
East Coast trails at an average of
role of big data in decision making, product
$112,800. The average salary in
cycle times accelerating, and a more
Arizona is $88,000.
customer-centric focus. Despite the shift in skill type necessary for today’s technology-focused product teams, there was much that remained the same. Product managers still spend a majority of their time stuck in the tactical aspects of the job rather than the strategic, men still earn more than their female counterparts, and product managers on the Pacific West tend to earn higher wages than the rest of the U.S.
• Females earn, on average, $10,000 less than their male counterparts. • While 26 and 24 percent reported having 3–5 years’ and 6–10 years’ experience, respectively, the number of years in their current role came in at 32 and 31 percent for 1–2 and 3–5 years, respectively. Source: Pragmatic Marketing
PR Value is an algorithm created by Netherlands-based Coosto that shows the monetary value of mentions in articles on news sites, blogs and forums and in social media messages, thereby helping companies soundly assess what the return on investment is for marketing and PR activities. coosto.com
MINDING THEIR BUSINESS
Tim Riester: Leading the Marketing Rhythm Strong client-agency relationships empower successful campaigns by Christina Borrego
For more than 27 years, Tim Riester and his advertising agency, RIESTER, have been successfully creating and revitalizing brands, launching products, changing consumer behaviors and motivating people to care about issues that matter. If you ask Tim Riester why his company is so successful, he points to the strategic nature of his clients and the talents and work ethic of his staff. “We wouldn’t be where we are today without the wisdom of our clients and commitment of our amazing employees,” shares Riester. Years ago, Riester was a drummer in a band. He believes that setting the rhythm for the other band members and showcasing their talents is a lot like running RIESTER. “We set the pace here for innovation and superior performance. That’s the recipe to create the most successful campaigns.” Riester believes advertising and marketing is a dynamic, constantly evolving, high-pressure industry. Limitless technologies, social networking platforms and innovative devices will forever influence and alter how people consume information and communicate on a daily basis. All of this makes for an industry landscape that is complex but more exciting than ever before. “Agencies have to work harder and smarter,” shares Riester. “Our clients are under a lot of pressure to deliver outcomes and, as a result, need us to help them influence consumer behaviors and preferences.” He likens marketing to being an entrepreneur — believing so deeply in an idea to be willing to work all day, all night, all weekend; and then convincing everyone else involved to do the same. “We appreciate that type of grit in our clients and have built a business on staying in stride with them.” Staying in stride with clients also means making it a point to know their business almost as well as they do. “Knowledge is power, so you have to do the homework,” Riester says, noting it is critical in his business because they represent clients from a cross-section of industries, from utilities to banks, healthcare to consumer products, tourism to gaming and entertainment. “It means being naturally curious and capable of grasping the workings of a variety of categories,” he adds.
Riester also values clients who view the firm as a partner, not just a vendor. “When clients enlist RIESTER to help them advocate and educate their boards of directors or other departments and divisions in their company, we embrace this role of brand steward. We want nothing more than to help our daily client contacts by supporting their initiatives, and contributing to a vision for the brand’s future.” This commitment to supporting RIESTER’s clients has led to extended client-agency relationships. In fact, many clients who began working with RIESTER as brand managers a decade or two ago are still working with RIESTER today as presidents and CEOs of the companies RIESTER supports. Anticipating problems before they arise has also helped RIESTER stay ahead of the pack. “Most client-agency relationships go south because of punctuality, processes and staffing changes,” says Riester. “It is known that these common areas cause client-agency partnership tension.” By planning ahead, he says, “relationship deterioration is avoidable.” Riester’s love for Arizona is as solid as his commitment to his clients. Although RIESTER acquired businesses and expanded its operations across the west, Riester recently made a major real estate investment in his home base of Phoenix to house his expanding headquarters. “Our recent move to 3344 on Camelback is part of ongoing strategy to re-invest in ourselves as a firm. Clients from all over the country visit Phoenix to work with RIESTER, and we continuously relocate talented advertising professionals to work here. Our new headquarters provides them with Arizona’s most majestic views and modern work environment.” Riester’s approach to business has led his company to being named the fastest-growing, privately held advertising and public relations agency in the country by Inc. Magazine four consecutive years. Advertising Age listed RIESTER among its “20 Ad Agencies to Watch in America,” and RIESTER was listed among Forbes’ “Top 100 Global Agencies that Know Social Media and Google.” Just recently, RIESTER was named one of only a few “Google Elite Partners” in the United States.
“Creating ad campaigns was child’s play for me as a kid. My mother was an instructor at the Columbus College of Art & Design and an art director at a large ad agency during a time when women in such roles were few and far between. Her work continued long after she got home. To keep me entertained, she would tell me to write and present commercials for some of the consumer products we had lying around the house. Her feedback was always honest. I’d bask in the glow of good work, and her constructive feedback would just make my 11-year-old self work even harder!”
RIESTER riester.com
RIESTER recently received unprecedented recognition from the American Advertising Federation’s Phoenix Chapter, including “Copywriting of the Year,” “Art Direction of the Year” and “Best of Show” out of more than 600 entries at the 2016 Addy Awards. In addition, the firm’s chief strategic officer, Mirja Riester, was awarded “2016 Ad Person of the Year.”
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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.
INNOVATIONS FOR BUSINESS
TECH NOTES
Professional Tech Certification
3-D Printing Is Rocking Manufacturing
Tempe-based University of Advancing Technology now offers the option to earn a professional certificate in technologycentric disciplines. These certificate options — derived
Most products are made of many parts. They result from many manufacturing steps performed by different machines, each with its own operator. 3-D printing replaces these steps with fundamentally different machines that make finished products, with all their parts, fully assembled.
less than buying a new part. This is great news for the part owner and terrifying for the blade manufacturer. By using 3-D printing to repair the blades, the customer no longer needs to buy new ones and has blurred the line between customer and manufacturer.
REVOLUTIONIZING PRODUCT DESIGN
IBM wrote in a 2013 3-D printing study that “for leading global companies to prosper in this new environment, radical change is essential.” Some companies will take full advantage of the implications of 3-D printing. Other companies will not be so lucky, and many are sleeping at the wheel. In the manufacturing climate of 3-D printing, they must adapt or die. For example, the turbine blade manufacturer will be forced to adapt if most of its customers use 3-D printing to repair their blades rather than buy new ones. It may find that licensing the digital blueprints for the blades beats making and selling them.
Products have always been slaves to how they can be made. If a design cannot be made with traditional machines, it remains trapped on paper or in a computer. Thus, product designers have been forced to design for manufacture. 3-D printing changes that. In a 3-D-printed world, designers no longer need to design for the limitations of existing machines because 3-D printers can build almost any design, regardless of complexity. With virtually no limitations on manufacturing, 3-D printers turn the creative process on its head. Product designs no longer need to be broken into multiple parts, according to manufacturing constraints. Designers can immerse themselves in the creative process because they can 3-D print prototypes immediately. The mediocrity and monotony of mass-produced designs can be replaced with mass-customized designs. Because almost any product can be 3-D printed, the design can follow the designer’s vision and is limited only by the imagination.
CUSTOMERS BECOME MANUFACTURERS
3-D printers can be used by not just traditional manufacturers but also by their customers. This is happening today. RMIT University in Australia used 3-D printing to repair hundreds of turbine blades used by a power generation company. Without this process, the blade manufacturer would have sold hundreds of new replacement blades, but it looks like it will be selling far fewer new blades as time, and blades, wear on. The refurbished parts are as good as or better than the originals, and the process costs far
BY MIKE HUNTER
COMPANIES MUST ADAPT OR DIE
WHAT DOES ‘GENUINE’ MEAN?
In a 3-D-printed world, companies may find their products competing not only with their traditional competitors’ products but also with 3-D-printed copies of their own products, with customized versions of their own products, and with generic substitutes for their products. Such products may be made by professional counterfeiters, 3-D print shops, industrial customers or consumers. Manufacturers will be forced to police the marketplace for copies of their products, to find ways to identify genuine products, and to try to stop poor-quality and dangerous copies. Determining what products are genuine will be much more complicated in a 3-D-printed world, and the word “genuine” could eventually become meaningless. —John Hornick, a partner with Washington, D.C.-based Finnegan IP law firm and founder of its 3D Printing Working Group.
from the reality that local business is starved of technology talent and as such find themselves having a difficult time scaling for growth — afford business owners and executives the ability to grow their company while offering employees seeking career advancement opportunities an affordable option to add professional development to their resume. UAT has partnered with Arizona Bank and Trust, who has agreed to assist startup companies by providing funding and financing for a grant to enroll tech employees in the certificate program. For large companies, employers have the ability to request a customized curriculum in an effort to address specific, more tailored needs. uat.edu
Automating Asset Verification Early Warning, Scottsdalebased leader in payments, fraud prevention and risk management, recently introduced its Asset Search and Verification Service for Home Loans. Digitizing the verification of bank account details in seconds replaces an otherwise manual process that took sometimes weeks to complete and was highly susceptible to fraud. Rather than depending on the borrower to accurately disclose and provide sufficient evidence of financials, Early Warning’s Asset Search and Verification Service leverages bank-contributed checking, savings, money market, CD, IRA account balance and transaction data to provide a cross-bank view of an individual’s liquid assets. earlywarning.com
Finnegan, Henderson, Farabow, Garrett & Dunner, LLP finnegan.com
3D Printing Will Rock the World by John Hornick covers a wide range of topics, including the impact of 3D printing on business and personal life, and is a suggested textbook for “The 3D Printing Revolution” Coursera course offered by the University of Illinois Champagne-Urbana. bit.ly/3d-printing-will-rock
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YOUR BENEFIT IN BUSINESS
WELL WELL WELL
BY MIKE HUNTER
Fighting Medical Identity Fraud “If there is one thing we guard more than our financial information, it is our healthcare privacy,” says John Dancu, CEO of IDology, a leader in multi-layered identity verification and fraud prevention solutions for the customer-not-present environment. “There is a significant increase in value of protected health information (PHI) because of its use by highly sophisticated fraudsters.” The company recently joined the Medical Identity Fraud Alliance to help build a multi-faceted strategy of awareness, prevention, detection and remediation in the healthcare fraud ecosystem. “By being a member of MIFA, we are able to collaborate with other healthcare industry leaders in efforts to prevent healthcare fraud and financial loss for both our customers in the healthcare industry and their patients and employees,” Dancu says. MIFA manages the impact of medical identity theft through stakeholder-coordinated research, increasing education and awareness, developing focused tools and procedures, promoting best-in-class strategies, technologies and practices, and influencing government regulations, policies and laws. IDology idology.com Medical Identity Fraud Alliance medidfraud.org
Rolling Out a Retail Healthcare Concept SingleCare, an online retail marketplace for healthcare services, officially launched last month in the Arizona market following a beta rollout in April 2015. Using SingleCare’s website, patients can search for healthcare providers by specialty or location, comparing prices, booking appointments and tracking their healthcare spending. SingleCare pre-negotiates prices that are up to 50 percent less than the provider’s standard list price, and, because SingleCare isn’t insurance, there are no premiums or subscription fees — members pay only for services received at the appointment. Plus, since users set up their payment information through a simple sign-up process, payments are made directly to providers without any confusing billing or paperwork. The official launch also marks SingleCare’s rollout of its nationwide pharmacy and telehealth services, which allow members to receive dramatically discounted, pre-negotiated rates on prescription drugs and anytime access to a variety of medical professionals. Since entering the market, SingleCare has created a simplified, transparent, retail environment that currently serves more than 9,000 Arizona residents who might otherwise miss out on basic care because of affordability issues or gaps in healthcare coverage. One
attraction of the Arizona market, shares EVP of Business Development Darcey Schoenebeck, is, “getting into Arizona to do business did not pose any regulatory hurdles for us.” Licensing requirements vary from state to state, she explains, and the fact that Arizona did not require any licensing made it easy to come here. “We wanted to get into the market with our product, go through proof of concept and have the bugs worked out before investing the time and money into the licensing process across the country, which we are doing now.” Another factor was the chance to gain experience in what SingleCare viewed as Arizona’s interesting and important dynamics: a comparatively high uninsured rate and a diverse population with a high percentage of part-time and seasonal workforce due to the prevalence of the restaurant, hospitality and gaming companies in the state. Describing SingleCare as a great option for people who are not eligible for health benefits through their employer due to their part-time status, Schoenebeck says, “We’ve been really pleased with our membership growth in Arizona, more of which is now coming through employers as the broker market sees the value in what we are doing.” —RaeAnne Marsh SingleCare singlecare.com
‘Cold’ Lasers a Fair Way to Treat Golf Pain UA Cancer Center in Phoenix Downtown Phoenix’s Biomedical Campus includes a Phoenix arm of The University of Arizona Cancer Center, one of 45 specially designated by the National Cancer Institute as a comprehensive cancer center. To achieve this designation, the center must focus on basic and clinical research, prevention, education, outreach and training as well as patient care. The only cancer center headquartered in Arizona, it serves the entire state. uacc.arizona.edu
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BUSINESS & INDIVIDUALS • BENEFITS • SAVING MONEY
Scottsdale-based LaserTech Pain and Back Relief Center utilizes multiple healing technologies that include computerized “cold” penetration lasers, which effect “photo biostimulation” that is extremely effective with numerous types of chronic conditions without the dangers or side effects of drugs, surgery or steroid injections. With the application of multiple types of mostly non-invasive pain treatments, LaserTech is able to customize a treatment regimen with sophisticated, FDAcleared modalities that provides a thoroughly effective way to treat a patient’s pain. Among the numerous reasons people experience chronic pain are damaged tissues or arthritis, structural compromise, nerve
malfunction, movement impairment and postural instabilities. With the Valley’s significant golf presence, it is perhaps not surprising that LaserTech sees a lot of this with golfers. Golf, the pain center has found, instills a sense of addiction that causes many of its participants to constantly toil at improving their games, much coming at the expense of their own bodies. Back and shoulder pain; hip, knee, wrist and elbow discomfort are constant reminders how golf can afflict many players, especially as they get older. “If a person wants to continue playing golf, it’s important to treat the condition, not just numb the pain,” explains owner Craig Zimmerman, D.C. —Mike Hunter LaserTech Pain and Back Relief Center lasertechaz.com
A key take-away from the In Business Magazine “The New Healthcare” symposium held April 27 was the importance of businesses truly taking the pulse of their employees’ needs when putting in place a company wellness program.
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LAW MATTERS TO BUSINESS
How to Know When to Litigate Evaluating a case from the end to the beginning by Leon Silver
Back in the day if a person was wronged, a business defamed or promise unfulfilled, the offended party could challenge his opponent to a duel, meet at high noon, step off his paces, and pray to God that neither his opponent’s aim nor his pistol were more accurate than his own. Historically, we’ve too often solved disputes with threats or violence (or at least by sending Luca Brasi to make an offer they can’t refuse). Believe it or not, our Constitution deals as much with how we should govern business as how we should govern ourselves. It endowed our legislature with the ability to regulate interstate commerce and established a judicial system for the civilized resolution of business disputes, although Hamilton and Burr apparently ignored that part. At some point, every business will face the question of whether or not to engage that judicial system to enforce its rights. Most business owners answer this question in the simplest and broadest way: by asserting they will never be involved in litigation. They see litigation as a failure — if they are involved in a lawsuit, then they have already lost. Conversely, I often hear clients say they have an “ironclad” contract and that I need only send a demand letter to make the other party pay up. In reality, however, a contract is only “ironclad” if a company is willing to enforce it in court — just as trademarks, trade dress or trade secrets are valuable only if their owners are willing to go to court to shut down an infringing competitor. So how does a business owner decide whether it is appropriate to file a lawsuit? I often ask my clients to start by identifying the result(s) they want and to work backward from there. For example, suppose a trusted employee has left their company for a competitor. They are concerned the employee will divulge trade secrets to the competitor and undercut their pricing — although they haven’t seen anything on the market yet. Instead of asking, “What do I do?” I advise clients to instead ask, “What outcome do I want?” In this instance, three desired results come to mind: 1. Prevent the former employee from working for a competitor, 2. Prevent competitors and former employees from using any knowledge obtained while working for the client, and 3. Prevent the competitor from selling any products that compete with the client. Leon Silver is a co-managing partner in the Phoenix office of Gordon & Rees Scully Mansukhani LLP. He is a trial lawyer who was recently recognized as one of the Top 100 Lawyers in Arizona. gordonrees.com
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To obtain the first result, a company would need to determine whether the employee signed a restrictive covenant barring him or her from working for a competitor. If the covenant exists but was ignored, the company may be able to file a lawsuit, seek temporary relief (assuming it is provided for in the agreement), and achieve the desired result quickly and efficiently. If the employee has not signed a restrictive covenant, it becomes more difficult to achieve the desired result. So, in this scenario, the strength of the documentation may very well provide the answer.
To evaluate whether litigation will achieve the second result, we will need to examine the company’s intellectual property portfolio and any agreement or policy regarding trade secrets. If intellectual property registrations and trade secret policies are clearly defined and encompass the trade secrets in question, a letter informing both the competitor and the employee of the steps taken to protect those rights may suffice. However, if the policies are less clear, a longer and more expensive litigation process is likely. In this case, I would advise my client to consider whether the loss of business is worth the legal expenses likely to be incurred. The result of this calculation will help determine whether litigation is the best course of action. The third result is appealing, but is often nearly impossible to obtain in a cost-efficient manner. There are certainly instances where a Goliath company has tried to put a David out of business by burying it in litigation. However, that story did not end so well for Goliath. So, how does a business owner know if he or she should litigate? After identifying the desired result, I advise clients to address the following questions: • Will a court order stop the other party’s actions without the plaintiff having to wait until the very end of the case? • Will sending a threatening letter help avoid litigation? • Is negotiation, mediation or arbitration a viable option? • Is it possible to make a new deal to replace the one that’s gone wrong? • What is the most effective path from problem to meaningful solution? The result of this examination is a clearer evaluation of options. Put the effort into answering these questions first, and the rest of the pieces will fall into place.
According to Norton Rose Fulbright’s 2015 Litigation Trends Annual Survey, the number of U.S. companies with an annual litigation spend of $1 million or more rose significantly between 2012 and 2014. Much of this is spent in defense of lawsuits brought by others, but the numbers demonstrate that even the best efforts to avoid litigation are often for naught.
COMMERCIAL REAL ESTATE:
Is Multifamily Moving the Market? Office, retail, industrial … but multifamily seems to be where the action is by RaeAnne Marsh
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in suburban areas. In fact, according to Desmond, the vast majority of this development is in Old Town Scottsdale, Downtown Phoenix, Downtown Tempe and along Central Avenue. In Old Town Scottsdale alone, “thousands of units under construction or planned.” And Downtown Phoenix is big because of the growth of the Downtown District and ASU, observes Weiner. In fact, Downtown is the fastest-growing market in Phoenix, according to Fasulo, who shares that rental prices are competing with Scottsdale and the Biltmore area. This is a recent phenomenon that has its roots about 10 years ago when ASU created a Downtown campus that brought thousands of students plus staff and faculty to the area. Then the Light Rail opened. “It opened in 2008 when the economy was soft, but now it’s ramped up. So there wasn’t much development until about three years ago,” explains Brian Cassidy, president of CCBG Architects, Inc. and chair of the Warehouse District Council, which is working to create the cool, urban environment sought after by tech companies through a lot of adaptive reuse of the area’s older buildings. Multifamily projects in the area serve not only those companies but the big employment base of the biotech campus and medical research companies while also sharing the area with big venues, the convention center, hotels and government seats. Specifically, Roosevelt and 3rd Street is densest intersection in all of Phoenix, Loeffler says, noting four different projects are going up there at this time. And there’s a ripple effect. “The density is driving the growth of other businesses — restaurants, a record store — in an area where, a couple of years ago, there was nothing happening.” “Multifamily has driven forward all other segments of commercial real estate,” Loeffler affirms, for the segment in general. And the effect is to increase the sense of community, as putting more people into the areas is a huge driver to local businesses. “Investors made a profit in multifamily, and then put their money into other types of assets, such as hotels, office and retail.” What is making high density the driving force that it is? Says Cassidy, “Downtown development is increasing property value, which is spurring more people to start to develop their land.” We’re seeing
Ten years ago, multifamily developments were huge, sprawling complexes, and people never knew their neighbors, says Bryan Fasulo, who manages the property. Also, people tended to get a roommate to help afford a two-bedroom apartment. “Now, smaller is more desirable because they’re not doing double occupancy.” Residences at Fountainhead is designed with energy efficiency and green landscaping, which he says are “big with millennials” — as well as a lot of natural light while still being in an urban setting.
What’s most visible of commercial real estate in metropolitan Phoenix is the multifamily market. Dennis Desmond, senior managing director of JLL in Phoenix, puts the number of units currently under construction at 6,000. This strength has been a trend as we’ve recovered from the recession. “Multifamily, as a segment of commercial real estate, is the No. 1 driver of growth for the past four or five years,” says Chris Loeffler, CEO of Caliber Companies. The impetus for multifamily “going up like crazy,” observes Jon Rosenberg, managing partner of LevRose Commercial Real Estate, is the convergence of forces from two directions creating “the greatest demographic in history for multifamily.” Baby boomers are reaching retirement age in significant numbers, and many are choosing to trade large homes for an apartment or condo lifestyle. Even more impact is coming from the millennial generation, which is following a very different life pattern that impacts the housing market: In 1960, 65 percent of 18- to 32-year-olds were married; today, that’s less than 25 percent. So, rather than jumping into home ownership, millennials are choosing the flexibility of apartment living. But amenities and convenience are the important factors. As Rosenberg expresses it, “‛Live, work, play’ is a big thing.” Biomed and tech are the main employing drivers, observes Bryan Fasulo, regional property manager for national multifamily management company Pinnacle, which manages Residences at Fountainhead, a development at Tempe Town Lake, and Proxy 333 in Downtown Phoenix — and these fields bring in a demographic that’s looking to live where they have the most amenities and the most convenient location. “And that tends to be multifamily.” Their employers look at those factors as well. Says Rosenberg, “The businesses coming here are more vocal about what they want — locations that are easy to get to, and good residences for employees.” What makes a “good residence”? “Millennials want to be able to walk home, and to have restaurants and nightlife right there.” Visibility is somewhat misleading, for those who may be concerned about another real estate bubble. Explains Desmond, “It seems like a lot because it’s so visible, but it’s 2 percent of the overall marketplace in the multifamily arena.” Noting the supply and demand figures are in equilibrium, he says, “The market is strong — it’s about 92 percent occupied.” “There are apartments all over the Valley, including the periphery — along the I-17, the Southwest Valley, the Southeast Valley — as well as innercity,” says Howard Weiner, president and Maricopa County manager with Lawyers Title of Arizona. And Mark Stapp, executive director of the Master of Real Estate Development program and Fred E. Taylor Professor in Real Estate at ASU’s W. P. Carey School of Business, notes that P.B. Bell is doing a first-build in the West Valley. But it is the downtown areas that are seeing a lot of multifamily development, unlike a decade ago when the activity was more with housing developments
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“The key is to create a 5-star resort setting and usable outdoor spaces,” says architect David Hovey Jr., vice president of Optima, Inc., attributing part of his projects’ success to residents being able to use their outdoor space as another room. “Shading devices and vertical landscaping creates shade and lowers the ambient temperature, and creates privacy for residents.” Hovey has been involved in Scottsdale’s adoption of the International Green Construction Code instead of LEED, which, he explains, “allows cities to pick the specifics that make the most sense and provide the most benefit.” Plus, the cities can then use their own inspectors, thus making the process more efficient.
a lot of infill projects on land that was ignored for years but is now of interest to developers because it is in the heart of the city and near transit. “Land is more expensive, so they need to get a higher yield — so multifamily is the strongest use.” Multifamily is attractive to tenants, Fasulo explains, because “people are looking for the ‘50s sense of neighborhood, but in a big, urban setting.” They want to interact with their neighbors, share events in common, hang out in a sports bar that might be on the property or do yoga — and meet people who want to do similar things. “That is easier to find in high-density projects.” The Valley is a leader in this urban development, and Fasulo says he expects it to trend out to Flagstaff and Tucson as success is seen in Phoenix. “Even homebuilders like Toll Brothers are getting into more multifamily than single-family projects.”
CRE IS SLOW BUT SOUND “Commercial real estate is very healthy,” says Weiner, who shares that he has seen the market activity up significantly from last year. However, Phoenix does lag in recovery compared to the rest of the country. Explains Desmond, “Because of our dependence on the homebuilding industry, we were the poster child for the recession.” Our slower recovery, though, he believes is not necessarily a bad thing and will be good in the long-term. Not as dependent on construction as we were 15–20 years ago, we have an economy now whose strength is spread over a wider base of skill sets, particularly education and health services. And pointing to housing starts — often looked at as an economic indicator — he notes that in the early 2000s, we had 40,000–50,000 new starts per year. “Now, we’re thrilled to have 18 or 19 thousand — so that’s very sustainable.” Cassidy believes metropolitan Phoenix is the slowest of the country’s major metropolitan areas to urbanize. But he adds, “We’re one of most sprawling, therefore Phoenix has more room to urbanize than any other major metropolitan area in the U.S.” Architect David Hovey Jr., vice president of Optima, Inc., views the real estate market here with “cautious optimism.” “Before,” he says, “people were just building because the banks were lending. Now, new development has a more focused approach because projects are more targeted — for instance, if tech companies want to come to
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Scottsdale, then multifamily [there] is important.” In spite of its growth, Phoenix is still a second- or even third-tier city compared to cities in Texas, and even to Denver, says Stapp. He, too, cites as a positive the fact that we are not growing the way we were but are rather exhibiting a more sustainable, mature growth. “But,” he adds, “we will have to resolve public policy and infrastructure issues.” The biggest market is infill housing projects — high-end, highrent, denser multifamily projects with structured parking. Cassidy cites more than 1,500 apartments and condos under construction now in the Roosevelt District, plus product in Central Phoenix, North Phoenix, midtown, uptown, with another wave of 1,200–1,500 units in the development pipeline that have not yet broken ground but are ready to. “There will be a project opening every six to eight weeks for the next two-and-a-half years.” Weiner cites, among other activity, the refinancing of major shopping centers that changed hands or brought on new partners and that brought new money into the market from outside Arizona. This is one sign, he says, that confidence in the Phoenix market has finally come back. Noting the significant increase in population over the past 24 months, the increase in home sales, and the fact that unemployment is down, Weiner says, “The only drawback to the market is attracting companies and high-wage employees who can afford to pay more.”
RETAIL, INDUSTRIAL AND OFFICE KEEPING UP There’s plenty of activity in other segments of Metro Phoenix’s commercial real estate market. Weiner points to the major development core along Rio Salado, from Liberty Center just west of Priest Drive, down past the ASU stadium to the State Farm building. Noting this “big boom” has taken place in just the past two years, he says, projects like these bring “the kind of good employment that really helps the economy.” Another hot area Weiner names is around Phoenix-Mesa Gateway Airport in the Southeast Valley, particularly Eastmark. A hotel and conference center will be coming to the corner of I-17 and Camelback Road. And Grand Canyon University is, he says, “making a huge
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new, fun, hip urban businesses.” He notes Spectrum Mall (formerly Christown) is seeing a huge rise in new stores “because people are parking there and using the rail to get downtown.” Industrial is showing a lot of development in big box and other multi-tenant projects “because there’s not a lot available,” Weiner says. Many parts of Metro Phoenix are experiencing this; areas named include the Southeast Valley, Southwest Valley, Deer Valley Airport area, Chandler’s Price Corridor and Gilbert. Pointing to the strength of big-box construction and e-fulfillment sites in the West Valley, Desmond says he expects this type of activity to stay strong for the next 24–36 months. Amazon, alone, is a big driver of this, with 15–17 million square feet now and still growing. “Amazon will be the largest seller of clothing in the U.S. in the next 12 months, and it will need a place to store all that merchandise,” he says. Part of the West Valley’s attraction for this kind of occupant is its proximity to the freeway and Southern California. “In the Southeast Valley, there’s good activity but smaller users,” he says, noting 77 percent of leases in the first quarter of 2016 were less than 5,000 square feet. He sees industrial development as popular with lenders, “more so than spec office.” But some office is hot, according to Rosenberg. “The difference is, it’s more call centers, needing more open space.” Observing that availability is getting tight, he expects to start seeing more development. “Most new construction in Phoenix over the past few years is along Loop 101, from South Scottsdale into Tempe, beyond the 60 to the south loop of 202,” Desmond says. Vacancy overall, since the height of the recession in 2011, is down from 28.1 percent to 20.9 percent. Citing those figures, Desmond explains that, while that may still seem high, inventory has grown almost 5.5 percent, from 78.5 million to 82.7 million square feet. Plus, tenants are using space more densely, with per-person square footage dropping from 250 to 175 over the past 10–15 years. He points to SkySong as a great example of this construction, along with the Hayden Ferry area where the State Farm building dominates. “New construction is being absorbed, but older product is falling victim to that because new tenants want ‘creative space’ that, instead of having drop ceilings, is open to the vent work.”
“What’s most important to people in urban infill is time — they want everything close at hand, connect to the arts district, near lots of jobs,” says Dan Tilton, founder of Tilton Development Company, co-developer of Proxy 333. A code amendment allowed the twolevel parking structure to not be submerged, thus putting the residential units at a better height to enjoy spectacular views of the area. Floorplans are designed to especially appeal to singles; the average square footage of all units (studios and two-bedroom/two-baths) is 623.
difference in the West Valley,” buying and developing property to expanding its 3300 W. Camelback campus in all directions. This includes multi-million-dollar improvements to the Maryvale Golf Course on Indian School at 59th Avenue to make it the home golf course for the university’s golf team. “Development patterns have changed,” Stapp says. “Phoenix is acting like a mature metropolitan area.” We’re not seeing significant amounts of new-home building on the periphery like the big, master-planned communities of the past. Infill and adaptive reuse are important. “Development is turning inward,” Stapp says, noting that such developments are more sustainable and — because of their unique characteristics — more interesting, such as the Sip Coffee on Indian School Road in Scottsdale that used to be a lube and oil change facility. Especially hot for infill and adaptive reuse projects is the Warehouse District on the south side of Downtown Phoenix. In addition to housing Chase Field ballpark and the Phoenix Suns Arena, the area boasts many buildings built in the 1910s, ‘20s and ‘30s that served as wholesaling facilities for food and produce distribution for the Phoenix area. “There are a lot of unique buildings with great character,” Cassidy says. There are a lot that are empty and will need to go through considerable renovation in order to meet the safety requirements of today’s building codes, such as exits, handicap accessibility and sufficient power to run air conditioning, which buildings didn’t have in those days, but these are the kind of buildings that tech companies, software-writing companies and companies in the creative space — such as R&R Partners, an advertising, marketing, public relations firm that Cassidy, whose company did the renovation for R&R’s new offices, calls “the poster child for adaptive reuse — are looking for. “It’s a unique character district that doesn’t exist anywhere else in Phoenix.” Commercial real estate has also seen a phenomenal growth in locally owned, unique restaurant concepts. Weiner, in fact, says he’s seen more activity in boutique-type restaurants than anything else. Sam Fox, whom he names as big in this arena, is not the only one into redeveloping a small building or a house. Seventh Street in Phoenix now houses The Yard, a popular restaurant destination that was formerly a motorcycle garage and dealership, and Taco Guild, in a space converted from a church. “And there’s some activity in office and retail — small, neighborhood centers,” Weiner says. Retail, as the real estate truism goes, follows the rooftops. Rosenberg sees retail starting to fill up again, but — observing that a lot of big-box stores are going away to Amazon-type sales — he notes these are more service-type businesses such restaurants, salons and dry cleaners. Stapp points to redevelopment opportunities for retail around Scottsdale Fashion Square, and, in Central Phoenix, small, local, infill, “niche one-off projects” that, he says, “are geared mostly around food.” A factor not to be overlooked is Valley Metro Light Rail. Says Fasulo, “Everywhere within one mile of the Light Rail are
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FINDING FUNDING Thanks to the Light Rail, funding for construction is coming in from New York, Chicago, Seattle — “places that are major metros, and don’t consider you to be a major metropolitan area if you don’t have some sort of mass transportation system,” Fasulo says. In fact, he adds, “Bankers have been asking how close you are to light rail, bus stops — it’s a huge driver.” After all, people want it to be easy to get places. Which brings the discussion back to the impact of multifamily increasing the population density. “Multifamily is the darling of the debt world,” Desmond says, noting these projects — and some types of industrial — seem to be the easiest to finance. “Fannie, Freddie, banks — loan-to-cost was 65 percent; now it’s down to 60 percent because absorption is so high.” Compared to industrial, office and retail properties, where leases are a minimum of three years and, for new construction, may be five to 10 years, apartment leases are six, nine, maybe 12 months. “So if there’s an uptick in rates, it’s easier for the owners to capture those increases,” he explains, also acknowledging the flip side of this, should the market stumble. But funding, he notes, is being done by entities such as Trammell Crowe and Alliance, which are knowledgeable about the Phoenix market but, being national in scope, are not solely reliant on what’s happening in Phoenix. Cassidy, who’s seen strong funding for multifamily for the past three years, observes that lenders on new projects are getting more conservative, “to make sure multifamily is not hitting a bump.” He expects the current volume to taper off, retail and fill-in older office to pick up, and then multifamily to again have a growth spurt. As far as availability of funding, Loeffler says, “There are so many funds full of money to invest in commercial real estate and so many people interested in investing in commercial real estate, I don’t see investment activity and growth slowing down in foreseeable future.” And that promising look holds for every element of the state’s commercial real estate market, as the population — a driver of growth — continues to increase. There are many different ways to invest in real estate. Institutional investment is one, and Loeffler, observing that the stock market is not as attractive as it used to be, says, “Institutions are looking for a place to invest that is safe and has a better return, so there’s a huge rush of private equity funds and firms looking to invest in real estate.” And millennials are having an impact in this arena. Currently the generation with the highest savings rate, they are beginning to be on the receiving end of the greatest transfer of wealth in history — and, when they inherit commercial real estate property, “they sell the building and invest in zero-energy condos or green condos, et cetera, that drive the economy forward.” Although they may keep their money in real estate, Loeffler explains, “changing the type [of real estate] is an activity that tends to have a positive effect on the economy.” Buying a building, however, is not the only way to own a piece of the real estate market, Loeffler notes. The Jumpstart Our Business Startups (JOBS) Act, passed in 2012, opened the field to smaller investors. “It’s always been a major-investor game,” he says, “but now someone can invest $25,000–$50,000 in a hotel and have a great
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return and limited amount of risk.” And he believes this helps enable significant local real estate development. Additionally, he notes, 1031s are at an all-time high. This is the section of the U.S. Internal Revenue Code that allows capital gains taxes to be deferred in certain specified real estate transactions. “One of the great things, from an economic driver standpoint, about 1031s is that money gets reinvested in new projects.” Emphasizing again that economic activity is created by the movement of money, he offers as illustration the situation of an owner selling a building he has had for 20 years and buying into a new one that he will improve. “Just that economic activity of money moving from one sector to another and allowing the owner to roll the money forward without having to pay taxes improves the community and creates jobs and builds the wealth of local investors.”
WHERE’S THE DRIVER? “Commercial real estate is not an economic driver,” Desmond states, explaining, “Commercial real estate is a reflection of all the other economic drivers we have here – population growth, employment growth, housing starts.” For example, as people move here, there’s an increased need for new houses, and then for more fulfillment centers for industry and office space for financial services. Sharing, “Our business impacts once all those things start to move in the right direction,” he notes that Maricopa Association of Governments predicts a 5-percent population growth annually over the next 20 years — more than doubling today’s population. Cassidy cautions that there is a need to diversify Arizona’s economy, that we can’t rely solely on real estate growth. “But good real estate growth attracts a more diverse economy — they work together.” Diversifying the economy, however, is not as simple as just identifying what businesses to woo. “The world today is in competition for employees, not for businesses,” Stapp says. So businesses are looking for places that are highly desirable for employees. Citing better schools, quality of life, social and physical health and wellness, and a robust arts and culture sector — much the same concerns driving multifamily development — he says, “These are what will dictate how fast we grow.” Caliber Companies caliberco.com CCBG Architects, Inc. ccbg-arch.com JLL jll.com/phoenix Lawyers Title of Arizona lawyerstitlearizona.com LevRose levrose.com Optima, Inc. optimaweb.com Pinnacle pinnacleliving.com Proxy 333 proxy333.com Residences at Fountainhead residencesatfountainhead.com Tilton Development Company tiltondevelopment.com W. P. Carey School of Business wpcarey.asu.edu
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RISKS & REWARDS
Are Unknowing Mistakes Driving Away Customers?
In businesses struggling to hold onto customers, the blame may lie in practices, processes and priorities by Joseph Michelli, Ph.D.
Joseph A. Michelli, Ph.D., CSP, is the author of recently released Driven to Delight: Delivering World-Class Customer Experience the Mercedes-Benz Way. An internationally sought-after speaker, organizational consultant and New York Times No. 1 best-selling author, Michelli is a globally recognized thought leader in customer experience design. josephmichelli.com
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Loyal customers are hard to come by these days. We all know this. After struggling through years of turmoil and uncertainty, the last thing most leaders would purposely do is take customers for granted. And yet, in many a company, all the fervent efforts to attract and retain them are falling curiously flat. It’s not that they’re storming angrily out the door. It’s that their experience with the company is less of an enthusiastic Wow! and more of a tepid Eh. What are these companies doing wrong? Companies have great intentions. They want to delight customers; they really do. In fact, they’ll often undertake these big service initiatives — only to see their efforts fizzle quickly or never take root. Problem is, their great intentions are at odds with their culture. When that’s the case, they’re doomed to make certain predictable mistakes. The mistakes are inevitable — and what’s worse, companies don’t even know they’re making them. Having worked with Mercedes-Benz USA to positively and radically transform its customer experience and also having authored books on service giants like Zappos and Starbucks, I know just how hard it is for most organizations to keep customers happy for the long haul. Here are five big mistakes an organization may be making without realizing it. Chasing new customers at the expense of existing ones. In other words, the company is directing too much money toward acquisition and hardly any toward retention.
The ratio is lopsided. Consider car dealers that spend huge amounts on commercials that scream at people to come in, promising cruise ship vacations, etc. What they’re not spending it on is employee training to make sure that once these customers are in the door they’ll come back. I’ve noticed companies that are good acquirers of customers often are not good retainers of customers. The key to business is being great at both and at using those it’s retained to help with its acquisition curve. I see a lot of brands missing the message here. The cost of acquisition is so much higher than the cost of retention, so why not invest more in the cost — in the tools of retention — to maximize that multiplier? Making customers work too hard. Businesses must now compete in an increasingly Uber-ized society. Uber customers simply pull out their phone, push the app, a car pulls up and takes them where they need to go, they are dropped off, no cash is exchanged, and they are done. As people begin to expect this kind of service, business leaders are being forced to find ways to make their customer’s entire experience as effortless, frictionless, and yet as personal as possible. There are companies now that will actually gas up the customer’s car at the touch of a button — and they wash its windows and leave a little note on the windshield. The customer can just leave work and go straight home to his or her kids because the car is already gassed up.
Zappos’ four-week cross-department orientation process is an example of new-hire orientation at its finest — deeply embedding and delivering on the company’s brand and core value, “Deliver WOW Through Service.” …
BETTERING YOUR BUSINESS
Fix It A business must never forget how complex life is for customers. From that starting point, the business owner needs to pick apart the company’s deliverable and figure out how to maximize its ease. Customers leave because we don’t think through the degree of effort it requires to do business with us. We don’t provide technology solutions. We don’t simplify every touchpoint. When it’s not almost effortless, customers leave. Wouldn’t you? Hiring the wrong people out of desperation. When we hire from a place of being frantic and rushed, we end up with low performers. We hire too quickly because we want to fill a shift, and we get employees who handle customer interaction but who lack the emotional intelligence to connect authentically with another human being. Frequently, we get pressure from our existing teams, who say, “Please, send us a body” — and then, seemingly only hours later, they’re saying, “Please get rid of this body.” Somebody can be standing at the front desk or on the phone, but if they’re a drag on the service we’re trying to provide, it’s worse than having nobody there at all. We need to hire a little more slowly, be a little more cautious than we have in the past. Not training for authenticity. Companies have to strive, first of all, to hire people who truly do care about customers. But that’s just the beginning. They should also be training employees to connect on a human level. This is not about scripting but about helping employees realize what customers really want and need, and then empowering them to provide it. While it’s essential to practice disciplined hiring in the search for people with emotional intelligence, those capabilities have to be awakened and reinforced through the training process. Companies need to immerse them in their brand so they really understand what it’s like to be the customer — to “get” unspoken needs. Businesses need to collect and share stories of customer delight. They need to touch the hearts of team members as well as their minds. When companies do this, their employees will genuinely want to serve the customer. Ending transactions at the money exchange. Too many businesses close the deal and politely say goodbye. The message customers get is, “Okay, we gave you your product or service, you gave us the money, now we’re done.” There is an enormous space here for employees to invite reengagement with the customer at the end of a transaction — to really show appreciation, to show gratitude, to show an eagerness to serve them again. Godiva does a great job of reengaging the customer. Its employees will put the chocolate in a lovely bag, actually walk around the counter and hand it to a customer, and often they’ll say, “Hey, we’ve got another product coming out that you may enjoy.” If the chocolate has been purchased for a gift or special event, the associate will say, “We’re looking forward to hearing how this was received when you come back in.” They’re creating an invitation to return, and that’s incredibly powerful. They pull the customer back in for a continuation of the conversation. This is what happens when brands really get it, and where other brands follow a robotic script to say, “Thanks. Have a nice day.” If I’m the customer in the second case, there’s no reason for me to ever shop with that business again; today’s need is fulfilled and the relationship is over. When customers have the luxury of abundant choices, businesses must constantly look in the mirror to see where they can improve. We all make mistakes from time to time. But if the business’s culture isn’t built on a sincere desire to delight the customer — no, not a desire, an obsession — those mistakes are likely to be unforgiveable ones. And the real tragedy is the business will never even realize it’s making them.
One factor, more than any other, causes the problems business leaders fear most. Lackluster performance, sinking profits and unmet stockholder expectations all stem from one source: a massive decline in employee engagement. Rather than blaming employees themselves for the decline, however, the Workplace Accountability Study reveals how to fix it. The secret lies with those who lead and manage our organizations. To inspire employees to be fully engaged, mentally and emotionally, in their work, leaders must first and foremost fix accountability— in themselves, their teams, and the entire enterprise. This book not only presents eye-opening insights drawn from the authors’ three-year, first-of-its-kind Workplace Accountability Study, it also offers 240 proven solutions advanced by 120 successful leaders interviewed exclusively for this book. Title: Fix It: Getting Accountability Right Authors: Roger Connors and Tom Smith
$32
Publisher: Portfolio
Pages: 416
Available: 5/31/16
Leadership Leadership experts David Pendleton and Adrian Furnham present an innovative model for leadership success in a turbulent world. When times are hard, leadership makes the greatest difference. This updated second edition shows how to make the kind of difference that all organizations, both public and private sector, want and need. Early chapters show the powerful effect leadership can have on organizations; subsequent chapters present new ideas that are elegantly simple, conceptually coherent and radically different, based on the best research in the field. The ideas in this book have also been tested in major multinational organizations over recent years. The aim is to provide leaders and those who work with them a practical guide to how to increase the effectiveness of leadership in any organization. Title: Leadership: All You Need to Know (2nd edition) Authors: David Pendleton and Adrian Furnham
$40
Publisher: Palgrave Macmillan
Pages: 246
Available: 5/30/16
When the Pressure’s On At the highest level of any pursuit, the difference between the two top performers in a contest is always mental. One holds it together — while the other falls apart. The same is true in business. Whether confronting a crisis, making a pitch, negotiating a deal or facing a deadline, a person’s mindset can give him the edge. When the Pressure’s On brings peak performance principles to the boardroom, revealing five core mental skills that enable professionals to excel while under duress: Goal Setting, to become mission-driven; Adaptive Thinking, replacing negative thoughts with positive ones; Stress/Energy Management, keeping one’s cool no matter what; Attention Control, maintaining focus despite distractions; and Imagery, seeing success before it happens. Together, the skills form the core of this complete brain-training program. Title: When the Pressure’s On: The Secret to Winning When You Can’t Afford to Lose Author: Louis S. Csoka, Ph.D. Publisher: AMACOM
$24.95 Available: 5/16/16
… Zappos understands that new team members should feel informed, inspired and encouraged to contribute to the culture. It even offers an out for new hires who realize the culture isn’t for them, paying them for the hours they’ve put in so far plus a cash bonus to leave with a smile. (“Take Service to the Stratosphere,” In Business Magazine, Feb. 2013) inbusinessmag.com/?p=1427
Pages: 224
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INVESTING IN COMMUNITY
Better Branding = Fundraising Impact JUN
UP NEXT MONTH Overhead and the Nonprofit
MARKETING TOOLS FOR THE NONPROFIT Nonprofits should employ the same marketing tools and techniques as their for-profit counterparts: Video — Gone are the days of expensive video shoots. Simple, engaging, high-quality stories can be shot from an iPhone. Social Media — Don’t have a social media guru who truly knows how to effectively use LinkedIn, Facebook, Twitter or Pinterest? Identify an internal candidate passionate about social media and invest in online or community college courses that illustrate how these powerful tools can connect and engage. Partnerships — Consider, for example, an animal shelter focused on abused cats. Rather than simply raising funds for food, it partners with a quality food maker recommended by veterinarians. The manufacturer offers a discount and places the shelter’s mission on its packaging.
Richard Tollefson is founder and president of 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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INBUSINESSMAG.COM
A greater understanding of brand and messaging can bolster a nonprofit’s fundraising efforts by Richard Tollefson
Two simple questions lie at the heart of a nonprofit’s branding and marketing efforts: Who? and Why? Who is the nonprofit helping, and why? “Organizations often forget what they’re really about,” says Russ Haan, founder of Phoenix-based Charles Russell, a visual storytelling consultancy. Knowing that answer, he says, is the essence of a strong brand and a catalyst for fundraising. Executives sitting on nonprofit boards, because of their distance from day-to-day operations, are in a unique position to provide objective clarity about brand. They can assess marketing materials against mission and vision, and help identify the distinctions that make their nonprofits unique from competitors. “So often,” says Haan, “there is a disconnect between public perception of a brand and what the fundraisers and marketers think the brand is.” This type of confused messaging can color every aspect of an organization’s outreach and success. “It is essential for all of our team to feel they have a deep understanding of why we do what we do and how they play an integral role in achieving our goals,” says Katherine Ransom, vice president of marketing and communications for Irvine, Calif.-based Orange County United. “While our PR and marketing efforts are essential, our employees on the front lines are our most credible source. If they aren’t working toward a common purpose, it negatively affects fundraising, morale and retention, as well as the overall brand.” Strong brands start with an understanding of purpose and are tied directly to a nonprofit’s mission, vision and values. But how do nonprofits drill down to the heart of their brands? According to Haan, it’s as simple as communicating a story. He points to the philanthropic arm of Edwards Lifesciences, a medical company focused on heart-valve disease. “Their simply stated goal is to get a heart to beat once more,” says Haan. That specific articulation led to a discussion of the things that can happen in one heart beat: a person can fall in love, the next Gandhi could be born, the world can change. And from that discussion was born a series of marketing messages and the foundation’s brand premise, “Every heartbeat matters.” United Way followed a similar exercise as an example of one of four key priorities identified in its strategic plan: cutting the high school dropout rate in half. Not only do volunteers and fundraisers share real, personalized stories of lives touched, they also share quantifiable facts surrounding this issue. “The heart tug is necessary to provide an emotional appeal, and is effective in personalizing human issues, but for United
Way to be perceived as a smart investment, we needed to point out economic consequences that affect the entire community,” says Ransom. “A high school dropout is 12 years in the making, and the average cost of a dropout is $300,000 in lower tax revenues. Dropouts earn less, have higher unemployment rates, rely on social support, and their kids are more likely to drop out. And, of course, the loss in human potential is immeasurable.” These very different approaches to the same “story” are essential because donors think with their hearts and their heads. They respond to messaging delivered by passionate individuals who understand the organization’s unique services. That’s not to say that marketing materials — and even visual identity — aren’t important ways to bolster brand. They are a clear part of overall identity, but Haan cautions nonprofits to avoid thinking of brand as a logo only. Logos, he says, can’t fix the bigger “we don’t know who we are” issues of an organization. Steve Esser, creative director of Phoenix-based Esser Design, agrees. “Mission and vision statements go hand in hand with visual identity. Many times these key messages are adjusted and honed before any creative is attempted.” Brand positioning, he says, is about finding distinctions that become the essence of the visual brand. Logos serve as a unifying branding element across presentations and marketing materials, but they also can galvanize employees and the people they serve. “People begin to understand that a logo stands for what they think,” says Haan. “That can be very powerful.” According to Ransom, the power of a strong brand and its tie to philanthropic dollars is too important to be overlooked, especially as her organization undertakes an ambitious fundraising plan that affects development, operations and infrastructure. “It’s critical to ensure that our branding is aligned with our objectives, and that we build a strong case to attract and engage philanthropists.”
Branding Examples: Mission, Vision, Mottos Whole Foods: Whole Foods, Whole People, Whole Planet.
Philosophy Skincare: Celebrating the beauty of the human spirit.
Nike: To bring inspiration and innovation to every athlete* in the world.
*If you have a body, you are an athlete.
BY MIKE HUNTER
MAY 2016
Enterprise Bank & Trust
Enterprise University — ‘How to Win the War for Talent’ Tues., May 17 7:45a – 9:45a Enterprise University
Tempe Chamber of Commerce
presents its “How to
Women in Business Conference
Win the War for Talent” seminar as part of Enterprise Bank & Trust course offerings in Phoenix. The bank first
Wed., May 25 | 8:00a – 1:30p
established the program
A trade show featuring local and national organizations
in 2003 in the company’s headquarters city, St.
Todd Govig
Louis, and in Kansas City,
and businesses provides the backdrop to a luncheon and presentations by powerful keynote speakers. Themed “Reach, Achieve, Celebrate!” the event presents speakers who will deliver
where the company also has a base. EU provides free educational seminars on a variety of topics pertinent to business owners and Valley professionals, and encourages them to think strategically and collaboratively. Overall, EU has offered more than 150 unique courses since its inception, covering nearly 700 class dates, and expands its curriculum as markets begin to emerge. Classes are open to nonclients of the bank; the bank’s executives are fully supportive of this program and believe it is one of the best ways the bank can continue to give back to the business communities it does business in. “Enterprise University gives us a platform to connect with Phoenix business owners and leaders by providing them with access to resources that are beneficial to the growth of their business,” says Enterprise Bank & Trust Arizona Region President and CEO Jack Barry. Each year, EU presents a spring and a fall semester of three classes each. All sessions start with a half-hour of networking. “How to Win the War for Talent,” the final course in this year’s spring semester, will be taught by Todd Govig, president and CEO of Govig & Associates. Classes are free, but registration is required.
inspirational messages that touch on these elements and motivate each member of the audience to strive for fulfillment, happiness and success. Cary Pfeffer, founder of ClearComm Consulting, will present a breakout session on communication. Topics he will cover in “There’s Not an App for That!” (also the title of his book) include connecting with one’s audience — big or small — in the first few seconds; best practices for anyone who is called upon to stand up and speak; and the most overlooked element of communication. Jeff and Jodie Heisner, owners of BottomLine Media Coaching, will present the second breakout session, “Getting Positive Media Coverage.” This session will teach attendees how to attract media coverage, and how to best represent oneself and one’s company to reporters. Presenting the “Achieve” keynote speech, “Define Your Destiny,” will be Catherine Anaya, whose multifaceted career includes 12 years as anchor at CBS 5 News, award-winning columnist, and owner and CEO of 4HeartsMedia. Lin Sue Cooney will deliver the “Celebrate!” luncheon keynote presentation. The winner of nine Rocky Mountain Emmys as well as numerous awards for news
SAVE THE DATE
Upcoming and notable Annual Business Awards Luncheon June
Wed., June 15
15
Gilbert Chamber of Commerce presents its Year In Review, honors the volunteers who serve the chamber, and announces the recipients of this year’s Annual Business Awards. gilbertaz.com Annual Luncheon June
Thurs., June 16
16
Tempe Chamber of Commerce presents its 2016 Business Excellence Awards. tempechamber.org
reporting and community service, Cooney recently left 31 years as newscaster for 12 News to become director of community engagement for Hospice of the Valley. The event will also celebrate the success of the chamber’s
Free
Women in Business mentoring program, and then culminate with
Arizona Small Business Association
the Business Women of the Year celebration, show and award
4600 E. Washington St., Phoenix
presentation. This year’s finalists are Tracy Bullock, president of
enterprisebank.com
Bullock Training & Development; Denise Hart, vice president of marketing for Vestar Development; and Dawn Hocking, director of development for The Centers for Habilitation.
Members: $65; non-members: $99 DoubleTree by Hilton Phoenix – Tempe 2100 S. Priest Dr., Tempe
MAY 2016
tempechamber.org
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MAY 2016 NOTABLE DATES Thu., May 5 – Cinco De Mayo Sun., May 8 – Mother’s Day
Mon., May 30 – Memorial Day (observed)
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MAY 2016 Thurs., May 5
10:00a – 6:30p
AZ Small Biz Con 2016 Arizona Small Business Association Conference includes breakout sessions; “Armchair Discussion” (10 a.m. – 11:30 a.m.) with special guest speaker Maria Contreras-Sweet, administrator of the U.S. Small Business Administration, and two past Shark Tank contestants to discuss access to capital, effective marketing, business growth and more; and the 23rd Annual Enterprise Awards Luncheon (11 a.m. – 1:15 p.m.), an upbeat, celebratory event that showcases the many successes of remarkable Arizona small businesses.
Tues., May 10
Deal of the Year Awards Dinner
$145; Armchair Discussion only: $40; Enterprise Awards Luncheon only: $80 Arizona Biltmore Thurs., May 5
2400 E. Missouri Ave., Phoenix
Association for Corporate Growth – Arizona
asba.com
The ACG Arizona “Deal of the Year” award is given annually to a company or private equity firm in recognition of its accomplishments in Arizona’s mergers and acquisitions or capital markets marketplace. The award recognizes a deal/transaction in the Arizona marketplace involving established businesses with between $10 and $750 million of revenue that closed in the 2015 calendar year.
12:30p – 6:30p
2016 Cybersecurity Summit Arizona Technology Council The Arizona Technology Council, Arizona Commerce Authority and Arizona Cyber threat Response Alliance/Arizona InfraGard present the third annual Cybersecurity Summit, an opportunity for government and business executives to learn about the threats, vulnerabilities and consequences related to data security and privacy matters. There will be a panel discussion, keynote speaker, sponsor expo and other exceptional presentations.
Members: $135; non-members: $155 Arizona Biltmore – Grand Ballroom
Members: $50; non-members: $75 Scottsdale Hilton Resort & Villas
6333 N. Scottsdale Rd., Scottsdale
5
2400 E. Missouri Ave., Phoenix
aztechcouncil.org
acg.org/arizona
6 Thurs., May 5
5:30p – 8:00p
7 Sat., May 7
5:00p – 9:00p
10
8:00a – 5:00p
7th Annual Red, White and Beautiful
12th Annual Entrepreneurs’ Small Business Boot Camp
Ahwatukee Chamber of Commerce
National Association of Women Business Owners – Phoenix
A night of pampering, food, drinks, fashion show and shopping with everyone’s favorites!
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.
$10
$149
Foothills Golf Club
Embassy Suites Scottsdale
2201 E. Clubhouse Dr., Phoenix
5001 N. Scottsdale Rd., Scottsdale
Sat., May 7
ahwatukeechamber.com
nawbo.com
58th Annual Black & White Fashion Gala and Business Awards
Fri., May 6
7:00a
Arizona Hispanic Chamber of Commerce
Leadership Live 2016: Architects of Tomorrow This simulcast focuses on what it means to be a visionary leader. Visionary leaders have the ability to see a preferred future, operate in the present, utilize the resources around them to architect a clear path to a new destination, and work tirelessly to empower those around them to bring a vision to life.
Join the AZHCC for an enchanted evening capturing the flair and excitement of the Valley’s vibrant fashion world. This year’s 58th Annual Black & White Fashion Gala and Business Awards spotlights up-and-coming designersturned-entrepreneurs celebrating a dazzling night of style and fashion. The event will feature a fashion show with local designers, the AZHCC Business Awards, music, entertainment and more.
$89
Members: $300; non-members: $400
Gilbert Chamber of Commerce
The Bridge Recreation Center
824 W. Germann Rd., Chandler
gilbertaz.com
MAY 20 1 6
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INBUSINESSMAG.COM
6:00p – 12:00a
Arizona Biltmore
2400 E. Missouri Ave., Phoenix
azhcc.com
Please confirm, as dates and times are subject to change.
For more events, visit “Business Events” at www.inbusinessmag.com
Wed., May 11
Wed., May 18
11:30a – 1:30p
5:30p – 8:00p
Elite Networking Mixer
Annual Economic Outlook Luncheon
Phoenix Metro Chamber
Economic Club of Phoenix
Joint mixer with Southwest Veterans.
Join local business and community leaders to hear top economic experts deliver their midyear forecasts on job growth and key economic indicators for Arizona and the U.S.
$10
Members: free; non-members: $85
phoenixmetrochamber.com
Z’ Tejas Southwestern Grill 1525 E. Bethany Home Rd., Phoenix
JW Marriott Desert Ridge Resort & Spa 5350 Marriott Dr., Phoenix wpcarey.asu.edu/economic-club Tues., May 17
Tues., May 17
7:30a – 8:30a
Noon – 1:30p
Business Before Hours
Luncheon
Tues., May 24
Tempe Chamber of Commerce
Chandler Chamber of Commerce – Women in Business
United Food Bank Tour
Breakfast, networking and a chance to give a 30-second commercial about your business.
3:30p – 5:00p
Mesa Chamber of Commerce – Women’s Networking Group
Women in Business luncheon features a different program each month.
Members: free; non-members: $10
Members: $25; non-members: $35
Fourth Tuesday of each month. Monthly events vary between networking sessions and educational programs.
Arizona Fun Services
SoHo63
Members: $10; non-members: $20
1938 E. Broadway Rd., Tempe
63 E. Boston St., Chandler
United Food Bank Tour
tempchamber.org
chandlerchamber.com
mesachamber.org
11
12
17
18 Thurs., May 12
8:00a – 1:30p
24
245 S. Nina Dr., Mesa
26
Thurs., May 26
5:30p – 7:00p
Stewardship Summit
Mixer
Arizona Forward
Greater Phoenix Chamber of Commerce – Valley Young Professionals
This forum focuses on the impact of the built environment on public health and wellness. Leading voices on this critical connection will address what walkability means to your lifespan, how communities can implement healthy infrastructure, what’s happening around the world, Arizona’s ranking, and why you should care. Hear how Arizona mayors are making positive differences in their communities.
Grab a drink, network and meet new young professionals in the Valley. Members: free; non-members: $20 Bluewater Grill
Members: $85; non-members: $100
1720 E. Camelback Rd., Phoenix
Hyatt Regency Phoenix
phoenixchamber.com
122 N. 2nd St., Phoenix
arizonaforward.org Thurs., May 12
8:30a – noon
Henkel Workshop and Matchmaking The Black Chamber of Arizona
Wed., May 18
11:00a – 1:00p
29th Annual IMPACT Awards Luncheon Greater Phoenix Chamber of Commerce
Free
Celebrate eight businesses and one nonprofit organization whose good work and successes have strengthened our community and the chamber. Hear their inspirational stories, see what makes them the best of the best in Valley business, and find out which two companies have earned Business of the Year.
Henkel
Members: $75; non-members: $85
7201 E. Henkel Way, Scottsdale
Arizona Biltmore
blackchamberaz.com
phoenixchamber.com
Business owners learning and working together.
2400 E. Missouri Ave., Phoenix
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
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WE VALUE WHAT WE OWN
BY MIKE HUNTER
2016 BMW Z4 Roadster: Go Topless for Summer Making a major splash on the market these days, BMW is reinventing things to appeal to a crowded marketplace. The legendary luxury carmaker is instituting some incredible technologies, service agreements for life of ownership, and also having some fun. The latest “fun factor” is the BMW Z4 Roadster. This top-of-the-line iteration of this topless sport vehicle — the 35is — is all the rage from BMW. It achieves a top speed of 168 mph, boasts 0-60 mph in 4.8 seconds, and is hoofing a 335-horsepower engine. An art form by most accounts, this roadster is not just another convertible. The elongated hood houses the BMW inline, 4-cylinder, TwinPower Turbo in the 28i
2016 BMW Z4 ROADSTER City: 22 mpg Highway: 34 mpg 0-60: 4.8 sec Transmission: 7-speed Double Clutch
edition, while the 35i is carrying the 6-cylinder engine — each of which is more fuel efficient than its predecessors and are precision machines built for speed. The design is a head-turner for sure. This sports car is anything but all about the brand. It is a true performer and is inspired by race cars of old and the roadster movement, evoking a sense of old and new. The classic elongated hood and the steel roll bars give way to roadster-esque styling. The hard top, when up, makes the car look even sportier, and the quiet interior makes it seem like it was permanently affixed. The interior dash is a sight, with metal-lined gauges and a tinge of opulence to be sure that the esthetics of this racy BMW are all luxury. The technology is top notch for all of the communications, navigation and audio components. A convenient touchscreen rises out of the dash and assists on all systems and applications. The three-spoke, leather-wrapped, multifunction M sport steering wheel supports controls for audio system, cruise control, and Bluetooth wireless communication for hands-free mobile phoning. BMW bmwusa.com
MSRP: $66,350 (35is)
Office to Go
MAY 20 1 6
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Be Office Ready
Get Charged
Readyaction Office
Weego is an
On-the-Go Printing
is a chest harness
emergency battery
Enter the
for tablets that
and the ideal tool
2.6-pound,
allows users to
for all drivers, bikers,
book-sized, inkjet
strap their tablets
off-road trailblazers
Primera Trio All-
to their body.
and boaters because
in-One Ultra-Light
Sort of a hands-free, portable office, if you
it eliminates the need for jumper
Printer. It’s not only the smallest and
get my drift. It positions the tablet open at any
cables, bulky jump packs or calling
lightest printer/scanner/copier on the
angle for hands-free viewing and data input,
for a tow. Worrying about dead
market but is also able to print, scan and
and then conveniently locks in the closed
batteries is a thing of the past —
copy in full color or grayscale with up to
position, against the user’s chest and out of the
high-quality, ultra-convenient,
4800 dpi print resolution on standard
way, for mobility. readyactiongo.com
portable power is in. myweego.com
A/A4-size paper. primeratrio.com
The new storable hard-tops are the latest, replacing the former cloth-top convertibles. The usually two-piece retractable folding top is stored in the trunk or a space just to the back of the passenger area. These tested technology and materials are such that these are as safe as a permanently affixed cabin cover.
Photos courtesy of BMW (top)
These gadgets add the flexibility of portability for the business company man or woman.
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
MEALS THAT MATTER
Lacinato kale, pecorino romano, julienne pear, pan-roasted bread crumbs, pine nuts, oven-roasted tomato, lemon dressing $13
ZuZu at Hotel Valley Ho It is not often that our lunch hour can be so tranquil. At ZuZu, the innovative American kitchen at Hotel Valley Ho, the setting makes the most of our great Arizona climate. Inside or out, this poolside retro locale is the ideal getaway for that important or well-deserved lunch. Inspired by the neighborhood grills of the 1950s, ZuZu offers up a variety of options for lunch that include some great twists on the old classics of that era. Overseen by Chef Charles
ZUZU BURGER
ZuZu
Smoked bacon, balsamic onions, blue cheese with twice-cooked crispy fries
6850 E. Main St., Scottsdale (480) 376-2600 hotelvalleyho.com/zuzu
$16
Patios Are Back
Ocotillo
The Vig Uptown
Outdoors is a part of our life here — even
This new campus hot
It feels like being outside
SumoMaya MexicanAsian Kitchen
spot has several outdoor
despite the interior wall
Chic and set up for exposing
areas that are going to
surrounding the indoor/
patrons to the elements,
work for any weather
outdoor space that
SumoMaya is a guaranteed
— fully covered or open
includes many tables,
hot spot for lunch. Its patio is
and hot. The lunch
games and a nice seating
covered and cool — the hip
menu will work, too, for
area with fireplace. The hip
kind of cool, and temperature
patrons no matter where
vibe of this hot spot over
cool as well. The Mexican-
they decide to settle.
lunch and its many options
inspired menu will entice.
3243 N. 3rd St., Phoenix
make this a top pick.
6560 N. Scottsdale Rd.,
(602) 687-9080
6015 N. 16th St., Phoenix
Scottsdale
ocotillophx.com
(602) 633-1187
(480) 397-9520
thevig.us
sumomaya.com
at 100 degrees or higher. We discovered some of the best patio midday dining that will take us through the heat.
SumoMaya Mexican-Asian Kitchen
MAY 20 1 6
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Wiley, this menu will delight all. The B.L.T. on sourdough is not to be missed. This classic is toasted and offers a fried egg option as well. The Pastrami Melt puts hot pastrami on marble rye with melted gruyere, sauerkraut and house-made Thousand Island dressing. The Classic Caesar with chicken is the perfect lunch, with its light dressing and crispy-fresh romaine salad. Other great finds include the Ahi Sliders; the alwaysrefreshing Giant Shrimp Cocktail made with a hot cocktail sauce; and the Roasted Spaghetti Squash with sautéed greens, tomatoes, toasted pine nuts and parmesan crust. A simple, modern, almost roadside-inn appeal is the décor with half-moon booths along the back wall and open area tables that allow for a room that feels spacious even when packed. The patio is pleasant and is well-shaded for a nice meal even on the hottest of days.
Hotel of Note: Originally opened on December 20, 1956, Hotel Valley Ho has classically cool roots and stands as a modernist icon in Downtown Scottsdale. It was built on the belief that “the important thing is to make your guest feel wanted.” The architect, Edward Varney, was a student of Frank Lloyd Wright, who was known for his minimalist style.
Photos courtesy of Hotel Valley Ho (top), SumoMaya Mexican-Asian Kitchen (bottom)
TUSCAN KALE SALAD
BY MIKE HUNTER
SUMMER 2016
UNITING, STRENGTHENING, AND ADVANCING ARIZONA’S NONPROFIT SECTOR. ARIZONANONPROFITS.ORG
Finding Common Ground For Greater Impact The Alliance of Arizona Nonprofits is an action-oriented group of partners across Arizona — both nonprofits and those in the community who support them — dedicated to uniting, strengthening and advancing Arizona’s nonprofit sector. The Alliance envisions an Arizona where all nonprofits are valued, empowered and thriving.
CONTENTS p. 2
he Right Board Member T for the Right Board
p. 3 On the Board and In The Spotlight p. 4 Fact or Fiction: Nonprofit Myth-Busters p. 5
It’s All Connected: The Nonprofit/For-Profit Connection
I know what you’re thinking: “Why is there a nonprofit section in a ‘business’ magazine?” But my hope is that it will become increasingly clear as you navigate through this inaugural section where our goal is to strengthen the critical connection between the for-profit and nonprofit sectors in Arizona. Let’s explore together how we can create strong, meaningful and strategic partnerships and cross-sector collaborations in order to exponentially increase our impact. The nonprofit sector is a vibrant economic engine whose contributions go far beyond the critical work it does to support our citizens, our communities and our environment in this beautiful state we call home. And, at the Alliance, our mission is to unite, strengthen and advance the more than 20,000 strong nonprofits in Arizona. In the newly released report, Arizona Nonprofits: Economic Power, Positive Impact, we outline just how powerful the nonprofit sector is in our local and state economy. The key findings of this report show that nonprofits generate $22.4 billion — more than 8 percent of the state’s Gross State Product — and are the fifth-largest non-government employer, responsible for 325,000 jobs. We also want to help debunk some of the myths circling nonprofits and their work in our communities and showcase the phenomenal bench of talent, expertise and passion residing in our nonprofit leaders and volunteers. “Nonprofit” is, at its very core, a tax status, but we intimately understand that we must be revenue positive in order to be sustainable. We must advocate for fairly paid staff, competitive benefits and professional policies and procedures — just as you would expect in your business. It’s time for nonprofits to stop talking about having a seat at the table and instead set the table of opportunity for collaboration across all sectors. At the core, we all face similar challenges of running an organization, employing a workforce, increasing revenue, being innovative and finding new solutions to challenges. Join us on this journey, and let’s partner and invest in making Arizona the best place to live, work and play.
p. 6 Arizona Gave! Arizona Gives Day Results
Thank you,
Director of the Year Award Winners
Kristen Merrifield, CAE Chief Executive Officer Alliance of Arizona Nonprofits
p. 7 What Businesses Should Know About Working With Nonprofits p. 8 Economic Impact Study Arizona Nonprofits: Economic Power, Positive Impact
Businesses can support the Alliance of Arizona Nonprofits and its member organizations in a variety of ways, including joining as a business member, becoming a sponsor, or making a tax-deductible financial contribution. For more information about how you can support the Alliance or about becoming an Alliance Member, contact Director of Membership Jennifer Blair at (602) 682-7593 or via email at JenniferB@ArizonaNonprofits.org.
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ALLIANCE OF ARIZONA NONPROFITS
Finding the Right Fit as a Board Member By Sharon Flanagan-Hyde Josiah happily served for six years as a board member of a social profit organization focused on homeless youth, the maximum allowed by the board’s term limit. He thought about transitioning to a volunteer direct-service role, but realized he truly enjoyed governance. He approached another social profit organization with a mission close to his heart and expressed interest in board membership. The board chair was thrilled to welcome a newcomer with solid board experience to their organization. Josiah was quickly nominated and elected to the board. Six months later, Josiah was on the brink of resigning. “For six years, I helped make big decisions,” he told a co-worker. “We talked about how our work fit into the big picture in our community, how we could influence policies that impact homeless youth. Now, the board is talking about where to position the registration table for the gala and whether to use balloons or flowers as centerpieces. None of the other board members see a problem. They’re excited about making these decisions.” What’s going on here? The problem is a mismatch between Josiah’s “sweet spot” as a board member and the lifecycle stage of the organization. Susan Kenny Stevens, Ph.D., author of Nonprofit Lifecycles, identifies seven stages of lifecycle capacity. The homeless youth organization sounds like it’s in the maturity stage, and the second likely is in the start-up stage. Although the legal responsibilities of board members are consistent across organizations, the actual work of the board is highly stage related. Each stage has characteristic strengths and challenges. There’s no judgment in this. A start-up’s boundless passion, the sprinting to keep up during the growth stage, and the steady leadership of maturity are all great places to be as a mission-driven organization. A key to building a successful board, often overlooked, is matching the organization’s current lifecycle stage to the temperaments and preferences of board members. Idea and
2
ALLIANCE OF ARIZONA NONPROFITS BOARD OF TRUSTEES BOARD CHAIR Pam Gaber Gabriel’s Angels VICE CHAIR: Kelly McCullough Arizona PBS SECRETARY: Ellis Carter Carter Law Group TREASURER: Ron Stearns CliftonLarsonAllen Rhonda Bannard Inspired Connections
start-up stage organizations, lacking a deep bench of paid staff, often welcome a board member with a CPA who is willing keep the books and a marketing expert who offers to create a communication and marketing plan. These “jump in and do it” folks may be frustrated if they find themselves on the board of a mature-stage organization; their offers to work side-by-side with the professional staff will be perceived as micromanaging. Josiah’s lesson learned is that he is most comfortable and useful as a mature stage board member. His board colleagues who enjoy handling the details of the gala bring much-needed value to the start-up organization; without their hands and hours, the work won’t get done. Social profit organizations and prospective board members are wise to ask the question, “What is our current lifecycle stage and how does that impact the attributes needed in board members?” The answers — hands-on workers, generative thinkers, strategic visionaries and a host of other attributes — can provide guidance to boards recruiting new members and to potential members seeking a good fit. Sharon Flanagan-Hyde is senior partner with Flanagan-Hyde Associates, LLC, a Lifecycles Master Consultant, and a BoardSource Certified Governance Trainer.
Sonia Perillo Audubon Arizona with the National Audubon Society Amy Schwabenlender Valley of the Sun United Way Len Gutman American Heart Association/ American Stroke Association Sarah Jones Parkinson & Movement Disorder Alliance Karl Gentles Back to School Clothing Drive Glenn Wike Arizona Community Foundation Madeleine Coil United Way of Yuma County, Nonprofit Leadership Council Chair Kristen Merrifield, CAE Alliance of Arizona Nonprofits
WWW.ARIZONANONPROFITS.ORG
On The Board and In The Spotlight: Profile on Nonprofit Board Member Samantha Hagan How long have you served on this board? May 2016 will be 6 years
Name: Samantha Hagan Company: Christophel & Hagan, Ltd. Job Title: CPA/Partner Board: Gabriel’s Angels Board Title: Board Chair
What drew you to this organization? A client told me about Gabriel’s Angels and their CEO Pam Gaber, so I reached out to meet her for coffee. At the time I was looking to join a local board; I wanted to find the right fit for me and believe in the mission of the organization. Once I met Pam and heard the story of Gabriel’s Angels I was immediately in love. I wanted to be involved. What would you say is one of the biggest challenges for a businessperson serving on a nonprofit board? Balancing your work, personal life, and your board schedule. For me, being a self-employed CPA mostly focused on tax work, there are definitely challenging times of the year. How did you overcome that challenge? Just planning ahead, making sure my calendar was updated for the board year with all my board meeting times, committee times, and any other
scheduled activities for the board. Once I did that, I could normally schedule other things around my board duties and I never felt overwhelmed. Life does happen sometimes, so when it does and I can’t make a meeting I don’t get too stressed over it. What about the biggest opportunity? For me it was taking on a leadership role on the board for Gabriel’s Angels. I had never been on a board before or as an officer, so it was an amazing opportunity. What do you wish you had known before joining the board? How much I would really love the organization I was working with and the people involved. Whether it was my fellow board members, the staff at Gabriel’s Angels, donors, or anyone involved in the organization, it is really life changing. What do you feel your greatest accomplishment has been during your time on the board? Being able to serve in the leadership
of the board, I was blessed enough to serve as treasurer, vice chair and board chair. Also the relationship I have with the board and with Pam Gaber. What would you say to someone considering joining a nonprofit board? Research the organization, make sure it’s a mission you believe in and are passionate about. Another important item is that the organization is well run like a business. Make sure the timing is right for you, that you can stay engaged as a board member, and don’t be afraid to take on a leadership role even if you have never done it before, like me. Anything else you’d like to share? I never knew how much joining Gabriel’s Angels would change my life in such a positive way. I love the joy that it has given me in a way I never experienced before. If you are thinking about joining a nonprofit board like Gabriel’s Angels, don’t hesitate to make it happen!
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ALLIANCE OF ARIZONA NONPROFITS
Fact or Fiction: Nonprofit Myth-Busters By Kristen Merrifield, CAE; Alliance of Arizona Nonprofits CEO Debunking myths about nonprofits is probably one of my favorite parts of this job. There is so much misinformation being shared (and believed) by not only nonprofits themselves, but also the community at large. As citizens, board members, volunteers and donors, it is important that you are as informed and knowledgeable as possible on a few of the major misconceptions about nonprofits. In each of these sections, we will bust open a major myth and help ensure that we are all empowered to continue making a huge impact for our communities, our cities and our state. Myth: Nonprofits cannot be involved in public policy, advocacy or lobbying. Fact: Nonprofits can, and should, be involved in each of these activities in order to have the greatest impact. What nonprofits cannot and should not do is endorse candidates. However, a nonprofit can spend as much as it wants on voter education and encouraging people to vote
so long as it remains “nonpartisan” and does not support or oppose a candidate for elective office. It is also a myth that you can’t lobby if you’re a nonprofit or are receiving government or private foundation dollars. In fact, nonprofits have historically been the advocates and protectors of our democratic process. The nonprofit sector is the primary sector in our society that is mandated to help fight for people’s rights and to support issues of human rights and social justice. First, let’s define the terms (knowledge is power!) • Advocacy — Public support for, or recommendation of, a particular cause or policy. • Public Policy — The principles, often unwritten, on which social laws are based. • Lobbying — Seeking to influence, in this context a public official or politician, on an issue.
connecting
REAL people with
www.readbetterbebetter.org facebook.com / readbetterbebetter
REAL
careers
twitter.com / readbetteraz
via
HIRING
companies
@readbetteraz
and
QUALITY
resources For more information about the program, or to find out how you can help, please contact Sophie Etchart, Founder & CEO of Read Better Be Better at sophiee@readbetterbebetter.org or (623) 229-7880.
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CareerConnectors.org 480.442.5806
CareerConnectors is a 501 (c)(3) non-profit organization
WWW.ARIZONANONPROFITS.ORG
Federal tax laws already allow every charitable nonprofit to engage in some legislative lobbying activities. There are spending limits and technicalities that curb nonprofits from spending all of their time and money engaged in legislative lobbying, but knowing your rights ensures your organization’s participation in the public policy process. Learn more by researching what is known as the 501(h) election. Shockingly, only 1 percent of registered nonprofits report any involvement in advocacy and public policy, spending an average of $8,000 per group, per year. While at the same time, private corporations are spending billions of dollars each year to support their causes. Unless we as a sector start significantly engaging in public policy, we will continue to lose resources. Our voice must be heard! We must first view advocacy as part of our missions. This is a key point that we cannot forget. Our mission statement doesn’t have to specifically say “we advocate” but should be present in our thought process. The Alliance mission is to unite, strengthen and advance Arizona’s nonprofit sector. Advocacy is really part of all three of those initiatives. We can’t solve major problems such as poverty, homelessness or lack of access to healthcare through “private sector charity.” These are public policy issues, and we must form a partnership with government, where the majority of dollars come from and mobilize our constituencies to make sure our voices are heard. An organization’s leadership, especially its board, needs to lead the advocacy and public policy effort with passion, commitment and courage. There are an estimated 20 million individuals serving in board positions at nonprofits across the U.S. who are among the most influential, dedicated and connected leaders. Advocacy is a powerful lever for real impact, but — according to BoardSource’s Leading with Intent (leadingwithintent.org) report — only 33 percent of organizations report that their board members are actively involved in advocating for their missions. And most organizations aren’t advocating at all. It’s time to find our voice. It’s time to stand for our missions. Join us! Ways to get involved and start the conversation: Review the Stand for Your Mission website at www.standforyourmission.org Join the Alliance and participate in our Nonprofit Policy Council; details at www.arizonanonprofits.org
The Nonprofit/For-Profit Connection: Experience Matters and Intel Throughout his entire 26-years with Intel, Jim McNerney had a secret passion — the blues! He built his career in programming, and he did it well; working as part of a global team, Jim contributed to the initial development Jim McNerney and Regina Nixon and testing of nextgeneration cable modems. But what really made his heart sing was music. After 26 years with Intel, the company offered him a unique early retirement opportunity. Through a partnership with the nonprofit Experience Matters, Intel would pay for Jim to work on a highly skilled project for one year as an Experience Matters Encore Fellow instead of going straight into traditional retirement. Jim jumped at the chance, and what followed next was a perfect match. Phoenix Conservatory of Music (PCM) had talented musicians who needed recording space but lacked the budget and technology to make it a reality. As an Encore Fellow at PCM, Jim was able to combine his love for music and his skill with technology to bring their dream of their own recording studio to life. He did what he does best: he improvised and innovated. With donated equipment, a lifetime’s worth of know-how and the help of an intern, Jim created three new recording units. Students can now make the recordings they need for college applications, and they can even record and sell their own music. According to PCM Executive Director Regina Nixon, “Without Jim and his technical expertise and passion, coupled with the funding and resources that Experience Matters coordinates and supports, Phoenix Conservatory of Music would not have been able to get this project off the ground!” When you visit PCM, be sure to check out the new studios. And while you’re there, keep an eye out for a brand-new student who is just a bit older than the others. That’s Jim, who now studies piano at PCM, fulfilling a lifelong dream of his own.
5
ALLIANCE OF ARIZONA NONPROFITS
By Carl Jimenez, Communications Manager, Alliance of Arizona Nonprofits Arizona Gives Day is a 24hour online campaign created to unite people throughout Arizona in the spirit of giving. On Tuesday, April 5, thousands of Arizonans visited azgives.org to make financial donations to the nonprofit organizations and causes that matter most to them. In this single day of giving, people from Page to Nogales and from Lake Havasu City to Fort Defiance, opened their wallets to show their support for the work of Arizona’s nonprofit community. Hopes were high heading into this year’s Arizona Gives Day, as hundreds of new organizations had signed up, inspired by the success of last year’s event which raised more than $2,000,000 in one day. At the Alliance of Arizona Nonprofits offices, our staff spent the entire day taking calls, responding to emails, and watching the results roll in live on a huge projection screen. The day started out strong, with more than $300,000 of pre-scheduled donations kick-starting the numbers in the wee hours of the morning. By 10:45 a.m., a major milestone was reached, and a cheer went out, as the counter crossed the $1,000,000 mark. The excitement of friendly competition among the participating nonprofits continued to push that number higher throughout the day as they vied for a portion of the $175,000 in bonus prize money up for grabs to those nonprofits that raised the most money in a variety of categories. By the time it was all said and done, just after midnight, as we took down the big screen and turned out the lights, Arizonans had donated at an astonishing rate of $30 per SECOND, every minute of every hour of the day, to raise a record-breaking $2,600,000 for Arizona’s nonprofits.
Community partners that make Arizona Gives Day possible. Presenting Partner: FirstBank
In-Kind Promotional Partners:
Platinum Partner:
Arizona Nonprofit Academy
Arizona Community Foundation
ASU Lodestar Center
Gold Partners: BHHS Legacy Foundation Thunderbirds Foundation Silver Partners: Freeport-McMoRan Hickey Family Foundation Intel Tucson Electric Power Virginia G. Piper Charitable Trust Vitalyst Health Foundation Copper Partners: Community Foundation for Southern Arizona
Arizona PBS Bashas’ Frontdoors News GivingHopeAZ Magazine In Business Magazine Marketing Partners: Highway Twenty Bolchalk FReY Printing Partner: O’Neil Printing Founding Partners: Alliance of Arizona Nonprofits Arizona Grantmakers Forum
The Keith Family Fund SRP
Valley Nonprofit Leaders Receive Recognition from their Peers The Organization for Nonprofits Executives (ONE), serving nonprofit leaders in the Greater Phoenix area, recently announced the recipients of the 14th Annual Nonprofit “Director of the Year” Awards at its annual Nonprofit Leader Day event held on Tuesday, March 29, at the Desert Willow Conference Center. The awards, consisting of original custom artwork, were presented by ONE President Tom Egan of FSL and Bob Cox of event sponsor Nothing But NET, with the assistance of Mike Russell of KTAR as Master of Ceremonies. Each year these awards seek to recognize nonprofit CEOs/executive directors who are outstanding examples of certain principles ONE values as representations of excellence in the management and leadership of nonprofit organizations in Maricopa County, Arizona. This year’s Community Partnership Award recipient is Darren Chapman, founder and CEO of TigerMountain Foundation in Phoenix. The success of TigerMountain Foundation’s community gardens in helping at-risk teens and unemployed
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adults is a testament to Darren’s experience, leadership and credibility. He persuaded other nonprofits to join together to acquire and cultivate Spaces of Opportunity through the Cultivating South Phoenix coalition. Christy Moore, president and CEO of Valley Leadership, is the recipient of this year’s Organizational Accomplishment and Innovation Award. Recognizing a need for additional leadership offerings, Christy added programs to fill gaps without duplicating offerings from other leadership development agencies. A confident consensus builder, Christy not only improved the impact of her organization by implementing these new programs and rebranding, but she also expanded her own strengths as well. ONE’s Leader of Distinction Award is presented annually to a leader with 10 or more consecutive years of experience as chief professional officer of a Maricopa County nonprofit who has exhibited qualities of outstanding leadership for a sustained period of time. This year’s Leader of Distinction
Tom Egan, Christy Moore, Darren Chapman, Dee Mitten
is Dee Mitten, executive director of Waste Not. Dee is the ultimate leader, unafraid to deal with all segments and people involved in the rescue and delivery of fresh food to those in need. Her pure, unbridled energy is contagious. She is committed to quality work, motivating those around her, both staff and volunteers, with grace and determination as she fearlessly overcomes challenges and forges new partnerships to further her organization’s impact on the community. Additional sponsors include Wells Fargo Bank and Mutual of America. For more information about ONE visit oneaz.org.
Photo: Ben Arnold Photography
Arizona Gave!
WWW.ARIZONANONPROFITS.ORG
Working With Nonprofits: What is something you think other businesses should know about working with nonprofit organizations?
Lee Farr, Comerica Bank For Comerica Bank, investing in community nonprofits, through charitable grants and active volunteerism, is critical to both our success and the economic success and viability of the communities we serve. Supporting the nonprofit sector not only makes good business sense, but it’s the right thing to do to help those around us be successful, and to raise the expectations of what a bank can be in the community.
Chris Cioffi, TeamLogicIT Nonprofits require all of the same types of services for-profit companies require. What makes working with nonprofits rewarding, other than supporting the good work they do, is they are open and very appreciative of your consulting and advice; when they’re happy with the service you provide, nonprofits are well networked and happy to spread positive referrals about your company.
Kathy Foster, Colliers International Time and Talent is just as valuable as a check and it guarantees dividends within your workforce. Millennials prefer the experience of individual and group skill-based volunteering. They want to see the benefit and make a difference in the community. When a company helps a nonprofit, it is also helping itself. It creates a culture of community, engages and retains employees, and helps with recruiting.
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7
ALLIANCE OF ARIZONA NONPROFITS
Arizona Nonprofits: Economic Power, Positive Impact Nonprofits contribute more than $22 billion to our state economy A new statewide study examined the economic impact of Arizona’s nonprofit sector and a report titled “Arizona Nonprofits: Economic Power, Positive Impact” reveals the sizeable contribution that Arizona’s large and diverse nonprofit sector makes to everyday life and to the prosperity of our state. The findings debunk the perception that nonprofit organizations are a small component of the state economy, instead revealing a thriving and diverse network of social-purpose organizations — some 21,000 strong — that are a powerful economic driver. In each issue, we highlight one of the key findings of the report.
Nonprofits’ economic contribution on par with the entire retail and construction trade in AZ In 2014, the nonprofit sector contributed 8 percent, equal to $22.4 billion, to Arizona’s Gross State Product (GSP), positioning its contribution on a par with the state’s entire retail trade. Arizona’s 21,137 registered nonprofits collectively generated approximately $28 billion in revenue, approximately on a par with the annual revenue generated by the construction sector in the state. Arizona nonprofits hold assets of $48.7 billion. Despite being exempt from corporate income tax, nonprofits directly and indirectly generated approximately $2.1 billion in state and local taxation in 2014 — that is, 9.5 percent of all state and local sales tax revenue. The impact of the nonprofit sector on the state economy is far greater than its total direct spending on payroll and program and service delivery. Its direct spending starts a chain reaction of indirect and induced spending, when workers either directly or indirectly associated with the nonprofit’s program or service delivery spend their incomes in the local economy, when suppliers place upstream demands on other producers, and when state and local governments spend new tax revenues. The figure below demonstrates the ripple effect of nonprofit employment and wages on the larger economy, as economists understand it and use it in their calculations. The research was conducted by ASU’s Seidman Research Institute in partnership with the Alliance of Arizona Nonprofits, ASU Lodestar Center for Philanthropy & Nonprofit Innovation and The Phoenix Philanthropy Group. Funding was provided by the Arizona Community Foundation, APS and the Industrial Development Authority of Maricopa County. To download a free copy of the report, visit www.aznonprofitimpact.org.
Alliance of Arizona Nonprofits Staff Kristen Merrifield, CAE Chief Executive Officer KristenM@arizonanonprofits.org (602) 279-2966 x14 Jennifer Blair Director of Membership JenniferB@arizonanonprofits.org (602) 279-2966 x20 Marissa Fabel AmeriCorps*VISTA Program Coordinator MarissaF@arizonanonprofits.org (602) 279-2966 x19 Roxanne Gradillas AmeriCorps*VISTA Team Lead RoxanneG@arizonanonprofits.org (602) 279-2966 x18 Carl Jimenez Communications Manager CarlJ@arizonanonprofits.org (602) 279-2966 x16 Jacki Presnal Administrative Coordinator JackiP@arizonanonprofits.org (602) 279-2966 x10 Jennifer Purcell Director of Community Engagement JenniferP@arizonanonprofits.org (602) 279-2966 x17
Alliance of Arizona Nonprofits 360 E. Coronado Road, Suite 120 Phoenix, AZ 85004 Phone: (602) 279-2966 www.ArizonaNonprofits.org
8
The Courage to Thrive
About Us
by Rick Murray, Chief Executive Officer, ASBA
The Mission of the Arizona Small Business Association is to be THE statewide resource for small business. Business owners join ASBA for the convenience and efficiency of our products and services, to engage and advocate for public policy that ignites small business growth, and to foster a positive economic direction for Arizona powered by entrepreneurism. By bringing thousands of small businesses together, ASBA has created greater value for all members and is proof positive that our mission of supporting small businesses through an active and connected community is working. Join ASBA. Be amAZed
®
Once a frontier state specific to mining and agriculture, Arizona has since thrived over the decades, now home to more than 400,000 registered small businesses in industries such as technology, medicine, finance and real estate. With Phoenix ranked as 14th in start-up companies1 we are seeing more and more small-business owners relocate to Arizona to get their small businesses off the ground. As encouraging as this is, we know as small business owners that running a small business can be tiring, hard work and even discouraging at times. After all, 8 out of 10 small businesses fail within the first 18 months2. What does it take to beat that statistic? What type of team should you be building
In This Issue
to have a business that is not just successful, but booms?
2
close-knit group of hard-working and dedicated individuals. Creating the right team for your
3 4 5 7
How to Improve Your SEO Score and Why You Need to Do It
When I look at my team here at the Arizona Small Business Association (ASBA), I find a business is the most important thing you can do for your company. Without a cooperative and effective team, your business goes nowhere. Qualifications of each teammate are
Shopping for Health Insurance
important, yes, but that is not all that should be considered when hiring. The culture of
Made Easy
your environment is equally as important. A successful team is one that encourages and motivates one another, celebrating successes, and getting back up from losses together.
Tips for Managing Generation Z
Choosing team members with skills needed, but also strengths and weaknesses that align
Employees in the Workplace
with the culture you endeavor to create, is vital.
Networking Should Be Worthwhile, Not Work Why DIY Estate Planning Is a Bad Idea for the People You Love
Central Arizona 4600 E. Washington St., Suite 340 Phoenix, AZ 85034 p. 602.306.4000 Southern Arizona 3444 N. Country Club Rd. Suite 118 Tucson, AZ 85716 p. 520.327.0222 © 2016 ASBA. A publication of the Arizona Small Business Association. For more information or to join ASBA, please contact us at www.asba.com. Section designed by the Arizona Small Business Association.
It’s not uncommon for the typical “what do you do” question to come across as you go to events and make contacts. What I have learned over the years is to stop answering. More specifically, share your story or your purpose for why you do what you do. People connect better to emotions, making it so important that you are clear on aspects such as your values and mission statement. More importantly, as business owners, we have to ensure that our team also understands our purpose as an organization. A good team and leader understands how all of the tiny, day-to-day pieces fit into your larger picture. Whether or not you consider yourself to be in a fairly standard industry, creativity has the means to take you to a completely different level in your business. Innovative thinking on a daily basis is one of ASBA’s goals as we try to continuously improve what we’re doing. Changing the way you market yourself, spicing up your current events, or even just updating your documents and filing systems, can do wonders. Instill this in your team. Innovative thinking involves risk. It demands taking chances and the willingness to fail in order to learn better for next time. It takes the courage to thrive, and courage in all areas is what makes you successful. 1. Metropolitan Area Rankings for Startup Activity (2015) Ewing Marion Kauffman Foundation 2. Five Reasons 8 out of 10 Businesses Fail (2013) Forbes.com
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Hot Stuff
BOARD OF DIRECTORS
Make sure you and your car are ready for summer By Valerie Vinyard, AAA Arizona
It’s never a good day when
Nick Petra | Chair Strategic Duck Ben Himmelstein | Past Chair The Frutkin Law Firm Jamie Low | Secretary Low & Johnson Business Insurance
your vehicle breaks down. When it’s 100-plus degrees,
David Bones | Treasurer Kenrich Group
however, the inconvenience becomes a possible danger. As an automotive resource,
Jason Trujillo | Board Development Principal Financial Group
AAA encourages motorists to stow a breakdown kit in their
Mike Leeds | At Large Pro Sales Coaching, LLC
vehicles and have a breakdown plan so they’re prepared for many things that might go wrong.
Chris Compton Blue Cross Blue Shield of Arizona
“Think of it as your own preventive maintenance,” said John Walter, director of automotive repair and
mile markers or signs, and your direction
fleet operations. “Arizona’s extreme summer
of travel.
temperatures put cars to the test, making it
• Stay with your vehicle at all times, as long
imperative for motorists to prepare their vehicle
as it is safe to do so.
and to have a breakdown plan in place.”
• Know your roadside coverage. AAA, for
The oppressive heat during the summer months
example, offers mobile battery service and
can wreak havoc on car batteries, belts and
replacement with a 72-month warranty with
hoses, and result in cooling systems overheating.
no mileage limit, while other carriers do not.
In the event that you experience a
Some providers charge for full or partial service
roadside failure, AAA’s Roadside Assistance
and require payment up front, before service
experts recommend drivers adhere to AAA’s
is rendered. However, this is not the case
Breakdown Plan:
with AAA, as roadside assistance service is
• Turn on four-way flashers and pull
included with membership. Being in the know
completely off the roadway, freeway or
with details can help you avoid situations that
highway, if possible. If you are unable to do
cost time and can break the bank.
so, pull the vehicle to the far right side of the
2. Utilize available resources. If you do not
roadway, on the right side of the solid, white
have an emergency roadside provider and are
line. Do not pull into, or stop in, the gore area,
traveling on a freeway in the Phoenix-Metro
which divides the exit from the roadway.
area, call the Department of Public Safety’s
1. If you cannot exit the roadway, remain
Freeway Service Patrol (http://bitly.com/
buckled in your vehicle. Call AAA or your
freeway_service), a AAA-sponsored service
emergency roadside provider. Downloading
where officers help motorists in need.
the AAA Roadside app (http://bitly.com/
• Have an emergency car care kit on
aaa-roadside-app) onto your smartphone
hand. The kit, which should be stowed in your
enables AAA members who require roadside
vehicle at all times, should include basic repair
assistance to send their vehicle description,
tools, jumper cables, flashlight, batteries, duct
location and breakdown details directly to AAA.
tape, safety vest, first-aid tools, drinking water
• If you feel that you are in danger, let
and non-perishable food items. Drivers also
the dispatcher know immediately. Or, if your
should travel with a cell phone and charger to
vehicle is stopped on the travel portion of the
call for help.
roadway, call 911. • Know your location in order to speed up help. Pay attention to the last exit on a freeway,
2
AAA is a go-to source for automotive information. Go to aaa.com/auto.
Rick Danford BMO Harris Bank Kristi Gauthier Clark Hill Brannon Hampton Arizona Public Service Patrick Harter Provision Team, Inc. Allan Himmelstein Sales Coach AZ Patrick Lopez MPG Automotive Jack Lunsford The Lunsford Group, LLC Ryan McMullen RSI Enterprises, Inc. John Ragan Arizona Chamber of Commerce & Industry Jess Roman Johnson Bank Jonathan Rosenberg Levrose Commerical Real Estate Kerry Stratford The Caliber Group Andrew Westle Gurstel & Chargo
Make Banking Part of Your Business Strategy By Nate Bibens, VP Treasury Solutions, UMB Bank
Optimism is on the rise among business owners and, as the economic recovery continues, businesses are ready to grow by expanding operations, hiring new talent and purchasing new equipment. They are also searching for new strategies, financing options and ideas for better market penetration. As part of a growth plan, one of the best advantages a business can have is its banker. An experienced banking partner should understand every aspect of your business and offer solutions that allow you to expand operations, create efficiencies and generate more revenue.
How Does Your Cash Flow? Most business owners talk about the importance of cash flow, but not many go deep into the process and determine how to make it better. Businesses need to ask questions such as: How many days does it take to collect on receivables? How long are you paying on collectables? Are you getting discounts for paying early? Many companies operate inefficiently, whether by duplicating internal processes or taking unnecessary extra steps to receive money. It costs $2 to $5 to mail a check, whereas sending an Automated Clearing House (ACH) payment costs less than $1. Businesses need to review how much time it takes to print, stuff and mail a check versus using a card or ACH payment. By working closely with a banker, businesses can gain cash flow relief and create better operational efficiencies. Bankers can also help business owners create a profitable and logical cash flow system.
Risk Management and Efficiency Anything businesses can do to manage risk can benefit their bottom line. This includes having dual controls with employees, performing regular inventory checks, having different people sign off on checks, and creating a manageable process to detect and
deter internal and external fraud. Frequently, risk factors can be mitigated simply by paying attention to everyday details. Risk efficiency is something you should
commercial cards and reconciliation. Purchasing cards are one item to consider from a processing standpoint. Selecting the right program can reduce check writing and
also consider discussing with your banker as
provide increased flexibility in cash flow.
it relates to items such as outsourcing payroll
Additionally, it creates a more streamlined
or return collections. Often, businesses can
tracking system for accounting departments.
outsource certain functions to save time and
By allowing job numbers to be attached to
money. For companies with large receivables,
specific expenses, companies can easily
it may be more efficient to have a lockbox or
allocate costs to the appropriate projects,
outsourced collection system.
which results in more effective planning
Creating Operational Efficiencies By understanding cash and business cycles, bankers can help a business create operational efficiencies in several areas, including payments, cash flow cycles,
and budgeting. By working closely with an experienced banker, businesses have the opportunity to create efficiencies that can lead to an improved bottom line and a positive outlook for future growth.
3
Are you focused on ‘Base Hits’? By Mike Leeds, Pro Sales Coaching, LLC
Baseball season is in “full swing,” and there are some great comparisons to the sales world. Baseball coaches will consistently tell you that base hits win baseball games. Home runs are nice when they happen, and they look great on sports highlight shows. However, statistically speaking, they are much harder to hit. If you’re trying to hit a home run, you have a greater chance of striking out or hitting a fly ball to an outfielder. Part of this is mental, but physically the baseball swing also may be altered to hit the ball over the fence. Base hits, by comparison, are much easier to obtain, and multiple base hits in an inning tend to result in runs being scored. Coaches refer to this as “putting the ball in play” (hitting a line drive or ground ball). Fielders will also tell you that it’s harder to catch a line drive or ground
sales pipeline with all sizes of sales opportunities, but dominated by
ball than it is to catch a fly ball.
small and mid-sized opportunities. There are a lot more “base hit”
Converting this topic to sales has tremendous merit as well. Many
sales opportunities out there, and the sales cycle may be considerably
smaller sales can equal a large sale. In my experience as a sales
shorter than larger opportunities. Additionally, building loyalty with
coach and sales manager, I have seen countless salespeople struggle
these customers may lead to additional sales over time (both large and
with this concept. They put “all their eggs in one basket” hoping for
small). Some larger sales develop as a result of several smaller sales.
the “big one” to come through. If it does, they are rock stars. If not,
The “home run” sales will come (sometimes when you least expect
they have nothing to show for their efforts. Concentrate on a balanced
them), but don’t count on them to “make or break” your sales year.
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4
Hiring, Retention and Development: Staffing Your Organization By Charles Parnell, Senior Strategic Partner, HPISolutions
The discourse in the workplace continues to suggest that the economy is improving. We see evidence of this because of the increase in hiring in all sectors — public, private and healthcare. We know this is a challenging experience. Hiring people is time consuming and expensive. Managers believe that this activity takes them away from their responsibility of getting out production. Even if managers have a human resources department that does much of the work in seeking new employees, managers must be actively involved in the hiring process. They have to be involved in determining the qualifications the new employee must have to succeed in their jobs. In the attempt to staff the organization, managers make hiring errors that cause them to hire the wrong job candidates. These are costly in terms of time, energy, effort and money — especially in re-training and recruiting costs. Here are some hiring errors that organizations frequently make:
• Hiring candidates on their ability to GET THE JOB not
• Using outdated job descriptions — job descriptions must be
DO THE JOB.
current and reflect the critical duties that must be performed for the
• Overvaluing presentation over performance.
job occupants to be successful — key accountabilities
• Hiring candidates with good interviewing skills — this can
• Establishing unrealistic specifications — establishing job
result in excluding the best candidates.
requirements that cannot be met and are not necessary for the
• Failing to validate past performance — the best predictor of
successful execution of the job duties.
future performance is past performance. You must ask questions
1. Hiring just to fill a vacancy because of “perceived
that determine if they can do the job. Use behavioral and
pressure” — it routinely results in hiring the person who cannot do
performance-based interviews.
the job.
• Hiring or failing to hire based on stereotypes and/or
• Hiring a mirror — hiring people who mirror you in behavioral
biases — you could exclude superior applicants.
style, education (degree type and school) and experience.
• Failing to overlook the intangibles — when making a hiring
• Using limited recruiting sources — broaden your recruiting
decision, it’s extremely important to evaluate the intangibles. Too
sources to maximize the prospects of getting an increase in the
often, the employer limits the selection procedure in determining
number of quality applicants.
whether the applicant is technically qualified. Many interviewers
• Failing to look internally for qualified hires — a promotion is
overlook such factors as ability to work in a team, communicate
an internal hire. It will demonstrate your principle and commitment
ideas, work under pressure, flexibility and countless other factors.
to upward mobility. • Failing to write “sizzling” ads — candidates of superior talent
As we move further into this century and beyond, the competition
want to join an organization where they can learn, do and become.
for superior talent will be challenging. We can maximize the process of
Your ads must reflect this.
hiring the right person for the job by avoiding the foregoing activities.
5
The IT Challenges of Business Success By Eric Sables, IT Strategic Partners
Congratulations! You’ve worked hard and have now moved from a “startup, small business” to a “medium-sized
Don’t panic, help is out there! Consultants specializing in IT strategy and operations can assist with almost every facet of creating a new IT
business” (100–999 employees). You’ve been able to outsource your
department from scratch, or selecting the best outsourcing company.
IT needs to a small service provider that has adequately fulfilled your IT
Consultants can provide insider insight that will give you the all-
requirements, and you expect that your supporting technology will keep
important first hire, which will be the foundation of future hires.
pace with your business goals. The “mom and pop” IT companies that supported you on your
There is another challenge that is often ignored until it is too late. Information technology has its own language, and each IT
way up may hinder you as you become larger. These small service
specialization is unique. Sometimes, you need a trusted translator who
providers often lack the experience and skillsets needed to create the
can speak the languages of IT and ask the questions that need asking.
IT strategies that will propel your company to the next level. So, now
This translation challenge is a two-way street. IT can misunderstand, or
what?
misinterpret the business requirements and waste precious resources
Being in this situation can be daunting. Some of the questions that you may face are: • Do I continue to outsource my entire IT, or insource some or all functions?
providing incorrect or sub-optimal solutions. An experienced consultant can provide universal translation services and set the tone for successful conversations moving forward. Once you’ve hired the core of your new IT department and
• What skills and IT functions do I hire first?
developed a culture of open communication between the business
• I’m not an IT expert; what skills do I ask for in a job posting?
and IT, you’ll be ready to create your new IT strategy and build your
• What do I look for when reviewing IT resumes and performing
technology roadmaps.
interviews? • How many IT employees should I have for the company of my size?
Your company will now be back on the path to success. Your IT department will become a business enabler supporting growth rather than an obstacle hindering it.
6_13013
75x4.875
Put your business on the road to sweet success
4C
Apply for a Wells Fargo Equipment Express® loan today Growing your business is how you’ll achieve the dreams you have for yourself and your family. Wells Fargo is here to help. Our Equipment Express loan is a flexible way to purchase the new or used vehicles or equipment you need to move your business forward. Stop by or call and speak to your banker today. Finance cars, trucks, trailers, commercial vehicles, or other business equipment
© 2014 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (1211586_13013)
6
Hacking Small Business Has Become Big Business By Matt Maggiora, TeamLogicIT
Large, well-fortified organizations and enterprises may not be as
— which they do at an alarming rate —
attractive to data thieves as they once were. You can thank better
hackers gain the entry they need to hold
training, bigger IT budgets and more effective security measures for
company data hostage, and demand
this welcome bit of news.
bitcoin or other forms of payment.
Things are less rosy for small companies, however. Shrinking budgets, limited resources, and lax or outdated security
In a related development, researchers at security software vendor Kaspersky
practices have now made SMBs the hacker’s preferred cyber-target,
caution that spearphish attackers are
says a recent New York Times post — a vulnerability confirmed by
(again) actively using Microsoft Office
recent industry stats.
Suite macros in email attachments
Symantec, for example, estimates that 60 percent of cyber-attacks are now aimed at small businesses. Verizon recently reported that 70plus percent of all data breaches were waged against firms with 100 or fewer employees. And though estimates vary about the monetary cost of data loss, experts agree even a relatively small-scale attack can be fatal for smaller companies.
Ransomware: The Weapon of Choice These days, “Credit card numbers are harder to monetize,”
(masquerading as scanned documents), to spread banking malware and Trojans.
Small Companies in the Crosshairs The main takeaway from the Times post is that no company is too small to be hacked. Just like street thieves, cyber crooks target those whom they perceive to be weak and defenseless. To protect your company and its data, contact an IT Managed Services Provider (MSP) today. MSPs are on the forefront of security planning and technology,
observes Intel Security Group GM, Christopher Young. Thieves have
and can help you develop an integrated strategy that includes
to obtain the numbers and sell them to others before they can make a
creating a security checklist, reversing bad password habits, training
profit. Ransomware, on the other hand, is “high volume and requires
employees, and reducing liability after a breach.
no middleman,” Young says. Once employees click on a malicious link
7
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2016
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ASBA STAFF LIST & TITLES
NA HER RIZO T U
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PHOTO RECAP Southern Arizona Legislative Update
Westin La Paloma Resort & Spa, Tucson
Rick Murray Chief Executive Officer Debbie Hann, VP, Finance + Administration Rhette Baughman Director, Business Development and Strategy Robin Duncan Director, Membership Joe Erceg Director, Southern Arizona Carol Mangen Director, Member Benefits Laura Bassett Member Services Manager Gabe Salcido Marketing Manager Ashley Vizzerra Communications Coordinator Nicole Shumate Administrative Coordinator
ASBA LOCATIONS: Central Arizona Office 4600 E. Washington Street, Suite 340 Phoenix, AZ 85034 p. 602.306.4000
Southern Arizona Office 3444 N. Country Club Rd. Suite 118 Tucson, AZ 85716 p. 520.327.0222
8
PRESENTS
Commercial Real Estate SPOTLIGHT ON THE BEST
CBRE Colliers International JLL NAI Horizon
SPONSORED BY
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COMMERCIAL REAL ESTATE IN OUR SIGHTS To complement the cover story (see page 20) of this Commercial Real Estate issue of In Business Magazine, which is dominated by the multifamily segment, we also share the following updates on the industrial and office segments.
Strong Absorption and Construction Bode Well for the Industrial Sector The Phoenix industrial sector started 2016 with a solid market performance, fueled by a robust finish to 2015. Net absorption is historically modest at the start of a new year and could indicate a strong year ahead. The construction pipeline remains steady, with a mix of spec and built-to-suit projects even with nearly 2 million square feet delivered in this quarter alone. Vacancy rates have not been this low since the first quarter of 2008, right when the economy was beginning to cool and nearly a year before the great recession began. Rental rates, however, remained flat overall this past quarter, with modest increases primarily in the Sky Harbor Airport and Southeast Valley submarkets. Leasing activity remains steady across most submarket clusters. “The most important trend in market activity over the past year is in smaller, multi-tenant properties,” says Matt DePinto,
senior research analyst with Lee & Associates. “Tenants in the market are mostly looking in the 5,000- to 15,000-square-foot range. With such strong demand, many spec development projects under construction Valley-wide are these types of buildings,” he adds. For example, the homebuilding industry is gearing up again and many homerelated businesses are leasing space in that size demographic. Conversely, activity remains much slower for medium and large tenants seeking 100,000 square feet or more. There is a glut of available space, mostly distribution, with even more under construction. The Southwest Valley distribution market bears most of the brunt of this market trend, with stubborn rental rates. Owners are looking for new ways to position these buildings by dividing spaces and creating other leasing incentives to draw foot traffic. The Phoenix Industrial sector finished the
quarter with an eight-year-low vacancy rate of 10.7 percent. The Northwest and Northeast submarket clusters enjoyed the lowest vacancies in the Valley, at 7.1 percent and 7.8 percent, respectively. The Southwest Valley has the highest vacancy, with 13.2 percent. Net absorption for the quarter was solid and settled at 1,633,655 square feet. Construction activity remains strong at 2,821,652 square feet. There were many projects delivered to inventory in the first quarter, totaling 1,929,733 square feet. Overall rental rates remained flat at $0.54 per square foot, per year. The Southeast Valley, however, saw a 4.6-percent increase while the Southwest Valley saw a 2.5-percent decrease. Information provided by Lee & Associates Arizona lee-associates.com/arizona/
PRESENTS
Commercial Real Estate SPOTLIGHT ON THE
BEST
CBRE JLL NAI Horizon
About this section: As part of our service to our readers, our editorial staff has invited these top commercial real estate companies to provide information on themselves, their expertise and details relating to their business in this Commercial Real Estate: Spotlight on the Best special section. The real estate market is improving and these companies are proven leaders in the Valley.
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Please visit www.inbusinessmag.com for more information and articles on the local real estate market.
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The Office Sector Exhibits Strong Fundamentals as 2016 Begins
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of new vacant space added to the market. More than 2.3 million square feet of office space (including 589,530 square feet of speculative space) is currently under construction in Greater Phoenix, with an impressive 75 percent of it preleased. Office employment sectors are driving Phoenix forward. Phoenix has experienced a much more diverse recovery during this economic growth cycle, steadily adding a healthy balance of jobs in contrast to previous cycles when the Valley would be flooded with construction employment. Office-using employment sectors continue to experience strong growth over the past year, recording an annualized net gain of 23,500 jobs (3.1 percent) across the metropolitan statistical area. Office employment gains Rd am tt D are translating into greater absorption of office space in some of the Valley’s rtle a B premier submarkets. Year-over-year employment gains were led by the Professional & Business Services category adding 16,100 jobs (5.1 percent) Rd ek Cre ave and Financial Activities categoryCgaining 8,600 jobs (5.3 percent).
nD r
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Absorption is steady with Phoenix’s continued growth. The Phoenix metropolitan area office market picked up where it left off at the end of last year. Built on a stable economic foundation of strong job growth and calculated construction, new office space is being absorbed almost as fast as it is being delivered. In the first quarter of 2016, a healthy 423,748 square feet of office space was absorbed in Phoenix, a 48.5-percent increase from one year prior. The total vacancy rate in the Valley has decreased 720 basis points from a peak of 28.1 percent set in the second quarter of 2011 to a low 20.9 percent at the end of the first quarter. Overall vacancy is expected to decline in 2016 as office-using employers continue to expand and relocate to the Valley. Construction continues as developers assess market. In the first quarter of 2016, 445,000 square feet of vacant speculative office space was delivered in Metro Phoenix, a 57-percent decline from just over m Way 1.0 million square feet of speculative space completed in the previous quarter. The total vacancy rate remained unchanged at 20.9 percent, is D a Merdian Dr with nearly 424,000 square feet of total absorption reducing the impact
MAY 2016
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COMMERCIAL REAL ESTATE
SPOTLIGHT ON THE BEST
CBRE CBRE is the leader in the Metropolitan Phoenix commercial real estate market, offering strategic advice and execution for property sales and leasing, corporate services, property, facilities and project management, mortgage banking, appraisal and valuation, development services, investment management, and research and consulting. Throughout its business lines, the Phoenix office has earned a reputation as a respected leader in the business community with vast market knowledge and an enduring culture of client service. CBRE believes that the truest measure of our success comes from providing superior service to our clients — delivered by knowledgeable, creative and tenured employees, many boasting more than 20 years in the marketplace. It is our dedication to teamwork and commitment to excellence that makes it possible to serve the diverse needs of our clients. Whether facilitating the design, construction and move of a new corporate headquarters or strategically planning and negotiating complex lease agreements, CBRE offers a fully integrated, global service platform to our clients, delivering seamless execution and measurable results.
Our commitment to customer service and innovative solutions is recognized throughout the industry. NAIOP Arizona named CBRE its Brokerage Firm of the Year and also honored our professionals with Office Brokerage Team of the Year, Healthcare Brokerage Team of the Year and Developing Leader of the Year awards for 2014. AZ Big Media recognized CBRE as its 2014 Industrial Sales Team of the Year as well. BOMA’s Arizona chapter honored two CBRE-managed buildings with TOBY awards, and the Phoenix Business Journal recognized CBRE as the No. 1 commercial brokerage, appraisal and property management firm in Arizona. The year 2014 was also the 16th in a row Ranking Arizona named CBRE its No. 1 commercial brokerage firm. CBRE is also considered a top employer in Arizona, regularly recognized as an outstanding place to work. CBRE has ranked as one of the Business Journal’s Best Places to Work nine of the past ten years, and BestCompaniesAZ named CBRE one of Arizona’s Most Admired Companies for the fifth consecutive time in 2014. In 2012, BestCompaniesAZ also included CBRE in its list of 100 Best Arizona Companies, recognizing CBRE among the Arizona businesses that shaped the state during the past decade.
PROFILE Company Name: CBRE Main Office Address: 2415 E. Camelback Road, Phoenix, AZ 85016 Phone: (602) 735-5555 Website: www.cbre.com/phoenix Number of Offices in Metro Phoenix: 1 Number of Commercial Agents: 110 City Nationally Headquartered: Los Angeles Sr. Managing Director and AZ Market Leader : Craig Henig No. of Years with Firm: 9 years Year Est. Locally: 1952 Specialties: Brokerage, Asset Services, Capital Markets, Debt & Structured Finance, Global Corporate Services
Craig Henig, senior managing director and Arizona market leader, and Cathy Teeter, director of operations, outside CBRE’s Phoenix office ADVERTISING PROFILE
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Unrivaled TalenT. UnmaTched resUlTs. Serving as trusted advisers to Phoenix’s most notable companies is a role we take seriously. Our professionals share an unwavering commitment to being a world-class real estate services company. A client-first culture and focused dedication to professional excellence are what make CBRE the leading provider of commercial property management, leasing services and investment sales in one of the country’s most vibrant real estate markets.
For more information on how CBRE can assist you with your real estate needs in Phoenix, please contact: Phoenix Office +1 602 735 5555
cbre.com/phoenix
COMMERCIAL REAL ESTATE
SPOTLIGHT ON THE BEST
JLL A member of the Fortune 500, JLL is a global professional services and investment management firm specializing in real estate. The company provides integrated services to clients seeking increased value by owning, occupying, developing or investing in real estate. More than 60,000 employees serve clients in 80 countries from 230 corporate offices. The Phoenix office of JLL (formerly Jones Lang LaSalle) was established in 2008 when JLL purchased the Staubach Company, a leading national tenant representation company. Former Dallas Cowboys quarterback and Super Bowl MVP Roger Staubach formed the Phoenix office of the Staubach Company in 2000. By 2008, that team had grown to 18 licensed brokers. Today, JLL Phoenix is one of the area’s top commercial real estate services providers employing more than 41 licensed brokers and 550 of the Valley’s most recognized industry experts. Together, this team has realized a full-service vision for its Phoenix operations that includes tenant representation, landlord representation, capital markets, consulting, project management and property and facility management. JLL’s integrated services are specialized for a variety of assets, including office, industrial, multifamily, retail and data centers. The expertise of JLL’s collaborative brokers spans a variety of industries, including e-commerce, financial services, food and beverage, healthcare, law, manufacturing and distribution, retail, and technology. JLL
professionals also have specialized experience in public institutions, ranging from government entities to universities to nonprofits. JLL’s innovative solutions are built on insight, market research and collaborative knowledge to help clients understand and navigate the intricacies of the constantly changing real estate world. Our local research team collaborates with more than 150 research professionals across the United States. Under the direction of office leaders Dennis Desmond and Pat Williams, the JLL Phoenix office completed 17.2 million square feet in lease transactions (valued at $812 million), sold $461 million in property value and directed $125 million in project management in 2015. The team currently manages a 16.4 millionsquare-foot portfolio. JLL earns recognition from clients, professional organizations and communities for its service, performance, culture and values. Recent recognitions include being named a World’s Most Admired Company by Fortune Magazine, an Ethisphere World’s Most Ethical Company, a CR (Corporate Responsibility) Magazine’s 100 Best Corporate Citizens, a Phoenix Business Journal 2015 Best Places to Work, an Arizona’s Most Admired Company and multiple honors as a NAIOP Brokerage Firm of the Year. For more information and market research, visit jll.com/phoenix or follow us on Twitter at @ JLLPhoenix.
PROFILE Company Name: JLL Main Office Address: 3131 E. Camelback Road, Suite 400, Phoenix, AZ 85016 Phone: (602) 282-6300 Website: www.jll.com/phoenix Number of Offices in Metro Phoenix: 1 Number of Commercial Agents: 41 City Nationally Headquartered: Chicago Managing Directors: Dennis Desmond and Pat Williams No. of Years with Firm: Desmond: 8; Williams: 16 Year Est. Locally: 2000 Specialties: Tenant Representation, Landlord Representation, Capital Markets, Project Management, Property and Facility Management
FINANCIAL: Property Sold in 2015 Value: $461 million Property Leased in 2015 Value: $812 million Commercial Transactions Closed in 2015: 602
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A collaborative team of experts built around you At JLL, we know each client has different needs. Our professionals, led by our local top producers, are committed to developing enduring relationships built on customized service and trust. Whatever your real estate needs, aspirations or asset type, our collaborative culture allows us to assemble the appropriate experts to provide you with the right market knowledge and insight to be successful. Let’s plan ahead, together. Featured 2015 top producers left to right: Pat Williams, Steve Corney, Andrew Medley, Anthony J. Lydon, Mark Bauer, John Bonnell, Marc Hertzberg, John P. Cunningham, Charles Steele, Dave Seeger, Karsten Peterson, Mark Gustin
jll.com/phoenix | Tenant & Landlord Representation ▪ Capital Markets ▪ Project Management ▪ Property & Facility Management Office ▪ Industrial ▪ Multifamily ▪ Retail ▪ Data Center
Gallagher & Kennedy The prime location for attorneys who know real estate law and how to get deals done.
DEALS WE DO Complex to routine transactions, including land use & zoning, litigation, construction, secured lending, leasing, acquisitions, sales, eminent domain/condemnation, valuation, distressed assets, refinancing, sale-leasebacks, permanent loans, tax planning, liquor licensing and land banking
FOR YOU Developers, home builders, contractors, lenders, landlords, tenants, investors, syndicators, owners, buyers, sellers and individuals
Lawyers. When Results Matter.
AND YOUR PROJECTS Mixed use developments, master planned developments, commercial, office projects, sports facilities, shopping centers, retail, industrial, multi-family, mini-storage and master sign plans ADVERTISING PROFILE
58 2575MAY East2016 Camelback Road | Phoenix, Arizona 85016-9225 | P: 602-530-8000 | www.gknet.com
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SPOTLIGHT ON THE BEST
COMMERCIAL REAL ESTATE
NAI Horizon NAI Horizon has been serving Arizona for more than 23 years, providing brokerage, property management and appraisal services for local, national and international clients. We are proud to be the local representative of NAI Global, which is the single largest, most powerful global network of owner-operated commercial real estate brokerage firms. Founded in 1978, today NAI Global has more than 375 Phoenix headquarters offices worldwide, with more than 6,700 local market professionals, managing more than 380 million and service that only owner-operated, marketsquare feet of property. leading firms can provide. Our member firms are owner-operated and With locations in both Phoenix and Tucson, local market leaders, deeply rooted in their NAI Horizon is well-equipped to service clients communities around the world. We call this the throughout Arizona, and connected to markets “Power of Collective Independence”: independent all over the world. You can feel the pride we take firms collectively united to achieve extraordinary in our relationship with you, and how important results through creativity, collaboration and the your business is. At NAI Horizon, our global consistent delivery of exceptional knowledge strength is built on our local leadership.
PROFILE Company Name: NAI Horizon Main Office Address: 2944 N. 44th Street, Suite 200, Phoenix, AZ 85018 Phone: (602) 955-4000 Website: www.naihorizon.com Number of Offices in Metro Phoenix: 1 Number of Commercial Agents: 50 City Nationally Headquartered: Phoenix CEO/Managing Director: Terry Martin-Denning No. of Years with Firm: 23 years Year Est. Locally: 1992 Specialties: Retail, Office, Industrial, Land, Investment
Knowledge Solutions are built on it. Success depends on it. At NAI Horizon we listen, we learn, we lead.
We’ve got this. NAI Horizon knows commercial real estate. With over 23 years in Arizona, NAI Horizon’s extensive market insight allows us to match client needs with the right solutions.
www.naihorizon.com
Brokerage • Property Management • Valuation
Phoenix | 602 955 4000
Tucson | 520 326 2200
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INBUSINESSMAG.COM
Anaya, Catherine, 29
Fasulo, Bryan, 20
Martin-Denning, Terry, 59
Sande, Alvaro, 10
Barry, Jack, 29
Flanagan-Hyde, Sharon, 36
McDonnell, Carlynne, 66
Schoenebeck, Darcey, 16
Bibens, Nate, 45
Foster, Kathy, 41
Merrifield, Kristen, 35
Silver, Leon, 18
Cassidy, Brian, 20
Furnham, Adrian, 27
Michaels, Michele, 11
Smith, Tom, 27
Chamberlain, Chris, 10
Govig, Todd, 29
Michelli, Joseph A., Ph.D., 26
Stapp, Mark, Ph.D., 20
Chapman, Darren, 40
Haan, Russ, 28
Mitten, Dee, 40
Tilton, Dan, 20
Cioffi, Chris, 41
Hagan, Samantha, 37
Moore, Christy, 40
Tollefson, Richard, 28
Connors, Roger, 27
Henig, Craig, 54
Murray, Rick, 43
Vinyard, Valerie, 44
Cooney, Lin Sue, 29
Hornick, John, 15
Parnell, Charles, 47
Watts, Patricia, 10
Csoka, Louis S., Ph. D., 27
Hovey, David Jr., 20
Pendleton, David, 27
Weiner, Howard, 20
Dancu, John, 16
Kalogeris, Rebecca, 12
Pfeffer, Cary, 29
Williams, Pat, 56
DePinto, Matt, 52
Kneifel, Sue Kay, 11
Ransom, Katherine, 28
Zimmerman, Craig, D.C., 16
Desmond, Dennis, 20, 56
Leeds, Mike, 46
Riester, Tim, 13
Esser, Steve, 28
Loeffler, Chris, 20
Rosenberg, Jon, 20
Farr, Lee, 41
Maggiora, Matt, 49
Sables, Eric, 48
1100 KFNX, 41
Christophel & Hagan, Ltd., 37
Liquid Capital, 7
SRP, 14
AAA Arizona, 44
ClearComm Consulting, 29
Medical Identity Fraud Alliance, 16
SumoMaya Mexican-Asian Kitchen, 34
Affinity Technology, 64
Colliers International, 41, 60
MereStone, 19
Support My Club, 37
Ahwatukee Chamber of Commerce, 30
Comerica Bank, 41
Mesa Chamber of Commerce, 31
TeamLogicIT, 41, 49
Alliance Bank of Arizona, 3
Deco Communities, 10
NAI Horizon, 59
Tempe Chamber of Commerce, 29, 31
Alliance of Arizona Nonprofits, 35
Downtown Phoenix Inc., 63
National Association of Women
ThinkSmallBiz, 62
Apalon, 11
Dropbox, 11
Business Owners – Phoenix, 30
TigerMountain Foundation, 40
APS, 5
Early Warning, 15
NewSpring Pharmacy, 62
Arizona Commission for the
Economic Club of Phoenix, 31
North American Development Group, 10
UMB Bank, 45
Enterprise Bank & Trust, 29
Ocotillo, 34
United Way, 28
Esser Design, 28
Optima, Inc., 20
University of Advancing Technology, 15
Fennemore Craig, 6
Organization for Nonprofits Executives, 40
University of Arizona
Finnegan, Henderson,
Phoenix Metro Chamber, 31
Deaf and Hard-of- Hearing, 11 Arizona Department of Economic Security, 11 Arizona Diamondbacks, 17 Arizona Forward, 31 Arizona Hispanic Chamber of Commerce, 30 Arizona Relay Service 7-1-1, 6 Arizona Small Business Association, 30, 43 Arizona Technology Council, 30 Association for Corporate Growth – Arizona, 30 Banner Health Network, 67 Black Chamber of Arizona, The, 31 BMW, 32 Caliber Companies, 20 Career Connectors, 38 Cathy Hotchkiss, 63 CBRE, 54, 55 Chandler Chamber of Commerce, 31 Change In Our Lifetime, Inc., 66 Charles Russell, 28
Farabow, Garrett & Dunner, LLP, 15
Tilton Development Company, 20
Cancer Center, The, 16
Phoenix Philanthropy Group, The, 28
Valley Leadership, 40
Flanagan-Hyde Associates, LLC, 36
Pinnacle, 20
Vermillion Photo, 61
FSW Funding, 61
Polsinelli, 49
Vig Uptown, The, 34
Gallagher & Kennedy, 58
Pragmatic Marketing, 12
W. P. Carey School of Business, 20
Gilbert Chamber of Commerce, 30
Primera, 32
Waste Not, 40
Gordon & Rees Scully Mansukhani LLP, 18
Pro Sales Coaching, LLC, 46
Weego, 32
GPS Insight, 2
Proxy 333, 20
Wells Fargo, 48
Greater Phoenix Chamber of Commerce, 31
Read Better Be Better, 38
ZuZu, 34
HotSchedules, 11
Ready Action, 32
HPISolutions, 47
Reliable Background Screening, 63
IDology, 16
Residences at Fountainhead, 20
Infusionsoft, 62
RIESTER, 13
IT Strategic Partners, 48
Rosie’s House, A Music Academy for Children, 33
JLL, 20, 53, 56, 57 LaserTech Pain and Back Relief Center, 16
Sencorp, 10
Lawyers Title of Arizona, 20
SingleCare, 16
Lee & Associates Arizona, 52
Snell & Wilmer, 68
In each issue of In Business Magazine, we list both companies and indivuduals for quick reference. See the stories for links to more.
Bold listings are advertisers supporting this issue of In Business Magazine.
CHECK US OUT /inbusinessmagphx @inbusinessmag
65 20MAY1 6 INBUSINESSMAG.COM
A CANDID FORUM
BY
Companies Can Create Equality for Women Strive for honest recognition and remuneration by Carlynne McDonnell
The Equal Pay Act of 1963 did not resolve the disparity between men’s and women’s pay rates. According to a White House website, “Decades of research shows that no matter how you evaluate the data, there remains a pay gap — even after factoring in the kind of work people do, or qualifications such as education and experience.” whitehouse.gov/issues/ equal-pay
Time and time again women hear how far they have come and how the glass ceiling has been shattered. But, while women have made excellent progress, there is much left to do to achieve equality. Maintaining the status quo hurts women today and into the future. Treating women employees with a lack of respect or value hurts the company in the long term. Corporations want employees to be excellent; women should expect and request the same of their employers. Pay discrepancies and sexist attitudes continue to raise their ugly heads (recently, with the U.S. Women’s Soccer team, and at the BNP Paribas tennis tournament in Indian Wells, California). In every occupation, women make less than men, currently averaged at 81 cents for women to $1.00 for men, according to the Institute for Women’s Policy Research report about
Six Ways to Create Equality in the Workplace CORPORATE CONDUCT
EMPLOYEE CONDUCT
Be an exceptional leader. A company’s management team
Be a team player. The employee should strive to be exceptional,
becomes the personal face to its employees. How people are
committed to the job and company. An employee’s exceptional
managed directly relates to how employee’s feel — appreciation,
productivity and commitment can demand corporate excellence
value, commitment and morale. Treating employees with respect
in return. She should be prepared to lead, to participate, to seek
and fairness is the most basic trait of an exceptional leader and sets
opportunity; to show up and be engaged; to meet deadlines; to be on
the stage for how employees will treat each other.
time; to help the company or organization realize its goals and dreams.
Communication is a key tool for creating equality in the workplace. With the dispersal of information, all employees feel knowledgeable and involved and a part of the organization. Listening and really hearing is very important in discerning
66
INBUSINESSMAG.COM
Set behavior boundaries for oneself and others. The employee should be unwilling to accept inappropriate behavior, and communicate those expectations in a courteous but clear way. If
to employees and open-minded. It’s all about the work product, but
personal boundaries are not respected, she should document and
work should be a place where people can excel and achieve. Most
seek corporate help.
Be aware of bias. Everyone has bias. Regardless of upbringing
MAY 20 1 6
Treating others with respect is a great asset as a leader, collaborator and team member.
issues of low morale or conflict. Management needs to be available
importantly, they need to lead by example.
Carlynne McDonnell, founder of Change In Our Lifetime, Inc., is the author of The Every Woman’s Guide to Equality. Her position is that achieving equality for women and ending violence against women is vital, and she has spoken about women’s equality on college campuses, at student leadership conferences, in the workplace and for the U.S. Marine Corps. carlynnemcdonnell.com
2015 earnings. And in Silicon Valley, women are very underrepresented — about 30 percent of the employees overall are women, according to a CNET Women in Tech report from 2015. So how far have women really come? Not nearly far enough. And the hard work and commitment that it will take to get women parity and protection in the workforce requires a corporate willingness to fix the inequality and women employees to speak up. Women can no longer be willing to accept less and can no longer be happy maintaining the status quo. Companies have a right to expect employees to be productive, committed and engaged. In turn employees should be valued, respected, insulated from bias/behavior and be paid equally for equal work.
Overly friendly behavior does not belong at work. Respectful, courteous and professional are ideal behaviors for the workplace.
or societal influences, bias has no place in the workforce.
People should never play games with each other at work. Women,
Management needs to evaluate employees objectively and focus
especially, need to maintain a high level of professionalism to
on performance and product, and be aware of issues of bias with
avoid having friendliness misinterpreted as an invitation for
regard to women, race and national origin. Equality comes from
inappropriate attention.
judging all employees on an even basis and being aware of and
When all else fails … Exceptional performance and
eliminating subjective feelings or opinions as much as possible.
commitment do not guarantee respect or equitable treatment.
Company leadership should never let another manager or
It’s important to respond to a situation of pay inequality, sexual
employee behave inappropriately without taking action. The
harassment or discrimination by taking action. The employee will
messages that are sent and the behavior that could follow by not
need to keep excellent records — who, what, when, where, why
reacting can create actionable circumstances.
and details.
Establish no-tolerance policies. Work should never be a place
The starting point is speaking to one’s supervisor or someone
where inappropriate conduct exists. If not handled quickly and
in the reporting chain; next is to go to Human Resources and ask
with serious consequences, overly familiar behavior or joking that
for help. Documentation makes all the difference in the world
crosses the line becomes acceptable. Being very clear in policies,
and guards against misrepresentation of the truth or a “bad joke”
procedures and merit reviews about how the company handles
misinterpreted. If the employee feels the situation is not resolving,
sexual harassment and discrimination sends a message that a
outside advice can be obtained from the U.S. Equal Employment
productive, welcoming and safe work environment is a priority.
Opportunity Commission, a state agency or an attorney.
APR
12
President Obama dedicated the Belmont-Paul Women’s Equality National Monument on Capitol Hill on April 12. Designated “Equal Pay Day” by the National Committee on Pay Equity, April 12 is the day that women had to work until this year just to earn the salary that men made last year.
the signs of
THAT OCCURS WHEN YOU’RE TOO OVERWHELMED
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