May 2019 Issues of In Business Magazine

MAY 2019

Spotlight on the Best: 2019 Commercial Real Estate

The

Housing Market

A window into our economy!

Family Business:

Pass It On Want In on

Marijuana Business?

Networking, Introvert-Style

$7.95 INBUSIN ESSPHX.COM

THIS ISSUE Global Chamber Alliance of Arizona Nonprofits

,

Arizona

TWO GREAT BANKS BECOME ONE. When it comes to furthering our state, it’s not just business. It’s personal. Which is why we merged two of Arizona’s most trusted banks—to give you a financial partner who

not only offers local decision-making, but the regional power and strength to keep pace with the growth of our state. Welcome to a new kind of banking experience. www.bokfinancial.com

— Dave Ralston Arizona Market CEO

+ © 2019 BOK Financial. Services provided by BOKF, NA. Member FDIC.

=

Banking | Lending | Investments

Snell Snell & & Wilmer Wilmer is is proud proud to to celebrate celebrate 10 10 years years in in Los Los Cabos, Cabos, Mexico.

Mexico.

Thank Thank you you for for trusting trusting Snell Snell & & Wilmer Wilmer with with your your real real estate estate development, development, transactional transactional and and regulatory regulatory needs. needs.

Alvaro Alvaro Fox Fox

Carlos Carlos Freaner Freaner

Carlos Carlos Sugich Sugich

Roberto Roberto Ibarra de Rueda Ibarra de Rueda

Alfredo Alfredo Solórzano Solórzano

Understanding Understanding what makes makes you you unique.® unique.® what www.swlaw.com www.swlaw.com

ALBUQUERQUE | DENVER | LAS VEGAS | LOS ANGELES | LOS CABOS | ORANGE COUNTY ALBUQUERQUE | DENVER | LAS VEGAS | LOS ANGELES | LOS CABOS | ORANGE COUNTY PHOENIX | RENO | SALT LAKE CITY | TUCSON | WASHINGTON, D.C. PHOENIX | RENO | SALT LAKE CITY | TUCSON | WASHINGTON, D.C.

MAY 2019

COVER STORY

24

The Housing Market

What does the housing market tell us about employment, business growth and other important economic markers?

Professionals invested in our real estate market help us explore what’s happening in housing — from single-family residences to multifamily projects.

FEATURE

IN BUSINESS IS ON APPLE NEWS Subscribe at bit.ly/in-business-phx

PARTNER SECTIONS GLOBAL CHAMBER® Global Chamber® Events

30

Successful Succession in a Family Business

Seven ways to groom your child for the family business.

DEPARTMENTS

9

Guest Editor

Jonathon Vento, principal developer of True North Studio, introduces the “The Housing Market” issue.

SPRING 2019

globalchamber.org/events

May 1-5 Canton Fair, Guangzhou

10

Spotlight Event May 2 at 11:30am Opportunities in Exporting May 9 at 8:00am Success Stories from Exporters May 16 at 8:00am Have More Global Online Success May 23 at 8:00am Break Through on Trade and Trade Wars

Marco Robert (left) sharing business insights

Better Connections and Faster Learning in Busy Times

May 30 at 8:00am Tips on Navigating the Global Landscape

by Doug Bruhnke, Global Chamber®

Inside this Section

2

Important Travel Considerations for 2019

3 4 6 6 7 8

Leverage International Success to Sell Your Business Get in the Right Frame of Mind to Go Global

Creating Connections to Grow: City of Surprise Vibrant Goa Expo, October 17-19

Let Lesser-Known Visa Types Benefit Your Business Ten Tips to Prosper in Turbulent Times

Recently, I spent the afternoon at the global headquarters of Thunderbird School of Global Management in downtown Phoenix. In my meetings with a dozen or so of the senior leaders there, including new Dean Sanjeev Khagram, I was reminded that our global tribe and Thunderbird’s “Tbird Life” leaders have a respectful and professional tone that is warm and welcoming. It was that positive quality about Thunderbird that caused me to think about forming Global Chamber®.

If more companies were successful in global business, and tapped into that respectful and professional energy, the world will get better.

I noticed as a young professional working my way through Dupont decades ago that international businesspeople had a different and, to me, a more desirable style. They were generally more thoughtful and inquisitive, more caring and questioning. The best of the best leaders were people whom you could look up to because of their intelligence, experience and emotional intelligence. Because we’re all busier than ever, how can we fit that all in? As Bill Gates has said, “Busy is the new stupid,” and so I recommend not responding to the question “How is it going?” with “Busy”! We

get it. We’re all busy. How do we do more, more effectively?

The time for gratitude, sharing respect and THINKING seems less than ever, unless we do something different. Being busier than ever means that too many businesses still don’t consider going global because, honestly, it takes more work. We need more people doing global business, not fewer! And those going global can get sub-optimal results because a short-cut here or there can cause delays or trouble.

So we have some important new offerings planned for members!! Watch for ways that we make our warm introductions timelier and more effective as we grow and use technology to facilitate those connections that support more member success. Also watch as we incorporate the soft skills of global business into learning management systems that get more of our members up to speed faster on essential business techniques. We’re here for our members, thinking every day about how we can support them to … Be global and UNSTOPPABLE! Doug Bruhnke is founder/CEO of Global Chamber®.

GlobalChamber.org

1

37 Global Chamber

SPRING 2019

UNITING, STRENGTHENING, AND ADVANCING ARIZONA’S NONPROFIT SECTOR. ARIZONANONPROFITS.ORG

The Alliance of Arizona Nonprofits is an action-oriented group of partners across Arizona — both nonprofits and those in the community who support them — dedicated to uniting, strengthening and advancing Arizona’s nonprofit sector. The Alliance envisions an Arizona where all nonprofits are valued, empowered and thriving.

CONTENTS

p. 2 Arizona Gives Day 2019 Results Are In! p. 3 Three Questions with a Board Member: Penny Allee Taylor p. 4 Decisions, Dollars and Data, Oh My! p. 6 Not a Far Stretch p. 7 Leading Discussions about Unconscious Bias p. 8 Employers of National Service Program

Alliance of Arizona Nonprofits 360 E. Coronado Road, Suite 120 Phoenix, AZ 85004 Phone: (602) 279-2966 www.ArizonaNonprofits.org

Good Deeds in Spring Lead to Good Vibes All Summer Long

by Kristen Merrifield, CAE, CNAP, Chief Executive Officer May has long been one of my favorite months of the year. The beautiful transition between spring and summer, with temperatures still bearable even in the Valley of the Sun. It’s a time for graduations and celebration of new seasons in life. During my time at the Arizona Small Business Association, we had a month-long celebration during May because it was Small Business Month.

And now, at the Alliance, it is when we get to celebrate the successes from Arizona Gives Day and hand out more than $180,000 in prizes to participating nonprofits.

But, as we inch closer to yet another long, Kristen Merrifield hot, summer, it also brings up a few concerns for the nonprofit sector. With charitable giving normally spiking around tax time, and then again around end of year, the summer represents a potential drought in more than one way. It is critically important that nonprofits have access to a steady stream of funding throughout the entire year in order to effectively sustain their missions — especially for those working on issues that are only exacerbated by rising temps — like homelessness or animal welfare. This is why consistently donating to nonprofits throughout the year is incredibly important.

With all the tax changes that have occurred since the Tax Cuts & Jobs Act was passed at the end of 2017, it also remains to be seen whether we will continue to see a spike in donations around tax time and end of year. The Alliance has been hard at work finding creative solutions to help mitigate an estimated $273 million annual loss in charitable giving to Arizona nonprofits. This is another very important reason we must continue to give of our time, talent and (especially) treasures to help nonprofits be able to continue to provide critical programs and support.

So, as the cooler temps waft away into the summer sun, as you are sitting around the pool or staying tucked away inside in the comfort of your A/C, please remember your nonprofit colleagues. Make a special gift this summer, or volunteer a few hours of your time. Let’s continue to make May a month that makes us all smile, especially those who need a smile the most.

1

45 Alliance of Arizona Nonprofits

SPECIAL SECTION PRESENTS

Commercial Real Estate SPOTLIGHT ON THE BEST

CBRE Colliers International JLL NAI Horizon

SPONSORED BY

53 2019 Commercial Real Estate: Spotlight on the Best

MAY 2019

4

INBUSINESSPHX.COM

Feedback

Paul D. Engler, Andy Federhar and Jennifer Ward, Esq. respond to In Business Magazine’s burning business question of the month.

11

Briefs

“To Better Serve the Hispanic Community, Translation Must Be More than Literal,” “Recognition Can Be a Snap,” “Facilitating an Investor-Entrepreneur Fit,” “Ops for Giving Back Foster Next-Gen Leadership,” “Local Standouts Recognized for Achievements and Philanthropy,” “Smart Email Emigrates from New Zealand” and “A/C Rising”

13

By the Numbers

Marketing campaigns sometimes lose sight of the real goal: human connection.

14

Startups

“True Salt — All-Natural and Unrefined” and “Dental Marketplace, Online”

16

CRE

“Phoenix Rising: Driving Forces Behind One of America’s Fastest Growing Cities,” “Taylor Morrison Expands in Southeast Valley” and “Arizona Center Transforms into UrbanContemporary Center”

18

Healthcare

“Small Businesses Gain the Buying Power of Big Corporations in Healthcare Benefits,” “DoL Offers New Tool to Help Employers Understand Mental Health Issues” and “Why Hospitals Must Seek Scale”

20

Technology

“Fast-Food Giant Sees Potential in Decision Logic Technology” and “HR Teams Use Next-Gen Technologies to Win the Talent War”

22

Legal

Attorney discusses marijuana businesses and the potential to get in on a smokin’ economic opportunity.

31

Books

New releases give fresh insights on business thinking.

32

From the Top

Ted Anderson has built his advertising firm on creativity — and relationships.

34

Assets

2019 Infiniti QX80 LIMITED 4WD Plus: Making that all-important cup of coffee just got easier.

36

Power Lunch

Toro: Fiery Flavors in a Peaceful Setting Plus: Enjoy the menu with a side of play.

64

Roundtable

Introverts bring different strengths to networking.

ON THE AGENDA

33

Spotlight

Picklecon — Design Pickle

Millennials — the largest living generation — are aging into prime homeownership years and will drive the housing market going forward. According to Meyers Research’s director of economic research and resident millennial expert, Ali Wolf, Phoenix ranks fourth among their top ten most desirable markets. The labor market helped and hurt Phoenix, with strong employment opportunities but modest salaries. meyersresearchllc.com

Legal Brain. Business Brawn.

We Are

500+

10

ATTORNEYS/

OFFICES SERVING CLIENTS IN NEARLY EVERY STATE

118 ARIZONA-BASED

11

CORE PRACTICE GROUPS/23 AREAS OF FOCUS

43

#118 AMLAW 200

Best

BIGLAW FIRM

(WITH 300-599 ATTORNEYS)

FOR FEMALE ATTORNEYS

BY LAW360

100%

ATTORNEYS RECOGNIZED BY CHAMBERS IN 2018

NAMED A

RATING IN 2018 HUMAN RIGHTS CAMPAIGN’S ANNUAL CORPORATE EQUALITY INDEX

27

ARIZONA ATTORNEYS SELECTED TO THE BEST LAWYERS IN AMERICA®

Let us put our strengths to work for you.

For information about our full range of business and litigation experience, please contact Nicole Stanton, Phoenix Office Managing Partner, at nicole.stanton@quarles.com or 602.229.5662.

quarles.com

May 2019 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

6

MAY 2019

INBUSINESSPHX.COM

© Enterprise 2018

May 2019

NATIONALLY RANKED.

VOL. 10, NO. 5

Publisher Rick McCartney

Editor RaeAnne Marsh

Art Director Benjamin Little

Contributing Writers Bant Breen Komal Dangi

LOCALLY FOCUSED.

Melissa Forbes Hani Goldstein Mike Hunter Henry Hutcheson Ken Kaufman Michelle Tillis Lederman Alejandro Pérez Amanda Seidler ADVERTISING

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.

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

President & CEO Rick McCartney

Editorial Director RaeAnne Marsh

Senior Art Director Benjamin Little

Financial Manager Tom Beyer

WITH CHIROPRACTIC

FSA/HSA APPROVED

USE YOUR PRE-TAX DOLLARS

NO APPOINTMENTS OPEN EVENINGS & WEEKENDS NO INSURANCE NEEDED

MAY 2019

Events Amy Corben

More: Visit your one-stop resource for everything business at www.inbusinessphx.com.

For a full monthly calendar of business-related events, please visit our website.

FIND YOUR

8

Business Development Louise Ferrari

Cami Shore

Member FDIC 1. Bank Director, 3rd Quarter 2017, Volume 27, Number 3

© 2019 The Joint Corp. All Rights Reserved.

Operations Louise Ferrari

Camron McCartney

Learn more at enterprisebank.com/phoenix

Keep your life moving. Join the millions of Americans who have found relief from pain and a pathway to wellness at The Joint. Chiropractic can help relieve back and neck pain, migraines and more.

thejoint.com

Office Manager Allie Schimmel

Accounting Manager Todd Juhl

Corporate Office InMedia Company 1 N. 1st Street, Sixth Floor Phoenix, AZ 85004 T: (480) 588-9505

info@inmediacompany.com

www.inmediacompany.com Vol. 10, No. 5. 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. © 2019 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.

INBUSINESSPHX.COM

JONATHON VENTO, TRUE NORTH STUDIO

House Business?

Housing is a popular focus of economists and investors gauging the strength (or lack) of our economy — from urban towers and infill projects to sprawling master-planned communities.

It’s a tremendous time for urbanization in cities across the country. The projects that we at True North Studio produce are inspired by, and contribute to, the fabric of a neighborhood and foster a sense of community. Thriving downtowns and urban areas must embrace the old with the new buildings, low to high elevations, mixed uses, public spaces, walkability, access to transit options — and, most importantly, arts and culture.

The concept of “third spaces” and creating such environments are what draw communities together. People of all ages, incomes and walks of life are pouring into these areas for housing, and to be part of an enriching urban lifestyle.

In Business Magazine turned to professionals invested in our real estate market to explore what’s happening in housing — from single-family residences to multifamily projects — and how that relates to employment, business growth and other important economic markers. In the cyclical nature of this industry, the idea of a bubble sometimes surfaces; this article provides a picture of where we are today.

Whatever that picture may be, business fundamentally runs on connections and relationships. And in networking, the gregarious extrovert is commonly seen to have an edge. Not necessarily so, says Michelle Tillis Lederman in “Networking Is for Introverts.”

Henry Hutcheson stands another sacred cow on its head in “Successful Succession in a Family Business,” discussing what to do — and not to do — in handing the family business to the next generation.

A business sector attracting a lot of attention right now is marijuana, and this month’s Legal feature examines where the opportunities might be and some of the parameters to those businesses. The Startups page spotlights two businesses carving out a niche in their own business sector. And By the Numbers this month looks at the importance of “keeping it real” for the customer.

Power Lunch, Technology, Healthcare — In Business Magazine regularly serves a varied menu of information to inform and strengthen our local business community. Plus a special section that, this month, profiles commercial real estate leaders and leading properties.

I’ve enjoyed working with In Business Magazine to help bring you this May issue, a joy I hope you’ll share as you read it.

Jonathon Vento brings to True North Holdings 25 years of private equity, development and project finance experience.

He has built and managed, as a principal, more than 100 projects and operating companies throughout North America, Europe and Asia, including energy, real estate, technology and manufacturing, totaling in excess of US $3 billion.

Vento has utilized structured debt, institutional equity, mezzanine debt, state and federal grants, public/private partnerships and tax equity. He has managed combined staffs of more than 1,000 people in his prior roles as president and COO. In the early 1980s, he attended the University of Michigan, and graduated from Eastern Michigan University in business/finance.

Sincerely,

truenorthstudio.com

Jonathon Vento Principal Developer True North Studio

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

Home Is Where the Heart Is We want to thank Jonathon Vento for leading

environment that can (and usually does) excite people to

this issue like he leads his company — with

feel good about where they live. Phoenix is primed for this

a creative bent to getting it right and finding

outcome given the influx of people and interest. Developers

the positive that will, ultimately, spark great

know they are coming and we, as a community, are beginning

interest and empower people to engage. His

to develop more than just a place to live. Our housing market,

projects and development locally are evidence of the kind of

as a barometer of our economic position, is what we chose to

economic ignition we need to build the best place to live and,

focus on in this month’s cover story.

ultimately, prosper.

Spotlight on the Best: 2019 Commer cial

MAGAZINE

Real Estate

MAY 2019

IN BUSINESS

THE HOUSING MARKET

The

Hous Markeing t A window

into our

econom y!

Family Business:

Pass It On Want In

MAY 2019 • INBUSINESSPHX.COM

Photo courtesy of PJ Szabo(top)

In the heart of any city, we see a vibrant and enriching

THIS ISSUE

Global Chamber Alliance of Arizona Nonprofits

on Marijuana Business?

Networking, Introvert-St yle

$7.95 INBUSINESSPHX.COM

DON’T MISS OUT!

Get a year of In Business Magazine Subscribe now at inbusinessphx.com

—Rick McCartney, Publisher

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

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

9

MAY 2019

INBUSINESSPHX.COM

VALLEY LEADERS SOUND OFF

Phoenix’s economy has fostered and sustained growth in the housing sector (see our cover story on page 24); how has it impacted your company and how have you responded to it?

IN BUSINESS IS ON APPLE NEWS Subscribe at bit.ly/in-business-phx

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.

MAY 2019

10

INBUSINESSPHX.COM

PAUL D. ENGLER

ANDY FEDERHAR

JENNIFER WARD, ESQ.

Executive Vice President and Chief Real Estate Officer Alliance Bank of Arizona Sector: Banking

Office Managing Partner Spencer Fane LLP Sector: Law

Arizona President Employers Council Sector: Business Support

The strong local economy means our clients are doing more business in Phoenix, and we have grown with them to maintain our commitment to responsive and effective legal service delivery.

We have expanded the range of services our firm provides and increased in number of attorneys from three to 13 since opening our office here in 2017.

We have grown from a focus on dispute resolution to additionally offer labor and employment, transactional, intellectual property and real estate advice. Spencer Fane strives to be lean, strategic and pragmatic in the advice provided, and, moving forward, we remain poised to act on our clients’ growth initiatives.

Due to the positive impact of the economy on our clients, Spencer Fane has been able to outperform the legal industry each year for the last eight years, with the firm posting 20-plus percent increases in revenue in 2017 and 2018. This growth is driven by the increased needs of our clients in growing markets like Phoenix.

Employers Council provides HR and employment law support to companies across many industries, including those affected by the growth in the housing industry. One of the biggest effects that we’ve seen is the struggle that companies have with hiring and retaining qualified employees, particularly in the construction industry and skilled trades.

With the current low unemployment rate, experienced job-seekers often have many options from which to choose and employers are faced with the challenge of differentiating themselves in a crowded field.

Understandably, many companies in the construction industry and other trades promote managers based on their technical expertise in the trade. This often means that the new managers have little if any experience managing people.

In many ways, the aptitude of their supervisors defines a company’s culture and can mean the difference between keeping and losing valuable employees.

The construction and skilled trade members of our organization that have had the most success in attracting and retaining employees are those that place a high value on training their managers in in supervisory and leadership skills.

Since the depth of the recession, Phoenix has seen steady recovery.

According to John Burns Real Estate Consulting, there was a 15 percent increase in new home permits from 2017 to 2018, while median prices for new and existing homes are at pre-recession levels. In addition to single-family homes, the demand for apartments has spurred new construction, with more than 26,000 multifamily permits issued since 2016.

We are seeing the housing sector propel growth in the commercial real estate space. The rise in building means more direct construction jobs and also activity for suppliers and for retailers who sell appliances and home goods. This drives a higher demand for industrial space, as well as an increased demand for grocery-anchored centers and other retail services.

Alliance Bank of Arizona is a consistent and important source of commercial real estate financing for local, regional and national developers and investors.

We’re helping clients with construction and bridge loans for a range of projects, including industrial, office, retail, hospitality, senior housing and student housing, as well as subdivisions and master-planned communities.

Alliance Bank of Arizona westernalliancebancorporation.com/ alliance-bank-of-arizona-home Paul D. Engler is EVP and chief real estate officer for Alliance Bank of Arizona, a division of Western Alliance Bank, Member FDIC. He joined Alliance Bank of Arizona in 2013. A native of Iowa, Engler’s career spans almost 30 years of commercial real estate financing and banking experience in Arizona.

Spencer Fane LLP spencerfane.com Andy Federhar serves as office managing partner for Spencer Fane LLP in Phoenix.

He is an active member of Arizona’s legal community; his practice focuses on complex litigation involving real estate, government, telecommunications, procurement and insurance. He is also highly involved in the community, having served on the Arizona Board of Regents, chaired the State Transportation Board, and served as special assistant to former Arizona Governor Bruce Babbitt.

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

Employers Council employerscouncil.org Jennifer Ward, Esq. is the Arizona president of Employers Council, a membership-based organization that helps companies be the employers they want to be. In her role, Ward manages the company’s Arizona office and focuses on expanding its ability to provide Arizona companies with HR consulting, employment law advice, training and other HR support services in a professional, costeffective way.

QUICK AND TO THE POINT

BYTES

Recognition Can Be a Snap Snappy is an innovative employee recognition and incentive platform. It allows companies and managers to send a collection of thoughtful gifts to team members with a click of a button, helping employees feel appreciated and motivated at work. Snappy sources the best products and experiences from leading brands and retailers to be able to offer each recipient a personalized collection of the latest top-rated gifts. To make the process frictionless for managers and employees, Snappy is aligned with human resources partners that include ADP, TriNet, HR Uncubed, BambooHR and Crain’s Best Places to Work. —Hani Goldstein, CEO of Snappy meetsnappy.com

To Better Serve the Hispanic Community, Translation Must Be More than Literal Plexus Worldwide™, a leading direct-seller of health and wellness products worldwide and a company that focuses on health and happiness, recently announced a formal initiative to better serve the diverse Hispanic community in the United States.

Doing much more than just translating literally all materials, Plexus is making sure each release is being uniquely reviewed to ensure the meaning and phrasing is accurate to the intended message. The company recognizes there are many differences based on the norms of various countries of origin, just as there are different geographic norms in parts of the U.S., so the team is careful to appeal to as many people as possible while being as consistent as possible for the ease and understanding of our customers and Ambassadors.

While the company has long had several documents and web pages in both Spanish and English, Plexus made the decision to expand its efforts making the entire Plexus website bilingual, and to making corporate announcements, training materials and product information available in Spanish. The company also began offering new events and opportunities for Spanish speaking audiences in 2018 and many its 700,000 Ambassadors already communicate with customers in their preferred language.

Plexus has long offered some materials in Spanish, but Plexus realized it needed to ensure all its Ambassadors and customers understood how important they are and therefore wanted to remove any language barriers as Ambassadors shared Plexus’s products with their networks. While this is a significant commitment, Plexus felt it important to demonstrate its commitment to the Hispanic community and, as a result, expanded its Hispanic outreach team within the company, hiring several talented individuals to assist Plexus in this commitment.

Plexus has also been in Canada — and, as of April, is now in Australia, too. The company translates its releases to French Canadian, and uses the Queens English for in-country Canada and Australia releases. Plexus is also expanding its website and will be posting releases in multiple languages, based on user preferences.

“As our business expands globally, it becomes increasingly important to communicate wit our customers and Ambassadors in the language they are most comfortable,” says Christopher Pair, president of the operations and international division. “Expanding diverse outreach across multiple platforms is a natural progression that will continue to grow as we launch Plexus in new markets.” —Mike Hunter

Facilitating an InvestorEntrepreneur Fit RateMyInvestor provides a free, secure and vetted review platform that’s data-rich to aid both founders and investors in their decision making. It was founded

by Austin Stofer, who recognized sometimes investors find little research to augment their gut instinct about a company while entrepreneurs encounter similar challenges searching for that ideal venture capitalist.

Built for transparency, RateMyInvestor aims to help investors and founders make smarter investments. The platform provides vetted reviews to ensure content is as helpful and honest as possible, and focuses on the issues faced by founders and investors. —Mike Hunter ratemyinvestor.com

Ops for Giving Back Foster Next-Gen Leadership CariClub helps firms keep their employees fulfilled and attract top talent by providing them with associate board positions across philanthropic organizations. It is a unique online platform, strategically positioned at the intersection of corporate citizenship and professional networking, that helps firms connect with their millennial workforce and provides an avenue to help them attract, retain and develop their next generation of leaders. CariClub does this by giving young professionals access to philanthropic leadership opportunities, specifically associate board positions with well-known nonprofits and foundations. —Mike Hunter cariclub.com

Plexus Worldwide plexusworldwide.com

A new study from Business Roundtable finds that international trade supports 736,700 jobs in Arizona, representing nearly one out of every five jobs in the state. https://t.e2ma.net/click/nk30ib/rzx1s2/veojll

11

MAY 2019

INBUSINESSPHX.COM

QUICK AND TO THE POINT

LOOKING GOOD

Local Standouts Recognized for Achievements and Philanthropy ACHIEVEMENTS

Super Lawyers and Rising Stars Fourteen attorneys in the law firm of Gallagher & Kennedy have been recognized as 2019 Southwest Super Lawyers. Additionally, two attorneys have been named as 2019 Southwest Super Lawyers Rising Stars: Matthew R. Boatman, in the area of Personal Injury Products: Plaintiff; and Hannah Porter, in the area of Civil Litigation: Defense.

Super Lawyers is a rating service of lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement.

Annually, only the top 5 percent of attorneys in Arizona and New Mexico are selected by Southwest Super Lawyers to receive this honor. gknet.com

PHILANTHROPY

Volunteers Crochet Care for Patients In the spirit of National Volunteer Week in April, a group of Cigna volunteers known as “A Common Thread” made and donated 2,479 crocheted caps for patients at Phoenix Children’s Hospital. The group has made and donated more than 15,000 caps to babies in neonatal intensive care units and cancer patients throughout the state in just the last five years.

A Common Thread started the community service project as a result of Cigna’s national partnership with the March of Dimes. The caps provide warmth for babies facing serious health challenges. In addition to the more than 15,000 caps donated in Arizona, the group has also donated 2,500 to NICUs throughout the country for a total of 17,500 caps. cigna.com

Books Benefit Foster Children FirstService Residential, Arizona’s leading HOA management company, recently organized a book drive for Arizona Helping Hands, a local nonprofit organization that provides essentials to boys and girls in foster care. The Emerging Leaders team at FirstService Residential organized the book drive as part of the company’s social purpose initiative aimed to help underserved people in our communities.

FirstService Residential associates and vendor partners participated in the month-long book drive, collecting and donating a total of 900 books to Arizona Helping Hands. These books will help ease the transition for foster children entering new homes throughout the state of Arizona. During FirstService Residential Arizona’s all-company annual meeting held on March 8, 2019, employees made custom bookmarks to include with the book donations. fsresidential.com/arizona

MAY 2019

12

INBUSINESSPHX.COM

Smart Email Emigrates from New Zealand “When we decided to expand our business to the U.S., coming to the Phoenix metro area was a no-brainer,” says Nick Lissette, founder, of Black Pearl Mail’s move from New Zealand to Scottsdale. “Arizona is a very business-friendly state with amazing talent; plus, it’s an amazing place to live. The people who make up the business and tech scene in the Valley have the grit, determination and resourcefulness needed for a fast-growth company like Black Pearl to thrive. The community here is second to none, and we’re thrilled to be a part of it.”

A provider that transforms email into a smart digital marketing tool, Black Pearl finalized this April the move of its headquarters from Wellington, New Zealand, to Scottsdale. It is hiring and expanding in the Valley while also growing its R&D hub in Wellington.

The company is backed by the venture capital fund AZ Crown, and Cherryl Pressley, Black Pearl’s CEO, says, “The move of our headquarters to Scottsdale has opened up numerous possibilities for the company and allowed us to work with wonderful partners such as AZ Crown.”

“Black Pearl Mail is not just another email platform; it’s a powerful marketing analytics

technology that transforms email from simply a ‘dumb’ tool with minimal actionable data insights into a ‘smart’ hub that delivers optimal experiences for an organization’s customers,” says Tim Crown, principal of AZ Crown Investments and chairman of the board of Black Pearl Mail. “This technology helps customers maximize email use as a digital marketing channel, something they use every day but hasn’t historically yielded much in the way of marketing results.” —Mike Hunter Black Pearl Mail blackpearlmail.com

A/C Rising Air conditioning in the Valley of the Sun is hardly an optional expense for workplaces any more so than for homes, and businesses may feel a financial impact of a new regulation from the EPA scheduled to go into effect next January 1.

Recognizing that hydrochlorofluorocarbon-22, also known as R-22, depletes the Earth’s protective ozone layer, the Environmental Protection Agency is phasing out its use, making its import and production illegal. Consumers will be able to use it from existing supplies, but those supplies will necessarily become more limited and expensive.

Aiming to enable businesses to prepare for the potential expense, Mike Donley, president of Donley Service Center — a 43-year-old business whose awards include the Better Business Bureau Ethics Award — says owners of older air conditioning units that rely on R-22 have three options: use alternative

refrigerants that involve a blend of different types, which requires technicians trained in this method; install a potentially pricey conversion refrigerant; or buy a new unit. He’s found the average unit in Arizona lasts 12 to 15 years.

Donley, noting that he’s seen companies use scare tactics to pressure people into buying new A/C units, says, “Consumers should be cautious about ads that imply you must have a new A/C unit” and advises, “You need to weigh the costs of repairing and replacing.”

—Mike Hunter Donley Service Center donleyservice.com

A study by Clutch, which provides a data-driven field guide for B2B buying and hiring decisions, found that 51 percent of small businesses plan to hire in 2019, and 23 percent plan to fire or lay off employees. The most popular positions to hire for are sales and marketing (39 percent), customer service (36 percent) and IT (32 percent) positions. clutch.co/hr/recruiting/resources/small-business-hiring-recruitment-2019

METRICS & MEASUREMENTS

Marketers: Don’t Forget the Human Connection Campaign challenge can be deployment vs. outcome

by Bant Breen

For many organizations, the race to master data and harness the power of the marketing technology stack has resulted in the customer and, perhaps, an understanding of human relationships being lost.

In a recent research study from the CMO Council, in partnership with Harte Hanks, 41 percent of respondents acknowledged that focusing on the relationship being built, instead of the campaign being deployed, has been a key challenge. Nearly one-third surveyed for the report “Bringing a Human Voice to Customer Choice” admitted they sometimes forget that their “targets” are human beings.

In the study, we found that doubts about organizational readiness to expand and advance the omni-channel experience through richer personalization is surprisingly high, with 42 percent of respondents indicating they are not prepared to leverage intelligence gathered across listening posts to deliver a better customer experience. Not a single respondent among the 152 senior marketing executives felt they were well prepared to integrate new experiences and new points of intelligence to improve brand engagement.

This is a stunning revelation.

It is quite apparent that developing the human experiences that customers are looking for can feel confusing for the data- and technology-driven marketer of the 21st century. In every point of connection, customers leave small data clues behind that can enrich our current profiles and give brands the insights needed to craft the right combination of message, channel and timing.

As companies adopt data, technology and process, the customer and the very real, human and fragile relationships that marketers have worked so hard to build have been lost, giving way to settling for assumptions about broad personas and an almost obsessive focus on campaign performance.

And, make no mistake, this all matters.

According to a study by the research firm Motista, consumers with an emotional

Quantifying Some Insights and Themes Some specific insights and themes that emerged from the research include: Data is a dilemma. But “big

connection to a brand have a 306 percent higher lifetime value, stay with a brand for an average of 5.1 years vs. 3.4 years, and will recommend brands at a much higher rate (71 percent vs. 45 percent). Another study, by Aberdeen Group, found that companies with extremely strong omni-channel customer engagement retain, on average, 89 percent of their customers, compared to 33 percent for companies with weak omni-channel customer engagement.

That’s not to say that no companies are getting customer experience right.

Chief marketing officers responding to our survey believe brands like Amazon, Google, Apple, Nike and Starbucks are leading the way, looking at omni-channel engagement as a means to guide and inspire customers on a journey, and not just push them forward in a buying process. The survey found that 42 percent of marketers believe these marquee experiential brands are not just developing better relationships, but are more effectively leveraging customer experience as a driver for profitability and growth.

And there is hope for the broader marketing community, too. What came to life most notably in the research was the absolute desire of marketers to go back to their roots as relationship builders, leveraging the “why” behind customer actions and intentions to build lasting dialogues with customers instead of just pushing accounts and targets down a pre-set campaign path.

To truly win the day, marketers must start by taking a step back to the fundamental question of revenue and intent. Yes, we are talking about new technologies and even new concepts, but, fundamentally, the rule is still to generate revenue by getting the right message to the right person at the right time. So, even in this age of technology, data and connectivity, we still must understand what our revenue goals are and then figure out which customers are most likely to drive that revenue and how we plan to measure and define success.

Customers will always tell us what they need. The question is, are we listening?

data” isn’t marketing’s biggest challenge. It is actually the “small data” — the data used to describe the small, specific attributes delivered directly from the customer through, as an example, the Internet of Things.

• Thirty-six percent of respondents believe that small data will be the greatest challenge for their organizations.

We’ve lost the ability to be human, and we can’t blame the machines.

• As previously noted, some 41 percent admit they are overly focused on driving campaigns, forgetting that they are building relationships.

• Nearly 30 percent admit they think of their customers in terms of targets, records and opportunities.

• Interestingly, an equal amount (30 percent) admit

Bant Breen is CEO of Harte Hanks, a global marketing services firm specializing in multichannel marketing solutions. Experts in defining, executing and optimizing the customer journey, Harte Hanks offers end-toend marketing services that include consulting, strategic assessment, data, analytics, digital, social, mobile, print, direct mail and contact center. hartehanks.com

they are also struggling to define and deliver returns from customer experience strategies.

Going small could bring our humanity back. Marketers believe small data will: • Help extract better signals from the noise (45 percent), • Reveal the “why” behind customer actions and behaviors (41 percent), • Help focus on the people behind the data to deliver more human interactions (35 percent) and • Aid in filling key gaps across the customer journey (35 percent).

Source: “Bringing a Human Voice to Customer Choice” report by CMO Council and Harte Hanks

A study by Aberdeen Group found that companies with extremely strong omni-channel customer engagement retain, on average, 89 percent of their customers, compared to 33 percent for companies with weak omni-channel customer engagement.

The Chief Marketing Officer (CMO) Council is dedicated to high-level knowledge exchange, thought leadership and personal relationship building among senior corporate marketing leaders and brand decision-makers across a wide-range of global industries. The CMO Council’s 16,000+ members control more than $600 billion in aggregated annual marketing expenditures and run complex, distributed marketing and sales operations worldwide. cmocouncil.org

13

MAY 2019

INBUSINESSPHX.COM

ENTREPRENEURS & INNOVATORS

True Salt – All-Natural and Unrefined

MAGAZINE

Real Estate

MAY 2019

IN BUSINESS

Spotlight on the Best: 2019 Commer cial

“While working in Mexico, I discovered this amazing salt and felt that it would be a natural substitution for what restaurants and hotels currently use,” says Brian Pierce. Taking that inspiration, he founded True Salt mid last year, bringing to market an all-natural, unrefined sea salt from the Sea of Cortez — salt with nutrients and flavor, without chemicals or additives.

Pierce’s target market is the hospitality industry as well as home chefs, and he worked with professional chefs to develop his product and his brand. This was, he feels, one of the biggest challenges in starting and growing his company.

“Creating a brand from scratch takes a lot of time and energy,” he says, adding, “Trials of the specific grains and getting the chef’s input took some time, but listening to what the market needed has paid off as the brand is very popular.”

True Salt currently offers three distinct salt grains for cooking including Kosher Grain, designed as a foundational ingredient in a texture that is easy to control and sprinkle; Coarse Grain, ideal for salting proteins and vegetables in both prep and finishing stages; and Fine Grain, for brining, salad dressings and everyday cooking.

According to Pierce and co-founder Kelly Egan, True Salt has been growing rapidly. Already a staple in restaurants and hotels throughout the Southwest and Southern California, the company has aligned with the leading health-inspired, clean-

THE HOUSING MARKET

The

Hous Markeing t A window

into our

econom y!

Family Business:

Pass It On

MAY 2019

Want In

• INBUSINESSPHX.COM

THIS ISSUE

Global Chamber Alliance of Arizona Nonprofits

on Marijuana Business?

Networking, Introvert-St yle

$7.95 INBUSINESSPHX.COM

DON’T MISS OUT!

Get a year of In Business Magazine. Subscribe now at inbusinessphx.com

MAY 2019

14

INBUSINESSPHX.COM

living national restaurant chain, True Food Kitchen.

Getting True Salt Co. off the ground also took persistence, a quality Pierce was fully prepared to invest. “I’ve learned that persistence without exception is a must.

“I’ve owned and operated multiple businesses and believe that you have to understand that you’ll hear ‘no’ several times but you have to stick to a plan,” shares Pierce. “It may change, but following a vision takes persistence.” —RaeAnne Marsh True Salt Co. truesaltco.com

Dental Marketplace, Online The first-ever online dental marketplace — and the only alternative to traditional dental insurance — launched its website out of Arizona a year ago, in March 2018. It was founded with the aim of helping consumers save on dental services and procedures, as well as assist dental practices in growing their client base.

“Insurance options have simply become unaffordable for many people, leaving empty chairs in dental offices and suffering dental hygiene for many Americans,” says Dental Genie’s newly appointed CEO, Chris L. Anderson. “This is where Dental Genie will bridge the gap, by offering affordable options for consumers and new patients for dental practices.”

Stepping into a market impacted by rising insurance rates — with many dental practices struggling and a whopping 59 percent of adults opting to forego dental care due to cost — Dental Genie recently finished its seed round raise and is expecting initial revenues to be $1 million. There are currently more than 110 dentists using the platform (in Arizona, California and Utah), with more signing up daily; Dental Genie expects to be nationwide with 10,000 dentists in network by 2021.

“The growth potential is there given the amount of private practices there are versus corporate dental practices, as well as the overall need in affordable dentistry for consumers,” says Anderson. “At minimum, there is potentially 200 dentists per region that could join the network, and, as expansion picks

up alongside investor funding, I can see us easily meeting our goals even earlier than expected.”

Similar to Airbnb for travel or Uber for transportation, Dental Genie hopes to put the power in the hands of the consumer when it comes to finding affordable dental care — an alternative to the traditional means using transparency of reviews, ratings and pricing.

—Mike Hunter Dental Genie dentalgenie.com

Further ‘Refining’ Salt: Adding to its current three all-natural and unrefined products, True Salt is planning to launch a Cocktail Salt, designed specifically for bars and beverages, and a Flake Salt, a hand-harvested artisanal finishing salt.

Put healthier on your horizon.

Every Arizona business deserves nationwide coverage.

As Arizona’s market leader in health plans,* we offer proven options, innovative programs and coverage so expansive we’ve got your back from Phoenix, Arizona to Phoenix, Maryland.

Broad coverage. Healthier choice.

Explore your health plan options today. Visit uhc.com/azbusiness or call your broker to learn more.

*Source: HealthLeaders InterStudy [DRG] data supports ASO membership; FI and FEHBP based on statutory filings and SHCEs. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan coverage provided by or through UnitedHealthcare of Arizona, Inc. Facebook.com/UnitedHealthcare

Twitter.com/UHC

YouTube.com/UnitedHealthcare

MT-1180806 8/18 ©2018 United HealthCare Services, Inc. 18-9203

PROPERTY, GROWTH AND LOCATION

Phoenix Rising: Driving Forces Behind One of America’s Fastest Growing Cities According to the U.S. Census Bureau in 2017, Phoenix edged Philadelphia out to become the fifth biggest city in the United States, with an estimated population of over 1.61 million, and is forecasted to rank at least fourth by 2020. It’s worth looking at how a flourishing flexible office market supports widespread growth.

BILL GATES TO INVEST IN THE NATION’S NEXT SMART CITY IN ARIZONA Entrepreneur and American business magnate, Bill Gates is set to invest $80 million in what he calls the next “smart city,” which is also popular with several major players in the autonomous vehicle industry — Waymo, Uber and Intel.

The U.S. Census Bureau expects Phoenix to provide some of the largest growth nationally over the next 10 years, with an extra 2.2 million people expected to move into the area, and entrepreneur Bill Gates investing $80 million in what he calls the next “smart city.”

Subscribe at bit.ly/in-business-phx

The low occurrence of weather disruptions and earthquakes, as well as the location of the greater metropolitan area itself, make Phoenix idea for companies looking to create manufacturing hubs and disruption centers. And the lower cost of living and lack of congestion mean that, for many families, it’s ideal for those looking to escape the rising living costs associated with cities that are highly populated, such as LA and San Diego.

The widespread expansion has been supported by an equally flourishing flexible office market, providing hybrid space, serviced offices and co-working spaces in Phoenix. The Instant Group tracks 51 centers in Phoenix and a further 28 in the wider area.

The Instant Group has seen demand grow by more than 150 percent over the last 12 months. With rates for flexible space ranging from $388 to $640, the competitive pricing means we expect this market to remain buoyant going forward. —Gethin Davies, senior director at The Instant Group (www.instantoffices.com), a workspace innovation company, whose listings platform Instant Offices (www.instantoffices.com) hosts more than 12,000 flexible workspace centers around the world

GET REAL

Taylor Morrison Expands in Southeast Valley

Arizona Center Transforms into Urban-Contemporary Center

Taylor Morrison, a leading

Arizona Center, Phoenix’s original

national builder and

downtown entertainment destination,

developer, is expanding in

located at Third Street and Van Buren,

the Southeast Valley with

recently completed construction on its

the grand opening of Bellaza

$25 million makeover, which includes

II in Chandler. The intimate

new creative office space, outdoor work

community of Bellaza II will offer 38 home sites and a

stations, shopping, entertainment and casual dining. Complementing the

selection of three large, single-story floor plans ranging in

new modern aesthetics is a new logo, website and brand identity.

size from approximately 2,911 to 3,509 square feet with up to 5 bedrooms, 3.5 baths and 3-car garages.

Floor plans will offer a variety of elevations, with a selection of Andalusian, Old World and Rural Mediterranean styles available — two with options for a multi-generational

16

INBUSINESSPHX.COM

Among the numerous improvements to the one million-square-foot, multi-use center are opening up the property to surrounding streets so as to create a more integrated downtown experience, outdoor furnishings and lounge areas, and new landscape and water features.

In addition to the completed property renovations, the first upscale

suite for, for instance, an older teen or a college student who

select-service boutique hotel in downtown Phoenix, AC Hotel by

is residing at home, or a guest suite for friends or relatives.

Marriott, will break ground next month and is scheduled to be completed

Residents of Bellaza II will enjoy close proximity to area

in the third quarter of 2020. Following the groundbreaking of the hotel

shopping, dining and entertainment, including San Tan Mall

will also be the beginning of construction on a new 31-story residential

and San Tan Marketplace, as well as easy access at Loop 202.

tower, Palm Tower. arizonacenter.com.

http://bit.ly/bellaza-ii

MAY 2019

BY MIKE HUNTER

Photos courtesy of Taylor Morrison, Arizona Center (bottom l to r)

IN BUSINESS IS ON APPLE NEWS

Successfully establishing itself as an industrial base, the Greater Phoenix area continues to attract companies such as Apple, Intel, Geico and Charles Schwab. It has also become a new healthcare services and biosciences hub; jobs in this industry have been growing at three times the national average since 2002.

Large business are not the only ones increasingly making Phoenix and the wider state of Arizona their home. In 2018, 121 Arizona-based businesses made the 2018 Inc.5000 list, which highlights the fastest-growing companies in the U.S.

DEMAND FOR FLEXIBLE WORKSPACE IN PHOENIX UP BY 150%

KEY GROWTH DRIVERS

THE TWO KEY REASONS FOR GROWTH IN PHOENIX

BUSINESS EXPANSION

YOUR BENEFIT IN BUSINESS

WELL WELL WELL

Small Businesses Gain the Buying Power of Big Corporations in Healthcare Benefits CarynHealth, the small-business association health plan brand of Association Health Plans of America, LLC, offers an “association in the box,” the next-generation approach to the small employer healthcare marketplace. AHPA was formed to meet the breakthrough opportunity provided by the Association Health Plan regulation recently put forth by the U.S. Department of Labor allowing small businesses to group together for health benefits. AHPA expects price improvement over existing plans, saving small businesses up to 15 percent. This new opportunity could positively affect 28 million small businesses across the United States.

AHPA is launching its initial health plans in two states, Georgia and Arizona, under its CarynHealth brand during the second quarter. CarynHealth selected HSBSuite™ from HSBlox to power this program. HSBSuite’s distributed ledger technology (“DLT” aka “blockchain”) smart contract-enabled solutions bring automation, transparency and real-time permissioned disclosure of data to the healthcare benefit ecosystem. carynhealth.com

DoL Offers New Tool to Help Employers Understand Mental Health Issues The U.S. Department of Labor has launched a new resource that helps employers better understand mental health issues, and provides valuable information and guidance for employers on strategies for recruiting, hiring, retaining, and advancing people with disabilities in the workplace.

Created in coordination with the Department’s Office of Disability Employment Policy (ODEP) and its Employer Assistance and Resource Network on Disability Inclusion (EARN), the Mental Health Toolkit is an online gateway to background, tools, and resources for employers. The Mental Health Toolkit also provides summaries of research on workplace mental health, descriptions of mentalhealth initiatives implemented by companies of varying sizes and industries, and links to readyto-use resources employers can use to start their own. askearn.org/mentalhealth

MAY 2019

18

INBUSINESSPHX.COM

Why Hospitals Must Seek Scale Each day seems to bring a new outcry that hospitals are attempting to get bigger to raise prices. A recent article, for example, said that hospitals are “behemoths” that are “throwing their weight around”… and have “essentially banished competition and raised prices for hospital admissions.”

Reading these articles, you would think it was 1985, rather than closing in on 2020.

The healthcare environment these articles describe no longer exists. In 1985, hospitals competed with the hospital across town for inpatients. Today, hospitals are struggling to hold onto large chunks of their outpatient business in the face of new competitors that have scale and technological knowledge never before seen in healthcare.

UnitedHealth/Optum and CVS Health/Aetna aim to unbolt outpatient business from legacy hospitals. Amazon, Apple and Google are investing heavily in healthcare from numerous angles, looking for the most effective entry points.

Hospitals are doing what any company would in a highly disruptive environment: They are trying to gain the financial and intellectual resources to compete in a new world.

Hospitals are making this transition in the face of a difficult financial reality. The Moody’s 2019 outlook shows revenue growth for hospitals will continue to decline under pressure from weak inpatient volume and low reimbursement.

Meanwhile, expenses continue to grow faster than revenue. This puts hospitals in an extremely difficult economic and competitive position — the status quo simply is not an option.

The normal response of any company in any industry would be to seek scale to meet this different level of competition and adjust to a new business model. That is exactly what is happening among hospitals.

A recent Crain’s Chicago Business article states the inevitable: “The news that Walgreens is in preliminary talks to link up with Humana

showcases just how critical it has become for healthcare players of all stripes — from pharmacies to hospitals — to bulk up ….” Of course.

“Bulking up” is the logical response.

Growing scale will help ensure that America’s hospitals can keep pace — that they can continue to build on their deep community connections, expertise treating the full range of conditions, and history of serving our most vulnerable populations.

Pricing is of minor consequence. It is immaterial to competitive position. Raising prices would not have helped Borders compete against Amazon, or Blockbuster compete against Netflix, and it won’t help hospitals compete against healthcare’s new entrants. UnitedHealth’s revenue grew 12 percent in the third quarter of 2018, compared to 12 months prior. Moody’s projects 3 to 4 percent mean revenue growth among hospitals in 2019. New competitors like UnitedHealth and CVS Health/Aetna are among the largest companies in the country. The largest hospital systems are 10 times smaller.

Scale will be critical, but it is not an end in itself.

Scale is a means to get the best intellectual capital, to tap information about a vast group of people, and to test and scale new ideas. A recent New Yorker article described scale at Google as “the beginning of a feedback loop — bigness would be the source of Google’s intelligence; intelligence the source of its wealth; and wealth the source of its growth.”

The competitors that hospitals face are not just large; they are among the smartest organizations on the planet. These companies draw on huge amounts of data, apply sophisticated analytics, and have the capabilities to develop radically new tech-enabled care and digital connections. This is the state of play today. Scale is the platform that will allow hospitals to acquire the resources — such as more working and intellectual capital, and significant digital capabilities — to compete in this new healthcare marketplace.

—Ken Kaufman, chair of Kaufman Hall (www.kaufmanhall.com), a management consulting and software company

“By some estimates, one in five American adults experiences a mental health condition each year, and work plays an important role in their wellness,” says Deputy Assistant Secretary of Labor for Disability Employment Policy Jennifer Sheehy.

INNOVATIONS FOR BUSINESS

HR Teams Use Next-Gen Technologies to Win the Talent War

TECH NOTES

Fast-Food Giant Sees Potential in Decision Logic Technology The recent announcement that McDonald’s is spending more than $300 million to acquire Dynamic Yield Ltd., a tech company that is on the cutting-edge of “decision-logic” technology, has led some folks to wonder why a company like McDonald’s would want to sink such massive funding into a tech company.

“Chains like McDonald’s have been acquiring intellectual property and/or technology for years,” says Karl Volkman, tech expert and CTO of SRV Network, Inc. “In doing so, they are able to take this technology and apply it to improving their own bottom line. For example, in 2016, Subway acquired Avanti Commerce, a Canadian e-commerce company, in order to improve their own digital strategy and encourage customers to order Subway from their app. It was a move which proved very fruitful.”

In McDonald’s case, Volkman says the Dynamic Yield acquisition could forever change the way we look at menus, at least when it comes to fast-food restaurants. “With decision logic technology, the McDonald’s menu will be able to customize itself based on a number of different factors. For example, if it’s a cold day, the menu will respond by pushing warm offerings, like coffee, or if it’s hot out, it will tempt you with McFlurries. In essence, it is a ‘smart’ menu, a menu that can evolve and expand based on the customer and its environment itself.”

Decision logic technology can also circumvent human error and cut down drastically on restaurant waste. “With this technology, McDonald’s is going to know its customers better than ever before,” Volkman says. “Just like Netflix or Amazon starts to suggest you programs, books or products based on your past purchases and watched programs, the fast-food giant will be able to apply this same technology into making sure that restaurants are stocked with what customers really want — and only what they want.” —srvnetwork.com

MAY 2019

20

INBUSINESSPHX.COM

Artificial Intelligence is currently revolutionizing human resources. Although seemingly contradictory, AI automates repetitive tasks and allows managers to focus on what really matters — the people. AI’s emergence in HR is bringing the human element back to human resources, as workers can now spend more time on actually dealing with people (instead of tedious tasks that can be automated).

Companies that have taken advantage of AI have achieved greater success in sourcing and acquiring candidates. While some recruiters are concerned that AI is replacing them, the recruiters enjoying the most success are working alongside AI. Now, in order to win the war on candidate sourcing and acquisition, it is critical for recruiters to take a new approach to AI or risk losing top candidates to their competitors.

AUTOMATE THE MONOTONOUS ADMINISTRATIVE TASKS

A recent survey found that 72 percent of HR managers would welcome sourcing automation to increase their efficiency, and believe 100 percent of candidate sourcing can be automated.

Recruiters need look no further than AI software.

By incorporating AI into candidate sourcing, HR professionals have more time to spend on interpersonal tasks. The average recruiter spends 13 hours weekly sourcing candidates for a single role. With AI, managers can source candidates, schedule interviews and review candidates automatically using auto-generated coding. AI eliminates the time-consuming administrative tasks and gives HR managers the freedom to focus on the human elements of the job.

AI FINDS, SCREENS AND COMMUNICATES WITH CANDIDATES

AI-supported chatbots work around the clock to communicate with qualified candidates. Equipped with natural language processing, responses are automatic and easy to understand. Chatbots communicate through email or SMS text, making it easy for candidates to communicate with the HR managers, no matter the time or place.

The traditional hiring process is simply not effective or efficient enough to attract candidates.

Chatbots can automate the screening process and perform quick background checks, accelerating

IN BUSINESS IS ON APPLE NEWS Subscribe at bit.ly/in-business-phx

the hiring process. AI-driven candidate sourcing reduces the cost per screen by 75 percent, and also reduces the turnover rate by 35 percent.

AI ELIMINATES BIASES

Fifty-seven percent of recruiters view implicit bias as a significant problem facing the American workforce. Hiring managers are more likely to hire applicants with whom they have more in common, or favor the better-dressed candidates. While these factors are no implication of a candidate’s ability to perform, they do factor into the hiring process.

Researchers noticed that even when employers try to be inclusive, these biases still make their way into job descriptions. AI’s algorithms are designed to identify and remove these biases. Using AI to source candidates levels the playing field, and opens the door to qualified candidates who may have been screened out due to any implicit biases. Now, HR managers have access to the largest possible talent pool and, ultimately, acquire the best candidates.

With such useful tools within arm’s reach, it is up to HR managers to rethink their approach to AI and tap into its capabilities.

AI IS THE KEY INGREDIENT TO SUCCESS

Today, 56 percent of businesses are working to incorporate AI into their HR programs. HR professionals are asked to do more than ever at an impossibly fast pace. With AI rapidly emerging as a focal point in candidate sourcing, HR managers will increasingly incorporate AI into their sourcing process to keep pace with the companies already doing so.

In the future of work, it will become increasingly important to add an AI component into any HR strategy. The war on candidate sourcing and acquisition is well underway, and it’s important to stay up to date on the latest technology that can improve a company’s hiring process from start to finish.

—Komal Dangi, CEO of global IT staffing product VeriKlick (www.veriklick.com)

Your local Phoenix commercial banking team.

Local expertise to help Phoenix businesses prosper.

BMO Harris Commercial Bank is in the Phoenix region, with a banking team that has deep local roots and expertise in a range of industries. Combined with our decades working in Arizona, and supported by strong cross-border capabilities, we’re uniquely positioned to help Phoenix companies uncover more possibilities here at home and all the places you do business.

Brian Harbin 602-730-7562 brian.harbin@bmo.com bmoharris.com/commercial

Banking products and services subject to bank and credit approval.

BMO Harris Commercial Bank is a trade name used by BMO Harris Bank N.A. Member FDIC

LAW MATTERS TO BUSINESS

The Marijuana Proposition Looking to get in on a smokin’ economic opportunity?

by Alejandro Pérez

MAGAZINE

Real Estate

MAY 2019

IN BUSINESS

Spotlight on the Best: 2019 Commer cial

THE HOUSING MARKET

Th Ho e

us Markeing t A window

into our

econom y!

Family Business:

Pass It On

MAY 2019

Want In

• INBUSINESSPHX.COM

THIS ISSUE

Global Chamber Alliance of Arizona Nonprofits

on Marijuana Business?

Networking, Introvert-St yle

$7.95 INBUSINESSPHX.COM

DON’T MISS OUT!

Get a year of In Business Magazine. Subscribe now at inbusinessphx.com

Alejandro Pérez is the founder and manager of the Law Firm of Alejandro Pérez. Pérez represents and advises clients in labor and employment and business matters. He also regularly serves as a legal commentator for various media outlets. alejandroperezlaw.com

MAY 2019

22

INBUSINESSPHX.COM

Marijuana is a booming business and all eyes are on Arizona.

With an estimated $400 million in sales for 2018, medical marijuana has proven a lucrative business opportunity. Adding to the excitement, Arizona is gearing up to issue industrial hemp licenses under the Industrial Hemp Program, which is scheduled to go live this summer. Those seeking to enter these markets should be aware of the legal issues involved in Arizona’s current cannabis landscape.

The first business opportunity in the current Arizona marijuana landscape is medical marijuana.

The second opportunity arises out of the Industrial Hemp Program, recently signed into law by Governor Ducey. The new program is set to begin accepting applications for licenses this summer. Industrial hemp is expected to create a huge impact in the marijuana business. Growers, harvesters, transporters and processors may apply for a license to grow and sell hemp.

Industrial hemp is part of the cannabis plant that grows marijuana flowers. The difference is, industrial hemp plants lack the psychoactive substance that produces a “high.”

Generally, it is used in textile, foods, cosmetic products and the very popular CBD oil.

These exciting business ventures, while attractive to entrepreneurs, are fraught with obstacles and, perhaps even scarier, charter unknown territory. Individuals and businesses seeking to enter the market for either program should be aware of some of the difficulties and challenges that may lie ahead for them.

The Arizona Department of Health Services, which issues medical marijuana licenses, has issued all available licenses.

That means there are currently no new licenses for the taking.

The lack of licenses, coupled with soaring sales, has caused the price required to enter the market to rise drastically. With 130 licensed dispensaries on the map, smaller entrepreneurs will find themselves competing with national investment companies that have already started pumping millions of dollars into the market.

Additionally, medical marijuana licenses present serious restrictions that require constant management and keen oversight. One such restriction is the non-transferability and non-assignability of licenses. In other words, each of Arizona’s 130 dispensaries is tasked with growing its own marijuana.

Current regulations prohibit the dispensaries from transferring any excess product to another dispensary or purchasing product from another dispensary to make up for any inability to meet demand. Such regulations require very precise planning to control the bottom line.

Arizona also limits licensing to not-for-profit entities.

Arizona Administrative Regulations requires its licensees to submit annual financial statements and audit reports to prove their nonprofit status. The regulations also allow the health department to conduct random audits to ensure compliance. Of course, for-profit entities may manage nonprofit dispensaries.

Such for-profit management companies are not regulated by

the health department. However, such arrangements should be closely monitored for compliance, and for-profit management companies should be paid a fee and avoid simply taking the profits out of the dispensaries for their own purposes.

Another, and probably one of the most frustrating, legal hurdles presented in the marijuana and hemp world is the conflict between state and federal law. Currently, federal law prohibits the use of any kind of marijuana. That said, state court decisions interpreting Arizona laws provide a sense of uncertainty. One of the most controversial court decisions issued by Arizona’s appellate court occurred in State v. Jones.

In Jones, Arizona’s appellate court upheld a conviction for possession of a marijuana extract. The decision put into question whether marijuana extracts were covered by the Arizona Medical Marijuana Act. Marijuana extracts, which include edibles, make up a large part of sales. Their potential illegality caused an uproar in the medical marijuana market, which has been seemingly quelled by the state’s failure to provide guidance on the court’s decision. The Arizona Supreme Court accepted review of the appellate court’s decision. Oral arguments for Jones were held on March 19, 2019, to a packed house. A decision should be forthcoming and many are hopeful the supreme court will overturn the decision.

Much of the rules pertaining to industrial hemp are still unavailable. The Arizona Department of Agriculture has until the end of May to roll out the rules and licensing programs, and develop the necessary infrastructure.

Challenges aside, medical marijuana has proven itself a lucrative and attractive business. Sales have risen exponentially each year since its legalization. Industrial hemp adds another business expectancy apart from medical marijuana that will likely prove highly profitable.

To add to the all the reefer madness, recent polls show there is an ever-greater likelihood recreational use may be legalized as soon as the 2020 election. If this were to occur, the opportunities would expand greatly and the landscape will shift dramatically. Until then, eyes remain on Arizona.

Arizona Is Going up in Smoke! Medical marijuana and the new Industrial Hemp Program are creating interesting and lucrative business opportunities. These opportunities require keen oversight and management to ensure compliance but are worth exploring.

Ready to save up to 90% on lighting upgrades?

APS has a rebate for that.

Energy-saving upgrades are a great way to help reduce your operating costs, and thanks to our energy efficiency program, they’ve never been more affordable.

Express Solutions rebates cover up to 90% of the cost of lighting and refrigeration upgrades—and many projects pay for themselves in as little as one year.

Find rebates for energy-saving upgrades today at aps.com/BetterBottomLine or call (866) 333-4735.

Program funded by APS customers and approved by the Arizona Corporation Commission.

The

Housing Market

A window into our economy!

by RaeAnne Marsh

Taking housing as a barometer of the economy, Metro Phoenix is looking pretty good. Multifamily developments, especially, seem to be sprouting on every block, and one of the biggest complaints heard in development circles is there is a shortage of construction workers — a situation exacerbated by the fact that the construction sector has shown the greatest growth rate (12.7 percent).

“The shortage of construction workers is having an impact on real estate now and resulting in reduced housing starts,” says Don Morrow, senior vice president at NIA Horizon. And of the 8,000 to 9,000 new apartment buildings going up each year in Metro Phoenix, says Charles Steele, JLL managing director, “That is similar to — or maybe even a little less than — what we’ve built in recent years, and we are absorbing all of that new product.” And he adds, “We have actually absorbed more units than we’ve built every year since the recession, so even this high level of new apartment construction is not meeting metro Phoenix’s annual demand.”

A driving force in this growth is the high rate of employment. But Ryan Sarbinoff, vice president and Phoenix regional manager with Marcus & Millichap, describes two trends that are impacting housing: The majority of the population is living paycheck to paycheck and does not have the money for a down payment on a house or a condo. And even among those who do, there is a preference for the flexibility of a six- or 12-month lease.

Low unemployment figures alone don’t account for the increased demand, Sarbinoff points out. “Some people have been out of the workforce so long, they’re no longer in the unemployment numbers — those with disabilities, for instance — but are now able to find employment. They’ve been living with family but are now looking for their own place to live.” This has spiked the demand for class B and C apartments.

Apartments are also reaping the benefit of a dearth of entry-level homes, a situation exacerbated by construction costs and the shortage of labor mentioned above by Morrow. As Sarbinoff points out, proximity to employment centers is important, and developers have to go “sixty to ninety minutes out to find dirt that’s cheap enough — and that’s too far for an employee to commute.”

EMPLOYMENT AND POPULATION GROWTH ON HOUSING

“Fundamentally, employment is the strongest and healthiest creator of demand for new housing,” says Ramey Peru, associate vice president with Colliers International in Arizona. But it’s a mutually supportive relationship, and Morrow notes that the economy is the fuel that propels the real estate

engine-and in particular the residential market — “And right now, as we look at the fuel gauge, the tank is pretty full.” The elements he credits as having the most critical impact housing are job growth and population growth most specifically in-migration, observing, “As jobs are created, the people have come to fill them.”

Morrow cites an article by Rent Café, which reported — from data released by the US Census Bureau — that Maricopa County led all counties in the nation for population growth over the time period from 2012 through 2017 and was the top area in the U.S. for net migration. It’s a trend of “affordable migration,” with people moving from the more expensive metro areas to more affordable second-tier metro areas like Metro Phoenix.

But that very growth of employment and population has impacted the rental rates. “Phoenix tied with Las Vegas as the national leader in rental rate growth,” says Peru. “The flipside of that is we are not as affordable as we have been in the past.”

In fact, Dr. Christopher Thornberg of Beacon Economics, speaking recently at the economic forum presented by Alliance Bank of Arizona, stated, “Largely due to the state’s continued population growth, the housing market continues to advance, with increases in the median home price and a rise in construction permits.” With these economic indicators, Dr. Thornberg projected that Arizona’s economy will continue to grow and add jobs over the next year, with nearly every industry expected to contribute to overall growth.

THE EMPLOYMENT PICTURE

“Large-scale master-planned communities generate significant economic activity,” says Brad Chelton, senior vice president for Brookfield Residential’s Arizona market. A developer and homebuilder, its projects here include the large-scale Eastmark community in Mesa and the master-planned Alamar in Avondale, which broke ground just a month ago. “It starts with tremendous construction expenditures in and around the community and then quickly leads to higher sales and property tax receipts for the local municipality, increased retails sales at local retailers and restaurants and increased school district funding and growth generated by new residents and families,” he

Toll Brothers Single-family development in Queen Creek Toll Brothers, the nation’s leading builder of luxury homes, has launched its “introduction to luxury” new line of home designs priced from the upper $200,000s at The Crossings at Meridian in Queen Creek. This is the first time Toll Brothers has built a community at this price point in Arizona.

“Toll Brothers is known for building estate-sized homes for the high-end of the market. The Crossings at Meridian comes at a much lower price point with the same quality design and craftsmanship of a Toll Brothers home,” says Matthew Trinklein, sales manager at The Crossings at Meridian. “Home buyers in this price range are thrilled, and we’ve learned that there’s extraordinary demand.” bit.ly/crossings-at-meridian

26

MAY 2019

INBUSINESSPHX.COM

Optima Kierland Urban high-rise condos Optima Kierland Center’s first tower, 7120 Optima Kierland, is sold out. Sales began in April 2016 and closed 220 homes over a nine-month period, making it the fastest-selling community in the Valley, with triple the number of sales compared to the local market. Optima’s next condominium tower, 7180 Optima Kierland, began sales earlier this year.

Says Crel Vogel, sales manager at Optima Kierland, “The location is incredibly important to our buyers. The Kierland location is one of the main drivers of the buyers’ purchase, in addition to the elevated amenities and visionary architecture. Optima Kierland is in a desirable neighborhood steps away from the remarkable dining, shopping and nightlife of Kierland Commons and Scottsdale Quarter. It’s a community passionately dedicated to enhancing healthy, balanced and enriched lifestyles.” optimakierland-condos.com

explains. “Ultimately, having a high concentration of predominately collegeeducated residents in a community serves as a competitive advantage for economic and business development within the City and is a very important factor when competing for new employers to locate or expand their business.”

Morrow shared research that showed the Phoenix Metropolitan Statistical Area added 65,000 new jobs to the civilian labor force from March 2017 through March 2018, and 86,800 in calendar year 2018. “We have had sustained job growth for some time now, and the number of people employed in our area is the highest number in history,” he says, noting, “Much of the growth is organic as companies already here continue to expand; however, much of the growth is from California companies relocating to Arizona primarily because it is a less expensive business environment.”

A lot of job growth has been in the tech sector — “We are now sometimes referred to as the ‘Silicon Desert,” Morrow says — with financial services and insurance among other leading industries. But unemployment being at the extremely low 4.5 percent will make it harder to fill new jobs, he observes. “In fact, there is currently a shortage of labor in many areas, including construction, technology and healthcare.”

The Arizona Office of Economic Opportunity released a report in February projecting Arizona will add 165,691 jobs over a two-year period. From the third quarter of 2018 through the second quarter of 2020, Arizona’s employment is expected to increase from 3,015,242 to 3,180,933, representing an annualized growth rate of 2.7 percent — an increase from last year’s projection of 2.4 percent and more evidence of Arizona’s continued acceleration over the last 12 months.

Zeroing in on sectors Morrow identified, the report says Arizona is projected to see the highest job growth rates in construction (5.8 percent) and manufacturing (3.6 percent), with the largest job gains expected in the education and health services and the professional and business services sectors — although gains are projected across all 11 of Arizona’s top industries, according to the Arizona Commerce Authority.

“Phoenix’s employment growth is as diversified as we’ve ever seen.

These are long-term, sustainable jobs in areas like healthcare, technology, insurance and banking that are expected to provide extended growth. That diversification is further incentivizing multifamily investors to come here,”

INBUSINESSPHX.COM

says JLL managing director John Cunningham.

Thornberg supports the observation that the robust labor market has contributed to a much-improved residential real estate market — although not quite at the pre-Subprime Mortgage Crisis levels — with specific figures: Phoenix’s median home price of$258.300 is an increase of 7.3 percent from September 2017 to September 2018; 42.3 percent over the past five years.

Additionally, the increase in home values (and rental rates, which have increased by 7.2 percent in Phoenix) has driven developers to build both single- and multi-family housing units. Although the actual numbers are still low, as discussed at the beginning of this article, single-family building permits issued increased by 12.3 percent statewide during the first 10 months of 2018 compared to the same period a year earlier, while multifamily permits grew by 5.2 percent.

THE DEVELOPMENT PICTURE

“We’re seeing activity all over the Valley,” Peru says. “What started early in the cycle as a big push for infill development has now spilled into the suburbs.” He notes that the demand for housing cannot be satisfied on infill alone because there just aren’t enough developable sites to accommodate the number of people moving and being employed here. “So, if there is a good employment story to be told nearby, the suburbs are seeing plenty of demand for housing.”

Toll Brothers, for instance, has 129 homesites at The Crossings at Meridian, a new community being built in Queen Creek. The location attracted the builder’s attention because it sees Queen Creek as a vibrant growing community that offers recreation with nearby San Tan Mountains, Schnepf Farms, public as well as charter schools that are rated highly, and the convenience of shopping and dining close by. But the homebuilder known for building estate-sized homes for the high-end of the market is now targeting more of the entry-level market. Says Matthew Trinklein, sales manager at The Crossings at Meridian, “The Crossings at Meridian comes at a much lower price point with the same quality design and craftsmanship of a Toll Brothers home,” adding, “We’ve learned that there’s extraordinary demand.” In fact, Bob Flaherty, president of Toll Brothers Arizona, said it was an area Toll Brothers was missing out on, with more than half the singlefamily permits issued last year in metro Phoenix priced between $250,000

MAY 2019

27

and $350,000. “We felt we could serve that market segment with a slightly higher-end product than what they’d been receiving.”

In the northern reaches of the Valley, Camelot Homes, one of Arizona’s oldest family-owned homebuilders, is currently in the pre-sales phase at its latest community — The Villas At Seven Desert Mountain Camelot Homes’ 49 homesites will be part of the 190 luxury homes planned for the Seven Desert Mountain development in the golf community of Desert Mountain. And Union Park at Norterra is being developed in the backyard of the USAA complex near the I-17 and Union Hills, with four homebuilders offering models in the $300,000s to $500,000s — in a new master-planned community that will include a hotel; office space; and a retail corridor of specialty restaurants, shopping and outdoor gathering areas.

“Homebuilders are optimistic and seeing signs of a positive spring selling season,” says Peru. “There was a bit of a lull at the end of 2018, likely due to the increase in interest rates, but the builders we’ve spoken to viewed it as more of a bump in the road than a major cause for concern.” Observing that rates have come back down since then and sales have picked back up, he says, “The biggest challenge we hear about is the ability to build affordable/entry-level homes due to high construction costs. In many submarkets, traditional singlefamily for-sale entry-level housing demand is being filled by ‘single family for rent’ communities.

“From a permitting perspective,” Peru continues, “we’re still showing strong growth year over year, but well within sustainable long-term parameters and in line with employment and population growth.”

There is also strong demand from apartment and “single family for rent” developers looking to build in the Phoenix Metro, Peru says.

“When we look at a trailing 12-month number for multifamily building permits, it appears we peaked in April of 2017 and have receded back to a number more in line with our 20-year average. The market continues to absorb the newly constructed units, so vacancy and rental growth are still positives.”

INVESTMENT INTEREST

Investor interest is very strong in the single family rental market, and a recent study of 117 cities conducted by Smart Asset found three Phoenix area cities to be ranked in the top 10. There are Mesa, ranked second; Glendale, fifth; and Phoenix, seventh.

What’s driving the market is investor demand, according to JLL’s Cunningham. “There is a tremendous amount of capital available to buyers, and they want to deploy it in the Phoenix multifamily sector.” This can be attributed, he says, in large part to the Valley’s economic health, which ranks high on every metric. “From a jobs perspective, in particular, we are in solid growth mode, with Phoenix adding 81,000 jobs last year. To my knowledge, that is a record high. This fuels the demand for apartments and keeps Phoenix on the top of everyone’s list. There is no reason not to invest in Phoenix right now.”

In fact, Cunningham says, “Phoenix is so attractive from an economic, demographic and quality-of-life perspective that every multifamily asset class here is desirable for investors.

28

MAY 2019

“If I had to pick one asset class over the other,” Cunningham continues, “it would probably be value-add because it allows investors to purchase a property, improve it with renovations and increase cash flow and value. We don’t expect investor appetite for this, or any other, multifamily product type to slow for some time.”

“Investors are seeing improved opportunities with well-positioned buildings that can be repositioned or upgraded — older, vintage apartments that now warrant higher occupancy. Investors can get a rent premium on those spaces,” says Marcus & Millichap’s Sarbinoff.

HOUSING WITH A SIDE OF …

“There has been a strong push for infill development/redevelopment in both residential and retail,” Peru says. Much of the residential development has been razing underutilized parcels of land or functionally obsolete buildings and redeveloping them as housing communities. On the retail side, there has been a large number of adaptive re-use projects that make creative use of older buildings. “‘Walkability’ is not just for infill, though; there are now several suburban downtowns with dense clusters of restaurants and entertainment venues that allow residents to capture that experience.”

Nor is all development aimed at the lower end of the economic spectrum. The Palmeraie, straddling the border at Scottsdale and Paradise Valley, is in a prime central location. The residential and resort component of the community, which features The Ritz-Carlton, Paradise Valley, is well underway with construction and is expected to open in the spring of next year. At the heart of the community is a 215-room Ritz-Carlton hotel that will be surrounded by 81 singlelevel Ritz-Carlton Residences Villas, priced from the mid-$1 million and ranging in size from 1,700 to 4,800 square feet, and 39 singlefamily Ritz-Carlton Residences Estate Homes, priced from the low $5 millions and ranging in size from 5,500 to 12,000 square feet. Along with this, and expected to open by the end of next year, is a 30-acre destination being touted as one of the most desired, experiential shopping and dining destinations in North America that will bring together the world’s global leaders in fashion and culinary.

Also attracting a lot of attention is RED Development’s Block 23 in Downtown Phoenix, with a 330-apartment tower from StreetLights Residential adjacent to a 230,000-square-foot office building with ground-floor restaurants and retail.

“Housing as part of mixed-use development can be viewed two different ways, horizontal and vertical mixed-use,” says Peru.

“Horizontal mixed-use, where residential is built adjacent to complementary uses as part of an overall master plan, has always been desirable and will continue to be. Vertical mixed-use, where there is a complementary use within the same building (like ground floor retail in an apartment building), only works in certain locations, typically with a high walkability score.

“In somewhat of a reverse mixed-use scenario, we are seeing interest from asset owners and residential developers in redeveloping portions of vacant shopping centers as higher density housing,” Peru says, noting, “It’s a great way to boost traffic for the remaining retailers in some of these centers that are larger than what the current retail market can support.”

INBUSINESSPHX.COM

HOT SPOTS

The correlation between the economy, employment and home ownership doesn’t pencil out the way it used to, and multifamily apartments is still dominating the housing market.

In multifamily, the East Valley has been the area delivering the majority of the units, according to Morrow, with 2019 to represent 55 percent of all new multifamily inventory.

Steele points to downtown Phoenix as an area experiencing an unprecedented amount of multifamily growth, noting there are more multifamily units under construction now than in the history of the city.

“This is especially true for Class A high-rise projects, which is not new to downtown but is new at this high level of construction,” he says. “Much of this activity is being driven by the rising number of students attending Arizona State University’s downtown campus and wanting to live downtown for convenience and as a lifestyle opportunity. As a result, we’re also seeing more demand for restaurants and bars and will soon have downtown’s first full-service grocery store — a Fry’s Food Store being built as part of the Block 23 office building in CityScape.”

Significant new multifamily construction activity is now peppering Phoenix’s central corridor, Morrow points out. This year, nearly a quarter of all new units (24 percent) will be in this area. The location-location-location factors for this popularity are the light rail, ASU’s downtown campus and many new non-residential projects — and, as discussed previously, the millennials’ preference for an urban lifestyle.

“North Tempe is another market experiencing significant growth, again a direct correlation to jobs and student demand from Arizona State University.

Here, though, new construction activity is much broader — everything from conventional multihousing to student and senior housing,” Steele says.

Observing that cost and demographic trends are pushing more renters into the multifamily market than ever before, Steele says, “We expect this to continue as the price of single family homes keeps rising.” He notes again the proven shift among millennials to rent versus own, “particularly in projects that are near points of transit. They want to be able to access their places of employment easily and like areas that score high on a walkability scale to nearby dining, shopping and entertainment.

“That Phoenix can provide this demonstrates our continued commitment to become a first-class city,” Steele says.

Alliance Bank of Arizona http://bitly.com/alliancebank Arizona Office of Economic Opportunity oeo.az.gov Beacon Economics beaconecon.com Brookfield Residential brookfieldresidential.com Camelot Homes camelothomes.com Colliers International colliers.com/en/United-States/Cities/Phoenix JLL us.jll.com Marcus & Millichap marcusmillichap.com NAI Horizon naihorizon.com RED Development reddevelopment.com Toll Brothers tollbrothers.com

Brookfield Residential Master-planned community in Avondale Developer Brookfield Residential (Arizona) LLC broke ground on its next master-planned community in Avondale, Arizona, on Thursday, April 4, 2019. “Brookfield Residential looks for opportunities to build communities located in close proximity to good schools and strong employment centers, with convenient access to transportation corridors,” says Brad Chelton, senior vice president of Brookfield Residential’s Arizona market. “Eastmark currently enjoys all of these characteristics, which is why it has been so successful over the last five years.

Alamar in Avondale is quickly moving in that same direction, and we expect that we will experience the same success as the south Avondale submarket grows into a destination community much the same way that east Mesa has.”

Noting that the developer expects its builders at Alamar to offer homes priced from the low to mid $200s to the mid to high $300s in a variety of styles, sizes and floorplans, Chelton continues, “We believe offering premium housing choices along the entire spectrum of price ranges allows economic development within a city to remain balanced and strong. By design, master-planned communities create value by offering a wide range of amenities and lifestyle components which have always equated to a premium within the market in terms of home values, appreciation and pricing. Providing housing choices for executives, growing families as well as young adults provides a diverse base of employees and customers that are necessary for a healthy economy.” brookfieldresidential.com

INBUSINESSPHX.COM

MAY 2019

29

DECISIONS THAT MATTER

Henry Hutcheson, Certified Management Consultant®, Certified Family Business Advisor, is the founder and president of Family Business USA and specializes in helping family businesses and privately held businesses ensure profitability, prepare for transition, secure wealth and strengthen family relationships. He has 25 years of experience in business management and global family business consulting across a range of industries.

A veteran of a family business himself, Hutcheson was also an international manager for IBM, UPS and Sumitomo Electric. He is a frequent corporate and university speaker, and has been a family business columnist and writer for the News & Observer and Family Business Magazine, among others. His new book is Dirty Little Secrets of Family Business (3rd edition): Ensuring Success from One Generation to the Next. familybusinessusa.com

MAY 2019

30

INBUSINESSPHX.COM

Successful Succession in a Family Business

Seven ways to groom your child for the family business

by Henry Hutcheson

It’s wonderful to be able to work with your children and imagine them taking the reins some day. But it requires a careful strategy. Seventy percent of all businesses are family businesses in the United States, but only two thirds survive past the first generation. Why? There’s a myth surrounding family businesses that sets them up for failure.

If you want your children to be able to successfully follow in your footsteps, rely on more than just birthright. Set them up for succession by understanding just who they are and what they are capable of. In turn, your children need to learn as much about your business and the industry as they can. Outside experience is vital; it teaches them what their strengths are and how the industry works from a broader perspective than if they stayed under your wing. It’s also important to create stretch goals with your children and encourage them to not only to work with mentors, but also to seek outside training.

Here are seven key steps to successfully bring your children into the business and prepare them to take over: Take advantage of summer breaks. Summer breaks are great times to expose your children to the family business.

Bring them in as regular summer hires and let them get to know some of the employees and gain an understanding of how the business works. As they begin to gauge how interested they are in the business, you can begin to evaluate whether or not they are cut out for it. Many family business owners go astray by giving their kids more responsibility than

Seventy percent of all businesses are family businesses in the United States, but only two thirds survive past the first generation.

they should have, or by shielding them from hard work. And don’t encourage a sense of entitlement; this is the perfect time for them to realize the base elements of the business, and realize the position doesn’t come from blood but from hard work.

Don’t bring them in right after graduation. As a new college graduate, your child’s first instinct may be to return to what’s familiar by joining the family business. It’s a mistake. Graduates know they can get hired, likely have some experience with the business, and avoid the nightmare of looking for a job by working for the family business — but they lose a key growth opportunity. They need to find out what they can do and who they are. If you let them tuck back under your wing right away, that won’t happen. Send them off into the world to get some experience first, before they join your company.

Identify their strengths. It is impossible for your son or daughter to think and act exactly like you. If you’re the founder of the business, this may be even more difficult to keep in mind. But that could be to everyone’s advantage. While your children may not have the same entrepreneurial spirit it took to launch the company, managing and growing an ongoing concern requires different strengths and skills than helming a startup. Pay attention to the strengths and interests your children bring to the table. What do they like to do? What are they passionate about? Stay patient; even if your daughter shows signs of being a financial wizard just like you, she can’t

BETTERING YOUR BUSINESS yet match your experience. Give her the time and room to grow at her own pace. Also, avoid reminding your children you know so much more than they do — they need to learn and do some things on their own. If they learn something you didn’t know, or successfully deal with something you didn’t, let them know you’re impressed they one-upped you.

Expose them to all aspects of the business. If you want your children to someday take over the top spots, they need to know what it’s like all up and down the ranks and in every area. Look at yourself: How much of each area do you understand? You may know about merchandising, production, management, buying, marketing, financial planning — it’s a long list that depends on the field. You may not be an expert in each area, but you likely know more than the average employee.

Your children need that knowledge as well. Let them get their hands dirty and spend time in all departments, including accounting. In five to ten years, they’ll be stronger, and the company will be better off, if they have this kind of familiarity.

Have them work for another company. Family Business Review research shows that one of the highest correlations to a fruitful succession is when the next generation spends time working outside the business. If your son or daughter is truly intent on joining the family business at some point, he or she should join a company that has some relation to your business. This is invaluable experience, as your children learn about the industry from another vantage point and learn objectively what they are good at. When it’s time for them to enter your company, have them take a job that matches their skills. Or, have them enter near the bottom until they demonstrate an understanding of the basics.

Encourage them to continue their education. Future successors need to keep learning all they can. The education depends on the type of work the company does and the type of work your children would like to do there. If your children are already involved in the business, encourage them to take courses that align with the company’s mission, attend industry association educational conferences, read industry and business magazines and books, and stay on top of their field. Learning also means staying humble, being a good listener and, most of all, volunteering to take or lead projects. Actively and passively assist them to excel in that area.

Set them up with a mentor. Many successful businesspeople and professionals refer to their mentors as being critical to their success.

In a family business, it’s the best way to impart that “secret sauce” on how to think strategically; read between the lines; and learn the tricks, shortcuts and habits that work versus those that don’t. Often in a family business, there’s a ranking of optimal mentors, from those outside the business but in the industry, to those inside but not family, to those both inside and family. One rule: Mom and Dad are the worst — you love too unconditionally to convey hard criticism, and it will be hard for your children to listen. Best to identify someone else in your company who would make a good mentor, and ask them. If you do mentor your own children, remember you are not trying to clone yourself. The world is evolving, and your children will be operating in a different environment that requires its own decisions and actions. They need to be able to take the knowledge you impart, match it to the world they are in, and act accordingly.

Creating a strong foundation for your children will enable a far more successful and smooth transition as they begin to assume roles of greater responsibility. You can rest easy knowing there are no holes in their training or exposure. Having taken the time to set them up in the business right, you can start to sit back — or enjoy the pleasure of working side by side with the next generation.

Own the A.I. Revolution Artificial Intelligence is on the verge of disrupting every domain of human existence. What does that mean for one’s business?

Everything. Building on the power of AI is the factor that will determine success or failure in the very near future — and this in-depth guide from the man who designed the AI system that famously won Jeopardy provides everything one needs to be a leader in this revolution. Own the A.I. Revolution provides a future-forward look at AI — how it will look in the coming years, the countless business opportunities it will offer, the risks that come with it — and delivers the knowledge needed to navigate it all in real and practical ways.

Own the A.I. Revolution: Unlock Your Artificial Intelligence Strategy to Disrupt Your Competition Neil Sahota and Michael Ashley McGraw-Hill Education

288 pages Available 5/24/2019

$30

The Age of Intent Have you ever wished that every company you interacted with could just know what you wanted and go get it for you? That, when you picked up the phone or opened a chat window, the company would use what it knew about you to anticipate your needs? We are on the verge of a future just like that.

The age of intent is a world where the smartest of chatbots — virtual agents — are powered by artificial intelligence and connected to a customer’s complete past history. These virtual agents can anticipate just what a customer is looking for, answering questions through chat, on the phone and through smart speakers like Amazon’s Alexa.

They’ll transform the business world with efficient, scalable service that’s available 24/7 and gets smarter every day.

The Age of Intent: Using Artificial Intelligence to Deliver a Superior Customer Experience P.V. Kannan and Josh Bernoff Amplify

256 pages Available 5/28/2019

$24.95

Beyond Performance 2.0 Leaders aren’t short on access to change management advice, but the jury has long been out as to which approach is the best one to follow. With the publication of Beyond Performance 2.0, the verdict is well and truly in. By applying the approach detailed by authors Scott Keller and Bill Schaninger, leaders can more than double their odds of success — from 30 percent to almost 80.

Whereas the first edition of Beyond Performance introduced the authors’ “Five Frames of Performance and Health” approach to change management, the fully revised and updated Beyond Performance 2.0 has been transformed into a truly practical “how-to” guide for leaders. Every aspect of how to lead change at scale is covered in a step-by-step manner, always accompanied by practical tools and real-life examples.

Beyond Performance 2.0: A Proven Approach to Leading Large-Scale Change Scott Keller and Bill Schaninger Wiley; 2nd edition

The world is evolving, and a founder’s children will be operating in a different environment that requires its own decisions and actions. It’s important to prepare them to be able to take the knowledge the founder imparts, match it to the world they are in, and act accordingly.

278 pages Available 5/29/2019

31

$34.95

MAY 2019

INBUSINESSPHX.COM

MINDING THEIR BUSINESS

Ted Anderson: Creativity and Relationships

These are the fundamentals to make agencies tick

by Melissa Forbes

FAST FACTS: ANDERSON ADVERTISING + PR • Founded in 2005 • Fun, lively office in Scottsdale • 15 employees span account management, creative, PR • Produced a TV spot last year with Alice Cooper and a 12-foot python • Won 12 ADDY Awards for 2018 creative work • Current and past clients include Mayo Clinic, Phoenix Children’s, Harkins Theatres, Diageo PLC, Arizona Craft Brewer’s Guild, Papa John’s, Hamra Jewelers, Desert Financial Credit Union, Meritage Homes, Kneaders, Super Bowl Host Committee, Arizona Coyotes, Oregano’s Pizza Bistro, NYPD Pizza

MAY 2019

32

INBUSINESSPHX.COM

Success isn’t about rigidly adhering to a plan at any cost.

As Ted Anderson, president and founder of ANDERSON Advertising + PR, will tell you, building a legacy brand requires constant evolution, and so does advertising.

“With the ever-changing landscape of our industry, and that of our clients’ industries, I’ve found that there is no single ‘right’ way forward,” he says. “The saying is true: The only constant is constant change, which means finding new solutions to common problems daily.”

After nearly 25 years of leading a team of marketing and advertising professionals to award-winning, client-pleasing success stories, Anderson can confidently say he’s ridden the wave of agency change. Some of the ripple effects have included disruptive trends like the shift to digital-first, agency and client consolidation, and a 24/7 news cycle.

“When I started my career, agencies did everything that a client needed. As we moved into the digital age, there was a shift toward more specialized firms. The agency I worked for in the ’80s did its own media buying, but by the ’90s, outside specialized media companies took it over, at a lower cost.

The trend to be specialized versus fully integrated is always shifting to match the climate of the industry.”

Anderson began his career on the West Coast, handling publicity for film studios and live music in field marketing — an exciting PR gig with plenty of flash. There, he gained exposure to other marketing tactics, which led him to leave the flashy entertainment space for the allure of strategy: media planning in traditional and digital media.

He didn’t stop at media strategy. Anderson began to see how working with marketing budgets gave a better perspective of the client’s overall business and how it worked.

This meant working with clients to determine the cost they were willing to spend to acquire new customers, and what to spend to keep current customers.

“That’s why I love what we do,” he says. “We are constantly inspired because we’re always looking at new things. You end up asking these types of questions about business models, how marketing drives a bottom line. You end up being a consultative advisor versus just an agency vendor.”

In 2005, Anderson took that combined experience and founded his own firm, ANDERSON Advertising & Public Relations. Since then, the agency has won hundreds of awards, and worked with clients like Mayo Clinic, Desert Financial Credit Union, Phoenix Children’s Hospital and Foundation, Harkins Theatres and Diageo, PLC. As a testament

to his success, Anderson was named 2017 “Ad Person of the Year” by AAF Phoenix.

As an owner, Anderson developed a core area his business expertise in assessing the needs and challenges of a varied range of principals, then bringing together the perfect team to craft and execute a successful solution. This required a deep understanding of relationship-building. “I built the agency from relationships. The connections, I had developed in my community, my industry. Most agencies start and succeed because of a constant, concerted effort to network and build your reputation,” Anderson says.

He continues, “We also do a lot of pro bono work for nonprofit clients. Arizona has been incredibly good to me, and helping nonprofits is one way we can return the goodwill. It’s also a great way to build goodwill that helps cultivate relationships.”

But it isn’t always easy.

“As a business owner, you always have to be thinking about relationships: partners, vendors, the community. Every business has ebbs and flows, has good times and those not so great. Whether the challenges are business issues or personal, the best strategy is always returning to what our business does best — building and maintaining great relationships.”

No one can say what the future holds, but with a commitment to managing change with creativity and relationship-building, Ted Anderson believes there’s a wonderful road ahead.

“Having worked in agencies since high school, I’ve seen marketing evolve and the habits of consumers change,” Anderson explains. “From digital and out-of-home, to Public Relations, TV, print and radio, I just strive to make sure clients consider exactly who it is they’re trying to reach, what it is we’re saying to them (and how). That’s what success looks like to me.”

ANDERSON Advertising + PR anderson-adv.com

Agencies work extensively with Google and social media platforms; in fact, Google and Facebook account for almost 60 percent of all ad dollars spent online. (emarketer 2018)

BY MIKE HUNTER

MAY 2019

WESTMARC

Economic Development Summit – West Valley Infrastructure Wed., May 15 | 8:00a – 1:00p Event will open with speaker John Graham, president and CEO of Sunbelt Holdings.

The program will continue with two panel presentations – “Water: The Lifeblood of Economic Development” and “The Future of Transportation – followed by panel wrap-up “Technology’s Impact on Infrastructure.”

The program will continue with a keynote address after lunch.

Members: $90; non-members: $120 Renaissance Glendale – Solana Ballroom 9495 W. Coyotes Blvd., Glendale westmarc.org

Tempe Chamber of Commerce — Women in Business Council

2019 Leadership Conference & Expo Fri., May 17 | 8:00a – 1:00p

Design Pickle

PICKLECON: The Conference for Creative Entrepreneurs Wed. – Fri., May 22 – 24 | All Day This May, Scottsdale-based graphic design company, Design Pickle, will host the first annual PICKLECON, a three-day creative entrepreneur conference offering an intimate, challenging and powerful training experience to attendees.

Hosted at Scottsdale’s iconic Hotel Valley Ho, world-class creative entrepreneurs will lead business owners and partners through more than 20 sessions and six hands-on workshops based on real-world results. Each training session will focus on modern business topics, including building a business on Instagram, scaling your employees, building monthly recurring revenue, creating legacy inside your business and more.

The PICKLECON team is a hand-picked group of elite entrepreneurs that will provide actionable insights on how to be a successful creative entrepreneur.

Speakers will include Russ Perry, CEO and founder of Design Pickle; Sam Parr, CEO and founder of The Hustle; Jeremy Tyler, Former CMO of Wake Up Warrior; Chris Ronzio, CEO and founder of Trainual and many others.

Each year, this powerful event brings together hundreds of business leaders in a setting that celebrates success. A trade show featuring local and national organizations and businesses provides the backdrop to a luncheon and presentations by powerful keynote speakers. The event also features the award of Businesswoman of the Year and graduation of the men and women who participated in the 2019 Mentoring Program.

Members: $65; non-members: $95 Doubletree by Hilton Hotel Phoenix Tempe 2100 S. Priest Dr., Tempe tempechamber.org

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

Attendees can choose either general admission or VIP access to PICKLECON. General admission will include nine speaker sessions, more than 13 training sessions and a ticket to the PICKLEFEST after-party. VIP access will include all general admission items, plus access to the bonus training day on May 22, a ticket to the speaker VIP reception and lunch on May 23 and 24. —Amanda Siedler

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

Pricing: Big Dill (Ends May 1 at 6 p.m.): $1,095 for VIP, $695 for general admission Just in Brine: $1,195 for VIP, $795 for general admission Hotel Valley Ho

MAY 2019

S M T W T F S

6850 E Main St., Scottsdale

picklecon.us/picklecon2019

1 2 3 4

5 6 7 8 9 10 11 12

13

14

15

16

17

18

MAY 2019 NOTABLE DATES

19

20

21

22

23

24

25

Sun., May 5 – Cinco De Mayo

Sat., May 18 – Armed Forces Day

26

27

28

29

30

31

Sun., May 12 – Mother’s Day

Mon., May 27 – Memorial Day

33

MAY 2019

INBUSINESSPHX.COM

WE VALUE WHAT WE OWN

BY MIKE HUNTER

2019 Infiniti QX80 LIMITED 4WD The QX80 LIMITED 4WD’s engine was built to be both powerful and efficient. The 5.6-liter V8 generates 400 horsepower, 413 pound-feet of torque, and delivers an impressive maximum 8,500-pound towing capacity. Acceleration is smooth, gradually increasing until reaching the desired speed.

When it comes to the luxurious details of the QX80 Limited 4WD, nothing has been overlooked. Two-tone semi-aniline leather with Alcantara®-appointed seating with quilting, contrast piping and stitching, matte silver, open pore Ash wood trim, and “LIMITED” embossed onto first- and second-row seatbacks, are just a few of the features that take this beast to new heights of comfort and luxury.

Not to mention custom color; along

2019 INFINITI QX80 LIMITED 4WD MSRP: $65,400 City: 14 mpg Hwy.: 20 mpg

with Moonstone White, Mineral Black, Hermosa Blue and Liquid Platinum, the QX80 LIMITED 4WD offers an exclusive paint color — Anthracite Gray.

INFINITI InTouch™ Services provides for a new dimension of connectivity between the driver, the car and the world. A whole suite of safety, security and innovative convenience features like the Amazon Alexa Skill keep driver and car in touch, even when the “driver” is not behind the wheel. The Smart Rearview Mirror in the ProACTIVE Package helps provide a view otherwise

compromised by passengers, large cargo or even darkness. The toggle transforms it from a mirror into an LCD screen, displaying the enhanced view from a wide-angle, high-resolution camera.

The driver can listen to selected music with captivating depth and precision through 15 speakers with digital 5.1-channel decoding AM/FM radio, single in-dash CD player with MP3 playback capability, Radio Data System and speed-sensitive volume control.

Infiniti infinitiusa.com

0-60 mph: 6.3 sec.

Transmission: 7-speed automatic

Guilt-Free Single-Serve Coffee Offering coffee lovers a new option for the office break room, startup Steeped, Inc. has launched its revolutionary Steeped Coffee brewing method to serious coffee drinkers across the nation.

Brewed similar to tea, Steeped Coffee’s nitro sealed Steeped Bags, along with their guilt-free packaging made using renewable and compostable materials, achieve the unthinkable: freshly ground specialty coffee in a single-serving. And testimonials indicate it’s barista-approved, tested by multiple independent specialty coffee Q-graders for freshness, quality, and taste. The Steeped Coffee

THE HOUSING MARKET

A window

into our

econom y!

Family Business:

Pass It On

MAY 2019

Want In

• INBUSINESSPHX.COM

THIS ISSUE

Global Chamber Alliance of Arizona Nonprofits

ground, micro batched coffee in customized, non-GMO, Full Immersion

and a single-origin Swiss Water Process decaf.

Filters that regulate ideal water-in and maximum flavor-out. “Premium

Steeped Coffee launched when serial entrepreneur and coffee

Th

e Hous Markeing t

brand is available in five roasts: light, medium, dark, French roast,

on Marijuana Business?

Networking, Introvert-St yle

$7.95 INBUSINESSPHX.COM

DON’T MISS OUT!

Get a year of In Business Magazine. Subscribe now at inbusinessphx.com

in single-serve packaging because it’s been nearly impossible to keep

serving brew method with the premium quality of ethically sourced

ground coffee fresh, which quickly ruins the taste,” said Wilbur. “With

coffee. Wilbur wanted to redeem the environmental dilemma created

our Nitro Sealed bags, oxygen is replaced with nitrogen, so the coffee

by wasteful coffee pods. Happy to do the math, Wilbur points out

stays fresh as if it was ground moments ago.”

over 10 billion unrecyclable pods accumulate in landfills each year

Corporation) focused on Purpose Beyond Profits. Steeped is focused

side-by-side. Moreover, each type of pod depends on expensive and

on every detail from farm to cup and beyond, to bring people

often moldy brewing machines, which are also unrecyclable.

the most convenient, quality, ethically sourced, and sustainably

Coffee system that delivers fresh roasted, pre-portioned, precision

34

INBUSINESSPHX.COM

Steeped, Inc., based in Santa Cruz, California, is a B-Corp (Benefit

– enough to wrap around the earth more than 110 times if placed

It took Wilbur seven years to innovate the proprietary Steeped

MAY 2019

coffee roasters have shied away from offering their specialty beans

lover Josh Wilbur decided to combine the convenience of a single-

packaged products available.

Steeped Coffee steepedcoffee.com

Body in Motion: Infiniti’s available Hydraulic Body Motion Control system monitors force and distributes variable pressure to either the outer or inner suspension. It also helps isolate the cabin from irregular road surfaces, so vertical motion is reduced over bumps and potholes and passengers can enjoy a smoother ride.

Photos courtesy of Infiniti (top and left)

MAGAZINE

Real Estate

MAY 2019

IN BUSINESS

Spotlight on the Best: 2019 Commer cial

Turn your office or any room into a guest room – then turn it back in seconds

Get Organized. Get Extra Space. Have a Guest Bed PLUS: Save $300 on any Wallbed priced $2,700 or more!

YOUR WALLBED EXPERTS

Chandler/Ahwatukee: SW corner of 48th St. and Ray Rd. 4729 E. Ray Rd. • Phoenix • 480-535-8848 Scottsdale: SW corner of Frank Lloyd Wright and the 101 15705 N. Hayden Rd. • Scottsdale • 480-378-0093

iLoveWallbeds.com

MEALS THAT MATTER

BY RAEANNE MARSH

Club Sandwich Roasted turkey breast, smoked bacon, sliced tomato and avocado on rye toast, with chipotle aioli

Cubano Sandwich Soft bread roll with pork carnitas, cured ham, Swiss cheese and Chinese mustard $18

Hamachi tiradito Aguachile, apple, onion and sriracha $16

Rainbow roll Dungeness crab, cucumber, avocado, tuna, Hamachi and salmon, with a mango papaya salsa $19

MAY 2019

36

INBUSINESSPHX.COM

Toro: Fiery Flavors in a Peaceful Setting Toro’s easy access of the Loop 101 freeway, convenient ample parking and the freeing feeling of wide-open spaces would make this restaurant attractive even if the food were only so-so. But the food is superb, flavors wonderfully blended in dishes uniquely crafted to celebrate Latin — notably, Peruvian — cuisines.

The restaurant describes its menu as a signature “Suviche” experience — with sushi and ceviche. Hamachi ceviche is served more like sashimi, with slices of the fish spread out atop the aguachile sauce. The sea bass ceviche is more traditional in presentation — but not in flavor. The citrus tang of the juice gets kicked up a notch with a touch of chile spices, and a little condensed milk — Peruvian and Cuban influence — thickens it slightly. It’s served with tortilla chips, and would serve as an entrée for one or an appetizer for two.

There is some traditional American fare on the menu, such as the club sandwich. This dish comes together nicely with fresh slices of roasted turkey breast, bacon and appropriate garden produce, then takes a Latin detour with its chipotle aioli. A side choice of fresh-cut French fries makes its own contribution to the Pan Latin vibe by being served wrapped in a page of a Cuban newspaper.

The Ancient Grain Salad makes a filling entrée even without additional protein (achiote chicken, churrasco steak, aji shrimp or achiote salmon), with mixed greens a proportional part and not an overwhelming bed for a spoonful of toppings. Farro and quinoi are the named “ancient grains,” mixed with a colorful cohort of pepitas, cherry tomato halves, bright green fava beans and diced cucumber, and it’s all tossed with a tangy aji amarillo lime dressing.

A mostly understated décor makes the most of the expansive views the TPC golf course. The restaurant is tiered, so, while the patio overlooks the 18th green, it doesn’t impede the view from the dining room, with its own long view of greens and broad panorama of sky.

Toro Latin Restaurant & Rum Bar 17020 N. Hayden Rd., Scottsdale (TPC Scottsdale Clubhouse) (480) 585-4848 fairmont.com/scottsdale/dining/toro-latin-restaurant-rum-bar

Food with a Side of Fun Who says you can’t have fun and games with your meal? No, we’re not suggesting a food fight à la the famous scene from Animal House; rather, to take advantage of amenities some restaurateurs Culinary Dropout

are incorporating into the ambience of their establishments.

Culinary Dropout

Camp Social

The Vig

Debuted at its location at The Yard, a

The whole vibe is a campground

Cornhole, shuffleboard and, yes, bocce are

standard offering at this restaurant now

experience, which makes it onto the menu

the diversions in The Vig’s neighborhood

are backyard-style games such as cornhole,

with the dessert offering of s’mores,

tavern atmosphere, where the menu

ping-pong and Foosball. The food’s good,

complete with an actual table-top roasting

ranges from salads and healthy plates to

too, with a variety of dishes in every menu

of the marshmallows. A small game

rich and delectable dishes — all comfort

section, from appetizers through dessert.

room offers darts, pool and a couple of

food and all delicious.

4 Valley locations: Tempe, Phoenix,

arcade games.

4 Valley locations: Phoenix, Phoenix,

Scottsdale and, filling a new

6107 Seventh St., Phoenix

Phoenix and Scottsdale

25,000-square-foot space, Gilbert

(602) 368-3681

thevig.us

culinarydropout.com

campsocial.com

Gilbert’s “Dropout” Goes Rock ’n’ Roll. Featuring famous song lyrics and a gallery wall with black-framed artwork of celebrities and musicians, almost every wall of the restaurant tells a story. One such art installation is comprised of musical instruments donated from Valley residents and arranged along one wall with the words “We’re Getting the Band Back Together” painted alongside.

Photo credit: Photos courtesy of Fairmont Scottsdale Princess (top and far left), Fox Restaurant Concepts (bottom)

$16

GLOBAL CHAMBER

®

Global Chamber® Events

SPRING 2019

globalchamber.org/events

May 1-5 Canton Fair, Guangzhou

Spotlight Event May 2 at 11:30am Opportunities in Exporting May 9 at 8:00am Success Stories from Exporters May 16 at 8:00am Have More Global Online Success May 23 at 8:00am Break Through on Trade and Trade Wars May 30 at 8:00am Tips on Navigating the Global Landscape

Inside this Section

2

Important Travel Considerations for 2019

3 4 6 6 7 8

Leverage International Success to Sell Your Business Get in the Right Frame of Mind to Go Global

Creating Connections to Grow: City of Surprise Vibrant Goa Expo, October 17-19

Let Lesser-Known Visa Types Benefit Your Business Ten Tips to Prosper in Turbulent Times

Marco Robert (left) sharing business insights

Better Connections and Faster Learning in Busy Times

by Doug Bruhnke, Global Chamber®

Recently, I spent the afternoon at the global headquarters of Thunderbird School of Global Management in downtown Phoenix. In my meetings with a dozen or so of the senior leaders there, including new Dean Sanjeev Khagram, I was reminded that our global tribe and Thunderbird’s “Tbird Life” leaders have a respectful and professional tone that is warm and welcoming. It was that positive quality about Thunderbird that caused me to think about forming Global Chamber®.

If more companies were successful in global business, and tapped into that respectful and professional energy, the world will get better.

I noticed as a young professional working my way through Dupont decades ago that international businesspeople had a different and, to me, a more desirable style. They were generally more thoughtful and inquisitive, more caring and questioning. The best of the best leaders were people whom you could look up to because of their intelligence, experience and emotional intelligence. Because we’re all busier than ever, how can we fit that all in? As Bill Gates has said, “Busy is the new stupid,” and so I recommend not responding to the question “How is it going?” with “Busy”! We

get it. We’re all busy. How do we do more, more effectively?

The time for gratitude, sharing respect and THINKING seems less than ever, unless we do something different. Being busier than ever means that too many businesses still don’t consider going global because, honestly, it takes more work. We need more people doing global business, not fewer! And those going global can get sub-optimal results because a short-cut here or there can cause delays or trouble.

So we have some important new offerings planned for members!! Watch for ways that we make our warm introductions timelier and more effective as we grow and use technology to facilitate those connections that support more member success. Also watch as we incorporate the soft skills of global business into learning management systems that get more of our members up to speed faster on essential business techniques. We’re here for our members, thinking every day about how we can support them to … Be global and UNSTOPPABLE! Doug Bruhnke is founder/CEO of Global Chamber®.

GlobalChamber.org

1

Important Travel Considerations for 2019

by Dr. Robert L. Quigley, M.D., D.Phil, International SOS

2

Corporate travel is often guided by travel risk programs that play a large factor in protecting the mobile workforce. Traveling abroad for business is no longer unusual, and, as the number of international business travelers continues to grow year after year, travel risk education has become imperative in protecting employees. There are always precautionary measures that should be implemented when preparing for a trip, and, as 2019 begins, travel managers must make sure to update travel risk programs to ensure the safety of their mobile workforce.

Alongside Ipsos MORI, the International SOS Foundation conducted a “Business Resilience Trends Watch 2019,” unveiling the top reasons why international business travelers in the Americas modify their itineraries. The top causes of modified itineraries include: • Security Threats (57 percent) • Natural Disasters (49 percent) • Country Risk Rating (37 percent)

themselves and staff to prepare for any situation before it arises.

Using the following guidelines, travel risk managers and business travelers will make certain the mobile workforce is safe.

• Companies should start by providing mandatory e-learning modules for all staff, and update it yearly, as well as offer additional assets that cater to specific profiles, such as female business travelers, LGBTQ and travelers with disabilities.

• Before leaving for any destination, business travelers should have a detailed picture of the security and medical risks of that destination. To do this, travel managers should verbally provide this information to ensure the traveler is familiar with the full itinerary before departure.

• Business travelers should also know and feel comfortable with the accommodations and advisories. Additionally, managers should provide medical and safety advisories to their mobile workforce detailing.

Often, employers wait until a threatening event occurs to an employee while on a business trip to update or implement travel risk programs. In reality, there are always ways that travel managers can better educate

When planning business travel, it’s important to keep medical risk and security risk ratings in mind to adequately assess the type of preparation that is required.

As an additional resource, International

Global Chamber®

SOS launched its award-winning Travel Risk Outlook Map 2019, providing a comprehensive overview of medical, security and road safety risks by destination. This map aims to help organizations and their mobile workforce in travel risk mitigation efforts. The Medical Risk Ratings are determined by the International SOS Medical Information and Analysis team by assessing a range of health risks and mitigating factors, which include: • Infectious diseases that are present in the region/country and environmental factors; • The standard of emergency medical and dental care and access to pharmaceuticals; • Medical evacuation capabilities; and • The cultural, language and/or administrative barriers.

In the ever-changing world of security and health risks, it may seem difficult to encourage employees to travel to remote locations to conduct business. However, the goal of a travel risk program should be to facilitate travel in spite of the risks present.

Dr. Robert L. Quigley, M.D., D.Phil is the senior vice president and regional medical director of the Americas Region at International SOS, Inc.

Leverage International Success to Sell Your Business

by Lennard van der Feltz, Pinnacle Financial Advisors

Owning and operating a business on the international stage can be immensely rewarding, and it also presents its own challenges. One of the areas of opportunity and challenge for international businesses is selling the business. Sellers in these cases may face international implications that not every financial planner, accountant or advisor may have encountered.

We have that experience, and have been helping clients as they navigate this process internationally. We know first-hand the challenges that lie ahead for owners in the market to sell their business, and this article intends to shed light on some of these.

When looking at the buying and selling experience holistically, there are five important building blocks that lay the foundation for a confident and seamless transaction when you’re ready for a transition.

• Find a ready buyer. Finding a qualified buyer is the first step in selling any business.

But in the international sphere, your pool of potential buyers gets smaller as there are fewer businesspeople who understand how to operate on an international scale.

To find a ready buyer, start early and network among your contacts who may be key employees, suppliers, customers, competition or work in related industries or even private equity firms. Also, consider tapping your children and relatives who may be interested in taking over the reins.

Additionally, it may be helpful to consider hiring an investment banker or a business broker with experience in your industry and geographical area.

• Get a proper valuation. Getting a proper and formal valuation in an imperative step for both the seller and the buyer. A valuation also plays a role in your taxes.

Find a valuation firm that has the relevant expertise, meaning they have experience in your industry and the countries you operate in. The firm is then able to assess

the strengths and risks of the entity’s international sales and operations.

• Organize taxes. Tax planning is challenging as it is, but it becomes an exponentially more complicated task for businesses that have assets and operations abroad. These may be subject to varying tax laws in different countries, only adding to the complexity. It’s also important to remember that selling your company abroad will have an impact on your taxes back in the U.S. It could be helpful to meet with an accounting firm that has an international reach. While this process can add time to the selling process, a seasoned accountant may offer indispensable guidance through this process.

• Get comfortable with letting go.

For some business owners, this step is the most difficult. They have been preparing for months — finding a buyer, getting a valuation and becoming an expert in international tax codes — and suddenly they’re faced with an immense feeling of loss when it is time to say goodbye. When deciding to sell, prepare for the sadness associated with leaving your business, your employees and, oftentimes, your life’s work behind. Coming to terms early on will make this transition easier.

• Find a trusted advisor. Some of the most successful entrepreneurs surround themselves with the people who can help them build their businesses into successful

enterprises. And just as in building that business, it’s equally important to retain financial and legal partners who not only understand international transactions, but also have the scope of skills, breadth of knowledge and depth of experience to help you achieve your goals. Pinnacle Financial Advisors has been helping clients with international businesses and interests for more than 15 years.

Getting your international business ready to sell is an enormous accomplishment, one that requires time, energy and ample preparation. By considering these five steps, a business owner can embark on this journey with more confidence and ease.

Last month, we were part of a Global Chamber® globinar on this topic, and I encourage you to review the wrap-up blog post that includes additional information at www.globalchamber.org.

Lennard van der Feltz, CFP®, MSM, MBA is a founding partner of Tempe-based Pinnacle Financial Advisors, which assists individuals, families and businesses with financial planning and wealth management. He is a Registered Representative offering Securities through UNITED PLANNERS FINANCIAL SERVICES, Member: FINRA, SIPC. Advisory Services offered through SEROS FINANCIAL, LLC. Pinnacle Financial Advisors, Seros Financial, and United Planners are independent companies.

GlobalChamber.org

3

Get in the Right Frame of Mind to Go Global

by Todd Cornell, Cultur668

The foundation of a good global frame of mind is a solid understanding of culture. Culture is best understood as traditional core knowledge shared by any group, large or small, that binds them through concepts, practices and actions. Culture bonds through shared knowledge of the larger community’s beliefs and practices, which have likely been passed down over generations. This common core knowledge, like mortar with bricks, unifies countries and communities, making them unique and different from the others.

When speaking of culture, I do not include politics; rather, I point to the characteristics and practices a people and community share that make them unique from others. This knowledge embodies what I feel are important clues to successfully establish amicable and beneficial relations with people from different countries and communities.

When interacting with people from different cultural backgrounds, I consciously stay open to things “outside my comfort zone.” I stay mindful of thoughts and inner reactions, while reminding myself to let go of prejudice and judgmental self-talk. There is wisdom in every culture; however, that wisdom may be challenging to recognize at first.

Entering into a cross-cultural situation offers me an opportunity to test and overcome what my head tells me is normal and acceptable.

In the U.S., friendships and relationships, compared to more traditional societies, tend to be superficial. A friendly suggestion to meet may not be followed through on and friends may not be around when needed. However, from my experience in China and other countries, friendships and relationships tend to be comparatively deeper. Chinese friends are there through the thick and thin or they are a thorn in the flesh.

Confucius was aware of this idiosyncrasy of Chinese culture and admonished his students to practice respect. He said, “A respectable person creates harmony, a scoundrel fosters discord.” Confucius experienced disrespect himself, having been banished from his home consequent to his peaceful views. He was forced to roam for 14 years, triggered by his attempt to bring harmony to a corrupt government.

Not unlike respect, having cultural competency is based on slowing down and being mindful. We all see the world differently; we have different hopes, fears and means for survival. It is important, however, to understand why we see the world the way we do; from our upbringing, friends and individual life experiences — or lack thereof.

When we stake claim to our ways as being “the right ways,” it becomes a potential spawning ground for division and discord.

How to Foster an Inclusive Mindset The Chinese expression “Focus on the similarities and save the differences” is an expression originating from Mao Ze Dong. It was coined during a Provincial Party Committee meeting where Mao suggested the need to work on the problems at hand and leave other

4

Global Chamber®

Todd Cornell (right) at the Canton Fair in Guangzhou

problems for a later date. Later, in 1955, the Chinese diplomat Zhou En Lai attended an Asian-African summit in Bandung, Indonesia, where he made reference to the expression. Zhou applied it to foster a sense of diplomacy among people from different Asian nations with diverse cultural and political backgrounds. Despite the perceived differences, Zhou suggested they focus on similarities and avoid focusing on differences. By applying this concept, Zhou was able to successfully alleviate destructive undercurrents threatening discord among the attending nations. Zhou’s desire to foster harmony became the basis for a successful 1955 Asian-African Summit.

What can we glean from Zhou’s application of the expression “Focus on the similarities and save the differences”? Today, when we focus on similarities, not differences, we can bridge discord and see through the illusion of division. By doing so, we establish a positive foundation for inclusive and harmonious cross-cultural endeavors. Applying the idea of “focus on the similarities and save the differences” to cross-cultural relations may be compared to taking a deep breath in a stressful situation. By focusing on similarities, we empathize with the challenges or hopes others hold to. When we recognize that everyone desires to be happy and successful, we may be more inclined to put forth the effort to find effective ways to achieve harmony, be it with partners, clients or friends. Differences will always exist, especially cultural differences or simply how we approach things. But, when we approach situations with patience and by practicing openness and a desire for mutual benefit, success is within easy reach.

Notice Your Self-Talk Be aware of internal dialogue. If you notice yourself becoming frustrated or fearful around people from different cultural backgrounds or those with different views, notice your self-talk.

Become curious about it. Inquire within as to where this comes from. Usually, if we are honest with ourselves, we find it is early conditioning. Change the self-talk in your mind to a discourse of civility, inclusivity or compassion. When we change our inner dialogue, our outer world changes with it.

Offer compliments. This is a simple yet useful skill for crosscultural interactions. Simply say something nice or friendly. Share some positive energy. Inquire about your counterpart’s home country or family. Ask them something about their culture. Ask how to say something in their language and repeat it back to them. When you forget, ask again. There are many ways to bridge cultures and differences; try some of your own. Take the initiative and you will reap the rewards!

Relationships are important in all interactions. If we don’t feel comfortable with someone, it will show. However, if someone is causing us to feel uncomfortable, we may want to look at ourselves before calling out the other person. When it came to recognizing one’s responsibility for success or failure, Confucius was a proponent

for self reflection. During a conversation with one of Confucius’ followers, Zeng Zi said, “I stop and reflect on myself three times daily.”

In Chinese, when we use the number three in this context, it suggests a number in excess of three. In the dialogue, Zeng Zi continued to question his own actions, asking, “When interacting with others, am I being upright? Am I honest with my friends? Am I applying the knowledge of the Teacher (Confucius)?”

Self-cultivation was a common topic for Confucius. We know this from well-known quotes, such as ”When I am among others, they are my teachers.” Confucius also said, “When you meet someone of a higher moral standard, aspire to be like that person.” These words of wisdom from the Annals of Confucius clearly support the idea that China’s most highly proclaimed teacher regarded himself as a learner, recognizing the need for consistent self-improvement and learning.

When interacting across cultures, we can all learn from the traditional teachings of Confucius and his students by practicing self-reflection and focusing on the similarities, all while attending to our cultural self-talk. Looking to test your cross-cultural capabilities?

Join Global Chamber® and interact with businesspeople from all over the world.

Todd Cornell is a China culture authority, China business consultant and language facilitator. He is founder and principal at Cultur668.

GlobalChamber.org

5

Creating Connections to Grow: City of Surprise

by Mike Langley, Global Chamber® Phoenix

The City of Surprise has received an innovation award for working with international companies landing in the U.S. that have chosen Surprise as their landing point. Those companies are taken through programming that supports their success.

AZ TechCelerator, a city-owned West Valley business innovation center, offers international businesses a unique Global Concierge Services program, otherwise known as a “Soft Landing” program.

The program is intended to help international companies who want to expand into the U.S. market with less upfront costs and risks but with more support resources.

In March 2018, the International Business Incubation Association (lnBIA) formally accepted the program into the Global Soft Landings Network. It is now one of 31 members in more than eight countries with lnBIA Soft Landings designation.

Launching this program and achieving the formal designation at the AZ TechCelerator was both a competitive and an enormous

accomplishment that brings tremendous benefits to the West Valley, including elevated global branding, visibility, credibility and opportunities to collaborate with lnBIA on international projects and grant proposals.

AZ TechCelerator has already initiated several agreements with international companies, including: Glympt (Portugal), Excoro (Romania), Tellspec (Canada), Valtx (Canada), Meditar (Argentina) and MagQu (Taiwan).

Global Chamber® member Meditar leveraged the location to do a $US multimillion deal with Scottsdale-based healthcare technology provider and fellow Global Chamber® member GlobalMed, a global telemedicine leader. Connections matter, and so, when AZ TechCelerator and Global Chamber work with members like Meditar to create valuable connections, there is no stone unturned. In this case, a successful connection was made and now telemedicine solutions from Arizona are rolling out across Argentina.

The Surprise AZ TechCelerator Global Concierge Program stands out because it is

Innovation Award 2018

a first-of-its-kind to directly connect global companies to the West Valley of Metro Phoenix. The AZ TechCelerator, itself, has helped foster more than 500 West Valley jobs, and this innovative program stands to even further diversify the job growth in the West Valley in the long term. The Surprise Economic Development Department utilizes the strengths of its successful business incubation program to help remove costs, risks and obstacles to foreign-owned companies.

Congratulations, Jeanine Jerkovic and the entire team at City of Surprise, for your innovation and winning this award! We were pleased to participate in the process of supporting client success and in the awards ceremony!

Mike Langley is deputy director of Global Chamber® Phoenix.

Vibrant Goa Expo, October 17-19

by Jagat Shah, Global Advisor at Global Chamber® Ahmedabad

Team Vibrant Goa, India was pleased to meet with Global Chamber® at the UPS Center near Oakland Airport. Thank you to Kim Findlay and Adam Botten of UPS, along with Gary Brown of UPS, the international area sales manager for North California.

“Global” Jagat Shah

6

Global Chamber®

UPS is a $US72 billion company with 481,000 employees in 220 countries.

UPS shared its model of business and how it is solving business challenges through technology. At the meeting, Findlay, Botten and Brown spoke of their India business with pride. And it is worth noting that UPS will have a strong presence at Dubai 2020. We encourage you to attend that important Expo in 2020, along with our Vibrant Goa Expo later this year, described below.

In our recent meeting, Team Vibrant Goa delegates Rajkumar Kamat and Pranav Aggarwal presented their business models.

Aggarwal’s discussion was of his team’s success with Blue Fort Basmati rice, and they are looking for additional distribution

outlets in the U.S. and around the world.

Kamat’s discussion was primarily on 12 sectors represented in the Goa, India region, including pharmaceuticals, manufacturing, technology and tourism. Learn more about the Vibrant Goa Expo scheduled for October 17–19, 2019. We encourage you to join us there to discuss ways to do business.

Global Chamber® is the most innovative approach I have ever seen in any country toward a chamber model. It has 525 metro chapters in 100+ countries. Please join us at Global Chamber® every day, and at Vibrant Goa Expo in October 2019!

Jagat Shah is founder of Vibrant Goa and a serial entrepreneur based in Ahmedabad, India.

Global Chamber®

Global Chamber Phoenix and Tucson Global Chamber® is a growing and collaborating community of CEOs, executives and leaders in 525 metro regions around the world taking on global business and advancing growth and success. Contact us at info@globalchamber.org or (480) 595-5000.

Chairman/CEO Sponsors BMO Harris Bank Spencer Fane Squire Patton Boggs Thunderbird School of Global Management Vistra President Sponsors Bank of America BBVA Compass Bank Dickinson Wright Polsinelli R&A CPAs Special Global Advisors Hank Marshall, UK Honorary Consul in Arizona Melissa Sanderson, Freeport McMoRan Leila Aridi Afas, Toyota Michael Patterson, Spencer Fane Kiyoko Toyama, Japanese Friendship Garden Jimmy Douglas, Tesla Electric Cars David Farca, International Business Group Susan Shultz, The Board Institute Committees All Metros, Industries and Regions Contacts CEO/Founder: Doug Bruhnke, doug@globalchamber.org Business Services: Cesar Trabanco, cesar@globalchamber.org Membership: Yvonne Luker yvonne@globalchamber.org Deputy Director: Mike Langley mike.langley@globalchamber.org

Let Lesser-Known Visa Types Benefit Your Business

by Doug Bruhnke, Global Chamber®

We spoke with immigration experts who are members of Global Chamber® to understand some lesser-known visa types and how those can be used to benefit your business. One of our key experts was Jessica Weiss, immigration attorney at Weiss & Moy, who shared an update on status of these types along with others at a time in U.S. history when the federal government is making it more difficult for businesses to retain talent from outside the U.S. The discussion included information on H-1B visas for specialty occupations by Christine Swenson of Swenson Law Office; background on E-2, E-1 AND O-1A visas

by Jessica Weiss; and more on the J-1 visa for foreign national trainees by Elizabeth Kumbhari of Cultural Vistas. Other speakers included Dobrina of Ustun Law Office, who covered TN, L-1A and EB-2 visas, and James Hollis of Siskind Susser, who shared an overview.

Regarding H-1B visas, Christine Swenson shared that these are employment-based visas that require a company to petition for a foreign national employee for a professional, specialty occupation. A “specialty occupation” encompasses a variety of fields but requires post-secondary education and a career that requires the application of that body of knowledge. Example professions where these can be used are engineers (software, mechanical, geophysics), economists, accountants, graphic designers, statisticians, systems analysts, teachers and physicians/surgeons.

Regarding E-2 visas, Jessica Weiss shared that applicants must have a country of citizenship that has an E-treaty with the U.S. The foreign investor must invest substantial funds in a U.S. business, new or existing, and create jobs for two full-time employees. The U.S. company must show current or future economic benefit.

Regarding E-1 visas, Weiss shared that there must be an E-1 treaty between the

U.S. and the foreign applicant’s country. The U.S. company owned by the applicant must have a majority of its trade or services between the U.S. and its home country. In addition, no physical U.S. office is required, no workers are required, and there is no substantial investment required like with an E-2 visa.

Regarding O-1A visas, Weiss shared that applicants must have special national or international recognition in their field of endeavor. In addition they must meet three of the 10 possible criteria to qualify.

Changes in immigration enforcement are making the requirements tougher to meet.

The applicant must gather supporting documentation that may include reference letters, magazines, proof of books written, proof of a key role in organizations one is a member of, high salary compared to others in the field and awards/ medals of distinction.

Regarding J-1 visas, Elizabeth Kumbhari shared more about how Cultural Vistas is making successful applicants more accessible to U.S. firms. These workers may be foreign nationals who are trainees, with assignments of three weeks to 18 months in duration.

Their training may occur at multiple sites and they may be at any organizational level, but it does require educational and cultural objectives, with a training plan. The J-1 workers may also be an intern, who can help bring your business to the world. These assignments are three weeks to 12 months in duration. The workers are current university students or recent (1 year) graduates, and the program requires an educational and training plan. Cultural Vistas is well-equipped to help members with the supply and support of these opportunities.

Cultural Vistas culturalvistas.org

Doug Bruhnke is founder/CEO of Global Chamber®.

GlobalChamber.org

7

Ten Tips to Prosper in Turbulent Times

by Gary Covert, Gary Covert Consulting

The best global leaders understand the importance of innovation to stay ahead of the competition. Below are ten tips for global leaders to consider to consistently raise the bar and become, as I like to say, “ridiculously innovative.”

1) Paradigms shifted are as valuable as paradigms broken. Not every improvement in the organization needs to be some big dramatic event. While technology grabs headlines for cool new products or services like foldable phones, or using proton accelerators to smash cancer cells, more prosaic improvements count, too.

2) Innovation on the inside requires competition on the outside. Raising the bar can threaten existing processes, existing technology and even existing business models. And anything that is existing has managers, leaders and teams that take care of these things. Senior leaders need to take care that smaller interests do not supplant the larger future gains that can come from new innovation.

3) In many organizations, innovation from the front line is 4X more valuable than innovation from the mother ship.

For the many organizations that are less dependent on centralized R&D, the front line is a rich and often overlooked source of innovation. Plus, ideas from the front line can be 100 percent more practical, have 100 percent more buy-in, tend to be 100 percent less disruptive and come with 100 percent less risk. Coherently surfacing these ideas and getting them implemented efficiently can be an exceedingly beneficial approach.

4) Innovation is in everyone’s job description and something you ask of the organization, not impose. Every part of the organization can reset and improve standards of performance. Just like every leader is expected to deliver results in their department or develop their people, we can and should expect people at every level to raise the bar and not just fix problems.

5) The fastest way to grow your business is dumping the bottom 10

8

Global Chamber®

Gary Covert, Gary Covert Consulting

percent of ideas and elevating the top 10 percent. Smart leaders go neutron on the worst and nurture the best. Jack Welch, former CEO of GE, was once known as “Neutron Jack.” He was known to go neutron on people or business units he felt were not performing. Leaders today need to be equally rigorous about supporting good ideas and dumping bad ideas. The degree to which leaders can accelerate the success of great ideas and minimize the impact of bad ideas is the real predictor of sustainable success.

6) Great innovators (like rainmakers) tend to like their own weather. The leader’s prime job is to make sure the organization is not handing out umbrellas and showing them the door. Be on guard that layers of management are not snuffing out great ideas or inducing people to express their creativity elsewhere.

7) Innovation is not a straight ascent; it is a switchback. Innovation is not always a straight, predictable path to the top. Be prepared for a consistent climb, sometimes out of sight of the summit, when all that can be seen is the hard work of the next task.

8) Complexity is the enemy of innovation. Killing two birds with one stone does not require a rock quarry.

Change for the better does not require grandiose plans or elaborate approaches.

Keeping things simple and focused can create enormous value quickly.

9) The No. 1 cause of poor innovation is self-amputation of creativity. The second cause is poor implementation, which is to say, shooting ourselves in the foot. People do themselves and others no service by denying their ability or rejecting a role in developing ideas to improve the organization. Once surfaced, organizations must work diligently to apply the ideas and actually derive the benefit.

10) Organizations saying they will innovate when they have the money or the time is the same as saying, “I’ll breathe after I catch my breath.”

Businesses don’t do innovation, innovation is business. Innovation is not some activity for a distant, ideal future. Raising the bar and finding ways to do things faster, better or cheaper is the essence of business and an activity for the here and now.

Competing globally exposes organizations to competition with the best of the best. For these organizations, innovation is a critical piece of the puzzle to adapt to local markets effectively, show market distinctions quickly and raise the bar consistently.

Gary Covert is founder and principal at Gary Covert Consulting.

SPRING 2019

UNITING, STRENGTHENING, AND ADVANCING ARIZONA’S NONPROFIT SECTOR. ARIZONANONPROFITS.ORG

The Alliance of Arizona Nonprofits is an action-oriented group of partners across Arizona — both nonprofits and those in the community who support them — dedicated to uniting, strengthening and advancing Arizona’s nonprofit sector. The Alliance envisions an Arizona where all nonprofits are valued, empowered and thriving.

CONTENTS

p. 2 Arizona Gives Day 2019 Results Are In! p. 3 Three Questions with a Board Member: Penny Allee Taylor p. 4 Decisions, Dollars and Data, Oh My! p. 6 Not a Far Stretch p. 7 Leading Discussions about Unconscious Bias p. 8 Employers of National Service Program

Alliance of Arizona Nonprofits 360 E. Coronado Road, Suite 120 Phoenix, AZ 85004 Phone: (602) 279-2966 www.ArizonaNonprofits.org

Good Deeds in Spring Lead to Good Vibes All Summer Long

by Kristen Merrifield, CAE, CNAP, Chief Executive Officer May has long been one of my favorite months of the year. The beautiful transition between spring and summer, with temperatures still bearable even in the Valley of the Sun. It’s a time for graduations and celebration of new seasons in life. During my time at the Arizona Small Business Association, we had a month-long celebration during May because it was Small Business Month.

And now, at the Alliance, it is when we get to celebrate the successes from Arizona Gives Day and hand out more than $180,000 in prizes to participating nonprofits.

But, as we inch closer to yet another long, Kristen Merrifield hot, summer, it also brings up a few concerns for the nonprofit sector. With charitable giving normally spiking around tax time, and then again around end of year, the summer represents a potential drought in more than one way. It is critically important that nonprofits have access to a steady stream of funding throughout the entire year in order to effectively sustain their missions — especially for those working on issues that are only exacerbated by rising temps — like homelessness or animal welfare. This is why consistently donating to nonprofits throughout the year is incredibly important.

With all the tax changes that have occurred since the Tax Cuts & Jobs Act was passed at the end of 2017, it also remains to be seen whether we will continue to see a spike in donations around tax time and end of year. The Alliance has been hard at work finding creative solutions to help mitigate an estimated $273 million annual loss in charitable giving to Arizona nonprofits. This is another very important reason we must continue to give of our time, talent and (especially) treasures to help nonprofits be able to continue to provide critical programs and support.

So, as the cooler temps waft away into the summer sun, as you are sitting around the pool or staying tucked away inside in the comfort of your A/C, please remember your nonprofit colleagues. Make a special gift this summer, or volunteer a few hours of your time. Let’s continue to make May a month that makes us all smile, especially those who need a smile the most.

1

ALLIANCE OF ARIZONA NONPROFITS

This year’s Gives Day raised a record total of more than $3.6 million for more than 650 nonprofits organizations statewide.

2

Arizona Gives Day 2019 Results Are In!

by Jennifer Purcell, Director of Community Engagement Arizona Gives Day is an annual statewide day of giving that invited Arizonans to donate to their favorite local causes during a 24-hour period on April 2, 2019. This year’s Gives Day raised a record total of more than $3.6 million for more than 650 nonprofits organizations statewide.

Hosted by The Alliance of Arizona Nonprofits and Arizona Grantmakers Forum and presented

by FirstBank, Arizona Gives Day has raised more than $17 million for Arizona nonprofits since its founding in 2013. Matson Money is a Platinum Sponsor.

Arizonans from across our state donated on April 2, helping a variety of nonprofits of every size to win additional prize money. We have now given away nearly $1.3 million in cash prizes since 2013. Participating nonprofits included large and small organizations focused on animal welfare, the arts, child welfare, human rights and more. As of the date this was written, there were 22,145 total donations to 653 organizations.

During the 24-hour day of giving, nonprofits encouraged their supporters to donate on

azgives.org to help them win prize money based on fundraising success. During eight “Power Hours,” nonprofits competed for the largest number of total donors giving at or above various dollar amounts.

A total of 86 prizes were given away for accomplishments such as most dollars raised and most unique donors, as well several random prize drawings. Even businesses had the opportunity to get involved and help raise donations for registered organizations by creating their own Employee Giving landing page. You can view all the winners at azgives.org/leaderboards.

Thanks to the generosity of our amAZing donors, Arizona Gives Day was a resounding success not only in the amount raised, but by providing much-needed funding and introducing new donors to nonprofits statewide.

We’re thrilled to continue growing this event and showcase the power of collective giving.

AZGives.org accepts donations year-round and nonprofit registration is now open for the 2020 Arizona Gives Day.

WWW.ARIZONANONPROFITS.ORG

Three Questions with a Board Member

Penny Allee Taylor Company: Valley of the Sun United Way Job Title: Chief Public Policy Officer

What drew you to the Alliance of Arizona Nonprofits board?

When I joined Valley of the Sun United Way, there were members of our team who participated in a variety of programs that were offered. I began participating in their committees and found organizations that had similar issues that we could work on together to find solutions. I’ve learned a lot about the nonprofit sector from my colleagues across the state and this has helped me, and I hope I’ve shared some valuable information with them, too.

What would you say to someone considering joining a nonprofit board?

Take the time to learn about the issues, mechanics and people involved in the nonprofit you choose to serve. This is a great way to broaden your learning, leadership and love of service.

List your three favorite books: • East of Eden • To Kill a Mockingbird • A Confederacy of Dunces

connecting

REAL people with

REAL

careers

via

HIRING companies

www.readbetterbebetter.org facebook.com / readbetterbebetter twitter.com / readbetteraz @readbetteraz

and

QUALITY

resources CareerConnectors.org 480.442.5806

CareerConnectors is a 501 (c)(3) non-profit organization

For more information about the program, or to find out how you can help, please contact Sophie Etchart, Founder & CEO of Read Better Be Better at sophiee@readbetterbebetter.org or (623) 229-7880.

3

ALLIANCE OF ARIZONA NONPROFITS

Decisions, Dollars and Data, Oh My! Nonprofits and employers of all types are encouraged to review the proposed regulations and determine whether and how the draft rules will affect their ability to attract and retain workers and advance their missions 4

by David Thompson, Vice President, National Council of Nonprofits Businesses of all types, take note: Decisions coming out of Washington, DC in the coming months will affect employment practices and business planning decisions for years to come.

For-profit and nonprofit organizations have a vested interest in what comes of proposals from the U.S. Department of Labor on overtime pay and the Department of Commerce on the 2020 census. This is an article about what businesses need to know and what they can do about it. Soon.

Paying Overtime The rules governing overtime pay are in flux once again. A few years ago, employers across the country were scrambling to adjust to the changes to overtime regulations issued by the Labor Department under President Obama. Those rules, which were ultimately blocked by a federal judge, would have doubled the salary threshold for determining who could be considered whitecollar employees exempt from time-and-a-half overtime pay. The threshold they sought to put in place reportedly would have made four million American workers entitled to overtime pay regardless of their job duties.

WWW.ARIZONANONPROFITS.ORG Now, there’s a new overtime salary threshold on the table (www.regulations.gov/document?D=WHD-2019-0001-0001): $679 per week or $35,308 annually. That amount is halfway between current law and what the Obama Administration proposed. The Labor Department estimates that about 7 percent of nonprofit employees nationally will be affected by the higher salary threshold (compared to 5 percent of for-profit employees). The higher threshold could affect an even larger portion of the nonprofit workforce in Arizona and other parts of the country where average wages and cost of living are below the national average. See the initial analysis from the National Council of Nonprofits (http://bit.ly/overtime-analysis-pdf).

Nonprofits and employers of all types are encouraged to review the proposed regulations and determine whether and how the draft rules will affect their ability to attract and retain workers and advance their missions. The Labor Department is inviting public comments (RIN 1235-AA20) (www.regulations.gov/document?D=WHD-2019-0001-0001) through approximately May 21, 2019.

Relying on Census Data The 2020 Census is less than a year away and the stakes couldn’t be higher. Arizona stands to gain one more Representative in Congress if the census is done right. Or lose $900 per person per year in federal dollars for roads,

community supports and social services for anyone not included in the official count. And more, the data generated by the census can “help you start or grow a business or understand the business landscape for a region,” the Census Bureau (www.census.gov/data/data-tools/cbb.html) boasts.

If good census data leads to good decisions, then flawed data should be of concern to all who are planning for the future. The U.S. Supreme Court will decide by ea rly summer whether to allow the addition of a citizenship question (http://bit.ly/supreme-court-18-966 to the 2020 Census, a question proposed by the U.S. Commerce Department. In the view of many — including business groups, a bipartisan group of elected officials and charitable nonprofits (http://bit.ly/bipartisan-official-pdf) — mandating that people declare on their census questionnaire whether they are citizens will cause millions to refuse to be counted and result in an undercount of 5.8 percent, according to one study.

The ruling of the Supreme Court about the citizenship question may shake faith in the quality of the resulting data, but we all have a part to play in encouraging participation.

Recognizing that the value of a fair, accurate and complete census is so great for our economic and social bottom lines, many for-profit and nonprofit businesses are doing their part to raise awareness among the populations they serve. We all benefit when we all are counted.

The latest business news on inbusinessphx.com and on twitter @inbusinessPHX

Follow us to build your small business inbusinessphx.com /inbusinessphx

@inbusinessPHX 5

ALLIANCE OF ARIZONA NONPROFITS

Not a Far Stretch

by Carly Figman, Account Based Marketing Manager, Dollar Days We have been conditioned that combining the words “stretch” and “dollar” is an overreach or unattainable. But what if we change the connotation of how the words are paired together?

We have a mission at DollarDays to stretch your dollar so that any need is attainable. With nonprofits, we know an order for a case of soap it isn’t simply bars of soap. They may be part of hygiene kits for the homeless, distributed to those affected by a natural disaster, or offered in the school nurse’s office for a child who may not have access at home. These bars of soap can provide someone with a little hope and dignity. That is why we work as hard as we do to provide exceptional value at the lowest prices so we can support and assist more of those in need through our nonprofit partners.

As a business focused on helping with nonprofit needs, we know that sourcing quality items at low prices is imperative in supporting the ongoing programs in the community. We strive to educate ourselves on what each nonprofit is trying to accomplish. Our account managers work specifically with certain types of nonprofits so we are able to learn and concentrate on their product needs as well as develop the personal relationships that are key in building successful partnerships. By becoming experts in our partner nonprofits, our team members are able to look into specific products needed at prices that will work with and stretch the amount desired. If the budget is $100 for blankets, we want to provide

6

as many blankets for that monetary value. By taking what we are given and stretching it, we are able to effect more positive change in our community.

Engaging with our nonprofit partners over the phone about their events and programs is important, but it is crucial for us as a company to attend and volunteer to support them and our community further. What types of supplies may be needed and what time of year? Can we order early to cut the cost and increase how many items are ordered and stay in the designated budget? Being present and seeing how our products are used is key our awareness of what is needed, and, more importantly, assists in the support of our community.

The products we carry have helped to solve many issues, but it takes manpower to put those practices into effect.

So how do we continue to grow and help our partners grow?

By stretching every dollar. With free shipping and no order minimums, we are committed to making every last cent count.

Ordering wholesale with us is the ultimate way to make your money work: more items for the same price. Our Wish List program helps nonprofits register for all their needs, and enables their donors to purchase any and all their program needs at the best possible price. Looking forward to our busy season with back-to-school drives, we are ready to serve our partners and the Phoenix community and stretch every part of every budget line so that we can positively impact as many lives as possible.

WWW.ARIZONANONPROFITS.ORG

ALLIANCE OF ARIZONA NONPROFITS BOARD OF DIRECTORS

Leading Discussions about Unconscious Bias

by Krista Watson, EEOC Phoenix Outreach & Education Coordinator

BOARD CHAIR: Kelly McCullough R Kids/R Entertainment SECRETARY: Yvonne Moss Caritas Law Group, P.C. VICE CHAIRS: Sonia Perillo Audubon Arizona with the National Audubon Society Glenn Wike Arizona Community Foundation TREASURER: Ron Stearns CliftonLarsonAllen Mario Aniles Housing Authority of Maricopa County Pam Gaber Gabriel’s Angels Karl Gentles Back to School Clothing Drive Len Gutman American Heart Association/ American Stroke Association Donnette Hermes Ameliorate, LLC Amy Schwabenlender Human Services Campus Penny Allee Taylor Chief Public Policy Officer, Valley of the Sun United Way Deborah Turcott PetSmart Charities Steve Yamamori Rio Salado College EX-OFFICIO: Kristen Merrifield, CAE, CNAP Alliance of Arizona Nonprofits

As the EEOC Outreach & Education Coordinator for the Phoenix District Office, I am often called upon to lead discussions or provide training in the areas of diversity, EEO sensitivity and awareness, unconscious bias, and microaggressions. While not an expert in any of these areas, I believe I have found ways to lead these discussions so that by the end of a session, participants have a better understanding of how our different experiences affect how we view people and situations.

Today, it seems there are endless articles and research about unconscious or implicit bias. I avoid starting the discussion by dictating a formal academic definition of the terms. Instead, I get the audience talking about examples from their own lives to make the terms seem more concrete and real. I learn from them in every single session — in the best sessions, the audience members are the instructors.

Unconscious bias is “filling in the blanks,” or assumptions we make about people or situations, without even realizing that we are doing it. Often, I begin sessions by sharing stories about assumptions people have made about me because I am an older white female, because I work at the EEOC, or because I ride a motorcycle and am covered in tattoos. I then open the discussion for others to share assumptions that have been made about them in the past, and how those assumptions made them feel. This conversation often leads session participants to realize how often unconscious bias happens; how different people react to those assumptions; and why some assumptions, or “filling in the blanks,” are more hurtful than others.

Following this conversation, we look at some of the research on unconscious bias, to show how the research is relevant to those real experiences. We discuss the disconnect between what people want to believe about

themselves (that they are free from bias), and how every one of us has biases and makes assumptions about others. I often discuss a study conducted by Marianne Bertrand and Sendhil Mullainathan, in which applications were sent to employers that were identical in content, except that some had typical Caucasian names and some had typical African-American names. The hypothetical Caucasian applicants were called back at a rate 50 percent higher than the hypothetical African-American applicants, even though the only difference was the name. Another study I use is by Devah Pager, which showed Caucasian applicants with a drug conviction and jail time were more likely to get a call back for a job than African-American applicants with no drug-related conviction. Other studies I discuss show how age impacts a call for a job interview, how blind auditions can affect who is selected for an orchestra and how bias can impact marketing. It is hard to argue at this point that unconscious bias or implicit bias doesn’t exist or isn’t important. Discussing unconscious bias is how we can recognize our own biases and, more importantly, ways we can stop our biases from impacting workplace decisions.

My hope is that, in the future, workplace leaders will stop making instant decisions about the next promotion or the next new hire and, instead, consider job-related criteria and the individual’s qualifications.

7

ALLIANCE OF ARIZONA NONPROFITS

Employers of National Service Program

by Robin Hanson, Program Manager, AmeriCorps VISTA Employers of National Service connects AmeriCorps and Peace Corps alumni with employers from the private, public and nonprofit sectors.

Through this initiative, employers have increased access to a dedicated, highly qualified and mission-oriented pool of potential employees, and national service alumni have additional opportunities to apply their skills in the workplace.

More than 500 employers are now a part of the Employers of National Service program, which recognizes the valuable skills gained by more 1 million Americans who have participated in AmeriCorps since 1994 and the 215,000 who have participated in the Peace Corps since 1961.

Why Hire National Service Alumni?

National service develops essential skills that make AmeriCorps and Peace Corps alumni high-quality employees for any organizations or company. National service alumni are strong leaders who are motivated, flexible, innovative and outcome-oriented. They learn quickly, work well on diverse teams, and know how to mobilize others to tackle some of the most pressing challenges facing our nation and our world.

Testimonials “The City of Phoenix is proud to be one of the first cities in the nation to pledge to be an Employer of National Service, and we continue to strengthen our commitment. This year, four of our AmeriCorps VISTA members transitioned to a variety of roles at the City, including ALLIANCE OF ARIZONA NONPROFITS STAFF Kristen Merrifield, CAE, CNAP Chief Executive Officer KristenM@arizonanonprofits.org (602) 279-2966 x14

8

police forensics, transit, communications and City Council aide. National Service alumni know how to roll up their sleeves and share their passion for service to address some of our community’s most pressing needs. Their commitment to making a difference makes them perfect fits in the City of Phoenix.” —Greg Stanton, Phoenix Mayor (2012-2018) Benefits of Being an Employer of National Service Employers of National Service will have a competitive edge in reaching a large and diverse pool of talented individuals. Participating employers will have their job opportunities highlighted via promotional channels that reach a vast network of talented job seekers.

Every employer from the nonprofit, government and corporate sectors will benefit from the value that national service alumni add to their organization.

Jennifer Blair Director of Membership JenniferB@arizonanonprofits.org (602) 279-2966 x20 Robin Hanson Program Manager – AmeriCorps VISTA RobinH@arizonanonprofits.org (602) 279-2966 x19

How Does an Organization Become an Employer of National Service?

To become an Employer of National Service, organizations will adopt policies and practices that allow applicants to highlight skills gained through national service. Organizations will identify themselves as an Employer of National Service on their website, in job applications, or in another approved manner that demonstrates to alumni that their organization understands and actively recruits those who have completed a national service program Partnering Organizations Employers of National Service is an initiative co-sponsored by the Corporation for National and Community Service, Peace Corps, AmeriCorps Alums, the National Peace Corps Association and the Service Year Alliance. Identification as an Employer of National Service does not constitute an endorsement or recommendation by the co-sponsors for the activities of the participating employers.

Jacki Presnal Office Manager & Executive Coordinator JackiP@arizonanonprofits.org (602) 279-2966 x10 Jennifer Purcell Director of Community Engagement JenniferP@arizonanonprofits.org (602) 279-2966 x17

Juan Chavez AmeriCorps VISTA Leader JuanC@arizonanonprofits.org (602) 279-2966 x18 Catherine Hogan-Holmberg Member Services Coordinator

PRESENTS

Commercial Real Estate SPOTLIGHT ON THE BEST

CBRE Colliers International JLL NAI Horizon

SPONSORED BY

COMMERCIAL REAL ESTATE IN OUR SIGHTS To complement the cover story (see page 24) of this Commercial Real Estate issue of In Business Magazine, which is dominated by the multifamily segment, we also share the following updates on the industrial and office segments.

2018 Q4: Phoenix Airport Office Submarket on theSpecial Rise Section Phoenix’s Airport office submarket is quickly filling with new and expanding tenants, pushing vacancy rates down 9.3 percent year-over-year and inching rental rates up, according to data from JLL’s Q4 Phoenix Office Market Report.

According to JLL, overall vacancy in the Airport submarket in 2018 fell from 32.7 percent to 23.4 percent. During the same time period, submarket rents climbed from $19.63 to $21.95 per-square-foot.

“The Airport submarket is a very attractive alternative for tenants to consider when locating their operations,” says JLL Managing Director Mark Gustin. “It has a central location that is close to the amenities of downtown Tempe and Phoenix, and is crisscrossed by three major freeways that connect tenants to a large base of prospective employees — over 2.6 million people within a 30-minute commute.”

In 2018, this helped to attract major new tenant commitments to the Airport submarket, the largest of which include: • McKesson Drug Company, subleasing 177,639 square feet at 2900 S. Sunland Dr., at the I-10 and US 60 in Tempe.

• Lennar Homes, leasing 91,452 square feet at 1665 W. Alameda Dr., also along the I-10 just north of the US 60 in Tempe.

• EPIQ, leasing 51,323 square feet at 3255 E. Elwood St., at the I-10 and University Drive, south of the Airport.

• Ancora Education, leasing 43,013 square feet at 8181 S. 48th St., just west of I-10 and south of Baseline Road.

• Aspen University, leasing 38,014 square feet at 4615 E. Elwood St. also at the I-10 and University Drive.

Gustin says the increased lease activity has helped to transform a number of Airport-area office developments. This includes Quattro, a four-building, 264,994-square-foot office project that was recently rebranded within the Cotton Center business park.

“Metro Phoenix is on a 22-quarter run of net positive office space absorption, so in some ways the Airport submarket reflects what’s happening on a macro scale across the Valley,” says Gustin.

“Based on the numbers, it is just much more pronounced in the Airport area.”

According to JLL, Phoenix’s positive net absorption streak is expected to extend into the first half of 2019 and feasibly further, with more than 1.4 million square feet of signed leases ready to occupy in 2019 and activity an interest in the local office market continuing on an upward trend.

Information provided by JLL jll.com

PRESENTS

Commercial Real Estate SPOTLIGHT ON THE

BEST

CBRE Colliers International JLL NAI Horizon

About this section: As part of our service to our readers, our editorial staff has invited these top commercial real estate companies to provide information on themselves, their expertise and details relating to their business in this Commercial Real Estate: Spotlight on the Best special section. The real estate market is improving and these companies are proven leaders in the Valley.

Please visit www.inbusinessphx.com for more information and articles on the local real estate market.

SPONSORED BY

54

MAY 2019

INBUSINESSPHX.COM

2019 Q1 Office Insight construction and expected to start delivery in the coming quarters.

Year-to-date office sales activity decreased just slightly to approximately $172 million, but with the same wide range of buyers interested in investing in Phoenix’s strong fundamentals.

“Collectively, these fundamentals reflect a still very strong market. We expect that momentum to continue, delivering opportunity to our clients throughout the remainder of 2019,” says Williams.

are optimistic for a continued strong 2019,” says JLL Senior Managing Director Pat Williams.

During Q1, 900,000 square feet in new Phoenix office leases were completed and 78 additional tenants are collectively looking for more than 4.6 million square feet of space.

As Q1 absorption figures increased, vacancy dropped by nine basis points in the first quarter, creating the lowest vacancy rate Phoenix has seen since the second quarter of 2008. That creates a good backdrop for the approximately 2 million square feet of new office product under

Mo unt ai

ve

Ca

Pima Rd

Forest Rd well Rd

McDowell

Blvd

ntain

Saguaro Blvd

Hills

Fort McDo

Mountain

Rd

9

Main St Broadway Rd Southern Ave

Chandler Blvd Pecos Rd

4

Sosaman Rd

Power Rd

Greenfield Rd

Val Vis Dr

Gilbert Rd

Lindsay Rd

Stapley Dr

60

Ellsworth Rd

McClintock Rd

Rural Rd

Kyrene Rd

56th St

Ray Rd

McQueen Rd

Elliot Rd

Arizona Ave

Guadalupe Rd

Alma School Rd

19

47th St 40th St

32nd St

University Rd

Reckert Rd

101

10

Brown Rd

Higley Rd

Mill Ave

Apache Blvd

Country Club Dr

20

Center St Mesa Dr

McKellips Rd

21

24th St

D

Pkwy hils

d

R ns

oh

.J

St

* MAP NOT TO SCALE

Fou

Thomas Rd McDowell Rd

Warner Rd

es

Palisades Sunridge Dr

87

Curry Rd

Estrella Dr Foot ert

hH

Bus

Based on information provided by DTZ

Hawes Rd

64th St

56th St

15

16

2

ElliotRd

104th St

Miller Rd

64th St

Scottsdale Rd

56th St

Tatum Blvd 40th St

1

Sky Harbor Int’l Airport

32nd St

24th St

19th Ave

27th Ave

7th Ave

Central Ave

Es

DobbinsRd

35th Ave

43rd Ave

Baseline Rd

16th St

17

Lower Buckeye Rd 51st Ave

Avondale Blvd

11

7

92nd St

64th St

Rd ek Cre 32nd St

McDowell Rd

Pima Rd

Tom Darlington Dr

32nd St

24th St

16th St

6

44th St

59th Ave

67th Ave

75th Ave

83rd Ave

91st Ave

99th Ave

107th Ave

Thomas Rd

Van Buren St

Indian Springs Rd

Chaparral Rd

3

Buckeye Rd

Broadway Rd

McDonald Dr

Priest Dr

Camelback Rd

Bullard Ave

Pebble Creek Pkwy

wy Pk

ve

Bethany Home Rd

22

Indian Bend Rd

Lincoln Dr

tre l

la

Ca

51

e Av

195 Ave

Shea Blvd

40th St

El Mirage Rd

Dysart Rd

Litchfield Rd

Sarival Ave

Northern Ave

7th St

Bullard Ave

Reems Rd

Bob Stump Memorial Pkwy

8 Glendale Ave

nd

Jackrabbit Tr

Cactus Rd

Dunlap Ave

Olive Ave

ra

Elliot Rd

17

17

G

oat Rd

7th St

12

Peoria Ave

Indian School Rd

Yuma Rd

7th Ave

16th St

115th Ave

B e bb l

Del W

Thunderbird Rd

d

vd

Greenway Rd

101 Luke AFB

o Blv

Bl

Conquistador Dr

North Valley Pkwy Norterra Pkwy

Rd leas Lak

163rd Ave

Sunrise B lvd

Bell Rd

Cactus Rd

303

May

gle

Waddell Rd

Cotton Ln

vd

13

101

Ea

wy

5 Union Hills Dr

n

Pk

Pinnacle Peak Rd

Deer Valley Rd

lde

y

Happy Valley Rd

Pinnacle Peak Rd

44th Street Corridor Airport Area Camelback Corridor Chandler/Gilbert Deer Valley Airport Downtown North Downtown SouthRio Verde Dr Glendale Mesa Downtown Mesa East Midtown Northwest Phoenix North Phoenix/Desert Ridge Scottsdale Airpark Scottsdale North Scottsdale South Squaw Peak Corridor Sun City Superstition Corridor Tempe Tempe South/Chandler West Phoenix Go

1 2 3 4 5 Lone Mountain Rd 6 Dixileta Dr 7 Dynamite Blvd 8 9 10 Tho mps on P 11 eak Pkw y 12 13 14 Bell Rd 14 ay Fr 15 enw an Gre den Lp k Ll Raintree Rd Hay oy 16 d W rig 17 ht Bl vd 18 19 nda 20 Via Li 21 Via de Ventura 22

Joy Ranch Rd

Beardsley Rd

Beardsley Rd

le

wy Pk

18

g

in

eP

vd

Bl Happy Valley Rd

ust Blv Stard d

Va l

e

ia

nc

ant

ta

s Vi

60

74 stw

Rd

SUBMARKETS

Desert Hills Dr

Cloud Rd

W

tt D rtle Ba jll.com

Rd

y

is D a Merdian Dr

ek

Cre

Dobson Rd

th e

Galvin Peak Pkwy

Information provided by JLL

nD r

An

m Way

am

Hayden Rd

According to JLL’s Q1 Phoenix Office Market Report, metro Phoenix has absorbed more than 1 million square feet of office space since the first of the year — a quarterly high not seen in more than 10 years. This is already massively ahead of 2018, which, though a notable year for local office space, recorded 1.7 million square feet in total absorption for the full 12 months.

“The continued positive absorption numbers and growth in metro Phoenix is obviously very exciting. We are optimistic that more job creation in all types of industries will continue here and

Williams Field Rd Pecos Rd Germann Rd Queen Creek Rd

Ri

tte

nh

ou

se

Rd

COMMERCIAL REAL ESTATE

SPOTLIGHT ON THE BEST

CBRE CBRE is the leader in the Metropolitan Phoenix commercial real estate market, offering strategic advice and execution for property sales and leasing, corporate services, property, facilities and project management, mortgage banking, appraisal and valuation, development services, investment management, and research and consulting. Throughout its business lines, the Phoenix office has earned a reputation as a respected leader in the business community with vast market knowledge and an enduring culture of client service.

CBRE believes that the truest measure of our success comes from providing superior service to our clients — delivered by knowledgeable, creative and tenured employees, many boasting more than 20 years in the marketplace. It is our dedication to teamwork and commitment to excellence that makes it possible to serve the diverse needs of our clients.

Whether facilitating the design, construction and move of a new corporate headquarters or strategically planning and negotiating complex lease agreements, CBRE offers a fully integrated, global service platform to our clients, delivering seamless execution and measurable results.

Our commitment to customer service and innovative solutions is recognized throughout the industry. NAIOP Arizona named CBRE its Brokerage Firm of the Year and also honored our professionals with Office Brokerage Team of the Year, Healthcare Brokerage Team of the Year and Developing Leader of the Year awards for 2014. AZ Big Media recognized CBRE as its 2014 Industrial Sales Team of the Year as well.

BOMA’s Arizona chapter honored two CBREmanaged buildings with TOBY awards, and the Phoenix Business Journal recognized CBRE as the No. 1 commercial brokerage, appraisal and property management firm in Arizona. The year 2014 was also the 16th in a row Ranking Arizona named CBRE its No. 1 commercial brokerage firm.

CBRE is also considered a top employer in Arizona, regularly recognized as an outstanding place to work. CBRE has ranked as one of the Business Journal’s Best Places to Work nine of the past ten years, and BestCompaniesAZ named CBRE one of Arizona’s Most Admired Companies for the fifth consecutive time in 2014. In 2012, BestCompaniesAZ also included CBRE in its list of 100 Best Arizona Companies, recognizing CBRE among the Arizona businesses that shaped the state during the past decade.

PROFILE Company Name: CBRE Main Office Address: 2575 E. Camelback Rd., Suite 500, Phoenix, AZ 85016 Phone: (602) 735-5555 Website: www.cbre.com/phoenix Number of Offices in Metro Phoenix: 1 Number of Commercial Agents: 110 City Nationally Headquartered: Los Angeles Sr. Managing Director and AZ Market Leader: Craig Henig No. of Years with Firm: 10 years Year Est. Locally: 1952 Specialties: Brokerage, Asset Services, Capital Markets, Debt & Structured Finance, Global Corporate Services

Craig Henig, senior managing director and Arizona market leader, and Cathy Teeter, director of operations, outside CBRE’s Phoenix office

56

MAY 2019

INBUSINESSPHX.COM

Unrivaled TalenT. UnmaTched resUlTs. Serving as trusted advisers to Phoenix’s most notable companies is a role we take seriously. Our professionals share an unwavering commitment to being a world-class real estate services company.

A client-first culture and focused dedication to professional excellence are what make CBRE the leading provider of commercial property management, leasing services and investment sales in one of the country’s most vibrant real estate markets.

For more information on how CBRE can assist you with your real estate needs in Phoenix, please contact: Phoenix Office +1 602 735 5555

cbre.com/phoenix

INBUSINESSPHX.COM

MAY 2019

57

COMMERCIAL REAL ESTATE

SPOTLIGHT ON THE BEST

JLL JLL is a leading professional services firm that specializes in real estate management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. At year-end 2018, JLL had nearly 300 corporate offices, operations in more than 80 countries and a global workforce of more than 88,000.

The Phoenix office of JLL was established in 2008 when JLL purchased the Staubach Company, a leading national tenant representation company. Former Dallas Cowboys quarterback and Super Bowl MVP Roger Staubach formed the Phoenix office of the Staubach Company in 2000. By 2008, that team had grown to 18 licensed brokers.

Today, JLL Phoenix is one of the area’s top commercial real estate service providers, employing more than 45 licensed brokers and 590 of the Valley’s most recognized industry experts. Together, this team has realized a full-service vision for its Phoenix operations that includes tenant and landlord representation, capital markets investment and debt services, property and facility management, project management and consulting. JLL’s integrated services are specialized for a variety of assets, including office, industrial, multifamily, retail, healthcare and data centers. The expertise of JLL’s collaborative brokers spans a variety of industries, including e-commerce, financial services, healthcare, law, manufacturing, distribution, food and beverage, retail and technology.

58

MAY 2019

JLL professionals also have specialized experience in public institutions ranging from government entities to universities and nonprofits.

JLL’s innovative solutions are built on insight, market research and collaborative knowledge to help clients understand and navigate the intricacies of the constantly changing real estate world. Our local research team collaborates with more than 150 research professionals across the United States.

Under the direction of office leader Pat Williams, the JLL Phoenix office in 2018 completed 75.3 million square feet in lease and sale transactions (valued at $2.2 billion) and directed $120 million in project management projects. The team currently manages a 32-million-square-foot portfolio.

JLL earns recognition from clients, professional organizations and communities for its service, performance, culture and values. Recent recognitions include being named a World’s Most Admired Company

by Fortune Magazine, an Ethisphere World’s Most Ethical Company, a CR (Corporate Responsibility) Magazine’s 100 Best Corporate Citizens, an Arizona’s Most Admired Company, a Top Company to Work for in Arizona, and multiple honors as a Phoenix Business Journal Best Places to Work and a NAIOP Brokerage Firm of the Year.

For more information and market research, visit jll.com or follow us on Twitter at @JLLPhoenix.

PROFILE Company Name: JLL Main Office Address: 3131 E. Camelback Rd., Suite 400, Phoenix, AZ 85016 Phone: (602) 282-6300 Website: jll.com No. of Offices in Metro Phoenix: 1 No. of Commercial Agents: 45 City Nationally Headquartered: Chicago Senior Managing Director: Pat Williams No. of Years with Firm: 19 Year Established Locally: 2000 Specialties: Tenant Representation, Landlord Representation, Capital Markets, Project Management, Property and Facility Management

FINANCIAL: Property Sold in 2018 (In cumulative dollars): $1.2 billion Property Leased in 2018 (In cumulative dollars): $1.1 billion No. of Commercial Transactions closed in 2018: 646

INBUSINESSPHX.COM

At JLL, we know smart real estate strategy is simply good business. We bring together the right combination of skills and match them with valuable data, powerful connections and a deep understanding of real estate. The result is one-of-a-kind advice and solutions. Buildings that operate at peak performance. Workplaces where employees can thrive.

Our JLL Phoenix real estate experts in all property types look forward to helping you achieve your business ambitions with our local services: • • • • •

Tenant representation Landlord representation Real estate consultation Capital markets Debt and equity financing

jll.com

I

• • • • •

Financial analysis Property valuation Property tax services Facilities and property management Project and development management

+1602 282 6300

(@)JLL Jones Lang LaSalle© 2019 Jones Lang LaSalle Americas, Inc. License#: C0508577000 All rights reserved.

INBUSINESSPHX.COM

MAY 2019

59

COMMERCIAL REAL ESTATE

SPOTLIGHT ON THE BEST

NAI Horizon NAI Horizon has been serving Arizona for more than 25 years, providing brokerage and property management services for local, national and international clients.

We are proud to be the local representative of NAI Global, the single largest, most powerful global network of owner-operated commercial real estate brokerage firms.

Founded in 1978, today NAI Global has more than 400 Phoenix headquarters offices worldwide, with more than 7,000 local market professionals, managing more than 425 million and service that only owner-operated, marketsquare feet of property. leading firms can provide.

Our member firms are owner-operated and With locations in both Phoenix and Tucson, local market leaders, deeply rooted in their NAI Horizon is well-equipped to service clients communities around the world. We call this the throughout Arizona, and connected to markets “Power of Collective Independence”: independent all over the world. You can feel the pride we take firms collectively united to achieve extraordinary in our relationship with you, and how important results through creativity, collaboration and the your business is. At NAI Horizon, our global consistent delivery of exceptional knowledge strength is built on our local leadership.

PROFILE Company Name: NAI Horizon Main Office Address: 2944 N. 44th St., Suite 200, Phoenix, AZ 85018 Phone: (602) 955-4000 Website: www.naihorizon.com No. of Offices in Metro Phoenix: 1 No. of Commercial Agents: 54 City Nationally Headquartered: Phoenix CEO/Managing Director: Terry Martin-Denning No. of Years with Firm: 33 Year Established Locally: 1992 Specialties: Office, Retail, Industrial/Land, Investment Sales, Property Management Property Sold in 2018 (In cumulative dollars): $150,762,894 Property Leased in 2018 (In cumulative dollars): $144,674,682 No. of Commercial Transactions closed in 2018: 484

Master Your Social Position!

Social Media that gets noticed, backed by the credibility of In Business Magazine…

Marketing Automation | Social Media | Digital Products www.inbusinessphx.com 480.588.9505

60

MAY 2019

INBUSINESSPHX.COM

Gallagher & Kennedy The prime location for attorneys who know real estate law and how to get deals done.

DEALS WE DO Complex to routine transactions, including land use & zoning, litigation, construction, secured lending, leasing, acquisitions, sales, eminent domain/condemnation, valuation, distressed assets, refinancing, sale-leasebacks, permanent loans, tax planning, liquor licensing and land banking

FOR YOU Developers, home builders, contractors, lenders, landlords, tenants, investors, syndicators, owners, buyers, sellers and individuals

Lawyers. When Results Matter.

AND YOUR PROJECTS Mixed use developments, master planned developments, commercial, office projects, sports facilities, shopping centers, retail, industrial, multi-family, mini-storage and master sign plans ADVERTISING PROFILE

MAY 2019 61 2575 East Camelback Road | Phoenix, Arizona 85016-9225 | P: 602-530-8000 | www.gknet.com

INBUSINESSPHX.COM

62

MAY 2019

INBUSINESSPHX.COM

Anderson, Chris L., 14

Engler, Paul D., 10

Merrifield, Kristen, 45

Taylor, Penny Allee, 47

Anderson, Ted, 32

Federhar, Andy, 10

Morrow, Don, 24

Thompson, David, 48

Ashley, Michael, 31

Figman, Carly, 50

Pair, Christopher, 11

Thornberg, Christopher, Dr., 24

Bernoff, Josh, 31

Flaherty, Bob, 24

Pérez, Alejandro, 22

Trinklein, Matthew, 24

Breen, Bant, 13

Goldstein, Hani, 11

Peru, Ramey, 24

van der Feltz, Lennard, 39

Bruhnke, Doug, 37

Hanson, Robin, 52

Pierce, Brian, 14

Vento, Jonathon, 9

Chelton, Brad, 24

Henig, Craig, 56

Pressley, Cherryl, 12

Vogel, Crel, 27

Cornell, Todd, 40

Hutcheson, Henry, 30

Purcell, Jennifer, 46

Volkman, Karl, 20

Covert, Gary, 44

Kannan, P.V., 31

Quigley, Robert L, Dr., 38

Ward, Jennifer, 10

Cunningham, John, 24

Kaufman, Ken, 18

Sahota, Neil, 31

Watson, Krista, 51

Dangi, Komal, 20

Keller, Scott, 31

Sarbinoff, Ryan, 24

Wilbur, Josh, 34

Davies, Gethin, 16

Langley, Mike, 42

Schaninger, Bill, 31

Williams, Pat, 58

Donley, Mike, 12

Lederman, Michelle Tillis, 64

Shah, Jagat, 42

Egan, Kelly, 14

Martin-Denning, Terry, 61

Steele, Charles, 24

Alliance Bank of Arizona, 10, 24

Cultur668, 40

Law Firm of Alejandro Pérez, 22

Spencer Fane LLP, 10

Alliance of Arizona Nonprofits, 45

Dental Genie, 14

Marcus & Millichap, 24

SRV Network, 20

AmeriCorps VISTA, 52

Design Pickle, 33

Mayo Clinic, 65

Steeped Coffee, 34

Anderson Advertising + PR, 32

Dollar Days, 50

McDonald’s, 20

Taylor Morrison, 16

APS, 23

Donley Service Center, 12

NAI Horizon, 24, 60

Tempe Chamber of Commerce, 33

Arizona Diamondbacks, 7

Dynamic Yield Ltd., 20

National Council of Nonprofits, 48

Toll Brothers, 24

Arizona Office of Economic Opportunity, 24

EEOC Phoenix, 51

Optima, 27

Toro Latin Restaurant & Rum Bar, 36

Employers Council, 10

Pinnacle Financial Advisors, 39

True North Studio, 9

Enterprise Bank & Trust, 8

Plexus Worldwide, 11

True Salt Co., 14

Executive Essentials, 64

Polsinelli, 41

U.S. Department of Labor, 18

Family Business USA, 30

Quarles & Brady, 5

UnitedHealthcare, 15

First Bank, 6

RateMyInvestor, 11

Valley of the Sun United Way, 47

FirstService Residential, 12

Read Better Be Better, 47

VeriKlick, 20

Gallagher & Kennedy, 12, 61

RED Development, 24

Vig, The, 36

Gary Covert Consulting, 44

Snappy, 11

Wallbeds ‘n’ More, 35

Global Chamber, 37

Snell & Wilmer, 3

WESTMARC, 33

Association Health Plans of America, 18 Beacon Economics, 24 Black Pearl Mail, 12 Blue Cross Blue Shield of Arizona, 19 BMO Harris Bank, 21 BOK Financial, 2 Brookfield Residential, 24 Camelot Homes, 24 Camp Social, 36 Career Connectors, 47 CariClub, 11 CarynHealth, 18 CBRE, 56, 57 Chief Marketing Officer Council, 13 Cigna, 12, 66 Colliers International, 24, 62 Culinary Dropout, 36

Harte Hanks, 13 Infiniti, 34

CHECK US OUT

Instant Group, The, 16 International SOS, 38 Jive, 6 JLL, 17, 24, 54, 55, 58, 59 Joint Chiropractic, The, 8 Kaufman Hall, 18

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

/InBusinessPHX @InBusinessPHX www.inbusinessphx.com

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

63

MAY 2019

INBUSINESSPHX.COM

A CANDID FORUM

BY

Networking Is for Introverts Five ways to leverage your introverted networking energy

by Michelle Tillis Lederman

IN BUSINESS IS ON APPLE NEWS Subscribe at bit.ly/in-business-phx

Michelle Tillis Lederman is the author of The Connector’s Advantage: 7 Mindsets to Grow Your Influence and Impact and CEO of Executive Essentials, a communications and management training and coaching firm. executiveessentials.org michelletillislederman.com

MAY 2019

64

INBUSINESSPHX.COM

Why do we have a visceral reaction to the word “networking”? I often hear the mental machinations that hold us back, like, “I have nothing to say” or “They don’t want to talk to me.” The other roadblock is how it feels — yucky! I have heard people refer to networking as manipulation, pasting on a smile, schmoozing (which sounds like “oozing,” which makes me think of an open wound — definitely yucky!).

You see someone working the room. They are always engaged in conversation, smiling, maybe laughing loudly and often. Do you look at that person and think, “Wow, I wish I could network like that”? Do you think there is a way networking “should be”? Or do you have a vision for what a “good networker” does or looks like? I am here to tell you the most effective networking doesn’t look or feel like networking.

What do you like to do? Do you prefer to do things in big groups or one-on-one? Or maybe you feel most comfortable connecting virtually? Our energy ebbs and flows during different times of day, in different situations, locations and atmospheres. Once we understand the nature of our networking energy, we can use it to create opportunities that work with our natural and preferred style. Remember, we don’t want to fake it; pretending to be up when we’re down, pretending to be fascinated when we’re bored just doesn’t work.

So, eliminate your existing perceptions about the way networking “should” be. Each of us must find the networking situations that we want to go to, not the ones we think we should attend. When you choose situations in which you are most comfortable — in other words, that match your networking energy — your authentic self will emerge. When that happens, you display confidence and leverage your natural style.

If you are an introvert, the key is to listen to your own rhythms. Don’t try to emulate your extroverted colleagues; instead, pay attention to what makes you comfortable. Here are a five tips to leverage your introverted networking energy.

Many innately introverted qualities, such as natural listening skills, are advantages when it comes to connection.

Arrive early. At the start of an event, everyone is a little lost and looking for someone to talk with. It is actually easier to find someone to chat with when the room is not yet crowded. Throughout the night, those early conversations become familiar faces that are easier to approach when the conversations become larger groups.

Stay late. The end of the event is another more relaxed time for connecting. The energy in the room has calmed and conversations seem to come easier with the practice from earlier. Helping to pack up or walk out with someone is disarming and enables an ease with a timed end to a new conversation.

Volunteer. Having a job assigned gives you both purpose and permission to talk with people. Even easier, you have a built-in topic related to your volunteer post. The goal will be to expand on the conversation.

Position yourself. Even if you do not have a specific role assigned, you can still position yourself in a place where people may ask for help. By the door, you can direct people to the registration area. In the lobby area, people are always looking for the restroom. Make yourself useful, and quick connection points can lead to longer conversations.

Take breaks. This is key to keeping a productive energy throughout an event. Stepping out for some air, a bathroom break or the quick cell phone check gives an introvert the time needed to reenergize and return ready to connect.

At the end of the day, whatever you decide feels authentic and true — that’s your networking energy. I can tell you all day that not talking constantly or preferring to talk one-on-one is okay, but the only thing that will make it okay for you is that you decide it’s okay.

Connectors do not need to be extroverts! Many introverts are amazing connectors with their own way to do it. They leverage their natural listening skills to make people feel heard. They are able to focus their attention on the person in front of them. All of these innately introverted qualities are advantages when it comes to connection.