September 2014 Issue of In Business Magazine

SEPT. 2014

Healthcare Decisions: A Business Owner's Guide to Open Enrollment

Economic Development ARE WE WINNING THE GAME?

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Performance Review

Sharing

Responsibility for Healthcare Game-Changers in

Loyalty Programs Power Lunch By the Numbers Business Calendar This Issue Global Chamber Arizona Small Business Association

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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

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S E P T E M B E R 2014

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3/20/14 9:00 AM

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SEPTEMBER 2014

Healthcare Decisions: A Business Owner's Guide to Open Enrollment IN BUSINESS MAGAZINE ECONOMIC DEVELOPMENT

22

Economic Development ARE WE WINNING THE GAME?

End the

Performance Review

Sharing

Responsibility for Healthcare Game-Changers in

Loyalty Programs SEPTEMBER 2014 • inbusinessmag.com

Are We Winning the Economic Development Game?

SEPT. 2014

CONTENTS

Power Lunch By the Numbers Business Calendar This Issue

$4.95 INBUSINESSMAG.COM

Global Chamber Arizona Small Business Association

From state level to city level, the leaders in economic development policy and planning share with RaeAnne Marsh the changes, challenges, successes and positioning that are making a difference in our ability to attract and retain business and sustain growth.

DEPARTMENTS

9 Guest Editor

Sandra Watson, president and CEO of the Arizona Commerce Authority, introduces the “Economic Development” issue.

FEATURES

10 Feedback

18 Healthcare and Open Enrollment: The

Employer’s Role in Employee Choices

With Open Enrollment coming up in November, In Business Magazine begins a three-part series to help employers help their employees make the most-informed decisions.

18

28

Loyalty programs using Big Data and mobile apps give more marketing punch than the old punch cards. Don Harris looks at this technology in action.

39 Global Chamber Partner section

47 Arizona Small

Business Association Partner section

55 2014 Healthcare

Decisions Guide

A business owner’s guide to open enrollment

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S E P T E M B E R 2014

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12 Briefs

“Speaking to the Internet,” “Predict Churn and Retention of Customers,” “Bettering Business,” “Valley Companies Collaborate for Ground-Breaking Lexus App,” “ACA Company Profiles Demonstrate Economic Growth,” “New Law and Climate Encourage Data Centers,” “Phoenix Seen Strong for Real Estate Investment” and “Implement a Successful Worksite Wellness Program”

28 Technology: Marketing

SPECIAL SECTIONS

Noted business and community leaders Danielle Casey, Joyce Grossman and Glenn Hamer respond to IBM’s burning business question of the month.

by:

New report correlates chief marketing officers’ compensation to factors inside and outside a company.

20 Trickle Up

View from the top looks at how R. Craig Coppola built success for Lee & Associates Arizona by fostering the individual growth of his team members.

29 Books

New releases look at new strategies for marketing in a technology world.

30 Legal

Attorneys discuss the importance of not taking shortcuts when creating or negotiating a contract.

34 Nonprofit

Although the Sarbanes-Oxley Act took effect more than a decade ago, nonprofit board members may be feeling its financial and legal impacts now more than ever.

36 Assets

2015 Lincoln MKC SUV Crossover Plus: Making productive use of travel down-time

36

37 Power Lunch

Paul Martin’s American Grill Plus: Pizza choices that make pie the main course for lunch

66 Roundtable

Conversation is a new approach to appraising employee performance.

ON THE AGENDA

31 Spotlight

Kickoff Luncheon – Economic Club of Phoenix Open House Business Expo – ASBA

32 Calendar

Business events throughout the Valley

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Because no two clients are ever the same.

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SEPTEMBER 2014 • VOL. 5, NO. 9

PUBLISHER Rick McCartney

EDITOR RaeAnne Marsh

ART DIRECTOR Benjamin Little

CONTRIBUTING WRITERS

Dr. Tim Baker Robert Beauchamp Don Harris Mike Hunter Marc Kellenberger Sue Kern-Fleischer Alexandra Lyon Alison Stanton

CONTRIBUTING PHOTOGRAPHER Camron McCartney Advertising

OPERATIONS Louise Ferrari

BUSINESS DEVELOPMENT

Louise Ferrari Alex J. Goff Craig Jeffries Steve Kulick Maria Mabek Sara May Katie Pacioni Kelly Richards Cami Shore

EVENTS Amy Corben More: Visit your one-stop resource for everything business at www.inbusinessmag.com. For a full monthly calendar of business-related events, please visit our website.

Inform Us: Send press releases and your editorial ideas to editor@inbusinessmag.com.

Post Your Local Jobs at inbusinessmag.com Read by those vested in business here, In Business Magazine and inbusinessmag.com have become the resource for business owners and executives in the Valley and beyond.

Now, business owners can post their open positions in a place where they are guaranteed to be seen by top candidates.

Visit inbusinessmag.com now to post your open positions!

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S E P T E M B E R 2014

PRESIDENT & CEO Rick McCartney

EDITORIAL DIRECTOR RaeAnne Marsh

SENIOR ART DIRECTOR Benjamin Little

FINANCIAL MANAGER Donna C. Mitchell, CPA ACCOUNTING Todd Juhl

CORPORATE OFFICES 4455 E. Camelback Road Building C, Suite 135 Phoenix, AZ 85018 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com Vol. 5, No. 9. 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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SANDRA WATSON, PRESIDENT AND CHIEF EXECUTIVE OFFICER, ARIZONA COMMERCE AUTHORITY

GUEST EDITOR

Energizing Economic Development

SANDRA WATSON BRINGS more than 20 years of economic development leadership experience to Arizona. She and her teams have attracted hundreds of companies to Arizona that have invested billions of dollars in capital and created more than 75,000 quality jobs for the state.

STRENGTHENING THE ECONOMY through high-value job creation is a primary focus of our state’s economic development organizations, chambers of commerce, cities, towns, academic institutions and the business community.

Our collective work has ushered in major coups for Arizona, including large-scale expansions by global giants that included Apple, GoDaddy and General Motors. About a year ago, State Farm broke ground on a nearly 2-million-square-foot regional headquarters in Tempe. Last month, California-based Silicon Valley Bank continued its expansion and committed to lend $100 million in capital to Arizona’s tech and life science companies over the next five years. Adding to this recent wave was the growth of locally based Infusionsoft and IO that bolstered our innovation ecosystem, as did significant expansions by Californiabased tech companies Gigya, Weebly and Prosper Marketplace.

In all, the Arizona Commerce Authority is proud to have assisted in the creation of 17,154 quality jobs during the past fiscal year, and worked collaboratively on the expansions and relocations of companies that plan to make $3.32 billion in capital investments in Arizona’s economy.

Fostering the right business environment to attract high-growth innovators has been part of our success.

We can look to the visionary leadership of Governor Brewer, who, with the support of our legislature, created the game-changing Arizona Competitiveness Package. This support is a big reason Arizona last year ranked No. 1 in the country for entrepreneurial activity according to Fast Company, and why Chief Executive Magazine in May ranked Arizona as a Top-10 place to do business.

In other words, business leaders recognize Arizona as a platform for industry growth. They view our state as a hub of innovation, with a rich talent pool and low cost of doing business that will help to drive their corporate success.

In this issue’s cover story, In Business Magazine editor RaeAnne Marsh explores the direction and strength of our region’s economic development efforts and how we fare in the ongoing competition with other regions to attract new business. In addition to input from the Arizona Commerce Authority, she draws on the experience and perspective from leaders of other local regional organizations as well as directors of individual cities’ economic development departments to provide an in-depth view of what is being done to create jobs and bolster our economy.

Heading into the November commencement of open enrollment for healthcare insurance on the government exchange, this September issue begins a three-part series to help educate business owners on healthcare coverage options. In this issue, providers and insurers share information to help employers educate their employees to make an informed decision. In addition, In Business Magazine has created a special “Open Enrollment Guide” to those providing plans and/or services.

In Business Magazine is a valuable resource that covers a wide range of subjects in each monthly publication. I’m pleased to have helped lead-off this September edition’s look at economic development.

Connect with us: Story Ideas/PR: editor@inbusinessmag.com

Sincerely,

Business Events/Connections: businessevents@inbusinessmag.com

Sandra Watson President and Chief Executive Officer Arizona Commerce Authority

Marketing/Exposure: advertise@inbusinessmag.com Visit us online at www.inbusinessmag.com

A Drive to Economic Success ARIZONA IS SEEN as a leading state in the economic development game. Tax incentives, legislation, city government direction and a strong community of entrepreneurial desire to build business here all are coming together to empower Arizona as a leader. This concerted effort is making a difference, and a focus on key sectors is, and has been, developing highpaying jobs and successes in relocating “brand” business to Arizona.

We thank Sandra Watson for her leadership through the years in building business here and helping to provide access to existing

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and new Arizona businesses. Both she and the Arizona Commerce Authority staff are working hard in areas such as manufacturing to build great opportunity for Arizona and have demonstrated effective “new thinking” to ensure Arizona is a consistent contender in the economic development game. Her involvement with In Business Magazine is helping to get the word out and to further their great efforts. —Rick McCartney, Publisher

S E P T E M B E R 2014

9

FEEDBACK Executives Answer VALLEY LEADERS SOUND OFF

Discussion of economic development for our region often focuses on attracting new business from out of state. How does that impact business in the Greater Phoenix area, and what is being worked on to develop economic opportunity for businesses here?

Danielle Casey Economic Development Director City of Scottsdale Sector: Government THE REALITY IS that there are thousands of economic development organizations nationally chasing only a handful of large corporate relocations every year. Many communities in Arizona have become acutely aware of this, and are developing complex business retention incentive and support programs, and economic gardening strategies.

They are investing in incubators and partnering with higher educational institutions to offer creative solutions to business innovation — examples include SkySong Innovation Center, TechShop in Chandler or BioAccel in Peoria. In partnership with regional organizations like the Greater Phoenix Economic Council, targeted workforce training programs are under development as a result of direct business input, at places like the new Maricopa Community Colleges Corporate College. The Arizona Commerce Authority has also launched the highly successful Arizona Innovation Challenge program, with the highest awards offered to promising new firms in the country for programs of its kind.

New business attraction will continue to be an important part of a balanced economic development strategy — but a focus on growing and retaining existing companies in a community provides much better odds of paying off and can result in significantly higher job returns over time.

City of Scottsdale Economic Development Department choosescottsdale.com

Danielle Casey is responsible for the oversight and execution of the City of Scottsdale’s initiatives related to new business attraction, retention and expansion, small business and entrepreneurial support, and employment center revitalization. She received her Masters of Administration from Northern Arizona University, and is a Certified Economic Developer and a certified Economic Development Finance Professional.

Joyce Grossman Executive Director Arizona Association for Economic Development Sector: Professional Association IT IS A mistake to assume that Arizona’s economic developers’ main focus is only on attracting new business from out of state. In reality, economic development organizations are working hard on retaining and growing the businesses they have in their towns and cities. Existing companies in a community can be responsible for up to 80 percent of all net new local jobs.

Most economic development offices in the Greater Phoenix area have someone assigned to business retention and expansion. There

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S E P T E M B E R 2014

Glenn Hamer President and CEO Arizona Chamber of Commerce and Industry Sector: Business Advocacy Group THE TEAM AT the Arizona Commerce Authority, led by the dynamic Sandra Watson, has done an excellent job selling Arizona’s business-friendly environment to employers in high-tax, high-regulation states that are looking for a more attractive place to set up shop. But the ACA and the Legislature and Gov. Brewer have also adopted policies that make Arizona a great place for businesses already here to grow and invest.

We are in the midst of implementing two significant economic competitiveness packages, which include a phased-in reduction of the corporate income tax, business property tax relief and tax reforms that help businesses in a start-up phase or that are selling products and services beyond our borders. Lawmakers and the governor have eliminated the sales tax on manufacturers’ electricity and natural gas consumption, putting us on stronger footing to grow these high-paying jobs. And throughout the Brewer tenure, we’ve been under a regulatory moratorium, and have implemented improvements to our legal environment.

As we emerge from the Great Recession, Arizona has done more than any other state to increase its competitive standing for job attraction. That’s good news for all job creators, whether they’re eyeing us from out-of-state or are already here.

Arizona Chamber of Commerce and Industry azchamber.com

Glenn Hamer has been president and CEO of the Arizona Chamber of Commerce and Industry since 2006. He has twice been named Power Broker of the Year by The Arizona Capitol Times and a Most Admired Leader by The Phoenix Business Journal.

are programs in place in Arizona for everyone, not just new business that is growing. It is easier and cheaper to grow what you have than to attract new business.

Business attraction and business retention and expansion go handin-hand. Business retention staff can determine what suppliers are not in our marketplace that our current businesses need and make that a business attraction focus. They also can work with local businesses to see who they supply that maybe we should attract to Arizona.

Arizona Association for Economic Development aaed.com

Joyce Grossman, the executive director for the Arizona Association for Economic Development, previously worked for the City of Phoenix Community & Economic Development, where she managed the Business Retention & Expansion Program and the International Business Attraction Program. She has a B.A. from the University of California at Davis, an M.P.A. from California State University at Sacramento and is a certified Arizona Economic Development Professional.

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BRIEFS

Valley Companies Collaborate for BYTES Ground-Breaking Lexus App

TRANSLATE YOUR WORLD International, developers of linguistic and mobile marketing technologies, released the latest update to its groundbreaking TYWI-Live (“tiewee”), the voice translation software that translates what people say in real time into 78 languages. The update adds cutting-edge WebRTC capabilities. WebRTC is designed to enable Web browsers to transfer spoken words over the Internet in addition to text. translateyourworld.com

Predict Churn and Retention of Customers PREDICT CUSTOMER RISK using Bluenose Analytics’ advanced algorithms and proprietary health score engine. The health score gives an accurate view of customers’ health, using any factor and weighting that the user chooses. Get alerts on changes to customer health and mobilize immediately. bluenose.com

Bettering Business COMING FROM THE Better Business Bureau, the organization that pioneered the concept more than 100 years ago, and boasting the most trusted search platform to find reputable business services locally, the Accredited Business Directory is now online. Designed to be easily navigated, the online directory also is backed by research, including phone calls — to ensure quality recommendations — and more. The BBB matters. searchbbb.org

LEVERAGING THE COMPANIES’ individual strengths, a collaboration among three Valley companies resulted in a training app for Lexus that the car manufacturer liked so much it released publicly on iTunes. And they delivered the app in six weeks — less than one-fifth the 40 hours Lexus had been told by others the project would take.

Automatik, a Tempe-based company that provides educational material to train automobile sales forces on new vehicles, laid out the plan for how the app would function.

Phoenix-based Blade created the content, and Gilbert-based Dapper Gentlemen developed the program to run it.

Blade’s content creation is built on “augmented reality,” which co-owner Mark Trengrove describes as a next generation of the QR barcode. Where, previously, flashing on a printed QR square would trigger an iPad to show additional information about the indicated item, augmented reality enables the iPad to “recognize the real-life thing” and bring up the model information or options when it is shown the actual item — from headlight to speedometer to trunk. “It recognizes the item when you point an iPad at it because we’ve taken so many photographs from so many angles,” Trengrove explains.

Dapper Gentlemen added a gyro effect, giving the viewer a changing line of sight that creates the sense the viewer is moving with the car. With the success of the app, Lexus had Dapper Gentlemen create a website that works the same way.

Automatik’s intent was to provide Lexus with a training aid on its 2014 Lexus IS 350 for its sales force that would be fun and engaging, keeping them intrigued so they would learn more about the car. The final product is an app Lexus found piques the interest of people who are not willing to sit down and read a manual to find out what’s new on the car.

“Augmented reality will definitely be a thing of the future,” says Louise Parker, Trengrove’s partner, relating their company has already wowed Disney with the program’s possibilities for Disney’s cruises and Automatik has successfully pitched it as a training tool in its market. And the app the three-way collaboration produced in record time has been recognized for its pioneering technology and won for Blade a Gold Addy Award from the 2014 Phoenix ADDY Awards.

—RaeAnne Marsh Automatik automatik.us Blade bladeinc.com Dapper Gentlemen dappergentlemen.com

VISUALIZE THIS

Seeing Is Believing ACA Company Profiles Demonstrate Economic Growth THE ARIZONA COMMERCE Authority is promoting

economic development through professional video company profiles available on its website — companies like Pivot Manufacturing, Frito Lay, Instant Bioscan, Nichols Precision, Kahtoola and many more.

Through interviews with the companies’ key executives, these high-quality pieces speak to the power of what Arizona has to offer companies that are looking to relocate here or do business here. They are also a great

Visit our “Briefs” link on the “Departments” tab at www.inbusinessmag.com.

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resource for the local business community to understand who is invested here and some of their successes. azcommerce.com/resources/video-gallery

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Photo courtesy of Automatik

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BRIEFS

QUICK AND TO THE POINT

Phoenix Strong for New Law Encourages Data Centers Real Estate Investment

BUCHANAN STREET PARTNERS’ recent acquisition of 180,000-square-foot Stapley Corporate Center in Mesa for $32.5 million brought the real estate investment firm’s total assets in Phoenix to 1.4 million square feet. For the Newport Beach-based investment firm, “Phoenix is an attractive place to do business,” shares company president Tim Ballard. “We expect commercial real estate and multi-family will outperform other markets.” Factors include the fact that Phoenix is a recovering market and therefore still has significant vacancy, but is seen as having positive job growth, “which will fill up commercial real estate and, ultimately, have a good impact on rents.” Buchanan Street also expects Arizona to benefit from California transplants. Explains Ballard, “California employers are facing increasing regulations and taxes, and Arizona is an appetizing alternative for relocations, especially manufacturing.”

Naming Denver and Houston as other areas where Buchanan Street is investing, Ballard says Phoenix is “one of four or five markets we expect to outperform.” — RaeAnne Marsh Buchanan Street Partners buchananstreet.com

THE ARIZONA LEGISLATURE established a tax incentive program in September 2013, encouraging mid-size and large companies to move their computer data centers to Arizona. Qualified data center owners and operators will be exempt from all transaction privilege taxes, use taxes and local levels of purchasing data center equipment for 10 years. Data centers that fall under the “Sustainable Redevelopment Project” category are looking at 20 years of exemption. “We are in the rule-making process through the Arizona Commerce Authority currently,” says Russell Smoldon, CEO of B3 Strategies, government relations and public affairs affiliate of law firm Jennings Strouss, “and we hope to have the rules in place sometime this September.”

“The thing about Arizona that is so attractive to the technology sector is the fact that we have an unbelievable climate for data centers,” says Smoldon. “We don’t have tornados or earthquakes or anything of natural disaster type situations to affect the data center, and remember, the goal of a data center is to keep running 24/7.” Many companies, specifically those on the East Coast that suffered major losses due to hurricane Sandy, are looking for a more reliable source of power and a stable atmosphere that provides inexpensive power and renewable resources.

“Arizona has done the right thing for the state by trying to attract new headquarter relocations as well as new start-up activity by incenting businesses to locate their data centers there, which becomes important for statewide economic development,” says Matt Miszewski, a senior vice president at Digital Realty. “We [computer data centers] act as a magnet for additional activity, not just on the small business side in terms of support services but there is also an awful lot of activity that springs up alongside when we build a large data center complex.” —Alexandra Lyon B3 Strategies

jsslaw.com

Digital Realty

digitalreality.com

Editor’s Note: Per the procedure with such laws, the ACA has one year to promulgate rules for certification since the law was passed in legislative session and went into effect, after which there will be a 30-day period for the public to comment on the draft before the rules are finally filed.

Please check this article on our website for the update on the rules.

Healthcare

Implement a Successful Worksite Wellness Program

SUCCESSFUL WORKSITE WELLNESS programs help improve employees’ health and productivity and reduce medical costs for employees and the company. Here are 10 tips for employers to implement an effective wellness program:

Understand the Company’s Work Force. Review past insurance claims data, employee surveys and health assessments to select wellness programs that address the employees’ most common health challenges.

Create a Plan. Develop a detailed plan that outlines short- and long-term objectives, budgets and expected outcomes.

Include rather than Exclude. Make wellness activities available for all employees and spouses/domestic partners.

Offer Biometric Screenings. Biometric screenings give employees a better snapshot of their current health. Screenings held onsite at the workplace and at health fairs encourage more employees to participate.

Select Wellness Champions. Set up a wellness committee with “wellness champions” who will help drive the company’s wellness program.

Choose leaders within the organization who are respected by their peers.

Make champion status an honor, and others will want to serve.

Provide Employees with Digital Tools. Digital tools (e.g., online, mobile, tablet) help employees keep track of their healthcare costs and become more-informed healthcare consumers.

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S E P T E M B E R 2014

Communicate. Use email, promotional flyers and in-person meetings to communicate the company’s wellness programs. Messages from executives will demonstrate leadership support and likely improve participation in the wellness program.

Offer Incentives. Participation in wellness programs significantly increases when employers offer employees incentives. Incentives can include gift cards, lower health insurance premiums, cash bonuses and discounts on various health products and services.

Track Results. Evaluate the company’s wellness program each year. Work with the health plan to measure the impact on employee engagement and medical costs.

Solicit Feedback. Be flexible and listen to the employees on how to improve the program for the following year.

Following these tips can help employers and employees maximize the benefit they get out of employer-sponsored wellness programs — and improve the health of the company and its work force.

—Robert Beauchamp, Medical Director, UnitedHealthcare of Arizona

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METRICS & MEASUREMENTS

C-Level Partnerships Affect CMO Compensation New report also indicates market environment is seen as improving

by Sue Kern-Fleischer A NEW “CMO Compensation Report” from the Chief Marketing Officer Council reveals that chief marketing officers (CMOs) who report directly to CEOs are likely to earn more than their peers. And CMOs who forge close partnerships with chief financial officers and chief information officers are among the highest paid. This may support intuitive logic, but the CMO Council’s executive officer, Donovan Neale-May, says another of the results came as a surprise to him. Relating to bonuses, which he points out are the most common type of compensation beyond base pay, he notes the research data found that “a large percentage of CMOs — 85 percent — qualified for a bonus last year, and many more respondents indicated they were expecting a bonus this year.” Explaining the significance of this, Neale-May says, “This reflects a more confident view of their future performance and an improving market environment despite the fact that most economies are not firing on all cylinders.”

Neale-May says the results of the report, which the San Jose-based organization released in July, are beneficial to C-level executives, board members, HR/benefits and compensation consultants, internal corporate personnel and recruiting executives who need insight regarding salaries, incentives and benefits. The report, which was authored by Dr. Kimberly A. Whitler of the Darden School of Business at the University of Virginia, also provides insight regarding CMO expectations and perceptions of compensation fairness and value to the organization. This study to

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benchmark and understand the key factors influencing chief marketer compensation was undertaken as part of the recently released eighth “State of Marketing” report by the CMO Council — a comprehensive audit that serves as a valuable resource and reference for the CMO Council’s 7,000 members in 110 countries, who collectively control more than $400 billion in aggregated annual marketing expenditures.

The study results also underscore the fact that the title of CMO is not universally embraced globally. “If you have a CMO title, it does not mean you earn more than an executive vice president or a director,” NealeMay says. “The title ‘CMO’ is only seen about 40 percent around the world. The director title is Euro-centric and is also common in the Middle East, Africa, APAC, India and Latin America, so you have to be careful that you don’t mislabel people.”

The “State of the Marketing” audit, which included 525 senior-level participants, took place during the first and second quarters of 2014. “This is the first annual compensation report we have produced, and now that we have a benchmark study, we’ll ask more detailed questions next year,” Neale-May says.

He believes the results of the compensation study show that the future looks bright for CMOs. “Chief marketing executives are not necessarily in the top five positions of a company. There’s now a proliferation of C-level titles, such as chief innovation officer, chief relationship officer and others, like revenue, digital and experience, that should fall under

the CMO jurisdiction. In my view, the results of this study show that marketers are starting to elevate their positions,” he says.

Chief Marketing Officer Council cmocouncil.org

Variables in Chief Marketer Compensation CMOs earning more than $500,000 who report to CEO

69.2%

CMOs at large companies earning more than $200,000

54.6%

CMOs at small companies earning more than $200,000

31.0%

CMOs working for a large company who earn a bonus

96.0%

CMOs working for a small company who earn a bonus

71.0%

B2C CMOs who earn more than $350,000

15.7%

B2B CMOs who earn more than $350,000

7.1%

Hybrid Company (B2C and B2B) CMOs who earn more than $350,000

10.0%

CMOs earning more than $350,000 who rate their digital marketing performance as excellent

36.9%

Source: CMO Council July 2014 “CMO Compensation Report”

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Business Owners, Executives & Entrepreneurs: Please join us for this exceptional event. Meet our Guest Editors for an intense discussion on the local economy.

Presenting the 2014 Annual Guest Editor Economic Symposium.

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In Business Magazine Guest Editors invited to attend include:

MODERATING EVENT

Linda Hunt

Mark B. Bonsall

Bob Parsons

Janice K. Brewer

Elliott D. Pollack

April 2014 President & CEO Dignity Health Arizona

March 2014 CEO Salt River Project

February 2014 Founder & Executive Chairman GoDaddy

January 2014 Governor The State of Arizona

May 2013 CEO Elliott D. Pollack and Company

Ted Simons

Host, “Arizona Horizon,” KAET Eight PRESENTED BY:

Barry Broome

Deborah Bateman

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December 2012 Vice Chairman National Bank of Arizona

October 2012 Chairman & CEO Western Alliance Bancorporation

July 2012 Mayor City of Phoenix

April 2012 President & CEO Blue Cross Blue Shield of Arizona

Craig R. Barrett

Candace D. Wiest

Jerry Colangelo

Derrick Hall

Don Smith

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March 2011 President & CEO Arizona Diamondbacks

November 2010 President & CEO CopperPoint Mutual

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H E A LT H C A R E

YOUR BENEFIT TO BUSINESS

Healthcare and Open Enrollment: The Employer’s Role in Employee Choices Education is key in making the right decision

by RaeAnne Marsh

Open enrollment on the federal health exchange begins November 15.

This is the first of a three-part series for employers to help prepare their employees to make decisions on healthcare coverage.

FOR MANY, HEALTHCARE insurance has been a personal or family need they have taken care of through their employer. Now, whether or not they continue to have a policy purchased through their employer, employees are asking their employer for the information on what the employer will offer and whether those offerings will meet the individual’s “shared responsibility” requirements. The individual shared responsibility mandate has become a greater concern this year, as the penalty to the individual for not having healthcare jumps in November from $95 or 1 percent of income to $325 or 2 percent of income.

It will be helpful to first clarify what and when open enrollment is. Open enrollment is the period of time during which a policy can be purchased, and once the

Fast Facts

open enrollment period has closed, the enrollee is locked into whatever choice he has made for the year. The specific period, however, depends on where the policy is purchased.

If an employee decides to opt for a policy through the government exchange, now called the “individual marketplace,” that open enrollment period is Nov. 15, 2014, to Feb. 15, 2015, for coverage to start Jan. 1, 2015. This may or may not coincide with the open enrollment period for the plan offered by the employer, which is based on the company’s plan year. Whatever the company’s plan year is, its open enrollment period is the 30 days that precede it.

A third open enrollment period is that for SHOP, the Small Business Health Options Program. This, explains Stephanie Waldrop, principal of Employee Benefits

Individual Marketplace Open Enrollment Nov. 15, 2014 – Feb. 15, 2015

SHOP Open Enrollment perpetual for 2014

Below are the penalties to individual for non-compliance with the individual mandate of the PPACA Year Assessed to be the greater of:

Information for Businesses healthcare.gov/ small-businesses

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2014

2015

2016

$95/adult, $47.50/child, maximum of $285/family OR 1% of family income

$325/adult, $162.50/child, maximum of $975/family OR 2% of family income

$695/adult, $347.50/child, maximum of $2,085/family OR 2.5% of family income

ObamaCare Individual Mandate obamacarefacts.com/ obamacare-individual-mandate.php

The SHOP Marketplace healthcare.gov/ what-is-the-shop-marketplace

INBUSINE SSMAG.COM

International, is an online public health exchange where small Jeff Stelnik, senior vice president of strategy, sales and marketing employers can purchase coverage for their employees. Currently for Blue Cross Blue Shield of Arizona, notes, “The federal healthcare available for businesses with 50 or fewer full-time equivalents, it is exchange site focuses just on the basics of processing the transaction, scheduled to expand in 2016 to businesses with 100. This year, it has a and lends itself to a price-only decision.” But he believes healthcare goes perpetual open enrollment. “If you get your application in by the 15th of beyond price to include the network — a topic In Business Magazine will any month, you can get coverage effective as of the first of the following cover in the October installment of this series, “Networks and Coverage month,” she says. from the Workplace” — and customer service. Plus, individuals may be There is a “qualifying event” provision by which an individual can able to make the payment for premiums on a pre-tax basis through their enroll in a coverage plan midyear. Qualifying events include marriage, employer, which would impact their ultimate yearly cost. having a baby or adopting a child. And employers may also allow the There is an important distinction Waldrop points out between open enrollment of the exchange for the individual marketplace to be the federal and state exchanges and private exchanges: Qualifying considered a qualifying event for their program by specifying it on their employees may receive tax credits, subsidies or other assistance only Section 125 Plan document, which, through the government exchanges.

Waldrop explains, “an employer must Says Waldrop, “The law is have if he offers an employee benefit changing so much, employers need program and pre-taxes the employee’s to be constantly analyzing with their portion of the premium.” But she broker or advisor the best fit for their notes, “Most employers should be employee program.” They can also be having the conversation [about this working with their broker partners option] with their broker consultant to educate their employees, she says, well in advance of the exchange open noting, “The legislation is so complex enrollment or knowing their employees and it has changed so many times, are interested.” and most employees don’t have the Outside of the “qualifying event” same level of resource of broker or allowance, individuals cannot change consultant advising them of all the their policy once open enrollment has right steps to take.” closed. So it is important to empower Even outside of open enrollment, “The law is changing so employees to make the best decision for it can be beneficial for employers to themselves. This starts with knowing continue to educate their employees much, employers need to be what choices the employer has made as things change. Observes constantly analyzing with their regarding healthcare coverage. “Part of Waldrop, “It’s good just to create the it is the employer understanding the relationship that they’re looking out broker or advisor the best fit for healthcare needs, at a high level, of the for their employees, making sure employees,” observes Bob Campbell, they understand.” In fact, helping their employee program.” senior vice president of business their employees work through the —Stephanie Waldrop development and chief strategy office continually changing choice of of Phoenix Children’s Hospital. Having policies within the shifting maze pediatric care, for example, is more important to a young work force of of regulation to make the best decision during the appropriate open child-bearing age or who have children than to an older work force. enrollment period has become a critical function for employers.

Some aspects of coverage are mandated under the Affordable Care Blue Cross Blue Shield of Arizona azblue.com Act. And, while requirements for the employer to be compliant with the Brown & Brown Insurance of Arizona bbphoenix.com ACA are complex, it is much less complicated for the employee.

Employee Benefits International employeebenefitsint.com All individuals must have minimal essential coverage (MEC). Chris P. Phoenix Children’s Hospital phoenixchildrens.org Scherzer, benefits practice leader at Brown & Brown Insurance, explains that employees in Arizona have five options to get this coverage: They may enroll in a health plan at work if their employer offers one, with the Education Series the cost possibly partially underwritten by the employer; they may purchase a policy on the public marketplace, and possibly be eligible q Healthcare and Open Enrollment: The Employer’s Role in for government subsidy if their family income is below a certain Employee Choices threshold; they may sign up for Medicaid or AHCCCS; they may q Healthcare: Navigating Networks and Coverage from the Workplace sign up for Medicare if they are disabled or at least 65 years old; or they may purchase a policy through a broker such as Brown & Brown q Healthcare: An Employer’s Tool to Strengthen Productivity Insurance, which, Scherzer says, could be the same policy as through To reference published segments, please access the archived “Healthcare” articles on the In Business Magazine website, www.inbusinessmag.com. the marketplace but would not allow for any medical underwriting.

Healthcare

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TRICKLE UP

A VIEW FROM THE TOP

R. Craig Coppola: Focus on Developing Talent Lee & Associates founding principal R. Craig Coppola refers to himself as “a collector of unique abilities”

“I call myself a collector of unique abilities. Everyone has a unique ability, and on our team, each person

THROUGH HIS 38 years in commercial real estate, Lee & Associates Arizona founding principal R. Craig Coppola has discovered a very important key to success: maintaining a constant and consistent focus on building a great team. “I call myself a collector of unique abilities,” Coppola says. “Everyone has a unique ability, and on our team, each person has one that is different from mine.”

In addition, rather than sitting back and being content with the team of employees he has, Coppola says he is always looking for ways he can hire more people and grow the team. “I meet people and find out what unique abilities they have, and then, with that information, put them into roles.”

In order to help find the best possible employees with the skills that Lee & Associates needs, Coppola says he utilizes the Kolbe Indexes as part of the interview process. These instinct assessments measure how people naturally do things, which Coppola says provides him with a really accurate way to determine what people are naturally good at.

Coppola used the tests — which are available at Kolbe.com — when he was looking for his two assistants. “Both of them scored very high on following through with things, which is exactly what I want my assistants to do,” he says.

In some cases, Coppola says, determining what someone’s strengths and abilities are means assigning them to roles they would not otherwise have considered. “In the case of my administrative assistants, neither one of them had ever experienced this type of role before,” he says.

Knowing that he has hired the best people for each position at work is quite satisfying, Coppola says. “I like watching people do fantastic things. It’s the same reason we like to watch the Olympics; we like to see athletes like pole vaulters and think, ‘Wow, I could never pole vault 18 feet.’”

Another factor that Coppola says has contributed to the overall success of his company is the way his office is laid out. The office currently houses seven people, but, instead of having individual offices or cubicles, everyone shares one open space. “Our entire team sits in one big cube, including me,” he says.

Working in an open environment has several advantages, Coppola says, including

A Passion for Real Estate

■■ R. Craig Coppola, one of eight principals who founded Lee & Associates Arizona in 1991, is the highest-producing office broker in parent company Lee & Associates’ 35-year history.

■■ The Coppola-Cheney Group, led by principals Coppola and Andrew Cheney, is the No. 1 office leasing and sales team in Lee & Associates’ history.

■■ Coppola has earned the top three industry designations: Certified Commercial Investment ■■ 20

Member (CCIM), Society of Industrial and Office Realtors (SIOR) and Counselors of Real Estate (CRE). He is one of fewer than 40 people worldwide who hold all three designations, and one of only 17 professionals in Arizona who hold both CCIM and SIOR designations.

Coppola is also the author of How To Win In Commercial Real Estate Investing and The Art of Commercial Real Estate Leasing; his latest, The Fantastic Life: How to Get it, Live it and Pass it On, is being released this fall

S E P T E M B E R 2014

the ability for everyone to have an open dialogue and great communication, as well as the chance for the team to learn from everyone else. “I literally sit within two feet of my interns and assistants, and everyone can hear information throughout the day and also hear me when I’m on the phone.”

Because the commercial real estate business is very cyclical, Coppola does what he can to keep overhead costs as low as possible to help Lee & Associates weather the inherent downs. “We try to keep our costs reasonable so when [down] cycles hit we don’t have to shut our doors. We are very conservative with our expenses.”

For example, although the company is in a fantastic, albeit spendy location at 32nd St. and Camelback and is filled with state-of-theart technology, Coppola says they cut corners in other, more significant ways. “We don’t have 20 different office spaces to maintain, so we are very frugal that way. And we have a very flat organization, with no management layers within the company, like principals and associates. We have a very lean staff,” he says.

In addition to putting people in the right position and helping them succeed, Coppola believes that to help ensure every member of his team stays with the company for as long as possible it is important to not skimp on pay.

“If you spend your days doing what you truly love to do, and you get paid a great salary, why would you ever leave?” The average tenure of brokers at Lee & Associates Arizona is almost 20 years.

Lee & Associates Arizona lee-associates.com/arizona

INBUSINE SSMAG.COM

Photo courtesy of Lee & Associates Arizona

has one that is different from mine.”

by Alison Stanton

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S E P T E M B E R 2014

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Economic Development ARE WE WINNING THE GAME?

Changes, challenges, successes and positioning at the state, regional and municipal level

by RaeAnne Marsh

“THE STATE THAT made the most aggressive, best moves competitively is Arizona,” states Barry Broome, CEO of the Greater Phoenix Economic Council, singling out the tax and economic policies of the past five years. In his view, they comprise the single most positive impactful decisions the state has made in 30 years “because they were governed by what will grow the economy around advanced industries.”

But high-tech businesses need a highly qualified work force; by 2018, it is expected that two-thirds of jobs will require education beyond high school. That is the other factor in achieving strong economic development. Says Hank Marshall, economic development executive officer with the City of Phoenix, “Our biggest challenge as a city and a region is the ongoing need of a highly skilled work force.” Noting the Greater Phoenix area ranks 67th in educational attainment among the top 100 metro areas in the country, he says, “The quality of the locates we get is directly correlated to our level of achievement in education. It’s why we get a lot of distribution and call centers but not corporate headquarters.”

Eileen Klein, who left Governor Brewer’s office as chief of staff last year to become president of the Arizona Board of Regents, relates that the impetus for changing the state’s economic policies was “we realized more needed to be done in terms of state competitiveness, to make sure we had a favorable regulatory and tax climate so people saw Arizona as welcoming to business, an easy place to start a business and an easy place to grow business.” This required significant changes in both corporate and — because businesses are formed by individuals — individual income tax. Also important, she says, was completely renovating the economic development model at the state level, replacing the Department of Commerce with the Arizona Commerce Authority, a public-private partnership created to aggressively recruit quality jobs and capital investment.

However, Klein emphasizes, “Out of all this conversation, it became apparent that all of the successes would be helpful and would advance Arizona, but nothing could get us where we needed to be if we did not reform our educational system.”

Efforts in this area have begun. In 2010, the Board of Regents established for the first time a comprehensive plan from pre-kindergarten through college to establish goals and outcomes that centers on increasing the number of college graduates, both associate and bachelor degrees.

And Klein along with leadership from the universities and community colleges sit on the ACA Board of Directors. “We’ve become a big part of the deal-making that goes on with the ACA in terms of attraction or retention,” Klein says, explaining their concern is how to partner and transfer and commercialize the ideas and breakthroughs generated at the colleges as well as meeting Arizona’s labor and workforce needs.

Changes have been dramatic, but the payoff so far is less so. Employment is growing at about 2 percent, the same as last year, which economist Jim Rounds, vice president of Elliott D. Pollack & Company, characterizes as mediocre and puts us at about 15th nationally. And Mike LeVault, chairman of the Maricopa Association of Governments and Mayor of Youngtown, points out our job creation in the past four years is mostly lower-paying, unskilled positions. “Not the kind of jobs we want for a brighter future.”

He cites the recent report from the joint legislative budget committee that state revenues last year grew only 2.4 percent. “We need to change direction or face as much as a $1.4-million deficit by 2016.”

Population growth is also critical, according to Rounds. “Economic reform by the ACA inches us forward, but we can’t change the economic base overnight. We are still dependent on population growth in a lot of areas.” And the population, he says, is growing at only about half of what we would normally experience at this time in the business cycle.

What We Have Going For Us “Seven years ago, we did not have the economic development tools. Today, the state and region have done a nice job of stepping up with those tools,” says William Jabjiniak, economic development director for the City of Mesa. “We’re now much more on a competitive scale.”

The most significant of those instruments make up the Arizona Competitiveness Package, which was adopted in 2011. Calling it a “turning-point economic development legislation,” ACA President and CEO Sandra Watson emphasizes its importance.

“It provided a suite of tools for Arizona to compete in the global marketplace. It

“Out of all this conversation, it became apparent that all of the successes would be helpful and would advance Arizona, but nothing could get us where we needed to be if we did not reform our educational system.”

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S E P T E M B E R 2014

overhauled our tax system, streamlined our regulatory structure and honed our focus on business recruitment and retention to put Arizonans back to work.” Its many elements include changes in corporate and property tax rates, tax credits, continuation of the state’s highly regarded job training program and a “deal closing” fund.

Rounds notes the importance of economic development organizations ACA and GPEC using these tools to focus on the highervalue-added industries, the higher-wage industries that invest more. They create a ripple effect. “Retail and other businesses will come because of these other higher-valueadded businesses that come here or expand here, or smaller businesses that expand and decide to stay here.”

He also notes that we need to emphasize getting a return on our investment, observing that it’s possible to calculate tax collections and so make sure we’re not giving away more than we’d be getting in return. Pointing out that a company has to want to be in a particular place, at least to a certain degree, or that location would not even be considered, Rounds says, “If we go after those companies where it actually would make economic sense to locate here, we don’t need to give away as much to the company.” He cautions being careful in what we give away, pointing out we gave incentives for First Solar, whose facility is now being used by Apple, and that the amount of economic development funds we have are no match for Texas. But, he says, “We can compete in terms of fundamentals, such as roads and a trained work force.”

“Greater Phoenix has very good infrastructure — outstanding airports, light rail, a terrific freeway system — but we need to keep up on that,” Broome says, sharing, “I worry that, over time, that will be something that’s compromised.” He sees the next challenge as improving the infrastructure inside cities, such as around the light rail in Phoenix, and paying attention to neighborhoods. Observing that homeowner associations are a good model, although extreme, he says, “If you continue to focus on home ownership and housing code enforcement, those neighborhoods will stay strong and cities will continue to attract young, middle-class families, and you’ll have a much more interesting path forward as a community.”

A lot of economic development hinges on what happens at the community level, and Jabjiniak identifies two areas in which INBUSINE SSMAG.COM

“I’ve been impressed most with the willingness to come together and act as a region,” says LeVault ...

“The more we’re willing to work together, the more likely it is we’ll realize our true potential.”

communities make a difference: building proper infrastructure, which includes roads, water and sewer, dark fiber, electricity and, yes, even streetscapes; and putting entitlements in place in a very efficient manner. Also, he says, “We can step in with workforce assistance, and look at specific needs a company has.”

Regional Commitment Is Power Another asset is our greater community.

“I’ve been impressed most with the willingness to come together and act as a region,” says LeVault, acknowledging past tension between the East and West Valley regarding resources.

“The Greater Phoenix Metro Area has such huge unrealized potential,” he says. “The more we’re willing to work together, the more likely it is we’ll realize our true potential.” For the small community of Youngtown, for instance, “everything that happens in the Valley improves Youngtown residents because we’re highly mobile.”

As Marshall puts it, speaking of the City of Phoenix, “We have a world view, a city focus, but we’re regionally committed.” He relates that, at a recent meeting of MAG, several mayors discussed their cities’ implementation of a self-certification process patterned after one the City of Phoenix had pioneered, and very pointedly thanked Mayor Stanton for Phoenix’s openness in showing them the software, methodology and how to get it done.

“They told him, ‘Thank you for allowing all of us to achieve that level of service delivery, capability and sophistication.’” By sharing of best practices with neighboring communities, he says, “We’re all better off.”

MAG itself has changed in fundamental ways, LeVault says. Previously, the association had allowed transportation construction to INBUSINE SSMAG.COM

sprawl in many different directions. Now, LeVault says, “We’re more focused on where we want economic development to occur and what kind, and we plan the transportation infrastructure to serve those areas.” There is already evidence of profound commercial development along Loop 303 in the West Valley, with car dealerships and retail centers beginning to locate there, and there are plans for a Grand Avenue corridor as a tie from Wickenburg into Phoenix.

LeVault also cites MAG’s success in coming up with a plan the Environmental Protection Agency accepted for dust control, a problem seemingly at odds with development because “every time we break the desert crust, we create dust.” It was a collaborative effort among cities, towns, counties and businesses, and LeVault says, “It we hadn’t resolved the issue with the EPA, there were hundreds of millions, if not billions, of funds in jeopardy.” MAG has also been involved with the creation with Mexico, this year, of the Arizona-Sonora Binational Megaregion, whose purpose is to increase trade in the region. Noting government’s important function as a facilitator, LeVault says, “Economic development will come from a collaboration of all sectors of the economy — government, business, the education system, and organizations like GPEC.”

Tales of Three Cities GPEC is well-known as a force in new business attraction to the Valley of the Sun. It also provides data and analysis for individual communities and helps them build their economic development plan.

But, notes Broome, “It’s the city economic development people and their chamber partners who sit down with companies to solve their problems.”

City of Mesa “It’s sexy to go and attract that big, new company, but having a dialog with existing companies is important,” Jabjiniak says. In fact, he adds, “The bigger growth is in working with the existing business community — 80 percent.”

But at the same time, he says that as the state and region move forward in aerospace and defense, healthcare, advanced technology and other sectors identified as strong, “We want to be front and center and in partnership with them.”

In that spirit is Mesa’s HEAT (a fourletter acronym for Healthcare, Education, Aerospace, Tourism and Technology) Initiative. The education component has gotten attention across the country, Jabjiniak relates. “A couple of years ago, we went after legacy-based institutions — liberal arts schools from the Midwest and Back East that have been around for a long time — to bring them here to complement, not compete with, existing universities.” Twenty-six institutions expressed interest, and Mesa ultimately recruited four: Benedictine University, whose undergraduate academic programs include communication arts, accounting, and management and organizational behavior; Wilkes University, with offerings focused on STEM and which opened its Mesa campus at the graduate level first; Upper Iowa University, focused on nursing , public administration and public safety degrees; and Albright College, offering courses from psychology to information technology.

“We worked in unison with them, and now we’re focused on helping them succeed,” Jabjiniak says. That help included renovating city-owned property and letting the schools lease from the city. “Keeping their overhead down while enrollment grows is key,” he says.

“Therefore, we put the capital cost on our books as we financed the renovation. They simply pay for the space they’re using going forward. It has worked out really well.”

City of Chandler “Competition since the recession has become more intense on what the state and the community are willing to do to land big companies, but they don’t always make financial sense for the community,” says Christine Mackay, economic development director at the City of Chandler. She notes Chandler did nothing differently during the recession in its attraction and retention efforts S E P T E M B E R 2014

25

“When we create this amazing business platform, it should be what we’re known for, but when we back it up with volatile political controversy that conflicts with our ability to attract and grow talent, we end up hurting ourself.”

but it was the No. 1 city in Arizona, and 99th in the country, to recover. “We kept a nearly myopic focus on creating and retaining good-quality jobs and capital investment and reinvestment in high-wage sectors.”

Within those efforts has been an emphasis on creating a cluster economy — businesses that support each other and that involve skills that can absorb each other’s skills, in disciplines that complement and translate well with each other. As example, Mackay points to all the vendors, manufacturers and support services that established themselves near Intel, creating additional jobs and capital investment and resulting in a thriving hightechnology manufacturing cluster. Then other manufacturers follow, in what Mackay calls the “Nordstrom effect.” “Chandler is a strong representation of how vibrant a cluster economy can be,” she says.

Noting, “It’s important to brand who you want to be,” Mackay says economic development decisions were based on where the city leadership wanted the city to go.

And a key part of that was creating a place where a quality work force would want to live, because, she observes, “Companies go to be near the work force.” Fifty percent of the economic development campaign is spent on recruiting companies, and fifty percent on recruiting the work force to live in the community.

Tools are in infrastructure, with robust capital investment programs that allow the city to get out ahead of development. To that end, the Economic Development Department is involved in city planning discussions.

“We know where the sites [of employment corridors] are and where the jobs are going to go; have known for decades,” says Mackay.

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City of Phoenix “Phoenix is the sixth-largest, fastest-growing city,” Marshall says. The city is building on an already established core competency in biolife sciences, with a new cancer center being finished and other construction slated related to the Phoenix biomedical campus downtown and a biomed corridor by the Mayo Clinic in northern Phoenix.

Phoenix has also begun aggressively trying to expand its co-working space, incubators and accelerators, Marshall says, “to make sure we have the right mix of options to encourage entrepreneurs and advance growth in emerging enterprises.” He relates that many national brands are seriously considering Phoenix, realizing the potential that exists woven within public, private and educational organizations.

In addition to the business attraction component of economic development, Marshall notes the city has a strong retention and expansion program. Its most significant tools are city services and assistance, and Marshall illustrates this with the experience of a company he describes as “the fastest-growing company in the City of Phoenix”: “Their problem was street parking, and we rectified it,” he relates.

“We didn’t give them money; we just fixed the problem.” He notes the importance of getting to know the companies on a personal level, small and medium-sized businesses as well as the large ones, to understand and help resolve their issues.

Marshall also points to the success of a program Phoenix also initiated about a year ago — the Sector Partnership — which it debuted with the healthcare sector.

Observing, “There are a lot of businesses and jobs tied to the healthcare sector,” Marshall says the standard approach would have been to meet with every business individually and learn about the sector incrementally,

but “if we convene everybody, we could try to address issues in a unified way.” There was a lot of skepticism at first, especially among businesses that were competitors, but Marshall reports it is now thriving and growing, and is soon to be rolled out in other sectors. “They get a larger voice and have more input, and they take ownership of things they can change.”

Image Matters “We need a more positive image of Arizona,” Rounds states. As an economist, he talks to site selectors, economic developers and company executives. Pointing out that people have to be thinking about Arizona so we make that Top 10 list when they are ready to begin collecting economic development data, he says, “They have to be interested in Arizona and intrigued for more.”

But it’s a much bigger picture than just the regulatory side. Broome, who characterizes Arizona’s tax and regulatory position as “best in class,” notes, “When we create this amazing business platform, it should be what we’re known for, but when we back it up with volatile political controversy that conflicts with our ability to attract and grow talent, we end up hurting ourself.” In particular, he points to our “big three: 1070, 1062 and John Huppenthal,” the first two of which polarized Arizonans around issues of immigration and the LGBT community, respectively, while Huppenthal’s posts generated heat as much for the content of his statements as the clandestine manner in which he made them.

“Running 1062 through and putting the state in a ‘here we go again’ mode while we’re trying to recruit Microsoft and eBay and Cisco and companies out of markets that care deeply about that issue [LGBT] — you’re neutralizing your advantage when you don’t look at the complete interest of the companies,” Broome says, explaining that, however advantageous our tax and economic policies are for companies such as Apple, attracting them requires understanding the full spectrum of their needs. For instance, he points out, Apple is so aggressive about being inclusive for LGBT in the workplace, it won’t accept as a supplier any company that doesn’t have an LGBT program and outreach program. “So Apple comes in and makes a huge investment, they get all the tax and economic benefits, and then INBUSINE SSMAG.COM

SRP Smart Business Series we have policies come crashing through that counteract their ability to attract talent and grow talent.”

Activities that create a hostile environment for people have diminished Arizona’s brand and reputation, Broome finds. “So now we’ve done the tax and economic policy right, we have to do the work environment right, we have to do the culture right, we have to do the human capital right.”

Our Place in the Race “Phoenix is the 12th-largest MSA [metropolitan statistical area] out of 380 in the U.S.,” says Marshall. And we seem to be riding well on the trending tide of technology-based economic development, “manifested by Silicon Valley Bank committing $100 million in funds to invest in technology and life science companies in Arizona, and committing 250 employees of its own to make it happen.”

In the competition to attract new companies, Texas regularly emerges as one of the top contenders. Broome believes that Texas’s brand is better — and it gets higherprofile announcements — but Arizona is better from a tax and economic standpoint. “Almost every single transaction and investment that’s made in Arizona, we’ve beaten Texas to get them,” he says. And Jabjiniak underscores the value of our infrastructure against Texas’s deep pockets for funding in stating, “There’s a lot of oil money in Texas, but I’d put my cost of electricity against Texas.” And he adds, “I’m very proud of the fact that we can compete against Texas.”

Jabjiniak also notes Arizona’s strength in data centers, for which he lauds the state for creating tools to facilitate their growth. “They don’t create a lot of new jobs, but they create a tremendous amount of capital investment for us.” In fact, in the year since the state legislature passed a package of tax incentives

for the industry, 26 new megawatts of data centers have opened, with an economic impact of tens of millions of dollars. [Editor’s note: See our article on the data center incentive package on page 14.]

Arizona has long-range plans in place, Klein says, “because we have gotten more focused at the statewide level with a comprehensive economic development plan, are doing a better job of coordinating with local economic development agencies, and have a chance to think comprehensively about the major factors that will improve our competitiveness.”

Klein also points out an advantage distinct to the Greater Phoenix area: being right in the heart of the corridor of the Intermountain West, which, she says, will be the growth corridor for the U.S. Additionally, Phoenix offers convenient access to the major technology centers in California. Geography also makes Phoenix “a great way to connect between Mexico and Canada,” she notes, especially with the focus on the Interstate 11 corridor to improve access to Mexico and, potentially, to Canada along with other commerce-related advantages. “As Arizona grows and the metro region between Phoenix and Tucson grows, we’ll have people who want to be located here to be in the center of all that.”

Arizona Board of Regents azregents.edu

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S E P T E M B E R 2014

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TECH

INNOVATIONS FOR BUSINESS

Technology: Marketing

Loyalty programs using Big Data and mobile apps give more marketing punch than the old punch cards

by Don Harris

bought and other data. If a customer hasn’t been into a coffee shop for a TECHNOLOGY IS GIVING merchants a newer, slicker, 21st-century while, for instance, FiveStars’ software alerts the merchant to send them way to offer customers reward/loyalty programs, signaling a shift away a freebie to get them back in. from those wallet-clogging buy-ten-get-one-free punch cards.

Indeed, merchants of all kinds are signing up for tech programs Furthermore, FiveStars says the platform personalizes commerce in the that enable them to keep tabs on their regulars and reach out to new real world by “leveraging big data, predictive analytics and cloud-based customers while the customers pile up reward points with the swipe of a marketing automation, aiming to make offline transactions as personalized card. Merchants include coffee shops, bakeries, full-service restaurants, as they are online by building a ubiquitous software platform at the gyms, spas, salons, car washes and sandwich shops, among others. merchant point-of-sale.”

Among the providers of this kind of program is Chicago-based Belly, At Belly, CEO Logan LaHive says, “We’ve built an iPad app that a major player in the growing field, which says more than 3 million businesses can set up in their stores so that as their customers visit they users have thrown away their punch-cards forever in favor of Belly’s can earn points, which can be redeemed for rewards. Belly enables digital loyalty app and card that can be used anywhere. Belly has signed customers to use one card or app to scan in on the Belly iPads to earn up more than 7,000 merchants in nearly 20 cities, including some in the points.” Belly members use the same BellyCard or mobile app to earn Phoenix area, who are using the company’s “punch-card killing iPad.” points at any Belly business. “In addition to loyalty, we offer our partner And FiveStars, headquartered in San Francisco, boasts that more businesses tools to not only create these digital connections with their than 4 million consumers are tossing their punch cards in favor of customers, but to enhance and automate them.” its digital loyalty app. Company officials say FiveStars, which targets For example, LaHive mentions email marketing, social media small businesses, works with more than 5,000 merchants throughout engagement, online reputation management, mobile discovery and the country. targeted offers to attract new customers and provide access to customer Victor Ho, FiveStars CEO, explains how technology enables his insights. “All are features we’ve built to help our clients run their loyalty/rewards program to work. “Our world-class engineering business and make more informed marketing decisions that drive sales,” team has developed patented technology that enables our software to LaHive says. run across any point-of-sale,” Ho says. “This is a significant differentiator for FiveStars versus our “It’s better than anything I’ve ever done before. I try competition. Our competitors typically just give away an iPad that isn’t integrated with a merchant’s to go after two types of customers — repeat and point-of-sale and only reward people for visiting a new customers. If we haven’t seen someone store, regardless how much a customer spends.”

FiveStars uses big data to identify customers and for a while, we send a text message offering help merchants to be more informed about who free cookies and coffee.” comes in and how often. It then tells merchants who to send loyalty rewards, coupons and perks, — Amy Black depending on when they came in last, what they

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INBUSINE SSMAG.COM

BOOKS “Our regulars come in more often and our newer guests love the idea of getting a discount on top of already discounted merchandise. ” — Katie Downing Phoenix-area merchants who have signed on to the next generation of loyalty/rewards programs are delighted with the results, and so, it seems, are their customers.

Amy Black, who owns Jimmy and Joe’s Pizzeria restaurants in Mesa, Chandler and Ahwatukee, says the FiveStars database has enabled her to set up three tiers of rewards. Based on how much a customer spends, rewards range from a slice of pizza and a soft drink to a 16-inch pizza to a 24-incher.

“It’s better than anything I’ve ever done before,” Black says. “I try to go after two types of customers — repeat and new customers. If we haven’t seen someone for a while, we send a text message offering free cookies and coffee.”

Another FiveStars client, Ashly Young, owns Chloe’s Corner at Kierland Commons and C3 Kitchen at Scottsdale Quarter.

“It’s working really well,” Young says. “They both get lots of foot traffic.” In addition to awarding breakfast or lunch items based on accumulated points, Chloe’s and C3 both give their customers “happy birthday milk shakes,” Young says. “Our customers love it,” Young says. “They’re getting something just for being customers.”

And Young receives weekly updates from FiveStars on her account.

“They keep track for us,” she says.

When Katie Downing, manager of Bookmans Entertainment Exchange in Phoenix, was facing three years of light rail construction right in front of her store, she turned to Belly. “We decided we needed to offer our customers an incentive and reward for braving the construction zone,” Downing says.

Bookmans built its reputation on the concept that “used” is not a dirty word, Downing says. “Bookmans relies on our customers for what we sell, including books, music, movies, video games and systems, magazines, comics, electronics and musical instruments, to list a few,” she says. “We regularly host in-store events ranging from art exhibits, musical performances and anime festivals to reptile adoptions, yoga classes and yo-yo workshops.”

Bookmans’ rewards range from an automatic 10 percent off a purchase to free books, movies, video games and gift cards. “So far, it’s been great,” Downing says. “Our regulars come in more often and our newer guests love the idea of getting a discount on top of already discounted merchandise. We have also utilized the Belly email campaigns to incentivize a return trip to the store with free gift cards and bogo (buy one, get one) DVD offers.”

It seems that punch cards, as Belly’s website proudly proclaims, “are so last century.”

Belly bellycard.com FiveStars fivestars.com

INBUSINE SSMAG.COM

MARKETING IN A TECH WORLD

Twitter is Not a Strategy: Rediscovering the Art of Brand Marketing IN A CULTURAL climate saturated by technology, marketing professionals have focused their energies on creating newer and more digital methods of advertising their brands. The tension between traditional branding and the seemingly unlimited possibilities presented by the advent of “digital” branding leads companies to abandon the tried and true aspects of marketing for the flash of the new. In this informative new book, Doctoroff, Asia CEO for J. Walter Thompson, explains why a strategy that truly integrates the two ideas is the best way for a brand to move into the future. Using some of the biggest brand names in the world as examples, such as Coca-Cola, Nike and Apple, he breaks down the framework of marketing to explain how digital marketing can’t stand without the traditional foundation.

Tom Doctoroff $27 • St. Martin’s Press • November 2014

Everyone’s a Critic: Winning Customers in a Review-Driven World MORE THAN 70 percent of consumers now consult online reviews before making purchases, and they take those picks and pans very seriously. A disgruntled but ignorant customer on Yelp might have more clout than any expert guidebook, magazine article or newspaper critic. Some savvy businesses have figured out how to navigate — and even profit from — the new world of ubiquitous customer reviews.

Tancer takes readers on a journey inside that world, revealing how sites like Yelp, TripAdvisor, and many others are changing the way we interact. Readers learn, for instance, why one Los Angeles barber decided to advertise his one-star Yelp reviews.

Bill Tancer $27.95 • Portfolio Hardcover • October 2014

Thousands Per Minute: The Art of Pitching Products on Internet, Video and Television YOU CAN SELL your product at thousands of dollars per minute in an online video or retail television spotlight. There is an art to successfully appealing to your audience on camera. There is a way to keep the watcher watching! In these pages, readers will find that formula, gleaned from selling hundreds of products on television shopping channels and infomercials. This book is a comprehensive manual littered with entertaining stories of colossal sales success and abysmal failure. Readers will see what to do, what not to do and how to put it all together.

Cory Bergeron $31.95 • Morgan James Publishing • October 2014

S E P T E M B E R 2014

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LEGAL

LEGAL MATTERS TO BUSINESS

Contracts: Terms, Time and Negotiation Careful review is time well spent

by Sue Kern-Fleischer WITH SO MANY different types of business contracts and so much to understand about negotiations, disputes, breaches and litigation, it’s no wonder business owners and executives often are confused. There’s a plethora of educational articles online about contract negotiation and even some silly contract songs on YouTube, but the bottom line is that if business owners don’t invest ample time in reviewing contracts, they likely will get burned.

To save on legal fees, some business owners may pull contract forms off the Internet or create their own agreements, a strategy that is penny wise and pound foolish. “Business owners and executives drafting contracts is a big reason our litigation department exists,” says Daniel Hulsizer, an attorney with Phoenix-based Warner Angle Hallam Jackson & Formanek PLC. “The best advice is not to dabble; if the contract has potential adverse consequences if you breach it, have a professional draft it.” Business executives can help their attorneys in drafting contracts by participating, being available for questions and having a good understanding of what they consider to be the salient points of the contract and the terms important to them. He notes, “The attorney can only be as focused as the client, and cannot get in the client’s mind to decide the important business points.”

Hulsizer and his firm represent entrepreneurs and business owners in construction, real estate development, manufacturing, service and other industries.

When drafting contracts, one common mistake he sees relates to a misunderstanding of the contract terms. “Probably the most common mistake is not fully fleshing out the terms of the agreement,” he says. “What one person understands or thinks certain words or provisions mean may not be the same as that the other party understands.” Noting the importance of having the significant words and terms adequately defined within the document, as well as well-thought-out provisions that are clear and to the point, he says, “Anything left to interpretation or guessing is only going to lead to litigation.”

“There are no shortcuts to reviewing contracts,” says Steven Lippman, an attorney

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with Burch & Cracchiolo, P.A., a Phoenix firm that provides business and corporate law services in a variety of areas, from forming and maintaining a business entity to overseeing the legal aspects of business transactions and effective representation if a matter reaches litigation, as well as representing a wide array of government agencies at all levels. “The business owner and the business owner’s counsel should read every word in contracts and make sure that the business owner understands the terms in the business’s contracts.” When a problem does arise, it’s often due to insufficient time spent negotiating terms and reviewing provisions.

“It is not so much the use of legalese, but the failure to read all contract terms until only after a problem arises and not prior to signing the contract,” he says, observing that business owners get busy in their daily lives, but by not taking this time to carefully go over the contract they may end up signing one with terms contrary to their best interest.

Another common mistake Lippman sees is the failure of business owners to draft a buysell agreement to determine what happens in the event of an owner’s death or disability. “It is better for business owners to have a plan in place from when a business is initially formed as to how the business owners will value a business owner’s interest in the business in the event that one of the owners dies or becomes disabled or wants out of the business,” he says.

Business owners and executives also should carve out plenty of time for negotiations,

which often involve a volley of back-and-forth.

“Typically, the first draft of the contract and the first response from the other side have provisions that are completely unnecessary given the circumstance. Sometimes we call those provisions ‘throwaway provisions.’”

Hulsizer says the initial draft is usually completed in a manner to more than fully protect that party. That causes the responding party to do the same and include similar provisions, as well as probably removing some of the first party’s over-the-top provisions.

This may sound like a waste of time and money, but, Hulsizer explains, “This process allows both parties to really participate in negotiations — by getting the other side to cave on some point.” The true purpose of having these “throwaway provision” is to protect the provisions that really matter and typically aren’t negotiable.

In addition to being vigilant and wary when entering into a contract, Hulsizer says it’s OK to walk away if the risk is too great. “When faced with a contract, step back and really assess as many of the ‘what ifs’ as possible, and only at that point — if you can live with the consequences — proceed. Otherwise, you need to renegotiate the deal until you get to the point where you are as comfortable as possible or terminate negotiations and move on.”

Burch & Cracchiolo, P.A. bcattorneys.com

Warner Angle Hallam Jackson & Formanek PLC warnerangle.com

INBUSINE SSMAG.COM

WWW.INBUSINESSMAG.COM

September 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.

Arizona Small Business Association

Economic Club of Phoenix

ASBA Open House Business Expo Kickoff Event Thurs., Sept. 18 — 4:00p – 8:00p

Wed., Sept. 24 — 5:30p – 7:00p

THE ARIZONA SMALL Business Association will be hosting a business expo at its annual open house event at its Phoenix office. Attendees will be able to meet and interact with the Valley’s leading experts in small business. “This is an opportunity to collaborate with other ASBA members,” says Gabe Salcido, ASBA spokesperson, of the event. “We usually get between 1,000+ attendees and house at least 100+ exhibitors.”

THE ECONOMIC CLUB of Phoenix speaker series, of phoenix hosted by the W. P. Carey School of Business at Arizona State University, is not only introducing a new season of speakers but celebrating its 30-year anniversary at its kickoff event in September at the Phoenix law offices of Squire Patton Boggs. The kickoff will commemorate individuals who have been members since the inception of the club as well as a few other entities that are celebrating a 30th anniversary around the ASU campus.

The Economic Club of Phoenix, which is now the preeminent Arizona forum for exchanging ideas about business and the economy, will provide attendees with a chance to network and discuss current issues within their own businesses as well as larger trends in the business world.

“We often see our members bring clients or prospective clients to the luncheons,” says Elaine Armfield, assistant director of development at the W. P. Carey School of Business, “and they use that as a business development tool which is really effective.”

This season’s speaker series, scheduled to run from October to May, will feature top leaders from PetSmart, State Farm, Starbucks and several others to headline.

Business leaders and members of the community are invited to attend as the event offers a chance to hear from and converse with the heads of major local companies and international firms. “The speakers will talk about anything from customer service to expanding their businesses, and that is relevant to our audience. We find that many individuals identify with a particular company or speaker, which is great because we are reaching a broader audience of business owners,” says Armfield.

Noting that the speakers are universal and the topics they cover apply to small businesses to individually owned businesses to large corporations, she adds, “The structure of the luncheons lends itself to an exchange of information that is relevant to anyone.”

—Alexandra Lyon

All business professionals, members as well as nonmembers, are welcome to network, mingle and partake in one-on-one coaching and mentoring with local business professionals. Individual mentors will have designated tables and offer 30-minute coaching evaluations either during the event or at a later date attendees can schedule.

The event will also feature a silent auction for attendees to participate in. Last year, the silent auction brought in 70 different items to bid on and raised more than $5,000 for ASBA’s 501(c)3 Business Education Foundation. All profits will again go toward the Business Education Foundation, a center that helps educate and strengthen small-business owners for free. Wist Office Products, which is also sponsoring the silent auction, will be offering an office supply gift basket valued at $250. The Butler Law Office will be offering a $700 estate/will package as well.

A relaxation station will also be available to attendees as local business Mojo Physio will be offering massages and giving away Neuromuscular Release Therapy (NRT) gift certificates.

The event is open to the public and free to attend.

—Alexandra Lyon Arizona Small Business Association asba.com

economic club

Economic Club of Phoenix econclubphx.org

Notable Dates This Month Mon., Sept. 1 Tues., Sept. 23

Labor Day Autumnal Equinox

Agenda events are submitted by the organizations and are subject to change. Please check with the organization to ensure accuracy. See more events online at www.inbusinessmag.com.

WANT TO CUT ENERGY COSTS? THINK SRP REBATES. savewithsrpbiz.com INBUSINE SSMAG.COM

S E P T E M B E R 2014

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ON THE AGENDA ARIZONA ASSOCIATION FOR ECONOMIC DEVELOPMENT “Arizona State Land: What Economic Developers Should Know” Tues., Sept. 9 11:30a – 1:15p

Speaker is Vanessa Hickmann, Arizona State Land commissioner.

Members and guests: $40; non-members: $50. Register by Sept. 4; late registrants: $55 Phoenix Country Club 2901 N. 7th St., Phoenix aaed.com

ASSOCIATION FOR CORPORATE GROWTH – ARIZONA Breakfast to Feature ‘Deal of the Year’ Winner Tues., Sept. 9 7:00a – 9:00a

Breakfast to Feature 2013 “Deal of the Year” winner LaneTerralever, which was formed in late 2013 through the merger of digital firm Terralever and marketing agency E. B. Lane. The organization was selected as one of the Best Places to Work in 2013.

Members and sponsors: $59; non-members: $79 Arizona Biltmore Resort & Spa — Grand Ballroom in Phoenix 2400 E. Missouri Ave., Phoenix acg.org/arizona

AHWATUKEE FOOTHILLS CHAMBER OF COMMERCE Public Policy Speaker Series Fri., Sept. 5 Noon – 1:00p

Free Ahwatukee Urgent Care – Community Room 4545 E. Chandler Blvd., Phoenix ahwatukeechamber.com

ARIZONA CHAMBER OF COMMERCE AND INDUSTRY Environmental Issues Breakfast Wed., Sept. 10 7:00a – 9:00a

“Healthy Forest, Healthy Economy.” Russell Smoldon, CEO of B3 Strategies, will discuss the ongoing emergency that plagues Arizona and our attempt to save our watershed by creating healthy forests, therefore securing Arizona’s economic future.

Members: $35; non-members: $50 Sheraton Phoenix Airport Hotel 1600 S. 52nd St., Tempe azchamber.com

ARIZONA HISPANIC CHAMBER OF COMMERCE Breakfast and 2014 DATOS Tuesday, September 16 7:30a – 10:30a

The AzHCC will release the 187th Annual DATOS Report, which offers

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a detailed review and analysis on the economic trends shaping the Hispanic market in Arizona and nationally.

Members: $125; non-members: $150 Arizona Biltmore – McArthur Ballroom 2400 E. Missouri Ave., Phoenix azhcc.com

ARIZONA SMALL BUSINESS ASSOCIATION ASBA Speed Networking Tues., Sept. 9 3:00p – 4:30p

Make vital business connections in increments of only 90 seconds! Get tips from Pro Sales Coach Mike Leeds and learn the craft of fast, relevant, effective networking.

Free ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com

ASBA Open House Business Expo Thurs., Sept. 18 4:00p – 8:00p

CHANDLER CHAMBER OF COMMERCE Economic Update Wed., Sept. 24 11:00a – 12:30p

Speakers are Rick Robinson, a regional manager of Investment and Fiduciary Services at Wells Fargo Bank, discussing the Financial Forecast; Aruna Murthy, director of Economic Analysis at the Arizona Department of Administration, discussing “How Arizona Businesses Have Fared Pre- and Post-Recession”; Christine Mackay, economic development director for the City of Chandler, giving the Chandler Economic Update.

Members: $25; non-members: $35 Ocotillo Golf Resort 3751 S Clubhouse Dr., Chandler chandlerchamber.com

EAST VALLEY WOMEN Breakfast

Face-to-face access to hundreds of smallbusiness owners, high-quality networking, on-site mini one-on-one coaching and mentoring, food, drinks and prizes.

Free ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com (See article on page 31.)

Tues., Sept. 16 7:30a – 9:00a

SAFETY 103 – Dangerous Work Practices – 2

Wed., Sept. 24 5:30p – 7:00p

Tues., Sept. 23 8:00a – 4:00p

Work at height/fall protection, walking working surfaces, electrical safety, forklift safety, chemical safety, HAZCOM & GHS. $150; lunch included ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com

ARIZONA TECHNOLOGY COUNCIL Lunch and Learn: Overview of Sustainability Management Systems Tues., Sept. 2 11:30a – 1:00p

Get an overview of several aspects and standards of sustainability under the management systems umbrella.

Presented by DEKRA Certification, Inc. Members: free; non-members: $15.

Lunch is provided.

ASU SkySong 1475 N. Scottsdale Rd., Scottsdale aztechcouncil.org

CENTRAL PHOENIX WOMEN Luncheon

Thurs., Sept. 18 11:30a – 1:00p

The meeting will feature a media panel discussion. $75; reservations required The Ritz-Carlton, Phoenix 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org

Professional Women’s Alliance Presents Tues., Sept. 9 11:00a – 1:00p

“The One and Only You: Defining Your Personal Brand”; speaker is Denise D. Resnik, president of DRA Strategic Communications and founder of First Place AZ. Members: $20; non-members: $40 Phoenix Country Club 2901 N. 7th St., Phoenix phoenixchamber.com

Health Care Reform: A Look Back and a Way Forward Fri., Sept. 19 7:30a – 11:00a

Confused by the ever-shifting landscape of health care? Industry experts will talk you through the lessons learned during 2014 enrollment, help you navigate through myths and misunderstandings and brief you on necessary preparations for 2015.

Members: $50; non-members: $65 Hyatt Regency Phoenix 122 N. 2nd St., Phoenix phoenixchamber.com

$25; reservations required Hilton Phoenix / Mesa 1011 W. Holmes Ave., Mesa eastvalleywomen.org

LOCAL FIRST ARIZONA

ECONOMIC CLUB OF PHOENIX

An informative and inspiring session on the local movement in our state and a walking tour of Verrado’s downtown district, followed by a networking mixer. This event is open to owners and representatives of Arizona-owned businesses as well as current LFA members.

Delicious bites will be served. Attendees will be entered to win door prizes.

Free; registration required Main Street at Verrado 21051 W. Main St., Buckeye chrisal@localfirstaz.com

Kickoff Event

Free; space is limited, registration required Squire Patton Boggs 1 E. Washington St., Phoenix wpcarey.ecp@asu.edu (See article on page 31.)

GLENDALE CHAMBER OF COMMER COMMERCE Scholarship Golf Tournament

Fri., Sept. 26 6:30a – check-in; 7:30a – shotgun start

Join the Glendale Chamber of Commerce for its 15th Annual Scholarship Golf Tournament. Portions of the proceeds help fund ASU West Scholarships. $110 Legend at Arrowhead Golf Course 21027 N. 67th Ave., Glendale. glendaleazchamber.org

GREATER PHOENIX CHAMBER OF COMMERCE Economic Outlook 2015 Fri., Sept. 5 7:30a – 10:00a

This critical program offers insight from local, national and global perspectives.

Speakers are Jim Huntzinger, BOK Financial; Dr. Quincy Krosby, Prudential Annuities; Elliott Pollack, Elliott D. Pollack & Company.

Members: $85; non-members: $95 Arizona Biltmore 2400 E. Missouri Ave., Phoenix phoenixchamber.com

Meeting and Mixer Wed., Sept. 17 5:30p – 8:00p

NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS NAWBO University Wed., Sep. 10 9:30a – 11:00a

Evelyn Gaskin presents “The Quadrivium of Leadership ExcellenceTM.” Learn powerful leadership development strategies by focusing on four critical areas – Servant Leadership, Courageous Leadership, Ethical Leadership and Effective Leadership.

Members free; non-members $30 Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org

Luncheon

Wed., Sep. 10 10:45a – 1:00p

Leadership Panel presents, “Let’s Get Down to Business – Leadership.” Grow your business to new heights through effective leadership and learn best practices from Valley women business leaders.

Members: $38; non-members; $48; RSVP by Sept. 5

INBUSINE SSMAG.COM

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

Phoenix Country Club 2901 N. 7th St., Phoenix nawbophx.org

ORGANIZATION OF WOMEN IN INTERNATIONAL TRADE – PHOENIX ‘Cross-Cultural Communication’ Thurs., Sept. 18 8:30a – 10:30a

“Cross-Cultural Communication: Strategies for Increased Success Negotiating Around the World.” Special guest speaker is Douglas Cohen, senior manager of Trade and Contracts with Worldwide Trade & Legal Associates.

Members: free; non-members: $35 Maricopa Association of Governments 302 N. 1st Ave., Phoenix owitphoenix.org

SCOTTSDALE AREA CHAMBER OF COMMERCE Expert Human Resource Series Fri., Sept. 26 7:30a – 9:00a

The first of an informal series designed to be a discussion between HR representatives, facilitated by an HR professional. This session: “What You Should Know About Wage and Hour Requirements.” $20 per seminar, $100 for all 7 seminars

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Mountain States Employers Council 7975 N. Hayden Road, Scottsdale Nikki Hoffman, nhoffman@scottsdalechamber.com

Scottsdale Spice Culinary Event Sat., Sept. 27 6:00p – 10:00p

The Scottsdale Spice Culinary Event will bring together more than 20 Scottsdale restaurants to spice things up! Event will feature live music by Sapphire Sky and some of the hottest food in Scottsdale!

This is a 21 and over event.

Members: $35; non-members: $50 Venue of Scottsdale 7117 E. 3rd Ave., Scottsdale Anna Mineer, amineer@scottsdalechamber.com

SURPRISE REGIONAL CHAMBER OF COMMERCE Business Education Seminar Tues., Sept. 16 8:15a – 10:00a

Members: $10; guests: $15; includes full breakfast The Hampton Inn & Suites 14783 Grand Ave., Surprise surpriseregionalchamber.com

Social Media Class Tues., Sept. 30 7:30a – 9:30a

Members: $10; guests: $15; includes full breakfast Hampton Inn & Suites 14783 Grand Ave., Surprise surpriseregionalchamber.com

TEMPE CHAMBER OF COMMERCE Tempe Links Classic Golf Tournament Fri., Sept. 12 11:30a – 6:00p

Full round of golf with prizes, boxed lunch, silent auction and BBQ dinner.

Members: $125; non-members: $150 ASU Karsten Golf Course 1125 E. Rio Salado Pkwy., Tempe tempechamber.org

Hot Topics and Lunch Thurs., Sept. 18 11:30a – 1:00p

“Success Stories with the Business Woman of the Year Roundtable.”

Hear from award winners Kristine Kassel, owner of Benefits by Design; Stephanie Nowack, president of Tempe Tourism Office; and Christine Wilkinson, senior vice president and secretary of ASU and president of the ASU Alumni Association.

Members: $25; non-members: $35 Monti’s La Casa Vieja 100 S. Mill Ave., Tempe tempechamber.org

WEST VALLEY WOMEN Luncheon

Tues., Sept. 2 11:30a – 1:00p

“Spotlight our Members.”

Members: $30; non-members: $35 Arizona Broadway Theatre 7701 W. Paradise Ln., Peoria westvalleywomen.org

WOMEN OF SCOTTSDALE Luncheon

Fri., Sept. 19 11:30a – 1:00p

Annual Gentleman’s Luncheon. $35; reservations required The Westin Kierland Resort & Spa 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org

OTHER BUSINESS EVENTS Young Women’s Forum Thurs., Sept. 18 11:30a – 1:00p

Local First’s Kimber Lanning speaks on “Impacting Change: Empowering People to Build Better Communities.” Presented

by Arizona YWCA Metropolitan Phoenix. $20; lunch included Arizona YWCA Metropolitan Phoenix 755 E. Willetta St., Phoenix ywcaaz.org

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NONPROFIT

THE BUSINESS OF MAKING A DIFFERENCE

The Nonprofit Board: Financial & Legal Best Practices

Although the Sarbanes-Oxley Act took effect more than a decade ago, nonprofit board members may be feeling its financial and legal impacts now more than ever

by Marc Kellenberger REMEMBER ENRON? FALLOUT from the company’s corporate abuse and accounting fraud can still be felt in corporate America more than a decade later — namely through the passing of the Sarbanes-Oxley Act (SOX)

by Congress, which aimed to rebuild public trust in the corporate sector.

While SOX is almost exclusively aimed at corporations, a number of the law’s provisions have trickled down into the nonprofit boardroom. “SOX law has essentially led nonprofit boards, grant makers, state regulators and, ultimately, the Internal Revenue Service to re-examine the role of good governance and strong policies and procedures for nonprofits,” says Ellis Carter, principal of the Carter Law Group, PC. Today, those governance issues play an even greater role at tax time for the nonprofit. According to Colette Kamps, a certified public accountant and partner with Henry & Horne, LLP specializing in nonprofit services, the IRS Form 990 for nonprofits was completely revamped in 2008 as a direct result of SOX. It now includes a series of board governance policy questions that both Kamps and Carter say nonprofits

should pay close attention to. Answering, “No, we have no policy in place,” not only illustrates a lack of best industry practice but, as Carter points out, “An unfavorable response on all those governance questions can make your nonprofit look like low-hanging fruit.”

Proof of the low-hanging fruit theory, Carter says, can be seen in the recent uptick of IRS audits at nonprofits. “For the longest time, nonprofits almost assumed it was impossible to be audited by the IRS.” That isn’t the case any longer. “We are seeing the IRS develop tools that will look at governance responses on the 990 to identify audit targets,” she said. “That’s actually happening now.”

As a result, Carter advises her nonprofit clients to focus on establishing the following governance policies, the first three of which are addressed directly on Form 990 in requesting filers to disclose whether a written policy is in place: Whistleblower Policy — SOX imposes criminal liability on tax-exempt organizations for retaliation against whistleblowers. Carter’s recommendation is to adopt a policy that provides a place to confidentially report illegal

conduct and procedures for handling complaints regarding suspected financial impropriety or misuse of nonprofit resources.

Document Retention and Destruction Policy — SOX imposes criminal liability on tax-exempt organizations for destruction of records with the intent to obstruct a federal investigation. Carter’s advice is to adopt a policy that requires destruction of documents to cease, even if it is being performed on a set schedule, whenever the organization or its employees become aware of a federal investigation or bankruptcy case.

Conflict of Interest Policy — A Conflict of Interest Policy is a de facto IRS requirement for public charities in which forms 990 and 1023 ask whether an organization has a Conflict of Interest Policy; both forms require an explanation for those that do not. Also, Arizona law requires a Conflict of Interest Policy for nonprofit corporations with revenues in excess of $10 million. Conflict of interest policies should, at a minimum, require conflicted members to disclose the conflict, recuse themselves from discussions and votes related to the conflict, and have the conflict decided by disinterested decision makers.

Signature Authority Policy — While Form 990 does not ask if this policy is in place, failure to have a signature authority policy (with progressive approvals based on the size of the financial commitment or length of the contract) can lead to organizational liability if a rogue officer, director or employee makes an unauthorized commitment or overcommits funds. If an officer’s ability to spend or commit funds is not specifically limited by the board, it will likely be interpreted as unlimited.

Kamps points to another financial expectation of SOX, which some nonprofits have adopted voluntarily: the creation of independent audit committees. “The goal is to have an independent arm of the organization — the audit committee — that acts as a liaison between the board and auditors, and also between auditors and the managers of the organization,” says Kamps. “If you don’t have that independence, you lose your skepticism in an audit.”

While audit committees are not required

by Arizona law, their existence is considered a best practice. At the very least, says Kamps, nonprofits should consider having a finance

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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In the end, Kamps and Carter believe that SOX has created a necessary transparency in the nonprofit sector. “I think, as a result of Sarbanes-Oxley, board members today better understand their fiduciary responsibilities and better understand the importance of board governance,” says Kamps. And that, she and Carter both agree, can only be good for the nonprofit.

The Phoenix Philanthropy Group phoenixphilanthropy.com

Marc Kellenberger is founding partner of The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists. TPPG often consults with Henry & Horne LLP (hhcpa.com) and Carter Law Group, PC (carternonprofitlaw.com) on financial and legal matters for their nonprofit clients.

INBUSINE SSMAG.COM

We’re 75! And we can’t think of a better way to celebrate than to share our birthday with you, who made this milestone possible.

Check out azblue.com/birthday to share in the memories. Each month we will highlight the accomplishments of our tremendous partners, members and communities we serve.

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committee responsible for communicating directly with the auditors and separately with managers and staff about the audit.

Both Carter and Kamps agree that true compliance with SOX for the nonprofit is both unnecessary and cost prohibitive for most Arizona nonprofits. However, says Carter, having the above policies in place can avoid the possible unwanted attention of the IRS. “Nonprofits,” she says, “should ultimately consider and apply the elements of SOX that make the most sense to their organization.”

The following are critical questions for consideration by each nonprofit organization: 1. Is the organization trusted by its various constituencies?

2. Does the governance structure of the organization, both on paper and in practice, provide appropriate levels of oversight where needed and create checks and balances to prevent any one group from having too much unbridled power and authority?

3. Are the operations of the organization sufficiently transparent to all interested parties?

4. Does the organization operate with the highest level of integrity?

5. Does the organization have systems which will ensure that any self-dealing and excessive compensation or benefit to employees within the organization will be dealt with swiftly and decisively?

6. What governance changes can be made that will assist the organization in furthering its mission?

D10745 02/14

Money Matters!

Look for the

2014 Annual Lending Guide

G TO BUSINESS FINANCIN THE RESOURCE GUIDE 2014/2015

from In Business Magazine Subscribers receive it with their October 2014 copy of In Business Magazine • THE Resource for Funding a Business!

• Distributed to Business Owners & CEOs Valleywide

Major Banks Community Banks Credit Unions Lending Institutions & Resources

• Available online at inbusinessmag.com • Profiles of Top Institutions & Banks

Subscribe: visit inbusinessmag.com/subscribe Advertise: Lenders, showcase your Loan Department to more than 177,000 readers.

Contact us at info@inbusinessmag.com Or call (480) 588-9505 x213 S E P T E M B E R 2014

35

WE VALUE WHAT WE OWN

by Mike Hunter

The 2015 Lincoln MKC SUV Crossover IT IS THE latest from Lincoln, the struggling car maker that once was the pinnacle of the industry. On its way back is the Lincoln MKC SUV crossover that is introducing luxury and new technologies at a great price.

The MKC will be available this month and offers three engine types that include Ford’s 2.3-liter EcoBoost, direct-injection, I-4 turbo engine that creates 285 hp and provides 305 lb-ft of torque. This is the engine the new 2015 Mustang will debut as well. The 2.0-liter version is also quick and responsive with slightly less power, but not noticeably different for the day-to-day. Off the line, the strength of this engine performs and its output will please drivers. The all-wheel-drive edition is fundamentally a better drive and provides a more confident connection to the road and enviable maneuvering through inclement weather.

Each edition of the MKC offers the six-speed SelectShift® automatic transmission with paddle shifters that is surprisingly responsive and smooth. Lincoln Drive Control options are Normal, Comfort and, most nimble of the three, Sport — giving drivers a performance mode that will fit their every mood.

Luxury is front and center with this Lincoln crossover. The dash layout and the spacious cabin add to the luxurious leather seating surfaces and convenience of all gadgets a driver may need while driving or while stopped. The technologies bring the MyLincoln Touch, a lane-keep assist system, driver alert and other driver-assist systems that one can expect on a luxury vehicle. The navigation and onboard computer systems are top notch and include Bluetooth technology and reliable sync options.

A true competitor to the overseas brand with one distinguishable difference — price. This complete top-of-the-line model base price is nearly $20,000 less than the Mercedes, BMW or Lexus models. While it has been called a luxury Ford Escape, this MKC impresses and is clearly 2015 Lincoln MKC AWD SUV many steps above.

City MPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Hwy MPG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 0-60 MPH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.4 sec Transmission. . . . . . . . . . . . . . . 6-speed automatic MSRP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,860

The Lincoln Motor Company lincoln.com/mkc

Travel Downtime Goes Smart BUSINESS TRAVEL WAS once a luxury and is now a time-consuming activity that can engender the sense that productivity is being lost. With the agile smartphone, travel downtime is quickly becoming a productive and even innovative time to get ahead. Here are some apps we recommend for those travel pauses.

Evernote

Stay organized, save ideas and improve productivity. Evernote is an easy-to-use, free app that helps the user remember everything across all of the devices he or she uses. Evernote lets the user take notes, snap photos, create to-do lists, scan business cards and record voice reminders — and it makes everything searchable, whether the user is on the road or in the office. evernote.com

Expensify

Expensify makes capturing receipts, tracking time or mileage, business travel and creating expense reports quick and easy. Acknowledged by the tech community as the best app for expense reporting, Expensify takes the time, paper and headaches out of preparing expense reports. expensify.com

FlightTrack 5

FlightTrack 5 tries to maintain some order, whether it’s grouping flights for hopping around Europe or that quick roundtrip to Scranton for business. Useful even for those not flying, FlightTrack can help keep the user informed of staff’s, friends’ and family’s flights. mobiata.com

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Photos courtesy of Lincoln (left), Evernote, Expensify, Mobiata (right, top to bottom)

ASSETS

MEALS THAT MATTER

by Mike Hunter

POWER LUNCH

Get a Piece of the Pie PIZZA IS BELOVED by all and has become a meal for many or a single, plate-sized delight. Being easy to eat and available in a vast variety make pizza (or flatbreads) a favorite of lunch-goers. Here are our picks:

Federal Pizza

Incredible crust is the foundation for this Central Phoenix hot spot housed in the old 1950s First Federal Bank building. Woodfired and made of only fresh ingredients, these creations include modern infusions of food and classic combinations.

5210 N. Central Ave., Phoenix (602) 795-2520 federalpizzaphx.com

La Piazza Al Forno

Located in Historic Downtown Glendale, this famed pizza joint is home to some of the finest brick-oven pies money can buy.

Made with passion and in the Old World “Italian” spirit, these more traditional pizza offerings will all excite.

5803 W. Glendale Ave., Glendale (623) 847-3301 lapiazzaalforno.com

Photos courtesy of MOD Pizza (left), Paul Martin’s American Grill (right)

MOD Pizza

The first of what may become many Arizona locations, this newest pizza spot makes pizzas in approximately three minutes in an 800-degree, gas-fired oven. Ingredients are fresh, organic and flavorful. The dough is handmade with an organic wheat flour for great taste and doughy-ness.

2904 S. SanTan Village Pkwy., Gilbert (480) 214-6305 modpizza.com MOD Pizza

An Instant Classic: Paul Martin’s American Grill

HOMEMADE DISHES WITH the finest ingredients at a great price was the concept developed

by Brian Bennett and Paul Fleming. Known for their successful restaurant concepts, they have now launched Paul Martin’s American Grill to be that great neighborhood joint to get some well-known dishes and fresh and flavorful creations made of locally sourced ingredients.

Recently opened in the redeveloped Borgata of Scottsdale, this space was designed for comfort, an easy meeting for a business lunch or a special occasion. A bit of everything American-inspired, the dishes include elaborate soups and salads like the Roasted Tomato Soup, made with fresh basil pesto and cream finished. Or the Steak Cobb, with marinated hanger steak, bacon, grilled avocado, blue cheese, tomato, radish and egg, tossed with the house vinaigrette. Martin’s lunch specials (each only $11) include the House Braised Pork Tacos, the Grilled Salmon Sandwich and the Greek Salad. Try the unforgettable B.L.T. with hardwood-smoked bacon, romaine hearts, tomatoes, avocado and black pepper aioli on a fresh-baked roll. Entrees are hearty and full of fresh ingredients, anchored with fresh seafood and meats. Most notable is the “Brick” Chicken, a roasted, herbed, freerange chicken accompanied with light and fluffy mashed potatoes with an herb jus.

The setting is both contemporary and timeless, with a truly welcoming atmosphere enhanced by impressive service and a knowledgeable staff. Sit at the bar, a communal table or a private spot for four or more. The warm and inviting appeal of one of Scottsdale’s newest hot spots is quickly becoming a local classic.

Paul Martin’s American Grill 6186 N. Scottsdale Rd., Scottsdale (480) 991-9342 paulmartinsamericangrill.com

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GLOBAL Global Chamber® Events

® CHAMBER SEPTEMBER 2014 - DECEMBER 2014

www.globalchamber.org

Global Chamber® | Oct. 21, 2014 Your Global Career Executives and business students exchange ideas, share success stories and connect to opportunities at Thunderbird School of Global Management in Glendale, 4pm – 8pm.

RSVP to yvonne@globalchamber.org.

Global Chamber® Tucson | Nov. 6, 2014 Grow Globally, Tucson All the global resources to grow in Tucson, all together, for the first time ever! For executives looking to grow globally, 4pm to 7pm. RSVP to yvonne@globalchamber.org.

Global Chamber® Salt Lake City Nov. 19, 2014 Funding your Growth Introducing the Toronto Stock Exchange funding options for companies in technology, natural resources and manufacturing. VIP session 11/18 evening. RSVP to yvonne@globalchamber.org.

Spotlight Event Global Chamber Phoenix Nov. 5, 2014 | 4pm to 7pm Grow Globally, Phoenix All the global resources to grow in Phoenix, all together, one time per year, 3pm to 6pm at SkySong. RSVP to yvonne@globalchamber.org.

Inside this section

2 A Global ‘State’ of Mind:

Help from an Unexpected Resource

3 Global Success Takes a

New Skillset and Mindset

4 Get Ready for Exporting: Create the Foundation

5 Bullish on Global Phoenix 6 Building Loyal Customers Across Borders 7 Reauthorize the Export-Import Bank for More Exporting and Jobs

Global First. Local, Too. Doug Bruhnke, CEO and Founder of Global Chamber®

A “Local First” slogan makes sense for consumers when they’re buying, but it can be a disastrous approach when executives are looking for sales growth. Thinking too close to home has put the U.S. into the predicament of having less than 1 percent of companies export, while most countries around the world are much higher, like Sweden at 5 percent.

Having companies export goods and services brings money in from around the world, creating jobs and moderating the ups and downs of selling to one economy. Communities with globally-minded companies generate more tax revenue from exports and foreign direct investment to pay for roads, schools and infrastructure for a stronger future.

Buying local products keeps money in the community, but it’s not enough. We need money here from tourists, investors and buyers of exported products to really thrive.

Arizona is below average for states in both exports and foreign direct investment. For instance, Phoenix is ranked 34th among metropolitan area in the U.S. (Brookings) for exports, and is losing ground. Salt Lake City

exports 50 percent more than Phoenix with just one-fourth the population, and is gaining ground.

When will more business leaders here take action?

The Global Chamber actively connects more companies and communities with global business opportunities, and increases their success when they do. It’s a tough job — because we’re programmed to embrace local, and shun global.

Why? When a factory in the U.S. closes, often the media claims it’s foreign competitors who are to blame. Yet when a U.S. company is hiring — like Able Aerospace in Mesa — does increasing exports get the credit? Hardly … but they should! Just ask Lee Benson. He and his team are unsung exporting heroes, creating hundreds of jobs in Arizona.

Imagine a world where entrepreneurs start out thinking how they can serve foreign markets instead of selling across the street for a while, and then thinking about global markets down the road. When companies put global first when selling, we’ll be in a better place and right where the Global Chamber aims us to be. Are you with us?

Take Your Business Plan Global Greg Bischak, Principal at Giles & Company

Now is the time to get started with global business. It’s worth it! Consider that the U.S. population represents only about 4.5 percent of the total world population of more than 7.2 billion people and is growing less than the rest of the world. China now has the second-highest number of millionaires in the world, according to Lloyd’s, and McKinsey reports that the Chinese middle class is growing rapidly with

urban household income expected to double by 2022, with foreign brands highly desirable.

When a depressed U.S. economy weakens your sales, there are other economies that CONTINUED ON PAGE 2

GlobalChamber.org

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GLOBAL

A Global ‘State’ of Mind: Help from an Unexpected Resource Melissa Sanderson, VP of International at Freeport-McMoRan

Youthful populations and burgeoning middle classes, from Pacific nations and the African continent to China, offer unprecedented opportunities for growth and profit for enterprising U.S. companies.

As a businessperson, you already know that knowledge is power, and research is key to successful start-up and market growth. What if there were a free resource that can be invaluable in helping you make the initial choice to go global, and help along the way?

This invaluable resource is www.state.gov. The website, the portal to the U.S. Department of State, can provide you enough “one-stop” information to decide whether a specific country offers enough potential to merit either additional research through specialized services such as the U.S. Commercial Service (with offices in Phoenix and Tucson) or perhaps a fact-finding visit to the country in question.

Here are a few examples of the sort of information available at the State website: From the main page, click on the “Countries and Regions” tab and select either a region (South and Central Asia, for instance) or a specific country (India, say). This will bring you to the latest policy developments with the region/country of interest — for instance, if the U.S. is negotiating a free trade or other special arrangement with the country or region in question, or if there are specific issues of concern such as territorial disputes that could affect investment.

Once you select a specific country, you will be directed to a fact sheet with the latest information on U.S. relations with that country, statements by the ambassador, and be led to a link with the U.S. Embassy webpage for that country, with further information and live links to various offices in the embassy (Ambassador, Economic or Political offices), where often you can make contact with an embassy officer working in the country, to whom you could pose questions.

The country link also can direct you to the CIA World Factbook information on the country, which is a great source of historical and actual information to further enrich your research.

On the State website, you also can access useful annual reports such as the Investment Climate Statement, which provides in-depth information on doing business in specific countries, including links to local lawyers recommended by the embassy to help U.S. companies navigate local legal labyrinths. In addition, there are the annual Human Rights and Religious Freedom statements, which help you better understand any country’s attitudes and behaviors toward others; special links deal with women’s issues as well.

Finally, at the State site you also can discover the latest on trade agreements and, very importantly, you can receive the latest travel updates and alerts for the region or country in which you are interested. You can also register your trip. This is essential for any traveler, whether on business or pleasure. Registering allows the embassy in the area you are going to find you in case of emergency and, if needed, to provide assistance. Remember, if the embassy doesn’t know you’re in-country, they can’t help you in a crisis.

As a former diplomat, I admit I’m prejudiced as pro-State, but I do think that the State Department is an often-overlooked but extraordinary resource for U.S. entrepreneurs looking to grow globally. Good luck!

U.S. Department of State state.gov

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Global Chamber®

CONTINUED FROM PAGE 1

are strong. And if you have a large market share in the local market, new untapped global segments can propel your growth. Yelp just beat its revenue estimates for 2Q14 with international diversification, increasing its user base by 95 percent as a result of moving into Mexico and Japan. Power industry manufacturer Thermax has been recently challenged in the domestic market, but expects to increase international revenue in SE Asia, Africa, Asia and the Middle East from 35 percent of total revenue to 70 percent in the next few years.

Where do you start? Create your Business Model, the foundation of your business plan, to include values, mission, strategy and, most importantly, your Value Proposition. For each potential global market, include a deep understanding of market drivers, culture, language, legal, logistics, communications, administration and other key factors. Define how you will incorporate these. As you proceed, your most attractive opportunities will become clear. Seek as much information and knowledge as you can from experts in your organization. If you need help, there is considerable expertise right here in Arizona.

Getting your plan right makes a difference. As more U.S. companies chase the vast global market, not all have succeeded. The winners understand that it’s not just transplanting their U.S products or services and translating the language on the box.

Understanding the culture, behavior, social factors, emerging local trends and other indigenous factors is critical.

Since 1987, KFC has been thriving in China mainly because it adapted locally, offering traditional Chinese fare and food seasoned to the local taste. Home Depot failed in China despite rapid housing growth. They didn’t do their homework and missed local economic basics like the fact that cheap labor makes do-it-yourself less attractive.

Capitalizing on global opportunities is exciting and challenging. Building a global business plan is hard work and requires a solid understanding and integration of many aspects. When you’ve completed your business plan, you can begin to experience the excitement and rewards of a “whole new world” of business growth. What are you waiting for?

Giles & Company Strategic Business Consultants, Inc. giles-company.com

Global Success Takes a New Skillset and Mindset Paul Kinsinger, Clinical Professor of Business Intelligence and Executive Director of

Thunderbird Executive Education at the Thunderbird School of Global Management

In today’s fast-moving globalizing economy, “what got you here” some years ago will help, but it won’t “get you there” altogether. To lead in the modern global marketplace, you have to add something more.

At Thunderbird Executive Education, we are finding that even seasoned global executives need to upgrade their skills to keep pace with the two overarching phenomena dictating global opportunities and challenges: managing the complex demands of a global economy that is shifting both east and south as emerging markets outgrow those in the developed world while, at the same time, navigating an increasingly turbulent global environment.

Seizing on dynamic growth in emerging markets while maintaining innovation and focus in established markets is the strategic challenge facing many executives today. Whether the company is already in emerging markets or does business with companies that are, executives and organizations must have a strategy for emerging markets or risk becoming sidelined.

But winning in emerging markets is getting tougher, too, so if you are not already in them, or are following a customer that is, the challenge of doing so is getting steeper daily.

In many such markets, the easy fruit has been picked; local competition is on par with developed economies; governments are driving harder bargains with regard to investing in social development and contributing to the growth of local companies; and customers are demanding high-quality products and services at price points that meet their market realities.

The challenge for leaders comes with increasing their strategic ambidexterity. Senior executives must master multiple market speeds — one for slower-moving, complex developed markets like Europe; another for faster ones like the US; another for emerging markets graduating to greater levels of complexity, like China; and others for new giants like Indonesia or Nigeria. This requires dealing with

increasing complexity across multiple aspects of a business, as well as rethinking comfort levels with risk. It also requires devolving more power to others closer to the markets who can make the fast decisions needed to stay ahead there.

Dealing with the second big phenomenon driving the global economy — increasing turbulence — requires more buoyant organizations, which in turn requires more adaptive, agile leaders. We find that

organizations flourish when they are as alert as possible to signs of the ground shifting and move quickly in response; can experiment fast and move on; can flow vital information effortlessly; and will work opportunistically with partners, customers and even competitors to tackle external obstacles that all face. All these demands call for leaders who are great listeners, and are collaborative and trusting as well as fast-moving.

Thunderbird School of Global Management thunderbird.edu

Building an International Economic Network (“BIEN”) Connecting Businesses in Arizona, Canada and Mexico Alana Chavez-Langdon, Regional Analyst, International Economic Development and

Infrastructure Initiatives, at Maricopa Association of Governments

Are you making all the best business contacts? Connecting your business to just the right people in a new trade region can be challenging. The Maricopa Association of Governments (MAG) and its partners have launched a first-of-its-kind website that allows companies in Arizona, Mexico and Canada to directly connect with each other. Using a comprehensive database, you can search for compatible companies that you might not otherwise have known existed.

“BIEN,” which means “good” or “right” in Spanish and French, is an acronym for “Building an International Economic Network.” The website (www.connectBIEN.com) enables small and medium-sized companies to expand their supply chain networks and identify growth and collaboration opportunities with other businesses in Arizona as well as with those in Mexico and Canada — Arizona’s top two trading partners.

Participation in the database is free, and it’s easy to register your business on BIEN. Simply click the “Join” link at the bottom of the BIEN home page, create a business profile, and, within moments, your company will be mapped and available for business connections. The self-reporting system allows you to add information about the products and services you offer by industry category. Site visitors can find businesses using various search factors, including company name, distance or type of business. Connection opportunities are unlimited — examples include supplying products and services, facilitating cross-border commerce and exchanging information.

The website is available in English and Spanish, and soon will be available in French.

It’s hosted by MAG in cooperation with the Arizona Commerce Authority, Arizona Department of Transportation, Arizona Mexico Commission, Canada Arizona Business Council, U.S. Commercial Service, Global Chamber and other strategic partners.

Maricopa Association of Governments azmag.gov

GlobalChamber.org

3

GLOBAL

Get Ready for Exporting: Create the Foundation Lee Benson, CEO of Able Engineering,

Able Aerospace and ETW

4

I remember when we first started trying to sell our products and services internationally. We identified a few customers that we thought had a need for our services, started sending them information and then went on trips to call on them directly. Looking back, we made so many mistakes and wasted a ton of money.

Even though we’ve done very well, we could have grown twice as fast internationally had we asked the right questions up front and shored up our global growth foundation.

Today, our aerospace businesses — Able Engineering and Able Aerospace — provide products to 1,000 customers in 60+ countries.

We have grown from our Mesa headquarters to 400 employees and are currently running at $70-million revenue a year in sales and growing fast. One-third of our business is international and we have our eyes on more than $100 million in international sales growth opportunities.

Getting the initial questions right is important in exporting: • What is the worldwide market for our products and services?

• Who are these potential customers buying from now?

• What price are they currently buying for?

• What are the current suppliers (our future competitors) planning regarding these products over the next couple of years?

• What can we do to change the game and be the best value alternative to these customers we have identified in each region?

• The three C’s: How will local customs, culture and corruption impact our ability to compete?

• What are the regulatory, trade and tax issues to be addressed?

In my experience, most teams within organizations, including senior leadership, waste up to 60 percent of their time in meetings talking about what amounts to be very legitimate reasons for not getting results. And rather than properly identifying and addressing the issues, they say things like, “I don’t want excuses. Stop complaining and get the results!”

Foundational readiness deals with categories such as: • Do we have the right talent in all the seats?

• Do all employees know what’s expected and where they stand 100 percent of the time?

• Are all of the base skills for getting the job done identified and communicated?

• Is there formalized training in place?

• Are all employees aligned to our Mission and Strategy?

• Do we have the facilities, tools and equipment needed to get the results?

• Are our software systems efficient scalable 3X+?

• Is the website optimized?

• Are our business generation processes optimized?

After the critical questions are answered, we ask if all of the foundational readiness areas of our business are solid enough to compete internationally and domestically.

We look at the foundational readiness of every part of our business. We have more than 60 categories for the foundational readiness in business generation alone spread out between

Global Chamber®

marketing, customer service, inside sales, outside sales and business development. Then we rank each category red, yellow or green — and only 30 percent of the categories are considered “green” today. Once all categories are turned green within the next 12 months, we believe our business generation team will produce up to 4X the sales they are producing today!

All of this has to be in balance. We would run into huge problems producing what we sold if our business generation foundational readiness is 100 percent green and operations is only 20 percent green. Looking at foundational readiness in this way would allow you to be much more strategic about where you direct your resources and the order in which you do things.

In my view, any business can compete anywhere on the planet if they work hard and smart enough for long enough. We started as a company offering only one specialized service for one customer. We have grown from that one process into thousands of products, more than a thousand customers and a thriving and fast-growing international business. Get your foundational readiness right and you will move rapidly in the same direction!

Able Engineering & Component Services ableengineering.com

Bullish on Global Phoenix Don Henninger, Principal of DH Advisors and Advisor with the Global Chamber®

I have always been bullish on Phoenix, and from the unique vantage point I enjoyed for 17 years on the publisher’s platform of the Phoenix Business Journal, I saw plenty of evidence to back up the optimism. And now just a few weeks into a new journey, I am even more convinced than ever that this region has the right people with the right spirit and energy that, collectively, will make the rest of the world stand up and take notice.

You may say that the world has already has taken plenty of notice of us for a few years — for the wrong reasons. That our “image” outside state borders has been shaken, stirred and spit up over a laundry list of events and calamities. We certainly have had some challenges on that front. But I don’t plan to spend time dwelling on them.

At the ground level, there are plenty of entrepreneurs who individually are doing the

kind of work that will bring a brighter world view to this region. The Global Chamber is one of the bright lights. The Arizona Commerce Authority and others are strong advocates for global business growth and globalization as well.

The spirit of independence and entrepreneurism has always been one of

Phoenix’s strengths. We’ll build the region into a stronger global economic player, but it won’t happen overnight. We’ll do it one entrepreneur at a time.

And then we’ll turn some global heads for all the right reasons.

DH Advisors DHAdvisors.com

GlobalChamber.org

5

GLOBAL

Foreign Policy, in Phoenix?

K eith Galbut, President of Galbut & Galbut and Chairman of Phoenix Committee on Foreign Relations

Phoenix Committee on Foreign Relations (www.pcfraz.org) invites guest speakers from around the world to discuss

Building Loyal Customers Across Borders Joseph A. Bockerstette, Partner at Business Enterprise Mapping

We’ve mapped business processes in more than 300 enterprises across six continents, deploying more than 25,000 processes and 750,000 process improvements worldwide.

Building customer loyalty across town or across borders comes from understanding what customers want and then building a better Customer Value Package (CVP).

Customer value comes through customers’ perception, not the tangible products or services they receive. This is true all over the world. Delighted customers become faithful users of our services. When you’re global, that’s just a little more complex.

The CVP begins by knowing your value proposition in target markets. This should be relatively consistent country-to-country, and also capture the essential purpose of your company’s existence.

The value proposition defines: Who is the customer. Develop a customer profile by writing a few short sentences describing common traits and customer characteristics.

What is the customer’s problem, want or need. Understand the level of desire a customer

Go South of the Border Doug Bruhnke, CEO and Founder of Global Chamber®

has for your products and services. This desire can be stated as a problem to be solved, such as an injury to be healed, or as a strong want or need, such as wanting the newest gadget or needing an automobile to get to work. The more painful the unsolved problem or the greater the want or need, the more important your company can be to the customer.

How you solve the customer’s problem, or satisfy their want or need. The CVP is the offering you provide to fulfill your company’s purpose. The goal is to provide a CVP that solves your customer’s painful problem or satisfies a want or need in a unique and better way that provides you with a competitive advantage.

The customer’s perception of the benefit of your CVP. Value is perceived in their eyes only. This value can be expressed in many ways, such as reducing waste, increasing revenues, restoring good health, saving time, improving skills, having fun, etc. The customer weighs the benefit of the CVP against the cost and in comparison to other options. Few solutions are desired at any cost.

important foreign policy issues. We hold evening dinners and lunches — including the annual “International State of the State” in October with global and local speakers discussing Arizona’s place in the world. We welcome Arizonans with an international background to attend and apply for membership.

Galbut & Galbut, P.C. galbutlaw.com

Five Questions for Every Company In the pursuit of loyal customers across borders, strive to understand the answers to these five questions: • To what extent are we important to the customer?

• What does the customer want from us?

• How do we disappoint the customer?

• How can we improve the customer’s perception of us?

• What can we do for the customer that others can’t?

Building loyal customers across borders is much like building loyal customers at home. It requires understanding what they value most and then designing and delivering a CVP that gives them what they value.

Phoenix is yet another city divided by railroad tracks. I recommend that you cross the tracks into South Phoenix and visit Comedor Guadalajara, my wife’s and my favorite restaurant in Phoenix. The food is prepared by skilled Mexican chefs who put love and great care into every dish. It shows!

Tasting the chicken enchiladas and Enchiladas de Camaron (green chile and

Comedor Guadalajara

tomatillo shrimp enchiladas) made me exclaim, “So this is what enchiladas

1830 S. Central Ave., Phoenix

are supposed to taste like!” Don’t miss the mango-lime margarita. On the way to growing your global business, enjoy the international culture of food!

6

Global Chamber®

Business Enterprise Mapping businessmapping.com

(602) 253-8299 comedorguadalajara.com

Reauthorize the Export-Import Bank for More Exporting and Jobs Kyrsten Sinema, Congresswoman for Arizona’s 9th District

Congressional gridlock and partisanship is nothing new, but if Congress can’t find a way to reauthorize the Export-Import Bank (Ex-Im Bank) before September 30 there will be serious implications for Arizona businesses — large and small.

The Ex-Im Bank helps Arizona businesses expand their manufacturing capacity and exporting ability, which in turn creates jobs and grows our economy. The Ex-Im Bank fills gaps in private financing, stepping up where the private sector can’t or won’t.

From 2007 to 2014, the Ex-Im Bank supported $658 million in exports from Arizona companies.

One of those companies, MarTek of Tempe, was reluctant to sell its semiconductor equipment to customers in Asia. It was concerned that once the equipment left its building, there was no guarantee it would get paid.

The Ex-Im Bank offered MarTek a solution. The bank issued an insurance policy so that MarTek could make sales and have a guarantee it would be paid. Thanks to the Ex-Im Bank, MarTek now exports to companies in Asia, Europe and the Americas.

Another business in the Valley benefitting from the Ex-Im Bank is Ulthera of Mesa. Ulthera manufactures medical devices, and thanks to the Ex-Im Bank, it was able to access additional debt financing at a critical point in its business. Ulthera is now one of the fastest-growing companies in Arizona, with sales in more than 30 countries outside the U.S.

Join the Global Chamber Doug Bruhnke, CEO and Founder of Global Chamber®

The Global Chamber is launching as a collaborative member organization dedicated to the cross-border growth of companies, careers and communities — with events, seminars, success stories, connections and

The Ex-Im Bank’s charter is set to expire at the end of September. A lapse in authorization would threaten the competitiveness of these and many other Arizona businesses. I co-sponsored legislation to extend the Ex-Im Bank’s authorization and will continue to work with both parties to reauthorize this important investment in American jobs.

Thank you to Arizona Chamber, Arizona Manufacturer’s Council, Arizona Technology Council, Global Chamber, Arizona District Export Council and exporting business leaders across Arizona for their use and support of the Ex-Im Bank. Let’s grow business and jobs!

More information is available at the Ex-Im Coalition website or through Alyssa Marois in my office at the U.S. House of Representatives.

Ex-Im Coalition exportersforexim.com U.S. Congresswoman Kyrsten Sinema sinema.house.gov

Global Chamber® Global Chamber PHX Chairman/CEO Sponsors

President Sponsors

Snell & Wilmer LLP Growth Nation Polsinelli Thunderbird Online

Galbut & Galbut PC Alliance Bank of Arizona DIRTT Environmental Solutions Arizona State University Special Global Advisors

resources to help companies grow starting Nov. 3, 2014.

We believe that as cross-border trade, tourism,

Keith Galbut, Galbut & Galbut PC

education and investment increases, the world gains

Bob Bingham, Bob Bingham Companies

more understanding and forward-leaning progress. To grow globally is to have a positive impact on the lives of

Glenn Williamson, Canada Honorary Consul in Arizona

Hank Marshall, UK Honorary Consul in Arizona

Charles Bruce, Peter Piper Pizza

Melissa Sanderson, Freeport McMoRan

Lee Benson, Able Engineering

Don Henninger, DH Advisors

people all over the world.

Committees

Jump in as we launch at www.globalchamber.org, and follow us on LinkedIn, Facebook and Twitter. Join us as a member, sponsor or global thrill seeker by sending us an email to register for our newsletter and global information.

Global Chamber® globalchamber.org

Community

Globalization

Membership

Programs

Sponsorship

Contacts Founder/President: Doug Bruhnke, doug@globalchamber.org Community Developer: Shiena Amigo, shiena@globalchamber.org Media Contact: Yvonne Luker, yvonne@globalchamber.org

GlobalChamber.org

7

Disruptive or Disturbing Technology?

by Rick Murray, Chief Executive Officer, ASBA

About Us The Arizona Small Business Association (ASBA) is the largest trade association in the state representing 10,000+ member businesses, and over 1/2 million employees in all 15 counties.

ASBA members enjoy access to significant group discounts, countless opportunities to do business with each other, a wide array of insurance products, and active advocacy efforts on public policy issues to protect their businesses. Discover more at www.asba.com.

It is mind-boggling when you stop to think about how far technology has come in the last 20 years.

It is equally mind-boggling to realize how much our entire society depends on technology.

To be competitive today, businesses need to have a responsive website for customers and consumers. If you don’t think that’s true, ask anyone when was the last time they used a phone book. But just having a responsive website isn’t enough to get you noticed. Businesses need to employ a number of technology-related tools in order to stay relevant. Bottom line, if you aren’t using technology effectively in your business, your competition is.

But technology and the race to get ahead has taken a different, more cynical turn in some circles. This includes theuse of drones — unmanned aerial systems — to spy on your business and even employees … all to gain a competitive advantage … and all of which is perfectly legal under today’s laws.

In an article about privacy and drones, M. Ryan Calo, director for Privacy and Robotics at the Center for Internet & Society, says it is inevitable that drones will see widespread domestic use. In

Join ASBA. Be amAZed®

routine use by today’s military, these unmanned aircraft systems threaten to perfect the art of surveillance. Drones are capable of finding or following a specific person. They can fly patterns in search of suspicious activities or hover over a location in wait. Some are as small as birds or insects, others as big as blimps. In addition to high-resolution cameras and microphones, drones

in this issue

can be equipped with thermal imaging and the capacity to intercept wireless communications.

Technology’s Influence on

natural disasters such as flooding, or

Political Campaigns . . . . . . . . . . . . pg. 2

Today, drones have been used to monitor even hot spots in forest fires. Universities are experimenting with drones to

High-Tech Transitions . . . . . . . . . . pg. 3

monitor crops or vineyards. And law enforcement

agencies

are

using

5 Ways You Can Amplify

unmanned aerial vehicles in Border

Your Business with ASBA . . . . . . . pg. 4

Patrol operations.

The private sector has incentives to use drones as well. The media, in particular, could make

Central Arizona 4600 E. Washington Street, Suite 340 Phoenix, AZ 85034 p. 602.306.4000

f. 602.306.4001

widespread use of drones to cover unfolding police activity or traffic stories. Imagine what drones would do for the paparazzi industry. There is very little in our privacy law that would prohibit the use of drones within our borders. Generally speaking, citizens do not enjoy a reasonable expectation of privacy while in public or even in portions of their own property that is visible from a public vantage point. Computers, the Internet, GPS, biometrics, facial recognition — none of

Southern Arizona 4811 E. Grant Road, Suite 262 Tucson, AZ 85712 p. 520.327.0222

DR DELIV ONE ERIES

these developments has created the same change in privacy concerns as the use of drones.

A recent study looked at the potential economic impact of the unmanned aircraft (drone)

f. 520.327.0440

industry. If the FAA integrates drones into the airspace by 2015, the study projects 70,000 new jobs in the U.S. by 2018. By 2025, that number could grow to more than 100,000 jobs.

© 2014 ASBA. A publication of the Arizona Small Business Association. For more information or to join ASBA, please contact us at www.asba.com. Section designed by the Arizona Small Business Association.

So while the economy typically thrives on disruptive technology, many issues need to be addressed so disruptive technology doesn’t develop into disturbing technology.

01

Technology’s Influence on Political Campaigns

by Jerry Bustamante, Sr. VP, Public Poiicy & Southern Arizona, ASBA

The use of the most current technology to influence the outcome of an election is nothing new in modern campaign history.

Successful candidates have usually made better use of new technology over their opponents to win an election. The first candidate in modern history to use technology was Franklin D. Roosevelt, who did a masterful job using radio to win over voters with his gift of gab. John F. Kennedy embraced television and won over voters with his good looks and youthful energy. Ronald Reagan used satellite technology and prerecorded videos to be at every GOP campaign rally and fundraiser across the country.

And in the 2008 Presidential Election, Barack Obama’s election team used digital technology and social media to win over young voters and raise a lot of money through smaller donations.

Despite the rise and influence of technology on political campaigns, the basic methodology and fundamentals of getting elected into office have not changed. As much as the game of football has evolved, blocking and tackling are still the most basic fundamentals in which winning teams excel.

In political campaigns, those basic fundamentals are still about getting a candidate’s message out, raising money, connecting with voters and building support, raising more money and, finally, getting voters to the polls on Election Day to cast their vote.

Technology is helping candidates achieve the basic methodology of getting elected into office faster, more effectively and at a lower expense. Political teams use modern technology to manage large amounts of data on analytics and modeling to identify new voters. These models allow them to accurately target and aggressively recruit a precise voter block which they call a “micro target.”

Digital technology has created a new environment where candidates can now engage voters at a whole different level. This new level of conversation is more dynamic, more personal and is transforming how candidates get their message out. Candidates whouse modern technologies also convey an image that they are in touch with, and represent, a new generation of leadership.

Image is still everything in political campaigns.

As much as today’s technology continues to change how political campaigns are run, television is still the primary source where voters are introduced to and learn about candidates. Once introduced to a candidate, voters are then driven to the candidate’s website, which is the central hub of their political campaign. Even if voters are introduced to a candidate on social media (YouTube, etc.), the next stop is their website. The candidate’s website is where the messaging is expanded, volunteers are mobilized and, most importantly, where contributions are made.

Meanwhile, political teams that pioneer the use of the most state-of-the-art technology still cannot compete with a strong and divisive political climate that can create a “wave election.” A wave election is an election when one of the major parties wins a substantial amount of races over the other party. This usually happens when the American public is very unhappy with the party that controls Congress and/or the White House. We had wave elections in 2006 when Republicans got steamrolled, and in 2010 when Democrats “took a shellacking,” as President Obama put it. So during this election season, I encourage you to sit back, get introduced to the candidates and their message, and identify what creative uses of technology they are using to win you over.

02

ASBA Board of Directors Donna Robinson | Chair VP and Director of Operations, Network Dogs, Inc. Mark Staudohar | Vice Chair President, ACCENT’ Hiring Group Jamie Low, CPCU, CIC | Secretary Owner, Low & Johnson Business Insurance Jacob Gregory, CPA | Treasurer Gainter, Bandler, Reed & Peters, PLC Roy Irwin | Immediate Past Chair Principal, Irwin Insurance & Investments, LLC Bob Cody Director of Technology Consulting, Gate6, Inc. Rick Danford Vice President, BMO Harris Bank Joe Higgins Serial Entrepreneur, Tucson Metro Area Brannon Hampton Performance Improvement Team Member, Arizona Public Service (APS) Ben Himmelstein Attorney, The Frutkin Law Firm, PLC Karen Karr Attorney at Law, Clark Hill Jack Lunsford President, The Lunsford Group, LLC Ryan McMullen Regional Manager, RSI Enterprises Lynn Paige Owner, LM Enterprises Nick Petra President, Strategic Duck Kim Marie Branch-Pettid Owner and CEO, LeTip International John Ragan Chief Officer of Operations, Arizona Chamber of Commerce and Industry Jess Roman VP Commercial Relationship Manager, Johnson Bank Linda Stanfield Owner, Benjamin Franklin Plumber Victoria Trafton Consultant and Trainer, Victoria Trafton Presents Russ Yelton CEO, Pinnacle Transplant Technologies, LLC

High-Tech Transitions

AAA Arizona continually improves services to members

By Valerie Vinyard, AAA Arizona

Some of the most helpful technology operates totally behind the

The second technological boost began in 2007. AAA’s CRM

scenes. AAA Arizona uses technology to increase efficiency and

component of its Connect Suite system displays every relationship

accuracy, and to enhance the member experience in two main areas:

that AAA has with each member in one view.

Roadside Assistance and front-line member interactions.

“It’s critical to see all aspects of the member

With roadside service, it’s no longer an issue when members’ vehicles

relationship in one place,” Lehrer said. “It

break down along a desolate stretch of highway — AAA many times

allows us to help members get the most value

knows exactly where they are.

out of their membership.”

“We have the most sophisticated receiving and dispatch system out

When an employee is speaking with a member,

there, allowing us to seamlessly serve our 54 million AAA members

the system shows the member’s product

nationwide,” said Jim Lehrer, vice president of strategy for AAA

history across the AAA product set, including

Arizona. “It’s a phenomenally sophisticated system that allows us to

insurance, travel and roadside service, along

spot where the member is automatically when members have our AAA

with any offers the member has recently

app on their phones.”

received.

The system then uses vehicle location technology to figure out the

“Members come in with a wide variety of needs: some expressed,

fastest way to get to the member, both by route and by using the closest

and some unexpressed,” Lehrer said. “The more we understand

AAA vehicle.

the whole picture of our relationship, the better we’re able to

“The whole point of it all is to get to our stranded members faster,” said

Jim Lehrer, VP of Strategy for AAA of Arizona

anticipate them.”

Lehrer, noting the average response time this year has improved by 12

For more information on AAA of Arizona partnership with

percent compared to 2013.

ASBA, visit asba.com/AAA.

Ken Blanchard College of Business | College of Education | College of Nursing & Health Sciences | College of Liberal Arts | College of Fine Arts & Production

Online • Campus

A R I Z O N A’ S P R I VAT E U N I V E R S I T Y S I N C E 1 9 4 9 Get started today! 855.287.0174 | www.gcu.edu/inbusiness Grand Canyon University is regionally accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. (800-621-7440; http://www.ncahlc.org/ ).

03

5 Ways You Can Amplify Your Business with ASBA We are always looking for opportunities to help small businesses get the resources they need to put their business ahead of the competition.

Part of that comes with opportunity through membership. ASBA has been involved with the Arizona small business community for more than 40 years, and we have continuously improved and broadened our member benefits and opportunities. Here, we have put together the top five ways you can use ASBA membership to help you promote your business to a statewide audience.

01

Attend networking events

We feel that networking is an intricate part of

Advertise at a low member price

02

getting you and your business out to people on a personal level. It’s important to be ready

Take over ASBA with your message by

when attending a networking event. ASBA’s

marketing your business to our more than

Speed Networking offers a way to get leads

10.000 members and feature your brand as

fast and is a great way to improve on your

a sponsor for the ASBA community. At a

networking

of

discounted price, ASBA will help boost your

90-second intervals that give you just

presence by placing your business on all of

enough time to be relevant and to-the-point

our media outlets on both Web and print

with your contact. This practice will help you

giving you maximum exposure.

commercial.

It

consists

effectively market yourself in a quick relevant way when attending other casual networking events. This is just one of many, other events that you can participate in with ASBA.

Market your events on the ASBA calendar

03

ASBA members have the extended reach to promote their events or webinars to the Arizona community by submitting it through our event form. Every Monday we send out a list of upcoming events to our 10,000+ member businesses and employees. This will increase your reach to others to get them to participate with your event. Creating an event or workshop is an effective way to gather people who are potential clients for your product or service.

04

Publish your story on our news feed

04

ASBA offers a news feed that is updated and distributed every week. ASBA members can contribute their story that will be sent to our entire statewide community. Convey your professional experience by featuring your success stories or strategies that can benefit others.

Post in the ASBA Member Marketplace

05

The ASBA Marketplace is a chance to share your product or service to the Arizona business community. It has been programmed to target your message by industry or region.

The Member Marketplace also allows you to schedule your posts, giving you the ability to schedule an entire year campaign with the click of a button!

The mission of the Arizona Small Business Association is to be THE statewide resource for small business. Business owners join ASBA for the convenience and efficiency of our products and services, to engage and advocate for public policy that ignites small business growth, and to foster a positive economic direction for Arizona powered by entrepreneurism. By bringing thousands of small businesses together, ASBA has created greater value for all members and is proof positive that our mission of supporting small businesses through an active and connected community is working.

For more information, please visit asba.com or call 602.306.4000 or 520.327.0222.

05

Five Questions to Ask Yourself Before Opening Your OWN Small Business Provided by Decibel Blue, an ASBA member It’s been a dream for a long time: opening your own business.

SMALL BUSINESS

You’ve had the ideas scribbled on cocktail napkins, a budget long in the works, and now you finally have the money, the resources and the support to launch what’s long been a passionate idea into your very own business.

OPEN

But before you commit, take a breath and ask yourself these five questions that may save your sanity … and your time and money.

Do you own the name?

Before you bill your company with a name, make sure the one you choose is available. Check trademark and Internet URL domain.

Don’t just Google your preferred business name; even if you find no one claiming it, you’re not safe. The business could have closed or the trademark has been filed but is just not in use.

Does your business benefit others?

Not to be cynical, yes, you should open a business for yourself, but ultimately it’s those who benefit from it, who will use it, who in turn make you successful. If your business can’t be used, either by a niche market or the masses, chances are it won’t be as successful

able to hand the reins off to your employees. When you know every single aspect of your business, no matter how minor, you’re set for success because you appreciate the work that goes into it and have the ability to pass it down.

Do you have a back-up plan?

If your business doesn’t turn out as planned, do you have a strategy to exit or revamp? Do you have money saved for a rainy day?

Adapting a strong attitude for being ready and willing to face anything prepares you to face surprises with a strong fortitude.

as you hope.

Do you speak legalese?

At least get well acquainted with the regulations, licenses and taxes

Are you ready to do everything?

This time it’s yours. You’re the boss and the do-it-all. In the beginning, you have to be ready to tackle a clogged sink, manage printing flyers and coordinate deliveries. While it’s not all glamour and fame at first, you’ll learn every rope there is to learn and eventually be

you will need to acquire and pay to launch your new business. Know your rights, your local community restrictions and retain a lawyer if necessary. You don’t just hang a sign and open a door. There’s more to it than that. And it’s often more complicated than you think.

Develop and grow your business with ASBA's Business Mentoring Program The ASBA Business Mentoring Program

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06

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ASBA Staff Rick Murray Chief Executive Officer Kristen Wilson Chief Operating Officer Jerry Bustamante, Sr. VP, Public Policy + Southern Arizona

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Every month, ASBA gives small business owners and entrepreneurs the chance to network in a fast, fun event called ASBA Speed Networking. Check asba.com/speednetworking for a list of the upcoming sessions. Use the ticket below and attend as our guest!

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HEALTHCARE DECISIONS

A Focus on Open Enrollment for Business

Preparing Our Business Community by Educating Them on Healthcare Options

Section Sponsored by:

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S E P T E M B E R 2014

55

Stepping up

to recognize Arizona businesses

Your business succeeds when you take care of your people.

We succeed when we take care of you.

UnitedHealthcare provides a broad portfolio of health care plans developed with the needs of Arizona businesses in mind. And our plans include services and extras to help businesses and their employees make the most of their time and money. We are proud to be a sponsor of In Business Magazine’s The New Healthcare forum.

Š2014 United HealthCare Services, Inc. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan coverage provided by or through a UnitedHealthcare company. UHCAZ690199-000

HEALTHCARE DECISIONS

Healthcare Is Friend to Business This is as tumultuous a time as I can remember in my more than 35 years of healthcare experience.

National healthcare reform, courtesy of the Affordable Care Act, has brought sweeping changes to the insurance and benefits landscape. Rising costs continue to challenge employers and consumers, who are also forcing needed changes in how we deliver care. And new alliances among health providers, from consolidation to creative new partnerships, are re-making hospital systems before our eyes.

Through all of this transition, it’s more important than ever for healthcare professionals in all facets of the industry to remain focused on what matters most: putting patients first. Patients are the ones navigating complex ACA enrollment guidelines, seeking transparency in hospital billing and battling healthcare bureaucracy at a time when they should be getting (or staying) well.

For all of the well-worn challenges, we have much reason for optimism in Arizona. In this state, healthcare and business leaders teamed up in 2013 to support Governor Brewer in passage of her Medicaid Restoration initiative. More than 200,000 Arizonans have already enrolled in the program this year, and hospitals are saving tens of millions of dollars in costs for care provided to the uninsured.

As we know, healthcare is business — big business! Hospitals alone employ more than 80,000 Arizonans. The importance of the healthcare system to our state’s economy is all the more reason for business and healthcare leaders to stand shoulder to shoulder whenever possible in advocating for sensible policy.

Our state is a national leader in healthcare innovation. New healthcare delivery models, the AHCCCS Medicaid system, rural telemedicine and exciting clinical research aimed at curing disease are just a few examples that stand as testament to what can be achieved when we join forces in identifying sound, collaborative solutions to our shared healthcare challenges.

Through all of the change that looms ahead for the healthcare industry, we pledge that the Arizona Hospital and Healthcare Association and its members will strive to achieve what we call the Triple Aim of healthcare — lower costs, better care and better health. And we will always be mindful to put patients first in this quest.

I invite you to read the important information included with this Open Enrollment Guide to Benefits, and thank In Business Magazine for this important reader service for business owners

Greg Vigdor is president and CEO of the Arizona Hospital and Healthcare Association, the state’s largest and most influential organization representing hospitals, health systems and affiliated organizations across Arizona.

Prior to leading AzHHA, Vigdor was president and CEO of the Washington Health Foundation.

Vigdor earned his Bachelor of Arts from the University of Connecticut, a Masters of Health Administration from the University of Washington, and a Juris Doctor from George Washington University Law School.

and executives.

Greg Vigdor President and CEO Arizona Hospital and Healthcare Association

HEALTHCARE NS DECISollIO ment for Business A Focus on Open Enr

Preparing Our Business Community by on Educating Them s Healthcare Option

The In Business Magazine Healthcare Decision: A Focus on Open Enrollment for Business is a special section meant to remind company owners as to the options that are available in the upcoming individual marketplace open enrollment window — November 15, 2014, to February 15, 2015. Open enrollment timing can happen throughout the year for company policies, but with the national window open during this time, we feel it is important to highlight various opportunities and list those groups offering plans and/ or services. Using healthcare as a tool to build productivity through a healthy work force is an advantage to business regardless of regulation and/or mandates, and it is becoming ever clearer that healthcare will be a focus for business owners and not simply an outsourced option as it has been in the past.

d by: Section Sponsore

INBUSINE SSMAG.COM

S E P T E M B E R 2014

57

HEALTHCARE DECISIONS Associations & Government

Employee Benefits Consultants

Many associations and government healthcare services give specific information on policies, open enrollment dates and services provided that may help employers understand the many options.

Below is a list of local organizations.

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

Arizona Dental Association 3193 N. Drinkwater Blvd., Scottsdale (480) 344-5777 azda.org Arizona Foundation for Medical Care 326 E. Coronado Rd., Phoenix (602) 252-4042 azfmc.com Arizona Health Care Association 1440 E. Missouri Ave., Phoenix (602) 265-5331 azhca.org Arizona Health Care Cost Containment System (AHCCCS) 801 E. Jefferson St., Phoenix (602) 417-4000 azahcccsa.gov Arizona Hospital and Healthcare Association 2800 N. Central Ave., Phoenix (602) 445-4300 azhha.org Arizona Medical Association 810 W. Bethany Home Rd., Phoenix (602) 246-8901 azmed.org Arizona Pharmacy Association 1845 E. Southern Ave., Tempe (480) 838-3385 azpharmacy.org Maricopa County Medical Society 326 E. Coronado Rd., Phoenix (602) 252-2015 mcmsonline.com

S E P T E M B E R 2014

Dental Insurance

Arizona Benefit Consultants, LLC 6245 N. 24th Pkwy., Suite 201, Phoenix (602) 956-5515 abcllc.com

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

Benefits By Design 8631 S. Priest Dr., Tempe (480) 831-7700 benefitsbydesignaz.com

American Dental Plan 1645 E. Bethany Home Rd., Phoenix (602) 265-6677 arizdental.com

Blue Water Benefits Consulting 14301 N. 87th St., Suite 306, Scottsdale (480) 313-0910 employeebenefitcompliance.com

Benefits By Design 8631 S. Priest Dr., Tempe (480) 831-7700 benefitsbydesignaz.com

Breslau Insurance & Benefits Paul Breslau 8362 E. Via de Risa, Scottsdale (602) 692-6832 breslauinsurance.com

Breslau Insurance & Benefits Paul Breslau 8362 E. Via de Risa, Scottsdale (602) 692-6832 breslauinsurance.com

Connect Benefits 1818 E. Southern Ave., Mesa (480) 985-2555 connect-benefits.com

Delta Dental of Arizona 5656 W. Talavi Blvd., Glendale (602) 938-3131 deltadentalaz.com

Employee Benefits Exchange 1745 S. Alma School Rd., Suite 210, Mesa (480) 839-6100 ebxaz.com

JDH Insurance Brokerage Services Heather Wunderle 20403 N. Lake Pleasant Rd., Suite 117-234, Peoria (623) 594-0926 jhdinsurance.com

FBC Services, Inc. 14201 N. 87th St., Scottsdale (602) 277-8477 fbcserv.com Focus Benefits Group 4120 N. 20th St., Suite B, Phoenix (602) 381-9900 focusbenefits.com Health Insurance Express, Inc. Superstition Marketplace 1155 S. Power Rd., Mesa (480) 654-1200 healthinsurance-express.com

58

Horizon Benefits Group 6245 N. 24th Pkwy., Suite 216, Phoenix (602) 957-3755 horizonbenefits.com

Matsock & Associates 2400 E. Arizona Biltmore Circle, Phoenix (602) 955-0200 matsock.com Powers-Leavitt Insurance 14301 N. 87th St., Suite 209, Scottsdale (480) 348-1100 powers-leavitt.com Southwest Dental Group 6601 S. Rural Rd., Tempe (480) 456-0821 southwestdentalgroup.com

»

INBUSINE SSMAG.COM

Advertising Profile

HEALTHCARE DECISIONS

Help Your Employees Get the Health Insurance They Need!

As the community health provider for

Your employees can now be covered by low-

Maricopa County, Maricopa Integrated Health

cost health insurance though Meritus, utilizing

System (MIHS) has created a non-biased

Maricopa Integrated Health System’s hospital,

source of information about the Affordable

ancillary services and physician network.

Care Act (ACA) for small-business owners.

Located in the heart of Phoenix, MIHS has a long legacy of caring for our community. MIHS includes the Maricopa Medical Center, which includes the Arizona Burn Center and the

Maricopa County Special Health Care District

only Trauma Center in Arizona verified by the American College of Surgeons to treat adults

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and children. We also have an outpatient specialty clinic, along with 11 Family Health Centers, located across the Valley to serve you and your family’s healthcare needs.

Meritus and MIHS look forward to serving your healthcare needs as we work together to bring comprehensive healthcare to those who live in Maricopa County.

START TODAY • W e invite you to use our online tool to see if your business qualifies for a health insurance tax credit.

• S tart saving on your heath insurance cost today at Covermeaz.org.

S E P T E M B E R 2014

59

HEALTHCARE DECISIONS

Advertising Profile

Delta Dental of Arizona With 40 years of experience insuring healthy smiles across the state, Delta Dental of Arizona knows what it takes to provide access to great dental care.

Wider Smile Coverage Delta Dental covers 892,000 smiles in Arizona — more than any other dental benefits carrier in the state. With the largest network of dentists locally and nationally, Delta Dental offers a full range of plans to fit any budget and any size company.

We Do Dental Better Delta Dental specializes exclusively in dental coverage. Our local customer service representatives are knowledgeable experts with a background in oral health and dental benefits. Plus, 99.96 percent of claims are paid within 10 business days at an accuracy rate of 99.88 percent.

PLANS

Maximize the Maximum

Brighter Smiles Statewide

With Delta Dental of Arizona’s CheckUp

As a not-for-profit company, Delta Dental of

Plus program, preventive and diagnostic

Arizona is passionate about oral health and its

services are no longer deducted from

importance to generations of families. Since 1997,

members’ annual plan maximums — giving

the company has given back more than $7 million

them more money to use when they need

to the community for oral health promotion and

it most.

dental disease prevention programs.

Delta Dental Premier:

Delta Dental PPO plus Premier:

This traditional fee-for-service plan gives members the freedom to visit the dentist of their choice. It is ideal for employers wanting to offer nationwide access to more than 145,000 dentists.

Delta Dental PPO plus Premier offers the ultimate in flexibility and value by leveraging our two largest national networks. Members save on out-of-pocket costs and employers experience lower claims costs. No other dental carrier offers this level of savings and balance-billing

Delta Dental PPO: Delta Dental PPO is a great choice for employers seeking lower costs without sacrificing dentist choice. Members have access to more than 2,800 dentists in Arizona and 89,500 dentists nationwide.

protection.

Individual & Family: Our Individual & Family plans offer affordable dental coverage for children, families and adults.

Planning on purchasing dental benefits via Healthcare.gov? Delta Dental of Arizona plans are available there, too!

5

Tips for Choosing the Right Dental Plan for Employees

Read all 5 tips at http://goo.gl/0kctSV

60

S E P T E M B E R 2014

CONTACT: Phone: (800) 352-6132 Website: deltadentalaz.com Address: 5 656 W. Talavi Blvd.

Glendale, AZ 85306

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HEALTHCARE DECISIONS Individual & Group Health Insurance Knowing what plan is right for your employees and understanding who is managing that plan can make all the difference for your company. We have included below a list of reputable and experienced insurance companies, many of which you will be familiar with, that can guide your organization to the perfect group or individual plans.

Aetna 4645 E. Cotton Center Blvd., Phoenix (800) 225-3375 aetna.com Amenda Insurance Associates Ltd 15230 N. 75th St., Suite 2031, Scottsdale (480) 284-6400 douglasamenda.com American Family Insurance Multiple Agents Valley-wide (877) 777-4804 amfam.com Benefits By Design 8631 S. Priest Dr., Tempe (480) 831-7700 benefitsbydesignaz.com Blue Cross Blue Shield of Arizona 2444 W. Las Palmaritas Dr., Phoenix (602) 864-4899 azblue.com Bowman & Associates 16042 N. 32nd St., Bldg. A, Phoenix (602) 482-3300 bowmaninsurance.com Breslau Insurance & Benefits Paul Breslau 8362 E. Via de Risa, Scottsdale (602) 692-6832 breslauinsurance.com Cigna 21020 N. 19th Ave., Phoenix (623) 516-7000 cigna.com

INBUSINE SSMAG.COM

Farmers Insurance Group Kara Anspach 15849 N. 71st St., Suite 255, Scottsdale (480) 998-8070 farmersagent.com/kanspach Glass Financial Group 4455 E Camelback Rd., Suite 260D, Phoenix (602) 952-1202 glassfinancialgroup.com HealthNet 1230 W. Washington St., Suite 401, Tempe (800) 289-2818 healthnet.com

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

Arizona Heart Hospital 1930 E. Thomas Rd., Phoenix (602) 532-1000 abrazohealth.com Arrowhead Hospital 18701 N. 67th Ave., Glendale (623) 561-1000 arrowheadhospital.org

Humana Health Insurance of Phoenix 20860 N. Tatum Blvd., Suite 400, Phoenix (480) 515-6400 humana.com

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

JDH Insurance Brokerage Services Heather Wunderle 20403 N. Lake Pleasant Rd., Suite 117-234, Peoria (623) 594-0926

Banner Boswell Medical Center 10401 W. Thunderbird Blvd., Sun City (623) 832-4000 bannerhealth.com/boswell

Powers-Leavitt Insurance Agency Charlene Powers 14301 N. 87th St., Suite 209, Scottsdale (480) 348-1100 powers-leavitt.com Reseco Insurance Advisors Todd Newton 7901 N. 16th St., Suite 100, Phoenix (602) 509-5757 resecoadvisors.com State Farm Arizona Multiple Agents Valley-wide (877) 331-8261 statefarm.com UnitedHealthcare 1 E. Washington St., Suite 1700, Phoenix (800) 985-2356 uhc.com

Banner Del E. Webb Medical Center 14502 W. Meeker Blvd., Sun City West (623) 524-4000 bannerhealth.com Banner Desert Medical Center 1400 S. Dobson Rd., Mesa (480) 412-3000 bannerhealth.com/desert Banner Estrella Medical Center 9201 W. Thomas Rd., Phoenix (623) 327-4000 bannerhealth.com Banner Gateway Medical Center 1900 N. Higley Rd., Gilbert (480) 543-2000 bannerhealth.com Banner Good Samaritan Medical Center 1111 E. McDowell Rd., Phoenix (602) 839-2000 bannerhealth.com

S E P T E M B E R 2014

Âť

61

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

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

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

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

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

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

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

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

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

Paradise Valley Hospital 3929 E. Bell Rd., Phoenix (602) 923-5000 paradisevalleyhospital.com

Cardon Children’s Medical Center 1400 S. Dobson Rd., Mesa (480) 412-5437 bannerhealth.com Chandler Regional Medical Center 1955 W. Frye Rd., Chandler (480) 728-3000 chandlerregional.org Gilbert Hospital 5656 S. Power Rd., Gilbert (480) 984-2000 gilberter.com John C. Lincoln Deer Valley Hospital 19829 N. 27th Ave., Phoenix (623) 879-6100 jcl.com John C. Lincoln North Mountain Hospital 250 E. Dunlap Avenue, Phoenix (602) 943-2381 jcl.com Maricopa Medical Center 2601 E. Roosevelt St., Phoenix (602) 344-5011 mihs.org

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S E P T E M B E R 2014

Phoenix Baptist Hospital 2000 W. Bethany Home Rd., Phoenix (602) 249-0212 phoenixbaptisthospital.com Phoenix Children’s Hospital 1919 E. Thomas Rd., Phoenix (602) 933-1000 phoenixchildrens.com St. Joseph’s Hospital & Medical Center 350 W. Thomas Rd., Phoenix (602) 406-3000 stjosephs-phx.org St. Luke’s Medical Center 1800 E. Van Buren St., Phoenix (602) 251-8100 stlukesmedcenter.com Scottsdale Healthcare Shea Medical Center 9003 E. Shea Blvd., Scottsdale (480) 323-3000 shc.org Scottsdale Healthcare Osborn Medical Center 7400 E. Osborn Rd., Scottsdale (480) 882-4000 shc.org

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

Arrowhead Health Centers Multiple locations (623) 334-4000 arrowheadhealth.com Surgical Specialty Hospital 6501 N. 19th Ave., Phoenix (602) 795-6020 sshaz.com

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

Absolute Health 8360 E. Raintree Dr., Suite 135, Scottsdale (480) 991-9945 absolutehealthaz.com Healthcare Solutions Centers 4831 N. 11th St., Phoenix (602) 424-2101 hcsonsite.com LifeCore Group P.O. Box 10264, Glendale (602) 235-2800 myhealthdividends.com Orchard Medical Consulting Robin Orchard 3033 N. Central Ave., Phoenix (602) 472-4700 orchardmed.com Redirect Health 16222 N. 59th Ave., Suite A-100, Glendale (623) 521-9406 redirecthealth.com INBUSINE SSMAG.COM

HEALTHCARE DECISIONS

Advertising Profile

PLANS

Redirect Health CHANGE YOUR EXPECTATIONS

also lower the controllable E-Mod and the

We’ve been trained that healthcare is too

subsequent workers’ compensation premiums.

complex. We expect annual increases, and we

And that’s where we come in.

expect it to be difficult. What if we told you that it doesn’t have to be?

Every company should be able to expect four things from their health plan: it should satisfy ACA requirements; be affordable and practical; and be used as a tool to create a competitive advantage by attracting and retaining a happy, healthy and productive workforce. It should

THE 3DIRECT™ SYSTEM It starts with a mindset that healthcare can and will be changed, that customer experience can be great while keeping costs low. We need to think differently about healthcare.

Redirect Health helps your company build its own healthcare system so you get exactly what you want. Why use another system that has seen exponential cost increases and waste of resources when you can create your own?

Redirect Health operates your 3Direct™ System with a sound strategy that is focused on getting the best value and the best quality.

CONTACT: Email: info@redirecthealth.com Website: redirecthealth.com Address: 16222 N. 59th Ave. Suite A-100 Glendale, AZ 85306

Ten to fifteen percent of your employees spend 85-90% of your healthcare dollars.

Redirect Health’s proprietary predictive data analytics platform can help predict who that

MEC, Bronze Plus, Silver, Gold & Platinum We offer plans that fit together smartly for every type of business, customized to fit your company’s needs. It is affordable, ACA-compliant, and can give you a competitive advantage that allows you to attract and retain the best and most productive work force — and don’t forget about lower workers’ compensation costs.

services performed, so they can bypass the waste and inefficiency of the existing system while feeling empowered and informed.

Today, you can expect to pay upwards of $15,000 for baby delivery. With Redirect Health’s efficient guidance and navigation, your employees can get that cost as low as $6,000. This cost differential is seen for most procedures and services.

GETTING STARTED

10-15% is, helping us monitor and prepare for

It’s time to think differently about healthcare.

when those costs can occur. Redirect Health

It’s time your employees received the data they

can also deliver pricing and quality data

need so they are empowered to make the right

to your employees before they have costly

decisions and get the best prices.

TAKE CONTROL OF YOUR COMPANY’S HEALTHCARE ONCE & FOR ALL. BUILD YOUR OWN SYSTEM. Save 20% in the first year, with the first 10% savings guaranteed.

With Redirect Health, a significant portion of the excess fees that you paid annually for healthcare coverage can now be redirected to activities that can grow your business. You might call Redirect Health a competitive advantage, but in truth, it’s just smart business.

Visit redirecthealth.com/upload to get started on a customized system for your business.

Better for People. Better for Business. Better for America.

INBUSINE SSMAG.COM

S E P T E M B E R 2014

63

The Arizona Hospital and Healthcare Association is the largest and most influential organization representing hospitals and patients in Arizona.

Our objective is to reform healthcare through

Better Care, Better Health and Lower Cost.

2800 N. Central Avenue, Ste. 1450 Phoenix, AZ 85004-1051 (602) 445-4300 (602) 445-4299 Fax www.azhha.org

INDEX Index by Name

Carter, Ellis, 34

Klein, Eileen, 22

Sanderson, Melissa, 40

Armfield, Elaine, 31

Casey, Danielle, 10

LaHive, Logan, 28

Sinema, Kyrsten, 45

Baker, Tim, 66

Chavez-Langdon, Alana, 41

Lehrer, Jim, 49

Smoldon, Russell, 14

Ballard, Tim, 14

Coppola, R. Craig, 20

LeVault, Mike, 22

Stelnik, Jeff, 18

Beauchamp, Robert, 14

Doctoroff, Tom, 29

Lippman, Steven, 30

Tancer, Bill, 29

Benson, Lee, 42

Downing, Katie, 28

Mackay, Christine, 22

Trengrove, Mark, 12

Bergeron, Cory, 29

Grossman, Joyce, 10

Marshall, Hank, 22

Vigdor, Greg, 57

Bischak, Greg, 39

Hamer, Glenn, 10

Miszewski, Matt, 14

Vinyard, Valerie, 49

Black, Amy, 28

Henninger, Don, 43

Murray, Rick, 47

Waldrup, Stephanie, 18

Bockerstette, Joseph A., 44

Ho, Victor, 28

Myers, Chris, 53

Watson, Sandra, 9, 22

Broome, Barry, 22

Hulsizer, Daniel, 30

Neale-May, Donovan, 16

Young, Ashly, 28

Bruhnke, Doug, 39

Jabjiniak, William, 22

Parker, Louise, 12

Bustamante, Jerry, 48

Kamps, Colette, 34

Rounds, Jim, 22

Campbell, Bob, 18

Kinsinger, Paul, 41

Salcido, Gabe, 31

Chandler Chamber of Commerce, 32

KTAR News Talk 92.3, 38

Polsinelli, 43

AAA Arizona, 49

Chandler, City of, 22

La Piazza Al Forno, 37

Redirect Health, 63

Able Aerospace, 42

Chief Marketing Officer Council, 16

Lee & Associates Arizona, 20

Scottsdale Area Chamber of Commerce, 33

Able Engineering, 42

Chloe’s Corner, 28

Lincoln Motor Company, 36

Scottsdale, City of, 10

Ahwatukee Foothills Chamber of

Comedor Guadalajara, 44

Local First Arizona, 32

Snell & Wilmer, 7

Conquest Training Systems, 4

LocalWork.com, 33

SRP, 27, 31

Alerus Financial, 5

CopperPoint, 2

Maricopa Association of

Surprise Regional

Alliance Bank of Arizona, 46

Cox Business, 15

Arizona Association for

Dapper Gentlemen, 12

Maricopa Integrated Health System, 59

Tempe Chamber of Commerce, 33

Decibel Blue, 52

Mesa, City of, 22

Thunderbird School of Global

Delta Dental of Arizona, 60

Mobiata, 36

DH Advisors, 43

MOD Pizza, 37

Translate Your World International, 12

Digital Realty, 14

National Association of Women

U.S. Department of State, 40

Index by Company

Commerce, 32

Economic Development, 10, 32 Arizona Board of Regents, 22 Arizona Chamber of Commerce and Industry, 10, 32 Arizona Commerce Authority, 9, 12, 22 Arizona Diamondbacks, 11 Arizona Hispanic Chamber of Commerce, 32 Arizona Hospital & Healthcare Association, 54, 57, 64 Arizona Small Business Association, 31, 47 Arizona Technology Council, 32 Association for Corporate Growth – Arizona, 32 Automatik, 12 B3 Strategies, 14 Banner Health, 68 Belly, 28 Better Business Bureau, 12 Blade, 12 Blue Cross Blue Shield of Arizona, 18, 35 Bluenose Analytics, 12 BodeTree, 53 Bookmans Entertainment Exchange, 28 Buchanan Street Partners, 14 Burch & Cracchiolo, P.A., 30 Business Enterprise Mapping, 44 C3 Kitchen, 28 Carter Law Group, PC, 34 Central Phoenix Women, 32

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Driver Provider, The, 13 East Valley Women, 32 Economic Club of Phoenix, 31, 32 Elliott D. Pollack & Company, 22 Employee Benefits International, 18 ETW, 42 Evernote Corp., 36 Expensify, Inc., 36 Mobiata LLC, 36 Ex-Im Coalition, 45 Federal Pizza, 37

Chamber of Commerce, 33

Governments, 22, 41

Management, 41

Business Owners – Phoenix, 32

UnitedHealthcare, 14, 56 Warner Angle Hallman Jackson &

Organization of Women in International Trade – Phoenix, 33

Formanek PLC, 30

Paul Martin’s American Grill, 37

West Valley Women, 33

Phoenix Children’s Hospital, 3, 18

Winners at Work Pty. Ltd., 66

Phoenix Convention Center, 21

Women of Scottsdale, 33

Phoenix Philanthropy

Youngtown, City of, 22

Group, The, 13, 34

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Glendale Convention & Visitors Bureau, 21 Global Chamber, 39 Grand Canyon University, 49 Greater Phoenix Chamber of Commerce, 32 Greater Phoenix Economic Council, 22 Henry and Horne, LLP, 34 Jimmy and Joe’s Pizzeria, 28 JLL, 67

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ROUNDTABLE

A CANDID FORUM

End the Performance Review Conversation is a new approach to appraising employee performance

by Dr. Tim Baker AS A BUSINESS consultant with organizations, both big and small, I regularly hear a litany of complaints about performance reviews or appraisals than range from “The formality of the appraisal stifles discussion” to “They are too infrequent” to “They are rarely followed up.”

Please don’t get me wrong — I am not against performance feedback. In fact, I believe it is one of the most important things a manager should be doing. But in place of a formal review, I suggest an alternative approach called the Five Conversations Framework. It is easy to implement, constructive and not bureaucratic.

Essentially, it is based on five conversations, each lasting about 15 minutes, between the manager and his or her employees.

Climate Review Conversation

A climate review is about determining the current atmosphere in a particular workplace.

It is mainly concerned with employees’ job satisfaction, morale and communication.

Although people’s opinion about these matters can fluctuate over the course of a year, it is important to take a snapshot of the business occasionally. This assists managers to get a handle on the current state of the business.

Strengths and Talents Conversation

Most performance appraisals are fixated on what is going wrong; in other words, it focuses on the weaknesses and sometimes neglects to discuss particular strengths and talents. Tom Rath in the No. 1 Wall Street Journal bestseller Strengths Finder 2.0 states, “Society’s relentless focus on people’s shortcomings has turned into a global obsession. What’s more, we have discovered that people have several times more potential for growth when they invest

energy in developing their strengths instead of correcting their deficiencies.” Apart from being a far more positive place to start discussing performance, as Roth points out, building upon strengths has a higher payoff than working on overcoming weaknesses.

This does not, however, mean we shouldn’t discuss deficiencies.

Opportunities for Growth Conversation

This conversation focuses on strategies for improved performance from the employee’s individual perspective. It provides the team member with an opportunity to consider how he may improve his own work performance.

The manager is able to use this conversation to gain a common perspective on areas for improved performance.

Learning and Development Conversation

The learning and development conversation is designed to discuss the learning needs of the employee now and in the future. It may include formal opportunities such as attendance at courses, programs and seminars.

Informal opportunities may include skill development within the business, or further coaching and mentoring.

Progress is easier to track. Rotating through each of the five conversations twice over the course of a year for 10 short, sharp conversations annually yields a regular, ongoing dialogue, not a once- or twice-a-year situation.

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Innovation and Continuous Improvement Conversation

Conversations around innovation and continuous improvement are about practical ways and means of improving both the employee’s own efficiency and effectiveness and that of the business in general. It focuses on ideas for developing new and improved working arrangements for the individual and organization.

We have implemented the Five Conversations Framework in organizations that range from a law firm to a disability services government department. I have found that they are instantly interested in this new approach. What employers and managers like about it, amongst other things, is the opportunity to get closer to their employees — to break down the “them and us” approach, if you like. And progress is easier to track. Rotating through each of the five conversations twice over the course of a year for 10 short, sharp conversations annually yields a regular, ongoing dialogue, not a onceor twice-a-year situation.

Winners at Work Pty. Ltd. winnersatwork.com.au

Dr. Tim Baker is the author of The End of the Performance Review: A New Approach to Appraising Employee Performance. He holds a Doctor of Education degree specializing in organizational culture and is an international consultant and managing director of Winners at Work Pty. Ltd., which specializes in assisting organizations develop productive workplace culture.

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