September/October 2015 Issue of In Business Magazine

SEPT • OCT 2015

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

Workplace Healthy Making ‘Employee Experience’ Impact Your Business

AZ’s Hurdles in Manufacturing & Logistics Disruption as

Growth Strategy

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SEPTEMBER • OCTOBER 2015 COVER STORY

22

Workplace Healthy: Making ‘Employee Experience’ Impact Your Business

Employees do their best for employers who do their best for their workforce. An environment that fosters a healthy attitude results in stronger employee engagement and, ultimately, productivity. Business leaders shared their expertise with RaeAnne Marsh on company culture, employee benefits, the physical space, and health and wellness programs.

FEATURE

28 PARTNER SECTIONS

DEPARTMENTS

Disruptive Innovation: The Quintessential David and Goliath Story

19

John Lines, Surplus Asset Management founder, evolves auction expertise into new markets.

Paul Paetz discusses disruption theory in business and how little startups can change the course of an industry.

20

29

Guest Editor

R. Allan Allford, president and CEO of Delta Dental of Arizona, introduces the “Healthcare” issue.

37

Global Chamber

10

Feedback

Noted business and community leaders Bernie Clark, Ed Colby and Tomas Gorny respond to In Business Magazine’s burning business question of the month.

11

45

Arizona Small Business Association

SPECIAL SECTION

Briefs

“Digital Communication,” “Global Opportunities Measured,” “New Hotel Revitalizes Phoenix Historic Landmark,” “Global Opportunities Seen,” “Chandler Vision,” “New Airpark Office,” “Real Estate Record,” “Amazon Develops Onsite Career Classroom” and “Data Centers Becoming Important Utility”

15

Healthcare

“Communication Key in Care,” “Advancing Safety in Medical Imagery” and “Bonus Payments Help UnitedHealthcare Promote Value-Based Care”

53

Healthcare Decisions

2015 Open Enrollment & Healthcare Guide for Business

SEPT. OCT. 20 1 5

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INBUSINESSMAG.COM

18

By the Numbers

Manufacturing and logistics report shows Arizona’s strengths and weaknesses.

Books

New releases give fresh insights on business thinking.

30

Nonprofit

Professional interim management can benefit nonprofits during search to replace the organization’s leadership.

34

Assets

2015 Land Rover Discovery Sport Plus: The case for hand-held protection

36

Power Lunch

The Vig Plus: Stand-out pizzas

Technology

“Thwart Internet Hackers with Employee Firewall” and “Distracted Driving Is an Employer Issue”

16

Legal

Employee risk assessment may be in order under the NLRB’s new labor rules.

DEPARTMENTS

9

From the Top

66

Roundtable

Money, gamification … and employee motivation.

ON THE AGENDA

31

Spotlight

‘A Celebration of Leadership’ — ACG-Arizona ‘Sales Management’ — Enterprise Bank & Trust

32

Calendar

Business events throughout the Valley

According to a study this year by WalletHub, if obesity trends continue at their current rate, loss of employee productivity could increase by $580 billion per year by 2030 — and this on top of treatment costs that could rise as much a $66 billion a year. wallethub.com

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We apologize for, but will not be bound by or responsible for, any errors in our advertisements. Valid in the US only. © Inter IKEA Systems B.V. 2015

Sept. • Oct. 2015 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.

GROWING YOUR BUSINESS? We’re here for you.

PARTNER ORGANIZATIONS Rick Murray, CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com

When you’re looking for a commercial real estate loan, choose a local lender with a personalized approach.

• No application fees or prepayment penalties 1 • Purchase or refinance up to $5,000,000 2 • Owner or non-owner-occupied 3

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• Competitive fixed rates • Terms of 5, 10 or 15 years • Amortizations of 15 or 20 years

Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org

Call to speak with a business relationship manager.

602-336-6721 | www.desertschools.org/business Federally Insured by

Nancy Sanders, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org

Equal Housing Lender

Eric Larson, Interim President & CEO Scottsdale Area Chamber of Commerce (480) 355-2700 www.scottsdalechamber.com

Open to sole proprietorships, partnerships (including LLPs), LLCs, corporations, trusts and non-profit entities that have been in existence for three years. Start-up and business acquisition transactions are ineligible. Property must be located in Arizona. First or second lien position. Subject to credit approval. 1 Approximate 1% origination fee.

2 Minimum loan amount $250,000; maximum 80% loan-to-value. 3 Owner-occupied applies if the business member or affiliate occupies not less than 51% of the usable, net rentable space; non-owner-occupied applies if the tenant occupies 51% or greater of the usable, net rentable space.

Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities.

The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.

ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com Arizona Hispanic Chamber of Commerce azhcc.com The Black Chamber of Arizona phoenixblackchamber.com Chandler Chamber of Commerce chandlerchamber.com Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com Phoenix Metro Chamber of Commerce phoenixmetrochamber.com Surprise Regional Chamber of Commerce surpriseregionalchamber.com WESTMARC westmarc.org

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Sept 2015 Sept.

• Oct. 2015

VOL. 6, NO. 9

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers Anne Grady

Mike Hunter Cassandra Larsen Paul Paetz Deborah Whitehurst ADVERTISING

Operations Louise Ferrari

Business Development Louise Ferrari

Craig Jeffries Steve Kulick Maria Mabek Sara May Kelly Richards Cami Shore Brandon Short 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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SEPT. • OCT. 2015

President & CEO Rick McCartney

Editorial Director RaeAnne Marsh

Senior Art Director Benjamin Little

Financial Manager Donna C. Mitchell, CPA

Office Manager Brittany Longfield

Accounting Manager Todd Juhl

Corporate Offices 4455 E. Camelback Road

Building C, Suite 135 Phoenix, AZ 85018 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com

www.inmediacompany.com Vol. 6, 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. © 2015 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.

INBUSINESSMAG.COM

R. ALLAN ALLFORD, DELTA DENTAL OF ARIZONA

Work/Health Dynamic

R. Allan Allford is the president/ CEO of Delta Dental of Arizona, the leading dental benefits insurance company in the state.

Allford is also the president of the charitable Delta Dental of Arizona Foundation, which has given more than $7 million in community grants for oral health education and dental disease prevention programs since 1997. In addition, Allford serves on several boards and professional associations within the community. He is a proud graduate of the University of Kansas.

Workplace health is a complicated issue, and employers face a multitude of responsibilities. One aspect, of course, is the healthcare mandate expressly imposed by the Patient Protection and Affordable Care Act. In addition to physical well-being is the more subjective psychological wellbeing — much of which derives from the workplace environment created by company culture.

And it’s a bottom-line issue as well, as studies have proven that a healthy employee is more productive. One such study, referenced in former U.S. Surgeon General Dr. David Satcher’s report Oral Health in America, found that employed adults lose more than 164 million hours of work each year due to dental disease or dental visits. That’s no small number.

Yet often secondary in the discussion of corporate-sponsored health and wellness benefits is the significance of one’s oral health on overall health. Dentists can detect the signs and symptoms of more than 120 diseases in your mouth, including cancer, diabetes and heart disease — a sure sign that good dental health is an important part of our well-being.

While this month’s In Business Magazine doesn’t delve into that mouth-body connection — you can find that on Delta Dental of Arizona’s blog — it does look at the many facets employers must consider when evaluating wellness in the workplace, whether physiological, psychological or legal.

Recognizing the value of a healthy workplace as a factor in enabling a business to attract and retain the talent it needs to be successful, this issue’s cover story explores what a healthy workplace looks like. In Business Magazine editor RaeAnne Marsh draws on the expertise of professionals in our community and breaks the discussion into four areas: employee benefits, the physical workspace, company culture, and wellness and health plans. She shares tools for creating the best environment.

Honing in on a related topic, Anne Grady addresses this issue’s “Roundtable” feature to discussing alternatives to money as the prime employee motivator. And changes in labor relations between employer and employee are covered in the “Legal” feature, continuing the explanation begun last month of significant elements employers should be aware of.

In Business Magazine’s signature monthly editorial coverage of a broad range of business topics includes an in-depth study of manufacturing in Arizona and our state’s logistical strengths and weaknesses relative to the rest of the country.

In addition, In Business Magazine has updated its special “Open Enrollment Guide” for the second edition of this valuable resource to further inform individual employees and employers as to available plans.

I’m pleased to help bring you this September/October issue of In Business Magazine and hope you enjoy the read.

Sincerely,

R. Allan Allford President and Chief Executive Officer Delta Dental of Arizona

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

Health-Wise Productivity is a key factor in the success of any company,

specifically, for informing us and our readers on oral health as

and workplace health is the foundation to giving employees

a measure of good health and the importance of including oral

opportunity to succeed. In this issue, we discuss more than simply

health as part of a general health focus. We also want to thank

the healthcare side of things. Our cover story looks at culture,

the many healthcare companies that have, for this second year,

benefits and the comprehensive efforts company bosses are

participated in our Healthcare Decisions guide. Opportunity for

making to enhance the overall employee experience. This is a key

individuals and for employers comes during open enrollment, and

issue in gaining top talent, but also crucial to retaining talent.

In Business Magazine is pleased to help them focus on making

We want to thank Allan Allford for guiding this issue and,

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

strong decisions.

—Rick McCartney, Publisher

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

9

SEPT. OCT. 20 1 5

INBUSINESSMAG.COM

VALLEY LEADERS SOUND OFF

Q:

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

What are the key elements of company culture for your business?

And how do you foster this culture?

BERNIE CLARK

ED COLBY

TOMAS GORNY

Executive Vice President Charles Schwab Sector: Financial

Assistant Vice President, Human Resources Nautilus Insurance Group Sector: Insurance

Chief Executive Officer Nextiva Sector: Communications

For more than 40 years, Schwab has been challenging the status quo to help investors and those who serve them transform lives and realize dreams. Every decision we make is based on seeing things through the eyes of our clients. To do that, we have to truly care about those we serve — and each other. And we do.

Our culture of service makes Schwab a special place to work, where employees can, literally, change people’s lives.

Schwabbies, as we’re known, are forward-thinking, optimistic and passionate. We value transparency and integrity, which are at the heart of all we do for our clients and one another.

Our people-first culture starts at the top. We know that when our employees are at their best, so is Schwab. That’s why we support the well-being of our employees and their families, and the communities where we live and work.

We offer competitive compensation and world-class tools and advice to help employees plan their financial futures. Most importantly, we have a culture where diversity is celebrated and everyone can excel.

Charles Schwab schwab.com

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

SEPT. OCT. 20 1 5

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INBUSINESSMAG.COM

Bernie Clark is a member of Charles Schwab’s Executive Committee and leads Advisor Services, which serves independent Registered Investment Advisors (RIAs) across the United States. Clark oversees custody, practice management and consulting services to nearly 7,000 independent investment advisory firms with $1.26 trillion under management.

An industry leader, Clark has been named by Investment Advisor magazine as one of the 25 most influential people in the industry.

At Nautilus, we have a passion for our business, relationships with our business partners, customer service excellence (externally and internally), the health and development of our employees, and giving back to the community. In order to foster a culture that embodies that all-encompassing passion, we do our best to “live” it every day.

We know that, to be the best in our business niche, we need to work smarter, invest in our employees and our systems, and help each other to succeed. With the spirit of collaboration, open communication, creative thinking, respect and support for each other, our efforts ensure our core values continue to drive our success as a company.

The health and development of our employees is embraced through continuing educational opportunities, an in-house gym, and annual health fairs.

This is all brought home and made better through the sincere and generous “pay it forward” charitable acts and donations of our employees, our company and our parent company.

Nautilus Insurance Group nautilusinsgroup.com Colby began his career with Nautilus Insurance Group in March of 2004 and became assistant vice president of Human Resources in 2009.

He has more than 15 years of human resource experience and earned his PHR designation in 2006. He is an active member of Society for Human Resource Management of Greater Phoenix, and holds a Bachelor of Business Administration in personnel management.

At Nextiva, we believe in building a company culture centered on appreciation, recognition and trust. It is also important to our success to create an environment where we get to have fun and enjoy the work that we do every day.

Cultivating our culture takes time and consistent practice. We achieve this through creating meaningful relationships with new employees in our new hire program, which includes “culture” training.

While teaching new team members about Nextiva’s personality, we encourage individuals to find ways that they can make unique contributions, drawing upon their own personal strengths. We also produce an internal news show every week, called “NexTV,” where we recognize individuals or departments, share product news or announcements, and incorporate skits that are simply meant to make people laugh.

“Our team is our greatest asset and a key driver in our rapid growth and success.

We work hard every day to create an environment where each team member feels valued, has fun and can grow,” says Yaniv Masjedi, our VP of marketing.

Nextiva nextiva.com Tomas Gorny is the CEO of Nextiva. He has a 15-year track record of investing in, building and leading high-performing technology and Internet companies. His entrepreneurial background includes launching Trendsetter and IPOWER. In 2007, he orchestrated the merger between IPOWER and Endurance International Group. He creates the vision while managing the business strategy for Nextiva. He can also frequently be found rolling up his sleeves in the day-to-day activities.

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

QUICK AND TO THE POINT

BYTES

BY MIKE HUNTER

Digital Communication Web chat, social media channels and mobile communications are quickly taking over the role of traditional telephone contact in the field of customer service. In order to enable organizations to provide the best possible services for their customers via all channels of communication, European market leader Workstreampeople is launching a new version of Anywhere365. This platform offers intelligent communication and dialogue management tools, onpremise or from the cloud, for organizations of any size. workstreampeople.com

Global Opportunities Measured Exporting represents a $928-billion opportunity for U.S. midsized companies over the next 10 years, yet only 17 percent of middle market firms currently trade internationally. What if exporting wasn’t as risky as rumored? Or as difficult to get started? What if a business knew it could sell profitably and get paid?

American Express Grow Global is a new program that provides valuable resources for U.S. middle market companies to help assess the risks and rewards at several stages of their exporting journey.

LOCAL VS. NATIONAL ACTIVITY Number

Total U.S.

Total number

of middle

Share of

of middle

market firms

exporting

market firms

that export

firms

136,603

7,066

5%

Arizona

2,051

54

3%

Phoenix

1,466

42

3%

http://bitly.com/amex-grow-global

New Hotel Revitalizes Phoenix Historic Landmark

Preserving a Phoenix landmark and providing a mid-scale hotel option to Downtown Phoenix, CSM Corporation is renovating the long-vacant Professional Building at Monroe Street and Central Avenue to a Hilton Garden Inn. From the outside, the hotel will look nearly identical to its predecessor, with its striking limestone façade, grand entryway and Art Deco architecture. Inside, the hotel’s common areas will feature the same interior style that made it famous in its heyday, from its 24-foot ceilings and ornamental bronze elevators to intricate wrought ironwork, rich colors and fully restored interior columns. The most striking feature of the building’s interior, the former bank lobby, will be restored to its original splendor and will serve as the main reception and gathering place for hotel guests.

“The city and the neighbors have been welcoming,” says Michelle Davis, general manager of the hotel, who expects to begin welcoming guests in December. “Everyone I’ve spoken to about the project is thankful that someone is doing something with such a beautiful building.” Considered an important historic site in downtown Phoenix, the Professional Building opened in Downtown Phoenix in 1932. It housed medical offices and Valley National Bank for many years, and was listed on the National Register of Historic Places on Jan. 8, 1993, but fell into disrepair after sitting vacant for more than 20 years.

“Redevelopment of historic properties is a real passion of our owner,” says Jim Macchitelli, CSM’s director of marketing and digital services, noting CSM has a demonstrated history of takin advantage of such opportunities to give guests a more unique feel to standard brands.

CSM, which owns and operates 40 hotels nationwide, has redeveloped other historic properties.

Taking a 19th-century train depot, it transformed one end to the Renaissance Minneapolis Hotel and the other to a Residence Inn, with a water park in between. “The actual depot is an ice-skating rink, and hosts corporate events in the off-season,” Macchitelli says. CSM also operates the Residence Inn Milwaukee, a renovation of the 1920’s Gimbels Building.

With economic conditions in Phoenix improving, the company saw an opportunity to help fill in the hospitality choices with a mid-scale brand, according to Davis. And, in addition to employment at the hotel itself, “we will lease out retail space, therefore bringing more jobs in Downtown —RaeAnne Marsh Phoenix,” she says.

CSM Corporation csmcorp.net

VISUALIZE

Global Opportunities Seen Videos made available through the Global Chamber are helping businesspeople understand and become more informed on areas of global opportunity. Through a series of videos — including those by Alisa Jost, chairperson for Arizona Consular Corps and Honorary Consul from Switzerland

Photo courtesy of CSM Corporation

for Arizona — the chamber offers what are being dubbed “must-see” videos on manufacturing, retail, healthcare and more. Subjects include global entrepreneurship, challenges in global manufacturing, international healthcare and retail on a global stage. globalchamber.org/video-gallery

The Arizona State Capitol Building, built at the turn of the 20th century to house Arizona’s Territorial government and now housing the Arizona Capitol Museum, was added to the National Register of Historic Places in 1974.

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BY RAEANNE MARSH

QUICK AND TO THE POINT

Chandler Vision International real estate firm Hines is developing Chandler Viridian to include a central plaza with 240,000 square feet of Class A office space, a luxury multifamily complex, retail options and a pedestrian promenade to the Chandler Fashion Center. Concord Hospitality Enterprises Company of Raleigh, North Carolina, recently purchased the hotel pad to develop a Cambria Hotels & Suites. And Alliance Residential Company of Phoenix has broken ground on the 335-unit, Class A multifamily property called Broadstone Fashion Center. chandlerviridian.com

New Airpark Office

Data Centers Becoming Important Utility

The “cloud” that has become a ubiquitous presence in contemporary life actually resides on the ground — this is a data center (not to be confused with a call center, which is low-wage employment generally of a customer-service nature). “Every kind of business and service needs to be able to store data and transmit it at high speed,” observes Russell Smoldon, CEO of B3 Strategies and a founding member of the Arizona Data Center Coalition. “As computers continue to get smaller, the work goes someplace else.” The need for data centers will continue to increase, Smoldon believes, calling them the “newest utility.”

The industry has grown by about $1 billion in the past two years, and Smoldon attributes that primarily to a tax incentive program passed by the Arizona legislature in 2013. The legislation was a major effort of the data center coalition after its launch in 2012; educating people on the difference between data centers and call centers is another focus of the organization.

In addition to helping raise the area’s economic level with well-paying technical jobs (average salary $75,000), data centers are

Scottsdale-based developer SAXA, Inc. and Caliber Companies recently broke ground on the new Bahia 101 Class-A Building, the first commercial Class-A building to be developed in North Scottsdale in more than five years.

Planned for 40,000 square feet of space, the new threestory commercial office building at Loop 101 near Bell Road is the only Class-A office scheduled for construction in Scottsdale Airpark for 3Q and 4Q 2015. Expected building completion date is March 2016. bahia101.com

Real Estate Record Phoenix-based ViaWest Group recently purchased the Biltmore Financial Center, three Class A office buildings totaling approximately 635,000 square feet at the northwest corner of 24th Street and Camelback in Phoenix, for $163.1 million. The transaction is the largest multitenant office sale in the Phoenix area since 2007 and third-largest sale ever in the metropolitan area, according to CoStar’s records. “The sale is a good barometer for the market overall,” says CBRE’s Jim Fijan, who represented seller Invesco Real Estate. viawestgroup.com

SEPT. OCT. 20 1 5

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INBUSINESSMAG.COM

constantly in need of such skilled tradespeople as electricians and plumber for the never-ending upgrades to their facilities. Plus the one-off jobs, says Smoldon, pointing out that the Arizona Technology Council members include companies, from marketing to janitorial services, that focus on the specialized needs of data centers.

Advantages Phoenix offers as a data center location include a stable climate, dry heat — which allows data centers to use evaporative cooling nearly half of the year — and reliable power. “Phoenix has some of the best fiber connectivity in the country,” Smoldon says, observing that Wi-Fi has to be connected to something physical.

Observing, “Techies like to be with their stuff,” Smoldon notes companies will have office space in the data center — including companies whose physical presence is out of the area. He believes it wouldn’t take much to get them here. “If we can get part of their business here, I think we can convince them to locate the rest of it here,” he says.

Arizona Data Center Coalition arizonadatacentercoalition.org

Amazon Develops Onsite Career Classroom

Amazon has augmented its employee perquisite Career Choice Program with an onsite classroom at one of its Phoenix fulfillment centers. The program, launched in 2012, enables full-time, hourly employees to pursue their interest in furthering their career. It is designed to provide resources for building skills needed for today’s most in-demand and well-paying careers, per annually updated data from U.S. Bureau of Labor Statistics, explains Amazon spokesperson Ashley Robinson. Fields may be in transportation logistics, accounting, engineering or others that could help the employee advance within the company, but employees are not limited to such choices. Even though employees may ultimately choose to leave the company, “it’s a great way for us to draw the talent that helps us serve our customers,” Robinson says.

The new, dedicated Career Choice Classroom has one full wall of window, and Robinson says the visibility has made a huge difference to the

program. “People see other associates taking classes and learning from each other, doing study groups together, and therefore there’s more interest in the program,” she says.

The onsite program launched in 2014, and the dedicated classroom opened this past May. As the first one completed, the Phoenix classroom provided a template for the seven other classrooms Amazon has opened in fulfillment centers throughout the United States. “Our partnership with Maricopa Corporate Community College is the backbone of the program,” Robinson says, noting the importance of having educators onsite who talk with the associates about how to pursue continuing education, who set up recruitment fairs, and who provide guidance regarding what classes to offer the next semester.

Amazon Fulfillment – Career Choice Program amazonfulfillmentcareers.com

Data Centers “are great for infill, without a great impact on the neighborhood,” says Russell Smoldon, CEO of B3 Strategies and a founding member of the Arizona Data Center Coalition, pointing out there’s a data center in Park Central Mall that few people even know about.

Photos courtesy of Hines, Caliber Companies and ViaWest Group (left, top to bottom)

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LOOKING FOR A COST-EFFECTIVE WAY TO SAVE ON YOUR ENERGY BILL? Think SRP lighting rebates. Here’s a smart way to save: SRP Standard Business Solutions for new, energy-efficient lighting and occupancy sensors. Lighting can account for as much as 40% of your electric bill. Get that cost down. With SRP rebates, upgrades can pay for themselves in as little as one year and you’ll pocket the additional savings for years to come.

So stop looking and start saving with SRP. Find rebates for lighting and more at savewithsrpbiz.com.

BY RAEANNE MARSH

INNOVATIONS FOR BUSINESS

Distracted Driving Is an Employer Issue

Distracted driving is a potential minefield for employers, due to a liability issue that many misunderstand. “A common mistake is to think, ‘If it’s the driver’s equipment, we don’t have any responsibility.’ That is not so,” says David Lewis, CEO of HR company OperationsInc, noting, “The courts have emphatically said that if a person is performing work for your firm, and at the time they are doing so, they violate the law or get in an accident that’s caused by their action or not use of a hands-free device, the employer bears some level of responsibility.”

Putting aside any discussion of moral responsibility, Lewis advises employers to put policies in place to reinforce good behavior while driving. There should be verbiage in the employer handbook to the point that “an employee should at no time operate a motor vehicle and use a cell phone without a hands-free device, and at no time text or email.” And he recommends also copying that page as its own document, for the employee to sign to acknowledge he has read it and is aware of it.

Many employers implicitly expect employees to be as always-connected as today’s mobile

devices have made possible, with policies that dictate customers should not wait more than “x” number of minutes for a response. And, of course, sales is often in a time crucible. “The downside is that the advent of the technology has created a change in how we do business; it’s created a change in expectations on response times and things of that nature, and it’s created a very dangerous environment that’s going to lead to a continued increase in the number of accidents and number of deaths,” Lewis says, emphasizing that his professional focus is on protecting clients from being on the wrong side of one of those law suits.

There is no financial cap on such law suits, and, in fact, they are overwhelmingly resolved out of court, Lewis notes there is still cost to the employer for legal services — and an effect on perceived value in public relations as well as attraction and retention of employees, who may not want to be part of “a company that’s been cited as being irresponsible or insensitive as it relates to proper use of telephones.”

OperationsInc operationsinc.com

Thwart Internet Hackers with Employee Firewall

There has been a lot of investment in corporate IT security, especially infrastructure, observes Felix Odigie, CEO of Inspired eLearning, and it has paid off — networks are more secure. But with hackers finding it more difficult to hack the network, they have turned their attention to the weakest link: humans. “It’s easier to hack users of the network — employees, vendors, third parties — than the network,” he notes. He designed Inspired eLearning programs to make the human the firewall.

Training addresses the need of employees to be more security conscious. It covers simple tactics and recurring behavior that make it harder for employees to fall prey to malicious intent. In addition to being customizable to individual skills, the courses are customized to specific industry sectors. Financial businesses, in addition to regulatory issue, deal with anti-money-laundering; healthcare, with HIPAA compliance. Other sectorspecific programs are geared to manufacturing, and to businesses that process credit cards.

The courses are designed for adaptive learning, including a threat profile assessment so the organization can gear the training to individual employees. “Some employees may be good at passwords, others at privacy or emails,” Odigie says. “The courses reinforce what they already know and train them on what they’re weak in.” This results in better use of their time, as they would not waste time taking too many classes, Odigie notes.

Observing that a deterrent to training employees in the past has been the time involved, Odigie notes, “The cost associated with the breaches is quite substantial, and companies are realizing it now.” And they need to address security awareness as a whole, which may require a cultural shift. “Businesses cannot win at the hacking game; they can’t play the hackers’ game. Therefore, they need to be better aware and better educated.”

Inspired eLearning inspiredelearning.com

To help protect people from becoming victims of phishing scams, the U.S. Department of Homeland Security’s Computer Emergency Readiness Team (US-CERT) collects phishing email messages and website locations. phishing-report@us-cert.gov.

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YOUR BENEFIT IN BUSINESS

Advancing Safety in Medical Imagery

WELL WELL WELL

Communication Key in Care Today’s dynamic healthcare landscape relies on highly educated and motivated leaders with strong managerial expertise to oversee large healthcare operations and their success is determined by how well they clearly communicate with patients, staff, providers, business partners, insurance companies, and regulators.

Blair Smith, Ph.D., dean of informaticsmanagement-technology at American Sentinel University, offers the following practical steps healthcare leaders can take to improve the quality of their communications.

• Choose Words Carefully. Be clear, succinct, and avoid clichés, slogans and buzzwords.

• Be Clear and Specific. Be precise as to what the message is, and explain what it means for the organization and the individuals who work there.

• Never Trade Clarity for Inspiration. It’s not important for people to be charismatic nor choose words to display waves of emotion. Focus on the mission so that people will understand and take part in it.

• Don’t Over-specify. Leave enough room when communicating ideas that people can react as necessary to changing conditions.

• Note What Is Non-negotiable. Be sure people understand the importance of the core principles.

• Use Stretch Specifications and Goals.

This can improve innovation, helping people realize that business as usual is no longer going to work and they need new approaches. —Mike Hunter American Sentinel University americansentinel.edu/management

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The use of advanced imagery in healthcare is increasing, but this technology that helps improve patient outcome also has the potential to do harm.

Scottsdale-based PACSHealth, LLC manufactures a tool that collects data and sets up the ability to send alerts, reports and other components around that data set to ensure what is being programmed is actually what is delivered and the devices used are equivalent as to such factors as output and dose.

Recent action by the Joint Commission on Accrediting Hospitals has spotlighted the need for such information. Although not a funding agency, the commission is well-respected and covers about 2,500 hospitals in the United States and abroad, explains PACSHealth COO Mike Battin, and it produced a document this year requiring sites to collect data from CT scans (X-ray computed tomography) to help monitor safe levels of radiation. The focus on this “started with two incidents in California of over-radiation due to human error or purposeful harm,” Battin says.

PACSHealth serves this need. Focused on radiology informatics, the company develops

software systems for medical imaging technology.

Says Battin, “We create tools to monitor, measure and report on potential patient care issues before they occur.” The company’s proprietary data-base analysis technology is specifically designed around the healthcare experience. It applies meta-data analysis to the set of data points behind the image to look for inconsistencies, Battin explains. “For example, the X-ray may have been put in the wrong jacket because of similar names and dates of birth.

We see it all the time.” Its technology is applicable specifically and only to healthcare because of the differentiation between patients, Battin explains.

Begun as a self-funded startup in 2005, PACSHealth, LLC has grown to a multi-national company serving more than 600 individual hospital sites in seven countries and remains the only one in its niche. And, notes Battin, “As advanced imagery improves, they’ll need our products more and more.”

Applications it produces are PACSHealth, VNAHealth and, most recently, Dose Monitor, which gives insight into organ doses. —RaeAnne Marsh PACSHealth, LLC pacshealth.com

Bonus Payments Help UnitedHealthcare Promote Value-Based Care

Through its PATH program, which annually rewards physicians who meet certain performancebased criteria, UnitedHealthcare awarded approximately $1.2 million in bonus payments to 30 Arizona care providers named winners of the PATH Excellence in Patient Service Awards. Care providers who earned recognition as a UnitedHealthcare PATH Excellence in Patient Service Award winner have effectively engaged their patients and encouraged them to access important preventive health care services. This helps to improve health outcomes for members by identifying and treating health issues at an early stage, before they have an opportunity to intensify and lead to costly complications that have a negative impact on the individual’s quality of life.

The PATH program is part of UnitedHealthcare’s commitment to help shift the nation’s health care system to one that rewards quality and value instead of the volume of procedures performed. Although designed for care providers

treating UnitedHealthcare’s Medicare Advantage members, it is just one part of the company’s value-based approach to health care, and is designed to accommodate a variety of provider groups and physician practices, ranging from individual doctors to integrated health systems. It is comprised of four components: Patient support and communication, actionable patient data and reporting, financial compensation for doctors, and practice-based support.

Care providers nationwide are showing strong interest in a shift to value-based care. With a full spectrum of value-based initiatives (www.

AccountableCareAnswers.com), UnitedHealthcare has nearly tripled its total payments to physicians and hospitals that are tied to value-based arrangements in the last three years to $38 billion.

By the end of 2018, UnitedHealthcare expects that —Mike Hunter figure to reach $65 billion.

UnitedHealthcare uhc.com

Care providers nationwide are showing strong interest in a shift to value-based care, according to UnitedHealthcare spokesperson Kristen Hellmer, who reports UHC has seen its total payments to physicians and hospitals that are tied to value-based arrangements nearly triple in the last three years to $38 billion and expects that figure to reach $65 billion by the end of 2018.

METRICS & MEASUREMENTS

Manufacturing and Logistics – Arizona vs. the Nation Report shows Arizona’s strengths and weaknesses

by Mike Hunter

Arizona has received a C grade for its manufacturing industry and D in logistics, says a new report from Ball State University.

The “2015 Manufacturing and Logistics Report,” prepared by Ball State’s Center for Business and Economic Research (CBER) for Conexus Indiana, the state’s advanced manufacturing initiative, shows how each state ranks among its peers in several areas of the economy that underlie the success of manufacturing and logistics. These specific measures include the health of the manufacturing and logistics industries, the state of human capital, the cost of worker benefits, diversification of the industries, state-level productivity and innovation, expected fiscal liability, the state tax climate, and global reach.

FOR BETTER OR WORSE? How does Arizona’s 2015 report card compare to 2014?

Manufacturing: stayed same Logistics: declined Human Capital: declined Worker Benefit Costs: declined Tax Climate: declined Expected Liability Gap: declined Global Reach: improved Sector Diversification: declined Productivity and Innovation: improved

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2015 Manufacturing Report Card How does Arizona compare to its nearby economic development competitors?

Arizona

California

Colorado

Texas

Manufacturing

C

C

D

C

Logistics

D

B

C-

A

Human Capital

D-

C

C+

C-

C+

C

B

A

B-

D

C

C

C

D

C-

A

D

C

D+

B

F

D

C

C

C+

A

B

A

Worker Benefit Costs Tax Climate Expected Liability Gap Global Reach Sector Diversification Productivity and Innovation

Source: Ball State University Center for Business and Economic Research

Oct

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CBER director Michael Hicks says, “Arizona saw among the largest overall declines in the nation with this year’s Report Card. Arizona’s grade dropped from D to F in diversification category, C- to D in logistics industry category. D to D- in human capital category, and B- to C+ in benefits costs category. These factors suggest a poor long-term prognosis for the state.

Arizona improved their expected fiscal liability grade from D+ to C and productivity and innovation grade from C to C+.”

Hicks also provides an analysis of why the American’ manufacturing and logistics are in better shape than many believe in the companion study “The Myth and the Reality of Manufacturing in America.”

“There are major misunderstandings among the public and the media about the manufacturing sector,” he says. “The U.S. manufacturing base is not in decline, and we have recovered from the recession. Nor are jobs being outsourced because American manufacturing can’t compete internationally.

Moreover new jobs in manufacturing pay well above the average wage.”

The study notes that the Great Recession had lost its stranglehold by 2014, when U.S. manufacturers attained record levels of production.

“Overall, only 13 percent of lost jobs over the past decade, which are less than 4 percent of all manufacturing jobs, can be linked to international trade and most of trade related job losses are in low productivity sectors,” Hicks says. “Changes in productivity, domestic demand and foreign trade all impact manufacturing employment in the U.S., and it’s important to clarify those impacts in order to understand what is happening in the manufacturing and logistics industries.”

He goes on to note, “When evaluating the health of manufacturing, many folks look at job growth, and miss the fact that because we are very good at manufacturing, we can produce more, with fewer workers, so production (in inflation adjusted dollars) was at a record in 2014, while employment grew much less briskly.”

Center for Business and Economic Research – Ball State University conexus.cberdata.org

Celebrate Manufacturing in Arizona: The Arizona Manufacturers Council, part of the Arizona Chamber of Commerce and Industry, will hold its 2015 Arizona Manufacturing Summit and Awards Luncheon next month – Oct. 30 – with a trade show and congressional panel in addition to awards that include recognition for innovation and sustainability.

MINDING THEIR BUSINESS

John Lines: Adding Value in Auction Innovation

Surplus Asset Management founder evolves auction expertise into new markets

Photo courtesy of Surplus Asset Management

by RaeAnne Marsh Supply chain end-of-life for one business may be just the beginning for another, and John Lines’ Phoenix-based Surplus Asset Management helps make that connection as businesses remodel or close. “We sell a grocery store chain, and that allows little mom-and-pop bakeries or pizza or grocery stores to open up for a huge savings over new equipment,” says Lines, founder and CEO of SAM. Working with clients in grocery, hotel, restaurant and retail, his team will value, appraise, remove and sell equipment or stock the company considers surplus.

For the business divesting itself of its surplus assets, Lines’ service turns loss into profit. A recently signed grocery store client, Lines relates, used to spend $1 per square foot to empty a store when it closed one. SAM’s auction of a 90,000-squarefoot store saw sales of $80,000. “That’s a $170,000 swing,” Lines points out.

Since taking his experience in the auction business working for others to open SAM in 2004, Lines has brought several innovations to the industry. Boosting online auctions up an extra notch, he began doing online simulcasts with the onsite auction. “It has opened the buyer base to anywhere,” he says, noting it has reaped his customers 50 percent more money.

Although not all auctions are simulcast live — if there are only a small number of lots or the landlord does not permit a live auction — all of SAM’s auctions are online.

And to address the specialized tracking needs of auction and surplus asset management, Lines has developed an inventory control system. The standard program is designed to automatically reorder when inventory gets low, Lines points out; his is designed to enable the user to keep track of the inventory so it can be used somewhere else or others can access it and sell it. He will be rolling it out this fall to make it available to end-user customers and vendor partners.

Recycling — which Lines says, “has always been important to me” — is an area in which he feels he has made a difference.

“If items don’t sell, we send roughly 90 percent of those items to recycling. It’s not always about making money — we do it simply because it’s the better way of doing things,” he says, citing recycling as one of his company’s biggest priorities. “A lot of times, we can get a 60,000-square-foot store down to one dumpster, of just dirt and garbage.” It’s a new mindset for his clients, and he has lobbied them that “it’s better for the

AUCTION: GOING, GOING … environment and the bottom line.” A dumpster full of materials can cost $1,000 to throw away, for example, but if they recycle that same dumpster they can instead actually make a profit of a few hundred dollars from it. “It doesn’t make any sense not to,” he says.

A few years ago, Lines saw an opportunity to apply an auction solution to the field of reverse logistics. “Returns are one of the biggest expenses for retailers,” Lines says.

“They used to just sell by the truckloads to get some of their money back.” Instead of blindly selling by the truckload, SAM organizes an online simulcast auction and sells by the pallet.

“It has increased the amount of sales, and allows buyers to get more specific items,” Lines says, explaining that an eBay power seller, for instance, often concentrates on a specific niche market such as tools or household goods and would not want a truckload of miscellaneous items.

Observing, “Reverse logistics is a huge market that not a lot of people are going after yet,” Lines says he is working with two of the three largest of these companies in the country to help grow that business for them. “We’ll have partnerships to help [these middlemen] liquidate. They’ll still sell truckloads, but we will add value by being their auction arm.”

Since starting SAM with grocery stores, Lines has added restaurants, hotels, reverse logistics and Las Vegas casinos to his clients. His latest market is bankruptcy trustees. A plus SAM brings to them is being a national company and therefore able to handle assets that may be scattered around the country.

“We’re a one-stop shop,” Lines says, explaining SAM is licensed to do auctions in 40 states “and others don’t require a license.”

Saying his company averages at least two auctions per week, Lines observes, “Our auction method works well with a lot of different markets.”

Surplus Asset Management samauctions.com

High Bid: At the recent auction of Greasewood Flat in Scottsdale, a 12x16-inch, metal-framed wall art of corks arranged to say “GFFD” (Greasewood Flats Fire Department) sold for $1,600.

Sharing, “That kind of stuff always amazes me,” John Lines says, “That’s the power of memorabilia.”

• Surplus Asset Management is headquartered in Phoenix, where it has a 50,000-square-foot warehouse with a threeacre yard. It also has a 100,000-square-foot warehouse in Loma Linda, California, and use of a client’s 40,000-square-foot space in San Antonio, Texas.

• Lines’ workforce of 35 is comprised of auctioneers; set-up crews and decommissioning crews; salespeople; and marketing, logistics and warehouse personnel.

• Starting with a Safeway store in 2006, Surplus Asset Management now “works with pretty much all grocery store chains nationwide,” says founder and CEO John Lines.

• SAM handled the auctions for the closing of landmark Phoenix-area restaurants Monti’s La Casa Vieja, Greasewood Flat and Pinnacle Peak Patio.

• Types of items range all the way up to vehicles.

“Even grocery stores, when they retire their vehicles, send them to us,” Lines says.

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INBUSINESSMAG.COM

LAW MATTERS TO BUSINESS

New Labor Rules Are Reason for Risk Assessment Employers may find common ‘standard’ policies violate the National Labor Relations Board’s application of the National Labor Relations Act

by RaeAnne Marsh

Joe Clees represents employers throughout the nation in employment litigation and labor relations. He has been honored a “Phoenix Lawyer of the Year” for Employment Law/ Management by Best Lawyers and named to HR Executive Magazine’s “100 Most Powerful Employment Lawyers in America.”

Ogletree, Deakins, Nash, Smoak & Stewart, P.C. ogletreedeakins.com

Steve Wheeless is a partner in Steptoe & Johnson LLP’s Phoenix office who represents clients nationwide in labor and employment matters. He serves as the management chair of the American Bar Association’s Developing Labor Law Committee.

Honors include recognitions in Chambers USA and Southwest Super Lawyers.

Steptoe & Johnson L.L.P. steptoe.com

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The National Labor Relations Board has, historically, focused on the unionized part of the National Labor Relations Act, but the act has always covered non-unionized employees as well — and this is where the current NLRB is especially focused. The NLRA’s “mutual aid and protection” component is what the NLRB is using to greatly expand its realm of authority. According to Joe Clees, a shareholder with Ogletree Deakins and a past chair of the Employment and Labor Law Section of the Arizona State Bar, the NLRB’s point is, employees have the right to engage in protected concerted activity. And many seemingly neutral and benign policies that employers have had for years may now be determined to violate employees’ rights — even if they have never been used to terminate or discipline anyone.

For instance, negative statements by employees about their supervisor cannot be subject to discipline, even if they contain vulgarities, because employees have the right to complain about workplace conditions.

Notes Steve Wheeless, a partner with Steptoe & Johnson and the management chair of the American Bar Association’s Developing Labor Law Committee, there are two primary areas that affect virtually all employers. One is human resources policies and procedures, both written and tacitly understood, affecting practices in investigations, solicitation, and civility and at-will policies. “For instance, if an employer says, ‘We’re conducting an investigation and want to keep it confidential, so the investigation is not undermined by gossip,’ the labor board says you can’t do that,” Wheeless says. Nor can a company limit solicitation or distribution of literature, as the labor board sees this as improperly restricting employees’ right to solicit or distribute union literature. “There’s a whole host of what many employers view as standard handbook policies this board has challenged, many successfully,” Wheeless says.

Clees suggests employers review employee handbooks and all written policies to ensure nothing blatantly violates employee rights, review job descriptions to determine who is and isn’t a supervisor (supervisors are not protected by the NLRA), and train their supervisors in appropriate workplace behaviors.

Also important is for employers to make sure their decisions on discipline and discharge issues are reasoned, fair, just and defensible – which, Wheeless observes, “is hard to put into

practice in busy workplaces.” He suggests employers ensure their discipline and discharge decisions comply with the seven tests for industrial due process known as “just cause” that have been used for seven to eight decades. “It would behoove employers of any size to get educated on those seven tests and apply them to their work practices.”

The NLRB has also greatly expanded the view of what the employer relationship means, and lowered the standards for determining when the primary employer is the legal employer, Wheeless says. This affects independent contractors, of which there are three types of relationships: the franchisor/ franchisee model, temporary leased employees and independently contracted employees. Noting the primary employer may be responsible for what goes on the thirdparty employer, Wheeless says, “As a primary employer, you cannot turn a willful blind eye to what’s going on with your independent contractors; you may well be their joint employer.” Therefore, businesses need to be cognizant of what the third-party employer is doing with his employees and take steps to ensure compliance with Federal labor laws.

Notes Clees, “All federal agencies share information more than they used to.” So an employee who goes to one federal agency that may not be able to secure a remedy is often referred to another agency to pursue a claim.

Recent years have also seen an escalation in class-wide claims. Says Clees, “Increasingly, the regulators are asking to see all employer policies or employer’s treatment of wide groups of employees, so these single-claimant charges are evolving into full-fledged, often company-wide, investigations by the regulators.”

Pointing out that there are many state and federal agencies to which employees can take their grievances, Clees says, “It’s far better to fix a problem in the workplace so employees do not feel compelled to reach outside their employment to fix the problems.” And he adds, “Even union organizers say they are not, typically, called in until an employer does something wrong.”

Other elements of the new NLRB rules were covered in the August issue of In Business Magazine.

Labor law generally is used to apply to workplace union issues. Employment law, as Joe Clees puts it succinctly, deals with “everything else.”

Come home to local banking.

It’s been 10 years. And we’ve made local banking something worth coming home to.

This anniversary isn’t about us, it’s about you: Arizonans who wanted a better banking experience.

After all, you’re not just clients. You’re our neighbors, our friends and the businesses that power our local economy. And with the accolades we’ve received—#1 Community Bank, Top 200 Healthiest Bank, 5-Star Superior Rating—it’s clear we’ve earned your trust with our easier, more personalized, local banking service.

Here’s to 10 years as your hometown bank.

Bank local. Bank Pinnacle.

Creating an exceptional experience!

Scottsdale 480.609.0055

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Phoenix 602.995.6565

Member FDIC | Equal Housing Lender. Copyright © 2014 Pinnacle Bank, All rights reserved

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Workplace Healthy Making ‘Employee Experience’ Impact Your Business

Creating a healthy workplace environment requires a holistic approach that combines physical with mental and emotional well-being

by RaeAnne Marsh

Employees do their best for employers who do their best for their workforce.

An environment that fosters a healthy attitude results in stronger employee engagement and, ultimately, productivity. And this healthy work environment encompasses employee benefits, company culture and physical space in addition to wellness programs.

For those who wonder what motivates and entices business owners, managers and employees — it may be a surprise to learn that they are the same things that keep business consumers coming back for more. In fact, the new phrase in the human resources world is “employee experience,” according to Lenny Sanicola, senior practice leader of professional development for nonprofit human resources association WorldatWork. “It’s similar to the employer value proposition,” he says.

BENEFITS TO BUILD EMPLOYEE EXPERIENCE

Explaining that “experience” encompasses many things, Sanicola notes employee benefits now is broader in scope than it used to be. “Historically, benefits fell into three umbrella categories — health and wellness, retirement, and time off.” Those are all still important to the employee experience, but other benefits have come to the forefront.

Culture is one of those benefits, according to Sanicola. Potential employees look at how people treat each other and whether or not it’s a respectful and dignified environment. They consider, “The person I will report to on the team — what is he like?”

Flexibility is big now — employees’ flexibility to manage their time. They question, “Do I feel tethered to the smartphone or laptop? Is there demarcation between work and personal time? And do I have the flexibility to accomplish that or do I need to be ‘on’ 24/7?” Sanicola explains.

Along with that is trust. Employees appreciate the trust inherent in being empowered to make decisions as they fulfill the responsibilities of their job.

More attention is being paid now to the physical space, such as general décor and the arrangement of work cubicles, as part of the employee’s assessment of an employer’s benefits.

And wellness is another valued benefit. “Is there a culture of health?” asks Sanicola. Regarding encouraging people to focus on stress reduction, for instance, is it just lip service or is it inculcated into the culture?

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SEPT. • OCT. 2015

A trend in HR is also looking at what the company is doing to differentiate itself in the worklife benefit arena, Sanicola says. “It’s about helping people have a good professional life and personal life — and helping them integrate it.”

This is where financial fitness comes into the benefits picture. It came out of the recent recession, when employers were scaling back on traditional benefits, as a way of helping employees get through that, Sanicola explains, and continues to be a big trend. It is actually part of a total wellness program that includes physical wellness initiatives, but addresses financial stressors such as saving for the future and addressing budget issues.

Also falling into consideration of benefits because of its importance in attracting and retaining talent is professional development and the need to make work challenging. “Employees want to continually keep learning and be challenged,” Sanicola says. Even if there is not much opportunity for vertical promotion, employers can offer horizontal growth that allows employees to learn new skills. On-the-job mentors is one way an employer can help an employee grow as an individual.

“In the need to manage talent, a company’s needs change,” Sanicola says. “But employers need to figure out, ‘What is our goal, our business model, the kind of employee we want — and what will it take to get those employees on board and sustain them to work for us?’”

“One thing is certain: Employees are seeing through ‘happy talk’ about perks or values.

They want to see culture in action — in their lives.”

—Michelle Sirott

INBUSINESSMAG.COM

KNOW THE COMPANY YOU KEEP

Businesses now recognize that a strong employer brand is key to attracting and retaining talent. The employer brand is about the culture, and the experience employees have. Says Denise Gredler, founder and CEO of BestCompaniesAZ, “When employees strongly identify with the mission and the message of a company, it’s more likely they’ll stay.” And she notes that, because talent has become scarce, more companies are becoming aware of the importance of employer branding. “It’s not an option anymore. It’s now the norm for companies to focus on culture, and they also know that once they establish a strong company culture they need to promote it in the community.” She adds that being recognized on a list of top companies is seen as a great way to promote employer brand.

“Here in Arizona, the most talented workers are in the enviable position of having plenty of choices about where they deploy their talent,” says Michelle Sirott, practice director for the Phoenix office of management consulting firm Point B. “And they’re not just selecting employers based on salary and a list of perks.” She has seen a profound shift toward a purpose-driven workforce that is looking for meaning in their lives and their jobs — and this is not confined, per popular stereotyping, to millennials. “We see candidates across the age spectrum who all want the same thing: to apply their talents in pursuit of a larger purpose; to work for a company that genuinely cares for them; and to surround themselves with people who share their values and who they enjoy being with.” And she emphasizes, “One thing is certain: Employees are seeing through ‘happy talk’ about perks or values. They want to see culture in action — in their lives.”

Using Southwest Airlines to illustrate the power of culture as an attraction tool, Sanicola relates, “Years ago, Southwest wasn’t the highest payer in the industry, but it got zillions of applications because people had heard about how they were treated, such as being empowered to be funny.” But a business cannot just copy another’s culture, he notes. “Every organization is made up of different personalities and objectives.” So it must develop a culture that works for the company — its demographic and the type of employee it wants to attract.

For Point B, choice is key to its culture. “Our employees have the power to choose how much time they take off; they have influence over staffing

INBUSINESSMAG.COM

decisions; can choose unique, tailored career paths; and much more. We want our people in the driver’s seat of their own career,” Sirott shares. “And they own their schedule based on client needs — an unheard-of perk in the industry. This flexibility gives our consultants the time to incorporate work into life, instead of the other way around.”

Emphasizing that it doesn’t matter what “everyone does,” Sirott believes healthy cultures may even inspire decisions and actions that challenge the status quo. This includes being willing to sacrifice “business as usual.”

For example, she says, “Our associates have the choice to decline an engagement that doesn’t appeal to them.

When they exercise this choice, the firm sometimes loses money. Why would we do this? When we tell our people that ‘choice’ is one of our values, we walk the talk. We want people to be doing the work they’re passionate about, and that shows up in their productivity and the client outcomes they deliver. It’s a sacrifice worth making in order to have the company we want. And, by the way, we’ve seen these types of short-term sacrifices often result in long-term gains.” Being true to one’s authentic culture, she adds, “makes it easier for the truly great people in your industry to find you.”

Noting a trend toward more elaborate and unusual perks, and observing, “Companies try to be like Google,” Gredler says, “Beer kegs and free lunches are fun, but it’s important to realize that, while perks are great, they are not what determine culture.” She believes culture comes from trust, a shared vision and mutual appreciation, and has found that only when the perks come from a sense of appreciation do they support the culture. And she notes, “Appreciation is the greatest perk of all, and it costs absolutely nothing.”

Culture underlies the overall workplace environment, impacting employees’ physical, mental and emotional health. In terms of the latter two, a workplace can serve some of the same functions as a family, Gredler observes. “Trust is vitally important, and the sense that the team and manager are looking out for you.” Respect and appreciation not only create an emotionally healthy environment, but a more productive one, she points out; on the other hand, a fearful or distrustful environment hinders success for both employees and the company.

Observing, “Leadership is the key,” Gredler believes good leaders are those who build a culture in which employees are empowered, feel appreciated, share a vision, and feel their work is meaningful.

“But employers need to figure out, ‘What is our goal, our business model, the kind of employee we want — and what will it take to get those employees on board and sustain them to work for us?’”

—Lenny Sanicola

SEPT. • OCT 2015

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A FEEL-GOOD HABITAT

“There are huge changes in terms of attracting talent,” says Adam Goodman, president of Goodmans Interior Structures, the third generation to lead the family business. “We’re helping companies express their unique culture and purpose and character in the design of their space.” In fact, Goodman notes he has hired a person to focus full-time on working with clients to understand their unique character and purpose, and translate it into the physical space.

Says Goodman, “It’s important to be supportive of who the individual people are and how they work and what they need to do their work.”

Comparing current trends in design plan to the old-style, dehumanizing banks of cubicles, he relates, “You feel a different energy, because the space is designed for humans, not to fit boxes into a space.” In fact, he notes that people feel before they think. “When you walk in to a workplace, you intuitively evaluate the organization’s culture, purpose, attitudes and beliefs before you even have a chance to intellectually process the data.”

Workers have begun to bring a consumer mindset to their employment decisions, and this compels them to pick and choose where they work based on factors like their changing moods, their specific tasks, the need for collaboration, the need for technology, their preference for privacy or their yearning to be inspired.

“We encourage customers to think of their office as a ‘habitat.’ The word implies that the environment has an impact on its occupants,” Goodman explains. “If a company wants to create an intentional culture, we work with them to create the habitat that supports that culture.

“The physical workplace is an important culture-shaping tool that companies can’t afford to ignore; just as a penguin can’t survive in a lion’s habitat, the wrong workplace habitat will dampen leadership’s efforts to foster the right culture,” Goodman notes.

Design of furniture is also evolving. Addressing the growing awareness that “sitting is the new smoking,” technology is going far beyond the simple concept of ergonomics. Observing, “Not all sitting is created equally,” Goodman describes dynamic chairs that promote active movement, changing posture and direction. “But even sitting in those chairs all day isn’t good.”

Standing desks are an option that has been around for decades. Other variations on the desk include a cycle desk that incorporates a reclining bicycle and a treadmill desk that works up to a brisk walk. Goodman shares that he finds a perfect use for the treadmill desk is with conference calls. A shared unit, not a primary desk, it has a dedicated computer to which users log in.

But the latest advance comes from Stir — a kinetic desk that raises from sitting height to standing height. “You set goals for how much you want to stand — per day, per week, per session. It knows when you’re there, and it tracks your time so that if you travel it will prompt you as to how many more hours you have left to stand,” Goodman relates. It will pulse slightly to alert the user, then rise to the predetermined height for the set period of time.

And it will learn its user’s preferences as to what time of day the user prefers to do sitting or standing work.

Goodman says he is now showing the Stir Kinetic Desk to insurance carriers, talking to them about giving an incentive of some kind to people who use the desk. It is recognized that standing improves health over static sitting, but “just because you lead a person to a standing-height desk doesn’t mean he will stand,” Goodman observes. The difference with the kinetic desk is “it is guaranteed adoption.”

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SEPT. • OCT. 2015

PROGRAMS PROMOTE WELLNESS & HEALTH

“When you walk in to a workplace, you intuitively evaluate the organization’s culture, purpose, attitudes and beliefs before you even have a chance to intellectually process the data.”

“The trend in wellness and preventive care is huge,” says Frances Ducar, president of Healthcare Solutions Centers, crediting the Patient Protection and Affordable Care Act. And David W. Allazetta, CEO of UnitedHealthcare of Arizona, observes, “More employers are recognizing they can support their employees’ desire to improve their health, and by doing —Adam Goodman so can create a happier, healthier workforce while reducing costs for employees and the company.” In this regard, he has found that employers are searching for ways to decrease the trend of rising healthcare costs. Because lifestyle choices and management of chronic conditions have had a major impact on these rising costs, employers are recognizing the importance of consumer decision-making. “Employers are increasingly turning to innovative programs, such as the use of incentives, to engage their employees in making healthy lifestyle and medical care decisions,” he says, naming premium reduction, direct financial contributions to health savings accounts, gym reimbursements and merchant gift cards as among options for financial incentives.

Employers are also using wellness programs to raise awareness, educate and support people in making good lifestyle choices, according to Jeff Stelnik, senior VP of strategy, sales and marketing for Blue Cross Blue Shield of Arizona. The more highly visible they are, the more likely they are to be successful. Importantly, he notes that support by senior management is also a critical factor in the success of wellness programs. “Year-round programming and activities, incentives and strong communications also play a role in a wellness program’s success,” he says, sharing that BCBSAZ offers quarterly health challenges with prizes and employee recognition through internal communications programs.

Noting that wellness programs require commitment from everyone — “especially the employees” — to have a lasting effect, Stelnik says BSBSAZ consults with employers to design their medical benefits and wellness programs. “It’s important that they are integrated.”

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Chris P. Scherzer, benefits practice leader of Brown & Brown Insurance of AZ, reports his company has expanded and shifted its focus on employee health from a traditional view of health and wellness to one of health risk management, launching a proprietary wellness program that has moved from merely offering activities to implementing results-oriented programs.

“We developed our wellness program four years ago because of the increasing interest from our clients and the continued frustration of working ‘inside the box’ of the many wellness vendors,” he says, noting Brown & Brown has hired a wellness consultant whose full-time focus is the wellness initiatives of its clients. “This is a unique and valuable tool in the brokerage world. We are very proud of our in-house wellness program and the results our clients enjoy as a result of their participation.”

Key to the success of wellness programs are risk assessments and biometric screenings, which also seem to induce the greatest participation among employees. Explains Allazetta, “Not only does it inform them about their current health status, but it starts them on the right track to a healthier lifestyle and keeps them motivated throughout the year by rewarding them for taking action in improving their health.”

The impact is also seen on the bottom line. Reporting on the results of Brown & Brown’s integrated program, Scherzer says, “Employees and their dependents are becoming engaged and making better decisions, with the result being significantly lower healthcare costs.” But it may not happen overnight, he notes.

“Our strategy is a three- to five-year approach taking a client from a participation-based program to an outcomes-based program.”

It’s important to take into account the fact that every company has a different idea of what wellness means and a unique culture to support it. “There may be some that stay participation-based with premium differentials or some that move to an outcomesbased program at year three. Corporate Wellness is a tool for carrier rate negotiation, healthcare cost savings, enhancement of an employee benefits package and an approach to recruit and retain happy, healthy, productive employees.”

Ducar, whose Healthcare Solutions Centers provides onsite clinics to businesses, is finding more and more companies are going to self-funded programs to cover healthcare premiums for employees — it’s not just for companies with a thousand employees any more, but even for companies of 250.This trend raises the interest in onsite clinics because, she points out, businesses are taking the risk on themselves to cover the healthcare costs.

HSC also provides near-site clinics, allowing clients to share the healthcare clinic. And for clients like Earnhardt, which has multiple sites, HSC schedules its clinics on a rotating basis at the various locations. Offering convenience as well as comprehensive care that includes lab work and telemedicine, onsite clinics have become a practicable option for businesses of 200 or more employees. And, in addition to helping the individual, HSC’s feedback to the company shows where it’s saving money and includes biometrics to indicate what programs may need to be changed or added.

A newcomer in healthcare benefits is Phoenix Children’s Care Network, generating such attention as the first-of-its-

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kind pediatric clinically integrated organization that pediatric systems around the country have been visiting to learn how it has aligned all the component resources and gained traction in the community. Chad Johnson, PCCN’s senior VP and executive director and instrumental in its development, explains it is designed to be a “plug-and-play” pediatric partner to any product or adult system. The network encompasses Phoenix Children’s Hospital inpatient, outpatient and urgent care sites; surgery centers; and close to 90 independent pediatric practices across the region. “We bring care together in a completely different way than people are used to,” Johnson says, noting that the delivery system is the key piece “that needs to be in every employer’s benefits plan.”

PCCN has partnered with Arizona Care Network, an adultfocused CIO led by physicians and owned by Dignity Health and Tenet/Abrazo, to be its exclusive pediatric care provider.

“Our alignment with ACN creates a truly integrated network with nearly 600 sites of service located throughout greater Phoenix, ensuring primary and specialty care is available when and where Arizonans need it most,” Johnson says. According to Johnson, PCCN is also working at building partnerships with employers directly as well as with commercial and state agencies, all major payers, and other adult networks, to provide comprensive, high-quality, truly coordinated, affordable care.

In today’s business world, healthcare cost continues to be a concern. Successful businesses are addressing this by vastly expanding the concept of health to more greatly engage the individual and create an environment that enables the employee’s success.

BestCompaniesAZ bestcompaniesaz.com Blue Cross Blue Shield of Arizona azblue.com Brown & Brown Insurance of AZ, Inc. bbphoenix.com Goodmans Interior Structures goodmansinc.com Healthcare Solutions Centers, LLC hcsonsite.com Phoenix Children’s Care Network phoenixchildrens.org/professionals/pccn Point B, Inc. pointb.com UnitedHealthcare of Arizona uhc.com WorldatWork worldatwork.org

“More employers are recognizing they can support their employees’ desire to improve their health, and by doing so can create a happier, healthier workforce while reducing costs for employees and the company.”

—David W. Allazetta

SEPT. • OCT 2015

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RISKS & REWARDS

Disruptive Innovation: The Quintessential David and Goliath Story Little startups can change the course of an industry

by Paul Paetz [David] grabbed his staff and chose five smooth stones from the streambed. He put them in the pocket of his shepherd’s bag and with sling in hand went out to [Goliath].

The Philistine got closer and closer to David, and his shield-bearer was in front of him. When the Philistine looked David over, he sneered at David because he was just a boy; reddish brown and good-looking.

The Philistine asked David, “Am I some sort of dog that you come at me with sticks?”

And he cursed David by his gods. “Come here,” he said to David, “and I’ll feed your flesh to the wild birds and the wild animals!” …

Goliath got up and moved closer to attack David, and David ran quickly to the front line to face him. David put his hand in his bag and took out a stone. He slung it, and it hit the Philistine on his forehead. The stone penetrated his forehead, and he fell facedown on the ground. And that’s how David triumphed over the Philistine with just a sling and a stone, striking the Philistine down and killing him — and David didn’t even have a sword!

Then David ran and stood over the Philistine. He grabbed the Philistine’s sword, drew it from its sheath, and David cut off the Paul Paetz , author of Disruption by Design: How to Create Products that Disrupt (and then Dominate) Markets, is CEO of Innovative Disruption, a boutique consultancy that advises startup companies, helping to bring disruptive products to fruition and market success. Prior to forming Innovative Disruption, Paetz had more than three decades of experience working with innovative startups in executive roles in sales, marketing and product management, and as a disruption consultant at The Disruption Group.

Paetz is creator of the Disruption Report Card, a tool that scores disruptive potential, and author of the popular blog, “Disrupt This.”

Innovative Disruption innovativedisruption.com

SEPT. OCT. 20 1 5

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Philistine’s head with the sword.

—from the Old Testament, in the First Book of Samuel, Common English Bible translation

David and Goliath is one of the most enduring stories of all time. Every culture has a version of it — a defenseless boy takes on a giant, battle-hardened warrior more than twice his size and surprises and defeats him with a shepherd’s sling and a single stone.

The underdog legend persists today as a powerful secular myth that we enjoy hearing and telling over and over again. It’s the unranked college team knocking off the No. 1 seed. It’s the 1960s hippy youth stuffing flowers in the barrels of National Guard rifles to protest the Vietnam War, and eventually bringing the military industrial complex to its knees. It’s Martin Luther King Jr. standing up against racial injustice with peaceful marches that changed the country. It’s the Oakland Athletics hiring a statistician to rebuild a decimated team with an under-funded payroll from the rest of the league’s undervalued and poorly paid cast-offs based on a single stat (onbase percentage) and rewriting how winning Major League teams are assembled (Moneyball).

Today, the mythic tale is of disruptive innovators.

Disruptors take on the giants of industry with seemingly outclassed products, yet consistently win and become the new incumbents. Netflix drives the behemoth Blockbuster out of business, and is now poised to knock off the giants

of TV and cable. Apple, a computer company on the brink of bankruptcy just a few years earlier, and a complete outsider to the phone industry, takes on Blackberry and Nokia and the whole mobile industry, creating a business around the iPhone that would be the world’s largest company on its own if Apple had no other products, relegating the previous giants (both of whom were themselves recent industry disruptors) to the dustbins of history. Amazon, Google, Uber, Airbnb — unheard of a generation ago, these are today’s household names that continue to change the way the world does business in one industry after another.

Disruption isn’t as common as one might think. It’s easy to think disruption is all around us, but only relatively few innovations are truly disruptive and follow the patterns defined by disruption theory, notwithstanding all the hype and insistence by marketing hucksters who seem to want to make disruption a meaningless buzzword. Of the thousands of startups born every day, only a few introduce game-changing business models supported by innovative products that disrupt markets.

Think about it — beyond the names above, how many more can you identify? Pundits would have us believe that every new tech company is disruptive, but that’s just silly — the vast majority of startups fail, so how could they ever disrupt a market?

Paul Paetz, in Disruption by Design, explains it is important that those aiming to disrupt a market understand that “the term ‘disruptive’ is a relative concept. … Depending on the nature of the alternatives it’s being compared to, it can be either disruptive or sustaining, and sometimes both at the same time.”

BETTERING YOUR BUSINESS So why is disruptive innovation such a popular idea?

One reason we see the word “disruptive” almost daily is that it is the quintessential David and Goliath story. An unheard-of startup with an inferior product targeting unmet needs of undesirable users wins, despite the resources, technology, skills and manpower of an entire industry lined up against them. We love that story.

What we love even more is the economic growth and benefits that disruptors create. They are critically important to creating new, goodpaying and interesting jobs and improving the quality of service an industry delivers to its customers while reducing costs. It’s the real reason that disruptors are able to tackle entrenched competition that often has regulatory muscle and infrastructure on its side, yet still overcome the odds. Not only do they improve our lives, research shows that these few disruptive innovators are responsible for virtually all real growth in the economy after accounting for inflation.

Whether we are a consumer, investor, or entrepreneur, everyone wants to cheer for the next David, ready to slay the giant.

Managing the Millennials This is a valuable tool for anyone who wants to effectively manage and motivate 20-something workers.

Many books are being published on how to manage employees of the “millennial” generation, but the solutions offered are anecdotal at best. Backed by years of serious research, Managing the Millennials provides managers of all ages with specific recommendations and tools for engaging this burgeoning demographic — some 78 million strong. Each chapter shares relevant interviews and case studies, and offers research-backed ideas and best practices.

Title: M anaging the Millennials: Discover the Core Competencies for Managing Today’s Workforce Authors: Chip Espinoza, Mick Ukleja and Craig Rusch

$26.95

Publisher: Wiley

Pages: 192

HOW TO IDENTIFY THE REAL DISRUPTORS

The Challenger Customer

Clearly, it matters whether products have disruptive potential or not, but some say we can tell who the real disruptors are only in the rear view mirror. Is that really the case? Does disruption theory fall apart in the real world, serving only to label winners after they’ve disrupted? Or does it hold predictive value that tells us where to invest and how to create disruptive innovations intentionally? Is it a myth, or a model that anyone can apply if they understand the principles?

Picture your ideal customer: collegial, eager to meet with you, and ready to champion your products across the organization. It turns out that’s the last person you should be pitching. The need to understand how customers make their decisions, especially when it comes to selling large-scale, business-to-business solutions, drove the author team behind The Challenger Sale to investigate how sales reps won high-quality deals. What that team

GOING BACK TO FIRST PRINCIPLES It’s still less than 20 years ago that Harvard business professor Clayton Christensen coined the term “disruptive innovation” and wrote his seminal book The Innovator’s Dilemma. In that time, our understanding of disruption has evolved, though the base theory has held up remarkably well. We know that Steve Jobs was deeply influenced by Christensen’s book when he led Apple from the precipice of bankruptcy to become the world’s most valuable company in less than 15 years, and that a handful of companies like Netflix have used the theory to guide their business strategies.

So how do we apply that model and unlock the secret of intentional disruption? The key is realizing that the disruptive innovation model is a pattern, like the ripples in a pond of water. The ripples tell us a stone was thrown, but trying to create the ripple pattern without knowing what caused it is a fool’s game. For guidance in creating disruption on purpose, or in knowing when markets are ripe for disruption or predicting when a startup has a high probability of becoming a disruptive innovator, we need to know what causes the ripple.

The clue we need lies in one surprising and non-obvious factor that all disruptive innovations share: Every disruptor offers a product that uniquely addresses a market scarcity and, by doing so, changes the economics of the industry it targets.

Disruptive innovation is one of most misused and overused terms in our business lexicon, precisely because we love the David and Goliath story. How much do we love underdogs who win? We have almost as many synonyms for underdog as we do for sex. But that doesn’t mean disruption isn’t real, or isn’t critically important. Have you got what it takes to become a disruptor?

True disruption can be deliberately engineered, but providing a unique solution to the actual “job to be done” is only one of the necessary conditions a business must meet, says Paetz.

On Shelves & Online: 8/31/2015

discovered may turn the common wisdom about customer behavior upside-down. Most sales reps prefer to approach customers who are open and eager to meet with them, people with clearly articulated needs that make them easy to connect to solutions.

Title: T he Challenger Customer: Selling to the Hidden Influencer Who Can Multiply Your Results Authors: Brent Adamson, Matthew Dixon, Pat Spenner and Nick Toman

$28.95

Publisher: Portfolio

Pages: 288

On Shelves & Online: 9/8/2015

Superforecasting: The Art and Science of Prediction Everyone would benefit from seeing further into the future, whether buying stocks, crafting policy, launching a new product or simply planning the week’s meals. Unfortunately, people tend to be terrible forecasters. As Wharton professor Philip Tetlock showed in a landmark 2005 study, even experts’ predictions are only slightly better than chance.

However, an important and underreported conclusion of that study was that some experts do have real foresight, and Tetlock has spent the past decade trying to figure out why. What makes some people so good? And can this talent be taught? The authors offer a masterwork on prediction, drawing on decades of research and the results of a massive, government-funded forecasting tournament.

Title: Superforecasting: The Art and Science of Prediction Authors: Philip E. Tetlock and Dan Gardner

$28.00

Publisher: Crown

Pages: 352

Available: 9/29/2015

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INVESTING IN COMMUNITY

OCT.

UP NEXT MONTH: How and Why to Engage a Fundraising Consultant

5 REASONS TO HIRE A PROFESSIONAL INTERIM LEADER The departure of a nonprofit executive can halt momentum and impact staff morale. The board might consider hiring a professional interim manager to: • Continue daily operations and maintain governance before hiring a new leader.

• Stabilize operational issues before the new leader comes aboard.

• Assist employees in grieving the loss of the former leader and prepare them for a new leadership style.

• Proceed with largescale fundraising and social events or policy decisions that cannot wait for new leadership.

• Avoid internal staff relationship disruptions caused by two qualified candidates vying for the interim leadership role.

Cassandra Larsen, Of Counsel, and senior consultant Deborah Whitehurst work with The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists. phoenixphilanthropy.com

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The Value of Professional Interim Management Rushing to replace nonprofit leadership may have negative consequences

by Cassandra Larsen and Deborah Whitehurst Nonprofits that have lost a leader — to retirement, a career move, or even termination — often feel an urgency to find an immediate replacement.

This is, in many cases, a misguided strategy, says Linda Lyman, nonprofit consultant and retired president and CEO of New Pathways for Youth. “For a board that is feeling pressured to hire immediately, interim managers can provide a fresh, independent assessment as to what the organization needs to focus on in their next hire.”

In fact, the time afforded by appointing an interim manager (six months to a year, on average) produces innumerable benefits to nonprofits.

Opportunity to Strategize: A period of adjustment between leaders is often necessary to assess the nonprofit’s overall vision, mission and operations. What was working well?

What areas need improvement? Is the organization’s structure still viable? What kind of leader will best serve future needs?

“When I was Educare’s treasurer, our board wanted to take a step back to reevaluate leadership expectations after turnover in the executive director position,” says Christine Nowaczyk, chair of Educare’s board of directors and senior vice president with Bank of Arizona. “Having a skilled interim manager who could step in and handle the organization’s daily operations was critical to giving the board the time needed to reassess the organizational structure and determine if changes were needed.”

Morale Boost to Employees: If the organization appears to be floundering before and during a leadership transition, key employees may leave in droves. It is the interim leader’s responsibility, working with the board, to communicate to staff that the interim period is an opportunity to reflect and engage in the process. An effective interim leader will meet with staff individually and in groups about the opportunities for the future of the nonprofit.

Sustained Donor Relations: Because loyal donors have developed personal, often long-term relationships with the previous leader, they may develop a “wait and see” approach regarding their own continued financial support.

Will the institution hold to the same core values? Will the new executive director share similar philosophies? Will she or he be effective toward the nonprofit’s mission? The interim manager’s job is to allay fears and educate donors about the continued mission and future vision, and how this transition period is a positive step in moving the nonprofit forward.

Continued Board Function: Already overextended board members who volunteer their time to the nonprofit may feel compelled to step in and take on day-to-day operations in the absence of leadership, which may do more harm than good.

Hiring an interim “keeps the wheels on the bus” — including

banking and insurance relationships, and audits — and allows the volunteers to continue performing their duties as board members. The majority of the board’s focus during this transition should involve working with interim management to assess current and future needs, determining what the nonprofit wants in a new leader, developing a job description to fit those needs, and outlining a process and timeline for the search and interview process.

Cost Savings: Says Lyman, “The use of interim executive directors is often less expensive in the long run rather than rushing to replace an exiting CEO. An interim executive director is a seasoned professional who has a wealth of experience.”

The worst decision executives sitting on the board could make is a “reactionary” hire: bringing on someone whose principal characteristic is that she or he is not the same as the prior CEO. The end result — the wrong hire, who fails and leaves in 24-36 months or less — could result in an exodus of key staff members, damaged donor relations, and the need for additional financial resources to begin the search yet again.

Professional interim managers make sense. They send a message to all constituents and staff that the board is serious about moving forward in a thoughtful way, and that the organization continues to be strong and healthy. Interim managers are a conduit, a link and a partner to internal search committees or executive search firms, ensuring participation and input from the board, staff and constituents.

They can also have a positive ripple effect on the nonprofit’s future. “An external interim manager gave fresh eyes to our organization’s operations,” says Nowaczyk. “As a result, operations improved and new administrative policies and procedures were enacted.”

According to Interim Executive Directors: The Power in the Middle report by the Annie E. Casey Foundation, each year, one in 10 nonprofits goes through a leadership transition, a number that will increase as baby boomers retire.

BY MIKE HUNTER

SEPTEMBER • OCTOBER 2015

SAVE THE DATE

Upcoming and notable

Tammy McLeod, VP, Energy Resource Management, Arizona Public Service (Private Sector); Christy McClendon, President/CEO, New Pathways for Youth (Public Sector); Pearl Chang Esau, President & CEO, Expect More Arizona (Young Professional)

Greater Phoenix Chamber of Commerce

28th Annual ATHENA Awards

Enterprise Bank & Trust

Enterprise University — ‘Sales Management’

Thurs., Oct. 29 / 11:00a – 1:00p

Thurs., Sept. 24 / 7:45a – 9:45a The fall program of Enterprise University kicks off Sept. 24th with a workshop on sales management. This is the eighth semester Enterprise Bank & Trust has offered the classes in Phoenix, after first establishing the program in 2003 in the company’s headquarters city, St. Louis, and in Kansas City, where the company also has a base. This fall’s Phoenix EU courses will be held at the Arizona Small Business Association.

EU provides free educational seminars on a variety of topics pertinent to business owners and Valley professionals, and encourages them to think strategically and collaboratively. Overall, EU has offered 152 unique courses since its inception, covering 684 class dates, and expands its curriculum as markets begin to emerge. Classes are open to non-clients of the bank; the bank’s executives are fully supportive of this program and believe it is one of the best ways the bank can continue to give back to the business communities it does business in.

“Enterprise University gives us a platform to connect with Phoenix business owners and leaders by providing them with access to resources that are beneficial to the growth of their business,” said Enterprise Bank & Trust Arizona Region President and CEO, Jack Barry.

Each year, EU presents a spring and a fall semester of three classes each. All sessions start with a half-hour of networking. The workshop Sept. 24th on sales management will be taught by Brad Ferguson, CEO of Best Sales Force, Inc. The second workshop, to be held on Wednesday, Oct. 21st, is “What Banks Look For,” with instructors: Jack Barry, president and CEO for the Arizona Region of Enterprise Bank &Trust, and Steve Marsh, chairman and chief credit officer of Enterprise Bank & Trust. The semester’s final workshop, to be held Thursday, Nov. 19, is “Why the Economy Has Been Stuck in Low Gear for Years,” with instructor: Stephen Happel, Ph.D., professor emeritus of economics at Arizona State University’s W.P. Carey School of Business.

Classes are free, but registration is required.

Free Arizona Small Business Association 4600 E. Washington St., Phoenix enterprisebank.com/eu SEPTEMBER 2015

OCTOBER 2015

S M T W T F S

S M T W T F S

ATHENA Award recipients will be announced at the Greater Phoenix Chamber of Commerce’s 28th Annual ATHENA Awards luncheon. The ATHENA Award highlights women who have achieved the pinnacle of success within their industry, have mentored women throughout their career, and have dedicated themselves to the community through various activities and charities. The ATHENA Award, a program of the international ATHENA organization founded by Martha Mertz in 1982, supports, develops and honors women leaders and pushes them to reach their full potential by invoking the ideals of the Greek goddess of courage, wisdom, arts and science.

Winners will not be named until the event.

Winnowed from the 40 outstanding women who were nominated this year are 11 finalists. For the ATHENA Private Sector Award are Judi Butterworth, of Velocity Retail Group; Heidi Jannenga, of WebPT; Melissa Sanderson, of Freeport-McMoRan Inc.; and Kay Wing, of Southwest Advanced Neurological Rehabilitation (SWAN Rehab). For the ATHENA Public Sector Award are Cathy Brown, of First Things First; Lillian Garcia, of the American Red Cross; Sunnee O’Rork, of i.d.e.a.

Museum; and Leah Fregulia Roberts, of Arizona School for the Arts. For the ATHENA Young Professional Award are Jessica Hipskind, of the University of Phoenix; Ashley Kasarjian, of Snell & Wilmer L.L.P.; and Lea Phillips, of Ballard Spahr L.L.P. “These exemplary women represent professional excellence and leadership of the highest honor and have a genuine desire to inspire, develop and support other women to achieve their full potential,” says Todd Sanders, president and CEO of the Greater Phoenix Chamber of Commerce. “They make our community a better place in which to live, work and play.”

With Dignity Health and Chandler Chamber of Commerce, Heart Health Organization presents this event, with proceeds supporting a heart and vascular center of excellence in the Southeast Valley. chandlerchamber.com 20th Annual Gilbert Community Excellence Awards Nov.

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Fri., Nov. 13

Sponsored by APS, this formal evening is filled with celebration as attendees honor those in the community who have excelled in the areas of business, education and community involvement. gilbertchamber.com 4th Annual Guest Editor Economic Symposium Nov.

Wed., Nov. 18

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In Business Magazine brings together the elite of the Valley’s business community in this annual symposium, with this year’s topic “What will it take to make Arizona great again?” inbusinessmag.com 30th Annual Sterling Awards Nov.

Fri., Nov. 20

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scottsdalechamber.com Mon., Oct. 12 Columbus Day

Mon., Sept. 14 Rosh Hashanah

Sat., Oct. 31 Halloween

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phoenixchamber.com Mon., Sept. 7 Labor Day

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Sat., Nov. 7

The Arizona Biltmore, A Waldorf Astoria Resort 2400 E. Missouri Ave., Phoenix

Members and nominees: $75; non-members: $85; registration closes 5:00p on Oct. 15

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Nov.

Scottsdale Area Chamber of Commerce’s marquee event, celebrating the people and companies that make the community a great place to live, work and play.

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Cruising for a Cause Laughter is the Best Medicine Gala

Wed., Sept. 23 Y om Kippur Autumnal Equinox

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SEPTEMBER 2015 Wed., Sept. 2

Thurs., Sept. 17

7:00a – 10:00a

11:30a – 1:00p

Economic Outlook 2016

Hot Topics & Lunch

Greater Phoenix Chamber of Commerce

Tempe Chamber of Commerce

Attend the Valley’s premier economic forecast event to gain a greater understanding about what challenges and opportunities lie ahead to be better prepared for success heading into the year to come. David Brancaccio, award-winning journalist and host of American Public Media’s Jim Huntzinger Marketplace Morning Report, will share his experiences and insights about the state of our global economy. Jim Huntzinger, executive vice president and chief investment officer of BOK Financial, will discuss the national economy, primarily focusing on the financial markets.

Elliott Pollack And veteran Arizona economist Elliott Pollack will look at the commercial real estate forecast and other aspects of our state’s economy for a look at what the future could bring.

“Business Women of the Year Roundtable” provides the chance to hear from three of the most recent recipients of the Tempe Chamber’s prestigious award. These amazing women will have a conversation about what it takes to succeed in life and business as they share inspirational stories about their lives and experiences.

Jodi Polanski, Robin Trick and Christine Wilkinson comprise the panel.

Members: $75; non-members: $ 85

Members: free; non-members: $35

Panel discussion about how to get your business going on a small budget. Three well-known Valley-area Latino small-business owners will share their tips on how to market your business when funds are tight. There will be lessons for entrepreneurs, one-person agencies, nonprofits and more. And, as always, complimentary food as well as adult beverages.

Arizona Biltmore, A Waldorf Astoria Resort

Maricopa Association of Governments

Free

2400 E. Missouri Ave., Phoenix

302 N. First Ave., Phoenix

Civic Space Park

owit.org

azhcc.com

phoenixchamber.com

2

9

Wed., Sept. 9

Members: $25, non-members: $35 InnSuites Airport Hotel

1651 W. Baseline Rd., Tempe

tempechamber.org Thurs., Sept. 17

Wed., Sept. 23

8:30a – 10:30a

How to Execute a Customs Broker Bid

Bootstrapping Your Marketing for Small Business Arizona Hispanic Chamber of Commerce

Organization of Women in International Trade – Phoenix Special guest speaker: Stephanie Ierly, manager of customs compliance for PetSmart Corporation.

12

5:30p – 7:30p

15

7:30a – 9:00a

17

23

Tues., Sept. 15

Small Business Tips Series

424 N. Central Ave., Phoenix

24 11:30a – 1:00p

Blogging and Twitter Strategies to Spread Your Message

Scottsdale Area Chamber of Commerce

Arizona Small Business Association

Join Chip Wittrock for a series focused on business tips. Find out what you are missing and what you need to know to take your business to the next level! $20

Most people are unaware that Twitter is considered micro-blogging, whereby you are spreading your message in 140 characters or less.

Similar to texting, you can share your message with the world, and build your business network online. Come learn how!

Scottsdale Area Chamber of Commerce

$10

7501 E. McCormick Pkwy., Scottsdale

Arizona Small Business Association

scottsdalechamber.com

asba.com

Sat., Sept. 12

5:30p – 8:00p

Thurs., Sept. 24

8:00a – 9:00a

35th Annual Environmental Excellence Awards

Business Owners Forum

Arizona Forward

Tempe Chamber of Commerce

Presented by Arizona Forward, in partnership with SRP for the 14th consecutive year. Known as the “Academy Awards” of the environmental community, the event is Arizona’s oldest and most prominent competition of its kind. It spotlights distinguished projects throughout the state of Arizona that demonstrate a high level of environmental commitment and contribute to the state’s overall sustainability.

Breakfast and discussions about current issues and business-related topics. This free event is an extremely effective owner-to-owner networking event that has proven exceptionally valuable to attendees. Attendance is limited to business owners only. Sponsored by CenturyLink.

Members: $200; non-members: $220

Members: free; non-members: $10

Chateau Luxe

Special Moments Catering

1175 E. Lone Cactus Dr., Phoenix

arizonaforward.org

SEPT. OCT. 20 1 5

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INBUSINESSMAG.COM

4600 E. Washington St., Phoenix

7425 Harl Ave., Tempe

tempechamber.org

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

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

25

OCTOBER 2015 Fri., Oct. 16

8:00a – 7:00p

Business Luncheon Arizona Black Chamber of Commerce This event marks the chamber’s first step toward creating and branding strong cooperative business relationships among “women of color” in Arizona. The inaugural event is intended to provide an environment for, by and about “women of color” that promotes equity, education and professional development. $65

The Black Chamber of Arizona

201 E. Washington St., Phoenix

blackchamberaz.com Thurs., Oct. 1

7:30a – 4:00p Wed., Oct. 21

Innovation Arizona Summit

5:30p – 7:00p

Ahwatukee After 5 Evening Mixer

Arizona Commerce Authority As a joint collaborative of Arizona SciTech and the Arizona Commerce Authority, the Innovation Arizona Summit will explore the lifecycle of Innovation — from Inspiration to Commercialization. The summit will empower collaborators to expand their networks and engage in unique discussions around science, technology, entrepreneurship and innovation. What makes this summit so unique is the diversity of collaborators represented: business, industry, education, government, NGOs, community leaders and more.

Ahwatukee Foothills Chamber of Commerce Business-to-business networking.

Members are encouraged to bring a door prize to promote their business.

Tues., Oct. 27

5:30p – late

Chandler 100 Chandler Chamber of Commerce One of the Chandler Chamber’s biggest events of the year, Chandler 100 will showcase the top 100 business in the city. Chandler Mayor Jay Tibshraeny will be on hand to recognize this year’s honorees.

$20

Members: $5; non-members: $15

Scottsdale Center for the Arts

Von Hanson’s Meats & Spirits

Chandler Center for the Arts

7380 E. 2nd St., Scottsdale

2390 N. Alma School Rd., Chandler

250 N. Arizona Ave., Chandler

azcommerce.com

ahwatukeechamber.com

chandlerchamber.com

1

8

13

15

16

21

Price

27

30 Fri., Oct. 30

8:00a – 2:00p

Manufacturing Summit & Awards Luncheon Thurs., Oct. 15

5:00p – 7:00p

Business After Hours Glendale Chamber of Commerce Network with other businesspeople in a relaxed setting.

Members: free; non-members: $25 DeVry University

6751 N. Sunset Blvd., Glendale

glendalechamber.org Thurs., Oct. 8

Arizona Manufacturers Council / Arizona Chamber of Commerce and Industry The summit will consist of various informative panels recognizing achievement and contributions from local businesses and organizations. Awards will be given for Manufacturer of the Year, Outstanding Small/Medium Manufacturer, Excellence in Innovation, and Excellence in Sustainability. The Luncheon will host the annual Congressional Panel featuring many from our Arizona delegation.

Members: $95; non-members: $120

5:30p – 8:30p

Arizona Biltmore Resort

GPEC Annual Dinner

Tues., Oct. 13

Greater Phoenix Economic Council

Grow Your Business

Each year, GPEC hosts its Annual Dinner to celebrate recent and past successes, recognizing key individuals who have made significant contributions toward improving the region and supporting GPEC’s mission.

Mesa Chamber of Commerce

11:30a – 1:00p

Members: $200; non-members: $250

Attendees will learn from industry leaders new and practical tips to employ in the success of their businesses. Lunch is included, and networking adds an additional dimension to this educational event that takes place the second Tuesday of each month.

Arizona Biltmore

Members: $15; non-members: $25

2400 E. Missouri Ave., Phoenix

Carrabba’s Italian Grill

gpec.org

mesachamber.com

2400 E. Missouri Ave., Phoenix azchamber.com

1740 S. Clearview, Mesa

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

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SEPT. OCT. 20 1 5

INBUSINESSMAG.COM

WE VALUE WHAT WE OWN

BY MIKE HUNTER

2015 Land Rover Discovery Sport

City: 20 mpg Hwy: 26 mpg Transmission: 9-speed Automatic 0-60: 7.8 sec MSRP: $37, 070

Known as the luxury SUV brand around the world, Land Rover has continually shaped the market with multiple models to accommodate for size, price, performance and terrain. The 2015 Land Rover Discovery comes at a time when the market is being dominated again by sportier and more efficient SUVs. The Discovery may be the perfect option.

The 4-cylinder, 2.0-liter, Turbocharged I-4 engine is a master of design and efficiency. It outputs an impressive 240 horse power and 250 pound-feet of torque. With a max speed of 125 mph and a 0-60 clocked time of 7.8 seconds, this midsized SUV can perform and please drivers who are used to

more power under the hood. The eco efficiency of this vehicle is getting great acclaim in that its technologies are leveraged to ensure smooth transmission, fuel efficiencies and terrain alternatives to improve carbon dioxide emissions output.

The sleek and simple design is a new trademark look that Land Rover has accomplished across all of its models. This midsized option is well-proportioned, resulting in a modern and compact vehicle. The sleek exterior comes inside to evoke a cockpit that is comfortable and adorned with only the best to enhance the overall experience and comfort.

The three rows of seating accommodate five adults and two children comfortably while allowing for added room and an open cabin. The premium leather and convenient instrument panel design that Land Rover is known for make driving this vehicle a pleasure. Land Rover’s premium audio system boasts 10 speakers and engulfs the cabin with noise-cancelling sound. The eight-inch color touchscreen is a virtual infotainment center, with audio, navigation, eco data, Bluetooth® and multimedia connectivity and more.

WATER & WADING Land Rovers have long been all-terrain vehicles with a very practical off-road element. In fact, most dealerships have a track they can take prospective buyers on to demonstrate the vehicle’s characteristics.

The Discovery has a wading depth of 23.6 inches and a turning radius of 38.1 feet.

Land Rover landroverusa.com

Phone Bashing The smartphone is any businessperson’s best asset. To protect that asset, one may wish to obtain an insurance plan through one’s carrier. However, to offset any downtime, it may be necessary to have the right case to protect this asset from any injury. Here are our picks for the best, given what a businessperson may be doing to destroy his or her phone.

SEPT. OCT. 20 1 5

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INBUSINESSMAG.COM

Lifeproof Known to cover life’s accidents and adventures, this brand boasts four areas of proofing: water, dirt prof, snow and shock. Cases are available for the most popular devices, including Apple, Samsung and Motorola. $80 to $130. lifeproof.com

Otterbox Recognized as an innovator of protective solutions for the leading global handheld manufacturers, wireless carriers and distributors, Otterbox is a leader in the protective case world and has many different models to handle virtually any situation.

Options for all major brands of smartphones. $40 to $250. otterbox.com

Trident Whether it’s protecting the device or making it more efficient, Trident offers seven different product series that support a broad range of mobile devices to protect the “impacts of your life.”

Major smartphone brands are supported. $40 to $80. tridentcase.com

Go Black: The black design package for the Discovery Sport includes 19-inch, 5-spoke, Style 521 alloy wheels; a black contrast roof; black mirrors; and black lettering and badging.

Photos courtesy of Land Rover (top and far left), Lifeproof, Otterbox, Trident (bottom)

2015 LAND ROVER DISCOVERY SPORT

Save the Date An Afternoon of Fashion, Fun & Festivities Co-Chairs: Meredith McGuire & Candace Wiest

benefiting

presented by

Friday, October 2, 2015 Wigwam Resort & Spa Litchfield Park, Arizona Bellinis & Networking - 12:00 p.m.

Luncheon & Show - 1:00 p.m.

Happy Hour - 3:00 p.m.

Tickets start at $100 Tables of 10 start at $1,000 Sponsorships Available More Information 623-207-3009/ www.azaih.org Follow us on Facebook facebook.com/Project Pink-AZ

Mark Your Calendar Sports Gala

Saturday, January 30, 2016 Co-Chairs George & Sandra McGann

MEALS THAT MATTER

BY MIKE HUNTER

The Vig: Four Neighborhood Hotspots

Grilled Potatoes, wilted greens, mango chutney & yellow pepper vinaigrette $17

VIGAZZ BURGER Bacon, smoked gouda, tomato, grilled red onion, spicy mayo & mustard on a Kaiser roll $11

Fillmore — 606 N. 4th Ave., Phoenix; (602) 254-2242 Uptown — 6015 N 16th St., Phoenix; (602) 633-1187 McCormick Ranch — 7345 N. Via Paseo Del Sur, Scottsdale; (480) 758-5399 thevig.us

It’s still one of the most popular meals in

Pizzeria Bianco Town & Country

The Parlor

This Westside gem is famous from the “Diners,

The famed pizza hot spot,

Network’s top spots for a

Drive-ins & Dives”

known for diners like Oprah

cross-country pizza road

Food Network’s serious

and celebrities of all kinds,

trip, this former salon

attention several year ago.

has expanded to include this

was transformed to one

Known for its amazing

amazing location in Town &

of the Valley’s best spots

crust and authentic

Country. Chris Bianco’s pizzas

for pizza. Authentic hand-

brick-oven baking, La

are as authentic as they

made dough and the best

Piazza is a must for any

come and his crafty genius

ingredients are just part

discrimination pizza junky.

behind his options will entice

of why this place has

5803 W. Glendale Ave.,

guests to never forget and

become world-renowned.

Glendale

always come back.

1916 E. Camelback Rd.,

(623) 847-3301

4743 N. 20th St., Phoenix

Phoenix

lapiazzaalforno.com

(602) 368-3273

(602) 248-2480

pizzeriabianco.com

theparlor.us

lunchtime pizza one can find in the Valley.

Pizzeria Bianco

INBUSINESSMAG.COM

Arcadia — 4041 N 40th St., Phoenix; (602) 553-7227

La Piazza al Forno

Here are our picks for some of the best

36

The Vig

Pizza, Pizza, Pizza America and always a great idea for lunch.

SEPT. OCT. 20 1 5

which can be customized to include bacon, chicken, chorizo or broccoli atop the campanelle pasta smothered in American, white cheddar and gruyere cheeses.

While the food will keep guests coming back, the atmosphere of fun is also a great enticement. Each location has its unique look and appeal. The Uptown location is set in an historic former bank building with an enclosed patio and seating that makes for a great place to do an event. The patio at the Arcadia location is always a hot spot on weekends and in the cooler evenings, with live music and plenty of seating in what feels like a modern backyard. Patrons can play bocce ball or any number of games to further their experience. Each location has lively weekend events, such as brunch DJs at the Fillmore location and a jampacked happy hour at the McCormick Ranch Vig.

Named as one of Food

Fundraise for Your Cause. The Vig offers its locations to generate funds for local organizations by donating 20 percent of the total pre-tax sales for organized timeframes Monday through Wednesdays in an effort to give back within each of the communities surrounding the Vig locations. thevig.us/fundraising

Photos courtesy of The Vig (top and far left), Pizzeria Bianco (bottom)

FRESH HERB GRILLED SALMON

The Vig restaurants began with a first location in the Arcadia neighborhood — to great acclaim. The intent was to create a family-friendly and fun neighborhood tavern serving American and tavern-inspired comfort food at a good price with the highest-quality ingredients. Today, there are four Valley locations; each has its unique amenities, but all share in the lively and flavorful concept.

The menu at The Vigs ranges from salads and healthy plates to rich and delectable dishes — all comfort food and all delicious. For the most part, each location has the same menu. For lunch, a favorite is the Lean & Green Steak Salad made with flat iron steak, seasonal vegetables and arugula tossed in a red wine vinaigrette with gorgonzola, parmesano, reggiano cheeses and an aged balsamic. The Prime Vig Dip is also a satisfying choice as it is made with medium rare sliced beef, smoked Gouda and grilled onions on a pretzel bun spread with a chipotle mayo and then accompanied with au jus. One of the special dishes is the Vanilla Braised Short Rib Tacos, which are rich and delicious and come on a flour tortilla topped with Asian sweet glaze, house-made kimchi, spicy aioli and crispy shallots. Also an all-around favorite is the Holy Mac & Cheese,

GLOBAL Global Chamber® Events www.globalchamber.org/events

Global Chamber® Phoenix

Wed., Sept. 9 “League of Extraordinaries” High-level networking with successful global companies.

4:00pm to 5:30pm RSVP to events@globalchamber.org

SPOTLIGHT EVENT Global Chamber® Phoenix

Fri., Sept. 18 “Aerospace and Aviation Tour, with the Phoenicians” Global Chamber Phoenix and Phoenix Chamber Phoenician Committee, tour of Able Aerospace, Mesa-Gateway Airport and more.

8am to 1pm RSVP to events@globalchamber.org Global Chamber® Tucson

Wed., Sept. 23 “Tucson Tech Going Global” Tucson-area tech companies tackle the world, and share tips on growing globally, with the AZ Tech Council.

8am to 10am RSVP to events@globalchamber.org Global Chamber® Virtual Event

Thurs., Sept. 24 “International Business” Virtual Event in Google Hangouts and featuring three outstanding speakers.

8am to 10am RSVP to events@globalchamber.org

Inside this section

2 The Case for Global Boards 3 Be There, from Anywhere Global: Do Your Homework or 4 Going ‘Come a Cropper’ 5 Multiply Your Global Leadership Impact Avoiding Taxes on 6 Legally International Business 7 Fronteras: The Changing America Desk

® CHAMBER SEPTEMBER — DECEMBER 2015

Five Tips from Brilliant Global Leaders Doug Bruhnke, CEO/Founder at Global Chamber®

It’s inspirational to hang out with the brilliant leaders at the Global Chamber® across 500 metro areas around the world. Here are five tips from our inspiring members for executives on growing business globally.

1. Think Global. It’s harder than it sounds because we surround ourselves with local people and local organizations, and yet the opportunities are “out there” … somewhere else.

So thinking globally — like Kyle Walker (Shanghai) Mike Patterson (Polsinelli) and Carlos Slim (world’s second-richest man) of Green Card Fund — is an essential part of success. In baseball, “hit ’em where they ain’t”; in business, “go to where they are.” Kyle and his team definitely think global.

2. Have a Plan. Global business requires a higher level of foundational capability for companies. This is why, as part of Export Circlessm, we work with companies on their basic strengths along with the other areas they need to cross borders. CEO Lee Benson (Phoenix) of Able Aerospace, with 40 percent of sales as exports from the U.S. focuses his team on having a great plan, and then, of course, executing! But first, have a plan!

3. Hire Talent. Vendome Partners’ Fabien Bertault (Paris) shares in our Video Room the special hiring requirements of global companies looking for globally talented professionals and executives. It’s not easy, but it’s also not difficult when you use the services of Fabien’s team. At the board level, Susan Shultz writes this month in In Business Magazine on why and how to create a global board of directors (next page).

4. Share the Global Love. Melissa Sanderson of global mining giant Freeport McMoRan is so globally aware after eight foreign assignments, including eight years in the Democratic Republic of the Congo (Kinshasha), that she can handle all things global by herself, thank you. But she includes her team and shares information with everyone, because more gets done. It’s a wonderful best practice, and few companies practice it.

5. Execute and Stick To It. The global team of Polsinelli led by Tony Nasharr (Chicago) is consistently connected to the world … executing tirelessly on behalf of clients.

That’s what it takes for executives and their service providers, because one moment of distraction creates legal or other issues that can unravel success very quickly. Think, plan, hire, share … and execute. And stick to it!

Global Chamber® www.globalchamber.org This section was published in the September 2015 issue of In Business Magazine.

GlobalChamber.org

1

The Case for Global Boards

Susan Shultz, Founder/CEO of The Board Institute, Inc., President and Board Practice Chair of SSA Executive Search International/INAC Global

In the largest and wealthiest market in the world, businesses in the United States have had the luxury of choosing whether or not to go global. No longer.

More than 37 percent of the revenue generated by S&P 500 companies now comes from international sources. Only 28 percent of S&P companies generate all of their revenue in the United States. Nearly three-quarters of all S&P companies report international revenue. And the velocity of globalism is accelerating.

When a company is invested in a particular market, it can gain significant advantage by bringing on board members who know that region. Yet only 7 percent of company directors are foreign nationals, and only 14 percent have meaningful international work experience. Even in companies that generate 50 percent or more of their revenue from non-U.S. sources, only 20 percent of directors have meaningful global experience1.

Why the disconnect? One reason is that we tend to be most comfortable with people just like us, especially on our boards.

Another reason is that too many boards take an ad hoc approach to recruiting board members, so they simply don’t know about potential global candidates.

Yet, as borders blur, nothing is more important than being able to trust the financial integrity of companies we do business with; nothing is more important than being able to have confidence in the leadership of these companies. The importance of global boards for Fortune 500s is increasingly recognized.

“Joining Global Chamber has been our best business decision this year.”

—Bill Papazian, Lightstone Solutions

Until now, the boards of mid-sized and small, private services, closely held, and/ or pre-IPO companies are particularly nonglobal. Yet every company, regardless of size or complexion, can recruit board members precisely to meet critical global needs and add value — because strategic boards impact an organization.

Why do strategic global boards matter?

What advantages does your company realize from them?

Gain unique global market insights.

• Add expertise and strategic perspective at the highest levels.

• Increase transparency and accountability that is now expected and required by constituencies — shareholders, insurers, bankers, investors, employees, partners, suppliers, customers and the Street.

• Benchmark more strongly against other companies across borders. The board is a common denominator, a universal metric.

• Leverage and access global connections at a powerful level.

• Identify investment.

• Gain global validation of your company.

• Avoid crises — the wrong acquisition, a corrupt partner, the compromised strategy, etc.

• Reach out and partner across borders with your board to customers, partners, etc.

• Gain oversight and embed ethics and integrity.

• Enable diversity of thought, expertise and gender in order to be responsive to your constituencies.

• Focus on the future to deflect risk and optimize opportunities.

Global boards are the future. Not only are our best companies recruiting board members to carry them into global markets, the best global non-U.S. companies will increasingly seek Americans on their boards.

The opportunity is to recruit proactively and use boards as a critical success factor in the global environment.

SSA Executive Search International www.ssaexec.com

Susan F. Shultz is founder/CEO of The Board Institute, Inc., which improves boards through scientific, Webbased, independent, and evaluation and education solutions for the board, committees and individual directors. She is president and board practice chair of SSA Executive Search International/INAC Global, which recruits and structures boards of directors, with offices in 46 countries.

1. 2014, Harvard Business Review, “Boards Aren’t as Global as Their Businesses”

2

Global Chamber®

This article was published in the September 2015 issue of In Business Magazine.

Be There, from Anywhere Dakota Drake, Operations Manager of Global Chamber®

We’re all busy these days, and so Global Chamber® has introduced two new ways for members around the world to attend more of our events everywhere, from anywhere.

Members may attend Global Chamber Virtual Events or “Periscope” in to live events from the comfort of wherever they are.

Our virtual events bring together seasoned global experts via Google Hangouts on specific, relevant global topics in a conversational setting that is accessible by our members and collaborators. Recent examples were “Social Entrepreneurship” and “Marketing without Borders.”

For “Social Entrepreneurship” we brought together Bishal Dahal, Global Chamber Kathmandu executive director, with Katie Mabardy (Project C.U.R.E.) and moderator Professor Richard Filley (Arizona State

University). We learned about current trends with social entrepreneurship, its staying power as a movement, and the differences that individuals and private companies can have on their communities. For “Marketing Without Borders,” we featured moderator Jeffrey Campos (Global Chamber Denver) with Jamie Turner (60 Second Communications) and Lucie Newcomb (The NewComm Global Group).

Virtual Events take place on the fourth Tuesday of every month, and the next one is September 24th. Join us!

Events where you can Periscope in are coming this fall. Join Global Chamber, register in Periscope, and join in the global fun. Members will be updated on which events are selected for this feature.

Be a part of an event that reaches the world.

Stay tuned to globalchamber.org/events.

We’re the world’s only global business community growing trade across every border while collaborating with business organizations in 500 metro areas.

Do business in one city? Join a local chamber. Do business in multiple cities and multiple metropolitan areas? Join the Global Chamber and change your world!

Global Chamber® www.globalchamber.org

“The Global Chamber is doing a great job helping to change the business landscape here.”

—Alana Chavez-Langdon, Maricopa Association of Governments

GlobalChamber.org

3

Going Global: Do Your Homework or ‘Come a Cropper’ Jan Knight

“Come a cropper” is a mostly British phrase meaning “fail at some venture.” While it’s not likely to come up in a face-to-face business meeting with a new potential British client, it may well come up in a casual conversation at the corner pub after you leave that face-toface meeting.

Language, whether it be professional, casual or idiomatic, is just one small, sometimes fun, potentially disastrous piece of the puzzle in international business and part of the concept of “Cultural Intelligence.”

You DO need to understand the cultural background and behavior of people you need to deal with as partners, customers or vendors.

Tips for Researching International Markets

Business Intelligence is also crucial to determine if there even is a market overseas, let alone who they might be, how they buy and, in many cases, who do they currently buy from (i.e., your potential competition). Researching markets, industries and competitors is a must whether you’re just exploring or writing a full-fledged business plan. Here are a few tips for international research.

What do “they” call that thing?

• Purse vs Handbag vs Wallet. Imagine you’re attempting to identify the market size for a new type of women’s purse in the UK? Make sure to search on the term handbag, or some variant, because in the UK a purse is what money is carried in (aka U.S. wallet) and this in turn is often carried INSIDE a handbag (aka U.S. purse).

• Bespoke. Many of us may relate this term to the clothing and tailoring industry and it’s roughly equated to “made-to-measure” versus “off-the-rack.” Certain international audiences now use the term to refer to almost anything custom. Some see it as a differentiator in consulting and, in fact, if you Google™ “bespoke consulting” dentists UK (presumably you’re looking for a consultant who works specifically with dentists!) you would find people who do just that.

Spelling • Most are familiar with color in the U.S. vs colour in the UK, but some differences could really trip up a researcher looking at international markets. A Google™ search for Aluminum shutters market size (note the lack of the “i”) results in about 106,000 results. The same search spelling it the Australian or UK way as

4

Global Chamber®

aluminium shutters brings up half that amount but with some focusing on markets other than the U.S. Don’t just “dot.com” it!

• I tell clients, “Don’t Just Google™ it,” and, usually, I’m encouraging the use of tools rather than search engines. However, for international research, I encourage not using just the U.S. version of the ubiquitous search engine. There are not only countryspecific Google™ search engines such as google.co.au (Australia), google.co.uk (UK), google.co.jp (Japan) etc., but many countries have their own specific search engines in their own language.

• Admittedly, language can sometimes be a problem, but maybe you need to hire someone who speaks Czech to search Seznam. cz or Russian to search Yandex.ru, a company that once boasted having a 60-percent market share in search. However, in this case, Yandex also has an English language version, yandex.com, so there’s no excuse.

Once your homework has shown a potential market opportunity, it’s also critical to understand how to market specifically to that local region or country. Ensure your website and marketing materials and messages are “bespoke” to that market one could say!

Bottom line: Don’t “come a cropper” in your attempts in international business. Do your homework.

Bancroft Information Services www.bancroftinfo.com

Upcoming Thunderbird Programs henonso Fuzita, S Thunderbird School of Global Management

Thunderbird Executive Education provides a global education wherever you are in the world — and whatever your global business issues may be — with open enrollment to online and custom programs.

Improve your leadership, understand global markets and learn from world-renowned faculty via the Web or on campus. Information is available on the Thunderbird website (www.thunderbird.edu/execed).

Open Enrollment Programs

• Leading Teams for Strategic Results, Sept 14 – 16, 2015 • Fundamentals of the Oil & Gas Industry: Understanding the Global Business, Sept 28 – Oct 1, 2015 • Strategic Global Negotiations, Oct 5 – 7, 2015 • Global Leadership in Turbulent Times, Oct 26 – 28, 2015 • Thunderbird International Consortia, Nov 1 – 12, 2015 • Creating Value through Global Strategy, Nov 2 – 6, 2015 • Advanced Management Program for Oil and Gas Industry Executives, Nov 29 – Dec 11, 2015 Online Programs

Professional development certificate programs (online.thunderbird.edu) provide you with a comprehensive education in core global business concepts to broaden your global mindset, sharpen your global skills and enhance your marketability. The next cohort begins Sept. 7th and the first Monday of every month thereafter.

Custom Programs

Thunderbird Executive Education partners with companies of all sizes — from new entrants to established multinationals — to create customized, integrated talent development experiences that sharpen performance and improve organizational capability.

Thunderbird School of Global Management www.thunderbird.edu

Multiply Your Global Leadership Impact

by Gary Covert, Alpha Performance Coach

Many leaders of organizations with global aspirations have a wealth of global business experience. This experience serves them well in guiding their organization to opportunities and improves their individual performance. But how about translating that experience for the larger organization?

How can savvy global leaders multiply their impact beyond themselves?

Below are five actions leaders can take to multiply their global impact immediately.

Develop the global potential of team members. Don’t expect the global abilities of the team to improve by accident or through osmosis. Make development of global potential an active process. There are many high-quality resources for training and development. Resources vary by intensity and cost and can include online training, onsite training and one-on-one coaching. Make some resources available to your team and make global development a part of formal employee development plans. Development might include learning about the specific cultural or business environment of a country or could be more broadbased and geared to cultural awareness.

Incentivize team members for global outcomes. This is where Peter Drucker’s wisdom of “what gets measured, gets managed” comes into play. Make some part of team members’ goals to be expressly global in nature. Examples of goals could be to identify opportunities and resources for global exports or establishing a go-to-market route in a specific region. Documenting the goal and linking to appraisals of performance will focus attention and give solid direction to global efforts.

Show global to be of value in the organization. Look for ways to promote global as something valuable and something on which the team should focus. This can be done by communicating direct linkages of the value of global impact with the organizational mission or by highlighting and praising global efforts and outcomes.

Be constantly on the lookout for opportunities to highlight global successes.

Hire for global potential. One of the key drivers of global potential is actual interest and passion for global environments. Some people are very comfortable with their own backyards and this will limit their ability to work at a high level in a global context. Look for people with a global perspective and a passion for the complexities that often come with the global territory. In the interview, look for examples of the ability to think globally and deal with ambiguity.

Mentor high potentials. If you are a leader with deep global experience, then consider taking some of your valuable time and invest it directly as a mentor in one or more of your high-potential team members. The direct assistance, guidance and perspective of someone who has been there and done that can accelerate the development of people by months and even years.

Alpha Performance Coach www.alphaperformancecoach.com

GlobalChamber.org

5

Legally Avoiding Taxes on International Business

by Pallav Acharya, CPA, FCA, CGMA, LL.B

If you start an offshore entity in a low-tax country, can you bring down your tax? The answer to this question is not easy. Generally U.S. tax code does not tax foreign business profits earned through a foreign subsidiary until the subsidiary repatriates the earnings by way of dividend. This deferral allows the U.S. companies to compete globally. However, this deferral also creates an opportunity for avoiding U.S. taxes on trading and other profits that can easily be shifted to a low-tax jurisdictions and tax-heaven countries. The modus operandi: U.S. entity sells to subsidiaries incorporated in such low- or zero-tax jurisdictions at an artificially low price. The subsidiary then sells at a higher price, retain the profit and pay no or low tax in such tax heavens.

Internal Revenue Code has created certain anti-avoidance tax provisions that, for the most part, prevent any tax planning involving shifting of profits offshore. This article briefly discusses two such provisions, namely “Subpart F” income and “Passive Foreign Investment Companies or PFIC.” Subpart F income provisions: When a U.S taxpayer owns at least 51 percent of ownership in a foreign corporation, it becomes a controlled foreign corporation (CFC). Subpart F requires every U.S. shareholder of CFC who owns stock in such corporation on the last day of CFC’s taxable year, to include in gross income a deemed dividend equal to the shareholder’s pro rata share of the CFC’s tainted earnings.

Subpart F income includes foreign base company sales income that includes any gross profit, commissions, fees, or other income derived from sales of personal property when: 1. CFC buys the goods from or sells them to a related person; 2. The property is manufactured, produced, grown or extracted outside the CFC’s country of incorporation;

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Global Chamber®

3. The property is sold for use, consumption or disposition outside the CFC’s country of incorporation.

Therefore, if the inventory is neither manufactured nor sold for use in the CFC’s country of incorporation, then it is assumed that the CFC is not a bona fide foreign manufacturing or marketing subsidiary, but rather a base company organized to avoid tax.

PFIC provisions: When U.S. investors invest in foreign mutual funds, reporting assumes complexities. Foreign mutual funds are called “PFIC” under the Code, which contains not-so-friendly rules.

PFICs are foreign corporations that satisfy either of two tests. Under the first test, 75 percent or more of the gross income for the taxable year is passive income. Under the second test, 50 percent of the assets held by the foreign corporation during the taxable year must be held to produce passive income.

Passive income is essentially dividends, interest, rents, royalties, annuities and certain gains. Foreign mutual funds are generally covered by the definition and are considered PFICs. How do the rules apply? If a foreign corporation is PFIC, U.S. shareholders are taxed on the passive income regardless of their ownership in the foreign corporation.

When a shareholder disposes of an interest in a PFIC, the shareholder is taxed on the value of the accumulated earnings in that interest, and not just on gain. In addition, interest on the tax is calculated as if the taxable amount were distributed during the shareholder’s holding period.

Anti-deferral provisions are complex and you should consult an international tax advisor before deciding on any tax-planning strategies.

CPA Global Tax & Accounting www.CPAGlobalTax.com

Fronteras: The Changing America Desk

by Linda Pastori, Associate General Manager, KJZZ/K-BACH Radio

Global Chamber®

Global Chamber Phoenix and Tucson Chairman/CEO Sponsors Polsinelli Thunderbird Online Lightstone Solutions Growth Nation InWhatLanguage.com President Sponsors Galbut & Galbut BMO Harris Bank Security Strategies Today DIRTT Squire Patton Boggs Special Global Advisors Keith Galbut, Galbut & Galbut PC Charles Bruce, Johnny Rockets, The Original Hamburger Hank Marshall, UK Honorary Consul in Arizona Melissa Sanderson, Freeport McMoRan Kiyoko Toyama Michael Patterson, Polsinelli Don Henninger, DH Advisors, Global Chamber Lee Benson, Able Engineering Committees Asia Canada Careers Europe Exporting Mexico Contacts CEO/Founder: Doug Bruhnke, doug@globalchamber.org Community Developer: Shiena Amigo, shiena@globalchamber.org Media Contact: Arielle Cottrell, arielle@globalchamber.org Membership: Dakota Drake, dakota@globalchamber.org

KJZZ Phoenix announces the opening of its Mexico City Bureau as the next step in the expansion of its Fronteras: The Changing America Desk initiative. Fronteras is an award-winning multimedia collaboration among public radio stations across the southwestern United States. Established in 2010 through the Corporation for Public Broadcasting’s Local Journalism Center initiative, Fronteras leverages resources from member stations KJZZ, KNAU, KRWG, Arizona Public Media and Marfa Public Radio to cover a borderlands area of close to nine million residents and more than one million listeners.

Broadcasting in Arizona, California, Nevada, New Mexico, Texas and Mexico, Fronteras covers a variety of borderland topics. Recent stories include the El Salvador child migration crisis, marriage equality on Cherokee and Navajo reservations, New Mexico oil production regulations and several high-profile criminal cases.

Fronteras finds untold stories and shines a light on the personal impact of otherwise faceless policy issues. The Mexico City bureau now allows the station to expand coverage of

important international issues like business development, trade agreements and other economic policies. Fronteras reporters regularly travel to northern Mexico, rural Native American reservations and as far away as Guatemala to create compelling stories about the people and communities along the U.S.-Mexico border.

Fronteras stories can often be heard on NPR, BBC, Here and Now, Marketplace and PBS Newshour.

Fronteras www.fronterasdesk.org

Connect to the World

by Arielle Cottrell, Marketing Manager of Global Chamber®

Global Chamber® is pleased to announce the world’s first virtual connecting tool by a chamber of commerce dedicated to helping companies grow across all borders.

Now you can lower risk and accelerate success in search of more global growth. It’s simple and global, making you unstoppable! Contact us for more information.

GlobalChamber.org

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At the End of the Day, It’s All About Jobs

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.

Join ASBA. Be amAZed®

Economic development is a phrase we hear a lot. Everything we do here at the Arizona Small Business Association has an impact on economic development for Arizona, directly or indirectly. Economic development is about creating new business opportunities and thus creating

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cautious type of investor and business owner. While many states are exceeding

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It is no secret that Arizona has had a tough road to recovery. The recession took a

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Arizona in the recovery, the sustained, gradual climb back to economic relevance we once enjoyed is creating a much more stable economy from which to build.

In This Issue

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Rising from the Communication Abyss Out of the Ashes Why Small Businesses Should Learn More About the Internet

Central Arizona 4600 E. Washington St., Suite 340 Phoenix, AZ 85034 p. 602.306.4000 Southern Arizona 1022 W. Ina Rd. Tucson, AZ 85712 p. 520.327.0222

That is why it is so important for the Arizona Small Business Association to be at the forefront in economic development initiatives that will help create new opportunities for all businesses in Arizona. Our having a seat at the economic development table means the needs of the business community will always take precedence.

Most recently, ASBA has taken a lead role in exporting. If you haven’t done it yet, it is time to look at customers outside your neighborhood, your city and even outside the country.

Exporting goods or services has been overlooked by most businesses. ASBA is part of an initiative to create pathways to help businesses understand the opportunities by exporting their product or service. In 2013, $1.4 trillion of goods and services were exported by U.S. metropolitan areas1. The exportation of these goods and services directly and indirectly supported an estimated 11.3 million U.S. jobs2. Developing a strong export economy can and will lead to more job opportunities and increased stability to withstand the various domestic economic cycles. By eliminating some of the barriers, we will be able to introduce many businesses to new markets and vastly increase their customer base.

The multitude of small businesses that are part of ASBA recognize there is strength in numbers. Our advocacy efforts on reducing taxation and regulation in Arizona and at the federal level, creating pathways to sell products and services abroad and creating alternative ways to raise much needed capital, are the kinds of efforts that bring prosperity to businesses in Arizona. This is exactly what the Arizona Small Business Association should be doing for businesses because, at the end of the day, everything we do is all about jobs.

© 2015 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.

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1 U.S. International Trade Administration (2013) U.S. Metropolitan Area Exports U.S. International Trade Administration (2013) Jobs Supported by State Exports

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BOARD OF DIRECTORS

Rising from the Communication Abyss

by Leif Hartwig, President of Bolste

How we communicate and collaborate in business is rapidly changing. And it’s about time! Most of us are in what I call “Email Chaos.” It’s not uncommon for workers to receive more than 200 emails a day with an additional 1,000 emails that haven’t even been opened. McKenzie tells us the productivity loss in time wasted is estimated to be as much as 25 percent. That means we’re wasting about 10 hours a week in time that could be put to better use. So the technology that helped save us from the slow speed of postal mail has created an even bigger challenge today.

In addition, people who work offsite both full-time and part-time has exploded in the U.S. Forrester forecasts that a staggering 63 million (43 percent) of Americans will work out of the office by 2016. The communication infrastructure of employees working outside an office and losing the face-to-face interaction is not being addressed in the majority of businesses. The result is, teams are rarely on the same page anymore, with projects and day-to-day interactions falling into the communication abyss.

The good news is there are a plethora of Web-based tools that help businesses implement new behaviors in this massive paradigm shift. I believe if you want to grow your business effectively, even accelerate growth, you need to embrace this new technology.

These are the seven Web-based functionalities you can’t live without: 1. Collaboration: Real time interaction that allows conversations to stream together and form a history of dialog.

2. File storage and sharing: Cloud-based storage that is independent from your hard drive that can be shared anywhere, anytime.

3. Project management: Group conversations and interactions that get teams involved in ongoing projects.

4. CRM: Contact management software that provides a database of your connections and activity surrounding your business relationships.

5. Notes and to-do lists: Organizational software to organize your work and keep you on focus.

6. Document sharing: Software that allows you to share and edit documents in real time with others.

7. Web conferencing: Used effectively, Web conferencing can convey ideas better by screen sharing, save travel expenses and connect those from a distance to create a sense of unity.

Each one of these “stand-alone” point solutions can independently be used effectively. However, getting employees to sign up for, pay and remember a multitude of passwords may represent a challenge all unto its own. Selecting an “all in one solution” in which your team can sign into one Web application and have everyone connected simultaneously with a total array of tools like email, calendar invites or website notifications can help teams overcome this challenge. These online software applications cost a fraction of buying tools separately and reduce time and effort in the sign-up process.

Whatever you decide, the future is upon us. Will you be left behind in this ever-changing business environment, trapped in the communication abyss?

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Ben Himmelstein | Chair The Frutkin Law Firm Nick Petra | Vice Chair Strategic Duck Jamie Low | Secretary Low & Johnson Business Insurance Rick Danford | Treasurer BMO Harris Bank Donna Robinson | Past Chair ADM Enterprises, Inc. Karen Karr Clark Hill Ryan McMullen RSI Enterprises, Inc. Kim Marie Branch-Pettid LeTip International Jess Roman Johnson Bank Linda Stanfield The Punctual Plumber Jack Lunsford The Lunsford Group, LLC Brannon Hampton Arizona Public Service John Ragan Arizona Chamber of Commerce & Industry David Bones Kenrich Group Brent Cannon National Bank of Arizona Chris Compton Blue Cross Blue Shield of Arizona Patrick Harter Provision Team, Inc. Allan Himmelstein Sales Coach AZ Jerry Houston HPISolutions Patty Hughes Vertical Measures LLC Luke Johnson Legend Capital Group Mike Leeds Pro Sales Coaching, LLC Sandra Luke Warnick + Company Rich Murphy Horizon Management Consulting Jonathan Rosenberg Levrose Commerical Real Estate Jason Trujillo Principal Financial Group Andrew Westle Gurstel & Chargo

Out of the Ashes

by Sinclair Noe, Radio Broadcaster, MoneyRadio

Arizona has a long history of boom and bust economic cycles. And like

strengthen ties to our largest international

the mythical Phoenix, we have seen the economy soar, but then only to

trade partner. Chris Camacho, who

crash in flames. Right now we’re still trying to rise from the ashes.

president of the Greater Phoenix Economic

A Harvard student has mapped every job in America — one dot, one job.

Council and was part of the delegation, told

Sinclair Noe is a long-time radio broadcaster, host of “Financial Review” on KFNN 1510-AM and 99.3-FM and MoneyRadio.com.

He also publishes a blog at SinclairNoe.com

The interactive map displays different types of jobs by different colors and

me, “We’re continuing to see a significant

where the jobs are located, down to street level. Based on census data,

amount of export and import growth, even

it covers every major city in the country, and it identifies jobs in four major

at unparalleled levels that we’ve never

categories, assigning a different color dot for each sector. For Phoenix, the

seen before. This past year, we’re seeing

manufacturing and trade sector is mainly scattered in South Phoenix close

just under $16 billion of trade.” That’s good, but it could be much better.

to the freeway, and along Grand Avenue; healthcare and government jobs are dominant in the Central Corridor from Downtown to Camelback.

Long-held conventional wisdom is that Arizona needs to diversify its economic base. We need more good-paying manufacturing jobs. If

The good news for Arizona is, we have added more dots on the

you connect the dots, you’ll see that manufacturing goes hand in hand

map — just over 53,500 net new jobs in the past year — bringing the

with transportation infrastructure. Arizona has the potential to establish

unemployment rate down to 5.9 percent in June 2015. Back in 2007,

itself as a major transportation hub for the Southwest, a conduit from

Arizona was one of the top states in the nation for job creation and the

West Coast ports to the Rocky Mountain West and Mexico. We also

unemployment rate dropped down to 3.8 percent. The Great Recession

have the potential to build our manufacturing base. And expand jobs in

hit our state hard and we still haven’t recovered. Even as employment

professional services and healthcare. Of course, that requires investment

expanded by 0.8 percent in Phoenix in the first quarter, we won’t recover

in infrastructure such as rail and highways, plus investment in human

all the jobs lost in the downturn until, probably, 2016.

capital such as education. Economic growth does not come free; it

We are also trying to recover from self-inflicted wounds to the economy.

Governor Ducey recently led a trade delegation to Mexico to try to

requires investment. Absent investment, we can expect more busts and more time digging out of the ashes.

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3

Why Small Businesses Should Learn More About the Internet

by Mike Arce, Founder of Loud Rumor

As a business owner, you take on many

specific list of skills that the

different roles within your company. Since

potential customer service

the start of your company, you may have

representative and writer

handled sales, payroll, customer service and

need to have.

more. But this responsibility makes it very

But when it comes to

difficult to manage all of these areas to their

your business’s Internet

best potential and still enjoy your business

marketing, it isn’t so easy.

… especially as you grow.

This tends to be the one role

That being said, entrepreneurs tend

that is more difficult to fill. Most

to overextend themselves. The average

small-business owners do not

executive works 72 hours per week.

take the time to learn about the

But that time would be better spent on

Internet themselves. With all of the

something that you are an expert at. That

other hats they wear, this is no surprise.

is why every business owner eventually

Erika Andersen with Forbes even states

learns to narrow his job title. It is important

that only one in 10 business owners know

to understand that a business operates

how to use social media or other online

marketing techniques, you put yourself

more successfully when the owner doesn’t

advertising to market their services and

in a position to hire the wrong person.

stretch himself too thin. That’s where your

products. This number is too low.

You invest in the wrong strategies. Since

team comes in. Hire qualified employees to

Since so few entrepreneurs understand

Internet marketing is a tool that drives more

manage the roles that you do not specialize

how to manage their Internet marketing, it

leads than most other marketing strategies,

in. In order to do this, you need to find your

becomes very difficult to understand what

it is critical to educate yourself.

team players.

to look for in an Internet marketer. You need

Do this by following authoritative content

to be able to hire the best candidate for the

distributors that publish material on Internet

E-Myth Revisited: “If your business depends

job. In order to do this, small businesses

marketing. Read as much as you can and

on you, you don’t own a business — you

need to learn more about the Internet. It’s

absorb all that you can. Browse the Loud

have a job. And it’s the worst job in the world

important to be able to decipher between

Rumor blog for tips on Local SEO, PPC and

because you’re working for a lunatic!” So,

the salesman and the true Internet marketer.

strategies. Every other week, we also gather

you need to target the right employees who

You want to build a team who is very

our top 10 favorite Internet marketing blog

are experts in areas that you are not. This

successful at what they do.

posts over the previous two weeks and put

Michael E. Gerber said it best in The

way, you can focus on your strong point,

When seeking an Internet marketer for

them all in one article for readers to learn

whether that be sales, marketing or anything

your company, you need to be able to ask

more about various topics in the industry.

in between. All other positions need to be

the right questions during the interview

This is a great resource for both beginners

delegated to your team.

process. That is where necessary Internet

and experts.

However, it is easier to hire the right

marketing knowledge comes in. You

Additionally, engage in other educational

people for positions that you have already

need to be able to control the interview

opportunities such as webinars and

played a role in. You know what the job

and address the latest Internet marketing

workshops that offer free sessions on

takes, and therefore understand what to

trends. The candidate should be able to

Internet marketing. Our team at Loud Rumor,

look for. As the business owner who has

expand on each topic that you mention

for instance, offers these on a monthly basis.

already handled the customer service,

— in detail. If you do not invest the time

If you want to build a successful team

content creation and so on, you will have a

to learn about the Internet and different

for your small business, then you need to be able to hire the right people. In order to

Mike Arce founded Loud Rumor, an Internet marketing company for small businesses, and focuses strictly on new customer generation.

Mike has spoken for companies like Infusionsoft, the Better Business Bureau, ASBA, and Local First — all on the topic of Local Business Internet Marketing. He has a passion for local businesses and helping them grow.

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really optimize your company’s presence and bring in leads, you need Internet marketing. Your Internet marketer needs be an expert in this area, and you need to be able to find them.

Three Reasons Why Customers Love Online Payments

by Kristen Gramigna, Chief Marketing Officer, BluePay

The jury of public opinion has spoken: Customers love online payments. Here are three reasons why:

Customers are impatient Waiting in line is a society norm, but there’s plenty of scientific evidence to prove that it’s highly undesirable to customers — and to

stamps or envelopes. Further, the “snail mail” method of paying bills with a paper check can take seven to 10 days. Online payments take seconds to initiate, and the process is complete in a matter of hours.

It provides peace of mind Online payments give customers instant access to their money,

the businesses who want their patronage. Online payments can solve

including information on how much of it they have and to whom it’s

many of these wait-time dilemmas, giving customers the option to skip

paid. If a vendor fails to honor a purchase and a customer has paid

the store visit (and its line) altogether.

for it with a credit card using online payment, for example, he/she

With that said, a business’s online payment experience should proactively eliminate the unnecessary steps that extend “wait time” as well. For example, experts at ConversionXL recommend that e-commerce merchants allow customers to purchase as a “guest” (without forcing a registration or login), and prefill form fields like city and state when the customer enters his/her billing/shipping zip code(s).

They’re free and instant Before online payments were an option, paying bills was a laborious process that cost customers time and money. With the popularity of online payments, customers no longer need to invest in paper checks,

can dispute the transaction with the creditor.

For small-business owners, online payments also provide peace of mind. Because online payments offer customers payment flexibility to pay for goods or services rendered using their debit or credit card, it may be less likely that merchant invoices go unpaid. When customers do make online payments, funds owed to merchants are often transferred electronically to a business account in a few business days.

Ultimately, online payments are a win-win for customers and the merchants who accept them.

Master Your Social Position!

Social Media that gets noticed, backed by the credibility of In Business Magazine…

Marketing Automation | Social Media | Digital Products www.inbusinessmag.com 480.588.9505

5

‘Field Guide’ to Financing Your Small Business

by Joel Gottesman, President of Liquid Capital of Arizona

Introduction. Field guides help people learn about and identify different varieties of plant and animal wildlife. This financial field guide can help you sort through the many financing alternatives available for small business.

Available Financing Options. The main financing tools in alphabetical order are: Asset-Based Lending (ABL). A line of credit from a bank or finance company in the form of a revolving line of credit tied to the amount of eligible assets, including accounts receivable, inventory and equipment. The

This is a fast-evolving financing tool for

million if it does not. Equity may be sold only

typical size of an ABL line is from $1 million

small business. The typical loan advance

to Arizona residents. For investors who are

to more than $10 million. ABL loans are

is unsecured and ranges from $25,000 to

“accredited” (meet certain minimum financial

generally for well-established businesses

$1 million. The advance is usually repaid in

tests), there is no cap on the investment

that do not qualify for a traditional or SBA

daily withdrawals from your business bank

amount. For investors who do not meet

bank loan. Generally, the cost of an ABL line

account over a six- to twelve-month period.

these tests, there is a cap on the investment

is higher than the cost of a bank loan, but

Because the loan is unsecured, it is usually

of $10,000 per company. The new law

less than Factoring.

at the upper end of the cost structure for

provides a streamlined process, but there

business finance.

are requirements of the Arizona Corporation

Bank Loans – SBA and Traditional.

Banks provide a variety of loan options to

Commission that must be followed.

There are also new developments on

community lenders offer loan programs for

under the government guaranty programs

small business and startups. Community

the federal level. On June 19, 2015, the

of the U.S. Small Business Administration

lenders can provide loans ranging from $1,000

SEC implemented Regulation A+, which

(SBA). The SBA has a number of programs

to $1 million on favorable terms and take into

permits well-established businesses to

for financing real estate and equipment

account community development efforts.

raise increased amounts of equity under

purchases as well as general working capital

Equipment Finance. Equipment leases

streamlined disclosure rules.

Equity investment is usually the most

needs. The loans are secured by the assets

and loans can be used to finance needed

of the business or the assets financed by

equipment. The size ranges from $5,000 to

costly form of financing, and you have a

the loan. The maximum amount for SBA

more than $5 million. If a company has spent

“partner” in the business until the equity is

loans is $5.5 million. The SBA Express

cash in the past to acquire equipment, it may

bought back or the business is sold.

Loan Program offers loans on a streamlined

be possible to “unlock” the cash by financing

basis for up to $350,000. If a business can

the owned equipment. The cost varies with

great channel to grow your business. The

meet the underwriting standards, an SBA-

the credit of the business.

key to export finance for small business

guaranteed loan is usually the most costeffective solution.

Cash Advances. Cash advance loans are

Export Finance. Export sales can be a

Equity & Arizona Crowdfunding Law.

is finding a lender that will fund sales to

Historically, equity investment for small

foreign customers. There are a number

business comes from the owner, family

of alternatives, including bank loans, ABL

based on borrowing against future revenues

and friends, private “angel investors” and

loans or Factoring. There are government

based on the sales history of the business.

venture capital firms. The latest development

guarantee programs offered through the

in Arizona is the new crowdfunding law

SBA and the U.S. Export Import Bank (as

that became effective on July 3, 2015. The

of this writing the charter of the ExIm Bank

Arizona law is the first in the nation to “go

has lapsed and may not be renewed by

operational” using a crowdfunding approach

Congress).

Joel Gottesman is the owner and president of Liquid Capital of Arizona, specializing in alternative finance, including ABL, factoring, export, inventory and PO finance. Joel has also been a successful attorney, banker and small-business owner.

6

Community Nonprofit Lenders. Nonprofit

small business. Often, the loans are made

popularized by such firms as Kickstarter

Factoring. Factoring is the cash sale of

(non-equity raises). Under the Arizona law,

your accounts receivable at a discount so

a company can raise up to $2.5 million if it

you do not have to wait for your customers

has audited financial statements, or up to $1

to pay before you can redeploy the cash.

A factoring line can range from $25,000 to more than $10 million. Finance companies usually make their credit decision based on your customer’s credit rather than your credit. Factoring can help an earlystage company as long as there are sales being generated. Only receivables from businesses or government qualify; sales to consumers do not. The cost of Factoring is higher than a bank loan or an ABL loan, but can it can be put into place quickly.

Inventory Finance. Inventory finance can cover the cost of inventory in the form of raw materials, parts or finished goods. This type of financing is usually available only to wellestablished businesses. It is similar to PO Finance, but does not require that the product be pre-sold. The financing can be in the range of $25,000 to more than $500,000. The cost is similar to Factoring and PO Finance.

Purchase Order Finance (PO). A specialized form of financing the cost of producing a product that is pre-sold to creditworthy customers. PO Finance is used to pay for goods manufactured by a third party and assures the manufacturer of payment once the product is made. PO Finance can be useful to smaller companies that obtain a large volume of purchase orders. The typical size of a PO Finance transaction can range from $50,000 to more than $10 million.

Private Healthcare Exchanges: An opportunity to offer great benefits at little or no cost As a business owner, you’ve probably spent some time thinking about your employee benefits strategy. If you haven’t — you should. After all, employees who are healthy and financially secure are more engaged in their work, and therefore more productive.

Good benefits are good business.

Small employers face a unique challenge when it comes to building a competitive benefits package, especially as healthcare costs rise. Small businesses typically don’t have the resources that larger companies do to absorb these costs, making it increasingly difficult to offer coverage to staff.

This is where private healthcare exchanges come in. A private healthcare exchange — also referred to as a marketplace — is an online shopping site on which employees can compare a wide range of health plan options and enroll all in one place. These marketplaces come in all shapes and sizes and cater to employers of different type and size. For many small employers, the easiest and most cost-effective option is one that lets them help their employees get individual health insurance. Employees can shop for coverage from a wide range of coverage options from different carriers, and there is no cost to the business.

Is an individual healthcare exchange right for you?

Answer these 5 simple questions: 1. Are some your employees not eligible to participate in your group health plan (for example, part-time or contract workers)?

2. Are you terminating a group health plan?

3. Have health benefits become too expensive for you to offer?

4. Are you looking for ways to reduce turnover and retain your employees?

5. Are you looking for a way to help your employees meet the coverage requirements of the Affordable Care Act? If you answered “yes” to any of these — a private exchange may be the solution for you.

Business Community Resources.

There are many resources available in the business community to help small-business owners and entrepreneurs. A good starting point for more information is the In Business Magazine 2014/2015 Lending Guide. The Lending Guide lists a number of Arizona lenders, lending resources and community organizations providing counseling and mentoring. See the Guide at bitly.com/ inbusiness-lendingguide Another excellent resource is the Arizona Small Business Association (ASBA), which also offers an effective mentoring program. A listing of ASBA resources can also be found online at asba.com/?business_resources Wishing you much success in your business!

What are the benefits of a private healthcare exchange?

The benefits of offering individual coverage through a private exchange are numerous for both the employee and the employer. Employees have the freedom to choose from the top health insurance carriers in the state, giving them the flexibility to find a plan that is best for them — not one size fits all. Furthermore, employees enjoy an intuitive benefits selection experience in one online marketplace. Employers, on the other hand, can eliminate administrative costs, improve recruitment and retention of staff; and, best of all — have healthy and happy employees!

The Arizona Small Business Association, in partnership with ConnectedHealth, has developed Connect2CoverageAZ — Arizona’s only individual private marketplace. Small businesses that offer Connect2CoverageAZ are supported by the site’s employer portal, which enables employers to invite their employees to shop for individual health coverage from the top carriers in Arizona — including plans that are tax-credit eligible. Employers can manage their employee rosters, and monitor progress to see who has been invited to shop for coverage on the Marketplace. The employer portal also supports employers with an Employer Resource Center that contains print-ready materials to help communicate the new program to employees.

For more information, visit connect2coverageaz.com.

7

ASBA STAFF LIST & TITLES

AZ Small Biz Con 2015 Businesses from all over the Valley visited Glendale to celebrate small business in Arizona. Each year, AZ Small Biz Con grows with the goal of providing valuable educational sessions, business opportunity and networking. We look forward to celebrating with you again next year. For more information, visit www.asba.com.

Rick Murray Chief Executive Officer Joe Erceg Director, Southern Arizona Debbie Hann VP, Finance + Administration Rhette Baughman Director, Client Relations Robin Duncan Director, Membership Carol Mangen Director, Member Benefits Bonnie Bulfer Business Development, Central Region Gabe Salcido Marketing Manager Julie Armstrong Business Development Manager Nicole Shumate Administrative Coordinator Ron Janicki Business Development,Southern Arizona Laura Bassett Member Services Manager Ashley Mills Communications Coordinator

ASBA LOCATIONS: Central Arizona Office 4600 E. Washington Street, Suite 340 Phoenix, AZ 85034 p | 602.306.4000

Southern Arizona Office 1022 W. Ina Rd. Tucson, AZ 85712 p | 520.327.0222

8

HEALTHCARE DECISIONS Open Enrollment & Healthcare Guide for Business

Informing Our Business Community on Healthcare Options

Section Sponsored by:

Big options for small business

With our flexible plans, we can offer a solution for every business.

At UnitedHealthcare, we offer health care plans that surround employees with innovative tools and resources to help make it easier to achieve a balanced lifestyle.

And with our broad portfolio of plan options, our goal is to help every business get the right coverage at the right price.

Contact your broker or UnitedHealthcare representative for more information.

Š2015 United HealthCare Services, Inc. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Health Plan coverage provided by or through UnitedHealthcare of California. Administrative services are provided by United HealthCare Services, Inc. and its affiliates. UHCAZ745454-000

HEALTHCARE DECISIONS

Making Arizona the Healthiest State One of the things we talk a lot about at the Arizona Hospital and Healthcare Association (AzHHA) is making Arizona the healthiest state in the nation.

Achieving that goal (for the record, Arizona currently ranks No. 29) requires a shared commitment on the part of government, the healthcare community and individuals. We must build and maintain a world-class healthcare system in which high-quality medical care is both affordable and accessible. We also must instill a culture of personal responsibility that encourages the behaviors we know are central to long-lasting health.

Yes, you’ll need to eat your vegetables.

Arizona hospitals and health providers have an important part in this, too. Thankfully, innovative thinking and new technologies offer the promise of better patient care at lower cost. Focus is shifting from disease management to whole-patient health that helps people live healthier lives and, hopefully, avoid getting sick in the first place. Hospitals, universities,

GREG VIGDOR

entrepreneurs and community leaders are partnering in new ways — and this collaboration and marshalling of resources can only benefit the patients of tomorrow.

Becoming the healthiest state remains a lofty goal, of course. But the benefits are countless.

Reduced healthcare costs. Recaptured productivity. Improved quality of life.

As Arizona’s largest association of hospitals and health providers, it is exciting to be part of a movement that has the capacity to change so many lives for the better.

As employers and business executives, you have a role to play as well. Set a healthy example

Greg Vigdor is president and CEO of the Arizona Hospital and Healthcare Association, the statewide association for organizations and leaders devoted to collectively building better healthcare and health for the patients, people and communities of Arizona.

for your employees. Encourage good habits. And, when it comes to selecting health plans for your employees, make sure they maintain access to area hospitals and health providers.Your

Prior to leading AzHHA, Vigdor was

employees will thank you!

president and CEO of the Washington

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

Health Foundation.

Vigdor earned his Bachelor of Arts from the University of Connecticut, a Masters of

Sincerely,

Health Administration from the University of Washington, and a Juris Doctor from George Washington University Law School.

Greg Vigdor President and CEO Arizona Hospital and Healthcare Association

HEALTHCARE DECISIONS Open Enrollment &

Healthcare Guide for

In Business Magazine’s Healthcare Decisions: Open Enrollment & Healthcare Guide for Business is a special

Business

section meant to remind company owners as to the options that are available in the upcoming individual marketplace open enrollment window — November 1, 2015 to January 31, 2016. Open enrollment timing can happen throughout the year for company policies, but with the national window open during this time, we feel

iness Informing Our Bus Community on s Healthcare Option ed by: Section Sponsor

INBUSINESSMAG.COM

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 workforce 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.

SEPT. • OCT 2015

55

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

SEPT. • OCT. 2015

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

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

Matsock & Associates 2400 E. Arizona Biltmore Circle, Phoenix (602) 955-0200 matsock.com

Focus Benefits Group 4120 N. 20th St., Suite B, Phoenix (602) 381-9900 focusbenefits.com

Powers-Leavitt Insurance 14301 N. 87th St., Suite 308, Scottsdale (480) 348-1100 powers-leavitt.com

Health Insurance Express, Inc. Superstition Marketplace 1155 S. Power Rd., Bldg. 101, Mesa (480) 654-1200 healthinsurance-express.com

56

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

Southwest Dental Group 6601 S. Rural Rd., Tempe (480) 456-0821 southwestdentalgroup.com

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HEALTHCARE DECISIONS

Making Employees Better Healthcare Consumers 73% of consumers agree they could make better health decisions if they knew the cost of medical care before receiving it.³ BCBSAZ has tools for members to help them manage their healthcare like never before.

Our treatment timeline and

Blue Cross Blue Shield of Arizona

cost estimator provides detailed information

Quality coverage for businesses of all sizes According to a recent survey from the Society

extensive network features Target Optical, LensCrafters,

for Human Resource Management, 35% of HR

Sears Optical and Pearle Vision.

practitioners say their employer is offering more benefits this year than last.¹ Healthy, productive employees are key to the health of a business. Blue Cross Blue Shield of Arizona (BCBSAZ) offers health insurance plans with a wide variety of price points and value-added services such as health and wellness programs, as well as time-saving tools designed to help employers work smarter, not harder.

Choose from a wide range of plans to fit your needs.

Our plans are designed for Arizonans in every stage of life, so you can choose the plan that works best for you and your employees.

Medical Plans Arizona companies come in all shapes and sizes.

BCBSAZ has crafted numerous options with this in mind. Employers can choose the plan, network, and contribution level that best meets their needs.

Eyewear Plans Complementary to the eye exam that’s part of

that your employees can use to make informed healthcare decisions.

For more details on this and

Dental Plans

other tools, visit azblue.com.

BCBSAZ offers a wide variety of dental options, for children and/or adults, including voluntary plans ¹ Society for Human Resource Management “2015 Employee Benefits: A Research Report by SHRM” (shrm.org)

and optional orthodontic coverage, that are available to employers with 10 or more enrolled employees.

Standard plans offering 100% in-network coverage for diagnostic and preventive services makes this a popular

term disability, critical illness, accident, cancer, COBRA

² 2014 Group Customer Satisfaction Study Results. The Customer Study and Group Benefits Administrator Study were conducted during the second and third quarter of 2014 for BCBSAZ by Thoroughbred Research, an independent research company.

services and more.

³ 2014 NerdWallet Health Study

option. Plans are available to organizations of all sizes.

Ancillary Products Employers can provide a number of other benefits to their employees through CSA General Insurance Agency, Inc., including life, short-term disability, long-

A Name You Trust With the largest Arizona-based insurer, you get more choices with the quality service you expect. In a recent satisfaction study of group customers (those who get

BCBSAZ is an Arizona nonprofit corporation and independent licensee of the Blue Cross and Blue Shield Association.

their insurance through an employer), 94% of those surveyed reported they were satisfied with the service provided by BCBSAZ.²

BCBSAZ medical plans, BluePreferred Eyewear offers 16 benefit designs. Benefits include glasses, frames, contact lenses and more, and most plans have

CONTACT US

single rates less than $5/month. Eyewear benefits

Local Phone: (602) 864-5792

are administered by EyeMed Vision Care, and our

Toll-Free Phone: (800) 232-2345 ext. 5792 Website: azblue.com/employersandorganizations ADVERTISING PROFILE

SEPT. • OCT 2015

57

HEALTHCARE DECISIONS

Welcome to a Whole New Kind of Healthcare!

As the community health provider for

working together to improve health outcomes

Maricopa County, Maricopa Integrated Health

and in keeping costs low for our members.

System (MIHS) has created a non-biased

Located in the heart of Phoenix, MIHS has

source of information about the Affordable

a long legacy of caring for our community.

Care Act (ACA).

MIHS includes the Maricopa Medical Center,

Individuals and small businesses can now

the Arizona Burn Center and the only Trauma

be covered by low-cost health insurance

Center in Arizona verified by the American

through Meritus, utilizing Maricopa Integrated

College of Surgeons to treat both adults and

Health System’s hospital, ancillary services and

children. In addition, MIHS has an outpatient

physician network.

specialty clinic, along with 12 Family Health

Meritus* believes in developing long-term partnerships with providers like MIHS by

Centers, located across the Valley to serve you and your family’s healthcare needs.

MIHS and Meritus are proud to work

CONTACT US Phone: (855) 755-2700 Address: 2005 W. 14th St., Suite 113 Tempe, Arizona 85281 Website: COVERMEAZ.ORG COVERMEAZBIZ.ORG

2015MER0058

58

SEPT. • OCT. 2015

together to bring comprehensive healthcare to those who live in Maricopa County.** * Meritus products and services are provided through Meritus Mutual Health Partners (a PPO) and Meritus Health Partners (an HMO). ** For a complete listing of benefits available for all plans, as well as limitations and exclusions, please contact Meritus.

ADVERTISING PROFILE

Start Today • Individuals: Start saving on your heath insurance cost today at COVERMEAZ.ORG. • Small Business Owners: We invite you to use our online tool to see if your business qualifies for a health insurance tax credit at COVERMEAZBIZ.ORG.

HEALTHCARE DECISIONS Individual & Group Health Insurance

Hospitals / Healthcare Services

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.

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.

Aetna 4645 E. Cotton Center Blvd., Phoenix (800) 225-3375 aetna.com Amenda Insurance Associates Ltd. 5046 E. Redfield Rd., Scottsdale (480) 284-6400 douglasamenda.com American Family Insurance Multiple Agents Valley-wide (877) 777-4804 amfam.com Benefits By Design 8631 S. Priest Dr., Tempe (480) 831-7700 benefitsbydesignaz.com

Glass Financial Group 4455 E Camelback Rd., Suite 260D, Phoenix (602) 952-1202 glassfinancialgroup.com HealthNet 1230 W. Washington St., Suite 401, Tempe (602) 286-9194 healthnet.com Humana Health Insurance of Phoenix 20860 N. Tatum Blvd., Suite 400, Phoenix (480) 515-6400 humana.com

Abrazo Arizona Heart Hospital 1930 E. Thomas Rd., Phoenix (602) 532-1000 abrazohealth.com Abrazo Arrowhead Campus 18701 N. 67th Ave., Glendale (623) 561-1000 arrowheadhospital.org Abrazo Central Campus 2000 W. Bethany Home Rd., Phoenix (602) 249-0212 phoenixbaptisthospital.com Abrazo Maryvale Campus 5102 W. Campbell Ave., Phoenix (623) 848-5000 maryvalehospital.com

Blue Cross Blue Shield of Arizona 2444 W. Las Palmaritas Dr., Phoenix (602) 864-4899 azblue.com

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

Bowman & Associates 16042 N. 32nd St., Bldg. A, Phoenix (602) 482-3300 bowmaninsurance.com

Charlene Powers 14301 N. 87th St., Suite 308, Scottsdale (480) 348-1100 powers-leavitt.com

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

Reseco Insurance Advisors Todd Newton 7901 N. 16th St., Suite 100, Phoenix (602) 753-4250 resecoadvisors.com

Cigna Multiple Locations Valley-wide (623) 516-7000 cigna.com

State Farm Arizona Multiple Agents Valley-wide (877) 331-8261 statefarm.com

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

Farmers Insurance Group Kara Anspach 15849 N. 71st St., Suite 255, Scottsdale (480) 998-8070 farmersagent.com/kanspach

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

INBUSINESSMAG.COM

Abrazo Scottsdale Campus 3929 E. Bell Rd., Phoenix (602) 923-5000 paradisevalleyhospital.com Adelante HealthCare 9520 W. Palm Ln., Suite 200, Phoenix (623) 583-3001 adelantehealthcare.com Banner Baywood Medical Center 6644 E. Baywood Ave., Mesa (480) 321-2000 bannerhealth.com/baywood

Banner Desert Medical Center 1400 S. Dobson Rd., Mesa (480) 412-3000 bannerhealth.com/desert

SEPT. • OCT 2015

59

HEALTHCARE DECISIONS Hospitals (con’t.)

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 Heart Hospital 6750 E. Baywood Ave., Mesa (480) 854-5000 bannerhealth.com Banner Ironwood Medical Center 37000 N. Gantzel Rd., San Tan Valley (480) 394-4000 bannerhealth.com/ironwood Banner MD Anderson Cancer Center 2946 E. Banner Gateway Dr., Gilbert (480) 256-6444 bannerhealth.com Banner Thunderbird Medical Center 5555 W. Thunderbird Rd., Glendale (602) 865-5555 bannerhealth.com Banner University Medical Center 1111 E. McDowell Rd., Phoenix (602) 839-2000 bannerhealth.com Cancer Treatment Centers of America at Western Regional Medical Center 14200 Celebrate Life Way, Goodyear (623) 207-3000 cancercenter.com Cardon Children’s Medical Center 1400 S. Dobson Rd., Mesa (480) 412-5437 bannerhealth.com Dignity Health Chandler Regional Medical Center 1955 W. Frye Rd., Chandler (480) 728-3000 chandlerregional.org Dignity Health Mercy Gilbert Medical Center 3555 S. Val Vista Dr., Gilbert (480) 728-8000 mercygilbert.org

60

SEPT. • OCT. 2015

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

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

Arrowhead Health Centers Multiple locations (623) 334-4000 arrowheadhealth.com

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

Surgical Specialty Hospital 6501 N. 19th Ave., Phoenix (602) 795-6020 thesurgicalhospital.com

HonorHealth John C. Lincoln Medical Center 250 E. Dunlap Avenue, Phoenix (602) 943-2381 jcl.com HonorHealth Osborn Medical Center 7400 E. Osborn Rd., Scottsdale (480) 882-4000 shc.org HonorHealth Scottsdale Shea Medical Center 9003 E. Shea Blvd., Scottsdale (480) 323-3000 shc.org Maricopa Medical Center 2601 E. Roosevelt St., Phoenix (602) 344-5011 mihs.org Mayo Clinic Hospital 5777 E. Mayo Blvd., Phoenix (480) 515-6296 mayoclinic.org Mountain Vista Medical Center 1301 S. Crismon Rd., Mesa (480) 358-6100 mvmedicalcenter.com Phoenix Children’s Hospital 1919 E. Thomas Rd., Phoenix (602) 933-1000 phoenixchildrens.org

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) 942-4700 orchardmed.com Redirect Health 16222 N. 59th Ave., Suite A-100, Glendale (623) 521-9406 redirecthealth.com

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

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HEALTHCARE DECISIONS

Phoenix Children’s Expands Network of Expert Pediatric Care Phoenix Children’s is much more than just a

News & World Report recognized the hospital

hospital. It is committed to building a world-

as the state’s only Best Children’s Hospital. It

class pediatric health network, leading the way

ranked as one of the top 50 pediatric facilities

in pediatric care with deep expertise in more

in nine out of 10 specialties — four of which

than 75 pediatric specialties, including Barrow

ranked amongst the top 20 in the nation.

Neurological Institute at Phoenix Children’s, Phoenix Children’s Heart Center and other elite programs in cancer, orthopedics and

Now, all the expertise of Phoenix Children’s is more convenient and accessible than ever: • Phoenix Children’s Care Network

trauma for children with conditions from

offers more than 800 pediatricians and

common to complex.

pediatric specialists across the Valley.

This year, Phoenix Children’s was pleased to announce that for the fifth consecutive year, U.S.

• Phoenix Children’s Medical Group represents the state’s largest group of pediatric specialists, with experts in more

CONTACT US Phone: (602) 933-1000 (888) 908-5437 (KIDS) Address: 1919 E. Thomas Rd. Phoenix, AZ 85016 Website: phoenixchildrens.org

than 75 subspecialties.

• Emergency and Level One Pediatric Trauma services are ready to provide expert care on the main campus in Phoenix.

• Inpatient care is now available at the main campus in Phoenix as well as

the new Phoenix Children’s Hospital at Dignity Health Mercy Gilbert Medical Center in the East Valley.

• Four Phoenix Children’s Urgent Care locations (we have many more specialty care locations, which are now called PCMG) Visit PhoenixChildrens.org for more information on Arizona’s best care for children.

With the state’s largest network of pediatric specialists, they’re always covered.

You can feel safe knowing Phoenix Children’s covers your employees and their families with the state’s largest group of pediatricians. Phoenix Children’s Care Network offers more than 800 pediatricians and pediatric specialists in locations across the Valley. With our main campus in Phoenix and our new location at Dignity Health Mercy Gilbert Medical Center, you’ll find our exceptional inpatient care right where you need it. And with Urgent Care centers in four locations across the Valley—Mesa, Scottsdale, Glendale and Avondale— Phoenix Children’s care is always close by.

For more information visit: PhoenixChildrens.org

ADVERTISING PROFILE

SEPT. • OCT 2015

61

The Arizona Hospital and Healthcare Association is the statewide association for organizations and leaders devoted to collectively building better healthcare and health for the patients, people and communities of Arizona.

AzHHA ‌ working to make Arizona the Healthiest State in the Nation.

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

SEPTEMBER • OCTOBER 2015

In Business Magazine is pleased to offer the MarketPlace for our readers. This section is for

HOW TO ADVERTISE

service-based companies, events and other organizations that wish to “market” directly to

Interested in marketing your business

our readers with their services. Many offer special deals to our readers and all are focused

or service direct to our readers?

Show off your product, service,

on providing the best possible products and services to other businesses here in the Valley.

event, announcement or other great information to the best demographics of

We hope that you will let these advertisers (and all of our advertiser supporters in each

business decision makers in the Valley.

issue) know that you’ve seen their ad and that you care to do business with them. The

For more information, please contact us at (480) 588-9505 or by email at

Marketplace is open for business.

marketplaceads@inbusinessmag.com.

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SEPTEMBER • OCTOBER 2015

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64

SEPT. • OCT. 2015

480.236.3336

CathyHotchkiss@comcast.net www.CathyHotchkiss.com

INBUSINESSMAG.COM

Davis, Michelle, 11

Johnson, Chad, 22

Robinson, Ashley, 12

Acharya, Pallav, 42

Dixon, Matthew, 29

Jost, Alisa C., 11

Sanderson, Melissa, 37

Adamson, Brent, 29

Drake, Dakota, 39

Knight, Jan, 40

Sanicola, Lenny, 22

Allazetta, David W., 22

Ducar, Francis, 22

Lewis, David, 15

Scherzer, Chris P., 22

Allford, Allan, 9

Fijan, Jim, 12

Lines, John, 19

Shultz, Susan, 37, 38

Arce, Mike, 48

Fuzita, Shenonso, 41

Lyman, Linda, 30

Sirott, Michelle, 22

Barry, Jack, 31

Gardner, Dan, 29

Macchitelli, Jim, 11

Smith, Blair, Ph.D., 16

Battin, Mike, 16

Goodman, Adam, 22

Murray, Rick, 45

Smoldon, Russell, 11

Benson, Lee, 37

Gorny, Tomas, 10

Nasharr, Tony, 37

Spenner, Pat, 29

Bertault, Fabien, 37

Gottesman, Joel, 50

Noe, Sinclair, 47

Stelnik, Jeff, 22

Bruhnke, Doug, 37

Grady, Anne, 66

Nowaczyk, Christine, 30

Tetlock, Philip E., 29

Clark, Bernie, 10

Gramigna, Kristen, 49

Odigie, Felix, 15

Toman, Nick, 29

Clees, Joe, 20

Gredler, Denise, 22

Olson, Eric T., Admiral, 31

Vigdor, Greg, 55

Colby, Ed, 10

Hartwig, Leif, 46

Paetz, Paul, 28

Walker, Kyle, 37

Cottrell, Arielle, 43

Hicks, Michael, 18

Pastori, Linda, 43

Wheeless, Steve, 20

Brown & Brown

Land Rover, 34

Point B, Inc., 22

Covert, Gary, 41

Insurance of Arizona, Inc., 22

Lifeproof, 34

Polsinelli, 37, 39

Cathy Hotchkiss, 64

Liquid Capital of Arizona, 50

Project Pink, 35

CBIZ, 67

Local First Arizona, 6

SAXA, Inc., 12

Alerus, 7

CBRE, 12

Loud Rumor, 48

Schwab Advisor Services, 10

Alliance Bank of Arizona, 3

Center for Business and

Maricopa Community Colleges, 44

Scottsdale Area Chamber of Commerce, 32

Maricopa Integrated Health System, 58

SRP, 14, 15

Mayer Hoffman McCann P.C., 67

SSA Executive Search International, 38

MoneyRadio, 47

Steptoe & Johnson LLP, 20

Nautilus Insurance Group, 10

Surplus Asset Management, 19

New Pathways for Youth, 30

Surprise Regional Chamber of Commerce, 32

New Spring Pharmacy, 63

Tempe Chamber of Commerce, 33

Nextiva, 10

Thunderbird School of

Able Aerospace, 37 Ahwatukee Foothills Chamber of Commerce, 33

Alpha Performance Coach, 41 Amazon, 12 American Express, 11 American Sentinel University, 16 Anne Grady Group, 66 APS, 2 Arizona Data Center Coalition, 12 Arizona Diamondbacks, 17 Arizona Forward, 32 Arizona Hispanic Chamber of Commerce, 33 Arizona Hospital and Healthcare Association, 53, 55, 62 Arizona Small Business Association, 32, 45

Economic Growth, 18 Chandler Chamber of Commerce, 33 CopperPoint Mutual Insurance Company, 7 CPA Global Tax & Accounting, 42 CSM Corporation, 11 Delta Dental of Arizona, 9 Desert Schools Federal Credit Union, 6 Downtown Phoenix Inc., 64 Educare, 30 Enterprise Bank & Trust, 31 Freeport McMoRan, 37 Fronteras, 43

Ochenta y Dos, 64 Ogletree, Deakins, Nash, Smoak & Steward, P.C., 20

Global Management, 41 Trident, 34 UnitedHealthcare, 16, 22, 54

OperationsInc, 15

ViaWest Group, 12

Organization of Women in International

Vig, The, 36

Trade – Phoenix, 33

Wells Fargo, 47

Gallagher & Kennedy, 2

Otterbox, 34

Gilbert Chamber of Commerce, 32

Wilkes University, 13

Our Town America, 63

Global Chamber, 11, 37

Workstreampeople, 11

PACSHealth, LLC, 16

Goodmans Interior Structures, 22

WorldatWork, 22

Ball State University, 18

Parlor, The, 36

Bancroft Information Services, 40

Greater Phoenix

Phoenix Children’s

Arizona Technology Council, 33 Association for Corporate Growth – Arizona, 31

Banner Health Network, 68

Chamber of Commerce, 32, 33

Care Network, 22, 61

Green Card Fund, 37

Phoenix Children’s Hospital, 61

Healthcare Solutions Centers, LLC, 22

Phoenix Metro Chamber of Commerce, 32

Hines, 12

Phoenix Philanthropy Group, The, 30

BluePay, 49

IKEA, 5

Piazza al Forno, La, 36

Bolste, 46

Innovative Disruption, 28

Pinnacle Bank, 21

Inspired eLearning, 15

Pizzeria Bianco Town & Country, 36

BestCompaniesAZ, 22 Blue Cross Blue Shield of Arizona, 22, 57

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

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

CHECK US OUT /inbusinessmagphx @inbusinessmag

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INBUSINESSMAG.COM

FEBRUARY 2015

A CANDID FORUM

Motivation: Why Money Won’t Work Today’s employees want more than just a paycheck

by Anne Grady Spending time trying to identify what motivates one’s employees and then finding meaningful ways to do those things might not be the easiest strategy, but it is one that is consistently more successful than money. While we all love a good gift card, why do organizations continue to spend countless dollars trying to motivate and engage their staff with monetary incentives if we know it doesn’t work?

Here are just a few of the reasons money doesn’t work: All people are already motivated – by something. It’s not possible to make someone motivated. Sure, one can threaten them or offer incentives, but then what? Keep threatening and incenting? At some point, one must make good on the threats or provide additional incentives — and even at their best, these strategies only work 20-25 percent of the time.

In fact, all one can do is provide an environment where one can tap into what already motivates them. Is it praise, recognition, serving a greater purpose, becoming a subject-matter expert or something entirely different?

A motivator will not motivate if it isn’t important to the individual.

Money can’t buy engagement.

It is estimated that only 13 percent of Anne Grady, who holds a master’s degree in organizational communication, is an author, corporate leadership consultant and expert in personal and organizational transformation. With humor, passion and straight talk, she grew her business as a nationally recognized speaker and consultant while raising her severely mentally ill son. Grady shares lessons she has learned in her new book, 52 Strategies for Life, Love and Work.

Anne Grady Group annegradygroup.com

SEPT. OCT. 20 1 5

66

INBUSINESSMAG.COM

employees worldwide are engaged at work. Employee engagement comes from feeling valued and appreciated, knowing one’s opinion matters, and being clear on what contribution one makes to the overall success of the organization. Driving employee engagement is most critical at the immediate supervisor level because an employee’s relationship with his or her supervisor dictates job satisfaction more than any other factor.

Money might not be able to make better leaders, but leadership development can. If the manager relationship is so critical to an employees’ success, why aren’t more organizations investing in leadership development instead of Starbucks gift cards? Investing in the right leadership development program for a company’s managers and high potentials can provide a significantly higher ROI. Common sense isn’t always common practice. Let’s face it, it’s not rocket science. If demonstrating appreciation, developing team members, and ensuring employees are clear about their roles and responsibilities improves productivity, morale and engagement, why aren’t we spending more time and money doing that? Because sometimes it’s just

easier to give a $25 gift card. Creating a motivational climate takes time, effort and energy. Knowing it works doesn’t translate into taking the time to make it happen. It has to be a deliberate effort.

I’m not suggesting that money should never be used as a motivator. Some people thrive on bonuses and incentives — but not everyone does. The next time you have a one-on-one with an employee, ask them what motivates them. At the very least, ask them what demotivates them, and stop doing it.

Motivation: Gamifying the Workplace Only 31.5 percent of U.S. workers were engaged in their jobs

disengaged easily, causing low productivity and retention levels,”

in 2014, according to a 2015 Gallup poll. A recently released

Badgeville CEO Jon Shalowitz notes that C-level executives and

survey from global business gamification leader Badgeville

managers at high-performance companies are finding the challenge

suggests gamification may be a motivator to help overcome this

increasing each year to drive employee engagement and motivation.

disengagement. The independent survey of more than 500 business

“Our research shows that game-based motivation can be a powerful

workers, ranging from entry-level employees to C-level executives,

solution for today’s top workforce challenges.”

revealed that only 31 percent of employees are most motivated by

Game-based motivation includes competitions, goal-setting,

monetary awards or increased salary; the other 69 percent more

performance rewards, success statistics and status recognition.

motivated by performing well, feeling personal job satisfaction,

Gamification increases productivity levels for 90 percent of

receiving recognition on the job, gaining the support of their

workers and increases awareness of co-workers’ goals and tasks

colleagues and having advanced learning opportunities.

for 86 percent. The top benefits of gamification, according to

Seventy-eight percent of the workers surveyed were utilizing

survey respondents, are an increased desire to be at work and

games-based motivation at work, and a staggering 91 percent

engaged (30 percent), inspiration to be more productive at their

reported these systems improved their work experience by

job (27 percent) or the focus to stay on task and avoid distraction

increasing engagement, awareness and productivity. Observing,

(20 percent).

“Employees, especially across younger generations, become

—Mike Hunter

Badgeville badgeville.com

Badgeville’s survey found, not surprisingly, younger generations have greater expectations for their workplaces to utilize gamification as a motivational solution. In fact, nearly three-fourths of survey respondents aged 22-35 years say gamification should be expected in a modern organization, whereas a little over half of respondents aged 36-55 years share the same outlook. badgeville.com

With You at Every Turn Start Up, Emerging, Growth , Stabilization, Maturity, Exit /IP O

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We offer multiple services with a single focus: your success.

CBIZ SERVICES: Accounting | Outsourcing and Financial Advisory | Litigation Support Tax Compliance & Consulting | Valuation Services

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Mayer Hoffman McCann P.C. is an independent CPA firm providing audit, review and attest services, and works closely with CBIZ, a business consulting, tax and financial services provider.

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