December 2014 Issue of In Business Magazine

DEC. 2014

Special Section: Spotlight on Top Luxury Real Estate Agents

THE

?

S S E IN S U B R O F T S BOOM OR BU

Where

Office Wagering OK?

Don’t Bet on It.

Bias Lurks

in the Workplace Captive Insurance:

Financial Tool THIS ISSUE Scottsdale Area Chamber of Commerce National Association of Women Business Owners – Phoenix

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Do you really want to tell your employees the best pediatric care is not in their network?

Your employees and their families deserve the best care.

Phoenix Children’s is among a select group of children’s hospitals recognized for excellence in meeting the highest standards for patient safety, quality and value.

Make sure your plan includes Phoenix Children’s Hospital and PCCN, its network of physicians, so the best is available for your employees and their families.

PhoenixChildrens.org

DECEMBER 2014

COVER STORY

22

The Immigration Effect: Boom or Bust for Business?

Probing the subject of immigration with business and community/political leaders, Joe Bardin examines questions of workforce talent, business innovation, global trade, revenue and economic growth.

FEATURE

28 SPECIAL SECTIONS

DEPARTMENTS

19

Captive Insurance Is a Financial Tool

Captive insurance is a separate legal entity, and RaeAnne Marsh examines how it is used by a parent company to cover insurable risks in a more cost-effective manner.

WINTER 2014

DEPARTMENTS

SCOTTSDALECHAMBER.COM

Photo: Sergio Dabdoub Photography

MEMBER COMMUNIQUÉ

Scottsdale Spice turns up the heat on World Chef Competition Scottsdale’s newest culinary event crowned some of the “hottest” chefs in the Valley on Sat., Sept. 27, 2014, who showcased some of their spiciest dishes — and where one chef was selected to compete for the world title.

More than 700 attended the inaugural Scottsdale Spice Culinary Event, presented by Comerica Bank, at the Venue in downtown Scottsdale to sample dishes with a variety of heat levels prepared by some 20 Valley restaurants.

Not just a local foodie event, Scottsdale Spice was selected as a qualifying event for the World Chef Challenge in Las Vegas. At the Challenge, which took place in November 2014, one chef took home $25,000 in cash and prizes. Spicy Awards were also handed out at

Scottsdale Spice for favorite hot, medium and mild dishes, best overall dish and best booth décor.

Kate Crowley, food reviewer for Phoenix New Times; Mike Wahlberg, executive chef at Vintage 95 in Chandler; and Joanie Simon, host of “Restaurant Live Arizona,” judged 20 dishes based on flavor and presentation to determine who would earn the Golden Ticket and the right to compete at the World Food Championship.

“Scottsdale Spice is the first event of its kind for the Scottsdale Area Chamber,“ said Anna Mineer, vice president of business development for the Scottsdale Area Chamber of Commerce. “We give a huge thank-you to our sponsors, restaurant partners, SPICE — CONTINUED ON PAGE 2

Message from the CEO The 29th Annual Sterling Awards, which honored excellence in micro business, small business, big business and nonprofits, was a rousing affair. Themed by Merestone, the Valley’s finest event production company, this superhero event could not have been more appropriate.

Twelve great firms were honored as finalists — and one finalist from each of the four categories was named an honoree.

When one looks at what ends up separating the good from the great — and every finalist we can deem great — the word “stewardship” comes to mind. In many ways an overused word that has lost some of its meaning, stewardship in its truest sense has become a standard for Sterling and a standard for the best in business.

Rick Kidder

In a business context, stewardship takes many forms.

Community stewardship is the commitment of a company to be “of” a place rather than simply “in” it. Employee stewardship implies that the leadership of a company is keenly interested in the well-being, success and general happiness of its employees. Financial stewardship means that company protects and enhances its value. Customer stewardship is demonstrated when the focus is less about transactions and more about forging relationships and building loyalty. These parts together remain the components for the broader term “stewardship,” but a truly successful company works on all four as priorities.

So, from where does a complete sense of the culture of stewardship spring? In simple terms, stewardship comes from the top. Whether a tiny business or a major corporation, the person KIDDER — CONTINUED ON PAGE 2

SCOTTSDALE@WORK - 1

39 Scottsdale Area

Chamber of Commerce Partner section

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Guest Editor

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Winter 2014 • nawbophx.org

Women Flexing Their Economic Muscle

By Dorothy Wolden, President 2014-2015

About NAWBO

For more information, please visit NAWBOphx.org.

Phoenix Metropolitan Chapter of the National Association of Women Business Owners 7949 E Acoma Dr., #207 Scottsdale, Arizona 85260 480-289-5768 info@NAWBOphx.org

A recent report by American Express OPEN shows that there are now 9.1 million women-owned businesses in the United States. These firms generate more than $1.4 trillion in revenue and employ more than 7.8 million people, according to the report. In terms of growth in combined economic clout, Arizona is ranked fourth. The statistics of the success of women-owned and -led businesses are undeniable, but there is still plenty of work to be done.

The number of women-owned firms continues to grow at a rate exceeding the national average, yet women-owned firms only employ 6 percent of the nation’s workforce and contribute just under 4 percent of business revenues — roughly the same share they contributed in 1997. The real issue at hand is not getting more women to start business, but rather providing support to women who are already in business to enable them to grow their enterprises to the next level.

Imagine the economic impact if more of these ventures were transformed into thriving businesses. This is why NAWBO remains so passionately dedicated to helping women entrepreneurs become successful business owners.

Here are some great reasons you should support womenowned businesses: 1. Women have the right stuff - Women make better leaders than men, according to research conducted by Zenger Folkman. “They build better teams; they’re more liked and respected as managers; they tend to be able to combine intuitive and logical thinking more seamlessly; they’re more aware of the implications of their own and others’ actions; and they think more accurately about the resources needed to accomplish a given outcome,” said Jack Zenger and Joseph Folkman in Forbes.

2. The proof is in the pudding: A report by Dow Jones VentureSource finds that women deliver better company performance. Venture-backed companies where females are the senior executives are more likely to succeed than companies with only men in charge, according to Women at the Wheel: Do Female Executives Drive Start-Up Success?.

VC firms that invest in women-led businesses performed better than all men-led businesses, according to the SBA Office of Advocacy.

3. Diversity improves performance and increases innovation: Organizations that are the most inclusive of women in top

Feedback

30

Noted business and community leaders Elizabeth S. Chatham, Esq.; Grant Dipman; and Consul General Roberto Rodriguez respond to IBM’s burning business question of the month.

Dorothy Wolden President, NAWBO Phoenix

Dorothy Wolden President NAWBO-Phoenix 2014-2015 Gravity Webworks 130 N. Central Ave., Suite 301 Phoenix, AZ 85004 602-258-1300 dwolden@gravityphx.com Years in Business: 12 Years in NAWBO: 6

Continued on page 8

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nawbophx.org

NAWBO NEWS

47 National Association

of Women Business Owners – Phoenix Partner section

Top

2015

Real Estate Agents Walt Danley • Cathy Hotchkiss Kevin Owens • Sandra L. Wilken Presented By:

2015 RECIPIENT

D E C . 20 1 4

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57 Top Luxury Real Estate Agents Our picks for the best of the best in luxury home sales for 2015

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Briefs

36

Assets

2015 Lincoln Navigator Plus: The latest in high-speed tablets

38

Power Lunch

Gallo Blanco

Technology

Plus: “Assembly line” restaurants for customized meals

“The Fabric of Our Lives,” “Text Has Feelings, Too,” “Kitchen Command,” “New ATM Prods Consumer Behavior” and “Mapping Helps Schedule Business”

56

Roundtable

Biases we don’t even know we have can impact how we manage the people we work with.

Healthcare

“Avondale: Health-Conscious Development,” “Servicing Home Health to Curb Healthcare Costs” and “eHealth: Technology Advances Healthcare Delivery”

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Nonprofit

Understanding “why” people give may help executives sitting on nonprofit boards better understand and appeal to their donors.

“Stay Up on Data Privacy & Security,” “For Spending ‘Kabbage’,” “e-Commerce for Small Biz,” “Business Opportunity Is a Dutch Connection,” “A True Business Partnership,” “Living Wright,” “Airport Industrial,” “Scottsdale Lifestyle,” “Holiday Party: Potential Hazard” and “Move Fast for the R&D Tax Credit Refund”

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Luxury I N B U S I N E S S M AG . CO M

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Books

New releases give fresh insights on business thinking.

Celebrating 29 years of serving the women business owners of Phoenix

NAWBO® prides itself on being a global beacon for influence, ingenuity and action and is uniquely positioned to provide incisive commentary on issues of importance to women business owners.

NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power.

Visit one of our FREE welcome meetings, held the second Wednesday of each month – for all new and prospective members. This casual, informational opportunity highlights both local and national benefits of NAWBO membership. This is a great place to determine if NAWBO is a fit for you and your business.

Take advantage of this great networking opportunity by bringing business cards and making connections.

Legal

Attorneys discuss the legal risks of friendly office gambling.

United States Senator Jeff Flake introduces the “Immigration” issue.

10

From the Top

View from the top looks at how event organizer Robb M. Corwin goes over the top for his events and his employees.

ON THE AGENDA

33

Spotlight

Arizona Forward’s 45th Annual Luncheon

By the Numbers

StartupConnect AZ — The Arizona Technology Council

American Express OPEN Small Business Monitor reports optimism on the rise among Arizona’s small businesses.

34

Calendar

Business events throughout the Valley

Take a second look at bias in the workplace.

Page 66.

Take two pills and Skype me in the morning … eHealth is becoming mainstream. Page 16

Because not all solutions are black and white.

TM

ONE ARIZONA CENTER | 400 EAST VAN BUREN STREET | SUITE 1900 | PHOENIX, AZ 85004 DENVER | LAS VEGAS | LOS ANGELES | LOS CABOS | ORANGE COUNTY | PHOENIX | RENO | SALT LAKE CITY | TUCSON

December 2014 In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

PARTNER ORGANIZATIONS Rick Murray, CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org Doug Bruhnke, Founder & President Global Chamber (480) 595-5000 www.globalchamber.org Dorothy Wolden, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org Rick Kidder, President & CEO Scottsdale Area Chamber of Commerce (480) 355-2700 www.scottsdalechamber.com Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities.

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

ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com Arizona Hispanic Chamber of Commerce azhcc.com Chandler Chamber of Commerce chandlerchamber.com

Conquest Training Systems is Giving Away $ 1 , 0 0 0 , 0 0 0 in Sales Training to Veterans

100 selected veterans will each receive $10,000 in sales training through Conquest’s “Selling System” that will give veterans opportunities to acquire six-figure sales positions in a variety of industries. The development platform will consist of Training, Coaching, and Real World Experience. Conquest will even assist in placement of a sales position!

Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Black Chamber of Commerce phoenixblackchamber.com Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com WESTMARC westmarc.org

Applications are now being accepted. For more information please email i n f o @ c onqu e s t t r a i n i ng . c om Untitled-3 1

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December 2014

VOL. 5, NO. 12

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers Joe Bardin Michael Dimengo Mike Hunter Sue Kern-Fleischer Alexandra Lyon Howard Ross Alison Stanton Contributing Photographer Camron McCartney ADVERTISING

Operations Louise Ferrari

Business Development

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

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

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

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

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

Visit inbusinessmag.com now to post your open positions!

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Corporate Offices 4455 E. Camelback Road Building C, Suite 135 Phoenix, AZ 85018 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com

www.inmediacompany.com Vol. 5, No. 12. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope.

InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/ or financial professional. Š 2014 InMedia Company, LLC. All rights reserved.

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

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U.S. SENATOR JEFF FLAKE

Borders and Business

U.S. Senator Jeff Flake is a fifth-generation Arizonan who was raised on a cattle ranch in Snowflake. Before his election to the U.S. House, he worked in southern Africa as executive director of the Foundation for Democracy in Namibia, and as executive director of the Goldwater Institute in Arizona, promoting limited government, economic freedom and individual responsibility.

Prior to his election to the U.S. Senate, Sen. Flake served in the U.S. House of Representatives from 2001-2012. In the Senate, he sits on the Foreign Relations Committee, where he is ranking member of the Subcommittee on African Affairs, and on the Judiciary and Energy and Natural Resources committees.

Immigration is a hot-button topic throughout our country, and policies impact many aspects of our lives. Whatever problems our country faces, we continue to be seen as the “land of opportunity,” attracting people for educational, business, political and personal reasons. The topic is especially compelling here because Arizona is a border state. Our focus in this December edition of In Business Magazine is how immigration touches business.

Across the spectrum of skill levels, from first-time agricultural workers to U.S.-trained foreign Ph.D.s, there are domestic industries that rely and will continue to rely on foreign labor. If our economy is to rebound and the United States is to stay on the cutting edge of innovation in the global marketplace, our immigration system has to ensure that U.S. businesses have access to the workers they need, and that we remain a place for the world’s best and brightest to find a home.

Even as strictly a business issue, immigration has multiple facets. In this month’s cover story — “The Immigration Effect: Boom or Bust for Business?” — Joe Bardin examines questions of workforce talent, business innovation, global trade, revenue and economic growth. Business and community/political leaders are forthcoming with him as to their experience and goals regarding immigration as a force on business.

I am also pleased to introduce readers to the other articles that will appear in this month’s issue, including a piece on captive insurance — an alternative to traditional policies — and another on office pools as gambling. And Howard Ross gives readers a view of how basic bias is in human interaction and how to mitigate its impact in the workplace.

With more articles on business activity, healthcare, technology and more to inform and engage the reader, In Business Magazine continues to be a reliable resource for the Greater Phoenix business community. I am pleased to have been invited to contribute.

Sincerely,

Jeff Flake United States Senator – Arizona

CONNECT WITH US:

We want to thank Senator Jeff Flake for his involvement with this

examine whether or not its immigration issue is an asset or a

issue of In Business Magazine and for all that he continues to do for

deterrent for economic growth. It is one thing to talk about law

the people of the State of Arizona. As a leader on the immigration

and regulation to protect what we’ve become, but there is also

discussion, he and his staff work hard to hear all viewpoints and

the consideration that immigration is what made America the

to engage all of those involved in the issue to seek solution and to

country it is today. Joe Bardin spoke to key players and authorities

empower our economic picture here. Not an easy task and certainly

for the overall economic picture, and what we discovered is that

there are no easy solutions to appease all involved. Looking at

open-mindedness and opportunity prevail and that there are many

immigration from strictly an economic angle may make it a bit

reasons why immigration is a benefit to Arizona.

easier to assess, as growth and opportunity are what most want to realize.

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

Surprise Regional Chamber of Commerce’s Goodie Bag program supports our military personnel and promotes local business. Page 34.

Story Ideas/PR: editor@ inbusinessmag.com

Defining Our Place Arizona is many things to business, and we determined to

Businesses would be wise to be wary of potential liabilities as they plan the annual holiday bash.

Page 14.

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

—Rick McCartney, Publisher

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VALLEY LEADERS SOUND OFF a business issue separate from social implications, how can immigration impact Q: Asbusiness or industry?

ELIZABETH S. CHATHAM, ESQ. Partner Davis Miles McGuire Gardner, PLLC Sector: Law

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

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

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The employment-based immigration changes are quite significant and impact American business by further facilitating the hiring and retention of highly skilled foreign talent. President Obama’s executive action directs U.S. immigration agencies to modernize our visa system, making optimal use of visas available under the law.

Highly skilled employees, mostly from India, China and Mexico, will be allowed to port to new U.S. employers with more flexibility, while parole entry into the U.S. and expansion of guidelines for National Interest Waiver options for foreign entrepreneurs will encourage innovation and investment.

The electronic permanent residency program (PERM) will be modified to avoid backlogs and delays in adjudication, and clear government guidance for L-1B specialized knowledge visas will enable more reasonable adjudications for U.S. companies. Lastly, the length of time permitted for OPT (work authorization) for STEM graduates is anticipated to be expanded to include non-STEM fields.

Davis Miles McGuire Gardner, PLLC davismiles.com Recently awarded Best Lawyers in America 2013 and 2014 for her work in immigration law, Elizabeth S. Chatham, Esq. has, represented Fortune 100 and 500 hightechnology companies, and a variety of other organizations on complex immigration matters. She has worked for the United Nations, A naturalized U.S. citizen, India-born Chatham also understands the immigration process from personal perspective.

GRANT DIPMAN General Manager The Ritz-Carlton, Phoenix Sector: Hospitality At the Ritz- Carlton Phoenix, we value diversity and truly believe in the benefits of a diverse workforce. One of the core values of our brand speaks to creating a work environment where diversity is valued. We encourage our employees to be involved in making decisions creating innovation within their areas. Our ladies and gentlemen represent different cultures, regions, ages, religions, and experiences.

This diverse workforce brings people together with different backgrounds and beliefs, creating greater synergies and better ideas.

From a guest perspective, The RitzCarlton has grown rapidly internationally with properties located throughout the world and continued plans for expansion in the future. As the world becomes smaller and our company continues to expand internationally, it is important for us to understand and embrace guests from all different locations and cultures.

The Ritz-Carlton, Phoenix ritzcarlton.com Grant Dipman has enjoyed a twenty-two-year career with The Ritz-Carlton Hotel Company, holding senior leadership roles at The RitzCarlton Hotels in cities across the country. He holds a BBA in Finance from the University of Georgia and has earned his CMP designation, recognizing those that have achieved the highest standard of professionalism in the meetings and conventions industry. He has won multiple industry honors, including the ISIS Esprit and the Special Events Magazine Gala Awards.

EMB. ROBERTO RODRÍGUEZ HERNÁNDEZ Consul General Consulate General of Mexico in Phoenix Sector: Government Forty percent of the companies included in Fortune 500 were founded by first- and second-generation immigrants, creating 10 million jobs. According to a study by the Partnership for a New American Economy (PNAE), 28 percent of the businesses established in 2011 are owned by immigrants, and employ 10 percent of U.S. workers. Mexicans make up 12 percent of the immigrants who own a small business. Around 570,000 businesses in the United States, more than 1 in 25, are owned by a Mexican immigrant, and together they generate more than $17 billion in revenue per year.

Mexico and the United States have long recognized the importance of building a prosperous border that thrives and contributes to the welfare of communities in both countries. Sharing the objective of promoting greater economic competitiveness and security, the two governments work together through an Executive Steering Committee (ESC) that regularly monitors and ensures the implementation of specific actions to facilitate the movement of goods and people in a safe, efficient, expeditious and lawful manner.

Consulate General of Mexico in Phoenix consulmex.sre.gob.mx/phoenix In his 37-year career in the Mexican Foreign Service, Consul General Rodriguez has had several appointments both overseas and at the Mexican Ministry of Foreign Affairs. He was leader of the High Security Consular Identification Card that provides the opportunity for Mexican citizens to open bank accounts in the U.S.

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

QUICK AND TO THE POINT

BYTES

Stay Up on Data Privacy & Security The Data Privacy & Security Team of national law firm Quarles & Brady LLP,

Business Opportunity Is a Dutch Connection There is significant business opportunity for Arizona companies with the Kingdom of the Netherlands. The most recent figures show Arizona exported more than $350 million to the Netherlands in 2013, and Dutch trade and investments here support more than 7,000 jobs in Arizona. Honorary Consul Siebe K.J. van der Zee, in the Phoenix office of the Consulate General, notes the Netherlands affords companies looking to increase their market to Europe an optimal location central to Europe’s three largest economies — Germany, the United Kingdom and France. The country, a little bigger than Maricopa County, serves as a gateway to Europe in another way as well: “Ninety-four percent of the people speak another language,” said Consul General Hugo G. von Meijenfeldt during a recent visit to Phoenix, crediting the country’s historical trading tradition. “You have to speak with the people you want to trade with.”

Scottsdale-based Global Dental Science, which uses a digital platform to make dentures, is a local company that established itself in the Netherlands in September 2013. “It has worked out very well,” says COO Barbara Thompson. “The business climate is very open to new technology, and our product is based on technology,” she says. “When we set up the structure of our new company, there was a lot of assistance and openness, helping us understand how to do business there.” The government offered incentives to do a study to determine the best way to structure the business. And the autonomous Employee Insurance Agency helped GDS implement employee laws and helped the labor market get training for new jobs. “We set up the training, and they offered incentives to help offset the early costs of the employees while they were being trained.”

Excellent infrastructure to move product encompasses physical — harbors, trains, airports and freeways — as well as the Internet. “All fiber networks enter Europe and the U.S. from Amsterdam,” van der Zee says.

Attracting business is a purposeful focus. “The Netherlands Foreign Investment Agency proactively looks for companies,” says Stans Kleijnen, director of the NFIA in San Francisco. The top sectors she names are high-tech, agriculture, water and life science.

And there is growing interest by Dutch companies in doing business in Arizona. “Traditional investment has been in the East Coast, but businesses are looking west to the West Coast, and it’s convenient to supply California from Arizona” — which has less bureaucracy and no earthquakes, says Honorary Consul von Meijenfeldt. —RaeAnne Marsh

which has three offices across Arizona in Phoenix, Scottsdale and Tucson, has launched Safe & Sound, a blog that provides a practical, business-focused discussion of the legal issues relating to the privacy and security of a company’s data. This blog will keep businesses aware of current events, news and legislation in this area. safeandsound.quarles.com

For Spending ‘Kabbage’ Entrepreneurship is on the rise, and Kabbage is stepping in where banks aren’t going.

Kabbage is designed as a quick fix for companies that need money to buy inventory, ramp up personnel, purchase equipment and more. Forget the credit score; to assess creditworthiness, Kabbage’s computers analyze data such as transaction history, user feedback ratings, and even online game play and social-media participation to quickly determine how much cash it’s willing to offer and what to charge for the service. kabbage.com

e-Commerce for Small Biz GoDaddy, the technology provider dedicated to small businesses, launched the new GoDaddy Online Store, a product designed to make it easy for small businesses to create an e-commerce presence and sell products online. Shares Candis Jones, owner of thejonesmarket.com, “We graduated to GoDaddy Online Store and our sales have soared. Not only is it cost-effective and simple, but the customer service has been quick and personable. We have a beautiful

Kingdom of the Netherlands the-netherlands.org

website that is consistent with our brand.”

Netherlands Foreign Investment Agency nfia.com

godaddy.com/ecommerce/online-store.aspx

VISUALIZE

A True Business Partnership Social Venture Partners is an international network of engaged philanthropists who invest time, money and professional expertise in local nonprofits. In Phoenix, they focus on helping nonprofits that increase children, families and individuals’ resilience to risk factors, and increase children’s ability to succeed academically. Established in 1999, as the second SVP in the Global Network, SVP Arizona has contributed just above $3.9 million and thousands of volunteer hours to 100+ nonprofits in our desert community. socialventurepartners.org/arizona

The first country to officially recognize the fledgling nation of the United States of America in 1776, the Kingdom of the Netherlands remains an important trading partner — the No. 1 destination for U.S. foreign direct investment, it attracted $645 billion U.S. investments in 2012.

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QUICK AND TO THE POINT

Living Wright Cahava Springs is a 982-acre, fully entitled, masterplanned preserve community located in the Town of Cave Creek. The community will include 230 estate home sites, and 82 percent of the property’s natural desert land will be preserved. Cahava Springs is the only development in Arizona with a licensing agreement with the Frank Lloyd Wright Foundation. Frank Lloyd Wright School of Architecture at Taliesin West students and faculty designed the architecture of the initial homes. cahavasprings.com

Airport Industrial With recent approvals by the Chandler City Council, planning has begun on Chandler Airport Center, a general industrial park at Germann and Cooper roads. The 20-acre site is located immediately north of the Chandler Municipal Airport, with direct access off the Loop 202, and is being developed

by Meritex Chandler LLC in association with Tempe-based Metro Commercial Properties, who anticipate completion of the final project design specification in December with a planned first-quarter 2015 groundbreaking. lee-associates.com/arizona

Scottsdale Lifestyle Lifestyle townhome community Aerium, located on 70th Street and Goldwater in the heart of downtown Scottsdale, is beginning construction this month with completion expected in 18 months. In spring 2015, three model homes will be open. The overall project density is 19.7 units per acre, well below the 50-per-acre maximum allowed in Scottsdale’s Downtown Overlay District. Being developed by Landmark Homes USA, Aerium will offer three floor plans for the 27 units that will range in size from 1,414 to 1,830 square feet. landmarkhomesusa.com

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Holiday Party: Potential Hazard

To avoid the pitfalls that can be created at the company holiday party, businesses need to carefully plan out each detail, some of which are: Dress Up Company Policies Before the Big Event. Companies should review their personnel policies to ensure they are up to date, and remind employees that they are expected to conduct themselves at the party in a manner that complies with these policies.

Pick the Right Theme. Companies should characterize the event as a “Holiday Party” or “End of the Year Celebration” to avoid claims of discrimination.

When Facebook and Instagram Crash the Party. Companies, seeking to avoid bad press, may instruct employees not to post photos from the company holiday party on their personal social media accounts. While companies can certainly take measures to prevent the dissemination of legitimately confidential company information, they should consult with counsel before prohibiting social media activity that could be protected under federal labor laws.

Avoid ‘Forced Fun.’ Consider allowing attendance at the company holiday party to be optional. Otherwise, employees could try to claim that attendance at the party constitutes “work” for which they are entitled to be compensated. Similarly, an employee who suffers an injury on the dance floor may attempt to claim workers’ compensation benefits.

Getting into the Spirits. Companies that serve alcohol risk the possibility of employees engaging in inappropriate, potentially sexually harassing behavior that might not occur if alcohol is left out of the equation. Other risks may also be present. If alcohol must be served, consider taking precautionary measures, such as choosing a date, time and location that is likely to discourage excessive consumption; hiring a professional bartender who can assess intoxication levels; and —Lori A. Higuera, a director and co-chair of the employment limiting beverage selections. and labor practice group at Fennemore Craig (www.fclaw.com).

Move Fast for the R&D Tax Credit Refund Arizona keeps company with 36 other states in offering a resource and development (R&D) credit, with the distinction of not only offering the largest (24 percent) but also the unique attribute of having a refundable option.

It is the refundable aspect that adds an element of urgency to this information, according to Tom Sanger, leader of accounting firm Moss Adams’ R&D tax services practice — because it is capped at $5 million per tax year and allocated on a first come, first served basis. Intended to help small businesses, the refundable opportunity is limited to companies with fewer than 150 full-time equivalents.

“The refundable credit presents a rare opportunity for companies, such as tech startups, that cannot currently utilize their full Arizona R&D credit because they are either in a loss position or their credit amount exceeds their Arizona tax liability,” Sanger explains, noting that qualifying businesses in these situations may elect to receive the excess credit in the form of an immediate cash payment. Or the business may choose to carry the tax credit forward.

Even if they don’t make the cut for refund, businesses can use the nonrefundable form

of the R&D credit, which is also available to corporations, individuals and all types of passthrough entities. The R&D credit can continue to be carried forward for 15 years, giving the business the opportunity to apply it when it has higher expenses or higher tax liabilities.

There is an application process for the refundable credit. Sanger explains that, while companies must file with the Arizona Department of Revenue to claim the nonrefundable credit, the refundable credit requires them to obtain a certificate of qualification from the Arizona Commerce Authority each year and complete a full R&D credit study, which is a required part of the Certificate of Qualification application. The study should capture all qualified expenditures for the entire year. It must be fact-specific, and the expenditures must be measurable, such efficiency on a production line as well as wages and supplies. “Businesses can do much of the study earlier and then complete it in January,” Sanger says. —RaeAnne Marsh Arizona Commerce Authority azcommerce.com Arizona Department of Revenue azdor.gov Moss Adams L.L.P. mossadams.com

Bureau of Economic Analysis reports that, as of a year ago, U.S. export activity represented only 13 percent of GDP. Exports play a stronger part in China (38 percent) and Europe (51 percent). —Jack Ablin, BMO Private Bank

Photos courtesy of Cahava Springs, Lee & Associates Arizona and Landmark Homes USA (left, top to bottom)

GET REAL

INNOVATIONS FOR BUSINESS

The Fabric of Our Lives BeBop Sensors, Inc. is now marketing a wearable, smartfabric sensor that measures and reports in real time all aspects of physicality, including bend, location, motion, rotation, angle and torque. For markets from clothing and protective wear to robotics to appliances, BeBop’s Monolithic Fabric Sensor Technology measures actual physicality to sense and display 3-D maps of data, integrating sensors, traces and electronics into a single piece of fabric. bebopsensors.com

Text Has Feelings, Too The developing field of affective computing (AC), which includes recognizing emotion in text, has significant potential in such business applications as marketing and customer service.

Researchers Changqin Quan and Fuji Ren, in their article “Textual emotion recognition for enhancing enterprise computing,” recently published by Taylor & Francis online in Enterprise Information Systems, describe how their unique method allows its users to recognize indirect emotions, emotional ambiguity or multiple emotions in the subject text. http://bitly.com/tandfonline123

Kitchen Command Cooking app SideChef reads aloud recipe directions so that cooks can pay attention to the cooking technique and quality of the food at hand. While including automatic timers to ensure meals are cooked to perfection, its voice command technology allows users to say “next” or “back” to move through a recipe at their own pace. Founder and CEO Kevin Yu also built in gamification features to reward cooks with badges for advancing through their cooking experience. sidechef.com

New ATM Prods Consumer Behavior

Use of ATMs to access cash is up — going from 11 percent to 14 percent over the past year, according to the American Bankers Association. And cash-back is still an important part of consumers’ practice in many retail transactions, necessary to facilitate what the Federal Reserve System’s Cash Product Office reports is the “most used retail payment instrument” — cash. Cardtronics’ new ALLTM offers retailers a chance to provide that critical cash-back service to customers while also using technology to foster increased consumer spending through digital rewards and in-store coupons.

The ALLTM machine dispenses cash in the same was as other ATMs, but a second screen incorporates the systems’ geolocation capability to display in-store specials, local weather conditions and other content specific to the individual location.

Additionally, the ALLTM Network includes a smartphone app that allows consumers to take advantage of further point-of-sale discount offers printed on their store receipt as well as find other participating ALLTM retailers.

“The unique part of the ALLTM is tying traditional cash access with special rewards the customer can only get at this retailer and only if they use the ALLTM,” explains CMO Tom Pierce.

Cardtronics is rolling out its ALLTM in Fresh & Easy’s 17 Phoenix-area stores. “We were looking for a market with a diverse population in terms of both ethnicity and age to learn how different populations will use it,” Pierce explains regarding the choice of Phoenix for the launch, “and Fresh & Easy was just getting ready to add ATMs in the western states.” A wider roll-out is —RaeAnne Marsh planned for 2015.

ALLTM Network alltmnetwork.com

•

Cardtronics cardtronics.com

Mapping and Marketing to an Efficient Schedule

Mapping software is a key element of the app FreshLime is debuting to home services companies in Phoenix and Salt Lake City. “They will know exactly how far apart addresses are, so they can figure travel time between appointments” — easily and accurately — says founder and CEO Jay Bean. This will increase their efficiency in scheduling calls and managing their calendars.

Using the mapping capability also enables the home service professional to provide customers with the ease of booking an appointment at any time rather than waiting for office hours. The program can see both where and when existing appointments are, and fill in openings. And if the professional has designated days he allots to specific parts of town, “We work with the service pro to build into the app where he will plan to be at different days of the week,” Bean says.

The app also gives the service professional access to data on his customer base at any time, so he can look up a customer’s history even when on a job site. And its automated marketing will try to fill in open slots in the calendar, following up on leads from sources such as Angie’s List as well as contacting previous customers, taking into account how often they had, for instance, gotten their windows cleaned in the past or pertinent weather conditions that might increase or decrease the need for the service at that time.

The aim is to focus on long-term business sustainability, Bean says. To personalize the program to the home service company’s business operations — services offered, service area, hours, payment types and how often to make service reminder calls as well as access to prewritten information the business can offer its clients — FreshLime starts each customer with an in—RaeAnne Marsh person “welcome call.”

FreshLime freshlime.com

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This month’s second annual StartupConnect, focused on connecting and showcasing our state’s growing startup ecosystem, will include workshops, a startup pitch contest, a post-conference expo and networking happy hour. See page 33 for more information.

Photo courtesy of Cardtronics (top)

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YOUR BENEFIT IN BUSINESS

WELL WELL WELL

Avondale: HealthConscious Development The City of Avondale is courting the healthcare industry as an important high-growth sector for its economic development. Adding to the large facilities of West Valley Hospital and Phoenix Children’s Hospital satellite – which recently went vertical with a $17-million investment and doubled its work force – the recently announced Copper Springs Hospital will bring $15 million in capital investment.

“We really try to look at how to partner with the healthcare community,” says Cheryl Covert, employment and business development specialist with the City of Avondale, noting the city anticipated the infrastructure that would be needed. For example, she says, “We updated the cable, and the public works department was looking at the water and sewer, including the pressure that will be placed on the lines.”

“We’ll leverage those anchors and recruit other establishments,” says economic development specialist Darryn Jones. ci.avondale.az.us

Servicing Home Health to Curb Healthcare Costs Recognizing that advances in technology along with the need to curb healthcare costs were spurring growth in the historically under-utilized home health segment, John Olajidi founded Axxess to provide home health software to agencies nationwide. Many in the Greater Phoenix area use the cloud-based program that integrates all aspects of the home health agency’s operations in real time.

Among the features is a built-in electronic visit verification that uses GPS to verify when a caregiver is in the patient’s home. “In the past, the home health agencies couldn’t prove they had actually done the service,” Olajidi says. This feature will also help Medicare take action against fraudulent claims, which, he says, the FBI assesses to be in the tens of billions of dollars. axxess.com

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eHealth: Technology Advances Healthcare Delivery Telemedicine has been around more than 100 years, but it is advancing with gains in mobile technology. A study by the Journal of the American Medical Association found no difference in care levels or outcomes using telehealth, notes Jim Prendergast, CEO of Scottsdale-based Healthiest You. Alan Roga, M.D., founder and CEO of Scottsdale-based Stat Doctors, has seen increased demand from payers, primarily employers and carriers. “The industry will increase from $240 million to $1.9 billion in the next four years,” he says, citing a Towers Watson survey that reports a 68-percent growth year over year.

Prendergast shares that, at a convention about five years ago, “a doctor told me I was hurting the healthcare system. No later than a year later, he apologized to me.”

Many businesses are adding an eHealth program to the healthcare benefit they offer their employees. Limited access to care, escalating cost, and outcomes not consistent with the dollars invested in healthcare are the reasons Dr. Roga sees for the proliferation of eHealth. “As a former department chair and leader of a large ER practice, I realized there was an increasing amount of patients coming to the ER because of lack of access to care, and we were charging people a small fortune.

We could leverage technology to drive down the cost, improve outcomes and provide better care.”

Average costs are about $2,000 for an ER visit, $300 for urgent care, and $150 for a primary care office visit. Redirecting some of that to eHealth translates to lower cost.

Individual programs differ, some offering the mobile consult for free and some charging a per-call fee, but all provide a benefit to employers in lowering absenteeism — as

employees have less need to leave the workplace and spend even more time away waiting in the doctor’s office.

Technology enables telehealth to be more than a phone call or email. Dr. Roga describes his approach as “recreating the doctor-patient encounter technologically” — using video to enable a live interaction between the doctor and patient, including access to stored medical records, and integrating the exchange of information between payers and plan sponsors for payment processing.

MeMD, also Scottsdale-based, uses a secure webcam and a network of national urgent care providers to connect employees with common ailments to local healthcare providers. Founder and CEO John Shufeldt, M.D., J.D., MBA, F.A.C.E.P., estimates that employers providing this on-demand medical care typically see a $400 reduction in annual healthcare costs per employee.

Also, lower healthcare costs can enable the employer to either raise the deductible or increase the co-pay, with a positive impact on the company’s bottom line. “The employee gets 24/7 access to care, via phone, email or webcam, even while on vacation,” notes Prendergast, observing, “The employee feels he has a better plan, since most issues can be handled without paying a co-pay or deductible.” The claims redirection — whereby the employee gets care but no claim is made against the healthcare plan — “makes the plan that much cheaper.”

Says Dr. Roga, “We need ER, urgent care and primary care for continuity of care, but telemedicine is the next step in healthcare.”

—RaeAnne Marsh Healthiest You healthiestyou.com MeMD memd.me Stat Doctors statdoctors.com

Statistics from Healthiest You’s member usage over the past three years, based on a family of four: Reduced absenteeism by 72 hours, translating to $1,736.64 in wages. Environmental impact of 579 fewer miles driven, resulting in $275.69 fuel savings and carbon dioxide reduction of 1.30 metric tons.

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METRICS & MEASUREMENTS

Small-Business Owners’ Optimism Highest Since 2007 Job growth, housing, the stock market and more Arizona State University’s W. P. Carey School of Business Dec. 3 at the Phoenix Convention Center wpcarey.asu.edu/efl James Glassman, managing director and senior economist for JPMorgan Chase & Co., John Lonski, chief capital markets economist of Moody’s Analytics, Professor Lee McPheters, director of the JPMorgan Chase Economic Outlook Center at the W. P. Carey School of Business, and Elliott D. Pollack, chief executive officer for Elliott D. Pollack and Company A summary of the highlights will be available on the W. P. Carey School of Business website (wpcarey.asu.edu/newsmedia) after the event.

The University of Arizona Eller College of Management Dec. 12 at the Westin La Paloma Resort in Tucson eller.arizona.edu/outlook George W. Hammond, director and research professor at Eller’s Economic and Business Research Center, and Anthony Chan, Chase chief economist Presentation slides will be available on Eller’s Economic and Business Research website (ebr.eller.arizona.edu) following the event.

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Arizona’s small-business rosy outlook continues to rise, OPEN survey says

by Sue Kern-Fleischer

Small-business owners’ optimism on business prospects and the economy continue to rise, according to the Fall 2014 American Express OPEN Small Business Monitor. Currently, 63 percent of business owners nationwide maintain a positive outlook, a level not reached since fall of 2007 (64 percent).

Stronger revenue growth could be fueling this optimism, as more entrepreneurs say their revenues are higher when compared to a year ago (42 percent, up from 38 percent in 2013). “We are at a long-awaited point where business owners are seeing the growth that they have been waiting for. Business owner optimism reflects the fact that sales are up, and prospects are looking good for small companies. Small businesses are practical, so for their optimism to be so high indicates that they are seeing sales in hand, not just potential sales,” says Alice Bredin, American Express OPEN small business advisor.

Here in Arizona, one of the hardest-hit states in the Great Recession, optimism is lagging, with just 56 percent of small businesses reporting an optimistic outlook versus 63 percent nationwide. “The uncertain economy is their biggest challenge, and just 20 percent of Arizona small businesses have hiring plans versus 37 percent nationwide,” Bredin says, adding that while the lag is real, the recovery will come to Arizona businesses, too. “More than half of Arizona businesses are reporting capital investment plans and, interestingly, Arizona-based businesses are on par with business owners nationally in seeing the glass half full.

Eighty-four percent of Arizona businesses agree with this sentiment; nationally, the number is 87 percent. This number really speaks to what is so amazing about small business owners — their resilience,” she says.

Bredin said she was pleased to see that, as usual, entrepreneurs report in huge numbers that the rewards of being an entrepreneur outweigh the demands. “Eighty-eight percent of businesses in Arizona agree with that statement,” she says. She was also pleased to see that businesses are inclined to purchase goods and services from other small businesses. “In this category, businesses in Arizona are outpacing small businesses nationwide: 81 percent of Arizona businesses do this versus 73 percent of small businesses nationwide,” she says.

The rosier outlook from business owners also reflects that cash flow concerns are easing and that over the next six months business growth is the single most important priority for business owners. The last time this occurred was in spring 2011.

“Business owners have waited for a turn-around, and I am pleased that many are feeling more hopeful,” Bredin says.

“Forty-six percent of Arizona businesses report that their top priority is to grow their businesses, versus 35 percent nationwide. I am wishing them well in that endeavor.”

American Express OPEN Small Business Monitor, released each spring and fall, is based on a nationally representative sample of 1,130 small-business owners and managers of companies with fewer than 100 employees.

Big Data for Small Business Business owners are seeking ways to improve customer interaction, and more are analyzing data Attitudes Toward Data

Percentage

The OPEN survey includes a Success Index, which shows 11 percent of American small-business owners to be “High Achievers” (scoring at least 81 on a 100-point scale)

Firms currently analyzing data for their businesses

69%

Behaviors/Attitudes of Successful High Achievers

Percentage

See value in analyzing data to better run their enterprise

85% 62%

Say they are planning to grow their businesses over the next six months

92%

Aware of low-cost tools for data analytics Say time is biggest barrier to data analytics

48%

Have growth as their top priority

51%

Use data to improve current products/services

72%

Plan to hire

79%

Analyze data to make key business decisions

66%

Plan to make capital investments

67%

Analyze data to boost efficiency

65%

Would give employees raises or bonuses before themselves

85%

Use data to identify ideas for marketing

58%

Use social media

78%

Use data to identify opportunities for new products

52%

Say they can’t live without their smartphone

42%

Analyze data to track loyalty/rewards usage

37%

Have a business mentor

66%

To set businesses apart from their competition, a majority of business owners say they will place a heightened focus on better serving their clients — 85 percent, up from 78 percent this past spring.

Charts Source:Fall 2014 American Express OPEN Small Business Monitor

PRESTIGIOUS BUSINESS SCHOOLS PRESENT ECONOMIC FORECAST

MINDING THEIR BUSINESS

Robb M. Corwin: Making Happenings Happen

Key to his events company’s success is investing in his associates

Photo courtesy of Pride Group, L.L.C.

by Alison Stanton When football fans arrive for Super Bowl XLIX at University of Phoenix Stadium in Glendale on Sunday, February 1, 2015, they will experience firsthand the hard work exhibited by the team of dedicated associates from Pride Group, LLC. CEO Robb M. Corwin says his company will provide a variety of services that day, from parking and traffic control to cash management.

In order to nab such plum contracts as the Super Bowl — as well as the Pro Bowl, Fiesta Bowl and many others — Corwin has taken steps to make the Tempe-based full-service event company organized and capable. One main key to this success, Corwin says, involves using a multi-faceted approach to invest in his people.

Corwin has used this approach for two-plus decades, including the period he owned Gorilla Companies, LLC, which he sold in 2007. In 2012, he returned to the service event industry when he founded Pride Group, LLC. “You have to believe in your people, develop your people, and invest in their training and education,” Corwin says, adding that his associates — a term he uses instead of employees — must also be an integral part of the company’s culture.

“Equipment service companies are a dime a dozen. What makes us unique is our people, so what I try to get at is the ‘why’ — why they get up and do what they do, and why they are willing to work on a project for 24 hours straight. If I know things like this, then we are halfway there.”

With this “why”-related goal in mind, Corwin uses a personality profile when interviewing new hires that helps him understand how the candidates see themselves as well as the world around them. “The personality profile measures many different things, including aptitude, acumen, motivators, tendencies and behaviors,” he says. Using this assessment tool is extremely helpful during job interviews. “It allows me to do much more than just ask standard questions during the interview, but really dig down and get more thoughtful answers. It helps tell me where the person will be the most successful in a position and gives me great insight,” he says.

Another key to his success, Corwin says, is the firm belief that his associates should not be micro-managed. Instead,

The attendance record at the University of Phoenix stadium is 78,603, set by the 2011 BCS National Championship Game.

he utilizes a macro-managing and ultimately empowering approach that involves providing his associates with the tools they need to get their work done. “I like to allow for fresh ideas, and it is important to let people do their own thing, as long as they have a process in place at all levels,” he says.

Because Corwin believes so strongly in having a well-trained and educated team of associates, he has also developed a university within his organization that features 100-, 200-, 300- and 400-level courses, just like a college. Instead of merely offering a half-hour orientation to new associates and then sending them on their way, Corwin encourages his people to take additional classes based on whatever career path interests them.

Once an associate has signed off on a 100-level course, he or she can take a higher-level class. That person then has first rights on a new position within the company based on his or her training. “We also offer reimbursement for education, whether it’s taking English or other courses. I want everyone to develop not just as an associate but as an individual,” he says.

As for challenges, Corwin says getting back into the industry when he opened Pride Group, LLC was initially quite challenging — mainly because his clientele expected his new company to immediately be at the same level Gorilla Companies had been after 20-plus years.

Corwin recalls signing the Arizona Cardinals as Pride Group’s first client. “In June 2012, we signed the contract, and the first football game was in August. In 60 days, we had to acquire the assets needed to fulfill our requirement, including barricades, bathrooms, bike racks, power generators, uniforms and a command center.” To have everything ready in time, Corwin made sure his company had a clear vision and business plan in place and then was quick on the trigger with the decisionmaking process. “We hired a lot of experienced talent, including people we had worked with in the past, and we made sure we had the equipment we needed, and we were ready.”

Pride Group, L.L.C. pridegroup.us

THE LION’S SHARE OF SUCCESS Pride Group, LLC will have more than 2,000 associates working during the six weeks of the upcoming local bowl games.

Among Pride Group’s clients are the National Football League, the National Basketball Association, NASCAR and the United States Government.

Pride Group has provided services for events that include the PGA Accenture Match Play, PGA Charles Schwab Cup Championship, Chandler Ostrich Festival, NHRA Check Auto Nationals, One Direction Concert, U2 Concert and BSC Championship Games.

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LAW MATTERS TO BUSINESS

No Legal Risk with Office Gambling?

Don’t Bet on It Friendly wagers at the office could lead to legal issues

by Sue Kern-Fleischer

STEVE BIDDLE is a shareholder in Littler’s Phoenix office. He has successfully defended public- and private-sector employers in employmentrelated litigation and regularly advises companies in all legal and human resources matters, including discrimination and harassment; OSHA; labor management relations; wage and hour; and hiring, performance management and termination.

STEPHANIE FIERRO is senior counsel attorney with the Frutkin Law Firm.

Her practice focuses on general counsel business law and estate planning. She brings the firm a wide range of experience and interests, including all aspects of corporate transactional work, estate planning and tax representation. Fierro has experience in business litigation and alternative dispute resolution inherent in any general counsel practice.

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If part of your office culture includes friendly wagers for Fantasy Football, the Super Bowl, March Madness and Lottery office pools, you might want to quit while you’re ahead and put the kibosh on any gambling activities. That’s because, even though it is widely accepted and popular among employees, any wagering involving money and bets could run afoul of state law and open up other legal issues for your firm.

“The effects of workplace gambling can include lost time; lost productivity; and theft, fraud and embezzlement,” says Steve Biddle, shareholder of the Phoenix location of Littler, the largest global employment and labor law practice. “Workplace gambling, even if not sponsored or operated by the company, creates several legal risks. Although law enforcement is typically not too interested in an office betting pool, there have been situations when it has snowballed.” He cites a case in 2002, where a manager in New Jersey was arrested and faced up to five years in prison for allegedly taking a 10-percent cut, about $3,000, from an office football pool.

Managers and employees used the company’s email to discuss the pool, until an unhappy employee contacted police. “So, while it is unlikely employees will be arrested for participating in most office pools, it may not be a good idea for companies to condone activity that might break the law,” he says.

In Arizona, gambling and “promoting gambling” are considered crimes. However, “social gambling,” that likely covers most office pools, is exempted from these laws. Social gambling is defined as “gambling that is not conducted as a business and that involves players who compete on equal terms with each other in a gamble” so long as no player receives any benefit other than the player’s winnings from the gamble.

But social gambling at the office can lead to bigger problems, says Stephanie Fierro, senior counselor with Scottsdale-based Frutkin Law Firm. “Some people may argue that social gambling at the office creates a collegial environment, but it can increase the risk of employment discrimination claims and claims of favoritism.” Examples would be if a league in the office was divided by gender, or if some employees were excluded from participating. Another example would be if a supervisor and subordinate were in the same league. “Favoritism can lead to a larger case of discrimination, where the office pool is just one of many claims that establish a pattern of discriminatory conduct,” she says, adding that employee policies regarding gambling should be clear and that the reward should be bragging rights or other non-monetary reward. “These activities may seem benign, but if you have someone who cries foul, you need to be out in front of it,” she says.

And then there is the issue of employees who have gambling addictions.

“There have been some cases where employees have sued their employer because they lost money in an employer-approved office pool, claiming the pool triggered or caused them to have a relapse of a gambling addiction. While it is unlikely such a claim would be successful, it still could force the company to defend a costly lawsuit,” Biddle says. The National Council on Problem Gambling estimates that two million American adults are pathological gamblers and another four to eight million qualify as “problem gamblers.” Given the expanded definition of “disability” under the Americans with Disabilities Act, those numbers could make employers wonder if gambling addiction could be considered a disability. “The short answer is no,” Biddle says. “Congress expressly excluded compulsive gambling from the ADA’s definition of a disability.”

Here in Arizona, when employees bring their gambling problems into the workplace, Biddle observes, “The issues that arise can affect the workplace and lead to productivity, attendance and other problems the company will have to deal with through its disciplinary process.”

Biddle suggests implementing policies to control and reduce the legal risks inherent in workplace gambling. The company may decide to allow exceptions for office-sanctioned pools, raffles, friendly wagers or fundraising events supporting a charitable cause, but he suggests that employees be required to consult with Human Resources prior to engaging in any “social gambling” activity at work. “This type of policy statement could help protect the company from legal liability when an office-related gambling activity goes bad, and employers should be prepared to discipline employees for unauthorized office gambling,” he says. Whether discipline to the level of discharge is appropriate will depend on the facts, and may be the unusual case instead of the norm.

The Frutkin Law Firm, PLC frutkinlaw.com Littler littler.com

Consulting firm Challenger, Gray & Christmas estimates that American companies lose up to $16 million for every minute their employees spend focused on the Super Bowl, including participating in pools.

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THE

BOOM OR BUST FOR BUSINESS? n io t a r ig m im s e o d w o H impact our economy o d e w ld u o h s t a h w and about it?

by Joe Bardin

Immigration

is often discussed in moral terms of right and wrong. Is it right to exclude children born and raised in the U.S. from an opportunity to live legally in America because their parents entered illegally? Isn’t it wrong to give people who broke the law by smuggling themselves into our country a path to legal work status and even citizenship?

These may be points for ethicists to debate, but what is the economic bottom line? Is immigration bad for business, or good?

To answer this question, some historical perspective may be helpful. “The story of a huge amount of Arizona’s growth can be attributed to Baby Boomers looking to prosper and start a new life in the West, in the ’70s and ’80s,” says Professor Dennis Hoffman, director of the L. William Seidman Research Institute at the W. P. Carey School of Business at Arizona State University. “They figured out productive things to do with affordable land, cheap workers and a booming population, and they made a lot of money.”

“Cheap labor” typically has meant undocumented labor. While business owners may be understandably uncomfortable speaking about this publicly, Hoffman says, “When you talk to the long-time business owners in the Valley, a lot of their success took advantage of affordable, hard-working, undocumented

workers. This is the equation they’ve followed.

It’s a fuel to our economy.”

Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry since 2006, addresses the issue in more legal compliancy terms but with a similar conclusion: “Immigration reform done the right way would be a huge shot of adrenaline to the economy.”

Hamer says there are various gaps in the labor force that could be filled through expanded access to immigrant workers. In addition to laborers needed in seasonal work, including hospitality and agriculture, Hamer cites unmet demand for higher-end technology-related capabilities. “The high-tech industry is constantly clamoring to raise the number of H-1B visas,” he says. These visas allow U.S. employers to temporarily employ foreign nationals in specialty occupations, defined as requiring theoretical and practical application of a body of highly specialized knowledge in a field of human endeavor. But technology and seasonal work are just two out of many industry segments that would benefit from more access to immigrants: “Pick a sector and you will find need for international labor,” he says.

Ironically, another potential benefit to the economy and business would be a reduction in federal funds spent on keeping these immigrants out. According to the non-partisan Congressional Budget Office assessment of proposed immigration reform (www.cbo.gov/publication/44346),

“The cost estimate shows that changes in direct spending and revenues under the legislation would decrease federal budget deficits by $197 billion over the 2014–2023 period and by roughly $700 billion over the 2024–2033 period.”

In addition, state revenue would likely increase significantly, as more illegal workers come out of the shadows to pay tax and participate more fully in the economy.

Arizona Senator Jeff Flake, a long-time proponent of immigration reform and one of the Gang of Eight — the bipartisan group of senators that includes Arizona Senator John McCain — who wrote the 2013 Comprehensive Immigration Reform bill, sees the broad benefits. “Across the spectrum of skill levels, from first-time agricultural workers to U.S.-trained foreign Ph.D.s, there are domestic industries that rely and will continue to rely on foreign labor. If our economy is to rebound and the United States is to stay on the cutting edge of innovation in the global marketplace, our immigration system has to ensure that U.S. businesses have access to the workers they need, and that we remain a place for the world’s best and brightest to find a home.”

The argument against increasing the availability of immigrant workers within the U.S. economy is essentially that jobs will be taken away from documented Americans. But it has long been contended that the unskilled, low-paying jobs at the bottom end of the labor market are

, “When you talk to the long-time business owners in the Valley able, afford of tage a lot of their success took advan hard-working, undocumented workers.”

—Professor Dennis Hoffman

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“This is not 1950. We have a lot of com petition from the European Union and China. We have to be aggressive in attracting the best and brightest.”

—Glenn Hamer

not actually desired by Americans. Says Hoffman, “I don’t see strong evidence that undocumented workers are squeezing out American youth and unskilled laborers. The data suggests they are such hard-labor/low-wage positions they are hard to fill anyway.”

Interestingly, an analogous argument might be made for STEM-related (Science, Technology, Engineering and Math) jobs at much higher pay scales. In this case, it’s not the jobs that Americans may be steering clearing of, it’s the demanding education required to do the jobs, according to Steve Zylstra, president and CEO of the Arizona Technology Council. “An engineering education is tough,” he says. “There’s a lot of math, chemistry, physics. It’s not easy, and not enough Americans are willing to undergo this rigorous training to prepare themselves to fill the positions that are needed.”

As a result, Zylstra says limits on immigration place the Arizona tech sector at competitive disadvantage. “The most critical challenge facing my members is finding the requisite talent to compete.”

Zylstra suggests that not only is identifying and recruiting such talent from abroad not a job taker, it is, in fact, a job producer. He cites research conducted by William R. Kerr, a professor at Harvard Business School, which found that between 1995 and 2008, when more H-1B visas were granted, overall science and engineering employment actually increased. This suggests that hiring such immigrant employees actually creates more jobs for others.

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The case for expanded immigration extends to entrepreneurship as a whole as well. “It’s very common for startups to have some connection to another country,” says Hamer. “Let’s take advantage of this and make it easier for people to start businesses here. This is not 1950. We have a lot of competition from the European Union and China. We have to be aggressive in attracting the best and brightest.”

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SEVEN DARK YEARS FOR LABO

If the absence of qualified immigrants hurts job creation at the higher-paying, high-tech end of the workforce spectrum, Hoffman sees a similar impact on the lower-paid, unskilled-labor end of the work force as well. He traces the decline in the Arizona economy to December 2007, when the state “passed the toughest employers sanction bill in nation, and we started to become a poster child for not wanting undocumented workers and immigrants. It’s been seven dark years since then.”

Hoffman says the latest job data for the first nine months of 2014 shows Arizona struggling to reach 2-percent job growth and that it is losing construction jobs. While federal policies, including the Affordable Care Act, have been blamed for Arizona’s weak recovery from the Great Recession, Hoffman points out that Texas, Colorado, Utah, California, Oregon and Washington are all showing more significant growth. Arizona ranks number 14 in total job growth, Hoffman says, but it is

47th in goods-producing jobs, which includes construction and which typically bring more money in to the state. To illustrate the concept of “goods-producing jobs,” Hoffman draws an analogy to a copper mine in a mining town, explaining that as long as the mine is doing well, the whole town does well, but when the mine slows down, so does the barber shop and every other business.

So what is holding Arizona back? Could the weak recovery be exacerbated by Arizona’s reduced access to cheap, undocumented labor as a result of its unwelcoming policies to immigrants?

“It doesn’t help,” says Jim Rounds, senior vice president and senior economist with Elliott D. Pollack and Company, an economic and real estate consultant, “but it’s hardly a cause of our weak economic performance.”

Referring to SB1070, the broadest and strictest anti-illegal immigration measure in recent U.S. history, and the major national backlash it caused against the state for being perceived as racist, Rounds contends, “We weren’t impacted by the political fallout because the economy didn’t need those workers at that time, with the state already falling into deep recession. But if the state starts booming, then the question arises, ‘Will we have a shortage in immigrant labor?’”

Rounds attributes Arizona’s weaker than usual recovery to lack of mobility in the U.S. as a whole. “People are frozen everywhere; they can’t get mortgages, they don’t have cash for down payments. Within a couple years, we will see

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“But if the state starts booming, then the question arises, ‘Will we have a shortage in immigrant labor?’”

—Jim Rounds

more population movement. When things ramp up a bit, especially construction, we may see labor shortages.”

Does the availability of labor drive growth, or does growth drive the demand for labor? It’s a chicken and egg argument to which there may be no definitive answer. Hoffman concedes he has no hard data to support his perspective. Rather, he shares that, anecdotally, he has heard from enough business people to consider the lack of affordable labor to be a significant factor.

Clearly, the loss of such labor can cause disruptions in business. In August of 2013, the Danny’s Family Car Wash chain was raided by Immigration and Customs Enforcement agents for hiring illegal immigrants. At the Danny’s Car Wash this writer uses, the work force abruptly changed from what had appeared to be almost entirely immigrant Latino to almost entirely non-Latino, and the speed and quality of service suffered. This can hardly be considered good for business.

Hoffman points out that driving immigrant workers underground has spurred the black market in human smuggling and the hardcore criminals, known as coyotes, who profit from it.

Conversely, opening legal routes to immigration would do a lot to put coyotes out of business and replace them with legitimate business operations.

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THE IMMEDIATE NEED While demand for increased cheap immigrant labor may be debatable and ultimately dependent on future growth, the need for greater high-tech brain power from abroad is an immediate one, according to Zylstra. “A tech workforce study conducted by ASU for us produced astonishing findings,” he says, noting the current supply clearly does not meet the demand.

The study also looked at patterns of behavior of STEM graduates from ASU, finding that approximately 67 percent remained in Arizona.

To Zylstra, this indicates “we are simply not producing nearly enough talent locally.” He adds that “it’s tough all over.” The study found comparable shortages throughout the western states, all of which it characterized as “net importers of talent.”

Zylstra suggests our labor gap in STEMrelated fields might be impacted by how welcoming we are to low-wage workers from abroad as well. “Policies like SB1070 send a negative message to foreign workers in general,” he says. “Once they get here, they realize it’s not the case, but those headlines send a message that we’re not as welcoming. When they’re choosing between Denver, Seattle or Phoenix, for example, they will want the place that seems most favorably disposed to foreigners.”

In this context, SB1062, which sought to legalize resistance to same-sex marriage on religious grounds, may be seen as another potential obstacle to attracting expert foreign workers. “Young, innovative people want to live in more progressive places,” says Hoffman. Referring to Tim Cook of Apple, Hoffman notes, “The CEO of the most dynamic business on the planet recently came out as a proud gay man,”

IMMIGRATION DONE RIGHT If the business community seems to agree that greater immigration would be a boon for the economy, not a bust, what then are the key elements of an effective immigration reform package?

According to Senator Flake, among others, it’s a four-part issue: strong border security, a legal immigration system that encourages economic growth, a temporary worker program to provide for future labor needs, and strengthened employment verification standards to prevent the hiring of illegals.

This includes the so-called “Staple Act,” which calls for green cards to be offered to any advanced STEM-related degree earned in the U.S. by a foreign national. Says Hoffman, “We need to be stapling green cards to their diplomas instead of forcing these valuable people away after we’ve educated them.”

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Zylstra would be happy just to see the number of H-1B visas doubled. “The tech industry would be elated,” he says.

Jim Rounds suggests that education at the lower end of the immigrant labor market, rather than being a drain our local resources, might be vital to our economy. “It may be to our advantage to improve the educational skill set of certain groups of laborers as well,” he says. This would enable them to perform more technical tasks that may be needed to be fulfilled.

“The good news is that people want to live in the U.S.,” Hamer says. “We have the rule of law; we have security. We’ve remained the most desirable place.

If we could fix what has become a man-made policy disaster, we would see additional prosperity.”

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WHAT CAN WE DO RIGHT NO

Seating a new Republican majority in Congress could point to an opportunity for enacting reforms in the near term. But what do we need to do right now to support the flow of immigrant labor needed to support the Arizona economy?

“The Phoenix metro area has always been viewed

as a favorable place to live. But we need to stay out of national news on controversial stuff,” says Rounds, referring to SB1070 and SB1062. “When the economy is weaker, it’s more sensitive to politics, so we don’t need to be poking it with a stick.”

Hamer believes that Phoenix has turned the corner on the issue of attracting foreign nationals.

“The Valley is doing a great job positioning itself for immigrants,” he says. “I give (Phoenix) Mayor Stanton credit for building a stronger relationship with Mexico, and making a lot of positive enhancements with Canada and China as well.” He points out that Arizona has traditionally welcomed outsiders, “whether from Bangladesh or Boston.

It’s an easy place to come in, work hard, and get engaged in the community.”

Rounds is not so confident that state leadership has learned the lessons of the past. “I’m hoping lawmakers realize this is not the time for any more of that stuff [controversial legislation], but I never underestimate the ability of the legislature to do something dumb at any given time.”

Clearly, in the recent past, Arizona has not helped its own cause much in terms of attracting foreign workers and the businesses that rely on them, both at the high and low ends of the pay

scale. But, ultimately, the state, like the rest of the country, is waiting on federal legislation to fundamentally alter the current immigrant labor workforce equation.

If and when such reform arrives, Arizona may, ironically enough — given its tough stand recently — benefit more than most. “As a border state, we have a lot to gain,” says Hamer. “Mexico is already far and away Arizona’s largest trading partner, and we’re closer to Asia than Texas,” meaning we’re more advantageously placed than Texas is for increased trade with China. This could be especially relevant in regard to entrepreneurial Chinese nationals choosing Arizona as the location for an American-based business that would enable them to reside in this country. “With immigration done right and our geography,” Hamer says, “we’re going to clean up.”

Arizona Chamber of Commerce and Industry azchamber.com Arizona Technology Council aztechcouncil.org Elliott D. Pollack and Company edpco.com United States Senator Jeff Flake flake.senate.gov/public/ W. P. Carey School of Business wpcarey.asu.edu

eign workers a negative message to for “Policies like SB1070 send case, but the e, they realize it’s not in general. Once they get her ming.” lco we as not ssage that we’re those headlines send a me —Steven Zylstra

Note: Since the writing of this article, President Obama announced a new directive that will protect up to five million people from deportation and allow many non-citizens to work legally, while offering no path to citizenship. In addition, it will be easier for high-tech workers to come to the United States for employment. It remains to be seen how this will impact the possibility of more comprehensive immigration reform legislation being passed by congress as described by business leaders in this article.

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FUNDAMENTALS OF FUNDING

Captive Insurance Is a Financial Tool Arizona is one of the best states in which to create a captive

by RaeAnne Marsh

TYPES OF CAPTIVE INSURANCE COMPANIES Single Parent (or Pure) Captive: provides insurance only to cover the loss exposure of its parent company.

Group Captive: created by a number of individual parent companies, usually within the same industry.

Association Captive: similar to a group, but sponsored or owned by an association.

Rent-a-Captive: offers a “cell” in a captive operated by another entity, which has done all the work of setting up the captive insurance company.

Segregated Cell (or Protected Cell) Captive: offers a cell in a captive operated by another entity, but users are protected from insurance claims against other users of that captive.

Risk Retention Group: formed specifically under the Liability Risk Retention Act of 1996, which allows such a formation by a group of people as long as they are all owners and are from the same industry, but it expressly omits personal lines or workers’ compensation business. A difference between RRGs and other captives is, they are licensed as insurers and so do not need a front company to put in front of a captive.

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An option businesses can use in managing their finances is captive insurance. Captive insurance is a separate legal entity — a corporation or limited liability company — that a parent company creates to cover insurable risks in a more cost-effective manner than insuring through a traditional insurance carrier.

“It’s generally a wholly owned subsidiary of an existing business set up to, effectively, self-insure,” says Ed Zito, president of Alliance Bank of Arizona, explaining the bank “promotes the captive insurance initiative to clients where we feel there is applicability.”

Traditional insurance carriers typically set a premium based on the loss history of not just the individual business but of its entire market segment. If a business has a lower loss history — due to factors such as better risk management — the record of the market segment as a whole can distort the situation for the one business and cause it to pay higher premiums.

Among risks typically insured by a captive insurance company are all types of property risk, including weather and natural disasters, product or professional liability, product warranty, defects in construction projects, employment practices, cyber risk and litigation defense.

Mark Tabler, president of the Arizona Captive Insurance Association (AzCIA) and chief operating officer of Innovative Physician Solutions, a medical professional liability risk retention group, explains that captives allow a business to broaden its coverage in a given area or enable it to cover a niche that a commercial carrier either does not offer or offers with excessive restrictions.

He shares that a current member of Innovative Physician Solutions was dropped by his insurance carrier for medical malpractice in 2004 “not because he had done anything wrong but because the carrier decided not to write malpractice insurance any more due to its experience in another part of the country.”

Pointing out another consideration, Zito says, “Up to 50 percent of every premium dollar paid to a traditional insurance carrier generally goes to administrative fees such as marketing, commissions and overhead.” Administrative fees for a captive, in comparison, are about 25 percent of the premium dollar. All of this increases a company’s cash flow, Tabler says, noting that companies with a captive insurance company also enjoy the benefit of stability in pricing and availability of coverage.

In addition to the premium savings, small captives could qualify for some special tax treatment. Explains Zito, “The U.S. tax code allows mini-captive insurance companies certain tax advantages if premiums do not exceed $1.2 million per year per captive insurance company. The captive itself is not taxed

on the premium income it receives, only on investment income.

In addition, if the captive builds up surplus income, that surplus can be paid out as dividends to the shareholders.” He suggests the company consult with an accountant or attorney who specializes in captives and can point out where it could get this benefit. “It’s a pretty substantial initiative for small to mediumsized businesses to evaluate.” But he emphasizes that the captive not be set up for the primary purpose of gaining a tax advantage, but only to insure specific risks that are either not offered by existing commercial carriers or where commercial carrier premiums are excessive and setting up a captive to insure the risk would save money — and the tax piece, then, is a secondary benefit.

Other benefits Zito enumerates are the ability to truly customize the coverage, which is not possible with an offthe-shelf product; being able to pivot more quickly to a newly developed risk or items that may need to be added; better control of the claims process; and better access to wholesale reinsurance, whereby it can purchase policies from other insurance companies and reduce its own risk by spreading that risk across multiple policies.

WHAT BUSINESSES CAN A CAPTIVE BENEFIT? Prime candidates for setting up a captive, says Zito, are businesses that are well-run, profitable and could benefit from lower insurance premiums; businesses that have multiple entities, whether operating subsidiaries or affiliates; and businesses with annual insurance premiums of $250,000– $500,000 (with operating income of $500,000 or more) and a risk that is uninsured or underinsured.

Zito shares the types of company Alliance views as especially well-suited to use captive insurance. Doctor groups and physician practices need malpractice insurance, which, he points out, “is an expensive proposition.” Commercial real estate developers can use a captive to protect themselves

In 2008 Arizona captive insurance growth slowed considerably with 2009 and 2010 experiencing a net loss in the number of captives (-7% in 2009 and -2% in 2010). Positive growth resumed in 2011, but at close to 0% in 2011 and 2012. 2013 has improved the trend so that total captives are back to the 2008 level.

STRATEGY & PRODUCTIVITY against claims on construction defects, which, Zito notes, “may not be known to an inspector or discovered by him, such as a shipment of defective pipes or cement.” Many trucking companies have adopted the business model of working with drivers as independent contractors, but, by having the drivers band together, can offer insurance through a captive as a benefit rather than the drivers having to independently insure themselves. Professional service firms with 20 or more employees — such as roofing companies and environmental remediation companies — that want to offer a guarantee or warranty can band together with other firms to deal with litigation or warranties. And for franchise operations, regardless of the product or service, Zito points out “it may be easier for the franchisor to have a captive for the franchisees to participate in.”

Salt River Project restructured its captive strategy in 2003, creating a single-parent captive domiciled in Arizona to replace its rent-a-captive formation that had used a cell in a captive that an insurance carrier operates on behalf of clients in the utility sector. “It gives us more control and more options,” says Marcia Philpott, manager of insurance services at SRP. This includes the ability to choose who does the services and to change vendors.

On the property side of business, Philpott says, SRP insures its risk of terrorism exposure through its captive. “You have to be a U.S. captive to have access to TRIPRA, which provides a federal backstop for terrorism,” she explains, adding that TRIPRA (Terrorism Risk Insurance Program Reauthorization Act) expires December 31 and “we’re hoping it gets extended.”

SRP also insures liability for bodily injury and property damage exposure through its captive. “SRP buys some significant limits on our liability program, and a piece of that is covered by this captive,” Philpott says. SRP takes the first piece of any loss as its deductible, the captive takes the next piece, and then, if the loss exceeds a certain threshold, the commercial carrier gets involved. “The captive protects the lower limits of our liability programs.”

SETTING UP A CAPTIVE IN ARIZONA To set up a captive, a business must determine what risk it will insure and what the risk-financing objectives are. Arizona captive insurance companies are regulated by the Department of Insurance. Businesses must apply for a captive license, which includes posting a capitalization deposit or letter of credit. “This is, effectively, a bond to make sure you can meet the obligations,” Zito explains.

A business may choose to domicile its captive insurance company in Arizona if it operates in another state as long as its principal place of business is Arizona, and must hold one board of directors meeting per year in its state of domicile. “And once a captive is licensed in a domiciled state, it can write the same policy in any state,” Tabler says.

Many states have their own captive insurance laws, rules and regulations, and Zito characterizes Arizona as “reasonably competitive.”

He places Arizona behind Nevada, New York, Iowa and Vermont, “states with more business-friendly captive insurance requirements” in regard to such elements as difficulty of getting a license, the amount of bond and the regulatory cost of being a captive.

The AzCIA reports that the number of captive insurance companies in Arizona has risen in recent years and is now 111. Among the advantages it sees in Arizona are flat-rate fees, which provide a cost-effective application and regulation process; no premium tax; no routine statutory exam for pure captives; and a balance between competitive law and appropriate regulatory oversight.

Alliance Bank of Arizona alliancebankofarizona.com Arizona Captive Insurance Association azcia.org Salt River Project srpnet.com

For more information on regulations and how to qualify, visit the Arizona Captive Insurance Association at www.azcia.org

The 5 Choices The time management experts at FranklinCovey share their five critical techniques for avoiding distractions and paying focused attention to our most important goals and tasks in our daily lives.

Every day brings businesspeople a crushing wave of demands — not to mention the high-pressure demands of our jobs — that can be overwhelming and exhausting.

The sheer number of distractions can threaten our ability to think clearly, make good decisions and accomplish what matters most, leaving us worn out and unfulfilled. The 5 Choices is time management redefined for the twenty-first century: It increases the productivity of individuals, teams, and organizations and empowers one to make more selective, high-impact choices about where to invest one’s valuable time, attention and energy.

Title: The 5 Choices: The Path to Extraordinary Productivity Authors: Kory Kogon, Adam Merrill and Leena Rinne

Price: $28

Publisher: Simon & Schuster

Pages:

Available: 12/30/2014

Strategize to Win Wall Street veteran Carla Harris gives readers the tools they need to get started, get “unstuck” from bad situations, redirect momentum and position themselves to manage their careers no matter the environment. With her trademark galvanizing advice, Harris identifies and clarifies issues that are often murky, offering lessons on identifying and making the most of one’s work profile (is the person a Good Soldier? a Leader? an Arguer?), preparing for a career change without going back to school or taking a step down, honing three essential skills industry leaders possess (and how to get them), tuning into unspoken cues and thriving through change.

Title: Strategize to Win: The New Way to Start Out, Step Up, or Start Over in Your Career Author: Carla A. Harris Publisher: Hudson Street Press

Price: $25.95 Available: 12/26/2014

Pages: 256

Bringing Strategy Back In Bringing Strategy Back, strategy expert Jeffrey Sampler cuts through the clutter to reveal exactly why the usual tools of strategy are so sorely out of sync with our needs: windows of opportunity close far faster than they once did, many of these opportunities are smaller than they once were, growth rates are uneven across markets, and today’s competition is more asymmetrical than ever. The upshot for managers is that they need to reorient their approach to absorb the shocks and surprises that strike at a moment’s notice. Only then can strategic planning reliably play its part. Leaders all around the world at organizations of any size and type will benefit by shedding their obsolete notions about strategy and becoming more resilient.

Title: Bringing Strategy Back: How Strategic Shock Absorbers Make Planning Relevant in a World of Constant Change Author: Jeffrey L. Sampler

Price: $30

Publisher: Wiley

Pages: 224

Available: 12/3/2014

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INVESTING IN COMMUNITY

Up Next Month: How Boards Measure CEO Performance

THE AUTHOR: Michael Dimengo is Of Counsel with The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists.

SOLICITATIONS: ALL IN THE ADJECTIVES According to philanthropic psychologist Jen Shang, in The New York Times interview “Getting Into a Benefactor’s Head,” the use of a handful of adjectives in donor solicitations to women — kind, caring, compassionate, helpful, friendly, fair, hard-working, generous, honest (the attributes of a moral person) — can increase giving on average by 10 percent.

The adjectives that prompt men to open their wallets wider: strong, responsible, loyal.

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The Psychology of Giving

Understanding “why” people give may help executives sitting on nonprofit boards better understand and appeal to their donors

by Michael Dimengo Do people give to philanthropic causes out of a sense of responsibility or guilt, for tax breaks or prestige? Do they give to provide for the public good or for personal pleasure?

Individuals open their wallets for plenty of reasons, but a handful of motivations consistently rise to the top regardless of a donor’s income level. According to the Indiana University Lilly Family School of Philanthropy, people donate funds to meet critical, basic needs; to give back to society by making the community a better place; to help those with less; to bring about a desired impact or result. And the No. 1 reason revealed

in the school’s “Understanding Donor’s Motivations” report: People give because a request for money was made.

But it goes a bit deeper than that, explains philanthropic psychologist Jen Shang. First, she says, the donor’s curiosity and attention must be piqued by the nonprofit and its mission.

“The psychological transformation from paying attention to giving money is the process of integrating [the organization’s] cause from the external world into one’s most inner sense of who they are,” says Shang in a 2012 interview with The New York Times, “Getting Into a Benefactor’s Head.”

Why Corporations Give With so many stakeholders to please — the CEO, employees,

about responsible sourcing and investment, sustainability and

shareholders, the public — corporations don’t give solely for the

environmental practices.”

“warm glow” effect that individuals often do.

“Corporate charitable giving has a triple bottom line,” says

“Corporate giving is broader in focus than personal giving,” explains Phil Francis, retired chairman and CEO of PetSmart, Inc.

Jacky Alling, who oversees the Arizona Community Foundation’s

“It’s based on potential benefit to the company and impact on

Pakis Center for Business Philanthropy. “Not only is it good for the

positive external reputation, but also on services that directly

community and good for business, but data shows that employees

touch employees.”

who participate in cause-related efforts led by their employer have

When seeking corporate gifts, executives on nonprofit boards

greater loyalty and pride in their work, and customers increasingly

would be wise to consider that 87 percent of giving comes from

consider a company’s corporate social responsibility when choosing

individuals, and only five percent from corporations. Consider, also,

products and services.”

the top motivations for giving by corporations: to build image, to

Adds Richard Tollefson, president of The Phoenix Philanthropy

increase exposure in the community, and to improve quality of life in

Group, “A corporation’s philanthropic and corporate social

the communities in which they operate. Nonprofit board members

responsibility agenda is seen as a competitive advantage during

must be able to definitively respond to prospective corporate donors

an age in which individual consumers are increasingly concerned

who ask, “How can your nonprofit help meet those goals?”

Why do donors stop giving? *Too frequent solicitations. *Change in leadership or activities of the nonprofit they support. *Change in their own philanthropic focus. *Personal circumstances (financial, relocation, employment). *No longer personally involved with the organization. (Source: The 2012 Bank of America Study of High Net Worth Philanthropy)

Shang believes donors at all levels begin their philanthropic journey with a purpose. Another study by Bank of America, in partnership with the Lilly Family School of Philanthropy, supports the belief that people give with the purpose of making a difference. The school’s multi-year study of high-net-worth individuals found that wealthy donors give the most when they are moved by how their gift can make a difference, feel financially secure, support an organization or cause annually, and believe the organization they support is efficient.

Less than one-third of those 700 U.S. households polled (with net worth of $1 million or more) cited tax benefits as a chief motivator for giving. They give mostly for the personal fulfillment and satisfaction of knowing their gift will make an impact on the cause.

A study by the University of Oregon provided physical evidence of the personal fulfillment theory — via lit-up pleasure circuits in brain scans when subjects donated to charities.

Local philanthropist and former CEO of Empire Southwest John Whiteman says his reasons for giving personally do not differ materially from his reasons for giving as president of the Whiteman

“The psychological transformation from paying attention to giving money is the process of integrating [the organization’s] cause from the external world into one’s most inner sense of who they are.”

—Jen Shang

High-net-worth individuals who volunteer more tend to give more (Volunteer >100 hours = give 2x as much).

Foundation. In both instances, he says the most important question is, “Will the gift or gifts solve or help solve at least one of the societal root causes before us?”

Of course, there are myriad other reasons why people — across income levels — give. The Network for Good lists the top five reasons: being asked by an acquaintance/someone known and thus wanting to help, feeling emotionally moved by someone’s story, feeling powerful and helpful in the face of need, desiring to change someone’s life, and seeking a sense of closeness to a community or group.

Additional reasons cited by donors include memorializing a loved one, sustaining a family tradition, being hip or “in style,” building a social network, creating a good image (personally or within a company), and leaving behind a legacy of personal ideals or causes. Still others give because they feel fortunate, for religious reasons, or to be seen as a leader or role model.

What do these multiple motivations mean to the executive board member hoping to guide the nonprofit organization in fundraising efforts?

The psychology behind giving points to one thing: relationships — relationships among people, about people and for people. Nonprofits that share their cause and its importance, and match it to their donor’s interests — while nurturing those interests — are the most successful.

According to Richard Tollefson, president of The Phoenix Philanthropy Group, “Members of nonprofit boards must make decisions with the head and the heart when working directly with donors. They must: ■■ Listen, understand and build trust; ■■ Align donors’ and institution’s missions, visions, values; ■■ Develop long-term, mutually beneficial relationships; ■■ Frame the discussion on opportunity, investment, achievement of outcomes and impact; ■■ Be donor-centric; and ■■ Be community-centric.”

And, says community volunteer Phil Francis, retired chairman and CEO of PetSmart, Inc., “Board members who understand why people give also understand that inviting a friend or colleague to tour the organization, attend a cultivation event or meet clients of the organization are the best ways to engage others to become involved.”

SRP Smart Business Series

NATIONAL BANK OF ARIZONA OPENS AN ENERGY-SAVINGS ACCOUNT My name is Dennis Calik.

As corporate properties manager of National Bank of Arizona (NB|AZ), it’s my job to make sound investments in energyefficient projects.

We worked with SRP to maximize our ROI (return on investment) and received over $82,000 in rebates for installing lighting, occupancy sensors, direct digital controls, window film and a new chiller.

The outcome has exceeded our expectations. We save more than $74,000 per year on electricity costs. SRP Business Solutions offers rebates for almost any energy-saving project, ranging from lighting updates to new construction.

For more information, visit savewithsrpbiz.com or call (602) 236-3054.

The Phoenix Philanthropy Group phoenixphilanthropy.com

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DECEMBER 2014

On the Agenda

Arizona Technology Council

StartUpConnect AZ: A Second Annual Event Wed., Dec. 17 — 10:00a – 7:00p Adam Steltzner

Arizona Forward

Arizona Forward’s 45th Annual Luncheon Fri., Dec. 12 — 11:30a – 1:30p Arizona Forward will host its 45th Annual Luncheon December 12th at the Ritz-Carlton in Phoenix. The event will celebrate the organization’s history of environmental stewardship and recognize a handful of individuals who will receive Leadership Awards in honor of their contributions to the organization. The event will offer attendees the opportunity to network with members of Arizona’s largest corporations, small businesses and public-sector members who promote Arizona Forward’s sustainability agenda.

Previous luncheons have featured speakers such as Robert Kennedy Jr., Erin Brockovich, FDNY Chief Richard Picciotto.

“We like to reel in nationally recognized keynote speakers that pack a powerful, take-home message that attendees can apply to their personal and professional lives,” says Arizona Forward CEO and President Diane Brossart. “The allure of our annual luncheons goes beyond a sit-down event to pique the imagination and motivate audiences.”

This year, rock-star-wannabe-turned-rocket-scientist Adam Steltzner will be the featured speaker for the evening.

Steltzner was the lead engineer for the Mars Rover Curiosity’s “Sky Crane,” which he and his team spent nearly 10 years designing, building, testing and tweaking. “America is entering a new era in planetary exploration in large part to Steltzner’s audacious goals, unbridled thinking and revolutionary innovation,” says Brossart. Steltzner will share his message of expanding the boundaries of human achievement and promoting a culture of collaborative innovation.

The event is open to the general public.

Members: $85; non-members: $100 The Ritz-Carlton Phoenix 2401 E. Camelback Rd., Phoenix

The Arizona Technology Council, alongside IDS Technology Marketing and the Arizona Commerce Authority, will be hosting the second annual Startup Connect AZ Conference December 17th at the Scottsdale Hilton Resort. The event will showcase a variety of the state’s growing startups and feature a panel of leaders in technology, business, public policy, economic development and entrepreneurship within the Arizona community.

“StartupConnect AZ was created to provide a venue for the state’s technology, startup and funding ecosystems to interconnect and grow together,” says event co-chair Gabe Gasca. “This year, we have carefully curated a panel of experts to enable Arizona businesses to keep abreast of the latest developments and trends in the fast-moving technology economy.”

The Pitch Contest, which will be held before the networking reception, will showcase the top five startups chosen from the applicant pool and allow them to pitch their product or service to attendees. Finalists will have the opportunity to broadcast their product or service to local media, Arizona’s technology and entrepreneur community and potential investors. Last year’s Pitch Contest winner, Picmonic — an audiovisual mnemonic app that helps students master science — has expanded to more than 500 U.S. and international schools.

The audience will decide the single winner of the Pitch Contest at the end of the event. “The winning company will receive a grand cash prize comprised from ticket sales from the event,” says Gasca. Ticket sales are expected to reach $5,000. However, the greater number of attendees means the greater the cash prize, so all members of the Arizona community are invited to attend.

AZTC members and Arizona Startups: $50 for conference, $100 for full-day event; non-members: $100 for conference, $150 for full-day event Hilton Scottsdale Resort & Villas 6333 N. Scottsdale Rd., Scottsdale azcommerce.com

Photo courtesy of Arizona Forward

Heidi Curiel, hcuriel@arizonaforward.org

This year’s startup application process is closed. Any startup is invited to apply for the chance to pitch at next year’s event.

StartupConnectAZ.com

BUSINESSPEOPLE HELP Red is a signature event for the diverse communities of Phoenix to celebrate World AIDS Day. This event provides important services to the HIV/AIDS community. See event on page 34.

DECEMBER 2014

S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 DECEMBER 2014 NOTABLE DATES 14 15 16 17 18 19 20 Dec. 7 – Pearl Harbor Day Dec. 17-24 – Hanukkah 21 22 23 24 25 26 27 Dec. 10 – Human Rights Day Dec. 21 – Winter Solstice 28 29 30 31

Dec. 25 – Christmas Day Dec. 31 – New Year’s Eve

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On The Agenda Tues., Dec. 2

DECEMBER 2014 Fri., Dec. 5

11:30a – 1:15p

“What’s Taking Off?” Arizona Association for Economic Development

Scottsdale Area Chamber of Commerce

Keynote speaker Tamie Fisher, assistant aviation director for the City of Phoenix aviation department, will discuss Phoenix Sky Harbor International Airport’s Terminal 3 modernization and the remodeling of the airport’s international facilities. The luncheon will benefit Save the Family Foundation of Arizona, a charity that offers a variety of programs designed to empower families to conquer homelessness and achieve life-long independence.

Members: $40; non-members: $50; late registrants: $55 Phoenix Arizona Country Club Thurs., Dec. 4

8:00a – 9:00a

Chamber Chat with Rick Kidder on MoneyRadio

2901 N. 7th St., Phoenix

aaed.com

Tune in to “Chamber Chat” every Friday morning at 9:00 AM for the latest in news and information about the chamber and Scottsdale with host Rick Kidder, president and CEO of the Scottsdale Area Chamber of Commerce. An exciting opportunity for businesses to be showcased: At each upcoming Scottsdale Chamber event, SACC will raffle off a chance for a businessperson to join Rick live on the air!

Rick Kidder

Free

Cindy Kibbe, (480) 355-2707

MoneyRadio Mon., Dec. 8

7:00a – 1:30p

1510 AM and 99.3 FM 8:00a – 3:00p

2014 Air Quality Conference

Luke AFB Goodie Bags

Arizona Chamber of Commerce and Industry

Surprise Regional Chamber of Commerce

This is a day of cutting-edge information, lively discussions, and networking with colleagues and regulators from around the state. Topics of discussion include MCAQD Director’s Update, Rules and Revisions, Ozone, DEQ and EPA Updates as well as PM2.5 Updates. The conference is co-hosted by the Arizona Manufacturers Council and the Maricopa County Air Quality Department.

The Surprise Regional Chamber of Commerce goes to Luke Air Force Base every two weeks with a Goodie Bag. The purpose of the bag is for new Air Force personnel that have been transferred to Luke Air Force Base to become aware of the various businesses in the area. Businesses are invited to drop off at least 50 of their business’ pens, coupons, flyers, brochures, etc. to be delivered to the Luke Air Force Base newcomers and those separating from active duty.

Members: $75; non-members: $95

Free

Sheraton Phoenix Airport Hotel

1600 S. 52nd St., Tempe

azchamber.com

The Surprise Regional Chamber of Commerce

16126 N. Civic Center Plaza, Surprise

Wes Waddle, (480) 421-8753

2

3

Wed., Dec. 3

4

4

5

Sat., Dec. 6

11:15a – 1:15p

6

RED Brunch

Economic Club of Phoenix

Arizona Hispanic Chamber of Commerce

Top experts will deliver their state and U.S. forecasts at the Valley’s largest and most trusted economic-forecasting event.

The 51st Annual Economic Forecast Luncheon (my.wpcarey.asu. edu/apps/efl) is co-sponsored by the Department of Economics at Arizona State University’s W. P. Carey School of Business and JPMorgan Chase. About 1,000 people are expected to attend this year’s event, where unemployment, housing and the stock market will be among the issues covered.

Red is a signature event for the diverse communities of Phoenix to celebrate World AIDS Day. Aunt Rita’s Foundation, in association with the 16 nonprofit benefiting agencies that provide important services to the HIV/AIDS community, produces this annual fundraising event. At this event, we will join with our friends in reflection on the past three decades and how it has affected those we love. Also, we will recognize and honor individuals and organizations that continue to provide essential services and programs to the diverse HIV/AIDS community. Finally, we will take an opportunity to celebrate life.

Phoenix Convention Center – South Ballroom 3rd & Jefferson streets, Phoenix

Thurs., Dec. 4

$90 Sheraton Phoenix Downtown Hotel

Richard Laborin, (480) 965-3532

340 N. 3rd St., Phoenix

Natalia, (602) 279-1800

5:00p – 7:30p

Annual Business Celebration & Expo North Phoenix Chamber of Commerce

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11:00a

10th Annual Red & Green Golf Classic WESTMARC WESTMARC’s Red and Green Golf Classic provides an opportunity to golf with government and business leaders from the West Valley. The event is pure fun and includes a raffle and tournament prizes at the player reception immediately following the tournament. Team awards are given for 1st Place, 2nd Place and 3rd Place.

Individual awards are giving for Closest to the Pin, Longest Drive (Men and Women) and Snowball Longest Drive.

Arrowhead Country Club 19888 N. 73rd Ave., Glendale

$5 or a new unwrapped toy 4415 E. Paradise Village Pkwy. S., Scottsdale

Mon., Dec. 8

$200

The theme this year is Business, Arts, and Community. A portion of the proceeds will benefit North Valley Symphony Orchestra and Valley Youth Theatre.

The Emcee for the evening is former Miss USA and TV news anchor Jineane Ford.

Embassy Suites Phoenix/Scottsdale

8

10:00a – 2:00p

51st Annual Economic Forecast Luncheon

$95 per person; $950 per table of 10

8

northphoenixchamber.com

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

westmarc.org

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

Mon., Dec. 8

Thurs., Dec. 11

6:30p – 8:00p

Fall Photo Workshop Gangplank

Microsoft

This 10-week workshop will cover the basic principles of photography, and some professionals’ tips and tricks. Whether you’ve never touched a DSLR before, you’re trying to go pro, or photography is simply a pastime for you, this workshop is perfect for you.

Participants will need to provide their own DSLR camera, SD Card, and USB thumb drive.

SharePoint Online is about giving you and the people you work with a better way to get things done together. Share and organize your resources — like notes, documents, schedules, conversations and much more. Provide a secure way to share important data with external users, vendors and partners. Make sure work gets done by assigning people tasks that can be tracked and prioritized. Share knowledge and resources and always know where to find them.

Have your very own Corporate Intranet for a fraction of the cost.

Sponsored by Inspire Data Solutions LLC.

Free; registration is required via Eventbrite Gangplank Avondale Downstairs Main space

Microsoft Southwest District Offices

http://bitly.com/gangplank-fpw

60 E. Rio Salado Pkwy., Tempe

Lee Wade, (480) 459-5522

11:30a – 1:00p

Technology Brown Bag Lunch Seminar Series Chandler Chamber of Commerce This month’s technology topic is Video Marketing: YouTube editing and producing applications and software. It is presented by Kameron Williams, creative director and originator of LilliMedia, which specializes in the creative arts, Internet marketing, marketing communications, Web design and Web development.

Free

8

Chandler Chamber of Commercez

25 S. Arizona Pl., Chandler

9

Tues., Dec. 9

info@chandlerchamber.com

10

11

Fri., Dec. 12

5:00p – 7:00p

Michael Crow

Thurs., Dec. 18

Hot Topics and Lunch: ASU President Michael Crow Join ASU President Michael M. Crow as he shares insights on the advancement of the university’s evolution, its significance to Tempe, and the need for ongoing, innovative collaboration.

Hear firsthand how our hometown New American University is transforming 21st-century higher education worldwide through its commitment to excellence, access and impact, and what’s next as we look ahead to 2015.

Members: $25; future members: $35 Four Points by Sheraton Tempe 1333 S. Rural Rd., Tempe tempechamber.com

12

State of the Schools

Arizona Small Business Association

Tempe Chamber of Commerce

Mix and mingle with the Arizona Small Business Association and Arizona’s small business elite at the 2014 ASBA Holiday Mixer, hosted at the elegant Venue Scottsdale. The event features live music, appetizers and drinks, door prizes and raffles and, most of all, high-profile networking and socializing.

This event facilitates a meeting with a panel of educators to learn the condition of our educational institutions and determine how best to assist them in achieving their goals. Our focus this year is elementary education. We believe it is crucial that the educational and business communities collaborate and support one another. The panel will feature representatives from Tempe Union High School District, Tempe Elementary School District, Rio Salado College, Arizona Board of Regents, Mesa Community College, Kyrene School District, Global Pathways Institute and Arizona State University.

The Venue in Scottsdale

7117 E. 3rd Ave., Scottsdale

Robin Duncan, (602) 306-4000

Wed., Dec. 10

Members: $40; future members: $50 Doubletree by Hilton

2100 S. Priest Dr., Tempe

18

tempechamber.com

Kerwin Brown

Thurs., Dec.17

5:00p – 7:00p

The State of the Chamber Address Greater Phoenix Black Chamber

11:00a – 1:00p

Kerwin Brown, president and CEO, will give a summary of events that the chamber has been involved in over the past year. He will also address the future of the Phoenix Black Chamber as well as outlining some of the events coming up over the next year.

The Red Affair NAWBO – Phoenix Attendees will be treated to entertainment by Renee Morgan Brooks, a singer and a voice for empowerment and self-realization. She has toured across the world and touched the hearts and minds of thousands of people. Money raised through the Red Affair silent auction will be used for scholarships awarded by the nonprofit Women’s Enterprise Foundation (www.wefphx.org), for which NAWBO provides financial support. In the spirit of the holidays, all attendees are encouraged to wear red clothing to the Red Affair.

Members: $55; non-members: $65

17

11:30a – 1:30p

Holiday Mixer 2014

Free

11:30a – 1:00p

Tempe Chamber of Commerce

Free Catered Educational Event

525 N. Central, Avondale

Thurs., Dec. 11

11:30a – 1:30p

SharePoint Online: A Business Intranet, File Share and Collaboration Portal

Scottsdale Resort & Conference Center

Free Herberger Theatre 7700 E. McCormick Pkwy., Scottsdale

Suzanne Lanctot, (480) 289-5768

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

222 E. Monroe St., Phoenix Theatis McKissack, (602) 307-5200

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WE VALUE WHAT WE OWN

BY MIKE HUNTER

2015 Lincoln Navigator

2015 LINCOLN NAVIGATOR

In a year when gas prices are seeing a decline and other carmakers are seeing “all-new” redesigns of their luxury SUVs, Lincoln has simply remodeled its Navigator for 2015 — giving it a new grill and some technological upgrades that make this vehicle attractive both by way of amenities and its sticker price.

Standard is the Twin Turbo 3.5 liter EcoBoost V6 engine

by Ford. This re-engineered engine boasts more power per cubic inch of displacement than the conventional engines and impresses with 380 horsepower and 460 lb.-ft. of torque. The electric power-assisted steering is part of the Lincoln Drive Control system that provides ease in steering, a more fluid feel at lower speeds and total control at higher speeds. The technology continuously monitors and adjusts suspension.

The available Trac Four-Wheel-Drive system enhances handling on slippery surfaces and off-road terrain. Drivers can

City: 13 Highway: 18 0-60: 8.3 sec Trans: 6-speed automatic MSRP: $61,480

select their driving mode to a custom setting (Comfort, Normal and Sport) to experience the road to their specific taste.

Luxury abounds throughout the cabin with all of the amenities Lincoln is known for. The SYNC® with MyLincoln Touch™ lets occupants personalize their driving experience, from entertainment to climate, with simple voice commands, touchscreen controls or customizable “cluster screens” controlled by steering wheel-mounted buttons. These screens allow for navigation, mechanical measurements and even communication elements to ensure the driver gets what he or she wants in a dash-mounted instrument display. The 8-inch touch screen display is a virtual command center where voice recognition makes managing sound, communication, navigation and climate a breeze. The vehicle is also a Wi-Fi hotspot for passengers who wish to connect beyond their communication device.

The Lincoln Welcome Mat is an inviting entry luxury that truly prepares the vehicle for the arrival of the occupants.

The ambient lighting inside and out, an illuminated Lincoln insignia and predetermined climate needs are activated as the driver approaches the vehicle. The Reserve package includes elegant upgrades to the interior and sound package as well that surely hikes the price but adds some premium levels of comfort and ambience.

Mobile Speed

DEC. 20 1 4

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SURFACE PRO 3

IPAD AIR 2

SAMSUNG GALAXY NOTE PRO 12.2

Built to handle even the

iOS 8 is the most advanced

View lifelike detail and brilliant

most intensive of tasks,

and fastest mobile OS ever.

color on the new 12.2-inch crystal

Surface Pro 3 has a 12-inch

With iCloud Drive, users

clear HD display with more than

Full HD Plus screen, fully

can safely store any kind of

4 million pixels packed inside.

functional keyboard, and

document and access it from

It’s also lightweight at just 1.65

multi-position kickstand.

any device. Every feature

pounds, yet delivers an unrivaled

Insanely fast performance

in iOS 8 is designed to work

reading, editing and viewing

and seamless graphics

seamlessly with iPad Air 2,

experience and incredible

with the 4th generation

taking full advantage of its

responsiveness — all powered

Intel® Core™ family of

powerful A8X chip, ultrafast

by the Samsung Exynos® 5 Octa

processors (i3, i5, i7).

wireless and brilliant Retina

processor. $849.99.

Starting at $799.

display. Starting at $499.

Lincoln uses the MyLincoln Touch® technologies to incorporate technology and the driving experience. Updates are frequent and continue to add options and conveniences that make dashboard technology as reliable as a smartphone. Included in most of their 2015 vehicles.

Photos courtesy of Lincoln (top and far left), Microsoft (left)

lincoln lincoln.com

SEDAN SUV EXECUTIVE VAN LIMOUSINE SPRINTER MINI BUS MOTORCOACH

MEALS THAT MATTER

BY MIKE HUNTER

Gallo Blanco: Latin Contemporary Defined

$6.50

CHOCOLATE BROWNIE CAKE Chocolate brownie cake with housemade vanilla ice cream, chocolate sauce and strawberries $7.00

Gallo Blanco The Clarendon Hotel and Spa • 401 W. Clarendon Ave., Phoenix (602) 327-0880 • galloblancocafe.com

Assembly Line: Food for Thought CHIPOTLE MEXICAN GRILL

CAFÉ ZUPAS

PIZZA STUDIO

line” concept restaurants with locations

Using only the best

It’s all about choice —

throughout the Valley. Pick and choose as you

Over the years, Chipotle

ingredients and making

crust, sauce, cheese and

please for the perfect customized meal.

has become the most

all of their offerings fresh

toppings. This latest of

popular place to build

in each restaurant, Café

the hot spots is only at

a burrito bowl, salad or

Zupas has become a true

CityScape currently and

tacos with “integrity fresh

hot spot for a quick/custom

is serving up custom

foods.” The simplicity and

grilled sandwich, salad or

pizzas with incredible

quality ingredients make

soup (among other things)

flavor made from fresh

this a Valley standard,

and made to order in front

ingredients. Faster than

with locations virtually

of your eyes. Cater an event

you think, your concoction

everywhere. Catering is

with their catering services.

will arrive for pick-up and

available.

5 Valley locations

personal-sized pleasure.

chipotle.com

cafezupas.com

pizzastudio.com

Make it all about you for lunch at these “assembly-

Pizza Studio

DEC. 20 1 4

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Quesadilla is made with wonderfully flavorful braised pork with Oaxaca cheese and a jalapeño relish that ads just the right amount of spice. The tacos are the perfect lunch meal and are ordered individually. Choose from favorites that include Cochinita Taco, which is marinated local pork slow-braised in Achiote with orange, garlic and Guajillo chilies. The Carne Asada Taco is marinated grilled rib eye, onions and charred salsa that is a spicy and hearty meal in and of itself. The Shrimp Taco is made with wild Mexican shrimp with Chile de Arbol mayo, guacamole, shaved cabbage slaw and pico de gallo. Other dishes include the awesome flavors of the Chilaquiles Verdes, which is made with chicken or seasonal vegetables, topped with sunny-side-up eggs, queso Oaxaca and chili verde salsa. Also the Shrimp-nGrits is a must. This jumbo shrimp dish is made with Chorizo white wine sauce and is laid over polenta with pesto.

The restaurant and patio are simple, with an open, working kitchen that the friendly and knowledgeable servers populate and speed through to ensure great service. The patio is urban, large and open — the perfect location for a quick lunch this time of year.

Mexican Cheese: Añejo is dry and salty. This cheese is generally sold pre-grated. Sprinkle on enchiladas, antojitos [small plates], and add it to refried beans. Cotija is a strong-flavored cheese and is sold aged, making it a bit dry, salty, and granular in texture. Often served crumbled, Cotija doesn’t melt so much as soften.

Photos courtesy of The Clarendon (top and far left), Pizza Studio (left)

GUACAMOLE Made to order with citrus, spices and Cotija cheese

Set in the lobby area of The Clarendon Hotel, a contemporary boutique hotel in Central Phoenix, Gallo Blanco is a hot spot that has received accolades for its guacamole as well as for its overall menu.

The creation of chef and owner Doug Robson, who also owns Otro Café, Gallo Blanco’s menu offers dishes into which he has infused the foods he grew up on in Mexico and includes those of his French Vietnamese and English heritage. The flavors combine in Latin-inspired dishes with some truly memorable creations that include tacos, salads and entrées that will ensure a return visit.

Start with the made-to-order guacamole. This incredibly fresh, chunky avocado dip is made with citrus pieces, spices and Cotija, the somewhat grainy Mexican cheese. The Pork

WINTER 2014

SCOTTSDALECHAMBER.COM

Photo: Sergio Dabdoub Photography

MEMBER COMMUNIQUÉ

Scottsdale Spice turns up the heat on World Chef Competition Scottsdale’s newest culinary event crowned some of the “hottest” chefs in the Valley on Sat., Sept. 27, 2014, who showcased some of their spiciest dishes — and where one chef was selected to compete for the world title.

More than 700 attended the inaugural Scottsdale Spice Culinary Event, presented by Comerica Bank, at the Venue in downtown Scottsdale to sample dishes with a variety of heat levels prepared by some 20 Valley restaurants.

Not just a local foodie event, Scottsdale Spice was selected as a qualifying event for the World Chef Challenge in Las Vegas. At the Challenge, which took place in November 2014, one chef took home $25,000 in cash and prizes. Spicy Awards were also handed out at

Scottsdale Spice for favorite hot, medium and mild dishes, best overall dish and best booth décor.

Kate Crowley, food reviewer for Phoenix New Times; Mike Wahlberg, executive chef at Vintage 95 in Chandler; and Joanie Simon, host of “Restaurant Live Arizona,” judged 20 dishes based on flavor and presentation to determine who would earn the Golden Ticket and the right to compete at the World Food Championship.

“Scottsdale Spice is the first event of its kind for the Scottsdale Area Chamber,“ said Anna Mineer, vice president of business development for the Scottsdale Area Chamber of Commerce. “We give a huge thank-you to our sponsors, restaurant partners, SPICE — CONTINUED ON PAGE 2

Message from the CEO

Rick Kidder

The 29th Annual Sterling Awards, which honored excellence in micro business, small business, big business and nonprofits, was a rousing affair. Themed by Merestone, the Valley’s finest event production company, this superhero event could not have been more appropriate.

Twelve great firms were honored as finalists — and one finalist from each of the four categories was named an honoree.

When one looks at what ends up separating the good from the great — and every finalist we can deem great — the word “stewardship” comes to mind. In many ways an overused word that has lost some of its meaning, stewardship in its truest sense has become a standard for Sterling and a standard for the best in business.

In a business context, stewardship takes many forms.

Community stewardship is the commitment of a company to be “of” a place rather than simply “in” it. Employee stewardship implies that the leadership of a company is keenly interested in the well-being, success and general happiness of its employees. Financial stewardship means that company protects and enhances its value. Customer stewardship is demonstrated when the focus is less about transactions and more about forging relationships and building loyalty. These parts together remain the components for the broader term “stewardship,” but a truly successful company works on all four as priorities.

So, from where does a complete sense of the culture of stewardship spring? In simple terms, stewardship comes from the top. Whether a tiny business or a major corporation, the person KIDDER — CONTINUED ON PAGE 2

SCOTTSDALE@WORK - 1

on top defines the priorities and drives the culture. Great leaders listen more than they speak. Great leaders genuinely listen to the opinions of the lowest persons on the food chain of a firm with equal enthusiasm as those of top executives. I have never trusted a leader who doesn’t know the names of those employees whom he or she passes every day. And I have always believed that the CEO of most successful companies occasionally serves as its highestpaid janitor. A great leader picks up the candy wrapper in the parking lot rather than expecting someone else to do so.

Great stewards are great leaders, and great leaders build great companies. During challenging times, it is easy to set stewardship aside in favor of dealing with the here and now.

Business cycles create new fires to put out, new business to be gained, savings on expense lines and stress. I would contend that those who succeed best in down times are those who, against all odds, maintain that posture of stewardship. No one in business is alone, even if self-employed, and it is through maintaining a philosophy of stewardship that a business can weather the inevitable storms.

The Sterling Awards are about stewardship. The finalists and honorees all have great leaders who every day work to demonstrate the four facets of stewardship. We could not be more proud to honor them.

SPICE — CONTINUED FROM PAGE 1 volunteers — and, of course, all those who attended — for making this event such a success. We can’t wait to turn up the heat even hotter next year.”

Molten Gold Chef Anthony Serrano of El Palacio Restaurant and Cantina in Chandler was named the Golden Ticket winner and qualifier for the World Food Championship. With a name like that, it was no wonder that Chef Serrano took the night’s honors with his interpretation of Carnitas Street Tacos, citrus-braised pork accompanied by spicy slaw nestled on a beer-can holder.

Spicy Award Winners Event-goers had the opportunity to let their voices and palates be heard, and voted on a variety categories. Winners of the Spicy Award were: Favorite Hot Dish: Angry Crab Shack — TrifectaSausage, Shrimp and Potatoes with Scorching Scorpion Sauce Favorite Medium Dish: Honey Bear’s BBQ — Barbecued Pulled Pork Favorite Mild Dish & Best Overall Dish: Hula’s Modern Tiki — Hawaiian Ceviche and Volcanic Ahi Poke Best Booth Décor: Venue of Scottsdale Setting the smokin’ atmosphere for the evening was Sapphire Sky, which rocked out high-energy tunes as blistering as the food.

New Partner Council Members The Partner Council supports the chamber at significant investment levels in order to support the mission of the organization and to engage in programs and services dedicated to that smaller group.

Since June, the following fine companies have elected to join the Partner Council of the Scottsdale Area Chamber of Commerce.

Changes at the Chamber Rick Kidder, president and CEO of the Scottsdale Area Chamber, announced several key additions that have come to the chamber staff since May. Cindy Kibbe has taken the role of executive assistant. Kibbe brings a wealth of journalism, project management and marketing experience to the chamber. She is providing planning and support for many of the reoccurring programs such as Know Your Chamber and Friday Forums as well as day-to-day administrative tasks.

Cindy Kibbe

Sincerely, Suzanne Hayes was added to the chamber staff as a full-time membership development executive after growing successfully the member base as a contract membership development specialist.

Hayes has more than 20 years of experience selling advertising and memberships, including working with the Better Business Bureau.

Rick Kidder President/CEO

2 - SCOTTSDALECHAMBER.COM

Photos: Sergio Dabdoub Photography

KIDDER — CONTINUED FROM PAGE 1

Scottsdale Airpark Bus Tour makes a comeback

Photos: Sergio Dabdoub Photography

The Scottsdale Area Chamber of Commerce resumed its popular bus tour of the Scottsdale Airpark Area on Oct. 29, 2014.

Nearly 60 businesspeople climbed aboard Scottsdale’s iconic trolleys for an informative tour highlighting the Airpark’s history and to learn more about the companies that currently call the area home.

Inside a mere 8.6-square-mile area, Scottsdale Airpark packs in more than 3,000 businesses, and is one of the largest employment centers in Arizona.

The tour started with breakfast and beverages at the nearby WestWorld, known for its world-class equestrian facilities and home to some of the most premiere events in the nation. Then it was all aboard the trolleys to visit key businesses throughout the area as well as to learn more about future plans for the Airpark.

Rick Kidder, president and CEO of the Scottsdale Area Chamber of Commerce, and Bob Tunis, economic development manager for the City of Scottsdale, were cast as tour guides on the buses and shared valuable information about the area — including public art, sales taxes and state land as well as current and upcoming businesses.

“Six of the 13 Arizona businesses listed on the Inc. 500 list of fastest-growing companies are based in the Scottsdale Airpark,” said Kidder. “It’s companies like these that add to the strong economic fabric of not only the Airpark but to the city as well.”

The annual bus tour went on hiatus in 2008 when the challenging economic climate brought about rapid business turnover in the area.

With a vibrant economy returning to the Valley, the chamber felt it was a great time to put the Airpark and its businesses back in the spotlight with the return of the bus tour.

On the heels of the successful 2014 bus tour, plans are already underway for the 2015 event.

the freshest seafood s the finest prime steaks s exquisite wines genuine service s live entertainment 7 nights a week s private dining

mastro’s steakhouse

8852 pinnacle peak road, scottsdale 480.585.9500

mastro’s city hall steakhouse 6991 east camelback road, scottsdale 480.941.4700

mastro’s ocean club

15045 north kierland blvd., scottsdale 480.443.8555

www.mastrosrestaurants.com

SCOTTSDALE@WORK - 3

Scottsdale businesses, nonprofit shine at 2014 Sterling Awards

• • • •

icro Business — Signs by Tomorrow Scottsdale M Small Business — Nussbaum Gillis & Dinner PC Big Business — Vi at Silverstone Non-Profit — Feeding Matters

No “rubber chicken” event, this year’s Sterling Awards pulled all the punches with its superhero theme. Complete with caped crusaders, comic book villains and catchy music, the awards ceremony delivered a big kapow! to the audience.

“This year’s Sterling Awards represents a most accomplished group of honorees,” said Rick Kidder, president and CEO of the Scottsdale Area Chamber of Commerce. “Each year, the applicants raise the bar a little more. But that is what makes this award as inspiring for our members to judge as it is to celebrate.”

Micro Business Honoree — Signs by Tomorrow Scottsdale

Small Business Honoree — Nussbaum, Gillis & Dinner PC

The Sterling Award for Micro Business recognizes an emerging business with 10 or fewer employees that exhibits success through innovation, creativity and collaboration.

Signs by Tomorrow Scottsdale creates affordable, high-impact signs and effective visual messaging solutions. As part of an international franchise system, Signs by Tomorrow is a local company with world-class expertise.

Also recognized in the Micro Business category were HR Wise LLC and FSW Funding.

This year’s Micro Business award was presented by Prestige Cleaners.

The Sterling Award for Small Business honors a small company, with between 11 and 99 employees, demonstrating innovation, quality, professionalism and commitment to the community.

Nussbaum, Gillis & Dinner PC is a private law firm located in North Scottsdale. Founded in 2008 by Randy Nussbaum and Greg Gillis, the firm focuses on complex bankruptcies, business litigation, construction and real estate law.

GPS Insight and Phoenix Jewish News were also named finalists in the Small Business category.

The 2014 Small Business award was presented by Cox Media.

4 - SCOTTSDALECHAMBER.COM

Photos: Sergio Dabdoub Photography

More than 400 attendees watched as three businesses and one nonprofit organization exemplified why Scottsdale is a superb place to work, live and play at the 29th Annual Scottsdale Area Chamber of Commerce Sterling Awards, held Fri., Nov. 14, at the Chaparral Suites Resort in Scottsdale.

Four winners were selected from among 12 finalists for the coveted Sterling Award. The winners were:

Big Business Honoree — Vi at Silverstone

Non-Profit Honoree — Feeding Matters

The Sterling Award for Big Business singles out a large company, with 100 or more employees, making a significant impact on the lives of its employees and the economic fabric of the community.

Vi at Silverstone is dedicated to providing quality environments, services and programs to enrich the lives of older adults.

Other Big Business finalists honored were FireSky Resort & Spa and VIP Mortgage.

Telesphere was the presenting sponsor for this year’s Big Business award.

The Sterling Award for Non-Profit recognizes a charitable organization contributing to the social, cultural and educational well-being of its constituents.

Feeding Matters supports families with children who have feeding struggles through professional education, advocacy, research, treatment and other resources.

Also named as finalists in the Non-Profit category were the Arizona Chapter of the National MS Society and Parada del Sol. The Non-Profit award was presented by APS.

Tough award, tougher competition

Photos: Sergio Dabdoub Photography

The Sterling Awards are some of the most coveted business awards in the Valley because of the rigorous application, judging and selection process. The businesses and nonprofits that receive the award, all of which must be members of the Scottsdale Area Chamber, are truly exemplary in what they do, how they treat their employees and how they support the community.

Four teams of judges conduct an initial review of all applications, and narrow the field to three finalists in each category. Once finalists are identified, the judges conduct an onsite interview with company leaders and tour the business to learn more about its operations. Each judge then votes independently for a finalist, awarding it points. The points are then tallied, and the results are not released until the day of the event.

SCOTTSDALE@WORK - 5

INFOCUS: GRAND OPENINGS!

Burger 21

State Farm - Brock Quinn

Keller Williams Realty

Feeding Matters

Mattress Firm

XCVI

Imagine Backyard Living

Amber Creek Inn

6 - SCOTTSDALECHAMBER.COM

AUTOWITS

5th Avenue Area Merchants Association

Scottsdale Bedrooms

Perfect Teeth

The latest business news on inbusinessmag.com and on twitter @inbusinessmag

Follow us to build your small business

/inbusinessmag

@inbusinessmag

SCOTTSDALE@WORK - 7

2015 Women in Leadership

One Speaker, One Room, Wonderful Results

Date: Feb. 11, 2015 Time: 11 a.m. – 1:30 p.m.

Location: Silverleaf Club at DC Ranch

What happens when you gather hundreds of Scottsdale’s most powerful women and one aweinspiring speaker in one place? Incredible results.

The Scottsdale Area Chamber of Commerce is hosting its 2015 Women in Leadership luncheon, 11 a.m. to 1:30 p.m., on Wed., Feb. 11, 2015, at the Silverleaf Club in DC Ranch, one of the most elite event sites in the Valley.

Women in Leadership is an inspirational, “no fluff” educational luncheon about managing work and life while excelling in the professional world.

This year’s featured speaker is Flora Jessop, an advocate against child abuse in the Fundamentalist Church of Jesus Christ of Latter Day Saints. Jessop grew up in Colorado City,

Arizona, where she was raised in a polygamous family. At 16 years old, after years of abuse, she fled her family and her faith.

Jessop used her ordeal to Flora Jessop help found and now serves as the executive director of the Child Protection Project, an organization dedicated to raising awareness about institutionalized child abuse and to assist the victims of this pattern of abuse.

The 2015 Women in Leadership luncheon is presented by APS, with support from Cox Communications, Merestone and Scottsdale Community College.

Scottsdale Forward

Scottsdale Forward is a significant economic development initiative undertaken by the Scottsdale Area Chamber of Commerce. The symposium is held annually and is intended to be inspirational, informative and invigorating.

Featuring a series of high-profile speakers from Scottsdale and the Valley, and drawing an audience of some 200 attendees, this forum

tackles topics that are key to the economic development of the region. It also offers participants the opportunity to take on an advocacy role in an ongoing basis, through participation in one of several focus initiative groups that create a continuous dialogue related to vital business and commercial interests.

Date: March 26, 2015 Time: 7:15 – 10 a.m.

Location: S cottsdale Community College Performing Arts Center

Scottsdale History Hall of Fame Date: April 15, 2015 Time: 5:30 – 9 p.m.

Location: Chaparral Suites Resort & Conference Center The Past Presidents’ Council of the Scottsdale Area Chamber of Commerce invites you to join its members in honoring four individuals and one nonprofit organizaton at the annual Scottsdale History Hall of Fame Dinner. Over the past 20 years, the council has honored 115 past and present Scottsdale personalities and organizations to induct into the Scottsdale’s History Hall of Fame. Inductees have contributed immeasurably to the rich heritage of Scottsdale, dating back to the city’s modern-day founding in 1888 by Army Chaplain Winfield Scott.

Chamber members, guests and the public are welcome to attend.

Scottsdale Area Chamber Open Golf Tournament Date: April 17, 2015 Time: 1 p.m. Shotgun Location: Gainey Ranch Golf Club One of the chamber’s most popular events, the Scottsdale Area Chamber Open golf tournament is a big hit with members and guests, attracting golfers from some of the Valley’s most influential companies. The tournament gives attendees an opportunity to play a great course and enjoy business-tobusiness networking at its best! Limited to 120 players, the Chamber Open provides fun, golf, competition and a measure of silliness that make it an annual favorite.

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BOARD OF DIRECTORS EXECUTIVE COMMITTEE RICK KIDDER PRESIDENT & CEO Scottsdale Area Chamber of Commerce rkidder@scottsdalechamber.com 7501 E. McCormick Pkwy, Suite 202-N Scottsdale, AZ 85258 Phone 480.355.2700 Fax 480.355.2710 www.scottsdalechamber.com

BOARD CHAIR Eric Larson, AVB Development Partners CHAIR-ELECT Bryce Lloyd, FirstBank of AZ IMMEDIATE PAST CHAIR Kurt Zitzer, Meagher & Geer, PLLP TREASURER Geoff Beer, Crescent Bay Holdings PARTNER COUNCIL Kevin Sellers, First Fidelity Bank EMERGING ISSUES Bill Heckman, Heckman Marketing, Inc. PUBLIC POLICY ADVISORY COUNCIL Steve Helm, Scottsdale Fashion Square

ECONOMIC DEVELOPMENT ADVISORY COUNCIL Don Couvillion, ASU SkySong MEMBER VALUE ADVISORY COUNCIL Pam Kelly, Pro One Media AT LARGE MEMBERS Jennifer Bongiovanni Karas, The Karas Group Kurt Brueckner, Titus, Brueckner & Levine, PLC Angela Creedon, Arizona State University Dale Fingersh, The Right Direction Rick Kidder, Scottsdale Area Chamber of Commerce

© 2014 Scottsdale Area Chamber of Commerce. A publication of the Scottsdale Area Chamber of Commerce. For more information or to join the Scottsdale Chamber, please contact us at www.scottsdalechamber.com. Section designed by InMedia Company, LLC.

Celebrating 29 years of serving the women business owners of Phoenix

Winter 2014 • nawbophx.org

Women Flexing Their Economic Muscle

By Dorothy Wolden, President 2014-2015

About NAWBO

NAWBO® prides itself on being a global beacon for influence, ingenuity and action and is uniquely positioned to provide incisive commentary on issues of importance to women business owners.

NAWBO Phoenix propels women entrepreneurs into economic, social and political spheres of power.

Visit one of our FREE welcome meetings, held the second Wednesday of each month – for all new and prospective members. This casual, informational opportunity highlights both local and national benefits of NAWBO membership. This is a great place to determine if NAWBO is a fit for you and your business.

Take advantage of this great networking opportunity by bringing business cards and making connections.

For more information, please visit NAWBOphx.org.

Phoenix Metropolitan Chapter of the National Association of Women Business Owners 7949 E Acoma Dr., #207 Scottsdale, Arizona 85260 480-289-5768 info@NAWBOphx.org

A recent report by American Express OPEN shows that there are now 9.1 million women-owned businesses in the United States. These firms generate more than $1.4 trillion in revenue and employ more than 7.8 million people, according to the report. In terms of growth in combined economic clout, Arizona is ranked fourth. The statistics of the success of women-owned and -led businesses are undeniable, but there is still plenty of work to be done.

The number of women-owned firms continues to grow at a rate exceeding the national average, yet women-owned firms only employ 6 percent of the nation’s workforce and contribute just under 4 percent of business revenues — roughly the same share they contributed in 1997. The real issue at hand is not getting more women to start business, but rather providing support to women who are already in business to enable them to grow their enterprises to the next level.

Imagine the economic impact if more of these ventures were transformed into thriving businesses. This is why NAWBO remains so passionately dedicated to helping women entrepreneurs become successful business owners.

Here are some great reasons you should support womenowned businesses: 1. Women have the right stuff - Women make better leaders than men, according to research conducted by Zenger Folkman. “They build better teams; they’re more liked and respected as managers; they tend to be able to combine intuitive and logical thinking more seamlessly; they’re more aware of the implications of their own and others’ actions; and they think more accurately about the resources needed to accomplish a given outcome,” said Jack Zenger and Joseph Folkman in Forbes.

2. The proof is in the pudding: A report by Dow Jones VentureSource finds that women deliver better company performance. Venture-backed companies where females are the senior executives are more likely to succeed than companies with only men in charge, according to Women at the Wheel: Do Female Executives Drive Start-Up Success?.

VC firms that invest in women-led businesses performed better than all men-led businesses, according to the SBA Office of Advocacy.

3. Diversity improves performance and increases innovation: Organizations that are the most inclusive of women in top

Dorothy Wolden President, NAWBO Phoenix

Dorothy Wolden President NAWBO-Phoenix 2014-2015 Gravity Webworks 130 N. Central Ave., Suite 301 Phoenix, AZ 85004 602-258-1300 dwolden@gravityphx.com Years in Business: 12 Years in NAWBO: 6

Continued on page 8

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MEMBER SPOTLIGHT

Deborah Lavinsky, PMA®-CPT

Deborah Lavinsky

Owner of BellaBody Pilates, LLC.

Our serene, full-service studio at 13825 North 7th Street, Suite E, in Phoenix provides Balanced Body equipment — Reformers, EXO and Combo Chairs, Cadillac/Trapeze Table, Pilates Springboards, Ladder Barrel, and the innovative CoreAlign® that can help you create a strong, flexible and lean body. Private and small-group equipment classes as well as high-energy Classic Mat and BellaBody Barre group classes are available. BellaBody Pilates mission is to be the source for high-quality instruction in a clean, safe and comfortable environment while creating a caring community of Pilates students.

Owner Deborah Lavinsky completed advanced comprehensive Pilates training through the Pilates Sports Center’s Scottsdale certification program. PSC combines classical Pilates with a contemporary, athletic approach. Lavinsky completed the PSC Burn at the Barre certification, one of the hottest fitness trends today. Professionally, she is a Pilates Method Alliance® Certified Pilates Teacher, a member of the Pilates Method Alliance (PMA) and IDEA. Lavinsky discovered the exercise system known as Pilates more than six years ago and loved how she felt after her first lesson. Over time, she lost more than 70 pounds, going from a size 22 to a petite size 6, ran the PF Chang’s Rock and Roll Half Marathon, and competed and finished nine sprint triathlons. Pilates has helped her gain a leaner and stronger body and improved her balance, and it gives her a sense of relaxation and confidence. It helped her through arthroscopic knee surgery and various rehabs with more flexibility than she had in her ’30s.

Giving back to her community has always been important to Lavinsky. She is currently serving as vice-chair on the Governor’s Advisory Council on Aging, is a 2014 Women’s Enterprise Foundation scholarship recipient and board member, is a member of the National Association of Women Business Owners (NAWBO) and the North Phoenix Chamber of Commerce, and was the 2013-2014 Director for Central Phoenix Women.

BellaBody Pilates is offering a special “Introduction to Pilates Package” of three private 55-minute equipment classes for $99, and a first-time group fitness class for $10 — a 50% discount. Every month, a special event or workshop is scheduled, incorporating new ideas, social interaction, charitable giving and fun.

For more information, you are invited to contact BellaBody Pilates at 602-318-5068 or visit www.bellabodypilates.com.

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Contact Information 602-318-5068 www.bellabodypilates.com Connect with BellaBody Pilates www.linkedin.com/in/deborahlavinsky facebook.com/deborah.lavinsky facebook.com/TheBellaBodyPilates @Kokopelligrl

CORPORATE SPOTLIGHT

‘Establish a Family Tradition’ Jonilynn Designs introduces new collection

Jonilynn Designs has created a way of instilling the “family tradition” back into our lives. The Madonna & Child Collection is a “special blanket for special occasions” — the birth of a baby, a christening, baptism, or dedication. The continuation of family traditions amidst increasing technological advances is extremely important in today’s fast-paced lifestyle. Jonilynn Designs’ couture blankets are made from a variety of rich, quilted satins; Italian laces; and pearls.

Our heirloom designs, custom embroidery, specialized quilting techniques and intricate monograms richly commemorate a child’s most precious moments in an elegant new way.

Your bundle of love will be wrapped up and embraced by an iconic maternal figure whose essence brings a sense of love, security and connection. These blankets represent your family’s identity and values that can be passed on with love from one generation to another.

Jonilynn Designs can be purchased through www.jonilynndesigns.com

Contact Information 480-585-6346 www.jonilynndesigns.com facebook.com/JonilynnDesigns twitter.com/jonilynnDesigns pinterest.com/jonilynndesigns instagram.com/JonilynnDesigns plus.google.com/u/0/ 103452059448956637662 Mon. – Fri.: 9am – 4pm Sat. – Sun. & Holidays: Closed

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

Campus • Evening • Online

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

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CORPORATE SPOTLIGHT

Contact Information 480-621-5559 www.diamondvisionsevents.com

The Passion Statement

”We bring people together through travel and events to accomplish world peace one relationship at a time.”

We plan, coordinate and execute dining experiences that will inspire individuals to be “their best,” bond as a “family” and feel a sense of community. Our desire to make a difference in each person’s life guides us in customizing the private dinner, team building activity or learning workshop to accomplish WOW results for our clients!

Our business raises awareness of a joyful life, while creating programs filled with fun and excitement.

Our core belief is that amazing things happen when food and a dinner table are present ... so everything we do involves Carmella cooking food and eating around a big table. The experience begins as guests arrive and feel the warmth and excitement of our home (or your home, or any gathering place). Everyone gathers in the kitchen, meeting new friends or rekindling friendships while Carmella prepares our meal. A magical feeling fills the air as people watch the food being prepared and the secret ingredient “Love” flavors each entree. We then sit together at our large table sharing delicious food, and each guest shares their passion. This time together becomes the catalyst that truly brings people together.

As we say, “Eat together, Evolve Together” Our purpose is to provide an opportunity for our clients to bring together customers, key executives or influential associates in a setting from which, as a result of the experience, lasting relationships will be created or enhanced. These strengthened relationships will allow company leaders to not only accomplish business goals, but also have a better understanding and insight into the people they work and do business with every day!

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Thought Starters...

Eat Together Our signature event is to host an intimate dining experience. This includes food, drink, venue and the “magical” experience.

Play Together We create team-buidling activities such as cooking contests or art lessons. This includes food, drink, venue and the “magical” experience.

Learn Together We provide meeting content, typically personal development ideas. We include food, drink and a professional to guide the meetings.

Have Fun Together We will coordinate regular activities that might include: afternoon teas, meet the president and staff luncheons, and theatre & dining experiences.

CORPORATE SPOTLIGHT

ClickChick Photography

As one of the most well respected retail photography studios in the valley, ClickChick Photography honors the tradition of fine portraiture by creating timeless portraits of you and your family that can be passed down through generations. From wall portraits of your family proudly hanging in your home, to maximizing your business image with a professional headshot, your experience with ClickChick Photography will always be relaxed and fun in a comfortable studio environment.

Certified by the Professional Photographers of America (the only husband and wife photographers in the Valley to have this distinction), Bob and Connie are both highly decorated and awarded photographers, being named Top Ten Arizona Photographers of the Year in 2010, 2012 and 2013, and Connie awarded the prestigious bronze photographer of the year by the national PPA association. Their images have won numerous accolades at the international level as well as recipient of the coveted Fuji Masterpiece award.

Connie and Bob treat photography as an art form and understand the importance of focusing on light, shadow, shape, color, pose, expression and emotion for every client.

Although ClickChick Photography uses the highest quality equipment and labs to create their images, it is the skill of the photographers that ultimately determine the essence of the portrait. Connie says that she has found family photography to be one of the most popular type of sessions, and explains how children seeing themselves every day in a family portrait hanging on the wall helps create closer bonds between parents and their children. “A family portrait represents the emotional connection between all family members and reminds children of their sense of belonging and love with their parents.”

When asked why they are so passionate about their business, Connie stated, “Bob and I want you to love your images. They are our art. We will do everything in our power to bring you the most amazing experience you have ever had with a photographer. It is our sincere hope that you love the images we create for you as much as we love creating them..

ClickChick Photography specializes in maternity, baby, family, high school senior and professional portraits. Visit their website at www.clickchickphotography.com or you may contact them at 480-748-9401.

ClickChick Photography is located in North Scottsdale at the La Mirada center at Pinnacle Peak Rd. and Pima Rd.

nawbophx.org

Connie Zimmerlich

Contact Information 480-748-9401 www.clickchickphotography.com Connect with ClickChick Photography linkedin.com/company/ clickchick-photography facebook.com/pages/ ClickChick-Photography/21255829311 plus.google.com/ 100526117048751562377

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CORPORATE SPOTLIGHT

Lora Moon Styling

Contact Information

Lora Moon Styling is a boutique hair salon located in the heart of McDowell Mountain Ranch in North Scottsdale.

We currently employ seven hair stylists/ colorists who are all highly trained in all areas of hair styling and hair coloring.

Our specialty at Lora Moon Styling is hair color. We keep our color bar right on the main floor to show how serious we are about achieving the very best results every single time. Both of our hair color and product lines, Davines and Eufora, are eco-friendly and non-toxic. Both product lines are highly sophisticated and utilize the most current and up-to-date technology in the industry.

At Lora Moon Styling, we have done the hard job for you, locating the most talented and customer-oriented stylists in the Valley and offering the absolute highest quality hair care products that are available.

We look forward to meeting your hair care requests!

10401 E. McDowell Mountain Ranch Rd. Suite 140 Scottsdale, AZ 85255 480-513-6399 www.loramoonstyling.com Hours: Mon. 9-5 Tue. 9-7 Wed. 9-7 Thu. 9-7 Fri. 9-5 Sat. 9-5 Sun. Closed Lora Moon Styling offers a 20% discount on all services to NAWBO members.

Support Local Entrepreneurial Education and Economic Development Plus gain direct access to one of the fastest growing demographic of consumer decision makers.

The NAWBO Phoenix Chapter is seeking to develop relationships and work with community organizations to bring value to both partners.

To learn more about the opportunities to connect with NAWBO and Phoenix women business owners, contact Suzanne Lanctot at suzanne@nawbophx.org or 480-289-5768 7949 E. Acoma Drive, Suite 207, Scottsdale, AZ 85260

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480.289.5768

www.nawbophx.org

CORPORATE SPOTLIGHT

Deborah Fortini

The Vault Wine Storage

On October 1, 2013, Deborah Fortini opened the first 100-percent wine storage facility in Phoenix, named The Vault Wine Storage. Prior to then, wine lovers had only the option of storing their wine in home cellars or in self-storage facilities, which do not cater to the specific needs of wine clientele. Deborah Fortini changed all of that when she purchased a property in October of 2012, specifically to be converted to a wine storage facility. “Most people don’t want to worry about wine cellar failure, break-ins, or even guests or kids getting into their wine collections when they are away.”

Not only does The Vault provide peace of mind by addressing security, backup and mitigation plans, but it also caters its concierge services to wine clientele. For instance, members have more than 20 different size lockers to choose or expand into, and they can ship their wine club memberships or wine purchases directly to The Vault without having to be present to sign for the delivery. The Vault Wine Storage also has a tasting room for the members’ use and holds regular tasting events.

Fortini has a passion for wine, and she also has extensive experience in commercial real estate, as she spent the prior 10 years as a commercial real estate broker for Cushman & Wakefield in San Diego, selling office and industrial buildings. When she conceived the wine storage concept, and decided upon Phoenix, she located the perfect building, property and location to convert to wine storage. That property also contained a second building, an industrial building with a roll-up door and views of Camelback Mountain.

Fortini is currently converting that building to a restaurant and wine bar, to finally complete her vision of creating a destination site that brings wine lovers together.

nawbophx.org

Contact Information 4117 N. 44th Street Phoenix, AZ 85018 602.954.5661 www.thevaultwinestorage.com

Connect with The Vault Wine Storage facebook.com/thevaultwinestorage twitter.com/vaultarcadia

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NAWBO NEWS

SAVE THE DATE! NAWBO PHOENIX Corporate Partners Presidential Partner Salt River Project Western International University Strategic Partner Infusionsoft Executive Partner Allstate Insurance Border States Electric Kolbe Corp National Bank of Arizona Newtek Orchard Medical Consulting Snell and Wilmer Southwest Gas AZ Tech Finders Walmart Wells Fargo Presidential Media Partner Gravity Webworks Media 88 Strategic Media Partner Despins Printing & Graphics Independent Talk 1100KFNX NetworkingPhoenix.com Phoenix Business Journal Executive Media Partner CITYSun Times Easel Photography In Business Magazine Money Radio 1510 Business Partner AmTrust Bank Bank of Arizona Benjamin Franklin Plumbing New York Life Phoenix Country Club Schmeiser Olsen & Watts LLP State Farm Insurance UPS

Annual Red Affair Wednesday, December 10, 2014 11:00am to 1:00pm

Come celebrate women in business with the most influential women in the metro Phoenix area! Join NAWBO Phoenix at the beautiful Scottsdale Resort & Conference Center for a spectacular holiday luncheon, which includes the traditional custom red dessert!

Our theme this year is The Power of Giving and Receiving. Network with our amazing members, guests and colleagues and support the companies showcasing themselves through sponsorships, raffles and the silent auction! You won’t want to miss all the fun and festivities the Red Affair offers!

Enjoy Live Entertainment, a Silent Auction & numerous Raffle Prizes 11:00 am –11:30 am — Reception and Silent Auction & Raffle Preview 11:30 am – 1:00 pm — Luncheon, Entertainment with Rev Renee Morgan Brooks, Past Presidents Recognition, Silent Auction & Raffle Prizes Complimentary valet parking. Festive Red Holiday Attire Requested.

A portion of the profits from the Red Affair will benefit the Women’s Enterprise Foundation.

Registration Fees $55 Member $65 Non Member $15 Late Fee after Friday, Dec., 5. $25 On Site, day of the event.

Cancellation Policy: In order to receive a full refund, written notice must be made to Info@NAWBOPHX.org 48 hours in advance of any NAWBO event Continued from page 1

management achieve 35 percent higher return on equity (ROE) and 34 percent better total return to shareholders versus their peers — and research shows gender diversity to be particularly valuable where innovation is key, according to research conducted by Illuminate Ventures.

4. Untapped spending power: With 80 percent of consumer spending controlled by women, and women having considerable influence on spending categories that are considered the domain of men, such as autos and electronics, that is a whole lot of purchasing power for products and services.

5. Women never stop learning: Every entrepreneur I know has built a successful business by admitting that you don’t know everything — and never will. That is the way to growth. Interestingly, self-development is one of those areas in which women outshine men, according to Zenger Folkman’s research.

Hopefully, I’ve laid out some valid reasons to support women-owned businesses. In the previous pages we have highlighted NAWBO Phoenix members and corporate partners that are thriving women-owned businesses in our community. Please enjoy getting to know them and contact them for the products and services they provide.

Wishing you continued success, Dorothy Wolden

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I N B U S I N E S S M AG . CO M

Top

Luxury

2015

Real Estate Agents Walt Danley Kevin Owens

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Cathy Hotchkiss Sandra L. Wilken

Presented By:

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Luxury Follows Its Own Trends Luxury home buyers continue to find Phoenix attractive

by RaeAnne Marsh The Phoenix-area housing market is unlikely to see a significant boost until next year, according to the latest monthly report from the W. P. Carey School of Business at Arizona State University. “Demand has been much weaker since July 2013 and still shows little sign of recovery,” says the report’s author, Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. “Supply is also fairly limited. We anticipate pricing will continue to move sideways over the next few months, and a significant increase in demand will be required to change things.”

The median single-family-home sales price was up 5 percent from last September, but, according to the report, that is largely just because fewer sales are clustered at the bottom end of the market, not because individual home prices are rising much. The area has been experiencing sluggish demand and low sales activity for more than 14 months. The rental market, however — because there are fewer people buying — is hot, showing an increase in both rents and construction permits for new multi-family housing.

According to Orr’s report, the Phoenix area has already seen a 5.7-percent boost in rents over the past 12 months, and construction permits to build new multi-family housing to meet the demand are also on a strong upward trend.

After the housing crash, Phoenix-area home prices shot up from September 2011 to last summer. This year, prices leveled off and then rose somewhat. The median single-family-home price went up 5 percent from last September to this September — from $198,997 to $209,900. The average price per square foot rose 7 percent. The median townhome/condo price went up 15 percent.

Orr says the median increases happened primarily just because fewer sales are now clustered at the lower end of the market, with fewer foreclosures and short sales available. Only luxury homes above $2 million are seeing stronger-than-normal demand.

“The ultra-high and luxury market for custom homes are still retaining the best demand relative to historic data,” says Howard Lein, owner of Scottsdale-based franchise RE/MAX Excalibur Realty. The average days on market for luxury currently hover at 153 days, compared to about 142 days last year. The immigration issue seems to be affecting the housing market due to the lack of a competing work force — not enough workers to meet the demand. As predicted last year, Lein says, the shortage of labor and the increased cost have helped cause the appreciation in the luxury home market. “The increased value of Phoenix-area housing has been helped due to the lack of cheap immigrant labor.”

Luxury properties span the Valley in gated and non-gated communities, and include horse properties and golf properties. Looking at the metro Luxury market, Lein shares that the average list price is about $1.99 million, with a sales price around $1.39 million. “This shows a trade range of 5 percent off list price or 95 percent list-to-sales price ratio. Compared to last year, the average list price for luxury locally was $1.79 million, with a sales price around $1.32 million. Interestingly, the trade range was 5 percent or 95 percent list-tosales price ratio,” Lein says.

According to Lein, the $2 million to $2.999 million price bracket has seen an 18 percent increase in sales from last year, and the $3-million-and-up price bracket is up 32 percent in sales from last year. “Arizona’s climate, low property tax and more affordable quality of life are determining factors — as well as the fact that the affluent have had good gains in the stock market for the past two years,” Lein observes. “Compared to other cities in the U.S., the Phoenix metro market is affordable luxury.”

For the housing market overall, investors are unlikely to bring the increase in demand needed to boost prices. According to Orr’s report, they’ve largely lost interest in the Phoenix area, now that better bargains can be found in other parts of the country with more foreclosures. Investors accounted for only 14.4 percent of residential-property purchases in September — way down from the peak of 39.7 percent in July 2012. But Lein relates that the institutional buyers have not disposed of their rental properties. And he notes, “Lately, in Quarters 3 and 4 of 2014, we are seeing more Canadians reenter the market, and Chicago buyers are coming back to the market as well.”

“To get the market back to what we would consider normal will require a major recovery in demand from local first-time home buyers,” explains Orr, noting the last quarter of the year is rarely one in which first-time homebuyer demand takes off without some unusual stimulus.

Contrast that with the luxury home market. “Despite the fact that the overall real estate market in Phoenix appears to be a bit sluggish, it does not look like the luxury market is feeling the effect,” Lein says. “Average prices are up from last year, partly because replacement costs continue to rise and there is a growing feeling of confidence now that the elections are over. Even the mid-range homes in Scottsdale that have languished over the summer are now picking up significant traction in the past few days.”

About this section: Top

Luxury 2015

Agents Real Estate Hotch kiss Walt Danley • Cathy Sandra L. Wilken Kevin Owens •

Presented By:

market is improving and these agents are proven leaders in the

these top luxury real estate agents to provide information on

Valley. In Business Magazine recommends these agents. Please

themselves, their expertise and details relating to their business in

visit inbusinessmag.com for more information and articles on the

this Top Luxury Real Estate Agents special section. The real estate

local real estate market.

T 2015 RECIPIEN

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As part of our service to our readers, our editorial staff has invited

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Top Luxury Agents

Walt Danley

Profile

Walt Danley Realty

Danley began his real estate career in 1977 after trading rainy days in Portland, Oregon, for Arizona’s year-round sun and blue skies. He quickly discovered that his new career was a perfect fit. Not only was Danley named “Rookie of the Year” his first year in the business, he also outsold the established pros to earn the title of top company producer.

Danley has ranked in the top 1 percent of Realtors nationwide every year since. Danley has built his success on four guiding principles: integrity, knowledge of the market, understanding the needs of his clients, and old-fashioned hard work. These attributes, combined with his keen negotiating skills, have enabled Danley to log nearly $3 billion dollars in sales — a record unrivaled in Arizona’s luxury home market. In addition to his numerous accolades and sales records, Danley has been consistently recognized as a leader among those watching the industry.

He has been Arizona’s top-selling Realtor on The Wall Street Journal’s roster of most prolific agents in the nation every year since the list’s inception in 2007. He is also considered to be one of the 35 most influential people in real estate — a list that also includes Donald Trump and former Federal Reserve Chairman Ben Bernanke.

Danley began building his team in 2000 by hand-selecting real estate professionals who shared his energy, ethics and client-centric focus. That team has evolved into Walt Danley Realty, a close-knit group of real estate professionals who combine their specialized talents to provide the finest real estate services in the nation.

Name: Walt Danley Company/Broker Name: Walt Danley Realty Office Address: 6720 N. Scottsdale Rd., Suite 140 Paradise Valley, AZ 85253 Phone: (480) 991-2050 Website: www.WaltDanley.com Designations: ABR Specialty Areas: Paradise Valley, Scottsdale, Biltmore, Arcadia, Carefree

On The Market

North Scottsdale

Paradise Valley

9202 E. Red Lawrence

8389 N. 58th Pl.

Awe-inspiring views of sparkling city lights and rugged desert mountains.

Incredible outdoor living spaces make the most of the beautiful setting.

Privacy and understated elegance are found in this Cal Christiansen Mediterranean villa on a privately gated cul-de-sac. Sets the highest standard for PV.

$1,995,000

$4,995,000

Mountain Shadows/PV 5525 E. Lincoln Dr.

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Biltmore

Remodeled residence in guard-gated Mountain Shadows offers fabulous golf course and mountain views. Future resort will add amenities and the best lifestyle in PV.

2402 E. Esplanade Ln PH1

$1,295,000

$2,200,000

Panoramic city and mountain views abound from this Esplanade Place penthouse.

Sophisticated contemporary design in the heart of it all.

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Top Luxury Agents

Cathy Hotchkiss

Russ Lyon Sotheby’s International Realty Selling real estate is not only Cathy Hotchkiss’ job, it is what she loves to do. She truly understands that buying or selling a home is one of the most important decisions that her clients make, and she works as a tireless advocate for them while establishing long-term relationships built on care and trust. She has built a loyal clientele as she listens and understands what is necessary to achieve her client’s goals.

As a top producer in North Scottsdale, predominantly in DC Ranch, she provides 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. Working with both buyers and sellers, she truly believes that treating others with respect is a major factor in her success, whether clients or other professionals in the real estate business.

The reputation of Russ Lyon Sotheby’s International Realty of the highest level of service, marketing and technology present a highly unique advantage in the luxury real estate market. Combined with Cathy’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 Office Address: 8852 E. Pinnacle Peak Rd., Suite J-3 Scottsdale, AZ 85255 Phone: (480) 236-3336 Website: www.CathyHotchkiss.com Designations: REALTOR®, ABR, CDPE, E-PRO, ILHM, GRI Specialty Areas: DC Ranch, Grayhawk, North Scottsdale

On The Market

PENDING

NEW LISTING

North Scottsdale Horse Ranch

DC Ranch Camelot Villa

5 Bedrooms, 6 Baths, 7,276 sq. ft.

3 Bedroom, 3 Bath, 2,459 sq. ft.

$2,395,000

$1,125,000

NEW LISTING

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Kierland Landmark Condo

SOLD

2 Bedrooms, 2 Baths, 1,606 sq. ft.

4 Bedrooms, 4 Baths, 4,795 sq. ft.

$585,000

$1,851,000

DC Ranch

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Top Luxury Agents

Kevin Owens

Coldwell Banker Previews International Kevin Owens represents luxury buyers and sellers, combining the market knowledge of a Scottsdale native with the history and global strength of Coldwell Banker. Early in his career, Owens earned the opportunity to partner with two of Scottsdale’s renowned top-producing luxury agents. It was from these mentorships that he mastered the art of selling luxury real estate. Owens continues his momentum by being annually recognized through “Outstanding Client Service” awards and was also awarded REALTOR.com’s “Online Marketing Award of Excellence” for his distinguished Internet marketing. Owens is also a founding member of NextGen, a collaborative group of next-generation real estate professionals who focus on innovation, technology and networking to share best practices.

Recognized for his industry-leading marketing strategies, Owens combines the power of the Internet, online video showcases and international exposure with conventional time-tested marketing. Owens excels in property-specific marketing because he understands the importance of telling the story behind each unique luxury home that he represents. After all, exceptional properties deserve nothing less than exceptional representation.

When representing buyers, Owens is known for his in-depth market knowledge that only a Scottsdale native can offer. His continuing education means you will be working with a REALTOR® who is immersed in the industry and understands current market trends. Through Owens’ professional networking, he provides property possibilities beyond what is available in the MLS, often knowing about listings before they hit the market.

Owens is currently ranked No. 1 in the Coldwell Banker Scottsdale-Pinnacle Peak office, in the top 25 agents in Arizona, and in the top 6 percent of agents worldwide for sales production.

Profile Name: Kevin Owens Company/Broker Name: Coldwell Banker Previews International Office Address: 23341 N. Pima Road, Suite 135 Scottsdale, AZ 85255 Phone: (480) 217-9184 Website: www.fineAZliving.com Designations: ASP, CLHMS, CNBS, CNE, CNMS, GREEN, SFR Specialty Areas: Scottsdale, Phoenix, Paradise Valley, Arcadia, Biltmore, Desert Ridge, Carefree/Cave Creek

On The Market

Southern Cross Ranch Luxury equestrian estate Located on the “Rodeo Drive” of equestrian estates: 5-acre, 5,178-sf main house, guest house, tennis court.

See the video showcase at: YouTube.com/fineAZliving

$3,850,000 Old Spanish Hacienda 5-acre estate in North Scottsdale Luxurious gated estate with architectural details and panoramic views, 4 bedrooms, 4.5 bathrooms, 5,179-sf, guest house.

See the video showcase at: ViaDonaHacienda.com

$2,250,000

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Top Luxury Agents

Sandra L. Wilken Engel & Völkers

Sandra Wilken, owner and designated broker of Engel & Völkers Scottsdale, is considered the foremost expert in representing buyers and sellers in Arizona’s most desirable neighborhoods.

Wilken’s achievements as a real estate professional and her consistently high level of service have earned her a place in Engel & Völkers’ most prestigious client service network, known as Private Office. She is one of the few who carry this distinction with more than 39 years of experience in the Phoenix/Scottsdale markets, Wilken offers clients an elegant mix of executive insight and unmatched market knowledge that attracts buyers and sellers locally, nationally and internationally.

Wilken has worked diligently to earn the firm’s standing as Arizona’s top, boutique luxury real estate firm. She has grown the Engel & Völkers Scottsdale brand to include the most professional team of real estate advisors who specialize in the Valley’s hottest neighborhoods from the Biltmore to Desert Mountain and everything in between.

The Engel & Völkers philosophy of personal attention, competency and passion is embodied in each individual at Engel & Völkers Scottsdale. Engel & Völkers elaborate network of 550 shops in 39 countries, along with the knowledge and experience of each real estate advisor in the Scottsdale Shop allow the team to sell the right home to the right buyer, at the right price. Wilken and the company dedicate their personal time to several charitable organizations including Gabriel’s Angels and Lost Our Home Pet Foundation.

Profile Name: Sandra L. Wilken Company/Broker Name: Engel & Völkers Office Address: 8777 N. Gainey Center Dr., Suite 178 Scottsdale, AZ 85258 Phone: (480) 596-0001 Website: scottsdale.evusa.com Specialty Areas: Phoenix, Scottsdale, Paradise Valley, Gainey Ranch, DC Ranch/Silverleaf

On The Market

Morning Glory Meadows, a five-lot exquisite cul-de-sac community currently on the market in Paradise Valley, created and built by MRA Custom Homes offers the best in quality and design. Two of the homes — Villa del Prato and Maison du Coeur — embody European elegance from Italy and France. Built with the best in construction and elegant finishes hand-selected from craftsman around the world.

Romantic gardens, fountains and entertaining spaces create a timeless romantic feel throughout the properties.

Three additional home sites are designed to reflect various styles and periods of homes including a Santa Barbara hacienda, French farmhouse and an English manor. Take the opportunity to own a true work of art at Morning Glory Meadows.

$8,975,000

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DECEMBER 2014

Alling, Jacky, 30 Bean, Jay, 14 Biddle, Steve, 20 Bredin, Alice, 18 Brossart, Diane, 33 Chatham, Elizabeth S., Esq., 10 Corwin, Robb M., 19 Covert, Cheryl, 16 Crowley, Kate, 39 Dipman, Grant, 10 Danley, Walt, 60 Fierro, Stephanie, 20 Flake, Jeff, Senator, 9 Fortini, Deborah, 53 Francis, Phil, 30 Gasca, Gabe, 33

Hamer, Glenn, 22 Harris, Carla A., 29 Hayes, Suzanne, 40 Higuera, Lori A., 12 Hoffman, Dennis, 22 Hotchkiss, Cathy, 61 Jessop, Flora, 46 Jones, Darryn, 16 Kibbe, Cindy, 40 Kidder, Rick, 39 Kleijnen, Stans, 11 Kogon, Kory, 29 Lavinsky, Deborah, 48 Lein, Howard, 56 Meijenfeldt, Hugo G. von, Consul General of the Netherlands, 11 Merrill, Adam, 29 Mineer, Anna, 39

Orr, Mike, 56 Owens, Kevin, 63 Philpott, Marcia, 28 Pierce, Tom, 14 Prendergast, Jim, 16 Quan, Changqin, 14 Ren, Fuji, 14 Rinne, Leena, 29 Robson, Doug, 38 Rodriguez, Roberto Hernandez, Consul General of Mexico, 10 Roga, Alan, 16 Ross, Howard, 66 Rounds, Jim, 22 Sampler, Jeffrey L., 29 Sanger, Tom, 12 Serrano, Anthony, 40 Shang, Jen, 30

Shufeldt, John, 16 Simon, Joanie, 39 Steltzner, Adam, 33 Tabler, Mark, 28 Thompson, Barbara, 11 Tollefson, Richard, 30 Tunis, Bob, 41 Wahlberg, Mike, 39 Wilken, Sandra L., 63 Wolden, Dorothy, 47 Yu, Kevin, 14 Zee, Siebe K. J. van der, Honorary Consul of the Netherlands, 11 Zito, Ed, 28 Zylstra, Steve, 22

Aerium, 12 Affinity Technology, 15 Alerus Financial, 13 Alliance Bank of Arizona, 28, 68 American Express OPEN, 18 Angry Crab Shack, 40 Arizona Association for Economic Development, 34 Arizona Captive Insurance Association, 28 Arizona Chamber of Commerce and Industry, 22, 34 Arizona Commerce Authority, 33 Arizona Community Foundation, 30 Arizona Diamondbacks, 55 Arizona Forward, 33 Arizona Hispanic Chamber of Commerce, 34 Arizona Small Business Association, 35 Arizona State University, 18, 22, 56 Arizona Technology Council, 22, 33 Avondale, City of, 16 Bank of America, 30 BeBop Sensors, Inc., 14 BellaBody Pilates, LLC, 48 Café Zupas, 38 Cahava Springs, 12 Cardtronics, 14 Carmella’s Savory Fare, 50 CBIZ, 32 Chandler Chamber of Commerce, 35 Chipotle Mexican Grill, 38 Clarendon Hotel, The, 38 ClickChick Photography, 51 Coldwell Banker Previews International, 63 Comerica Bank, 39 Conquest Training Systems, Inc., 6 Consulate General of Mexico in Phoenix, 10 Consulate General of the Netherlands, 11 Cook Ross, Inc., 66

CopperPoint, 2 Cox Business, 58 Davis Miles McGuire, PLLC, 10 Desert Schools Federal Credit Union, 21 Driver Provider, The, 37 Economic Club of Phoenix, 34 El Palacio Restaurant and Cantina, 40 Eller College of Management, 18 Elliott D. Pollack and Company, 22 Engel & Völkers, 63 Feeding Matters, 42 Fennemore Craig, 12 Frank Lloyd Wright School of Architecture, 12 FreshLime, 14 Frutkin Law Firm, The, PLC, 20 Gallo Blanco, 38 Gangplank, 35 Glendale Convention and Visitors Bureau, 56 Global Dental Science, 11 GoDaddy, 11 Grand Canyon University, 49 Greater Phoenix Black Chamber of Commerce, 35 Healthiest You, 16 Honey Bear’s BBQ, 40 Hula’s Modern Tiki, 40 IDS Technology Marketing, 33 Indiana University Lilly Family School of Philanthropy, 30 Jonilynn Designs, 49 Kabbage, 11 KTAR News-Talk 92.3, 7 L. William Seidman Research Institute, 22 Landmark Homes USA, 12 Lincoln Motor Company, 36 Littler, 20 LocalWork.com, 37 Lora Moon Styling, 52 Mastro’s City Hall Steakhouse, 41 Mastro’s Ocean Club, 41 Mastro’s Steakhouse, 41

Mayer Hoffman McCann PC, 32 MeMD, 16 Meritex Chandler, 12 Metro Commercial Properties, 12 Microsoft, 35 Moss Adams, 12 National Association of Women Business Owners – Phoenix, 35, 47 Netherlands Foreign Investment Agency, 11 North Phoenix Chamber of Commerce, 34 Nussbaum Gillis & Dinner PC, 42 Pakis Center for Business Philanthropy, 30 PetSmart, Inc., 30 Phoenix Children’s Hospital, 3 Phoenix Convention Center, 56 Phoenix New Times, 39 Phoenix Philanthropy Group, The, 21, 30 Pinnacle Bank, 64 Pizza Studio, 38 Pride Group, LLC, 19 Quarles & Brady LLP, 11 RE/MAX Excalibur Realty, 56

Ritz-Carlton Phoenix, The, 10 Russ Lyon Sotheby’s International Realty, 61 Scottsdale Area Chamber of Commerce, 34, 39 Signs by Tomorrow Scottsdale, 42 Snell & Wilmer, 5 Social Venture Partners, 11 SRP, 28, 31 Stat Doctors, 16 Surprise Regional Chamber of Commerce, 34 Target Commercial Interiors, 67 Taylor & Francis, 14 Tempe Chamber of Commerce, 35 University of Arizona, 18 University of Oregon, 30 Vault, The, 53 Venue, 39 Vermillion Photography, 15 Vi at Silverstone, 42 Vintage 95, 39 W. P. Carey School of Business, 18, 22, 56 Walt Danley Realty, 60 Waste Management Phoenix Open, 17 WESTMARC, 34

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

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Roundtable

A CANDID FORUM

Hidden Bias Impacts Talent Management There are ways to identify and navigate the unconscious bias that is hidden in all of us

by Howard Ross When we hear the word “bias,” many of us often immediately jump to racial, gender, age or cultural assumptions — which do apply. But what about the hiring manager who is more productive in mornings, therefore unknowingly favors interviewees scheduled before noon?

Consider Martin, who is down to the last three candidates and their interviews have been scheduled on the same day. As the 9 a.m. interview begins, Martin notices, “There is something about this young man that I like.” The interviewee seems a little nervous, so Martin calms him down and gives him a second chance to answer the first question. The interview goes great.

The second occurs over lunch. Martin runs out of a meeting and meets the candidate and decides to take her to the cafeteria, but he still has that last contentious client meeting on his mind and knows that he is going to have to hurry to call them back after lunch. Martin finds himself distracted and rushed. The third candidate is across country, so that one is “Skyped.” The connection isn’t the greatest and the session is frustrating.

Are these “equitable” interviews? Of course not. Despite the fact that Martin may want to interview all three candidates “fairly,” there are any number of factors here that have an unconscious impact on his assessment of the candidates and will undoubtedly influence his choice.

Unconscious bias impacts every phase of talent management and cannot be fully eliminated from our reactions to people.

However, it is possible to mitigate the impact of bias by

looking at several aspects of how we manage talent. By creating conscious structures and processes, we can create more consistency in the process and be able to make better selections. These interventions occur generally in four ways.

Providing education about unconscious bias, especially to people managers. Education in and of itself may not be able to dramatically reduce bias, but it can encourage people to engage in different behaviors that just might accomplish that.

Priming the manager to be more aware by discussing bias just before a talent management interaction. Review the conversation about unconscious bias before any talent management process begins.

Creating structures and systems that can help bring more consciousness to the talent management process.

Measure the results of your processes and track those measurements. Are certain people consistently more successful than others? If so, there is a reason! Worry more about finding that reason and less about placing blame, and your talent management system will become more inclusive and conscious!

Structures and Systems …

Howard Ross, author of Everyday Bias and ReInventing Diversity, is founder and chief learning officer of Cook Ross, Inc. (www.cookross.com), a corporate consulting firm.

He is one of the nation’s leading diversity training consultants, with more than 30 years’ experience, and is a nationally recognized expert on diversity, leadership and organizational change.

… when recruiting:

… when hiring:

• Make sure job descriptions demonstrate a

• Watch for differences in the way

balance of gender or cultural patterns.

• Be sure the way the job or the personal qualities are described doesn’t limit interest to some people rather than others.

• Ensure as much consistency as possible in interpersonal interactions.

• Include a diversity of people in the recruiting process. … when interviewing: • Remove as many identifiers (such as name and gender) as possible in the early stages of the recruitment process.

Studies have shown that people can be strongly influenced by various identifiers.

• Include a diversity of people in the interviewing process.

• Create as much consistency as possible

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reference letters are written. They can be an enormous source of bias.

• Watch out for your own comfort level with certain personality types. “Fit” is important, but often our bandwidth is too narrow.

• Use diverse panels for hiring recommendations, and watch out for groupthink on the panel. … when mentoring: • Be sure to communicate clearly the purpose of mentoring and its structure.

• Consider creating a uniform mentoring process across the board instead of specialized mentoring for certain groups. In this way, they can

around the interview — where and

be compared “apples to apples” in

when it occurs, what gets asked and

terms of the opportunities each

who is evaluating.

are getting.

… when reviewing performance: • Beware of numbered processes (e.g., 1-5), which create a subjective “quantified” look.

Rely more on feedback given in conversation.

• Be careful to observe rater biases relating to current projects or clients. Does the employee get more credit because the project he or she was working on is more important, more recent or more urgent?

• Watch for places where you might be measuring against personal standards as opposed to measuring against success. … when developing and promoting talent: • Look for patterns of awareness about employees. Which employees are “known” by the organization’s leadership? Which are unknown?

• Make sure there is a written development plan for every employee, and routinely evaluate and compare those plans for patterns of differential treatment.

DIVERSE ARIZONA? Black or African American (4.6%); American Indian and Alaska Native (5.3%); Asian (3.2%); Hispanic or Latino (30.3%); White (56.7%) — according to the 2013 Census.

People in the photo: Ryan Norris, TCC – Associate, Paul Tuchin, TCC – Vice President, Bo Larson, TCC – Development Manager, Ericka LeMaster - SVP, Commercial Lending, Cullen Mahoney, TCC – Associate, Cathy Thuringer, TCC – Principal, David Martens, Marwest (ARTIS REIT representative),

Trammell Crow/ARTIS REIT

Financed $11.6 million Park Lucero – a 211,000 sf multi-tenant industrial park

Where Experience Meets Opportunity When the leadership team of Trammell Crow/ARTIS REIT needed to secure $11.6 million to finance Park Lucero industrial park, they called on a strategic partner who shares their passion for performance. That partner was Alliance Bank’s Ericka LeMaster, one of the valley’s most respected commercial real estate lenders.

Timing matters. No bank is better poised to act quickly and think strategically than the state’s largest locally-owned and headquartered business bank. Put us to the test. Call Ericka LeMaster, SVP, Commercial Real Estate, and experience the Alliance difference.

602.386.5500 AllianceBankofArizona.com A division of Western Alliance Bank. Member FDIC. 09/14