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Choosing a top health system can make all the difference. Banner Health has been chosen as a Top 15 Health System by Truven Analytics. Top health systems are recognized for saving more lives and causing fewer patient complications. Thanks to our dedicated team of experts, we’ve been recognized for the very attributes that fulfill our mission of making a difference in people’s lives through excellent patient care. When selecting a hospital, choose one that can make all the difference.
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JUNE 2014
www.inbusinessmag.com In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce. Partner Organizations Rick Murray, CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com
Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org
Doug Bruhnke, Founder & President Global Chamber (480) 595-5000 www.globalchamber.org
Jackie Wszalek, President NAWBO Phoenix Metro Chapter (602) 772-4985 www.nawbophx.org
Rick Kidder, President & CEO Scottsdale Area Chamber of Commerce (480) 355-2700 www.scottsdalechamber.com
Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.
Associate Partners Ahwatukee Foothills Chamber of Commerce www.ahwatukeechamber.com Arizona Chamber of Commerce & Industry www.azchamber.com
Conquest Training Systems is Giving Away $ 1 , 0 0 0 , 0 0 0 in Sales Training to Veterans
100 selected veterans will each receive $10,000 in sales training through Conquest’s “Selling System” that will give veterans opportunities to acquire six-figure sales positions in a variety of industries. The development platform will consist of Training, Coaching, and Real World Experience. Conquest will even assist in placement of a sales position!
Arizona Hispanic Chamber of Commerce www.azhcc.com Chandler Chamber of Commerce www.chandlerchamber.com Economic Club of Phoenix www.econclubphx.org Glendale Chamber of Commerce www.glendaleazchamber.org Greater Phoenix Black Chamber of Commerce www.phoenixblackchamber.com Greater Phoenix Chamber of Commerce www.phoenixchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce www.gpglcc.org Mesa Chamber of Commerce www.mesachamber.org
Applications are now being accepted. For more information please email i n f o @ c onqu e s t t r a i n i ng . c om Untitled-3 1
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North Phoenix Chamber of Commerce www.northphoenixchamber.com Peoria Chamber of Commerce www.peoriachamber.com WESTMARC www.westmarc.org
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INBUSINE SSMAG.COM
MANUFACTURING
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ARIZONA MANUFACTURING ITS EVOLUTION IS ECONOMIC
Serving the Nonprofit Board The Blind Spot in Sales Management
JUNE 2014 • inbusinessmag.com
Arizona Manufacturing: Its Evolution Is Economic Prosperity
JUNE 2014
Legal: Does Your Insurance Leave You Liable?
JUNE 2014
IN BUSINESS MAGAZINE
CONTENTS
PROSPERITY
Simple Strategies for Employee Engagement
Power Lunch By the Numbers Business Calendar $4.95 INBUSINESSMAG.COM
This Issue Top Tech: Leading Tech Companies Profiled
Manufacturing is the underpinning of the economy, in many ways. Statewide and locally, it evidences tremendous diversity in itself and it reaches into nearly every other industry. With input from state leaders, industry giants and niche manufacturers, as well as those involved in workforce development, RaeAnne Marsh explores the strengths and challenges that will impact manufacturing’s continued growth. DEPARTMENTS
9 Guest Editor
John Solheim, chairman and CEO of Karsten Manufacturing Corp./PING, Inc., introduces the “Manufacturing” issue.
FEATURES
10 Feedback
28 Employee Engagement Lies in
the Little Things
Employee disengagement can have a devastating impact on a company’s bottom line, but Todd Patkin shares solutions that are both simple and inexpensive.
30
28
30 The Blind Spot in Sales Management
Widely practiced strategies to develop sales management often actually sabotage good talent. Jack Daly looks at approaches to avoid — and why they are shortsighted. ON THE AGENDA
32 Calendar
15 By the Numbers
Survey examines the costs and effect of employees’ bad behavior on the Internet.
17 Legal
Business events throughout the Valley “Lastin g suc cess is not result a of coi nciden it’s the ce – result of foc hard work. used At Bro wn & we’ve Brown built a , cultur e tha insure t s suc cess.”
SPECIAL SECTIONS
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Com gy Busin pani ess Cybe & es rTrails Decision Enter prise Infus ionso Techno logy IT Pa ft Servi rtners ces OneN eck IT So lution s
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Attorneys discuss the need for business owners to understand the scope and limitations in their general liability insurance policy.
PRES
Pro fil Lead es of th Ser ing Tech e vice nolo s
Spotlight on the leading technology services companies
SPON
Nonprofit board members must know their organization first, and act second.
29 Books
New releases offer insights into what’s needed for company leadership to manage people well.
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34 Assets
2014 Lexus IS 350 C F Sport Plus: Top mobile plans that will benefit a company’s bottom line
35 Power Lunch
Flower Child Plus: Smoothies that refresh
50 Roundtable
With actionable data available through the Internet, small companies can compete with the giants.
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J U N E 2014
“‘Good’ for Business,” “In-the-Cloud Reliability,” “AZ Economy on the Go,” “Social Media Not a Bonanza for Sales Prospecting,” “Storytelling App Enables Peer-to-Peer Marketing,” “IRS Instruction Videos for Business,” “Mortgage Lender Targets Underserved Phoenix Market,” “Workforce Services Growth” and “Website Launch the Right Way”
View from the top looks at where Jared Smith, with his “something extra” approach, has taken Bluemedia.
NAWBO’s Desert Diamonds Awards Gala Social Media Day Phoenix
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12 Briefs
16 Trickle Up
31 Spotlight
37 Top Tech
Noted business and community leaders Richard Condit, Jim Wilson and Steven G. Zylstra respond to IBM’s burning business question of the month.
18 Nonprofit
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JUNE 2014 • VOL. 5, NO. 6
EDITOR RaeAnne Marsh
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THE SMART MONEY STAYS IN ARIZONA.
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BANK LOCAL FIRST. When your money is deposited in locally owned and operated community banks, it’s quickly recycled back into our local economy. Currently only 4% of Arizona’s total deposits are in Arizona-owned banks. Local banks stand with us through ups and downs, so let’s get that number to 10% right away. OPEN A LOCAL ACCOUNT TODAY. Get all the services you demand and help keep Arizona moving forward. Learn more about Arizona’s local community banks: LOCALFIRSTAZ.COM/BANKING.
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Vol. 5, No. 6. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. © 2014 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.
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JOHN SOLHEIM, CHAIRMAN AND CHIEF EXECUTIVE OFFICER, KARSTEN MANUFACTURING CORP.
GUEST EDITOR
Manufacturing Is Our Core
John Andrew Solheim is chairman, president and CEO of Karsten Manufacturing Corporation, makers of PING golf equipment. His father, Karsten Solheim, founded the company in 1966 around the PING putter he had designed seven years previously and which revolutionized the golf equipment manufacturing industry. John attended LeTourneau University in Longview, Texas, a Christian engineering college, but, to be able to assist his father in the family’s rapidly growing business, transferred to Arizona State University where he studied tool and manufacturing technology. John serves on the boards of trustees for both LeTourneau and the ASU Foundation. He is also chairman and CEO of PING, Inc.; chairman of PING Europe; and an active board member of the global company’s many subsidiaries.
MANUFACTURING IN THE Valley runs the gamut from large fabrication facilities to small “mom and pop” shops like we once were when we first began making putters in my dad’s garage. Manufacturing is an economic engine that supports other industries as diverse as hospitality, construction and healthcare. For some, the word “manufacturing” may conjure up images of conveyor belts, but for me, it goes hand-inhand with engineering innovations, providing for the more than 800 employees in Phoenix who make us the success we are today, investing in our community and enjoying the Valley’s beautiful golf courses. At PING, we are proud to pursue our passion to make the world’s best golf clubs right here in Arizona as we have for the past 55 years. Arizona’s manufacturers comprise the heart that keeps Arizona’s economic blood pumping. We are thankful this state has become more welcoming to manufacturers, so we can continue competing on the global playing field from our hometown. Arizona’s manufacturing-friendly business climate helps keep us free to innovate, design, manufacture and service premium quality products, which is what we love about being in business in Greater Phoenix. Manufacturers like Tesla have been in the headlines recently over plans to build manufacturing plants here, although Phoenix has long been home to automotive manufacturing as In Business Magazine editor RaeAnne Marsh shows in her cover story. The existence of the precision manufacturing that grew up around the aerospace and defense industries also raises the bar for consumer manufacturing. The improving quality of precision manufacturing, in fact, is helping drive a trend of manufacturing re-shoring to the United States. Arizona’s leaders, in particular, have recognized the vital connection between making Arizona a world leader in innovation and manufacturing and the success of Arizona’s economy. According to the National Association of Manufacturers, Arizona manufacturers pay about double the average wages other Arizona non-farm employers pay. However, manufacturing faces some critical challenges, especially from the federal government’s continued burdening of American manufacturers with ever-growing taxes, regulations and public debt loads. Manufacturers large and small as well as economic development leaders are among those who help Marsh explore what’s happening with manufacturing in the Valley. For this issue’s “Legal” feature, Sue Kern-Fleischer spoke with attorneys from two law firms in the Valley to help business owners evaluate their insurance coverage in such areas as employment discrimination, data breaches and other aspects of business operations. Two articles deal with aspects of Human Resources — a feature by Todd Patkin on simple and inexpensive but effective methods to create strong employee engagement and a study by TeamViewer, a leader in information technology solutions, on bad behaviors of office employees and how these behaviors affect businesses. In a “Management” feature, Jack Daly shares insights on common mistakes of sales management and how to avoid them. A special feature in this issue is “Top Tech: Leading Tech Companies Profiled,” which presents an overview of the many directions of technology in the Greater Phoenix area and spotlights a few of the leading companies. In Business Magazine continues to offer relevant and useful information on a wide range of subjects to help businesses here grow and prosper. I am pleased to help bring you this June issue of In Business Magazine. Sincerely,
John Solheim Chairman and Chief Executive Officer Karsten Manufacturing Corp./PING, Inc.
Making Growth FEW SECTORS HAVE an overall impact on Arizona’s economy like manufacturing. These are high-paying jobs that trickle into our economic picture and improve growth substantially. While there are skills-gap issues and an impact due to new technologies in manufacturing that are inevitably changing this sector, for the most part it is a boon for Arizona. An obvious choice for us for Guest Editor was John Solheim of Karsten Manufacturing, given his and his family’s successes in Arizona
INBUSINE SSMAG.COM
Connect with us: Story Ideas/PR: editorial@inbusinessmag.com Business Events/Connections: businessevents@inbusinessmag.com Marketing/Exposure: advertise@inbusinessmag.com Visit us online at and their notable impact www.inbusinessmag.com on manufacturing here. His leadership and knowledge of this sector and support of many of the growth strategies companies and officials are implementing are making a difference and will mean Arizona can and will become a great home to big and small manufacturing companies. We thank him and all of the leaders taking —Rick McCartney, Publisher action to grow this sector.
J U N E 2014
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FEEDBACK
VALLEY LEADERS SOUND OFF
Executives Answer
How is manufacturing supporting your industry?
Richard Condit Senior VP, Administration Sundt Construction, Inc. Sector: Construction CONSTRUCTION ACTIVITY SIMPLY reflects economic activity in the private and/or public sector. If construction is doing well, it means someone else is doing well. The most obvious benefit to our industry if manufacturing is robust is the opportunity to build new manufacturing facilities or to add to existing ones. In addition, there can be benefit to our industry from manufacturing if the items being manufactured are supplychain needs for construction. When we can work with a local company that is manufacturing rebar, steel, HVAC or electrical components, for instance, there are reduced costs in such aspects as transportation and the components themselves that then reduce construction costs, resulting in a benefit to the project’s owner. Sundt Construction, Inc. sundt.com
Richard Condit is the Senior Vice President for Administration of Sundt Construction Inc., which has an annual volume of $1 billion in preconstruction and construction services. Sundt is a highly diversified general contractor with self-performed capabilities in concrete, civil and utility construction processes. Condit heads up Sundt’s Change Management, Craft Center of Excellence and Continuous Improvement initiatives. He represents Sundt in many Arizona educational programs and serves as director on the Sundt Companies Board.
Steven G. Zylstra President and CEO Arizona Technology Council Sector: Technology MANUFACTURING HAS ALWAYS been a powerful driver of the technology industry in Arizona, and has changed our economy significantly. Ever since Motorola manufactured the world’s first commercial high-power germanium-based transistor in Arizona in 1955, the state has benefited from forward, innovativethinking companies, both large and small. The perception that manufacturing is dirty nails and loud factories is out of date. Manufacturing employees today work in clean, state-of-theart facilities that require skilled engineers and technicians. This push for a better-educated work force benefits the technology industry as a
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Jim Wilson Executive Director, Industrial Properties Cushman & Wakefield of Arizona, Inc. Sector: Real Estate IN ARIZONA, WE’RE getting better at courting manufacturing. Certainly the Apple deal, bringing onshore manufacturing from such a large, well-known, multi-national company, has helped us. I don’t know anywhere where any substantial manufacturer comes to the market that they don’t have people that follow them. There will be some ancillary things that will follow that type of commitment to Arizona. The Intel effect as a manufacturer is a great example. To Tempe, Chandler, Gilbert and Ahwatukee, it means everything. We are behind in where we need to be in actual manufacturing — OEMs, equipment makers and manufacturers are not coming here in droves. But more and more, we’re getting our fair share of those types of businesses. It’s hard for Arizona when states like Texas have a huge war chest with cash to entice companies to move to that state. And having controversial bills passed by the Legislature in opposition to the general public — that really affects us. Cushman & Wakefield of Arizona, Inc. cushmanwakefield.com
Jim Wilson has been with Cushman & Wakefield since 1989, where he has several times earned “Top Producer” Industrial/Technology Services for the Arizona region. His primary concentration is the representation of tenants, landlords, sellers and buyers of industrial properties in the Metro Phoenix market. Wilson helped close out a stellar year for Cushman & Wakefield of Arizona by helping broker the $113.57-million sale of the First Solar plant in Mesa to Apple.
whole by putting an emphasis on graduating more students with science and technology degrees that will ultimately be paid some of the highest wages in the state. Another major contribution to the technology industry are the know-how and operating procedures that the international firms such as Intel, Boeing, General Dynamics and Raytheon can bring to the smaller, local firms. It’s clear that innovation is the single most important factor in driving any economy. Today, Arizona’s advanced technologies are in great demand because of our rich manufacturing heritage. Arizona Technology Council aztechcouncil.org
Steven G. Zylstra, Sc.D. (Hon.), serves as president and CEO of the Arizona Technology Council, where he is responsible for strategy, operations and accomplishment of policy development. Zylstra is a vocal spokesman for the value technology can provide in raising social and economic standards in Arizona. He has served in numerous technology advisory roles to the Governor and currently serves on several association, industry and community boards.
INBUSINE SSMAG.COM
Social Media Not a Bonanza for
BYTES Sales Prospecting
‘Good’ for Business BIEN — AN ACRONYM for “Building an International
Economic Network” — is a first-of-its-kind website to link businesses representing various industries in Arizona to each other and across international boundaries in Mexico and Canada. Partners include ASBA, Arizona Commerce Authority, Arizona Mexico Commission and the Canada Arizona Business Council. connectbien.com
In-the-Cloud Reliability RELIACLOUD, BY OneNeck IT Solutions, provides public, private and hybrid cloud flexibility. Now, with availability in Phoenix, customers throughout the Southwest region have the opportunity to harness the power of a local cloud. ReliaCloud is built to support the most demanding of applications, including SAP, Oracle EBS, Microsoft Dynamics (AX and CRM), data warehouses and other critical lines of business applications. oneneck.com/cloud-and-hosting-solutions
AZ Economy on the Go THE ARIZONA’S ECONOMY APP is a project of the University of Arizona’s Economic and Business Research Center at the Eller College of Management, which has 65+ years of providing Arizona citizens and decision makers with award-winning economic forecasts and applied economic research for Arizona. The free app for iPhone, iPad and Android offers users access to real-time economic data for Arizona, its counties and metro areas, and the U.S. azeconomy.eller.arizona.edu
Visit our “Briefs” link on the “Departments” tab at www.inbusinessmag.com.
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A VIGOROUS SOCIAL media presence is widely seen as essential for success in today’s hyper-competitive direct sales environments. But even among the younger, always-connected generations, it is not found to be most effective for actually generating new sales. In a survey of more than 2,200 salespeople, Trelitha R. Bryant, senior V.P. of field testing and research at Behavioral Sciences Research Press in Dallas, Texas, found 68.5 percent said traditional forms of initiating contact with potential buyers (face-to-face: 36.2%; phone calls: 32.3%) are still the best for generating sales. Only about 16 percent endorsed technology-driven methods (email: 12.6%; social media: 3.1%; text messaging: 0.4%). CDs/ DVDs (0.3%) and “snail mail” (2.2%) were also included, along with two standard catch-alls, “Not Applicable” (5.7%) and “Other” (7.4%). Expecting the results to be age-related — reasoning that younger salespeople may be more comfortable using new technology than
older salespeople — Bryant instead found there was no significant age relationship. “Age is not a factor,” Bryant says, “but discomfort contacting potential clients is, and depending on social media to prospect for new business may be how some salespeople cope.” “Indirect methods of making contact with prospective buyers may be helpful for certain kinds of selling,” says Jeff Tanner, Ph.D., marketing professor and executive director of the Innovative Business Collaboratory at Baylor University’s Hankamer School of Marketing. “But in high-dollar sales settings like financial services and business consulting, offerings are best presented face to face.” He observes that the fault for poor performance in generating new sales may be attributed to an over-reliance on less direct forms of prospecting when it may actually lie in the salesperson’s discomfort with time-tested, face-to-face, person-to-person approaches to clientele-building. —RaeAnne Marsh
Storytelling App Enables Peer-to-Peer Marketing
SPLICITY, A NEW mobile app from Phoenix entrepreneurs Caleb Barclay and Ben Hall, offers businesses a platform to enable their loyal customers to create 17-second videos for strong peer-to-peer marketing. The initial idea was to make storytelling more accessible to the everyday person, Barclay explains. “We wanted to create a community around story-art framework.” But he notes they considered from the beginning the program’s potential for branding. “It introduces a new way to go about advertising.” Users submit a storyline template, which is then available to other users and
»
VISUALIZE THIS
Seeing Is Believing IRS Instruction Videos for Business FEW KNOW THAT the Internal Revenue Service provides
instructional and informational presentation videos on most aspects of business taxes for small business owners.
Photo courtesy of Splicity
BRIEFS
QUICK AND TO THE POINT
Videos include presentations on forms, starting a business, workshops, filing and paying taxes and even disaster information. High-quality and simple to understand, the IRS video presentations are a quick way to understand tax obligations and more. irsvideos.gov/SmallBusinessTaxpayer
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Assessment & Valuation Service
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Do you ever ask yourself questions like... • What is my business worth today?
• How many different types of value are there and which are most important to me? • What components drive value? • What is the difference between an “asset sale” and a “stock sale”? • How does my company compare to others in the same industry in terms of key performance indicators involving liquidity, solvency, activity and profitability? At Beyer Management we’re passionate about Value Based Management. We find that when a business owner focuses on increasing the value of their company, they will naturally design the right strategies, implement the proper business model, and execute the best tactics to beat the competition and build a long term sustainable enterprise.
If you’ d like an expert valuation, or you’d like to learn more about Value Based Management, call us at (602)-633-5353 or visit our website at www.beyermanagement.com
4455 E. Camelback Road, Suite C135 Phoenix, AZ 85018 INBUSINE SSMAG.COM
J U N E 2014
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BRIEFS
QUICK AND TO THE POINT
» guides them in capturing certain moments
in 3.5-second clips that it then automatically combines sequentially to tell the story. That end-user can then send out his or her video via social media. The first Splicity program, launching June 1, is MyAZ, a unified campaign by the Arizona Commerce Authority, Arizona Office of Tourism, Greater Phoenix Economic
Council, Local First Arizona, Mesa Chamber of Commerce and WESTMARC to encourage Arizona residents to help promote the state in a positive light. The effort was initiated by GPEC President Barry Broome, who saw Barclay’s presentation at a Seed Spot “Pitch Day” event. —RaeAnne Marsh Splicity splicity.com
Mortgage Lender Targets Underserved Phoenix Market
RECOGNIZING OPPORTUNITY IN Phoenix’s housing market, Carrington Mortgage Services has opened a new Scottsdale office, its second in the area. This is part of the company’s national strategy to target a specific underserved segment — those with a FICO credit score of less than 630. Arizona was among the areas hardest hit by the recent housing collapse, a distinction it shared with California, Florida and Nevada. Now, says Ray Brousseau, executive vice president of Carrington’s mortgage lending division, “People have battled their way back, are on good footing, and need the opportunity to own their own home.” Carrington, Brousseau explains, is a specialty-service asset management company. “We have experience managing risk and credit.” Noting that a low credit score is an indication something was wrong, he says Carrington’s underwriters look first to understand what happened and why, then look at the current state of an applicant’s finances and expectations for the future. “We do manual underwriting, and consider compensating factors.” Brousseau relates a report from Tyson Rondeau, branch manager of the new Scottsdale office, that “the market has increased 23 percent in the last two years, with strong gains in home values. Prices in many Phoenix neighborhoods are back to 2003 levels.” And he shares that Clinton Alcorn, regional vice president, pointing to Metro Phoenix’s continued growth in population and employment opportunities as well as a resurgence in homebuilding, describes the Phoenix market as representing “one of the best opportunities in the country for carrying out the strategy of serving the underserved.” —RaeAnne Marsh
Workforce Services Growth
RELOCATING ITS CORPORATE headquarters from San Jose to Phoenix, Matrix Absence Management has expanded its Phoenix operations — which includes the company’s national call center — to a 65,000-square-foot facility in a building that allows for expected further growth. Matrix occupies the top two floors of the three-story building, and has first rights to take on space on the 30,000-square-foot first floor. Matrix helps employers proactively manage workers’ compensation, short- and longterm disability, return-to-work services, and personal and medical leave programs. It is also the administrator and claims processing platform for large-case integrated-disability clients for sister company Reliance Standard Life Insurance Company. It has had a presence in the Valley for about 10 years. “It’s a great market for talent in the space we operate in,” says company president Kenneth Cope. He cites the large bilingual work force available as well as tenured talent for clinician and adjustor positions. “We use registered nurses in the claims process, and there is a large number here — and a retiree population who want to work more in an office environment as they ramp down their careers.” Another advantage Cope credits to Phoenix: “It’s a fantastic location for clients to visit year-round — [it has] no weather interruptions.” —RaeAnne Marsh Matrix Absence Management, Inc. matrixcos.com
Carrington Mortgage Services, LLC carringtonms.com
Online Best Practices
Website Launch the Right Way
THE RECENT HIGH-PROFILE misfiring of the launch of the U.S. government’s healthcare website may have captured the headlines, but most brands and corporations make similar mistakes when launching their own mission-critical mobile or Web apps. In the release of HealthCare.gov, hundreds of millions of dollars were spent, outages and slow response were the norm and major brand equity was lost. The government’s mistakes, however, offer business the opportunity to take away a lesson on preventive software testing. Mistake #1: Back-Loaded Testing Schedule When app development inevitably falls behind and testing is left until right before launch, it’s too easy to cut corners and skip deep scalability and performance testing.
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Mistake #2: Poor Testing Productivity If it takes days or weeks to create and execute tests (instead of a few hours), then the company’s testing coverage will likely be limited.
Mistake #3: Unnecessary Reliance on Code Testing engineers are probably not a company’s best coders, so a website that requires there be substantial code written to create deep load tests is just setting up for errors or failure.
Mistake #4: Limited User Pathways If a company is testing only a few user scenarios — not the dozens of variations that occur in modern apps — then it won’t uncover hidden performance and security bottlenecks. — Kevin Surace, CEO of Appvance
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QUICK AND TO THE POINT
BY THE NUMBERS Internet Issues: The View from the IT Department Harmful Internet Behaviors How often seen by IT administrators
Cost and Effect of Employees’ Bad Internet Behavior
Browsing of social media websites
82%
Opening inappropriate email attachments
57%
Educating the work force should be company priority
Downloading games
52%
Plugging in unauthorized USB devices
51%
Plugging in unauthorized personal devices
50%
Illegal downloads (e.g., pirating movies, music or software)
45%
Looking for other jobs
39%
by RaeAnne Marsh INFORMATION TECHNOLOGY MANAGERS report a high incidence of troublesome habits among office workers using company computers, according to a U.S. survey recently released by TeamViewer, a leading provider of remote control and online meetings software. The survey was aimed at determining how big an effect common “bad behaviors” have, both on the IT department and on the company’s bottom line. “We chose a mixture of all kinds of businesses to represent the whole picture,” says Magdalena Brzakala, spokesperson for TeamViewer. The survey found 92 percent of IT administrators reported seeing behavior that posed potential risk to the company, some of it perhaps surprising in light of highly publicized data breaches. Often, resulting problems are due to a “drive-by infection” that the employee is unaware of, caused by a program downloading in the background when he or she visits a website. Effects are experienced in both productivity and direct cost. Ninety percent of IT administrators say they have witnessed problems to company equipment as a result of risky behavior. Viruses put company data, from intellectual property to employee financial data, at risk of loss or theft. Less obvious repercussions include slowed computers that increase the amount of time employees spend opening emails, thus reducing their productivity, and the labor cost associated with the IT technician identifying and fixing the problem, as well as the cost of fraud from the theft of credentials, Brzakala points out. Or malicious software can cause mass popups that interfere with accessing INBUSINE SSMAG.COM
an intended site, says Andre Schindler, sales manager for North and South America. “Close one popup and five others open.” Among other inefficiencies identified by the survey is impact on the IT staff. Twentythree percent of IT workers are now putting in between 10 and 20 extra hours in a given week, with 4 percent reporting that it has caused them to work more than 40 extra hours in a week. Forty-one percent of IT administrators estimate that they walk between 1 and 9 miles in a given month traveling from desk to desk and floor to floor during their daily tasks. “While most companies are OK with their employees using company equipment for activities such as browsing social media sites, the results of our study reveal that these actions can cause problems down the line,” says Kornelius Brunner, head of product management at TeamViewer. “Businesses should be prepared to handle such situations, especially with valuable company data on the line.” And it is not just behavior on company computers that poses a risk, but also behavior on personal devices when employees transfer files to work at home. The survey underscored the importance of policies and programs to mitigate threats. These include educating employees about how to use the company Internet — most importantly, to not visit unknown websites or open an email attachment without knowing who sent it. “Changing their behavior may be hard, but it’s important,” Brzakala says. She also suggests companies educate their employees regularly as to network security. “Inform them of the latest threats and fraud websites.” TeamViewer teamviewer.com/en/index.aspx
Action
Repercussions Problems caused by these actions
Encountered by what percent of IT administrators
Viruses
77%
Slow computers
74%
Crashed computers
55%
Mass popups
48%
Inability to open email
33%
Measures to Mitigate Impact While leisure activity on company equipment might be inevitable, 94 percent of IT administrators cited tools that can help mitigate resulting problems. Favored by what percent of IT administrators
Tools Better security software
66%
Using remote access software to fix problems
47%
Disk cleanup software
44%
Automatic backup solutions
40%
Ability of IT technician to telecommute
29%
TeamViewer survey March 2014
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TRICKLE UP
A VIEW FROM THE TOP
Jared Smith: Going the Extra Mile in Service Bluemedia is committed to the ‘something extra’ touch by Alison Stanton FOR JARED SMITH, president of Bluemedia, the phrase “make it perfect” is much more than just his company’s motto. It’s a personal mantra he and his employees live and breathe 24/7/365. It’s this commitment to perfection and always going the extra mile for their clients that have helped make Bluemedia one of the top largeformat signage companies in the nation. “This has been a concept that we have used for a number of years; when we are awarded a project, we treat it as if it’s our own internal project,” Smith says. “So if we are working on the Fiesta Bowl, we think of it as the Bluemedia Fiesta Bowl, and it’s the same thing for the Super Bowl or anything else we are doing.” Bluemedia, founded in 2000, began as an offshoot of a business endeavor Smith and Lance Davis had started in 1997 to produce printed goods for a charity golf tournament. Realizing the potential of such a specialty in a state that sees about 9,000 golf tournaments annually, Smith and Davis founded Golf Tournament Group, LLC in 1998, bought their first digital printer and rented 300 square feet of office space. But then demand began building for digitally printed items that had nothing to do with golf, and they created Bluemedia as the non-golf division. The company’s commitment to perfection, Smith says, means the employees make sure they deliver the best possible product each and every time, along with a lot of little extra touches and additions that might seem like they are minor but mean a great deal to his
Signs of the Times
■■ Smith has more than 20 years industry experience in graphics, printing and signage. ■■ Smith’s first job was in high school,
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even have to tell me the answer; I know they have the right approach.” Smith says Bluemedia has been so successful and has so many repeat customers that his main challenge is making sure he and his staff do not bite off more than they can chew perfectly. Like a chef who has a great recipe and needs to determine how many servings he can make that all taste the same, Smith says he works hard to scale responsibly. “The last thing we want to do is take on more work than we can effectively staff for. If we feel like we are overproduced, we cannot call our clients and say, ‘Sorry, we are overbooked.’” At the end of the day, regardless of how many projects they are juggling at once, Smith says he and his staff will never be content with merely getting everything finished on time. “Saying, ‘I hope we did a good job’ or ‘We probably did a good enough job on this’ are not phrases that we ever use.” Bluemedia bluemedia.com
delivering flyers for a neighborhood Domino’s Pizza franchise. To date, Bluemedia has reached approximately $40 million in sales. The company is located in a 120,000-square-foot facility in Tempe. Smith currently sits on the Specialty Graphic Imaging Association (SGIA) Advisory Council, Big Picture Magazine Editorial Board and the SGIA Congress.
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Photo courtesy of Bluemedia
■■ ■■ ■■
grateful customers. “When the job is done, we do things like add extra Velcro inside the box, and then we make sure there are extra instructions and a nice, full-color label on the outside,” Smith says. “Then, since we know that our clients might not have a zip-tie snipper, we go over to Home Depot and buy one for $2 and put it in the box.” This perfectionist mindset, Smith explains, goes way beyond merely claiming to offer the best customer service. Instead of telling his customers about their impeccable work and commitment to them, he and his employees roll up their sleeves and get busy doing it. “We’ve got a job to get done and we know what we need to do,” he says. In order to help make sure that his employees will share his same solid work ethic and sense of integrity, Smith has built in a series of tests and tools during job interviews to make sure he hires only the best of the best. “I will tell them that they will sometimes be working at 2 a.m., and that there will be days where they are told at 11 a.m. that they need to be up in Seattle by 3, and that if we hire them and upper management sees them drive by an old lady who is having car trouble at the side of the road, it would be grounds for dismissal,” he says, adding that gauging potential employees’ reactions to these scenarios helps determine whether or not they are a good fit for his company. Smith also tests the problem-solving skills of interviewees, observing how they would tackle a situation. “I might ask them, ‘How far is it to LEGOLAND in San Diego?’ and then I will watch how they figure it out. If they bring out their smartphone to look it up, then they don’t
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LEGAL MATTERS TO BUSINESS
LEGAL
General Liability Insurance: Is ‘Enough’ Really Enough? Business owners often don’t understand the scope and limitations in their policy, and what the real risks are by Sue Kern-Fleischer RISK. IT’S A four-letter word that can have devastating effects on a business if proper insurance is not in place. According to findings from the Chubb 2013 Private Company Risk Survey, in the past three years, 44 percent of private companies experienced at least one loss event related to D&O (Directors and Officers) liability, EPL (Employment Practices Liability), fiduciary liability, employee fraud, workplace violence or cyber liability. The report revealed a significant increase in the number of private company executives who expressed concern over risks now compared to three years ago, with the number more than doubling in exposure areas such as EPL charge or lawsuit, E&O (errors and omissions) lawsuit, cyber breach, workplace violence and benefits lawsuit. The report also suggests that “the large gaps in coverage may stem from something as basic as managers not fully understanding what is covered under their current liability policies.” Jennifer Cranston, a shareholder at Phoenix-based Gallagher & Kennedy, P.A., has spent the past 10 years focusing her practice on insurance analysis. She works with clients who range from small businesses who need help understanding their property damage coverage to large companies who are sued for millions of dollars but can’t get their insurance carriers to provide a defense. Observing, “According to the annual reports released by our Arizona courts, civil case filings have actually been decreasing over the past few years,” Cranston says issues surrounding insurance coverage have become more complex, keeping her and her colleagues very busy. “Those of us who practice in the insurance field have perceived a rise because of the number of disputes with insurance companies over the existence and extent of coverage.” Some factors contributing to this complexity are the increased variety of coverage available to individuals and businesses as well as the expanded use of endorsements to modify standard policy terms. Endorsements are additional pages added at the end of an insurance policy that change the coverage provided by the policy. A standard insurance policy for a business may be only 10 pages long, but will have 20-plus pages of endorsements. “The endorsements can significantly revise the coverage that appears to be provided by the base policy,” Cranston says. “Basically, there are more policy options available and the policies themselves are more complicated than they used to be.” She agrees with the Chubb report that too many business owners and managers misunderstand the scope of general liability insurance. “Also, I think people undervalue the benefit of defense coverage — even if your business does everything right, lawsuits still happen, and insurance can cover a significant portion of the legal costs necessary to defend a claim,” she says. “Businesses should understand that insurance is only INBUSINE SSMAG.COM
a piece of the puzzle, and that prevention and planning are also key elements to addressing the risks of loss and liability.” Steve Leach is a partner with Phoenix-based Jones, Skelton & Hochuli, P.L.C. who has been practicing employment law for 15 years. He suggests businesses review their insurance policies with their brokers at least once a year, or when there are changes in operation, such as increasing or reducing the work force, reducing or eliminating employee benefits or if the company is contemplating a major merger or acquisition. “Most of the time, I get called when the horse is already out of the barn,” Leach says. “For example, if I’m asked to respond to an EEOC charge, we may be in a damage control scenario because improper employment action has already happened. More sophisticated clients engage me in the employment decision-making process to avoid or minimize the problem in the first place.” Leach says businesses should be proactive with their risk management process and do an annual review of their policies and procedures. “Some lawyers will say that you don’t have to have an employee handbook,” he says. “If you do have one, make sure it is consistent with the law and that it’s simple and is focused on protecting the employer’s interests.” Jones, Skelton & Hochuli has also seen an increase in employment cases, and Leach attributes that to the downturn in the economy when people who lost their jobs tried to recover money through litigation. “No one wants to accept they were a bad employee,” he says. Leach also emphasizes that business owners make sure they understand their policy limits, stating that oftentimes, his clients’ policy limits are too small. “Don’t be afraid to contact your lawyer or broker before an making an employment decision. For a few hundred bucks, you could avoid thousands of dollars in damages and a nightmare that drags on forever in the courts.” Gallagher & Kennedy, P.A. gknet.com Jones, Skelton & Hochuli, P.L.C. jshfirm.com
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NONPROFIT
THE BUSINESS OF MAKING A DIFFERENCE
Knowing and Doing: The Board Member’s Key Responsibilities Nonprofit board members must know their organization first, and act second by Deborah Whitehurst BEING A BOARD MEMBER — like being a business executive — boils down to two key responsibilities: knowing and doing. “Knowing the organization, believing in (and even being passionate about) its mission — that’s a primary responsibility for a board member,” says Shelley Cohn, board member of the Arizona Community Foundation, Childsplay and the Desert Botanical Garden. “Then take action — be a good ambassador and steward: Stay engaged; contribute ideas, expertise and connections; find ways to engage others; and assure that the community’s investments in the organization are used wisely on behalf of the public.” Certainly the roles and responsibilities of boards are many and complex — from governing, policy-making and strategizing to overseeing internal operations — but at the heart of these tasks comes, first, knowledge, then action. Knowing. Doing.
The Knowing Before even considering a board position, executives should know the nonprofit organization they are supporting: its values, its mission, what the organization stands for, its proposed actions and its constituents. In getting to know an organization, consider the three basic legal responsibilities of board members, some of which have been codified into law in various states. ■■ D uty of Obedience: Know and understand the foundation’s governing documents and ask questions any place confusion arises. Under this duty, board members may not approve an action by the nonprofit organization that violates its governing documents or applicable laws. ■■ Duty of Care: Know, or be well informed, before making a decision. For example, take care to review relevant materials, such as minutes, reports or studies, and proactively seek committee insight, staff or outside consultants and legal counsel when needed, to enable informed choices. ■■ Duty of Loyalty: Know the nonprofit’s interests and act solely on its behalf, avoiding conflicts of interest and maintaining confidentiality. Many nonprofits ask board members to annually declare any conflicts, in accordance with the organization’s Conflict of Interest Policy, and recuse themselves from voting when a conflict arises. Such policies often include a loyalty pledge to maintain the confidentiality of the organization’s discussions and actions as well. Financial and governance relationships with other entities, as well as conflicting business interests among shared vendors, need to be declared, too, as potential conflict circumstances arise.
Taking the time to understand the legal responsibilities of the board, as well as the organization’s scope and reach, helps ensure that the nonprofit serves the greater good: the public. Acquiring such knowledge also ensures that ethical, fiduciary and legal standards are met, as violations may carry monetary penalties for the organization and individuals, and sometimes the unintended effect of reputation damage.
The Doing Once an executive becomes a board member, his knowledge of the organization and its policies can lead to wise and caring service. At the most basic level of doing, board members are expected to attend board meetings, participate on committees or task forces, and serve a full term. They must uphold the organization’s values and ethics, abide by its policies, provide stewardship of its resources, engage in a leadership role of the organization and possibly represent it publicly when asked. In most nonprofits, board members will also be expected to donate to the nonprofit and bring personal and professional connections to assist with fundraising, as well as contribute to strategic planning for the future of the organization. Despite the diversity of nonprofits Valley-wide and their varying missions, all boards have in common the central function of governing the organization. All act as stewards of the organization’s financial, human resource and reputation assets. Some of the additional responsibilities assigned to specific board members involve the following: ■■ H iring, supporting and evaluating the nonprofit’s chief executive ■■ Setting programmatic or service strategies for delivering the missiondriven work of the organization ■■ Ensuring the integrity of internal operations, including the establishment of policies and oversight of best practices ■■ Reviewing and overseeing compliance with the budget, approving major contracts/expenditures, and reviewing the audit In many ways, the roles and responsibilities of a board member are not much different from that of an executive. The board member has to know what he is doing, why he is doing it, whom he is doing it for, and what it entails. Then he does his best to serve — the organization’s clients, its customers, its constituents. Its community … your community. The Phoenix Philanthropy Group phoenixphilanthropy.com
Deborah Whitehurst is Senior Consultant for The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists.
In Business Magazine has partnered with The Phoenix Philanthropy Group to bring readers and online users a column in each issue dedicated to informing and inspiring nonprofit leaders and local businesspeople on leadership and best practices for the nonprofit sector.
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ARIZONA MANUFACTURING
ITS EVOLUTION IS ECONOMIC PROSPERITY RESHORING AND EDUCATION ARE FACTORS FOR ITS FUTURE by RaeAnne Marsh
Manufacturing is the underpinning of the economy, in many ways. Each manufacturing job supports three other jobs in the overall economy, according to the Economic Policy Institute, a nonprofit, nonpartisan think tank, and there is a broader supply chain impact as well. Researchers at the Arizona Commerce Authority report manufacturing jobs tend to be high-wage, which contributes to a stronger economy. They also note that, as a base industry, it is not as significantly affected by economic fluctuations as sectors such as retail, service and construction.
And while manufacturing stands by itself as an industry, it’s also “embedded in everything else,” says Rosalyn Boxer, VP of Workforce Development at the ACA, noting, “It’s not just making a machine part. It’s pervasive in every industry.” Or, as Dante Fierros, president of Tempe-based Nichols Precision and a member of the National Association of Manufacturers Board of Directors, likes to put it, “Everything not made by God is manufactured by someone.” The Bureau of Economic Analysis reports that U.S. manufacturing supported 12 percent of our GDP in 2012, producing more than $1.86 trillion of value each year. This is the highest level for manufacturing in recorded history. Focusing closer to home, how is it woven into our state and our local economies?
Economic Reach
There is a tremendous variety of types of manufacturing businesses in the Greater Phoenix area. Some fit the strict definition of manufacturing as the converting of raw materials into a product to sell. Others include assembly that uses components which were, themselves, manufactured by another manufacturing business. Honeywell spans both, with core and noncore manufactured goods. For core items, Mike Owens, VP of Integrated Supply Chain for Honeywell’s aerospace division, says, “We invest and protect and keep close where we differentiate in the marketplace.” Gear technology is a core differentiator, so “we cut gear teeth ourselves,” he says. “For non-core, we use what’s available in the marketplace at various levels of performance — meaning, cost and competitiveness.” Honeywell contracts with about 3,200 suppliers globally, with Arizona accounting for nearly half — 1,300-1,400 companies, Owens says. “We spend about $750 million locally with extended companies in the Arizona region.” Sandra Watson, CEO of the Arizona Commerce Authority, notes the importance
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“The same companies that are making armament for tanks are making our desks,” Heckler says. “It’s the same level of precision, quality and durability. I don’t think you’d find that in manufacturing in China.” the ACA places on such an extended network, observing, “Supporting the small and mediumsized companies creates a rich supply chain, supporting larger manufacturers, creating jobs and generating revenue — strengthening our economic base.” And from the point of view of the large manufacturer, access to a smaller manufacturer in the same market cuts costs and improves efficiency. Says Owens, “The desire in any supply chain industry is to lower the cycle time from the order to delivery of the product.” Having a local supply base provides a better business return by enabling a lower inventory and a faster return on money, “with less freight and all the cost.” Sharing an example of one of the tightest supply chain relationships, Arnold Maltz, Ph.D., associate professor of Supply Chain Management at ASU’s W. P. Carey School of Business, points to States Logistics in Tolleson, which works with the Gatorade
plant across the street. “Bottles come over on a conveyor belt [from the plant] and they custom-assemble pallets for delivery.” Although States Logistics does not work with raw materials, “it uses the same scheduling and labor issues as manufacturing.” A large amount of the manufacturing industry here is an offshoot of the defense industry, notes Steve Macias, president and CEO of Pivot Manufacturing. He points to the optics cluster in Tucson — “a result of doing work for Raytheon,” he says — that is responsible for about 5,000 jobs. “It’s big enough that they have their own industry group.” Capabilities developed in one area have the potential to transfer to other areas. Notes Dr. Maltz, “Component suppliers are here because of aerospace and defense and electronic chips. But Medtronics and other healthcare companies also have electronics components.” Macias sees the extended opportunities in
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Photo courtesy Heckler Design
Manufacturing’s
After being etched, Heckler Design’s WindFall Stand for iPads is being cut. Heckler makes use of leftover steel scraps from which to cut its logo.
his own business, which provides machining and mechanical assembly operations. Pivot used to be almost all defense-related, but now works with businesses in semiconductors, oil and gas or alternative energy, and commercial aerospace. A company in oil and gas in Texas that Pivot works with, for instance, requires extreme precision because “they are sending pipes thousands of feet beneath the earth or into the ocean. You certainly don’t want those things to fail.” Dean Heckler, whose Phoenix-based company Heckler Design produces desks and counter-top items used in retail commerce, specifically credits the advantage he has found in Phoenix in having access to precision manufacturing that results in high-value, highquality goods. “The same companies that are making armament for tanks are making our desks,” he says. “It’s the same level of precision, quality and durability. I don’t think you’d find that in manufacturing in China.” In fact, he says he designs his company’s products so that they do not include anything that can’t be made in Arizona — 99 percent of it in the Phoenix metropolitan area. The steel fabrication is done in Tempe, as is the powder coating; plastic parts are tooled and ejected in the Scottsdale Airpark; parts are assembled in the company’s Phoenix warehouse; and the packaging is
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custom-made in Tempe. Referring to what he sees as a “huge manufacturing community,” he says companies “have capabilities I’m dying to take advantage of.” Eric Miller built his company, Phoenix Analysis and Design Technologies, around advanced manufacturing technology that, he says, “supports almost every industry.” PADT is especially known for its 3-D printing, and works with a lot of electronics and consumer products companies. “Locally, mostly for people making a product, we help them make the enclosures,” Miller says. For Dial, for instance, PADT makes the soap bottles; for The Hillman Group, whose hardware lines include door keys, PADT helps with the manufacturing involved in the self-service keymaking kiosks.
Nuts, Bolts and Other Looks of Manufacturing “Aerospace and defense is a critical, advanced industry focus area for Arizona and the ACA,” says the ACA’s Watson. “This industry is growing faster than the overall economy and contributes significantly to the state’s economy, both in terms of employment and gross state product.” Indeed, the numbers as of third quarter last year are impressive. Arizona is home to more than 1,200 companies that comprise the aerospace and defense supply chain, which include such major A&D industry players as Boeing, Bombardier Aerospace, General Dynamics, Honeywell Aerospace, Lockheed Martin, Northrop Grumman, Orbital Sciences and Raytheon Missile Systems as well as the hundreds of small and mid-sized suppliers they support. These companies, all together, represent more than 150,000 jobs to the economy, almost $15 billion in annual revenue, exports that top $2.8 billion, and 5.91 percent of the state’s gross domestic product. Nationwide, Arizona ranks 4th in aerospace industry payroll and revenue ($14.9 billion) and 5th in aerospace total employment (153,484).
And yet that 1,200 companies is only about one-fourth of the total number of manufacturing establishments — 4,623 as of Q3, 2013, up from the 4,267 reported in the 2011 Census’s County Business Patterns. Arizona’s top five sub-industries in manufacturing, determined by their contribution to the state’s GDP, are computer and electronic product manufacturing ($6.94 billion), transportation equipment manufacturing ($3.56 billion), food and beverage and tobacco product manufacturing ($1.57 billion), miscellaneous manufacturing ($1.3 billion) and chemical manufacturing ($1.2 billion). The term “manufacturing” comprises tremendous variety. Refresh Glass entrepreneur Ray DelMuro applied his background as a manufacturing engineer in aerospace to what started as a hobby repurposing empty wine bottles to new functional use as glasses and candle holders, and created efficient systems to organize production “so it makes sense in terms of value to retailers such as Whole Foods, wholesalers, hospitality and [direct to] consumers.” Building his business model on sustainability — his raw material is wine bottles that would otherwise go into landfills — DelMuro collects about 15,000 wine bottles per month from 17 Valley hotels and restaurants such as Postino and House of Tricks. In his 6,000-square-feet of shop space at Tempe incubator MAC6, each shift produces 700-1,000 units transformed from wine bottle to finished product. The most traditional glass-working equipment are “really large ovens to stressreduce the glass so it’s durable,” he says. “The rest I custom-designed.” PADT sidesteps lengthy traditional manufacturing to use the advanced technology of 3-D printing. “We can take anybody’s computer model and directly create a part for them,” Miller says. Among the varied types of business PADT works with are a toy manufacturer in Ahwatukee and another that makes rockets. Another project was making hydrogen fuel-cell blowers for hydrogen cars. “Nissan came to us and asked us to manufacture this for them,” Miller says, calling it a “unique product from Arizona.”
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Honeywell contracts with about 3,200 suppliers globally, with Arizona accounting for nearly half — 1,300-1,400 companies, Owens says. “We spend about $750 million locally with extended companies in the Arizona region.” Another automotive claim to fame for Phoenix is Vantage Mobility International, which manufactures vans to be disabledaccessible. VMI is the second-largest van conversion company in the industry, according to company president Doug Eaton. Manufacturing and its related supply chain cover a broad variety of products and businesses. These range from a small steel fabricator that brings in large pieces of rod and cuts to order to a company that stencils T-shirts for special events and sports organizations to food processing — which includes a lot of packing of fresh produce at the border. “Avnet does a lot of finishing here, loading software, customizing boxes — assembling to order. Many retailers, such as Marshall’s, put things together [at distribution sites] for their own stores,” Dr. Maltz says,
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noting these, too, are value-added services that require processing.
Why Here? Global economic changes are resulting in manufacturing trending back to the United States. Wages overseas are rising more rapidly than in the U.S., and the convergence is cutting into the cost difference. “Wages overseas are now 30-40 percent of what they are in the U.S., compared to 10-15 percent five years ago,” explains Dr. Maltz, although cautioning that reshoring may not generate a lot of employment as most manufacturing is likely to be highly automated. Long-time industry leader Fierros points out that cost involves more than working with
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Photo courtesy Honeywell
Honeywell employees assemble an HTS900 helicopter engine at one of the company’s manufacturing facilities in Phoenix, Arizona.
the materials. He has found that companies rarely factor in total lifecycle cost, of which transportation, lack of local control and concern over patent infringement and copyright are part. For one project he was involved with, “When we first went to China, the cost promise was alluring. But once we were in production, the products started to be not so perfect. That led to low yield in terms of quality,” he relates. It’s critical to have control over quality in areas such as aerospace and defense and commercial industries, and since quality outside the U.S. is questionable, “It has to be U.S.-made.” Another aspect of location to consider is where the engineers are who designed the item being manufactured. Smith shares that Scottsdale-based TASER International, for instance, has opened an office in Seattle to be closer to pools for software talent. Explains Honeywell’s Owens, “If you have a highly technology-engineered product, the best way to support its manufacture is to have local support where it was designed and developed.” The U.S. is known for its technological advantage, but, says Owens, “if the technologist is in Shanghai, and it’s for Chinese aircraft, it makes sense to have manufacturing there.” As Owens’ example indicates, decisions as to where to locate manufacturing are also impacted by where the customer is. Dr. Maltz notes that the reshoring of manufacturing from China to the U.S. will bring back only some of it as suppliers may stay there. “When the lead manufacturer went to China, the suppliers went with him. But China is also absorbing manufacturing for its domestic use, and even if companies relocate some capacity here, suppliers will want to serve the Chinese market because that’s growing more quickly than here.” In the ACA’s work with attracting business to our state, it has found that Arizona attracts not only local and national businesses, but international. Some of the benefits cited for locating their manufacturing operations in Arizona are world-class original equipment manufacturers (OEMs) for partners and
customers; proximity to California, Mexico and robust industrial and consumer U.S. domestic markets, which are three of the top 15 largest economies in the world; and world-class research universities for talent and emerging technology pipelines. Arizona is a favorable location for retail distribution, which is big here to serve the western region between New Mexico and California. DelMuro cites a low cost of operations, noting “how affordable it is to run a business.” For him, transportation is not an issue, although he says, “The people on the East Coast would probably prefer that we were located in the Mid-West.” VMI’s COO Steve Crandell says shipping is fine to the West Coast, but “we are at a disadvantage with respect to competition on the East Coast.” But TASER’s Smith says, “The main reason to be in Phoenix is, it’s a great place to live.” And he believes the “fantastic lifestyle and good business climate” are helpful in recruiting employees.
Arizona’s Got Talent – or Does It?
Hiring talent is not a problem for Honeywell, according to Owens. The labor coming out of high schools and community colleges have good foundational skills, he says, and the company provides extensive on-the-job training to develop advanced skills.
Photo courtesy Refresh Glass
Collecting more than 15,000 empty wine bottles a month, Refresh Glass sorts and stores them by color. The company has begun offering custom etching as well.
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Arizona’s top five sub-industries in manufacturing, determined by their contribution to the state’s GDP, are computer and electronic product manufacturing ($6.94 billion), transportation equipment manufacturing ($3.56 billion), food and beverage and tobacco product manufacturing ($1.57 billion), miscellaneous manufacturing ($1.3 billion) and chemical manufacturing ($1.2 billion). A talent pool is an issue, however, for companies like Pivot Manufacturing and Nichols Precision, two companies that contribute to the supply chain for giants like Honeywell. So where is the work force? The crisis the industry is trying to deal with is too few qualified people in the employment pool. While Smith, at TASER, relates he has “good luck recruiting mechanical engineering and manufacturing folk here in the Valley,” and Crandell says VMI finds there is a good pool for non-specific jobs, the skills gap is enough of a widespread issue that organizations concerned with economic development have initiated a specific response: the Arizona Manufacturing Partnership. Fierros, who co-chairs the AMP, describes it as a statewide, industry-led initiative that aligns industry needs with education articulation to create and sustain a qualified work force for manufacturing. Its three main goals are to promote a world-class image of manufacturing to schools,
parents, teachers and elected officials; see that the curriculum being taught is actually what industry needs; and act as a liaison between education and industry. “Industry is taking a more aggressive approach to what they want in terms of an educated work force,” says the ACA’s Boxer. She notes that the focus has been on higher education, but “there are many pathways to be successful and we have ignored ones that led to direct hire rather than a four-year engineering degree.”
Educating a
Work Force According to Fierros, what is sorely needed is certification-level training that teaches to national standards. “Every discipline has its own society, and from these organizations stem the minimum requirements” for certification of the specific expertise, he says, noting certification helps employers in hiring. “Most of us in the machining world understand and appreciate credentials from the National Institute for Metalworking Skills, so if a student graduates from any school with a NIMS certification, he can go anywhere and any business would know what that certification means.” Fierros sees AMP’s role as making clear what end result industry is seeking, and “we’ll let education coordinate among themselves to come up with roads to get us to the certification.” AMP is focusing first on community colleges, then grades K-12, and lastly
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on universities. Community colleges, Fierros reports, “are open to the concept and the conversation. The issue is to translate that willingness to action.” Randy Kimmens, associate vice chancellor of workforce development for the Maricopa Community College District, says the community colleges back the effort and try to ensure industry is represented on the board “to make sure we meet their needs.” But he points out the issue is not just curriculum; it’s getting people interested. “We’re working with AMP to market this to younger students and those going through a transition in the job market,” he says. Part of that effort is a multi-level approach to get as many students involved as possible. “We’re doing a good job of connecting to EVIT and West-MEC [East Valley Institute of Technology and Western Maricopa Education Center], which represent most of the high schools in Maricopa County, to articulate their students with us as they move forward to a career pathway to get an education in manufacturing.” West-MEC has begun a program to train students to levels 1 and 2 of the NIMS
Global economic changes are resulting in manufacturing trending back to the United States. Wages overseas are rising more rapidly than in the U.S., and the convergence is cutting into the cost difference. certification, and Ron Kalmbach, program specialist at the school, says the new facility at the Central campus equipped with new mills and other tooling machines has generated favorable interest. He says West-MEC also plans to be part of the Arizona Precision Manufacturing Apprenticeship Program, a collaborative effort begun just a few years ago among the ACA, Arizona Tooling and Machine Association, Maricopa Workforce Connections, Phoenix Workforce Connection, several Maricopa community colleges and individual manufacturers to help build a much-needed pipeline of qualified employees. Owens cites a generational shift in career choices, observing there is little interest in machining and flash manufacturing.
Mass production of drinks for the retail market use mechanized bottling.
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But businesses are partly to blame as well. “Businesses moved manufacturing to lowercost labor regions, and, therefore, were not attracting skilled workers. So there’s a void in labor for work coming back here,” he says. Helping fill that void, Honeywell supports industry programs that focus on an engineering skill set. It is one of the main sponsors of the Arizona Science and Engineering Fair. And there’s the Honeywell Fiesta Bowl Aerospace Challenge, which encourages students in the fifth through eighth grades to enhance their knowledge of space technology. Such events, Owens says, “develop the interest in technical thinking, which can lead to an engineering degree or they can go into manufacturing — manufacturing engineer, industrial engineer or even a skilled machinist.” Other businesses have also taken their own proactive measures to address the labor deficiencies. Avnet developed its Avnet Tech Games in 2006 after the Maricopa Community Colleges District Office approached the company for help in improving the employable skills of its graduates. The games — created each year with input also from Avnet’s vendors — not only challenge the college student participants in real-world skills, they enable the faculty at the colleges to gain a greater understanding of what the industry is looking for. And PADT contributes to STEM education in schools throughout the state, from elementary through university. Says Miller, “We supply them with 3-D printers and help develop curricula around the printers so they understand the technology.” PADT also offers active internships. “We try to use the technology to get students excited about manufacturing.”
INBUSINE SSMAG.COM
Where Are We
Now?
The total manufacturing output in Arizona was $21.9 billion in 2012, the most recent year for which there are figures, according to the ACA. This represents the highest manufacturing output ever recorded for the state’s GDP. Manufactured exports increased by 25 percent from 2009 to 2013, when it reached $15.5 billion and accounted for more than 80 percent of Arizona’s total exports and an estimated 84,000 manufacturing jobs. “Manufacturing plays a critical role in our economy and our future, and it’s important for Arizona-based manufacturers, and for those who expand here, to know that they have a strong foundation of support,” says Watson, noting the ACA offers grant and incentive programs to encourage research and development to spur innovation. Among them is RevAZ, a partnership with the U.S. Department of Commerce National Institute of Standards and Technology that Watson describes as “an ACA program with a single focus — to strengthen our state’s small and medium-sized manufacturers.” And there continues to be opportunity. “We have every intention to keep our operation going strong here,” says Honeywell’s Owens. Noting there is a record backlog in the aerospace industry, he says filling the need “will require we all grow, including the local supply chain.” Arizona Commerce Authority azcommerce.com Avnet avnet.com Heckler Design hecklerdesign.com Honeywell honeywell.com Maricopa Community College District 68.maricopa.edu Nichols Precision nicholsprecision.com Phoenix Analysis and Design Technologies padtinc.com
WE PUT SOME OF THE VALLEY’S TOP BUSINESS EXPERTS IN ONE PLACE. Business Resource Center. You need timely, relevant information to help you manage your business. But finding it can be a hassle. That’s why SRP has partnered with local business organizations to bring you professional insights on everything from marketing and human resources to financing and forecasting. All in one place. All from experts in their fields. SRP is happy to provide this free service, because what’s good for business is good for all of us. Learn more at srpbizresource.com.
Pivot Manufacturing pivotmfg.com Refresh Glass refreshglass.com TASER International, Inc. taser.com Vantage Mobility International vantagemobility.com W. P. Carey School of Business wpcarey.asu.edu West-MEC west-mec.org
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HR
PEOPLE ARE KEY
Employee Engagement Lies in the Little Things Employee disengagement can have a devastating impact on a company’s bottom line, but the solution can be both simple and inexpensive by Todd Patkin TRUE EMPLOYEE ENGAGEMENT needn’t be expensive or difficult to implement. Engagement is really just another word for on-the-job happiness, and we intuitively know that happiness is connected to the simple things in life. So why not apply that principle to the workplace? Over the years, I’ve found that simple things like gratitude, respect, and autonomy make people far happier than, say, big salaries and corner offices. Best of all, these things are free and usually easy to provide. This might involve having to put some work into changing bad leadership habits that might be keeping employees beaten down and resentful, but doing that work is worth it. It’s the cornerstone of a cultural change that will naturally and organically lead to better employee engagement. short term, but it’ll negatively impact that employee’s self-confidence, Here are eight inexpensive (or free!) strategies that you can use to relationship with you and feelings for your company for much longer. start transforming your business’s workplace environment: Don’t get me wrong: You shouldn’t take mistakes — especially those Catch people doing things right. Everyone knows how embarrassing involving negligence, incompetence or dishonesty — lightly. But when and stressful it is to be caught doing something wrong. For most your employees have made an honest mistake, take a deep breath and employees, those negative feelings can linger (and impact performance) remind yourself that the employee feels very bad already, and that yelling for hours, days or longer. That’s why, if you don’t want your team to or lecturing won’t change the past. Instead, focus on figuring out what dread your presence in their workspace, you need to start each day with went wrong and how to keep it from happening again. Also, never forget the intention of catching as many people as possible doing well. Not that mistakes are an essential part of growth. You don’t want to create an only can praise improve your employees’ perception of you, it’s also an environment where people don’t take potentially productive risks because incredible morale and motivation booster. they’re afraid you’ll get mad if they screw up. Praise them publicly (and Don’t be the sole decision maker. You may feel then praise them some more). that, as a leader, it’s your job to decide what the Over the years, I’ve found that simple Even if they brush off praise or employees’ tasks should be and how they should things like gratitude, respect, and downplay their achievements, be carried out. But employees who are told what autonomy make people far happier everybody loves to be recognized to do feel like numbers or cogs in a machine. You and complimented in front of might get the results you want, but never more than, say, big salaries and corner their peers. So don’t stop with than that — and often, your team’s performance offices. Best of all, these things are a “mere” compliment when will be grudging and uninspired. To unlock free and usually easy to provide. you catch an employee doing buy-in and achievement, make your employees something right — tell the rest of feel like valued partners by seeking out their the team, too! Whether correctly or incorrectly, many employees feel their opinions, ideas and preferences. They’ll be much more invested in your leaders take them for granted and point out only their mistakes in front of organization’s success because they had an active part in creating it. the group, so make it your daily mission to prove that perception wrong. Help your employees grow. As a leader, there’s a lot you have to As president of Autopart International, when I saw that one of my deal with on a daily basis. But no matter how full of “stuff ” your plate people did something noteworthy, I made sure everyone else knew may be, don’t lose sight of the fact that a crucial part of leadership is about it by emailing the story to the entire chain. I could literally see the developing your people — because, ultimately, the success or failure of glow on the highlighted employee’s face for weeks, and I also noticed your business depends on the people who show up each day to do the that many of the other team members began to work even harder in work. Get to know each member of your team and give each person order to earn a write-up themselves. progressively more autonomy, authority and responsibility when they Handle mistakes with care. In business, mistakes are going to happen. show they can handle it. When they feel challenged and know their What you can choose is how you, as a leader, handle them — and, by talents are being utilized, your employees will be more engaged. And extension, what kind of impact they have on your company. Lambasting avoid micromanaging, which can give employees the impression that an employee who has dropped the ball may make you feel better in the you don’t trust them or have faith in them.
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INBUSINE SSMAG.COM
BOOKS Remember that business is personal. People don’t care how much you know (or how good you are at your job) until they know how much you care. Your employees will be more loyal and more motivated if they feel valued as individuals, not just as job descriptions. So get to know each team member on an individual basis and incorporate that knowledge into your regular interactions. Showing genuine interest and caring is the greatest motivator I know. Make it a family affair. Whenever possible, engage your employees’ families in a positive way. In addition to holding contests with family prizes and inviting loved ones to company celebrations, make sure your team members’ families know how much they’re appreciated by your company. Having a leader validate all the hours each employee spends at work will be remembered far longer than a bonus. Plus, when spouses and kids know what Mom or Dad does at work and are “on board” with it, your employee’s performance will be buoyed by support from the ones he or she loves the most. For example, if an employee did something really tremendous, I would call his home, generally trying to get the answering machine and not a person. Then I’d leave a voicemail like this one: “Hi, (name of spouse and kids), this is Todd Patkin from Autopart International where your husband and dad works. I just want to tell you that your husband and dad is incredible! He just broke our Nashua, New Hampshire, store’s all-time sales record. Guys, that is tremendous! So, please, kids, do me a favor. When your dad comes home tonight, everyone run up and give him a huge hug and tell him how proud you are of him and how great he is. And, (name of spouse), I hope you will give him a wonderful kiss to make sure he knows how much you love him and how much he is appreciated for all he’s doing for our company. Thanks, guys.” Years later, many employees whose families received these phone calls told me that although they didn’t remember how much their bonus checks were for that year, that extra-special homecoming was still clearly etched in their memories. Re-recruit your best people. While it is your duty to help your weak links move up in (or out of) your organization, don’t allow them to distract you from your most valuable players. Actually, your efforts are best spent with your top people. Just think how much more impressive their already-great work could be with some more encouragement and guidance. Also, think of how far back your team would slide if these MVPs decided to hand in their notice and work for the competition. You should go as all-out in “re-recruiting” your top people as you would in attracting new talent. Whatever your level of leadership and whatever your industry, you have nothing to lose and everything to gain — including an improved bottom line — by making your organization as happy a place to work as possible. While a lack of employee engagement is certainly a costly problem, its solution doesn’t have to be. For nearly two decades, Todd Patkin (www.toddpatkin.com) was instrumental in leading his family’s auto parts business, Autopart International, to new heights until it was finally bought by Advance Auto Parts in 2005. One of his most reliable growth strategies was proactively nurturing his employees’ attitudes about their jobs. Now, Patkin translates that experience into consulting with organizations to help them build corporate morale and promote greater productivity. Finding Happiness: One Man’s Quest to Beat Depression and Anxiety and—Finally—Let the Sunshine In is his second book, and a third is due out this year.
INBUSINE SSMAG.COM
LEADING TO MANAGE WELL
Predictive Leadership: Avoiding the 12 Critical Mistakes That Derail Growth-Hungry Companies MOST SUCCESSFUL, GROWTH-HUNGRY companies begin to miss their projections or worse, not because demand is low or conditions are difficult, but simply because they don’t know how to predict, nurture or even maintain their own growth and success. Most leaders feel isolated, pressured to build on earlier success and maintain total control — the perfect recipe for the 12 most common and critical mistakes to show up and slow or kill growth. Kirk Dando, leadership and growth expert, calls these roadblocks the “12 Warning Signs of Success,” and, through this book, helps leaders across industries predict, prepare and avoid them at every stage of growth. Kirk Dando $27 • Palgrave Macmillan • On shelves and online
The Leadership Playbook: Creating a Coaching Culture to Build Winning Business Teams THERE ARE ENORMOUS differences between managing and coaching. Yet many companies and organizations encourage their leaders to coach teams without ever teaching them how and without creating a culture that supports coaching. Nathan Jamail, a leading consultant, professional speaker, and the president of his own group of businesses, trains coaches at several Fortune 500 companies and learned that not only does it take different skills to achieve success, but a truly effective coach needs an organizational culture that creates and multiplies the success of every motivated team member. The Leadership Playbook shows leaders the skills necessary to be an effective coach and to build effective teams. Nathan Jamail $27 • Gotham • July 2014
The Secret: What Great Leaders Know and Do IN THIS NEW edition of their classic business fable, Ken Blanchard and Mark Miller get at the heart of what makes a leader successful. Struggling young executive Debbie Brewster asks her mentor the one question she desperately needs answered: “What is the secret of great leaders?” His reply — “great leaders serve” — flummoxes her, but, over time, her mentor reveals the five fundamental ways that leaders succeed through service. This new edition includes a leadership self-assessment so that readers can measure to what extent they are serving and where they can improve. The authors also have added answers to the most frequently asked questions about applying the serving-leader model in the real world. Ken Blanchard and Mark Miller $22.95 • Berrett-Koehler Publishers • September 2014
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MANAGEMENT
DECISIONS THAT MATTER
The Blind Spot in Sales Management Common ‘sins’ sabotage good talent by Jack Daly
I have found that having the right people in important spots is, absolutely, the secret to success. Yet business leaders sometimes blindside themselves staffing key positions.
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IT’S A SIMPLE fact of business: Without sales, no one else downstream can do their jobs. Because of how vital sales are to a company, CEOs frequently tend to misuse their best people. There are three “sins” that minimize the sales management role, which ultimately holds the company back from achieving its growth. When they misallocate key players, small to medium-sized businesses tend to go in one of two directions — they either stay small to medium, or they go out of business. The reason most often comes down to a violation of one or more of these three “sins” of sales management. In my 20-plus years in business, which includes building six entrepreneurial companies into national firms, I have found that having the right people in important spots is, absolutely, the secret to success. Yet business leaders sometimes blindside themselves staffing key positions. In sales, for the company to ensure continued growth, the people at the top must avoid the following scenarios: Sin No. 1 … is committed when the CEO or owner wears the hat of the sales manager. Doing that is, essentially, relegating both the CEO job and the sales manager job to part-time status. In effect, the CEO or business owner is saying, “I’m going to grow my business part time.” In order for a business to grow, it must grow its sales force — which requires someone working at that full time. Sin No. 2 … is to make the best salesperson the sales manager. It can work, but seldom does. The usual scenario, however, is the business loses its best
salesperson and gets a mediocre sales manager. The roles and the responsibilities are entirely different. A salesperson’s role is to win new customers and nurture the ones already involved, thereby differentiating the business from its competitors. The sales manager’s job involves recruiting, training, coaching, building and developing. Being effective at one of those jobs is not an indicator that a person will be equally effective in the other. Salespeople are used to immediate gratification, involving a deal-to-deal routine. Sales managers, by contrast, must take their time to recruit, train and coach. A salesperson might easily become disenchanted with the pace of the new role and look for another sales job, which may even be with a competitor. Sin No. 3 … is probably the most grievous of all. The best salesperson is made a sales manager, but he or she is also required to continue booking business. It’s absolutely ruinous. The person’s focus will remain fixed on the customer, as that is how his or her compensation is driven. Accordingly, the sales team will be underserved, missing the opportunity for leveraged growth. Since sales drives business, it’s essential to match skills and personality types to the jobs, and to ensure the people can focus on their roles. Avoiding the above sins is a good start to accomplishing this. The author of Hyper Sales Growth, Jack Daly (www.jackdaly. net) is a sales trainer and sales coach. His 20-plus years of business experience includes several successful stints as the CEO of fast-growing companies. He has a Bachelor of Science in accounting, a Master of Business Administration, was a Captain in the U.S. Army, and is an accomplished author with audio and DVD programs.
INBUSINE SSMAG.COM
by RaeAnne Marsh
WWW.INBUSINESSMAG.COM
June 2014
ON THE AGENDA
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.
National Association of Women Business Owners – Phoenix
QtheBrand
Desert Diamonds Awards Gala
Social Media Day Phoenix
Wed., June 11 — 11:00a – 1:00p
Sat., June 28 — 6:00p – 10:00p
THE NAWBO PHOENIX chapter presents the 12th annual Desert Diamonds Awards Gala at the Omni Scottsdale Resort & Spa at Montelucia. Kenneth Blanchard, Ph.D., will present the keynote address, “The Power of Trust.” Dr. Blanchard, chief spiritual officer of The Ken Blanchard Companies, is respected globally for his research and expertise in the fields of leadership and management. The One Minute Manager, which he co-wrote with Spencer Johnson, M.D., has sold more than 13 million copies since it was first published in 1982. Names of the award winners are being kept under wraps until the event. Finalists for Business Owner of the Year are Dorothy Wolden, principal and creative director of Gravity Web + Design; Jackie Wszalek, owner and president of Despins Printing & Graphics; and Connie Zimmerlich, co-owner of ClickChick Photography. Member of the Year finalists are Carmella Dodge, Nancy Sanders and Dorothy Wolden. Bridge Builder of the Year finalists are Lynda Bishop, Melanie Dunlap and Nancy Sanders. Unsung Hero finalists are Lynda Bishop, Phaedra Earhart and Nancy Sanders. Finalists for the Spirit of NAWBO Sisterhood — which, for the first time, were chosen by vote of the chapter membership — are Carmella Dodge, Julie Kern, Nancy Sanders and Kristin Slice. Corporate Partner of the Year finalists are National Bank of Arizona, Southwest Gas and Walmart. Additionally, up to four President’s Choice awards may be presented. Says Jackie Wszalek, president of NAWBO Phoenix, “Besides raising brand awareness and bringing positive PR for an organization, the NAWBO Phoenix awards are a celebration of ‘a job well done.’ It is an independent seal of approval that gives customers the knowledge that they have made a good choice, potential customers the added confidence to engage your services, and employees the pride needed to continue the mission. Everyone wins in the process.” Registration for members is $50; for non-members, $60.
WHAT IF SOCIAL media failed? This is among the questions and issues that the fourth annual Social Media Day Phoenix will address on Saturday, June 28. The event, being held at the Renaissance Phoenix Downtown Hotel, is planned as a fast-paced program built on the theme “social media is cool.” The first half will present three sessions, each 20–25 minutes, that will cover best practices to avoid a social media “failure” and how to handle negative situations, helpful tools for managing social media advertising, and intellectual property issues of social media. Program was developed based on input from attendees at other Social Media Day events, says MoniQue Shaldjian, owner of digital marketing company QtheBrand, who now manages the annual event. “We asked them what they’re looking for,” she says. Nametags will be color-coded to identify those attending for their own interest in social media, social media managers looking for new clients, and businesses looking for a social media manager. “This allows you to maximize your time networking with people who could potentially help you in your business.” The event culminates in a giant light show for the second half of the evening. At 8 p.m., doors will be opened to invite attendees to celebrate on the terrace, where they can enjoy cocktails and raffle prizes amid the display of colored lights projected onto nearby buildings. Cost to attend is $25.
NAWBO Phoenix nawbophx.org
Notable Dates This Month Sat., June 14 Flag Day Sun., June 15
Father’s Day
Sat., June 21
Summer Solstice
Photo courtesy of Jay Mark
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.
Social Media Day Phoenix facebook.com/SMdayPhx
WANT TO CUT ENERGY COSTS? THINK SRP REBATES. savewithsrpbiz.com INBUSINE SSMAG.COM
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ON THE AGENDA ARIZONA ASSOCIATION FOR ECONOMIC DEVELOPMENT ‘Velocity Program – Arizona’s Future’ Tues., June 10 11:30a – 1:15p
The speaker is Barry Broome, president & CEO of the Greater Phoenix Economic Council. AAED members and guests: $40; non-members: $50; late registrants: $55 Phoenix Country Club 2901 N. 7th St,, Phoenix aaed.com
ARIZONA CHAMBER OF COMMERCE AND INDUSTRY Annual Awards Luncheon Thurs., June 19 Noon – 1:30p
Recognizing outstanding leaders in the business and legislative communities, the Chamber’s “Transformational Leader Award” and other awards are presented. The incoming chairman of the board shares his vision for the upcoming fiscal year. Members: $75; non-members: $85 Location tbd azchamber.com
JUNE 2014
Women in the Workforce Event Fri., June 6 8:30am - 10:00am
“Untethered Ideas,” presented by Christine Jones, a Republican candidate for Governor of Arizona and former executive vice president and general counsel for Go Daddy, sharing how we can use technology to plan for the challenges facing Arizona. Also available: basic manicure or pedicure. Members: $35 with treatment, $15 without; non-members: $55 with treatment, $35 without 20 Lounge 7001 N. Scottsdale Rd., Scottsdale (602) 343-8324
Lunch and Learn
Tues., June 17 11:30am - 1:00pm
“Exposing the Hacker – Emerging Threats and Strategies for Defense,” presented by Sungard Availability Services and Alert Logic speaking about malicious cybercrime. Members: free; non-members: $15 The Capital Grille 2502 E. Camelback Rd., Phoenix aztech.org
CENTRAL PHOENIX WOMEN
ARIZONA SMALL BUSINESS ASSOCIATION
Luncheon
Loud Rumor Event
“Career, Family and the Future” – presentation by Nicole Stanton, managing partner of Quarles & Brady, and Phoenix Mayor Greg Stanton. $75 The Ritz-Carlton, Phoenix 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org
Thurs., June 12 6:00p – 9:00p
This event brings 200-400 business owners, professionals and entrepreneurs from all over the Valley. Free Talking Stick Resort – Degree 270 Lounge 9800 E. Indian Bend Rd., Scottsdale Marjon Arce, marjon@loudrumor.com
ARIZONA TECHNOLOGY COUNCIL Lunch and Learn Tues., June 3 11:30a – 1:00pm
“Five Hot PR Trends for B2B Tech,” presented by Jennifer Jewett of Ubiquity PR. Members: free; non-members: $15 Appointment-Plus HQ 15300 N. 90th St., Scottsdale (602) 343-8324
INTERFACE Phoenix Fri., June 13 9:30a – 3:30p
Presented by the Arizona Technology Council in partnership with F2F Events, Inc. Free Westin Kierland Resort 6902 E. Greenway Pkwy., Scottsdale (602) 343-8324
Thurs., June 26 11:30a – 1:30p
J U N E 2014
Economic Update Series Luncheon Wed., June 25 11:30a – 1:00p
Members: $25; non-members $35 San Marcos 1 N. San Marcos Pl., Chandler chandlerchamber.com
GLENDALE CHAMBER OF COMMERCE Membership Breakfast – The Impact of the F35s & Luke Air Force Base Wed., June 4 7:30a – 9:15a
Colonel Jeremy Sloane is the keynote speaker. Members: $40; non-members: $50 Renaissance Glendale Hotel & Spa 9495 W. Coyotes Blvd., Glendale glendaleazchamber.org
GLOBAL CHAMBER Global Discussion Mon., June 2 7:30a – 9:00a
Global business discussion, with special guests. Members: $20, non-members: $30 SkySong – Global Room 1475 N. Scottsdale Rd., Scottsdale doug@globalchamber.org
Each outing is held at a Chamber member golf course on a rotating basis. $30 Ocotillo Golf Resort 3751 S. Clubhouse Dr., Chandler chandlerchamber.com
Leadership keynote speaker will be Ray Anderson, newly-appointed athletic director for Arizona State University. Also, presentations from the GPCC Board of Directors. Members: $35; non-members: $50 Point Hilton Squaw Peak Resort 7677 N. 16th St., Phoenix events@phoenixchamber.com
This month’s topic: Website Hosting: Virtual vs Shared. Free Chandler Chamber of Commerce 25 S. Arizona Pl., Chandler chandlerchamber.com
Business Golf
Wed., June 18 7:00a – 9:30a
MESA CHAMBER OF COMMERCE Grow Your Business Tues., June 10 11:30a – 1:00p
“Business Crimes & What’s Trending in Mesa,” presented by the Mesa Police Department. Members: $15; non-members: $25 Superstition Springs Golf Club 6542 E. Baseline Rd., Mesa mesachamber.org
NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS
“The Power of Trust,” featuring keynote Speaker Ken Blanchard of The Ken Blanchard Companies. Members: $50; non-members: $60 Omni Scottsdale Resort & Spa at Montelucia 4949 E. Lincoln Dr., Paradise Valley Suzanne Lanctot, suzanne@nawbophx.org (See article on page 29.)
Annual Member Luncheon
Thurs., June 12 11:30a – 1:00p
Members: free; non-members may attend 1 Chamber event prior to joining Gallagher’s 7575 N. 16th St., Phoenix athomas@phoenixchamber.com
Chapel of the Chimes 7924 N. 59th Ave., Glendale Monika Nylund, (623) 937-4754
Business Golf
Technology Lunch Seminar Series
Tues., June 24 5:00p – 7:00p
Desert Diamonds Awards Gala
Thurs., June 19 Members: free; non-members: $25
GREATER PHOENIX CHAMBER OF COMMERCE
Wed., June 4 7:00a – 9:30a
After 5 Mixer
Business After Hours
CHANDLER CHAMBER OF COMMERCE
Each outing is held at a Chamber member golf course on a rotating basis. $30
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Bear Creek Golf Complex 500 E. Riggs Rd., Chandler chandlerchamber.com
Thurs., June 5 11:00a – 1:00p
Professional Women’s Alliance Tues., June 10 11:00 am – 1:00 pm
“Igniting Your Inner ATHENA,” with speaker Martha Mertz, fFounder of ATHENA International. Members: $20; non-member: 40 Phoenix Country Club 2901 N. 7th St., Phoenix bconklin@phoenixchamber.com
Wed., June 11 11:00a – 1:00p
NORTH PHOENIX CHAMBER OF COMMERCE AM Networking with NPCC Tues., June 3 7:00a – 8:30a
$25 Moon Valley Bar & Grill 15414 N. 7th St., Phoenix bit.ly/1tWmrFn.
ORGANIZATION OF WOMEN IN INTERNATIONAL TRADE – PHOENIX ‘How to Do Business in the BRIC Countries’ Thurs., June 19 8:30a – 10:30a
An informative and practical discussion on understanding “how to” do business in the BRIC countries, including: Risks, Strategies, and Import and Export Compliance. Members: free; non-members: $35 Maricopa Association of Governments 302 N. First Ave., Phoenix owitphoenix.org
INBUSINE SSMAG.COM
Please confirm, as dates & times are subject to change.
PEORIA CHAMBER OF COMMERCE
Business Owners Forum
Business Education Seminar
2014 Chamber Awards Banquet Hawaiian Style
A roundtable discussion about current issues and business-related topics that are affecting participants’ business is followed by a pre-determined topic of interest to the business owners by a SCORE representative who has retired from that area. Free Scottsdale Area Chamber 7501 E. McCormick Pkwy., Scottsdale Kelly Rich, (480) 355-2714
Free Communiversity @ Surprise 15950 N. Civic Center Plaza, Surprise Maria Espejo, (623) 583-0692
Thurs., June 12 5:00p – 9:00p
Marking 95 years of the Peoria Chamber of Commerce, the event celebrates successes of the past year, looks ahead to the future, honors the West Valley and recognizes the change in leadership at the board of directors. $150 for 2 Rio Vista Recreation Center 8866-A W. Thunderbird Rd., Peoria peoriachamber.com
SCOTTSDALE AREA CHAMBER OF COMMERCE Business Volunteer Awards Breakfast 2014 Tues., June 10 7:30a – 9:00a
The Chamber recognizes and celebrates the contributions of its many dedicated volunteers. Members: $30; non-members: $50 The Venue Scottsdale 7117 E. Third Ave., Scottsdale Anna Mineer, (480) 355-2708
INBUSINE SSMAG.COM
Fri., June 13 8:00 a - 9:00a
Meet Your Neighbors Lunch Fri., June 27 11:30a – 1:00p
Network over lunch. $10 in advance; $15 cash at the door Pink Pony 3831 N. Scottsdale Rd., Scottsdale Kelly Rich, krich@scottsdalechamber.com
SURPRISE REGIONAL CHAMBER OF COMMERCE Social Media Class Tues., June 24 7:30a – 9:30a
Includes full breakfast before class starts. Members: $10; guests: $20 Holiday Inn Hotel by Surprise Ball Park 16540 N. Bullard Ave., Surprise desertbayinsurance@gmail.com
Fri., June 27 8:15a – 10:00a
TEMPE CHAMBER OF COMMERCE Hot Topics and Lunch Thurs., June 19 11:30a – 1:00p
“Using Crowdfunding to Start, Build and Finance Your Business.” Members: $25 in advance, $30 day of; general public: $35 Radisson Phoenix Airport Hotel 427 N. 44th St., Phoenix tempechamber.org
WEST VALLEY WOMEN ‘Meet the Mayors’ Luncheon Tues., June 3 11:30a – 1:00p
$35 Arizona Broadway Theatre 7701 W. Paradise Ln., Peoria westvalleywomen.org
WOMEN OF SCOTTSDALE ‘Spotlight Your Business’ Luncheon Fri., June 20 11:30a – 1:00p
Annual event where members may showcase their companies. $35; reservations required by June 17 Westin Kierland Resort & Spa 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org
OTHER BUSINESS EVENTS Worldwide ‘Social Media Day’ Phoenix Sat., June 28 6:30a – 10:00p
Valley social media enthusiasts, small business owners, media, marketing professionals and others will come together to participate in relevant and useful content sessions and to enjoy an evening networking celebration. $25 Renaissance Phoenix Downtown Hotel 50 E. Adams St, Phoenix facebook.com/SMdayPhx (See article on page 29.)
‘Flawless Consulting: Yesterday and Today’ Webinar Thurs., June 26 1:00p – 2:00p
Peter Block will discuss what has changed and what hasn’t in the world of consulting since the publication of his book Flawless Consulting: A Guide to Getting Your Expertise Used 30 years ago. $99 designedlearning.com
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ASSETS
by Mike Hunter
WE VALUE WHAT WE OWN
Lexus IS 350 C F Sport WITH SUMMER HERE, this all-new Lexus is the perfect toy. Power, luxury and topless are the words to describe this incredible machine from the carmaker whose focus is quality, style and speed. With a 3.5-liter, 60-inch V6 that nets 306 horsepower and 277 pound-feet of torque, this vehicle is powerful in all ways. Fuel economy is 19 mpg city and 27 mpg highway, which helps to justify the practicality of this hardtop/no-top sports car. The three-piece retractable hardtop operates with numerous electric motors and sensors to ease the transition, making this truly convertible. When the top is up, the car is as airtight as the IS sedan; when down, it is aerodynamic bliss at all speeds. Performance is what distinguishes the F Sport, with its optimized steering system and a special sporttuned suspension that exhilarates any driver on any road. The styling is stellar, with an F Sport grille, aggressive 18-inch wheels and a number of exclusive body colors to choose from. The interior is Lexus at its best, with uncompromised use of design for space and even a spacious back-seat area. Front-seat comfort is also about performance, surrounded with wood trim, leather appointments and technology and sound that impresses. The navigation system, with its 7-inch high-resolution multimedia display, means everything is at the driver’s fingertips. From communication and audio to navigation and climate, this fully equipped topless cabin is a comfort zone that travels. This top-of-the-line model (there is also a 250 version) has many options available to bolster appearance and performance, but the F Sport package is meant to perform. With split-five-spoke alloy wheels with the dark Superchrome finish and the sports suspension and EPS tuning, taking curves and looking good come together. The heated and ventilated front seats means leave the top down on cool or hot days. Design features make this model stand out, with the F Sport front seats, steering wheel, shift knob and the front fender badge. A front-lip spoiler, silver metallic interior trim and aluminum sport pedals and paddles bring this all together and truly define 2014 Lexus IS 350 C F Sport this as a sports car. City MPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Hwy MPG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 0-60 MPH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.8 sec Transmission. . . . . . . . . . . . . . . 6-speed automatic MSRP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $49,690
Lexus lexus.com
Company Mobile Plan MORE AND MORE companies are supplying employees with their mobile devices, and the top carriers are in on that trend with new and improved plans. Here are our pick for top plans that will benefit the bottom line.
AT&T Mobile Share Plans
With no annual service contract, AT&T has introduced Mobile Share. It offers three to five lines on a single plan that includes a combined 10GB of data and free talk and text. Cost varies based on what options business customers include. att.com/smallbusiness
Sprint Volume Discounts for Business
With Sprint, it is all about how many phones are needed in the plan. Eight-percent discounts are available on eligible voice and data services on accounts with 1-99 active Corporate-Liable units. Signing up is free and easy, and the plan can be adjusted as phones are added and subtracted. sprint.com
Supporting up to 50 devices, the More Everything Plan includes unlimited talk and text, email and data share for all and up to 25GB of cloud storage space. The plan also provides lower rates on international calls and data. verizonwireless.com/business
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Photos courtesy of Lexus (left)
The MORE Everything Plan from Verizon
by Mike Hunter
MEALS THAT MATTER
POWER LUNCH
Smooth & Refreshing IN AN AGE of health-conscious foods, smoothies and juices have become popular enough to warrant their own shops. Panning the commercial drinks because they have too much sugar and not enough nutrients, these drink joints are all about what’s best for the individual’s body. Good for a snack; good for a meal.
Juby True
Get cold-pressed juices, smoothies, and boosters that are all built on the belief that good nutrition should always taste amazing. Juby True is all about getting a healthy dose of fruits and vegetables, made from the best possible ingredients through chef-driven recipes that balance flavor and nutrition. 15191 N. Scottsdale Rd., Scottsdale (480) 265.4500
Kaleidoscope Juice
Juices with a cause to better the individual’s life is what this fun and energetic spot has to offer. The selection in this Valley gem ranges from cold-pressed juices to cleanses and various remedies. Four locations in Scottsdale and Phoenix kaleidoscopejuice.com
Photos courtesy of Nekter Juice Bar (left), David Fox, Fox Restaurant Concepts (right, top and bottom)
Nekter Juice Bar
Originally begun in California with the idea that true juices and smoothies should be made of all-natural and nutritious ingredients, this juice joint is all about true health and healthy living — and educating customers while they enjoy their refreshment. Two locations in Scottsdale nekterjuicebar.com
Nekter Juice Bar
Peace and Tranquility Inspire Flower Child
LOCATED IN WHAT has become one of the Valley’s culinary hot spots at the corner of 44th Street and Camelback Road, Flower Child is the latest concept by famed local restaurateur Sam Fox. The concept validates the theory that happy food and healthy food can come together in harmony — which they do at this peaceful, casual kitchen. Serving locally sourced foods, all natural and mostly gluten free, this new hot spot is a lunch destination to reckon with. On the menu is The Rebel, a grass-fed steak with charred onion, Port Salut cheese, arugula and horseradish yogurt on a house-made whole wheat, flax and chia seed wrap. Also, the Asian Avocado Salad is a favorite already, with kale, edamame, Easter egg radish, cucumber and pickled mushrooms tossed in a sesame vinaigrette. Diners are talking about the Spicy Salmon Nabemono, which is a salmon filet, roasted mushroom, daikon, miso, sweet potato, spinach and sesame seed hot dish, or “hot pot” as it is called. The menu is designed to be fast casual, with patrons ordering “to stay” or “to go.” The offerings are vegan, vegetarian and gluten-free for the most part, available in combinations made up of hummus, vegetable grain plates (sides) and a protein of steak, all natural chicken, salmon or organic tofu. Sides include the Red Chile Glazed Sweet Potato with bok choy and sesame seed, the Kale Apple Slaw, gluten-Free Mac & Cheese, Grilled Asparagus and Wild Mushroom. Set in a countryside farmhouse atmosphere, it’s a peaceful, light and sunny space with an open ceiling and an open kitchen. Diners can choose from any number of natural teas and lemonades that combine ingredients like acai and hibiscus. They are mildly sweetened and the perfect alternative to a soda (which is not served here). The service is pleasant and attentive. Tables are maintained with silverware and napkins, adding to the convenience for “to stay” patrons of serving oneself. Flower Child 5013 N. 44th St., Phoenix (602) 429-6222 iamaflowerchild.com
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“Lasting success is not a result of coincidence – it’s the result of focused hard work. At Brown & Brown, we’ve built a culture that insures success.”
Brown & Brown Insurance of Arizona, Inc. is your hometown, full-service insurance broker. With specialists in all lines of coverage, we protect the investments of individuals and multi-million-dollar businesses alike. As a national, publicly traded insurance brokerage, we can access virtually any market, allowing us the competitive versatility and leverage not found with smaller brokers. The decentralized culture of Brown & Brown Insurance gives us the local controls necessary to remain nimble and decisive, bringing you the coverage and service you deserve. We will identify and measure all risk exposures before recommending and providing the most advantageous solutions. At Brown & Brown Insurance of Arizona, we represent you, the client, first. If you would like more information about Brown & Brown Insurance of Arizona, visit us at www.bbphoenix.com
Brown & Brown Insurance of Arizona, Inc. 2800 N. Central Ave., 16th Floor Phoenix, Arizona, 85004 602.277.6672
Authorized Broker
PRESENTS
TOP
TECH Profiles of the Leading Technology Services Companies Business & Decision CyberTrails Enterprise Technology Services Infusionsoft IT Partners OneNeck IT Solutions SPONSORED BY
Get to know the
BUSINESS SIDE OF COX. Cox Business has built a robust Arizona infrastructure with 23,000 miles of 99.99+% reliable Hybrid Fiber/Coax connecting to a fully redundant national backbone. Cisco-certified technicians on the ground and continuous monitoring from our Regional Operations Center resolve problems before they impact your enterprise. It’s a network designed to exceed business continuity requirements and service designed to exceed expectations. That’s how we do business.
623-594-5238 coxbusinessaz.com
Internet. Data. Phone.
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What Does Technology Look Like in the Valley? Manifesting in diverse realms, it brings strength in wages and GDP by Don Harris TECHNOLOGY INDUSTRY SECTORS, ranging from aerospace and defense to semiconductors and bioscience, represent the cornerstone of Arizona’s economy. They provide high-paying jobs, most of which are located in the Greater Phoenix area. Many of the major manufacturers are household names, while others are start-ups aided by venture capital that never seems to be enough to meet the demands. Steven Zylstra, president and CEO of the Arizona Technology Council, says the technology industry generates a very large percentage of Arizona gross domestic product. What’s more, it is the primary source of Arizona exports. “Exporting is the best way to create wealth for a region because you are using your creativity to develop new products that you then manufacture and export out of the state, after which you import wealth back into the state,” Zylstra says. “Technology is also the source of some of the highest-paying jobs on average,” Zylstra adds. For example, of the 11,000 employees at Intel, Arizona’s leading semiconductor employer, the average compensation is $130,000, Zylstra says. In addition to Intel, Zylstra mentions other local technology players, which include Avnet, Microsoft, Honeywell, Raytheon, Sanofi, IO, Infusionsoft, Boeing and Apple. Still others are Microchip Technologies, GoDaddy and JDA Software. The Arizona Commerce Authority breaks down the technology industry into distinct sectors. ACA says the aerospace and defense industry contributes $9 billion to the state’s economy. Arizona ranks fifth in the nation in A&D employment, with 94,000 direct and indirect jobs, and salaries that average 83 percent higher than the average Arizona wage. There are more than 500 direct and indirect A&D companies in the state. The Greater Phoenix Economic Council notes that with more than 300 sunny days a year, it’s not surprising that, in addition to Boeing and Honeywell, the Valley is home to BAE Systems, Cessna, General Dynamics, Goodrich Corp., Hawker Beechcraft, MD Helicopters and Orbital Sciences Corp. Semiconductors are considered the foundation for electronics technology. Arizona-manufactured semiconductors represent 6 percent or $3 billion of the U.S. market and provide 23,000 local jobs, according to the ACA. Arizona’s bioscience industry generates $36 billion in annual revenue, according to a recent study released by the Flinn Foundation. Hospitals account for the largest group of bioscience jobs — 83,000 — and $22 billion of the bioscience revenue. In addition to hospitals, bioscience industry segments are agricultural feedstock and chemicals; drugs, pharmaceuticals and diagnostics; medical devices and equipment; research, testing and
“Lasting success is not a result of coincidence –
PRESENTS
it’s the result of focused hard work. At Brown & Brown, we’ve built a culture that insures success.”
TOP
TECH Profiles of the Leading Technology Services Companies Business & Decision CyberTrails Enterprise Technology Services Infusionsoft IT Partners OneNeck IT Solutions
ur hometown, full-service insurance broker. With specialists in s of individuals and multi-million-dollar businesses alike. As a we can access virtually any market, allowing us the competitive brokers. The decentralized culture of Brown & Brown Insurance n nimble and decisive, bringing you the coverage and service isk exposures before recommending and providing the most n Insurance of Arizona, we represent you, the client, first.
SPONSORED BY
& Brown Insurance of Arizona, visit us at www.bbphoenix.com Authorized Broker
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medical labs; and bioscience-related distribution. Phoenix, Tucson and Flagstaff are growing bioscience hubs. With the abundance of sunshine, renewable energy, particularly solar, is a growing technology sector. The Arizona Solar Energy Industries Association reports 288 solar companies at work throughout the value chain in Arizona, employing 8,558 workers in 2013. Capital investment in solar is expected to increase in Arizona from $84 million in 2010 to $404 million in 2015 and to $1.4 billion in 2020. Optics/photonics is another technology segment that thrives in Arizona, where employment exceeds 5,500, with wages averaging $50,000 a year. The Arizona Optics Industry Association attracts optics-related companies, including manufacturing, prototype development, consulting services, software development and hardware manufacturing firms. The experts agree that Arizona is poised for continued growth and strong economic performance in high-tech and innovative industries. Access to capital for innovative start-ups and early-stage companies is considered vital. The ACA, which awards up to $250,000 to such companies from an annual pool of $3 million, quotes a report that states from January 2011 through September 2013, nearly $500 million of venture capital was invested into 55 Arizona companies. That’s the key to expanding Arizona’s technology sector, says Zylstra. “Arizona needs to solve the capital formation challenge that we have. There is not nearly enough early-stage capital to invest in all of the worthy technology enterprises. The Arizona Technology Council has been attempting to address that through legislation during the last two sessions, thus far unsuccessfully.” Indicating there is work to be done, the Milken Institute’s State Technology and Science Index for 2012 lists Arizona in 16th place. The index tracks and evaluates every state’s tech and science capabilities — and their success at converting those assets into companies and high-paying jobs. Massachusetts continues to rank first. Among Arizona’s neighbors, California was third, Colorado fourth, Washington sixth and Utah seventh.
Welcome to the In Business Magazine Top Tech special section, profiling technology business services companies that do so much to propel business. Technology has become a core aspect of every business enterprise, with the number of options expanding exponentially and advances that quickly turn yesterday’s “must-have” into today’s “obsolete.” Leading businesses in technology’s many fields call Arizona home in tech fields as diverse as aerospace, automotive, biotechnology and semiconductors, as well as software, Web applications and data centers. In Business Magazine is pleased to spotlight these Top Tech companies that are focused on directing technological advances to helping enterprises better their business.
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TOP TECH
Business & Decision CHOOSING THE RIGHT business information integration partner can make or break your business. At Business & Decision (B&D), we have a reputation with our clients and industry experts alike for functional and technological expertise and have forged partnerships with all of the key technology vendors to provide you with the most appropriate solutions for your business needs.
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We contribute to the success of your project by driving maximum business performance through our global reach/ local approach. We leverage the knowledge of our 2,500 expert consultants and 10 strategic partners to work with you on a range of initiatives from proof-of-concepts to mission-critical, enterprise-wide, global solution delivery. We also offer full lifecycle support, from consulting to continuous improvement, through hosting and ongoing change management and are recognized by Gartner in their Magic Quadrant for BI and CRM Service Providers. B&D is an international consulting and systems integration company and a known leader in business intelligence (BI), customer relationship management (CRM), enterprise resource planning (ERP), enterprise performance management (EPM), data warehousing, and master data management (MDM), and a major player in life sciences computer systems validation
(CSV). B&D also has an FDA-qualified data center in the Philadelphia region supported by managed services for all industries.
PROFILE Company Name: Business & Decision Main Office Address: 8414 N. 90th Street, Suite 101, Scottsdale, AZ 85258 Phone: (602) 244-1200 Website: www.businessdecision.us Number of Offices in Metro Phoenix: 1 Number of Full-time Staff: 250 (nationwide) City Nationally Headquartered: Wayne, PA CEO: Sylvain Thauvette No. of Years with Firm: 9 Year Established Locally: 2009 Specialties: Business Intelligence (BI), Customer Relationship Management (CRM), Cloud Solutions, Enterprise Resource Planning (ERP), and Managed Services & Hosting Solutions
INBUSINE SSMAG.COM
CyberTrails
AS THE IT leader in Phoenix since 1995, CyberTrails helps small to mid-sized businesses select, implement and manage the right technologies to support their business goals. We appreciate your need to be strategic while also meeting the daily demands of running business-enabling technology and performing within tight budget constraints. We also know there aren’t enough hours in the day to be both strategic and operationally effective — that is where we come in. Whether you need on-site or off-site support, CyberTrails possesses an impressive
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scope of expertise, able to solve wideranging technical complexities. Acting either as an extension of your IT department — strengthening existing competencies — or filling in for desired skill sets (either temporarily or on a permanent basis), we employ a success-based delivery methodology that assures the discovery and deployment of the right solution for your business. With our flexibility, rapid implementation and enthusiastic 24/7 customer support, you’ll get exactly what you need to fit your specific situation, which allows you to leverage the same
kinds of technology as much larger companies do without the big financial commitment. With our dedication to providing best practices and best of breed in IT management today, getting IT Right for Your Business has never been easier!
PROFILE Company Name: CyberTrails Main Office Address: 1919 W. Lone Cactus Dr. Phoenix, AZ 85027 Phone: (623) 434-6079 Website: www.cybertrails.com Number of Offices in Metro Phoenix: 1 Number of Full-time Staff: 24 City Nationally Headquartered: Phoenix V.P. of Sales: Rick Estrada No. of Years with Firm: 4 Year Established Locally: 1995 Specialties: Managed Services, Hardware Sales, Virtualization, Back-up, Help Desk
Your Cloud Your Way! The Leading provider of Managed Information Technology Services in Phoenix! Public and Private Cloud Hosting • IT Hardware Sourcing and Sales Server Migration • Patch Management and Infrastructure Monitoring Data Backup and DR Planning • IT Consulting • 24/7 Help Desk
Should Your Company be on the Cloud? THINK. BEYOND. TECHNOLOGY
Visit www.cybertrails.com and download our free whitepaper.
SALES: 623-434-6079
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TOP TECH ETS – Enterprise Technology Services “HOW DO YOU calculate the value of not having a problem?” That’s how a financial services company sums up its long-term relationship with Phoenix-based Enterprise Technology Services (ETS). In addition to the typical computer, server and networking needs of most companies, this financial firm has heightened sensitivity for fail-safe security, back-up and continuous up-time. The company is able to manage it all without a single IT professional on staff. “Companies are discovering just how difficult and expensive it is to have the experienced professionals needed for day-to-day operations and addressing future IT needs,” says ETS President and CEO Jim Siragusa. Through a combination of 24/7/365 remote monitoring, help desk, onsite visits and expert services, ETS provides companies with all of the benefits of having an enterprise-level IT department. However, clients pay only for the services used, providing a predictable monthly cost that is far less than having the resources in-house. “Bottom line, you can focus on managing your company while we focus on the performance, security and availability of your IT systems and data,” Siragusa says. Whether a company has an IT department or not, when it first calls ETS, it is usually
either having fits with all or part of its computer system — or the company is looking to get more out of its existing IT investment. “No matter how simple or complex, the most important thing we can do for any company is to conduct a thorough assessment of everything they currently have in place,” Siragusa notes. “We often find networks with underlying design flaws, hardware and software configuration issues, security threats and other risks related to data integrity and disaster recovery.” To ensure companies are basing their IT decisions on the right information, ETS provides a prioritized list of short-term tactical solutions for resolving problems and/or
maximizing a system’s current capabilities. This then becomes the foundation on which ETS can help a company move forward and develop its long-term strategic IT plan that will support the company’s business objectives. Taking “next steps,” companies will then often look to ETS to design and deliver an enterprise-class network solution that will address their specific performance, scalability and security needs. These solutions are based on best-in-class technologies from companies such as Cisco, Citrix, Hewlett-Packard, Microsoft and VMware. ETS helps a company align its IT investments with its business objectives for maximum result.
PROFILE Company Name: Enterprise Technology Services Main Office Address: 730 N. 52nd Street, Suite 100, Phoenix, AZ 85008 Phone: (602) 426-8600 Website: www.etechservices.com Number of Offices in Metro Phoenix: 1 Number of Full-Time Staff: 32 City Nationally Headquartered: Phoenix CEO: Jim Siragusa No. of Years with Firm: 15 Year Established Locally: 1998 Specialties: IT Management Programs, Network Design and Implementation, Server/Desktop Virtualization, Data Storage and Disaster Recovery Solutions
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“It’s like having an enterprise-level IT department... without the department.” ETS serves companies that depend on flawless IT operations, but can’t afford all of the highly trained and specialized staff it requires. With a combination of 24/7/365 remote monitoring, a help desk, onsite visits and expert network engineering services, ETS has become the preferred IT department for small and mid-sized companies throughout the Valley.
We can do the same for you!
TOP TECH
IT Partners
IT PARTNERS WAS founded in 2003 by six technology industry veterans. Driven by the founding team’s burning desire to create a next-generation solution provider that would focus on customer success — not just sell products — IT Partners has grown to an organization that has helped hundreds of customers successfully design, deploy and integrate data center server, storage, networking and virtualization technologies. With the help of more than thirty-five highly talented, dedicated and passionate professionals, the company serves midsized to large healthcare, financial services, manufacturing, government, education and tribal organizations that have local, national and globally dispersed data centers. IT Partners has steadily grown its business and its brand throughout Arizona and the Southwest, from humble beginnings in a small office on 27th Street and Thomas Road to ultimately owning its own headquarters building in Tempe. When asked about the company’s success, president Gary Johnston explains, “I believe we have achieved that success because of our commitment to providing superior service, optimal technology solutions and thought leadership to our customers.” As technology and the needs of its customers have evolved over the past decade, IT Partners has evolved as well. Willie Hawileh, IT Partners chief operating officer, shares, “We started out purely as a consulting
organization. We have always taken a consultative approach in understanding our customer’s needs and business requirements to ensure that we recommend the best solution or approach for their unique situation and environment.” With today’s new style of IT, that means supporting its customers with new strategy and transformation consulting services, advising them on opportunities in the cloud and helping them develop new ways of delivering IT services to their customers. IT Partners has also consistently included best-of-breed data center technology products in its solution offerings, and represents some of the industry’s largest, most respected technology companies,
including HP, Cisco, VMware, NetApp and many others. As new disruptive technologies and IT models appear in the market, the company works to identify and partner with developers of innovative solutions its leaders feel can solve real business and IT issues. Over its 11-year history, IT Partners has achieved many milestones and accolades, including being named as one of the top 50 privately held companies in Arizona. It has been recognized as one of the fastestgrowing technology solution providers by several industry resources, which include the VAR500, Inc. 5000, CRN Fast-Growth 100 and CRN Tech Elite 250. IT Partners uses technology to help companies achieve their business goals.
PROFILE Company Name: IT Partners Main Office Address: 6939 S. Harl Avenue, Tempe, AZ 85283 Phone: (602) 667-0100 Website: www.goitpartners.com Number of Offices in Metro Phoenix: 1 Number of Full-time Staff: 35 City Nationally Headquartered: Tempe CEO: Willie Hawileh No. of Years with Firm: 11 President: Gary Johnston No. of Years with Firm: 11 Year Established Locally: 2003 Specialties: Data Center Infrastructure, Virtualization, Consulting Services, IT Transformation/Optimization, Servers/Storage/Networking
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A new style of IT is emerging... are you ready?
IT Strategy & Transformation
Highly Secure & Available Infrastructure
Next Generation Data Center
IT Partners Your “Go to” IT Solution Provider
6939 South Harl Avenue • Tempe, AZ 85283 • 602.667.0100
Visit our website for our latest video, www.goitpar tners.com
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Infusionsoft
FOUNDED IN 2001, Infusionsoft is a custom software company that specializes in solutions for small-business owners who need an answer to the problems of using too many systems to manage their sales and marketing efforts. Today, the company founded by Clate Mask and Eric and Scott Martineau works with more than 14,000 small-business customers in 70 countries, and plans to reach 100,000 customers by 2016.
With innovative, all-in-one sales and marketing software solutions, Infusionsoft allows small-business owners to seamlessly manage their sales and marketing efforts, improving their cash flow and profit margins. Through a series of acquisitions, the company has added features to its existing software solutions. A newly acquired tool call “GroSocial” is currently helping customers generate leads through popular social Web sites Twitter or Facebook. GroSocial’s media marketing software helps users create a professional social media presence, capture leads and connect with customers around the globe. CustomerHub, acquired in 2012, offers customers a Web-based application that features a membership site and customer portal platform. The easy-to-use application helps small-business owners market and sell their goods and services online. As the only all-in-one sales and marketing provider, Infusionsoft combines customer
relationship management (CRM), marketing and e-commerce into a comprehensive Webbased solution perfect for the true smallbusiness owner.
PROFILE Company Name: Infusionsoft Main Office Address: 1260 S. Spectrum Blvd. Chandler, AZ 85286 Phone: (866) 800-0004 Website: www.infusionsoft.com/inbiz Number of Offices in Metro Phoenix: 1 Number of Full-time Staff: 350+ City Nationally Headquartered: Chandler CEO: Clate Mask No. of Years with Firm: 13 Year Established Locally: 2001 Specialties: CRM, Market Automation, Email Marketing, Social Media Lead Generation
The Small Business Success Machine. The only all-in-one sales and marketing software built for small business, Infusionsoft combines intelligent automation with powerful CRM, e-commerce, email marketing and social media tools. So you get big business functionality, right-sized for your business.
Get organized
Nurture leads, boost referrals
No contracts, no surprises
Integrated sales and marketing tools give you the who, what, when and where of your business at a glance.
Behavior-based triggers deliver the right message at the right time – without you lifting a finger.
Pay one low monthly subscription fee. Add users as you grow for instant scalability.
Eliminate manual tasks
Know your customer
Increase productivity
Intuitive automation tools take care of administrative duties so you can get down to business.
Comprehensive reporting tools provide key insights to help segment your audience and optimize your strategy.
An easy-to-use online platform means you and your team can work from anywhere, anytime.
Visit
infusionsoft.com/inbiz to see what Infusionsoft can do for you. © 2012 Infusionsoft. All rights reserved. 1-866-800-0004
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OneNeck® IT Solutions
ONENECK® IT SOLUTIONS is steadfast in its commitment to be an expert provider of tailored, end-to-end enterprise-class IT solutions for mid-market and enterprise companies through high-touch customer service. Through a single point of accountability, OneNeck offers a full suite of IT solutions that include enterprise cloud and hosting solutions on ReliaCloud™, managed services, ERP application management, professional services, IT hardware and toptier data centers. At OneNeck, the philosophy is simple: It’s not just about best-in-class technology, it’s also about relationships. OneNeck delivers thought leadership and innovative engineering to help customers reduce costs, improve service levels, increase revenues and gain local-to-global competitive advantage. OneNeck customers span multiple industries, including healthcare, manufacturing, financial services, retail and government. Customers choose OneNeck because of its experienced team. With more than 650 employees, the OneNeck team leverages ITIL-based practices to manage mission-critical data centers, cloud and customer infrastructure 24/7/365. Plus, OneNeck owns and operates data centers in Arizona, Iowa, Minnesota and Wisconsin. The facilities are SSAE 16-audited to ensure customer data is secure, available and helps meet their compliance requirements.
OneNeck IT Solutions was purposefully built through acquisitions completed by Telephone and Data Systems, Inc. [NYSE: TDS], a Fortune 500® company whose business units also include TDS Telecom, U.S. Cellular® and Baja Broadband. The new OneNeck IT Solutions brand is built on a strong foundation and the tremendous resources and capabilities of the following leading IT service providers located throughout the country: • VISI Incorporated: Based in the Minneapolis-St. Paul metro area, the company was founded in 1994 and acquired in March 2010. • TEAM Technologies, LLC: Based in Madison, Wis., with operations in Des
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Moines and Cedar Falls, Iowa, the company was established in 2004 and acquired in December 2010. • OneNeck IT Services Corporation: Based in Scottsdale, Ariz., with operations centers in Tempe and Gilbert, Ariz.; significant customer engagements in Somerset, N.J.; Dallas, Texas; and Kansas City, Mo.; and nationwide sales offices; the company was founded in 1997 and acquired in June 2011. • Vital Support Systems, L.L.C.: Based in Des Moines, Iowa, with offices in Cedar Rapids, Cedar Falls and Davenport, Iowa; Omaha, Neb.; Kansas City, Mo.; and Rockford, Ill.; the company was founded in 2001 and acquired in June 2012. • MSN Communications, Inc.: Located in Englewood, Colo., it was founded in 1993 and acquired in October 2013.
PROFILE Company Name: OneNeck IT Solutions Main Office Address: 5301 N. Pima Road, Suite 100, Scottsdale, AZ 85250 Phone: (480) 315-3000 Website: www.oneneck.com Number of Offices in Metro Phoenix: 5 Number of Full-time Staff: 650 City Nationally Headquartered: Scottsdale CEO: Phil LaForge No. of Years with Firm: 3 Year Established Locally: 1997 Specialties: Cloud & Hosting Solutions, Managed Services, ERP Application Management, Professional Services and IT Hardware
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ReliaCloud has arrived. Local. Secure. Enterprise-Class Cloud Solution.
ReliaCloud™ from OneNeckŽ IT Solutions is the local cloud solution that helps you meet your security, compliance and availability needs. Take advantage of public, private and hybrid options; local data centers; industry-proven technology; advanced disaster recovery; and 100% uptime. ReliaCloud can even help you optimize capital and operating costs.
Choose ReliaCloud. And choose a responsive, secure solution. OneNeck.com/ReliaCloud
Call us today to learn more 855.OneNeck
YOUR DATA IN YOUR BACKYARD
INDEX Index by Name
Daly, Jack, 30
Kimmens, Randy, 20
Siragusa, Jim, 42
Barclay, Caleb, 12
Dando, Kirk, 29
LaForge, Phil, 47
Smith, Jared, 15
Blanchard, Kenneth, Ph.D., 31
DelMuro, Ray, 20
Leach, Steve, 17
Smith, Rick, 20
Boxer, Rosalyn, 20
Eaton, Doug, 20
Macias, Steve, 20
Solheim, John, 9
Brousseau, Ray, 14
Estrada, Rick, 41
Maltz, Arnold, Ph.D., 20
Surace, Kevin, 14
Brunner, Kornelius, 15
Fierros, Dante, 20
Mask, Clate, 46
Tanner, Jeff, Ph.D., 12
Bryant, Trelitha R., 12
Fox, Sam, 35
Miller, Eric, 20
Thauvette, Sylvain, 40
Brzkala, Magdalena, 15
Hall, Ben, 12
Miller, Mark, 29
Watson, Sandra, 20
Cohn, Shelley, 18
Hawileh, Willie, 44
Owens, Mike, 20
Wilson, Jim, 10
Condit, Richard, 10
Heckler, Dean, 20
Patkin, Todd, 28
Wszalek, Jackie, 31
Cope, Kenneth, 14
Jamail, Nathan, 29
Sandler, Corrine, 50
Zylstra, Steven G., 10, 39
Crandell, Steven, 20
Johnston, Gary, 44
Schindler, Andre, 15
Cranston, Jennifer, 17
Kalmbach, Ron, 20
Shaldjian, MoniQue, 31
CyberTrails, 41
Nichols Precision, 20
Snell & Wilmer, 7
Desert Botanical Garden, 18
North Phoenix
Splicity, 12
Index by Company Alerus Financial, 5 Appvance, 14 Arizona Optics Industry Association, 39 Arizona Association for Economic Development, 32 Arizona Chamber of Commerce and Industry, 32 Arizona Commerce Authority, 20, 39 Arizona Community Foundation, 18 Arizona Diamondbacks, 51 Arizona Manufacturing Partnership, 20 Arizona Small Business Association, 32 Arizona Solar Energy Industries Association, 39 Arizona Technology Council, 10, 32, 39 AT&T, 34 Autopart International, 28 Banner Health Network, 3 Behavioral Science Research Press, 12 Beyer Management Consulting, Inc., 13 BIEN, 12 Blue Cross Blue Shield of Arizona, 8 Bluemedia, 16 Brown & Brown Insurance of Arizona, 36
Driver Provider, The, 33 Economic Policy Institute, 20
SRP, 27, 31
Eller College of Management, 12
Organization of Women in
Sundt Construction, Inc., 10
Enterprise Technology Services, 43 Flinn Foundation, 39 Flower Child, 35 Fresh Intelligence Research Corp., 50 Gallagher & Kennedy, P.A., 17 Glendale Chamber of Commerce, 32 Global Chamber, 32 Greater Phoenix Chamber of Commerce, 32 Greater Phoenix Economic Council, 39 Hankamer School of Marketing, 12 Heckler Design, 20 Honeywell, 20 Infusionsoft, 46 Internal Revenue Service, 12 IT Partners, 45
Peoria Chamber of Commerce, 33 Phoenix Analysis & Design Technologies, 20
Surprise Regional Chamber of Commerce, 33 TASER International, Inc., 20 TeamViewer, 15
Phoenix Children’s Hospital Foundation, 19 Phoenix Convention Center, 19 Phoenix Philanthropy
Tempe Chamber of Commerce, 33 UnitedHealthcare, 52 Vantage Mobility International, Inc., 20 Verizon, 34
Group, The, 13, 18
W. P. Carey School of Business, 20
PING, Inc., 9
West Valley Women, 33
Pivot Manufacturing, 20
West-MEC, 20
QtheBrand, 31
Women of Scottsdale, 33
Refresh Glass, 20 Scottsdale Area
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Carrington Mortgage Services, 14
Local First Arizona, 8
Central Phoenix Women, 32
Maricopa Community Colleges, 20
Chandler Chamber of Commerce, 32
Matrix Absence Management, 14
Childsplay, 18
Mesa Chamber of Commerce, 32
Conquest Training Systems, 4
Milken Institute, 39
CopperPoint, 2
National Association of Women
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International Trade – Phoenix, 32
Intel Corp., 39
Lexus, 34
Cushman & Wakefield, 10
Sprint, 34
OneNeck IT Solutions, 12, 48
Business & Decision, 40
Cox Business, 38
Chamber of Commerce, 32
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J U N E 2014
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ROUNDTABLE
A CANDID FORUM
Small Companies Can Compete with the Giants It’s a David-and-Goliath business world where actionable data confers the advantage by Corrine Sandler BEFORE THE INTERNET, small companies didn’t stand a chance against the Goliaths. That’s because no war can be won without intelligence and, before the digital era, collecting actionable data and information about one’s competitors, market and customers cost a lot more than most small businesses — the Davids — could afford. But today, the Davids are taking down the Goliaths. Thanks to the Internet, the boutiques and start-ups have access to all kinds of free tools for gathering intelligence. They’re also much more agile than the big corporations; they can make a decision and act immediately. That’s essential in a marketplace where conditions change quickly. The following are a few tips for acquiring and using intelligence: Make use of free or inexpensive intelligence-gathering tools. Even businesses that lack resources can visit competitors’ websites and collect data about them. Many businesses put a great deal of revealing information on their sites, which can be used to one’s benefit. It is also helpful to make note of any changes on their sites — through Google Alerts, one can tell when they’re releasing new products or expanding. Google analytics tools such as Google Hot Trends can also be used to learn what’s in the collective consciousness — potential consumer demand — at any given time. Google’s key word tool will give one ideas for powerful key words in search terms, and one can use the traffic tool to measure global volume on those key words. Make intelligence-gathering part of one’s company culture. From the manager who overhears a conversation in the grocery checkout line to the clerk obsessed with Twitter, every employee in one’s business is a potential intelligence resource. Business owners can encourage employees to pay attention as they interact with others outside the company. They
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may discover a nagging issue that no other company is addressing, allowing one to create uncontested market space. Or, one may learn critical information about a competitor that allows one’s business to seize an advantage. Appoint a Chief Intelligence Officer (CIO) to coordinate and analyze information from a variety of sources. In smaller companies, leaders tend to rely on pipelines of internal information provided by employees who don’t understand how to use intelligence to make empowering decisions. That can render important data inactionable (unusable or simply not used). A CIO can oversee and coordinate the collection and analysis of intelligence, and brief the business leader daily so that all data is actionable. What enables a business owner to make smart, timely decisions is access to precise intelligence. The advantage that smaller businesses have is they don’t have the corporate processes and protocols that inhibit fast action.
As Sun Tzu wrote in The Art of War — the 2,000-year-old military treatise penned by one of the greatest commanders in history — “It is said that if you know your enemies and know yourself, you can win 100 battles without a single loss.” He held that the goal in any war is to win without ever entering into physical battle. I have found these principles can be applied to the modern business economy. By gathering actionable data and acting on it immediately, by using it to predict next moves and spot opportunities, small businesses can and are taking down the big ones without a drop of blood being shed. Fresh Intelligence Research Corp. freshintelligence.com
Corrine Sandler is the founder and CEO of Fresh Intelligence Research Corp., a global market research agency. A recognized leader with more than 20 years’ experience in business intelligence and market research, she is the author of Wake Up or Die (www.wakeupordie.us), a new book that applies lessons from Sun Tzu’s ancient classic The Art of War to contemporary businesses.
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