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June 2012
JUNE 2012
IN BUSINESS MAGAZINE
Contents
Roundtable: Recognize and Defuse Deadly Anger in the Workplace
RETAIL
The Business of Retail: Will Only the Chains Survive?
JUNE 2012 • inbusinessmag.com
24
power Lunch Business Calendar By the numbers
This Issue
$4.95 INBUSINESSMAG.COM
Tempe Chamber of Commerce Arizona Technology Council
Gremlyn Bradley-Waddell delves into the retail scene and talks to merchants, shopping center developers and municipal economic development managers to discover the market’s “driving force.” The District at Desert Ridge Marketplace
Features
20 Security and Technology: The Growing Risk of Compromised Data
Companies need more than anti-virus to guard on many fronts, and Don Rodriguez discusses where threats may lie and what makes managed hosting a practical solution.
30 New Law Means New Funding
Opportunities for Entrepreneurs
Nick Jensen examines how the potentially game-changing CROWDFUND Act of 2012 opens avenues for raising capital online.
32 Tourism Retools Its Marketing
Strategies
Hoteliers and tourism professionals share with Kathy A. McDonald new approaches to meeting — and generating — consumer demand that have broad application to business.
32
38
Departments
11 Guest Editor
42 Assets
12 Feedback
42
Michelle Ahlmer, executive director of the Arizona Retailers Association, introduces the “Retail” issue.
Noted business and community leaders Edward (Trey) Basha, Kimber Lanning and Billy Leist respond to IBM’s burning business question of the month.
14 Briefs
“JC’s 5 Star Outlet Store’s Challenging Transition,” “Innovative Consumer and Branding Product is Made in U.S.A.,” “MeMD Aims to Lower Employers’ On-Demand Healthcare Costs” “Private Networks Support Critical Disaster Recovery System” and “Demonstration Showroom Latest Innovation for Plumbing Supply Company”
18 By the Numbers
The uptick in retail absorption indicates an improving retail sector of consumer spending.
22 Trickle Up 38 Healthcare: How Mayo Clinic’s 25 Years Has Impacted the Valley
As Mayo Clinic in Arizona celebrates its anniversary, RaeAnne Marsh spotlights the economic benefit the noted medical practice and research organization has brought the Valley. Special Sections
45 55 8
Tempe Chamber of Commerce Arizona Technology Council
J u n e 2012
Hyundai Equus Ultimate and a mobile office phone system
View from the top looks at how Marcia Rowley built a worldwide business pioneering a timeshare-for-cruise exchange.
31 Books
New releases delve into the management and mismanagement of funding.
34 Nonprofit
Children’s Action Alliance National Multiple Sclerosis Society, Arizona Chapter
43 Power Lunch
The Barrio Queen’s urban and flavorful attitude makes lunch there bueno. Plus: Where to find “Good Leafy Green Stuff” for lunch
66 Roundtable
“Seek and Defuse: How to Recognize Anger in the Workplace” Business Education
40 The Marketing Bonanza of Facebook and Twitter Digital marketing expert Josh Dolin continues his three-part series with a focus on common mistakes that can sandbag business. On The Agenda
35 Spotlight
AZIGG Global AZ Tech Beat Arizona Chamber of Commerce & Industry Annual Awards Luncheon
36 Calendar
Business events throughout the Valley
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June 2012 • Vol. 3, No. 6
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We provide all-inclusive prices with easy billing options We provide same-day and off-hours service, including weekends We are fully insured, including general liability and Workers’
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Compensation Our teams are professional and uniformed We offer fully customized solutions and North America-wide
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Vol. 3, No. 6. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. © 2012 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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Michelle Ahlmer, Executive Director, Arizona Retailers Association
Guest Editor
Retail Revitalizing
Michelle Ahlmer joined the Arizona Retailers Association in 1993 and was promoted to executive director in 1996 by its board of directors. As executive director, she administers the ARA’s legislative and government affairs program on behalf of national, state and local retail companies. She is the spokesperson for the Association — whose 1,400plus members range from an independent confectioner to the largest retailer in the world — and is a resource for the ARA membership as well as policy makers.
Consumers may be going back into retail establishments and spending money, but the survival of many retail businesses is due to the tenacity and innovative nature that is key to being a success in the retail industry. Independent, mom-and-pop retailers are particularly given tribute as businesses that have reinvented their models to adapt to this changing economy. Regardless of size, all retailers have been through a bit of a boot camp over the last three years. Those exercises have included rejuvenating marketing models, capturing exclusive products that aren’t available to competitors or creating an “experience” out of shopping. The common thread is the consumer isn’t shopping in the same manner that she did, even five years ago. Competition is what makes any industry strong and retail embraces competition, but competition should be fair. However, in this wildly competitive industry, local retailers are operating at a significant disadvantage when competing with online-only retailers that have a presence in Arizona. Refusing to collect the sales tax, online-only retailers are offering their products for nearly10 percent less than local retailers can due to their interpretation of the sales tax statute. Many states around the country have recognized those same statutory inequities that put retail competition on unequal footing; Nevada, Virginia, Tennessee, Indiana and Texas have enacted changes to allow for fair competition. Those same changes need to be made in Arizona for our local retailers to flourish. These are among the concerns covered in this issue’s cover story, “The Business of Retail: Will Only the Chains Survive?” Writer Gremlyn Bradley-Waddell spoke with executives of national chains, owners of smaller retailer operations and those responsible for retail development. She takes the pulse of the relative retail strength of national chains and local independent merchants and discusses what makes both important to the Phoenix market. She discusses new vibrancy from innovations in retail as well as the industry’s biggest challenge: online sales. This issue also looks at the growing risk companies face of having their data compromised. In his Technology article, Don Rodriguez describes what businesses need to watch out for and makes a case for safeguards beyond anti-virus programs. Attorney Nick Jensen shares his expertise on the subject of financing in his article “New Law Means New Funding Opportunities for Entrepreneurs,” explaining the game-changing impact of the recently enacted CROWDFUND Act of 2012. And Kathy McDonald explores the new marketing strategies of our economy’s mainstay, tourism — and considers how other businesses could apply those changes to their own operations — in her Sector article “Tourism Retools Its Marketing Strategies.” This month marks the 25th anniversary of Mayo Clinic here in Arizona. It has contributed to our community on many fronts, from quality of life to the economy. “Healthcare: How Mayo Clinic’s 25 Years Has Impacted the Valley” takes a look at the significant influence of Mayo Clinic on our business community. Covering diverse subjects in this issue that also include social media and workplace violence, In Business Magazine focuses on content to benefit business in the Valley. I hope you will enjoy this issue. Sincerely,
Michelle Ahlmer Executive Director, Arizona Retailers Association
Connect with us:
Buy and make better Retail sales are creeping up, and that has such a strong effect on our economic position. The Consumer Confidence Index is the gauge that most look to, to get a sense of the health of our economy. Although those numbers are increasing slowly, there are many other factors that our Guest Editor, Michelle Ahlmer, notes in her letter above and Gremlyn BradleyWaddell writes about in her cover story in this issue,
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to consider for a true picture of our retail future. I want to thank Michelle for her work on In Business Magazine and for all that she is doing by leading the Arizona Retailers Association. Retailers are spending money because they feel more confident Arizona is recovering — and Valley analysts note that we just might recover in a more sustainable way this time around. —Rick McCartney, Publisher
Story Ideas/PR: editorial@inbusinessmag.com Business Events/Connections: businessevents@inbusinessmag.com Marketing/Exposure: advertise@inbusinessmag.com Or visit us online at www.inbusinessmag.com
J u n e 2012
11
Feedback
Valley Leaders Sound Off
Executives Answer
With the industry impacted by factors that include real estate, online sales and consumer spending activity, what do you see as the top challenge facing retail today?
Edward (Trey) Basha
Kimber Lanning
Bashas’ Family of Stores VP of Retail Operations and Chairman of the Board Sector: Retail The overall economy, in my opinion, is the top retail challenge today. And consumers, not investors, set the tone for the economy. Consumers’ attitudes and spending habits are changing. They’re more cautious about their spending and are tightening their budgets, allocating fewer dollars to retail and entertainment. Instead of taking vacations, people are staying home. Instead of going out to a restaurant to eat, they’re cooking more meals at home. Instead of going out to the movies, they’re watching TV at home. People are thinking more about how, what and why they consume. They’re shopping prudently, giving a second thought to everything they spend money on. They’re more into value than they ever were before, and they expect more bang for their buck. Coupon use has skyrocketed, and a good deal is more important than ever. The recession has changed more than just how we live; it’s changed what we value and expect. This new frugality will continue for some time to come, even after we recover from the recession.
Founder and Director Local First Arizona Sector: Business Advocacy Group Today’s retailers are a tough bunch of entrepreneurs who have proven they can survive through difficult real estate times and finicky consumer spending habits. However, what very few people realize is that even the best of the best brick-and-mortar retailers won’t survive being in the cross hairs of Amazon execs who want them gone. Online shopping is destroying the America we know by draining resources from city, county and state coffers by offering merchandise without collecting sales taxes. This perceived “discount” amounts to nothing short of a scheme to shortchange our communities of much-needed revenue. Simultaneously, the online giants are abusing an unfair advantage over brick-and-mortar retailers who are required to collect nearly 10 percent sales tax on every item sold. This inequity is not only causing retailers to lose hope, it’s causing a shortfall at the state level of more than $700 million per year in uncollected taxes. These taxes go to fund our social services like fire departments, libraries, trash collection and even education. How can Arizonans think they are getting a good deal by skimping on their taxes online?
Bashas’ Family of Stores bashas.com
Edward (Trey) Basha is vice president of retail operations and chairman of the board of Bashas’ Family of Stores — the family-owned grocer that operates Bashas’, Food City, AJ’s Fine Foods, Sportsman’s Fine Wines & Spirits, Eddie’s Country Store and Bashas’ Diné supermarkets. He earned his B.A. and M.B.A. from Arizona State University. Basha has been active on the boards of directors of the East Valley Child Crisis Center, Children’s Cancer Center and Phoenix Children’s Hospital Foundation.
Billy Leist
Target Group Director Sector: Retail
Target is thrilled to be part of the retail industry during this exciting time of change, and recognizes that our guests’ needs are evolving rapidly. People are shopping differently these days — for example, they’re more focused on value, increasingly comfortable interacting with brands via social media and use a number of tools and channels to research potential purchases, shop and buy.
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Local First Arizona localfirstaz.com
Kimber Lanning is an entrepreneur and economic specialist actively involved in fostering cultural diversity, economic self-reliance, regional planning and responsible growth in the Greater Phoenix area. She is the founder and executive director of Local First Arizona, a nonprofit organization dedicated to raising public awareness of the positive economic and environmental impacts of supporting locally owned businesses.
Savvy retailers must anticipate consumers’ wants and needs and adapt their business accordingly, as well as become experts on making connections with potential shoppers both inside and outside of store walls. In addition, retail companies should focus on delivering an exceptional shopping experience. At Target, we do this by evolving our merchandise assortment, in-store service and multichannel offerings in order to develop innovative new solutions that will help our guests find what they need, when and where they need it. Target target.com
Billy Leist is a group director at Target, where he oversees stores in Arizona and New Mexico. Leist began his career at Target six years ago as a store team leader in Fresno, Calif., and later worked as a district team leader in Bakersfield, Calif. He earned his bachelor’s degree in Organizational Leadership at California State University, Fresno. Leist is actively involved with the Phoenix Children’s Hospital, the United Way, local schools and food banks.
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Briefs
Quick and to the Point
JC’s 5 Star Outlet
Innovative Consumer and
JC Penney’s announcement last October that it was closing its outlet stores created a problem for the Tempe outlet in the Arizona Mills Mall, which at the time was already in negotiations with SB Capital Group, a private merchant banking group, to become part of that company’s organization. The challenge, as the store transitioned to a JC’s 5 Star Outlet, “was telling the customers we’re still open,” says Glen Gammons, president and CEO of JC’s 5 Star Outlet, who has spent the past 11 years of his 40-year career with JC Penney in charge of the outlet division. He estimates direct mail reached only about half of the store’s customers, missing those who shopped infrequently. But the store has been serving the community since 1980, and has a large customer base. “It’s less challenging than starting as a new entity,” says store manager Jeff Dulmes. “We have experienced staff ” — more than half have been with the store at least five years, a few 40 years or more — “and a base of core customers familiar with the value and quality of the merchandise we sell.” He says the merchandise has, in fact, gotten better — the store is still an outlet that JC Penney uses to liquidate inventory, but JC’s 5 Star also buys overstocks and liquidations from other sources. Changes, which have been mostly behind the scenes such as in personnel policies, include some systems changes that customers encounter. Still affiliated with JC Penney, JC’s 5 Star can accept Penney’s charge cards but cannot accept payments or gift cards. “We’ve been successful in educating customers about [those changes],” says Dulmes, noting the efforts started about two months before the effective date — “As far in advance as we were aware to do.” Employees retain credit for their length of service at the store, according to Gammons, who notes the mall also benefits by retaining a tenant — in a hard-to-rent big-box space — that produces traffic. —RaeAnne Marsh
Luggage Jacket, LLC’s novel and useful product recently attracted the NCAA to ink a licensing contract with the company whose roster of clients started with Google. The luggage jacket, which stretches over and enfolds a piece of luggage, helps protect and secure it — and personalizes it. With its consumer line the No. 1-selling product in SkyMall, Luggage Jacket emphasizes the “personalize it” aspect as it markets its product to businesses to give their clients and sales teams to use when traveling. “It’s free branding,” says partner Austin Uhl. “Seven million people travel per day in the U.S. alone. That’s a lot of eyes.” The jackets are made of 3 mm neoprene and are waterproof and washable. Designs are added through dye-sublimation printing. Initially, the Scottsdalebased company took the manufacturing to China, but now works with a manufacturing company in Greensboro, N.C. Saying he and partner Mario Barton “really wanted a U.S.-made product,” Uhl notes that not only is that good for the U.S. economy but he sees a shift in the retail industry as companies such as JC Penney have begun to emphasize U.S.-made-only products. The company launched its luggage jackets in January, and in less than five months made it into more than 10 countries besides the U.S. At first offering two sizes, which research showed them would fit 95 percent of all bags, Luggage Jacket recently added a smaller size for computer bags. —RaeAnne Marsh
Store’s Challenging Transition
Branding Product is Made in U.S.A.
Luggage Jacket, LLC luggagejacket.com
MeMD Aims to Lower Employers’ On-Demand Healthcare Costs Many people who visit the emergency room need something less urgent and even simple: advice, direction, an antibiotic or refill. John Shufeldt, M.D., had seen this in practicing emergency medicine and over the course of his 19 years as owner of urgent care centers. A visit for such needs can be unnecessarily disruptive to a workday. Shufeldt founded MeMD to address the healthcare service needs many employers — particularly smallbusiness owners — face. MeMD is a HIPPAcompliant patient portal Web cam that allows patients access to a physician who can treat
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them virtually and, when such healthcare is indicated, direct them to the appropriate level of care. Patients can access the service at any hour every day of the year. In-person attention to which they may be referred is available from contracted urgent care centers and individual providers in 30 states. Employers save healthcare costs by giving employees the option to talk with a physician online anytime from any location, and can offer to share the expense of the consult at whatever percentage would best encourage use. Companies with employees who travel can offer the service to be used from any location
in the United States. Aimed especially at businesses of 50-500 employees, MeMD launched in May 2011 and has treated 5,000 patients over the course of its first year. “This is where I believe much of healthcare is going,” says Shufeldt, citing shortages of primary care providers, a population that has grown up in an Internet world, and increasing demand for transparent, consumer-focused healthcare as factors that have led to this form of physician-patient interaction. —RaeAnne Marsh MeMD memd.me
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Briefs
Quick and to the Point
Private Networks
Support Critical Disaster Recovery System Cox Business, leading data center infrastructure provider IO and the International Genomics Consortium have come together to strengthen IGC’s information security. They’re doing it through a direct Cox Business fiber link between IGC’s Phoenix headquarters and IO’s Phoenix data center. The Cox Business Metro Ethernet connection serves as disaster recovery/ backup, a solution being utilized by large and smaller businesses as they move more information into the cloud. In a collaboration with IGC, Cox installed a Metro Ethernet private line connecting IGC’s corporate headquarters in Phoenix to IO’s data center across town. The private network, which does not traverse the Internet, gives IGC complete redundancy and continuity in its mission-critical cancer research. “This means IGC’s data is completely backed up in real time and is immediately accessible at IO datacenter if the primary servers are compromised. This private network allows IGC to keep missioncritical records safe at IO’s world-class, safe and secure facility that complies with data security requirements across multiple industries,” explains Hyman Sukiennik, vice president of Cox Business. IO’s Phoenix data center is the largest commercially available in the United States to have earned a Design Documents Tier III certification as concurrently maintainable from the respected Uptime Institute. “Cox Business and IO have the technical expertise we required to expand our own security standards as well as to provide assurance to the government and other research partners that data and services remain secure and operational at all times,” says David Neal, IGC’s chief financial officer. He notes that having a deeper level of disaster recovery is essential to IGC as it seeks major new scientific research contracts such as its major award from the National Cancer Institute. Healthcare, government and contact centers are among the industries whose needs Cox Business’s private networks fulfill. Some of the benefits of Metro Ethernet networks that prove attractive to many companies are reduced costs, higher capacity, reduced hardware requirements and familiar LAN functionality. —RaeAnne Marsh
Demonstration Showroom Latest Innovation for Plumbing Supply Company
“Opening a new location is an opportunity to almost reinvent yourself,” says Jeremy Smith, director of studio services in four-generation family-owned business Central Arizona Supply. The plumbing and HVAC company opened a 10,000-square-foot showroom last month, its 10th location in the Valley, with a unique feature: a demonstration bathroom where customers can not only see and touch but also experience new products. Customers can take a bath in the Micro-silk Technology bathtub by Jason International that infuses oxygen into the skin, experience three different showers with customizable features that include scent-infused steam, or try a top-of-the-line TOTO Neorest toilet with remote controls and warm air dryer. “So many shower products … you can describe only so far,” Smith says, explaining the impetus for the showroom. Now, when customers respond to his descriptions with incredulity, he can say, “You have to try it. Come and use it.” Smith says his father, son of one of the two brothers who founded the company in Mesa in 1968, has always been interested in new products. “Companies would bring their new products to him.” The first showroom grew out of the brothers’ need for supplies for their plumbing business, as there was no supply store in the East Valley even into the ’70s. But as the plumbing supply business has become dominated by national chains, Central Arizona Supply diversified, adding heating and air conditioning as well as working with new construction and commercial projects. Remodeling is another focus for the company, and it has a 75,000-square-foot distribution site in Mesa. Ready inventory enables Central Arizona Supply to cater to the remodel market, Smith says, explaining, “Often, when remodeling, things do not move along as logically as you expect, and you don’t have time to wait for [orders from] the Internet.” —RaeAnne Marsh Arizona Central Supply centralazsupply.com
Cox Business coxbusinessaz.com IO iodatacenters.com
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17
By the numbers
Metrics & Measurements
Retail Rebounding as Numbers Look Up Stronger retail sales lead to healthy absorption of retail space The growth and health of commercial real estate in the retail sector often follows heightened retail sales and increased consumer demand. As spending on food, clothing and other desirable products increases, the absorption of retail space commonly increases. Slowly, Metropolitan Phoenix has been experiencing this uptick in retail absorption over the past two quarters and forecasts indicate we will steadily improve. Retail was hard hit by the recession but signs of recovery are becoming evident. First quarter numbers for 2012 look optimistic and most forecasters believe that the near future will be positive. Retail markets saw positive absorption of retail space for the third consecutive quarter accounting for 355,592 square feet of space in the first quarter of 2012. The West Valley saw the best gains over that time, absorbing 130,000 square feet, while Downtown Phoenix posted a negative absorption at -10.128 square feet of space. Shopping center space absorbed the highest, with 145,000 square feet of space leased or
sold, consistent with analysts’ notions for a brighter future in retail seeing that consumers are spending more. The consumer confidence index hit 70 for the first quarter of 2012, up from the low of 39.8 in the third quarter of 2011. According to the NAI Horizon Greater Phoenix Retail Report released in May, forecasts predict approximately 1.5 million square feet of retail space will be absorbed throughout 2012. As there were no glaring factors that influenced the number for this quarter, a healthy uptick is concluded to be organic growth in the market. Retail vacancies saw a reduction from 12.1 percent in fourth quarter 2011 to 12.0 in the first of 2012. Indicators show mild upward shifts of improvement in rental rates and occupancy rates, with the only single digit vacancy rates occurring in the Sky Harbor Airport area of Phoenix at 8.4 percent. —Mike Hunter
Key Indicators Key indicators for the Metro Phoenix economy are provided in each issue to identify those key numbers that give readers a sense of the health of our local economy. Economic Indicators (Metro Phoenix)
Number
Unemployment (March 2012)
7.5%
-0.77%
1,760.2
2.07
No. of Housing Permits (April 2012)
1,261
40.52
Consumer Confidence* (Q2 2012 to date) (Arizona)
68.6
24.34
23.08
0.65
Job Growth (in thousands) (April 2012)
Average Hourly Earnings (April 2012)
Eller Business Research
Retail Sales (Arizona) Retail Sales (in thousands)
Jan. 2012
Feb. 2012
Total Sales
6,348,013
6,753,385
6.99%
6.63%
Retail
3,722,557
4,044,640
Food
1,042,109
1,045,934
Restaurants & Bars
839,613
904,544
Gasoline
743,734
758,267
709,002
700,947
Change Y0Y NAI Horizon naiglobal.com
Retail Market Shows Uptick in Retail Space
Historical data since first quarter 2010 show signs the retail market is coming back.
YOY % Change
Contracting
Eller Business Research
Historical Retail Leasing Activity
Real Estate
# of Deals 525
Commercial: Office***
Q1 2012
Q1 2011
480
Vacancy Rate
28.2%
28.3%
435
Net Absorption (in SF)
90,965
-92,385
Rental Rates (Class A)
390 345 300
Vacancy Rate 1Q10 3Q11 1Q11 3Q11 1Q12
Historical Retail Vacancy Rate
Historical Retail Rental Rate
Rate 18.00
Percent 13.0
16.75
12.5
15.50
12.0
14.25
11.5
13.00
$23.36
Commercial: Indust.***
1Q10 3Q11 1Q11 3Q11 1Q12 Source: NAI Horizon
11.0
Net Absorption (in SF) Rental Rates (General Industrial)
Residential: Total Sales Volume Total Median Sale Price
$24.45
Q1 2011
12.0%
13.9%
1,508,614
2,461,764
$0.49
$0.52
April 2012
April 2011
8,552
8,725
$144,000
$120,000
New Build Sales Volume
636
365
New Median Sale Price
$213,512
$220,259
Resale Sales Volume Resale Median Sale Price 1Q10 3Q11 1Q11 3Q11 1Q12
Q1 2012
7,916
8,360
$138,325
$115,000
* Rocky Mountain Poll ** Consumer Price Index refers to the increase or decrease of certain consumer goods priced month over month. *** Cassidy Turley BRE Commercial Latest data at time of press
18
J u n e 2012
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19
Tech
Innovations for Business
Security and Technology: The Growing Risk of Compromised Data Companies need more than anti-virus to guard on many fronts by Don Rodriguez There’s no disputing a company’s data is as valued as its best worker. But that “best worker” employee could be the source of data being compromised. Hunter Bennett, vice president of managed hosting of Scottsdale-based OneNeck IT Services, offers this rundown of risks that are too close to home for any business: ▶▶ internal breaches from employees (70 percent of security incidents in the United States); ▶▶ social media hacking, since so many companies allow access internally; ▶▶ continued spyware/malware threats on personal computing devices; and ▶▶ mobile computing that is ripe for security exploitation. Pat Clawson, chairman and CEO of Scottsdalebased Lumension Security, says organizations should wage the battle to protect on three fronts: intellectual property that cyber criminals could swipe and sell, valuable customer data and employees’ personal information.
Today, hackers electronically mine data at a very high speed and an attack can happen from any computer anywhere in the world. “We have seen the evolution of the hacker,”
Stay Protected Pat Clawson, chairman and CEO of Lumension Security, offers these five steps as a starting point to staying protected no matter the size of an organization: 1. Prioritize the IT assets. There are certain employees and devices that contain more sensitive data than others. Thus, a proper security plan needs to put more emphasis on strategic assets as opposed to treating all IT assets equally. 2. Educate company employees. Security breaches will happen to every company at some point in its lifespan. Typically, the breaches occur due to careless behavior by employees as opposed to a sophisticated, well-thought-out attack. 3. Take a layered approach. Companies need to implement a “defense-in-depth”
20
J u n e 2012
approach with a platform that includes antivirus, patch management and application control. All of these solutions must talk to each other in order to be successful. 4. Realize security is also a Mac issue. “Consumerization” has had a deep impact on security and the enterprise. Within the past three years, more Macs and social applications have entered the corporate environment than ever before, and there is plenty to gain from hacking these systems. 5. Ensure organizations and people remain secure. Never an easy task, making sure the leadership team realizes the company is vulnerable is step No. 1. Then, take the initiative to educate the team and company users, and stand ready to go from defense to offense.
says Clawson. “They have gone from bad guys getting famous by making a lot of noise — and money — to a much quieter hacker who steals data without the victim’s knowledge.” The idea that anti-virus is all a company needs to protect its network is out of date, he says. Today’s risks come from people who have figured out how to get around antivirus software by creating custom pieces of malware that have not been seen before and likely will never be replicated anywhere else — effectively bypassing anti-virus. It’s critical to take security farther than anti-virus software can and supplement it with strategies like intelligent whitelisting, where only what is known to be good is allowed to run on the device, Clawson says. More companies are taking the security outside their walls. “Going with managed hosting versus customer onsite is almost always much more secure,” Bennett says. This is largely because the customer gains the immediate benefit of maturity and scale from an enterprise managed hosting operation instead of what a customer’s personal security budget can afford. Since managed hosting providers often host hundreds or thousands of inbusine ssmag.com
systems for customers, they typically invest in a security management practice that includes enterprise-class tools and personnel who manage security policy across the customers’ systems, he says. In-house or not, the concern is no longer limited to what originates on a desktop. Mobile devices are a very high risk, largely because they are an extension of traditional networks. According to the “State of the Endpoint,” a 2012 Ponemon Institute study commissioned by Lumension, concern about securing mobile devices and platforms saw a huge jump from 9 percent in 2010 to 48 percent in 2011. Providing enterprises with the ability to rein in those devices to manage and secure them will be the No. 1 request from many security manufacturers in 2012, Clawson predicts. As the advent of virtual desktop infrastructure continues to increase, allowing users to access their desktops via smartphones or tablet computing devices, “I can see the need for increased corporate security on mobile devices and appropriate corporate security management on mobile devices increasing,” Bennett says. While IT could try to prohibit the use of personal iPads and the likes of Twitter and Facebook in the workplace, a more realistic approach is to stop fighting it. Instead of denying these tools, Clawson says, organizations should adapt their security strategy to allow these new practices. In this era of more operations moving to the “cloud,” there are some precautions that still need to be taken. Every cloud provider should be able to articulate security policies and procedures in a formal security policy that can be provided to customers and even prospects, Bennett says. Talk to the provider’s security and compliance officer to get examples of the internal security controls being followed. There are plenty of resources online to help quiz a provider about its security policies, he says. Recent incidents serve as a reminder that companies need to refocus budgets upward in order to align them with the importance of effective cyber-attack plans. After all, “you wouldn’t spend $100 on windshield wipers and $10 on your brakes, would you?” Clawson asks.
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J u n e 2012
21
Trickle Up
A View from the Top
Marcia Rowley: Trading Up on Timeshares Pioneering ideas built a worldwide business in a timeshare-for-cruise exchange by Alison Stanton
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As she looks back to more than 15 years ago and how her short-term frustration with being unable to trade a time share for a cruise sparked an idea that led to the long-term success of International Cruise & Excursions, Rowley says she couldn’t feel any more fortunate. She is also proud that their company is responsible for bringing in a lot of revenue into the Phoenix metropolitan area. “When we do business, money from all over the world comes into the Valley,” she says. “We are actually helping to infuse capital into the area.” Nine hundred of their employees work out of their Scottsdale office, and Rowley is proud of what she calls her “Google-like mentality” in terms of the many amenities, services and perks she and her husband offer their employees, which help build a family-like feeling in the office as well as attract and keep employees. “We have a hair salon on site, massages, a nurse, multiple lounges complete with Wii consoles and games, a cafeteria and concierge.” International Cruise & Excursions now employs around 1,400 employees in eight different countries and is the worldwide industry leader for integrated cruise and leisure experiences. This year, Rowley says, the company will book more than one million travel transactions.
Vacation Trade Is Hot Business ■■ International Cruise & Excursions was
founded in 1997. By 1999, they had developed business relationships with every major cruise line in the industry.
■■ International Cruise & Excursions,
Inc. currently works with 55 million consumers through corporate, commercial, travel and leisure partnerships worldwide.
■■ In 2010, the company booked close to
$300 million in cruises and supplied more than $35 million in pre-packaged vacations and cruises.
■■ In the same year, the company serviced more than 8 million vacation home and timeshare owners.
■■ International Cruise & Excursions
supports many charities, including Christel House, PACC911 (Phoenix Animal Care Coalition) and A New Leaf.
International Cruise & Excursions, Inc. iceenterprise.com
inbusine ssmag.com
Photo: International Cruise & Excursions, Inc.
co-founder, executive vice president and chief marketing officer of International Cruise & Excursions, Inc., Marcia Rowley took an idea based on common sense and turned it into a successful company that quickly grew to be the leader in the travel and leisure industry. At least, it seemed common sense to her, though she found it had never been done before. Like millions of other people, Marcia and her husband John owned a timeshare. When she suggested trading use of their timeshare in Sedona in order to go on a cruise instead, she quickly found out that wasn’t an option. “We knew that cruises had the same demographic as timeshares, and we figured there was pent up demand for this kind of trading,” Marcia Rowley says. “So about 15 years ago, we started International Cruise & Excursions, Inc. based on the idea of providing vacation owners this opportunity.” John Rowley, who had worked for several large technology firms, including Tektronix and Intel, applied his technology expertise to creating a unique platform that let people book their cruises easily, either through a booking agent or online. After forming a strategic partnership with Carnival Cruise Lines, Marcia Rowley recalls, the idea of “barter for travel” took off immediately, and their company began to grow. By 1999, they had developed business relationships with every major cruise line in the industry. “Our technology powered us to broaden to other companies today. And John, with his technical background, helped develop the software in order for this to be an automated process,” she says. As their company got busier and more successful, the Rowleys realized they could expand its offerings to other facets of travel. About five years ago they began to partner with large companies to help provide additional travel-based benefits. International Cruise & Excursions now works with leading financial institutions, retailers, government departments, hotels, airlines and more. “We help leverage the power of vacations, and deliver vacation benefits, working with companies like Marriott, Sears and others to provide travel in various forms and incentives,” Marcia Rowley says.
On May 18, 2012, we brought together top business leaders to discuss our economic future.
A Special Thank You to... Our Panel and Moderator
Jos Anshell
Craig R. Barrett
Derrick Hall
John Huppenthal
Howard Lein
CEO Moses Anshell
Retired CEO/Chairman of the Board, Intel Corporation
President & CEO Arizona Diamondbacks
Superintendent of Public Instruction, State of Arizona
Founder & Owner RE/MAX Excalibur
Vicki Panhuise, Ph.D.
Jim Pederson
Rich A. Rector
Candace D. Wiest
Event Moderator
President and Owner VePoint Consulting Group, LLC
CEO Pederson Group, Inc
Owner & Executive Chairman Realty Executives Phoenix
President & CEO West Valley National Bank
Host, Arizona Horizon, KAET Eight
Ted Simons
Our Sponsors
HEASLEY &PARTNERS
™
and All Who Attended Our First Annual Guest Editor Economic Symposium
by Gremlyn Bradley-Waddell
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J u n e 2012
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J u n e 2012
25
Photo: Michael Baxter
he bad news, stealthily deployed in two-word phrases, has rained down like fury the past few years: Great Recession, job losses, corporate bankruptcies, economic crises. And consumer spending, an economic indicator retailers watch closely. It’s been a tempestuous market, albeit one that most say is on the uptick, and a national organization might be expected to have greater staying power than the smaller operations. Indeed, although many might have expected a lot of the “little guys” to pack up and go home, these businesses have
The Power of Independents
Like Ahlmer, David Malin has his finger on the pulse of the Valley’s retail condition. As director of acquisitions and development for the Phoenix-based, privately held real estate firm Vestar, whose large-format, open-air shopping center properties include Tempe Marketplace and Desert Ridge Marketplace, he also knows the power of the smaller retailer. “In the last three years, there’s been little to no expansion, generally speaking, of the national chains,” Malin says, adding that the only national
tenant expansion has been to backfill vacancies created by some of the big box chains that have gone out of business, like Mervyn’s, Circuit City and Linens ’n Things, whose retail space at Tempe Marketplace got snapped up by Stein Mart. “Any leasing we’ve seen in retail has been more from the independent, mom-and-pop type of retailer.” Just look at Tempe Marketplace, which is considered a hybrid mall concept because it’s both a “power center” full of shops as well as an entertainment-and-lifestyle destination center, thanks to the likes of Harkins Theatres and Dave & Buster’s. While the shopping center boasts an anchor — Target — and a lot of what Malin calls “junior boxes” — smaller retailers such as Best Buy, Barnes & Noble Bookstore, Old Navy and Famous Footwear, all of which typically position themselves near bigger players like Target, Walmart and Lowe’s — it also has an ample supply of independent and smaller chains: Divaz Boutique, Classy Jazzy, The M. Jeweler, Urban Angels Boutique, Greek Pita and Kabuki Japanese Restaurant, to name a few. It’s not just any kind of soul who can feel comfortable going up against the big guys. Andrea Reiss, co-owner of Divaz Boutique at Tempe Marketplace and managing partner of the small, Tucson-based chain’s other two stores in Tucson and on Tempe’s Mill Avenue, has the right mix of optimism and expertise. She says the stores’ three full-time employees and varying staff of part-time help don’t spend time worrying about what the competition is up to but, rather, “what we can do better” because they always want to be the best in terms of customer service and the merchandise they offer. She says even opening the Marketplace site in 2007, just around the time the Great Recession hit, hasn’t daunted her or co-owner and store founder Kristin Moore from thinking about the future, and shares, “We’d love to expand; it’s always a thought.”
Photo: Macerich
adapted and are surviving just fine. While chains like Borders Books have fallen victim to the depressed economy, smaller companies have cleverly taken advantage of the spaces their sizeable brethren have vacated and, in many cases, scored cheaper rents and bonus square footage in the process. Likewise, mom-and-pop-style, independent entrepreneurs have used creative merchandising approaches to thrive in even the most challenging of environments. While being part of a chain or even the so-called Big Box crowd has its advantages, independent retailers are here to stay, says Michelle Ahlmer, executive director of the Arizona Retailers Association and Guest Editor of this issue of In Business Magazine. They — or at least some of them — will ride out this storm of economic uncertainty. After all, the retail world would be lost without them, if only because small firms employ more people, collectively, than the big ones do. “There’s always a market for independent retailers,” says Ahlmer, whose own retail roots encompass both types of retailers, having had a father employed by JC Penney for years and whose family owned a clothing store in Montana. “They, and small businesses, are the driving force of our economy,”
Rendering of UNION at Biltmore Fashion Park, scheduled to open in November
26
J u n e 2012
inbusine ssmag.com
Over in Phoenix, Donna Stevens is helping small businesses and independents do just that. “We’re trying to be useful to the business community,” she says. As program manager for community development for the City of Phoenix, she points out that city officials are making its permitting process more of an over-the-counter experience and have reviewed ordinances to make them a bit less challenging and time-consuming for businesses to abide by. In addition, she says the city offers independent entrepreneurs networking opportunities and, if they need help with job training or help with putting a website online, city workers can provide information about federally funded programs. “There’s room for both,” says Stevens of chains and independents. Her department is even “going local” by purchasing its envelopes and stationery from an area vendor. “We realize the value of local dollars that go back into our community.”
Anchors as Dead Weight?
Of course, as both Ahlmer and Stevens indicate, there will always be a need for the large chain businesses. They provide products other firms simply cannot, and many a shopping center would be lost without them. Anchor tenants, explains Kim Choukalas, vice president of leasing for the real estate investment firm Macerich, tend to be large chain stores and they typically play a critical role for a shopping center by their drawing power. “Anchors do a lot of advertising and give your center a lot of exposure,” she says. “They also give you categories you might not otherwise be able to deliver.” And when an anchor closes, that could sound the death knell for businesses in the vicinity. That’s what one would expect but, interestingly, it’s not always the case. For instance, a bit further down McClintock Road from Tempe Marketplace is the Valley Plaza shopping center, which featured a Bashas’ grocery store as its main anchor tenant for years. The Bashas’ store shuttered operations in late summer of 2011, and, while some other stores felt the loss, the closure was a boon for the longtime Water ’n Ice Store in the plaza. “The minute they left, our sales started increasing,” says owner Andy Harb, proprietor since 2005 of the location that has been open more than two decades. Harb attributes his independently owned water store’s success to his ever-expanding inventory, which now includes ice cream, a “wall of candy” and more soda. But even though those items certainly appeal to the drove of students next door at McClintock High School, Harb says it’s really the repeat customer that makes up his main clientele. In spite of the desolate-looking parking lot out front and in spite of the economy, he says he’s continuing to see great numbers.
Photo: Make Meaning
Smaller Stores Go It Alone
It’s also true that anchors aren’t always essential to the composition of a successful shopping center. Take the case of Kierland Commons, Macerich’s open-air property on the northeast Phoenix and northwest Scottsdale border. The demographically desirable location, with close proximity to tourists and office space, renders an anchor unnecessary. Choukalas notes, however, that Kierland Commons stores like Barnes & Noble and even some of the restaurants more or less act as anchors. And bookstores and restaurants that substitute for anchors often pack an extra punch: their longer hours mean extended shopping time for mall-goers.
inbusine ssmag.com
Make Meaning at Scottsdale Quarter
Daniel Nissanoff, a self-described “serial entrepreneur” from New York City, says his recently opened Make Meaning store — a highend, craft-oriented, retail-plus-entertainment venue where folks of all ages can delve into a variety of creative endeavors like making jewelry, candles, soap and ceramics or even decorating cakes and finish a project in a single sitting — is serving as a main draw for the upscale Scottsdale Quarter shopping center. “They view us as an anchor,” says Nissanoff, who’s readying a fourth store in Massachusetts and who one day envisions 400 stores in the country and another 400 throughout the world. “They’re interested in us because they see us as a way to drive traffic.” His Valley location, just across Scottsdale Road from Kierland Commons, is a prime one and not necessarily easy for just any brand to obtain, he says. But he and his team were wowed by, again, the demographics. He says that at one of his New York stores, the “trade area” (the surrounding area from which he can expect to draw customers) is about one mile and encompasses approximately 20,000 kids ages 14 and younger. At the Scottsdale Quarter store, the trade area is 15 miles and reaches 600,000 kids 14 and younger. Bob Tunis, economic development manager for the City of Scottsdale, says retail space within the city limits continues to be in high demand thanks to a number of reasons, including its affluent residents and low sales tax, which is currently at 8.95 percent. “When you think about it, we’ve gone through a major recession and we’re still growing,” he says. “As long as the tourists keep coming, retail can grow.” Indeed, say Choukalas and Malin, there is no magic formula, ratio or mix of stores that can guarantee a shopping center’s success. It’s really just up to the developer to tap into what the market is demanding. “It really comes down to understanding consumers, paying attention to what they want and operating a savvy business model,” Choukalas says. J u n e 2012
27
Retail Hits the Streets
Of course, one doesn’t even have to have a traditional storefront to connect with one’s customers. Independent entrepreneur Julia Hutton has proven that with her out-of-the-box thinking and approach to retail. The founder of Orca Communications, a Valley public relations firm, Hutton retired to the Cottonwood area a few years ago and, after watching hordes of bikers cruise past on the highway, decided to open a clothing shop catering to the Harley Davidson set. Biker Babes and Beyond opened about three years ago, but it turned out that neither bikers nor their babes were exiting the freeway to browse for togs. “It was really fun, but I was going to go broke if I stayed in it,” Hutton says of her shop, which had overhead costs that were steadily draining her bank account. So she brainstormed ideas about how to make her business successful, and she determined that what frustrated her most was not being able to follow those crowds of bikers. She wanted to take her business to her customers, but she felt mired in quicksand. “I felt so
stuck — and I can’t emphasize the word ‘stuck’ enough — with a brickand-mortar store,” she says. After scoping out the trailer of a visiting friend, Hutton hit on the idea of a trailer-based retail operation. She was soon decking out a 7-by14-foot trailer with all the Biker Babes trappings — cubbies packed with T-shirts, racks of clothes and even a fitting room — and could instantly see all the prospects of being a mobile retailer. “I just loved the idea of being able to close my doors and go,” she says. And, just like that, Hutton had created yet another business: ExTreme ReTrailers, which customizes trailers for others wanting to take their show on the road. She now operates three trailer-based enterprises: Biker Babes; the Man Cave, which offers $5 haircuts; and Bling N’ Things, which offers glitzy women’s wear. Paid staffers, whom she requires to be “affable and charismatic,” do the driving and sales at fairs, markets and events. So far, sales are fabulous — so good, in fact, that the bank account she once saw hemorrhaging is now “going the other direction.”
Biltmore’s State of UNION
But unique approaches to retail experience are being explored at established retail centers as well. The tony outdoor Biltmore Fashion Park in Phoenix is getting ready to debut a new space devoted to local and independent entrepreneurs. Encompassing a total of 7,200 square feet on the shopping center’s east side, UNION — a name chosen by the smaller shopkeepers themselves as a summation of what they’re doing — will open in November and be comprised of about a dozen shops and kiosks, all accented with a lot of wood, chandeliers and sliding doors. Mary Boyd-Williams, senior manager of leasing for Macerich, which operates Biltmore Fashion Park, came up with the concept a few years ago to not only continue the shopping center’s distinctive flair but also to give local and independent businesses unprecedented visibility and access to an audience that they had perhaps not ever had. The concept was shelved for awhile but was revived last year and put into action with assistance from Lew Gallo, a local entrepreneur who is acting as a consultant to the project. “Mary saw an immediate need for local retailers, she knows the demographics and put together this plan,” Choukalas says. “UNION will be like a mini department store.” Individual stores will range from about 250 to 500 square feet, and although leases haven’t been signed yet, it’s safe to say customers will be able to find food items, body care products and the like. “I haven’t seen anything like it,” Boyd-Williams says, adding that UNION might best be described as Fred Segal-meets-San Francisco’s Ferry Building-meets-Phoenix. “It’s definitely different than anything we’ve seen.” And, while having 7,000 square feet of retail space available in a shopping center could be a negative, Choukalas and Boyd-Williams prove it’s not. “It really serves the landlord to get creative about real estate,” Choukalas says. “It’s given us the platform do things such as UNION.”
Future Challenges for Retail Scottsdale Quarter
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J u n e 2012
As for challenges to the retail scene, Ahlmer says it’s not chainversus-independent competition that’s been a problem but the advent of online sales. She’s tried to call a lot of attention to the fact that millions inbusine ssmag.com
Photo: Scottsdale Quarter
What’s important is connecting with the customers, says Divaz owner Reiss. As Ahlmer points out, “The larger chains have to have bigger staff, and they don’t always have the depth of knowledge [that a smaller store can offer].” So, for independents, the key to keeping the doors open can be offering specialized product lines — ones that, for example, are not offered online — or focusing on more personalized attention.
Biltmore Fashion Park
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of dollars in sales tax are going uncollected and she’s trying to change the perception many people seem to have that when they go online and make a purchase, their transaction is tax free. It’s not, she says; consumers are supposed to remit the use tax themselves. She and the Arizona Retailers Association are working to see that all retailers take on that responsibility to even the playing field on price. In the meantime, retail is alive and well in the Valley of the Sun. The chains may be running leaner and meaner these days, but they’re still there. And the independents, well, they just keep coming, driven by those with dreams and old-fashioned entrepreneurial spirit — like Nissanoff, a former attorney who left law to follow his passion for business and creating companies. Independents aren’t just surviving — they’re even expanding. In fact, although water-store owner Harb in recent years had to sell a second store and experienced bankruptcy with a third, things have been going exceptionally well lately. He just opened a new location at Mill and Southern avenues in Tempe, and even he seems a bit amazed by his good fortune.
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Finance
Fundamentals of Funding
New Law Means New Funding Opportunities for Entrepreneurs CROWDFUND Act of 2012 opens avenues for raising capital online By Nick Jensen
Those who are committed to the notable insights of Milton Friedman and the obvious tenets of dining out know there is no such thing as a free lunch. But on April 5, 2012, economists and aphorisms alike were suddenly confronted by a complimentary new law that many entrepreneurs and commentators are calling a “game changer” for raising capital and investing online. Conveniently dubbed the Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure (CROWDFUND) Act of 2012, the law provides an official avenue for entrepreneurs to raise capital online by “crowdfunding,” the term coined to refer to the concept of raising money by soliciting small amounts of money from a large pool of investors. Passed in an attempt to give small and emerging businesses easier access to capital, the act brings venture capital and private equity investing from Wall Street to Main Street. Opportunities for small businesses and entrepreneurs abound. Are you a developer in need of seed money to take your product to market? A film director looking to get your project financed? A community organizer hoping to rehabilitate a neighborhood riddled by blight? Don’t have significant collateral for a traditional bank loan? Don’t have access to a trust fund or connections to wealthy angel investors or venture capitalists? The CROWDFUND Act was written for you. Fellow entrepreneurs and creative-minded individuals are already riding the crowdfunding zeitgeist. Indie film directors and musicians and product developers have raised millions of dollars over the past few years using websites like Kickstarter and IndieGoGo. One independent product developer raised more than $1.4 million on Kickstarter (mainly through individual donations of less than $200) to develop a new iPhone dock. Locally, Arizona film producer Nicholas Holthaus recently raised more than $15,000 on Kickstarter to produce an independent film about the 1990’s Tempe, Ariz., music scene. In
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all, online contributors pledged nearly $100 million in 2011 through Kickstarter alone, representing a nearly four-fold increase over 2010. The CROWDFUND Act takes crowdfunding to the next level. Until now, online fundraisers like Holthaus have been forced to rely solely on donations from simpatico online contributors, in exchange for various “rewards” that correspond with different levels of financial support. For example, a $19.91 donation to Holthaus’s film project Stuck Outside of Phoenix could have earned the donor a spot as an extra in the film (for $8,000, he and his musician friends would have flown to the donor’s house where they would have played a musical set, given guitar lessons and cooked dinner for the donor, among other things). The reason for these elaborate, and often creative, donation-reward schemes is simple: Thanks to federal securities laws written during the Great Depression, would-be entrepreneurs are prohibited from incentivizing online investors by simply offering them a cut of potential profits or even from asking them for a loan. The CROWDFUND Act removes this restriction and makes it legal to raise money online (up to $1 million in a 12-month period) by borrowing money from investors or from issuing stock or other securities in the proposed venture. By posting the offering on a “funding portal” website that is registered with the Securities and Exchange Commission, an entrepreneur can solicit online investors to loan money or even purchase stock in the company. Potential investors who register with the funding portal website will be able to evaluate the potential risks and rewards of an offering and choose whether or not to invest. Individuals with annual incomes of $100,000 or less can invest up to the greater of 5 percent of their income or $2,000 per year in crowdfunding offerings. Those with annual income or net worth of more than $100,000 are capped at 10 percent of their income or net worth, or $10,000, whichever is greater (up to a maximum of $100,000) per year. inbusine ssmag.com
Books At this point, those wondering how to cash in on this new law and bring their great new business idea to the masses might want to hold that thought, at least for a moment. First, because the SEC is still working out the details, the CROWDFUND Act will not take effect likely until the end of this year. Second, remember Uncle Milton’s advice about that free lunch. To start, the law imposes some pretty significant disclosure and compliance requirements in order to be able to take advantage of the crowdfunding exemption. For example, soliciting businesses will need to disclose their detailed business plan and tax records, and provide financial statements that are reviewed by an independent accountant (or audited financial statements for those raising $500,000 or more). Any material misstatement or omission in the disclosures could result in the soliciting party being subject to a lawsuit from offended investors. Not to mention those who do successfully raise money in a crowdfunding offering but don’t structure the offering carefully could be faced with an investor relations nightmare, significant tax reporting costs and other headaches. One small misstep could also make it difficult if not impossible to raise additional money in the future from traditional sources such as venture capital or institutional investors. The moral of the story? Entrepreneurs looking to take advantage of the new crowdfunding exemption should indulge in this admittedly self-serving advice: Get a lawyer. In addition, before eschewing venture capital in favor of the online masses, entrepreneurs should also consider that experienced angel investors and VC firms bring more than money to the table. An early-stage venture could likely benefit from the wisdom, experience and corporate connections that these traditional investors contribute along with their funds. Investors looking to invest in crowdfunding offerings, hoping to get in on the ground floor of the next Facebook or Instagram, should know this: For every Facebook there are a thousand failed ventures. In fact, the simple truth is that most startups fail. While the CROWDFUND Act puts several restrictions on both issuers and funding portals in order to lessen instances of fraud, even an investment in an honest and well-meaning crowdfunding venture puts an investor at risk of losing his or her entire investment. In the end, it may be better for the investor to accept a “reward” in exchange for his or her “donation.” For entrepreneurs and investors alike, only time will tell if crowdfunding will make a lasting beneficial impact on small businesses, jobs and the economy. Some dismiss crowdfunding as not very useful or simply a fad. Still others lament the removal of longstanding rules and regulations designed to protect investors. Yet there are more than a few who see crowdfunding as a potentially revolutionary tool for democratizing access to capital in the digital age, utilizing the Internet and the free market as a platform to create jobs and new technologies. Lewis and Roca LLP lrlaw.com
Nick Jensen is an attorney in the Corporate and Securities, Mergers and Acquisitions, Taxation and Real Estate practice groups at Lewis and Roca LLP, a business-focused law firm with offices in Phoenix, Tucson, Las Vegas, Reno, Albuquerque and Silicon Valley. Jensen represents businesses, investors and entrepreneurs in a variety of industries on legal and tax matters.
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Money Matters
The Aftershock Investor: A Crash Course in Staying Afloat in a Sinking Economy Get advice on protection and profits in the short- and long-term future from the experts who accurately predicted the financial crisis of 2008, and who now have more detailed information about what is yet to come. From the authors who accurately predicted the domino fall of the conjoined real estate, stock and private debt bubbles that led to the financial crisis of 2008 comes the definitive guide to protection and profit in 2012 and beyond. This book offers what readers have been clamoring for: a detailed guide to how to put Aftershock in action, with 14 new chapters on what investors need to know to survive and thrive in the next global money meltdown. David Wiedemer, Ph.D.; Robert A. Wiedemer; and Cindy Spitzer $29.95 John Wiley & Sons, Inc. August 2012
The Debt Bomb: A Bold Plan to Stop Washington from Bankrupting America At a time when millions of Americans are speculating about what is broken in Washington, The Debt Bomb is a candid, thoughtful, non-partisan exposé of the real problems inside our government. Senator Tom Coburn challenges the conventional wisdom that blames lobbyists, gridlock and obstructionism, and places the responsibility squarely where it belongs: on members of Congress in both parties who won’t let go of the perks of power to serve the true interests of the nation — unless enough citizens take bold steps to demand action. Sen. Tom A. Coburn, M.D., and John Hart $24.99 Thomas Nelson, Inc. On shelves & online
The Alpha Masters: Unlocking the Genius of the World’s Top Hedge Funds This book crawls inside the minds of today’s most brilliant investors to get the play-byplay of their best (and sometimes worst) investments. Readers will feel as though they are sitting across from the likes of John Paulson and David Tepper as they share their most sought-after techniques and analyses. The book provides insights into the industry, its rapid evolution and its adaptability to a constantly shifting investment landscape. But, most of all, it introduces readers to fascinating leaders, in depth. The author gives readers insight into what it takes to be successful in this most demanding profession. Maneet Ahuja $29.95 John Wiley & Sons, Inc. On shelves & online
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Marketing
Packaged to Impress
Tourism Retools Its Marketing Strategies New approaches to meeting consumer demand have broad application to business
Phoenix and its tourism sector’s fate and fortunes are deeply intertwined. An estimated 13 to 15 million visit the city annually; in 2010, the economic impact of visitors to Arizona statewide was $17.7 billion and $2.8 billion in Scottsdale alone. Tourism is the most significant economic driver for the state; any shift in tourism earnings impacts widely. The industry has taken a hit in recent years due to the decrease in group business bookings, a result of corporate belt tightening, and cutbacks in leisure travel, fallout of the contracting economy. But the sector is reviving, and lessons learned during the downturn have resulted in leaner, more targeted marketing by businesses and trade associations in the sector. Welcome to the new digital era for hotels and destinations, where online marketing and social media predominate — and one with many applications for other enterprises. More so than a lot of industries, the tourism and hospitality business (hotels, restaurants and destinations) has moved ad spends and outreach aimed at potential customers online. With so
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many ways to research a property on the Internet — which include using popular customer review sites like Trip Advisor, Yelp or Oyster.com — the consumer has almost endless ways to shop and compare. Add in social media and third-party discount programs — of which Groupon, Living Social, Jetsetter and Luxury Link stand out — the major trend in travel is toward online search, up from even five years ago. “We’ve changed how we market our properties,” confirms Josh Herman, regional director of marketing for KSL Resorts, the independent luxury resort management company that manages Scottsdale’s Montelucia Resort & Spa. The shift has been away from print and into the online space, as online has numerous benefits that include the ability to reach out to potential customers in markets where TV or print ad buys are budget busters — Los Angeles, New York and Chicago, for instance. The ability to easily craft an “inbound marketing message” is another advantage to online ads. Explains Herman, “Inbound marketing messages are heavily targeted towards
already-qualified customers, such as someone searching Trip Advisor for Scottsdale resort information.” Online ads are directed toward those who are already interested in the product and ready to make a purchasing decision. Online outlets allow an exacting degree of customization, notes Rachel Pearson, director of corporate communications, Scottsdale Convention & Visitors Bureau. “We can say, ‘Here are the 20 zip codes we want to hit,’” observes Pearson, who notes the Scottsdale CVB uses print strategically, favoring regional ad buys over national ones. By utilizing research provided by a variety of sources such as the city, CVB member customer data and the Arizona Office of Tourism, messages are targeted in advance. Information on who books properties is compared to inquiries, which are referenced against past marketing efforts. “Research is worth the investment because it makes every program thereafter more valuable and effective,” says Pearson. Analytics were behind the recent redesign of the Greater Phoenix Convention & Visitors inbusine ssmag.com
Photos: Peter Jordan Photography (top)
by Kathy A. McDonald
Photos: Scottsdale CVB (top), Jeff Bridges (bottom)
Bureau’s website. To appeal to its primary online audience — women above age 35 with $100,000 or more in household income — the website now sports a friendlier user interface and warmer colors, all optimized for mobile search. Research and digital technology come together in the placement of digital billboards, a relatively new advertising media that presents a brightened, hyper-realistic image. “We might run a digital billboard in Chicago along the freeway in winter, where the bright blue Scottsdale sky comes through dynamically,” Pearson explains. Professional imagery, which accurately depicts a site or property, is always worth the investment, notes KSL’s Herman. “We spend a lot of money on photography; it’s worth more than a thousand words,” he says. Instead of casting a wide mass-media net, hotel properties have honed their publicity materials and narrowed invitations to journalists. “We’re targeting those avenues that can get our message out there,” explains Renee Angeles, CopperWynd Resort and Club’s director of sales and marketing. The 32-room Fountain Hills property is re-emerging into the marketplace after a two-year closure. With a full-service spa, fine dining restaurant and 1,800 square feet of meeting space, CopperWynd, Angeles acknowledges, “is working off a finite customer base.” To that end, the resort has focused on its unique selling points: a view-rich property with excellent food service. “We can’t be everything to everybody,” says Angeles. Defining and reaffirming CopperWynd’s strengths and appeal was elemental to the resort’s return to fundamentals in its marketing message — a strategy that can be repeated and applied to any business. “Stay true to who you are; don’t try to be what you’re not,” Angeles advises. In today’s competitive marketplace, Award-winning actor Jeff Bridges performed a Fourth of July concert with his band, the Abiders, at the Arizona Biltmore
Scottsdale CVB billboard in Minneapolis
and with comparison shopping a click away, separating from the competition is essential. Becky Blaine, public relations and marketing manager for the Arizona Biltmore, echoes the importance of identifying a business’s competitive set and seeing where the differences are. “What can we do that sets us apart from competition? What are our hallmarks?” were among the questions management asked, says Blaine. The Arizona Biltmore’s storied history, long-standing reputation as a celebrity playground and culinary program became focal points when the hotel revised its marketing strategies in 2010. Among the initiatives launched were a series of public, relatively low-admission-charge events: Celebrity-made wine tastings were paired with a film via Hollywood and Wine; a concert series featuring famous musicians launched with the (Kevin) Bacon Brothers in 2010; and weekend cooking series continue to bring in high-profile chefs and cookbook
authors. The often sold-out events, and concurrent PR and social media buzz, help drive business and awareness all year ’round, Blaine finds. While winning and keeping customers through hospitality is natural to the tourism industry, top-notch customer service is a goal every business should aspire to — and nothing can replace the personal touch, even online. The online and social media world, which demands immediate interaction and transparency in imagery and information, requires a new kind of employee who is adept at social media, who can manage website relationships and coordinate digital content creation. Michael Gildersleeve, managing director of the 34-room Hermosa Inn that is home to Lon’s at the Hermosa, authorizes employees to post updates from the restaurant and bar — like a new dish or a new cocktail creation from the mixologist — on Twitter, Foursquare and Facebook. “We have to keep up,” affirms Gildersleeve. He finds, “We haven’t lost older [or previous] customers via technology”; instead, “We’re carving out a whole new demographic.” Arizona Biltmore arizonabiltmore.com Arizona Office of Tourism azot.gov/contact-us CopperWynd Resort and Club copperwynd.com Greater Phoenix Convention & Visitors Bureau visitphoenix.com Hermosa Inn hermosainn.com Montelucia Resort & Spa montelucia.com Scottsdale Convention & Visitors Bureau scottsdalecvb.com
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NonProfit
by Sue Kern-Fleischer
Actions to build Community
National Multiple Sclerosis Society, Arizona Chapter: Cycle to Support What could be more exhilarating than participating in a two-day, 150-mile bike ride amidst the majestic red rock scenery of Sedona and Verde Valley … all for a good cause? Plan now to register for the Bike MS: Ride the Vortex – Sedona Verde Valley fundraising event next April. With route options for every level of cyclist, the popular ride attracts more than 800 cyclists each year. Mother Nature added excitement to this year’s event with a freak storm sandwiched between two sunny days. The route was designed so participants would have an easy downhill for the last 13 miles of the ride but, because of the volatile weather, participants had a rough 30-mile-an-hour headwind during that last stretch. Despite the strong winds, cyclists soldiered on to the finish line, where a celebratory festival awaited them, complete with great food, live music, a beer garden, massage tent and fun games. This year’s event raised $551,000, which supports education, advocacy, research and local programs that enhance the quality of life for people with Multiple Sclerosis and their families. National Multiple Sclerosis Society, Arizona Chapter nationalmssociety.org
Snapshot The Arizona Chapter of the National MS Society has been serving the State of Arizona since 1956. During this time, advances in research have led to treatments and therapies where none existed only 15 years ago. The Arizona chapter of the National MS Society serves more than 8,000 Arizonans affected by MS.
■■ ■■ ■■
Advocacy Coordinator Siobhan Taylor with a pair of volunteers at the State Capitol for the organization’s Lobby Day in March
■■ The Arizona chapter of also works to improve the quality of life for the estimated 45,500 Arizonans affected by MS throughout Arizona. ■■ A recently launched initiative by the national organization seeks to raise $250 million for research funding by 2015.
Children’s Action Alliance: Through the Eyes of a Child Inspires to Action
and honor the talent of our community, it restores our commitment to improving the lives of every Arizona child,” says Dana Wolfe Naimark, CAA president and CEO. The inspirational awards program includes a silent auction that features artwork, pottery and photography created by local high school students. This year, the Arizona School for the Arts percussion group will perform during the lunch program, and volunteers from Phoenix and Tempe Union High Schools will
2011 honorees Armando Flores, director of communication with ASU baseball, and Debbie McCune Davis, state legislator and child health advocate, with Dana Wolfe Naimark (far left) and CBS 5 News anchor Catherine Anaya
be helping out. The event will also recognize Phoenix Children’s Hospital, Banner Health and the University of Arizona Medical Center for their exceptional hospital care designed specifically for children. Children’s Action Alliance azchildren.org
Snapshot
■■ Tickets go on sale in late August for the Through ■■
the Eyes of a Child Awards Luncheon set for Fri., Oct. 12, at the Renaissance Phoenix Downtown. Through information and action, CAA seeks to influence policies and decisions affecting the lives of Arizona children and their families on issues related to health, child abuse and neglect, early care and education, budget
and taxes, juvenile justice, children and immigration, and working families.
■■ Since 1988, the nonprofit has worked toward a future in which all children have health insurance, no child is raised in poverty and hunger, every child enters school ready to learn and succeed, no child endures the ravages of abuse and neglect, every child
■■
has a place to call home, and struggling teens have the support they need to become responsible adults. Though organizationally small with a staff of 10, CAA’s influence is great. Last year, CAA informed and inspired more than 1,850 Arizonans with presentations on children’s issues and tips on how to get involved.
In business to do good for the community, nonprofits enrich the lives of those who contribute as well as those who receive. In Business Magazine showcases two nonprofits in each issue, focusing on their business organization and spotlighting an upcoming fundraising event.
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Photos: A National Multiple Sclerosis Society, Arizona Chapter (top), Children’s Action Alliance (bottom)
A whopping 253,000 children in Arizona — 16 percent of all kids — live in high-poverty areas. These children are more likely to go hungry, live in inadequate housing and lack proper health care. Enter Children’s Action Alliance, an independent voice for Arizona children at the state capitol and in the community. Each year, the nonprofit celebrates leaders for children in our community. “As hundreds of people come together to celebrate accomplishments
www.inbusinessmag.com
June 2012
O n t h e Ag e n D a
A listing of Greater Phoenix business organizations and their events. Visit www.inbusinessmag.com for an expanded monthly calendar of educational, networking and special business events.
Arizona International Growth Group
Global AZ Tech Beat Mon., June 4 — 7:30a – 9:00a Technology offers abundant opportunity for business growth, and the global marketplace offers technology businesses abundant opportunity to expand. This is the focus of Arizona International Growth Group’s June 4th presentation at ASU’s SkySong. AZIGG brings together three Arizona business leaders with expertise in the realms of business development and the global technology business for the June meeting of its Global AZ Tech Beat: Gordon McConnell, executive director for venture acceleration at Arizona State University; Hamid Shojaee, founder of Axosoft; and Steven Zylstra, president and CEO of the Arizona Technology Council. Titled “Arizona Technology Companies Going Global,” the presentation will provide executable tips that technology executives can use to grow their business, as well as real-world examples of global technology initiatives that exist here in Arizona. In comparisons with other regions, the Phoenix area scores well for technology, ranking No. 7 for the percentage of very high-tech jobs among the work force. And in a ranking of states by the number of jobs created through investments in technology and science, the most recent statistics (2010) show Arizona on an upward path at No. 15. McConnell, Shojaee and Zylstra will discuss how Arizona is doing in the technology sector and where opportunities lie. —RaeAnne Marsh Arizona International Growth Group growthnation.com/azigg
Arizona Chamber of Commerce & Industry
Arizona Chamber Celebrates Business Fri., June 22 — 11:00a – 2:00p In a season when chambers of commerce and other organizations are recognizing businesses for their achievements, there is special attention to the Arizona Chamber of Commerce & Industry’s annual awards. The 2012 Annual Awards Luncheon celebrates the successes of an individual who exemplifies what it means to be an outstanding member of the Arizona business community. The award criteria include a record of achievement demonstrating that this individual is a transformational leader who sees what is possible and, accordingly, causes her- or himself and others to move in a new direction, thereby creating what has not before existed. This year, the Arizona Chamber honors Don Robinson, president and COO of Arizona Public Service, as a transformational leader in business. Robinson, in his current position, is responsible for developing major planning strategies, developing the company’s resource plans, resource acquisition, energy risk management, budget and forecast areas, and new business ventures, as well as advising business unit leaders on major issues. Prior to assuming this position, Robinson was vice president of Regulation and Planning at Pinnacle West Capital Corporation, APS’s parent. Don joined APS in 1978 and held a variety of positions in the accounting department until he was named Administrator to Regulatory Affairs in 1982. From 1984 until 1990, he held the position of manager of Regulatory Affairs, and in 1990 was named manager of Rates and Regulation. The luncheon will take place at the Hyatt Regency Phoenix in Downtown Phoenix on June 22nd. Chamber members may register for the event for $75; non-members, $85. There are a number of sponsorships and table rates available for corporations. Those interested may contact Colleen Kielty at 602-248-9172, extension 123, or by e-mail at ckielty@azchamber.com. —Mike Hunter Arizona Chamber of Commerce & Industry azchamber.com
Notable Dates This Month Thurs., June 14
Flag Day
Sun., June 17
Father’s Day
Thurs., June 21
Summer Equinox
Agenda events are submitted by the organizations and are subject to change. Please check with the organization to ensure accuracy. See more events online at www.inbusinessmag.com.
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O n t h e Ag e n d a ARIZONA CHAMBER OF COMMERCE & INDUSTRY Annual Awards Luncheon Fri., June 22 Noon – 1:30p
Recognizing Donald G. Robinson, president and chief operating officer of Arizona Public Service Company. Members: $75; non-members: $85 Hyatt Regency Downtown Phoenix 122 M. 2nd St., Phoenix azchamber.com
ARIZONA INTERNATIONAL GROWTH GROUP Global AZ Tech Beat Mon., June 4 7:30a – 9:00a
Featuring Arizona-based technology experts on growing tech firms internationally: Gordon McConnell, executive director of VentureCatalyst at ASU; Hamid Shojaee, CEO of Axosoft and TransferBigFiles.com; and Steven Zylstra, president and CEO of the Arizona Technology Council. $20 SkySong 1475 N. Scottsdale Rd., Scottsdale growthnation.com/azigg
ARIZONA SMALL BUSINESS ASSOCIATION The Process of Business Development Thurs., June 19 9:00a – Noon
A three-hour presentation and one-hour business review process for each client. This assists start up and existing business owners to create a realistic overview of a new business model or integrate a new function into their existing business. ASBA members: $25; non-members: $40 ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com/events
ARIZONA TECHNOLOGY COUNCIL Lunch and Learn: Going Paperless Tues., June 12 11:30a – 1:00p
Discuss why you should do it, what it means and how to do it. Presented by Osam Document Solutions. Members: free; non-members: $15.
If your event is directed to helping build business in Metro Phoenix, please send us information to include it in the In Business Magazine events calendar. Email the information to: events@inbusinessmag.com.
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June 2012
Please confirm, as dates & times are subject to change.
Lunch is provided. ASU SkySong 1475 N. Scottsdale Rd., Scottsdale aztechcouncil.org
E-WOMEN NETWORK
PEORIA CHAMBER OF COMMERCE
“Accelerated Networking” Luncheon
Meet the Business Coach – Solutions for Your Issues
Lunch and Learn: Successful Outsourcing to Mexico
Jodi Low presents “Change Your Words, Change Your Life.” Topics include how the energy you put into your communication impacts how your message is received and the likelihood you gain collaboration. Members: $38; non-members: $48 Arizona Grand Resort 8000 S. Arizona Grand Pkwy., Phoenix Johnell McCauley, (623) 256-4486
Tues., June 19 11:30a – 1:00p
Learn about new opportunities, including how U.S. companies reduce IT costs up to 60 percent. Presented by TechBA. Members: free; non-members: $15. Lunch is provided. Phoenix-Tempe Gateway Center 4600 E. Washington St., Phoenix aztechcouncil.org
CENTRAL PHOENIX WOMEN Luncheon
Mon., June 11 11:30a – 1:00p
Featured speaker is Phoenix Mayor Greg Stanton. $75 The Ritz-Carlson, Phoenix 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org
CHANDLER CHAMBER OF COMMERCE SBDC Network “Email Marketing” Tues., June 12 4:00p – 6:00p
The HP Life program features “hands on” use of computer station, provided through a donation by Hewlett-Packard Corporation, and focuses on the business problem rather than the software. All software used in the program is free, open-source programs. These sessions are designed for business owners to learn to solve real marketing and business challenges. Speaker: Mark Engle, Maricopa SBDC Center Director, Certified Social Media Strategists and SBDC Business Analysts Kristin Slice and Nancy Sanders. Free. RSVP as space is limited. Chandler Chamber of Commerce 25 S. Arizona Place, Chandler maricopa-sbdc.com/events.htm
Wed., June 13 11:30a – 1:30p
GLENDALE CHAMBER OF COMMERCE “Mastering the Purchasing Maze” Procurement Fair and Trade Thurs., June 7 1:00p – 4:00p
This is the largest free-to-attend procurement fair in the State of Arizona, with an average attendance of 1000 to 1500 small businesses and government agencies. Free Thunderbird School of Global Management 1 Global Place, Glendale Don Rinehart, (623) 937-4754
GREATER PHOENIX BLACK CHAMBER OF COMMERCE National Association of Black Accountants
SCOTTSDALE AREA CHAMBER OF COMMERCE GET Phoenix Young Professionals
“GET to LEARN — Social Media Insiders” Wed., May 23 7:30a – 9:30a
Learn the most effective effective social media strategies from experienced professionals. Get answers to your questions from people in the know including Brian Critchfield of Republic Media, Lindsey Fosse of Yelp Phoenix, Jessica McGrath of Northwestern Mutual, and Linda Vejnoska of R&R Partners. $20 ASU Skysong Innovation Center 1475 N. Scottsdale Rd., Scottsdale scottsdalechamber.com
Breakfast with a Side of Yelp
All day Cost varies with type of registration; starts at $250 Sheraton Phoenix Downtown 340 N. 3rd St,, Phoenix convention.nabainc.org/agenda.html
A great opportunity for local business owners to ask questions and share feedback about Yelp, learn more about their free suite of tools for business owners, engage with online critics and network with other like-minded local businesses. Members: $20 (day of: $25); guests: $30 (day of: $35) Doubletree Paradise Valley Resort 5401 N. Scottsdale Rd., Scottsdale scottsdalechamber.com
Wed., June 13 – Sat., June 16
NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS 2012 Desert Diamonds Awards Gala Wed., June 6 11:00a – 1:00p
SBDC Network “Blogging” Free. RSVP as space is limited. Chandler Chamber of Commerce 25 S. Arizona Place, Chandler maricopa-sbdc.com/events.htm
NORTH PHOENIX CHAMBER OF COMMERCE
Employers’ Seminar Series 8:00 AM
Loud Rumor’s Entrepreneur Event
“Playing Nice In The Workplace – A Game For All Ages,” presented by Dr. Treva FreeKimbrough, EpiFhani, LLC. Members: $5; non-members: $10 Chandler Chamber of Commerce 25 S. Arizona Place, Chandler chandlerchamber.com
We are expecting this event to have another 400+ turnout considering its main focus is entrepreneurs and professionals. Free Talking Stick Resort — Degree 270 Lounge 9800 E. Indian Bend Rd., Scottsdale 480-442-7230
Tues., June 26 8:00a – 9:15p
Bring your ideas and a brown-bag lunch for this no-fee incubator session. Engage with effective networking contacts. Learn how to make strategic introductions to maximize your reach. Free Peoria Chamber of Commerce 8631 W. Union Hills Drive, Peoria Michelle Cubas, (623) 518-2125 (option 2)
2012 Annual National Convention & Expo
Members: $49; non-members: $59 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org
Tues., June 19 4:00p – 6:00p
Mon., June 11 12:30p – 1:30p
Thurs., June 21 6:00p – 9:00p
Wed., June 13 7:15a – 9:00a
A.M. Connect – Roundtable Exchange Thurs., June 21 7:15a – 9:00a
Members: free; guests: $20 Maggiano’s Little Italy 16405 N. Scottsdale Rd., Scottsdale scottsdalechamber.com
Airpark Forum: Airpark Real Estate Update Fri., June 29 7:30a – 9:30a
Panel discussion about recent additions, changes and rumors about real estate in the Airpark. Members: $20 (day of: $25); guests: $30 (day of: $35) ZONA Resort Suites 7677 E. Princess Blvd., Scottsdale scottsdalechamber.com
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Please confirm, as dates & times are subject to change.
SOUTHWEST VALLEY CHAMBER OF COMMERCE Annual Awards Dinner Sat., June 23 Cocktails start at 5:30p
$50 Wigwam 300 E. Wigwam Blvd., Litchfield Park Danielle, (623) 932-2260
SURPRISE REGIONAL CHAMBER OF COMMERCE POWER Women in Business Luncheon Tues., June 19 11:00a – 2:00p
“The Myth of the Ideal Worker: Does Doing all the Right Things Really Get Women Ahead?” Presenter is Karen Thomas, a human capital specialist. Members: $35; non-members: $45 SKYE Restaurant 16844 N. Arrowhead Fountain Center Dr., Peoria Mary Orta, (623) 583-0692
Business Education Seminar Wed., June 27 8:30a – 10:00a
Free UltraStar Cinemas 13649 N. Litchfield Rd., Surprise Mary Orta, (623) 583-0692
TEMPE CHAMBER OF COMMERCE Networking @ Noon Thurs., June 14 11:30a – 1:00p
Learn the art of relationship-building, enjoy a fantastic lunch and have fun promoting your services at this “speed dating for business” event. Members: $25 in advance, $30 on day of; general public: $35 Location TBD Sachiyo Ragsdale, (480) 967-7891
Hot Topics and Lunch: “Business Ethics” Thurs., June 21 11:30a – 1:00p
When even the CEO of Yahoo fudges his resume, it’s clear that business ethics are a concern across all strata of the community. Featuring: Marianne Jennings, a professor of legal and ethical studies in business in the W.P. Carey School of Business at ASU. Members: $25 in advance, $30 on day of; general public: $35 Monti’s La Casa Vieja 100 S. Mill Ave., Tempe Sachiyo Ragsdale, (480) 967-7891
WEST VALLEY WOMEN “Bring a Gentleman to Lunch” Luncheon
$35 SKYE 16844 Arrowhead Fountain Center Dr., Peoria westvalleywomen.org
WOMEN OF SCOTTSDALE Monthly Luncheon Fri., June 15 11:30a – 1:00p
Annual Business Luncheon includes miniexpo promoting member businesses. $35 The Westin Kierland 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org
OTHER BUSINESS EVENTS Arizona Hispanic Chamber of Commerce – Office 2010 Tues., June 5 8:30a – 9:30a
Microsoft hosts its partners from the Arizona Hispanic Chamber of Commerce in a monthly technology workshop. Public welcome. Free The Microsoft Store 7014 E. Camelback Road, Scottsdale scottsdaleevents@microsoft.com
Tues., June 5 11:30a – 1:00p
Phoenix IT Startups Meeting Wed., June 13 6:30p – 9:00p
Catalyze your entrepreneurial potential. Do you have a great business idea but no team to implement it? This group is a great way to find the industry experts! Free The Microsoft Store 7014 E. Camelback Road, Scottsdale scottsdaleevents@microsoft.com
Business Professionals Breakfast Thurs., June 14 8:30a – 10:00a
Come prepared with your questions, as this will be an open format for you to get the answers pertaining to your business or industry. Starbucks coffee and a continental breakfast will be served. Free The Microsoft Store 7014 E. Camelback Road, Scottsdale scottsdaleevents@microsoft.com
The Technical Edge: Networking for Real Estate Professionals Mon., June 25 4:00p – 6:00p
Enjoy refreshments while mixing and sharing ideas and leads with other real estate professionals. Free The Microsoft Store 7014 E. Camelback Road, Scottsdale scottsdaleevents@microsoft.com
In Business Magazine is read by those vested in business Valleywide
To get your Marketshare . . . Advertise with www.inbusinessmag.com • info@inbusinessmag.com • (480) 588-9505 inbusine ssmag.com
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Focus
Our Subject In-Depth
Building will house the Proton Beam Therapy program
Healthcare: How Mayo Clinic’s 25 Years Has Impacted the Valley June’s anniversary of the noted medical practice and research organization marks a quarter century of economic benefit to the Valley by RaeAnne Marsh
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Mayo Clinic in Scottsdale
in which it has already demonstrated its strength by attracting nearly 100,000 patients per year from not only all 50 states but other countries as well. The program will also likely attract new satellite businesses to the area. As McVeigh points out, “Mayo Clinic has been a catalyst in attracting scores of other healthcare and medical research-related businesses and practices to the area.” Mayo Clinic’s impact has been furthered by its many collaborative efforts. One of the key collaborations has been with Arizona State University, with which it has developed a synergy over the past 10 years. A new program is set to launch in 2014, when Mayo Clinic opens its Mayo Medical School Arizona campus. “All students will complete a specialized master’s degree in the Science of Health Care Delivery granted by ASU, concurrently with their medical degree from Mayo inbusine ssmag.com
Photos: Mayo Clinic in Arizona
In its 25 years in Scottsdale, Mayo Clinic has been not only a significant provider of healthcare services but a powerful driver of economic growth and catalyst for economic development. A study by the respected Battelle Technology Partnership Practice in 2010 reported the economic impact of Mayo Clinic in Arizona at $1.5 billion Valley-wide. This month’s anniversary celebrates Mayo Clinic’s continually growing legacy, the latest installment of which is the Proton Beam Therapy program that will be a first in the Southwest. According to Mayo spokesperson James McVeigh, Proton Beam Therapy is a cutting-edge cancer treatment that provides more precise radiological cancer treatment than has been possible to date. Mayo Clinic researchers developed the program, and construction began last December on a massive $182-million, 100,000-square-foot building next to the Mayo Clinic Hospital in northeast Phoenix to house the program. (Parallel efforts are taking place at Mayo Clinic’s home base in Rochester, Minn.) This boost to the construction industry will be followed by additional permanent medical jobs when the facility hits its anticipated opening date of 2016. The Proton Beam Therapy program will further the Mayo Clinic’s impact in the growing area of medical tourism, an economic factor
Medical School,” says McVeigh. The program will enable doctors to better help patients navigate an increasingly complex healthcare system and enhance healthcare delivery. “This is believed to be the first medical school to offer such a program,” he adds. Tying education to research, Mayo already houses two other ASU departments: Biomedical Informatics and the Metabolic Research Unit. Research and collaboration are core facets of Mayo Clinic, and its facilities include two buildings that support the joint research programs between Mayo Clinic and the Translational Genomics Research Institute focused on cancer and genomics. “Mayo Clinic has provided jobs for thousands of residents and education for doctors, nurses and other medical professionals,” says McVeigh. It employs 5,500 directly, plus impacts jobs for its many vendors. Battelle’s study two years ago calculated Mayo Clinic’s presence supported employment for more than 10,600 people. McVeigh notes also that it “has been a catalyst in attracting scores of other health care and medical research related businesses and practices to the area.” Mayo Clinic’s impact was formally recognized last month at the Greater Phoenix Chamber of Commerce Impact Awards when it was presented the first Economic Driver Award. “Criteria for the Economic Driver Award were
based on highlighting a business or organization that contributed substantially to the economic vitality of the Greater Phoenix community,” says Chamber spokesperson Jody Ryan. Noting the Chamber’s efforts to keeping Arizona a competitive place to live, work and play, she explains the new Impact Award category was created because “we thought it was important to highlight a business in the Valley that had a similar focus backed by proven results.” The genesis for this important Valley institution lies back in the 1930s, when Mayo brothers William James and Charles Horace would vacation here. In the 1980s, when Mayo Clinic expanded from Minnesota to other parts of the country, the Valley was chosen because “they felt a kinship to the Southwest,” McVeigh shares. (A third Mayo Clinic is located in Jacksonville, Fla.) The first facility to open here was an outpatient clinic in eastern Scottsdale in 1987. A decade later, says McVeigh, “After being here for a while, they felt the need to build their own hospital.” Mayo Clinic Hospital opened in 1998, the first hospital the organization designed and built itself. In addition to the two large campuses, the integrated Mayo Clinic in Arizona system encompasses several primary care centers in locations throughout Metro Phoenix. Mayo Clinic in Arizona mayoclinic.org/arizona
Mayo Clinic Hospital in North Phoenix
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Education
Series on leveraging social media
The Marketing Bonanza of Facebook and Twitter
There is potential that is not only under-utilized but often poorly managed by Josh Dolin Facebook and Twitter are highly effective tools for business marketing. Just as celebrities use social media to increase popularity and engage fans, companies use it to reach and retain customers. Facebook and Twitter engage users in fun, creative ways, including mobile applications to serve customers on demand. While the service providers make their platforms more and more intuitive and user-friendly, companies are often prone to serious misjudgment in implementing social media programs. Facebook Best Practices Facebook, as 2010 hit movie The Social Network popularized to even the non-techies among us, was founded as a social networking site by Mark Zuckerberg in 2004. With 845 million active monthly users worldwide, it is surprising that only 4 million businesses maintain Facebook pages. Facebook continues to add features that help businesses get recognized and build long-lasting reputations. Businesses can host events online, conduct customer polls and allow users to post videos and photos of themselves using products. Businesses that want to rise above the competition can develop custom applications in association with Facebook. Custom applications have been extremely popular with mobile device users, allowing them to access company and customer data at any time. As ubiquitous as Facebook has become, it is not necessarily wellemployed by businesses. In fact, businesses using Facebook for the first time or those launching a new social media campaign commonly make three potentially damaging mistakes: ▶▶ Automating Facebook Posts — Companies set up a Facebook Business Page and automate posts with little or no follow-up monitoring. While automation is a useful tool, it should not be a replacement for live interaction between company staff and customer comments. ▶▶ Posting Poor Quality Content to Save Time — Because keeping up to date with Facebook postings is a challenge, some companies post repetitive, generic information on loosely related topics. Continuously posting relevant information dramatically improves SEO because search engine algorithms index Facebook page content and rank results accordingly. ▶▶ Launching Paid Advertisements Prematurely — Companies eager to use all of the features of Facebook spend money on Facebook’s
Social Media – the Education Series q The Social Media Advantage q The Marketing Bonanza of Facebook and Twitter q Social Strategizing with LinkedIn To reference published segments, please access the archived “Education” articles on the In Business Magazine website, www.inbusinessmag.com.
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paid advertisements before the company’s Facebook page is well established online. Save six months to a year of advertising dollars and invest it in mobile application development. Twitter — Short and Tweet Twitter was founded in March 2006 by Jack Dorsey as both a social networking and micro-blogging tool. Regardless of whether people follow the short texts, or “tweets,” directly, the information posted to Twitter garners 1.6 billion search queries per day — precisely why companies should take Twitter seriously as a strategic marketing tool. Even though Twitter still only has 350 million users, it has experienced phenomenal growth. The Twitter user population between ages 25 and 34 has doubled since 2010 — and securing customers in that age range is critical to tapping into consumer power over the next 20 years. Businesses can also use Twitter to promote goods and services using paid advertisements. While Twitter is not an advertising dynamo, it did add several advertising features in 2010, including Promoted Tweets, Promoted Trends and Promoted Accounts. In March 2012, Twitter launched a selfservice advertising program based on pay-per-click advertising. Some social media experts project Twitter will eventually be traded publicly, which is a good reason why businesses should follow Twitter very closely. Businesses can expect plenty of new Twitter features to be released throughout 2012, including more enhancements to showcase company logos and mottos, and the ability to prominently feature certain tweets. Many companies who started out with Facebook have discovered that it is relatively easy to coordinate Facebook and Twitter marketing using third-party software applications. Where Are Trends in the Social Media Industry Headed? The future of social media marketing is increasingly driven by consumer behavior. More users access daily news by connecting to Facebook and Twitter, although they are still a supplement to more traditional news channels. As this trend grows, smart companies will adapt their marketing strategies to include posting news clips about their industry along with product features. In addition to keeping up with established outlets, businesses should take interest in new developments. Launched in March 2010, Pinterest is a content-sharing, social-bookmarking site that encourages members to post links to their favorite things on a virtual pinboard. With Pinterest’s explosive growth over the past two years and the release of profile pages in March 2012, this social media network is worth keeping an eye on. Tempo Creative tempocreative.com
Josh Dolin, founder of Scottsdale-based Tempo Creative and author of The Web Guru Guide, has provided expertise to entrepreneurs and business executives across the United States for more than a decade. The digital marketing firm has helped more than 500 companies of all sizes achieve greater success through effective marketing.
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“We must view education as an investment, not an expense.” SHELLEY ESQUE Vice President, Intel
The education we provide for Arizona’s children will determine the kind of future we all enjoy. Arizona employers need a highly skilled, talented workforce to diversify our economy, increase job opportunities and stay competitive.That requires a stronger education system that begins at birth and continues through career. By investing time, talent and money to improve education today, we better position Arizona for long-term success. In the end, we all benefit. Education is everyone’s business. Make it your priority. Visit ExpectMoreArizona.org.
by Mike Hunter
We Value What We Own
Performance Meets Luxury: Hyundai Equus Ultimate European luxury is where the history is when it comes to a luxury sedan that is all about performance. Lexus was the Asian exception until Hyundai debuted the Equus (Latin for “horse”) Ultimate in 2009. Meant to compete directly with the BMW 7 series, Mercedes S-Class, Jaguar XF, Audi A8 and the Lexus LS, the Ultimate launched with critical acclaim, and the upgrades for 2012 are worthy of taking note. The 2012 model is equipped with an award-winning 5.0-liter V8 engine that boasts an impressive 429 horsepower and 376 pound-feet of torque. The engine is new and more powerful than last year’s 385-hp, 4.6-liter engine. All-wheel-drive is not available; the rear-wheel output does move this lux sedan. Also new is the reliable 8-speed, high-performance transmission. In automatic or SHIFTRONIC® manual mode, “it has the capacity to achieve torque converter lock-up above first gear, which dramatically closes the fuel-efficiency gap between automatic and manual transmissions,” according to the manufacturer. The height and pitch of the vehicle remain constant due to the electronic air suspension that comes standard on the Ultimate. Interiors are what one would expect from a luxury performance sedan. Leather and 2012 Hyundai Equus Ultimate suede seats that are heated and cooled — City MPG . . . . . . . . . . . . . . . . . . . . . . . . . . 15 and boast a massager — come standard. The Hwy MPG. . . . . . . . . . . . . . . . . . . . . . . . . . 23 navigation system, with its VGA screen and 0-60 MPH. . . . . . . . . . . . . . . . . . . . . 5.5 sec XM NavTraffic® map function, make this Transmission. . . . 8-speed automatic interactive system useful, easy to command MSRP. . . . . . . . . . . . . . . . . . . . . . . . $66,650 and reliable. It’s a toss-up whether sitting in the front or rear seats will allow for a better experience. The rear is equipped with side window shades, a “first-class” reclining feature with leg rest and a center console that includes a refrigerated space and independent climate and entertainment functions. The 17-speaker Lexicon 7.1 Discrete Surround Sound Audio system includes a 13-channel, high-output, digital amplifier for what is called a “premium sound.” The sedan has a weighty exterior, and its stance is solid and comparable to its European counterparts. With a forward-viewing cornering camera, advanced HID Xenon headlights and contoured styling, the Equus Ultimate may be just that and at a price significantly less than others within its class.
Office Phone Systems Go Mobile It’s about time. It is not hard to imagine a time when one phone device is all that will be necessary in communication with clients, friends, family and even that random wrong number. RingCentral, Inc. has launched the RingCentral cloud touch platform, the first phone system that enables businesses to set up, manage and use their office phone system from smart mobile devices. It’s the first phone system that allows businesses to turn any smart device into a smart business phone and turn any location into an office. “Employees are no longer tied to the office, and they shouldn’t be tied to the old office phone system either,” says Lynda Stadtmueller, director of cloud computing services at Stratecast, a division of Frost & Sullivan. “RingCentral’s cloud touch platform enables businesses to improve productivity by extending communications functionality to the places and devices from which employees are conducting business.” This platform re-imagines business phone systems, eliminating the barriers of on-premise PBX systems by making businesses’ phone systems work the way they do. Regardless of device or location, users can control their settings, access voice and fax messages and even add new users from anywhere. It enables users to access full management capabilities from any tablet or smartphone, allows for the ability to see if an employee is on the phone and integrates with Dropbox and Google Docs, enabling customers to fax documents stored in their favorite cloud application directly from their RingCentral service. RingCentral
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ringcentral.com
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Photos: Hyundai (left), RingCentral (right)
ASSETS
by Mike Hunter
Power Lunch Good Leafy Green Stuff
Meals that matter
Taking that hour-long lunch and doing something healthy for oneself is a real challenge, but we’ve found some great local spots serve up a unique salad not to be missed.
Chinese Chicken Salad
South Pacific-inspired, the Aloha Kitchen is a casual eatery with unique Hawaiian dishes. This salad is full of strips of charbroiled chicken over lettuce, garnished with green onion, cilantro, mandarin oranges and sliced almonds, served with island-style, tangy, oil and rice vinegar dressing. $7.95. Aloha Kitchen 2950 S. Alma School Road, Mesa (480) 897-2451 alohakitchen.com
Grilled Steak Panzanella Salad
The New Queen of the Barrio
Photos: Barrio Culinary Concepts (left), Aric Mei (right)
Urban and flavorful attitude make lunch here bueno Street attitude and a whole lot of Mexican spice make up this latest invention by Silvana Salcido Esparza, the famed restaurateur of Barrio Café in Central Phoenix. She took over the old Metro space at Southbridge in Old Town Scottsdale at the end of last year and invented a “dual” concept of a higher-end and a street-casual restaurant coupled to serve the classes. She has just revamped and one big Barrio Queen now takes up the whole space. Based on the success of what she knows best — Mexican street food — Esparza is back in her element serving up choriqueso, a longaniza sausage with quesillo and menonita cheese fondue; guacamole with pomegranate seeds; and her famed Mexicanstyle French fries with a spicy ketchup. Entrées include the Pollo a la Coco, a pan-seared, spice-rubbed chicken breast topped with goat and menonita cheeses, sautéed with onion and roasted peppers in a piñon cream sauce. Enchiladas, chiles rellenos, tamales and burritos are all made with creativity and unique ingredients adding great flavor and satisfaction. Tacos have a menu of their own, small bites to be ordered in amazingly varied assortment. The Mexican sandwiches, which are really Mexican-style paninis, are inventive and delicious, and come complete with fries and the Barrio slaw. And for those late-risers who are spending their lunch hour waking up, Barrio Queen offers all-day breakfast dishes that include eggs and chorizo, green chiles and eggs and several breakfast enchiladas. The décor is simple yet exciting. Usually packed with diners, this place is quickly becoming the center of attention with is expansive space and street-side patio, redefining a Spanish piece of town.
(pictured) A former salon-turned-eatery, The Parlor is home to some great pizzas. However, its inventive salads are definitely not to be missed. The steak salad is made with focaccia croutons, tomatoes, cucumbers, Gastrique onions and romesco and ricotta cheeses. $12. The Parlor 1916 E. Camelback Road, Phoenix (602) 248-2480 theparlor.us
Sashimi Tuna Salad
This Asian-inspired dish at True Food is healthy and full of flavor. Plenty of protein with the fresh tuna — seared (or not) to taste. Adding great flavor to the dish is avocado, cucumber, edamame and ginger in a light dressing or dressing of choice. $14; add $5 for grilled chicken. True Food Kitchen Scottsdale Quarter, Scottsdale (480) 265-4500 Biltmore Fashion Square, Phoenix (602) 774-3488 truefoodkitchen.com
Barrio Queen 7114 E. Stetson Drive, Scottsdale (480) 656-4197 barrioqueen.com
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LET OUR SPACE INSPIRE YOURS.
ITH US 8530 South Priest Dr. Tempe, AZ 85284
If you do, Target Commercial Interiors can enhance the effectiveness of your business environment. Our clients say that we are the best when it comes to creating high-performance, sustainable work environments that bring people together to focus, collaborate, socialize and learn.
phone 602.252.6971 www.targetcommercialinteriors.com
TEMPE CHAMBER
Tempe Chamber of Commerce 2012 Federal Agenda The Tempe Chamber of Commerce has released its 2012 Federal Agenda, stating that “American free enterprise has done more than any system ever devised to create jobs, opportunities and hope.” The agenda lays out the Chamber’s positions on a number of issues for the year. It continues, “While there are signs of budding growth, we continue to face our greatest economic challenge since the Depression. Arizonans know all too well of the critical challenges we face as a state and a nation during this economic crisis. Private sector job creation is critical to an economic turnaround. Overly burdensome regulations limit investment and imperil competitiveness. Both elected officials and administrators need to make policy decisions that will encourage, not inhibit, job growth.” Commensurate Wage: The Tempe Chamber supports the integration into the workforce of persons with all levels of disabilities through the continuation of commensurate wage rules. Energy and the Environment: The Tempe Chamber supports energy policies that increase and diversify energy supplies from alternative, traditional and renewable sources; promote energy efficiency across all sectors; and modernize and protect energy infrastructure. The Tempe Chamber supports federal policies on energy and the environment that keep our nation competitive for business location in the global economy.
Advantage June – Sept. 2O12 • tempechamber.org
Tempe Chamber names Robin Trick as Business Woman of the Year
The Tempe Chamber of Commerce has named Robin Trick as its 2012 Business Woman of the Year. She was honored at the 17th Annual Women in Business Conference and Trade Show on May 23 at The Buttes, A Marriott Resort. Trick has been co-owner and operator of House of Tricks Restaurant in Tempe for the past 25 years. She has served or currently serves on the boards of many organizations, including the Tempe Municipal Robin Trick, co-owner and operator, House of Tricks Restaurant Arts Commission; Mill Avenue Merchants Association; Downtown Tempe Community; and the Tempe Tourism Office, among others. She has also had heavy involvement with Tempe Sister Cities and is a member of Local First Arizona. Trick was awarded a Downtown Tempe Community MADEE Award and a Business Volunteer for the Arts Award from the Arts and Business Council. The Business Woman of the Year award was established to recognize an outstanding business woman who has positively impacted the Tempe community. Trick and the other two finalists have achieved excellence in their fields, displayed leadership in the community, served as positive role models and are active in programs within the community and the Tempe Chamber. They have received numerous awards and accolades for their professionalism and spirit of service. “The Business Woman of the Year award recognizes the valuable contributions that the candidates have made to the business community and to the Tempe Chamber of Commerce. Their hard work and dedication have made an admirable and positive impact that we are proud to recognize,” said Mary Ann Miller, president and CEO of the Tempe Chamber. The two other finalists were Julie Kent, owner of here on the corner, and Deborah Ostreicher, Deputy Aviation Director at Phoenix Sky Harbor International Airport.
Continued on T.C.A. 5
Continued on T.C.A. 3 Julie Kent, owner, here on the corner
Te m p e C h a m b e r. o r g
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Tempe Chamber Welcomes New Members to Board of Directors Joe Hughes Joe Hughes comes to US Airways with a strong background in lobbying at the federal, state and city levels of government and on a range of issues from construction to transportation. Before joining US Airways, Hughes held a number of positions in government affairs, the most recent being the State Director for GoRail, an organization created to support transportation solutions that include rail. His experience includes positions as Vice President of Public Affairs for the Associated General Contractors, Government Relations Coordinator for the Town of Gilbert and several years as a City Councilman and ViceMayor for the City of Safford. Hughes is a graduate of Northern Arizona University and holds a bachelor’s degree in political science.
Kelly Lorenzen Kelly Lorenzen is the Director of Business Development and Managing Editor of Social Media at Morrison Vein Institute, a world renowned medical practice specializing in vein disorders. She is the proud wife of a Phoenix firefighter and the mother of two children. Since joining Morrison Vein Institute in 2009, Lorenzen has implemented a flourishing marketing strategy, helping grow the practice by 10% per year. She also promotes public awareness about vein health to local, national and international communities. Lorenzen received her bachelor’s degree from Arizona State University, and prior to joining Morrison Vein Institute, she owned and operated a successful real estate practice. She has been an active member of the Tempe Chamber of Commerce for over five years and has served as chair of the Women in Business Council and Small Business Council. She is currently serving as Chair of the Business Owners Forum.
Mary Palomino Mary Palomino is a Senior Key Account Manager at SRP, working with high energy usage customers in the telecom and warehouse/ distribution segments. She graduated from Arizona State University with degrees in liberal arts and secondary education. Palomino, who has lived in Tempe for the last 35 years, has seen Tempe evolve from a small agricultural and college town to a thriving, vibrant city. As part of Tempe Leadership Class XXIV, she is aware of the city’s functions and the many organizations that work together to meet its diverse needs. Palomino volunteers for many SRP community projects and as a loan executive for the United Way. She is also a member of SRP’s Booster Club, which solicits donations from SRP employees, which are distributed to human and health services agencies in the Valley. She is married and has five children and four grandchildren.
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Aqeel Shahid Aqeel Shahid has resided in Arizona for 18 years. He attended Arizona State University where he earned his undergraduate degree in marketing and his MBA in technology management. During his time at ASU, he was the president of an international student association and also was the Vice President of Marketing for the Business College Council. He is still an active member of the ASU Alumni Association and an avid supporter of the Sun Devils. As a student, he also worked as an intern for Sprint selling telecommunications services to businesses in Tempe. Following graduation, he was offered a full-time position as an account executive for Sprint and was later promoted to Data Sales Manager where he managed and supported their business-to-business sales teams. Shahid then moved to Eschelon Telecom/Integra Telecom where he spent over six years as a Senior Sales Manager. In February of 2008, he joined Telesphere and is currently General Manager of the Arizona market. He has won numerous awards in sales including being a part of the “Presidents Club” for several years in his career. During his career, he has been very involved in the business community and has worked closely with business owners and executives in recommending communications solutions that have been critical to the success of their organizations. He has volunteered at several local charities, including the Habitat for Humanity and the Susan G. Komen Race for the Cure.
Brian Wood Brian Wood has been employed with Waste Management for nine years and is currently the director of operations for Arizona. Prior to joining Waste Management, Wood worked in various operational leadership positions with American Airlines for 14 years. He is a board member with The Partnership for a Drug Free America (Arizona affiliate), Mesa Arts Center Foundation and Valley Leadership. Additional community involvement includes working as a mentor with Phoenix At-Risk Youth. A graduate of William Paterson University, New Jersey, where he earned a bachelor’s in communications, he enjoys spending time with his wife Vivian and children Taylor and Isaiah.
Continued on T.C.A. 1 Kent is the owner of here on the corner, a boutique in Tempe that carries products by many local designers. Subsequent to purchasing the shop in May 2011, she was nominated as a top 10 retailer in Dallas Market Centers’ annual nationwide Next Big Give contest due to her philanthropic work for Maggie’s Place, which serves homeless pregnant women in Tempe, Phoenix and Glendale. Kent is a member of Local First Arizona and sits on the Downtown Tempe Community board of directors, as well as their Retail Committee. Kent is also a graduate of Tempe Leadership.
Te m p e C h a m b e r. o r g
Ostreicher works to make improvements at Sky Harbor and help facilitate the ease of doing business in Tempe. She is active in bringing high school and college youth to the airport to educate them on the possibilities of working in the airport and has received numerous outstanding achievement awards in marketing and communications. She received Board Chair of the Year and All Star awards from the Airports Council International; was recognized by President Bush and Point of Light Institute for her work with local homeless children; and received the Arizona Business Award for Corporate Responsibility for work with Greater Phoenix Youth at Risk.
Deborah Ostreicher, Deputy Aviation Director, Phoenix Sky Harbor International Airport
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As members of the Tempe Chamber of Commerce, you and your employees have access to exclusive discounts and programs. Through a variety of partnerships and affiliations, we are able to provide our members with discounts on legal services, identity theft protection, e-mail marketing and more, as well as provide access to educational programs and services. Visit www.tempechamber.org to take advantage of these great benefits.
President/CEO Mary Ann Miller and Chen Jianshe, Vice Mayor of Zhenjiang
Zhenjiang Vice Mayor Visits Tempe Chamber Representatives from Tempe’s sister city of Zhenjiang, China met with the Tempe Chamber to strengthen the relationship between the two cities and advance the interests of the business community. Zhenjiang is Tempe’s largest sister city with 2.9 million inhabitants. Located along the Yangtze River, it is one of China’s busiest ports for commerce.
Connect with the Tempe Chamber!
Join us on Facebook
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Read our monthly e-newsletter:
http://www.tempechamber.org/advocateonline
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Federal Spending: In such critical financial times, the Tempe Chamber strongly advocates the importance of building upon strategic best practices to produce reasonable short-term solutions and long-term financial forecasting and aiding the structural deficit. The Tempe Chamber supports spending federal funds judiciously. The Tempe Chamber supports fiscal policies that provide the opportunity to create and sustain businesses, allowing them to be successful and competitive in both national and global economies.
Labor Laws: The Tempe Chamber of Commerce opposes legislative and administrative changes that create an uneven playing field for employees to hear both sides of an issue, including shortening the time frame for union elections, allowing unions to choose their own bargaining unit within the pool of eligible employees, providing for electronic voting and requiring posting of one-sided notices. The Tempe Chamber opposes any legislation that would hamper the employer/employee relationship or job creation.
Health Care: The Tempe Chamber of Commerce supports meaningful, commonsense health care reform that will cure the problems in our system, not create new ones. Our goals should be to reduce health care costs, improve the quality of health care and expand access to health care. The 2010 Patient Protection and Affordable Care Act expands coverage but does nothing to reduce costs and improve quality. In fact, the many methods of financing the plan in the bill will only increase the cost of doing business and limit access.
Regulatory Reform: The Tempe Chamber opposes new government regulations that impede business innovation or efficiency. The Chamber supports requiring careful cost-benefit analyses by federal agencies before
We support changes to the Act that will achieve those goals without placing an undue burden on businesses through increased costs, taxes, fees, mandates, regulatory burdens and cost-shifts from government programs to businesses. We also support tort reform in the health system. Immigration: The Tempe Chamber supports federal policy to properly seal our porous borders, respond to the labor needs of the economy and resolve the issues of illegal immigrants already living in the U.S. We support comprehensive immigration policy reform that: •
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irst and foremost, strengthens border security. From guarding F the physical border to better tracking of expired visas, we must stem the tide of illegal immigration. Creates a secure, reliable system for employers to verify the legal work eligibility of employees. Employers need a federally based, user-friendly, low-cost, non-discriminatory method to ensure they are complying in good faith with the law. Establishes a market-based immigration process to support a wide range of workforce needs and to respond quickly to the employment demands of U.S. businesses. Legal international workers play an integral part in the U.S. economy. Develops criteria and establishes a guest worker/visa program for illegal immigrants already in the U.S. with no other criminal or arrest record, which is based on strictly enforced criteria, including payment of penalties. Productive, integrated members of our society should be given an opportunity to continue to add to our economy. Reimburses states for the costs of incarcerating, educating and providing health care for individuals in the country illegally. The Federal Government should take responsibility for the breakdowns in federal immigration policy.
Te m p e C h a m b e r. o r g
enacting new regulations that add costs to business. The Tempe Chamber supports streamlining the exceptional events process by authorizing states and tribes to make case-by-case determination as to when natural conditions, windblown dust and other forces outside of their control cause an exceedence of air quality standards. Trade: The Tempe Chamber of Commerce supports a free-trade policy that recognizes that global trade, capital and talent are fundamental to a successful free enterprise system. Transportation: The Tempe Chamber supports Arizona receiving its equitable share of federal transportation dollars, instead of continuing its position as a donor state. We support the passage of federal highway, transit and safety legislation that, at a minimum, maintains current investment levels. The Tempe Chamber opposes an increase to aviation security fees and the creation of a new departure tax for commercial flight departures. Unemployment Insurance: The Tempe Chamber supports legislation to help Arizona and other states resolve the temporary strain placed on its state unemployment insurance trust fund by extending the interest-free period on loans from the U.S. Department of Labor and waiving Federal Unemployment Tax Act (FUTA) penalties.
T e m p e C h a m b e r A d v a n ta g e
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Discover Cuba with the Tempe Chamber! Embark on a once-in-a-lifetime journey to Cuba with a special offer through the Tempe Chamber of Commerce and Chamber Explorations. Chamber Explorations has been issued a license by the Department of the Treasury, Office of Foreign Assets Control, which authorizes registered guests of this program to visit Cuba legally. There are no applications to complete, and your travel with us is fully authorized. A limited number of seats are still available on trips leaving July 26 and Aug. 2. This nine-day trip will take you from Miami to Havana, Cuba. Upon arrival at Jose Marti International Airport, we’ll meet our Cuban host, an experienced bilingual guide who will give us an orientation of Cuba’s capital city. Some of the many sights you’ll see in Havana include the Cathedral de la Havana; the beautiful Museo de la Revolucion that displays documents and artifacts telling the country’s history; La Marketa de Havana in Old Havana, a collective association of small craft workers
where you will meet local merchants and artists; and much more. During this trip, you will also enjoy Pinar Del Rio Vinales, Cienfuegos, Trinidad, Sugar Mill Valley, Playa Giron/Bay of Pigs Museum, Hemingway’s Farm and so much more. Cost is $3,874 per person double with a $600 single supplement. Price includes roundtrip airfare from Phoenix; Cuban travel visa; eight nights of first class hotel accommodations; 19 meals; and more. For all trip details, visit www.tempechamber.org To register, contact Mary Ann Miller at (480) 967-7891 or maryann@ tempechamber.org.
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T e m p e C h a m b e r A d v a n ta g e
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Board of Directors Chairman of the Board: Dave Long Chair-Elect: Jack Pisano Mary Ann Miller, President and CEO, maryann@tempechamber.org
Treasurer: Phil Howard Vice-Chairs: Margaret Hunnicutt, Kristine Kassel, Jeff Mirasola
Sean Donovan, Vice President, Media and Program Development, sean@tempechamber.org
Immediate Past Chair: Steve Bauer
Liz Garlieb, Membership Development, liz@tempechamber.org Shari Hodziewich, Membership Development and Retention, shari@tempechamber.org Renee Lopata, CAE, Senior Vice President, renee@tempechamber.org
Directors: Steve Eberhart, Margaret Hunnicutt, Kristine Kassel, Sharon Kausal, Mark Masten, Jeff Mirasola, R.J. Orr, Laura Robertson, Tim Ronan, Jackie Thompson, Liz White Ex-Officios: Jayson Matthews, Charlie Meyer, Stephanie Nowack, Virgil Renzulli
Sachiyo Ragsdale, Communications Director, sachiyo@tempechamber.org Heidi Santos, Bookkeeper, heidi@tempechamber.org
Committee Chairs: Kjell Andreassen, Neil Chitel, Mark Duplissis, Linda Kalaf, Sharon Kausal, Vicki Kringen, Kelly Lorenzen, Truman D. Plainer
Magdalena Warecka, Director of Operations, magdalena@tempechamber.org
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T e m p e C h a m b e r A d v a n ta g e
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Arizona Technology Report Arizona Technology Council: The Voice of the Technology Industry
In This Issue Arizona SciTech Festival ... Pg. 2 Public Policy Committee ... Pg. 4 Promoting Partnerships ... Pg. 6
Who We Are The Arizona Technology Council is Arizona’s premier trade association for science and technology companies.
Phoenix Office
One Renaissance Square 2 N. Central Ave., Suite 750 Phoenix, Arizona 85004 Phone: 602-343-8324 Fax: 602-343-8330 info@aztechcouncil.org
Tucson Office
The University of Arizona Science and Technology Park 9040 S. Rita Road, Suite 1150 (near I-10 and Rita Road) Tucson, Arizona 85747 Phone: 520-829-3440 Fax: 520-829-3441 tucson@aztechcouncil.org
June – Sept. 2O12 aztechcouncil.org
President’s Message The “aha” moment. It’s that unique sensation reflecting a milestone discovery: solving that first math problem, making a career choice, discovering a cure in the laboratory. My experiences during the last several months have convinced me that last example isn’t too far-fetched. The Arizona Technology Council Foundation was the key sponsor of the Arizona SciTech Festival that launched in late January and the Arizona Science and Engineering Fair held in early April. In between was the Arizona Middle School Science Bowl hosted by Arizona Technology Council Workforce Development Committee in late February. All events celebrated not only the lessons learned in science and technology—even at an early age—but also the desire to simply “know.” Each event was filled with students who already have had their share of aha moments and were ready to create new ones. Steven G. Zylstra, The Arizona SciTech President and CEO, Arizona Technology Council Festival, which is recapped in the pages that follow, was the first statewide event of its kind. Organized as part of the centennial celebration for our state, it was the chance for families to come together and see the entertaining side of science and technology while also learning the related principles. If you didn’t get a chance to participate this year, you’ll have your chance when it returns next year.
The Science Bowl, held annually since 2007, is an academic “Jeopardy-style” event designed to encourage student involvement in math and science activities. The overall focus of this event is to get kids interested in science and math by making it fun and giving them the proper motivation, preparation and encouragement. The winners are sent to the National Science Bowl for Middle School Students that includes two types of competitions: an academic math and science competition, and a model car race. The race provides students with a “hands-on” science and engineering experience where the teams design, build and race their model cars. For the Science and Engineering Fair, schools throughout the state selected their most notable scholars in grades 5 through 12 to present in one of the 17 scientific categories. The competition’s Grand Award winners (also named on the pages that follow) and their teachers next advance to the Intel International Science & Engineering Fair (ISEF), the world’s largest international pre-college science competition in Pittsburgh with all expenses paid. (Phoenix has been selected as the site of the 2013, 2016 and 2019 ISEF.) Arizona SEF Director Phillip Huebner notes, “The research that these students are doing is the cornerstone of them developing an interest in pursuing a science, engineering, technology or math (STEM) career that is so vital to our economic development.” That’s not an understatement. The Council recognizes that without its helping plant the seeds of STEM now, we could replacing “aha” with “oh, no” when it comes to our future.
Management and Staff Steven G. Zylstra
Leigh Goldstein
Don Ruedy
President and CEO
Managing Director, Programs and Events
Executive Emeritus, Tucson Office
Deborah Zack
Don Rodriguez
Doug Reid
Director, Membership Services
Editor
Director, Arizona Innovation Institute
Merry Lake Merrell
Ron Schott
Phillip Huebner
Director, Marketing and Communication
Executive Emeritus
Director, Arizona Science and Engineering Fair
Jamy Battle
Justin Williams
Jeremy Babendure, Ph.D.
Director, Finance and Administration
Director, Tucson Office
Director, Arizona SciTech Festival
aztechcouncil.org
Arizona Technology Report
1
A performer at Arizona State University’s Night of the Open Door in Tempe
Cause for Celebration Arizona SciTech Festival to return next year after successful debut
A
s organizers of the first Arizona SciTech Festival catch their breath after more than a month of seemingly nonstop action, they realize it’s only a brief break. They’ve already marked their calendars for Feb. 9, 2013, the start of the second installment of what promises to be an annual event. The inaugural SciTech Festival, held to mark the first centennial of statehood, showcased Arizona as a national leader in science, technology and innovation through a series of hands-on activities and workshops, conversations and debates, exhibitions, concerts, guided walks and tours. The event offered the chance to connect the classroom to the real world with in-field demonstrations of how science theory is practiced in everyday life by professionals at local institutions, companies, research centers and parks. The festival spearheaded by the Arizona Technology Council Foundation in partnership with Arizona State University and Arizona Science Center was a grassroots collaboration of more than 200 organizations in industry, academia, arts, community and K-12. The intent was to excite and inform attendees about how science, technology and innovation will drive our state for the next 100 years. The festival was geared to help address Arizona’s education, economic and workforce needs. State and local leaders supported the events as powerful vehicles for leveraging productive synergy among stakeholders in the scientific, educational, and business communities to increase the output of future leaders/innovators in science, technology, engineering and math.
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Arizona Technology Report
The events offered activities and events to engage, inspire and spark imagination across entire communities. Arizonans developed a first-hand understanding of the importance of science and technology to the state’s past, present and future through diverse programming encompassing conversations, debates and forums; practical or hands-on workshops, displays and exhibitions; broadcasts, concerts and plays; and site visits, guided walks and tours. A Microchip employee explains a display at the Tech Crawl in Chandler
Another option for science lovers
A participant at the Spring Training Festival in Scottsdale gets a closer look
Can’t wait until next year’s Arizona SciTech Festival? The 2012 Flagstaff Festival of Science is an option. The theme of the 10-day event will be Making Waves, highlighting the importance of healthy rivers, lakes and oceans. Starting Sept. 21, the festival will offer more than 70 free activities, including field trips, archaeological excavations, interactive exhibits, star parties, open houses at research stations, chemistry magic shows and presentations. Launching the festival will be the Shoemaker Keynote Presentation by Alexandra Cousteau, founder and president of Blue Legacy International and granddaughter of legendary underwater filmmaker Jacques Cousteau. For more information about the Flagstaff Festival of Science, go to scifest.org.
Something for Everyone Activities and events occurred in a variety of settings: K-12, college and university campuses; libraries; museums; civic buildings; cafes and restaurants; commercial or industrial facilities; and parks and public squares. There were some programs specifically for kids and families, some just for teens, some just for adults and science professionals, and some that offered general appeal. The topic areas included: • aerospace, defense and engineering • technology and computer science • bioscience, health and medicine • chemistry, physics and mathematics • arts, culture and social science • sustainability and earth sciences • entrepreneurship and business
A girl assembles a model at Chandler Science Saturday
Signature events were created to challenge participants to think differently about the way that science, technology and innovation connect to Arizona’s past, present and future. These events included: • Innovations in Bioscience, a celebration of innovation and bioscience in downtown Phoenix. • Spring Training Festival — The Mad Science of Baseball, a festival that honored baseball history, celebrated the modern game and looked toward the future. • Chandler Tech Crawl offered the chance for residents to learn about the technology in their own backyard at Microchip and Innovations, the city’s science and technology incubator. • A Day with Dean Kamen — A Morning of Robotics featured the accomplished inventor and founder of FIRST (For Inspiration and Recognition of Science and Technology). • An Astronaut’s Life — Articles Flown in Space was a Smithsonian Institution exhibit celebrating 50 years of manned space exploration with dozens of items flown in space from Mercury to the Space Shuttle program. For updates as next year’s Arizona SciTech Festival takes shape, go to azscitechfest.org.
aztechcouncil.org
An experiment with liquid nitrogen is done at Chandler Science Saturday
Arizona Technology Report
3
Moving Ahead Public Policy Committee helps shape future of Arizona’s tech industry The Public Policy Committee of the Arizona Technology Council focuses on issues and initiatives that accelerate public policy and legislation in Arizona affecting the growth and development of the technology industry. Part of the committee’s success can be measured when legislation it supports makes it way to the governor’s desk for a signature. It’s not unusual to see its members working with legislators, elected officials and policy makers at all levels of government to educate them about the value and promise of the technology industry. A number of key bills made it out of the state Legislature during the recent session and landed on the desk of Gov. Jan Brewer for her signature. The legislation included:
House Bill 2272: Arizona Open Records Act The new law offers the potential for promoting high-paying, promising jobs in Arizona industries using the principles of science, technology, engineering and math. In a collaborative effort with state industries, academic institutions and other nonprofit industry organizations, the legislation amends the Open Records Act. The law has the effect of encouraging private sector investments in Arizona that were previously discouraged under the earlier version of the state’s Open Records Act. In the earlier form, the statute potentially enabled details of intellectual property such clinical trial results to be revealed on request when a private company was engaged with a public entity such as a university. That resulted in lucrative projects being halted for fear of having to reveal competitive information to anyone who requested it.
Committee Puts Its Public Policy to Work During the recent session of the state Legislature, members of the Arizona Technology Council’s Public Policy Committee met with lawmakers to endorse measures that support technology and science in Arizona. It was their chance to share contents of the committee’s 2012 Public Policy Guide, which highlighted principles and positions to aid the elected officials as they crafted policies that will affect residents and the state’s economy for years to come. The Council continuously monitors federal, state and local policies that impact the growth of Arizona’s technology industry. Through the collective strength of its members, it informs and educates policymakers on issues that are important to the state’s technology-based industries. “By working with all levels of city, state, county and federal government and developing deep relationships with both elected and appointed officials, the Council serves as the voice calling for a technologybased, pro-growth, business-focused agenda,” says Steven G. Zylstra, president and CEO of the Arizona Technology Council.
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Arizona Technology Report
“Our positions on tax, education policy and tort reform support policies and initiatives that create an environment for technologyrelated jobs, provide sources of capital that encourage entrepreneurship, and train and attract the required talent to compete in a global, innovative economy.” These are the highlights of the Council’s policies and principles affecting taxes, education and tort reform:
Tax Policy
availability of a highly skilled and qualified workforce. Accordingly, it believes Arizona’s education system must be improved at all levels, including pre-kindergarten, K-12 and post-secondary. Further, the Council believes leveraging technology to ensure the availability of high-quality instruction, including a focus on e-learning, is key to producing students capable of competing in the global economy and delivery of a firstrate education for our children.
The Council believes many taxes, especially those solely targeted at businesses, may have the effect of limiting potential growth in existing and new technology businesses. Further, policymakers should strive to institute tax reform that encourages existing business to expand, increases Arizona’s competitiveness in business attraction, allows a broad and stable tax base, and ensures similar businesses are treated fairly and equitably.
Tort Reform
Education Policy
To view and download the complete document that includes positions for each policy, go to bit.ly/wpaqpT.
The Council and its more than 600 member technology companies rely on the
The Council is committed to an Arizona tort system structured to eliminate lawsuit abuse as well as the use of the tort system as an industry in and of itself. It is also committed to fairly distributing awards to those who are truly harmed, but not unfairly distributed to legal counsel. Finally, the Council is committed to having Arizona’s system of tort viewed by business as a key reason for locating in our state.
The Council’s efforts included work to ensure that the revised language of the Open Records Act had the support of critical stakeholders, including the Arizona Newspapers Association.
Senate Bill 1046: Corporate Tax Allocation, Sales Factor Starting in 2014, the statute allows Arizona businesses with operations in other states to choose among state income tax formulas to determine their tax bills. The law will allow companies such as Cox Communications and AT&T to select different ways to allocate and pay their state income tax obligations. For example, the for-profit Apollo Group, parent of University of Phoenix, could benefit because it is based in Arizona but offers courses across the nation. The new law allows companies that provide services to not be double taxed in the multiple states where they conduct business. Apollo Group had threatened to move its headquarters out of Arizona due to the former formula.
Senate Bill 1402: Broadband Conduit Installation, Right-of-Way Also known as the “Digital Arizona Highway Act of 2012,” the law’s intent is to use existing state highway rights-of-way as much as possible to increase the availability of broadband while minimizing costs of the services in rural Arizona. The
statute allows the state Department of Transportation to install broadband conduit as part of a rural highway construction project if funding is received by the department to cover the cost. Conduit can be installed without regard to the timing of a related existing road project based on a request and receipt of funding from state entities charged with responsibility for broadband infrastructure and policy. Additionally, the department can lease the conduit to providers at a cost-based rate, coordinate with providers to plan, and relocate the broadband conduit and any related facilities within the right-ofway at the provider’s expense if future highway improvements make the relocations necessary.
House Bill 2087: Automotive Recyclers, Lead Acid Batteries The new law outlines requirements for the keeping, reporting and inspection of records related to the receipt and sale of lead acid batteries. A used auto component dealer will be required to keep a book of receipts for lead acid batteries, including descriptions of the batteries, identification of the seller and any applicable transaction privilege tax number. Exempt from the law are automobile recyclers and lead acid battery sellers who are required to accept lead acid batteries. Also, the law should help reduce battery thefts at remote utility-monitoring facilities.
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aztechcouncil.org
It’s a Hub to Building Business
/inbusinessmagphx Arizona Technology Report
5
Entrepreneurship targeted at annual Partnering Conference Entrepreneurship will be the theme this year when the Arizona Technology Council hosts its annual Partnering Conference, the signature event known for bringing the state’s technology community together.
The Partnering Conference offers companies access to an extraordinary concentration of emerging and established businesses as well as the tools needed to create successful partnerships of their own. The event will be held 1 to 6 p.m. July 26 at the Hilton Scottsdale Resort & Spa. Companies and organizations will present case studies of existing and past partnerships that have been successful. The case studies then will be distributed on flash drives to all attendees. The event also will feature a well-known entrepreneur keynote speaker. The day will end with a cocktail reception and expo, giving participants the chance to network and explore potential partnerships.
At A Glance
Ron Schott (right), executive emeritus of the Arizona Technology Council, with James Robinson, CEO and managing partner of Phoenix Realty Advisors, at the 2011 Partnering Conference
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Arizona Technology Report
Date: July 26 Location: Hilton Scottsdale Resort & Spa, 6333 N. Scottsdale Road Fees: Attendees: AZTC members, $40; non-members, $60 To register: aztechcouncil.org
aztechcouncil.org
Arizona Technology Report
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Brazil is next stop for Council trade delegation After leading a successful technology-focused trade delegation to China, the Arizona Technology Council and the Arizona Chamber of Commerce and Industry are teaming up again for travel to a new player in the global IT community: Brazil. Delegates will leave Sept. 12 from Phoenix and return Sept. 22 after stops in Sao Paolo, Rio de Janeiro and Brasilia, the capital of Brazil. Along the way they will visit technology companies and meet with economic development leaders. Included will be a briefing on “Doing Business in Brazil” by the U.S. Commercial Service. Also, delegation members will have at
least three one-on-one meetings with industry decision-makers in each city. Brazil stands out as the largest IT market in the Latin America region, with strong prospects for continued expansion, according to Business Monitor International. A national broadband plan and the modernization required to prepare for hosting of the 2014 FIFA World Cup and 2016 Summer Olympics are expected to push Brazil’s demand for IT products and services. For more information, go to aztechcouncil.org.
Vote TechSmart Guide offers help to pick tech supporters on ballot Planning is underway by members of the Arizona Technology Council’s Public Policy Committee to publish the next issue of the Vote TechSmart guide, a resource to help Arizona Technology Council members and the technology industry navigate the state Legislature elections during the Aug. 28 primary. Vote TechSmart is published just before the primary election every two years. The guide contains two parts: recommendations for state House of Representatives and Senate candidates who are committed to growing the technology industry in Arizona plus a report card on how legislative incumbents have made decisions affecting the state’s technology community. “In this way we help guide our members on the legislators who have proven themselves and those who commit to support the technology industry in the
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Arizona Technology Report
state of Arizona,” says Ron Schott, the Council’s executive emeritus who serves as staff liaison to the committee. Development of Vote TechSmart is a multistage process. Every year the Public Policy Committee sets its priorities based on input from member companies. Based on those priorities, every two years it develops a questionnaire regarding Arizona technology issues for all state legislative candidates. Soon after the deadline for applications to run for elected office has passed, the committee mails the questionnaire to all candidates along with the request for responses. All new candidates then are given the opportunity to be interviewed by members of the committee and the Council’s lobbying firm, Public Policy Partners (P3). After analyzing the survey responses and results of the interviews, the committee
makes recommendation for endorsement by the Arizona Technology Council. The committee members also evaluate incumbent legislators’ voting records and performance in supporting key legislation important to both business and the technology industry, resulting in a report card. Those legislators are awarded grades ranging from “A” to “F,” which are reviewed and approved by the Board Executive Committee for publishing in the Vote TechSmart guide with endorsements and the reasons for such support. The Vote TechSmart guide is sent to all Council members. For a digital copy, go to aztechcouncil.org in early August and look for the link to the guide on the Council’s home page. To see past issues of the guide, go to aztechcouncil.org/advocacy/ votetechsmart.
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Index Index by Name
Gallo, Lou, 25
McVeigh, James, 38
Shojaee, Hamid, 35
Ahlmer, Michelle, 11, 25
Gammons, Glen, 14
Moore, Kristin, 25
Shufeldt, John, M.D., 14
Ahuja, Maneet, 31
Gildersleeve, Michael, 32
Naimark, Dana Wolfe, 34
Smith, Jeremy, 16
Angeles, Renee, 32
Harb, Andy, 25
Neal, David, 16
Spitzer, Cindy, 31
Barton, Mario, 14
Hart, John, 31
Nissanoff, Daniel, 25
Stevens, Donna, 25
Basha, Edward, 12
Herman, Josh, 32
Ostreicher, Deborah, 45
Sukiennik, Hyman, 16
Bennett, Hunter, 20
Holthaus, Nicholas, 30
Palomino, Mary, 46
Trick, Robin, 45
Blaine, Becky, 32
Hughes, Joe, 46
Pearson, Rachel, 32
Tunis, Bob, 25
Boyd-Williams, Mary, 25
Hutton, Julia, 25
Reiss, Andrea, 25
Uhl, Austin, 14
Choukalas, Kim, 25
Kent, Julie, 45
Robinson, Don, 35
Wiedemer, David, Ph.D., 31
Clawson, Pat, 20
Lanning, Kimber, 12
Rowley, John, 22
Wiedemer, Robert A., 31
Coburn, Tom A.,M.D., Sen., 31
Leist, Billy, 12
Rowley, Marcia, 22
Wood, Brian, 47
Dolin, Josh, 40
Lorenzen, Kelly, 46
Ryan, Jody, 38
Zylstra, Steven G., 35, 55, 58
Dulmes, Jeff, 14
Malin, David, 25
Schott, Ron, 61
Esparza, Silvana Salcido, 43
McConnell, Gordon, 35
Shahid, Aqeel, 47
Facebook, 40
North Phoenix Chamber of Commerce, 36
Index by Company 1-800-Got-Junk, 10 5 Arts Circle, 10 Alerus Bank & Trust, 19 Alliance Bank, 2 Aloha Kitchen, 43 Arizona Biltmore, 32 Arizona Chamber of Commerce & Industry, 35, 36 Arizona Diamondbacks, 63 Arizona International Growth Group, 35, 36 Arizona Office of Tourism, 32 Arizona Public Service, 35 Arizona Retailers Association, 11 Arizona Small Business Association, 36 Arizona State University, 38 Arizona Technology Council, 35, 36, 55 AT&T, 3 Avnet, 9 Axosoft, 35 Barnes & Noble, 25 Barrio Queen, 43 Bashas’ Family of Stores, 12 BestIT, 67 Biker Babes, 25 Biltmore Fashion Park, 25 Bling N’ Things, 25 Cassidy Turley BRE Commercial, 39 Central Arizona Supply, 16 Central Phoenix Women, 36 Chandler Chamber of Commerce, 36 Children’s Action Alliance, 34 Conquest Training Systems, Inc., 21 CopperWynd Resort and Club, 32 Cox Business, 5, 16 Delta Dental, 4 Divaz Boutique, 25 Double L Ranch, 15 Driver Provider, The, 60 Eller College of Management, 29 E-Women Network, 36 Expect More Arizona, 41 ExTreme ReTrailers, 25
64
J u n e 2012
Glendale Chamber of Commerce, 36
Omni Hotels & Resorts Tucson, 53
Grand Canyon University, 50
OneNeck IT Services, 20
Greater Phoenix Black
Orca Communications, 25
Chamber of Commerce, 36 Greater Phoenix Chamber of Commerce, 38 Greater Phoenix Convention & Visitors Bureau, 32 Here on the Corner, 45 Hermosa Inn, 32
Stoney-Wilson Business Consulting, LLC, 52 Surprise Regional Chamber of Commerce, 36
Parlor, The, 43
Target Commercial Interiors, 44
Peoria Chamber of Commerce, 36
Target, 12
Phoenix Convention Center, 54
Telesphere, 47
Phoenix Sky Harbor
Tempe Chamber of Commerce, 36, 45
International Airport, 45
Tempe Marketplace, 25
Phoenix, City of, 25
Tempo Creative, 40
Pinterest, 40
Translational Genomics
Holmes Murphy, 6
Reliable Background Screening, 17
House of Tricks, 45
RingCentral, Inc., 42
True Food Kitchen, 43
Salt River Project, 46
Twitter, 40
SB Capital Group, 14
UNION, 25
IndieGoGo, 30
SCF Arizona, 6
US Airways, 46
Internaitonal Genomics Consortium, 16
Scottsdale Area Chamber of Commerce, 36
Valley Plaza, 25
International Cruise & Excursions, Inc., 22
Scottsdale Convention &
VentureCatalyst, 35
Hyundai, 42 IKEA, 51
IO, 16
Research Institute, 38
Vestar, 25
Visitors Bureau, 32
JC Penney, 14
Scottsdale Quarter, 25
Waste Management, 47, 65
JC’s 5 Star Outlet, 14
Scottsdale, City of, 25
Water ’n Ice Store
Kickstarter, 30
Securities and Exchange Commission, 30
Wells Fargo, 17
Kierland Commons, 25
Sonoran Audio Visual, 19
West Valley Women, 36
KSL Resorts, 32
Southwest Valley
Women of Scottsdale, 36
Lewis & Roca, LLP, 30
Chamber of Commerce, 36
Linda Land, 21
Staver Group, The, 66
Local First Arizona, 12
Stein Mart, 25
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Seek and Defuse: How to Recognize Anger in the Workplace Prevent workplace violence and stop it before it escalates by Mike Staver Workplace violence in the U.S. is a persistent and dangerous problem. How bad is it? A statistic from the U.S. Department of Labor indicates that homicide is the fourthleading cause of occupational injuries. And it is the leading cause of death for women in the workplace. But the real tragedy is, so many of these violent incidents could be avoided if employees and leaders understood how to recognize violence triggers and how to defuse them in the workplace. Most people who act out violently at work indicate what’s going to happen through their words and behavior beforehand — and when people can recognize the warning signs, they can do more to prevent these terrible situations. Although most people believe that violence occurs when someone is angry about certain circumstances, the truth is, it is triggered when someone gets angry about what he or she believes about the circumstances. When a person gets angry, it’s because at least one of three primary triggers is in place. The person feels, “This is unfair,” “This is out of my control” and/or “This is personal; it’s happening to me.” When these factors are present, they can manifest themselves in many ways. The angry employee might simply have a drop in performance level. He or she might make threatening comments to another employee or about the company in general, or, in extreme circumstances, resort to worse violence. The more intensely the person feels these factors, the worse the violence can get. Anyone who sees these triggers in a co-worker or employee should be very concerned. Of course, the key to preventing workplace violence is knowing what to do when an employee indicates he might be susceptible to these triggers or is displaying other warning signs — such as bullying other co-workers, substance abuse, frequently discussing marital or other non-professional problems or making idle threats, among others.
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First and foremost, take all warning signs very, very seriously. Secondly — and this is just as important — report it right away! Far too often, co-workers don’t report these incidents. It happens for many reasons: They believe the popular myth that people who make threats don’t act on them, they don’t want to seem like alarmists, they fear they’ll become a target, or there isn’t a sufficient workplace safety and incident reporting system in place. But anyone who suspects something is wrong should report it right away. If the leadership at the organization isn’t taking it seriously, that person needs to go to the authorities. That said, however, companies should not place the burden fully on employees. All organizations should make sure they have workplace violence policies in place, that all employees have a clear understanding of the
policies, and that all employees know how to take action and what to expect when they do report an incident. Managers and leaders should also be well trained in how to defuse anger in the workplace and to recognize what kinds of situations are out of their control — and, in such cases, demand that law enforcement be involved. There is simply too much at risk to avoid taking these actions. 21 Ways to Defuse Anger and Calm People Down thestavergroup.com
Mike Staver, CEO of The Staver Group, a national team of strategic business advisors and coaches, is the creator of the audio and video series 21 Ways to Defuse Anger and Calm People Down and author of Do You Know How to Shut Up? With more than 25 years’ experience, Staver is a frequent speaker to Fortune 500 companies and startups, and a confidential advisor to top-level executives and CEOs. He holds a bachelor’s degree in business and a master’s degree in psychology.
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As a photographer, I can control how others see the world. When a routine colonoscopy discovered stage three colorectal cancer, I took control by choosing the finest team possible. My answer was Mayo Clinic. Richard Rubenstein, Scottsdale, AZ
Because of Mayo Clinic’s collaborative model of care, Richard had an entire team of experts focused on his recovery. Now, he is cancer-free and working with other survivors to share their lives through art and encourage people to get regular screenings. For over 100 years, people from all walks of life have come to Mayo Clinic for answers. Mayo is an in-network provider for millions of people and a physician referral is not typically required. For more information or to schedule an appointment, visit mayoclinic.org/cancer or call (800) 446-2279.