In Business Magazine's December 2018 Issue

DEC. 2018

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COVER STORY

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Great Leaders Driving Our Business Community

Top business leaders in our community talk with In Business Magazine about how they are steering the challenges of 2018 into successes for 2019.

FEATURES

46

When Is a Strategy Not a Strategy?

Rich Horwath discusses why a critical foundation for success is to start with being clear about what you’re trying to achieve.

52

For Best Results in Business, Think Like a Designer

Michelle Eichner shares how businesses can create a more seamless experience for their customers.

Legal: Business

Discrimin

MAGAZINE

DEC. 2018

IN BUSINESS

es' Risk of Unintentional

ation

DEPARTMENTS

24

Technology

“Local Motors’ Autonomous Shuttle” and “Rewiring Hiring: The AI, Tech Takeover of HR”

26

Legal

Attorney brings attention to the question of businesses unintentionally discriminating against pregnant employees — and the consequences if it happens.

47

Books

New releases give fresh insights on business thinking.

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PARTNER SECTION Winter 2O18 • aztechcouncil.org

IN THIS ISSUE 2 Introduction to Israel

Arizona Technology Report

Arizona Technology Council: The Voice of the Technology Industry

President’s Message

Like most people in fall 2009, it was hard not to still feel the effects of the slow recovery after the Great Recession that technically ended in June of that New website uses visitor data to year. A national employment rate that maintain engagement hit 10 percent in October was perhaps 5 Change for the Better the most telling sign of how bad things Council sharpens focus on value still were. I had been in my current role proposition not quite three years and had heard 6 Whole New World more than my share of the bleeding Chief Science Officers use global happening in my sector, as well as Steven G. Zylstra, ties for early start on leadership President and CEO, Arizona others that make up our economy.

Technology Council As they say, time heals all wounds.

Nearly nine years later, a booming U.S. economy has given us plenty of cause to celebrate and forget those rocky times on The Arizona Technology Council is Arizona’s premier trade association for the earlier business front. September 2018 brought a 3.7-percent national unemployment science and technology companies. rate, which was a drop of two-tenths of a point from the previous month. This was the lowest rate since December 1969. The Conference Board estimated that for nearly twoPhoenix Office thirds of the U.S. population, this was the lowest unemployment rate in their lifetime.

2800 N. Central Ave., Suite 1530 Close to home, we saw the Arizona jobless rate hit 4.7 percent in September, which Phoenix, AZ 85004 Phone: 602-343-8324 • Fax: 602-343-8330 was a tenth of a point higher than the level for August. Before you say, “Uh-oh, not again,” info@aztechcouncil.org one news report using the state Office of Economic Opportunity as its source pointed out the uptick reflected the job creation rate was just matching the number of residents in Tucson Office our state who were entering or re-entering the job market. The real numbers to watch for The University of Arizona Science and an economic pulse were related to job creation. During September in Arizona, privateTechnology Park 9040 S. Rita Rd., Ste. 1150 (near I-10 & Rita Rd.) sector employment increased 11,300 while it jumped by 79,000 in the past year.

Tucson, AZ 85747 I can vouch for the job creation as my staff and I constantly hear about technology Phone: 520-382-3281 • Fax: 520-382-3299 community members looking for new team members. That’s one reason we’ve begun tucson@aztechcouncil.org including job openings in Tech Talk, the monthly newsletter we publish for our membership, as well as our Monday morning Events announcement.

MANAGEMENT AND STAFF To give you an example of the activity, consider what is happening at Steven G. Zylstra President + CEO information technology companies, which include enterprises involved in Leigh Goldstein COO + Vice President, Programs + Events such activities as telecommunications and data processing. In Arizona, this Pat Krueger Director, Finance + Administration Lauren Witte Director, Marketing + Communication sector had 46,800 workers in September 2018, which was 5.2 percent more Deborah Zack Senior Director, Membership Services than September 2017.

Meredith Orr Director, Membership Services Laura DeGeorge Executive Assistant to President + CEO Taken by itself, 2,300 more employees may not seem like a lot for an entire Jeff Sales Executive Director, Southern Arizona Regional Office state. But consider there are also IT workers employed in other sectors, such Jamie Neilson Operations Manager, Southern Arizona Regional Office as government, education, insurance, banking and health, professional and Don Rodriguez Editor Ron Schott Executive Emeritus, Phoenix business services, and manufacturing. All reported year-over-year gains, so Don Ruedy Executive Emeritus, Tucson you can bet the collective technology workforce has been growing right along Justin Williams Executive Emeritus, Tucson with the rest.

ARIZONA TECHNOLOGY COUNCIL FOUNDATION Those workers with their sights set on the information technology sector Jeremy Babendure, Ph.D., Executive Director should still have a shot at landing a job. The monthly jobless rate for that Kelly Green, Director, Arizona Operations group alone was 5.1 percent in September 2017 then plunged to 2.3 percent a Bruce Jones, National Systems Manager Kindra Maples, CSO Systems Coordinator year later. Once again, the technology field leads the way.

Council members are part of delegation that explores new opportunities

11

Guest Editor

David Brown, CEO of Valley Leadership, introduces the “Business All-Stars” issue.

12

Feedback

Clarence McAllister, P.E.; Dr. Ken Muhich; and Sarah Richardson respond to In Business Magazine’s burning business question of the month.

14

Briefs

4 Driven by Growth

WHO WE ARE

Marisa Ostos, Director, Arizona SciTech Festival Jasper Pena, IT Support Kaci Fankhauser, AmeriCorps VISTA Kal Mannis, AZ Rural and International Initiatives Sabrina Foy, Accounting Assistant

ARIZONA TECHNOLOGY REPORT

aztechcouncil.org

1

57 Arizona Technology Council

“Phoenix Attracts National-Network Co-Working Company,” “Reimbursement Admin Automated,” “Marketing Automation Built for SMBs,” “Managing Increased Holiday TimeOff Requests” and “EO Arizona Celebrates 25 Years of Entrepreneurial Impact on the Valley”

16

By the Numbers

Study shows that, when mobile shoppers want help, they want it from a real person, real fast.

18

Startups

54

Assets

2019 Genesis G70 Plus: For flyers — frequent or otherwise — we share some “health hacks” to take on the road.

56

Power Lunch

The Sicilian Butcher: Build-Your-Own Meatballs and More Plus: Changing menus favors patrons with new flavors.

66

Roundtable

Silence isn’t always golden; Karin Hurt and David Dye examine why and how businesses should nurture their employees to speak up.

ON THE AGENDA

20

Business H2O: Water Innovation Summit — Arizona Chamber of Commerce and Industry

CRE

Healthcare

“Crossroads Launches Franchise Program to Expand Substance Abuse Treatment,” “BCBSAZ Program Produces Cost Savings, Improved Health” and “Businesses Gain when They Motivate Their Workforce to ‘Move It’”

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Outsourcing can be a surprisingly budget-wise option for a nonprofit to quickly amp up its creativity, efficiency and productivity.

51

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Nonprofit

“Serving the Female Market: The Venus Vault” and “PoweringUp Lobos Electric”

“Downtown Grows ‘Up,’” “Phase I Begins Near ASU Campus,” “Ambitious Redevelopment at Park Central Mall” and “Upscale Hotel on Roosevelt Row”

DEC. 2018

48

Spotlight

TTISICON 2019: Evolution of Excellence — TTI Success Insights

52

Calendar

Business events throughout the Valley

A recent survey by Vistage, a leading business performance and leadership advancement organization for SMBs, found that Southwest CEOs are more optimistic for the upcoming year than the national average, with 35 percent expecting the economy to improve and 74 percent expecting to expand their workforce, compared to national percentages of 25 and 63, respectively. vistage.com

Dec. 2018 In Business Magazine is a collaboration of many business organizations and entities throughout the metropolitan Phoenix area and Arizona. Our mission is to inform and energize business in this community by communicating content that will build business and enrich the economic picture for all of us vested in commerce.

PARTNER ORGANIZATIONS Kristen Merrifield, CEO Alliance of Arizona Nonprofits (602) 279-2966 www.arizonanonprofits.org Jess Roman, Interim Chief Executive Officer Arizona Small Business Association Central Office (602) 306-4000 Southern Arizona (520) 327-0222 www.asba.com Steven G. Zylstra, President & CEO Arizona Technology Council One Renaissance Square (602) 343-8324 www.aztechcouncil.org Doug Bruhnke, Founder & President Global ChamberÂŽ (480) 595-5000 www.globalchamber.org Ronit Urman, President NAWBO Phoenix Metro Chapter (480) 289-5768 www.nawbophx.org Anne Gill, President & CEO Tempe Chamber of Commerce (480) 967-7891 www.tempechamber.org Our Partner Organizations are vested business organizations focused on building and improving business in the Valley or throughout Arizona. As Partners, each will receive three insert publications each year to showcase all that they are doing for business and businesspeople within our community. We encourage you to join these and other organizations to better your business opportunities.

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

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

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© Enterprise 2018

Dec. 2018

NATIONALLY RANKED.

VOL. 9, NO. 12

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers Alex Allion

Mike Baize

LOCALLY FOCUSED.

Frank Bejarano Dr. Ron Bonnstetter Melissa DiGianfilippo David Dye Michelle Eichner Rich Horwath Mike Hunter Karin Hurt Anand Janefalkar Saeju Jeong Sarah O’Keefe Richard Tollefson

Enterprise Bank & Trust was recently ranked number 14 out of 161 nationally-ranked banks1. And while we’re proud of that fact, it’s just part of who we are. Whether your focus is on your business, your family or the quality of life in your community, you’ll find us there. We’re committed to supporting dreams, securing financial futures and delivering on community investment.

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www.inmediacompany.com Vol. 9, No. 12. In Business Magazine is published 12 times per year by InMedia Company. POSTMASTER: Send address changes to InMedia Company, 1 N. 1st Street, Sixth Floor, Phoenix, AZ 85004. To subscribe to In Business Magazine, please send check or money order for one-year subscription of $24.95 to InMedia Company, 1 N. 1st Street, Sixth Floor, Phoenix, AZ 85004 or visit inbusinessphx.com. We appreciate your editorial submissions, news and photos for review by our editorial staff. You July 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. © 2018 InMedia Company, LLC. All rights reserved.

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

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DAVID C. BROWN, VALLEY LEADERSHIP

Business All-Stars

Agile and innovative leadership in Arizona’s business community supports the continuing strength of our economy. Leadership can make all the difference in profitability, productivity and attracting talent (among other things) for business.

As you’ll see in the portraits of leadership included in this issue, leadership takes time, requires decisiveness and patience, and, most importantly, is an activity not a title. At Valley Leadership, we’re proud to have among our alumni ranks the thought-leaders, the doers and the decisionmakers making the Valley what it is today and what it will be tomorrow. As the Valley has grown, we’ve discovered that the power of our economy and the strength of our communities will rely not just on leaders but connecting the dots of leadership, what we’re calling leveraged leadership.

Our systems have become increasingly vast and complicated (whether in business, education, healthcare, transportation, you name it), so that cross-sector collaboration is no longer a buzz word, it’s a necessity. Leveraged leadership is the glue that sticks us together and gets us working toward world-class. It’s the choreography that sets our impact in motion and leads to solving challenges and seizing opportunities, in business and beyond.

This issue’s cover story shines a spotlight on the heads of some of the more prominent businesses in various sectors. The opportunity to look into the challenges they identified in their industry and the calculations behind their decisions offers valuable insights to benefit other business decision-makers throughout the community. How did they lead?

Using a presentation style unusual for a business book, Rich Horvath explores strategy as a business process in the form of a graphic novel, StrategyMan vs. The Anti-Strategy Squad: Using Strategic Thinking to Defeat Bad Strategy and Save Your Plan. With illustrations that give the flavor of his recently released book, this best-selling author offers his expertise in a feature article written for In Business Magazine. In this December issue is also a feature on design thinking, an approach to business operations that has been gaining increasing attention. And this issue’s closing feature deals with the importance of a company getting problem-solving input at all levels — and how to encourage those who hesitate to speak up — showing us how leadership is a verb.

Exercise and eating tips to help you stay healthy while traveling are timely for the holidays (and beyond), as are tips on dealing with holiday-related operational pressures such as an overload of vacation requests. These articles, in the Assets column and Briefs pages, respectively, are among the many that typically fill the pages in In Business Magazine with a wide range of pertinent content to inform and empower business owners, executives and community leaders.

It is my pleasure to help bring you this December issue of In Business Magazine. I hope you’ll find it — as I do — to be a valuable resource for business.

David C. Brown is the CEO of Valley Leadership, the Valley’s premier leadership program, boasting a proven and longstanding track record of making deep impacts on the community.

Valley Leadership empowers, leverages and mobilizes leaders to meaningfully impact the most pressing issues facing Arizona.

Prior to becoming Valley Leadership’s CEO in September 2017, Brown was CEO of Home Matters and executive director of the National NeighborWorks Association, both working to raise national awareness of the need for better homes and communities across the country.

Brown holds a Bachelor of Science in Accounting from the University of Arizona and a Master of Public Administration from the University of Southern California. He also received a certificate from Stanford University’s Executive Program for Non-Profit Leaders in 2013.

Story Ideas/PR: editor@ inbusinessphx.com

So much about business is changing. To be a strong

We want to thank Dave Brown for

businessperson has always required an ability to manage financials,

leading this issue on leadership. Who

people and practices. Leadership empowers businesspeople

better? His work with Valley Leadership

to better by those factors and so many more. A focus on strong

continues to inform our local top talent

leadership practices and the effects of it has shown to sustain

and is providing exceptional opportunities,

business in a way that inevitably benefits all involved. In this issue,

empowering each annual class of leaders

we asked top Valley leaders to talk to In Business Magazine about

to succeed through focused leadership skills and projects.

their companies, some adversities and how leadership played a part.

—Rick McCartney, Publisher

We also get to know these top companies through their profiles.

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VALLEY LEADERS SOUND OFF

As a small or minority-owned business, what was one of your top challenges over this past year and how did you address it?

CLARENCE MCALLISTER, P.E. Chief Executive Officer Fortis Networks, Inc. Sector: Construction

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

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

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I have lived in Arizona for the last 30 years and established Fortis in 2000. For the last 10 years, we have been a federal government construction contractor serving primarily the armed forces worldwide. We have completed projects in South America and Africa. I recently returned from Spain where I visited a prospective project.

With our vast experience working for very demanding customers in austere environments, and with the growth in Arizona, two years ago we decided to transfer those skills into the local commercial construction sector. Because of our lack of local relationships in the industry, it has taken us longer than expected to make the transition. To address this issue, we have hired marketing staff and have joined networking groups in the Valley to get our name out. Unfortunately, Minority Business Enterprise programs were eliminated in Arizona more than 10 years ago, which makes it difficult for MBEs to compete unless we are well established, have a track record and there are customers willing to give us an opportunity to perform.

Fortis fortisnetworks.com Clarence McAllister is a native of Panama. He graduated from Arizona State University as an engineer and established Fortis in 2000.

Fortis is a Design Build Construction company specialized in government and commercial projects worldwide. McAllister is on the board of Accion, a nonprofit micro lender, and mentors other small minority-owned businesses.

DR. KEN MUHICH

SARAH RICHARDSON

Chief Executive Officer Stetson Chiropractic Clinic/Fibromyalgia Wellness Center Sector: Healthcare

Founder and Designated Broker Tru Realty Sector: Real Estate

We’ve worked with Fibromyalgia patients since 1990. Fibromyalgia is a cyclic illness that affects millions of people regardless of race. It is a frustrating debilitating condition that is often misunderstood. Patients are considered hypochondriacs and are usually over-medicated. The history of Fibromyalgia can be traced to Biblical times, and the present-day term has had numerous names along with definitions.

Our challenge this year has been to educate physicians and the general public about Fibromyalgia through weekly Facebook live videos, monthly website blogs, on-line physician seminar training of our treatment program, and lectures to health providers and patient groups.

Through these activities, we have given a clearer view to all those interested in understanding Fibromyalgia. We also continue to work closely with the Fibromyalgia Research and Treatment Center in California in order to stay upto-date with their most recent research through the UCLA Medical Center.

Fibromyalgia patients now know that their problem “isn’t in their head.” It’s real and treatable.

Stetson Chiropractic Clinic/Fibromyalgia Wellness Center fibrowellnesscenter.com Dr. Muhich is the CEO/Physician of Stetson Chiropractic Clinic Ltd. and Fibromyalgia Wellness Center in Scottsdale, treating patients since 1986. Dr. Muhich has a bachelors degree from Western Illinois University, masters degree from Indiana University, and doctorate from Palmer College San Francisco.

He’s the author of the book Fibromyalgia, Falsehoods, Fakers and Facts and educational video Believe it! You can Find Relief from Fibromyalgia and Chronic Fatigue Syndrome.

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

One of the top challenges we’ve been facing in the real estate industry is the commoditization of the services we offer with the rise of the countless online platforms disrupting our industry. On top of it, we operate in a highly saturated market, which means we continually have to differentiate ourselves. At Tru Realty, that meant turning to innovation, which led us to blockchain technology.

We saw blockchain as a tremendous opportunity for us to streamline cross-border transactions, and make the buying and selling process easier and more secure. We launched our blockchain platform last year, becoming the first real estate company in Arizona, and second in the U.S., to utilize the Propy blockchain registry. Within a few months, we became the first brokerage in the state, and third in the U.S., to complete a real estate transaction through blockchain.

As business owners, we constantly have to be looking at how to adapt and innovate to provide a better experience for customers.

Tru Realty trurealty.com Sarah Richardson is designated broker and founder of Tru Realty, responsible for daily operations and growth strategies. Richardson launched Tru Realty in 2010 to serve a marketplace that was shifting from auctioncentric fix/flips to an MLS flow. She built a team of capital lenders, general contractors, investors and other specialists unique to each deal, and reached more than 450 deals in just six years.

QUICK AND TO THE POINT

BYTES

by Mike Hunter

Reimbursement Admin Automated Espresa, a pioneer in empowering companies to provide world-class programs that employees love and associate with the best places to work, has added a new reimbursement allowances feature to its employee programs automation platform. The new feature allows HR and benefits teams to more effectively manage reimbursement allowances, driving engagement across campuses and difficult-to-reach remote employees.

“There are specific activities tied to each company’s unique culture, whether it be outdoor activities, fitness, travel or advanced learning. Fostering this activity through reimbursements solidifies and promotes the culture — even when employees are scattered across the globe,” says Alex Shubat, CEO of Espresa, noting that, historically, reimbursement allowance administration has been a real headache for HR and benefits departments.

Espresa enables companies to either self-adjudicate reimbursement requests or outsource them. Employees and administrators can communicate during the review process, and the platform can automatically generate a report for the payroll team to complete employee payout and tax reporting. espresa.com

Marketing Automation Built for SMBs Now available from Scottsdale-based Swiftpage, the provider of Act! CRM software — a leading cloudenabled platform aimed at helping small and midsized businesses grow — is the next generation of Act!, marrying proven CRM with powerful marketing automation. Purpose-built for SMBs, the new Act! includes rich customer management, dynamic sales pipeline management, powerful marketing automation, actionable business insights, and integrations with hundreds of business optimization applications.

“Just like big enterprises, in order to stay competitive, small businesses are always looking for ways to improve customer engagement, drive retention, and increase loyalty through repeat business,” said H. John Oechsle, president and CEO of Swiftpage. Act! Marketing Automation offers subscribers a single integrated platform combining CRM and marketing automation, allowing them to optimize all the ways they communicate with prospects and customers to maximize engagement and drive business growth.

The new Act! represents a significant step forward, both for Swiftpage and the broader SMB market, and is available in English in North America, the United Kingdom, Australia and New Zealand. act.com

DEC. 2018

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Phoenix Attracts NationalNetwork Co-Working Company Serendipity Labs Coworking will open the first of nine planned Phoenix locations next month.

Flexible space is currently less than 5 percent of the office inventory but predicted, according to commercial real estate firm JLL, to rise to 30 percent by 2030, and Serendipity Labs is meeting that demand through company-owned managed and franchised locations across the United States. Serendipity Labs PhoenixCamelback will be a corporate-owned Lab. “We are building regional networks, so we look for a region that has a need for urban center locations combined with suburban locations,” said John Arenas, chairman and CEO, noting Metro Phoenix is forecast to be the fourth-largest metro area in the U.S. by 2020.

“Companies are moving to Phoenix to because of the highly skilled labor force. The increase in flexible shared office space is because all those companies need office space for remote teams or colleagues and clients who come to visit; a first address while they get settled — what the industry calls swing space; or a location for offsites and team meetings.” Pointing out the major industries in Phoenix — healthcare, fintech, banking and aerospace — are so dynamic that their workforce requirements fluctuate, he added, “It makes no sense for them to take on a 10- or 15-year lease.”

Serendipity Labs differs from localized coworking spaces in that it is a national network of connected locations; members in Phoenix can use any location across the country, and companies with a nationally distributed workforce can have coordinated locations

JLL predicts that flexible space in the U.S., currently less than 5 percent of the office inventory, will rise to 30 percent by 2030.

across the county. Issues of security and privacy are important. “Our IT platform meets the most rigorous standards. It is HIPAA, Sarbanes-Oxley, PCI DSS and GLBA compliant,” said Arenas. “We also know that keeping proprietary information confidential is a top priority for a company when sending employees to a shared office. That is why we have frosting on the front glass of all offices so that no one can see in and felting on the walls between focus rooms so phone calls can be private.” At the same time, he noted, “We also look for buildings that have plenty of natural light, which research has shown is very important not just for productivity, but for overall happiness.”

The 32,000-square-foot shared workplace will encompass the entire second floor at 2801 Camelback Road in the highly-anticipated mixed-use Camelback Collective project by Holuloa LaPour that also includes a boutique hotel and retail component. —RaeAnne Marsh Serendipity Labs Coworking serendipitylabs.com

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QUICK AND TO THE POINT

Managing Increased Holiday Time-Off Requests Often referred to as the most wonderful time of the year, the holiday season can bring an abundance of social gatherings, gift exchanges and trips to visit family and friends. However, without proper planning, the holidays can easily become unproductive for businesses, with sparse offices or distracted employees.

To help avoid a loss in productivity while managing an increase in time-off requests this holiday season, employers may consider the following tips: Set expectations and communicate policies early. In advance of the busy holiday season, management should clearly communicate expectations and policies regarding time off. To help avoid uncomfortable conversations or hurt feelings if an employee’s time-off request cannot be accommodated, employers should distribute written policies to every employee before the holidays. This should also include any blackout dates related to project deadlines, proper protocol for requesting vacation time and office closure dates.

Encourage office downtime. Holiday distractions can be inevitable as employees may be tempted by online shopping or planning a winter vacation instead of focusing on their work. Rather than ignoring the fact that employees’ minds may be focused on prepping for the holiday season, management may allow team members the opportunity to accomplish personal tasks during authorized breaks. This may help employees stay on task during the workday and lift overall office morale. Planning a seasonal group activity, such as a voluntary gift or cookie exchange, may help foster goodwill and team spirit. Bringing the holiday spirit into the workplace can increase employee engagement, leading to greater focus on work-related responsibilities.

Allow flexibility with scheduling. Many businesses slow down during the last week of the year. If realistic, companies may consider closing their

office that week since it is likely that many clients will take time off as well.

While this may not be true for every industry or company, businesses can still offer flexibility by creating a shorter work schedule during the holidays or allowing employees to work remotely. Employers that need staff to work may consider allotting vacation at other times of the year or offering comp days to those who work on holidays. —Mike Baize, a manager of HR services for Insperity (www.insperity.com), which has been an advisor to America’s best businesses for more than 32 years, providing an array of human resources and business solutions designed to help improve business performance

EO Arizona Celebrates 25 Years of Entrepreneurial Impact on the Valley This year, Entrepreneurs’ Organization, the world’s leading peer-to-peer network of successful business owners, celebrates 25 years in the Valley. Since the Arizona chapter launched in 1993, EO Arizona has grown to be one of the largest chapters in the world, with 160 members. EO is made up of entrepreneurs who are founders/co-founders or majority shareholders of a business that exceeds $1 million in annual revenue.

Since its inception, the organization has been home to some of the Valley’s most prominent business leaders, many of whom credit much of their success to the foundation they found in EO. These include Governor Doug Ducey, former CEO of Cold Stone Creamery; best-selling author and speaker Ken McElroy; restaurateurs Craig DeMarco and Lauren Bailey; and Neil Balter, founder of California Closets and Organizers Direct.

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EO Arizona also leads one of the largest accelerator chapters in the country. EO Accelerator is a comprehensive program for business owners who have less than $1 million revenue, with a goal to teach them the knowledge and skills they need to grow their business above that million-dollar threshold.

Since launching the program in 2008, EO Arizona has helped more than 35 entrepreneurs grow their revenue to more than $1 million.

Additionally, the organization relaunched its Global Student Entrepreneurs Awards competition this year in honor of its 25th year, in which college students from across the state can enter to compete and present their entrepreneurial idea for a chance to win more than $30,000 in prizes and support to bring their idea to life.

Globally, the organization boasts more than 13,000 members, with 179 chapters in 57 countries. Founded in 1987, EO is the catalyst

that enables leading entrepreneurs to learn and grow, leading to greater success in business and beyond. —Melissa DiGianfilippo EO Arizona eoarizona.org

Flex Jobs and Holidays A full-time employee on a flexible work schedule is entitled to eight hours of pay on a holiday when the employee does not work, but some days on a flex schedule may be more than eight hours. Therefore, when two eight-hour holidays fall within the same pay period, full-time employees on some flexible schedules must make special arrangements to fulfill the 80-hour biweekly work requirement. bit.ly/holiday-schedule-pay

METRICS & MEASUREMENTS

Even Mobile Shoppers Prefer Live Consumer Support

When mobile shoppers want help, they want it from a real person, real fast

by Anand Janefalkar

Mobile shopping is booming in the U.S. as we prepare to enter 2019. According to the 2018 Internet Trends Report from Kleiner Perkins, mobile shopping app sessions grew 54 percent year-over-year — the fastest growth of any mobile activity.

In addition to shaking up traditional monetization models for brands and retailers, this is driving how consumers expect to interact with customer support when there’s a problem.

One recent study of 1,500 U.S. adults found when millennials and other mobile shoppers reach out to a brand for help, more often than not, addressing their issues requires real people, contact centers and customer support platforms.

Specifically, for 30 percent of consumers, their first action when there is a problem is still to call and try to reach a live person by phone.

Another 25 percent use online chat, or send an email, to ask for help — behaviors that, once again, often lead directly to a contact center. Add in 4 percent more engagements coming in through text messaging and social media combined, and a portion of the 8 percent of requests that go through an online ticketing system and require human follow-up, and the final count is two-thirds of support requests made via mobile or any other channel still rely on contact centers and support platforms to solve.

While some believe artificial intelligence may eventually replace humans in helping consumers address support and service questions, 58 percent of consumers surveyed don’t think chatbots are as effective as they could be, or say they’d prefer to chat with a service representative to solve their problems. The rule of thumb is that more urgent and complex issues require a more immediate connection with a live agent, whereas simpler, less urgent requests can be served by chatbots.

This leaves brands and contact centers with the need to strike a balance between AI and human agents, based

on a keen understanding of how each functions within the customer experience equation, in a given moment and context.

Great support must be there for consumers in that moment and context, and deliver help anyway they want it. So, while AI and chatbots will certainly find their applications — initially for simple things like making reservations — indications are that modern mobile consumers now and future will have a preference for human support, much of it provided from contact center environments.

Delivering Customer Support When shopping with a mobile brand, which of the following is your most preferred method for contacting customer support?

Mode

Percentage

In-store customer support associate

32%

Customer support phone line (human operated)

25%

Customer support phone line (automated) Online customer support ticket submission Direct email to customer service

5% 8% 10%

Online chat

15%

Text message

25%

Via social media accounts (e.g., Twitter, Facebook, etc.)

25%

Source: The study was commissioned by UJET and delivered by Branded Research Inc., an independent market research organization. Branded Research has an active proprietary panel of more than 3 billion respondents that is routinely validated with a stringent screening process including Verity® and RelevantID by Imperium. Results derived from a 15-minute online survey instrument with 52 total questions, fielded May 15–24, 2018, for a total of 1,505 responses from adult (18+) Americans. Overall margin of error of +/- 3 percent at a 95-percent confidence interval.

One recent study of 1,500 U.S. adults found when millennials and other mobile shoppers reach out to a brand for help, more often than not, addressing their issues requires real people, contact centers and customer support platforms. bit.ly/ujet-retail-survey

UJET is a realtime customer communications provider that aims to make it simple for any company to provide intuitive, modern-day support. As founder and CEO of UJET, Inc., Anand Janefalkar has 15 years of experience in the technology industry and has served as a technical advisor for various startups in the Bay Area. Before founding UJET, he served as senior engineering manager at Jawbone, and also previously contributed to multiple high-profile projects at Motorola. ujet.co

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BY RAEANNE MARSH

ENTREPRENEURS & INNOVATORS

Serving the Female Market: The Venus Vault The Venus Vault LLC is a media company that has developed a media platform which produces engaging content through radio, podcast, print, services and products — intended to uniquely serve the female market. Founder Syndeelou Jones says her biggest challenge was taking something that felt so personal, so important and so real, and turning it into a business. That required a “balance of maintaining authenticity and leading with my heart while building an empire,” she explains, observing, “The heart and head don’t always agree.”

Having created The Venus Vault to disclose and uncover women’s secrets

for love and inspiration, Jones has found its listening audience has also become a valued guest, writing or calling to share their questions and stories. “I’ve made every misstep in life and love along the way to success, so I can relate to every one of them and am constantly inspired.”

With 20 years’ experience as a successful entrepreneur in real estate, business consulting and coaching, Jones says she decided to turn her energy toward “supporting women in a way that is real and authentic” and became a certified life and relationship coach.

“A woman’s story. It hit me one night after an afternoon spent with some of

The Venus Vault Show host Syndeelou Jones and cohost Craig Matthew

my closest girlfriends that our shared stories heal us, entertain us, support us and inspire us,” says Jones. “No matter what our background, our culture, our social status, we walk the same path — we, as women, are the warriors of love.

I wanted to share our stories, not just at my table but with the world. I wanted to unite us and give us a place to feel comforted and supported. So I sat down to write it all down in a memoir 10 years ago. That memoir set the stage for my business today.”

The Venus Vault thevenusvault.com

Powering-Up Lobos Electric

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Founded this past June by Migdol Lobos and Damacely Lobos, Lobos Electric serves home and business needs in electrical connections and smart solutions in electrical installations, maintenance, service upgrades, outlets, LED lights, trouble shooting, appliances, pool and patio power and more.

CEO Migdol Lobos, who has a post-graduate degree in electrical engineering from the Technological Institute of Guatemala, says he was inspired to follow in the footsteps of his father, an electrical engineer. His biggest challenge was learning “the business administration and how business works internally,” and he credits Fuerza Local Arizona and its business accelerator program — from which he graduated on July 25, 2018 as part of its 10th cohort — as key in founding his business by providing those resources. “They have provided us with the necessary tools and business training necessary to know how a corporation, business or company works internally,” Lobos relates.

“Our slogan speaks of our goal and what we want to achieve in the Valley: Lobos Electric LLC. ‘Illuminating your world,’” Lobos says, expressing gratitude to “this great country and our beautiful state of Arizona, beautiful land of opportunities and place where dreams come true.”

Lobos Electric LLC facebook.com/pg/LobosElectric

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The Venus Vault was established as an international, independent information and media company, to align with the consumer to promote, support, educate and inspire. Founder Syndeelou Jones shares the inspiration behind it in her recently released book, “Can I Have My Panties Back, Please?” — a memoir of women’s true-life tales of dating and mating. syndeelou.com

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PROPERTY, GROWTH AND LOCATION

Novus is a 350acre, multi-phased development in Tempe that, at completion, will encompass nearly 10 million square feet of urban mixed-use opportunities, including State Farm’s 2.1-millionsquare-foot Marina Heights regional hub.

Strategically integrated with the ASU campus and downtown Tempe on Tempe Town Lake, the Novus Innovation Corridor is a partnership with the nation’s “Most Innovative University.” ASU enables companies that locate within Novus to achieve synergies through all the resources a major research university offers, including access to world-class research and a highly educated and skilled workforce.

The project extends ASU’s commitment to the growth of smart cities, employing strategies to address adaptive design, urban heat island impacts, energy and water efficiency, smart infrastructure and transportation/mobility options.

Through a public-private partnership, ASU and master developer Catellus will oversee development of approximately 8 million square feet of additional new development, including apartments, offices, retail businesses and hotels within the Novus Innovation Corridor.

At completion, Novus will integrate private, sustainable mixed-use development with new and renovated, best-inclass collegiate athletic venues. novusasu.com

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Downtown Grows ‘Up’ Downtown Phoenix may not be the densest of metros, but a construction boom is making prime land for development scarce.

When developers can no longer build out, they go up. More than a dozen mid- and high-rise buildings are slated for the gaps in the Downtown Phoenix skyline over the next few years.

A few mid- and high-rise projects under construction, breaking ground or in pre-construction right now include the LINK PHX, a 30-story multifamily project on Third and Pierce streets expected to finish in Q3 of next year; The Stewart, a 19-story multifamily project located on Central Avenue and McKinley Street that will open above a former car dealership built in the ‘50s; The Kenect Phoenix, a 24-story high-rise located at 355 N. Central Avenue that will break ground in Q4; and The Battery, a 278-unit mid-rise located south of Talking Stick Resort Arena.

These projects are far from the only skyline-changing buildings coming to Downtown Phoenix. Sage Policy Group suggested an 85.1-percent increase in foreign investment to the multifamily sector in 2015 and is powering the development we’re seeing today. There are many projects already in the preconstruction phase for Downtown Phoenix, which means the skyline has a lot of growing up to do through 2020.

There are also societal incentives. Millennials and baby boomers are driving a generational push for multifamily living. They want to live closer together, own less and have

everything they could need within reach. Downtown Phoenix is a prime region for this kind of lifestyle, which means buildings are following the last decade of investment that includes Valley Metro’s light rail, the Biomedical Corridor, ASU’s Downtown campus, CityScape and Phoenix Convention Center.

Perhaps the biggest growing pain — and opportunity — for these Downtown projects is labor. Arizona has an overstressed labor market despite being the state with the fifth-highest year-over-year growth in construction jobs, according to data analyzed by Sage Policy Group. In Arizona, 14,900 construction jobs were added to the industry between August 2017 and 2018. Of those, 13,600 were located in Metro Phoenix.

This is a high time to be in Downtown Phoenix, and the community shouldn’t expect a slowdown until 2021, if even then.

—Frank Bejarano, operations director at UEB Builders in Scottsdale (ueb.net), who oversees the company’s ongoing construction in the Southwest

GET REAL

Phase I Begins Near ASU Campus Two for the Novus Innovation Corridor: Award-winning, urban residential developer Aspen Heights Partners plans a sixstory, 262-unit luxury apartment community that will include approximately 27,000 square feet of ground-floor restaurant and retail space as well as a shared commercial and residential parking garage.

Ryan Companies US, Inc., a premier national builder and developer with a long history of successful developments in Arizona, will develop a Class A, six-story, 162,000-square-foot multi-tenant office building that will feature an open floor plan with penthouse office space and about 8,000 square feet of retail space on the first floor. There also are plans to create a plaza area for event usage. ahpliving.com • ryancompanies.com

by Mike Hunter

Ambitious Redevelopment at Park Central Mall Peoria-based Plaza Companies and Tucsonbased Holualoa Companies are teaming up to redevelop Park Central Mall, transitioning the project to a bustling community hub ideal for playing, working, congregating and celebrating the arts. The first 337,000 square feet of redeveloped office and retail space will be done in January 2019.

The recent purchase of an additional 21 acres of property and an additional 193,000-square-foot building consolidates ownership of Park Central for the first time in decades. Plans for an ambitious Phase II for the redevelopment will include a new nine-story residential complex to go along with a new Creighton University health sciences building. parkcentralphoenix.com.

Upscale Hotel on Roosevelt Row The Cambria hotel in Downtown Phoenix – Roosevelt Row Arts District has started construction and is set to open in late 2019. A collaboration between True North Studio, LLC, a Phoenix-based commercial real estate development company located in Phoenix, and Choice Hotels International, Inc., the seven-story, 127-room upscale hotel will feature a rooftop pool with cabanas and bar, with panoramic views of the surrounding mountain ranges, downtown skyline and music festivals at Margaret T. Hance Park. Development includes plans to commission local, national and international artists to create exterior murals and an iconic sculptural shade structure to be placed outside the hotel entrance. choicehotels.com/cambria • truenorthstudio.com

According to the Q3 2018 Phoenix Office Insight report from the Phoenix office of JLL, there is currently more than 2.7 million square feet of office construction underway in Phoenix, with 726,000 square feet scheduled to deliver by the end of the year (15 percent higher for new space delivery than any other market in the Southwest). Of that space, 25 percent is already preleased. jll.com/phoenix

Photos courtesy of Aspen Heights Partners; Plaza Companies; True North Studio, LLC (bottom, l to r)

CONSTRUCTION HOT ON ARIZONA STATE UNIVERSITY PROPERTY

YOUR BENEFIT IN BUSINESS

WELL, WELL, WELL by Mike Hunter

Crossroads Launches Franchise Program to Expand Substance Abuse Treatment Every day, the Crossroads admissions office in Phoenix is overflowing with people who are often camping out overnight on the front lawn to get a place in line to be admitted for substance abuse.

Founded in 1960 in Phoenix, Crossroads has grown to be one of the largest residential and outpatient substance abuse treatment programs in the United States, serving more than 2,500 people each year. Despite the continued work of Crossroads to expand and improve its high-quality, successful and affordable residential and outpatient programs, the organization now recognizes the need for a new approach to address the overwhelming demand for its recovery treatment program. Crossroads is now identifying potential partners for its new franchise model, which will expand the Crossroads substance abuse treatment methodology under a new brand name, CORLATE. Each franchisee will receive extensive training and a full menu of support services. thecrossroadsinc.org • corlate.org

BCBSAZ Program Produces Cost Savings, Improved Health Change Healthcare and ACO Partner™ recently announced results for the first complete plan year of its novel shared savings program with Blue Cross Blue Shield of Arizona. Participating providers reported a 26.3-percent lower 30-day readmission rate and 28.1-percent lower all-cause readmission rate than their non-participant cohort. They also reported 20 percent fewer admissions and 15.2 percent fewer emergency department visits per thousand treated members. Participating providers also outperformed cohort in achievement of the program’s Quality Index by 2.7 percent, and drove lower specialty pharmacy spend, decreased imaging utilization, and more HighEfficiency Network specialist referrals.

“The model deployed in Arizona, with a focus on care coordination and provider engagement, is achieving the value-based care goals we set when we launched. The program is working for providers and payers, but most importantly for members,” said John Wallace, senior vice president at Change Healthcare and president and chief operating officer of ACO Partner. azblue.com

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Businesses Gain when They Motivate Their Workforce to ‘Move It’ For decades, we’ve known that increased activity leads to an overall healthier lifestyle.

In recent years this mentality has crept into our workday, too. For managers, the struggle becomes how to encourage our workforce to get up and take fitness breaks when our ultimate focus should be on productivity and meeting business objectives between the hours of 9 a.m. and 5 p.m.?

Ironically, research shows that when employees are encouraged to get away from their desks and intentionally increase movement, productivity increases. Researchers attribute this to the fact that aerobic activity gets blood pumping and regulates hormones in a way that calms nerves, reduces stress and battles burnout.

Last year, James Levine, M.D., a professor of medicine at the Mayo Clinic in Scottsdale, was quoted as saying, “Sitting is more dangerous than smoking, kills more people than HIV and is more treacherous than parachuting. We are sitting ourselves to death.” This statement is not only shocking, it is causing many companies — large and small — to reevaluate their policies about increased activity at work.

Currently, the average American adult sits for 13 hours a day. Paired with the standard eight hours of sleep each night, this leads to a significantly sedentary lifestyle. This reality, often termed as “sitting disease,” is associated with an elevated risk of 34 chronic diseases that include obesity, diabetes, cancer and cardiovascular disease.

In a New York Times article, researchers found standing up and walking around for as little as 5 to 10 minutes every hour made a real difference in a person’s quality of life — not only at work but in their personal lives, too.

Benefits of incorporating movement included a lift in mood, stress reduction and less fatigue without reducing focus or attention. Plus, regular movement even helped battle hunger pangs.

But, how do companies balance workloads with increased activity?

Since many employers are starting to see the benefit of increased activity at work — not only in their employees’ health but on their bottom line as well — companies are looking for ways to motivate employees to step up activity during work hours. From standing workstations and treadmill desks to Fitbit and walking

competitions, companies are making movement at work a viable option.

Many organizations in and around Phoenix have decided it’s time to prioritize activity in the workplace. Companies like Arizona Helping Hands, the United Dairymen of Arizona and the Make-aWish America organization recently participated in the inaugural Terryberry Arizona Workplace Walking Challenge. The six-week business-tobusiness competition included nearly 2,000 local employees. The challenge encouraged overall employee wellness and rewarded participants for meeting daily step goals.

During the Walking Challenge, Arizona Helping Hands even converted its 18,000-square-foot warehouse into a walker’s paradise. Orange cones were set up so employees could briskly walk laps throughout the day. And, while participants said it was often tricky to rip themselves away from their desks or projects to get in a walk, they did report they were more focused, clear-minded and, ultimately, more productive after having stepped away for a short activity break.

The increased interest in wellness programs in the U.S. demonstrates that employers value their staff members’ wellbeing and overall health.

They also realize that a healthy work environment means employees take fewer sick days, ask for less time off for doctors’ appointments and have lower health insurance premiums. Plus, employers found employees who get up and move during the workday are overall more satisfied, more productive and less likely to search out other jobs. —Alex Allion, western U.S. sales director of Terryberry (www.terryberry.com), with more than 20 years of experience providing skillful leadership through the effective communication of the company’s corporate vision, including thought-leadership to hundreds of organizations on developing and implementing recognition strategies to enhance talent engagement and employee retention

The average American adult sits for 13 hours a day. A significantly sedentary lifestyle, often termed as “sitting disease,” is associated with an elevated risk of 34 chronic diseases that include obesity, diabetes, cancer and cardiovascular disease.

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INNOVATIONS FOR BUSINESS

TECH NOTES

Local Motors’ Autonomous Shuttle Phoenix-based Local Motors — a ground mobility company that, in the decade since its founding in 2007 has debuted the world’s first 3-D-printed car, the world’s first co-created vehicle and the world’s first co-created self-driving, electric vehicle — is now close to deploying a fleet of autonomous shuttles in the Phoenix area as part of a global fleet challenge it launched in September.

Another first of its kind, this fleet challenge invited municipalities, campuses and designated districts to propose a short-term, local use for Olli, the world’s first co-created, self-driving electric shuttle. The idea behind the fleet challenge is to find the best use scenario for the shuttles, which may include a closed professional campus, a designated district such as an entertainment or sports complex, or a large healthcare complex. Phoenix and California state capitol Sacramento get first honors to deploy a test fleet of two eight-person shuttles, the specific winners yet to be announced as of press time but promised by the end of this year; the second fleet challenge will be open to Australia and the Nordics, where Autonomous Mobility is Olli’s exclusive operator and reseller for that region and the Baltic area, with additional challenges to follow in the coming months.

“We look at the winners as partners in this integration of technology. … Local Motors is constantly looking to its community members for ideas, thoughts, requests, et cetera to be able to update and integrate new technologies that enhance products, just like Olli,” says Brittany Stotler, vice president of marketing and communications.

Jay Rogers, Local Motors’ CEO and co-founder, announced the start of the challenge in September while attending ITS (Intelligent Transport Society) World Congress in Copenhagen, Denmark, where Olli offered rides to attendees and dignitaries throughout the conference as it had done at the International Manufacturing Technology Show in Chicago the previous week.

Local Motors manufactures its open-source designs in low volume at multiple micro-factories, one of which is located in Chandler. —Mike Hunter Local Motors localmotors.com

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Rewiring Hiring: The AI, Tech Takeover of HR Hiring the right people is one of the most important decisions a business can make.

Regardless of industry, most companies require the following attributes of future hires: necessary hard skills, soft skills and experience to fill a given position. Hard skills and experience are, for the most part, quantifiable. Soft skills are more difficult to capture. Research suggests businesses historically hire based on knowledge and experience and then fire based on soft skills. As a result of this missing success indicator, businesses are turning to prehire assessments to weed out some of the candidates and create a better job fit, including neurological based-tools such as artificial intelligence.

The use of pre-hire soft skill assessments is growing, as companies attempt to be more predictive in their hiring process. According to the Talent Board’s 2017 Candidate Experience Research report, 89 percent of companies are using some form of pre-employment assessment tool — up from 82 percent in 2016. Using pre-hire assessments is estimated to be an $800-million market.

With this need to identify soft skills, businesses still tend to look for a quick-fix approach to hiring. Everyone wants some Holy Grail to rank candidates and offer up only the best. They want the latest and greatest technology to assess body language, facial expressions, voice inflection and word choices to reveal job-related soft skills. They want to feed all the resumes from top producers into a computer algorithm so a black box will indicate how to find the perfect fit.

No matter what selection criteria are selected, no tool should be solely used for the decision-making process. Most researchers agree that best practice hiring requires a combination of several data-gathering approaches to capture the value of a potential employee. Such approaches may include a résumé review, face-to-face structured interviews, and pre-hire assessments that help articulate specific job-related soft skills.

Employers should be cautious when selecting an assessment tool in the hiring process by keeping in mind that the goal is to put in place a predictability model that maintains defensible reliability and validity.

For example, before using any pre-hire assessment, a business may want to consider more basic concerns, especially in light of some of the newer approaches such as the use of artificial intelligence.

Does the assessment company provide evidence that the tool does not introduce adverse impact such as discrimination in some form?

A Business Insider article published in October revealed how Amazon fed 10 years of good-hire résumés into a system until the big data created a benchmark for performance.

The problem with this is, the company forgot to tell the computer that gender hires had changed over that decade. As such, the algorithm was systematically rejecting women. This process applied an old paradigm that all we need to do is clone our best rather than benchmarking an actual job. Building for the future by hiring based on the past is not the best approach.

Does the assessment provide statistical documentation that the assessment measures job-related performance?

A September Wall Street Journal article explored two companies using data-science or artificial intelligence to determine who gets hired. While the process may in time prove to be both reliable and predictive, at present there is very little data to support that micro-facial expressions, voice inflection and positive word choices reveal job-related soft skills. The key in this concern is on job-related skills. Human resources professionals are aware of the need to collect only interviews and application material that are specifically job-related.

Technological advancements are occurring at an ever-increasing rate.

Neurological discoveries and associated investigative tools are leading to new understandings of human behavior never before explored. While the future is bright, science requires time for peer review and refinement of new technologies.

—Ron Bonnstetter, Ph.D., senior vice president of research and development and director of the TTI SI Center for Applied Cognitive Research at TTI Success Insights (www.ttisuccessinsights.com) in Scottsdale, Arizona

Local Motors’ autonomous shuttle, Olli, was deployed in early August at the University at Buffalo as part of a partnership with the school and the State of New York. The shuttle is being used on campus for mapping, autonomous education and to test potential transportation options. localmotors.com

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LAW MATTERS TO BUSINESS

Are You Unintentionally Discriminating against Pregnant Employees?

Subtle or overt, consequences are equally severe

by Sarah O’Keefe

Despite clear laws designed to protect the rights of pregnant working women, discrimination against pregnant employees remains pervasive. Federal mandates like the Pregnancy Discrimination Act (PDA), Family and Medical Leave Act (FMLA), and Americans with Disabilities Act (ADA), along with the state-level Arizona Civil Rights Act, serve to insulate pregnant women from unfair treatment. However, not all employers practice what they preach, as is evident from examples below.

PREGNANCY DISCRIMINATION IS ON THE RISE

Recent data and court records establish pregnancy discrimination claims are on the rise. From prominent Fortune 500 companies to brick-and-mortar outfits, employers are systematically marginalizing pregnant workers, and some are unaware of their infractions. Whether or not pregnancy-related discrimination is intentional, the legal fallout can be severe.

Simply having anti-discrimination policies in place will not prevent the loss of potentially substantial monies in a court case. Conversely, some of the most prestigious corporations in the country that boast inclusive and high-integrity cultures can be the biggest offenders of subtle and overt pregnancy discrimination. For example, a pharmaceutical giant is facing a class-action lawsuit for denying opportunities to women, targeting pregnant employees and women returning from maternity leave. In one claimant’s account, she details her experience from being promoted and praised for her achievements and leadership to being demoted and laid off once she announced her pregnancy. Another was told her career “was not going anywhere” once she disclosed her pregnancy. She was passed up for advancement following the birth of her child.

Corporate America is not the only culprit. A notable retail leader is facing charges after a claimant asserts her employer failed to make reasonable accommodations, and put her pregnancy and safety at risk.

ARIZONA IS NOT EXEMPT

Sarah O’Keefe joined Burch & Cracchiolo in 2013 after completing an appellate clerkship for The Honorable Patricia K. Norris of Division One of the Arizona Court of Appeals. O’Keefe practices in labor and employment law and commercial litigation. bcattorneys.com

DEC. 2018

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INBUSINESSPHX.COM

Arizona is not exempt from the pregnancy discrimination epidemic. In fact, Arizona currently leads the nation in pregnancy-discrimination claims per capita, according to data collected from the Equal Employment Opportunity Commission. What accounts for this? Some believe employers misunderstand their level of power in a right-to-work state. In other words, employers seem less aware that federal laws are just as applicable in Arizona as they are everywhere else, and are more inclined to play by their own rules.

However, pleading ignorance won’t work. In 2012, a deli franchise was found to have discriminated and was required to pay punitive damages and back wages, and was subjected to injunctive relief.

Additionally, a local daycare company was sued by two women alleging their hours were drastically reduced because

Employers may misunderstand their level of power in a right-to-work state, but federal laws are just as applicable in Arizona as they are everywhere else.

of pregnancies. The employer placed one employee on call and failed to provide her with work hours, attributing the lack of work to the economic slowdown. Then, the company hired six new employees.

Regardless of the outcome of any court case, lawsuits consume time and money and mean that businesses will be less productive due to the burdens and stressors of litigation.

That’s why it’s important businesses be proactive and try to protect their organization.

MANAGEMENT NEEDS TO PROTECT THE BUSINESS

With pregnancy discrimination claims increasing exponentially nationwide, it is of paramount importance that business owners protect their organizations with proper safeguards in the form of education, training and action. They should consider the following steps, as well as seeking legal counsel, to ensure their company and staff are well-equipped to recognize this form of potential discrimination and comply with all applicable federal, state and local anti-discrimination laws: • Implement programs and re-evaluate leave and time-off policies in recognition of maternity and paternity leave.

• Educate Human Resources personnel on the FMLA and how to identify situations when it might be appropriate to engage with employees regarding time off.

• Provide policies and procedures in employee handbooks that recognize family needs and train employees to be sensitive in communications.

• Develop and institute ongoing educational and training classes to make sure all members of the organization understand anti-discrimination policies, and subtle behaviors that can be viewed as discriminatory.

• Ensure management-level employees and owners are trained in best practices for investigating, reporting and resolving discrimination claims in a timely manner.

• Foster an open and inclusive culture that allows all workforce members to feel equally valued.

• Create and abide by corrective processes designed to address noncompliance.

Preventing pregnancy-related discrimination in the workplace should not be a trial-by-fire exercise. A single misstep could prove costly both legally and financially, and undoubtedly damage a company’s reputation and culture in the process. It’s always advisable to seek legal counsel for clarity and direction when navigating this sensitive yet widespread issue.

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PROFILES OF THOSE WHO SUPPORT VALLEY BUSINESS

Great Leaders Driving Our Business Community Steering the challenges of 2018 into successes for 2019

by RaeAnne Marsh In an increasingly volatile business climate — buffeted not least by the stresses from continuous and increasingly rapid technological changes and unpredictable political forces — it’s the leadership that counts in keeping a company strong and moving forward.

In Business Magazine reached out to some of the Valley’s core businesses and asked the men and women at the helm to share the experience they’ve gained over this past year.

Especially, we asked them to look externally and consider what significant changes in the economy or their industry their company needed to address this past year and how they addressed those challenges, and look internally to review the best thing they’ve done over this past year in regard to management of their employees.

As our guest editor, Valley Leadership CEO Dave Brown, asks in his letter (page 11), How did they lead? The following pages offer great insights.

PROFILES OF THOSE WHO SUPPORT VALLEY BUSINESS

Making a Difference in Our Corner of the Economy from Sandra Watson

President and CEO, Arizona Commerce Authority

Since 2011, the ACA has worked 705 projects with companies that have committed to creating 119,936 projected new Arizona jobs and investing $13 billion in capital.

As Arizona’s statewide economic development agency, the economy is our business. I’m excited to say that over the past year, the momentum has continued to build and Arizona is receiving international attention for its accomplishments. Our unemployment rate is the lowest it’s been in a decade and more than 274,000 nonfarm jobs have been added since 2015. Arizona’s population has topped seven million, and our state is the fifth-fastestgrowing in the United States. In particular, Maricopa County is leading the nation in growth, ahead of the other 3,141 counties around the country. This speaks volumes about the excellent quality of life and economic opportunities people are confident they will find in Arizona. It is also a leading indicator that companies will continue to be able to access the workforce they need as they scale.

ADDRESSING CHALLENGES

Potential challenges faced by companies operating in Arizona are what the ACA is constantly on the lookout for.

While Arizona is fortunate to have a strong talent pool for employers to draw from, the ACA is continually seeking new ways to ensure that talent in our state has the skills our fastest-growing industries require. Manufacturing is one of those industries, which currently employs more than 160,000 Arizonans across more than 4,600 establishments in sectors ranging from semiconductor, to aerospace and defense, to automotive.

The strong growth in Arizona’s manufacturing sector is evidenced in several recent projects the ACA worked.

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Nikola Motor Company will create 2,000 jobs at its hydrogen-electric semi-truck plant in Coolidge; Lucid Motors, a luxury electric vehicle manufacturer, will employ 2,000 people at its facility in Casa Grande; Raytheon Missile Systems, Southern Arizona’s largest privatesector employer, has announced it is hiring nearly 2,000 people at its Tucson site; and Intel, which announced it will complete its Fab 42 operation in Chandler, is creating 3,000 new direct jobs manufacturing the most advanced semiconductors in the world.

To stay ahead of this incredible demand for manufacturing workers, in February of 2017 the ACA guided the formation of an historic partnership among the Maricopa County Community College District, Pima Community College and Central Arizona College. The three came together and signed a charter to create the Advanced Technologies Corridor and implement a uniform curriculum that will keep pace with rapid changes in business needs through a commitment to meeting rigorous third-party industry credentialing standards.

Advanced Technologies Corridor students can earn Industrial Technology certificates from the highly regarded National Institute of Metalworking Skills as well as an associate of applied sciences degree in Automated Industrial Technology from all three community colleges by the 2019-2020 school year. The NIMS certifications and AAS degrees can be used for entry and mid-level technician positions at Arizona’s manufacturing companies.

This is just one example of ways the ACA approaches staying ahead of potential challenges faced by businesses in our state.

INBUSINESSPHX.COM

COMPANY CULTURE

As in any company, our people are our greatest asset, and the ACA is committed to fostering a positive, inclusive culture and ensuring our employees have the tools they need to succeed in our mission to advance Arizona’s economy.

In the past several years, the ACA along with all other Arizona state agencies has begun operating under the Arizona Management System. Implemented by Governor Ducey, AMS applies lean principles and practices with a focus on continuous improvement to increase efficiency, measure results and save taxpayer money. As a part of the Governor’s vision for “ACA 2.0,” we have co-located with the other two state agencies responsible for promoting aspects of Arizona — the Arizona Office of Tourism and the Arizona-Mexico Commission. While the three agencies maintain separate and distinct organizational structures and missions, we are now housed in a single office space with an open floor plan. Also under ACA 2.0, the Office of Economic Opportunity was established as a data and analytics unit of the ACA to track Arizona’s competitiveness. Collectively, these changes have created stronger collaboration, knowledgesharing and efficiency.

In our past fiscal year, the ACA has structured a new process for prospective employees by implementing peer panel interviews to gauge cultural fit within the organization. This process also provides a potential new hire with introductions to a broader range of the agency’s staff and gives hiring managers additional feedback. In addition, we’ve provided current employees with increased opportunities for ongoing professional development via an online learning platform.

About Arizona Commerce Authority The Arizona Commerce Authority is the state’s

Arizona already has core competencies, including:

leading economic development organization, with

• Internet of Things (IoT)

a streamlined mission to grow and strengthen

• Education Technology

Arizona’s economy. Overseen by a unique public-

• Telemedicine

private-sector board chaired by Governor Doug

• Personalized Medicine

Ducey and comprised of leaders in business,

• Fresh Water Science

government and academia, the ACA is led by

• Agricultural Technology

President and CEO Sandra Watson. The ACA

• Renewable Energy

uses a three-pronged approach to achieving its

• Smart Materials

mission: recruiting out-of-state companies to

• Nanosatellites

expand their operations in Arizona, working with

• Autonomous Vehicles and Unmanned Aircraft

existing companies to grow their businesses, and

Systems (UAS)

partnering with entrepreneurs and companies to create new businesses in targeted industries.

Formed in 2011 as an evolution of the former

Under Governor Ducey’s leadership, Arizona has a track record of firsts in several of these

Arizona Department of Commerce, the ACA has

areas, including being the first state to issue an

worked 705 projects with companies that have

executive order supporting the development and

committed to creating 119,936 projected new

testing of autonomous vehicles, the first to lay

Arizona jobs and investing $13 billion in capital.

the groundwork for 5G technology and the first

This translates to a total impact of 272,242 direct,

to establish a sandbox program for the testing of

indirect and induced jobs and $164 billion in

innovative new financial products and services.

economic output.

With the Governor’s direction, the ACA’s strategy is

Under its current five-year strategic business

designed to continually build upon this success and

plan, the ACA remains focused on innovative

ensure the state maintains its competitive position

approaches to economic development. The plan

as a global leader in the emerging technologies

centers on leveraging next-gen trends in which

that are rapidly changing traditional industries.

AT-A-GLANCE Year founded in the Valley: 2011 Industry: Economic Development

• Custom site selection services

Top local executive/position: Sandra Watson, President & CEO

• Labor market and economic analysis

Number of years with company: 7 with the ACA (since its establishment), in addition to more than 20 at the former Arizona Department of Commerce Number of Valley employees: 58 Website: www.azcommerce.com

INBUSINESSPHX.COM

Top 5 services/products: • Workforce development assistance • Small-business, entrepreneurship and innovation programs • International trade and export counseling Greatest 2018 milestone for the company: With approval from our board of directors in the first quarter of fiscal year 2018, the ACA officially adopted and began operating under our new five-year strategic business plan.

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PROFILES OF THOSE WHO SUPPORT VALLEY BUSINESS

Making a Difference in Our Corner of the Economy from Derrick Hall

President and CEO, Arizona Diamondbacks

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DEC. 2018

ADDRESSING CHALLENGES

Perhaps the greatest area of impact for us to take advantage of and set a trend for the rest of the league was marketing games toward college students. With so many now living downtown, or having simple Light Rail access from campuses to our stadium, we created direct messaging avenues to make occasional special ticketing offers and locations to them in mass. They enjoyed it and took advantage of it, as our Student Pass program was up nearly 40 percent in tickets sold and 65 percent in revenues.

We also needed to create a strategy and workforce to support a new business in booking the stadium with nonbaseball events. We were one of just a few teams that did not have that ability until now. This will create new revenues for us that will be spent on stadium upgrades and capital improvement needs, allowing us to continue directing baseball revenues toward the product on the field, as our ownership group has never put a penny in its pocket. They are committed to improving the talent on the field and the building in which we play.

COMPANY CULTURE

I would note two programs that made a difference.

First, we allowed employees to take paid time off to volunteer in the community. This helped lead to our organization surpassing the $60-million mark in giving in our 20 years. Secondly, we created a D-backs Leadership Academy for our up-and-coming phenoms.

We invited 25 for the inaugural class and provided them with supplies, a syllabus, books, assignments, field trips, special speakers and more. It was a tremendous first year and one that all other employees watched and now strive to become part of in the future. We feel a responsibility to create tomorrow’s leaders today and are willing to invest in their future.

Photo courtesy of Arizona Diamondbacks

[Booking Chase Field] will create new revenues for us that will be spent on stadium upgrades and capital improvement needs, allowing us to continue directing baseball revenues toward the product on the field, as our ownership group has never put a penny in its pocket. They are committed to improving the talent on the field and the building in which we play.

It is very clear that the economy is in strong recovery and companies are confident about spending again. They also seem to be investing in their employees, which was an indication that the somewhat stagnant nightly suite rentals would be back in high demand. That proved to be true as our sales force focused on local companies and hospitality opportunities, and those particular sales were up nearly 20 percent. Additionally, the industry was experiencing a slight downturn in overall attendance yet an increase in revenues, showing signs of fans being willing to pay more for premium seats and locations. The decline was the result of poor weather early in the season throughout most of the country. We all felt the need and urgency to do our part to improve those industry numbers. We were able to focus on some key areas of opportunity and increased our average attendance.

INBUSINESSPHX.COM

taxes from ticket sales, merchandise, utility bills, hotel bills, advertising revenue, maintenance and repair bills, concessions, food and more. The team also privately built Salt River Fields at Talking Stick, their shared Spring Training home with the Colorado Rockies and SRPMIC, the first professional sports training facility built on tribal land. More than $350 million of economic impact is associated annually with the Cactus League.

Led by with President and CEO Derrick Hall, the fourth-longest tenured chief executive in Major League Baseball, the D-backs’ leadership team has combined total of nearly 400 seasons of experience in baseball and the organization is annually named among the best places to work in Arizona. The team’s unique workplace culture has landed it among the best places to work in all of sports by media outlets such as Forbes and Yahoo.

In the community, Hall has positioned the D-backs as one of the largest philanthropic entities in the Valley, as those efforts come from both the organization itself and the Arizona Diamondbacks

About Arizona Diamondbacks

Foundation. Established in 1997, the Foundation focuses its efforts on three main areas of need:

The mission of the Arizona Diamondbacks is

D-backs won the first major championship for the

homelessness, indigent healthcare and children’s

to provide industry-leading entertainment in

state of Arizona in what is widely considered to be

programs of all types, including education and youth

a clean, safe and family-friendly environment

among the best World Series of all time.

baseball field development. Through fundraising

and to make a positive impact on its fans and

The total economic impact of the franchise

activities, the organization and the team’s charitable

civic partners by focusing on team performance,

to the Valley and state has topped $8 billion or

arm has raised and donated more than $60 million to

fan experience, financial efficiency, workplace

approximately $415 million per year, which includes

the Arizona community.

culture and community contribution. In doing so, the organization will consistently compete for championships; treat its customers to quality service and entertainment; invest in its product, employees and fans; and establish and maintain a position of leadership in the community.

On the field, the D-backs have reached the postseason six times in 21 seasons, the secondhighest percentage all-time (29 percent) behind only the New York Yankees. Most recently, the team won the Wild Card in 2017 and reached the National League Division Series. In 2018, the team had a record payroll of nearly $140 million and posted its second consecutive winning season. In 2001, the

AT-A-GLANCE

Photo courtesy of Arizona Diamondbacks/Angela Denogean

Year founded in the Valley: Established in 1995; first season of play in 1998

• Fan-friendly fun and entertainment

Industry: Sports and Entertainment

• High quality, competitive Major League Baseball

Top local executive/position: Derrick Hall, President & CEO

• Popular merchandise and concessions options at the ballpark

Number of years with company: 13 Number of Valley employees: 400 full-time; 1000 total, including part-time Website: www.dbacks.com

INBUSINESSPHX.COM

Top 5 services/products:

• Hospitality options (i.e. suites, etc.) for local businesses • Marketing solutions through corporate partnerships Greatest 2018 milestone for the company: Surpassed 50 million fans and $60 million in charitable giving in franchise history

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PROFILES OF THOSE WHO SUPPORT VALLEY BUSINESS

Making a Difference in Our Corner of the Economy from Pam Kehaly

President and CEO, Blue Cross Blue Shield of Arizona

While our plans are built around a more nimble and innovative approach to the market, at their core is our organization’s unchanging commitment to improving the health of Arizonans.

What were two or three significant changes in the economy or your industry that your company needed to address this past year?

The federal tax reforms instituted last year created an unexpected projected lift to our 2018 net income. We had a decision to make: drop the dollars to the bottom line or reinvest in the company and services for our members. The decision to reinvest was easy, but how to reinvest was the harder part. I called a leadership meeting—titled “Monies from Heaven”—and asked that they each come with their top two ideas. The most significant investment we agreed on was a $10 million investment to support Gov. Doug Ducey’s work on opioid overuse in the state. Sadly, we see almost four deaths a day in Arizona due to this problem. Investing in our community aligns with our mission to improve the quality of life for all Arizonans, while supporting our customers and members in dealing with this national epidemic.

To date we have assembled a community advisory board of key local leaders, have initiated a grant program that has already awarded more than $1 million, and have incented Arizona doctors to become certified in Medication-Assisted Therapy. This is just the beginning, with much more planned over the next year to positively impact this tragic issue.

How did you address/overcome the challenges?

The Affordable Care Act (ACA) has provided access to healthcare for millions who were previously uninsured.

And while the ACA has many positive outcomes, it comes with its share of challenges. Consistent tinkering with the legislation has created an environment of uncertainty, making it very difficult to project costs, resulting in market withdrawals, significant premium increases, and frustrated consumers. These uncertainties resulted in BCBSAZ’s decision to withdraw from the Exchange in Pima and Maricopa counties for 2017. This action angered many Arizonans who believe our position as a local, not-for-profit Blue plan creates an obligation to offer a

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DEC. 2018

solution for all Arizonans. And they are right. We made the decision to re-enter Pima County in 2019. A tremendous amount of work was required by the team to make this reentry happen, and there is a financial risk to the company, but we do believe this move aligns with our mission.

What is the most impactful decision/moment over this past year in regard to management of your employees that impacted the company and or our community?

Late last year, a number of executive retirements at Blue Cross Blue Shield of Arizona, including that of the former CEO, brought new leadership to the organization.

In my first few months in my new role, I spent a lot of time listening: to our employees, our customers, and key stakeholders in the community. I learned that the organization has great strengths. We have strong relationships in the community, and have earned a level of trust among our customers and other stakeholders. Blue Cross Blue Shield of Arizona also has a strong culture. Our employees are purpose-driven and dedicated to providing the best service to their customers. Indeed, Blue Cross Blue Shield of Arizona employees are more engaged than anywhere else I’ve worked.

I also learned that our employees are ready for change.

Change is always hard, but the marketplace is moving at warp speed, and customers are demanding new kinds of solutions. We changed our organizational structure to align more closely with our customers, we reduced organizational layers and increased spans of control for managers, we revamped our strategic plan, and we are in the midst of driving a culture change to a more nimble, market-driven, accountable organization. While our plans are built around a more nimble and innovative approach to the market, at their core is our organization’s unchanging commitment to improving the health of Arizonans. Our mission has not changed, but I believe the organizational changes and strategic roadmap we have ahead of us will be a game-changer for our organization.

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About Blue Cross Blue Shield of Arizona Blue Cross Blue Shield of Arizona (BCBSAZ) is

overall health of our communities by reaching adults

committed to helping Arizonans get healthier faster

and youth. Examples include:

and stay healthier longer. With a focus on connecting

The Walk On! program, which has reached nearly 330,000 elementary school-aged children since

Mobilize AZ is Blue Cross Blue Shield of Arizona’s

it began 13 years ago, aims to motivate Arizona

people with the care they need, BCBSAZ offers

portfolio of public health initiatives that target the

fourth- and fifth-graders to increase their fruits and

health insurance and related services to nearly 1.5

conditions where Arizona ranks lower than the U.S.

vegetables, eliminate soda and add more activity to

million customers.

average. Mobilize AZ was launched in August 2018

their day.

BCBSAZ, a not-for-profit company, is an

with a $10-million multi-faceted program to fight

Get Fit. Don’t Quit! empowers Arizonans to

independent licensee of the Blue Cross Blue Shield

the opioid epidemic, and subsequently implemented

live a healthier lifestyle through engaging videos

Association. The company employs nearly 1,500

plans to address mental health and diabetes.

with tips on how to be more active, eat better and

people in its Phoenix, Chandler, Flagstaff and

Nourishing Arizona works with organizations

live well. Teaming up with fitness icon Jake “Body

Tucson offices. Through advanced clinical programs

across the state to empower Arizonans to make

by Jake” Steinfeld, the program is built around

and community outreach, BCBSAZ is moving

healthier food choices to improve their long-

the idea that small steps lead to big payoffs, and

health forward.

term health. To date, the program has shared

shows people fun, simple, positive changes they

health and nutrition information with more than

can make in their day-to-day lives to support

4 million Arizonans.

long-term wellness.

BCBSAZ’s signature programs and events strive to inspire health in Arizona and make an impact on the

AT-A-GLANCE

Year founded in the Valley: 1939 Industry: Health Insurance and related health services Top local executive/position: Pam Kehaly, President and CEO Number of years with company: 1 Number of Valley employees: 1,485 Company websites: w ww.azblue.com

INBUSINESSPHX.COM

Top 5 services/products: • Individual and family health insurance plans • Commercial benefit plans for employer groups, along with specialty products including dental, life and disability • Plans are also available for Medicare eligible seniors Greatest 2018 milestone for the company: In August of 2018, Blue Cross Blue Shield of Arizona (BCBSAZ) launched Mobilize AZ, a multi-faceted program to address the misuse of opioids and other substances and reduce overdoserelated deaths in Arizona. With BCBSAZ investing $10 million over three years, the initiative supports prevention, treatment, and recovery programs to help providers, the community and local organizations fight against the opioid epidemic.

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PROFILES OF THOSE WHO SUPPORT VALLEY BUSINESS

Making a Difference in Our Corner of the Economy from Chuck McLane

Senior Managing Director, CBIZ and MHM

This year was all about tax reform. The tax law change was the biggest comprehensive change in many years and our team had to get up to speed very quickly on all the tax law changes.

This year was all about tax reform. The tax law change was the biggest comprehensive change in many years and our team had to get up to speed very quickly on all the tax law changes. We had some difficulty because the interpretations and implementation guidance our clients were looking for had not been fully developed yet.

We hosted webinars throughout the year to help people better understand the immediate and more long-term ramifications of the new tax law. For audit services, the rate changes alone required significant adjustment to client financial statements and disclosures. For tax services, the changes provided opportunities to meet with clients to develop and implement tax planning strategies to maximize tax reform benefits. Additionally, tax reform had a very positive impact on the economy.

Many companies reinvested tax savings back into the economy by offering higher wages or adding employees, new technologies and new facilities. All of these changes had a positive impact on the volume of our business.

ADDRESSING CHALLENGES

The tax law changes and improved business climate brought about an increase in business and a challenging and competitive market for people. In a typical year, we hire a large number of associates from college campuses and a lesser number of experienced individuals. This year, we have been tasked with hiring more people at all levels. In order to make our work environment more appealing, we made several changes. We adopted a work environment that allows experienced personnel more options on when and where the work is done. We moved

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DEC. 2018

into a new office with more open and collaborative work areas and natural light. We are also using technology to automate some tasks and provide greater efficiency in what we do.

Our growth is leading to more opportunities for our personnel to advance in their careers at an accelerated rate. We also conducted an employee engagement survey to better understand our strengths and areas where we can continue to improve, including additional modifications to our work environment. We were pleased to learn through the survey that our team approved the changes we have made.

COMPANY CULTURE

The most impactful decision we made over this past year was selecting a new office. We had been in our prior office for 25 years. Over that period of time, we had grown and remodeled and revamped. It was time for something new. Finding the right location was a long and difficult task. We received outside assistance from Darius Green at Keyser and others. We also included input from our team. With the help of representatives across all our service lines, we selected the colors, furniture, layout and everything else we needed to develop an appealing office atmosphere. Our team enjoys being in this new and modern office environment, and it has had a positive impact on everything from productivity to recruiting. The layout allows for greater collaboration among our various service lines and we have seen an increase in positive energy and ideas.

INBUSINESSPHX.COM

developments through our proactive client service model and wealth of insights, including local seminars, webinars and online resources. We then incorporate the changes into action, ensuring our clients’ strategies reflect and respond to new developments.

MORE THAN YOUR TRADITIONAL ACCOUNTING PROVIDER Our approach, refined over the years, is simple: listen and learn about our clients’ business, their challenges and their goals. At the end of the day, we are in the business of helping people, and our professionals take pride in developing relationships with our clients, helping them grow and earning their trust as key advisors. We problem-solve with each client, bringing an attention to detail and an in-depth understanding of their business and industry to every concern, risk or opportunity that comes their way.

Providing the highest quality solutions to our clients only works if we invest in the people, technology and processes to support our efforts. We do this in many

About CBIZ and MHM At CBIZ and MHM, we are uniquely structured to

ways, including specialized training, focused recruiting, mentorship, client stewardship, and implementing

Our Phoenix office has been listed as a Top

the technology to simplify the increasingly complex

provide a range of financial and business services.

Accounting Firm by Ranking Arizona, The Valley’s

CBIZ is a business consulting, tax, financial services,

Healthiest Employers and a Top Company to Work

and benefits and insurance provider that works

For in Arizona by azcentral.com. Our experienced

closely with MHM, a national, independent CPA firm.

professionals specialize in serving businesses,

Together, we are one of the Top Ten accounting

not-for-profit organizations, and high-net-worth

providers in the nation, working seamlessly with

individuals. We also offer deep industry expertise in

each other so that we can support our clients’

construction, healthcare, retail, manufacturing and

success. Our membership and active participation in

distribution, and real estate.

Kreston International, an international network of independent accounting firms, extends our reach to more than 125 countries.

business environment. When our professionals have the resources they need to be successful, it helps ensure they provide the exceptional service that we believe every client deserves.

SOLUTIONS FOR SUCCESS We deliver audit and assurance solutions that meet the industry’s highest technical and ethical standards, including financial statement audits, employee benefit plan audits and IT assurance services. Our tax professionals help identify tax planning opportunities and compliance, including entity structuring, state and local tax consulting, federal tax incentives, and estate planning and wealth transfer. We can also assist with complex transactions, accounting advisory, litigation support and valuation needs.

As the laws and regulations change, our professionals help clients stay on top of the latest

AT-A-GLANCE

Year founded in the Valley: 1977 Industry: Accounting

• Accounting

Top local executive/position: Chuck McLane, Senior Managing Director

• Attest

Number of years with company: 16 Number of Valley employees: 103 Company websites: w ww.cbiz.com/phx www.mhmcpa.com

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Top 5 services/products: • Tax • Transaction Advisory • Business Consulting Greatest 2018 milestone for the company: Successfully transitioning to our new office

DEC. 2018

37

PROFILES OF THOSE WHO SUPPORT VALLEY BUSINESS

Making a Difference in Our Corner of the Economy from Marc Schmittlein

President and CEO, CopperPoint Insurance Companies

As CopperPoint Insurance Companies grow and expand we remain committed to supporting the Arizona community and ensuring that our Phoenix headquarters is a vibrant and engaging place to work.

We are on a journey and I couldn’t be more excited about CopperPoint Companies’ progress and the momentum we have — to realize our vision to be a top-tier regional insurance company. In 2018, we took many steps forward toward our vision, and three strategic initiatives stand out for me as truly game changers for our future.

In January, we acquired Pacific Compensation Insurance Company, adding to our geographic footprint and adding further expertise and talent to help the CopperPoint family grow. In March, we launched Commercial lines, expanding our portfolio of commercial insurance solutions to better meet marketplace needs.

And in October, we successfully implemented the Other States Expansion strategic initiative, giving us the business infrastructure to expand geographically under the CopperPoint brand. These strategic initiatives have enabled us to become a stronger local company, and that’s exciting for CopperPoint and Arizona. In fact, we were recently named the fifth-fastest growing private company in Arizona, reflecting our growth and investment in the state!

ADDRESSING CHALLENGES

CopperPoint has always been a vital part of the Arizona economy, with roots that trace back to 1925. As we chart a course of growth and diversification, we are now an even stronger and attractive company that is investing in the local economy. For example, the 2018 launch of commercial property, auto and general liability coverages to Arizona brings more opportunity for our employees, local agent

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partners and customers, as we expand and build upon our expertise and specialization in workers’ compensation.

We are active board members in the Greater Phoenix Economic Council, Greater Phoenix Leadership and local chambers, where we work with other business colleagues to help drive growth in Arizona. CopperPoint and its employees have had a major impact in the community, as we work together to invest in and support the diverse local communities where our customers and employees live and work. We believe corporate responsibility requires active engagement with nonprofits and civic organizations through sponsorship, economic development and employee volunteerism, and our efforts have been widely recognized. Most recently, CopperPoint was awarded a Corporate Philanthropy Award for medium-sized Arizona companies in the Community Impact category, sponsored by the Phoenix Business Journal.

COMPANY CULTURE

As we grow and expand we remain committed to supporting the Arizona community and ensuring that our Phoenix headquarters is a vibrant and engaging place to work that offers excellent opportunities to our local workforce. Realizing our business vision and balancing that with community engagement is a vital part of our company culture. This is a point of pride for us all. We have received numerous industry awards, which serve to illustrate the vibrancy of the organization and how engaged CopperPoint employees are.

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As we chart a course of growth and diversification, we are now an even stronger and attractive company that is investing in the local economy.

Utah. On December 31, 2017, CopperPoint acquired California-based Pacific Compensation Insurance Company, further diversifying and expanding its ability to serve business owners.

CopperPoint is recognized for exceptional customer service and dedicated employees who demonstrate the company’s core values of being principled, committed, human, inventive and hardworking.

The company also has been recognized locally and nationally for its community involvement through its charitable giving and business outreach programs. Giving back to the communities it serves is a corporate strategic pillar and a strong part of the company’s culture, as employees actively volunteer and donate to a myriad of nonprofits and civic organizations. Last year, CopperPoint’s Arizona

About CopperPoint Insurance Companies

employees reported 4,449 volunteer hours, and 30

Founded in 1925 as a provider of workers’

equipment breakdown, employment practices

boards. CopperPoint’s corporate outreach focuses

compensation, CopperPoint Insurance Companies

liability and umbrella — to ensure peace of mind to

on organizations that impact education, economic

is dedicated to protecting and empowering

business owners, their employees and customers.

development, health and safety, diversity, and arts

conscientious business owners. The company’s

company leaders served on 47 nonprofit and civic

Headquartered at CopperPoint Tower in central

and culture.

vision is to be a top-tier regional commercial

Phoenix, the company’s 333 Arizona-based employees

insurance company and the preferred partner

are led by President and CEO Marc Schmittlein.

for business owners, agents and brokers in every

Since Schmittlein joined the company in 2016,

community it serves.

As a mutual insurance company with $4 billion in assets, a policyholder surplus of nearly $1.5 billion and no debt, CopperPoint embodies stability and

CopperPoint has become one of the fastest growing

sustainability for more than 13,000 policyholders,

private companies in the state. Along with its

generating approximately $400 million in revenue.

compensation, CopperPoint now offers an expanded

growth in additional commercial lines, CopperPoint

This financial stability has led A.M. Best to award

line of commercial products — including commercial

is expanding its workers’ compensation footprint

the CopperPoint Insurance Companies an A-

property, general liability, cyber, commercial auto,

in California, Colorado, Nevada, New Mexico and

(Excellent) rating.

As Arizona’s premier provider of workers’

AT-A-GLANCE

Year founded in the Valley: 1925, as the State Compensation Fund (SCF Arizona)

• Workers’ compensation

Industry: Financial Services (Insurance)

• General liability

Top local executive/position: Marc E. Schmittlein, President & CEO

• Commercial auto

Number of years with company: 2½ years

• Umbrella

Number of Valley employees: 333 in Arizona; 487 overall Company website: www.copperpoint.com

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Top 5 services/products:

• Commercial property

Major 2018 milestone for the company: Acquisition of Pacific Compensation Insurance Company, a California workers’ compensation company

DEC. 2018

39

PROFILES OF THOSE WHO SUPPORT VALLEY BUSINESS

Making a Difference in Our Corner of the Economy from Jeff Meshey

President and CEO, Desert Financial Credit Union

Our mission is sharing success with our members, employees and our community.

Desert Financial takes pride in its mission to share success with its members, employees and the Valley community. In 2018, the credit union introduced cash-back bonuses for members; added new employee benefits such as paid parental leave; and supported our community through fundraisers, grants, scholarships and volunteer projects. The total of these efforts has exceeded $7 million for the year.

ADDRESSING CHALLENGES

In the past year, two of the most significant challenges we needed to address were brand confusion and an uncertain financial services landscape.

The name Desert Schools created an identity issue that made it difficult to compete in the financial market. From our research, we knew that more than just an educational campaign was needed to overcome this challenge, which led us to the decision to rebrand. Throughout the rebranding process, we used feedback and insights from our members and employees to guide our name selection process. We found that both groups understood the need to rebrand, but that both already had strong, positive feelings toward the brand. Because of this, we wanted to ensure that certain elements (like the color blue and the word “desert”) were retained in order to keep brand affinity with our already established constituents. With the help of our community, we decided to become Desert Financial. Members and employees alike said the new name made sense for us and clarified what we do as an organization. Coming up on one year under the new brand, we are already seeing fantastic results and are excited to see what the future holds.

The other challenge was the changing financial services industry. We believe the business model that made us successful for the last 79 years will not be the

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same one that leads to success in the future. While none of us knows exactly what this will look like in the end, we can’t sit still and wait until it’s clear or we’ll end up like Blockbuster Video or Kodak.

Like most businesses today, we are focusing on digital transformation in order to provide a great experience for our members across all mediums. However, we’re also identifying new sources of business for the credit union.

We’ve created two new subsidiary companies to provide services to other credit unions that may not have certain resources or expertise in-house. The first is SwitchThink Solutions, an IT company, and the second is Define Mortgage Solutions, offering mortgages and mortgage servicing to other credit unions. We believe that forming these companies can be key for Desert Financial’s future success, and can help other credit unions compete in today’s environment.

COMPANY CULTURE

In addition to addressing these challenges, we also took the opportunity in 2018 to focus on our culture, to refine our mission, vision and values, and to get all of our employees involved. Our mission is sharing success with our members, employees and our community. Our vision is to make lives better through the work we do. Our values are personal drive, passion to help, big thinking, team mindset and people smarts. Our employees have wholeheartedly embraced our mission, vision and values and this has resulted in a renewed cohesiveness and excitement across our organization. Working on culture may sound like fluffy stuff to some people, but this is actually the hard work that can help take an organization from good to great.

It’s such an exciting time to be a part of Desert Financial Credit Union and I’m honored to be able to lead a talented and passionate team.

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About Desert Financial Credit Union Celebrating its 79th year in Arizona, Desert Financial Credit Union is Arizona’s largest credit union, with $4 billion in assets, more than 330,000 members and 48 locations across the Valley.

Originally named “AEA #1 Federal Credit Union,” Desert Financial was chartered in 1939 by 15 school teachers who pulled together $78.75 to start a credit union to serve the financial needs of area teachers. In 1972, the credit union rebranded to Desert Schools Credit Union to better convey which market they served.

In 2004, Desert Schools expanded its charter to serve three Arizona counties (Maricopa, Gila and Pinal) in order to serve the entirety of the Phoenix metropolitan market.

To address misconceptions that the credit union served only members of the education community, in 2018, Desert Schools Credit Union rebranded to become Desert Financial Credit Union. The rebranding efforts were promoted through a locally aired commercial during Super Bowl LII, featuring Phoenix native Alice Cooper singing his hit song “School’s Out.”

AT-A-GLANCE

Year founded in the Valley: 1939 Industry: Financial

• Savings and checking accounts

Top local executive/position: Jeff Meshey, President & CEO

• Mortgage (and first mortgage) loans

Number of years with company: 24 years Number of Valley employees: 1,100+ Company website: www.desertfinancial.com

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Top 5 services/products: • Home equity loans • Business loans • Vehicle loans Greatest 2018 milestone for the company: Giving back more than $7 million to members, employees and the community

DEC. 2018

41

PROFILES OF THOSE WHO SUPPORT VALLEY BUSINESS

Meet Leonardo Loo, Phoenix-office Managing Partner I was initially drawn to Quarles & Brady in 2011 by the firm’s team approach and its commitment to developing client relationships based on true collaboration.

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It is often said that one’s past does not determine one’s future. However, Leonardo Loo, who on October 1, 2018 was named the Phoenix-office managing partner of Quarles & Brady LLP, takes great pride in honoring his past as he helps shape Arizona’s future.

“I was born in Venezuela, and my family roots are in China and Mexico,” says Loo, who is fluent in both Spanish and Chinese. “And my wife is African-American, giving our children a more diverse background than either of us.”

A member of the firm’s Business Law, Finance and International Services Law Practice Groups, Loo practices in the areas of mergers and acquisitions, commercial financing, international transactions, securities and general corporate law for clients in a wide variety of industries. Loo served as chair of the Phoenix Business Law Practice Group since 2014 before taking the reigns as Phoenix-office managing partner earlier this year.

“I was initially drawn to Quarles & Brady in 2011 by the firm’s team approach and its commitment to developing client relationships based on true collaboration. I am proud to be working with clients in the top of their industry like Arizona State University in its acquisition of the Thunderbird School of Global Management, as well as the work we’ve done for GlobalTranz Enterprises as part of its roll-up strategy, among many others.”

Championing diversity and good works beyond the office, Loo currently serves on the board of directors for Chicanos Por La Causa, Inc., where he is the immediate past chairman. “CPLC has been a rewarding community organization to work with because its dedicated staff of over 900 directly impact more than 306,000 people annually throughout Arizona, Nevada and New Mexico.”

In addition to his leadership roles within Quarles & Brady and CPLC, Loo serves as general counsel for both

the Arizona Hispanic Chamber of Commerce and the Black Chamber of Arizona. Arizona Governor Doug Ducey recently honored Loo with an official commendation for his service to the legal community and for his distinguished leadership. He has been named as one of the “Most Admired Leaders” by the Phoenix Business Journal, as well as among the top “Minority Leaders in Arizona” and “Arizona Business Leaders” by Az Business Magazine. Loo was also previously honored with a “40 under 40” award by the Phoenix Business Journal and is a graduate of Scottsdale Leadership Class XIX. Loo is also involved with the Arizona Asian American Bar Association, and in 2013 was honored by the Phoenix Chapter of the National Association of Asian American Professionals with its “Community Leader of the Year” award for his devotion to the community and outstanding service to the Valley.

“As I settle into my first year as the Phoenix-office managing partner at Quarles & Brady, I see my efforts primarily focused in three key areas: First, our firm has enjoyed a rich history in the local legal and business community, and I am eager to continue to work with our clients to provide top-notch legal services and innovative solutions to meet their goals. Second, I want to deepen our commitment to our community through our various outreach, inclusion and volunteer programs, and pro bono work. Finally, I am looking forward to working with my colleagues to continue to cultivate and develop our internal talent while, at the same time, attracting skilled lateral attorneys as part of our growth plans in the Southwest. While competition in the legal services sector will continue to intensify, I am confident in our firm’s ability to operate well in that environment through our commitment to service excellence for our clients.”

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Quarles & Brady strives for excellence in all it does: in quality of legal work, service to clients, strength and diversity of attorneys and staff, superior work environment, and involvement in each of the communities it calls home.

Three principles govern the firm’s approach to legal service: Quarles & Brady practices value. The firm is structured to provide world-class legal representation efficiently and cost-effectively, delivering a valuable return on the client’s investment. From tailored alternative fee arrangements to proactive strategic advice, smart staffing and regular performance checks, it enters relationships with a commitment to give clients what they pay for and then some.

Quarles & Brady defines success by clients’ metrics. Whether the firm is establishing an individualized set of documented service expectations and standards for each client or building custom teams of legal professionals to address each particular need, Quarles & Brady is laser focused on helping clients achieve business

About Quarles & Brady

goals on their terms.

Quarles & Brady understands its clients. The

Quarles & Brady is a multi-disciplinary, full-service

of legal services to corporate and individual clients,

firm takes the time to learn about each client’s

AmLaw 200 firm with more than 500 attorneys

ranging from small entrepreneurial businesses

business, its competitive environment and its

nationwide and offices in Phoenix, Scottsdale,

to Fortune 100 companies. The firm is known in

strategic goals. This broad-based knowledge guides

Tucson, Chicago, Indianapolis, Madison, Milwaukee,

the community as a full-service business law firm,

legal counsel and the drive to achieve longer-term

Minneapolis, Naples, Tampa, and Washington, D.C.

with local attorneys who excel in healthcare and

objectives for each client while building long-

Its clients include major national and multinational

life sciences, business law, labor and employment,

standing client relationships over quick wins.

corporations, technology companies, educational

real estate, data privacy and security, and complex

and research institutions, municipalities and

litigation. The local team has been honored by

to the firm’s recent recognition as a “2018 Best Law

government agencies, charitable organizations,

Best Companies AZ for the past decade as being

Firm” by Best Lawyers and U.S. News Media Group,

industry executives and high-net-worth individuals.

among the “Most Admired Companies in Arizona”

including “Law Firm of the Year” in Franchise Law.

They are industry leaders in technology, energy,

and was the first-ever business to be honored by

The firm earned first-tier rankings in nine practice

financial services, healthcare, insurance,

the Arizona Diversity Council with the “Corporate

areas nationally and 80 first-tier regional rankings.

pharmaceuticals, real estate and manufacturing, to

DiversityFIRST™ Leadership Award” for its

In addition, Quarles & Brady has been honored by

name just a few.

outstanding accomplishments in the promotion and

Working Mother as one of the “2018 Best Law Firms

advancement of diversity through inclusion and

for Women,” in recognition of using best practices in

strong leadership.

retaining and promoting women lawyers.

With more than 100 attorneys in three local Arizona offices, Quarles & Brady provides an array

AT-A-GLANCE

Year founded in the Valley: 2000 Industry: Legal Services Top local executive/position: Leonardo Loo, Phoenix Office Managing Partner Number of years with Firm: 7 Number of Valley employees: 175 Company website: www.quarles.com

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Keeping these principles top of mind contributed

Top 5 services/products: Full-service business law firm. Key practice areas include, among others: • Business Law • Commercial Litigation • Labor & Employment • Real Estate • Health Law Greatest 2018 milestone for the company: Celebrating more than 125 years of client service by being named a Best Law Firm by Best Lawyers, including “Law Firm of the Year” in Franchise Law

DEC. 2018

43

PROFILES OF THOSE WHO SUPPORT VALLEY BUSINESS

Making a Difference in Our Corner of the Economy from Matthew P. Feeney Chair, Snell & Wilmer

We believe those law firms that sincerely care about their clients and their issues will continue to thrive. Deeply woven into our firm’s culture is our commitment to building and deepening relationships with our clients, with our communities, and with others in the firm. If we continue to deliver on that promise, we will always be successful.

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The speed of the legal industry and the practice of law continues to increase dramatically. In today’s world, everything moves more rapidly, and technology has made communication virtually instantaneous. This is not always ideal when it comes to law, as sound legal counsel often requires reflection. On the positive side, however, technology has helped make the practice of law more transparent to clients, giving them a thorough understanding of the legal business, including billing rates and capabilities.

On a related note, we have also seen clients expect (rightfully so) that their law firms will provide legal services in an efficient manner and deliver value in line with fees paid. This is where our outstanding attorneys and staff, and our geographic footprint, serve as a competitive advantage. Clients recognize that there are great lawyers throughout the country, not just in large East and West Coast cities. As younger lawyers advance into leadership positions as general counsels for companies, the individuals who give us much of our work, we find they are less interested in where their law firms are located and more concerned about capability and cost.

This is a trend rooted in the pervasiveness of technology.

ADDRESSING CHALLENGES

At Snell & Wilmer, we understand that any law firm that is complacent is in trouble. To quote American humorist Will Rogers, “Even if you’re on the right track, you’ll get run over if you just sit there.” Our approach is to always look for new ways of doing things and for opportunities to provide more value to our clients. To that end, you

must be willing and able to make investments in a lot of areas. Over the past several years, we have significantly increased our investment in various technologies designed to promote efficiencies, hone attorneys’ professional skills and drive client-focused results. We have maintained a lean cost structure based, in part, on the cities in which we have a presence (as we have generally avoided high-cost markets). We have invested in sophisticated pricing tools and staffing models designed to deliver legal services at the appropriate level. We have continued to emphasize and position our practice groups as our business units — we manage the firm via practice groups, not by offices. And we have provided our practice group leaders with the information, resources, tools and freedom they need to effectively manage their teams and serve our clients.

CORPORATE CULTURE

Leadership advancement at all levels of Snell & Wilmer remains one of the firm’s primary objectives. We believe those law firms that sincerely care about their clients and their issues will continue to thrive. Deeply woven into our firm’s culture is our commitment to building and deepening relationships with our clients, with our communities, and with others in the firm. If we continue to deliver on that promise, we will always be successful.

Such an approach requires us to continually invest in the next generation of attorneys and staff members and provide them with tangible paths to leadership. We are not just focused on the next year or two; we are focused on the next decade and beyond.

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As a relationship-based law firm, Snell & Wilmer recognizes one straightforward fact: Our clients care less about our internal workings and more about the degree to which we understand their business, their industry, and the trends and challenges that can affect their ability to minimize risk and maximize success. This strong external focus and the diverse experience of our attorneys enable us to help clients solve problems, achieve opportunities and deal efficiently and effectively with an ever-changing economic, business and legal landscape.

Snell & Wilmer is organized into more than five dozen practice areas, so that clients have easy access to attorney skills and knowledge specific to a particular business and industry. Yet many businesses face legal issues that require crosspractice experience. We have the resources to build teams of attorneys from different practice areas and locations who can work together seamlessly to solve the most complex legal challenges.

Central to any business is the desire to decrease expense and drive revenue. When dealing with legal matters that involve proprietary business information, trust between the client and our firm is paramount. Snell & Wilmer provides creative yet practical client-specific solutions. Professional

About Snell & Wilmer Snell & Wilmer’s geographic reach is extensive, with

integrity and fast response to client needs guide Three factors set us apart from other law firms:

more than 425 attorneys in 12 locations throughout

our external focus, expansive legal experience

the United States and in Mexico: Phoenix and

married with our flexible approach, and earned

Tucson, Arizona; Los Angeles and Orange County,

client trust.

our interactions. In short, we work with clients in ways that are both personal and professional – ways that engender mutual trust and pave the way for successful outcomes.

California; Denver, Colorado; Washington, D.C.; Boise, Idaho; Las Vegas and Reno, Nevada; Albuquerque, New Mexico; Salt Lake City, Utah; and Los Cabos, Mexico.

Our client reach encompasses regional, national and international entities. Clients include major national and multinational corporations, educational and research institutions, municipalities and government agencies, nonprofits, charitable organizations, industry executives and high-net-worth individuals. The firm is a member of Lex Mundi, the world’s leading network of independent law firms.

AT-A-GLANCE Year founded in the Valley: 1938 Industry: Legal Services

Top 5 services/products: Full-service business law firm. Key practice areas include, among others:

Top local executive/position: Matthew P. Feeney / Firm Chair

• Commercial litigation

Number of years with Firm: 35

• Healthcare

Number of Valley employees: 447

• Labor and employment

Company website: www.swlaw.com

• Corporate and securities

• Real estate Greatest 2018 milestone for the company: Celebrated 80 years in Phoenix, Arizona.

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DEC. 2018

45

SMART SUCCESS

When Is a Strategy Not a Strategy?

Rich Horwath is a New York Times, Wall Street Journal and USA Today bestselling author on strategy, most recently of StrategyMan vs. The Anti-Strategy Squad: Using Strategic Thinking to Defeat Bad Strategy and Save Your Plan.

As CEO of the Strategic Thinking Institute, Horwath leads executive teams through the strategy process and has helped more than 100,000 managers around the world develop their strategic thinking skills. A former chief strategy officer and professor of strategy, he brings both realworld experience and practical expertise to help organizations create enterprise-wide capabilities in strategic thinking and planning. strategyskills.com

DEC. 2018

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Success starts with being clear about what you’re trying to achieve

by Rich Horwath

Make no mistake — bad strategy can literally kill a company.

In a 25-year study of 750 bankruptcies, researchers found that the No. 1 cause of bankruptcy was bad strategy. And anyone who has worked for a manager who didn’t have sound strategies knows all too well the frustration of drifting aimlessly with no strategic direction.

But the secret no one wants to talk about is, the root of most strategy challenges is simple — too many managers don’t know what strategy is. New research with 400 talent management leaders found fewer than half (44.3 percent) of organizations have a universal definition of strategy. And if people think this is a problem plaguing only new managers at lower levels of the organization, they should think again.

During my work, I’ve collected dozens of so-called “strategies” from CEOs that aren’t strategies at all: • Become the global leader in our industry.

• Use innovation to build customer-centric solutions.

• Grow our audience.

• Execute integration and capture synergies.

• Strengthen core business and reduce costs.

These examples demonstrate how frequently the terms goals, objectives, strategies and tactics are used interchangeably. The failure to distinguish among them means it is impossible to develop a workable strategy.

So, then, what’s the difference? It’s a question of what versus how. I’ve developed a simple framework called GOST (Goals Objectives Strategy Tactics) to help managers at all levels use and teach others to use these business-planning terms appropriately.

Goals and objectives are what a company is trying to achieve. A goal is what the team is trying to achieve in general (Win the national sales contest for our region), and an objective is what it is trying to achieve specifically (Achieve $25 million in sales by the end of the third quarter). Objectives tend to use the acronym S.M.A.R.T. — specific, measurable, achievable, relevant and time-bound.

Strategy and tactics are how to get there. Strategy is how the organization is going to get there generally (Focus selling efforts on expanding share of wallet with current customers); tactics are how it will get there specifically (Have district sales managers work with sales reps to schedule appointments with the top five customers for each territory; videotape three customers using two or more of our products in combination; purchase iPads so new shell sheets and videos can be use in customer presentations).

It is easy to see that a lack of clarity around these definitions can derail execution before it begins because people will be working in different directions.

Tactics vs. Strategy Chinese general and philosopher Sun Tzu said, “All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.”

BETTERING YOUR BUSINESS So, how can businesspeople overcome the confusion and misunderstanding that surrounds strategy? Here are three tips: Stop mixing words. Since strategy is an abstract term, it’s challenging enough to define it without combining it with other words to make it that much more confusing. Many companies use terms such as “strategic goals” and “strategic objectives.” Why? Goals and objectives are different from strategies, so cramming the words together into one term only serves to muddy the waters. To refresh, the goal is generally what the business is trying to achieve (e.g., increase sales). The objective is specifically what the business is trying to achieve (e.g., increase sales by 15 percent in the east region by Q4). The strategy is how the organization will achieve the goal/objective (e.g., develop a real-time service model to support top-tier product users). Managers must keep the plan simple by using the right word, and only the word, that they mean.

Stop making things up. Creativity is great. However, when it comes to setting strategic direction, creating new terms is inefficient and potentially harmful. Words such as goal, objective, strategy and tactic all have concrete definitions that originated in the military arena thousands of years ago. Terms like “strategic imperatives” or “business drivers” are not foundational planning terms. And, because they are not foundational concepts, they can be interpreted in a lot of different ways. This can lead to miscommunication, misunderstanding and misdirection. When planning, use real words, not made-up ones.

Stop pretending. If a leader in a company passes down a strategy that isn’t really a strategy, colleagues must stop pretending it is, and correct it! In the examples listed earlier, many of the so-called strategies are actually goals or operating initiatives. Anyone working under similar “strategies” should choose the right forum and appropriate time to talk to leadership about how to modify their statement to more accurately reflect a strategy.

While research with talent management executives has shown that strategic thinking is the most important leadership capability for senior managers, just 24 percent of organizations teach strategy skills.

Moreover, research published in the Harvard Business Review showed that 67 percent of managers surveyed believed their companies are bad at developing strategy.

If managers are having trouble differentiating between strategy and tactics, they can use the “rule of touch.” If someone can reach out and physically touch it (e.g., a sell sheet, a training DVD, etc.), it’s a tactic.

The concept of strategy originated, as mentioned above, in the military arena thousands of years ago. Even that far back, Chinese general and philosopher Sun Tzu said, “All the men can see the tactics I use to conquer, but what none can see is the strategy out of which great victory is evolved.”

Since one can’t see or physically reach out and touch strategy, it’s often skipped in favor of going straight to tactics. A good number of the business plans I’ve reviewed over the past 15 years list goals, objectives and tactics, skipping strategy altogether. With no strategy in place, it’s easy to fall into a game of tactical roulette, where managers continually chamber a new tactic and pull the trigger, hoping something hits the target, But, sooner or later, they’ll be looking at a dead plan.

The GOST — Goals Objectives Strategy Tactics — framework will ensure that a team has a common understanding and language for strategic thinking and planning. Only then will leaders be able to forge a path to the business results they seek. If an organization takes the steps above to create that shared understanding, it will be on the road to success.

While research with talent management executives has shown that strategic thinking is the most important leadership capability for senior managers, just 24 percent of organizations teach strategy skills.

Optimizing Digital Strategy Optimizing Digital Strategy explores the choices facing organizations in the rapidly changing world of technologyenabled business. From performance marketing to personalization, on-demand retailing and AI, this book maps out commercial and customer-focused challenges and explains how leaders can get the most out of their digital strategies. The book challenges leaders to step back from the demands for constant investment in new technology and drive better returns from existing assets rather than rushing headlong into adopting the latest digital platforms, tools and technologies. Presenting a sustainable model of e-commerce that is appropriate to any individual organization’s needs, Optimizing Digital Strategy addresses the repetitive dilemma between even more investment in technology and the need to improve margins and grow revenue.

Optimizing Digital Strategy: How to Make Informed, Tactical Decisions that Deliver Growth Christopher Bones, James Hammersley and Nick Shaw

247 pages

Kogan Page

$29.95

Available: 12/3/2018

Ninja Future In Ninja Future, Gary Shapiro explains the evolving technological landscape, breakthroughs underway now and those we can only envision. New innovations such as self-driving vehicles, blockchain, 5G, the Internet of Things, and countless others will forever change the economy as we know it. Shapiro uses case studies to identify companies and countries addressing today’s challenges particularly well — and relates lessons from those that have stumbled.

Drawing on the insights he has gleaned as a martial arts black belt, he shows how businesses can move to succeed in today’s turbulent environment by adopting the mindset of “ninjas” — adapting to technological change to capitalize on opportunities at lightning speed.

Ninja Future: Secrets to Success in the New World of Innovation Gary Shapiro

352 pages

William Morrow

Available: 12/31/2018

$25.99

Transgender in the Workplace Offering a fresh and practical perspective for employers and gender-diverse professionals, this book presents useful tools, information and resources to help organizations and individuals understand and leverage the power of gender authenticity as a pathway to business success. It explains the forms and causes of discrimination faced by genderdiverse individuals in the workplace; provides a definition and examples of gender authenticity — the only published resource to articulate the concept of gender authenticity as a powerful tool for enhancing organizational workplace culture; offers five fundamentals for achieving a gender-authentic workplace; and presents an entire chapter on recognizing and responding to resistance.

Transgender in the Workplace: The Complete Guide to the New Authenticity for Employers and Gender-Diverse Professionals Vanessa Sheridan Praeger

188 pages Available: 12/31/2018

$37

DEC. 47 2018 INBUSINESSPHX.COM

INVESTING IN COMMUNITY

Need to Amp Up Your Creativity, Efficiency and Productivity Fast? Outsource!

It can be a surprisingly budget-wise decision

by Richard Tollefson and Michal Tyra

CULTURAL ALIGNMENT According to the Nonprofit Committee of New York, hiring the right outsourcing firm is critical for success. To ensure the potential vendor fits an organization’s needs and culture, it should make sure to: “Conduct an inperson interview; check three references; review their website to better understand their services and client service model; and search resources such as the NOC database, the Better Business Bureau or perform a simple Google search for additional information.”

Richard Tollefson is founder and president, and Michal Tyra is director of client and community engagement at The Phoenix Philanthropy Group, an Arizona-based international consulting firm serving nonprofit organizations as well as institutional and individual philanthropists. phoenixphilanthropy.com

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It takes a lot to keep a nonprofit organization at the top of its game. Just like for-profit companies, not-for-profits are concerned with the financial bottom line, operational efficiencies, human resource regulations — and more. Notfor-profits have an extra layer of scrutiny many for-profits don’t. They report to more than just their shareholders; their performance is evaluated by multiple stakeholders — governing boards of directors, clients, constituents and the public at large — all of whom expect efficiency, productivity and accountability while ensuring the nonprofit is serving the public good.

With the dual complexity of managing effective organizations and achieving meaningful community impact, nonprofits need skilled personnel to lead critical functions.

Employees at the top of their games, armed with best practice knowledge, in-depth experience, creative talent and entrepreneurial drive may be hard to find and too expensive for a not-for-profit’s limited budget. For many nonprofits, outsourcing is the answer.

Although some perceive outsourcing as too expensive or a way to avoid investment in the existing human capital of an organization, that’s often a short-sighted opinion. Outsourcing can allow an organization to enhance its efficiency and productivity, increase creativity and entrepreneurial drive, manage costs and accelerate outcomes and impact in the most expeditious and cost-effective way.

Too often, nonprofit staffers are forced to wear multiple hats and perform activities outside their expertise. Budgets are tight; organizations are hesitant to increase their operational or “overhead” expenses — including personnel.

This often results in piecemeal strategies, uncoordinated and inconsistent implementation and short-changed solutions that inhibit the outcomes and impact of the organization in the near and long terms.

Depending on the organization’s long-term goals, outsourced experts may take on the entirety of the day-to-day tasks and requirements of a function, or they may partner with management to build the internal capacity of existing staff to eventually take on the responsibilities themselves.

With marketing and communications, there is often the impression that structured assistance beyond the occasional graphic design is an unaffordable luxury. Strategic marketing and communications go far beyond brochure and website design, or social media management. Sara Stern, EVP of Philanthropic Marketing at Lipman Hearne, believes that “effective marketing and communications help to build trust, demonstrate impact, activate engagement and build support. Bringing in outside help can be of great aid when you need a varied skill set; when you

don’t have the time to train and manage an internal team; when you need an infusion of new, creative thinking; or when you want to ramp up your marketing efforts quickly.”

Many nonprofits outsource their direct response (direct mail, email, social media) fundraising, but don’t consider other key functions such as prospect research, case statement development or fundraising planning. Outsourcing these functions can bring a new level of expertise and more creative strategies needed to increase fundraising performance.

Leadership development — critical to many organizations — is often viewed as an extravagance for “good years” and to fill time during board retreats. For Allyson Mallah, CEO of Everest Edge Enterprises, it’s about keeping one’s edge in an increasingly competitive marketplace. “In the for-profit space, innovation results in market share and profits. While that may be a bit different in the not-for-profit world, every organization needs training and support to reach their objectives and optimize their impact. By employing an outside voice — helping to inspire leadership to think boldly — cutting-edge and unvarnished perspectives prevail.”

THINGS TO CONSIDER

Ensure internal buy-in. Just because the executive director or board chair is sold on the benefits of outsourcing, the rest of the organization may not feel the same. Board members may fear the loss of internal control and potential costs, while staff may misinterpret the change as a reflection on their performance or ability. Taking time to ensure that outsourcing is an organization-wide priority will go a long way toward ensuring the new paradigm is both efficient and effective.

Nonprofit expertise is key. Engaging a firm with flashy corporate experience may be tempting; however, lack of nonprofit experience can result in inappropriate approaches or a mismatch in goals or values. Conversely, Sara Stern says that “an agency that understands the nuances of nonprofit audiences and decision-making can help you build confidence and success among all of your audiences, including your board, donors and prospects, as well as the customers you serve.”

Develop clear expectations and goals. Maintaining effective oversight and value for cost requires a clearly articulated vision for the outsourced function, what is expected from the vendor and required deliverables. While it may be an unknown at the outset, it’s wise to consider whether outsourcing is likely to be a short- or long-term solution. If the goal is for the outside vendor to work him/herself out of a job in one year by delivering operational infrastructure and training staff, that expectation should be made clear.

Some benefits of outsourcing may seem counterintuitive. Recognized as leading benefits are enhancing an organization’s efficiency and productivity, increasing creativity and entrepreneurial drive, managing costs, and accelerating outcomes and impact.

BY MIKE HUNTER

DECEMBER 2018

SAVE THE DATE

Upcoming and notable Economic Update and Forecast

Arizona Gov. Doug Ducey

The Arizona Chamber of Commerce and Industry is bringing together for this summit leaders in the field from the business community and government. The Chamber has organized this summit to address the critical need for continued innovation and advances in water technology, which has become a hot topic due to increasing attention on the value of water and heightened awareness around the importance of efficient global water management.

Organized around the theme “Promoting Innovative Water Technologies: Lessons and Ideas from the U.S. and Israel,” the summit will present a full day of educational sessions as well as an expo of exhibitors who will showcase their technologies and best practices directly to participants.

Glenn Hamer, president and CEO of Arizona Chamber of Commerce and Industry, is among the speakers who will open Tuesday’s program with remarks on “Adopting New Water Technology: A Call to Action.” Delivering keynote addresses will be Arizona Governor Doug Ducey and Oded Distel, of Israel NewTech and Israel Ministry of Economy & Industry.

Panel presentations are “ Water Infrastructure and PublicPrivate Partnerships,” “Local Water: Challenges Faced by Local Utilities” and “Water in the West: Cooperation, Water Sharing, and the Arizona Drought Contingency Plan,” discussing best practices from the U.S. and Israel. There will also be two breakout sessions, one on global water collaboration and the other on new approaches to water scarcity.

Additionally, four TED Talk-style “lightening rounds” on water technology are scheduled, featuring leaders in water management from industry, government and utilities.

Members: $75; non-members: $90 The Arizona Biltmore Resort

Breakfast event includes an economic update and forecast from Joseph Quinlan, managing director and chief market strategist of U.S. Trust, Bank of America Private Wealth Management.

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Business H2O: Water Innovation Summit Mon. – Tues., Dec. 10 – 11 4:30p – 6:30p on Monday; 7:30a – 6:30p on Tuesday

Tues., Jan. 8

Jan

Arizona Chamber of Commerce and Industry

Rick Bowers, president of TTI Success Insights

TTI Success Insights

TTISICON 2019: Evolution of Excellence Fri., Jan. 11 | 8:30a – 5:00p At its annual TTISICON: Evolution of Excellence conference, TTI Success Insights offers a program to help attendees learn how to leverage science and data collected through tailored assessments in order to make effective business decisions and better engage employees. Combining expertise in corporate culture, sustainable business practices and emerging data collection technologies, the company has more than 30 years’ experience using applied social and brain science to reveal human potential.

The conference is directed to business owners and consultants and human resources team leaders but also welcomes the general public to benefit from the day of breakout sessions that aims to transform the way they think about success — through people.

Eleven presentations include “Shifting Your Modality,” from Molly Fletcher, motivational speaker, former sports agent and author whose books include Fearless at Work and A Winner’s Guide to Negotiating, on how to create transformational change in the absence of crisis; “People Are Not Your Problem,” from internationally recognized business advisor Ron Price, president and CEO of Price Associates, on how to create transformational change in the absence of crisis; and “Your People: From Objects to Humans,” from Brian Mohr, president of Conscious Capitalism – Arizona Chapter, on how to validate, embrace, and optimize the value of the most important business element — people. There will also be a panel presentation by several business leaders discussing how they have successfully powered through the new employment landscape.

2400 E. Missouri Ave., Phoenix

$395

azchamber.com

JW Marriott Desert Ridge 5350 E. Marriott Dr., Phoenix

DECEMBER 2018

ttisicon.com

S M T W T F S

acg.org/arizona 10th Annual Business Volunteer Awards Wed., Jan. 9

Jan

Event features foods from around the world (and around the corner!) as well as wine and beer.

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scottsdalechamber.com 10th Annual Phoenix Golf Tournament Wed., Jan. 16

Jan

This scrambleformat tournament brings industry leaders and technologists together for a day of networking and sportsmanship at Troon North Golf Club.

The tournament will be followed by lunch, raffle prizes and awards presentation.

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aztechcouncil.org Arizona Good Business Summit Wed., Jan. 30

Jan

For entrepreneurs, small businesses and long-lasting enterprises, this unique event will feature national and local leading experts presenting effective strategies to bolster one’s business as a force for good.

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localfirstaz.com

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DECEMBER 2018 NOTABLE DATES

16 17 18 19 20 21 22 Sun., Dec. 2-10 — Hanukkah

23 24 25 26 27 28 29 Fri. Dec. 21 — Winter Solstice 30 31

Tues., Dec. 25 — Christmas Mon. Dec. 31 —New Year's Eve

DEC. 49 2018 INBUSINESSPHX.COM

DECEMBER 2018 Thurs., Dec. 6

4:30p – 6:30p

The Evolving Workforce in Japan and Asia Global Chamber Join Global Chamber® in-person or via Zoom on December 6th (U.S.) and 7th (Asia).

It’s a conversation about how the evolving workforce in Asia is creating new opportunities. Presenters will provide tips for attendees to lead and adapt to help guide business growth in Asia and beyond.

Presenters will be Leila Aridi Afas, director of International Public Policy with Toyota North America; Sachiko Yoshimura, director-general of the Trade Fair Department at JETRO; and Claudio Toyama, CEO and founder of Toyama&Co. Members: free; non-members: $30 Japanese Friendship Garden Tues., Dec. 4

Thurs., Dec. 6

5:00p – 7:30p

1125 N. 3rd Ave., Phoenix

globalchamber.org Fri., Dec. 7

5:00p – 7:00p

8:00a – 6:00p

The Big Thank You

Tech the Halls

27th Annual Bud Shootout

Arizona Small Business Association

Arizona Technology Council

Arizona Hispanic Chamber of Commerce

ASBA’s “thank you” for another incredible year in celebrating members and supporting Arizona business accomplishments, this joint networking event brings together a vast array of small-business owners, sponsors and community partners to enjoy food, drinks, music, fun, and illuminating conversation and networking.

Golf with top corporate leaders and smallbusiness owners. Lunch and dinner provided for all players. Event ends with BBQ Jamboree Happy Hour with live entertainment and networking, raffle and prizes.

Free

Join the Arizona Technology Council, Galvanize and Ballard Spahr to kick off the holiday festivities in style with this grand affair which will include holiday karaoke, fortune telling, a grinch + elf sponsor expo, live music, delicious appetizers and libations.

ASBA Building

Members: free; non-members: $20

Camelback Golf Club

4600 E. Washington St., Phoenix

Galvanize

7847 N. Mockingbird Ln., Scottsdale

asba.com

aztechcouncil.org

4

515 E. Grant St., Phoenix

azhcc.com

5

Tues., Dec. 4

6 Wed., Dec. 5

2:00p – 4:00p

Annual Holiday Celebration

Extreme Relationship Management

Greater Phoenix Chamber of Commerce

Free

The weather outside may be frightful, but a holiday mixer is oh-so-delightful! Celebrate this wonderful time of year with a rock ‘n’ roll twist.

Members: free; non-members: $25

Paradise Valley Mall – Elevate Coworking & Business Network

Hard Rock Café

4568 E. Cactus Rd., Phoenix

3 S. 2nd St., Phoenix

phoenixchamber.com

phoenixmetrochamber.com Wed., Dec. 5

Fri., Dec. 7

3:00p – 7:00p

Capitol Conversations

Land Advisors Organization

Greater Phoenix Chamber of Commerce

The nation’s largest commercial brokerage firm, Scottsdale-based Land Advisors Organization, is bringing together industry heavyweights for conference on market trends for the coming year. John Burns Real Estate Consulting CEO John Burns, GPEC President and CEO Chris Camacho and Land Advisors CEO Greg Vogel will be giving keynote addresses on their predictions. Program 3:00 to 5:00 p.m. will be followed by cocktail reception till 7:00 p.m. Proceeds will benefit New Pathways for Youth, ASU Real Estate Programs and Crowns of Courage.

Chamber and state leaders will present tips on effectively working with legislators and provide a toolkit for participants to take back to their business. Attendees will also have the opportunity to participate in a round-table discussion with lawmakers, focused on key business and community topics.

JW Marriott Camelback Inn

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8:30a – 10:30a

Phoenix Land and Housing Forecast

$100

DEC. 2018

7

5:00p – 7:00p

Renovate Your Networking Training Workshop Attendees will learn the real purpose of networking and how every person they meet has value; how to classify each contact into one of four key relationship categories; and how to assess the value of each individual within their respective category.

$650

5402 E. Lincoln Dr., Paradise Valley

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

landadvisors.com

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

Members: $20; non-members: $30 Arizona State Capitol – State Senate 1700 W. Adams St., Phoenix phoenixchamber.com

Wed., Dec. 12

11:00a – 1:00p

Annual Red Affair Luncheon National Association of Women Business Owners – Phoenix

Fri., Dec. 7

11:30a – 1:30p

Spirit of Enterprise Award Economic Club of Phoenix Tomas Gorny is a Polish-born American entrepreneur and the co-founder, chairman and CEO of UnitedWeb, a holdings company, and Nextiva, a cloud communications provider. He has received numerous awards for his leadership in the technology industry nationwide. He was named Arizona’s Top Tech CEO in 2017 by the Phoenix Business Journal.

Event includes an “Economic Minute” with speaker Lee McPheters

Attendees will enjoy a delicious meal with the organization’s signature red dessert, connect with members and corporate partners, be entertained, and support companies showcasing themselves through sponsorship and raffle items.

Members of NAWBO, ASBA or ATHENA: $55; non-members: $65; after Dec.7: add $10; registration closes Dec 11, 11:00a Gainey Ranch Golf Club

7600 E. Gainey Club Dr., Scottsdale

nawbo.org/phoenix Wed., Dec. 12

7:30a – 9:30a

Thurs., Dec. 20

WORKWELL: Empowering employees to lead healthier lifestyles

5:00p – 7:00p

Business After Business Chandler Chamber of Commerce

Greater Phoenix Chamber of Commerce The December WorkWELL Quarterly Forum will highlight the motivating factors that can impact positive lifestyle choices of employees, leading to increased wellbeing and on-the-job productivity. The forum will be led by special guest presenter Tanya Wheeless, founder and CEO of Happy Grace.

This monthly evening mixer sponsored by Bell Mortgage is an opportunity to meet new chamber members, make business contacts and get a chance to win the “Chamber Cash Pot” sponsored by Earnhardt Ford.

Free

Members: $5; non-members: $15

Phoenix Children’s Hospital – Melvin E. Cohen Building

Location TBD

7700 E. McCormick Pkwy., Scottsdale

1919 E. Thomas Rd., Phoenix

chandlerchamber.com

wpcarey.asu.edu/economic-club

phoenixchamber.com

$85 The Scottsdale Resort at McCormick Ranch

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11 Tues., Dec. 11

12

19 Wed., Dec. 19

11:00a – 1:15p

20 5:30p – 7:00p

Annual Charity Luncheon

Business After Hours

Arizona Association For Economic Development

Tempe Chamber of Commerce

Silver Awards from the International Economic Development Council (IEDC) will showcase Arizona economic development efforts. The speakers will be Kim Lofgreen, marketing and business development manager for the City of Mesa; Victor Gonzalez, CEcD, economic development director for the Town of Sahuarita; and Cori Garcia, economic development administrator for the Gilbert Office of Economic Development. Additionally, a raffle will be held to benefit Arizona Angels for Children, which helps children in foster care and long-term placement.

Members of the business community come together to enjoy a night of food, drinks, conversation and network development during this casual mixer.

Members: $45; non-members: $65; after Dec. 6 noon: $75

Phoenix Country Club

2901 N. 7th St., Phoenix

Members: free; non-members: $10 The Tilted Kilt aaed.com

1617 W. Warner Rd., Tempe tempechamber.com

Fri., Dec. 7

11:30a – 1:00p

Wed., Dec. 12

11:30a – 2:30p

6th Annual CURE Corridor

3rd Annual Cybersecurity Lunch Forum

Scottsdale Area Chamber of Commerce

Arizona Technology Council and Arizona Cyber Threat Response Alliance (ACTRA)/Arizona InfraGard

Topic is medical cybersecurity.

7700 E. McCormick Pkwy., Scottsdale

This is an opportunity for government and business leaders to learn about the threats, vulnerabilities and consequences related to data security and privacy matters. At this educational forum that provides actionable solutions, numerous real-world practitioners discuss their available resources and experiences geared toward helping protect businesses’ intellectual property and customer data. There will be panel discussion, keynote speaker and lunch. (See article on page 63.)

scottsdalechamber.com

AZTC Member - $40; Non AZTC Member $60

$40 Scottsdale Resort at McCormick Ranch – Arizona Main Ballroom

ASU SkySong – Building 3

1365 N. Scottsdale Rd., Scottsdale

aztechcouncil.org

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OUR SUBJECT IN-DEPTH

For Best Results in Business, Think Like a Designer Businesses can create a more seamless experience for their customers

by Michelle Eichner

Most business leaders don’t need to be professional designers to effectively think like one. Thinking like a designer, otherwise known as design thinking, is a process that should be leveraged by all business professionals due to its effectiveness for big-picture planning. Design thinking is a ubiquitous process that allows companies to put themselves in a frame of mind that’s in sync with customer expectations. It’s about creating the experience customers would expect, then setting the company up to meet those expectations.

DESIGN THINKING BASICS

The No. 1 rule of design thinking is to always keep the customer in mind. It’s not about what a business thinks the customer wants. Instead, it’s about empathizing for the customer’s needs and wants to best serve the actual customer’s experience. For example, say an agency is hired to improve the overall customer experience at a grocery store. Among the first things the agency should consider are the factors that drive customers to the grocery store, what happens once they get there, how customers navigate the grocery store and what can be done to make their experience even more fluid.

The primary benefit of design thinking is, it allows business professionals to step outside their box and think purely from the angle of the customer. During the process, it’s important to learn everything possible about the broader customer experience to not only better understand the customer, but also to accomplish company goals. Design thinking can stand on its own, or it can serve as a single piece in an even broader puzzle.

BIG-PICTURE STRATEGY Michelle Eichner is the founder and CEO of Digitile. She works with businesses to reduce the challenges employees have finding files. Eichner is a seasoned marketer and SaaS software veteran with a deep understanding of the marketplace. Her more than 25 years of in-depth B2B experience driving product marketing and strategy helps identify market challenges, gaps and solutions. digitile.io

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Taking a holistic view of any customer experience is at the heart of design thinking, and granular details should never get in the way of this process. If design thinking is reduced to product or service features or any other sub-details, professionals can easily get trapped in the process without actually executing anything. Rather than spending time detailing features, it should provide a basis that makes the introduction of features second nature. While design thinking can be highly effective, it’s recommended that business professionals take a little extra time to learn how to go through the process most effectively. When done right, it should enable business professionals to feel significantly more connected to their target audience and provide them with insights to best serve their demographic.

Although the design thinking approach centers on big-picture thinking, it also focuses heavily on having empathy for the customer. Professionals who engage in design thinking always

need to consider the entirety of what the customer experiences when interacting with a company, both good and bad. At the end of the thinking phase, it’s important to consider whether the customer had an experience that was satisfactory, or if drastic improvements need to be made. This is a highly effective process for illuminating such gaps in the customer experience, and this reflection is key for maximizing results.

REAL-LIFE APPLICATION

A real-world case of design thinking can be seen at IBM. IBM brought clients into its office for three days, and had the clients discuss their day-to-day tasks with the IBM employees.

IBM’s goal in doing so was to help their employees better understand the needs of the clients by putting them in the clients’ shoes. At the end of the experience, IBM staff gained a more well-rounded perspective, learned to work backward and understood how to better serve their clients. During the three days, IBM documented dependencies, pain points, short-term and long-term goals.

This new perspective aided the company’s success at repackaging and rebranding client products. Because it approached this task with design thinking, IBM was able to better understand how customers go about buying the products, how they approach the buying process, how they consider comparisons, and what they would expect when purchasing a product from IBM. Design thinking also helped IBM update its packaging by imagining what the products would look like to customers. This allowed IBM to discover the products in the marketplace, justify the products internally and decide how to position the products online.

Design thinking has shown to be an innovative and advantageous approach to creating or improving a product or project. By approaching a business situation from a design perspective, businesses can feel confident in creating a more seamless experience that’s better tailored to the customers’ unique needs.

Design thinking is commonly associated with Stanford Professor and Founder of IDEO, David Kelly, but the capability has been exploding far beyond Kelly in recent years. As of 2013, Fortune 500 companies like Apple, Amazon, Nike, Accenture and more have all added design thinking capabilities to their operations.

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WE VALUE WHAT WE OWN

BY MIKE HUNTER

2019 Genesis G70

2019 GENESIS G70 MSRP: $34,900 City: 22 mpg Hwy.: 30 mpg Trans: 8-speed automatic 0-60 mph: 4.5 sec.

The sound of its inspiring exhaust note hints at the G70’s impressive performance credentials. The available 3.3-liter, 365-horsepower twin turbo paired with launch control pushes the G70 to a quick, confident jump off the line. The “high-end” nature puts this G70 in a class with Lexus, BMW and Mercedes C Class.

The sophisticated all-wheel drive system works in sync with Dynamic Torque Vectoring Control to deliver enhanced stability and quicker response on slippery roads. An extraordinarily tight, responsive ride is the result of a more rigid frame, exceptionally low center of gravity and electronically controlled sport suspension. The superior stopping power of available Brembo® brakes provides a heightened sense of confidence and security.

The G70’s sleek profile follows through, creating a powerful visual momentum that draws the eye from the aggressive crosshatched grille (available in an arresting dark chrome finish) to the available sporty dual exhaust tips. The driver-centric cabin experience is enhanced by available Nappa leather seats adorned with a unique diamond quilting pattern, a striking feature further highlighted with available contrast stitching.

The car’s Surrounded View Monitor gives the driver a full 360-degree view around the vehicle, keeping the driver aware of normally unseen surroundings, assisting with parking and helping to keep clear of external objects. Proving that performance goes beyond horsepower, the G70 offers advanced tech to anticipate and meet the driver’s every need. Available features like a wireless charging pad, Lexicon® Premium Audio System and a hands-free smart trunk elevate the focus on comfort and convenience to the next level. —Mike Hunter Genesis www.genesis.com

Travel-Healthy Tips Over the last five weeks, I’ve spent time in Asia, Europe and the U.S. but it takes a toll on one’s body. Most people don’t realize business travelers are statistically at a higher rate for obesity. It’s easy to put on weight when continually eating airport food, with little access to gyms. For many years, I was one of those unhealthy business travelers, until my doctor said I needed to lose weight and my life depended on it.

Today, 37 years old and 5-feet-9-inches tall, I weigh 165 pounds and am in the best shape of my life. Here are a few health hacks I learned on the road: 1. Plan a 10-minute “walk & talk meeting” after every meal, to work and give the body time to digest.

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2. Adjust sleep schedule to the destination before arriving. This balances the body’s internal clock.

3. Practice interval training in the morning to achieve sweat in the shortest amount of time possible.

4. Take extra vitamins and supplements on the road to keep the body healthy and energized.

5. Monitor caloric intake with the app Noom, which has trained coaches, personalized eating plans and tips on how to stay on track. —Saeju Jeong, CEO and co-founder of Noom Coach (www.noom.com), the world’s leading weight loss program.

Genesis Motors is the luxury vehicle division of the South Korean vehicle manufacturer Hyundai Motor Group. Initially envisioned along with the plan for Hyundai’s new luxury sedan Hyundai Genesis in 2004, the Genesis brand was officially announced as a standalone marque on November 4, 2015.

Photos courtesy of Genesis (top and far left)

Traveling the world for work might seem glamorous to outsiders,

Personal best Banner|Aetna offers real market differentiators designed to enhance the way health care is delivered and received. banneraetna.com Banner|Aetna is the brand name used for products and services provided by Banner Health and Aetna Health Insurance Company and Banner Health and Aetna Health Plan Inc. Š2018 Banner Health And Aetna Health Insurance Holding Company LLC 2017552

MEALS THAT MATTER

BY RAEANNE MARSH

Think: elegant casual. Black-and-white checkered cloth tablecloths on the center rows of tables make lively the simple décor that’s otherwise set off by a rear wall of weathered brick. A smartly designed divider “wall” separates the large dining room into two cozier halves while keeping a sense of spaciousness. On prominent display just inside the front door is a prized claim to fame: a 500-liter oak barrel that helped The Sicilian Butcher earn a Guinness World Records title this past October for the largest Negroni cocktail.

The restaurant’s end location anchoring a small shopping center allows it to have two patios. One, attractively fenced in with shrubbery below a canvas covering (and, for winter months, warmed by well-positioned space heaters), fronts to Tatum Road. Around the corner on the north side is the outdoor part of The Sicilian Butcher’s large indoor-outdoor bar.

The innovative menu concept, from the restaurateurs behind Tomaso’s Italian Restaurant and Hash Kitchen, is built around a favorite comfort food: meatballs. With 11 different meatballs, nine different sauces and 10 different “bottoms,” the number of possible combinations is nearly exponential.

MOZZARELLA IN CARROZZA Fresh mozzarella and ciabatta fried golden, with tomato herb sauce $10

Traditionalists can go with Tomaso’s Sicilian Meatballs (ground veal, prime beef, pork, pine nuts, raisins, pecorino cheese, garlic and fresh herbs) topped with marinara sauce and served over spaghetti. But worth taking a culinary detour for is Eggplant Parm Balls (roasted eggplant, basil, parmigiano cheese, fresh mozzarella and herb bread crumbs) topped with the truffle mushroom sauce and served over … wait for it … creamy polenta made with mascarpone and parmigiano cheeses, cream and extra virgin olive oil; or Lump Crab and Shrimp with a parmigiano cream sauce over a Caesar Salad.

Next to the open kitchen, a floor-to-ceiling display case with cured meats hanging over stacked cheese wheels gives a hint of the variety possible for the charcuterie boards. And along with bruschettas, flatbreads and salads, The Sicilian Butcher offers sandwiches muffuletta style (on a round Sicilian sesame bread) as well as on popular stand-by ciabatta buns.

Bookending the entrées are a tempting selection of appetizers and desserts — the former ranging from polenta fries to charred octopus, and the latter from tiramisu (of course) to the flaky pastry of strogliatelle to a chocolate Nutella mousse.

The Sicilian Butcher thesicilianbutcher.com

TOMASO'S SICILIAN MEATBALLS WITH MAFALDE Ground veal, prime beef, pork, pine nuts, raisins, pecorino cheese, garlic, fresh herbs $16

Our Menu Has Changed This phrase may be annoying in a recorded phone message, but it’s exciting when applied to our local restaurants. Here are two that favor their diners with new flavors.

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Pepperoni Pizza Fries

Natural Turkey Burger

Giordano’s

Pomelo at The Orchard

Special for this final quarter of the year, and offered

Part of a restaurant threesome enclosing a friendly

only at this national chain’s Arizona and Nevada

courtyard, Pomelo recently unveiled new menu items.

restaurants, is the Street Taco Pizza, built on a light,

For lunch, these include a Gluten-Free Pizza; Natural

crispy, extra- thin hand-crafted crust with layers of taco-

Turkey Burger with ground turkey, Mediterranean

style ingredients: guacamole salsa, zesty barbacoa-

spices, provolone and roasted red peppers on a

style beef, Giordano’s signature mozzarella cheese, pico

challah roll; Pesto Chicken Wrap, with chicken breast,

de gallo, and a generous sprinkling of queso fresco. Also

bacon, provolone, mayo pesto, lettuce and tomato

on this limited-time menu are the savory Pepperoni

inside a whole wheat tortilla; and Harvest Salad, with

Pizza Fries and flaky sweet treat Apple Pan Pie.

field greens, butternut squash, bacon, bleu cheese

12811 N. Tatum Blvd., Phoenix • (480) 666-8160

crumbles, pecans and balsamic dressing.

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Photos courtesy of Debby Wolvos (main right and far left), Aniwat Pluemjit (main left); Giordano’s, Pomelo at The Orchard(bottom, l to r)

The Sicilian Butcher: Build-Your-Own Meatballs and More

Winter 2O18 • aztechcouncil.org

IN THIS ISSUE 2 Introduction to Israel

Arizona Technology Report

Arizona Technology Council: The Voice of the Technology Industry

President’s Message

Like most people in fall 2009, it was hard not to still feel the effects of the slow recovery after the Great Recession 4 Driven by Growth that technically ended in June of that New website uses visitor data to year. A national employment rate that maintain engagement hit 10 percent in October was perhaps 5 Change for the Better the most telling sign of how bad things Council sharpens focus on value still were. I had been in my current role proposition not quite three years and had heard 6 Whole New World more than my share of the bleeding Chief Science Officers use global happening in my sector, as well as Steven G. Zylstra, ties for early start on leadership President and CEO, Arizona others that make up our economy.

Technology Council As they say, time heals all wounds.

Nearly nine years later, a booming U.S. economy has given us plenty of cause to celebrate and forget those rocky times on The Arizona Technology Council is Arizona’s premier trade association for the earlier business front. September 2018 brought a 3.7-percent national unemployment science and technology companies. rate, which was a drop of two-tenths of a point from the previous month. This was the lowest rate since December 1969. The Conference Board estimated that for nearly twoPhoenix Office thirds of the U.S. population, this was the lowest unemployment rate in their lifetime.

2800 N. Central Ave., Suite 1530 Close to home, we saw the Arizona jobless rate hit 4.7 percent in September, which Phoenix, AZ 85004 Phone: 602-343-8324 • Fax: 602-343-8330 was a tenth of a point higher than the level for August. Before you say, “Uh-oh, not again,” info@aztechcouncil.org one news report using the state Office of Economic Opportunity as its source pointed out the uptick reflected the job creation rate was just matching the number of residents in Tucson Office our state who were entering or re-entering the job market. The real numbers to watch for The University of Arizona Science and an economic pulse were related to job creation. During September in Arizona, privateTechnology Park 9040 S. Rita Rd., Ste. 1150 (near I-10 & Rita Rd.) sector employment increased 11,300 while it jumped by 79,000 in the past year.

Tucson, AZ 85747 I can vouch for the job creation as my staff and I constantly hear about technology Phone: 520-382-3281 • Fax: 520-382-3299 community members looking for new team members. That’s one reason we’ve begun tucson@aztechcouncil.org including job openings in Tech Talk, the monthly newsletter we publish for our membership, as well as our Monday morning Events announcement.

MANAGEMENT AND STAFF To give you an example of the activity, consider what is happening at Steven G. Zylstra President + CEO information technology companies, which include enterprises involved in Leigh Goldstein COO + Vice President, Programs + Events such activities as telecommunications and data processing. In Arizona, this Pat Krueger Director, Finance + Administration Lauren Witte Director, Marketing + Communication sector had 46,800 workers in September 2018, which was 5.2 percent more Deborah Zack Senior Director, Membership Services than September 2017.

Meredith Orr Director, Membership Services Laura DeGeorge Executive Assistant to President + CEO Taken by itself, 2,300 more employees may not seem like a lot for an entire Jeff Sales Executive Director, Southern Arizona Regional Office state. But consider there are also IT workers employed in other sectors, such Jamie Neilson Operations Manager, Southern Arizona Regional Office as government, education, insurance, banking and health, professional and Don Rodriguez Editor Ron Schott Executive Emeritus, Phoenix business services, and manufacturing. All reported year-over-year gains, so Don Ruedy Executive Emeritus, Tucson you can bet the collective technology workforce has been growing right along Justin Williams Executive Emeritus, Tucson with the rest.

ARIZONA TECHNOLOGY COUNCIL FOUNDATION Those workers with their sights set on the information technology sector Jeremy Babendure, Ph.D., Executive Director should still have a shot at landing a job. The monthly jobless rate for that Kelly Green, Director, Arizona Operations group alone was 5.1 percent in September 2017 then plunged to 2.3 percent a Bruce Jones, National Systems Manager Kindra Maples, CSO Systems Coordinator year later. Once again, the technology field leads the way.

Council members are part of delegation that explores new opportunities

WHO WE ARE

Marisa Ostos, Director, Arizona SciTech Festival Jasper Pena, IT Support Kaci Fankhauser, AmeriCorps VISTA Kal Mannis, AZ Rural and International Initiatives Sabrina Foy, Accounting Assistant

aztechcouncil.org

ARIZONA TECHNOLOGY REPORT

1

From le : Steven G. Zylstra, Hank Marshall and Ron Liss, vice president of instruction and student development at Yavapai College in Prescott, li a drone casing at AIROBOTICS in Tel Aviv

2

ARIZONA TECHNOLOGY REPORT

Introduction to Israel

Council members are part of delegation that explores new opportunities

by Steven G. Zylstra and Leib Bolel There’s no denying the international outreach of the Arizona Technology Council. President and CEO Steven G. Zylstra has added his signature to an agreement formalizing a bilateral relationship that promotes growth and expands business opportunities for the Greater Phoenix and Hermosillo metropolitan regions. China was the destination for past trade missions he helped lead. And member companies have bases as far away as Canada and Japan.

Add the Middle East to this global roster.

A delegation from the Council and Arizona Israel Technology Alliance traveled together in October to strengthen the growing business ties between Arizona and Israel, and support the transformative, innovative companies emerging from both geographies.

The first destination was Tel Aviv. It started with a guided walk down Rothschild Boulevard, the main avenue of the city. One stop was the site where the Israeli Declaration of Independence was signed on May 14, 1948. The group heard how then-stateswoman Golda Meir said, “After I signed, I cried,” leaving a lasting impression on the visitors from Arizona.

Seeing early photos of the desert landscape where skyscrapers now stand helped everyone appreciate how far Israel has come. Overlooking the Tel Aviv skyline at the first stop drove the point home. The eyepopping view of the skyline from the top of TLV Labs made it clear that billions of dollars from the high-tech riches are pouring into the city.

Neta-Li Meiri, the managing director of the 8200 Social Program, gave the group members their first taste of Israel’s pioneers of innovation. Tomer Shor, co-founder of TuneFork, demonstrated mobile technology that personalizes audio for specific hearing capabilities to give an optimal experience while using mobile devices. Miri Berger, CEO of 6Degrees, showed a hands-free motion controller that’s changing the quality of life for individuals suffering from upper limb deficiency resulting from stroke, paralysis and amputation.

Both companies are graduates of the 8200 accelerator founded to help early-stage ventures solve social problems through technology.

These innovators are all looking to enter the large U.S. market from Israel, providing states like Arizona opportunities for partnerships.

Yaron Carni, founder of Maverick Ventures, and investment analyst Danielle Shapira provided impressive statistics of Israel’s Startup Nation.

During the first three quarters of 2018, Israeli high-tech companies raised 20 percent more capital than in the same period of 2017. In the third quarter alone, there were 110 funding rounds totaling $1.5 billion.

Maverick Ventures is dedicated to the success of Israeli companies and its portfolio includes companies such as privately held Orasis Pharmaceutical, which is eliminating the need for eyeglasses with a revolutionary eye drop. Carni and Shapira provided example after example of innovative companies looking to establish a presence in the U.S. The next stop was AIROBOTICS, which has chosen Scottsdale as the site of its U.S. headquarters. It eventually will shift its global headquarters to the Arizona city after it scales up production of its industrial drones. At AIROBOTICS’ location in Tel Aviv, Vice President of Marketing Efrat Fenigson served as guide, showing the drones’ manufacturing facility, as well as demonstration flights that put the aircraft through their paces.

AIROBOTICS also hosted an Israel/Arizona reception attended by more than a dozen executives from companies such as Elbit Systems, which recently acquired Tucson-based Universal Avionics for $120 million so it can expand its portfolio with cockpit solutions for commercial OEMs and aftermarket customers.

aztechcouncil.org

Next, the group journeyed to Jerusalem, the land of golden opportunities. One stop was OurCrowd, an equity crowdfunding platform for investing in Israeli technology startups led by serial entrepreneur Jon Medved. The delegation of Arizona business leaders lit up as they heard Medved describe the concept of gaining access to VC-level opportunities by investing online in fully vetted companies with innovations that are changing the world.

“Almost all investment returns are now private,” he said. “Take, for example, Facebook’s IPO in 2012. It was the biggest in technology and one of the biggest in Internet history, with a peak market capitalization of over $104 billion. Over 95 percent of the investment came from private money that the majority of public investors didn’t have the ability to participate in.”

Eric Miller, principal and co-founder of Tempe-based PADT, was especially impressed with the model of OurCrowd and the quality of companies that the organization’s highly selective deal flow has uncovered. He spends a great deal of time vetting and counseling startups through PADT’s participation in Arizona Tech Investors and volunteering with the Arizona Commerce Authority.

“This type of alternate financing is beneficial for both startups and investors,” Miller says. “It helps entrepreneurs get access to the capital they need to get off the ground without having to pitch to a dozen different groups, and an opportunity for angel investors to come together, take advantage of professional due diligence and participate in deals that are normally only available to large institutional investors.”

The Arizona Israel Technology Alliance has been working closely with OurCrowd to provide Israeli-based companies establishing a presence in Arizona access to capital from this well-connected global investment community.

As members of the delegation learned, Arizona and Israel have a lot in common. They share water issues, border issues and embrace diversity. Both societies are extremely supportive of the entrepreneurial spirit and have a lot of brainpower to offer. “I was struck by the incredible parallels between Arizona and Israel, and by the interest in and potential for a phenomenal level of collaboration, business opportunity and trade,” Zylstra says.

For other members of the visiting group, it was not a stretch to say the trip served as a springboard for more good news to come. They expect building a closer relationship with each other will pay dividends in the years ahead.

“This was an amazing opportunity to see firsthand the Israeli ecosystem which has produced scores of promising new tech companies,” says Quinn Williams, corporate securities shareholder at Greenberg Traurig. “Israel and Arizona share many common economic factors, including the dependence on new entrepreneurial companies.”

Hank Marshall, economic development executive officer for the City of Phoenix, says, “Arizona and Israel have always had an abundance of compatibility. The facilitation of greater business opportunity between Arizona and Israel requires more than compatibility; it requires connectivity. The trip served to catalyze the necessary connectivity that will drive the relationship and outcomes to an entirely new level.”

Steven G. Zylstra is president and CEO of the Arizona Technology Council and Leib Bolel is president and CEO of the Arizona Israel Technology Alliance.

ARIZONA TECHNOLOGY REPORT

3

Driven by Growth

New website uses visitor data to maintain engagement While any organization wants its website to engage visitors, it’s often hit or miss whether that goal is accomplished. If it’s a miss, years could pass before there’s enough money to try to get it right. By that time, all sorts of opportunities for both sides connecting may be lost.

This scenario of uncertain outcomes is what the Arizona Technology Council wants to avoid when creating its new website. Instead, the Council prefers its community of users feel the site is a place to which they return again and again while having an experience that builds their ties to the group.

To make this happen, the Council partnered with Nuanced Media, a Tucson- and Phoenix-based digital marketing agency. The new www.aztechcouncil.org uses a growth-driven design strategy championed by HubSpot.

“We are dedicated to providing the best possible experience for our members and the technology community as a whole,” says Steven G. Zylstra, the Council’s president and CEO. “Our website is a high priority because it’s the hub for discovering networking events, critical public policy resources and content that is valuable to technology leaders and companies.”

To feed that evolution, user data will allow the Council to continuously make improvements, not just wait for years to pass to try something new. “Typically, companies engage a digital marketing agency for a new website and the contract concludes when the site is complete,” says Ryan Flannagan, Nuanced Media’s CEO. “We feel this is a dated strategy that fails to consider the target audience. With our approach, we can make adjustments based on user data to ensure it remains valuable to the community.”

Nuanced Media has refined its process of doing website improvements based on real user data along with continual enhancement of websites’ calls to action, messaging and other key

elements as all updates are based on strategic planning approved by the client. In addition, the site was developed to be responsive and mobile-friendly to engage those who browse the Web on mobile platforms. This is a must since mobile Internet usage has surpassed desktop usage.

Report update reveals good news for paychecks, venture capital Whether you were looking for a better payday last year or an increase in venture capital this year, Arizona’s technology industry was the place to be.

Those are a few of the highlights from the recent quarterly update of the Arizona Technology Council Industry Impact Report based on data collected from sources such as the U.S. Bureau of Labor Statistics, CompTIA and AngelList.

The average pay in the industry in the state was $79,799, a 3.6-percent increase from $77,000 in 2016. The pay hike also was better than the 3 percent received by the average worker in the United States.

While Arizona still could use more venture capital throughout the technology industry, the year-over-year trend was good. The state is on track for $175 million in venture capital investments in 2018, which would be a 3-percent increase from $169.8 million in 2017.

4

ARIZONA TECHNOLOGY REPORT

Overall, Arizona’s technology community created 171,322 jobs in 2017, according to the report. In turn, the community contributed $32.5 million in total taxes last year.

While the Council publishes the report, the information is compiled by eImpact, an Oregonbased organization that creates Web-based data-reporting solutions designed to help engage stakeholders, drive effective policy and create new growth.

For the Council, the setup for the data mining means the report can be periodically updated without a large reinvestment because the sources that feed into the platform already are in place.

While updates could be done often, the current plan is to do them quarterly.

The report is available at http://bit.ly/aztechimpact-report.

Change for the Better Council sharpens focus on value proposition

by David Lee In an environment of exponential change — especially in the field of technology — every organization faces daunting questions of how it will adapt to add value for its constituents and community.

With this in mind, the Arizona Technology Council continuously reviews and tests its value proposition. To assist with the latest analysis, the Council has enlisted myself, David Lee of MSS Business Transformation, and Doug Reid of Douglas Reid and Associates to conduct a holistic strategic review of the organization, its purpose, its vision and the value it delivers to its members, as well as to facilitate a refresh of the strategic plan.

The strategic process consists of Stage One, a discovery stage to research foundational strategic elements and lay the groundwork for strategic planning, and Stage Two, a facilitated strategic planning session. With the first stage nearly complete, the Council at press time was preparing for the second stage in late November.

As important as it is to review and refresh the organization’s strategy, it is equally important the process be inclusive. Participation by members, staff, the board of directors and other key stakeholders ensures all groups have input to, are aware of and are ultimately onboard with the resulting strategy. To that end, Stage One included one-on-one interviews, a member survey and regular reviews with a steering committee and the board of directors. Stage Two also will include members of each of these groups.

A major part of Stage One is to ensure the organization and its constituents have a shared understanding of the Council’s purpose, mission, vision and value. One area shown to be quite evident is the value that the Council delivers to its members. The statistically valid member survey revealed all member groups, personas and segments identified with very little variation that the same four value points are highly important:

aztechcouncil.org

• Providing access to people of influence in the Arizona technology community • Connecting people who will value members’ services or products • Creating opportunities for professional development • Providing the technology community with a voice to government and regulators While the survey does not reveal how these value points are best delivered to each of the member groups, personas or segments, this kind of clarity provides a solid foundation for the second stage of the planning.

At the same time, the research from the survey and interviews provides an opportunity to refresh the foundational strategic elements of purpose, mission and vision. Every organization should do this periodically because changes such as addition of new team members tends to cause a natural drift.

A reset toward a shared understanding becomes especially important to guarantee a cohesive strategic planning process in Stage Two. To that end, Reid and I facilitated sessions with the Council leadership, staff and the executive board throughout October to define, refine and bring clarity to each of these elements.

A summary of findings from the interviews, surveys and facilitated sessions will be shared with participants in the weeks leading up Stage Two. By being transparent with the participants, the Council will be better prepared to identify key strategic initiatives that will be executed in 2019 and prepare the organization to meet the needs of its membership in the future.

David Lee is executive director of MSS Business Transformation.

ARIZONA TECHNOLOGY REPORT

5

Whole New World Chief Science Officers use global ties for early start on leadership

Editor’s note: The Chief Science Officers Program, a collaborative initiative of the Arizona Technology Council Foundation and Arizona Commerce Authority, recently brought together members from Arizona, Georgia, Michigan and Oregon, as well as Kuwait and Mexico for its CSO International Summit in Washington, D.C. The event gave the students opportunities to position themselves in front of key national decision-makers, share best practices as an international cabinet and build synergy among the regional leaders. Caillou, a senior at Skyline High School in Mesa, shares his observations on how this event has helped shape his life.

Phoenix, Ariz. – Oct. 7, 2018 at 12:35 a.m.

“Please prepare the cabin for door closure.” The loudspeaker boomed with the captain’s voice as we prepared to take off from Sky Harbor International Airport. I knew this was going to be exciting. I knew that this was an opportunity of a lifetime but what I didn’t know was the extent of how this opportunity would impact me.

One year after my attendance at my first Arizona leadership training, I was chosen to be a part of the Leadership Council, becoming someone who aids in the development of future trainings. Only months after that, I was selected to represent my school, community and state at the CSO International Summit (CSOIS) in the nation’s capital. I was on my way!

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ARIZONA TECHNOLOGY REPORT

Washington, D.C. – Oct. 7, 2018 at 9:53 a.m.

“Welcome to Washington, D.C., and thank you for choosing American,” the captain boomed once more. I exited the plane still in awe as my brain struggled to comprehend that I was in the capital of the United States. As we headed to grab our luggage, a surprise awaited as two students who earlier had traveled 16 hours from Kuwait were waiting and holding signs welcoming our arrival. At this moment, it began to sink in that for the next week I would be surrounded by the brightest students our generation has to offer.

The CSOIS officially kicked off with a delegation including members from other states and countries. Throughout the week, we were continuously challenged as we met with STEM industry and policy leaders ranging from the director of the National Science Foundation to the White House Office of Science and Technology Policy as we journeyed to learn how to create positive change.

Yet, no matter whom we met — whether it was Megan Smith, the chief technology officer of the U.S., or staff at Google’s D.C. headquarters — the message was clear: Anyone from any background regardless of race, ethnicity or demographic could make an impact on the world around them. All they had to have was drive and to be bold.

Dr. Jeremy Babendure first created the CSO program with the hope of empowering students to use their voice to influence changes in STEM education. Today, it has accomplished just that. It wasn’t until 11 years after I had enrolled in public school did I feel that I — a student and one of education’s most important constituents — could drive change in education. I am happy to say that because of the CSO program, I have drive and am not afraid to be bold as I tackle the challenges of STEM education head-on.

Phoenix, Ariz. – Oct. 12, 2018 The CSOIS completely changed my life as I learned how to communicate in a team, as well as how to market the fact that everyone can make a difference in their own communities. The summit opened my eyes to a world of innovation and excitement that I had never seen before while being surrounded with a diverse student delegation. There is no doubt in my mind that the future is bright. It is because of the commitment and strive of director Dr. Babendure and COO Kelly Green that I now have unwavering passion to make the world a better place. I will not back down. I will not give up.

aztechcouncil.org

Blockchain Technology Forum weighs whether this is the future of cybersecurity

by Fredric Bellamy Blockchain, the technology principally known for powering Bitcoin, will be the focus of presentations by speakers and panelists at the Arizona Technology Council’s third annual Cybersecurity Lunch Forum on held Dec. 12.

The forum organized by the Council’s Cybersecurity Committee will be co-hosted by the Arizona Cyber Threat Response Alliance (ACTRA)/Arizona InfraGard. The event will be held 11:30 a.m. to 1 p.m. at SkySong, the ASU Scottsdale Innovation Center, 1365 N. Scottsdale Road, Building #3, Rooms 130/135.

The program promises to be one of the most comprehensive, practical and up-todate presentations regarding this latest technological revolution — one at which Arizona is the center and is accelerating in its importance to applications in the technology and security sectors.

In contrast to the Internet, blockchain was designed with the aim of thwarting cyber attackers by using distributed ledgers to make transaction histories as tamper-resistant as possible. A decade ago the white paper attributed to “Satoshi Nakamoto” described the creation of a “peer-to-peer version of electronic cash.” The paper noted that “as long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they’ll generate the longest chain and outpace attackers.”

The program will begin with introductory remarks by Frank Grimmelman, ACTRA’s president and CEO/intelligence liaison officer.

Panels will feature several leaders in the blockchain space, including representatives of companies actively involved in developing and deploying this technology.

A panel chaired by Caroline Lynch, founder of the government relations and public policy advocacy firm Copper Hill Strategies, will discuss the development and implementation of Arizona’ s leading financial technology, or “FinTech” sandbox, and how this initiative is helping blockchain and cryptocurrency firms develop their technology with regulatory certainty. Panel members also will discuss their experience in applying this technology to various use cases, including smart contracts and logistics.

This presentation will be followed by a keynote discussion led by Fred Bellamy, named by U.S. News & World Report’s Best

Lawyers in America as 2018 Best Lawyer in Technology Law in Phoenix. The focus will be on how blockchain technology fits into the broader history of cybersecurity with respect to the Internet.

The next panel will discuss how distributed ledger technology, including blockchain, is being used to develop smart contracts that serve a variety of use cases in real estate and FinTech. Panel members will explain how these current use cases may evolve and the potential business implications of this technology. The panel will be chaired by David McCarville, Of Counsel at Ryley, Carlock & Applewhite and adjunct professor for ASU’s Sandra Day O’Connor College of Law’s Blockchain and Cryptocurrencies: Policy and Law course.

Forum speakers will include Jay Carpenter, founder of Desert Blockchain, which focuses on blockchain and decentralized technologies.

He is an adjunct professor at Tempe-based University of Advancing Technology, designing and teaching a technical blockchain course with a use case and project focus, including the Internet of Things, cybersecurity and software development of blockchain prototypes.

ONLI, which provides the “plumbing” for asset-backed financial instruments, will be the topic of Michael McFall, founder and CTO of the ONLI corporation. McFall has built several Silicon Valley companies from the ground up.

The most notable one was Net Effect Systems, which was sold to Ask Jeeves (now known as Ask.com) for $200 million.

Rounding out the speakers will be Leslie Pico, a principal of Pacific So West, a deep tech consultancy with notable clients, including Propy. In August, Pico was part of the first real estate transaction in Arizona and the third in the nation to be committed to the blockchain.

For more information on the forum, go to www.aztechcouncil.org.

Fredric Bellamy is a partner with Fredenberg Beams and practices data privacy, cybersecurity, intellectual property and business law.

ARIZONA TECHNOLOGY REPORT

7

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Allion, Alex, 22

Eichner, Michelle, 52

Lobos, Damacely, 18

Schmittlein, Marc, 38

Arenas, John, 14

Feeney, Matthew P., 44

Lobos, Migdol, 18

Shapiro, Gary, 47

Baise, Mke, 16

Fletcher, Molly, 49

Loo, Leonardo, 42

Shaw, Nick, 47

Bejarano, Frank, 20

Hall, Derrick, 32

Mallah, Allyson, 48

Sheridan, Vanessa, 47

Bellamy, Fredric, 63

Hamer, Glenn, 49

McAllister, Clarence, P.E., 12

Shubat, Alex, 14

Bolel, Leib, 59

Hammersley, James, 47

McLane, Charles A., 36

Stotler, Brittany, 24

Bones, Christopher, 47

Horwath, Rich, 46

Meshey, Jeff, 40

Tollefson, Richard, 48

Bonnstetter, Dr. Ron, 24

Hurt, Karin, 66

Mohr, Brian, 49

Tyra, Michal, 48

Bowers, Rick, 49

Janefalkar, Anand, 17

Muhich, Dr. Ken, 12

Watson, Sandra, 30

Brown, Dave, 11

Jeong, Saeju, 54

O’Keefe, Sarah, 26

Zylstra, Steven G., 57

Distel, Oded, 49

Jones, Syndeelou, 18

Oechsle, H. John, 14

Ducey, Doug, Gov., 49

Kehaly, Pam, 34

Price, Ron, 49

Dye, David, 66

Lee, David, 61

Richardson, Sarah, 12

ACO Partner, 22

Delta Dental, 19

Local Motors, 24

Strategic Thinking Institute, 46

Alliance Bank of Arizona, 2

Desert Financial Credit Union, 7, 40

Mayo Clinic, 67

SURF, 10

Arizona Association for Economic Development, 51

Digitile, 52

MSS Business Transformation, 61

Swiftpage, 14

Economic Club of Phoenix, 51

National Association of Women Business Owners – Phoenix, 51

Tempe Chamber of Commerce, 51

Arizona Chamber of Commerce and Industry, 49 Arizona Commerce Authority, 30 Arizona Cyber Threat Response Alliance, 51

Enterprise Bank & Trust, 10 Entrepreneurs’ Organization – Arizona, 16

National Bank of Arizona, 25 Noom Coach, 54

Espresa, 14

Phoenix Philanthropy Group, The, 48

Arizona Diamondbacks, 9, 32

Everest Edge Enterprises, 48

Plaza Companies, 20

Arizona Hispanic Chamber of Commerce, 50

Extreme Relationship Management, 50

Pomelo at The Orchard, 56

FirstBank, 8

Quarles & Brady LLP, 4, 42

Arizona Israel Technology Alliance, 59

Fortis Networks, Inc., 12

Ryan Companies US, 20

Arizona Small Business Association, 50

Fredenberg Beams, 63

Arizona Technology Council, 50, 51, 57

Gallagher & Kennedy, 27

Scottsdale Area Chamber of Commerce, 51

Aspen Heights Partners, 20

Genesis, 54

Banner|Aetna, 55

Giordano’s, 56

Blue Cross Blue Shield of Arizona, 68, 22, 34

Global Chamber, 50 Greater Phoenix Chamber of Commerce, 50, 51

Burch & Cracchiolo, 26

Holualoa Companies, 20

CBIZ MHM, 13, 36

Insperity, 16

Chandler Chamber of Commerce, 51

JIVE, 8

Change Healthcare, 22

JLL, 21

Choice Hotels International, Inc., 20

Land Advisors Organization, 50

CopperPoint Insurance Companies, 38

Let’s Grow Leaders, 66

Crossroads, 22

Lobos Electric, 18

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

Tru Realty, 12 TTI Success Insights, 24, 49 Ture North Studio, LLC, 20 UEB Builders, 20 UJET, 17 UnitedHealthcare, 23 Valley Leadership, 11 Venus Vault LLC, 18

Serendipity Labs Coworking, 14

Wallbeds ‘n’ More, 53

Sicilian Butcher, The, 56

WasteManagement Phoenix Open, 5

Snell & Wilmer, 3, 44

BMO Harris Bank, 15

Terryberry, 22

Stetson Chiropractic Clinic/ Fibromyalgia Wellness Center, 12

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Five Ways to Cultivate Innovation and Problem Solving

You have to nurture your employees to speak up

by Karin Hurt and David Dye

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Automation is a great way to drive costs out of operating a business and free up time for the humans to do what humans do best: think strategically and solve problems. But it’s not possible to just flip a switch and turn on the problem-solving gene in employees who’ve never been asked to think critically before or, worse, have been discouraged from speaking up.

Here are five practical ways for business owners to build a more innovative, problem-solving culture at every level of their business.

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There’s a certain rush that comes from jumping in and doing what must be done at exactly the right time. It might feel good, but it’s the easiest way to sabotage long-term success.

If you solve problems for your team instead of with your team, you teach them to stop thinking.

A better approach is to take time to slow down just enough, even during times of crisis, to bring others along and help them rise to the occasion.

Don’t be a hero, be a hero farmer.

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Karin Hurt and David Dye, founders of Let’s Grow Leaders, help leaders achieve breakthrough results while building healthy relationships for lasting influence and impact. They are International keynote speakers, expert trainers, and the award-winning authors of four books, including Winning Well: A Manager’s Guide to Getting Results Without Losing Your Soul. letsgrowleaders.com

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When they don’t know how to problem-solve, the management cliché of “Don’t bring me a problem without a solution” means your team won’t bring you problems. Build the team’s problem-solving competencies with this simple 9 Whats Coaching Model technique.

When your team brings you a problem, encourage them to also identify potential solutions. Ask them the following questions: • What is your goal?

• What have you tried?

• What happened?

• What did you learn?

• What else do you need?

• What else might you try?

• What do you think might happen if you tried option A? How about Option B? • What will you do now?

3. EXPOSE THEM TO MESSY DISCUSSIONS

It’s tempting to think we must have it all figured out before wasting our team’s time when raising new strategic issues

or concerns. But if you’re really working to build leadership capacity, it’s also important to sometimes bring your folks in before you have a clue. Let them see you wrestle in the muck.

Get their input, too. “We could do this … but there’s that and that to consider … and also the other thing.”

4. HOLD “BRING A FRIEND” STAFF MEETINGS

An easy way to do No. 3, above, is through “Bring a Friend” staff meetings. Once in a while, invite your direct reports to bring one of their high-potential employees along to your staff meeting. Of course, avoid anything super-sensitive, but be as transparent as possible.

They’ll gain new perspectives and learn how your team works through problems, and, as a bonus, you get some extra sets of eyes working on your most strategic issues.

5. OWN THE U.G.L.Y.

Take time with your team to focus on the big-picture aspects of your business. You can start with asking these four strategic questions, and then involve them in prioritization and action planning.

U — What are we Underestimating?

Competitive pressures? New technology? The opportunity that we “don’t have time for?

G —What’s got to Go? What are we doing now that doesn’t make sense anymore?

What processes are more habit than value? What meetings are wasting our time? What’s got to go for us to be remarkable?

L —Where are we Losing?

Where are we still under-performing despite our best efforts? Why? Who’s doing it better? How? Y — Where are we missing the “Yes”?

What must we say “Yes” to in 2019? What new opportunities are calling for our attention? Where must we invest more deeply?

You’ll be amazed how quickly these four strategic questions will get to the heart of the biggest issues and opportunities facing your team.

There’s no faster way to build your team’s capacity than to help them think critically and solve problems on their own. Try a few of these techniques and watch your team accomplish more than you thought possible.

As technology advances, many human jobs are becoming automated and replaced by computers, leaving the stickiest problems and most gnarly customer issues for the humans to solve. Companies who embrace this reality and teach and encourage problem solving at every level have a distinct and growing competitive advantage.