November 2016 Issue of In Business Magazine

NOV. 2016

Business Owner's Lending Guide 2016/2017

Banking on Your Business Control

Social Media Messaging in

Crisis Love in Business?!

(3-part series)

Healthcare:

Employer Shared

Responsibility $4.95 INBUSIN ESSMAG.COM

THIS ISSUE Tempe Chamber of Commerce Arizona Technology Council

Fleet Intelligence For Your Business

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NOVEMBER 2016

COVER STORY

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Banking on Your Business

In Business Magazine welcomes select banks that serve our Valley businesses to iterate their particular “persona” of practices, processes and products.

PLUS: Diversity Trends in Small-Business Investing FEATURES

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The Integration of Love and Business

Jonathan Cottrell begins a three-part series with this discussion of how caring and connectedness show their mettle in the workplace.

26 PARTNER SECTIONS TEMPE CHAMBER

Combat Social Media Mud-Slinging

Kindra Hall shares tips for crafting and controlling messaging when a business suffers a crisis and social media spreads the news like wildfire.

ADVANTAGE Fall 2O16 • tempechamber.org

DEPARTMENTS

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Mayor Mitchell Discusses Tempe’s Future at State of the City Address Mayor Mark Mitchell will deliver an update on the social and economic climate of Tempe along with his vision for its growth and future at the State of the City Address on December 1. The breakfast offers a unique opportunity to engage with community, business and political leaders of the Valley.

“The annual State of the City is an opportunity for us to let residents and business leaders know what the city is doing to maintain our quality of life and build Tempe into the strong regional partner that we know a prosperous future requires,” said Mitchell. “This is an excellent opportunity for us to evaluate where we’ve been and get the community involved in where we’re going.”

It takes place from 7:30 to 9:00 a.m. at the Doubletree by Hilton, 2100 S. Priest Drive in Tempe. It is produced by the Tempe Chamber of Commerce in conjunction with the City of Tempe. RSVPs are required at www.tempechamber.org or to (480) 967-7891.

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T E M P E C H A M B E R A D VA N TA G E

Te m p e C h a m b e r. o r g

Tempe Chamber of Commerce

Fall 2O16 • aztechcouncil.org

IN THIS ISSUE 2 Head of the Class Leaders look to Arizona students for ways to shape the future

4 Eye On Success

New alliance formed with Arizona Optics Industry Association

5 Council Staff Recognized With Awards, Promotion 6 Two New Members Added to Council’s Board

WHO WE ARE The Arizona Technology Council is Arizona’s premier trade association for science and technology companies.

Phoenix Office 2800 N. Central Ave., Suite 1920 Phoenix, AZ 85004 Phone: 602-343-8324 • Fax: 602-343-8330 info@aztechcouncil.org

Tucson Office

The University of Arizona Science and Technology Park 9040 S. Rita Rd., Ste. 1150 (near I-10 & Rita Rd.) Tucson, AZ 85747 Phone: 520-382-3281 • Fax: 520-382-3299 tucson@aztechcouncil.org

MANAGEMENT AND STAFF Steven G. Zylstra President + CEO Leigh Goldstein COO + Vice President, Programs + Events

Anne Rody Director, Finance + Administration Merry Lake Merrell Director, Marketing + Communication

Deborah Zack Senior Director,

Membership Services

Brian Krupski Director of Membership Services Melissa Craven Executive Assistant to President + CEO

Alex Rodriguez Vice President, Southern Arizona Regional Office, Tucson

Don Rodriguez Editor Ron Schott Executive Emeritus, Phoenix Don Ruedy Executive Emeritus, Tucson Justin Williams Executive Emeritus, Tucson Jeremy Babendure, Executive Director, Ph.D. Arizona SciTech Festival

Arizona Technology Report

Arizona Technology Council: The Voice of the Technology Industry

President’s Message In my time, I’ve seen a variety technologies evolve from infancy to leaving lasting impacts that have profoundly changed our lives. Color televisions, transistor radios, DVRs, cell phones, computers, software — all moved at some point from “gee whiz” to “how did I even live without it?” And all have played roles in shaping what we have become as a society.

In my role, I regularly get a chance to meet with member companies filled with innovators already working on the technologies that will have a hand in determining not only who we will be in the short term but in the years to come.

One field that immediately comes to mind is the Internet of Things. In case that’s a new term to you, it is the field in which everyday objects use network connectivity to send and receive data. A refrigerator that tells you when it needs a refill is an example. What’s next? That’s already being worked on at Intel in Chandler, where the global giant’s Internet of Things Group is based.

Many of our other members already are playing a part as well. That’s one reason we recently held the inaugural meeting of the Council’s Internet of Things Committee.

They came together to share what they know and to hear what others are doing. We had representatives from companies such as Verizon and Insight, as well as Aspen Technologies, Zed Ventures, MultiWare, Bolste and Impress Labs. And since the Council is about making connections, a few actually came looking for new partners for their projects. You might someday be using something that got its start at a meeting.

Also shaping the future — literally — is the field of additive manufacturing. You might know it as 3D printing. More specifically, this is the process of adding layer upon layer of material to make a product. Whether it’s a replacement part for airplane or a human, additive manufacturing is already proving its usefulness. Member companies such as Honeywell, Phoenix Analysis & Design Technologies and Titan Industries are exploring the potential of this new field.

Self-driving cars are getting closer to reality for us. Google already has been testing vehicles on the streets of Chandler and Ahwatukee, so it likely won’t be long before you leave the driving to your car.

If you think about it, self-driving vehicles really are extensions of robotics. We have a whole generation that grew up competing in robotic competitions such as First Robotics, which has been supported by Microchip.

Robotics, in turn, has been the entry point for artificial intelligence. Where is this headed? Consider the words of futurist Ray Kurzweil, author of the book The Singularity is Near: When Humans Transcend Biology: “Artificial intelligence will reach human levels by around 2029. Follow that out further to, say, 2045, we will have multiplied the intelligence, the human biological machine intelligence of our civilization a billion-fold.”

So if you’ve been impressed at progress so far in just your lifetime, you ain’t seen nothin’ yet.

Initiatives, Arizona Technology Council Foundation

ARIZONA TECHNOLOGY REPORT

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Arizona Technology Council

SPECIAL SECTION

2016/2017

Major Banks Community Banks Credit Unions Sponsored by

Lending Institutions & Resources

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2016/2017 Business Owner’s Lending Guide The resource guide to business financing

NOV. 20 1 6

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INBUSINESSMAG.COM

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Feedback

David Doss and Susan Frank respond to In Business Magazine’s burning business question of the month.

Steven G. Zylstra,

President and CEO, Arizona Technology Council

Susan Farretta Director of Educational

aztechcouncil.org

Guest Editor

James Lundy, CEO of Alliance Bank of Arizona, introduces the “Banking” issue.

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Briefs

“Avoid Salary Surprises with Federal Overtime Rule Change,” “Lookin’ Good on Chat,” “Act-ivate Texts,” “Savings for Small Business,” “New Restaurant and Retail,” “Artistically Thriving,” “Local Company Wins Prime Aerospace Contract” and “ZeroDown Remodel Aids Real Estate Sales”

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By the Numbers

The third annual green building adoption index shows the percentage of U.S. office space “green”-certified tops 40 percent. What’s the trend in Phoenix?

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16

Technology

“Tee Time Mobile-ized,” “On-Demand Access for Homebuying,” “AC in e-Commerce” and “Personalized Systems Enhance Fire Safety”

18

Healthcare

“New Company Investing in Healthcare Startups,” “Public Health Industry Standards,” “Be Alzheimer’s-Friendly to the Public” and “Healthcare IT Grows in Niche Market”

27

Books

New releases give fresh insights on business thinking.

28

Nonprofit

Thanking donors goes well beyond the form letter.

32

Assets

2017 Lexus RC F Plus: Trophies memorialize honors for milestones and achievements.

34

Power Lunch

SumoMaya Plus: Local stand-outs on “Diners, Drive-Ins and Dives”

66

Roundtable

Specific steps can help company leadership reverse a systemic breakdown in trust.

ON THE AGENDA

Legal

In this open enrollment season, local attorney shares what business owners need to know about the Employer Shared Responsibility of the Affordable Care Act.

29

Spotlight

Governor’s Celebration of Innovation — Arizona Technology Council Guest Editor Economic Symposium — In Business Magazine

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Calendar

Business events throughout the Valley

Arizona businesses were awarded $299,903 of the $18.85 million that the U.S. Small Business Administration has targeted to support export growth among American small businesses, through its competitive State Trade Expansion Program. bit.ly/step-state-awardees

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November 2016

Read conference calls in real time.

In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

PARTNER ORGANIZATIONS Kristen Merrifield, CEO Alliance of Arizona Nonprofits (602) 279-2966 www.arizonanonprofits.org Jack Lunsford, Interim CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org

Now, Deaf and hard of hearing participants can be actively involved in multi-party calls. Relay Conference Captioning (RCC) is free to Arizonans, streaming live text to any Internet-connected computer, tablet or mobile device worldwide.

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

LEARN MORE ABOUT RELAY CONFERENCE CAPTIONING AT ARIZONARCC.COM

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

Agency: LAVIDGE • Job: 16-AZRELAY-0031 • Client: AZ Relay • Contact: tfritz@lavidge.com Publication: In Business Magazine • Size: 4.875” x 4.875” • 4color FENNEMORE CRAIG.COM

LAW THAT LEADS

®

COVERS MORE GROUND

REAL ESTATE ATTORNEYS AT FENNEMORE CRAIG are a part of one of the largest Real Estate practice groups in the Mountain West, which encompasses all aspects of real estate, from acquisition and finance, through development, leasing and sale. Our attorneys have significant experience in: • Commercial, Retail & Industrial Projects • Commercial Property Leasing • Health Care Real Estate • Production Home Builders • Joint Ventures & Syndications

• • • • • •

Property Tax Real Estate Finance Real Estate & Lease Litigation Workouts & Restructurings Land Use Planning & Zoning Master-Planned Communities

Anne Gill, 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

For more information about Fennemore Craig, visit FennemoreCraig.com or contact Joe Chandler, Real Estate Practice Group Chair, at 602.916.5403 or jchandler@fclaw.com.

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 Scottsdale Area Chamber of Commerce scottsdalechamber.com Surprise Regional Chamber of Commerce surpriseregionalchamber.com WESTMARC westmarc.org

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NOV. 2016

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November 2016

VOL. 7, NO. 11

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers Anna Brewer

Jonathan Cottrell Toby Day Kindra Hall Jan Halpin Mike Hunter Julie Iacobelli Dennis Reina, Ph.D. Michelle Reina, Ph.D. Don Rodriguez Kathy Steadman ADVERTISING

Operations Louise Ferrari

Business Development Louise Ferrari

Maria Mabek Kelly Richards Cami Shore

Events Amy Corben

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

Trickle-down Subscription

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

President & CEO Rick McCartney

Editorial Director RaeAnne Marsh

Senior Art Director Benjamin Little

Financial Manager Donna C. Mitchell, CPA

1 FREE BUY GET

For each CEO, get another subscription for your company, free!

To get this deal, go online to: inbusinessmag.com/ceo

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NOV. 2016

Office Manager Lesia Schneiter

Accounting Manager Todd Juhl

Corporate Offices 4455 E. Camelback Road

Building C, Suite 135 Phoenix, AZ 85018 T: (480) 588-9505 F: (480) 584-3751

info@inmediacompany.com

www.inmediacompany.com Vol. 7, No. 11. 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 June 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. © 2016 InMedia Company, LLC. All rights reserved.

No part of this magazine June be reproduced or transmitted in any form or by any means without written permission by the publisher.

INBUSINESSMAG.COM

JAMES LUNDY, ALLIANCE BANK OF ARIZONA

Banking Supports Commerce

James (Jim) Lundy is founding CEO of Alliance Bank of Arizona, established in 2003.

He has worked in a variety of commercial banking positions in Phoenix since 1984.

Lundy earned a Bachelor of Arts and Juris Doctor with distinction from the University of Arizona, and served as a lieutenant in the Judge Advocate General Corps of the U.S. Navy in Charleston, S.C. He is immediate past chair and current board member of the Greater Phoenix Economic Council, chair of the Catholic Community Foundation, secretary of the Phoenix Civic Improvement Corporation and currently serves on the FDIC Advisory Committee on Community Banking. He is a past chair of the Arizona Bankers Association and the Arizona chapter of Teach for America.

Banking is the foundation on which business and commerce are built. Persistent low interest rates, tougher regulations, capital requirements nearly double their pre-financial crisis levels, and emerging competition from “Fintech” firms are today’s challenges, but banks continue to be the critical financial intermediary from global conglomerates to small, local enterprises.

Given the central role banks play in our modern complex economy, good bankers need the discipline to tap the brakes when things are getting frothy but the courage to stick with good customers who hit a rough patch but can work their way out of it even in a downturn. Similarly, prudent business owners should seek out bankers who demonstrate they understand the dynamics of the industry and the overall marketplace. And all the key players in our banking system (bankers, regulators and politicians, and businesses) need to appreciate that the mortar that holds it all together — or not — is integrity and trust.

Of course, banks differ among themselves as to particular services — as well as industry focus and expertise. For this issue’s cover story, In Business Magazine invited some of the banks that serve our Valley businesses to iterate their particular “persona” of practices, processes and products.

In similar vein, area credit unions were invited to share their information as the issue’s Feedback feature. And In Business Magazine’s comprehensive annual guide to lending institutions has been updated and is offered as a resource to Valley businesses.

Presenting a feature article that touches business pillars of both marketing and communication, this issue offers tips to help businesses craft and control messaging when they’ve been hit with a crisis and social media spreads the news like wildfire. Another article shares how one area service business is trying to help public-facing ones reach an underserved market.

The By the Numbers feature looks at trends in green building and how the Phoenix market stands in relation to the nation as a whole. There is also a timely reminder of the recent federal overtime rule change, along with tips on being in compliance.

With its varied complement of topics in addition to the Banking cover story and the annual Business Lending Guide, this issue of In Business Magazine provides a depth of relevant information for business decision makers. I’m pleased to have worked with In Business Magazine to help bring you this information.

Sincerely,

James Lundy Chief Executive Officer Alliance Bank of Arizona

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

Bank on Us Each year, we produce the Lending Guide for our readers. We showcase the local lenders we recommend based on years in business, caliber of services and their interest in working with

in business is why we decided an article like this would be helpful.

We hope you enjoy it.

We want to thank Jim Lundy, in particular, for leading this

business. This year, we went a step further and talked some local

banking issue. His years in banking here in Arizona make him

heads of banks into telling us what differentiates them when

one of the true pioneers and his expertise has truly helped us

working with and alluring business customers. We were pleased that

focus our efforts in this issue on what business need from banks.

each demonstrated a great interest in truly helping the business and

Thank you to him and his team at Alliance Bank of Arizona for

were not so focused on the benefits to the bank itself. That “partner”

their input.

—Rick McCartney, Publisher

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

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

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INBUSINESSMAG.COM

EXHIBIT YOUR BUSINESS AT THE

VALLEY LEADERSHIP ALUMNI SOUND OFF

distinguishes your credit union from other types of Q: What lending institutions?

2016

be one of the 20+ companies on display with their top local executive on hand to talk business

Nov. 17, 2016 at The Camby Hotel

PRESENTED BY:

DAVID E. DOSS

SUSAN FRANK

President and Chief Executive Officer OneAZ Credit Union Sector: Financial Services

Chief Executive Officer Desert Schools Federal Credit Union Sector: Financial Services

As a local financial cooperative, OneAZ Credit Union exists to serve members who live and work in Arizona. We are owned and controlled by our members, meaning the money they put into the credit union stays in the community rather than going to shareholders in other states. One member’s savings becomes another member’s loan. Keeping the money local ensures the future of fellow Arizonans as well as our communities.

Each year, our members elect a volunteer board of directors to manage the credit union.

Members of the credit union are invited to attend our annual meeting and are eligible to vote on major decisions about our business.

As part of our commitment to help our members achieve their financial goals, our credit union offers a full suite of products and services tailored to their present and future needs.

Members get better interest rates on mortgages and loans, lower fees for services and higher rates on savings accounts due to the cooperative nature of our business. “Together is always better” is the guiding principle we operate under every day.

Desert Schools Federal Credit Union distinguishes itself from other lending institutions by practicing four very simple, but important principles that we refer to as “The Big Four.” They are Member Solutions, Employee Engagement, Community Involvement and Financial Strength. We think of these as the core fabric of our organization because each principle affects the other three.

We tell our members from day one that they’re an owner, not a customer, and there’s a significant difference in that line of thinking.

Desert Schools is comprised of members who share their resources to help each other.

Because members are owners, they also vote on the board of directors — ensuring their needs are always put first.

As a not-for-profit cooperative, Desert Schools prides itself on providing stellar service and innovative products to its members, and taking an active role in community outreach and education efforts in the Valley and beyond. The degree to which we care about our members and the community we serve is evident in the work that we do.

OneAZ Credit Union oneazcu.com David E. Doss is president and CEO of OneAZ Credit Union and has more than 35 years of executive leadership in financial services. He is a board director of PSCU, past member of the Twelfth District Community Depository Institutions Advisory Council of Federal Reserve Bank San Francisco, and a member of the University of Oxford Saïd Business School Alumni Association and the Economic Club of Phoenix.

Get more info at inbusinessmag.com

NOV. 20 1 6

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INBUSINESSMAG.COM

Desert Schools Federal Credit Union desertschools.org Susan Frank is the CEO of Desert Schools Federal Credit Union, a $3.6-billion, full-service, Arizona-based financial institution founded in 1939, with 50 branches located throughout the Valley. Her background includes more than 35 years of financial services experience, with 30 years dedicated to credit unions. Her community support extends to serving on numerous local and regional boards and supervisory committees.

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

Avoid Salary Surprises with Federal Overtime Rule Change The U.S. Department of Labor’s changes to the Fair Labor Standards Act scheduled to go into effect on December 1 raises the federal minimum salary level for overtime pay for FLSA-covered workers to $913 per week, or $47,476 annually.

The rule change announced this past spring has many companies already making preparations; the following tips will help businesses ensure they will remain compliant once December arrives.

Know the impacts before the law goes into effect. At many companies, payroll is by far the organization’s largest cost. This is why all businesses need to know how many employees on their payroll will be affected once the rule change takes place. Companies should review the job duties and salaries of workers to determine precisely who will be impacted and how significant those impacts will be.

Decide whether a time-tracking upgrade is needed. Companies may need to employ a new time-tracking system to manage more complex timekeeping situations when workers are reclassified to non-exempt status. Electronic solutions that allow employees to clock in and clock out at their workstations or via mobile devices will likely be the most helpful when it comes to avoiding sudden payroll surprises.

Many of these systems allow managers to obtain immediate, up-to-date status reports on their employees’ hours per pay period. Another helpful feature is the ability to receive alerts when an employee is reaching the overtime threshold.

Revisit company overtime rules. Are employees required to obtain written permission from an authorized supervisor prior to working overtime hours? If not, management may want to change protocols and/or policies to better track and control overtime costs. It should be noted that a policy requiring permission to work overtime is valid, but if an employee works overtime and the employer knew or should have known (or, as the FLSA says, “suffers or permits an employee to work”), overtime must be paid, although the employee may be disciplined for not following the policy. For many businesses, new checks and balances will become crucial to ensure that productivity and costs are appropriately managed.

BYTES

by Mike Hunter

Lookin’ Good on Chat Video chat platforms like Skype have become one of the main settings for interviews, but one big problem standing in the way of both recruiters and interviewees has been the quality of video lighting.

Chatlight is a simple, lightweight LED light that connects to a smartphone, tablet or computer to help create studio-type lighting during Skype and video interviews, so chat participants will look their best no matter where they’re calling from. Chatlight has two brightness settings to accommodate the user’s location, swivels up and down depending on where light is needed most, and recharges in only 15 minutes. chatlight.com

Consider after-hours work policies.

Thanks to the rapid rise of mobile computing, the ability to read and respond to work emails in the evenings and on weekends has become commonplace for workers at all levels. However, one must not forget that this work convenience is still considered work, and it could impact a company’s hourly totals. Non-exempt employees are required to be compensated for all the time they have worked, including time spent on work emails while out of the office. Company email policies should be revisited in light of this risk. It is also a good idea to reevaluate which employees truly require offsite access.

Communicate with employees prior to the rule change. Once a company determines if the new rules will have an impact and identifies the employees who will be affected, management should communicate with the affected workers and their supervisors to proactively explain any protocol or policy changes. This is also a good time to address after-hours email expectations.

Salary adjustments may make sense. Finally, some companies may decide to make pay adjustments for some employees whose salaries are near the cap. Doing so could reduce some of the timekeeping complexities the law could create. Employers need to know that a salary increase alone does not guarantee an employee is exempt from overtime, because there are also “duties tests” that must be met for an exemption to apply. —Anna Brewer, director of HR administrative compliance at Insperity (www.insperity.com), which provides human resources products and services

DEC

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Act-ivate Texts Scottsdale-based Swiftpage, the maker of Act!, has released SMS4Act! Act! helps individuals, small businesses, and sales teams organize prospect and customer details in one place, and send emails, market products and services more effectively. This newest Connection available to Act! Premium subscribers enables them to send text messages directly from Act! Premium. Proven to be more effective than email marketing according to a Dynmark report (bit.ly/intelligence-review), text messages are opened at a 98 percent rate. swiftpage.com

Savings for Small Business SRP is the oldest multipurpose federal reclamation project in the United States.

It has been serving central Arizona since 1903, nearly 10 years before Arizona became the 48th state. As part of its commitment to our community, SRP has a website dedicated to helping businesses save on energy costs. It offers information on rebates and energy savings, and provides energy tools and information that will demonstrate how to get started. srpnet.com/menu/savingsbiz

The change to the Fair Labor Standards Act scheduled to go into effect on December 1 makes an estimated 4.2 million additional salaried, white-collar American workers eligible for overtime pay.

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INBUSINESSMAG.COM

QUICK AND TO THE POINT

GET REAL

by Mike Hunter

New Restaurant and Retail WINLEE Development, the real estate development division of locally based investment firm Winfield Lee Investments, has commenced construction on Chandler Viridian PRIMEGATE at Fashion Square.

PRIMEGATE is the 24,000-square-foot distinctive restaurant and retail component of the 25-acre Chandler Viridian mixed-use project being developed by the consortium of Hines, Alliance Residential, Concord Hospitality and WINLEE. The project is located at the intersection of freeway loops 101 and 202 and prominently at the main entrance to the Fashion Center super regional luxury mall.

In addition to the PRIMEGATE amenities, the integrated multi-use project features an Alliance Residential Broadstone luxury multifamily community that is nearing completion; a 250,000-square-foot, six-story, Class-A office building by Hines; and a Concord Hospitality Cambria Hotel, all interconnected via jogging trails and grand pedestrian promenades. cbre.com

Artistically Thriving Desert Viking Development’s new project, The Blocks of Roosevelt Row, will see the adaptive reuse of three bungalow-style homes and the prominent Flowers building, and construction of a new, threestory commercial building. The project to revitalize a portion of the Roosevelt Row Arts District is set to be completed in fall 2017, with portions delivering earlier next spring. Featuring local restaurants, lush communal patios and an entertainment venue, as well as market-style retail spaces — perfect for local artists and small artisan retailers — the project is designed to be an entertainment destination for all ages to enjoy.

Attention is also being given to protecting the historical integrity of the neighborhood. Says Niels Kreipke, principal and founder of Desert Viking, “With so much vertical construction taking place throughout Downtown, we felt it was important to hold on to some of the quaintness of the area by preserving some of the bungalows and structures that have stood for many years.” theblocksroosevelt.com

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INBUSINESSMAG.COM

Local Company Wins Prime Aerospace Contract Local small-business aerospace company Qwaltec recently won a $19-million, five-year contract with the U.S. Navy. Founder and CEO Shawn Linam, noting this is her 15-yearold company’s first prime contract with the government, says, “It’s a huge step for us; it’s hard to break through that ceiling.”

Qwaltec will provide support services for the Navy Satellite Operations Center in Point Mugu, Calif., to operate, manage and maintain ground systems, providing continuous, reliable and endurable global space communication in direct support of the Fleet, the Joint Warfighter and Interagency Users. The work is to be performed at NAVSOC HQ located at Naval Base Ventura County, Point Mugu; NAVSOC Detachment Delta located at Schriever Air Force Base, Colorado Springs, Colo.; NAVSOC Detachment Alfa located in Prospect Harbor, Maine; and Detachment Charlie located in Finegayan, Guam. Although this contract will not result in a strong direct impact on our local economy, Linam notes, “It gives us greater flexibility to win in future prime contracts with the government.”

Being a woman-owned company gave Qwaltec no edge in the bidding for this contract; but this contract was set aside for small business.

Linam feels the local aerospace economy has grown and continues to do so. She admits that, when she founded Qwaltec in 2001, “being in Arizona was no benefit” and she considered moving back to Houston or to Washington, D.C., where there is a lot of aerospace activity. “But we chose Arizona for quality of life.” Customers, which include Orbital ATK and General Dynamics, have grown. And the company sees opportunities in partnering with Arizona State University in its School of Earth and Space Exploration, Linam says.

—RaeAnne Marsh Qwaltec qwaltec.com

Zero-Down Remodel Aids Real Estate Sales An updated home sells faster and for more money than a comparably sized fixer-upper.

Nathan Pierce and Nick McCully created their No Money Down Remodel Program to help prospective homesellers realize their home’s greatest potential, fronting the cost of construction through their newly founded Strong Tower Homes and Construction, the residential construction division of Strong Tower Real Estate Group.

Benefit goes both ways. With homes that are structurally sound but have a lot of deferred maintenance, “a lot of times, owners are elderly, are on a fixed income or for some other reason do not have extra cash, but they have equity in their home, and they become victim to a tax investor who may fix the home a little or even flip it as is,” Pierce explains, speaking from the experience of his 19 years as a real estate agent. STHC will “do what’s necessary to get the biggest bang for the homeowner” — work that will improve the home’s value but not cost more than what the expected return would be — then sister company Strong Tower Real Estate Group puts the home up for

sale. “We’re putting our money where our mouth is,” he says, explaining there is no interest charged and cost of construction gets paid back at closing.

“It’s usually a faster sell and a higher price because the home is move-in ready,” he notes.

Having recognized this need in the marketplace, Pierce says he and McCully last year bought an established contracting company with a contractor who has been in the industry 20 years.

By combining real estate and general contracting services, Pierce says what STHC offers “is a real estate agent with a ton of experience who’s wearing a construction hat” rather than a contractor who’s trying to sell a remodel. And his real estate company gets a solid pipeline for investor homes, which, Pierce shares, is currently experiencing a low inventory. —RaeAnne Marsh Strong Tower Homes and Construction sthc.co

Desert Viking Development — a leading real estate development firm based in Arizona and recognized for investment in the restoration of historic properties, adaptive reuse projects and ground-up construction developments — has acquired and/or rehabilitated more than 20 National Register Historic properties and completed numerous mixed-use projects throughout the Phoenix metro area. desertvikingcompanies.com

BY MIKE HUNTER

METRICS & MEASUREMENTS

‘Green’-Certified Buildings Becoming the New Normal

Third annual green building adoption index shows percentage of U.S. office space “green”-certified tops 40 percent Institutional owners of office buildings continued to pursue green building certifications in the 30 largest U.S. markets during 2015. Continuing an upward trend over the past decade, green certifications are now held by 11.8 percent of all surveyed buildings, representing 40.2 percent of all office space. Both figures are slightly above last year’s results, according to the third annual Green Building Adoption Index study by CBRE Group, Inc. and Maastricht University. “Green” office buildings in the U.S. are defined as those that hold either an EPA ENERGY STAR label, USGBC LEED certification or both.

“While the rate of growth in ‘green’ buildings has slowed modestly, our latest study underscores that in most major markets, sustainable office space has become the ‘new normal,’” says David Pogue, CBRE’s global director of corporate responsibility.

After placing second on the Green Building Adoption Index the two prior years, the San Francisco market claimed the top spot with 73.7 percent of its space qualified as green certified.

Chicago claimed the second spot, narrowly trailing the leader at 72.3 percent, and Minneapolis fell from the top into third spot at 60.6 percent. Houston, Atlanta and Los Angeles all also achieved more than 50 percent green certification in their office markets.

Phoenix continues to perform in the bottom half of nearly all green building statistics, and slipped two notches to 20th overall in this year’s ranking. The square footage percentage of % sq. ft. of % of Buildings

CBRE Group, Inc. cbre.com Green Building Adoption Index bit.ly/gbai-2016-announcement bitly.com/ngbai-2016

Energy Star Adoption

Buildings

Total

8.45

28.92

Energy Star

6.54

21.06

LEED

3.51

11.81

Existing Buildings

2.71

9.62

New Construction

0.24

0.50

Core and Shell

0.56

1.69

30 Percentage

Phoenix Q4 2015

green space also slipped a bit, to 29 percent, down from the previous year’s high of 30.4 percent. Phoenix was very consistent in its placements, as the market’s 21-percent total of Energy Starlabeled space also was 19th while the LEED footage, at 11.8 percent, finished at number 18.

In 2015, the top 100 office transactions greater than 10,000 square feet were tracked that occurred in the Phoenix Metro area. Of these transactions, approximately 25 percent, or 919,956 square feet, occurred in green buildings. Yearover-year, this is seen as a large increase as office property owners have more incentive to obtain LEED certification to attract image-conscious tenants.

According to local experts, however, it is too early to tell if green buildings are becoming increasingly popular. Many of the newly constructed office buildings in Phoenix are LEED certified, but this is not necessarily a major factor for tenants considering leases at those properties. The cost savings tenants incur by occupying a LEED-certified building are still too insignificant for them to consider this a deciding factor. Certain tenants, such as government tenants, are beginning to prefer to occupy LEEDcertified buildings mainly due to internal mandates.

20 10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 # of buildings sq. ft. of buildings

Total Adoption

LEED Adoption

30 20

Percentage

Percentage

15

10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 # of buildings

sq. ft. of buildings

10 5 0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 # of buildings

sq. ft. of buildings

Source: Green Building Adoption Index, executed in close collaboration with the U.S. Green Building Council and CBRE Research, which shows the growth of ENERGY STAR- and LEED-certified space for the 30 largest U.S. office markets over the previous 10 years.

Fourteen of the 136 green buildings in Metro Phoenix were sold in 2015. The most notable sale was a 978,495-square-foot purchase of four properties at the Camelback Esplanade by LBA Realty for $279 million. bitly.com/ngbai-2016

‘GREEN’ ADOPTION RATE SLOWING? The overall results of the study do show that, while the uptake of green building practices in the 30 largest U.S. cities continues to be significant, the rate of adoption is slowing.

“This likely reflects the fact that only a certain fraction of the building stock can obtain a green or energy-efficiency certification,” says Nils Kok, Ph.D., associate professor in Finance and Real Estate at Maastricht University. “Additionally, we believe that some buildings that were previously certified did not renew their certification in 2015.

This does not necessarily mean that the energy use of these buildings has changed, but that some owners and managers may choose not to spend the time or expense to reapply for certification every year.”

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INBUSINESSMAG.COM

OUR SUBJECT IN-DEPTH

The Integration of Love and Business Caring and connectedness show their mettle in the workplace

by Jonathan Cottrell

Driving and texting. Church and state. Love and business.

At first glance, one would think these things should stay as separate from one another as possible. And, frankly, that’s how most people treat them — as combinations that simply don’t mix well, each half of the given pair to be compartmentalized and engaged with on its own.

The thought of love being exercised in the context of a business environment is an especially strange one to most people. As a working society, we’ve been conditioned to rely upon our minds and keep most of our hearts outside the office.

No discussion of personal matters. No hugging. No letting friendships or relationships interfere with business. And, especially, no saying, “I love you.”

THE DATA SUGGESTS OTHERWISE

A serial starter, community builder, and self-proclaimed cranial nudist, Jonathan Cottrell serves entrepreneurs and their communities in Love as the chief entrepreneur officer of Hopscratch and early instigator behind local movements like #yesphx and PHX Startup Week. hopscratch.com

NOV. 20 1 6

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Raj Sisodia, one of the co-founders of conscious capitalism, revealed in his well-researched book Firms of Endearment that one can, absolutely, “build a high-performance business on love.” In fact, these companies that embrace love as an ideal have outperformed the S&P 500 by a factor of 14 times and “Good to Great” companies six times, over a period of 15 years.

The trend toward this more mindful form of capitalism has been instrumental in revealing the power — and, yes, performance — of businesses engaging in cultivating cultures that ambitiously connect people to each other, messy emotions, bleeding hearts and all.

But the questions remain: What should love in business look like? Do we have to use the word “love,” or should we prefer safer words, like “care”? Should CEOs and executives be known for their outward demonstration of love toward partners, employees and customers?

EMBRACING LOVE FIRST

At the local startup Hopscratch, we’ve embraced the word “love” — and the expression of it —in some ways that intimidate some people but intrigue most. In our five-fold

promise to every stakeholder who engages with our business, we lead with “Love first.” True, even Enron listed “integrity” as a corporate value, but for us, these are not just the wordson-a-wall that many companies write to make their investor documents or website look better.

Placing love first in all things means we prioritize people over profit. Within our walls is an interdependent community of people breaking down societal norms, unreserved with their love for one another and the customers who make it possible for us to work within such an absurdly different culture. As our small company continues to grow, we’re convinced that love never fails — or, put another way, love always succeeds.

We realize this is not the definition of success many think of when first thinking about companies, but we don’t see a need to compartmentalize ourselves, living one way while on the clock and a different when off it. Co-workers are the people we spend the most time with during the week, so why should we treat them any differently than we do our family or friends? Why should we close our emails “Best” and not “Love”? Why should we rely upon firm handshakes instead of friendly embraces?

Why should we choose to avoid emotional topics of conversation rather than diving into the personal lives of those we work with every day?

Love is not something that requires separation from business any longer. In fact, love is perhaps the most potent possible force for good in business, capable of fostering environments of trust, radical candor, health, and even life-change right where you would not expect it: within the beige corporate walls and cubicles of your very own company. Let us love others like we try do all things in our work: with excellence.

Love in Business: A Three-Part Series The Integration of Love and Business (Nov. 2016) Loving Well, Sans Weirdness (Dec. 2016) Quantifying Love in Business (Jan. 2017)

While some may tread cautiously before integrating love in business, the research behind the book Firms of Endearment has illustrated well that organizations built on love have outperformed the S&P 500 by a factor of 14 times and “Good to Great” companies six times, over a period of 15 years.

LAW MATTERS TO BUSINESS

The Employer Shared Responsibility of the Affordable Care Act Provisions, definitions and liabilities business owners need to know about

by Kathy Steadman

After considerable fits and starts, the employer responsibility provisions of the Patient Protection and Affordable Care Act (PPACA) are now in full play. While implementing regulations and related notices can be complex, business owners should understand the basics in order to avoid penalties, identify the best-suited healthcare solutions for their workforce and remain compliant as they grow.

WHAT IS EMPLOYER SHARED RESPONSIBILITY?

Since January 1, 2016, employers that generally employ 50 full-time employees (or a combination of full-time and parttime employees that is equivalent to 50 full-time employees) are subject to the employer shared responsibility requirements of PPACA. This includes for-profit, nonprofit and government employers. The U.S. Treasury Department estimates approximately 96 percent of employers in the United States are small businesses (49 or fewer full-time employees), which means the employer mandate doesn’t apply to them. However, it’s prudent for owners of such businesses to understand the law if they plan to grow or are nearing the cusp.

Under the law, applicable large employers may face financial penalties if they don’t offer coverage to at least 95 percent of their full-time employees that is also “affordable” and meets “minimum value” standards. Coverage is considered “affordable” if it is less than 9.66 percent of an employee’s household income. “Minimum value” covers at least 60 percent of the total cost of medical services for a standard population, as well as substantial coverage such as inpatient hospitalization and physician services.

Since January 1, 2015, employers with more than 100 full-time employees have been subject to the shared responsibility requirements. Since the start of this year, those requirements were extended to employers with more than 50 full-time employees.

An employer will be subject to the penalty if at least one full-time employee receives a premium tax credit for purchasing individual coverage on a health insurance exchange.

WHO IS CONSIDERED A FULL-TIME EMPLOYEE?

Generally speaking, a full-time employee is employed on average at least 30 hours per week. Employers utilize employee hour data from the prior year to determine full-time status. However, an employer that wasn’t in business the prior calendar year is considered an applicable large employer if it was reasonably expected to employ an average of at least 50 full-time employees.

PPACA also requires that an employer examine the number of part-time and seasonal employees to determine how those employees calculate to “full-time equivalents.” For example, if an employer has 40 employees working an average of 30 hours per week and 20 working an average of 15 hours per week, the employer would have 50 full-time equivalents. Thus, the employer would be an “applicable large employer.”

Essentially, in addition to offering coverage to at least 95 percent of its full-time employees and their dependents, an employer must offer affordable, minimum-value coverage to its employees and their dependents. For purposes of PPACA, a spouse is not considered a dependent.

PENALTIES FOR FAILURE TO COMPLY

Again, what triggers an employer shared responsibility payment is a full-time employee obtaining coverage through a health insurance exchange and receiving a premium tax credit. And, while the employer is required to offer coverage, employees are not required to enroll for such coverage.

However, the individual PPACA mandate may likewise create penalties for the employee.

The penalties can be complex and confusing. In that regard, employers could face two different penalties — one for failure to offer coverage to 95 percent of employees and eligible dependents, and one for failure to offer coverage that’s affordable and provides minimum value. However, it’s anticipated the Internal Revenue Service will adopt procedures so employers receive a notice that one or more employees have received premium tax credits on a health insurance exchange. The IRS will then contact employers to notify them about the potential liability/assessment and provide them an opportunity to respond.

From a practical standpoint, most employers still purchase employee benefits from insurance companies authorized to do business in Arizona. Those insurers are intimately aware of the PPACA employer shared responsibility provisions. Thus, the easiest course is to procure insurance from a reputable, licensed insurer that clearly identifies its policies as PPACA compliant. At that point, offering that coverage to all full-time employees and their dependent children should keep companies on track for avoiding employer shared responsibility penalties.

Editor’s note: Because of the timeliness and importance of this information during open enrollment season (Nov. 1, 2016 – Jan. 31, 2017), we are bringing this article forward again for the benefit of our readers.

Kathy Steadman is a shareholder with Coppersmith Brockelman in Phoenix. She primarily practices in the areas of employee benefits, public pension, insurance and other regulatory matters. cblawyers.com

The Kaiser Family Foundation offers a simple flow chart to help employers understand their PPACA shared responsibilities: bit.ly/employers-ppaca.

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INBUSINESSMAG.COM

INNOVATIONS FOR BUSINESS

TECH NOTES

by Mike Hunter

Tee Time Mobile-ized Folla Media LLC, a Scottsdale-based holding company of leading golf brands, has launched Golfpay, a golf reservation app that offers golfers a new way to book their tee times. The Web-based app is the first in the world to allow golfers to pay and check-in from their phone, creating a time-saving, hassle-free experience that is quickly becoming the norm in other industries.

Optimized for performance on mobile devices, Golfpay’s unique design and technology has seamlessly bundled a number of features that include no booking fees for golfers, reservation invites, split payment options and, of course, mobile check-in.

Golfpay works in conjunction with Pivotal, a Webbased kiosk and easy-to-use interface, which clearly lays out the golfers who are using Golfpay’s fast check-in and payment system. Pivotal also tracks new acquisitions, and makes customers more loyal through other exclusive features. Implementation of the platform began last month at golf courses throughout Arizona, with other states to follow by 2017. golfpay.co

On-Demand Access for Homebuying Real estate company Opendoor has launched an app for iPhone and Android that gives homebuyers instant access to hundreds of homes for sale in the Phoenix area. With a few taps, buyers can find homes that match their criteria, view home details, and instantly take the next step of visiting homes on their schedule.

Opendoor has seen more than 60 percent of its home visits occurring outside of traditional open house hours. Buyers see home visits as integral to making a confident and informed decision, but busy schedules and weekend activities make it a key pain point in the process. With the launch of the app, homebuyers can gain entry to every Opendoor home between 6 a.m. and 9 p.m. any day of the week, straight from their app.

Among its other features, the app allows users to browse Opendoor homes for sale with a map or list view; filter homes by bed, bath and/or price to see only those that match their criteria; see highresolution photos and at-a-glance property details for every home; and connect with Opendoor experts for a seamless purchase process. opendoor.com

NOV. 20 1 6

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INBUSINESSMAG.COM

AC in e-Commerce “E-commerce dominates our buying patterns now,” says Erik Bryan, founder and owner of newACunit.com, observing that Amazon has changed the way people buy. “People want simplicity and affordability, and want what they want now. Bringing air conditioning to that platform was only a matter of when.”

Buying air conditioning units over the Internet has already been happening — millions over the past three years, according to Bryan — but he notes there were service limitations: Consumers found many contractors did not want to install such units, and the manufacturer’s warranty was not valid. Bryan created his online marketplace to solve those pain points.

NewACunit.com is an online platform where buyers can enter the information from their current air conditioning units and homes to compare the efficiency of new models and the differences in price. They can then place their order and select one of the listed installers — all of whom Bryan has vetted. And, says Bryan, “We negotiated with the manufacturers to make sure the warranty is intact.”

The final step is a jobsite inspection by the selected installer “to make sure the customer bought the

right equipment.” For the consumer, the website offers both cost savings and convenience.

Launched in Phoenix this past January, the company has sold hundreds of units with little marketing, according to Bryan. His initial expansion plans are to launch by mid next year in Dallas/Fort Worth, Houston, Atlanta and perhaps Jacksonville — covering the five top air conditioning markets in the country.

“The platform is simple to duplicate,” he says. “[But] I will need to research contractors to be installers in those markets.” Benefit to them is the opportunity to gain customers, since, Bryan points out, “this is a free lead source; we’re not interested in [acquiring] customers.”

—RaeAnne Marsh newACunit.com

Personalized Systems Enhance Fire Safety Technology has advanced the fire alarm industry from blaring horn strobes to intelligent voice communication. The trend is to provide more information and give directions, replacing the traditional “make a lot of noise and flash some lights to drive everybody away from the fire,” says David Burns, production manager with Siemens, a multifaceted engineering company.

A key technological advance is intelligibility — the ability of occupants to understand the message. Acoustics play a huge part in this; in rooms with a concrete floor and no softening wall or window treatments, broadcast sound reflects and becomes distorted. So a critical requirement in the code is an evaluation of the facility. Intelligibility may be better with, for instance, lower volume and more speakers, also adjusting the direction of the speaker output so the emissions don’t overlap.

Another valuable advance affects transmission of the signals. Past technology did not support multiple messages; now, systems are configurable so different messages can be broadcast to different areas. If a hazardous

event happens in one section of a building or campus, occupants there can be given evacuation directions, while other areas can be sent a message to “stay where you are; the hazardous event is in another area. Further information will follow.”

Systems using voice communication have been required in high-rise-type office buildings, but code authorities are now recognizing the need to expand their use, according to Burns. “They’re seeing the effect — occupants in buildings with voice communication systems are three times more likely to evacuate safely,” he says. “With emergency voice communication, we can direct people to certain areas and away from a hazard.”

He notes systems can fit any market need, from a small elementary school to the Empire State Building.

—RaeAnne Marsh Siemens siemens.com/us/en/home.html

The next 7–10 years will see most building owners electing to install some type of intelligent voice communication system for use in broadcast emergency situations, says David Burns, production manager with Siemens, a leader in the fire alarm industry. siemens.com/us/en/home.html

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YOUR BENEFIT IN BUSINESS

WELL WELL WELL

by Mike Hunter

New Company Investing in Healthcare Startups Trinnovate Ventures, a subsidiary of Blue Cross Blue Shield of Arizona that launched last year focused on accelerating healthcare innovation, aims to improve quality of life, increase efficiencies and enhance the overall healthcare experience for consumers and providers through strategic investments. The company provides business resources, offers access to capital and strategic assets, fosters business development and advances the business incubation cycle for emerging population health solutions and services.

“Through Trinnovate Ventures, we’re looking for ways that change the way healthcare is delivered — not only to increase efficiencies for providers, but to ultimately improve the lives of patients,” says CEO Vishu J. Jhaveri, M.D. Current partners receiving funding and resources: ACO Partner — a joint venture between McKesson and Trinnovate Ventures that brings Maximum Services Organization capabilities to independent physician practices.

VisionGate — a biotech company dedicated to saving lives through early disease detection and prevention of lung cancer.

MedMinder — a pharmacy that provides a unique dispensing system to simplify medication management and improve adherence.

Vision Care — a company whose mission is to make eye care affordable and eye health a priority whether a consumer has vision insurance or not.

trinnovateventures.com

Public Health Industry Standards The National Board of Medical Examiners, one of the nation’s leading and most respected assessors of health professionals, has set its sights on improving the quality of clinical research by introducing the Certification of Excellence in Clinical Research.

With several major cases in the news about clinical trials gone awry, the new NBME exam will evaluate a clinical researcher’s knowledge, with a goal of helping to protect the well-being of trial participants, reducing delays and mistakes, and helping identify areas for improvement.

The exam has two versions — one for investigators and scientists, and the second for clinical research monitors, associates and coordinators.

NBME anticipates that recognition of a universal standard of research knowledge will help lead to fewer delays, lower drug development costs and less risk for participants in clinical trials. nbme.org

NOV. 20 1 6

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INBUSINESSMAG.COM

Be Alzheimer’s-Friendly to the Public Enabling public-facing businesses to better serve a consumer population dealing with Alzheimer’s and other dementias, Home Instead Senior Care last month rolled out a special Alzheimer’s Friendly BusinessSM training program.

“The unpredictable nature of the disease is one of the biggest deterrents to going out in public,” says Rey Graf, client care representative with the local franchise operation. A recent national survey by the franchise company found “a lot of families are just staying home — and becoming isolated,” she explains.

Building on the company’s hands-on experience working with these families, HISC developed the program for banks, restaurants, grocery stores — all those who would be working with the public coming to their place of business — to create better awareness of the disease; educate owners, management and employees as to what the disease is and is not; and provide them with tools to welcome family caregivers who may otherwise be reluctant to take their loved ones into public places. Tips include speaking more slowly (not louder), creating a quiet space where appropriate, and using more body language.

Trainings will be offered once monthly through December at each franchise office (one in Mesa,

one in Sun Lakes). Larger businesses can arrange to have a trainer come to them, and, for businesses that would need to accommodate multiple work shifts, HISC offers train-the-trainer sessions along with presentation collateral. Material is also readily available on the HISC website.

According to the Alzheimer’s Association, the number of people age 65 and older with Alzheimer’s disease in the United States is estimated to reach 7.1 million by 2025 — a 40 percent increase from the 5.2 million people age 65 and older affected in 2016. In Arizona alone, nearly 130,000 seniors live with Alzheimer’s or another form of dementia, and the number is expected to grow by nearly 54 percent, to 200,000 people, by 2025.

—RaeAnne Marsh Alzheimer’s Friendly Business alzheimersfriendlybusiness.com Home Instead Senior Care homeinstead.com/195

Healthcare IT Grows in Niche Market Phoenix-based Topaz, a healthcare IT company that recently underwent a rebranding to support its evolution to a national provider of healthcare technology solutions, has grown since its founding in 2008 from a staff of two focused solely on the Arizona market to a staff of 43 with clients in nine states. Javier Favela, president and CEO, credits that in large part to “a shift in the healthcare industry to a more integrated approach to care.”

The company focuses on the specific needs of behavioral health and social services organizations, developing clinical content (“by clinicians for clinicians”) and custom practice management solutions in partnership with NextGen®. Says Favela, “We are one of few products on the market with content that can support their needs.” It was founded, in fact, by two large, community-based behavioral health organizations. The wide variety of behavioral health specialties ranges from outpatient mental

health to the autism spectrum, and there is also a big focus on organizations such as those that serve foster children.

Favela believes the shift in payment models from pay-for-performance to fee-for-service has also helped his company, with Topaz enabling its customers to achieve better results. “We have an impact on the patients our organizations serve and on the payers our organizations contract with,” he says.

Topaz recently moved to an 11,300-squarefoot Class A office space in the Xerox building, located at 2700 N. Central Ave. in Phoenix, where it projects to bring on an additional 20 employees over the next year.

—RaeAnne Marsh Topaz topazis.com

Businesses can take simple steps to present a more welcoming atmosphere for those suffering Alzheimer’s, a population the Alzheimer’s Association cites for Arizona at 130,000 currently and projected to be 200,000 by 2025. alz.org

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Banking on Your Business Supporting business, the Valley’s banking industry gives business owners a variety of options

by RaeAnne Marsh

T

ales of usurers make for enduring literature (Shakespeare’s Merchant of Venice is a notable example), but it’s an indisputable fact that commerce would not exist without reputable financial institutions and loan opportunity.

Of course, banking has evolved to be much more than a lending resource. For instance, as Toby Day, chairman of the Arizona Bankers Association and Arizona market president

of Arizona Business Bank, notes in his letter introducing this issue’s In Business Magazine 2016/2017 Business Lending Guide (page 53), “Not only do banks lend to the Arizona community, but they reinvest in it, employing thousands of Arizonans and donating time and money to nonprofit organizations.”

It benefits business owners and corporate leaders to make sure the bank they choose is the best fit for what they need. Banks are regulated as to many practices, but there is still wide variety

in the products they offer and the processes they follow. Plus, as Alliance Bank of Arizona CEO Jim Lundy observes in his Guest Editor letter (page 9), “Prudent business owners should seek out bankers who demonstrate they understand the dynamics of [their] industry and the overall marketplace.”

“Why should I bank with you?” is an eminently fair question for businesses seeking a compatible banking partner. In Business Magazine begins this dialogue by asking select Valley banks to voice their response.

ALLIANCE BANK OF ARIZONA

BANK OF AMERICA

Ed Zito President Alliance Bank of Arizona

Benito Almanza State President Arizona Bank of America

Alliance Bank of Arizona offers our clients the best of both worlds: the strong capacity and sophisticated product offerings of a large bank with the flexibility, commitment and exceptional proactive service of a relationship bank. The following are characteristics we feel set us apart: Responsive decision making, as our team has the authority to make lending decisions quickly, with the power to cut through red tape. We strive to ensure customers can count on competitive rates and a smooth, timely execution.

Robust lending capacity and state-of-the-art services through 11 Arizona bank locations, where we provide a full spectrum of deposit, lending, treasury management, international banking and online banking products and services. Plus, our specialized national business lines — from public and nonprofit finance to technology finance, resort finance and many others — provide more specialized knowledge and expertise.

A single point of contact, so each customer has a dedicated relationship banker to meet with all his or her banking needs, supported by the extensive resources and financial solutions.

Access to senior management, as our senior management takes an active role in delivering powerful banking resources to our clients. We believe this is a real differentiator among our peers.

Experts who know the client’s business. We understand the industries that are important in Arizona and the unique challenges and opportunities that face individual businesses. We are committed to knowing more and doing more for our clients.

True community connection. At Alliance Bank of Arizona, we are proud to support our community — from meaningful financial contributions and bankers who serve on nonprofit boards and provide extensive community service hours, to leadership on key statewide issues, especially education.

Bank of America offers local business banking expertise with full global capabilities to the entire spectrum of companies, from small businesses to commercial enterprises with billion-dollar annual revenues. Regardless of size, business owners want individual, personalized service to help expand their businesses. That’s why Bank of America is devoted to making the financial lives better for millions of business clients and their employees. We do this through a “shared success” model, which means when our customers and local communities succeed, we will succeed.

When it comes to small business, we have 23 locally based smallbusiness bankers and a team of client managers and phone, video and chat specialists who, together, provide banking, credit and cash management solutions to meet the unique, long-term needs of small-business owners. They do this through thousands of faceto-face meetings with Phoenix business owners, this year alone, to listen to their needs and advise on growth strategies. It’s already resulted in a 160-percent increase in our lending to local companies, driven by a rebound in the region’s commercial real estate and low interest rates that make refinancing and purchases of new equipment for affordable.

Last year, we also debuted an unsecured line of credit product to focus on the immediate, and sometimes smaller end, of the credit spectrum for small-business owners. And we have more than 2.3 million small-business users of our online and mobile capabilities. For Arizona’s new startups and micro-enterprises that may not yet qualify for traditional bank lending, we partner with community nonprofit lenders like Accion to offer technical training and microloans, including women-owned businesses in Arizona in conjunction with the Tory Burch Foundation.

westernalliancebancorporation.com/alliance-bank-of-arizona-home

bankofamerica.com

At Alliance Bank of Arizona, we are

Bank of America is devoted to making

proud to support our community — from

the financial lives better for millions of

meaningful financial contributions and

business clients and their employees.

bankers who serve on nonprofit boards

We do this through a “shared success”

and provide extensive community service

model, which means when our

hours, to leadership on key statewide

customers and local communities

issues, especially education.

succeed, we will succeed.

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NOV. 2016

INBUSINESSMAG.COM

BANK OF ARIZONA Dave Ralston CEO Bank of Arizona Commitment, passion, discipline — those are terms one often hears from a coach describing what a team needs to win. In some ways, banking isn’t a lot different from that.

Bank of Arizona celebrated its 10th anniversary last year, and I credit that achievement to the Bank of Arizona employees and the customers we serve. The bank was formed in 2005 when its parent company, BOK Financial, established a loan production office in Phoenix, followed by the purchase of two branches and the formation of Bank of Arizona.

BOK Financial is one of the nation’s top 25 U.S.-based banks, with banking operations throughout the Southwest and clients nationwide.

From the beginning, Bank of Arizona has focused on meeting unique client needs with customized solutions that aren’t always available from the mega-banks. The strategy has served the bank well, as the organization that began with $95 million in loans recently surpassed $1 billion.

Bank of Arizona emphasizes relationship banking for companies of all sizes. The bank can help growing companies raise capital in a variety of ways, from providing assistance with SBA loans to serving as agent for loan syndications to companies that need a multi-bank credit facility. The capacity to lend, paired with state-of-the-art treasury services and local customer service, makes Bank of Arizona the ideal bank for business.

BOK Financial traces its roots back to the early 1900s, when oil industry entrepreneurs couldn’t find a bank that would loan them money. A group of oil men founded our company to help businesses get the capital they needed. We never forget that helping business owners who are trying to grow and expand their company is how we got our start — and it’s still how we’re successful today. bankofarizona.com

Diversity Trends in Small Business Investing Maria Contreras-Sweet, administrator of the U.S. Small Business Administration and the voice of small business on President Obama’s Cabinet, last month heralded the release of a groundbreaking SBA study showing the racial and gender makeup of investment boards is tied directly to investment decisions they make, especially with regard to the race and gender of the owners of companies in which they invest.

Contreras-Sweet highlighted the importance of the findings, saying, “I have made it a top priority as SBA Administrator to ensure that firms led by women and underrepresented groups are able to reach their full potential. I know some of these challenges firsthand. Unfortunately, startups owned by women and minorities often face an even more daunting challenge accessing the capital they need to grow and prosper. This study confirms that challenge but it also shows that we can expand opportunity and increase our overall economic strength by ensuring more women and underrepresented groups are in a position to make major investment decisions.”

The report measuring the representation of women and minorities in the Small Business Investment Company program was produced by Dr. John Paglia, associate dean and professor of finance at Pepperdine Graziadio School of Business and Management, and Dr. David T. Robinson, professor of finance at Duke University Fuqua School of Business, senior strategist for research for the Duke Innovation & Entrepreneurship Initiative and an advisory board member for the Private Equity Research Consortium. Underlying research was conducted by the Federal Research Division of the Library of Congress.

During the event, Contreras-Sweet also announced a new public-private partnership with LinkedIn and other organizations called Open Network for Board Diversity (ONBOARD). This coalition will work to expand the presence of underrepresented groups on high-growth, small-business advisory boards and boards of directors and increase diversity in small-business leadership, particularly for those supported by Small Business Investment Companies.

Bank of Arizona has focused

With more than 450 million members and more than two million groups using its service, LinkedIn is able to provide a platform to convene organizations and

on meeting unique client needs

leaders who have committed to increasing access for diverse candidates to

with customized solutions that

Business Investment Companies (SBICs) and member institutions as well as

aren’t always available from the

led initiative, the partner organizations will be able to help contribute and curate

mega-banks.

join boards. Active members of the group will benefit from exposure to Small information and insights shared by other members of the group. As a communityrelevant content and participation. —U.S. Small Business Administration Measuring the Representation of Women and Minorities in the SBIC Program sba.gov/sites/default/files/SBIC-Diversity-Report.pdf ONBOARD linkedin.com/groups/8577260/profile

INBUSINESSMAG.COM

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WELLS FARGO

NATIONAL BANK OF ARIZONA Brent Cannon Executive Vice President and Director of Retail and Executive Banking National Bank of Arizona Specializing in building local relationships and providing exceptional customer service, National Bank of Arizona® offers a comprehensive suite of products and services for individuals and businesses.

Taking a 360-degree view of each client’s needs, National Bank of Arizona is able to provide customized products and services.

Customers receive tailored solutions to their unique financial problems and are supported with access to executive management and local decision-making.

National Bank of Arizona provides deposit, lending, wealth management and products for consumers, executive and private banking clients. Small businesses, corporate and commercial clients have access to deposit, lending, treasury management, international services, corporate trust, municipal finance, mergers and acquisitions, trust and escrow services, and nonprofit products and solutions. All products include the convenience of online and mobile banking.

Since its founding in Tucson in 1984, NB|AZ® now has 59 branches throughout Arizona. Backed by the strength of Zions Bancorporation, it offers customers the resources they need with the responsiveness and personalized service they expect from a local bank. nbaz.com

Pam Conboy Lead Region President Wells Fargo Wells Fargo has been a long-time supporter of small businesses. We know the important role small businesses play in our economy and our local communities, and helping them realize financial success is a rewarding part of our work at Wells Fargo.

Year in and year out, we’re helping small businesses across the country access the capital they need to manage and grow their businesses. By keeping our focus on serving small-business owners, Wells Fargo has loaned more dollars to small businesses than any other bank for 14 years (2002-2015 CRA data).

To help more entrepreneurs and small-business owners achieve financial success, we launched Wells Fargo Works for Small Business®.

From financial services to educational resources and programs, Wells Fargo Works for Small Business is designed to help business owners take the next step toward their goals, and provides wide-ranging support for business owners throughout the U.S. to help them build knowledge, access capital and expand their community of support.

Within that program, we recently introduced the Business Credit Center as a step forward in demystifying the credit process and empowering business owners to confidently navigate the credit journey. This new, free resource was designed to help improve business owners’ understanding of credit — from preparing to apply, to applying and managing credit.

In addition to providing tools and resources to help businesses grow and thrive, Wells Fargo supports numerous outreach efforts in the communities we serve to build relationships with business owners and help them succeed financially. Wells Fargo is here to help — from educating small-business owners on financial health to making sense of financing options available. wellsfargoworks.com

Taking a 360-degree view of each client’s needs, National Bank of Arizona is able to provide customized products and

We recently introduced

services. Customers receive tailored

the Business Credit

solutions to their unique financial

Center as a step forward

problems and are supported with access

in demystifying the

to executive management and local

credit process and empowering

decision-making.

business owners to confidently navigate the credit journey.

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WEST VALLEY NATIONAL BANK Candace Wiest President and CEO West Valley National Bank How do you feel about eating seafood from Maine in August in Arizona or “fresh” produce from Iowa that has been picked green and shipped in a hot truck across all of the “flyover states”? Not great right?

That’s because some things are just better locally. As the CEO of West Valley National Bank, I believe the same principle applies to banking. Does a business owner want someone in Minneapolis — who has only vacationed in Arizona — determining whether or not his or her business will be approved for the capital it needs? Wouldn’t it feel better dealing with a local banker who understands the local economy, has access to local resources to determine the value of the business and is committed to making a difference in the business owner’s own community?

During the (not so) Great Recession, local businesses learned that in a downturn it is very easy for out-of-state banks to stop lending into a volatile region. But when you are a community bank founded by some of Arizona’s most outstanding families, that’s when you lean in.

At West Valley National Bank, we are pretty clear about why we are in business. We exist to provide capital to local businesses and professionals in Arizona. We have clients who tell us we are pretty good at it because we can compete with even the largest banks in terms of pricing and turnaround time. And we will treat our clients the way a neighbor should be treated because we hold ourselves accountable to the highest ethical standards. WVNB offers SBA loans, loans for owner-occupied and investor commercial real estate, working capital and equipment loans, and everything business owners need to help grow their business or practice. We have offices in Goodyear, Scottsdale and Gila Bend.

But clients needn’t worry about driving to us; all it takes is a phone call, and we will come to them. wvnb.net

INBUSINESSMAG.COM

NMLS #566129

NOV. 2016

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LOUDER THAN WORDS

Combat Social Media Mud-Slinging Tips for crafting and controlling messaging when crisis ensues and social media spreads the news like wildfire

by Kindra Hall

Kindra Hall is a storytelling advisor to top entrepreneurs and brands, helping them to capture attention in a crowded marketplace.

She is a storytelling keynote speaker and travels internationally, delivering her storytelling workshop for audiences ranging from sales teams and marketing groups to leadership forums. kindrahall.com

NOV. 20 1 6

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Winston Churchill said, “A lie gets halfway around the world before the truth has a chance to get its pants on.”

An Internet search for “Charlotte police shooting” will pull up more than 20,000 news articles and videos littered with speculations and quotes from witnesses, family members and police. Did Keith Lamont Scott have a gun, or was it just a book?

The viral nature of the story quickly escalated and soon there were riots in the streets.

It’s not just police departments caught in this crossfire. In today’s connected world, a story — any story — can take off and leave an organization, brand, business or individual caught flat-footed. Although it might not lead to riots in the streets, if businesses don’t have their story straight when a crisis happens, someone else will tell the story for them — and, more likely than not, that version won’t be something they like.

Companies should consider the following guidelines:

negative messaging firestorm. Remember when Lululemon’s founder started talking all kinds of crazy in 2013? In today’s connected environment, those comments could have been the death of the brand. However, Lululemon is a brand built on stories — consumer stories, aspirational stories, hopeful stories. So, although the comments put the brand under a microscope, years of good storytelling work paid off and Lululemon is stronger than ever.

All businesses should find their core story now in order to be prepared for the worst. If these stories seem nonexistent or hard to find, a great start is to dig deep to find any possible experiences that consumers will understand and relate to. Any trials or failures that led to success are great story starters.

The most important part of the relationship with consumers is trust, and trust is developed much easier when both parties can share in a common experience, a common story.

KNOWING THE CORE STORY

DEVELOPING STORY COLLATERAL

Every organization needs to have a clear sense of “who we are” to be able to tell the story that explains where it came from and why it exists. It should determine what its brand promise is, why it is here, what good it does in the world, and how it helps people. A brand story needs to be not only about how the company or product came to be, but why it came to be, and, finally, how it keeps its team and consumers committed to its cause on a daily basis.

Perhaps most importantly, these stories must be real and authentic; this is an opportunity to express the human side of business. After all, businesses are people serving people.

Brands with a humanized persona — brands that feel more like a friend than a company — have a better chance of surviving a

Misinformation on social media is so prevalent that The World Economic Forum considers it to be one of the main threats to human society. http://bit.ly/digital-wildfires

A set of story collateral should effectively communicate a brand promise; videos of executives and why they come to work every day, for example. The old phrase “actions speak louder than words” is no exception here — examples of the brand story in action must be shared with abandon. These stories should be told across all platforms and modes of communication; blogs, videos and even images with a 100-word story to go with them allow adaptation to any circumstance in real time with compelling narratives to keep pace.

Consistency is key — especially in the story being told and in the regularity with which it is told. Social media can be a messaging dream come true but it can also be a business’s worst nightmare — a place where rumors and false information

BETTERING YOUR BUSINESS spread quickly if stories aren’t crafted consistently and words aren’t chosen carefully. However, if a breadth of consistent stories is already available and there is an established routine of sharing them, the details will be retained on every post, keeping the message uniform and reliable.

BUILDING A STORY SUITE

No company was built from a single story. Every person on the team and each client served has his or her own unique encounters of the role the business has played in his or her life. Each one of these stories can be integrated to define the brand and help mitigate an onslaught of negative press, but only if they’re on hand. Taking the time to find these stories is important, as well as beginning to cultivate and share them now, via social media in particular, so that they’re accessible in times of need.

Aside from broadcasting story across social media, employees and team members should be as familiar with these stories as they are with the back of their hands. They should be well versed on telling both the company’s story and the story of their place within the company so that they can communicate them with ease and confidence both when necessary and when not — brand storytelling shouldn’t be reserved only for times of crisis.

FILL THE SILENCE GAP — WITH TRUTH

Fact: Bad things happen to good companies. Think Chipotle and the E. coli outbreak. Unfortunately, waiting to clarify every last detail before going public with the information at hand will allow others to intervene and tell their side of the story before anyone in the business has the chance to. Just like a game of telephone, the more the story is told and the further it gets from the source, the less likely it is that the true details will be retained. If “a lie gets halfway around the world before the truth has a chance to get its pants on,” it’s imperative that action must happen fast. Businesses need to be fully equipped with a multitude of stories that can be used to fill the void while internal teams work to choose the appropriate next steps. These stories must be set in motion to reassure consumers that the brand promise still rings true even in this time of crisis. In the meantime, legal counsel should be providing guidelines as quickly as possible to have new stories on hand to adapt to the current circumstance. When a business is in the wrong, it’s important to say so; people love to forgive but hate a cover-up. If in the wrong, extreme transparency should be exhibited, and the story told should tell a tale of the lesson learned from the situation.

On the bright side, if a crisis is handled well, it can be turned into a story that will strengthen the brand. Depending on the severity of the situation and how it is handled, a media disaster can be turned into a story of a company that overcame hardships and came out the other side stronger and better than ever. Good storytelling can survive the chain of communication and message distortion; if the story of a business overcoming a negative circumstance is well written and relatable, people will be talking about it.

The rumor mill thrives on the time it takes a business to act when disaster strikes, and if the business is unprepared for it, the long-term damage can be irreparable. Taking steps to stock up an arsenal of stories that back the brand promise and sharing those stories is an important part of making sure the company’s intentions won’t become misconstrued.

Training the troops to accurately share the story is essential to the outcome of any crisis. If the team is prepared and the story well crafted, the truth will be crossing the finish line before any lies have a chance to define the brand.

Forbes states that how you respond in the first 15 minutes of a crisis is what will make or break your organization and reputation. bit.ly/forbes-15min-respond

Becoming Hewlett Packard Bill Hewlett and Dave Packard invented the model of the Silicon Valley startup and set in motion a process of corporate becoming that made it possible for HP to transform itself six times over the 77 years since its founding in the face of sweeping technological changes that felled most of its competitors over the years. Today, HP is in the throes of a seventh transformation to secure its continued survival by splitting into two independent companies: HP Inc. and Hewlett Packard Enterprise. Based on extensive primary research conducted over more than 15 years, this book documents the differential contribution of HP’s successive CEOs in sustaining the company’s integral process of becoming.

Title: Becoming Hewlett Packard: Why Strategic Leadership Matters (1st Edition) Authors: Robert A. Burgelman, Webb McKinney and Philip E. Meza

Pages: 408

Publisher: Oxford University Press

$39.95

Available: 12/1/16

Brand Desire If companies can create true desirability for their brands, customers will not only express preference and loyalty, they also show a willingness to act as brand champions, participate in online communities, co-create innovative ideas, and show the sort of commitment that is normally associated with fervent employees. Brands need to nurture it by offering both security and surprise. This isn’t just about marketing, but rather a reflection of an organization-wide culture and perspective. Using international case studies, Brand Desire explains how companies can engage customers emotionally and create value for them. Managers can successfully build and maintain brand desire through specific strategies and tools, two of which are promoting a principles-driven organization that is grounded in its heritage and distinctive competences and creating a supportive culture that encourages the active participation of people in brand development.

Title: Becoming Hewlett Packard: Why Strategic Leadership Matters (1st Edition) Authors: Nicholas Ind and Oriol Iglesias Publisher: Bloomsbury Business

Pages: 200 Available: 12/1/6

$42

Tools of Titans Nearly two hundred world-class performers have been interviewed for the podcast, The Tim Ferriss Show, over the past two years. Guests range from super celebs (Jamie Foxx, Arnold Schwarzenegger, etc.) and athletes (icons of powerlifting, gymnastics, surfing, etc.) to legendary Special Operations commanders and black-market biochemists. For most of the guests, it’s the first time they’ve agreed to a two- to three-hour interview, and the show is on the cusp of passing 100 million downloads. This book contains the distilled tools, tactics and “inside baseball” readers won’t find anywhere else. It also includes new tips from past guests, and life lessons from new “guests.” What makes the show different is a relentless focus on actionable details.

Title: Tools of Titans: The Tactics, Routines, and Habits of Billionaires, Icons, and World-Class Performers Author: Timothy Ferriss Publisher: Houghton Mifflin Harcourt

Pages: 704 Available: 12/6/16

$28

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INVESTING IN COMMUNITY

Dec

UP NEXT MONTH: Gratitude Is More than ‘Thank You’

DONOR STEWARDSHIP BEST PRACTICES • Be sincere. Know what the donor has given before making the thank-you call or sending the letter. Let her know how her contribution is impacting the program/ project she helped fund.

• Personalize. Even when sending a form letter, a quick, handwritten note jotted at the bottom can go a long way in making donors feel special and appreciated.

• Remember: Every gift is important. Small gifts now can lead to big gifts later. Even those who attend an event or buy a raffle ticket should be acknowledged.

• Be creative with communications and donor interaction.

Share videos illustrating the impact of the nonprofit’s outreach, as well as vlogs from passionate staff or board members. Consider an “Ask Me Anything” event on social media. Host monthly coffee chats or organize exclusive events for special donor groups.

Jan Halpin and Julie Iacobelli are principals 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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Donor Stewardship Done Right Thanking donors goes well beyond the form letter

by Jan Halpin and Julie Iacobelli

Stewardship: (noun) stew·ard·ship \ˈstü-ərd-ˌship\ — the activity or job of protecting and being responsible for something.

What exactly does stewardship mean to a nonprofit and its donors — and to the corporate executives sitting on the nonprofit boards they serve?

Aside from assuming custody of gifts, managing them and applying those resources responsibly toward the institution’s mission, nonprofits that steward gifts also steward the givers of those gifts.

For Valley organizations STARS and Child Crisis Arizona, donor relationships are at the forefront of stewardship. “We want to be in a relationship with our supporters,” says Anne Gray, director of advancement for STARS. The organization works to improve the lives of individuals with developmental and cognitive disabilities through skills training and employment. “We say, ‘Come have coffee with us,’ ‘Come make a smoothie with participants,’ ‘Come see and experience the good things your donation is doing in the community.’”

She stresses that the volunteer gifts of time and talent are appreciated equally. “Our philosophy is that we’re not a nonprofit with our hands out just saying, ‘We need this.’ We want to say, ‘This is who we are; this is the work we do. Come join on any level, and we’ll steward and appreciate you.’”

Torrie Taj, CEO of Child Crisis Arizona, employs a similar approach. “We offer an opportunity for donors to learn more about our work and see it first hand by inviting them to tour our facility.” Imparting information about the nonprofit’s progress and advocacy in child welfare issues is just as important. “We use several channels to inform donors: printed and electronic mail pieces, social media, and maintenance of a current website.”

START WITH A PLAN

Both nonprofits also practice the critical act of thanking and acknowledging donors for their support as they simultaneously develop deep and continuous relationships.

But it all starts with a strategic donor communications/ stewardship plan that includes insight about: Managing the stewardship process — The development staff generally orchestrates the stewardship plan, working alongside board members. They determine the timing of thank-you letters and other publications, suggest invitations for donors to attend special events, and maintain a stewardship grid that tracks the ways different levels of donors will be “touched” throughout the year (hint: every touch point should not be an ask). The development staff often assigns personal thank-you phone calls and handwritten notes to be completed by board members. Or perhaps each board meeting begins with trustees making personal thank-you calls.

Thanking donors — Thought should be given to different methods of thanks for donors of varying levels. Who receives a

personal phone call from the president, a note from the board chair, or lunch with the board member who has shepherded the relationship? Who gets the standard form letter or the thank-you packet with decals and a calendar? Who is invited to the CEO’s backyard barbecue? Who is honored with naming and signage opportunities?

Providing receipts — Quick response and receipt is crucial and should occur within 24 hours — or, at the very latest, 48 hours. No excuses.

Communicating with donors — How will the organization report back to donors regarding the impact of their investment throughout the year? The annual report?

Exclusive communiques that keep top donors in the know?

Personalized reports? Through direct interaction with board members? Will donors be invited to attend special recognition events? In what ways will the institution work to engage the donor with its mission?

Once the plan is implemented, how does the nonprofit measure the impact of its stewardship activities on fundraising success?

“Much of this can be defined by donor retention rates,” says Taj, “but that is the simple baseline measurement tool. At Child Crisis Arizona, we are very cognizant that donor stewardship is an ongoing process. We must always be connecting the donor back to our mission to offer opportunities to be involved so they feel a deep connection to us.”

Indeed, the power of positive interaction with donors cannot be overlooked — especially given that the impact of those strategic but heartfelt thank-yous and gestures may not be realized immediately. While it may take years to cultivate a substantial gift, moving donors through the relationship management cycle only heightens the potential for increased fundraising opportunities.

Behavioral research conducted by Dr. Monica Bartlett of Gonzaga University and Dr. Lisa Williams of the University of South Wales indicates that donors who are thanked may be more willing to give in the future.

NOVEMBER 2016

Arizona Technology Council

13th Governor’s Celebration of Innovation Awards Thurs., Nov. 10 | 4:00p – 8:00p To recognize the visionaries whose passion and dedication are catalysts for the state’s rapidly growing technology community, the Arizona Technology Council in conjunction with the Arizona Commerce Authority will honor them at the 2016 Governor’s Celebration of Innovation Awards presented

by Avnet on Nov. 10.

Innovators and leaders will receive their awards at the 13th annual GCOI in the West Building of the Phoenix Convention Center, 100 N. Third St. The evening event will include a dinner and awards ceremony followed by live music and dessert. A technology showcase featuring finalists, event sponsors and partners will be open before and after the ceremony.

One of the highlights will be the presentation of the OneNeck IT Solutions Lifetime Achievement Award to Rick Smith, CEO and co-founder of TASER. “Under Rick Smith’s leadership, TASER created a line of products that has saved more than 170,000 lives from death or serious injury,” Council President and CEO Steven G. Zylstra says.

In addition, the following awards will be handed out to these individuals and companies: William F. McWhortor Community Service Leader of the Year to Tomas Gorny, CEO of Scottsdale-based Nextiva; Ed Denison Business Leader of the Year to Brian Mueller, president and CEO of Phoenixbased Grand Canyon University; Pioneering Award to Intel, in Chandler; and Judges Award to Phoenix-based WebPT. To be announced at GCOI will be a company or organization in each of the following categories: Innovator of the Year – Start-Up Company, Innovator of the Year – Small Company, Innovator of the Year – Large Company, and Innovator of the Year – Academia.

Others to be honored that evening will the legislative Tech Champions and Representative and Senator of the Year. In addition, the Teacher of the Year and Future Innovators of the Year from Arizona high schools will be recognized.

— Don Rodriguez Members: $125; non-members: $175 Phoenix Convention Center – West Building

In Business Magazine

6th Annual Guest Editor Economic Symposium Thurs., Nov. 17 | 11:00a – 2:00p Join In Business Magazine as it celebrates its Annual Guest Editor Economic Symposium. The event features an impressive panel of former guest editors from more than 70 issues of the publication who are invited to talk about the local economy, workforce and education, and share their insight into the future with the local businesspeople attending.

Join Mayor Greg Stanton of the City of Phoenix, Kimber Lanning of Local First Arizona, Chris Camacho of Greater Phoenix Economic Council, Deborah Bateman of National Bank of Arizona and many more guest editors for this important symposium.

Our guest editors are members of the most exclusive group of top businesspeople, public figures and leaders in the Valley. Each issue, In Business Magazine invites one of the best to guest edit and lead that particular issue.

The luncheon takes place at new The Camby Hotel, and it is preceded and followed by the Be In Business Expo, where many local companies and organizations share information about their services and present their management team to the attendees to mingle and get to know more about one another.

The conversation on stage will be moderated by KAET PBS Channel 8 “Arizona Horizon” host Ted Simons. His business knowledge and interviewing style bring out some incredible conversation and information that can be heard only at this event.

The Expo and registration begin at 11 a.m., and the event will run to 2 p.m. A gourmet lunch will be served during the symposium for guests. Tables are available for sponsorship by local Valley companies. In celebration of the successes of In Business Magazine, many local companies are attending and inviting their top clients and staff.

—Mike Hunter

Thurs., Dec. 1

1

Designed for the Millennial Entrepreneur, these events are patterned after “TED talks” and are called “GEM Talks” — Gilbert, Entrepreneurial, Motivational. gilbertaz.com 2nd Annual Patriots Ball Dec.

Sat., Dec. 3

3

The Patriots Ball brings together veteran- and patriotowned businesses, veterans support groups, and business and civic leaders to Celebrate Our Veterans. Event includes award presentations. southwestveteranschamber.com 2nd Annual Biz Women on the Green Dec.

9

Fri., Dec. 9

inbusinessmag.com/2016-agees

azhcc.com

The Camby, Autograph Collection Hotel

S M T W T F S

Dec.

2401 E. Camelback Rd., Phoenix

Individuals: $65; sponsored table of 10: $1,000

NOVEMBER 2016

Collaborative Communities – A GEM Talk

Game fundamentals taught by Professional Golf Association Golf Pros, plus dinner; event helps raise funds to benefit AZHCC Foundation for college scholarships.

100 N. 3rd St., Phoenix aztechcouncil.org/event/gcoi2016

SAVE THE DATE

Upcoming and notable

1 2 3 4 5

6 7 8 9 10 11 12 13 14 15 16 17 18 19 NOVEMBER 2016 NOTABLE DATES 20 21 22 23 24 25 26 Sun., Nov. 6 – Daylight Saving Time Ends

Fri., Nov. 11 – Veterans’ Day

27 28 29 30

Thu., Nov. 24 – Thanksgiving Day

Tue., Nov. 8 – Election Day

29 20NOV.1 6 INBUSINESSMAG.COM

NOVEMBER 2016 Sat., Nov. 5

10:00a – 11:00p

12th Annual Certified Local Fall Festival Local First Arizona This is a free, family-friendly event for all ages and an annual celebration of all things local to Arizona. The festival highlights everything Arizona has to offer, from one-of-a-kind local shops, boutiques and restaurants to Arizona-made wine, beer and spirits.

Free Hance Park

1134 N. Central Ave., Phoenix

localfirstaz.com Sat., Nov. 5 Thurs., Nov. 3

6:00p – 9:00p

21st Annual Gilbert Community Excellence Awards Gilbert Chamber of Commerce 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.

Mon. – Tue, Nov. 7 – 8

5:30p – 11:00p

Giddy Up Gala

Clone of Clone of Boots to Business REBOOT

Apache Junction Chamber of Commerce

Arizona Small Business Administration This entrepreneurial education program provides assistance to veterans exploring self-employment opportunities by leading them through the key steps for evaluating business concepts and the foundational knowledge required for developing a business plan. Participants are also introduced to SBA resources available to help access startup capital and additional technical assistance. All honorably discharged veterans and their spouses are eligible for the program.

Cowboy dance, live band Roadhouse Ranglers, and BBQ dinner. All proceeds benefit the Community Alliance Against Family Abuse. $25

$50

Dolce Vita

The Falls Event Center

3301 S. Goldfield Rd., Apache Junction

4635 E. Baseline Rd., Gilbert

ajchamber.com

Free Arizona SBA District Office

4

Tues., Nov. 4

5 Fri., Nov. 4

8:00a – Noon

Wine & Cigars Under the Stars 2016

Alliance of Arizona Nonprofits

Peoria Chamber of Commerce

Nonprofit Board Training for Arizona Business Professionals is designed specifically for business professionals and community members interested in serving on a nonprofit board. This half-day, in-person workshop will explain the roles, responsibilities and expectations involved.

Offering cigar rolling, wine tasting, excellent music and hors d’oeuvres, this event raises funds for two post-secondary scholarships for deserving JROTC students from Peoria high schools. Up to $2,000 of the funds raised from the event will be matched by Credit Union West. The scholarships will be presented during the Chamber’s Anniversary Awards Banquet in June.

Fennemore Craig

The Arizona UAS Summit & Expo Phoenix Global Chamber

$60; after 10/29: add $10

$795

Renaissance Phoenix Glendale Hotel & Spa

We-Ko-Pa Resort & Conference Center

9495 W. Coyotes Blvd., Glendale

10438 N. Fort McDowell Rd., Scottsdale

glendaleazchamber.org

arizonauassummit.com

Palmbrook Country Club

9350 W. Greenway Rd., Sun City

peoriachamber.com 6:00p – 9:30p

23rd Annual Auction Glendale Chamber of Commerce

INBUSINESSMAG.COM

8:00a – 7:00p

This event is a great night of networking and an opportunity to bid on some fabulous items just in time for the holidays.

2394 E. Camelback Rd., Phoenix

Fri., Nov. 4

30

Mon. – Wed., Nov. 7 – 9

Produced by UAS Magazine and the Arizona Regional Economic Development Foundation, this unprecedented event will provide insight into the regional commercial markets in need of UAS, current or future research and testing activities and ongoing government-led UAV operations and achievements. From the smallest of the small UAVs to the biggest of the big UAVs, the Arizona UAS Summit & Expo will unite industry, end-users and interested parties looking to understand the complexities and immense opportunities present in the UAS space.

$55 for one ticket or $100 two tickets

arizonanonprofits.org

NOV. 20 1 6

7

6:00p – 9:00p

Business On Board

$49 for members of the Alliance of Arizona Nonprofits, Local First Arizona, Arizona Small Business Association and BBB of Arizona; non-members: $69

2828 N. Central Ave., Phoenix

sba.gov

gilbertaz.com 4

8:30a – 4:30p

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

Tues., Nov. 8

11:00a – 1:00p

Ambassador Barbara Barrett Greater Phoenix Chamber of Commerce – Professional Women’s Alliance This is a special opportunity to hear from former U.S. Ambassador to Finland Barbara Barrett. Ambassador Barrett will share her unique journey and how it has led her to her current position as chairman of the board of the Aerospace Corporation. As a long-time Arizona resident, she will also share stories of women who have paved the way for future generations with their vision and exceptional leadership.

Members: $30; non-members: $50 Phoenix Country Club Thurs., Nov. 10

2901 N. 7th St., Phoenix

phoenixchamber.com Fri., Nov. 18

7:00a – 10:00a

Veterans Business Summit

Scottsdale Area Chamber of Commerce

Southwest Veterans Chamber of Commerce A morning of information, education and networking for U.S. veteran business owners and transitioning service members.

Thurs., Nov. 10

As the chamber’s marquee event, the Sterling Awards embody the spirit of the organization by celebrating the people and companies that make the community a great place to live, work and play. The prestigious Sterling Award is one of the most coveted business awards in the Valley, with a rigorous application, judging and selection process. Only members of the Scottsdale Area Chamber of Commerce are eligible to apply for the Sterling Award.

5:30p – 8:30p

12th Annual Palo Verde Award Dinner Ahwatukee Foothills Chamber of Commerce – Women in Business

Free

The Palo Verde Award is presented to the Women of the Year who exemplify outstanding leadership. They will have provided sound management, and demonstrated a commitment to the Ahwatukee community.

SkySong Innovation Center 1365 N. Scottsdale Rd., Scottsdale Skysong 3 • 130 - Synergy I

Members: $95; non-members: $115

$90

southwestveteranschamber.com

Embassy Suites Scottsdale

Four Points by Sheraton

10831 S. 51st St., Phoenix

5001 N. Scottsdale Rd., Scottsdale

ahwatukeechamber.com 8

scottsdalechamber.com

10 Thurs., Nov. 10

11:30a – 1:30p

31st Annual Sterling Awards

15

17 Thurs., Nov. 17

11:30a – 1:30p

18 5:30p – 7:30p

“Focus on the Long-Term to Optimize the Short-Term”

The 2016 National Conversation on Board Diversity – Phoenix

Economic Club of Phoenix

2020 Women on Boards

Tony Sarsam, CEO of Ready Pac Foods, Inc., will discuss the financial turnaround of his company from declining earnings to substantial growth and profitability, and what actions were taken to become successful. Sarsam will discuss the fundamentals of business, including workforce stability and engagement, as well as operational efficiencies. His successful holistic approach, which involved all 3,000+ associates, drove top-line and bottom-line growth and was centered on establishing a sense of purpose for the entire organization. $85 Hilton Scottsdale Resort & Villas 6333 N. Scottsdale Rd., Scottsdale wpcarey.asu.edu

Thurs., Nov. 10

5:30p – 9:00p

24th Annual Best of the West Awards Dinner WESTMARC This annual awards competition began in 1993 as a way to recognize outstanding contributions to the image, lifestyle and economic development of the West Valley.

“Creating Change Through Collective and Individual Action: How Can We Harness Investor Influence, Legislation, Publicity and Other Means to Accelerate Progress for Women on Boards?” The research is clear: Diverse boards have stronger bottom lines.

Evening includes networking, hors d’oeuvres and insightful conversation. $50

Members: $200; non-members: $275

First Western Trust

University of Phoenix Stadium

7025 N. Scottsdale Rd., Scottsdale

1 Cardinals Dr., Glendale

westmarc.org Tues., Nov. 15

2020wob.com 7:30a – 10:30a

5th Annual Business Diversity Summit Arizona Hispanic Chamber of Commerce Hosted by the Phoenix MBDA Business Center and the Arizona Hispanic Chamber of Commerce, this event spotlights the growing contributions of minority-owned businesses in Arizona. Major components include the 5th Annual inductions into the Arizona Million Dollar Circle of Excellence, recognizing companies that do at least $1 million of business with minority-owned suppliers. $75

Arizona Biltmore

2400 E. Missouri Ave., Phoenix

azhcc.com

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

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NOV. 20 1 6

INBUSINESSMAG.COM

WE VALUE WHAT WE OWN

BY MIKE HUNTER

2017 Lexus RC F

City: 19 mpg Hwy: 26 mpg 8-speed automatic transmission 0-60: 4.4 sec

Nearly identical to the digital gauges in the world-renowned LFA supercar, the instrument cluster in the RC F SPORT features a Thin Film Transistor display that moves in concert with a sliding metallic-trimmed bezel, expanding and retracting digital screens when information is accessed.

Lexus lexus.com

Getting Honored

HJ Trophies & Awards

Sun Devil Trophy

Thunderbird Trophies

Businesses of all kinds look to recognize

HJ Trophies & Awards has

Since 1986, Sun Devil Trophy has

Thunderbird Trophies is a

been providing quality

been serving Tempe, Scottsdale

family-owned, one-stop

awards products since

and the Metro Phoenix area with

shop located in downtown

1989. It offers more than

quality trophies, plaques, medals

Phoenix. Its specialty is

100 years of combined

and awards. With more than 25

one-of-a-kind trophies and

experience in providing

years in the award and trophy

awards for every occasion.

trophies; plaques; acrylic

industry, it has satisfied the

Thunderbird has been

awards; and glass, crystal

needs of nonprofits, companies

in Phoenix since 1962,

and promotional products.

and municipalities with employee

making awards and doing

Custom engraving and

recognition, milestone awards,

custom engraving, now also

custom awards available.

retirement awards and other

doing large-format printing

3414 E. Thomas Rd.,

personalized gifts year after year.

and screen printing.

Phoenix

2006 E. 5th St., Tempe

1414 N. 7th St., Phoenix

(602) 955-0812

(480) 990-8575

(602) 253-2098

hjtrophy.com

sundeviltrophy.com

thunderbirdtrophies.com

staff, clients, milestones and more. In “honor” of the accolades, many turn to trophy companies to make everything from a crystal award to framed memorabilia to custom-designed pieces.

Here is our pick of the Valley’s best.

NOV. 20 1 6

32

INBUSINESSMAG.COM

maximize performance, comfort and handling. This F model offers 19-inch, split-seven-spoke, forged alloy wheels with front 255/35R19 and rear 275/35R19 summer tires.

The design is a true selling point as well, with sleek curves and a bold and powerful-looking fascia grill, strong overall stance and lowered suspension. This RC F looks like it hugs the ground as it drives and sits parked. The Next-Generation Remote Touchpad is equal parts functionality and form, and is an intuitive way to help stay in command. The interior is a technology command center with race track-inspired speedometer displays, LCD multi-information display, and navigation and audio systems that impress. The ambient lighting and enhanced bolstered sports seats are engineered to hold passengers in.

The exclusive stitching and available red or yellow leather accents add great racing appeal to a design that asserts true ergonomics for maximum performance for the driver.

This is a performance coupe like none other in its price range, and is impressing the racing community as well.

The similarities and inspirations were meant to entice that community, but the authenticity in design and performance are wowing them.

With the Lexus Enform Remote mobile app, owners can remotely start the engine, lock and unlock doors, check the status of doors and windows as well as the fuel level, and get help finding their vehicle’s location in a parking lot. And, should they loan their Lexus to another driver, they can receive alerts if, for example, a preset speed or mile limit is exceeded.

Photos courtesy of Lexus (top)

2017 RC F MSRP: 64,165

A true performance coupe, the all-new 2017 Lexus RC F is a sight to behold and an experience to be had. The sleek, low-stance design and sporty good looks are why this machine is getting so much attention and accolade by critics. It is a true monster on the road.

The car boasts a 5.0-liter V8 engine designed to add performance and speed with the dual Variable Valve Timing with intelligence (VV-i) — giving greater torque at lower speeds and horsepower at higher speeds. The 467 horsepower delivered by the engine is as impressive as it is exhilarating. The jolt and deep rumble of the exhaust makes this a sports car lover’s dream. The transmission is so advanced, it varies its shifting based on G-force with the available Sport S/Sport S+ driving modes. Throttle, steering and suspension are all modified within each driving mode to

BY MIKE HUNTER

MEALS THAT MATTER

SumoMaya Fuses Latin and Far East Flavors egg, peanuts, scallions, pickled jalapeño, bean sprouts and tamarind

ROLLO CHINGON adobo grilled shrimp, guacamole, cilantro, jalapeño, red lotus root chips and balsamic strawberry glaze

A classic at this point by German Osio, creator of Central Bistro and Local Bistro among others, is SumoMaya MexicanAsian Kitchen located at Scottsdale and Lincoln roads. This spectacular hot spot is nestled in a contemporary sanctuary where Asian concepts and Latin flare come together to tempt even the most discriminating palate.

The lunch menu is an array of dishes that seem to span the world, from guacamoles and ceviches to sushi and wokinspired favorites. The Crab & Shrimp Tortilla Pho is amazing and is made with rice noodles, bijol, Thai basil, crispy wakame, bean sprouts, cilantro, rajas, crispy tortillas and lime.

From the wok is the Vietnamese-style “Shaking Beef,” made with filet mignon, upland cress, dark soy, scallions, mirin and serrano chili-lime sauce. The Rock Shrimp Tempura is still a favorite and is “Golden & Crispy” (a section of the menu), made with spicy mayo, snow peas and summer peas in a black truffle vinaigrette that is reminiscent of an ancient Asian

kitchen dish with its fresh flavors and crispy crunch. Trying the Sesame Ginger Chicken Taco will hook any foodie to come back for more. This taco is made with fresh seasoned chicken, guacamole, aji Amarillo and chili coleslaw. Light, fresh and bold flavors are making this a taco-lovers paradise, with several other taco combinations that truly demonstrate the success of infusing Asian and Latin flavors.

The décor is something to see. The bright, Mexican-inspired colors come together with Asian open and calming attitude, making this a unique and pleasant spot to eat and relax in; it is the culmination of imagination by local star designer Jeff Low. Open atmosphere, grass-lined walls and a patio that creates almost a Zen garden appeal bring contemporary Asian/Latin American hip to this dining destination.

SumoMaya Mexican-Asian Kitchen 6560 N. Scottsdale Rd., Scottsdale (480) 397-9520 • sumomaya.com

As Seen on TV Do lunch where the experts say it’s the best. Below are our picks for a top lunch as seen on TV’s “Diners, Drive-Ins and Dives.” Unique dishes, the best taste and some darn good cooking is why these three hot spots were chosen to appear. We quote what the website says Guy Fieri discovered.

NOV. 20 1 6

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INBUSINESSMAG.COM

DeFalco’s Italian Eatery

DeFalco’s Italian Eatery, Grocery & Deli

La Piazza Al Forno

St. Francis

“A father-son operation, the duo churns

“Chef Aaron Chamberlin likes to cook

“At DeFalco’s in Scottsdale, Ariz., the Italian

out delicious pizzas and Italian favorites.

everything over an open fire just like

sausage is made with a nearly century-old

Guy couldn’t keep his hands off of the

when he was a Boy Scout. Guy adored the

family recipe that has brought in locals for

Italian Stallion, a pizza loaded with

smoky and creamy Pig Dip filled with pork,

decades. The Centurion calzone truly is a

sopressata, Parma prosciutto, Italian

prosciutto and fennel onion marmalade.

meal fit for a warrior, with two layers of

sausage, and pepperoni. Still hungry? Try

The rustic Iron Skillet Pancake with berry

mozzarella and sliced sopressatta — Guy

the baked spaghetti pie topped with fresh

compote and the Moroccan meatballs also

said it rivals most NYC delis.”

mozzarella.”

impressed.”

2334 N. Scottsdale Rd., Scottsdale

5803 W Glendale Ave., Glendale

111 E. Camelback Rd., Phoenix

(480) 990-8660

(623) 847-3301

(602) 200-8111

defalcosdeli.com

lapiazzaalforno.com

stfrancisaz.com

Guy Fieri visits a lot of our state’s eateries, with many stops right here in Greater Phoenix. dinersdriveinsdiveslocations.com/arizona-locations.html

Photos courtesy of SumoMaya Mexican-Asian Kitchen (top), DeFalco’s Italian Eatery, Grocery & Deli (bottom, l to r)

PORK “AL PASTOR” PAD THAI

TEMPE CHAMBER

ADVANTAGE Fall 2O16 • tempechamber.org

Mayor Mitchell Discusses Tempe’s Future at State of the City Address Mayor Mark Mitchell will deliver an update on the social and economic climate of Tempe along with his vision for its growth and future at the State of the City Address on December 1. The breakfast offers a unique opportunity to engage with community, business and political leaders of the Valley.

“The annual State of the City is an opportunity for us to let residents and business leaders know what the city is doing to maintain our quality of life and build Tempe into the strong regional partner that we know a prosperous future requires,” said Mitchell. “This is an excellent opportunity for us to evaluate where we’ve been and get the community involved in where we’re going.”

It takes place from 7:30 to 9:00 a.m. at the Doubletree by Hilton, 2100 S. Priest Drive in Tempe. It is produced by the Tempe Chamber of Commerce in conjunction with the City of Tempe. RSVPs are required at www.tempechamber.org or to (480) 967-7891.

Te m p e C h a m b e r. o r g

T E M P E C H A M B E R A D VA N TA G E

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Do You Support Sustainable Business Practices?

Take the Tempe Pledge for a Sustainable Community Visit http://tempe.pledge.green The Pledge was developed to help businesses learn how to reduce waste, energy and water usage and to develop sustainable purchasing programs. With the launch of this program, the goal of the Tempe Chamber of Commerce is to help make businesses and the communities in which they operate more resilient and sustainable.

This comprehensive online resource and planning tool helps large and small businesses reduce their footprint. It is also a meaningful way to get additional exposure for your organization through online education, telling your story, and appearing in the Pledge Member directory. Sign up for free at tempe.pledge.green Simply click on the “Take the Pledge” button and select the actions your company

is planning to take to reduce its environmental impact. Pledge members will be added to the online Pledge Directory and will be recognized throughout the year at events, newsletters and social media campaigns.

Explore tips and resources in the “What You Can Do” section for a lot of great ideas. Many are easy to implement and won’t cost you a dime. Others may require some investment, but are designed to save you money in the long run. Never underestimate the value of being able to demonstrate to your clients that you’re a sustainable company.

Early supporters include the City of Tempe, Waste Management, Special Moments, House of Tricks, Printing Specialists, Architekton, Bryan University, Acceler8 and Dynamic Worldwide Training Consultants.

Take the Tempe Pledge for a Sustainable Community Step 1: Why Take the Pledge?

Learn why taking the pledge is smart for your business.

Step 2: What Level are You At? Get an idea of where your organization is at in sustainability.

Step 3: Engage Get a list of tips to help engaging employees towards sustainable actions.

Step 4: TAKE THE PLEDGE Start taking the pledge now and share your goals and progress.

Visit http://tempe.pledge.green

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T E M P E C H A M B E R A D V A N TA G E

Sky Harbor Airport and Its Impact on Tempe On November 17, Assistant Aviation Director Deborah Ostreicher will hold a public conversation about plans for the future of Sky Harbor International Airport. The airport, which borders Tempe, is the largest economic engine in the state.

Her presentation will address travel safety and security updates and answer questions such as: Why are you always building and when will it be over? How can we expect Phoenix air travel to change in coming years? How will further development impact Tempe?

Ostreicher has been with Sky Harbor since 1996 and was appointed assistant aviation director in 2015. In this role, she oversees the Air Service

Development, Government Relations, Community Outreach, Aviation Planning, Environmental, HR and Public Relations departments.

Prior to joining the airport, Deborah spent a decade working in Europe and the Middle East, holding positions that included marketing director for MicroAge Computers Central Europe and marketing manager for Prince Charles’ nonprofit initiatives in the United Kingdom.

The luncheon event takes place from 11:30 a.m. – 1:00 p.m. at the Hampton Inn & Suites, 1415 N. Scottsdale Road. RSVPs are required at tempechamber.org.

Deborah Ostreicher

Anne Gill Named Tempe Chamber of Commerce President & CEO

Anne Gill is the new president and CEO of the Tempe Chamber of Commerce. She took office on Oct. 31. She previously served as the president and CEO of the Ahwatukee Foothills Chamber of Commerce since 2011.

Gill is a skilled nonprofit leader with more than 25 years of business administration experience who excels in corporate development, community outreach, fundraising and special events management.

“This is an exciting time for our organization,” said Brian Wood, chairman of the board of the Tempe Chamber of Commerce. “Anne is an exceptional talent who epitomizes professionalism. She brings energy, inspiration, intelligence and business acumen to the President and CEO position. She is a proven and visionary leader — the perfect person to elevate the Tempe Chamber to the next level.”

Gill serves on the Arizona Chamber Executives Board of Directors as its legislative chair, sits on the South Mountain Community College President’s Community Advisory Council, co-chairs the Tempe Kyrene Business Advisory Council, and is a member of the Western Association of Chamber Executives. She holds a B.A. in International Business from Eckerd College in St. Petersburg, Florida.

Te m p e C h a m b e r. o r g

T E M P E C H A M B E R A D VA N TA G E

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Ribbons Cuttings with the Tempe Chamber are sponsored by ManageStaff

Business is BOOMING!

Each month we celebrate members who have joined the chamber, opened a new business, reached a milestone or expanded. If you are interested in hosting a ribbon cutting for your business, please contact Natalie at 480.736.4281 or nataliecole@tempechamber.org.

EPIC - Employer and Personal Insurance Coverages | 2201 E. Camelback Rd., #123, Phoenix

Next Level Signs | 1610 S. Priest Dr. #110, Tempe

OneAZ Credit Union | 840 E. Southern, #101, Tempe

Sun Studios of Arizona | 1425 W. 14th St., Tempe

Tilt Studio | 5000 S. Arizona Mills Circle #669, Tempe

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T E M P E C H A M B E R A D V A N TA G E

Local Committees Offer Chance to Grow Networks and Skills The Tempe Chamber of Commerce offers the chance to collaborate with other people in the community through one of its many committees. Varied in purpose and scope, each offers unique and valuable opportunities to become involved and grow your network and skill set. They include Business Development, Military Affairs, Government Relations, Transportation, Ambassadors, Women in Business, Business Owners and more.

Through this committee structure, the organization reaffirms and supports its five core competencies: Creating a strong local economy; Promoting the community; Representing the interests of business in government; Providing networking opportunities and taking politica action This month’s featured committee is the Women in Business Council. It meets from 8:00 - 9:00 a.m. on the first Thursday of each month. Its purposes are to foster the growth and success of business people

through ongoing personal and professional development, plan seminars featuring empowering and inspiring speakers, and sustain a dynamic mentor program to develop

high potential leaders. For more information or to attend a meeting as a guest simply email info@tempechamber.org with “Committee Meeting” in the subject line.

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

Campus • Evening • Online

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

Te m p e C h a m b e r. o r g

T E M P E C H A M B E R A D VA N TA G E

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2 Ways to Keep Your Project on Track

by Peter Adams, Owner & CTO, Ping! Development, www.pingdevelopment.com A great many projects are hatched by business owners everywhere, but they don’t all become a reality. Just like not all businesses survive the first five years, not every project is executed in a way it can be successful. I recently gave a presentation to a group of small-business owners about how Web apps are like houses. If you’re scratching your head, then keep reading and I’ll explain.

Application development and building a house have a great many things in common. Building a house requires a blueprint, good building materials, skilled laborers and a brilliant project manager. Sometimes that project manager is the architect, sometimes it’s a general contractor, but everything else is a must for the house to be built right.

Web and mobile application projects are no different.

Execution Is Everything You can have the greatest plan in the world, but if you don’t have the ability (or hire someone with the ability) to execute that plan, you’re finished before you even start. The key person in the equation is the project manager — the person who is coordinating the effort between you, the business owner, and the highly skilled programmers who will work in the trenches to breathe life into your idea. Most often, this person will have a business background; however, the best project managers have knowledge and understanding of the technology behind the idea and can communicate that to non-technical people.

6

T E M P E C H A M B E R A D V A N TA G E

Plan. Evaluate. Repeat.

Obviously, the goal is to create something that helps your business succeed. Doing that requires a plan, a blueprint if you will, and continuously evaluating the plan to ensure it is working and the end result is beneficial. It is possible to overthink this to the point that nothing ever gets done, but bear in mind that creating any Web or mobile app is a complex and ongoing conversation with your project manager and your team. These types of projects aren’t “fire-and-forget” — you can’t expect the project manager to know every facet of the idea after only one or two meetings. There will be questions, and the details obtained by asking those questions will impact how the application ultimately comes together. If the project manager isn’t asking questions or plans to deliver a finished product after meeting with you only a few times, it’s time to consider whether this is the right project manager.

Your ultimate goal is to build out the minimum viable product, or MVP. Once you have that, your team continues to maintain and improve the MVP based on feedback, and it is this process that ultimately generates the many facets of the grand scheme. Sometimes, the MVP is just the prototype and it will take time to get feedback from customers about what changes are necessary (and they will be necessary). Remember to include the ongoing needs of the application into your budget, because lack of maintenance can lead to unpatched security vulnerabilities and unsupported components that can be costly to address.

GiveToPCHF.org

Te m p e C h a m b e r. o r g

T E M P E C H A M B E R A D VA N TA G E

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Board of Directors Chairman of the Board: Brian Wood Chair-Elect: Dawn Hocking Treasurer: Bill Goodman Vice-Chairs: Peter Adams, Paul Mittman, Glenn Williams Immediate Past Chair: Tim Ronan

Tempe Chamber Staff Anne Gill, President and CEO president@tempechamber.org Sean Donovan, Vice President, Media and Program Development sean@tempechamber.org Julie Flanigan, Director of Finance julieflanigan@tempechamber.org Mark Tarabori, Membership Relations Director marktarabori@tempechamber.org Natalie Cole, Director of Operations and Membership Engagement nataliecole@tempechamber.org

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T E M P E C H A M B E R A D V A N TA G E

Directors: Peter Adams, Kjell Andreassen, David Bonkowski, Tracy Bullock, Jihan Cottrell Bill Goodman, Misty Howell, Jenna Rowell, Lynda Santoro, Robert Nyal Sewell, Manny Tarango, Brad Taylor, Glenn Williams Ex-Officios: Andrew Ching, Angela Creedon, Joe Hughes, Stephanie Nowack, Lou Silverman Committee Chairs: Tracy Bullock, Patricia DiRoss, Gwen Gustafson, Cliff Jones, Paul Quinn, Tim Ronan, Lou Silverman, Mike Stinson Tempe Chamber of Commerce P.O. Box 28500 Tempe, AZ 85285 (480) 967-7891 • www.tempechamber.org

Fall 2O16 • aztechcouncil.org

IN THIS ISSUE 2 Head of the Class Leaders look to Arizona students for ways to shape the future

4 Eye On Success

New alliance formed with Arizona Optics Industry Association

5 Council Staff Recognized With Awards, Promotion 6 Two New Members Added to Council’s Board

WHO WE ARE The Arizona Technology Council is Arizona’s premier trade association for science and technology companies.

Phoenix Office 2800 N. Central Ave., Suite 1920 Phoenix, AZ 85004 Phone: 602-343-8324 • Fax: 602-343-8330 info@aztechcouncil.org

Tucson Office

The University of Arizona Science and Technology Park 9040 S. Rita Rd., Ste. 1150 (near I-10 & Rita Rd.) Tucson, AZ 85747 Phone: 520-382-3281 • Fax: 520-382-3299 tucson@aztechcouncil.org

MANAGEMENT AND STAFF Steven G. Zylstra President + CEO

Leigh Goldstein COO + Vice President, Programs + Events

Anne Rody Director, Finance + Administration

Merry Lake Merrell Director, Marketing + Communication

Deborah Zack Senior Director,

Brian Krupski Director of Membership Services

Membership Services

Melissa Craven Executive Assistant to

Alex Rodriguez Vice President, Southern Arizona

Don Rodriguez Editor

President + CEO

Regional Office, Tucson

Ron Schott Executive Emeritus, Phoenix

Don Ruedy Executive Emeritus, Tucson

Justin Williams Executive Emeritus, Tucson

Jeremy Babendure, Executive Director,

Ph.D. Arizona SciTech Festival

Arizona Technology Report

Arizona Technology Council: The Voice of the Technology Industry

President’s Message In my time, I’ve seen a variety technologies evolve from infancy to leaving lasting impacts that have profoundly changed our lives. Color televisions, transistor radios, DVRs, cell phones, computers, software — all moved at some point from “gee whiz” to “how did I even live without it?” And all have played roles in shaping what we have become as a society.

In my role, I regularly get a chance to meet with member companies filled with innovators already working on the technologies that will have a hand in determining not only who we will be in the short term but in the years to come.

One field that immediately comes to mind is the Internet of Things. In case that’s a new term to you, it is the field in which everyday objects use network connectivity to send and receive data. A refrigerator that tells you when it needs a refill is an example. What’s next? That’s already being worked on at Intel in Chandler, where the global giant’s Internet of Things Group is based.

Many of our other members already are playing a part as well. That’s one reason we recently held the inaugural meeting of the Council’s Internet of Things Committee.

They came together to share what they know and to hear what others are doing. We had representatives from companies such as Verizon and Insight, as well as Aspen Technologies, Zed Ventures, MultiWare, Bolste and Impress Labs. And since the Council is about making connections, a few actually came looking for new partners for their projects. You might someday be using something that got its start at a meeting.

Also shaping the future — literally — is the field of additive manufacturing. You might know it as 3D printing. More specifically, this is the process of adding layer upon layer of material to make a product. Whether it’s a replacement part for airplane or a human, additive manufacturing is already proving its usefulness. Member companies such as Honeywell, Phoenix Analysis & Design Technologies and Titan Industries are exploring the potential of this new field.

Self-driving cars are getting closer to reality for us. Google already has been testing vehicles on the streets of Chandler and Ahwatukee, so it likely won’t be long before you leave the driving to your car.

If you think about it, self-driving vehicles really are extensions of robotics. We have a whole generation that grew up competing in robotic competitions such as First Robotics, which has been supported by Microchip.

Robotics, in turn, has been the entry point for artificial intelligence. Where is this headed? Consider the words of futurist Ray Kurzweil, author of the book The Singularity is Near: When Humans Transcend Biology: “Artificial intelligence will reach human levels by around 2029. Follow that out further to, say, 2045, we will have multiplied the intelligence, the human biological machine intelligence of our civilization a billion-fold.”

So if you’ve been impressed at progress so far in just your lifetime, you ain’t seen nothin’ yet.

Steven G. Zylstra,

President and CEO, Arizona Technology Council

Susan Farretta Director of Educational

Initiatives, Arizona Technology Council Foundation

aztechcouncil.org

ARIZONA TECHNOLOGY REPORT

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Jeremy Babendure and Dominique Browning at the KAET-TV studios

Head of the Class

Leaders look to Arizona students for ways to shape the future Capturing the attention of the White House and Gov. Doug Ducey.

That’s not bad for the inaugural year of a special program whose participants aren’t even old enough to vote.

These are just a few highlights of the very much non-partisan Chief Science Officers (CSO) program that, in its first year, counted more than 130 sixth- through twelfth-grade students throughout Arizona chosen by their peers to represent their schools in STEM and innovation. Organizers anticipate more than 500 CSOs will be participating within a few years.

Little did organizers know that the program’s trajectory would get a boost when President Barack Obama made his final State of the Union Address earlier this year and included the goal of every American student having the opportunity to learn computer science. The CSO program later was cited as one of the commitments from more than 200 organizations to support the president’s new program targeting compuer science education.

Fast forward to late October when the Arizona Capitol was to be the scene of the first CSO Statewide Cabinet Meeting. A planned highlight was participants collectively developing an action proposal for Ducey’s consideration.

As Jeremy Babendure, executive director of the Arizona Technology Council Foundation and Arizona SciTech, explained in a recent episode of KAET-TV’s “Horizon” public affairs show, putting students in charge of their destinies seemed like a natural development. “We’re always talking about what do we want to do with kids but often we never see kids in the room,” he says. “We’re brainstorming but never hear from the kids, so why not create an avenue for kids to figure out who is their voice for STEM innovation.”

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ARIZONA TECHNOLOGY REPORT

STEM stands for science, technology, engineering and math. The CSO program was started by Arizona SciTech, which is supported by the foundation.

Babendure was joined on the show by Dominique Browning, a CSO at Casa Verde High School of STEM in Casa Grande, who shared how she gets other students interested in STEM. “I’ll show you the world around you,” she says. “I’ll give you a different way of trying to think of how things work. Just even your cellphone — that is completely engineered and you’re on it all the time, so you can’t have that without STEM.”

Farther Reach Ultimately, what happens is students are not only convincing their peers but also entire communities — even those beyond Arizona. “Having a well-spoken student in settings like this on TV or conferences, at the White House,” Babendure says, “having well-spoken students in the community is not something that we adults think about. It’s helping to change our thinking about kids to be part of that conversation.”

His reference to the White House stems from Chief Technology Officer Megan Smith learning about it firsthand — twice. Browning was one of six students who went to Washington, D.C., in mid-May to promote their program to Arizona’s congressional delegation as well as members of the White House Office of Science and Technology Policy, which is where Smith’s team is stationed. The students were accompanied by Babendure and Foundation CEO Steven G. Zylstra.

Smith then made the trip west to address the CSO Summer Institute at Grand Canyon University in July. Her words went beyond the campus.

Through the cooperation of the Arizona Telemedicine Program that provided the videoconferencing and distance learning technology, Smith’s and other presentations made during the institute were shared with students from surrounding states who were interested in creating their own CSO programs.

As Browning explains, “The Summer Institute is where you learn all of these different skills that you need in order to perform the tasks that you need later in the year.” In addition, Babendure says, “What’s cool about the institute is we garner a lot of support from the SciTech Festival. And we’re getting people to come in and work with the students, networking and PR.” The CSO program is one way to address a growing need for a trained workforce. According to the White House, there are nearly a half-million open technology jobs in the nation today, with that number projected to more than double within the next four years. These jobs pay 50 percent more than the average private-sector job.

However, to get those jobs, the right skills are needed. A recent analysis of 26 million job postings found that nearly half of all the jobs in the top quartile in pay require some coding knowledge or skills. By 2018, just over half of all STEM jobs are projected to be in a computer sciencerelated field. While more than nine in ten parents want computer science taught at their child’s school, by some estimates only a quarter of K-12 schools offer such courses with programming included.

CSforAll The Arizona Technology Council and its partners also are playing a role to help meet the need. All were represented when the White House hosted a summit this summer for Computer Science for All, or CSforAll, the

president’s initiative to empower K-12 students to learn computer science so they gain the skills needed to be creators in the new digital economy.

Zylstra was invited to the meeting as a guest of Linda Coyle, director of education at Science Foundation Arizona, and Kathryn Scott, director of the Strategic Educational Alliances department at Grand Canyon University. Science Foundation Arizona and the university have been recognized by Code.org, a key partner in CSforAll, as Arizona’s Professional Learning Partners.

The Council is familiar with the cause. It gave its support when an initiative allowing computer science as Arizona high schools’ fourth math credit was making its way through the Legislature in 2014. Also, its foundation has funded the expansion of a Mesa-based middle school coding program into Scottsdale and Tempe. Zylstra also will co-chair the advisory board of the upcoming Arizona Science and Engineering Fair, which, like all fairs of this type, expects computer science to become a regular component.

Coyle, Scott and Zylstra were in good company at the gathering in Washington, D.C., where they had the opportunity to meet and talk with many of the people like Smith who have their shoulder behind CSforAll on a national basis. One of the factoids delivered to all to help drive home the importance of their efforts was that computer science is the first new subject being added to the K-12 curriculum in a century.

It actually goes beyond just being a subject, Zylstra says. “Computer science, including learning to code, is a mechanism to solve problems.

The more capable you are, the farther ahead you’ll be in the 21st century,” he says. “In this emerging world of Internet of Things and digitization of everything, it’s going to be important that we all get exposure — and move forward.”

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ARIZONA TECHNOLOGY REPORT

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Eye On Success

New alliance formed with Arizona Optics Industry Association In a move to boost ongoing efforts to grow the science and technology sectors of Arizona’s economy and increase the number of highpaying jobs in the state, the Arizona Technology Council has signed an agreement to launch collaborative efforts with the Arizona Optics Industry Association (AOIA).

The Council has agreed to form an Arizona Optics Industry Committee to advocate for and promote the interests of the industry through staging of optics-focused events while helping to influence its public policy positions at the local, state and federal levels. The committee will use the Council’s established leadership and infrastructure to address critical issues as members move toward developing a roadmap for the optics industry sector in Arizona.

“The Council has proven its ability to be an advocate and collective voice for science and technology companies throughout our state,” says Steven G. Zylstra, president and CEO of the Arizona Technology Council. “By working together with the AOIA, we are well-positioned to refocus the agenda and industry ecosystem to grow the optics-industry hub that has long existed in Arizona.”

The nonprofit AOIA is often referred to as the Arizona Optics Cluster. Its membership includes more than 300 companies and organizations covering a broad range of

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ARIZONA TECHNOLOGY REPORT

products and services statewide that contribute approximately $2.2 billion annually to the state’s economy. One noteworthy segment of the cluster is the astronomy industry, which adds more than $250 million annually to the economy statewide and directly supports 3,300 jobs.

“We are excited to leverage our history of success and leadership with the Council’s statewide reach,” says AOIA President Bob Breault, who also is president and founder of Tucson-based Breault Research Organization.

He is internationally recognized as one of the world’s leading experts in the area of stray light analysis and suppression.

“The Council’s membership base is diverse, which, in the end, will benefit our members,” Breault says. “The agreement we have reached is really the next step in our vision. We want industry leaders connected and working together on a mix of very diverse projects ― all here in Arizona.”

Through its 24-year history, the AOIA has promoted the growth of the optics industry both locally and internationally. It has served as the primary connector between the optics industry and other leading science and technology industries in Arizona: aerospace and defense, bioscience, semiconductor, astronomy and manufacturing. It also has

been actively engaged in a variety of industry issues, including establishing other opticsrelated organizations in cities around the world, protecting Arizona’s dark skies for the astronomy community, promoting science and math education, and supporting more industryfriendly U.S. export regulations.

With such a foundation already in place, the Council sees opportunities to help take the optics community to a higher level. “Our goal is to catalyze, convene and connect the optics industry sector across Arizona, building on AOIA’s long-term success,” says Alex Rodriguez, vice president of the Council’s Southern Arizona office in Tucson. It’s fitting that the office is situated in a region that has earned the name “Optics Valley” as it is home to one of the world’s largest clusters of optics companies.

“We look forward to playing an integral part of the ongoing collaboration between Tucson’s optics companies and The University of Arizona’s College of Optical Sciences,” Rodriguez says. “The college graduates more highly qualified scientists with master’s and doctoral degrees than any other in the nation, and our desire is to keep them right here in Arizona. The Council and the optics companies are in a terrific position to continue to build momentum for this vital Arizona industry.”

Council Staff Recognized With Awards, Promotion Steven G. Zylstra, president and CEO of the Arizona Technology Council, was named the Leader of the Year in Public Policy in the technology category by the Arizona Capitol Times in recognition of his efforts to influence Arizona’s technology industry.

Under Zylstra’s leadership, the Council’s Public Policy Committee is directly involved with the process of evaluating Arizona’s legislative candidates. The Council also publishes an annual Public Policy Guide and biennial Vote TechSmart guide to help members and the technology industry navigate elections and the annual legislative session. In addition, the Council hosts an annual Legislative Day designed to provide members and the community an opportunity to have their voices heard as it relates to public policy in the technology sector. Zylstra also leads Council members on an annual trip to Washington, D.C., to meet Arizona’s congressional delegation to discuss key initiatives and opportunities within the state.

Zylstra also was named to the Phoenix Business Journal’s Most Admired Leaders list that recognizes top executives for demonstrating leadership, values and vision. In a special supplement published by the newspaper, he shared a number of thoughts, including the biggest challenge to moving the Valley forward: “Arizona needs to continue to improve its support of K-12 education. The recent education funding plan passed by voters in May won’t solve our long-term issues. This is just a first step in boosting funding for schools that desperately need more. Arizona still ranks 48th nationally in per-pupil spending.”

Leigh Goldstein has been promoted to chief operations officer and vice president of programs and events. His previous role for the Council was vice president of operations and events.

In his new role, Goldstein will oversee the organization’s internal operations, certain aspects of human resources, sales and programming/events. This requires coordinating more than 160 events throughout the year, including the annual Governor’s Celebration of Innovation, attended by Arizona’s leading members of the business and technology community.

Jeremy Babendure, executive director of Arizona SciTech and the Arizona Technology Council Foundation, was named to the Phoenix Business Journal’s 40 under 40 list, which celebrates the best of the rising stars. He also serves as assistant research professor at Arizona State University’s School of Molecular Sciences.

In a special supplement published by the newspaper, Babendure cited his career highlights — including creating the nation’s first chief science officers group comprised of students who advocate for STEM and innovation in their schools and community, and raising more than $18 million in federal, corporate and foundational grants.

Members in the Spotlight Member company NeoLight, creator of smart devices that provide newborns with care rather than hospital treatment, recently was named the recent winner of the Phoenix Rise of the Rest Pitch Competition. The company received a $100,000 investment from AOL co-founder Steve Case.

Also getting the chance to make their pitches were member companies Crowd Mics, which gives audience a voice by turning their phones into wireless microphones for live events, and MSDx, a precision medicine company developing blood testing products for monitoring neurodegeneration in brain diseases.

The following individuals from Arizona Technology Council member companies and partners also were recognized in recent Phoenix Business Journal lists: Most Admired Leaders • Lisa Daniels, KPMG • Kevin Hickey, Beyond Trust • Eric Miller, PADT • David Racich, Brokers Alliance • R.F. “Rick” Shangraw Jr., Arizona State University Enterprise Partners and ASU Foundation • Russ Yelton, Pinnacle Transplant Technologies 40 under 40 • Sam Alpert, Junior Achievement • Gina Apresa, Wells Fargo Bank • Melissa A. Bengtson, DLA Piper • Ben Cilek, University of Phoenix • Koran Hardimon, Intel • Kate Maynard Hickman, Alliance Bank of Arizona • Nicole Maroulakos Goodwin, Greenberg Traurig • Nicole Johnson, Lovitt & Touché • Vivek Kopparthi, NeoLight • Travis Leach, Ballard Spahr • Neel Mehta, EpiFinder • Danny Moran Jr., SRP • Kristin Priscella, Arizona Science Center • Beth Stiner, Banner Health • Christopher Walton, Cresa • Robert Yao, EpiFinder Hickman and Leach also serve on the Council’s Board of Directors.

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ARIZONA TECHNOLOGY REPORT

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Two New Members Added to Council’s Board Security software and securities law have been added to the mix of expertise as two new members have been named to the Arizona Technology Council Board of Directors.

Rich Hlavka, CEO of Lynx Technology Partners, and Travis J. Leach, partner at Ballard Spahr, were appointed to a board that represents a diverse set of prominent Arizona-based organizations. “The talent, expertise and energy that both Rich and Travis bring to the table are exactly what we require in order to continue building Arizona’s high-tech hub,” says Steven G. Zylstra, president and CEO of the Arizona Technology Council.

Hlavka has spent many years as a senior executive in the security software space. Before being named to his current role of CEO in August 2015, he served as vice president of global sales at Interset.

Previously, he was senior vice president of business development for HEAT Software (formerly FrontRange & Lumension aka PatchLink). During

his sales leadership tenure, revenues at Lumension (PatchLink) grew more than 900 percent in a twoand-a-half-year period and 400 percent for business development. Additionally, Lumension ranked as the 14th fastest growing company on the Inc. 500 for private businesses.

Leach focuses his practice at Ballard Spahr on corporate and securities law, with an emphasis on public offerings, private placements, corporate governance matters, Sarbanes-Oxley and SEC compliance, and mergers and acquisitions. He is copractice leader of the Emerging Growth and Private Capital Group, and assists in leading the firm’s sports practice.

Leach also is involved in the community, including serving on the Arizona Governor’s Council on Spinal and Head Injuries, the Arizona Coyotes Foundation, the Veteran Tickets Foundation, and Arizona State University’s Sports Law and Business Program. He also participates in Tallwave’s High Tide program.

Rich Hlavka

Travis J. Leach

Sales, Management Training Offered to Members As part of the Arizona Technology Council’s Business Essentials Program, Sandler Training by Mercury Professional Development offers professional sales and management training to members. The program aligns with one of the Council’s key tenets: to provide members with access to education.

Sandler Training by Mercury Professional Development provides training for companies across a wide variety of industries, as well as specializing in the technology industry. “We’re delighted to expand our relationship to help more of [the Council’s] members accelerate their growth and sustain the momentum of the technology community in Arizona,” says Linc Miller, co-founder and president of Sandler Training

by Mercury Professional Development.

For participants in the Council’s Business Essentials Program, companies have the option of a month of free President’s Club sales training for up to three attendees or a private sales/management workshop for groups of 10 or more.

Miller is joined at the company by co-founder and CEO Mark Kirstein, who started his career as a semiconductor design engineer before moving into sales and management roles in the technology industry.

For more information about Sandler Training by Mercury Professional Development, contact Kirstein at mark.kirstein@sandler.com or 480-678-7778.

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ARIZONA TECHNOLOGY REPORT

Opening for Marketing Manager The Arizona Technology Council is looking for a marketing manager who will be responsible for all aspects of its marketing and communication with a strong emphasis on content creation and content marketing.

Responsibilities will include: • Maintain website, including landing pages, forms and updating content.

• Lead content creation for multiple assets, including website, digital newsletter, blog posts and sales enablement tools.

• Generate marketing qualified leads and measure program ROI. • Provide project management and copy editing support on major initiatives such as annual report, public policy guide and voting guide.

Qualifications must include: • Four-year college degree, marketing preferred.

• At least five years of B2B marketing and communications experience.

• Strong understanding of marketing software and its use in email nurture campaigns.

• Exceptional written and verbal communication skills.

Applicants can send cover letters and résumés to Steven G. Zylstra at szylstra@aztechcouncil.org.

Support for C-level Through 2017 Executive Roundtable Applications are being accepted for participants in the Arizona Technology Council’s 2017 Executive Roundtable, an exclusive peer-to-peer group of C-level executives who help each other solve business challenges.

The Executive Roundtable is a professionally facilitated group whose members understand one another’s issues because they have similar responsibilities. The roundtable follows the Vistage model, which brings groups of executives from non-competing industries together monthly to process key business and personal issues through peer-to-peer discussions, and hear expert speakers.

Each Council roundtable consists of 12 to 18 individuals with diverse backgrounds. Sessions will take place 9 a.m. to noon on the fourth Thursday of each month at the Council’s Phoenix office, 2800 N. Central Ave., Suite 1920. Speakers will be brought in and address topics based on the group’s needs.

To qualify for the roundtable, participants must be: • C-level with decision-making and budgetary responsibility/input in their companies • In companies with revenue exceeding $1 million annually • In business a minimum of three years (equivalent experience will be considered)

Each group member also must make a commitment to: • Attend and participate in all monthly meetings (10 to 12 in a year) • Offer at least two business issues for discussion during the one-year period • Commit to growing his or her business, and to individual learning The goal of the selection process is to ensure an atmosphere of trust and confidentiality. Each applicant will be evaluated on experience, education and core competencies to determine “fit” within the group.

Vendor/client associations will be evaluated for potential issues, and competing firms will not be placed in the same group. Once the initial application review is complete, a personal or phone interview will be conducted to further assess compatibility, confirm commitment and answer lingering questions.

The fee to participate in the roundtable series is $1,000 for Council members and $1,200 for non-members.

For an application, send a request to events@aztechcouncil.org.

Completed applications will be accepted through Dec. 2, with applicants contacted by the moderator by Dec. 9 with additional information or questions. All completed applications must be emailed or faxed to Leigh Goldstein at lgoldstein@aztechcouncil.org or 602-343-8330.

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Join the Arizona Technology Council and Ryley Carlock & Applewhite for this educational forum that will provide actionable solutions for protecting your intellectual property and customer data.

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Banks: Sustaining Growth The Arizona economy, largely driven by growth in the large metropolitan areas, appears to be on track and sustainable. We do not have the frenetic growth that held us captive in the early 2000s, but a more balanced model that allows for predicable and measurable growth.

The banking industry understands the significant role it plays in ensuring Arizona’s economy continues on this successful path. Not only do banks lend to the Arizona community, but they reinvest in it, employing thousands of Arizonans and donating time and money to nonprofit organizations.

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our communities and customers.

How we do business is also changing within the financial services industry as the Fintech industry grows and delivers new ways of serving our customers. We welcome these alternatives as we incorporate them into our offerings and make our delivery of financial services more efficient and improve our customers’ experiences. I firmly believe that the present banking system is best suited to maximize the benefits of these opportunities, and I look forward to capitalizing on them.

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Funding is consistently among the top concerns shared by our readers. As part of our “Banking” issue of In Business Magazine, our editorial staff has compiled this annual Business Lending Guide. This guide is a listing of local lenders, contacts and resources that will assist business owners in finding lending opportunities. We contacted federally and state-chartered banks, credit unions and selected other lenders and resources to provide information about the variety of loans or assistance programs they offer locally.

This guide will be available online and through our partner organizations until November 2017.

Our list is compiled of institutions based here locally who responded to our questionnaire by press time.

Please check the information, as contacts and phone numbers may change throughout the year. Many of the institutions have multiple locations throughout Arizona; this guide lists their main office in the Greater Phoenix area. To participate or advertise in our 2017/2018 guide, please contact us at info@inbusinessmag.com or visit our website at www.inbusinessmag.com. © 2016 InMedia Company, LLC.

NOV. 2016

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DID YOU KNOW

SBA Awards $18.8 Million to Support Small-Business Trade Growth Administrator Maria Contreras-Sweet, head of the U.S. Small Business Administration, last month announced $18.85 million to support export growth among American small businesses. The funding was awarded through SBA’s competitive State Trade Expansion Program. The share for Arizona businesses in Fiscal Year 2016 is $299,903.

Calling it a boon for America’s small businesses, she explains, “Exporting provides tremendous opportunities for America’s small businesses and entrepreneurs. Two-thirds of the world’s purchasing power can be found outside of the United States, but only about one percent of America’s 28 million small businesses are reaching customers beyond our borders.

Exporting is an important growth opportunity for our small businesses that are ready to expand their reach into new and increasingly borderless global markets. These STEP awards, in addition to SBA’s export loans and U.S. Export Assistance Centers, help small businesses across our nation have the tools, resources and relationships they need to take their businesses global.”

STEP awards were created to advance key priorities identified in the President’s National Export Initiative — namely, to expand the base of small businesses that become exporters and to make the exporting process as easy as possible for small businesses.

These awards are granted to U.S. states and territories to support programs that help small businesses expand their export-related activities. This includes participation in foreign trade missions, foreign market sales trips and subscription services for access to international markets, as well as the design of international marketing campaigns, export trade show exhibits, export training workshops and more.

STEP funds allow small businesses the opportunity to meet foreign buyers face to face at trade shows or on trade missions, and complement SBA’s export loan guaranty programs, which can finance the working capital needed to complete export orders and, in turn, help finance the expansion of production facilities due to export success. Loans are

available up to $5 million. More information can be obtained from SBA’s Export Finance Managers located at 21 U.S. Export Assistance Centers across the country.

Recipients of STEP awards in the first three rounds (FY 2011, 2012, 2014) reported a strong return on federal taxpayer investment, generating $22 in U.S. small-business export sales for every $1 awarded.

—U.S. Small Business Administration SBA General Small Business Loans bit.ly/7a-loan-program SBA State Trade Expansion Program bit.ly/step-state-awardees U.S. Export Assistance Centers bit.ly/us-export-assistance

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BUSINESS LENDING GUIDE Common Pitfalls of Small-Business Banking and How to Avoid Them Statistics show that most small businesses fail within the first five years, and oftentimes the biggest mistakes are related to finances and often avoidable.

Pitfall #1: Not having a relationship with your business banker. It is important to have a banker who knows you and your business to help make the best financial decisions. Your banker is well versed in all of the financing options available to your business and will be the best ally to get you up and running in the most efficient and financially responsible way.

How to Avoid It: Whether you’re starting your business, thinking about expanding or just looking for sound advice, your first step should be to make an appointment with your banker. Be prepared to discuss previous financial information, current finances and the goals for your business. When your banker has all of the details, he or she will be able to point your business in the right direction, connect you with the right people within the bank and advise as necessary on the next steps. —Sherri Slayton, executive vice president of Alliance Bank of Arizona, a division of Western Alliance Bank, which is the primary affiliate of Phoenix-based Western Alliance Bancorporation, one of the fastest-growing bank holding companies in the U.S. Alliance Bank of Arizona alliancebankofarizona.com

Banks Alerus Bank 17045 N. Scottsdale Rd. Scottsdale, AZ 85255 Contact: Rob Schwister Phone: (480) 905-2407 Website: alerusfinancial.com Types of Loans/Services: SBA loans, term loans, lines of credit Alliance Bank of Arizona 1 E. Washington St. Phoenix, AZ 85004 Contact: Ruza Radulovic Phone: (602) 386-5500 Website: alliancebankofarizona.com Types of Loans/Services: corporate banking, commercial real estate lending, public finance, business and professional banking, SBA lending, treasury management services, nonprofit financing, equipment financing Arizona Bank & Trust 2036 E. Camelback Rd. Phoenix, AZ 85016 Contact: Troy Norris Phone: (480) 844-4558 Website: arizbank.com Types of Loans/Services: commercial loans, including lines of credit, equipment, real estate, construction Arizona Business Bank 2600 N. Central Ave., Ste. 2000 Phoenix, AZ 85004 Contact: Toby Day Phone: (602) 240-2700 Website: azbizbank.com Types of Loans/Services: revolving lines of credit, term loans, letters of credit, real estate, SBA loans Bank 34 14850 N. Scottsdale Rd. Scottsdale, AZ 85254 Contact: Desiree Lonsinger Phone: (623) 463-1440 Website: bank34.com Types of Loans/Services: commercial term mortgages, residential mortgages, business loans, SBA loans

Visit us online at www.inbusinessmag.com to see more on each lender, including contacts and areas of expertise.

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NOV. 2016

Bank of America, NA 201 E. Washington St. Phoenix, AZ 85004 Contact: Small Business Banking Phone: (888) 287-4637 Website: bankofamerica.com Types of Loans/Services: lines of credit, term loans, SBA lending Bank of Arizona, NA 16767 N. Perimeter Dr. Scottsdale, AZ 85260 Contact: Business Banking Department Phone: (602) 808-5331 Website: bankofarizona.com Types of Loans/Services: revolving lines of credit, real estate lines of credit, equipment or vehicle term loans, real estate term loans, construction financing, equipment leasing, SBA loans BBVA Compass Bank 4010 E. Thomas Rd., Phoenix, AZ 85018 Contact: Romeo Zavala Phone: (602) 522-2580 Website: bbvacompass.com Types of Loans/Services: SBA loans, lines of credit, commercial real estate lending, working capital financing, residential construction, energy lending, business leasing, business credit cards Biltmore Bank of Arizona 5055 N. 32nd St., Phoenix, AZ 85018 Contact: Richard Endicott Phone: (602) 992-5055 Website: biltmorebankaz.com Types of Loans/Services: commercial lines, SBA, USDA, solar, SFR pools, Arizona Commerce Authority, industrial, treasury management products BMO Harris Bank 1 E. Camelback Rd., Phoenix, AZ 85012 Contact: Don Satiroff Phone: (602) 650-3850 Website: bmoharris.com Types of Loans/Services: business and corporate lending, lines of credit, equipment leasing, asset-based lending, commercial real estate, SBA & community development loans, treasury management services

BNC National Bank 20175 N. 67 Ave., Glendale, AZ 85308 Contact: Scott Spillman Phone: (602) 508-3760 Website: bncbank.com Types of Loans/Services: revolving lines of credit for short-term operating needs, working capital loans, term loans for business equipment, commercial real estate loans, SBA loans, 504 commercial real estate loans, business agricultural loans, letters of credit Comerica Bank 425 S. Mill Ave., Tempe, AZ 85282 Contact: Sue Ligocki Phone: (480) 966-0846 Website: comerica.com Types of Loans/Services: commercial property loans, business lines of credit, business loans, credit cards Commerce Bank of Arizona 4110 N. Scottsdale Rd., Ste. 120 Scottsdale, AZ 85251 Contact: Steve Heslep Phone: (480) 253-4504 Website: commercebankaz.com Types of Loans/Services: businessrelated loans of all types Enterprise Bank & Trust 3900 E. Camelback Rd., Ste. 180 Phoenix, AZ 85018 Contact: Zach Morrison Phone: (602) 824-5700 Website: enterprisebank.com Types of Loans/Services: commercial loans, equipment, real estate, construction, SBA loans, lines of credit First Fidelity Bank 6232 N. 32nd St., Phoenix, AZ 85018 Phone: (602) 912-5555 Website: ffb.com Types of Loans/Services: revolving lines of credit, commercial real estate, residential real estate, equipment, SBA, oil & gas production loans, commercial leasing First International Bank & Trust 2231 E. Camelback Rd. Phoenix, AZ 85016 Contact: Craig Ealy Phone: (480) 946-2967 Website: firstintlbank.com Types of Loans/Services: agriculture, business, SBA loans

»

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Liquid Capital of Arizona is locally owned. Clients deal directly with the decision maker, who also funds the deals. In many cases cash is available within a few days. Our approach is unique; no hidden administrative, minimum or termination fees.

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If you need working capital to move your business forward, we welcome the opportunity to meet and discuss your options.

For more information: Joel Gottesman Liquid Capital of Arizona jgottesman@liquidcapitalcorp.com Phone: 480-473-2105 Joel Gottesman, owner and President of Liquid Capital of Arizona, has 30 years of experience as an attorney, banker, and small business owner.

We help business grow.

8679 East San Alberto Drive, Suite 201 Scottsdale, AZ 85258 www.az.liquidcapitalcorp.com

Liquid Capital of Arizona is part of a network of 80 independently-owned businesses throughout the U.S., Canada and Mexico.

BUSINESS LENDING GUIDE Common Pitfalls of Small-Business Banking and How to Avoid Them Statistics show that most small businesses fail within the first five years, and oftentimes the biggest mistakes are related to finances and often avoidable.

Pitfall #2: Not having a business plan or anticipating cash needs for seasonality or growth. A business plan allows you as the owner to prioritize your objectives and plan accordingly for the future. This plan could include projected growth in revenues, employee needs, and necessary cash needs that will impact the business. A business plan also allows the bank to have a perspective on the future plans and cash or capital needs of your business.

How to Avoid It: Discuss with your banker the short- and long-term goals for your business. Look at different scenarios for growth or seasonality and how those scenarios will affect your need for cash. Your banker will be able to give you a better idea of the plans that should be put in place to meet your requirements. You should also talk to your banker about having a back-up plan should there be unexpected changes in your business to ensure the endgoal is still going to be attainable.

—Sherri Slayton, executive vice president of Alliance Bank of Arizona

Banks (con’t) FirstBank 4925 N. 20th St., Phoenix, AZ 85016 Phone: (602) 667-6900 Website: efirstbank.com Types of Loans/Services: commercial real estate, construction, SBA loans, lines of credit, residential real estate Gateway Bank 6860 E. Warner Rd. Mesa, AZ 85212 Contact: James L. Christensen Phone: (480) 358-1000 Website: gcbaz.com Types of Loans/Services: commercial lending Goldwater Bank 2525 E. Camelback Rd., Ste. 1100 Scottsdale, AZ 85016 Contact: Robert Simpson Phone: (480) 281-8200 Website: goldwaterbank.com Types of Loans/Services: business lending, mortgage lending, consumer lending Great Western Bank 1721 N. Arizona Ave., Ste. 1 Chandler, AZ 85225 Contact: David Telya Phone: (480) 917-0139 Website: greatwesternbank.com Types of Loans/Services: commercial and consumer loans JPMorgan Chase 201 N. Central Ave. Phoenix, AZ 85004 Contact: SBA Lending Department Phone: (800) 242-7324 Website: chase.com Types of Loans/Services: commercial lending, SBA lending Johnson Bank 3131 E. Camelback Rd., Ste. 100 Phoenix, AZ 85016 Contact: Cathy Camacho Phone: (602) 381-2100 Website: johnsonbank.com Types of Loans/Services: lines of credit, commercial mortgages, equipment leasing, SBA loans

Visit us online at www.inbusinessmag.com to see more on each lender, including contacts and areas of expertise.

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NOV. 2016

KS StateBank 5110 N. Central Ave., Phoenix, AZ 85012 Contact: Frank Coumides Phone: (602) 332-7828 Website: ksstatebank.com Types of Loans/Services: commercial loans to small and mid-sized businesses for equipment, real estate, expansion Metro Phoenix Bank 4686 E. Van Buren St., Ste. 150 Phoenix, AZ 85008 Contact: Michael Morano Phone: (602) 346-1800 Website: metrophoenixbank.com Types of Loans/Services: commercial lending MidFirst Bank 3030 E. Camelback Rd. Phoenix, AZ 85016 Contact: Barb Bandura Phone: (602) 801-5000 Website: midfirst.com Types of Loans/Services: SBA loans, business express loans, business lines of credit, business term loans, commercial real estate lending, business equipment lease financing Mutual of Omaha Bank 9200 E. Pima Center Pkwy.

Scottsdale, AZ 85258 Contact: Kevin Halloran Phone: (480) 458-2249 Website: mutualofomahabank.com Types of Loans/Services: commercial and industrial, commercial real estate, SBA, mortgage, personal and association lending National Bank of Arizona 6001 N. 24th St., Phoenix, AZ 85016 Contact: Mike Casa Phone: (602) 235-6000 Website: nbarizona.com Types of Loans/Services: consumer, residential real estate, commercial, corporate, treasury management, commercial real estate, wealth management, nonprofit, energy lending Parkway Bank 11011 N. Tatum Blvd.

Phoenix, AZ 85028 Contact: Michael Doan Phone: (602) 765-8501 Website: parkwaybank.com Types of Loans/Services: an array of conventional business loans as well as SBA financing

Pinnacle Bank 14287 N. 87th St., Ste. 123 Scottsdale, AZ 85260 Contact: Tim Romano, Scott Willits Phone: (480) 609-0055 Website: pinnaclebankaz.com Types of Loans/Services: lines of credit, equipment loans, term loans, real estate construction loans, standby letters of credit, SBA loans RepublicBankAz 909 E. Missouri Ave. Phoenix, AZ 85014 Contact: Ralph Tapscott Phone: (602) 277-2500 Website: republicbankaz.com Types of Loans/Services: commercial loans and lines of credit, commercial real estate loans, commercial construction loans, SBA loans Stearns Bank N.A., Arizona 9225 E. Shea Blvd.

Scottsdale, AZ 85260 Contact: Tom Hosier Phone: (480) 314-4200 Website: stearnsbank.com Types of Loans/Services: SBA loans, commercial and construction lending, equipment finance and leasing, USDA rural development loans TCF Bank 11 S. McClintock Dr. Tempe, AZ 85281 Contact: Consumer Loans Department Phone: (800) 823-5363 Website: tcfbank.com Types of Loans/Services: working capital lines of credit, term loans, commercial real estate loans, leasing, business credit cards UMB / Meridian Bank, NA 2700 N. Central Ave., Ste. 110 Phoenix, AZ 85004 Contact: Meridian Bank Phone: (602) 274-7500 Website: meridianbank.com Types of Loans/Services: term/installment loans, business line of credit, SBA loans, commercial loans

INBUSINESSMAG.COM

BUSINESS LENDING GUIDE U.S. Bank SBA Division Regional Office 2222 E. Camelback Rd. Phoenix, AZ 85016 Contact: SBA Division Administrative Office Phone: (800) 431-7101 Website: usbank.com Types of Loans/Services: SBA loans, lines of credit, equipment leasing, term loans, agricultural loans, quick credit, commercial real estate

Wells Fargo Bank 100 W. Washington St. Phoenix, AZ 85003 Contact: Jennifer Anderson Phone: (602) 378- 5133 Website: wellsfargo.com/biz Types of Loans/Services: business loans of all types, including real estate, lines of credit, equipment, SBA

Washington Federal 2196 E. Camelback Rd., Ste. 100 Phoenix, AZ 85016 Contact: Scott Stemm Phone: (602) 553-7434 Website: washingtonfederal.com Types of Loans/Services: commercial lending, commercial real estate financing, lines of credit, term loans, business credit cards, SBA loans

West Valley National Bank 5635 N. Scottsdale Rd., Ste. 150 Scottsdale, AZ 85250 Contact: Debra Ingle Phone: (480) 429-6750 Website: wvnb.net Types of Loans/Services: SBA 7(A), SBA 504, working capital, owner-occupied real estate, A/R lines of credit

Common Pitfalls of Small-Business Banking and How to Avoid Them Statistics show that most small businesses fail within the first five years, and oftentimes the biggest mistakes are related to finances and often avoidable.

Pitfall #3: Lack of quality accounting and financial information. It is important to have access to and utilize qualified accounting or bookkeeping resources not only to help you have appropriate accounting and inventory control, but to maintain the accounts receivable and payable systems that track financial information and produce financial statements. Accurate financial statements are crucial to obtaining a loan and to managing your business.

How to Avoid It: Invest in an accounting system or bookkeeping system

»

at your business, or hire a bookkeeper or accounting service to produce periodic financial reporting that includes profit and loss statements and balance sheets. Secure online banking systems and bill pay systems that integrate with your accounting or bookkeeping systems are critical to seamlessly producing monthly, quarterly and annual financial statements and will assist with tax return preparation. —Sherri Slayton, executive

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BUSINESS LENDING GUIDE Banks (con’t) Western State Bank 7001 N. Scottsdale Rd., Ste. 1000 Scottsdale, AZ 85253 Contact: Shane Randall Phone: (480) 596-0883 Website: westernbanks.com Types of Loans/Services: commercial term loans, commercial lines of credit, construction lines of credit, lease financing, corporate credit cards, agricultural loans

Common Pitfalls of Small-Business Banking and How to Avoid Them Statistics show that most small businesses fail within the first five years, and oftentimes the biggest mistakes are related to finances and often avoidable.

Pitfall #4: Managing the profitability of the business for tax purposes. One attractive income tax strategy is trying to reduce tax liability by reducing the taxable income of the business through various tactics. While this may result in lower tax liabilities in the current period, it can also reduce or eliminate reported income, which is typically the number used when qualifying for a loan.

How to Avoid It: Talk to your accountant and banker when you are considering deferring recognition of income, pre-paying expenses, expensing items that could be capitalized or accelerating depreciation for tax purposes.

These strategies should be considered in balance with the need to meet debt service coverage

Credit Unions Arizona Central Credit Union 2020 N. Central Ave., Ste. 800 Phoenix, AZ 85004 Contact: Jeffrey Frank Phone: (602) 523-8342 Website: azcentralcu.org Types of Loans/Services: SBA loans, commercial real estate loans, lines of credit, term loans Credit Union West 350 E. Dunlap Ave. Phoenix, AZ 85020 Contact: Business Service Center Phone: (602) 631-3200 Website: cuwest.org Types of Loans/Services: business loans Desert Schools Federal Credit Union 148 N. 48th St. Phoenix, AZ 85034 Contact: Herb Ramirez Phone: (602) 663-8674 Website: desertschools.org Types of Loans/Services: working capital financing, equipment loans, owner-occupied real estate, commercial real estate OneAZ Credit Union 2355 W. Pinnacle Peak Rd. Phoenix, AZ 85027 Contact: Pat Blaine Phone: (602) 467-4262 Website: azstcu.org Types of Loans/Services: term loans, unsecured lines of credit, commercial real estate mortgages, business vehicle loans, business credit cards, business overdrafts TruWest Credit Union 1345 W. Warner Rd. Tempe, AZ 85284 Contact: Daniel Desmond Phone: (480) 441-5900 Website: truwest.org Types of Loans/Services: business loans, secured and unsecured lines of credit, business credit cards, commercial real estate lending, equipment financing

Alternative Lending Altima Business Solutions 1820 E. Ray Rd. Chandler, AZ 85225 Contact: Andre Wilson Phone: (480) 264-5150 Website: altimabusinesssolutions.com Types of Loans/Services: angel and venture capital, private equity, merchant funding, equipment leasing, factoring, contract financing FSW Funding 4530 E. Shea Blvd., Ste. 142 Phoenix, AZ 85028 Contact: Robyn Barrett Phone: (602) 535-5984 ext. 1 Website: fswfunding.com Types of Loans/Services: choose or add lines of credit, letters of credit, factoring, assetbased lending Liquid Capital 8679 E. San Alberto Dr., Ste. 201 Scottsdale, AZ 85262 Contact: Joel Gottesman Phone: (480) 473-2105 Website: az.liquidcapitalcorp.com Types of Loans/Services: factoring, purchase order and inventory finance, exports, Quick Pay programs Sir Mortgage & Finance 4040 E. Camelback Rd., Ste. 210 Phoenix, AZ 85018 Contact: Greg Sir Phone: (602) 954-6677 Website: sirmortgage.com Types of Loans/Services: residential, commercial and construction loans Southwestern Business Financing Corporation 3200 N. Central Ave., Ste. 1550 Phoenix, AZ 85012 Contact: Teresa Maldelin Phone: (602) 495-2185 Website: swbfc.com Types of Loans/Services: SBA 504 financing

Lending Resources ACCIÓN P.O. Box 41237 Tucson, AZ 85717 Phone: (520) 682-3648 Website: accionaz.org Types of Services: loans, lines of credit, management services, investment, governance Arizona Commerce Authority 333 N. Central Ave., Ste. 1900 Phoenix, AZ 85004 Phone: (602) 845-1200 Email: smallbiz@azcommerce.com Website: azcommerce.com Types of Services: business-growing strategies, market research, licensing information, statewide resource information, workforce assistance Arizona Loans for Assistive Technology Institute for Human Development University Affiliated Program Northern Arizona University 2400 N. Central Ave., Ste. 300 Phoenix, AZ 85004 Contact: Martha Lewis Phone: (602) 776-4670 Website: azlat.org Types of Services: loans for persons with disabilities to purchase assistive technology, training and technical assistance; equipment reutilization; Self Employment for Entrepreneurs with Disabilities program Center for Entrepreneurial Innovation 275 N. GateWay Dr. Phoenix, AZ 85034 Phone: (602) 286-8950 Website: ceigateway.com Types of Services: incubator startup and early-stage companies, access to facilities space, mentorship opportunities, business development resources, weekly educational seminars open to the public, and more

and other loan requirements. — Sherri Slayton, executive vice president of Alliance Bank of Arizona

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NOV. 2016

INBUSINESSMAG.COM

BUSINESS LENDING GUIDE City of Phoenix Expand Program 200 W. Washington St. Phoenix, AZ 85003 Contact: Loretta Hogans Phone: (602) 262-6005 Website: phoenix.gov/econdev Types of Services: assistance in finding loans for businesses, collateral reserve deposits Industrial Development Authority (IDA) of Maricopa County c/o Maricopa County Administration Office 301 W. Jefferson St., 10th Floor Phoenix, AZ 85003 Contact: Greg Ghalfi Phone: (602) 690-8996 Website: mcida.com Types of Services: conduit financing, project financing, manufacturing facility bonds

Neighborhood Economic Development Corporation (NEDCO) 10 W. Main St., Mesa, AZ 85201 Phone: (480) 258-6927 Website: nedco-mesa.org Types of Services: alternative financing programs for new and startup businesses, entrepreneur education, loan readiness assessment, business credit repair, loan application assistance

Small Business Administration (SBA) 2828 N. Central Ave., Ste. 800 Phoenix, AZ 85004-1093 Contact: Robert Blaney Phone: (602) 745-7200 Website: sba.gov Types of Services: loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses

Service Corps of Retired Executives (SCORE) 2828 N. Central Ave., Ste. 800 Phoenix, AZ 85004-1093 Phone: (602) 745-7250 Website: score.org Types of Services: resources, templates and tools to assist entrepreneurs in developing tools and plans

Small Business Development Center (SBDC) 2411 W. 14th St. Tempe, AZ 85281 Phone: (480) 731-8720 Website: azsbdc.net Types of Services: assistance for small businesses in every stage of development, SBA loan assistance, free one-on-one business counseling, workshops and training programs

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Adams, Peter, 40

Day, Toby, 22, 53

Johnson, Nicole, 47

Priscella, Kristin, 47

Almanza, Benito, 23

Doss, David E., 10

Kirstein, Mark, 48

Racich, David, 47

Alpert, Sam, 47

Favela, Javier, 18

Kok, Nils, Ph.D., 13

Ralston, Dave, 23

Apresa, Gina, 47

Ferriss, Timothy, 27

Kopparthi, Vivek, 47

Reina, Dennis, Ph.D., 66

Babendure, Jeremy, 44, 47

Frank, Susan, 10

Lanning, Kimber, 29

Reina, Michelle, Ph.D., 66

Bateman, Deborah, 29

Gengtson, Melissa A., 47

Leach, Travis J., 47, 48

Scott, Kathryn, 45

Breault, Bob, 46

Gill, Anne, 37

Linam, Shawn, 12

Shangraw, R.F. “Rick” Jr., 47

Brewer, Anna, 11

Goldstein, Leigh, 47

Lundy, James, 9, 22

Simons, Ted, 29

Browning, Dominique, 44

Goodwin, Nicole Maroulakos, 47

McCully, Nick, 12

Slayton, Sherri, 56, 58, 59, 60

Bryan, Erik, 16

Gorny, Tomas, 29

McKinney, Webb, 27

Smith, Rick, 29

Burgelman, Robert A., 27

Graf, Rey, 18

Mehta, Neel, 47

Stanton, Greg, Mayor, 29

Burns, David, 16

Gray, Anne, 28

Meza,, Philip E., 27

Steadman, Kathy, 15

Camacho, Chris, 29

Hall, Kindra, 26

Miller, Eric, 47

Stiner, Beth, 47

Cannon, Brent, 24

Halpin, Jan, 28

Miller, Linc, 48

Taj, Torrie, 28

Case, Steve, 47

Hickey, Kevin, 47

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Walton, Christopher, 47

Cilek, Ben, 47

Hickman, Kate Maynard, 47

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Conboy, Pam, 24

Hlavka, Rich, 48

Mueller, Brian, 29

Yao, Robert, 47

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Iacobelli, Julie, 28

Osio, German, 34

Yelton, Russ, 47

Cottrell, Jonathan, 14

Iglesias, Oriol, 27

Ostreicher, Deborah, 37

Zito, Ed, 22

Coyle, Linda, 45

Ind, Nicholas, 27

Pierce, Nathan, 12

Zylstra, Steven G., 29, 43, 46, 47

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Jhaveri, Vishu J., M.D., 18

Pogue, David, 13

1100 KFNX, 42

Coppersmith Brockelman, 15

Liquid Capital, 57

2020 Women on Boards, 30

Cresa, 47

Local First Arizona, 29, 30

Ahwatukee Foothills Chamber of Commerce, 30

DeFalco’s Italian Eatery, 34

Lovitt & Touché, 47

Desert Schools Federal Credit Union, 10, 19

Lynx Technology Partners, 48

Alliance Bank of Arizona, 3, 9, 22, 47, 56, 58, 59, 60, 62

Desert Viking Development, 12

MereStone, 33

Alliance of Arizona Nonprofits, 30

Economic Club of Phoenix, 30

Alerus, 17

Apache Junction Chamber of Commerce, 30 APS, 5 Arizona Bankers Association, 22, 53 Arizona Business Bank, 22, 53 Arizona Hispanic Chamber of Commerce, 30 Arizona Optics Industry Association, 46 Arizona Relay, 6 Arizona Science Center, 47 Arizona SciTech, 47 Arizona Small Business Administration, 30 Arizona Technology Council Foundation, 44, 47 Arizona Technology Council, 29, 43 ASU Foundation, 47 Ballard Spahr, 47, 48 Bank of America, 23 Banner Health Network, 47, 68 BBVA Compass, 54 Beyond Trust, 47 Brokers Alliance, 47 Casa Verde High School, 44 CBRE, 13

DLA Piper, 47

Child Crisis Arizona, 28 Children’s Museum of Phoenix, 63

Morgan Law Offices, 8 National Bank of Arizona, 24, 29, 52

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National Board of Medical Examiners, 18

FSW Funding, 63

NeoLight, 47

Fennemore Craig, 6

New Spring Pharmacy, 64

Gilbert Chamber of Commerce, 30

newACunit.com, 16

Glendale Chamber of Commerce, 30

Nextiva, 29

Golfpay, 16

OneAZ Credit Union, 10

GPS Insight, 2

Opendoor, 16

Grand Canyon University, 29, 39, 45 Greater Phoenix Chamber of Commerce, 30

PADT, 47

SRP, 11, 17, 47 St. Francis, 34 STARS, 28 Stearns Bank, 59 Strong Tower Homes, 12 SumoMaya, 34 Sun Devil Trophy, 32 Swiftpage, 11 TASER, 29 Tempe Chamber of Commerce, 35 Tempe, City of, 35 ThinkSmallBiz, 64 Thunderbird Trophies, 32 Topaz, 18

Peoria Chamber of Commerce, 30

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Phoenix Children’s Hospital Foundation, 41

U.S. Small Business Administration, 23, 54

Greenberg Traurig, 47

University of Phoenix, 47

HJ Trophies & Awards, 32

Phoenix Global Chamber, 30

WebPT, 29

Home Instead Senior Care, 18

Phoenix Philanthropy Group, The, 19, 28

Wells Fargo, 24, 47, 49, 55

Horizon Community Bank, 25

Phoenix, City of, 29

West Valley National Bank, 25, 61

Hopscratch, 14

Ping! Development, 40

WESTMARC, 30

Infusionsoft, 64

Pinnacle Transplant Technologies, 47

WINLEE Development, 12

Insperity, 11

Qwaltec, 12

Intel, 29, 47

Reina, A Trust Building Consultancy, 66

JLL, 67

Redirect Health, 7

Junior Achievement, 47

Sandler Training by Mercury Professional Development, 48

Greater Phoenix Economic Council, 29

KAET PBS Channel 8, 29 KPMG, 47

Chatlight, 11

Maastricht University, 13

Southwest Veterans Chamber of Commerce, 30

La Piazza Al Forno, 34 Lexus, 32

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

Science Foundation Arizona, 45 Scottsdale Area Chamber of Commerce, 30 Siemens, 16 Sky Harbor International Airport, 37

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

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65 20NOV.1 6 INBUSINESSMAG.COM

A CANDID FORUM

BY

How a Breach of Trust Can Propel You Forward

Specific steps can help company leadership reverse a systemic breakdown in trust

by Drs. Dennis and Michelle Reina

It is a critical planning time of year. Your senior leadership team needs your analytical skills tuned in to improving not just capital growth but the systems underpinning that growth.

What happens when the system in need of improvement is behavioral?

In the September edition of In Business Magazine, Tyrone Benson, Ph.D., quality and reliability research and development engineer, says a leadership imperative he learned during a recent Valley Leadership Institute session was “being authentic and bringing our whole selves to the task.” Another core leadership responsibility learned was to make sure people “are aligned and speaking the same language.”

Which begs the question: What can you do when people aren’t bringing their whole selves to work and aren’t aligned and speaking the same language? When communication and relationships have broken down, and, along with them, trust?

Look for yourself in this story of another business leader.

He’d been hired to turn around a troubled engineering division, and discovered the core issue was breached trust. Pinpoint specific actions this business leader took that you can take in your own team, in your own company.

THE BUSINESS LEADER’S PROBLEM

A $30 million financial systems initiative designed to create operational efficiencies companywide was on the brink of collapse. Not only was the $30 million at risk, but so were tens of millions in potential long-term benefits.

The core issue? Relationships within the division had deteriorated. Engagement scores had dropped three years in a row. This decline corresponded to information hoarding, jockeying for position, passive-aggressive posturing, finger pointing, and gossiping. Missed delivery dates put the initiative over budget and behind schedule.

Something had to be done.

Michelle Reina, Ph.D., and Dennis Reina, Ph.D., are co-founders of Reina, A Trust Building Consultancy and co-authors of Building Effective Relationships in Your Organization (BerrettKoehler Publishers, 2015).

Through rigorous, researchbased assessments and a compassionate approach that recognizes the human aspect of trust, the Reinas take the guesswork out of trust building in the workplace. reinatrustbuilding.com

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THE SOLUTION: SYSTEMIC TRUST BUILDING

Step 1: Identify where trust stands. What do engineers thrive on? Data. The lead engineer and his team took a bold step to measure the level of trust inside the division. They pinpointed relational dynamics that were making trust vulnerable; behaviors and paradoxes that were causing employees to disengage and miss project delivery dates.

An example of one such paradox: While leadership respected employees, the employees themselves felt micromanaged. Therefore, rather than initiating action, they waited for leadership to tell them what to do.

The lead engineer and his team also discovered where trust was strong and could be leveraged.

Step 2: Encourage self-awareness. Ninety percent of the time trust gets compromised in a workplace it’s through

small, subtle, unintentional behaviors. Yet, the impact of those behaviors adds up.

The lead engineer and his team led the way in gaining awareness of how they — unwittingly and unknowingly — were breaking down trust through their daily behaviors.

Instead of positioning themselves as behavioral experts, they exhibited a collegial approach: “We’re in this together, and learning along with you.”

They learned to serve as role models — practicing specific trust-building behaviors. Through courageous transparency, they encouraged their people to deepen their own awareness around how their own behaviors impacted trust.

Step 3: Extend compassion. Trust work is a process.

When people made mistakes or fell back into trust-breaking patterns of behavior, the lead engineer led the way in extending compassion. Over time, leaders and employees throughout the division developed a habit of forgiveness.

Instead of pointing fingers or laying blame when things veered off course, they pitched in to give each other a second chance and to co-create solutions.

Step 4: Keep trust front and center. Paying attention to relationships and trust when $30 million is on the line can be challenging. When business pressures closed in, the lead engineer and his people had to tap their conviction to trust — their conviction to one another, their relationships, and to rebuilding a healthy, high-trust culture that would produce results.

THE RESULTS

Within six months: There was a profound shift. At the six-month checkpoint, employees had reduced their trustbreaking behaviors by 80 percent, and increased their trustbuilding behaviors by 63 percent.

What did this transformation mean pragmatically? Instead of doing things like hoarding information and criticizing others unfairly, people shared information and gave feedback that was constructive and actionable. They knew what was expected of one another, and acted upon this knowledge with speed and in good faith. They cared.

Within one year: For the first time in years, engagement scores rose — by 25 percent.

Within 18 months: The $30-million initiative — along with its tens of millions of dollars in potential long-term benefits — was back on schedule. Deliverables were produced. Deadlines were met.

More importantly, people discovered a renewed commitment to one another and teamwork. A genuine sense of collaboration emerged.

What are areas in your company in which breakdowns in relationships are diminishing work speed or quality? What conversations around trust can you begin?

A Watson Wyatt Worldwide study found that organizations in which front-line employees trusted senior leadership posted a 42-percent higher return on shareholder investment over those firms where distrust was the norm, as cited by the Reinas in an article for the American Management Association. bit.ly/mworld-trust-pdf

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