In Business Magazine December 2012

DEC. 2012

Roundtable: Is Standardized Testing Stifling Our Work Force?

How to Prosper in the New Economy Power Lunch By the Numbers Business Calendar This Issue Top Luxury Realtors

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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

of the most important things we can do to affect your company.

That’s why we take the time to get to know your company’s challenges and consult with you to provide the highest-quality, lowest-cost solutions — tailored especially for your business.

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

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As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.

Associate Partners Ahwatukee Foothills Chamber of Commerce www. ahwatukeechamber.com Arizona Chamber of Commerce & Industry www.azchamber.com Arizona Hispanic Chamber of Commerce www.azhcc.com Chandler Chamber of Commerce www.chandlerchamber.com Economic Club of Phoenix www.econclubphx.org Glendale Chamber of Commerce www.glendaleazchamber.org Greater Phoenix Black Chamber of Commerce www.phoenixblackchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce www.gpglcc.org Mesa Chamber of Commerce www.mesachamber.org North Phoenix Chamber of Commerce www.northphoenixchamber.com North Scottsdale Chamber of Commerce www.northscottsdalechamber.org Peoria Chamber of Commerce www.peoriachamber.com Westmarc www.westmarc.org

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DEC. 2012

IN BuSINESS MAGAZINE

Contents

Roundtable: Is Standardized Testing Stifling Our Work Force?

December 2012

WEALTH MANAGEMENT

20

How to Prosper in the New Economy DECEMBER 2012 • inbusinessmag.com

Wealth Management: How to Prosper in a New Economy

Power Lunch By the Numbers Business Calendar

$4.95 INBUSINESSMAG.COM

This Issue Top Luxury Realtors

Today’s economy has fostered a completely changed investment business. To delve into how money managers are thinking outside the traditional model of how they managed portfolios in the past, Glenn Swain speaks with professionals in financial planning, asset management, credit unions and private banking.

Departments

9 Guest Editor

Features

26 Customers Can Be a Company’s Best Marketers

Customers, as Bill Lee shows, are uniquely equipped to influence a company’s product development, sing its praises and even close sales.

28 The ‘Grow or Die’ Lie

In the race to grow a business, it must be remembered that the real key for success is carefully managed growth, explains Edward D. Hess.

28

34 Entertainment Districts: The Business

behind the Fun

Don Rodriguez explores the revenue potential of entertainment districts and the elements necessary for their success.

36 The Crucial Monthly Close

In the closing article of his three-part “Finance” series, Dennis Niven addresses business owners’ need for timely and accurate financial statements to best manage their business.

“Tech Career Center,” “Desktop in the Cloud,” “Benefits of Economic Census,” “The New inbusinessmag.com,” “Marketing the ‘Shop Local’ Message Is a Local Priority,” “Shop Local is Promo to Gilbert Residents,” “Bio Talent Pool Attracts Bridgestone to Mesa,” “GPEC Initiative Comps California CEOs with Travel and an In-depth Asset Tour” and “Prospecting Behavior Trumps ‘Sales Personality’”

16 By the Numbers 18 Trickle Up

View from the top looks at how Joel Barthelemy, GlobalMed’s founder, seeks problems — and fixes them.

Luxury 27 Books

Special Sections

Top

39 Top Luxury Realtors

Realt o

rs

Our Pic in Lux ks fOr the ury hOm Bes e saLes t Of the Bes fOr 201 t 3

Cathy

Che Hotchkis y Castro • Walt Dan s • Rob ley ert Joff e • Mar • Gayle Hen derson nie Ros l estat enthal e listin • San dra

Arthritis Foundation Arizona Crisis Nursery

37

Noted business and community leaders Robyn Barrett, Rick DeGraw and Jeff Young respond to IBM’s burning business question of the month.

What direction does the recent election portend for business?

Business Education

30 Nonprofit

10 Feedback 12 Briefs

34

Our picks for the best of the best in luxury home sales for 2013

Deborah Bateman, executive vice president and director of wealth strategies with National Bank of Arizona, introduces the “Wealth Management” issue.

New releases on marketing explore branding and marketing plans.

37 Assets

2013 Mercedes-Benz GL-Class SUV Plus: Top fitness clubs to enhance one’s health

38 Power Lunch

Wildhorse Grille at Talking Stick Golf Club offers country-club ambience with a Southwestern flair.

Plus: Great spots that are minimal in name but maximized in menu

50 Roundtable

“Standardized People Won’t Win America’s Future” On The Agenda

31 Spotlight

Day at Phoenix City Hall Innovations in Marketing Seminar Series

32 Calendar

Business events throughout the Valley

See rea

gs inside

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D e c e m b e r 2012

by our

Wilken

top pic ks …

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Internet. Data. Phone.

December 2012 • Vol. 3, No. 12

Publisher Rick McCartney Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers Gremlyn Bradley-Waddell Edward D. Hess Mike Hunter Bill Lee Dennis Niven Don Rodriguez Trish Stark Peter Weddle

Photographer-at-large Dan Vermillion

Advertising

Operations Louise Ferrari

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President & CEO Rick McCartney Editorial Director RaeAnne Marsh Senior Art Director Benjamin Little

Corporate Offices 6360 E. Thomas Road, Suite 210 Scottsdale, AZ 85251 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com

Vol. 3, No. 12. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 6360 E. Thomas Road, Suite 210, Scottsdale, AZ 85251 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/or financial professional. © 2012 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.

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Deborah Bateman, Executive Vice President, Director of Wealth Strategies, National Bank of Arizona

Guest Editor

Healthy, Wealthy and Wise

Deborah Bateman is National Bank of Arizona’s executive vice president and director of wealth strategies.

She oversees the delivery of products and services for the bank’s high-net-worth individuals and is responsible for the NB|AZ Private Bank, NB|AZ Wealth Management and Executive Banking. Bateman, who has more than 35 years of banking experience, is also responsible for the bank’s Nonprofit Banking, Women’s Financial Group and other key departments. Bateman’s extensive community leadership spans a variety of organizations and causes, including Fresh Start and The O’Connor House, and she has been honored with several community awards.

Now, perhaps more than ever, business owners must manage their wealth in ways that help ensure security while positioning them to take advantage of opportunities in both the near or long term. Whether they are growing their businesses or simply preparing themselves and their employees for the future, the current environment requires that wealth management be as much a part of business as profitability.

Business owners — responsible both for family and business finances — would be wise to make time in their frenetic schedules to develop, implement and monitor a comprehensive, well-crafted plan to help achieve their personal goals as well as maintain and attract talented employees while operating their companies efficiently. By working closely with experienced advisors to help them determine and plan for their financial needs and goals, they can develop effective strategies while continuing to focus on their real interests: their families and their businesses.

Many of the truisms of yesterday no longer provide valid guidelines. To get a handle on the changes in practices and even attitudes toward wealth management that today’s economy has fostered, Glenn Swain went inside the industry to speak to professionals in asset management, private banking, credit unions and financial planning for this issue’s cover story.

The skills gap’s effect on the work force remains a hot-button issue as our economy struggles to recover.

With education, then, in the spotlight, attention has been given to assessing and comparing schools’ performance by quantifying specific skills in standardized testing. In this issue’s “Roundtable” feature, Peter Weddle, former CEO of Job Bank USA, Inc., questions this reliance as he offers evidence that there is no clear correlation between standardized testing and the knowledge and skills our youth will need to prosper in the 21st-century world of work.

Don Rodriguez gives us a look at the development of entertainment districts in our city in his “Focus” article on the dynamics needed to make them a success and the impact they have on the economy. This issue’s “Marketing” feature explores why and how a company can tap into its customers as an effective resource to drive its sales and marketing efforts and fuel its growth. And in his final article for the three-part “Business Education” series, Dennis Niven offers valuable information to business owners about “The Crucial Monthly Close.” Also in this issue is a Special Section devoted to profiles of top luxury residential real estate agents in our community and some of their high-end properties.

Covering diverse subjects in each issue, In Business Magazine focuses on content to benefit business in the Valley. I enjoy reading the magazine every month and I’m pleased to help present this month’s issue.

Sincerely,

Deborah Bateman Executive Vice President, Director of Wealth Strategies National Bank of Arizona

Connect with us:

Focus on Wealth Many businesses have reportedly been sitting on their wealth awaiting the outcome of the presidential election. With billions spent and an outcome that was not too different from where we started, little has changed — but it is likely that businesses will be forced to move forward. A focus on building their businesses and profitability will surely kick in and mean that managing their wealth will once again be an important consideration for them and their employees.

inbusine ssmag.com

This is why we have decided to make the December issue our wealth management issue.

There is no better person than Deborah Bateman, head of National Bank of Arizona’s Wealth Strategies Division, to head up this issue. Her knowledge of business, our community and private banking are why we asked her to be our Guest Editor. We thank Deborah for her assistance in shaping this issue and her continued support of our business community.

—Rick McCartney, Publisher

Story Ideas/PR: editorial@inbusinessmag.com Business Events/Connections: businessevents@inbusinessmag.com Marketing/Exposure: advertise@inbusinessmag.com Or visit us online at www.inbusinessmag.com

D e c e m b e r 2012

9

Feedback

Valley Leaders Sound Off

Executives Answer

What role should business play in assisting employees in retirement planning?

Robyn Barrett

Rick DeGraw

Founder and Managing Partner FSW Funding Sector: Financial

Executive Vice President, Chief Administrative Officer SCF Arizona Sector: Insurance

I think businesses need to help fill the gap where Social Security will fall short. Most employees are spending their income on living and don’t know how or where to begin investing for retirement. Businesses can provide employees a valuable benefit by offering a Saving Incentive Match Plan for Employees, or, as it is commonly known, a SIMPLE IRA. SIMPLE IRAs are tax-deferred, employer-provided retirement plans that allow employees to set aside money and invest it to grow for future use. The SIMPLE IRA is employer sponsored, like the 401(k), but offers simpler, less costly administration rules and is low in risk. Like a 401(k) plan, the SIMPLE IRA is also funded by a pre-tax salary reduction.

To encourage employee participation and planning for the future, companies can choose to match up to 3 percent of their employees’ compensation, but only if the employee is contributing. The overall cost to providing retirement benefits is relatively low, and will not only benefit employees but can also help small businesses be more competitive when trying to recruit top talent.

As SCF Arizona transitions to become the largest private mutual insurance company in Arizona, we believe we have a strong commitment to helping our employees have all the tools necessary for a secure retirement. Our employees are the daily face and contact of our company with the business community.

We are committed to having our employees healthy and well trained and secure in their future. We have a strong 401(k) retirement plan in place, and we provide employees with extensive opportunities to meet in groups and privately with retirement planning specialists and have control over the type of investment returns they desire.

In other words, we recognize that employees have different needs for retirement planning. They can choose greater risk with possible greater returns or less risk with virtually guaranteed returns. We recognize that an employee’s age and family status have an impact on the type of investment they choose. We want them engaged directly in their retirement planning with the ability to make choices and changes as their retirement fund builds.

FSW Funding, L.L.C.

SCF Arizona www.scfaz.com

fswfunding.com

Robyn Barrett is founder and managing member of FSW Funding, specializing in factor financing for small to mid-sized companies nationwide. Barrett holds a Bachelor of Science in accounting, a masters in business administration; she holds her CPA and spent more than a decade in corporate finance before launching her company in 2001. Barrett works with start-ups facing cash flow challenges, companies with previous credit issues and companies poised for growth.

Rick DeGraw has been with SCF Arizona for seven years, previously serving as communication director for the Maricopa Community Colleges; president & CEO of Roots Development, Inc.; an assistant professor at ASU; and as Arizona State Senate Judiciary Staff. DeGraw is a graduate of Westminster College, Rutgers University and Princeton University. He has been in the Valley for 40 years and has been active in politics and community service with numerous entities.

Jeff C. Young

investment professionals to offer assistance in the employees’ decisions regarding investment and plan choices, asset allocation and the amount of the contribution itself. The costs of making poor decisions can be high, and the company could offer significant help to the employee by providing for experienced advisors in an atmosphere of confidentiality and on company time.

Besides offering individualized sessions for the enrollment periods, the company may also find it beneficial to have quarterly or semi-annual group meetings for the plan sponsor to review investment fundamentals and broad economic overviews.

Senior Vice President First Financial Equity Group Sector: Financial

I will limit this discussion of “retirement planning” in the context of the question to the company’s role in its specific retirement plan as it relates to the employee.

(Obviously, in the full consideration of the total retirement planning exercise, the company would play no role whatsoever given the myriad components involved, of which the corporate retirement plan is just one part.)

I believe it is incumbent upon the retirement plan sponsor to provide

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D e c e m b e r 2012

First Financial Equity Group ffec.com

Jeff C. Young is a senior vice president of First Financial Equity Group in Scottsdale, Ariz. He has been an investment advisor and financial planner since 1982. Young is a Registered Investment Advisor (RIA), has a Series 7 Securities License as well as Series 63, 65 and 39. He is also a member of FINRA’s Board of Arbitrators. He is a retired lieutenant colonel in the U.S. Army Reserves.

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Briefs

Quick and to the Point

Bytes Tech Career Center The Arizona Technology Council is a connection to post and search for tech jobs in Arizona. The portal, powered by Jobing.com, is a useful online employment tool. aztechcouncil.org

Desktop in the Cloud Just launched is SkyDesktop, a free, Cloudlive; SkyAppMarket, a marketplace dedicated to the best of breed, affordable Cloud apps; and SkySingleSignOn, a login management system freeing users from having to manage multiple logins and passwords. skydesktop.com

Benefits of Economic Census The Government Economic Census assists trade associations, chambers of commerce and other business organizations, which rely on information from the Census for economic development and business decisions. The Economic Census, the U.S. Government’s official five-year measure of American business and the economy, is conducted by the U.S. Census Bureau.

Response is required by law. census.gov/econ

The New inbusinessmag.com From archived articles to news of the day, inbusinessmag.com has become the hub for business owners, executives and those vested in business in Arizona. Users are able to get connected with sector-specific articles, business events and the latest business news. inbusinessmag.com

Go online for more!

Marketing the ‘Shop Local’ Message Is a Local Priority

In the Town of Gilbert, the “shop local” message is getting a boost from local entities that recognize what’s at stake — its own municipal government and the local chamber of commerce.

“The ‘Shop Gilbert’ campaign is vital to our community as it informs citizens about the importance of shopping local,” says Mayor John Lewis. “Tremendous benefits occur when we shop in our own neighborhoods. Our business community and the sales tax money generated help to continuously improve the Town of Gilbert, keeping it clean, safe and vibrant.”

“All Gilbert businesses are welcome to be a part, not just [Gilbert Chamber of Commerce] members,” says Chamber President Kathy Tilque, explaining participating businesses are promoted on the Shop Gilbert website.

Recognizing that “we didn’t used to have a lot here, and residents were used to shopping elsewhere on their way home,” as Tilque observes, Gilbert took a proactive approach once the San Tan Mall opened and the area began seeing the advent of car dealerships and other major business growth. Shop Gilbert, sponsored by the Town of Gilbert, The Gilbert Republic and the Gilbert Chamber of Commerce as a result of a task force that also involves the local school district and individual business owners, has promoted the message through banner signs across Gilbert Road, photo contests and other interactive efforts.

Latest is a video campaign that includes four segments. Each video emphasizes different industries, all of which contribute to the town’s tax base. All videos of the Shop Gilbert campaign were scripted by Tad Peelen, part owner of Joe’s Real BBQ and member of the Shop Gilbert task force. They were produced by Gilbert-based 4th Wall Productions and exclusively feature Gilbert-based locations. Videos will be aired on the town’s government Channel 11 and as a public service announcement at Phoenix-Mesa Gateway Airport, as well as on the Shop Gilbert website.

—RaeAnne Marsh Shop Gilbert shopgilbertaz.com

Visualize This

Seeing is Believing Shop Local is Promo to Gilbert Residents

The City of Gilbert and the Gilbert Chamber

of Commerce have banded together to create a video to local residents that showcases

Visit our “Bytes” link online.

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D e c e m b e r 2012

the importance of doing business with local companies. See the video at shopgilbertaz.com.

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Photo courtesy of xxxxx

based desktop where all of one’s files and apps

Briefs

Quick and to the Point

GPEC Initiative Comps California CEOs with Travel and an In-depth Asset Tour

Bio Talent Pool Attracts Bridgestone to Mesa

Putting its money where its mouth is, the Greater Phoenix Economic Council is treating CEOs of qualified California-based companies — high-tech companies, emerging technology companies with compelling intellectual property, or those with corporate facilities with 200 or more employees — to airfare, transportation and hotel accommodations to bring them here for an insider’s look at the Greater Phoenix market. Launched in early November as “California 50,” its number was doubled to 100 almost immediately as GPEC received tremendous response.

Although noting, “In Arizona, we need California to turn its economy around — we depend on it,” GPEC President and CEO Barry Broome observes that many businesses are looking to leave the Golden State in the wake of last month’s election in which California voters passed Proposition 30, a $6-billion tax initiative that will raise income taxes on those making more than $250,000 annually and sales taxes on all Californians. Lately, in fact, California companies have been contacting GPEC as they consider the Greater Phoenix area for expansion or relocation of their management teams, according to Broome.

“That’s why we’re giving California CEOs a chance to preview the Greater Phoenix market and consider expanding their management teams to the region as a way to cut costs,” Broome continued. “With more than 70 direct flights between Phoenix and San Jose alone every week, it’s both convenient and cost-effective for CEOs to operate their companies while residing in Greater Phoenix.”

Over the past two years, Arizona has implemented many business-friendly policies in an effort to attract more high-capital investment to the Grand Canyon state. Visiting CEOs will be briefed on the region’s business-friendly policies, including lower capital gains taxes and a corporate income tax rate that will go down to 4.9 percent by 2017, a $9,000 jobs tax credit, an R&D tax credit and a $630-million tax credit program for export industries.

Exclusive, one-on-one visits into the market will include an in-depth industry and market overview, CEO introductions and a regional asset tour.

—RaeAnne Marsh

Bridgestone Corporation, the world’s largest tire and rubber company, is bringing a multi-million-dollar capital investment to the Greater Phoenix area with the establishment of a research and development facility in southeast Mesa. The facility will be focused on the use and production a Guayule, a shrub native to the Southwest that produces natural rubber in its roots and bark. Economic benefit to the region includes the creation of 32 high-wage jobs (average annual salary of $75,000).

“We felt that Arizona has a resource pool of candidates from local universities with strong engineering and environmental foundations; it is also common to find those experienced in chip manufacturing, chemicals, mining, and other industrial backgrounds which are applicable to the biorubber research. Arizona State University, for example, has an emphasis in renewable fuels that has synergies with the biorubber processing,” says Bill Niaura, director of new business development for Bridgestone Americas, Inc., explaining that the Mesa area is particularly attractive because of the population density and concentration of higher education programs. He notes that Arizona is attracting businesses that are innovators in bioagricultural and bioscience interests.

“By locating in the Mesa Industrial Park, we have also located close to our research farms areas,” Niaura says. “Mesa offers convenience and the opportunity for growth.”

—RaeAnne Marsh

Greater Phoenix Economic Council

Bridgestone Corporation bridgestone.com

gpec.org

Prospecting Behavior Trumps ‘Sales Personality’

Studies show that having a “sales personality” is only one piece of a complex puzzle. In fact, a recently conducted study found that focusing on personality to forecast sales success is putting the cart before the horse.

“Before personality traits, sophisticated training or financial incentives can even come into play, salespeople must first have prospective buyers to sell to. That means sales prospecting,” says Trelitha R. Bryant, executive vice president of field testing and research with Behavioral Sciences Research Press. The Dallas-based company teamed with internationally noted behavioral scientist and author George W. Dudley to try to predict prospecting activity in salespeople. Bryant notes, “The link between prospecting behavior and sales productivity is well established. Knowing beforehand whether new hires can and will actually prospect comes first on the long list of competencies managers should look for.”

For the study, a sample of 1,627 U.S. salespeople from a variety of sales settings was equally split between those known to generate high

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levels of prospecting activity and those with very low demonstrated prospecting activity. Using a specialized psychological assessment called SPQ*GOLD®, the researchers measured the sellers’ level of comfort and willingness to prospect for new business. The same test was administered to an entirely different sample of 1,630 salespeople whose prospecting levels were unknown at the time of assessment. Then, using only a statistical model created from the first group’s test scores, the researchers were able to correctly identify 83 percent of the high prospectors and 79 percent of low prospectors in the second group.

“When you can predict sales prospecting accurately, you are in effect predicting sales success,” says Dudley. Acknowledging that prospecting doesn’t guarantee success, he observes, “It’s possible to prospect without selling. But you can’t sell without customers to sell to, and that takes prospecting.”

—RaeAnne Marsh Behavioral Sciences Research Press salescallreluctance.com

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“With their Midwest roots, Alerus Bank & Trust has a ‘we’re here to take care of you’ mentality that you don’t find in other banks. We finally feel like we’re working with a partner, not just a banker.”

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By the numbers

Metrics & Measurements

Election Lessons: No Mandate for Business?

What direction does the recent election portend for business?

Results are in and, after an exhaustive campaign season, it seems that this year’s election has no mandate for business and we may be in for more of the same from our government. The President is as he was, the House and Senate are as they were (at least leadership-wise), and local elections and propositions seemed to say little in giving business owners any further direction.

It’s not a simple Romney vs. Obama distinction. Even in Arizona, where the ostensibly “pro-business” candidate won the state’s electoral college votes, voters defeated the “Small Business Job Creation Act” (Proposition 116). This act would have amended the Arizona Constitution to allow the state to give businesses a larger break on taxes paid on newly acquired equipment or machinery. The proposition failed despite support by Senate President-elect Andy Biggs and support by the National Federation of Independent Business. It was the only

proposition on the Arizona ballot in this year’s election that was directed to strengthening the economy.

On a local level, many contests were closer than usual. And, although the state overall went for the Republican presidential candidate, Democrats made gains in the state legislature. The Arizona State Senate gained four Democrats (13 Democrats, 17 Republicans) and the House gained five Democrats (24 Democrats, 36 Republicans).

As a result, Arizona business owners may expect to see more of the same as they decide what to do over the economy.

Unchanged are: Obamacare is moving full-steam ahead and will take full effect as regulators determine how to implement changes; the battle will continue over top-end taxes, potentially increasing taxes for some small businesses; corporate and investment taxes will fall from the current rate of 35 percent (Obama’s proposed

Arizona Election Results U.S. President

Obama (D) Romney (R) – Johnson (L)

✓

Congress — Dist. 1

Kirkpatrick, Ann (D) – Paton, Jonathan (R)

Votes Percent 929,422 44.0% 1,141,974 54.0% 28,556 1.4%

Votes Percent 48.5% 108,640 45.4%

✓ 116,148

Congress — Dist. 2

Votes Percent McSally, Martha (R) 137,339 49.8% 137,993 50.0% Barber, Ron (D) –

✓

Congress — Dist. 3

Votes Percent Saucedo Mercer, Gabriela (R) 58,258 37.7% 89,278 57.8% Grijalva, Raul M. (D) –

✓

Congress — Dist. 4

Votes Percent 156,369 66.9% Gosar, Paul (R) – Robinson, Johnnie (D) 66,064 28.3%

✓

Congress — Dist. 5

Votes Percent 166,897 67.5% Salmon, Matt (R) – Morgan, Spencer (D) 79,966 32.3%

✓

28 percent slightly higher than Romney’s proposed 25 percent); regulations remain intact, so no rollback of the Dodd-Frank Wall Street Reform and Consumer Protection Act or changes to Sarbanes-Oxley financial reporting law; and stimulus spending will continue to be a real option.

While more of the same may keep business second-guessing what the future of the economy will be, perhaps the only “mandate” that voters expressed is that there are no easy answers to fears regarding jobs and the economy.

—Mike Hunter

Arizona precincts reporting: 100%

Congress — Dist. 6

Schweikert, David (R) – Jette, Matt (I)

Votes Percent 163,755 61.6% 88,151 33.2%

✓

Congress — Dist. 7

Pastor, Ed (D) – Cobb, Joe (L)

✓

Congress — Dist. 8

Franks, Trent (R) – Scharer, Gene (D)

Votes Percent 89,543 80.8% 20,721 18.7%

Votes Percent

✓ 157,517 63.6%

Congress — Dist. 9

Parker, Vernon B. (R) Sinema, Kyrsten (D) –

86,047

34.8%

Votes Percent 101,089 45.2% 108,056 48.3%

✓

Prop. 114: Crime victims not liable for harm to attacker

Votes Percent

1,537,441 80.2% Yes – No 379,275 19.8%

✓

Prop. 115: Involve political office-holders in judge selection

Votes Percent Yes 506,594 27.5%

1,336,121 72.5% No –

✓

Prop. 116: Property tax breaks on newly acquired equipment

Votes Percent Yes 787,866 44.1%

1,000,066 55.9% No –

✓

Prop. 117: Limits on property-tax growth

Votes Percent

1,043,965 56.7% Yes – No 796,796 43.3%

✓

Prop. 118: Change investment formula for state land trust funds

Votes Percent

878,476 50.7% Yes – No 854,962 49.3%

✓

Prop. 119: Allow state trust land exchanges

Votes Percent

1,108,381 62.4% Yes – No 668,427 37.6%

✓

Prop. 120: State sovereignty

Yes

No –

✓

Votes Percent 570,776 32.1% 1,208,591 67.9%

Prop. 121: Adopt a top-two primary election system

Votes Percent Yes 605,340 32.8%

1,240,253 67.2% No –

✓

Prop. 204: Renew 2010’s “temporary” 1-cent sales tax

Votes Percent Yes 700,578 35.9%

1,251,454 64.1% No –

✓

Source: Arizona Secretary of State. All results are as of time of press.

Key Indicators will return in January.

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Trickle Up

A View from the Top

Joel E. Barthelemy: Turning Issues into Opportunities

In education, computing and healthcare, GlobalMed’s founder seeks problems — and fixes them

by Gremlyn Bradley-Waddell

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administrators and professors could discuss concerns about technology, which at the time focused on computers vulnerable to tampering by students. And so he created a product that made the computers more secure.

Business was booming, so Barthelemy began diversifying, investing in a camera company and investigating distance learning. Then, the unthinkable happened.

“We got hit by the dot-com bomb,” he says.

“I let people go and shut my businesses down.”

He’d gotten married a few years earlier and the couple had a baby on the way. Times were tough, says Barthelemy, who, earlier in life, had joined the Marine Corps reserves because he didn’t want to reach middle age and realize he’d never served his country.

“I’m a man of faith, and I’ve always believed that I am to continue moving forward,” he says. “And I’ve seen the hand of God in my work.” Like the time, he says, when he didn’t have money for payroll and a customer paid $80,000 in advance. Or the time he emailed a client, half-heartedly inquiring if some figures had been calculated correctly, and the recipient reimbursed him two weeks later for $257,000 because the figures had, indeed, been improperly calculated. “You have to stay the course and turn issues into opportunities,” he says.

That he did. In 2002, he started GlobalMedia Group, L.L.C. (branding it more popularly as GlobalMed), with seven employees and an idea of focusing on imaging and camera technologies. A few years later, Barthelemy’s online friendship with a pathologist turned into a boon for the young company, which found its technology being used to catalog cell structures. A subsequent relationship with another pathologist led to connections at Stanford and Harvard universities, and Barthelemy soon realized GlobalMed’s goal should be to help save lives through better innovative processes. But amid the success, there have been tough decisions, like when company growth outpaced the skills of good

Making Headlines

■■ The W.P. Carey School of Business at ■■ ■■ ■■ ■■ ■■ ■■

Arizona State University bestows the “Emerging Entrepreneur Award” on GlobalMed (2012) Milpitas (Calif.) High School receives 25 iPads from Scottsdale-based GlobalMed Inc. 500 ranks GlobalMed in Top 100 fastest-growing companies, seventh in healthcare (2012) GlobalMed ranks in the Top 40 List by Modern Healthcare Magazine (2012) GlobalMed ranks No. 122 on Deloitte Technology Fast 500 (2011) GlobalMed is named one of the Top 25 Fastest Growing Health Companies and makes Inc. Magazine’s list at No. 300 Overall (2011) Joel E. Barthelemy, GlobalMed’s CEO and founding director, is named the Ernst & Young Entrepreneur of the Year® 2011 winner for Technology Services in the Desert Mountain Region

personnel. Similarly, the choice to move into medical device manufacturing was not an easy one because of the inherent regulatory and control issues it brings with it, he says.

Today, however, Barthelemy knows he’s made the right choices along the way.

GlobalMed boasts more than 100 employees, and assists medical personnel from all over the world as well as organizations like the Veterans Administration. “Our clients all want the same thing: to get the best information in the shortest amount of time and resulting in the best outcomes for their patients,” he says. “And if they can save some dollars, that’s even better.”

GlobalMed globalmed.com

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Photo courtesy of GlobalMed

Even as a kid growing up in St. Cloud, Minn., Joel E. Barthelemy had an interest in solving problems. He was one of those types who takes apart a radio or a car and reassembles it — usually correctly — just to see how the pieces fit and work together.

His can-do attitude, curiosity and talent for hearing others out has served the selfdescribed “serial entrepreneur” and founder and managing director of GlobalMed, the Scottsdale-based telemedicine company, well in the business world. GlobalMed ranked 95th on Inc. Magazine’s 2012 list of the country’s fastest-growing private companies, and on the magazine’s list of the top 10 healthcare companies, it snagged the No. 7 spot.

“It’s all about listening to what your customer’s pain points are,” Barthelemy says. “I listen to where a given industry is challenged, and then I set out with the engineers to translate a problem into a solution.”

His career track started when he interned at an educational computing company about two years into college. He was soon hired on full-time, and while on the job at a school one day, he witnessed how the company’s user-friendly technology allowed teachers to teach and, more importantly, engaged the youngsters. “All these third-graders were lined up, leaving their classroom,” he recalls, “and their little faces lighted up as they got closer to the computer lab. They were thrilled with learning.” Barthelemy was hooked by their reaction and wanted to create something with a similar effect. “I like to be someone who has impact,” he says.

So when he left the firm after three years, he started his own business, designing networks and new technologies that cost less than competing products. One early client, in fact, was his former employer. In the 1990s, he entered the semiconductor industry after seeing educators get, as he put it, “ripped off ” by other firms that didn’t address their needs. To learn about his customers’ needs, he held forums so teachers,

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D e c e m b e r 2012

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Wealth Management:

How to Prosper in the New Economy Today’s economy has fostered changes in practices and even attitudes toward wealth management

by Glenn Swain

A

fter four years of government polices like the zero-down-payment initiative, the Single-Family Affordable Housing Tax Credit, the American Dream Downpayment Initiative and other questionable mortgage and financial innovations, the housing bubble burst.

While debate continues on the causes of the Great Recession, the popping of the $8 trillion housing bubble was instrumental in the collapse of business investment and consumer confidence, massive job loss, and the drastic drop in the stock market.

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In September 2008, $1.2 trillion in market value was gone when the House rejected the $700-billion bank bailout plan. Among the victims were some of the largest global financial firms, including Lehman Brothers, which, before declaring bankruptcy in 2008, was the fourthlargest investment bank in the U.S. Left in the aftermath was a completely changed investment business where money managers are thinking outside the traditional model of how they managed portfolios in the past. It is an industry that is tiptoeing its way into a new year of uncertainties, a volatile stock market and continuing global economic problems.

Wealth managers provide a service of portfolio management and strategic financial planning for individuals. Since the Great Recession, financial planners have had to become pseudo-psychologists with clients who are in fear of how to proceed and whose risk tolerances are being tested. But with the help of trusted money managers, more and more investors are experiencing a renewed faith in future investing.

Rich Goldman, CEO of Rich Goldman Asset Management in Scottsdale, says many of his clients are concerned now about what kinds of returns their money provides to allow them to live a certain lifestyle. “People are very scared,” he says. “What used to be considered safe was putting money into bank accounts and interest-bearing investments like bonds. Now that interest rates are so low, they don’t have that choice. If money is invested at such low rates, it loses value much faster in terms of its purchasing power. The definition of risk has really changed from the potential of losing money to not earning enough on it to be able to live.”

“Many are fearful and don’t know what to do,” says Bob Nichols, who has been a Desert Schools Federal Credit Union financial advisor for 11 years. “We’re trying to guide them.”

In the past, people were taught to invest in mutual funds, which were traditionally a safe place to store money and receive a return. Not any more. Money managers and brokers have had to develop a new way of doing business.

Sensing a downward trend was occurring in 2007, Cynthia Fick, owner of Phoenix-based Financial Life Planners, LLC, began selling on her client’s portfolios for cash. “It was like seeing a haboob coming, you prepare and batten down the hatches,” Fick says. “But I never thought the stock market would go off the cliff. By the time it did, I had my clients in half cash.”

“It’s a very challenging time for the income-oriented investor,” says Mike Sullivan, a CFA and regional director of investments for the Western United States at BMO Harris Private Banking. “Those living on investments have two fears: market volatility and the ability to produce an income stream off their portfolio.”

But with uncertain times comes creative solutions. More money managers are seeing clients ask for great diversification. Where, in the past, allocation models often included investments spread across bonds, stocks and cash, money managers are thinking outside this traditional model and exploring diversification with different risk models.

Since the Great Recession, financial planners have had to become pseudopsychologists with clients who are in fear of how to proceed and whose risk tolerances are being tested.

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“More money managers are offering styles that change with the underlying current events so that clients feel that their values are not fluctuating as much,” says Daniel Laraway, a certified wealth strategist at Scottsdale-based Laraway Financial Group. “It is the volatility that makes people uncomfortable and make moves based on emotions, not on facts.”

“We’re seeing a trend toward spreading risk and volatility across more asset classes,” says Paul Rutkowski, managing partner at Scottsdale-based Nelson Financial Services.

“People now realize that it is not wise to put one’s retirement plan on autopilot. I believe clients today need a professional more than ever to determine how they will be able to retire on an income stream that can be sufficient for them.”

Money managers are getting creative in order to diversify a client’s portfolios.

“We also have been diversifying assets in products, such as annuities, which can offer a guaranteed income stream for life,” Rutkowski says. “Of course, these guarantees are based upon the claims-paying ability of the issuing company. Depending on the client, we may explore products that can offer an ability to secure an income stream despite downward moves in the market. More than ever, clients are seeking strategies to help them ensure a comfortable retirement.”

A hidden villain for investors is the inflation rate. Released by the government as the Consumer Price Index, the inflation rate is basically a basket of goods and services that does not include unpredictable items like food and energy. The government deems food and energy to be too volatile; changes in food and energy prices distort changes in the overall inflation rate.

“It is very important to have a diversified investment portfolio designed to have the ability to keep up with or outpace the rate of inflation,” says Rutkowski.

“What people are most concerned about, whether they are conscious of it or not, is the way in which inflation affects them,” Goldman says. “My definition is not the government’s definition. It’s ‘How much spendable income do you have?’ and ‘Does it buy you everything

»

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Top 10 Wealth Planning Mistakes to Avoid Trish Stark, senior vice president and director of client relations at First Western Trust in Scottsdale, notes that with the complicated nature of wealth planning, certain factors often get overlooked. She shares ten tips to help individuals avoid making common mistakes.

1. Not understanding the rules To avoid accidentally adding the wrong assets to a trust and inadvertently undermining one’s wealth plan, one should engage an advisor who knows the ins and outs of estate and wealth planning.

2. Paying unnecessary taxes Making a significant charitable contribution in the form of cash is an inefficient distribution method. Instead, one should choose a highly appreciated asset.

3. Overlooking the details One may have hired and paid an estate planning attorney to create an estate plan, but the best-laid plans can unravel by not titling one’s assets consistently with one’s estate plan.

4. Assuming one’s loved ones know what one wants One should make sure to have a living will and power of attorney documents in place against the possibility that one becomes incapacitated or passes away unexpectedly.

5. Thinking one will die early It’s a mistake to wait until one is in one’s 90s to recognize the full impact a long life has on one’s financial resources.

6. Thinking one will live forever Not creating and implementing a financial plan due to thinking one has more time may create financial challenges for loved ones.

7. Letting one’s lifestyle dictate one’s portfolio structure One should determine one’s risk tolerance (the amount of market volatility that’s acceptable) and let that guide one’s investment and spending plan.

8. Being narrow-minded Understand that security pertains to more than just financial capital. Life-changing events — including family issues, loss of job, health care, death and disability — may impact one’s overall wealth plan.

9. Assuming one doesn’t need a trust A trust can protect oneself and loved ones from creditors and predators.

10. Assuming identity theft happens to someone else One should take care when providing personal details and check one’s accounts often to ensure that no suspicious activity has occurred.

D e c e m b e r 2012

23

“My definition is not the government’s definition. It’s ‘How much spendable income do you have?’ and ‘Does it buy you everything that you need?’ The dilution in the value and purchasing power of each individual unit of money they have — that’s what inflation does.”

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that you need?’ The dilution in the value and purchasing power of each individual unit of money they have — that’s what inflation does.

It’s a total deception and people have no idea. The government has an enormous incentive to understate inflation. Inflation rate could be off 10 to 15 percent.”

“Inflation is a challenge for all investors because it creates a hurdle rate that must be covered before you can begin to earn real returns,” Sullivan says. “Inflation today, although very low by most measures, is a problem because interest rates are being driven to extremely low levels by Federal Reserve policy and general investment fear. As a result, savers are not able to earn a real return from what are generally considered conservative, income-oriented investments. Things like CDs, Treasury notes and high-quality corporate bonds are not likely to earn the inflation rate over time.

“Investors are being forced to take on more risk in order to earn real returns, so they are moving into lower-credit-quality, fixed-income assets and stocks,” Sullivan adds. “Because yields on high-quality, fixedincome assets like treasury notes and bonds, and CDs, are extremely low, investors need to assume some added credit risk in order to earn a real return above inflation. By ‘lower-credit-quality,’ I mean investmentgrade corporate bonds and, in many cases, non-investment grade or junk bonds. The other alternative is for them to buy dividend-paying stocks, which, in many cases, are providing current yields at or above the 10-year treasury yield and have the opportunity for appreciation and increased dividend payouts over time.”

“Inflation can have a huge impact on your portfolio,” Fick notes. “For instance, inflation leads to higher interest rates and this could have a negative impact on most bonds. Few people seem prepared for a big drop in their bond holdings and bond mutual funds. Given that the Fed is pumping dollars into the money supply through Quantitative Easing and that government debt is rapidly increasing, I would suspect that inflation could rear its head.”

“We have been blessed with a low inflation rate, but there is no guarantee that we will have that going forward,” says Laraway. “We may even have deflation, so it is valuable to have that conversation with your investment advisor so that you know what to look for and how to protect your investments in various financial scenarios.”

Investors have started looking at overseas investments to improve portfolios. While the returns can be lucrative, there comes with it additional risk involving tricky exchange rates and tax regulations.

Detailed research by a professional and patience are required when considering investing in foreign countries.

“People are starting to understand that it’s a bigger world out there and not only are there many attractive investments overseas, it is important to know the role of the United States in the big picture,” says Goldman, who admits he’s influenced by studying history. “There is no precedent in history for borrowing more money to stimulate an economy that’s too much in debt. An analogy is treating a hangover with more drink; it’s not going to work.”

“International investments used to be a non-correlated asset to U.S.

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Investors have started looking at overseas investments to improve portfolios. While the returns can be lucrative, there comes with it additional risk involving tricky exchange rates and tax regulations. Detailed research by a professional and patience are required when considering investing in foreign countries. stock markets, meaning that they did not trade in sync with U.S. stocks,” Fick says. “Since we have become a more global economy, I think overseas companies will trade more like the U.S. in the coming years.”

Sullivan also sees positives in overseas investments, especially multinational U.S. companies, which are trading well and yielding dividends.

“Emerging international market equities are attractively valued and should have an overweight position in most portfolios,” he says. “In contrast, we think that large, company-developed international market equities, which are primarily European or Japanese, should be avoided at this time. Valuation in the developed markets is quite compelling, but the future of the European Union and the Euro is quite uncertain. We favor emerging markets where we have much higher growth rates and much more attractive fiscal outlooks. I like the emerging international markets like Brazil, Russia, India, Korea, Asia and Latin America, while avoiding European exposure.”

“Depending on a client’s goals, objectives and risk tolerance, using investments available in other countries to expand a portfolio can make sense as a diversification strategy,” Rutkowski says. “In any market or country, there are opportunities and risks associated with investing.”

In the days and weeks after the re-election of President Barack Obama in November, investors’ fears of continued government spending and higher taxes on capital gains and the rich caused the stock market to dip, causing some market analysts to forecast another recession is on the way. Others claim stocks are getting stronger and now is a good time to invest.

“I do not have a crystal ball to view the future but I do recommend that investors have a plan in place that offers high-quality investments as well as strategies that are designed to offer some protection when markets correct,” Rutkowski says. “Economic uncertainty can make markets volatile. It is important to prepare for uncertainty and volatility.

I believe investors benefit from professional guidance, to help them put a plan in place to reach their goals and objectives.”

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“I’m ready to get defensive and raise cash if the market starts to signal that it can’t break out to the upside in 2013,” Fick says. “If the market breaks out and moves significantly past these old highs, look out. We will be making money in stocks hand-over-fist. I will let the market show us what it wants to do.”

“The developed economies will continue to generate well below average growth as consumers and governments continue to deleverage,” Sullivan says. “The enormous debt bubble built up over the last decade will take many years to work off, and we should expect investment returns to be below historical averages. Investment success will require broad diversification, a willingness to use non-traditional asset classes and nimble responses to changing asset valuations and market opportunities.” In an interview held prior to the election, Sullivan observes, “While the markets could be expected to show some heightened volatility around new fiscal policies, regardless of who is elected, investors should try to look through the noise and focus on the longer-term issues that will affect portfolio returns.”

“We are quickly approaching the old highs we reached in the stock markets in 2000 and 2007,” Fick observes. “Both times in the past, the market has had a major downturn. So I will be cautious as we get closer to our old highs.”

BMO Harris Private Banking bmo.com/harrisprivatebanking Desert Schools Federal Credit Union desertschools.org Financial Life Planners, L.L.C. financiallifeplanners.com Laraway Financial Group djlcws.com Nelson Financial Services dnelsonfs.com Rich Goldman Asset Management richgoldmanassetmanagement.com

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D e c e m b e r 2012

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Marketing

Packaged to Impress

Customers Can Be a Company’s Best Marketers Customers are uniquely equipped to influence a company’s product development, sing its praises and even close sales

by Bill Lee The old paradigm works like this: A company produces goods and services that help customers get a job done. In return, the customers pay the company money. The company takes that money and invests a good portion of it in traditional sales and marketing efforts — including product developers, creative people and salespeople, all of whom are paid to figure out what buyers want and to say good things about the company — in a quest to get even more customers.

Wouldn’t it be far more effective to let the customers themselves drive the company’s sales and marketing efforts and fuel its growth? No matter how much money a company spends on third-party marketing people, they’re still a layer removed from those who buy. They can never really understand customers because they aren’t customers themselves.

Here are seven things a company’s customers can do better than the company itself:

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Attract high-value information from other customers. This “inside knowledge” of their peers creates stratospheric value. Facebook is the quintessential example. Imagine a traditional company that tried to generate the kind of information Facebook generates: real-time data on what movies people are watching, what restaurants they’re visiting, what vacations they’re taking, and what books they’re reading. Facebook dispensed with all the research most companies would have tried to dig up and, instead, focused on using what customers provided.

Believably promote the product. It’s this simple: A company has something to sell. Its customers don’t. This makes customers far more credible to other potential customers than agencies or internal employees. SAS Canada is a good case in point. Several years ago, retention rates had declined from the high 90s to the mid 80s. SAS software was doing

an excellent job of keeping up with customer needs. Unfortunately, the customers didn’t seem to realize this. So a small group within SAS, led by Wally Thiessen, built a team of 250 “customer champions” along with 50 “super champions” to spread the word for them.

SAS saw that it would be futile for the company to keep pointing out how great they were. However, they knew that defecting customers might listen to what other SAS customers had to say. With support from Thiessen and his team, SAS customer champions established regular events in more than 20 major cities, set the agendas, selected speakers (and made presentations themselves), and stayed in touch afterward via online forums and e-newsletters. As a result, retention rates rebounded back up to the high 90s.

Why would customers make such an effort? SAS customer champions certainly didn’t do it for rewards or prizes (a mistake many companies make with their customer advocates). Rather, they did these things because SAS software really was doing a terrific job, and getting the word out to their peers helped the customer champions build social capital — increasing their visibility in their professional community, putting them in positions of leadership, and giving them access to insider industry information from SAS Canada that they could then share with other customers.

Close the sale. Customers make great salespeople for a company precisely because they don’t have any (obvious) skin in the game.

Plus, they can honestly say, “This product or service worked for me. It can work for you, too.” Marc Benioff realized the persuasive power of customers in the early days of building Salesforce.com. Lacking the multimillion-dollar budgets of competitors like Oracle and SAP, he relied instead on face-toface meetings with prospects and customers in major city markets.

He was surprised to find that prospects at such events were much more interested in talking with Salesforce customers than with him and his executive team. And he was delighted to find that 80 percent of prospects who attended the events — and interacted with customers in such ways — wound up becoming customers themselves. That’s an amazing close rate for any offering. And unlike salespeople, Salesforce’s customer salespeople didn’t require a bit of training.

Understand buyer needs. Many leaders believe that customers can’t articulate their inbusine ssmag.com

Books needs, much less develop ideas for products to satisfy them. But a substantial body of well-established research has shown that many, if not most, successful innovations are customer-originated. In one compilation of studies of 1,193 commercially successful innovations across nine industries by MIT’s Eric von Hippel, 737 (60 percent) came from customers. That’s why companies that struggle with product development should consider looking outside to customer innovators.

3M’s Medical-Surgical Markets Division tried a last-gasp project in the 1990s to kick-start its consistently poor innovation record. It formed a team designed to bypass the internal innovation process and search for breakthrough innovations being created by outside “lead users” (the term coined by Prof. Eric von Hippel in 1986 to designate the user of a product or service who is at the leading edge of important market trends and has a strong incentive to find solutions for as-yet unaddressed needs he or she encounters at that level). When the results were compared with product development projects that had followed the usual process at 3M, the differences were dramatic: Lead-user innovations achieved average revenue of $146 million in their fifth year, compared with $18 million for internally generated innovations.

Connect with other prospects (aka their peers). By nature, most of us are open to creative new ways to affiliate with our friends and peers.

On the other hand, we’re not that excited about getting close to companies — a mistake many companies make when they set out to form communities around their brand. The key is for a company to figure out a way to foster a dialogue between customers and their peers that touches on issues related to its products.

Procter & Gamble’s BeingGirl community for teen and pre-teen girls was initially formed to promote feminine hygiene products. Because P&G knew TV and print ads made its young audience uncomfortable, it enlisted experts to provide content. When this created little interest, P&G established forums so that girls could talk to each other about the issues and challenges of growing into young womanhood.

Finally, the site took off. Girls from around the world were eager to get into the conversation — and P&G was able to market its products more subtly and effectively than before.

Energize online and social media marketing. Many firms are getting nowhere with their Web and social media marketing inbusine ssmag.com

efforts. That’s often because they’re trying to adapt traditional marketing communications to these media. They need to get creative about bringing customers into these programs.

In 2011, Salesforce.com cut traditional lead generation spending by 69 percent while increasing spending on customer videos (by 1,300 percent) and social media. One early result from that was an increase in contacts generated by social media of 400 percent.

Help penetrate new markets. When seeking to penetrate new markets, firms typically recruit some mix of local employees or agencies into their marketing and sales efforts. How about local customers?

Microsoft has perfected the art of finding and engaging with local “MVP” (Most Valuable Professional) customers who play a central role.

An example is “Mr. Excel,” who runs a website by that name, which on some days attracts more visitors than Microsoft’s own Excel page! Many companies would have issued a cease and desist order or filed a lawsuit. Microsoft embraces and supports such customers — now numbering some 4,000 around the world. These customers provide the firm with highly effective marketing communications and superb product testing and feedback. They also provide exceptional, and free, customer support — which has saved Microsoft hundreds of millions of dollars in support costs.

Maximize “return on relationship” with “rock star” customers. When this is done right, a company’s best customers will prospect for the firm while also speeding product adoption and improving customer satisfaction and longterm loyalty. It’s all part of a virtuous cycle: Companies improve what they offer customers, which allows customers to gain more value from products and services, and thereby improves what customers can offer companies.

Customer Reference Forum customerreferenceforum.com

Bill Lee, author of recent release The Hidden Wealth of Customers: Realizing the Untapped Value of Your Most Important Asset, among several others, is CEO of educational organization Customer Reference Forum. He has spent the last eight years building vibrant communities of customer engagement professionals, and his conferences, including the Summit on Customer Engagement, have attracted many of the world’s leading global firms, such as Microsoft, Apple, Oracle, Dell, EMC, SAP, Red Hat, Wells Fargo, Salesforce.com, SAS Institute, AmerisourceBergen Corporation, Research In Motion, AT&T, Alcatel-Lucent, IBM, Siemens and many others.

Marketing

Lifestyle Brands: A Guide to Aspirational Marketing What do brands like Apple, Diesel, Abercrombie & Fitch and Virgin have in common and what differentiates them from other brands? These brands are able to maintain a relationship with their clients that go beyond brand loyalty. This book gives a complete analysis of lifestyle brands that inspire, guide and motivate beyond product benefits alone.

Stefania Saviola and Antonio Marazza $40 • Palgrave Macmillan • January 2013

Brand You: Turn Your Unique Talents into a Winning Formula In the modern workplace, clearly defined hierarchies are on the wane, few have “jobs for life,” and many have portfolio careers or are self-employed. In these self-reliant times, it’s essential to be remembered for the right reasons. Brand You helps the individual develop a powerful personal brand, both on- and offline, and shows one how to discover one’s talents, values and purpose; become more visible in one’s market; and attract people who want what one does in the way that one does it.

John Purkiss and David Royston-Lee $24.99 • FT Press • Late December 2012

Breakthrough Marketing Plans: How to Stop Wasting Time and Start Driving Growth Almost every company creates a marketing plan each year, and many spend hundreds of employee hours researching, preparing and presenting their tomes to senior executives. But most marketing plans are too long and too complicated. They end up sitting on a shelf, unread and unrealized.

Breakthrough Marketing Plans provides simple, clear frameworks that are easy to apply, and highlights why marketing plans matter, where they go wrong and how to create a powerful plan that will help build a strong, profitable business.

Tim Calkins $25 • Palgrave Macmillan • December 2012

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ENTERPRISE

Risks & Rewards

The ‘Grow or Die’ Lie

In the race to grow a business, it must be remembered that the real key for success is carefully managed growth

by Edward D. Hess All growth is good. Bigger is better. All businesses must either “grow or die.” These popular business axioms are routinely lauded on Wall Street, at business schools and by some of the most well-respected business consultants of the day. Few question their validity. But actually, these “truths” are anything but. At best, those beliefs are halftruths; at worst, they’re pure fiction.

“Grow or die” is a belief that has no basis in scientific research or in business reality.

Growth can be good and growth can be bad.

Bigger can be good and bigger can be bad.

When not approached carefully, growth can destroy value as it outstrips a company’s managerial capacity, processes, quality and financial controls, or substantially dilutes customer value propositions.

Between 2005 and 2007, Starbucks aggressively opened new store locations and made several operational changes that diluted its customer value proposition, diluted its high employee-engagement culture, violated its real estate site selection controls and weakened its high value-added “experience” business model. For Toyota, too much growth too quickly resulted in quality issues that led to multiple recalls.

In a recent study I conducted among high-growth private companies, several of the successful entrepreneurs showed as repeat entrepreneurs who had “imploded” their first business by taking on too much growth too quickly. Growth overwhelmed them. They learned to respect growth’s destructive ability and, in their second venture, paced growth so that it did not overwhelm their people, processes and controls.

That is the “gas pedal” approach to managing growth. Let up on the growth gas pedal as needed to give the company’s people, processes and controls time to catch up.

Instead of “Grow or die,” be motivated by the motto “Improve or die.” Every business must continually improve its customer value proposition better than its competition in order to stay viable. That’s where real success lies.

Growth is change (and change isn’t easy). There are limits to an individual’s and

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an organization’s ability to process change.

Growth requires the entrepreneur to install more processes, procedures, controls and measurement systems. The right processes and controls must be put in place and taught to employees. In addition, the right information needs to reach the manager regarding variances from processes and controls so mistakes can be fixed quickly and not escalate into a larger problem.

Growth also requires that the entrepreneur change what he or she does. Successful and sustainable growth requires the right kind of leadership, the right environment (culture) and the right processes.

Growth is evolutionary. Sometimes, tough decisions are required in order to keep up. Growth requires the evolution of the entrepreneur and the management team and

more sophisticated processes and controls.

Often, if not always, the business model and customer value proposition evolve, too.

Furthermore, this evolution is continuous, and anticipating and responding to it can require making some fairly dramatic — and difficult — changes.

One surprising finding of my research was that companies frequently had to upgrade their management teams as they grew. Often, managers who operated effectively at one revenue level of the business were unable to manage effectively at a much higher revenue level. The jobs simply outgrew their skills.

The need to upgrade managers to fit the expanding job demands was gut-wrenching for many entrepreneurs because the nowineffective managers had often had a successful history with the business but were inbusine ssmag.com

now in over their head. This is yet another important factor that entrepreneurs must be prepared to deal with as they think about growing their business.

Growth requires continuous learning and constant improvement. The entrepreneur and employees must be constantly open to learning and adapting and improving in an incremental, iterative and experimental manner. No matter how big a company gets, continuous improvement is required.

My research of high-organic-growth companies highlighted one factor they all share: a “be better” DNA. Their “be better” focus was the underpinning of every growth initiative, whether it was top-line, bottomline or developing new concepts. Continuous improvement is the DNA of growth. The good news is that continuous improvements lead to more loyal customers who can be the company’s best advertising.

Growth requires disciplined focus and prioritization. The entrepreneur must strategically focus the business on a compelling differentiating customer value proposition and achieving daily operational excellence and consistency. Any growing business has resource constraints — limited people, time, and capital — so it is critical that the entrepreneur spend his or her time on the most important areas that can drive success.

These priorities may vary with the type of business or the phase of growth.

To set priorities, entrepreneurs must have concrete and useful data about their business, communicate the priorities to their personnel, and implement processes to ensure that these priorities are carried out. One entrepreneur whom I interviewed prioritized his focus simply as customers, quality and cash flow.

For him, if an issue did not impact directly and materially one of those three areas, it could wait.

Growth is process intensive. Growth requires implementing processes, which include controls. These are the step-by-step instructions for how to do a task. Processes are necessary to hire employees and train them; to minimize mistakes and institutionalize quality standards; and to deliver products and services on time, 99 percent defect-free.

Controls are necessary to set boundaries on allowable behavior and also alert management to deviations from processes.

Processes are the “how” part of doing business. As businesses grow, the entrepreneur inbusine ssmag.com

loses the ability to be hands-on with all aspects of the business. There is simply too much to do. So the challenge is for the entrepreneur to increase the probability that others will do the tasks as he or she would like them done.

To accomplish this goal, the entrepreneur implements processes.

There are two basic types of processes.

The first type are the directions, instructions and standards for how to do specific tasks.

These include rules or controls for mitigating financial and quality risks. Most processes are designed to instruct an employee how to do something or what not to do. The second type has a goal of producing reliable, timely data or feedback that will reveal variances or mistakes. These data-collecting processes are designed to get the key data in the hands of the entrepreneur quickly as the business grows.

Growth creates business risks that must be managed. Growth stresses people, processes, quality controls and financial controls. Growth can dilute a business’s culture and customer value proposition and put the business in a different competitive space. Understanding these risks is critical to managing the pace of growth and preventing growth from overwhelming the business.

To get a better handle on growth risks, the business owner needs to consider how strategic space will change as the company gets bigger.

It will probably enter a new competitive space, facing bigger and better competitors. Those new competitors may be better capitalized and be able to engage in price competition, driving down the company’s margins.

A company can minimize this and other big risks by planning for growth, pacing growth and prioritizing what controls and processes it needs to have in place prior to taking on much growth. By carefully considering the timing and whether the right people, processes and controls are in place to manage the growth, entrepreneurs can take their business to greater and greater heights.

Edward D. Hess (www.EDHLTD.com), author of Grow to Greatness: Smart Growth for Entrepreneurial Businesses, is a professor of business administration and Batten Executive-in-Residence at Darden School of Business, University of Virginia.

He has authored nine other books, including Smart Growth: Building an Enduring Business by Managing the Risks of Growth, which was named a 2010 Top 25 Business Book for Business Owners

by Inc. magazine, plus numerous articles that have appeared in more than 200 media outlets around the world.

Your online resource

more ThAn jusT An online mAGAzine

GeT Access To ArTicles And more on: • FinAnce • Tech • leGAl • how-To • humAn resources • sAles & mArkeTinG And so much more…

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D e c e m b e r 2012

29

NonProfit

by RaeAnne Marsh

Actions to build Community

Arthritis Foundation Arizona: Programs Get into the Community

Arthritis Foundation Arizona arthritis.org/arizona

Snapshot

■■ In Arizona, 1.2 million people,

■■ ■■

including 6,000 children, suffer from various forms of arthritis. “Children can get any kind that adults get,” notes Jones.

Arthritis Foundation Arizona is one of few health charities that offer programs in community locations throughout the Valley. Programs include aquatic, Tai Chi, a residence camp for children with arthritis and weekend camp for families.

Educational programs are presented by licensed physicians, giving attendees access to a physician of whom they can ask questions to help figure out where to go next to get the help they need.

■■ Five paid staff, most of whom are involved in program rather than ■■ ■■

fundraising, are augmented by hundreds of volunteers whose contributions range from instructors to office personnel to representatives manning information booths at community events to board members.

The organization’s other signature event is the Arthritis Walk in May (Arthritis Month).

In addition to the fundraising events, the organization’s $1-million operating budget is funded through public support, corporate employee giving, foundations and grants.

Snapshot

■■ Opened in 1977, Crisis Nursery

■■ ■■ ■■ ■■ ■■

operates a children’s shelter for children placed voluntarily by their parents (when, for instance, the parent enters a drug treatment program), in custody of Child Protective Services or not successful in foster homes.

Other programs include early childhood education and support to help families develop healthy relationships, and foster care recruitment and training.

Crisis Nursery serves 150 to 200 children each day, identifying their individual needs.

A staff of 105 is comprised of pediatric nurse practitioners, social workers, and specialists in early childhood education and child development.

In addition to about 150 regular volunteers are numerous families and corporations that help with one-time projects. Noting that child abuse and neglect is not a problem of an individual child or family, Porter says, “We’re always looking at involving the community.”

Crisis Nursery’s annual operating budget of $5.5 million is funded 60 percent by government, the rest by special events, corporate giving and individual donations.

Crisis Nursery: Breaking the Cycle of Child Abuse

Old Las Vegas of the Rat Pack era will be the setting for Crisis Nursery’s annual “Blue Skies” fundraiser on February 23 at the Montelucia Resort & Spa. This year, the dinner-anddancing event will start with a casino reception. Blackjack, craps, even a roulette table — and winners can take their winning chips over to the “super” silent auction to bid on items such as one of the Valley’s noted chefs preparing dinner at the winning bidder’s home. Elaborate decorations will transform the ballroom to a setting that Frank Sinatra, Dean Martin and Sammy Davis Jr. would feel at home in — and a sound-alike singer will provide the ultimate re-creation.

Expected to bring in $250,000 to $500,000, “Blue Skies” is the largest single fundraiser for the nonprofit. Funds support the many programs Crisis Nursery provides toward its mission of “breaking the cycle of child abuse,” including operating the children’s shelter that was the organization’s origin. Whether their injuries are physical or internalized, “We help them be kids again,” says Executive Director Marsha Porter.

Crisis Nursery crisisnurseryphx.org

In business to do good for the community, nonprofits enrich the lives of those who contribute as well as those who receive. In Business Magazine showcases two nonprofits in each issue, focusing on their business organization and spotlighting an upcoming fundraising event.

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inbusine ssmag.com

Photos courtesy of Crisis Nursery (bottom); courtesy of (top)

Oscar glitz, glamour and excitement strikes again in Phoenix for the 19th time on February 24 at the Camelback Inn, when Arthritis Foundation Arizona holds its annual gala fundraiser, “Oscar Experience.” “It starts at the red carpet, of course,” says Executive Director Valerie Jones. The red carpet — lined with camera-flashing paparazzi — leads to the ballroom where those already inside can watch the newcomers arrive on closed circuit TV as well as the live broadcast from Hollywood on large screens around the room. Live statues of the coveted award (models painted gold), a glamour lounge where Rolfs beauty technicians will touch up guests’ make-up, and, new this year, a true gifting lounge fill out the experience. Top it off with an authentic Oscar program (this is the only sanctioned Oscar event in Phoenix, and the Academy of Motion Pictures Arts and Sciences provides Arthritis Foundation Arizona with the same program it gives attendees at the grand Hollywood event) and plenty of opportunity to capture the event for posterity in photos.

Attracting a lively crowd of 400 to 500 people, the evening will generate $300,000 to $400,000 for Arthritis Foundation Arizona — a significant percentage of the organization’s $1-million annual operating budget. “The money stays here to support [our programs] for the 1.2 million people with arthritis in Arizona,” Jones notes.

www.inbusinessmag.com

December 2012

O n t h e Ag e n D a

A listing of Greater Phoenix business organizations and their events. Visit www.inbusinessmag.com for an expanded monthly calendar of educational, networking and special business events.

Greater Phoenix Chamber of Commerce

Day at Phoenix City Hall Tues., Dec. 11 — 9:00a – 1:00p The Greater Phoenix Chamber of Commerce presents this event for all companies currently doing business with the City of Phoenix and those wanting to do so, to learn what it takes to do business with the City of Phoenix and where to turn for help on any city-related issue. Attendees will also get to know some of the top decision-makers in City of Phoenix government. Presented at Phoenix City Hall, the program will run from 9:00a until noon, and attendees will also have an opportunity to meet with elected officials during this time.

The Greater Phoenix Chamber will also present information about the historical relationship of the Chamber and City Hall.

The event includes a luncheon with Phoenix Mayor Greg Stanton and the Phoenix City Council, from noon until 1:00p, which will follow the behindthe-scenes look at what goes on in Phoenix City Hall. And it will offer a more visual view as it will be held on the top floor of the 10-story Calvin C. Goode Municipal Building across the street from City Hall.

The event is open to non-Chamber members ($25) as well as Chamber members ($15). Validated parking will be available at 3rd Avenue and Washington Blvd.

—RaeAnne Marsh Greater Phoenix Chamber of Commerce phoenixchamber.com

Leap Innovation and New Angle Media

Innovations in Marketing Seminar Series Thurs., Dec. 13 — 8:00a – 9:30a and 11:30a – 1:00p A free, seven-part Innovations in Marketing seminar series kicks off on Dec. 13 with “7 Steps to Marketing Success.” Presented by Tempe-based Leap Innovation and Phoenix-based New Angle Media, the monthly oneand-a-half-hour programs will be held at New Angle Media’s offices, and attendees can sign up for either the early morning “breakfast” session or the mid-day “lunch” session.

The inaugural seminar on Dec. 13 will focus on educating small-business owners, entrepreneurs, and sales and marketing managers about marketing best practices and technologies for implementation. Among the topics to be addressed are driving more prospect traffic without increasing spending, converting customers at a higher rate, squeezing maximum value out of existing clients, and growing referral business.

The series will continue with “Identify Your Best Clients and Discover Your Core Differentiation” in January; “Define Your Customer Experience” in February; “Create a Plan for Content that Builds Trust, Educates and Closes” in March;

“How to Create a Total Online Presence” in April; “Generate Leads through Advertising, PR and Referrals” in May; and “Create Lead Conversion and Selling Systems” for the final session in June.

Leap Innovation provides sales, marketing and leadership training and consulting to small-business owners.

The firm was founded in 2007 by Donovan Hardenbrook, who has nearly 30 years experience in the engineering, manufacturing, quality and product development fields.

Founded in 2003, New Angle Media is a full-service, interactive marketing agency that provides custom, end-to-end solutions to grow businesses of all sizes, including utilizing the latest technologies to enhance marketing communications with digital, video, audio and print components.

For further information about the seminars, contact Hardenbrook at (480) 264-9009. Space is limited to 24 per session, and advance registration is required.

—RaeAnne Marsh Innovations in Marketing Seminar Series nvite2.newanglemedia.com/innovations_marketing

Notable Dates This Month Fri., Dec. 7 Pearl Harbor Day Sat., Dec. 8 Hanukkah begins at sunset

Photo courtesy of Kevin Dooley

Mon., Dec. 10 Human Rights Day Fri., Dec. 21

Winter Solstice

Tues., Dec. 25

Christmas Day

Mon., Dec. 31

New Year’s Eve

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

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D e c e m b e r 2012

31

O n t h e Ag e n d a AHWATUKEE FOOTHILLS CHAMBER OF COMMERCE SCORE Business Counseling

Thurs., Dec. 6 and 20 9:00a – noon, by appointment only

December 2012

Lunch and Learn: How Smartphone Apps Benefit Your Company, Products and Customers Tues., Dec. 11 11:30a – 1:00p

Meet with the SCORE counselors to start up or fine-tune your business.

Free Ahwatukee Foothills Chamber of Commerce 4435 E. Chandler Blvd., Phoenix 480-753-7676

Learn the capabilities of a custom app and how products can include features an app can access. Lunch is provided.

Presented by Legato Technology, Inc. Members: free; non-members: $15 ASU SkySong 1475 N. Scottsdale Rd., Scottsdale aztechcouncil.org

ARIZONA HISPANIC CHAMBER OF COMMERCE

Lunch and Learn: Outperforming Your Competitors

El Torneo Golf Tournament Tues, Dec. 11 Registration: 7:00a; awards luncheon: 1:00p

Member: $400; non-member: $500 Ocotillo Golf Resort 3751 S. Clubhouse Dr., Chandler azhcc.com

ARIZONA SMALL BUSINESS ASSOCIATION Fast + Curious Speed Networking™ Tues., Dec. 4 3:00p – 4:30p

A fun, fast-paced format of networking that allows you to meet other businesses at 3-minute intervals.

Members: free; non-members: $25 ASBA’s Business Education Center 4600 E. Washington St., Phoenix asba.com

Jingle, Jingle, Mix and Mingle Tues., Dec. 11 5:00p – 7:00p

Join the Arizona Small Business Association with the Arizona Chamber of Commerce and Industry for our annual holiday mixer, hosted upon the stunning rooftop of the W Scottsdale. Enjoy quality networking, complimentary roof-top ice skating, appetizers, drinks and live jazz music, all amidst the breath-taking view, more than 80 feet above Old Town Scottsdale.

Complimentary event – RSVP requested W Scottsdale, Rooftop 7277 E. Camelback Rd., Scottsdale asba.com

ARIZONA TECHNOLOGY COUNCIL After5 Networking Event Thurs., Dec. 6 5:30p – 7:30p

Hosted by Bull HN Information Systems Inc., dedicated to optimizing the architecture, operations and financial return of information systems. Food is provided.

Members: free; non-members: $20.

Bull HN Information Systems Inc. 13430 N. Black Canyon Hwy., Phoenix (enter through building’s west side) aztechcouncil.org

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Tues., Dec. 18 11:30a – 1:00p

Gain information about how to identify competencies that matter most and use them to make smarter decisions.

Lunch is provided. Presented by ImpaQ Solutions.

Members: free; non-members: $15 ASU SkySong 1475 N. Scottsdale Rd., Scottsdale aztechcouncil.org

CENTRAL PHOENIX WOMEN Holiday Luncheon Mon., Dec. 17 11:30a – 1:00p

Speaker: Carol Warner, VP Business Development Manager, JE Dunn Construction to discuss “Arizona Women and Construction.” $75 The Ritz-Carlton, Phoenix 2401 E. Camelback Rd., Phoenix centralphoenixwomen.org

GLENDALE CHAMBER OF COMMERCE SCORE Appointments

Mondays, Dec. 3, 10, 17, 24 9:00a – noon, by appointment

Meet with a SCORE consultant.

Free Glendale Chamber of Commerce 7105 N. 59th Ave., Glendale (623) 937-4754

GREATER PHOENIX CHAMBER OF COMMERCE Day at Phoenix City Hall Tues., Dec. 11 8:45a – 1:00p

Learn what it takes to do business with the City of Phoenix. Lunch to follow program.

Members: $15; non-members: $25 Phoenix City Hall 200 W. Washington St., Phoenix (602) 495-646 (See article on page 31.)

Professional Women’s Alliance: Global Issues Affecting Women Thurs., Dec. 6 11:30a – 1:00p

Speaker: Ambassador Barbara Barrett, Ambassador to the Republic of Finland (2008-2009).

Free to attend. With lunch – members: $15; non-members: $25 Phoenix Children’s Hospital 1919 E. Thomas Rd., Phoenix (602) 495-2194

NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS December 2012 Red Affair Wed., Dec. 5 11:30a – 1:00p

much more to children in the foster care system. AMF Deer Valley Lanes has donated the lanes. Funds (and ongoing toy drive) are for a bowling party for the kids on Dec. 15 & 16. $15 AMF Deer Valley Lanes 2902 W. Thunderbird Rd., Phoenix Edward Gomillion, (623) 572-4440 ext. 56472

SCOTTSDALE AREA CHAMBER OF COMMERCE GET Young Professionals Walk and Network for Ronald McDonald House Charities Sat., Dec. 1 7:30a – noon

NORTH PHOENIX CHAMBER OF COMMERCE

Help support the families of Ronald McDonald House Charities of Phoenix, burn off those Thanksgiving calories and meet and mingle with valley Young Professionals at the same time! $15 The Cambridge House 1980 E. Cambridge Ave., Phoenix scottsdalechamber.com

Industry Specific Business 2 Business Networking Group

Best Practices for Retirement Plan Sponsors Seminar

Serious Professionals Only Networking Group. Call for additional information.

Lunch sponsor: C&R Tire.

Free Rock Bottom Desert Ridge 21001 N. Tatum Blvd., Phoenix Joe Salloum, (480) 473-4614

Learn the new rules and regulations regarding retirement plans. Featuring speakers Paul Batt, QPFC, ChFC, CFS, and Theresa Conti, QKA, APR, ERPA. Free Scottsdale Area Chamber 7501 E. McCormick Pkwy., Scottsdale scottsdalechamber.com

Members: $55; non-members: $65 (after Nov. 30, add $15) Montelucia Resort & Spa 4949 E. Lincoln Dr., Scottsdale nawbophx.org

Mondays: Dec. 3, 10, 17 Noon – 1:00p

Networking Breakfast — Industry Specific

Wednesdays: Dec. 5, 12, 19, 26 7:00a – 8:00a

Relationship networking with elite professionals in a variety of industries.

Free Wildflower Bread Company 2805 W. Agua Fria Pkwy., Phoenix Frank Dzielak, (480) 747-7539

Coffee Club Meeting

Fridays: Dec. 7, 14, 21, 28 8:30a – 9:30a

No-obligation seminar to share information regarding protecting and increasing your assets for today and beyond, hosted by James Rogers of Edward Jones Investments.

Free Gallagher’s Sports Grill 34406 N. Black Mountain Pkwy., Cave Creek Christine Nassief, (480) 488-2821

OCJ Kids Charity Fundraiser Sun., Dec. 9 2:00p – 5:00p

Come bowl and support OCJ Kids, which provides clothing, school supplies, mentoring, hope, a way to thrive in spite of circumstances and

Thurs., Dec. 6 8:00a – 9:00a

Farmers Insurance Worker’s Compensation Seminar Thurs., Dec. 13 7:30a – noon

60 minute seminar will show you the steps you can take today to immediately lower your Workers Compensation premiums.

Free Scottsdale Area Chamber of Commerce 7501 E. McCormick Pkwy., Scottsdale scottsdalechamber.com

A.M. Connect — Round Table Exchange Thurs., Dec. 20 7:15a – 9:00a

Members: free; guests: $20 The Venue of Scottsdale 7117 E. 3rd Ave., Scottsdale scottsdalechamber.com

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

Email the information to: events@inbusinessmag.com.

inbusine ssmag.com

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

SOUTHWEST VALLEY CHAMBER OF COMMERCE Chamber Breakfast at Wildlife World Zoo & Aquarium

WOMEN OF SCOTTSDALE

and finding balance in our hectic and stressful lives.

Members: $35; non-members: $45; benefit for this event is Eve’s Place Arizona Broadway Theatre 7701 W. Paradise Ln., Peoria (623) 583-0692

Holiday Luncheon Fri., Dec. 21 11:30a – 1:00p

A day at the Wildlife World Zoo & Aquarium starts with breakfast at Dillon’s at 7:30a. Mickey Ollson, owner of the Wildlife World Zoo & Aquarium, will give attendees an inside look at the future of the zoo and aquarium, followed by a tour of “Dragon World,” the new aquarium building. Stay and play in the zoo for as long as you would like.

Please note, this is not a family event.

This opportunity is for members of the business community.

Members: $15 ($20 day of); non-members: $25 Wildlife World Zoo & Aquarium 16501 W. Northern Ave., Litchfield Park Danielle, (623) 932-2260

TEMPE CHAMBER OF COMMERCE

$35 The Westin Kierland Resort and Spa 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org

2012 State of the Schools Address

OTHER BUSINESS EVENTS

SURPRISE REGIONAL CHAMBER OF COMMERCE

WEST VALLEY WOMEN

Thurs., Dec. 13 All day; starts at 7:30a

Tues., Dec. 11 11:30a – 1:30p

This is an opportunity for the business community to meet with a panel of educators to learn the condition of our educational institutions and determine how businesses can assist them in achieving their goals. This year’s forum focuses on secondary education.

Members: $40; non-members: $50 Fiesta Resort Conference Center 2100 S. Priest Dr., Tempe (480) 967-7891

Holiday Luncheon

POWER Women in Business Luncheon Wed., Dec. 12 11:00a – 2:00p

Jennifer Brown, Ph.D., will speak on the topic of “The Power of Beauty” — beauty is about perception and feeling good,

Tues., Dec. 4 11:30a – 1:00p

$35 Arizona Broadway Theatre 7701 W. Paradise Ln., Peoria westvalleywomen.org

Global Arizona: Are We There Yet? Mon., Dec. 3 7:30a – 9:00a

AZIGG International State of the State.

Speaker: Rudy Vetter, GPEC senior vice president of International Business Development. $20 SkySong 1475 N. Scottsdale Rd., Scottsdale growthnation.com/azigg

GoGreen Phoenix Thurs., Dec. 6 All day

More than 40 of Arizona’s most successful corporate leaders will share their experiences and strategies, as well as the benefits and challenges of embedding sustainable practices into an enterprise.

Full-day admission: $150; networking cocktail reception only: $50

Phoenix Convention Center, West Building, first floor 100 N. 3rd St., Phoenix phoenix.gogreenconference.net

Innovations in Marketing Seminar Series “7 Steps to Business Marketing Success” Thurs., Dec. 13 8:30a – 10:00a or 11:30a – 1:00p

Free; advance registration required New Angle Media, Grand Canyon Conference Room 2601 E. Thomas Rd., Phoenix Donovan Hardenbrook, Leap Innovation Principal, (480) 264-9009 (See article on page 31.)

Valley Forward Assn. 43rd Annual Awards Luncheon Fri., Dec. 14 11:30a – 1:30p

This signature event typically draws upward of 500 community leaders.

Speaker: Alison Levine, team captain of the First American Women’s Everest Expedition; adjunct professor at the U.S. Military Academy.

Members: $80; non-members: $100 The Phoenician 6000 E. Camelback Rd., Scottsdale valleyforward.org

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info@inbusinessmag.com 10:16 AM33 D e c e m11/26/12 b e r 2012

Focus

Our Subject In-Depth

Entertainment Districts: The Business behind the Fun

Public space on the campus of Mesa Arts Center

They generate lucrative revenue when all the right elements come together

It’s far from fun and games when it comes to developing entertainment districts in the Valley. Filled with movie theaters and arcades — part of a category called “amusements” by tax collectors — as well as restaurants and bars, the districts contributed a growing share of the nearly $551.7 million that the Arizona Department of Revenue collected from these categories in the fiscal year ending June 30, 2012. Based on a 6.6-percent tax rate, that means Arizona restaurants/bars and amusements had combined revenue of more than $8.3 billion for the year.

To make them work, it’s all about the planning. That’s best demonstrated at The District at Desert Ridge Marketplace and Tempe Marketplace, properties developed by Phoenix-based Vestar. “It starts with a community having a need,” says David Malin, Vestar’s director of acquisitions & development.

For Vestar, additional factors needed to come into play. Each property had to find the right site — ideally, a “super-regional” site, as Malin calls it — that offers enough space. “It has to be a venue for thousands of people,” he says. In the case of Tempe and Desert Ridge parcels, that’s 130 acres and 120 acres, respectively. And part of that space must meet daily needs such as grocers and retail as well as entertainment venues such as Dave & Buster’s if people are to be expected to drive up to 20 minutes to get there, as is the case with the two properties. “It’s important to put together the critical mass,” he says.

To make sure the shops, movies theaters and other businesses stay put so patrons keep coming back, relationships are important. “Unless you

Food Court at Tempe Marketplace

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have relationships with tenants, they don’t form partnerships that last,” Malin says. Plus, “as they say: location, location, location,” Malin adds, noting there needed to be convenient access to major freeways. Both destinations are near stretches of the Loop 101 and Tempe has the extra advantage of being adjacent to the Loop 202.

Specifically for each entertainment district, which Malin calls “a mall without a roof,” its position was partially dictated by the shape of the sites — square in Desert Ridge and more rectangular in Tempe. That resulted in Desert Ridge’s district being placed in the middle and ringed by a road. For Tempe — remember the 202? After Vestar learned it carries 650,000 cars by the property each day, the result was the district and its mini Times Square of lighted signs being built on the north side of the property, alongside the freeway.

Sometimes, the luxury of building from scratch just isn’t there. But when the right combination of outside forces comes together, it can’t be ignored. That’s what’s happening in Mesa. Consider: The Mesa Arts Center is already established, colleges have announced plans to locate campuses in the city, the light rail is coming — and even a brewery has opened its doors. “All are pieces of the puzzle to make [an entertainment district] successful,” says David Short, executive director of the Downtown Mesa Association.

He explains that a district presents more opportunities for different uses of existing buildings.

It “adds more vibrancy” to the scene, he says.

Although Mesa still carries an image of a place where everything stops when the sun goes down, there are no complaints arising over bars and restaurants with late-night hours, Short says. In fact, with more people coming downtown at night, “more people on the street actually make it safer,” he says.

There have been concerns about cleanliness expressed by people no doubt well aware of the outrage expressed by neighbors of Old Town Scottsdale who complain about what happens in their inbusine ssmag.com

Photo by Michael Baxter (bottom); courtesy of Downtown Mesa Association (top)

by Don Rodriguez

own front yards when bar patrons descend on area. Since the entertainment district will take shape over time, “we’ll be able to monitor it as it grows,” Short says.

Sometimes, an existing entertainment center gets a second chance at success, as is the case with Westgate City Center in Glendale.

New York-based iStar Financial, Inc., the new owners of the floundering complex adjacent to the Jobing Arena, have turned to Vestar to manage the property that is being renamed Westgate Entertainment District and tap into its potential. Malin says his company’s marketing department already is planning projects and events to increase traffic. “We’re trying to recreate everything that we’ve created in Tempe and Desert Ridge,” such as tree lighting ceremonies and ice skating rinks that are draws in the holidays.

In some cases, success never has a chance because plans never get off the drawing board.

Such was the case with the Jackson Street entertainment district proposed on parcels adjacent to the sports centers in downtown Phoenix. But trying to do it all at once was part of the problem, says Don Keuth, president of the Phoenix Community Alliance. Plus, it was “on a bridge too far” from the action already underway, he observes. “Once we hit the economic downturn, it was not going to happen,” Keuth says. The end result was the partnership that owned it filed for Chapter 11 bankruptcy protection. Part of the land has now been purchased by a San Francisco real estate investment firm that has announced plans to build apartments in the area.

But the party isn’t necessarily over for downtown Phoenix. Enter CityScape Phoenix, the complex of restaurants, bars and clubs that filled a void for entertainment seekers downtown. On any given weekend night there can be as many as 5,000 people at the venues in the complex, Keuth says. “It’s just going to continue to grow,” he says. To the tax man’s delight, results so far show the same can be said for entertainment district development.

CityScape Phoenix cityscapephoenix.com

SAVE THE DATES

… and prosper

Grow your Business & connect series

2013

Announcing Our 2013 Events Friday, January 18, 2013 Education Means Business: Filling the Skills Gap in Arizona Luncheon Symposium — 11:30a to 1:30p Top-level panelists, including the heads of our Universities and Community Colleges, Charter Schools as well as CEOs and Government Officials, will join us to discuss training and educational programs — existing programs as well as incentives in development — to nurture a more skilled work force as a foundation for economic and industry development.

Tickets on sale now at inbusinessmag.com Individual: $65 Table of 10: $1000 Sponsorships available with added benefits Friday, February 22, 2013 The New Healthcare: A Business Owner’s Summit Luncheon & Discussion — 11:30a to 1:30p Friday, May 17, 2013 Annual Guest Editor Economic Symposium Luncheon & Symposium — 11:30a to 1:30p Friday, August 23, 2013 Finance & Banking: A Business Funding Summit Luncheon & Discussion — 11:30a to 1:30p Friday, November 15, 2013 Growing Business: A Small-business Luncheon & Expo Luncheon & Resources Expo — 11:30a to 5:30p Join Us for All of Our 2013 Events Sponsor one or more of these well-attended events.

Visit inbusinessmag.com or contact our sales department at (480) 588-9505 x213.

Desert Ridge Marketplace shopdesertridge.com Downtown Mesa Association downtownmesa.com Mesa Arts Center mesaartscenter.com Phoenix Community Alliance phoenixcommunityalliance.com Tempe Marketplace tempemarketplace.com Vestar vestar.com Westgate Entertainment District westgatecitycenter.com

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inbusinessmag.com/businessseries D e c e m b e r 2012

35

Education

Series on Finance

The Crucial Monthly Close

Owners need timely and accurate financial statements to best manage their business

by Dennis Niven How is your business doing lately? As an owner, you probably have a sense of how things are going, but is it right? While I have developed a great respect for an owner’s “gut feel” over my 40 years of consulting, there are many illusions and counter-intuitive aspects to business that can mislead owners. A common counter-intuitive illusion is that if sales are increasing, things must be getting better. As discussed in the article on working capital, the first in this “Business Education” series, few events can deplete cash in a business as quickly as increasing sales. Owners need a periodic “gut check,” and a crucial one is supplied by having timely and accurate financial statements that the owner respects and understands.

To produce financial statements, usually on a monthly basis, an accountant must record transactions for all financial events in a comprehensive manner. While the recording of cash receipts and disbursements might be straightforward, accrual adjustments are not. A monthly close commonly takes three to five days to complete, and that is after the passing of seven to ten days for billings to be completed and for bank statements and invoices to be received. A business owner, then, should expect a good set of financial statements by the 10th or 15th of each month.

Notice that I said “accrual adjustments.” Accrual adjustments are made to report sales as earned, and all costs that “match” those particular sales or expire during the month are accrued to determine profit or loss and, perhaps more importantly, where cash came from and where it went. Accrued sales are reported whether or not they have been collected, and accrued expenses are matched with sales for the month whether or not they have been paid. Expenses include cash entries such as payments for material, labor and overhead expenses as well as noncash entries such as depreciation on long-term assets. Only by matching expense with revenue on the accrual basis can a business owner see through what are often simply the illusions of profitability. Appropriate management steps can then be taken based on this information.

Sales being crucial to the management of a business, owners are anxious to see the results as quickly as possible, especially if they suspect a good or bad month. Accountants, being the meticulous creatures that they are, need the time to make their accrual entries and see that all revenues are reported along with all matching expenses. Data mentioned above are simply not available immediately after month-end, and pressure to get the numbers earlier leads to mistakes, estimates and inaccuracy. While we don’t want meaningless financial statements, an accountant’s pursuit of accuracy also has a diminishing rate of return.

So, what can be done to get financial statements done sooner?

Here are 10 systemic changes that can be made to get statements out sooner: ■■ Have experienced supervision in place for the accountant during this time. This can be outsourced on an as-needed basis.

■■ Don’t keep the accountant in the dark. The accountant needs to anticipate what entries might be needed to record unusual events.

■■ Billings can be completed on a timelier basis by those employees responsible for billing. Absences of billing professionals must be covered to avoid delays (in both the monthly close and the cash collection of those billings).

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■■ Expense reports can be required within two days of month-end.

■■ Accountants can have telephone and email-free days to work the close, and be protected from other “priorities.”

■■ The cut-off for the month can be moved up to the 25th. Bank statements and vendor invoices can cut off earlier, too.

■■ Email invoices and billings to eliminate several days in transit.

■■ Expenses can be estimated to save time. Don’t sweat the small stuff.

■■ Have recurring entries and an entries list that the accountant can follow.

■■ Begin with the budget in mind. Resolve differences with budgets to avoid time-consuming mistakes.

Recognizing the crucial nature of the monthly close is the first step to having timely and accurate financial statements. The ability to better manage the business improves when the statements are reconciled with the owner’s gut feel.

Note that the above discussion refers to the monthly close. At yearend, methods to accelerate the close are generally not appropriate, as the determination of profit and loss is of particular interest to auditors and IRS agents. A year-end close generally takes more than 30 days to prepare while all material adjustments are made.

B2B CFO b2bcfo.com

Dennis Niven, CPA, CGMA, CM&AA, is a Scottsdale, Ariz., partner in B2B CFO®, The World’s Largest CFO Consulting Firm™. Niven specializes in Finding The Exit® and The Exit Strategy™ consulting, and provides articles on the subject on his website (www.dennisnivencfo.com).

Finance

the Education Series

q If Cash Is King, then Working Capital Is God q Best Practices for Accounts Receivable Collection q The Crucial Monthly Close To reference published segments, please access the archived “How-to” articles on the In Business Magazine website, www.inbusinessmag.com.

inbusine ssmag.com

by Mike Hunter

2013 Mercedes-Benz GL-Class SUV of the Year As carmakers struggle with the demand by car buyers of a fuel-efficient SUV, Mercedes is working hard to capture the market in America. The new 2013 GL-Class SUV offers three models that demonstrate Mercedes is meeting market concerns, which is why Motor Trend named it the SUV of the year for 2013.

Quality, safety and luxury options aside, Mercedes has responded to the SUV auto market with the GL350. It is a 3.0-liter turbo diesel V6 engine with 240 horsepower and a fuel-efficient 19 mpg city and 26 mpg highway. This fuel-efficient option is lacking in muscle but wins in functionality and substance. The GL450, a gas-powered 4.6-liter bi-turbo V8 engine, performs with 362 horsepower, but falls short with the gas-guzzling 14 mpg city and 19 mpg highway. The GL550 is the bull of this model as it is all about performance, speed and even luxury options.

Also a 4.6-liter bi-turbo V8 engine, but with direct injection making it powerful and reactive, this version is 13 mpg city and 18 mpg highway.

Other advances include the smooth 7-speed transmission in each, described as more efficient and reactive than past versions; the 4MATIC All-wheel Drive System; and the 4-Wheel Electronic Traction System. Each result in a controlled driving experience and reliability most would be impressed with — even from Mercedes.

As for design and luxury, the GL-Class brings this SUV to a whole new standard of useful and eye-catching options. From top-notch audio options to burl walnut wood trim, the “ruggedly all-new designs,” as Mercedes touts, goes further by adding more power outlets, more beverage holders and an enhanced logic to its controls and technology. The Collision Prevention Assist is being lauded as an industry highlight; and the mbrace2™ Cloud-based and GPS car, Mercedes-Benz GL-Class 350, 450, 550 computer or Smartphone technology is the City MPG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19; 14; 13 most comprehensive of its kind; all of which Hwy MPG. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26; 19; 18 make the GL-Class SUV models the stand0-60 MPH. . . . . . . . . . . . . . . . . . . . . . . . . 8.3; 6.2; 5.5 sec outs for 2013.

Transmission. . . . . . . . . . . . . . . . . 7-Speed Automatic

Photo courtesy of Mercedes-Benz (left); courtesy of (right, top to bottom)

MSRP. . . . . . . . . . . . . . . . . $62,400; $63,900; $83,900

We Value What We Own

Assets

Our Health Can Be Our Biggest Asset As the year comes to a close, many will look inward and realize how important health is to performing well in business overall. A mentally and physically healthy individual is an asset we cannot afford to lose. Here are top fitness clubs to consider:

Gold’s Gym Elite

Off the lobby of the main office building at CityScape, this progressive and urban fitness club is the “Elite” brand, which means the club includes classes, a cardio cinema, juice bar, spinning rooms, sauna and spa, and tanning — over and above Gold’s well-known free-weight and workout rooms. All-staff corporate memberships are available.

1 E. Washington St., Phoenix (602) 368-1221 goldsgym.com

Mountainside Fitness

A local business success story, this fitness club is all about the experience and the results. Full-service fitness center includes personal training services, kids club and services, and the full-service M Café. Nicely designed and suited for the executive, this is where getting healthy never felt so good.

Multiple membership levels are available.

10 Valley locations mountainsidefitness.com

Village Racquet & Health Club

Perhaps the most luxurious of the local fitness club options, the Village Clubs include workout rooms, pools, extensive kids clubs and cafés. Each also includes a running track; courts for racquetball, handball, and basketball; and specialized services like spa, tennis and more. Multiple membership levels are available.

4 Valley locations villageclubs.com

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Power Lunch

Meals that matter

by Mike Hunter

Short and Sweet Here are some great spots for lunch that are minimal in name but maximize flavor, options and ambience. They may be short in letters, but what they serve is plentiful.

Cibo — Phoenix

Authentic Old Phoenix ambience in a 1913 home in downtown Phoenix, Cibo offers great artisan Italian flavors with pizzas, antipasto and other dishes that taste incredible. Try one of its creative sandwiches made on saltimbocca bread.

603 N. 5th Ave., Phoenix (602) 441-2697 cibophoenix.com

FEZ — Phoenix

RnR — Scottsdale

Suggested meanings are “rock ’n’ roll” and “rest ’n’ relaxation.” This Old Town Scottsdale happening eatery is fun and flavorful. Dishes are anything but average and mimic many menus, from pub to ethnic.

3737 N. Scottsdale Rd., Scottsdale (480) 945-3353 rnrscottsdale.com

RnR

Wildhorse Grille at Talking Stick Golf Club

A new hot spot for lunch is the country club-ambience Talking Stick Golf Club in Scottsdale near the Talking Stick Resort. A bit off of the beaten path, this Southwesternstyled dining room is a great place to do business and get a great midday meal.

Chef Patrick Karvis is well known in the Valley, having worked with Eddie Matney and Michael DeMaria, among others. He has transformed this dining room into the place to go for lunch (breakfast and dinner as well). Be there and run into top Valley CEOs and sports figures as well as any number of advisors meeting a client to conduct business. Sure, golfers will pop in, but this place is beginning to be a destination for execs.

The lunch menu gets straight to the point with soups, salads and sandwiches in any number of combinations. Chef chooses to mix regional flavors with what one would expect from a golf club menu, with an emphasis on local. The Grilled Flat Iron Steak Salad includes baby spinach, glazed walnuts, Maytag blue cheese and apples tossed in a walnut vinaigrette.

The Stick Burger is made with a Creek Stone Angus beef and brisket blend and includes iceberg, onion, local tomato, house pickle and a choice of cheese on a brioche bun.

Schreiner’s local sausages offer diners a hot dog, bratwurst and Italian sausage option for lunch, with all of the fixings.

A rich décor includes a patio with mountain views overlooking the North golf course — perfect for this time of year. Comfortable and accessorized with a Southwestern flair that pays tribute to the Salt River Pima-Maricopa Indian Community on which it is located, it welcomes guests with service that would meet the standards of a highend country club. Wine lists are extensive (maybe for later in the day) and the wait staff well versed with knowledge of the menu. Wildhorse Grille is a treat and a retreat.

Wildhorse Grille at Talking Stick Golf Club 9998 E. Indian Bend, Scottsdale (480) 850-8622 talkingstickgolfclub.com

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inbusine ssmag.com

Photos courtesy of Evening Entertainment Group (left); courtesy of RnR Restaurant (right)

An urban neighborhood restaurant on Central Avenue in Phoenix, this lunchtime must is serving up perfect midday options. Burgers, salads, flat kisra breads and more are offered in scrumptious delight. A busy eatery, it is the place to be for lunch.

3815 N. Central Ave., Phoenix (602) 287-8700 fezoncentral.com

Luxury Top

Realtors Our Picks for the Best of the Best in Luxury Home Sales for 2013

Chey Castro • Walt Danley • Gayle Henderson Cathy Hotchkiss • Robert Joffe • Marnie Rosenthal • Sandra Wilken

See real estate listings inside by our top picks …

Top Luxury Realtors

The New Luxury Home Market There’s a nine-month supply of inventory, with more buyers than sellers

by RaeAnne Marsh

With “luxury home” generally defined as a home valued at $500,000 or more, a high percentage of Valley homes would have fallen into that category only a few years ago. Today, however, with the average Valley single-family residence valued at $160,000, “luxury home” encompasses a more select market.

Luxury properties span the Valley in gated and non-gated communities, and include horse properties and golf properties.

Number of active days on the market increases with listing price, averaging 133 days for houses in the $500,000 to $600,000 range and 373 days for houses listed at more than $3 million. The average listing in the luxury category is $1.35 million, and Lein notes appreciation is not markedly different from a year ago. Compared to non-luxury properties of $100,000 to $200,000 that appreciated 28 percent per square foot in the past 18 months, luxury home prices increased $3 per square foot.

A little more than 2,400 homes now on the market in the Greater Phoenix area qualify as luxury homes. Selling at an average of 250 per month, this is a 9.4-months’ supply; a year ago, there was an approximately 12.5-month supply. So the glut of homes on the market is definitely receding, and W. P. Carey School of Business reported in October that there were more buyers than sellers in today’s housing market overall.

Only a small percentage of homes in the luxury bracket are lenderowned, notes Howard Lein, owner of Scottsdale-based franchise RE/ MAX Excalibur Realty. Percent of active listings has dropped from 3 percent a year ago to 1.6 percent today.

In fact, foreclosed properties overall is no longer a dominant issue.

While America’s housing market is finally starting to really recover from the Great Recession, some areas of the country are fighting back faster than others. New research from the W. P. Carey School of Business at Arizona State University indicates one reason: Different states have dramatically different mortgage laws, and some — like Arizona — make it easier to push through tough times.

“The laws across states use different legal theories as the basis for mortgages, and they balance the rights of creditors and borrowers very differently,” explains Assistant Professor of Real Estate Andra Ghent of the W. P. Carey School of Business. “The variations started early in America’s history, and they’re not really based on

About this section:

As part of our service to our readers, our editorial staff has invited the top luxury real estate agents to provide information on themselves, their expertise and details relating to their business in this Top Luxury Realtors special section.

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economic reasons, but they’re still having a major influence on what’s happening now with the housing market.” Key, she says, is quick resolution of the situation. “For example, if a state requires a longer period before foreclosures can happen, then that generally means the homes deteriorate more as the borrowers realize they’re going to have to leave and stop taking care of the property. This is bad for the neighbors and the property values.”

Arizona is one of the states in which the damage happened relatively quickly, and there’s no longer a big backlog of foreclosures to go through the process. Center for Real Estate Theory and Practice at the W. P. Carey School of Business data shows Phoenix-area home prices have been rising dramatically since last fall.

The market is seeing “some pushback from second-home owners who are concerned about maintaining their second-home lifestyle” in light of possible tax changes, Lein says.

Other reasons for selling, he says, fall into the usual categories: death, divorce, relocation and kids growing up. And Lein observes, “There’s a pent-up demand for divorce. People couldn’t afford to get a divorce” when they were underwater on their mortgage.

There is some speculative purchasing, but that is primarily for the foreclosed properties. Other buyers of luxury homes are “move-up individuals,” says Lein, pointing out that even if unemployment is in the high teens, there’s another 80 percent who “are working and susceptible to moving up.” And then there are the multi-nationals who are buying their luxury homes here. Canadians make up a large part of this market; joining them are individuals from Pacific Rim countries, and new to the mix are Chinese. According to Lein, purchases by Chinese are largely trophy properties on the West Coast, but “Paradise Valley has had some sale to what’s reported to be Chinese, who are so new [to Arizona] that, in many cases, they’ve never seen the property” in person.

Lenders today have more to offer this market. Lein notes that two to three years ago, “there was literally nothing available.” But now, he says, “Every week, I’m being approached with new and improved financing programs for luxury-home buyers.”

LuTxopury

RE/MAX Excalibur Realty excaliburrealestate.com W. P. Carey School of Business wpcarey.asu.edu

The real estate market is improving and these agents are proven leaders in the Valley. In Business Magazine recommends these agents. Please visit inbusinessmag.com for more information and articles on the local real estate market.

Realto rs

Our Pic ks in Luxu fOr the Best ry hOme Of saLes fOr the Best 2013

Chey Cas tro • Wa chkiss lt Danley • Robert • Gayle Joffe • Hender Marnie Rosenthal son estate • Sandra

Cathy Hot

See real

listings

inside by

our top

Wilken

picks …

inbusine ssmag.com

Top Luxury Realtors

Chey Castro

Russ Lyon Sotheby’s International Realty One of the primary attributes that sets Chey Castro apart from other Realtors is his in-depth knowledge and understanding of the financial side of any transaction — a skill that enables him to ensure that his clients’ financial needs are very well served. A proud native of Arizona, Castro graduated from Arizona State University (4.0 GPA; Summa Cum Laude) with a business degree in finance and went on to earn a Masters of Science in accountancy from the University of Notre Dame.

In his first year at Russ Lyon Sotheby’s International Realty, he was honored to make the Phoenix Business Journal Book of Lists for top-producing Realtors, and continues to be on that list year after year. Castro was privileged to be the only Realtor inductee into the esteemed Phoenix Business Journal 40 Under 40 Class of 2012. His early experiences in real estate development fueled and solidified his passion for high-end residential sales. It is his exceptional attention to his clients’ needs and intricate knowledge of the market that has led him to quickly become a top luxury-market Realtor. Colleagues have described Castro as “positive,” “optimistic,” “trustworthy,” “hard-working” and “ethical” — traits that he values highly in both his work and his personal life. His hope and objective is that after he completes a real estate transaction with a client, he or she would also agree with these words.

Profile Name: Chey Castro, MSA Company/Broker Name: Russ Lyon Sotheby’s International Realty Main Office Address: 7135 E. Camelback Road, Suite 360 Scottsdale, AZ 85251 Phone: (602) 570-2516 Website: www.CheyCastro.com Designations: Master of Science in Accountancy Specialty Areas: Silverleaf, DC Ranch, FireRock, North Scottsdale and Paradise Valley

On The Market

Silverleaf

FireRock

Custom Home in the Upper Canyon at Silverleaf situated on a premium lot that backs to the McDowell Mountain Preserve.

Custom Home with breathtaking views and resort-style backyard with heated pool & spa, built-in BBQ, firepit & putting green.

tourfactory.com/912677

tourfactory.com/817044

$3,999,999

$2,195,000

SOLD IN 2012

SOLD IN 2012

Paradise Valley

Silverleaf

Single Level Custom Home with Venetian Plaster throughout and a lap pool with water slide and boulder-style waterfall.

Custom Home with charming outdoor courtyards at every turn and backs to a protected wash for exceptional privacy and city-light views.

tourfactory.com/782707

www.tourfactory.com/834554

$3,300,000

inbusine ssmag.com

$1,900,000

D e c e m b e r 2012

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Top Luxury Realtors

Walt Danley Walt Danley Realty

For more than 35 years, Walt Danley has been one of the most productive and respected Realtors in the Valley of the Sun’s dynamic luxury home market. He has built his success on four guiding principles; integrity, knowledge of the market, understanding the needs of his clients and old-fashioned hard work.

Danley’s peers have recognized his professionalism and his commitment to constantly improve and advance the industry he loves. Danley has served on the Professional Standards Committee for the Phoenix Association of Realtors, been involved in numerous panels providing guidance and instruction to new agents, and is always willing to lend a helping hand to other Realtors. He has also been selected as “Broker/Agent of the Year” on three occasions — an honor Danley cherishes because it is a tribute bestowed upon him by his peers.

2011 has been an especially exciting year for Danley, with the founding of Walt Danley Realty. Danley is grateful for many successful years with several of the Valley’s most respected brokerages, but he is especially proud of this latest accomplishment. Being able to provide clients exceptional boutique real estate service has always been Danley’s motivation; doing so under his own name is, quite simply, a dream come true.

Profile Name: Walt Danley Company/Broker Name: Walt Danley Realty Main Office Address: 6720 N. Scottsdale Road, Suite 140 Paradise Valley, AZ 85253 Phone: (480) 991-2050 Email: Walt@WaltDanley.com Website: www.WaltDanley.com Specialty Areas: Arcadia, Biltmore, Carefree, Cave Creek, Fountain Hills, Paradise Valley, Scottsdale

In addition to the contribution he makes to his profession, Danley is equally committed to improving our community. He is a strong supporter of the Humane Society, American Heart Association, Body Positive and the Arizona Science Center.

On The Market

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Lazy River Estate

Rare Bing Hu Design

Paradise Valley MLS# 4847214 5 Bedrooms, 6 Bathrooms 10,501 sq. ft.

DC Ranch MLS# 4822492 5 Bedrooms, 5.5 Bathrooms 6,198 sq. ft.

$5,699,000

$5,100,000

The Ultimate Biltmore Villa

Soft Contemporary with Views

Biltmore Mountain Estates MLS# 4727874 5 Bedrooms, 5.5 Bathrooms 6,951 sq. ft.

Scottsdale MLS# 4806932 3 Bedrooms, 2.5 Bathrooms 4,058 sq. ft.

$2,995,000

$799,000

inbusine ssmag.com

Top Luxury Realtors

Gayle Henderson RE/MAX Excalibur Realty

“Follow the Best, Work with the Best, Be the Best” is more than a motto, it is Gayle Henderson’s commitment to always give her best. A full-time Realtor in Scottsdale since 1993, Henderson lends her experience and teaching skills as a freelance writer and national speaker when asked. Since joining RE/MAX in 1998, Henderson has received many honors and awards from RE/MAX and her peers and yet she cites as her own philosophy that of an American statesman: “My mark in this industry is not about the awards, titles and acknowledgements, but rather it is the little things that matter. The way you treat people and the way they treat you is what really counts. It is all about service.”

With a firm belief in giving back to the community, Henderson contributes to Children’s Miracle Network and the Sentinels for Freedom, benefiting returning war veterans. Henderson holds the Certified Luxury Home Marketing Specialist designation. She has been honored for marketing excellence, joining the fewer than 5 percent of the nation’s Realtors holding ABR, CDPE, CIAS, CRS, GRI, e-Pro and CLHMS designations; a testimony to her commitment to education.

When you hire Gayle Henderson, you get the benefit of her knowledge, experience and sound judgment.

Profile Name: Gayle Henderson, PC Company/Broker Name: RE/MAX Excalibur Realty Main Office Address: 10458 E. Jomax Road, Suite 100 Scottsdale, AZ 85262 Phone: (602) 850-4335 Website: www.AZMovingPlan.com Designations: CRS,ABR, CLHMS, CDPE, IRES, CIAS,GRI,ePro Specialty Areas: Carefree, North Scottsdale, Northeast Phoenix, Paradise Valley

On The Market

Masterpiece of Southwest Living Located in the charming town of Carefree, this truly custom home maximizes Arizona’s informal lifestyle, incorporating the outdoor living spaces as extensions of the interior. Folding glass doors and windows incorporate the veranda with fireplace to the wet bar and great room. Cook’s kitchen has all the amenities imaginable, and two steps down from the casual dining area is a wine cave for storing your collection.

Three separate wings split the master and three bedroom suites. View additional photos online.

inbusine ssmag.com

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Top Luxury Realtors

Cathy Hotchkiss Russ Lyon Sotheby’s International Realty

Selling real estate is not only Hotchkiss’s job, it’s what she loves to do. Buying or selling a home is one of the most important decisions clients make, and she works as a tireless advocate for them while establishing long-term relationships built on care and trust.

She prides herself on outstanding service, personal support, extreme knowledge of the current market conditions and strong negotiation skills to enable clients to make sound, timely and secure decisions for their families. She has built a loyal clientele because she listens and understands what is necessary to achieve her client’s goals.

Hotchkiss’s partnership with Sport Star Relocation Arizona, www.ssraz.com, brings another personalized aspect to her business. The assistance she provides is invaluable to high-profile clients that require additional services beyond the realm of just selling homes. She ensures all business is conducted in a sophisticated, professional and discreet manor, and strives to keep all tasks and schedules on time in order to make transitions as smooth as possible.

The reputation of Russ Lyon Sotheby’s International Realty for the highest level of service and technology and the complete personalized services provided by Sport Star Relocation Arizona present a highly unique advantage in the luxury real estate market. Combined with Hotchkiss’s successful track record and prestigious designations and certifications, she has proven to be an expert agent in her field.

Profile Name: Cathy Hotchkiss Company/Broker Name: Russ Lyon Sotheby’s International Realty Main Office Address: 8852 E. Pinnacle Peak Road, Suite J-3 Scottsdale, AZ 85255 Phone: (480) 236-3336 Website: w ww.CathyHotchkiss.com www.SSRAZ.com Designations: Realtor®, ABR, CDPE, E-PRO, GRI, SRS, Institute for Luxury Home Marketing Specialty Areas: Scottsdale, North Scottsdale, and Paradise Valley

On The Market SOLD

SOLD

Echo Canyon

Silverleaf Upper Canyon

Highly sought-after Echo Canyon, 3 beds, 3 baths, 4403 sq. feet. Luxurious Master, Chef’s Kitchen, Fabulous Mountain Views.

5 bedrooms, 7.5 baths, 10,423 sq. feet. Fantastic custom home for entertaining, with fabulous panoramic city and mountain views.

$1,125,000

$3,800,000

Equestrian Estate

Landmark Condominium

Private & gated equestrian estate. 5 bedrooms, 6.5 baths, 7276 total feet. Beautiful custom main house with city & mountain views, separate guest house and caretaker apartment.

$2,875,000

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Upscale Gated Landmark Condominium, 2 bedroom, 2.5 baths, study, designer finishes & golf views, great location adjacent to the Westin Kierland Resort.

$579,000

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Top Luxury Realtors

Robert Joffe The Joffe Group

Robert Joffe brings nearly 30 years of operating experience in many facets of the real estate business. For the last 12 years, the Robert Joffe name has become synonymous with Luxury Real Estate. His business acumen is unparalleled in the marketplace and his professionalism, integrity and product knowledge have earned him the highest-quality reputation. Joffe enjoys producing results for his clients, who, more often than not, become his friends.

Profile Name: Robert Joffe Company/Broker Name: Russ Lyon Sotheby’s International Realty

Joffe created ARJ Investments, a full-service real estate firm with the added component of introducing independent investors to the real estate market. Since the company’s inception in 2000, Joffe has personally sold in excess of $750 million. He now has numerous investors who allow him to manage their money in various partnerships.

Main Office Address: 7135 E. Camelback Road, Suite 360 Scottsdale, AZ 85251

In 2006, Joffe joined forces with Russ Lyon Sotheby’s International Realty, a local luxury real estate giant. ARJ Investments is now The Joffe Group, and Joffe and his team are continually amongst, if not the, top producers in the company.

Website: www.thejoffegroup.com

Joffe has earned many awards and distinctions for his leadership and production. He is consistently ranked in The Business Journal’s Book of Lists as a top producer in the Valley, and most recently was honored by The Wall Street Journal as one of the top 250 agents in the nation.

His impressive individual rankings, as well as his superior team accomplishments, put The Joffe Group in a category of excellence that few have achieved.

Phone: (602) 989-8300 Designations: Associate Broker Specialty Areas: Arcadia, Paradise Valley and Biltmore

On The Market

Arcadia

Arcadia

This exquisite custom home is thoughtfully built with the finest-quality design and finishes. The fabulous exterior includes canterra and wood details rarely seen, and the interior is every bit as impressive.

Frank Lloyd Wright designed this unique house and separate guest quarters/ office in Arcadia, which sit on a phenomenal 2-acre lot with pristine views of Camelback Mountain.

$2,395,000 SOLD

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$2,515,000 SOLD

Arcadia

Arcadia

This is an extraordinary new custom home with thoughtful design and magnificent spaces! Custom ceilings with exposed beams and intricate design, brick, granite, wood flooring, limestone, marble and fabulous millwork are more of what this gorgeous home has to offer!

This elegant home is for the truly lucky! This chic European custom home is created with the highestquality craftsmanship and not a single detail is missing.

It easily parallels the finest homes you’ll find in the entire country, and the grounds are simply unbelievable.

$2,500,000

$3,000,000

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Top Luxury Realtors

Marnie Rosenthal Russ Lyon Sotheby’s International Realty

As a top producer in the Russ Lyon Sotheby’s International Realty organization, Marnie Rosenthal is a proven, successful real estate agent, specializing in Scottsdale homes for sale and lease within the Maricopa County real estate market. Year after year, her results-driven professionalism moves large volumes of luxury property in the North Phoenix, Scottsdale, Troon, Arcadia, Paradise Valley and Fountain Hills areas of Arizona.

Buyers and sellers alike trust her and refer Rosenthal because of her stellar work ethic and broad network of resources.

With an unparalleled expertise in real estate for both buyers and sellers, Rosenthal is unique in that she understands the client experience, and focuses on the client’s needs so as to not waste time. She surrounds herself with the most professional and capable experts in the business, creating a team that exudes service and reliability.

Her expectations for her clients to receive nothing but the best are why she is so well-known and revered in the real estate market in Arizona and beyond. She is accredited with some of the most prestigious designations. Rosenthal’s certifications exemplify the value she places on current knowledge and education. Certifications are an Accredited Buyers Representative (ABR), Certified Short Sale Negotiation (CSSN), Certified Distressed Property Expert (CDPE) and National Association of Realtors® Green Designation (GREEN).

Profile Name: Marnie Rosenthal Company/Broker Name: Russ Lyon Sotheby’s International Realty Main Office Address: 7135 E. Camelback Road, Suite 360 Scottsdale 85251 Phone: (480) 298-2971 Website: www.mySilverleafdreamhome.com Designations: CDPE, CSSN, CNE, SFR, ABR, GREEN, HAFA Specialty Areas: Silverleaf, DC Ranch, Grayhawk, McDowell Mountain, Troon, Desert Mountain Golf Club, Mirabel Golf Club, Estancia Golf Club, Paradise Valley, Arcadia, Phoenix

On The Market

Fountain Hills Spectacular custom estate in the heart of North Scottsdale.

Panoramic views of mountain and city lights. This home spared no expense on details and upgrades.

Contemporary secluded designer estate overlooking the valley with amazing 360º views from every vantage point. Sleek décor, finishes and architecture throughout home enhance it’s spectacular views.

$2,800,000

$4,500,000

Mirabel Golf Country Club/Scottsdale

Candlewood Estates/ Troon on Skinner

Incredible new construction with Tuscan architecture in prestigious guard-gated golf club on the golf course!

Showcasing golf course and mountain views. Built with the highest materials and finishes.

Exquisite private estate with large Guest house in the wonderful area of Troon, North Scottsdale. Disappearing doors open the entire home, allowing the outdoors in! Truly an ENTERTAINER’S PARADISE!

$1,250,000

$2,500,000

Scottsdale

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Top Luxury Realtors

Sandra Wilken Sandra Wilken Luxury Properties

Since founding Sandra Wilken Luxury Properties in 1995, Sandra Wilken has worked to create a firm that combines the expertise and networking power of a large corporation with the personal attention and detail-oriented service of a boutique firm. This devotion to personal attention is key to SWLP’s philosophy. Whereas many firms can lose sight of the client’s needs in the competitive atmosphere of luxury real estate sales, the team at SWLP is firmly dedicated to giving each client the time and attention he or she deserves.

Knowledge is power in the real estate market, and, for this reason, SWLP prides itself on its “Team of Experts” approach to sales. The staff at SWLP brings a diverse set of skills to the table, and is intimately acquainted with the neighborhoods it services, such as Gainey Ranch, Paradise Valley, North Scottsdale, Silverleaf and DC Ranch, keeping its finger on the “pulse of the marketplace,” so to speak.

With a reputation for professionalism and an impressive track record of results, SWLP continues to improve and expand. With clients from across the globe, and a widespread network of contacts, Sandra Wilken Luxury Properties has become a company of international stature.

Profile Name: Sandra Wilken Company/Broker Name: Sandra Wilken Luxury Properties Main Office Address: 8777 N. Gainey Center Drive, Suite 178 Scottsdale, AZ 85258 Phone: (480) 596-0001 Website: www.sandrawilken.com Specialty Areas: Paradise Valley, Scottsdale, Phoenix, Biltmore, Arcadia and Golf Course Communities

On The Market

Whisper Rock

Homestead Located in Paradise Valley 5 Bed/ 5.5 Bath 6,718 sq. ft.

In the gated community of Whisper Rock 4 Bed/ 4.5 Bath 6,172 sq. ft.

$2,395,000

$2,395,000

SOLD

SOLD

Arcadia Located in the Vineyards at Arcadia 6 Bed/ 5.5 Bath 6,341 sq. ft.

$1,700,000

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Silverleaf Located in the gated community of Silverleaf 5 Bed/ 7 Bath 10,423 sq. ft.

$4,349,000

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Index Index by Name

Fick, Cynthia, 20

Laraway, Daniel, 20

Purkiss, John, 27

Barrett, Robyn, 10

Ghent, Andra, 40

Lee, Bill, 26

Rosenthal, Marnie, 46

Barthelemy, Joel, 18

Goldman, Rich, 20

Lein, Howard, 40

Royston-Lee, David, 27

Bateman, Deborah, 9

Hardenbrook, Donovan, 31

Lewis, John, Mayor, 12

Rutkowski, Paul, 20

Broome, Barry, 14

Hendersen, Gayle, 43

Malin, David, 34

Saviola, Stefania, 27

Bryant, Trelitha R., 14

Hess, Edward D., 34

Marazza, Antonio, 27

Short, David, 34

Calkins, Tim, 27

Hotchkiss, Cathy, 44

Niaura, Bill, 14

Stark, Trish, 23

Castro, Chey, 41

Joffe, Robert, 45

Nichols, Bob, 20

Sullivan, Mike, 20

Danley, Walt, 42

Jones, Valerie, 30

Niven, Dennis, 36

Tilque, Kathy, 12

DeGraw, Rick, 10

Karvis, Patrick, 38

Peelen, Tad, 12

Weddle, Peter, 50

Dudley, George W., 14

Keuth, Don, 34

Porter, Marsha, 30

Wilken, Sandra, 47 Young, Jeff, 10

Index by Company 4th Wall Productions, 12

Customer Reference Forum, 26

Joe’s Real BBQ, 12

SkyDesktop, 12 Southwest Valley Chamber of Commerce, 33

Delta Dental, 3

Joffe Group, The, 45

5 Arts Circle, 4

Desert Ridge Marketplace, 34

Laraway Financial Group, 20

Ahwatukee Foothills Chamber of Commerce, 32

Desert Schools Federal Credit Union, 20

Leap Innovation, 31

Alerus Bank & Trust, 15

Downtown Mesa Association, 34

Maricopa Community Colleges, 17

Driver Provider, The, 19

Maricopa County Attorney’s Office, 8

FEZ, 38

Mesa Arts Center, 34

Financial Life Planners, L.L.C., 20

Mountainside Fitness, 37

First Financial Equity Group, 10

National Association of Women Business Owners, 32

Arizona Hispanic Chamber of Commerce, 32 Arizona Small Business Association, 32 Arizona Technology Council, 12, 32 Arthritis Foundation Arizona, 30

First Western Trust, 23

AT&T, 13

FSW Funding, 10

Avnet, 48

Gilbert Chamber of Commerce, 12

AZIGG, 33

Gilbert Republic, The, 12

B2B CFO, 36

Gilbert, Town of, 12

BBVA Compass Bank, 51 Behavioral Sciences Research Press, 14 BMO Harris Private Banking, 20 Bridgestone Corporation, 14

Glendale Chamber of Commerce, 32 GlobalMed, 18 Gold’s Gym Elite, 37

Central Phoenix Women, 32

Greater Phoenix Chamber of Commerce, 31, 32

Children’s Museum of Phoenix, 8

Greater Phoenix Economic Council, 14

Cibo, 38

Holmes Murphy, 4

CityScape Phoenix, 34

Infusionsoft, 15

Cox Business, 7

iStar Financial, Inc., 34

Crisis Nursery, 30

Jackson Street, 34

National Bank of Arizona, 9, 52 Nelson Financial Services, 20 New Angle Media, 31 North Phoenix Chamber of Commerce, 32 Phoenix Community Alliance, 34 RE/MAX Excalibur, 40, 43 Rich Goldman Asset Management, 20 RnR, 38 Russ Lyon Sotheby’s International Realty, 41, 44, 45, 46 Sandra Wilken Luxury Properties, 47 SCF Arizona, 2, 10 Scottsdale Area Chamber of Commerce, 32

Surprise Regional Chamber of Commerce, 33 Tempe Chamber of Commerce, 33 Tempe Marketplace, 34 U.S. Census Bureau, 12 United Healthcare, 5 Valley Forward Association, 33 Vestar, 34 Village Racquet & Health Club, 37 Walt Danley Realty, 42 Waste Management Phoenix Open, 11 Wells Fargo, 19 West Valley Women, 33 Westgate City Center, 34 Westgate Entertainment District, 34 Wildhorse Grille at Talking Stick Golf Club, 38 Women of Scottsdale, 33 W. P. Carey School of Business, 40 Bold listings are advertisers supporting this issue of In Business Magazine.

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D e c e m b e r 2012

49

Roundtable

A Candid Forum

Standardized People Won’t Win America’s Future We need to recognize — and nurture — all the capabilities that are not reflected in a standardized test

by Peter Weddle Ever Since the No Child Left Behind Act amped up standardized testing throughout the nation in 2002, critics say results have been negative. The bottom line is, there is no clear correlation between standardized testing and the knowledge and skills kids will need to prosper in the 21st-century world of work.

It seems we’re more interested in creating a homogenized work force than a nation of individuals who have learned what their talent is and how to bring it to work with them.

Consider these statistics: ■■ Annual state spending on standardized tests has increased by 160 percent — from $423 million in 2002 to $1.1 billion in 2008, according to the Pew Center on the States.

■■ Since 2002, the United States dropped from 18th in the world in math on the Programme for International Student Assessment to 31st place in 2009, with a similar drop in science and no change in reading.

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■■ The NCLB Act has drastically narrowed content, according to a study by the Center on Education Policy.

This problem begins very early on. We take kids in elementary school and give them tests. Those who do well are designated as “gifted and talented,” which means that everyone else is, by definition, ungifted and untalented. And that’s just not true. In effect, we’re devaluing all the capabilities that are not reflected in a standardized test. Of course, we want to take care of our academically proficient kids, but we have to find a way to do that without signaling to every other child that they were at the end of the line when talent was handed out.

Too many Americans are stuck in old ways of thinking, from the classrooms of our elementary schools and colleges to the workplace. But we’re in a new economy, and the path to the American Dream has changed.

That means our old-school thinking must change as well.

We need to accept that the economy has changed. The first step to change is acknowledging it’s needed. Our employers are no longer competing with cheaper labor; they’re up against smarter labor worldwide.

We hold a trump card, however: We have the most diverse pool of talent on the globe, whereas countries such as China and India have, by choice, a homogenous work force.

We must give career education greater priority. In China, every college student must, as a requirement of graduation, take a yearlong course that teaches them the skills and knowledge to manage their own careers effectively. In the United States, that instruction is missing from college curricula.

This is important information, especially as 53.6 percent of all college graduates under the age of 25 are now either unemployed or underemployed.

We need to redefine talent so we can use it. Our culture has taught us that talent is the province of exceptional people doing exceptional things. We can see the talent of Lady Gaga but not the talent of an accounts payable clerk. And that’s myopic. We are all endowed with talent — whatever profession or avocation its performance may enhance — but we have to discover it, nurture it and then bring it to work with us.

We have to see ourselves as a “work in progress.” The world of work is changing at warp speed — new technology, shifts in the global marketplace and changes in consumer tastes. That’s why we need to be committed to continuous learning. Regardless of our educational degree, years of experience or level of seniority, we need to be acquiring new skills and knowledge all of the time.

Peter Weddle, a former recruiter and human resource consultant, is CEO of the International Association of Employment Web Sites, a trade organization. He has written or edited more than two dozen nonfiction books regarding careers and employment; he puts that knowledge into a new context in his first work of fiction, A Multitude of Hope: A Novel About Rediscovering the American Dream. Weddle is founder and former CEO of Job Bank USA, Inc., one of the largest electronic employment services companies in the United States.

Go online for more!

Visit our “Roundtable” link online.

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