DEC. 2015
Special Section: The Valley's Top Luxury Real Estate Agents
Creating Keeping
Business All in the Family The War for
Talent
Nonprofits:
Fundraising to Success
THIS ISSUE Scottsdale Area Chamber of Commerce National Association of Women Business Owners – Phoenix
Jobs
'Simple' Solution for Our Economic Success
$4.95 INBUSINESSMAG.COM
WHAT DOES
$100 MILLION
IN CHARITABLE GIVING FEEL LIKE?
ONE VICTORY AT A TIME. TIME AFTER TIME. SUPPORTING THE VALLEY OF THE SUN THROUGH SPORTS is just one of the many missions of The Thunderbirds, hosts of the Waste Management Phoenix Open. Like Special Olympics Arizona. The First Tee of Phoenix. Miracle League of Arizona. And countless others. While the historic milestone of $100 million in charitable giving over 80 years is now a reality, the true impact is expressed one story at a time. The Thunderbirds would like to thank all of our fans and sponsors for your continued support of the Waste Management Phoenix Open. For more Arizona success stories, visit www.thunderbirdscharities.org. Roxanne, Special Olympics Arizona Athlete Dan Mahoney, Thunderbird
February 1–7, 2016 | TPC Scottsdale | wmphoenixopen.com
Out In Front. When Arizona Snowbowl needed a lift, we said “how high?”
“Arizona Snowbowl isn’t your typical business — and Alliance isn’t your typical bank. They’ve taken the time to understand the needs of a seasonal business like ours and have been a catalyst in growing Snowbowl.” – Eric Borowsky, Managing Partner, Arizona Snowbowl
602.952.5400
AllianceBankofArizona.com
A division of Western Alliance Bank. Member FDIC.
DECEMBER 2015
COVER STORY
20
Creating Jobs: ‘Simple’ Solution for Our Economic Success”
With input from high-growth companies, hiring professionals, and education and economic development leaders, In Business Magazine editor RaeAnne Marsh explores some of the many forces impacting business development and job growth. FEATURE
26
PARTNER SECTIONS WINTER 2015
SCOTTSDALECHAMBER.COM
MEMBER COMMUNIQUÉ
Message from the CEO Greetings! I am Mark Hiegel, your new chamber president and CEO.
What Is Fair Competition in the War for Talent?
Employee-poaching can be an effective tactic in the fight to stay competitive — but James Pooley discusses the need of employers to be careful to keep new hires from bringing dangerous intellectual property secrets with them.
By way of introduction, let me tell you a little about myself. Most recently, I served as director of marketing and business development for Greenberg Traurig, an international law firm based in Phoenix. Before that, I was managing partner at R&R Partners, an international marketing agency with an office here in the Valley. And before that, I was a partner at my own advertising agency, Lavidge Hiegel Communications, also located in Phoenix. Philanthropy is something near and dear to my heart. I’ve served as national communications manager for Make-A-Wish America. I’ve also taken active roles in more than 20 civic and philanthropic boards. Needless to say, there’s a theme here — I’m at my best communicating on the behalf of others. In my intro, I used the words “your new chamber president.” I don’t use that pronoun lightly. The Scottsdale Area Chamber of Commerce is your chamber — we exist for you; we are here to serve you; we are here to advocate on your behalf. There’s that theme again.
Mark Hiegel was appointed president and CEO of Scottsdale Area Chamber on Oct. 1, 2015. Previously, he served in a number of executive roles throughout the Valley, most recently as marketing director at the law firmof Greenberg Traurig. He has also been noted for his service to more than 20 charitable organizations, including MakeA-Wish America.
As an advocacy organization, the chamber supports issues that foster a robust business community and improve our quality of life. That is why we supported the bond election and why we are celebrating that voters approved Bond Questions 5 and 6 giving Scottsdale the funds it needs to improve our streets and support our fire department. The issue of raising taxes is always a complicated one. The chamber’s board of directors studied the bond issues for a long time before we announced our support. Scottsdale is strong; however, we do not have the financial resources to meet all of our needs without a bond. We believe the bonds are good for Scottsdale and that our business community will see substantial positive impacts.
DEPARTMENTS
While not all the bond questions were approved by voters, you have our guarantee that we, your chamber of commerce, will continue to promote a vibrant business community and ensure the quality of life in our community. Lastly, I hope to meet as many of you, our members, as I can. I want to let you know personally how passionate I am about my role here, and how our incredible staff and I are working hard serve you and your business.
Sincerely,
Mark Hiegel President & CEO Scottsdale Area Chamber of Commerce
SCOTTSDALE@WORK - 1
37
Scottsdale Area Chamber of Commerce
Celebrating 30 years of serving the women business owners of Phoenix
Winter 2015 • nawbophx.org
Message from the President 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. We host networking and education events throughout the valley each month, open to both members and guests. Check out our calendar at NAWBOphx.org and join us! 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
As president of NAWBO Phoenix and regional center director for the Maricopa Small Business Development Center, not to mention all my personal roles, I’m busy. No busier than you are. And this is certainly a busy time of year — wrapping up projects (and gifts!), giving and attending numerous holiday gatherings, rushing to get it all done by December 25 or December 31. And there are three more tasks you need to complete before year end. But don’t worry; I promise, all three can take less than 30 minutes. Celebrate your successes — both personally and professionally. Did you start or stick with your exercise program? Hire great team members (I did this!). Grow your business by 20 percent (or even 5 percent)? Jot down at least five things that you are proud to have accomplished this year. (10 minutes maximum) Visualize what’s next — but don’t worry about planning, yet! When you reflect on your success, what do you want to make sure you have more of in 2016? More time for business building? Taking more time for yourself (this is mine)? Supporting a worthy cause? The next couple of weeks may be too hectic to revisit your business plan or tweak your marketing plan, but do schedule a time in January to review this year and establish quantifiable objectives for 2016 (if you haven’t already done so). (10 minutes maximum) Express your gratitude — and include your beloved clients. Of course you appreciate their business, but did you learn some valuable lessons from working with them that are perhaps even more valuable? I sure have! Let them know the impact these important people have had on you. The best way — send a hand-written note for your holiday greetings. Second best — pick up the phone and call them. (10 minutes minimum) One more thing: Check out NAWBO (www.nawbophx.org) — the only national organization that is dedicated to serving the needs of women business owners. We have warm and inviting events and helpful resources, and are strong advocates for issues affecting business owners. And we aren’t just for women; men are most welcome!
Nancy Sanders 2015-2016 President NAWBO Phoenix Chapter Maricopa Small Business Development Center Owner 602-476-4509 nancy@galaxyconsultingservices.com Years in Business: Join NAWBO:
Nancy
1
nawbophx.org
45
20 2008
Wishing you every blessing,
NAWBO NEWS
National Association of Women Business Owners – Phoenix
SPECIAL SECTION
9
Guest Editor
Luxury
2016
Real Estate Agents Walt Danley Kevin Owens
• •
Cathy Hotchkiss Sandra L. Wilken
Presented By:
2016 RECIPIENT
53
Top Luxury Real Estate Agents
Our picks for the best of the best in luxury home sales for 2016
DEC. 20 1 5
4
INBUSINESSMAG.COM
Legal
I.R.S. is rumored to be slightly backing off proposed attack on family business.
27
Books
New releases give fresh insights on business thinking.
28
Nonprofit
Knowing why, when and how to engage fundraising consultants can guide a nonprofit’s future success.
34
Assets
Chris Camacho, president and CEO of Greater Phoenix Economic Council, introduces the “Job Creation” issue.
2016 Full-Size Chevy Tahoe PLUS: In the electronic age, paper notebooks still have their place.
10
36
Feedback
Noted business leaders David Racich, Hamid Shojaee and Katee Van Horn respond to In Business Magazine’s burning business question of the month.
11
Briefs
“Improve Internal Operations,” “CleanCloud App for Dry Cleaners,” “Uber Does Events,” “Arizona Lottery Is Giving Back,” “Clear Advantages in Dust Suppression,” “Entertainment Odyssey,” “Spec Office in North Phoenix,” “Luxury Condos Rise in Phoenix,” “Local Icon Enhances Lounge Experience at Sky Harbor” and “Holiday Etiquette, HR Style”
13
14
Technology
“Benefits and Challenges of BYOD”
16
Power Lunch
Ocotillo PLUS: When time matters, the solution is grabbing a quick-and-to-the-point lunch.
66
Roundtable
A success “crisis” is beginning to show its affect on the workforce as up-and-coming generations discard older ideas of motivation.
ON THE AGENDA
By the Numbers
Study gives Metro Phoenix a B- for small-business friendliness.
Top
18
Healthcare
31
Spotlight
StartupConnect AZ Conference – Arizona Technology Council ‘The Drought in Arizona. What’s Next?’ – Tempe Chamber of Commerce
32
Calendar
Business events throughout the Valley
“Classification for Better Care,” “Critical Rehab Advances,” “Healthcare Services Platform Consortium Aims for Interoperability” and “Specialty Obstetrics Focuses on Diabetes”
Shrinking workforce: As time goes on, there will be fewer people to fill jobs. The numbers: 85 million baby boomers, 65 million GenX-ers, 47 million millennials.
Managing Your Fleet BLINDFOLDED?
Gain Visibility with: GPS INSIGHT TRK#1
78mph William Barker
Fleet Intelligence for Your Business Vehicle & Asset Tracking Solution 877-466-6577
a 866-477-4321 l gpsinsight.com gpsinsight.com
Dec. 2015 In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.
GROWING YOUR BUSINESS? We’re here for you.
PARTNER ORGANIZATIONS Rick Murray, CEO Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com
When you’re looking for a commercial real estate loan, choose a local lender with a personalized approach. • No application fees or prepayment penalties 1 • Purchase or refinance up to $5,000,000 2 • Owner or non-owner-occupied 3
Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org
• Competitive fixed rates • Terms of 5, 10 or 15 years • Amortizations of 15 or 20 years
Doug Bruhnke, Founder & President Global Chamber® (480) 595-5000 www.globalchamber.org
Call to speak with a business relationship manager. 602-336-6721 | www.desertschools.org/business Federally Insured by
Nancy Sanders, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org
Equal Housing Lender
Mark Hiegel, President & CEO Scottsdale Area Chamber of Commerce (480) 355-2700 www.scottsdalechamber.com
Open to sole proprietorships, partnerships (including LLPs), LLCs, corporations, trusts and non-profit entities that have been in existence for three years. Start-up and business acquisition transactions are ineligible. Property must be located in Arizona. First or second lien position. Subject to credit approval. 1 Approximate 1% origination fee. 2 Minimum loan amount $250,000; maximum 80% loan-to-value. 3 Owner-occupied applies if the business member or affiliate occupies not less than 51% of the usable, net rentable space; non-owner-occupied applies if the tenant occupies 51% or greater of the usable, net rentable space.
Connecting Your Business with New Valley Residents! You could be losing 18% of your customers each year, just because they move.
Free Setup!ue
$95 val
ion just ment this ad
Our Town’s Direct Mail New Mover Program • Exclusivity in your industry! • Pinpoint your Zip Code. • Electronic Tracking for ROI and Follow Up
6
DEC. 2015
Mary Ann Miller, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities. The members of these and other Associate Partner Organizations receive a subscription to In Business Magazine each month. For more information on becoming an Associate Partner, please contact our publisher at info@inbusinessmag.com.
ASSOCIATE PARTNERS Ahwatukee Foothills Chamber of Commerce ahwatukeechamber.com Arizona Chamber of Commerce & Industry azchamber.com Arizona Hispanic Chamber of Commerce azhcc.com The Black Chamber of Arizona phoenixblackchamber.com Chandler Chamber of Commerce chandlerchamber.com Economic Club of Phoenix econclubphx.org Glendale Chamber of Commerce glendaleazchamber.org Greater Phoenix Chamber of Commerce phoenixchamber.com Greater Phoenix Gay & Lesbian Chamber of Commerce gpglcc.org Mesa Chamber of Commerce mesachamber.org North Phoenix Chamber of Commerce northphoenixchamber.com Peoria Chamber of Commerce peoriachamber.com
(480) 678-1366 OurTownAZ.com
Phoenix Metro Chamber of Commerce phoenixmetrochamber.com Surprise Regional Chamber of Commerce surpriseregionalchamber.com WESTMARC westmarc.org
INBUSINESSMAG.COM
CopperPoint Mutual is committed to providing workers compensation insurance expertise along with great customer service. Financially strong and service oriented, CopperPoint delivers Peace of Mind. Put CopperPoint to work for you. copperpoint.com 602.631.2300 | 800.231.1363
Dec. 2015
VOL. 6, NO. 11
Publisher Rick McCartney
Editor RaeAnne Marsh
Art Director Benjamin Little
Contributing Writers Susan Ford Collins
Mike Hunter Julie Iacobelli Whitney Sedwick Meister James Pooley Ryan Treisman ADVERTISING
Operations Louise Ferrari
Business Development Louise Ferrari
Craig Jeffries Steve Kulick Maria Mabek Sara May Kelly Richards Cami Shore Brandon Short Events Amy Corben More: Visit your one-stop resource for everything business at www.inbusinessmag.com. For a full monthly calendar of business-related events, please visit our website. Inform Us: Send press releases and your editorial ideas to editor@inbusinessmag.com.
THE MORE YOU KNOW.
President & CEO Rick McCartney
Editorial Director RaeAnne Marsh
Senior Art Director Benjamin Little
Free business workshops. Knowledge is power.
Financial Manager Donna C. Mitchell, CPA
And nowhere is that more true than in the business world.
Office Manager Brittany Longfield
Accounting Manager Todd Juhl Corporate Offices 4455 E. Camelback Road Building C, Suite 135 Phoenix, AZ 85018 T: (480) 588-9505 F: (480) 584-3751 info@inmediacompany.com www.inmediacompany.com
That’s why SRP offers free periodic workshops on a variety of topics — everything from marketing and raising capital to social media strategy and cyber security. We focus on topics suggested by people like you, so ideas on future workshops are greatly appreciated. To sign up for workshops and view highlights from past workshops, visit srpbizresource.com.
8
DEC. 2015
Vol. 6, No. 11. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 4455 E. Camelback Road, Building C, Suite 135, Phoenix, AZ 85018 or visit inbusinessmag.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You may send to editor@inbusinessmag.com or mail to the address above. All letters sent to In Business Magazine will be treated as unconditionally assigned for publication, copyright purposes and use in any publication, website or brochure. InMedia accepts no responsibility for unsolicited manuscripts, photographs or other artwork. Submissions will not be returned unless accompanied by a self-addressed, stamped envelope. InMedia Company, LLC reserves the right to refuse certain advertising and is not liable for advertisers’ claims and/or errors. The opinions expressed herein are exclusively those of the writers and do not necessarily reflect the position of InMedia. InMedia Company considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective investors consult their attorney and/ or financial professional. © 2015 InMedia Company, LLC. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission by the publisher.
INBUSINESSMAG.COM
CHRIS CAMACHO, GREATER PHOENIX ECONOMIC COUNCIL
Job Creation
A proven leader with more than 10 years in executive management roles, Chris Camacho serves as the president and CEO at one of the longest-standing public-private partnerships for economic development across the country. During his tenure, GPEC has led the attraction of more than 175 companies, creating 26,688 jobs and $2.2 billion in capital investment. As chief executive of GPEC, Camacho oversees the domestic and international business development and market strategies and serves as the organization’s executive leader in community interactions.
New jobs are bolstering the economy in the Greater Phoenix area, and it’s not just the number of people employed but the types of jobs being created. Even as we diversify our economy with a broader array of industries, the jobs within the workplace are evolving due to changes in both technology and demographics. Within the past five to ten years, we have seen a significant shift in economic development, from a cost-based approach to one that transcends cost and focuses holistically on market value. With the array of post-secondary institutions in the market — featuring the largest public university and largest community college system — the Greater Phoenix region offers companies looking to enter the market a diverse, skilled workforce. A recent announcement from Forbes magazine named Arizona No. 1 for the fastest projected job growth in the nation over the next three years, and we know at the Greater Phoenix Economic Council that we need to be producing the right kind of jobs that help build and sustain a truly robust economic region. The collaboration that exists between our business community and P-20 education institutions is instrumental to leading the development of the talent that will continue to make the Greater Phoenix region a destination for all industries to grow and flourish. In spite of the tongue-in-cheek title of this issue’s cover story — “Job Creation: The ‘Simple’ Solution for Our Economic Success” — there are many forces impacting business development and job growth. These include changes evolving in the workplace as to what functions are performed by people and what soft skills are gaining attention. High-growth companies share their experience and perspective on the current hiring landscape with In Business Magazine editor RaeAnne Marsh, who also spoke with hiring professionals and education and economic development leaders. Susan Ford Collins takes up the issue of engaging the workforce beyond the traditional definition of “success,” bringing to the “Roundtable” forum an exploration of the emerging dynamic of what constitutes motivation for the up-and-coming workforce. “Engagement” is also the subject of the HR article, in which, working with another definition of the word, James Pooley addresses potential intellectual property issues a company may face with new hires that come over from a competitor’s company. Changes may be on the horizon in IRS regulations on transferring a family business to the next generation, as this issue’s “Legal” feature explains. And “Technology” this month looks at the trend of BYOD (Bring Your Own Device) by employees operating in the company workplace. In Business Magazine continues to provide the business community strong, relevant information to serve business decision makers at every level. I’m pleased to be this month’s Guest Editor and help bring you this issue. Enjoy the read. Sincerely,
Chris Camacho President and Chief Executive Officer Greater Phoenix Economic Council
Job Fix We all know that jobs are the fuel that powers the economy.
We went to Chris Camacho of GPEC to ask him to lead this issue of
In this issue, our editor, RaeAnne Marsh, took a look at how we
In Business Magazine. His expertise and years of experience at
are faring when it comes to creating jobs and what the areas and
GPEC culminate with job growth strategies. GPEC, through Chris’
industries are doing to be “creative” in creating jobs. Through
leadership, continues to innovate in this area. We thank him for
schools; workforce development organizations; economic
working with us on the subject of job creation and providing us with
development groups; and federal, state and local governments,
resources and insight into what is being done to make Arizona a
the incentives and tech-influenced changes that are behind job
strong contender in that important piece to bettering our economic
creation are having a profound effect.
picture.
Let us know what you think of this issue of In Business Magazine. Email our publisher at feedback@inbusinessmag.com.
—Rick McCartney, Publisher
CONNECT WITH US: Story Ideas/PR: editor@ inbusinessmag.com Business Events/ Connections: businessevents@ inbusinessmag.com Marketing/Exposure: advertise@ inbusinessmag.com Visit us online at www.inbusinessmag.com
9
DEC. 20 1 5
INBUSINESSMAG.COM
VALLEY LEADERS SOUND OFF
Q:
FEEDBACK QUESTION: Let us know what you want to know from the Valley’s top business leaders. editor@inbusinessmag.com
For all past Feedbacks go online to inbusinessmag.com and see what Valley executives think on various business topics.
DEC. 20 1 5
10
INBUSINESSMAG.COM
It has always been clear that jobs fix the economy. What strategies have you employed company-wide that have resulted in job creation?
DAVID RACICH
HAMID SHOJAEE
KATEE VAN HORN
Founder and Chief Executive Officer Brokers Alliance Sectors: Financial Services and Technology
Chief Executive Officer Pure Chat Sector: Technology
VP People Operations GoDaddy Sector: Technology
Our strategy for job creation is pretty simple. The core of our business is building a great product for our customers. We’re helping small businesses turn website visitors into customers with our live chat software. Generating leads and driving sales is a critical challenge for small teams, and we’re thrilled to provide a ridiculously easy way to help solve that problem. We acquired thousands of users, which helped us raise a $1.5-million seed round of funding. That investment has helped us hire a team of 12 and fuel even more growth. We’re investing heavily in building the best product we can for our market. Customer-driven development is really key. Building a product that’s not only easy to use but also very affordable for small business has contributed to our growth. When a customer closes a deal worth hundreds or thousands in sales from our product, they share that great experience with their communities. When our product delivers results for our customers, not only are they growing but we’re also able to continue to hire.
Clearly defining our mission — to radically shift the global economy toward small businesses by empowering people to easily start, confidently grow and successfully run their own ventures — has led to growth. We are all focused on helping small-business owners succeed. We are all aligned to this goal. We empower our colleagues to support our customers, and, by giving our teams the permission to act independently, they are that much more motivated to serve our customers, which in turn grows our business — and when we grow, we hire more people to join the team. Another strategic move is establishing a culture by identifying values and communicating them to our teams. We incorporate our GoDaddy values into everything we do and are attracting colleagues who live those values, which are to be extraordinary, work fearlessly, live passionately, join forces and own outcomes. This aligns our teams, so it’s more than what we do or accomplish, but also how we get it done. We think it helps people do their best work, which in turns grows our business and allows us to create new positions.
In 2015 I made a decision for our family of companies to bring all employees home here, to Arizona. Several of our companies, like Brokers Alliance and Launch Financial, provide services across the United States, in all 50 states, and at one point had 40 remote employees. Through the renewed vision of local employees, and having expanded our campus into a 24,000-square-foot facility here, we have successfully brought 85 percent of our employees back to Arizona. We plan to continue our campus expansion into 2016, providing space for 85 new employees. Additionally, we have dedicated ourselves to pursuing local alliances. For example, Outlook Advisors partnered with both Rio Salado Community College and Arizona State University to build in both accredited and non-accredited course work to help students achieve a career path before they even graduate, and WiredUp Installation continues to acquire local and out-of-state technology companies, relocating talented people to Arizona. I believe the culture of local residents in an exciting, national workplace provides the best that an Arizona business has to offer. Brokers Alliance brokersalliance.com David Racich is founder and CEO of WiredUp Installation, Outlook Advisors and Launch Financial in addition to Brokers Alliance. He began his career as an entrepreneur during his freshman year in college. Racich earned a Bachelor of Science in Network and Global Communications Management with a focus in Business Entrepreneurship and Electrical Engineering here in Arizona.
Pure Chat purechat.com Hamid Shojaee is addicted to the high of making products that people love to use. Sometimes, the users even pay for them, which is how he funds more great products. Along the way, he’s founded a couple of companies, which include Pure Chat and Axosoft, and has helped Arizona’s tech scene create its voice with AZTechBeat.com.
GoDaddy GoDaddy.com Katee Van Horn is VP of People Operations with GoDaddy, the world’s largest technology provider dedicated to small businesses. GoDaddy has grown to serve more than 13 million customers in 37 countries and 17 languages. Now employing more than 4,500 people — a majority of them here in Arizona — Scottsdale-based GoDaddy has 14 locations around the world, including Phoenix, Gilbert and Tempe.
Sign up for the monthly In Business Magazine eNewsletter at www.inbusinessmag.com. Look for survey questions and other research on our business community.
QUICK AND TO THE POINT
BYTES
BY MIKE HUNTER
Improve Internal Operations Composer 2 makes building smart apps around business data fast, easy and possible for a broader audience. AppGyver recently launched Composer 2, a visual platform for quickly creating and publishing mobile and Web apps around business data. For the first time, both developers and business professionals can create secure applications that help enterprises use mobile to improve internal operations without facing coding, long production times or heavy financial commitments. appgyver.com
CleanCloud App for Dry Cleaners A new smartphone app for iPhone and Android has been launched that is transforming the dry cleaning industry. CleanCloud allows any dry cleaner, anywhere in the world, to reach millions of customers via mobile device. Customers can now book, pay for and track delivery orders in less than 30 seconds through CleanCloud. The new app is revolutionizing traditionally paper-based industry for mom-and-pop stores and large chains alike. cleancloudapp.com
Uber Does Events
Clear Advantages in Dust Suppression
“If you start with something clean, you end with something clean.” This, says Soilworks founder and owner Chad Falkenberg, is the advantage of his company’s latest dust suppressant product, Durasoil. Producing the purest, greenest and only synthetic dust suppression fluid that remains active over long periods of time, Durasoil recently earned Soilworks its second U.S. patent. Until now, petroleum-based dust suppressants and synthetic fluid derivatives lacked durability and offered short-term effectiveness when they were implemented. With the new Durasoil formula, Soilworks has developed a synthetic compound that offers long-term durability — a virtually non-toxic composition that is capable of reducing the generation of airborne and suspended particulate matter for long periods of time. Approached by the Army Corps of Engineers, Falkenberg applied gas-to-liquid technology — which, he says, always intrigued him — to develop this solution that harnesses the natural gas off-product of the oil industry’s refining processes. The process enables production of extremely pure synthetic fluids that are virtually free of metals, nitrogen and other contaminants.
For the first time, hosts can buy rides for their guests. With UberEVENTS, hosts control how, when and where their guests ride — so the only thing their guests have to worry about is having the best time. Get a customized guest pass with date, time and promo code. Guests enter the code and request a ride. The host decides how much he will pay. The UberX option is up to 40-percent cheaper than taxis and significantly less than shuttles, valets or parking. Uber has a ride for every
Created with non-petroleum properties, Durasoil is designed to control dust in a variety of worksites by “wetting out” soil. The outcome is a re-workable solution that coats and clusters dust particles and weighs them down. Application extends to dust control and soil stabilization for commercial, industrial and military markets. On helicopter landing pads in dusty, sandy environments such as the Middle East, for instance, Durasoil creates a surface that does not have the brittle crust of other products that breaks up and creates hazardous flying debris. And because the product does not contain water, it can be used in environments that range from the freezing conditions of the arctic to the extreme hot temperatures of underground mining. The company is based in Scottsdale, and Falkenberg cites the advantage of being in a hot and arid region because “it gives us year-round opportunities to work on the product.” It’s also a good distribution point, he notes, with rail and —RaeAnne Marsh logistics capabilities. Soilworks soilworks.com
budget and every occasion. uber.com/events
VISUALIZE
Arizona Lottery Is Giving Back This time of year, many businesses are looking for places to give and to support the community. The Arizona Lottery has put together a campaign that showcases some of the giving that monies from the Arizona Lottery go to. It raised more than $3 billion for Arizona and programs that matter. Proceeds from Arizona Lottery ticket sales go to programs and organizations in four specific areas of focus — education, health and human services, environment, and economic development. arizonalottery.com/en/giving-back/how-the-money-helps
A report from the World Health Organization as far back as 1999 chronicled the health hazards of uncontrolled dust in not just the high levels commonly associated with occupational lung diseases but even much lower levels being associated with cancer, asthma, allergic alveolitis and irritation, as well as a whole range of non-respiratory illnesses.
11
DEC. 20 1 5
INBUSINESSMAG.COM
QUICK AND TO THE POINT
GET REAL
BY RAEANNE MARSH
Entertainment Odyssey The OdySea in the Desert entertainment complex at the Salt River Pima Maricopa Indian Community in Scottsdale will be adding a 78,000-square-foot open marketplace comprised of “themed” restaurants and individual retail offerings all centered in a courtyard with live stage entertainment. Slated to open July 2016, The Shops is part of the next phase whose other component is OdySea Aquarium, which will be the largest aquarium in the Southwest — all part of developer Amram Knishinsky’s planned 35-acre entertainment attraction that currently houses Butterfly Wonderland and OdySea Mirror Maze. odyseaaquarium.com
Spec Office in North Phoenix Norterra West — the first speculative office development to break ground within the City of Phoenix in the last five years — is taking shape on a 23.3-acre land site situated alongside the northbound Interstate 17 between the Happy Valley and Jomax exits in north Phoenix. Comprising two three-story Class-A office buildings with roughly 150,000 rentable square feet each, Norterra West is being developed by USAA Real Estate Company of San Antonio, Texas, in association with Tempe-based Metro Commercial Properties. cbre.com
Luxury Condos to Rise in Phoenix Wood Partners’ entity WP West Acquisitions, LLC plans to construct a new community called Alta Thomas, made up of high-end, multi-family units, on 4.18 acres on the northwest corner of Thomas Road and Third Street in the heart of downtown Phoenix. The recently completed land sale was brokered through Michael A. Lieb, Ltd representing the buyer, while Stuart Milne and Rich Andrus with Menlo Group Commercial Real Estate represented the multiple sellers in this 17-parcel assemblage. woodpartners.com
DEC. 20 1 5
12
INBUSINESSMAG.COM
Local Icon Enhances Lounge Experience at Sky Harbor
Global restaurateur HMSHost and Airport Lounge Development, the largest U.S. independent shared-use lounge developer, have collaborated to implement menus from popular HMSHost-operated restaurants into ALD-operated The Club airport lounges, enhancing the overall passenger experience, debuting the collaboration in Phoenix and Atlanta. Customers in The Club at ATL in Hartsfield-Jackson Atlanta International Airport (located in Concourse F on the Mezzanine Level) can now order from the Ecco menu, and customers in The Club at PHX (located in Terminal 4 across from Gate B22 on the upper level) can order from Cowboy Ciao. ALD operates the largest U.S. network of independent shared-use lounges, and Ralph Kinder, ALD director of operations, says, “The partnership with HMSHost is just one part of our strategic visions to enhance the guest experience and provide a truly hospitable lounge that is available to all travelers, regardless of airline or class of service flown, and we’re excited to collaborate on continued industry leadership through this project.” “We selected their best lounges to put our best foot forward,” says Jim Schmitz, HMSHost vice president of innovation. “Our restaurant offering in Phoenix is probably one of the best
in the country,” he says. Noting, “It’s important, when a customer comes to the airport, to give them a sense of place,” Schmitz adds, “We feel we started that trend a few years ago.” Visitors and residents alike have another avenue to try a local restaurant. Cowboy Ciao is one of Phoenix’s must-try restaurants on the street and has been open in the B gate area of Terminal 4 since 2012. It was a perfect fit for the lounge experience both for the fact of it being one of Phoenix’s most iconic restaurants and the operational advantage of adjacency to the lounge. “We could get a hot meal there in a timely manner and not go through various security measures in different terminals,” Schmitz explains. —RaeAnne Marsh Airport Lounge Development, Inc. airportloungedev.com The Club theclubairportlounges.com HMSHost hmshost.com
Holiday Etiquette, HR Style
’Tis the season … when merriment sometimes gets the better of good HR sense. Here are a few tips to help companies stay out of hot water at the annual holiday party. Invite the “better halves.” Holiday parties are synonymous with alcohol, and while there are many ways a company can reduce its risk, a non-traditional (yet highly effective) option is to invite employees’ spouses and significant others to the party. They aren’t called “better halves” for nothing — they will frequently be forces for moderation, limiting the risk of overly intoxicated employees. A “Plus One” is an additional perk for the team, too! Avoid liability for workman’s comp. Even if the holiday party is held “after hours,” if it is a mandatory event or attendance is strongly recommended, the company is legally responsible for any employee’s negligence that
occurs at the party. Any injuries to an employee or an employee’s guest will be compensable under the company’s workers’ compensation policy. Be sure employees know the party is truly voluntary. Watch out for overtime pay. Companies that make the holiday party mandatory must be prepared to pay employees for their time — and, if they exceed a 40-hour work week, they must be paid overtime for those extra hours. If the event is truly voluntary, only those employees who perform work at the party (e.g., handing out name tags, performing set-up/clean-up duties) need to be paid. —Whitney Sedwick Meister, an attorney with Fennemore Craig practicing in the areas of employment and labor law, civil appeals, and commercial litigation. Fennemore Craig fclaw.com
Cowboy Ciao has been open in the B gate area of Sky Harbor’s Terminal 4 since 2012. Other local restaurants in the terminal include Chelsea’s Kitchen (outside the security check point) and Barrio Queen.
METRICS & MEASUREMENTS
Business-Friendly Environment? Metro Phoenix earns a B– for small-business friendliness by Mike Hunter
Small-business owners gave Metro Phoenix a B– for its business friendliness, ranking it in the top 50 percent of cities nationwide, according to the recently released 2015 Small Business Friendliness Survey conducted by Thumbtack, a technology-based marketplace designed to connect consumers with small-business professionals within local communities. Among the key findings for Metro Phoenix was an overall small-business friendliness grade of B–, with a ranking of No. 42 out of the 95 cities ranked — a slight drop from last year’s B. Phoenix’s best grade was a composite B for its regulatory environment, which included licensing, tax and labor regulations. Its worst grade was a C for training and networking programs. For the state as a whole, the best grade was a B+ for Arizona’s zoning regulations, which contributed to a composite B for its overall regulatory environment. “Small-business owners on Thumbtack have consistently told us that they welcome support from their governments but are frequently frustrated by unnecessary bureaucratic obstacles,” said Jon Lieber, chief economist of Thumbtack. “Small businesses in Phoenix gave the city solidly average grades across the board for its regulatory environment.” The 2015 survey found licensing was again more important than taxes. When evaluating their cities, small businesses said the ease of compliance with licensing rules mattered far more than tax rates. Tax equity — the actual rate at which business owners pay taxes — mattered far less than any measure of regulatory compliance. For example, labor rules were 88 percent more important in driving state friendliness scores when compared to tax rates. Effective licensing was just as friendly as no licensing. Small-business owners who found licensing compliance to be “very easy” were just as favorable toward their city governments as respondents who weren’t required to be licensed at all. By contrast, licensed professionals in cities with complicated requirements or inconsistent enforcement reported the lowest approval rates.
Regional Rivalry: Tucson earned an overall friendliness score of C–, coming in behind Phoenix’s B– overall.
Training experience was the top factor in both state and city rankings. Offering training on developing a business and navigating the local economic and policy environment was the single biggest factor that influenced perceptions of friendliness. In cities, training was 78 percent more important than the No. 2 factor. On the state level, small business professionals who had a positive training experience were 1.5 times more likely to rate their states as being very supportive. High-quality websites matter. Investing in a high-quality, easy-to-use website that provides useful information and decreases the costs of regulatory compliance improves overall perceptions of a local or state government. Business owners who said their city had a “great” website ranked their cities 13 percent higher, while there was no difference in the rankings of business owners who were either unaware of or had had a bad experience on city websites.
ARIZONA’S SMALL-BUSINESS FRIENDLINESS Overall: B– Licensing Enforcement: C–
Thumbtack thumbtack.com
Metro Phoenix’s Small-Business Friendliness Scores Attribute
2015
2014
2013
2012
Overall friendliness
B–
B
C+
C+
Ease of starting a business
B–
B
C+
B
Ease of hiring
B
B
B
C–
Regulations
B
B+
C+
B–
Health & safety
B
B+
C+
C+
Employment, labor & hiring
B–
B–
C+
B+
Tax code
B
B
C+
B
Licensing
B
B+
B–
C+
Environmental
B
B–
B
B–
Zoning
B
A–
B–
C
Training & networking programs
C
B
C–
Source: Thumbtack (thumbtack.com/az/phoenix)
(Ease of compliance and effectiveness of enforcement of professional licensing rules) Training Opportunities: C– (Whether or not a smallbusiness owner is aware of opportunities for training and networking offered in the community) Government Website: B (How difficult or easy it is for a smallbusiness owner to use a government website to comply with regulations)
13
DEC. 20 1 5
INBUSINESSMAG.COM
Subscribe to get connected in business… IN BUSI NESS JUNE
E
2015
MAGAZIN
Custom er Loya lty: Mea sure, An alyze & Strate gize fo r Busin ess
Special Section: Top 50 Small
Business Resources Guide
NOLO GY
JULY 2015
TECH
IN BUSINESS MAGAZINE
Tech S Susta How Tech ecto n r ining Arizonology Is s a's Econo m
y
JUNE
Financ ial W rollment lness Hot Emen Enel ployee to Op
Planning
Leadership
2015
ide Benefit What r's Gu Experts neak OwM Really e Busin siness ess Su Know to s: A Bu Decision cc
•
Human Resources
ess
Why Ar Buy izonans
Lea ies Proding Tech filed
NESS IN BUSI
Local
$4.9 5
INBU
SINE
SSM AG.C
Marketing
OM
Update
Sales
Accounting
IN BU SIN
ESS
MAGA
INBUSINESSMAG.COM
ZIN E
WORKPLA TH CE HEAL FIN ANCE
SEPTEMBE R 2015 •
UE THIS ISS
INBUSINE SSMAG.CO
r ociation Chambe Global iness Ass Small Bus Arizona
M NOVEM BER
in
Stra
SSMA
er’s
Lend
ing G uide
Arizon a Comm
erce:
G.CO M
tegie
Lev bus erage y own iness’s our inve assets st an to d gr ow
INBU SINE
s Ow n
Will
the
ACA
Bring
Busine ss?
5
Repairin
FoW rcor ek g Our
Will we right
By the Business Numbers Power Calenda Lunch
This
Scottsdale Issue Arizona Area Small Chamber Business
s
•
INB
USINE
SSM
AG.CO
TH
IS IS Temp SUE e Arizo Chambe r of na Te Comm chno logy erce Coun cil
M
TRIAL ISSUES
get this it time?
r
of Commerce Association
InBusiness_1110.indd
1
11/1/10 10:43
AM
YEA RS IN BU O MAG SI F AZINESS NE
Crow the dfun d Goo d, th ing: eB the Legaad, l Impa Attit ct M ude Markulticulturasl eting M Energanage y Enga no gem t ent
$4.
95
INB
US INE
SSM
AG .CO
M
Get 2 issues FREE Sign up for In Business Magazine and get the first two issues for free. If you like In Business Magazine, you’ll receive 12 more issues (14 total) for only $24.95. You save 64%
Benefits and Challenges of BYOD
Bring Your Own Device (BYOD) has been gathering momentum among businesses and their employees alike. BYOD is a model of business technology deployment whereby employees, rather than companies, provide and maintain their own personal technology devices — such as computers and phones — for business use. While there are many potential benefits to adopting a BYOD model, businesses that manage their BYOD model in traditional ways can open themselves up to a number of potential threats. Companies can avoid these pitfalls by implementing a thoughtful approach to managing BYOD that leverages remote access solutions.
BENEFITS
ness $4.95
$4.95 INBUSINESSMAG. COM
ines
rdles AZ’s Huturing ac ics ManufLo & gist n as Disruptio Growth Strategy s Busines Protect h Employee wit t sessmen Risk As
Busi
the Friend Zone
ual B us
2015
2 FREE
Illegal Gambling?
plo ye e p c‘Em ct ingeISSUE ia M ak THIS e pa nc e’l SIm Ex pe rie sin es sction: Ann Yo ur Bu
Tempe Chamber of Commerce Arizona Technology Council
Management, Beware
Legal Promotion or
2010
•
Productivity S
ing business
Marketing Contests:
NOV.
JULY 2015
Tech for
NOV.
E
2015 SEPT.
MAGAZIN
lace Wor kepalthy H
What matters now in build
5
G.COM
Compan
201
SSMA
Back to Basics 2.0
SMALL BUSINESS
INBUSINE
TH are hcISS altIS TopHe UE Tech:
INNOVATIONS FOR BUSINESS
off the
newsstand price. SATISFACTION GUARANTEED If you decide In Business Magazine isn’t for you, write cancel in an email (subscriptions@inbusinessmag.com) before your third month and you owe nothing. The two initial issues are yours to keep.
Subscribe at
There are several benefits to BYOD that immediately stand out to businesses considering adopting this model. Cost Savings. BYOD enables businesses to realize significant cost savings. Having employees bring their own devices to work not only eliminates the cost of the initial purchase of devices, but also saves on future repairs and the perpetual replacement cycles. Current Technology. Individuals typically update and replace their personal devices more often than businesses do. This means that employees’ technology will likely be more current and therefore faster, more efficient and more secure, especially if they are running up-to-date versions of operating systems and software. Proficiency. Employees using their own devices are already comfortable and familiar with their hardware and operating systems; they most likely chose their device due to brand and software preferences. This level of comfort allows employees to be more efficient, minimizing their learning curve while maximizing productivity.
CHALLENGES While these positive aspects make BYOD an attractive prospect, there are two main challenges that companies need to consider and address before committing to this model. Non-Conformity. With employees bringing devices of their choosing to work, IT departments and managed service providers are faced with a lack of uniformity among the devices and software that must be managed. This can lead to inefficiencies in troubleshooting, longer issue resolution times and more IT support overhead.
Data Security. With company data residing on personal devices, businesses have significantly less control of their data than they would on a company-owned device. This means data may continue to reside on an employee’s device long after that employee has left the company. With a large variety of devices and software to be managed, the IT department may not be able to effectively deploy and manage the tools that should protect data from breaches or malware infections on an employee’s device.
THOUGHTFULLY MANAGING BYOD In a hosted Remote Desktop or VDI deployment, all of a company’s data is stored on a remote server, and users access all of their work-related programs and data through a portal into that server. As a result, no data is ever actually being stored on the user’s device and, therefore, the data is not vulnerable to infection, loss or data sovereignty issues. Additionally, the IT management overhead is significantly decreased, as the devices that are serviced essentially become dumb terminals. Employees can access their workspace from any computer, so a laptop device replacement takes minutes rather than hours. For the management of cell phones that hold company email, a strict mobile device management policy and appropriate software is recommended to ensure company control of data. With the prominence of Web-based software and the ability to deploy technology in much more manageable ways, BYOD is becoming safer and more viable than ever. The key to a successful BYOD implementation is ensuring appropriate policies are in place to maximize data security. Additionally, appropriate tools must be in place so that IT can effectively manage endpoints regardless of variety or whether or not they are company- or employee-owned. —Ryan Treisman, chief technology officer for Phoenix-based Adopt Technologies, a provider of high-quality cloud and traditional IT services to small and medium-sized businesses. Adopt Technologies adopttechnologies.com
inbusinessmag.com/trial DEC. 20 1 5
14
INBUSINESSMAG.COM
Half of employers will require employees to supply their own devices for work purposes by 2017, according to Gartner, the world’s leading information technology research and advisory company.
BY RAEANNE MARSH
YOUR BENEFIT IN BUSINESS
WELL WELL WELL BY MIKE HUNTER
Classification for Better Care A recent update to medical coding — the International Classification of Diseases, 10th Revision (ICD-10) — makes medical coding a universal language, as it has already been adopted across the globe. Two key improvements over prior processes are specificity and infinite coding. Specificity removes even the smallest chance of error in the diagnosing, coding, billing or reimbursement process for everyone. And infinite space for creating new codes accommodates the reality that many new diseases, treatment protocols and medical techniques are adopted each year. While its use is not legally required, a spokesman with Carrington College — which prepares students for entry-level careers in medical records and health information in areas such as facility coding, tumor registry and insurance contracts at its locations in Mesa, Tucson and Phoenix — points out ICD-10 affects all healthcare facilities nationwide as well as the hundreds of thousands of students who enter the healthcare field each day because it must be followed by any provider seeking reimbursement
Healthcare Services Platform Consortium Aims for Interoperability
Interoperability is a key need in healthcare today, with the growing focus on collating and sharing data. Scottsdale-based Healthcare Services Platform Consortium was founded to create a platform model that would allow users to download an application and use it with only minor configuration adjustments, explains Oscar Diaz, CEO, comparing such convenience to iOS and Android platforms. HSPC is a provider-led, not-for-profit, multistakeholder organization aiming to focus application development on a new-generation platform through alignment of leading healthcare delivery organizations, vendors, system integrators and a venture-led investor group. The consortium’s primary objective is to leverage hard-won work on Services Oriented Architecture (SOA) at the Veterans Administration, Intermountain Healthcare, Arizona State University, Regenstrief Institute and other organizations to accelerate application development through an open standards-based, SOA platform and a create a new marketplace for semantic, native interoperability in healthcare.
from insurance companies.
Critical Rehab Advances The City of Surprise will finally get a hospital when the Cobalt Rehabilitation Hospital of Surprise opens this month. The $17.5-million, 55,000-square-foot facility will also be the first hospital in Arizona to provide the ZeroG® Gait and Balance Training System, a robotic body-weight support system mounted to a motorized trolley that rides along an overhead track. The system by Aretech is designed to allow patients who are paralyzed to practice walking and balance therapy safely and independently. About 140 specially trained nurses, therapists and other clinicians will treat patients recovering from traumatic and debilitating illness. The hospital will have 40 private rooms — some with living rooms and upscale, hotel-like amenities — of which 12 beds will be dedicated to the treatment of traumatic brain injuries, spinal cord injuries and Parkinson’s disease.
DEC. 20 1 5
16
INBUSINESSMAG.COM
“In healthcare today, it can take 6 to 12 months to get an application to run when you bring it in,” Diaz says, “and it can take one to two years to build an application.” HSPC is building a platform model than can, literally, be used to build an application, according to Diaz. “We hope it will facilitate a lot of innovation in healthcare,” he says, noting the enormous cost of an app makes it hard for a small company to break into the market. But HSPC’s primary effort is to create data models that provide semantic, native interoperability. Currently, Diaz explains, doctors have to sift through a lot of data to get the information they need. HSPC’s model enables doctors to integrate information based on specific workflow. And, in terms of standards efforts, he notes it is not unusual for a large enterprise to have as many as 5,000 applications that need to be integrated so they talk to each other — and it can cost $25,000 per year to support one interface. Healthcare Services Platform Consortium hspconsortium.org
Specialty Obstetrics Focuses on Diabetes
A healthcare issue in America today is the growing epidemic of obesity. And, with obesity being a significant factor in leading to diabetes, one of the specialties that has evolved in obstetrics and gynecology is maternal-fetal medicine. John Elliott, M.D., founded Valley Perinatal in 2013 to focus on the high-risk obstetrics of diabetic moms. “Our role is to provide coordinated care that is not available in an OB-GYN office,” he says. The practice encompasses dietitians, who provide nutritional advice and educate patients about food to try to keep blood sugar at a normal level; diabetes nurse practitioners; and physicians. Patients include women with pre-gestational diabetes as well as those with gestational diabetes (the 5-7 percent of pregnant women whose pregnancy made them a temporary diabetic). “Patients are sent to us from all over the state, and we do a lot of telemedicine,” Dr. Elliott says, explaining the practice contracts with the major health insurance carriers, AHCCCS plans and
Medicare. Since opening the practice in 2013 with five offices — in Scottsdale, Chandler, Phoenix and two in Mesa that he, as the only perinatologist in that network, visited one day each per week — he opened a sixth office in Glendale earlier this year and is looking at an opportunity to move into the Tucson market. Valley Perinatal valleyperinatal.com
According to the U.S. Bureau of Labor Statistics, employment of medical records and health information technicians is expected to increase by 22 percent from 2012 to 2011.
LAW MATTERS TO BUSINESS
Keeping Business in the Family Way I.R.S. rumored to be slightly backing off proposed attack on family business by Darren T. Case Earlier in May, Cathy Hughes, an attorney-adviser for the Estate and Gift Tax Policy Office for the United States Department of the Treasury, sent shockwaves into the tax and estate planning community by announcing that new regulations would be implemented to make it much more difficult for families to transfer a family business to the next generation utilizing business valuation discounts. Before, family business owners had been effectively using valuation discounts for decades, citing “lack of marketability” and “lack of control,” among others, to transfer their business to their children or other family members, and lessen or avoid the estate tax impact on their death. The Internal Revenue Service would love to do away with these discounts, but it has faced varied results in the U.S. Tax courts — and because of the lack of clear precedent, the I.R.S. would need assistance from the Department of the Treasury to do away with the discounts. Because the community has not seen movement to act on these measures, recent rumors are that the regulations may not be as far-reaching as the I.R.S. originally desired. However, if the I.R.S. were to receive the regulations, it would strongly curtail the tax-favorable transfers of businesses to the next generation and generate more revenue for the Department of the Treasury through increased collection of estate taxes. Without the regulations, the I.R.S. believes discounting may continue to be abused.
Where taxpayers view this as an advanced estate planning technique, the I.R.S. believes that these discounts have been abused. For example, families have gone so far as creating family businesses solely for implementing the technique, where the family contributes marketable securities, cash or other liquid assets to the newly formed business and then gifts or sells fractional share interests at discounted rates shortly thereafter. While one would assume that the I.R.S. would be successful in challenging taxpayers abusing valuation discounts, the results within the U.S. Tax Court have been mixed, generally tilting in favor of the taxpayers.
CURRENT BUSINESS ESTATE TAX LANDSCAPE
Darren T. Case is a tax and estate planning shareholder attorney for Tiffany & Bosco, P.A. He is the co-author of the Arizona Estate Planning and Probate Handbook, former president of the Estate Planning, Probate & Trust Section for the Maricopa County Bar Association, vice president for the Central Arizona Estate Planning Council, and was recognized as a Super Lawyers Southwest Rising Star in 2015. Tiffany & Bosco, P.A. tblaw.com
DEC. 20 1 5
18
INBUSINESSMAG.COM
The types of valuation discounts under question by the I.R.S. and the Department of the Treasury are based upon general business principles, which is why they are struggling to come up with the new regulation. In a non-familial sale of a business, the discounting benefits the buyer to the detriment of the seller, as less profit is being received from the sale. On the other hand, in an intra-family sale (or gift), while the seller would still receive less profit from the sale, it is presumed that the seller would still be satisfied, as it benefits not only their children but also avoids estate tax upon their death. To illustrate the effectiveness of valuation discounts, assume that parents owned a family business worth $4 million and wished to gift or sell a 25-percent interest to their children. The book value of that 25-percent interest would be $1 million. However, due the “lack of marketability” and “lack of control” of the family business, a 35-percent discount is warranted in the gift or sale. Consequently, the 25-percent interest in the company could be transferred to the next generation at a value of $650,000. If the net worth of the parents were subject to federal estate tax, currently at a rate of 40 percent, the transfer of the 25-percent interest would avoid imposition of an estate tax of $140,000.
WHAT THIS MEANS FOR BUSINESSES The extent of the Department of the Treasury’s aid to the I.R.S. has remained a mystery, but the latest rumors from Washington, D.C., have led tax practitioners to believe the new regulations will apply only to the “abusive use” of the law, and discounting would still apply to legitimate operating businesses in which the taxpayer is actively involved. Perhaps the Department of the Treasury was swayed by the scathing open letter to the I.R.S. by a prominent Chicago attorney, who used 30 pages to criticize proposals limiting or eliminating discounts in family business transfers. Or perhaps the I.R.S. saw potential difficulties in litigating against taxpayers with the new regulations where more time was needed to refine the regulations. Whatever the reason for the delay in the release, business owners who desire to transition their business to the next generation or potentially lessen their estate-tax burden should contact their trusted tax and legal professionals to discuss what impact these rumored regulations may have on their family. Furthermore, it is recommended that families sit down to discuss estate planning and business matters, which often is beneficial to the process and could avoid misunderstandings upon the transition of a business.
According to the Joint Committee on Taxation’s publication “History, Present Law, and Analysis of the Federal Wealth Transfer Tax System,” only 0.2 percent of the U.S. population owe any estate tax. The percentage is this low due to estate tax exemptions in 2015 and estate planning attorneys utilizing the tax code to the benefit of taxpayers. jct.gov/publications.html?func=startdown&id=4744
Focus on your expertise by taking advantage of ours
Our cost-effective solutions help your schedule as much as your bottom line. Let us provide the technical expertise, tailored solutions and money-saving rebates you need to make saving energy easy. Get started today—we’ll help you lower your overhead so you can keep doing what you do best.
To learn how you can save energy and money, please visit aps.com/BetterBottomLine or call (866) 333-4735. This program is funded by APS customers and approved by the Arizona Corporation Commission.
Creating
Jobs
‘Simple’ Solution For Our Economic Success
Big companies are hiring in big numbers and small companies are growing their workforce in big percentages, but there are many forces impacting business development and job growth by RaeAnne Marsh
Job creation
has been one of the strongest indicators of the health of an economy. But numbers tell only part of the story, as the technological, global and demographic forces wreak changes on the business employment environment. According to November’s federal jobs report, 271,000 new jobs were created nationwide in October, with 4,700 of those jobs added in Arizona. Since 2011, when recovery from the recession is considered to have begun in earnest, the total nonfarm employment in the Phoenix market has increased by more than 183,000 jobs. At the same time, there is a skill shortage nationwide across a number of industries, from technical trades to software developers. One of the bigger changes is the makeup of the workforce itself, notes Eugene Giovannini, Ed.D., president of Maricopa Corporate College, which works with employers to customize a workforce education program for the entire gamut of employee level. There are 85 million baby boomers, 65 million GenX-ers, and only 47 million millennials. As time goes on, then, there will be fewer people in the workforce. With fewer people, employers need to negotiate differently — and millennials negotiate life differently, Dr. Giovannini points out. “Companies are struggling with how to engage the millennial population in the workforce,” he says. “They’re not interested in a 30-year career; they’ve seen their parents get laid off.” An indicator of how tough the market is to start hiring is the fact that unemployment just over 5 percent, says Ryan Reeder, senior director of talent acquisition for Progrexion. “We have the most need of hiring IT professionals, and call center professionals (preferably with sales experience), and also need to hire customer service agents and representatives, And we’re continually hiring for own HR team as well,” he says, explaining Phoenix is among the top cities in the United States for call centers, with new ones coming in all the time, and it’s very competitive, therefore, especially in sales. “We’re in the finance part of it, doing credit repair, and when we opened in Phoenix two years ago, we had a great influx of applicants. Now, the market has gotten tighter.” Calling it a candidate’s market, he notes, “We need to spend more to advertise for hires. Companies work harder to get A-level players now.” At a 3-digit Standard Occupational Classification level, according to research by the Arizona Commerce Authority, the occupations projected to grow by the largest number are Food and Beverage Serving Workers. This, however, is a very low-wage occupation, usually paying only 43 percent of the state’s average wage.
Noting that manufacturing is laying off, he points out technology is taking up those numbers. And in Arizona, with so many companies supporting the military, “Industrial engineering technology is extremely important; it’s stronger here than in rest of country.” In fact, Sandra Watson, president and CEO of Arizona Commerce Authority, says, “If we compare the rates at which workers in the Phoenix area are employed to the national averages, we find a number of occupations are significantly more concentrated in the Phoenix area.” Top of the list are industrial engineering technicians, with aerospace engineers and electro-mechanical technicians also on it. “All of the occupations offer wages well above the state average.” They also require a bachelor’s degree or higher. “Today’s workforce in Greater Phoenix is well-aligned to meet industry needs,” says Chris Camacho, president and CEO of the Greater Phoenix Economic Council. And GPEC is focused on bringing in more companies in very specific industries. “These are largely advanced industries,” he notes, “and, in most cases, they have significant export positions and high-wage jobs.” Industries targeted are mission-critical software, aerospace and defense, healthcare, biomed, advanced manufacturing and broadform technology-related companies. The message GPEC takes to markets that have these types of companies is, Phoenix is the market where companies can go to scale. And he notes that, today, job growth of the financial services, healthcare and software industries in the Phoenix area is outpacing the national average. “Most companies bring 10 to 20 percent of their workforces with them from original market, and then hire the rest locally,” he says. Large companies hire big numbers of people, but by percent growth, small businesses lead the pack. When a 12-person business adds three more, that’s a big percentage, Bruno points out. He points to NextNet Partners, an IT consulting firm in Tempe, growing from 20 to 30 people — a 50 percent gain.
Top jobs — those paying the higher wages — are in those professions that are degreed or require advanced degrees, says David Bruno, managing director at ZRG Partners. The two biggest industries are healthcare — technology or diagnostics — projected to grow 18,000+ jobs; and computer occupations, projected to grow 17,600 jobs by 2025. “The third-most important industry is finance — because of the rules, regulations, taxes, etc. — and this also takes degrees,” he says.
22
DEC. 2015
INBUSINESSMAG.COM
Funding for Growth
It takes capital to get started, and it takes capital to scale. Kimber Lanning, founder and executive director of Local First Arizona, makes this point when she notes, “If you can’t get a loan, you’re not going to create jobs.” And that’s where community banks come into the picture in a big way, Lanning believes, pointing out that 96 percent of the money here is deposited in non-local banks — JPMorgan Chase, Wells Fargo and Bank of America alone counting for threequarters of that. “They take the underwriting out of state, and lose the ability to understand the business story,” she says, using as example local restaurateur Craig DeMarco (the Postino winebars, Windsor, Churn). “Everything he touches turns to gold. But their underwriters say, ‘I don’t know this guy; the business looks risky to me.’” In her own experience, seeking a loan for her arts gallery, Modified Arts, on Roosevelt Row in Phoenix’s arts district, the bank determined its value by comparing it to a used-car lot on Van Buren. “The loan is derailed if they don’t know the area.” Plus, she observes, these banks are more interested in bigger loans. Their completion rate of 16 percent with a $2 million average in Arizona “shows they’re not interested in small business.” Lanning believes community banks, which have a nearly 50-percent completion rate and are more likely to customize a loan, are more likely to understand how neighborhoods are turning around. “The City of Phoenix put $50 million into local banks so we’ll have local people making decisions.” Another factor Lanning points to that affects job creation from a smallbusiness standpoint is the regulatory environment regarding building codes and zoning. Referring to the many 1950s strip malls populated with small businesses, she says, “Many cities rigidly interpret building code, and require bringing them up to current code.” Often, the deficiencies are in ADA-accessible bathrooms or existence of drinking fountains, and are not usually threatening life or safety, and the changes would incur costs small businesses can’t afford and could not pass on to customers. She worked with the City of Phoenix on its adoption of the international existing building code and on overhauling its adaptive reuse program, which is now the most progressive adaptive reuse program in country. “It makes it easier to open a new business in an old building,” she says, citing the success of
Sandra Watson, president and CEO of Arizona Commerce Authority, says, “If we compare the rates at which workers in the Phoenix area are employed to the national averages, we find a number of occupations are significantly more concentrated in the Phoenix area.”
INBUSINESSMAG.COM
80-plus businesses opening in the past five years. Of the pilot program about seven years ago, she reports the first 12 businesses saved an average of $16,000 in four and a half months. A lesser-known source of job creation lies in a program administered by the United States Citizenship and Immigration Services called EB-5 (Employment-Based Immigration: Fifth Preference). It is an investor program designed to give immigrants a route to a green card, explains Mahsa Aliaskari, a principal with the law firm Polsinelli. Established in 1990 and modified in 1993 to include a regional center concept that allowed a pooling of funds to enable larger investments, it was underutilized until the recent recession. “In 2008 and 2009, it became really popular,” Aliaskari says, explaining the recession had resulted in developers losing a lot of their usual funding sources. “So they looked for creative solutions.” The job creation calculation, made similarly to that for economic impact studies, includes direct, indirect and induced jobs. Private equity firms and developers look for viable jobs for the EB-5 project to create the jobs the way needed to be able to lead to a green card. These are often hotels and mixed-use project, and in Arizona include charter schools and nursing care. And, depending on job calculation and how targeted employment areas are identified, she says, “More projects may become viable.” Observing that money is more available now than four to five years ago, Aliaskari points out when money was on hold, EB-5 helped move projects forward. “EB-5 money was the first to go in, then they got the remaining investors — so they needed EB-5 money to get the project started.” Through the program’s targeted employment area (TEA), EB-5 infuses money into areas that need it or are having a difficult time attracting investment. So she’s found economic development agencies are taking a role in creating the regional centers — which have to fit the criteria of a TEA — to help developers’ projects move forward. Given the history of EB-5, it’s not surprising that TEA is largely real estatedriven. As such, Camacho notes, it is not seen as leading to manufacturing or significant job producers. However, GPEC does work with GreenCardFund, a company focused on managing EB-5 foreign investment. Rudy Vetter, chief marketing officer with GreenCardFund, says his company is overwhelmed with interest from foreign investors. Projects are primarily in education, healthcare and hospitality, he says, “because they are job-intensive and most likely will make the necessary job-creation requirement.” From his company’s point of view, manufacturing — for which most investment is in equipment — and renewal energy projects — which generate jobs during construction but that don’t continue after completion — are not suitable for an EB-5 project. A regional center program has to fit the requirement of a TEA, and it is the ACA that has the authority to make that designation. Relating that he was with GPEC at the time, Vetter says, “I was really amazed when I learned about EB-5 and what this type of economic development can deliver to the states.” A GreenCardFund charter school project in Casa Grande that opened two years ago, Odyssey Preparatory Academy, brought $7.7 million in foreign investment and created 96 jobs. The Luhrs Downtown Marriott currently under construction represents an $80 million investment and is projected to create 650 jobs.
DEC. 2015
23
The integration of new technology The Changing requires a different type of workforce, Workplace and the emerging workforce must have some level of ability to do technology migration, Camacho says. “Industries are continuing to change with digitization. Any industry that touches on any kind of computer software is seeing a requirement in software development and even programming and big-data analytics.” This view is supported by a recent analysis by the ACA, which found one of the most critical changes in high-demand jobs is the growing importance of computer skills in occupations that are not traditionally considered “high-tech.” “The Aerospace and Defense sector in Arizona, for example, now employs more systems software developers than industrial engineers,” Watson says, noting applications developers and computer systems analysts are also among the sector’s top 20 occupations. “Embedded software, smart sensors and the Internet of Things are blurring the traditional definitions of critical skills for today’s manufacturing careers,” Watson says. According to the U.S. Department of Labor’s most recent occupation profiles, the single most important work activity of both aerospace and mechanical engineers is interacting with computers. On an importance scale of 1-100, this activity is rated 97 and 96, respectively. “We’re hiring to new jobs that didn’t use to exist,” says Progrexion’s Ryan Reeder. Knowledge of social media is an important job skill now; five years ago, he says, “We didn’t think much about social media.” But important now is knowing how to reach out to customers via chat, instant messaging, Twitter; the company has a dedicated team just for email handling customers’ questions; and it’s looking into how to utilize Snapchat as a tool for additional sales, for example. And Progrexion also has need of
A lesser-known source of job creation lies in a program administered by the United States Citizenship and Immigration Services called EB-5 (Employment-Based Immigration: Fifth Preference). It is an investor program designed to give immigrants a route to a green card, explains Mahsa Aliaskari, a principal with the law firm Polsinelli.
24
DEC. 2015
IT skill sets in specialized areas, such as developers and operators, as well as individuals with the right personality to hustle in the commission-based sales call center. In fact, tech companies everywhere need engineers — those jobs are in high demand throughout the industry right now, GoDaddy VP of People Operations Katee Van Horn observes. “That said, I think the primary characteristic we are hiring for is the ‘motivation to make a difference,’ meaning we want people who believe in our mission to empower small businesses and are passionate about helping us do that — whether they do their work in marketing, legal, people operations, customer support or engineering departments.” While characterizing the metropolitan Phoenix area as a destination market for much of the workforce, she notes also that we have to compete with California’s Bay Area for tech talent. GoDaddy’s ace in that race is its company culture. “Working at GoDaddy is a life changing experience that offers people an environment to learn, grow and do the best work of their career, which we think helps set GoDaddy apart from other tech companies. We have the scale of a mature business and the energy of a startup.” For instance, the GoDaddy Global Technology Center in Tempe has been open for more than a year. “It’s a pretty amazing facility,” Van Horn says, “with its own indoor putting green, ping pong tables, a full gym with locker rooms, bicycles, pedal karts, a basketball court and a beer fridge.” Similar remodels are taking place now at GoDaddy’s Gilbert and Scottsdale locations. Regarding new jobs that have been created, Van Horn says, “For GoDaddy, and largely the tech industry, it’s a matter of scaling the company and the people who work with us to match the growth of the business.” To new positions that include logo manager and e-learning specialist, GoDaddy this year created a manager of the learning program/onboarding, director of service readiness and a VP of total rewards, among others.” Healthcare, technology and call centers/finance services are three areas drawing the most attention, says Dr. Giovannini. “The issue of finding workers is acute in every field,” he says, but observes the actual number is greater in those three fields. “The biggest need is finding the people, then training for the particular job.” Whole new jobs are evolving, he says; in fact, whole new disciplines. “There are skill sets that are not even defined or labeled yet.” And traditional jobs have changed with respect to how the job gets done and the skill set it calls for; there are often more specialized requirements. “More and more jobs are automated,” he notes, “and the interface of humans with automation has changed. It’s the same ‘job’ but done differently.” IT today needs a different skill set from what it needed previously, for instance, and manufacturing may be a computer-controlled environment. “Bilingual” is the currency of today’s workplace, but it has nothing to do with nationality. Bruno shares that he hears the term frequently now when meeting with employers. “What they want is someone who understands technology, and can translate it into marketing, HR, finance, operations — and the reverse.” The reality now is, people use their laptop and phone for data, so employers are looking for employees who are both technically savvy and a specialist.
INBUSINESSMAG.COM
Where Have All the Workers Gone … or Where Are They Coming From? Immigration is a hot topic for political rhetoric and posturing. Economists turn to studies to look at realworld impact. According to Arturo Bris, professor of finance at the top-ranked IMD business school and director of the IMD World Competitiveness Center, and José Caballero, senior economist at the Center, a large survey of senior executives, carried out for the IMD World Competitiveness Center’s recently released IMD World Competitiveness Yearbook, shows that decision makers at companies view nations with strict immigration regulation as less competitive and lower on talent. From 2014 to 2015 Germany, Malaysia, Switzerland and the United Kingdom have clamped down on immigration. At the same time data shows that executives perceive that these countries have experienced a decline in the availability of skilled labor and senior managers with significant international experience. Conversely, executives indicate that in the same period while Qatar has “relaxed” its immigration policies that the country has experienced improvements in the availability of skilled and competent workers, and that its attractiveness has increased. While the survey measures perception and not “hard data,” and did not study the Arizona market, the key take-away is that perception is important because if decision makers at a company favor a location over another, there can be implications for job creation and other factors that impact local populations and prosperity.
Matching the Workforce to the Work Place
Says GPEC’s Camacho, “Universities have to understand the type of worker and skill set needed to compete for jobs.” GPEC works with partner organizations that focus on workforce development and education “to ensure the trained workforce of the future,” he says. “We’re about a 24-month indicator, looking ahead, of where future industries are going. We share that information with our education partners.” “Everyone wants the soft skills, and most want some analytical ability,” Dr. Giovannini says. Putting it another way, Corey Loucy of Knod — which offers an experiencebased learning model that connects the worlds of education and employment — says, “Companies hire for technical skills, and fire for soft skills.” Knod, which entered the Phoenix market this past September after identifying it as “particularly behind in degrees,” according to Loucy, designed its program to include teaching the soft skills needed to be successful, and partners with a university for the technical skills individuals need to get hired. “Everything is hands-on learning, working with employers to solve real-world problems.” Project ideas come from Knod’s career advisors, whose input is “to ensure we’re looking at the right types of skill sets,” Loucy says. Advisors come from companies that include eBay, Google, IKEA, TMP Worldwide, InSync and
INBUSINESSMAG.COM
Notes Dennis Hoffman, Ph.D., professor of economics at W. P. Carey School of Business, “If you unfetter the labor markets, let them flow to the most efficient places, generally the economy is better off — with the most efficient labor markets and most productive economy.” Other research, he says, suggests that people who are mobile — who are willing to move hundreds of miles, and change state or country, to take positions (whether high level or low) exhibit a work ethic characteristic that tends to make them more productive. And, in a dynamic market, more productive workers take jobs away from less productive ones. But to the debate about saving jobs, Hoffman says, “The efficiency and output of the economy would suffer if we worry about maintaining labor market conditions so that less productive workers held jobs.” Dr. Hoffman’s point is, immigrant labor does not take jobs away from domestic workers unless the immigrant worker is more productive. And while they may be more willing to work for less, which would put a downward pressure on wages in some markets, the plus is prices would be lower and that would free up buying power. “If we want to protect the domestic worker from immigrant labor, we have to put up with the inefficiencies that protection is going to bring.”
Whole new jobs are evolving, says Dr. Giovannini; in fact, whole new disciplines. “There are skill sets that are not even defined or labeled yet.” healthcare. “They help us stay super-current, and pay attention to trends as they’re coming.” But it’s the upfront assessment of soft skills, which is often overlooked, that is crucial to getting the right people in the right positions, Dr. Giovannini emphasizes. Not doing this is one reason for high turnover in jobs. Noting every job has its own core needs, he says companies need to “assess skill sets, competencies and the training needed to meet those competencies and skill sets.” And being “highly skilled” does not necessarily mean a person has a degree at all. The biggest need is finding the people, and then training for a particular job. Says Giovannini, “Change is happening so fast that the skill set behind the typical college degrees may well be out of date by the time the student graduates.” Arizona Commerce Authority azcommerce.com GoDaddy GoDaddy.com GreenCardFund greencardfund.com Knod knodfm.com Local First Arizona localfirstaz.com Maricopa Corporate College maricopacorporatecollege.com Polsinelli polsinelli.com Progrexion progrexion.com W. P. Carey School of Business wpcarey.asu.edu ZRG Partners zrgpartners.com
DEC. 2015
25
PEOPLE ARE KEY INTERVIEW ‘SAFE’
Pre-employment interview checklist, one of sample forms included in Secrets
• Discuss company policies regarding information protection
Company’s information
Others’ information (including candidate’s employer)
• Discuss and provide a copy of contracts candidate will have to sign • Have candidate sign assurance of no confidential information (a sample of this form is included on www.inbusinessmag.com.)
Emphasize policy prohibiting use of unauthorized data
• Ask about current employment, without inviting disclosure of secrets
Observe candidate’s attitude toward rights of current employer
Get copy of any restrictive agreements
If already terminated, ask about warnings or concerns
James Pooley, author of Secrets: Managing Information Assets in the Age of Cyberespionage, recently completed a five-year term as deputy director general at the World Intellectual Property Organization in Geneva. He provides international strategic and management advice in patent and trade secret matters, performs prelitigation investigation and analysis, and consults on information security programs. veruspress.com
DEC. 20 1 5
26
INBUSINESSMAG.COM
What Is Fair Competition in the War for Talent? Employee-poaching can be an effective tactic in the fight to stay competitive — but be careful to keep new hires from bringing dangerous intellectual property secrets with them by James Pooley In today’s hyper-competitive global economy, talent is often your most valuable weapon. If you’re like most business leaders, you’re not above engaging in a little employeepoaching to improve your position. After all, if you can entice an MVP from another company to enlist in your ranks, you’ll deprive the competition of a key asset while taking immediate advantage of your new hire’s previous training and experience. Best of all, this kind of hiring is perfectly legal, right? Well yes … except when it’s not. There are two scenarios that tend to get companies in trouble when they woo workers away from a previous employer. The first is hiring a new employee with the intention of gaining access to confidential information about another company. The second is simply being sloppy about onboarding new hires and unintentionally allowing them to bring confidential data, knowledge or methods into their new position. If you’re wondering whether tapping into another company’s secrets via employee-poaching is really that significant a transgression, the answer is a resounding, “Yes.” After Boeing hired away Lockheed employees who brought proprietary documents to their new employer, it had to pay a $615-million fine to avoid criminal prosecution. Even then, two former Boeing executives were indicted and sentenced to prison time. Think this couldn’t happen to you? Think again. As reported recently by Symantec, half of employees who leave their jobs keep data belonging to their former employer, and most of them leave with plans to use it in their new positions. When you’re hiring away employees, you need to be very familiar with what’s legal and ethical and what’s not, and take specific steps to make sure you aren’t crossing the line into espionage or trade secret theft. Here are six ways for employers to stay on the right side of the law when hiring key employees away from the competition. Understand what’s legal for you to know, and what’s not. The law protects only trade secrets, not employee skill or general knowledge — but what’s the difference? The skill a worker acquires practicing her craft over time is hers to keep and is your company’s to enjoy after you’ve hired her away from the competition. The same thing may also apply to techniques and information she has learned over the course of her employment. However, if any of those techniques or pieces of information give her employer a competitive advantage, are not generally known, and are safeguarded
to a reasonable degree by the company, they are likely to be considered trade secrets. If that explanation sounds confusing or open to interpretation, that’s because it is. Trade secrets can range from unique processes for creating goods — such as the legendary Coca-Cola formula — to seemingly inconsequential details, such as a key client’s favorite wine. There simply is no hard-and-fast distinction between these types of assets. However, if a piece of information — no matter how minute — is privately held and gives a particular company an edge over the competition, chances are the law will treat it as a trade secret — and will prohibit you and your newly poached hire from using it. Be aware that poaching is a balancing game, not an exact science. Even if your company is careful to avoid learning and utilizing sensitive information when onboarding a new employee, contamination may still occur. Often the most valuable new employee in theory is also the one with the most knowledge of the competition, and is thus the riskiest hire in terms of exposure to information that could get you into trouble. As the “inevitable disclosure” theory postulates, some new hires may know more than they can reasonably be expected to contain. It’s up to your company to confront this paradox directly and determine your risk appetite for the “best” hire. Tread carefully in the recruitment phase. You can start mitigating the risk of information contamination when your company is still in the recruitment phase. Ideally, all job announcements will express qualifications in generic terms, avoiding anything that could be interpreted as trolling for a source of competitive data. Be especially careful in this area if you’re targeting a particular individual or group.
The Patent Cooperation Treaty is an international treaty with more than 145 Contracting States. John Pooley, as deputy director general at the World Intellectual Property Organization, was responsible for management of this international patent system that makes it possible to seek patent protection for an invention simultaneously in a large number of countries by filing a single “international” patent application …
BETTERING YOUR BUSINESS Don’t let down your guard once you have desirable candidates on the hook. The pre-employment interview can be an especially fraught situation. Those who participate in the process should be trained, or at least well informed. They should be guided by a checklist that allows them to find out only what they need in order to assess the candidate’s general knowledge and skill set (which, once again, is the part of their experience that applicants are entitled to take with them). Make it clear to candidates at the outset that you don’t want them to reveal sensitive information of any kind, and explain why. Reaffirm your commitment to remaining “clean” during onboarding. During new employee orientation, reinforce your company’s culture of respect for others’ information rights. As with the preemployment interview, your goal is to impress on new employees how important it is to come into the new position “clean,” and to point out that there is no advantage — and considerable risk — in trying to prove themselves by bringing with them the work they did before. Train current employees to recognize off-limits information. Despite your best efforts, a new hire might inadvertently share sensitive data about a previous employer. It’s important that all of your employees (not just supervisors and hiring managers) know how to recognize offlimits information. Set aside time for company-wide training on what constitutes a trade secret, and be sure to provide examples of acceptable and unacceptable conversations regarding “how we did things at my previous company.” Give specific instructions on what to do if an employee thinks she may have been exposed to secret information. And perhaps most important, provide information and encouragement about where to go if employees have questions or are concerned about an ethically ambiguous situation. Have a de-contamination plan in place. It’s much better to be prepared than to be sorry, so assume that despite your best efforts, you’ll encounter information infection from new hires. Know how to proceed if and when this happens. Your first goal should be to understand the facts: what information was received, when and how it entered, to what extent it has spread through the organization or its systems, and whether or how it has been used. Unless the issue seems trivial (e.g., it’s information of minor importance, possibly publicly available, and exposed to only one person), immediately involve legal counsel to help decide what to do next, and to provide a privilege against disclosure of your internal communications. Assuming that any unwanted infection you suffer was truly an accident or the result of a rogue employee’s misconduct, then your challenge will be to combine risk management with ethical behavior. Happily, they usually align. Voluntary disclosure to the information’s owner is often appreciated, with no greater consequence than cooperating on a plan for containment. Naturally, if the damage has been more extensive, there is more risk that litigation will result. But by keeping the situation secret from the victim, you will increase the risk of serious consequences if the facts surface. So the ethical choice is also the smarter choice. Ultimately, establishing an overall culture of respect for intellectual property is your best defense against information contamination when you are hiring employees away from the competition. When everyone in your organization understands the importance of respecting trade secrets and other privileged data, this knowledge will shape their actions and interactions with potential candidates and new hires.
… instead of filing several separate national or regional patent applications. The granting of patents remains under the control of the national or regional patent Offices in what is called the “national phase.”
Economics versus Reality John M. Legge shows the many ways in which the real world diverges from economics textbooks. He argues that mainstream economic theory took a disastrous turn 140 years ago, when it attempted to use calculus to explain human behavior. A real economy involves people who are not variables in equations. This error led to a second one: mainstream economics becoming obsessed with equilibrium. However, constant change is the reality and one cannot explain the present without understanding the path taken to get here. Title: Economics versus Reality: How to Be Effective in the Real World in Spite of Economic Theory Author: John M. Legge
$29.95
Publisher: Transaction Publishers
Available: 12/31/2015
Pages: 308
Love the Hustle After college, Elle Kaplan arrived in Manhattan with a dream of conquering the finance world. When everyone told her to come back in a few years with an MBA, she interviewed for a receptionist position at a private equity firm instead. It was hardly the starter job of her dreams, but it turned out to be her big break; only ten years after starting as the lowest woman on the totem pole, Kaplan had worked her way up to CEO and founded one of the country’s only asset management firms fully owned by a woman. In Love the Hustle, she shares her personal journey to seven-figure success and teaches the reader how to create her own opportunities, no matter which rung on the corporate ladder she’s starting from. Title: Love the Hustle: 10 Steps to Earn More and Be More—One Woman’s Journey from Struggling Temp to Thriving CEO Author: Elle Kaplan
$25.99
Publisher: Da Capo Lifelong Books
Available: 12/25/2015
Pages: 256
Organize Tomorrow Today How do both elite athletes and business leaders climb to the top? Contrary to what you might think, it’s effective habits rather than innate talent that are their keys to success. Dr. Jason Selk — director of mental training for the 2011 World Series Champions, the St. Louis Cardinals — and star business coach Tom Bartow combine the most effective elements of both their disciplines to offer an organizational improvement plan that anyone can learn and apply immediately. They outline eight fundamental ways to get organized, including the “time paradox,” which allows precision to set the schedule free, and a two-minute mental training drill that will start one’s day with focus, confidence and energy. Organize Tomorrow Today helps readers to move past their performance roadblocks and achieve more productive lives. Title: Organize Tomorrow Today: 8 Ways to Retrain Your Mind to Optimize Performance at Work and in Life Author: Jason Selk, Tom Bartow and Matthew Rudy
$21.99
Publisher: Da Capo Lifelong Books
Pages: 240
Available: 12/22/2015
27 20DEC.1 5 INBUSINESSMAG.COM
INVESTING IN COMMUNITY
JAN.
UP NEXT MONTH: Culture of Engagement and Philanthropy
Outside Help Knowing why, when and how to engage fundraising consultants can guide a nonprofit’s future success by Julie Iacobelli
FUNDRAISING FACT AND FICTION Belief: Consulting is a waste of money. Reality: Utilizing consultants for a finite period of time at a predetermined amount can be a cost-effective, hands-on way to build capacity in a nonprofit organization. Belief: Staff, alone — or in conjunction with the board — should be able to accomplish major projects and address issues on their own. Reality: Because staff members still maintain day-to-day responsibilities — in addition to their roles during larger projects — they often benefit from the additional strategic and tactical support offered by experienced consultants.
The Author: Julie Iacobelli is a principal with The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists. phoenixphilanthropy.com
DEC. 20 1 5
28
INBUSINESSMAG.COM
There are plenty of reasons why nonprofit organizations seek the expertise of consulting firms. They may face financial uncertainty, a major fundraising campaign, an extended project or leadership changes that would benefit from a third party’s professional insight. Additionally, they may seek counsel during program or organizational expansion to help identify and align new opportunities. There are also ample reasons why executives sitting on nonprofit boards may be hesitant to engage outside counsel. They may not know how to identify a reputable firm, be wary of consultants in general, feel the cost is prohibitive, or simply not understand how a consultant can address their specific needs. Neil Giuliano, former Tempe mayor, president of GLADD and recently CEO of the San Francisco AIDS Foundation,who returned to the Valley last month to assume the positions of president and CEO of Greater Phoenix Leadership, says he’s engaged outside consultants for a number of reasons — especially in situations where knowledge or assessment was not readily available in-house. He says consultants have helped his organizations prioritize staffing growth; complete philanthropy department audits of current practices, polices
and performance; develop multi-year roadmaps for scaling capacity into the future; and address broad relationship issues with the organization and with senior-level volunteers and board members. Most notable, though, was the transition of the San Francisco AIDS Foundation from a governance-only board of seven (with no formal fundraising responsibility) to one of 24 who donated or raised more than $600,000 in a single fiscal year, in addition to their governance and fiduciary responsibilities. “Having an outside consultant identify and articulate this need was an important component of the organization’s trajectory,” he says. As a result, the foundation has grown from a $19 million nonprofit with 89 employees in 2010 to $29 million with 150 employees today. How does a nonprofit find the right consultant? The first step is to identify the consulting services needed. Then, after inquiring of peers and colleagues about their personal experiences with reputable consulting firms, it should research firms online (best in class/in region). The final step is to conduct initial get-to-know-you meetings with a handful of prospective firms.
Ask the Right Questions Before hiring a consulting firm, nonprofits must practice due
During the interview process, ask: Who will be on my consulting team?
What expenses are included in the
diligence, beginning with formal
Often, the individuals making the initial
consulting fees? Are mileage, travel,
reference checks. Ask for the
presentation may not be the consultants
accommodation and copying costs included?
names of at least three former
working directly with the nonprofit. Request
Are there any extra costs?
clients with similar projects, goals
a meeting or phone conversation with those
and missions. Query about their
individuals assigned before committing to a
experience is not as hoped? Does the firm
level of satisfaction and working
contract.
offer an “out” grace period by which either
relationship, and about deliverables
What is the cost of services and terms
What are my options if the consulting
party may terminate the relationship? Under
met. Consider, also, informal
of payment? Fundraising consultants do not
what circumstances might the contract be
conversations with colleagues and
raise money; they position the organization to
renegotiated?
acquaintances regarding personal
do so, and, as such, should not be paid based
and professional experiences with
on percentages of funds raised. Determine if
agreements? Reputable consulting firms will
specific consultants and as well as
the firm charges hourly, daily or per project and
readily sign confidentiality agreements for
completing online searches.
discuss payment schedules that work best for
those clients concerned about use of their
the nonprofit’s financial situation.
personal and donor data.
Consulting = Coaching: Consulting offers a partnership to build skills and abilities in positions and people that don’t currently exist within the organization.
Will your firm honor confidentiality
Find a Qualified Consultant: Consult The Giving Institute. Click Member Search in navigation bar to search by firm, city or postal code givinginstitute.org
“The key,” Giuliano says, “is to clearly identify what gaps your organization is seeking to fill by utilizing a consultant.” That level of clarity may not be obvious up-front and may only be revealed during initial interviews. During those interviews, board members and executive leadership should be honest about the nonprofit’s challenges. That means sharing the nitty-gritty details: staff politics and squabbles, financial concerns, the institution’s overall willingness to embrace change, and details about donor data systems and their access. Withholding such information may simply waste time and money, as consultants will spend additional time unearthing those problems in an attempt to solve the institution’s larger issues. Remember: a prepared consultant is an effective consultant. Board members should also assess the consulting firm’s: Experience: Do the consultants have bootson-the-ground experience with nonprofits of similar missions or in allied fields? Have they worked with clients on executive coaching, strategic planning, fundraising and development, capital campaigns or interim management? Have they held senior-level positions or are they newly minted college graduates? Personality: How does conversation “feel” during the interviews? Is there a rapport or uneasiness? Pay attention to chemistry during initial meetings in much the same way as with new hires. Follow those gut instincts and assess whether the consultant is a partner/confidant or a taskmaster with periodic check-ins. Canceling a contract mere months later due to personality conflicts is simply wasted time and money. Cost: Be sure to request bids from multiple firms to compare pricing. Are they in the same ballpark? But also remember that cheaper isn’t always better. If a connection is felt with a higher-priced firm, consider asking for a more palatable fee or adjusted deliverables to meet budgetary constraints. Don’t forget to also weigh pricing and service advantages/disadvantages of local versus national consulting firms. While local firms will not incur added travel expenses, do they offer the proven expertise for the service needed? And always balance cost with the anticipated quality of the deliverables. “The external set of eyes and inquiry provided by consultants add tremendous value before critical decision-making takes place,” Giuliano says. “Whether it’s strategic planning for large, multi-year projects or for smaller, more concise projects with limited scope, the insight is critical and yields even greater returns in the long term.”
29 20DEC.1 5 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!
Ready to take your business to the next level? Visit the brand new Business Design Center at IKEA® Tempe to discover furniture that’s stylish, practical and priced to help you prot. No matter what you do, it’s for your business, too.
Set up your FREE consultation!
IKEA Tempe 2110 W. IKEA Way Tempe, AZ 85284 (888) 888-4532 Mon-Sat: 10am-9pm Sun: 10am-8pm Restaurant: Mon-Sat: 9am-8pm Sun: 9am-7pm
Stop by IKEA Tempe, call us at (480) 785-8209, ext. 1337 or email us at Business.Tempe.US@IKEA.com. We’ll come to you! Ask about our services, from design to delivery to assembly. Follow us on Twitter @IKEA_Tempe Find more solutions at IKEA-USA.com/business
Offers valid at IKEA Tempe only. Some products require assembly. See store for country of origin information. We apologize for, but will not be bound by or responsible for, any errors in our advertisements. Valid in the US only. © Inter IKEA Systems B.V. 2015
BY MIKE HUNTER
DECEMBER 2015
Rosevelt Lake
Arizona Technology Council
StartupConnect AZ Conference Wed., Dec. 9 | 8:30a – 6:00p This annual Arizona Technology Council event, created by entrepreneurs for entrepreneurs, is Arizona’s must-attend venue for anyone looking to start, grow or sell a venture. Presented once a year in a one-day format, StartupConnect has quickly become the place for entrepreneurs to roll up their sleeves, get up close and personal with successful founders, creators and rainmakers, and make invaluable connections that will shape their company in the future. Content at this year’s event will delight audiences as 50 successful CEOs and executives take the stage to divulge their secrets, solutions and regrets. Attendees will hear from luminaries like Jeff Hoffman, co-founder of Priceline, as he shares the 10 key things every entrepreneur should know, and learn from Clate Mask, founder of Infusionsoft, on what it takes to create lasting success in today’s business environment. Conference attendees will witness a live Pitch Contest during three key times throughout the day, with the winner announced just prior to the evening cocktail reception. They will have the opportunity to participate in nine interactive breakout sessions delivered by moderators and panelists who have been in the trenches and created successful ventures. This is the time to rub shoulders with some of the smartest tech startup gurus Phoenix has to offer. Event cost includes lunch and two drink tickets per attendee.
Tempe Chamber of Commerce
Hot Topics and Lunch — ‘The Drought in Arizona. What’s Next?’ Thurs., Dec. 17 | 11:30a – 1:00p With the water shortage crisis in California, questions have arisen about Arizona’s water supply. This presentation addresses concerns about supplies in the region and provides an overview of water management in the Salt River Project (SRP) water service area and Central Arizona Project (CAP). As the competition for water increases with Arizona’s growth, the need for collaboration will continue to grow. Colette Moore, with Water Planning at SRP, will address concerns about water supplies, identify alternative supply options to meet demands, and discuss programs designed to resolve water resource conflicts. The event aims to bring together and inform businesspeople from around the Valley regarding the collaborative regional efforts that have stretched existing water resources and encouraged conservation practices that protect this vital resource for now and future generations. Hot Topics and Lunch is sponsored by SRP. Members: $25 in advance, $30 same day; general public: $35
SAVE THE DATE
Upcoming and notable International State of the Metro Jan.
15
Mayors from around the Metro area discuss international progress and opportunities. globalchamber.org Good Government Roundtable with Gilbert Town Hall Jan.
Tues., Jan. 19
19
An event of SRP’s Good Government series, this roundtable meeting will bring members of Gilbert’s Town Council and staff together with the business community for an informative and fast-paced discussion regarding important business issues. gilbertaz.com
Tempe Mission Palms
2016 Businessman & Businesswoman of the Year Luncheon
60 E. 5th St., Tempe tempechamber.org
Jan.
Members and Arizona s tartups: $50; non-members: $75
Fri., Jan. 15
Bartlett Dam
ASU SkySong, Building 3 1475 N. Scottsdale Rd., Scottsdale startupconnectaz.com
Wed., Jan. 20
20
The Gilbert Chamber of Commerce will celebrate business leaders and their contributions to the local business community over the last year. gilbertaz.com
DECEMBER 2015 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 DECEMBER 2015 NOTABLE DATES 13 14 15 16 17 18 19 Dec. 6-14 – Hanukkah
Dec. 10 – Human Rights Day
Dec. 25 – Christmas
20 21 22 23 24 25 26 Dec. 7 – Pearl Harbor Day
Dec. 22 – Winter Solstice
Dec. 31 – New Year’s Eve
27 28 29 30 31
31
DEC. 20 1 5
INBUSINESSMAG.COM
DECEMBER 2015 Tues., Dec. 1
Wed., Dec. 9
11:15a – 1:15p
7:00a – 9:00a
Impacting the Economy
Environmental Issues Breakfast
Arizona Association for Economic Development
Arizona Manufacturers Council Lisa Atkins, president of the Central Arizona Project Board, will present “Is It a Drought? Is It El Niño? What is the Story on Water?” This is an opportunity to hear a CAP perspective on the state of Arizona’s water supply and deciphering the facts from the fiction.
A look at the ACA’s successes in its four years and what is ahead for the future. Members: $40; non-members: $50 Phoenix Country Club 2901 N. 7th St., Phoenix aaed.com
Members: $40; non-members: $55 Wed., Dec. 2
7:30a – 10:00a
Fri., Dec. 4
7:30a start
Sheraton Phoenix Airport Hotel Tempe
Chandler Chamber City Bus Tour
24th Annual Bud Shootout Golf Tournament
Chandler Chamber of Commerce
Arizona Hispanic Chamber of Commerce
Once a year the Chandler Chamber has a City Bus Tour. Attendees get to hear about all the upcoming projects and developments in the area. Seats are limited. The bus will leave promptly at 8 a.m.
Golf with Arizona’s top corporate leaders and smallbusiness owners. Breakfast and lunch will be provided for all players. Enjoy contests, awards and prizes. All proceeds will benefit the AZHCC Scholarship Program and the ASU Hispanic Business Alumni Program.
Members: $20; non-members: $35
$375
Network with th e top professionals in the deal-making community, and enjoy some exceptional food, drinks, music and holiday cheer.
First Credit Union Building
The Whirlwind Golf Course
Members: $70; non-members: $110
25 S. Arizona Ave., Chandler
5692 W. North Loop Rd., Chandler
Wrigley Mansion
chandlerchamber.com
azhcc.com
acg.org/arizona
1
2
3
1600 S. 52nd St., Tempe azchamber.com
4 Fri., Dec. 4
Tues., Dec. 8
5:00p – 8:00p
Holiday Social Association for Corporate Growth – Arizona
2501 E. Telawa Trail, Phoenix
8
9
11:00a – 1:30p
46th Annual Luncheon Arizona Forward
Thurs., Dec. 3
5:00p – 7:30p
Winter Wonderland Mixer Greater Phoenix Chamber of Commerce / Arizona Small Business Association Celebrate the holiday season and welcome the new year. The Wyndham Garden Phoenix Midtown provides the perfect backdrop for the combined Winter Wonderland Mixer, which will include light appetizers, a cash bar, music, exhibitors and more. Free Wyndham Garden Phoenix 3600 N. 2nd Ave., Phoenix phoenixchamber.com
DEC. 20 1 5
32
INBUSINESSMAG.COM
Keynote speaker Tom Szaky, co-founder and CEO of TerraCycle, will share his story of transforming a simple idea into a global awardwinning business – recycling the nonrecyclable in more than 20 countries around the world. The innovative culture he inspired throughout his company led TerraCycle to experience 100-percent growth per year for five consecutive years. Szaky is proof positive you can profit by making a positive difference in the world! Members: $90; non-members: $110 JW Marriott Desert Ridge 5350 E. Marriott Dr., Phoenix arizonaforward.org
Tues., Dec. 8
7:30a – 12:30p
Economic Development Red Carpet Tour and Mayor’s Annual Business Address Gilbert Chamber of Commerce Take a behind-the-scenes look at leading developments in and around the community. Hear from the Town of Gilbert’s Mayor John Lewis and Manager Patrick Banger on demographic updates and plans for further growth of our town. Members: $35; non-members: $50 Banner Gateway Medical Center 1900 N. Higley Rd., Gilbert gilbertaz.com
Please confirm, as dates and times are subject to change.
For more events, visit “Business Events” at www.inbusinessmag.com
Tues., Dec. 15
11:30a – 1:00p
Holiday Luncheon Meeting Central Phoenix Women Riley/Echols Wealth Management is the sponsor of this month’s festive holiday luncheon. $75 Royal Palms Resort & Spa 5200 E. Camelback Rd., Phoenix centralphoenixwomen.org Wed., Dec 9
11:00a – 1:00p
Holiday & Business Extravaganza eWomenNetwork Experience the excitement and power of Accelerated Networking, a unique eWomenNetwork process that assures attendees have an opportunity to promote who they are and what they do, ask for what they specifically need from others, develop new business alliances and friends, and learn new ideas and strategies for promoting their business and generating more revenue.
Fri., Dec. 18
8:00a – 9:30a
Friday Forum – Micamp Solutions Tues., Dec. 15
Scottsdale Area Chamber of Commerce
7:30a – 8:30a
As the October 1, 2015 deadline has passed to become compliant with EMV chip-based cards, business owners are placing their business at risk if they have yet to update their payment terminals.
Before Business Hours Tempe Chamber of Commerce
Members: $38; non-members: $48
Breakfast, networking and a chance to give a 30-second commercial about your business.
Raven Golf Club
Members: free; non-members: $10
Scottsdale Area Chamber of Commerce
3636 E. Baseline Rd., Phoenix
Landings Credit Union
7501 E. McCormick Pkwy., Scottsdale
ewnphoenix.com
tempechamber.org
9
2800 S. Mill Ave., Tempe
scottsdalechamber.com
10
15 Thurs., Dec. 10
Thurs., Dec. 10
5:00p – 10:00p
Free
6:00p – 8:00p
18
Tues., Dec. 15
5:30p – 7:30p
State of the Chamber Address
Taste of Mesa
Black Chamber of Arizona
Mesa Chamber of Commerce
Chamber President Kerwin V. Brown will give an overview of the past year’s events and speak on events for the upcoming year. Free
An evening of fun and networking and a 50/50 raffle. Heavy appetizers will be served and everyone gets two drink tickets.
The Institute
Members: $15; non-members: $25
245 E. Jackson St., Phoenix
Arizona Golf Resort
blackchamberaz.com
425 S. Power Rd., Mesa
3rd Annual Holiday Mixer Glendale Chamber of Commerce and Glendale Convention & Visitors Bureau This is an evening of good friends, festive food, spirits, raffle prizes and general merry-making to kick-off the holiday season. It’s also a chance to enjoy Glendale Glitters, Arizona’s free holiday light display, from the best seat in the house. Free Glendale Chamber of Commerce 5800 W. Glenn Dr., Glendale glendaleazchamber.org
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
mesachamber.org Fri., Dec. 18
11:30a – 1:00p
Holiday Luncheon Meeting Women of Scottsdale HonorHealth is the sponsor of this month’s festive holiday luncheon. $35 Westin Kierland 6902 E. Greenway Pkwy., Scottsdale womenofscottsdale.org
33 20DEC.1 5 INBUSINESSMAG.COM
WE VALUE WHAT WE OWN
BY MIKE HUNTER
The 2016 Full-Size Chevy Tahoe 2016 CHEVROLET TAHOE City: 19 Hwy: 23 Trans: 6-speed auto 0-60: 7.1 sec MSRP: $47,000
Built to last, the Chevy Tahoe has been the standard in the full-size SUV category since the category was introduced. This machine is in its 5th generation and styled to impress for sure. The 5.3-liter EcoTec V8 engine is tough and built with power and fuel economy in mind. Its 355 maximum horsepower and 383 lb. ft. of torque haul this beast plus whatever its contents. The 23-mpg highway means that technology is catching up with these full-size, useful vehicles. The new Tahoe is in its second year with the latest body style and has few changes from last year’s model. However, the new-found success of the 2015 has made the SUV comeback only a precursor to what is believed to be the resurgence of the big and mighty vehicle again, with one distinct difference: fuel economy. This engine combines proven technologies like Direct
STAY CONNECTED A powerful, available built-in 4G LTE Wi-Fi connection gives driver and passengers the ability to connect up to seven devices to the Internet via available Wi-Fi.
Injection, Variable Valve Timing and Active Fuel Management to offer the best highway fuel economy of any full-size SUV. Featuring premium materials, the Tahoe feels less utility and more luxury these days. The functional design and multiple seating configurations make it quite versatile. With available power-release second-row and power fold-flat thirdrow seats, the Tahoe offers approximately 94 cu. ft. of cargo space. The center console is large enough to hold a laptop — just one of many upgrades making today’s technology integrate beautifully into this vehicle. An 8-inch touch screen display houses all of the technology any passenger could need, from navigation and voice commands to communication and audio management. Quiet was an added upgrade to this utility vehicle by featuring an acoustic-laminated windshield and triple-sealed inlaid doors to make silence a true realty when roaring down the highway or on a rough road. The sleek look and sportier stance that the Tahoe’s latest edition presents is doing wonders for sales. The bold lighting, the 22-inch wheels and chrome mesh grill are all very stylish and mimic the latest looks by European carmakers. Stay fully charged with 13 charging locations, including six USB ports, a 110-volt three-prong outlet and an available wireless charging station. Chevrolet chevrolet.com/tahoe
Notebooks (of the paper variety) Yes, we think of the electronic variety when we think of notebooks these days, but a good pad of paper is still a certain necessity for any
DEC. 20 1 5
34
INBUSINESSMAG.COM
Moleskine Notebook
Composition Book by Mead
Ampad Gold Fibre Steno Books
This professional
These classic black-
High-quality 20 lb. paper,
notebook is lined and
marbled, college-use
these notebooks are
measures 5.1 by 8.3
composition notebooks
spiral-bound at the top
inches. It has a hard
have become the
for ease of use while
cover and is available
professional’s dream.
standing, and to thumb
in several styles that
Measuring 9.75 by 5.5
through pages and still be
include an elastic strap
inches, these books
able to write. Lined and
to keep it closed or to
come in multiple colors
measuring 6 by 9 inches,
tab pages. $13.95
and are ruled for note-
these pads are backed by
moleskine.com
taking. $5.49 each.
thick cardboard for use standing. $8.59
mead.com
wist.com
The Chevy Tahoe came on the scene in 1998 with a two-door and four-door version and was built atop the full-size Chevy truck chassis. It originally offered a diesel version, which was dumped in 2000 along with the two-door version.
Photos courtesy of Chevrolet (top) Molskin, Mead, Ampad (bottom, l to r)
successful executive. Here are our picks.
Gallagher & Kennedy The prime location for attorneys who know real estate law and how to get deals done.
DEALS WE DO Complex to routine transactions, including land use & zoning, litigation, construction, secured lending, leasing, acquisitions, sales, eminent domain/condemnation, valuation, distressed assets, refinancing, sale-leasebacks, permanent loans, tax planning, liquor licensing and land banking
FOR YOU Developers, home builders, contractors, lenders, landlords, tenants, investors, syndicators, owners, buyers, sellers and individuals
Lawyers. When Results Matter.
AND YOUR PROJECTS Mixed use developments, master planned developments, commercial, office projects, sports facilities, shopping centers, retail, industrial, multi-family, mini-storage and master sign plans
2575 East Camelback Road | Phoenix, Arizona 85016-9225 | P: 602-530-8000 | www.gknet.com
MEALS THAT MATTER
BY MIKE HUNTER
Ocotillo: A Food & Drink Campus
avocado, tomato, shaved radish, herbs, green onions, olive oil $18
OCOTILLO CHICKEN chilies, citrus, local honey, herbs with roasted pecan and date potato salad $15
Speedy Lunches Some days are just too busy to allow for a leisurely lunch. When what’s needed is a quick-and-to-the-point lunch, we suggest grabbing it at one of these hot spots that serve up some great grub. FLOWER CHILD
make up a big portion of the menu, with selections that include the Grilled Pork Sausage, the Tandoori Style Chicken and the House-Smoked King Salmon. Light and perfect for a midday mean is the Mesquite Gilled Lunch Steak that is served in a skillet with fresh-cut avocado, tomatoes, shaved radish herbs, green onions and a smidge of olive oil. The campus is made up of multiple spaces that include a full-service coffee bar, which serves up top-rated coffee and pastries that will add to any morning or all-day coffee drinker’s needs. The Chef’s Garden, beer garden and open lawn mean that events and community use are a priority for the owners and a true benefit to the area for all patrons. An entertainment wall that can be used to project screenings and present other performances is an additional attraction for this hub in uptown Phoenix. Ocotillo 3243 N. 3rd St., Phoenix (602) 687-9080 ocotillophx.com
The Original Chop Shop
Flower Child The latest concept to
Gadzooks Enchiladas & Soups
With several Valley locations,
be duplicated by Fox
A unique concept housed
it can be easy to come past
Restaurants is this healthy
in an old gas station
this fresh-food spot. This
take on the fast and
building, this fresh-
easy-order restaurant has
convenient meal. Multiple
food, made-to-order,
fresh, healthy offerings that
locations Valley-wide
enchilada and soup joint
include healthy rice bowls,
means it’s always easy to
is a true blessing. Fast,
salads, juices and more.
swing in and get fresh and
pretty healthy, options
7158 E. 5th Ave., Scottsdale
organic food.
to please anyone and a
(480) 794-1536
5013 N. 44th St., Phoenix
name to remember are
222 E. University Dr., Tempe
(602) 429.6222
why they make the list.
(480) 307-9336
10460 N. 90th St., Scottsdale
3313 N. 7th St., Phoenix
35 W. Boston St., Chandler
(480) 240-4400
(602) 279-5080
(480) 426-0216
100 E. Camelback Rd., Phoenix
gadzooksaz.com
chopshopco.com
(480) 212-0180 foxrc.com/concept/flower-child
DEC. 20 1 5
36
INBUSINESSMAG.COM
Ocotillo’s indoor/outdoor design by TrueForm and Labahn Ryan Architects blends native desert flora with modern architecture. The inviting indoor space has a full-service bar, dining room and a communal wine events area. Outdoors are several unique spaces that include the chef’s garden, the mesquite terrace, the beer garden and Lucy’s Lawn.
Photos courtesy of Ocotillo (top), Fox Restaurant Concepts (bottom)
MESQUITE GRILLED LUNCH STEAK
The brainchild of food, drink and coffee enthusiasts Dave Johnson, Sacha Levine, Walt Sterling and Kelly Ehley, this culinary campus is all the rage in Phoenix. With a restaurant, coffee bar, actual bar and an entertainment complex, Ocotillo is bringing patrons all that they desire and thrilling them in the process. This metropolitan campus was built from the ground up in an urban-industrial style by TrueForm and Labahn Ryan Architects at the corner of Third Street and Flower. It is home to a new-American cuisine restaurant that is truly worth a drive from anywhere in the Valley. The very simply designed room has a “sit-down” side and a “take away” side, with a very comfortable bar between. There is an extensive patio on the street and some quaint outdoor spaces in the back that are best described as city park-like. The food is fresh and creative. Start with a small dish like the Vegan Red Curry Coconut Soup made with tomatoes, greens, mushrooms, root vegetables and scallions. The Tuna Ceviche is so refreshing and delicious, made with radishes, tomato water, lime, red onion, red chili and herbs. Sandwiches
WINTER 2015
SCOTTSDALECHAMBER.COM
MEMBER COMMUNIQUÉ
Message from the CEO Greetings! I am Mark Hiegel, your new chamber president and CEO. By way of introduction, let me tell you a little about myself. Most recently, I served as director of marketing and business development for Greenberg Traurig, an international law firm based in Phoenix. Before that, I was managing partner at R&R Partners, an international marketing agency with an office here in the Valley. And before that, I was a partner at my own advertising agency, Lavidge Hiegel Communications, also located in Phoenix. Philanthropy is something near and dear to my heart. I’ve served as national communications manager for Make-A-Wish America. I’ve also taken active roles in more than 20 civic and philanthropic boards. Needless to say, there’s a theme here — I’m at my best communicating on the behalf of others. In my intro, I used the words “your new chamber president.” I don’t use that pronoun lightly. The Scottsdale Area Chamber of Commerce is your chamber — we exist for you; we are here to serve you; we are here to advocate on your behalf. There’s that theme again. As an advocacy organization, the chamber supports issues that foster a robust business community and improve our quality of life. That is why we supported the bond election and why we are celebrating that voters approved Bond Questions 5 and 6 giving Scottsdale the funds it needs to improve our streets and support our fire department. The issue of raising taxes is always a complicated one. The chamber’s board of directors studied the bond issues for a long time before we announced our support. Scottsdale is strong; however, we do not have the financial resources to meet all of our needs without a bond. We believe the bonds are good for Scottsdale and that our business community will see substantial positive impacts.
Mark Hiegel was appointed president and CEO of Scottsdale Area Chamber on Oct. 1, 2015. Previously, he served in a number of executive roles throughout the Valley, most recently as marketing director at the law firmof Greenberg Traurig. He has also been noted for his service to more than 20 charitable organizations, including MakeA-Wish America.
While not all the bond questions were approved by voters, you have our guarantee that we, your chamber of commerce, will continue to promote a vibrant business community and ensure the quality of life in our community. Lastly, I hope to meet as many of you, our members, as I can. I want to let you know personally how passionate I am about my role here, and how our incredible staff and I are working hard serve you and your business.
Sincerely,
Mark Hiegel President & CEO Scottsdale Area Chamber of Commerce
SCOTTSDALE@WORK - 1
2015 Scottsdale Spice: Hot Food, Cool Vibe
Hundreds braved the September heat outside to enjoy the heat inside at the 2015 Scottsdale Spice Culinary Festival. Returning to The Venue in Downtown Scottsdale on Sat., Sept. 12, Scottsdale Spice featured dishes served up by some of the Valley’s hottest chefs. The culinary all-stars competed in the mild, medium, hot and nuclear categories for a coveted Spicy Award. Scottsdale Spice judges selected Chef Dujardin Hernandez of Papi Chulo’s Mexican Grill & Cantina in Scottsdale to compete in the World Food Championships in November in Kissimmee, Fla., for cash and prizes. Chef Hernandez’s Pork Pozole won the judges’ hearts — and palates — not only for its heat but also for its incredible flavors of corn, red chiles and pork. For the second year, Hula’s Modern Tiki took home the honors for the Overall Scottsdale Spicy Favorite, with a Spicy Thai Chicken Salad Bowl and cocktail pairing. The tongue-searing “XXX” Tomato Tapenade by Chef John’s Events & Catering received the award in the Nuclear Heat category. Valley favorite Macayo’s received the honors in the Medium Heat category with its Green Chile Pork Stew, accented with fire-roasted poblano peppers, tomatillos and jalapenos.
2 - SCOTTSDALECHAMBER.COM
The winner in the Mild Heat division was Craft 64 and its chefs’ interpretation of a Spanish Pizza, featuring chorizo, Spanish olives, Kalamata olives and diced almonds. Event-goers also enjoyed wine, beer and cocktail samples along with the sizzling sounds of Sapphire Sky.
Chef Dujardin Hernandez of Papi Chulo’s Mexican Grill & Cantina in Scottsdale, (center) received the ‘Golden Ticket’ to compete at the World Culinary Championships in Florida. Also pictured are the event judges, from left, Suzanne Clark of ‘Arizona Midday’; Niki D’Andrea, managing editor of Phoenix Magazine; Rhea Sommer, blogger for ‘Hot Dog It’s a Food Blog’; and Chef Anthony Serrano of El Palacio Restaurant & Cantina and last year’s Golden Ticket winner.
Photos courtesy of PeterJordanPhoto.com
The 2015 Scottsdale Spice Culinary Festival gets ready to light up The Venue in Old Town Scottsdale
“We can’t thank all our chefs and sponsors enough for making our second Scottsdale Culinary Spice Festival a success,” said Anna Mineer, vice president of business development for the Scottsdale Area Chamber. This year’s judges were Suzanne Clark, 2014 World Pasta Champion and a regular guest on “Arizona Midday”; Niki D’Andrea, managing editor of Phoenix Magazine; Rhea Sommer, local food blogger at “Hot Dog It’s a Food Blog” and contributor at AZFoodie.com; and Chef Anthony Serrano, 2014 Scottsdale Spice champion and executive chef of El Palacio Restaurant & Cantina. The competitors and vendors of the 2015 Spice Festival included Angry Crab Shack, Burger n’ Fries, Chef John’s Catering & Events, Craft 64, Crust, Brat Haus, Honey Bear’s BBQ, Hula’s Modern Tiki, MAD Greens, Papi Chulo’s, Rubio’s Fresh Mexican Grill, Thirsty Lion Pub & Grill, SanTan Brewing Co., Starfire Golf Club, Karma Juice, Sonoran Spice Company, Nespresso, Rocket Fizz Soda Pop & Candy Shop, and Two Brothers Artisan Brewing. 2015 Scottsdale Spice sponsors included Comerica Bank, Cox Communications, Discount Cab, VOSS Water, Hensley Beverage, SanTan Brewing Company, Sonoran Spice, The Venue of Scottsdale, Cuisine of Arizona, and Yelp Phoenix. Additional support was provided by Shield Security & Patrol and Peter Jordan Photography Inc.
Educate your market with Friday Forums Friday Forums are an excellent way to host educational marketing events to other Scottsdale Area Chamber members and the general public. Never sales pitches, Friday Forums provide a real opportunity to promote what your company does best by sharing information and insights that attendees can take away and put into practice at their own businesses. Friday Forums are available to chamber members at the Classic level and above — one of the best benefits available to those at higher membership levels. While hosts are responsible for all content, marketing and promotion, and any food and beverages, the chamber provides additional promotion for Friday Forums on its online calendar and through its weekly member communications. The chamber also donates its boardroom, seating 20, for Friday Forums — you don’t have to search or rent space for your program. It all starts by filling out an application, available from the chamber, detailing what your presentation will cover. Once you’ve completed your application, the chamber will present it to the Membership Value Added Council (MVAC), which will determine if the proposed Friday Forum will provide a benefit to your fellow members. The chamber will then contact you to schedule your Forum or let you know if the MVAC requires more information. Applications are available online at scottsdalechamber.com/edu-events/friday-forum/. For more information or to return completed applications, contact Anna Mineer at amineer@scottsdalechamber.com or 480-355-2708.
Women in Leadership February 11, 2016 11:30 a.m. – 1:30 p.m. Silverleaf Club, DC Ranch, Scottsdale Get ready to “spring” into action at the 2016 Women in Leadership luncheon. As the Scottsdale Area Chamber’s first major event of the year, it is a great way to take charge of a new year and new season for yourself — and your business. The Women in Leadership luncheon will be held this year from 11 a.m. to 1:30 p.m., on Thurs., Feb. 11, 2016, at the Silverleaf Club in DC Ranch, one of the most elite event venues in the Valley. Unlike many other women’s events, we skip chair massages and makeovers for programming of substance. Women in Leadership is an inspirational, “no fluff” educational event about managing work and life while excelling in the professional world. For example, last year’s speaker was Flora Jessop, an advocate against child abuse in the Fundamentalist Church of Jesus Christ of Latter Day Saints. Plans are already underway to bring another exciting speaker to the Valley. Great sponsorship opportunities are also available. For more information, contact Anna Mineer at 480-355-2708 or amineer@scottsdalechamber.com.
Scottsdale Area Chamber Annual Golf Tournament April 29, 2016 1 p.m. – 7 p.m. McCormick Ranch Golf Club, Scottsdale One of the chamber’s most popular events, the 2016 Scottsdale Area Chamber Open golf tournament is scheduled for Fri., April 29, at McCormick Ranch Golf Club. The Desmond Muirhead-designed course plays an average of more than 6,000 yards, and attracts golfers from some of the Valley’s most influential companies. Our tournament gives you an opportunity to play a great course and enjoy businessto-business networking at its best. Limited to 120 players, the Chamber Open is a great way to entertain your clients, enjoy the beautiful weather and play on one of the Valley’s best golf courses. Get targeted exposure and engage with members and prospects in a relaxed and fun environment. Registration: $175 per player; $600 per foursome; $1,000 per Corporate Challenge foursome. Additional sponsorship opportunities are available. Contact Kelly McCoy at kmccoy@ scottsdalechamber.com or 480-355-2712 for more information.
Plan now for 2016 sponsorships Becoming a sponsor for one of the Scottsdale Area Chamber’s many events is one of the easiest — and most fun! — ways to create company exposure. With opportunities for every budget, a sponsorship is a simple but powerful way to get your company recognized. Our annual Signature events include: • Women in Leadership (February) • Scottsdale Forward (March) • Chamber Annual Golf Tournament (April) • History Hall of Fame (May) • Business Volunteer Awards (June) • Sterling Awards (November) Title sponsorships for the chamber’s Signature events require a higher level of commitment, but provide the best opportunity to build brand awareness for your company. While the benefits vary somewhat by event and investment level, a title sponsorship may include: • Company name and logo in all event marketing promotions, including advertisements, website event calendar and weekly emails sent to all chamber members; • Company name and logo in event programs and/or signage; • Company mention during emcee remarks during the event; and • Company mention in chamber articles such as In Business Magazine and local news coverage. Some Signature event sponsorships are well within reach of even the smallest companies. Consider sponsoring a table or half-table. Maybe your company could support an event through a commitment toward table décor, pre-event reception, champagne toast, hors d’oeuvres or nametags. The chamber’s sales team can create a sponsorship package tailored to your needs and budget. Budget-friendly sponsorship opportunities are available almost every week. A few other options include hosting an AM Connect, PM Connect, or Meet Your Neighbors networking event. Whatever your company size or budget, there is a sponsorship option available for you, with rewards continuing well beyond the event. For more information on sponsorships, contact the chamber at 480-355-2700.
SCOTTSDALE@WORK - 3
The Scottsdale Area Chamber celebrates the Sterling Awards in a big way. Last year’s ‘Avengers’ theme had former chamber CEO Rick Kidder (at podium) in the guise of ‘Rick Nick Fury.’
The ‘Force’ was with Sterling Award winners The Scottsdale Area Chamber of Commerce held an out-of-this-world celebration for its 30th Annual Sterling Awards on Fri., Nov. 20, at the Embassy Suites by Hilton Scottsdale. Several hundred attendees joined the chamber in recognizing three businesses and one nonprofit organization for their role in making Scottsdale a stellar place to work, live and play. The four honoree companies were selected from among 12 finalists for the coveted award.
The Sterling Award for Micro Business recognizes an emerging business with 10 or fewer employees that exhibits success through innovation, creativity and collaboration. Finalists for the Micro Business Award, sponsored by Prestige Cleaners, included MoneyRadio 1510AM/99.3FM and Acme Locksmith.
Micro Business Sterling Award Winner — Splash Printing & Marketing
With its popular cow-sponsored “Eat Mor Chikin” slogan, Chick-fil-A creates chicken sandwiches and other quick-service entrées in a fun and friendly family atmosphere. Chick-fil-A places community involvement and scholarships as an integral part of its mission. The Sterling Award for Small Business honors a small company, with between 11 and 99 employees, that demonstrates innovation, quality, professionalism and a commitment to the community. The other finalists for the Small Business Award were Caliber Wealth Development and Phoenix Architecture. This award was sponsored by Cox Media.
Big Business Sterling Award Winner — McKesson Specialty Health
Last year’s Sterling Awards theme of superheroes celebrated Scottsdale Chamber member businesses that were superheroes to their customers, employees and the community.
4 - SCOTTSDALECHAMBER.COM
McKesson Specialty Health provides technology and business services to healthcare organizations, with a focus on the community. McKesson has a broad program of social responsibility engagement, including employee volunteer programs, environmental sustainability initiatives and diversity inclusion. The Sterling Award for Big Business singles out a company with 100 or more employees that makes a significant impact on the lives of its employees and the economic fabric of the community.
Photos courtesy of Sergio Dabdoub Photography
Splash Printing & Marketing provides printing, graphic design and marketing services throughout the Valley and beyond. Splash donates thousands of dollars each year to charitable causes and its employees donate their time at nonprofit organizations as well.
Small Business Sterling Award Winner — Chick-fil-A, Raintree Drive & 101 FSU
The Big Business Award finalists included V.I.P. Mortgage Inc., and the Tournament Players Club Scottsdale. Cox Business sponsored this award.
Non-Profit Sterling Award Winner — Franciscan Renewal Center The Franciscan Renewal Center provides spiritual growth and wellness retreats, gathering space for nonprofit groups, licensed behavioral health counseling and spiritual direction. The Center also has more than 50 volunteer ministries giving aid to the poor or vulnerable, empowering individuals to improve their circumstances, and building community fellowship. This award recognizes a charitable organization that contributes to the social, cultural and educational well-being of its constituents. Other finalists for the Non-Profit Award, sponsored by APS, were Shoebox Ministry and Playworks Phoenix.
Not such a long time ago … Never a “rubber chicken” event, this year’s Sterling Awards went to a galaxy far, far away with a “Star Wars” theme. The audience was mesmerized by spectacular special effects and stirring music. “The honorees of the 2015 Sterling Awards represent an incredibly diverse and accomplished group of companies,” said Mark Hiegel, president and CEO of the Scottsdale Area Chamber of Commerce. “All those who participated — finalists, honorees, judges and sponsors — ought to congratulate themselves for their hard work. They are all deserving of the chamber’s recognition.”
Tough award, tougher competition The Sterling Awards are open only to businesses and nonprofits that are members of the Scottsdale Area Chamber. The awards are among some of the Valley’s most coveted business awards because of the rigorous application, judging and selection process. Those that do receive an award truly excel 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.
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/ ).
INFOCUS: GRAND OPENINGS!
Le Macaron Scottsdale Quarter
EVO (Photo by Sergio Dabdoub)
Ventura Grill (Photo by Sergio Dabdoub)
Togo’s Sandwiches (Photo by Peter Jordan)
6 - SCOTTSDALECHAMBER.COM
MAD Greens
Amazing Lash Studios (photo by Peter Jordan)
El Dorado Scottsdale Apartments (Photo by Peter Jordan)
Aridus Wine Company (Photo by Peter Jordan)
Genesis Luxury Group (Photo by Peter Jordan)
InEight Inc. (Photo by Sergio Dabdoub)
Quicken Loans (Photo by Sergio Dabdoub)
Amber Creek Inn (Photo by Peter Jordan)
Regus Group North Scottsdale (Photo by Peter Jordan)
Papa Murphy’s Take N’ Bake Pizza
YogaFit Scottsdale OSR Physical Therapy at The Ice Den (Photo by Sergio Dabdoub)
Rocket Fizz Soda Pop & Candy Shop
Pie 5 Pizza Co.
Vidogi Salon (Photo by Peter Jordan)
BOARD OF DIRECTORS EXECUTIVE COMMITTEE BOARD CHAIR Bryce Lloyd, FirstBank
MARK HIEGEL PRESIDENT & CEO Scottsdale Area Chamber of Commerce mhiegel@scottsdalechamber.com 7501 E. McCormick Pkwy, Suite 202-N Scottsdale, AZ 85258 Phone 480.355.2700 Fax 480.355.2710 www.scottsdalechamber.com
CHAIR-ELECT PUBLIC POLICY ADVISORY COUNCIL (PPAC) Steve Helm, Scottsdale Fashion Square (Retired) TREASURER Geoff Beer, Crescent Bay Holdings PARTNER COUNCIL Bill Smith, Mountain States Employers Council
AT-LARGE MEMBERS
ECONOMIC DEVELOPMENT ADVISORY COUNCIL (EDAC) Doreen Reinke, Scottsdale Insurance Company
Kurt Brueckner, Titus Brueckner & Levine PLC
MEMBERSHIP VALUE ADVISORY COUNCIL (MVAC) Michele Greenberg, Comerica Wealth Management
Jan Gehler, Scottsdale Community College
EMERGING ISSUES Bill Heckman Heckman Marketing Associates Inc.
Kurt Zitzer, Meagher & Geer PLLP
Dale Fingersh, The Right Direction
Mark Hiegel, Scottsdale Area Chamber Eric Larson, AVB Development Partners
© 2015 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.
SCOTTSDALE@WORK - 7
Breakfast with a Side of … Startups A look inside the world of an entrepreneur
“The difference between those that succeed and those that fail is not smarts nor having the best business idea, but is often perseverance,” said La Loggia. We often see entrepreneurs as courageous, even brash, but that’s not always the case. A new business venture is risky by definition. That stress can inhibit the productivity, and even the satisfaction of employees. “The best employee motivator I have is to try and lessen the fear level,” said La Loggia. Perhaps the most fundamental question posed to the group was why develop a startup at all. “As a kid, I always wanted to build things,” said Larsen. “Now I build businesses. I like creating something big and worthwhile.” For Shojaee, creation was also fundamental, but financial gain was also crucial. “I enjoy creating something that didn’t exist before … and something people agree with the idea enough to pay for it.” The panelists also discussed where Greater Phoenix sits on the entrepreneurial map.
Bob La Loggia (second from left) discusses what it’s like to launch a startup, along with entrepreneurs, from left, Wiley Larsen, Hamid Shojaee and Gabe Gasca. The event was moderated by David Cogan of Eliances (standing).
“We’re starting to share more regionally,” said Gasca. “Previously, the startup ecosystem was far more disjointed.” “The most critical piece is communication, getting all the entities to talk to each other,” added La Loggia. “If you get good people to collaborate, good things happen.” Breakfast with a Side of … Startups was held at the DoubleTree Paradise Valley Resort in Scottsdale.
The latest business news on inbusinessmag.com and on twitter @inbusinessmag
Follow us to build your small business
/inbusinessmag 8 - SCOTTSDALECHAMBER.COM
@inbusinessmag
Photo courtesy of Cindy Kibbe
The Scottsdale Area Chamber’s popular “Breakfast with a Side of …” series recently featured a panel of entrepreneurs discussing the startup climate of Greater Phoenix. The Aug. 12 event featured Wiley Larsen, program manager at ASU’s SkySong; Bob La Loggia, CEO of appointment scheduling solution company AppointmentPlus; Hamid Shojaee, founder of software design platform Axosoft and CEO of Pure Chat, an intuitive messaging tool for websites; and tech marketing executive Gabe Gasca. David Cogan, managing partner for the entrepreneur roundtable forum Eliances, served as moderator. The panelists gave some fascinating insights into the region’s startup culture. “Many startups make their sales force among the first hires, but that doesn’t always work,” said La Loggia. “Business operations can actually be more important in the early days of a venture.” The failure rate of startups is high — as much as 95 percent end up shuttering within a few years.
Celebrating 30 years of serving the women business owners of Phoenix
Winter 2015 • nawbophx.org
Message from the President 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. We host networking and education events throughout the valley each month, open to both members and guests. Check out our calendar at NAWBOphx.org and join us! 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
nawbophx.org
As president of NAWBO Phoenix and regional center director for the Maricopa Small Business Development Center, not to mention all my personal roles, I’m busy. No busier than you are. And this is certainly a busy time of year — wrapping up projects (and gifts!), giving and attending numerous holiday gatherings, rushing to get it all done by December 25 or December 31. And there are three more tasks you need to complete before year end. But don’t worry; I promise, all three can take less than 30 minutes. Celebrate your successes — both personally and professionally. Did you start or stick with your exercise program? Hire great team members (I did this!). Grow your business by 20 percent (or even 5 percent)? Jot down at least five things that you are proud to have accomplished this year. (10 minutes maximum) Visualize what’s next — but don’t worry about planning, yet! When you reflect on your success, what do you want to make sure you have more of in 2016? More time for business building? Taking more time for yourself (this is mine)? Supporting a worthy cause? The next couple of weeks may be too hectic to revisit your business plan or tweak your marketing plan, but do schedule a time in January to review this year and establish quantifiable objectives for 2016 (if you haven’t already done so). (10 minutes maximum) Express your gratitude — and include your beloved clients. Of course you appreciate their business, but did you learn some valuable lessons from working with them that are perhaps even more valuable? I sure have! Let them know the impact these important people have had on you. The best way — send a hand-written note for your holiday greetings. Second best — pick up the phone and call them. (10 minutes minimum) One more thing: Check out NAWBO (www.nawbophx.org) — the only national organization that is dedicated to serving the needs of women business owners. We have warm and inviting events and helpful resources, and are strong advocates for issues affecting business owners. And we aren’t just for women; men are most welcome!
Nancy Sanders 2015-2016 President NAWBO Phoenix Chapter Maricopa Small Business Development Center Owner 602-476-4509 nancy@galaxyconsultingservices.com Years in Business: Join NAWBO:
20 2008
Wishing you every blessing, Nancy
1
NAWBO NEWS
Ask Yourself These 3 Key Questions to Avoid Financial Ruin By Cindy Gordon
Small-business owners are fantastic in certain areas of their business. There are those who love getting and maintaining customers, those who are fantastic innovating new ideas, and those who are all about operations. Regardless of your strengths and passion, it is imperative to have some understanding of your financial information. Looking at your financial statements shouldn’t be a once-a-year obligation nor should your financial health be the responsibility of your accountant. You don’t have to be a CPA, MBA or NERD to understand some key components of your financial information. I’m not telling you this because I’m a CPA and NERD. The fact is, as a business owner you have to constantly monitor your numbers so you’re not left taking money from your personal account to fund the business. I’ve seen it hundreds of time! Keeping on top of the information you’ll get from asking yourself these three key questions will help ensure the company is funding your personal bank account and not the other way around.
1. Am I charging enough for my product or service to cover my expenses and provide a profit?
Business owners are too quick to look at their sales revenues to gauge success. Sales is not as relevant as you might think. You have to start thinking in terms of profit. Gross profit: Your gross profit is the amount of money you make from selling your product or service after covering the costs that are specifically incurred to make the product or provide the service. Note: if you provide a service, the cost is the value of the time you and your employees spent to provide that service. You need to include a fair and reasonable salary for your time, too!
2
NAWBO NEWS
Sales for the month – all costs of buying or manufacturing your products sold that month = gross profit. (Common product costs include materials, labor and benefits, factory rent, utilities, and packaging goods. Your gross profit should be at least 40 percent of the sales price. Gross profit / sales x 100 = 40% or more Net Profit: Your net profit is the residual you’ve made after subtracting all of your remaining monthly expenses. Monthly expenses (or overhead costs) include things like marketing, salaries not already considered, office rent, utilities, automobile costs, finance charges, etc. Your monthly expenses should take into account everything incurred — whether you paid for it that month or not. Gross profit – monthly expenses = net profit Your aim should be to ensure your net profit is always positive. A negative net profit (referred to as net loss) will signify: • Business has slowed down and you need to assess why, • Your sales price is too low charging enough for your product or service, or • Your overhead costs are too high. Without having this information, you can’t make proper business decisions to keep your company afloat. Net profit is not extra money for the owner to put in his or her pocket! Profits should be put aside to invest in the company’s growth, or to pay for costs in the event business slows.
2. Are you spending too much on your overhead?
As previously mentioned, overhead costs are expenditures other than those incurred to build your product or perform your service. For example, office space and advertising and marketing costs are all part of overhead. How much you spend on overhead should be dependent on how much cash your company is generating (note – I said “cash,” not “revenue”! Revenues don’t pay the bills, but cash does.) It is always important to assess every expenditure as follows: • Is this going to generate additional revenues for the company? • Is this an immediate priority to my business? You may think that spending money on an additional salesperson is a high priority because it will help generate new business. However, if you don’t first assess whether your company can handle the additional business, the additional overhead may cost you more than you think (e.g., delivery delays, quality control issues, customer dissatisfaction).
3. Do I have enough cash to pay my bills on time?
Profitable companies have gone bankrupt because they didn’t have the necessary cash to pay their creditors! Your income statement may tell you the company is profitable, but it’s essential to ensure your customers are paying you so can you pay your suppliers. As the business owner, it is your responsibility to ensure there is enough cash on hand. This requires you to develop the habit of monitoring your cash position on a daily basis. Right now: Do you know how much money there is in the company’s bank account? o you know how much money your customers owe you and when they D will be paying? o you know how much you have to pay your creditors and employees this D week and whether you have the cash on hand to cover these payments? This information should be part of your DNA! It should not be the responsibility of your bookkeeper to manage the company’s cash! While the bookkeeper’s job responsibilities include collecting receivables and paying the bills, overseeing the cash position will help you keep an eye on his or her endeavors while protecting the security of the company. You monitor the progress of your sales team members by looking at the daily sales numbers. Monitoring your daily cash balance is keeping your finger on the pulse of your accounting team. There are only so many hours in a day and, as a small-business owner, you have so many responsibilities. However the price you may pay for not knowing some key financial information may be more than your business can afford! Cindy Gordon, CPA, CA (Canada license only), CPCC, hosts and facilitates peer support groups to help entrepreneurs build a strong business through the lessons learned and feedback of others who have had the same challenges and opportunities. To see how being part of a peer group can take your business to the next level more effectively and profitably, go to www.cultureshockcoaching.com and register for an upcoming demonstration now.
nawbophx.org
Resolutions You Can Keep By Margo Brown
Many will breathe a sigh of relief after the hectic holiday season is over, while others will feel melancholy that it all came and went so quickly. But in most cases, people will greet the new year by buckling down and becoming re-inspired to set some new goals and create resolutions they can keep. Here are some tips for accomplishing your goals once and for all.
Identify your priorities.
You can’t do everything and you can’t focus on what everyone else is doing. What are the most important things to you right now? Others may be jumping on the fitness train, and that may be important to you, too, but is it most important? Many people have wonderful intentions to get things done, but then quickly fail due to lack of focus. Paring down a list and identifying three major things you’d like to change is a good way to get focused and actually accomplish something that is important to you. Once you have identified your priorities, set absolute goals and make a list of real action steps to make your way toward achieving those goals.
Plan to achieve.
Set aside specific times to work on your goal in order to reach it. For example, if your goal is to reach out to your customers proactively, plan ways to do that quarterly. Plan specific times to achieve your goals in your calendar, and keep those appointments with yourself as you would any appointment. Like “pay yourself first” — plan yourself first.
Enroll others.
W. Clement Stone said it well: “Tell everyone what you want to do and someone will want to help you do it.” Get people enrolled in what you’re doing. Find a friend who has similar goals and make a pact to help each other. When things get tough, you can help each other get back on track. Telling friends and family about your goals also helps to solidify your commitment and compels you to keep it, especially when they ask you how you’re doing with whatever it is you are trying to accomplish! Continued on Pg. 5
3
NAWBO NEWS
3 Marketing Strategies to Stay Ahead of the Competition in 2016 By Elyse Meyer
Marketing is a constantly evolving part of every business, and the marketing function is continually adjusting and reacting to changes in technology that will help businesses better communicate with prospects and customers. While digital marketing has gone through a substantial transformation in the last few years, the technology that sparked these changes is growing at an even faster pace. So what does this change in marketing mean for businesses that are already strategizing for 2016? To help you take your marketing strategy to the next level, you need to look beyond the usual channels to stay ahead of the curve and ahead of the competition. To help you in your quest for marketing success in 2016, here are three strategies that are going to be more important than ever to consider for next year.
1. Relationship Marketing
What is relationship marketing and how it is helpful? The goal of relationship marketing is to focus on building stronger loyalty and long-term customer engagement rather than short-term customer acquisition. This helps companies develop strong, emotional connections that drive word-of-mouth advertising. After all, we all know that word-of-mouth is going to always be your highest lead generating and, most importantly, your highest converting lead source. To do this, you need to leverage your own customer and prospect data. In 2016 and beyond, personalized, data-driven marketing will become increasingly important. Intrusive, massmarketing approaches will continue to become a thing of the past. One example of how you can adapt your marketing efforts to coincide with your data is to communicate with customers and prospects on the device that you know is most comfortable for them. As smartphone adoption continues to rise with an estimated 2 billion consumers worldwide expected to own a smartphone by 2016, there is an immense opportunity for brands to connect with their prospects and customers on the
4
NAWBO NEWS
devices that people are using more frequently than ever before. Another example is to make your website dynamic. Did you know that you can actually adapt your website content, images, calls-toaction and more based on the data you have on the individual user in your database? Your website is no longer just a static place on the Internet where people can find your information. Your website can actually reconvert your visitors for you because it will be smart enough to know how each person has interacted on your website before. This is the next phase of your website, and something that consumers are coming to expect.
2. Marketing Automation
Marketing automation is not something new, but is surely something that is under-utilized. Did you know that only 37 percent of B2B marketers are using marketing automation? As marketers today are spending at least 50 percent of their time on content, content and more content, companies are quickly realizing that they need
to find strategic ways to automate marketing, sales, operations and more. If used the right way, marketing automation can truly act as an extension of your sales team. One example that we’ve seen is the experience of one of our B2B clients, which had a 5.5-month sales process from the time when a lead expressed interest to the time they become a customer. Through marketing automation, and delivering the right content to the right person when they are seeking that information, our client was able to decrease the sales and conversion timeline by more than three months! Using a marketing automation that integrates with your sales platform/CRM and other digital tools makes it easier to schedule emails, segment contacts, automate social media, manage your content and track the lifecycle of customers in your marketing and sales funnel. With even more focus on marketing to deliver results, marketing departments around the globe should be really evaluating their team’s skills, noting the gaps and defining a
Continued from Pg. 3
robust automation strategy to help sales through engaging prospects, qualifying leads and shortening the overall sales cycle.
3. Location-Based Marketing
What better way to engage a prospect than targeting users at their point of engagement? Location-based marketing technology, such as iBeacons, help make this entirely possible. If you have a retail location, or if you frequently host or attend events, this is something you need to consider! Let’s explore the technology. iBeacons are small transmitters that use Bluetooth Low Energy to detect devices that are nearby. These iBeacons can be housed in a retail location, a point-of-sale display and more. In addition, iBeacons can also help event attendees make the most of conferences through sign-up and engagement in sessions and at trade show booths! Now to tie in the marketing automation piece mentioned earlier, iBeacons also have a LinkedIn integration that can actually give you the opportunity to request a connection
and send a message, reducing the need for unnecessary emails. (I’m sure we all agree we could probably use fewer emails in our inbox!) It is all about location with this targeted marketing approach. Take advantage of locationbased information you have on users to help you connect with them at exactly the right time. This may feel slightly intrusive at first, but a more targeted approach is welcomed by individuals to help filter through the clutter of unwanted, massmarketing messages. These are just a few of the many new marketing technologies and trends we will be seeing in 2016. As marketing continues to change and adapt to the new technologies available and the amount of data you have on your prospects and customers, it’s critical to stay updated on the latest marketing strategies so you can continue to stay ahead of your competition. Elyse Meyer is the founder of Prism Global Marketing Solutions (www.prismglobalmarketing.com), a fullservice inbound marketing agency and HubSpot Gold Partner based in Phoenix.
Don’t give up.
On those days when you’re tempted to give up out of frustration, acknowledge all the steps you’ve taken to get to your goal. Reflect on the positive feelings associated with accomplishing the small steps leading to your goal; this will inspire you to keep on working.
Invest in support.
If you need help, reach out to find the support that you need. If you really want to get fit this time around, consider hiring a personal trainer. If you truly want to get your personal or business life in order, hire a professional organizer. Acknowledging that you can’t always accomplish every detail on your own is often one of the most critical steps to finally achieving your goals once and for all. Margo Brown is a productivity coach and professional organizer with Wave Productivity. She works with entrepreneurs, small-business owners and business professionals to help them get more focused, organized and productive in their workplace. She serves Phoenix and the surrounding area. If you want to get more organized in your office, call 602-677-8275 or email margo@ waveproductivity.com.
Master Your Social Position!
Social Media that gets noticed, backed by the credibility of In Business Magazine… Marketing Automation | Social Media | Digital Products www.inbusinessmag.com 480.588.9505 nawbophx.org
5
NAWBO NEWS
Top 10 New Year’s Resolutions for Smart Tradeshow and Consumer Show Exhibitors By Susan Ratliff
The start of a new show season is the perfect time to sharpen your image, prepare your booth staff, freshen up your exhibit and eliminate waste. Adopt these 10 simple and sensible resolutions to maximize success at every event you exhibit at in the new year. 1. I will refrain from staffing my booth with too many people. Attendees may find it too intimidating to approach your exhibit if you have too many representatives hovering on the edge of your booth space. A good rule of thumb would be to limit it to two people per 10x10 space who present welcoming smiles and inviting greetings that encourage verbal engagement from passersby. 2. I promise to create graphic messages that describe the benefits our company offers. While the long list of services and products you provide are important, the critical message to convey to your target audience from the text and photos on your graphics is that you understand their problems, feel their pain and, most importantly, can deliver the solutions they need. For every feature you list, include the benefit it provides. Better yet, save the long list of features for your brochure. Focus your message entirely on the benefits that are most important to your customer. Benefits are what can differentiate you from your competition. 3. I will never place another bowl of candy in my booth again. Sure, candy sounds like a smart idea, but unless it is Halloween or you actually sell candy, it makes no sense having it on your counter. There has never been a time that I walked by and grabbed a handful of chocolate that anyone engaged me or asked a qualifying question. Find a more strategic promotion to draw customers to your booth. Work on an effective greeting to engage them in conversation when they are in front of your space. 4. I will stop randomly purchasing pens, mouse pads, key chains and other irrelevant give-a-ways. A clever freebee can create buzz throughout the exhibit hall if it makes people smile,
6
NAWBO NEWS
compliments a theme, reinforces a message or reminds prospects of your business. Relevant contact information on a fly swatter for a pest control business, a deck of cards for a casino theme or a wireless mouse for a technology company makes a memorable connection. Take time to brainstorm ideas, then use your budget wisely by selecting the perfect advertising specialty that will remind customers of your company, products, message and theme. 5. Brochures, flyers and handouts will no longer lay flat on my table. Employ vertical merchandising by elevating literature at various heights. This creates visual interest and brings items closer to eye level, making it easier for the prospect to access them. Get creative with your merchandising. A variety of acrylic risers and literature holders is readily available, but a unique container, bowl or basket is a more attractive and clever way to showcase what you offer. 6. I will always maximize the effectiveness of a corner booth space. A corner booth space is prime real estate, very desirable and often costs more than an inline booth location. If you get a corner spot, remove the side rail next to the open aisle so you have two sides of entry into your booth. Just slip out the pole and drape and place it in the aisle during set-up, and the decorator will take it away. 7. I pledge to set up and evaluate my display at least two months before every show. Millions of dollars are wasted by thousands of companies every year because they wait until the last minute to prepare their displays for the show. When graphics are designed in a rush, parts are ordered too late or products are shipped at the last minute, the extra charges required to meet your show deadlines can be significant. Months before the show, set up the display and evaluate it together with the sales staff. How old is your display? Does it need updating or is it ready for the trash bin? Are your graphics still relevant? Is the hardware in need of repair? Are the lights working? Do your existing properties still accommodate
the needs of the booth staff? By setting up your exhibit and looking it over before it ships to the show, you will have plenty of time to clean, add, change, improve or eliminate what is necessary without rush charges or extra shipping costs. 8. I vow to maintain an organized, uncluttered exhibit space. Have you heard the saying, “Trying to put 50 pounds of %$*&! in a five-pound bag?” That describes many exhibits I’ve seen. Why would a company spend thousands of dollars creating a beautiful environment, only to block the display and graphics from the customer’s view with boxes, counters, products or people? I know it is tempting to bring everything you sell to the show, but even if you are retailing merchandise, don’t do it. Showcase only an attractive variety of styles, colors and models for viewing, and use collateral, technology, graphics or portfolios to show off or explain the rest. 9. All chairs will be removed from my booth from this day forward. Nothing makes me rush past an exhibit faster than seeing your sales representatives sitting behind a table looking restless and bored or, worse yet, in deep conversation. Your team should stand up, be attentive and greet everyone passing by. When fatigue sets in or a break is needed, just leave the booth. 10. I will not resort to purchasing cheap graphics or display materials to represent my company. Image is everything on the show floor. You have only one chance to show attendees that
you respect your company brand, believe you have value to offer, and will be around a long time to service and support your customers. Hand-written signs, graphics printed from your computer, cardboard displays from the office supply store, cheap plastic exhibits from the school supplies catalog or used products from unknown manufacturers on the Internet do not convey an image of success or longevity. Purchase your display materials and graphics from a reputable exhibit company that sells commercial-grade exhibit structures and provides professional guidance and graphic design services so your company can shine at the show and project an image you can be proud of. Susan Ratliff is The Exhibit Expert. A nationally recognized authority on tradeshows and event marketing, Susan has 25 years of experience on the show floor, is a published author, respected speaker, event producer and founder of an award-winning portable display company, Susan Ratliff Presents (www.SusanRatliffPresents.com). Contact Susan to speak to your group or for a consultation on increasing profits at your next show at Susan@SusanRatliff.com or 602-828-1177.
Use Publicity to Boost Visibility and Online Page Ranking By Laurie W. Anderson
Publicity helps create awareness of your products or services while positioning you as an expert in your industry. It also provides valuable third-party endorsement and credibility. The value of publicity can be extended online by using a link to the publicity in your social media and in email marketing programs. Did you know that publicity is also a good SEO (Search Engine Optimization) tool? As you know, it’s not enough to just have a good website. You need to provide a link to your website in your various marketing tools. Online articles about your company picked up in newswires and published in third-party content should always link back to your website. This is an authoritative link, which can significantly improve your search engine page ranking. To generate publicity, news releases can be sent directly to media outlets that reach your key target audiences. However, even if your story doesn’t appear in major news outlets, news releases can be sent to news distribution sites
(fee sites such as PR Newswire [prnewswire.com] or Business Wire [businesswire.com]) or free sites (such as newsvine.com or prlog.org). While the paid services have more clout, publication of news on any of these sites can generate traffic, readership and important links back to your websites. Recently, a commercial janitorial service company wanted to improve its ranking on search engines, especially for its new ceiling cleaning service. We wrote several articles about the new service that were published in local business media outlets online and restaurant trade publications online. The embedded links from the articles back to the company’s website proved to be instrumental in moving the company to the first page in searches for commercial cleaning and ceiling cleaning services. Laurie W. Anderson is co-owner of Cactus Creative, a traditional and digital marketing firm. For more information about how publicity can help your business, visit www.cactuscreative.net/layout/pr-marketing.
6_13013
75x4.875
Put your business on the road to sweet success
4C
Apply for a Wells Fargo Equipment Express® loan today Growing your business is how you’ll achieve the dreams you have for yourself and your family. Wells Fargo is here to help. Our Equipment Express loan is a flexible way to purchase the new or used vehicles or equipment you need to move your business forward. Stop by or call and speak to your banker today. Finance cars, trucks, trailers, commercial vehicles, or other business equipment
© 2014 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (1211586_13013)
nawbophx.org
7
NAWBO NEWS
NAWBO PHOENIX
How to Create Lasting Value from Your Content Investment in 2016 and Beyond By Sara Korn
We live in an information-driven economy. Creating content — the right content, on a regular basis — is essential. Doing so can also get expensive, but you can’t afford to be left behind, so how do you keep up and still stay on budget? Here’s how you can maximize your content investment so you can do more with less.
1. Create evergreen content.
While there’s a place for content about the latest happenings, the content that will give you the most bang for your buck over time is content that remains useful over an extended period. What best practices and advice can you share with your audience that won’t go out of style? What aspects of your business do customers need to know about that aren’t likely to change? What questions do people ask you again and again?
2. Mine existing materials for hidden gems.
You may be sitting on a gold mine of content without even realizing it. Take an inventory of what content you have so far. Look across all platforms, at all your product content and sales and marketing materials. Identify copy, videos, images, handouts — anything you use to help your customers understand who you are and what you do, and resources that help them out. Then…
3. Repurpose and reuse.
Look at your most popular blog posts — why not turn them into an e-book? Sell the e-book and add a low-cost revenue stream. Or you can
8
NAWBO NEWS
use the e-book as a free giveaway to incentivize people to join your mailing list so you can get them into your sales pipeline. Or maybe you want to start speaking and teaching courses. Take that e-book (or series of blog posts, or newsletter articles …) and use them to create your course curriculum and handouts. Or go the opposite direction and turn your course handouts into an e-book. Have a client success story? Use that to write a blog post on how to implement your product/ service once people buy. Send it out to your email list and offer to provide a similar service for new clients. Use the story to train your team on how to help other clients achieve the same kind of success. Did you recently hire a professional to rewrite your website copy? Make the most of that investment by copying key sentences into your email campaigns, your sales collateral and your phone scripts. Update your 30-second commercial for greater impact at networking events. When you have great content, you can use it in multiple ways to market your products and services, or to create new products and services, or simply to build stronger relationships with clients. Write once, sell again and again. Start simple — identify one piece of content right now that you could use in multiple ways. Sara Korn is a marketing copywriter who specializes in crystal-clear messaging that gets the attention of the people who need you most. Connect with her at WriteSmithAZ.com.
Presidential Corporate Partners InfusionSoft SRP Western International University Executive Corporate Partners Allstate Insurance Border States Electric Cox Business GoDaddy Kolbe Corp Lewis Roca Rothgerber National Bank of Arizona Newtek Technology Services Southwest Gas Wells Fargo Business Corporate Partners Arizona Bank & Trust Bank of Arizona Benjamin Franklin Plumbing IKEA Business Microsoft Store Orchard Medical Consulting Phoenix Country Club Schmeiser, Olsen & Watts LLP UPS Strategic Media Partners Hollister Design Group Independent Talk 1100 KFNX MoneyRadio 1510 NetworkingPhoenix.com Splash Printing and Marketing Phoenix Business Journal Executive Media Partners Beaver Pond Enterprises, LLC CITY Sun Times InBusiness Magazine Infinite Reach Agency Community Alliance Partners Arizona Small Business Association Arizona Small Business Development Center Scottsdale Area Chamber of Commerce Visit Phoenix Women’s Enterprise Foundation
Top
Luxury
2016
Real Estate Agents Walt Danley Kevin Owens
• •
Cathy Hotchkiss Sandra L. Wilken
Presented By:
2016 RECIPIENT
Get to know the
BUSINESS SIDE OF COX. Cox Business has built a robust Arizona infrastructure with 23,000 miles of 99.99+% reliable Hybrid Fiber/Coax connecting to a fully redundant national backbone. Cisco-certified technicians on the ground and continuous monitoring from our Regional Operations Center resolve problems before they impact your enterprise. It’s a network designed to exceed business continuity requirements and service designed to exceed expectations. That’s how we do business.
623-594-5238 coxbusinessaz.com
Internet. Data. Phone.
REAL ESTATE AGENTS
Top
Luxury
Luxury Market Trending Flat
Luxury property sales peaked and future holds visions of minimal change by Mike Hunter In Arizona, real estate is a sector that can both be a barometer to our local economy and react to what is happening on the economic scene nationally. The luxury market has proven to be a tested barometer over time, and the recent statistics demonstrate that economic influence can have an effect. We worked with Walt Danley Realty and The Cromford Report to provide data of the market in the Northeast Valley to see trends and provide insight into the luxury market trends. Luxury properties span the Valley in gated and nongated communities, and include horse properties and golf properties. Looking at trends over a longer time frame, the luxury market in the Northeast Valley can be volatile when measured on a monthly basis. According to Walt Danley Realty’s most recent market summary, the 12-month moving average hit a low point on two occasions: in August 2011 and in February 2012, both around $219 per square foot. Over the past three years, we have seen a steady move upward to around $270 per square foot, which is an increase of 23 percent above the low point. However, September saw the largest monthly drop since 2011 and was followed by another decline in October. The six-month moving average hit its low point of $215 in December 2011 and peaked at $273 in February 2015. Since then, it has declined to $258. The three-month moving average moved from $213 in August 2011 to reach a peak of $275 in June 2015. Since then, it has fallen 9 percent to $250. The market has seen a strong upward trend in luxury home prices over the last three years. However, the trend broke during the third quarter of 2015 primarily due to a dramatic shift away from high-end multi-million dollar homes. Lower-end luxury homes are still selling well but, because they sell for a lower price per square foot, the short-term average has fallen to its lowest point since August 2013. Also in the Northeast Valley, the supply of active listings priced above $500,000 rose strongly during October, as it does most years. On
November 1, there were 2,815 offered for sale, up 15 percent from the 2,453 seen on October 1. This is a similar percentage rise to last year and leaves 7 percent more active inventory than on November 1, 2014. Ninety-seven percent of active listings are normal with 56 short sales and 15 lenderowned properties. Over the last month, the supply of homes rose the most (19 percent) between $1.5 million and $2 million, while the supply of homes between $600,000 and $800,000 rose the least (8 percent). Walt Danley Realty anticipates future sales by looking at homes under contract. The number of listings under contract was 357 as of November 1, which is down 43 from last month but 10 percent higher than November 1, 2014. The number of listings under contract rose between October and November last year, so this year’s decline is a sign of a weakening trend in demand. The segment between $500,000 and $800,000 is showing the strongest growth (up 30 percent from last year); in contrast, the range above $800,000 fell by 12 percent. Normal sales comprise 90 percent of luxury homes in escrow, up from 87 percent 12 months ago. The pricing for homes under contract was at a low point of $165 per square foot in September 2011. Up to the end of March 2014, it was advancing and reached a peak of $257. Between March 2014 and November 2015, it made no consistent moves in either direction but stood at $250 as of November 1, 2015. This decline is partly due to the high growth in homes under $1 million that are under contract, with no corresponding increase in the more expensive homes. The average under-contract price for normal listings is $257 per square foot. The average for (the very few) lender-owned homes is $211 per square foot, and short sales average $180 per square foot. The Cromford Report cromfordreport.com Walt Danley Realty waltdanley.com
About this section: Top
Luxury 2016
s Real Estate Agent kiss Walt Danley Kevin Owens
•
•
Cathy Hotch n Sandra L. Wilke
Presented By:
INBUSINESSMAG.COM
As part of our service to our readers, our editorial staff has invited
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 2016 RECIPIEN
DEC. 2015
55
Top
Luxury
REAL ESTATE AGENTS
Walt Danley
Profile Name: Walt Danley
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 more than $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.
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, Fountain Hills
On the Market Paradise Valley
North Scottsdale
4302 E. Upper Ridge Way
10343 E. Pinnacle Peak Dr.
Built to reflect the warmth and charm of the 1920s Spanish Colonial Revival style, this spectacular estate in Clearwater Hills enchants with its timeless elegance and exquisite craftsmanship.
Experience ultimate serenity on nearly eight acres of natural desert terrain. Perfect for entertaining, this beautiful Bill Tull adobe home affords sweeping mountain and city light views inside and out.
$6,500,000
$4,750,000
Arcadia (Phoenix)
Biltmore
5051 E. Lafayette Blvd.
3123 E. Ocotillo Rd.
This beautifully designed Hilker home encompasses every aspect of modern living. Recently renovated in 2015, the home blends an exquisite palette of both elegant and practical finishes.
This contemporary jewel is open and inviting with a wonderful location in Biltmore Mountain Estates. Enjoy mountain and city light views through walls of glass or from a spacious viewing deck.
$2,795,000
$1,595,000 ADVERTISING PROFILE
56
DEC. 2015
REAL ESTATE AGENTS
Cathy Hotchkiss
Top
Luxury
Profile Name: Cathy Hotchkiss
RE/MAX Platinum Living Selling real estate is not only Cathy’s job; it’s what she loves to do. Buying or selling a home is one of the most important decisions clients make, and she works as a tireless advocate for them while establishing long-term relationships built on care and trust. She prides herself with outstanding service, personal support, extreme knowledge of the current market conditions and strong negotiation skills to enable clients to make sound, timely, and secure decisions for their families. She has built a loyal clientele because she listens and understands what is necessary to achieve her client’s goals. Cathy’s partnership with Sport Star Relocation Arizona brings another personalized aspect to her business. The assistance she provides is invaluable to high-profile clients who require additional services beyond the realm of just selling homes. She ensures all business is conducted in a sophisticated, professional, and discreet manner, and strives to keep all tasks and schedules on time in order to make transitions as smooth as possible. The reputation of RE/MAX Platinum Living for the highest level of service and technology and the complete personalized services provided by Sport Star Relocation Arizona present a highly unique advantage in the luxury real estate market. Combining Cathy’s successful track record and prestigious designations and certifications, she has proven to be an expert agent in her field.
Company/Broker Name: RE/MAX Platinum Living Office Address: 18281 N. Pima Rd., Suite C-100, Scottsdale, AZ 85255 Phone: (480) 236-3336 Website: www.CathyHotchkiss.com Designations: Realtor®, ABR, CDPE, E-PRO, GRI, SRS, Institute for Luxury Home Marketing Specialty Areas: Scottsdale, North Scottsdale, Paradise Valley
On the Market Equestrian Estate in North Scottsdale
Mocking Bird Lane Estates Highly sought after Paradise Valley Location, 6 Beds, 8.5 Baths, 8,411 sq. ft. Luxuriously Upgraded, Expansive Great Room, Detached Casita.
Private & Gated 5 Acre Estate. 5 beds, 6.5 baths, 7276 sq. ft. Stunning Custom Main House with City & Mountain Views, Separate Guest House & Caretaker Apartment. State of the art Horse Facility.
$3,875,000
$2,095,000
TPC Golf Course Home
Pinnacle Peak Country Club Home
Home faces TPC Golf Course, 3 Beds, 2.5 Baths, Open Floor Plan. Beautifully Updated Home in a Desirable Location close to Fairmont Princess Resort & Kierland Commons.
Contemporary Remodel in North Scottsdale’s desirable PPCC. 3 Beds, 3 Baths, $100,000 in Designer & Modern Upgrades, Sparkling Pool/ Spa, Open Concept with lots of Natural Light.
$947,000
$829,000 ADVERTISING PROFILE
DEC. 2015
57
Top
Luxury
REAL ESTATE AGENTS
Kevin Owens
Profile Name: 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 ranked in the “40 Under 40” by the Scottsdale Area Association of REALTORS®, honoring REALTORS® who demonstrate business success, professional leadership, community and industry involvement. Yet his greatest measure of success is the repeat and referral business he enjoys that is a testament to his world-class service, making him a sought-after residential real estate resource in the Phoenix area for hundreds of private clients whose goals he’s helped achieve. 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. Kevin Owens is currently ranked No. 1 in the Coldwell Banker Scottsdale-North Scottsdale office and in the top 6 percent of agents worldwide for sales production.
Company/Broker Name: Coldwell Banker Previews International Office Address: 7975 N. Hayden Rd., Suite C-100 Scottsdale, AZ 85258 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 SOLD
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
$2,400,000 Treasured Troon Views Captivating Red Moon Custom Home Uniquely positioned to capture the sought-after views the Troon area has become known for, 3 bedrooms, 3.5 bathrooms, 3,286-sf. See the video showcase at: TreasuredTroonViews.com
$865,000 ADVERTISING PROFILE
58
DEC. 2015
REAL ESTATE AGENTS
Sandra L. Wilken
Top
Luxury
Profile Name: 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.
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.
$7,800,000 ADVERTISING PROFILE
DEC. 2015
59
Come home to local banking.
It’s been 10 years. And we’ve made local banking something worth coming home to. This anniversary isn’t about us, it’s about you: Arizonans who wanted a better banking experience. After all, you’re not just clients. You’re our neighbors, our friends and the businesses that power our local economy. And with the accolades we’ve received—#1 Community Bank, Top 200 Healthiest Bank, 5-Star Superior Rating—it’s clear we’ve earned your trust with our easier, more personalized, local banking service. Here’s to 10 years as your hometown bank. Bank local. Bank Pinnacle.
Creating an exceptional experience!
Scottsdale 480.609.0055
|
Phoenix 602.995.6565
Member FDIC | Equal Housing Lender. Copyright © 2014 Pinnacle Bank, All rights reserved
|
pinnaclebankaz.com
DECEMBER 2015
In Business Magazine is pleased to offer the MarketPlace for our readers. This section is for
HOW TO ADVERTISE
service-based companies, events and other organizations that wish to “market” directly to
Interested in marketing your business
our readers with their services. Many offer special deals to our readers and all are focused
or service direct to our readers?
on providing the best possible products and services to other businesses here in the Valley. We hope that you will let these advertisers (and all of our advertiser supporters in each issue) know that you’ve seen their ad and that you care to do business with them. The
Show off your product, service, event, announcement or other great information to the best demographics of business decision makers in the Valley. For more information, please contact us at (480) 588-9505 or by email at
Marketplace is open for business.
marketplaceads@inbusinessmag.com.
Looking for a way to fund business growth? Get to know what is happening in your Vicinity Follow us vicinitymagazines @vicinityarcadia @vicinityarcadia
Fortunately for you, not all lenders are the same. Contact us today to learn more about our factor financing services
602-535-5984
www.fswfunding.com
Creative Suites Available Suites available for small businesses, traveling professionals and creative companies. Affordable real estate with low operating costs in the Heart of Downtown Phoenix. Rental Information: We offer suites ranging from 80 sq/ft to 6,500 sq/ft. Rental agreements are available for daily, weekly and monthly usage. Well suited for companies that can utilize large common creative spaces.
CONTACT: call 602 253 6005 or email dan@vermillionphoto.com to schedule a tour. VERMILLION-AD-10-14.indd 1
INBUSINESSMAG.COM
10/21/14 10:24 AM
DEC. 2015
61
DECEMBER 2015
Your doorway to live music 365 days a year.
Send the right message at the right time, automatically.
dtphx.org
Email marketing for small business. WATCH DEMO
infusionsoft.com
Market Your Products & Services to the Strongest Demographic in the Valley. Products • Services • Events • Announcements Q&A • Expertise • Special Offers Give our readers a reason to call you now!
JAN UA
5 RY 201
n is for sectio rs. This r reade ectly to for ou et” dir tPlace d to “mark Marke focuse t wish ns tha all are offer the rs and lley. anizatio ased to r reade er org the Va e is ple ou in oth zin to d re ga an als es he ess Ma cial de , events each business er spe In Busin panies other rters in ny off d com es. Ma vices to r suppo e-base The ertise ir servic and ser servic m. adv the cts r the h h du all of ou ess wit ble pro ders wit rs (and our rea st possi do busin ertise the be care to se adv viding that you l let the on pro ad and t you wil n their pe tha ’ve see We ho . that you siness know for bu issue) en op is tplace Marke
Year. Great
a 2015 isness your bu to know ion Get to a subscript zine. ga with ess Ma ues. In Busin 12 iss year. and. 5 per newsst $24.9 ing off the e 42% sav
Make
(480) 588-9505 marketplaceads@inbusinessmag.com Starting at $299
e ge at th messa ally. e right ic Send th me, automat siness. right ti ting for small bu Email
marke
DEMO WATCH ft.com so
infusion
rib
/subsc
ag.com
sinessm
inbu www.
VERTISE TO AD
iness your bus keting s? reader ed in mar Interest ct to our ice, ice dire t, serv or serv at r produc er gre off you or oth Show of cement aphics announ t demogr event, ey. bes the the Vall tion to ers in informa ision mak contact se dec s tion, plea busines il at e informa 05 or by ema For mor m. -95 0) 588 smag.co busines us at (48 ads@in lace marketp
HOW
Affordable Meds Program … 15 JA N . 20
We’ll work with your unique situation to customize a medication management program
63
… Workforce Medication Management INBUS
INESS
M AG . CO
M
Employer Benefits • • • •
Save on your bottom line Reduce insurance rates Boost employee morale & retain quality employees Reduce time-off for pharmacy visits
Employee Benefits • • • •
Save money Improve health outcomes Mail order convenience with local presence Ship anywhere in Arizona
CALL US TODAY! (623) 432-5938 www.newspringrx.com | info@newspringrx.com 10750 W. McDowell Rd., Suite C-301, Avondale AZ 85392
62
DEC. 2015
INBUSINESSMAG.COM
Create Your Free Business Listing Introducing the premier directory of small businesses in AZ
Nationwide Background Checks Since 1990, Reliable Background Screening has been providing our clients unique and thorough background screening services.
• Protect Against Negligent Hiring Liability • Uncover Criminal Backgrounds • Safeguard Employees & Clients • Maintain FCRA Compliance
800-787-2439 602-870-7711 reliablescreening.com
TM
Employee Screening
Tenant Screening • Evaluate Credit Report • Reduce Skips & Evictions • Protect Owners from Liability
ThinkSmallBiz is a movement promoting the support and patronage of small businesses. Make sure your business can be found in the new ThinkSmallBiz directory by creating your free listing today. We encourage everyone to “ThinkSmallBiz”!
• Maintain FCRA Compliance
If you could have known, you SHOULD have known. ®
Visit ThinkSmallBiz.org Today!
C A T H Y
H O T C H K I S S
EXPECT THE EXTRAORDINARY
WHAT CATHY HOTCHKISS DOES ~ THAT OTHERS DON’T within 4%
higher % diff.
Cathy
Average Agent
List your home for the right price Sells homes within 4% of the list price versus average agents
Cathy
81 days faster
Average Agent
Price per SQFT
List Price
$$ Cathy
Days on Market until Sold
Sell your home faster Sells homes 81 days faster than the average agent
Average Agent
Sell your home for more money Sells homes for a higher price per foot than the average agent
Cathy Hotchkiss Secures top home values. Excels in luxury home pricing. Markets properties beyond the norm. Voted among top Best REALTORS® For Luxury Home Sales by Phoenix In Business Magazine in 2012 and 2014.
INBUSINESSMAG.COM
480.236.3336
CathyHotchkiss@comcast.net www.CathyHotchkiss.com DEC. 2015
63
DECEMBER 2015
Business Tech Solutions
Everything you expect from an IT company, …plus the unexpected! That sets us apart! The Expected:
The Unexpected:
• • • • •
• • • • •
24/7 Helpdesk for your Users Desktop and Server support Upgrades, Migrations and Rollouts Firewalls, Switches and Routers Cloud Servers, Colocation and Internet
602-439-4989
64
DEC. 2015
Wow, you guys are great! Don’t worry, it’s backed up! Upgrade finished! My server room looks great now! You really are MY IT GUYS!
atechaz.com
INBUSINESSMAG.COM
Gasca, Gabe, 44
La Loggia, Bob, 44
Ratliff, Susan, 50
Aliaskari, Mahsa, 20
Giovannini, Eugene, Ed.D., 20
Lanning, Kimber, 20
Reeder, Ryan, 20
Anderson, Laurie, W., 51
Giuliano, Neil, 28
Larsen, Wiley, 44
Rudy, Matthew, 27
Bartow, Tom, 27
Gordon, Cindy, 46
Legge, John M., 27
Sanders, Nancy, 45
Brown, Margo, 47
Hernandez, Dujardin, 38
Levine, Sacha, 36
Schmitz, Jim, 12
Bruno, David, 20
Hiegel, Mark, 37
Lieber, Jon, 13
Selk, Jason, 27
Camacho, Chris, 9, 20
Hoffman, Dennis, Ph.D., 20
Loucy, Corey, 20
Shojaee, Hamid, 10, 44
Case, Darren T., 18
Hoffman, Jeff, 31
Meister, Whitney Sedwick, 12
Sterling, Walt, 36
Collins, Susan Ford, 66
Hotchkiss, Cathy, 57
Meyer, Elyse, 48
Treisman, Ryan, 14
Danley, Walt, 56
Iacobelli, Julie, 28
Mineer, Anna, 38
Van Horn, Katee, 10, 20
Diaz, Oscar, 16
Johnson, Dave, 36
Moore, Colette, 31
Vetter, Rudy, 20
Ehley, Kelly, 36
Kaplan, Elle, 27
Owens, Kevin, 58
Watson, Sandra, 20
Elliott, John, M.D., 16
Knishinsky, Amram, 12
Pooley, James, 26
Wilken, Sandra L., 59
Falkenberg, Chad, 11
Korn, Sara, 52
Racich, David, 10
Coldwell Banker
KFNX, 7
SkySong, 44
Knod, 20
Soilworks, 11
Local First Arizona, 20
Splash Printing & Marketing, 40
Macayo’s, 38
SRP, 8, 31
Maricopa Community Colleges, 67
Susan Ratliff Presents, 50
Maricopa Corporate College, 20
Tempe Chamber of Commerce, 31, 33
Maricopa Workforce Connections, 15
ThinkSmallBiz, 63
McKesson Specialty Health, 40
Thumbtack, 13
Mead, 34
Thunderbird Executive Inn &
Adopt Technologies, 14 Affinity Technology, 64 Airport Lounge Development, 12 Alliance Bank of Arizona, 3 Ampad, 34
Previews International, 58 CopperPoint Mutual Insurance Company, 7 Cox Business, 54 Craft 64 Cushman & Wakefield, 17
AppGyver, 11 AppointmentPlus, 44 APS, 19 Arizona Association for Economic Development, 32 Arizona Commerce Authority, 20 Arizona Forward, 32 Arizona Hispanic Chamber of Commerce, 32 Arizona Lottery, 11
Desert Schools Federal Credit Union, 6 Downtown Phoenix Partnership, 62 Engel & Völkers, 59
Mesa Chamber of Commerce, 33
eWomenNetwork, 33 Fennemore Craig, 12 Flower Child, 36 Franciscan Renewal Center, 41 FSW Funding, 61
Conference Center, 64
Metro Commercial Properties, 12
Tiffany & Bosco, P.A., 18
Michael A. Lieb, Ltd., 12
Uber, 11
Moleskine, 34
USAA Real Estate Company, 12
National Association of Women
Valley Perinatal, 16
Business Owners – Phoenix, 45
Vermillion Studios, 61
Gadzooks, 36
NewSpring Pharmacy, 62
W. P. Carey School of Business, 20
Gallagher & Kennedy, 35
Ocotillo, 36
Walt Danley Realty, 56
Gilbert Chamber of Commerce, 32
OdySea in the Desert. 12
Wave Productivitiy, 47
Glendale Chamber of Commerce, 33
Original Chop Shop, The, 36
Wells Fargo, 51
Glendale Convention & Visitors Bureau, 33
Our Town, 6
Women of Scottsdale, 33
GoDaddy, 10, 20
Papi Chulo’s Mexican Grill & Cantina, 38
Wood Partners, 12
Axosoft, 44
GPS Insight, 5
Phoenix Open, 2
WP West Acquisitions, 12
Banner Health Network, 68
Grand Canyon University, 41
Phoenix Philanthropy Group, The, 28
WriteSmithAZ, 52
Black Chamber of Arizona, 33
Greater Phoenix Chamber of Commerce, 32
Pinnacle Bank, 53, 60
ZRG Partners, 20
Brokers Alliance, 10
Greater Phoenix Economic Council, 9, 20
Polsinelli, 20
Cactus Creative, 51
Greater Phoenix Leadership, 28
Priceline, 31
Cathy Hotchkiss, 63
GreenCardFund, 20
Prism Global Marketing Solutions, 48
Central Phoenix Women, 33
Healthcare Services
Progrexion, 20
Arizona Manufacturers Council, 32 Arizona Small Business Association, 32 Arizona State University, 20 Arizona Technology Council, 31 Association for Corporate Growth – Arizona, 32
Chandler Chamber of Commerce, 32 Chef John’s Events & Catering, 38 Chevrolet, 34 Chick-fil-A, 40 CleanCloud, 11
Platform Consortium, 16 HMSHost, 12 Hula’s Modern Tiki, 38 IKEA, 30 Infusionsoft, 62
In each issue of In Business Magazine, we list both companies and indivuduals for quick reference. See the stories for links to more.
Pure Chat, 10, 44 RE/MAX Platinum Living, 57 Reliable Background, 63 Scottsdale Area Chamber of Commerce, 33, 37
Bold listings are advertisers supporting this issue of In Business Magazine.
CHECK US OUT /inbusinessmagphx @inbusinessmag
65 20DEC.1 5 INBUSINESSMAG.COM
FEBRUARY 2015
A CANDID FORUM
BY SUSAN FORD COLLINS
We’re Stuck in a Success Crisis! AN ENCOURAGING ENVIRONMENT The environment we provide our employees and kids makes a vital difference to their ability to operate in third gear and bring others into third gear with them. When the El Cortez Hotel in San Diego planned to install a new elevator system, the project engineers planned to cut a shaft through all floors at great cost. They had already drawn the plans when a janitor heard what they had in mind and offered a third-gear suggestion: Instead of closing down for two years and creating a mess inside, how about keeping the hotel open and building a new elevator its exterior? At the time, an outdoor elevator had never been done, but the engineers investigated it and proved the idea workable. Today, we find outdoor elevators on buildings worldwide and enjoy great views as we ride up and down
Susan Ford Collins is the creator of The Technology of Success, a leadership system used in more than 3,000 training programs in major corporations and organizations, in startups and turnarounds. Responding to public interest, she took her 20 years’ experience shadowing and coaching individuals recognized as “highly successful people” and wrote The Joy of Success, Success Has Gears and Our Children Are Watching. susanfordcollins.com
DEC. 20 1 5
66
INBUSINESSMAG.COM
And the workforce impact is only beginning, as it is affecting our kids, too Success and leadership have gears — and we’re not shifting them correctly. We’ve gotten stuck in the “more-better-faster, what-have-you-done-for-me-lately, too-busy-racing-aroundto-enjoy-our-lives” gear. We’re over-fed, under-nourished, over-medicated, under-rested and under-satisfied. Think of the wear and tear trying to drive everywhere using only one gear — second gear — would put on a car. That’s what’s happening to most of us and most of our organizations. Our kids understand this intuitively and they’re speaking up. In interviews, many teens have told me, “I don’t want to be successful!” But why? “Because if you’re successful, you never have time for family, friends and fun. You’re always working. Your boss never appreciates you and keeps asking for more.” No wonder they don’t want to be successful! Let’s stop and take a closer look at what’s off. And how to correct it. When we drive, we shift gears up and down as circumstances require, or our automatic transmission shifts for us. As we succeed and lead, we need to shift, too — but we aren’t. When is each gear needed? As we succeed … First gear is for starting and restarting, learning and relearning; Second gear is for accelerating performance, producing and competing; and Third gear is for breaking through outmoded approaches to creativity and innovation. But here’s what’s confusing: We use the word “success” as though it means the same thing all the time, but it doesn’t. What we mean by success is quite different in each gear. And the leadership we need in each gear is quite different, too. This is what our kids don’t realize and we haven’t either, until now. Success in first gear is carefully following rules and regs so we can perform our new skill safely and effectively. Then the meaning of “success” shifts, and what we need from our leaders shifts, too. Success in Second gear is weeding through beginner’s rules and devising shortcuts so we can produce more quantity, more quality, more customers, more profit, in less time with
fewer people. (It’s the more-better-faster gear our kids want to avoid but will need in the future, like it or not.) In second gear, it’s time for more freedom and independence, timely evaluations and easy access to leaders. When we feel our gears grinding, our bodies getting more and more stressed, and our return-on-effort steadily diminishing, we need to shift to third gear. Success in third gear is creativity, innovation and collaboration so that we can continue to advance our industries, organizations and careers. In third gear, we begin leading our creative projects, and reach out to others for support and expertise. Unfortunately, most people fail to shift into third gear. And by disproportionately incentivizing and bonusing second-gear activities, Corporate America is multiplying the problem, impacting businesses’ bottom line as well as resultant family and health issues. This complex interaction of misused success and leadership errors is producing the “success crisis.” Overusing second gear also means underusing first and third gears. It results in squeezing out the time we need to replace outdated systems and equipment (first) and eating up the time we need to think about the future we want (third). We need to pause to re-think, and to pre-think.
Become Gear Savvy Today’s business leaders need to evaluate how effectively each
systems? Do they see the organization’s leaders learning and
success and leadership gear is being used in their organization. Is
relearning as well?
everyone being taught how to succeed and lead in all three gears,
In second gear, what measures of productivity and teamwork
clarifying the timing, purpose, keywords and key behaviors of
is the organization rewarding? Is it incentivizing the behaviors it
each one?
really wants? Or is leadership inadvertently rewarding behaviors
People are smart. They do what they’re rewarded for. Business leaders need to take a fresh look at which behaviors
they don’t? Which gears do the employees see their leaders using? In third gear, what strategies does the organization use
their organization is incentivizing. What unwritten, unconscious
to not just get suggestion boxes full of ideas, but to put those
instructions is the organization sending? Are raises and bonuses in
suggestions into action and broadcast stories about what
place for successes in all three gears?
employee creativity can generate? Who is in charge of encouraging
In first gear, what incentives are there to encourage
and providing support and resources for third-gear ideas, no matter
employees to learn and relearn? Are they allowed enough time
where they are spawned in the organization? Or is everyone in the
to get up to speed before they have to start using new skills and
organization in charge of creativity and innovation?
More Third Gear: When Blake Ross was a teen, it was obvious he wasn’t going to travel the conventional path. When he was 14, he told his parents he wanted to do an internship in Silicon Valley — and they got behind him. Still a teen, this self-taught coder co-founded Mozilla Firefox and sparked a global phenomenon.
the signs of
THAT OCCURS WHEN YOU’RE TOO OVERWHELMED
hea lth care
network
Fortunately, we can help you and your company overcome conditions like this. We are Banner Health Network and we are far more than just hospitals. Banner Health Network is a 4,000-physician strong, integrated network across Arizona giving you specialty facilities, clinics, and an entire spectrum of services. We offer the highly-coordinated care employees want and the high efficiency you need to keep costs down. Choose care designed to fit the health of each and every employee in your company.
BannerHealthNetwork.com | 602.747.6305